##### 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
   o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 Commission file number: 1-31642
 INTERNATIONAL ABSORBENTS INC.
  Province of British Columbia, Canada
    
    None(State or other jurisdiction of incorporation or organization)
    
    (IRS Employer Identification Number)
 1569 Dempsey Road
North Vancouver, British Columbia
Canada V7K 1S8
 (604) 681-6181
  þ o
  o þ
  o þ
   Title of Class
    
    No. of Shares as of November 16, 2005Common Shares, no par value
    
    6,260,568




---



##### 



PART I      FINANCIAL INFORMATION  ITEM 1.     FINANCIAL STATEMENTS
 INTERNATIONAL ABSORBENTS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 As at
    
    
    As atOctober 31,
    
    
    January 31,2005
    
    
    2005(unaudited)
    
    
    (audited)AssetsCurrent assets:Cash and cash equivalents
    
    $
    2,513
    
    
    $
    3,520Restricted cash
    
    
    
    
    
    
    437Short term investments
    
    
    108
    
    
    
    218Accounts receivable, net
    
    
    1,927
    
    
    
    1,523Inventories
    
    
    2,183
    
    
    
    1,408Prepaid expenses
    
    
    172
    
    
    
    161Income tax receivable
    
    
    98
    
    
    
    28Deferred income tax asset
    
    
    54
    
    
    
    40Total current assets
    
    
    7,055
    
    
    
    7,335Property, plant and equipment, net
    
    
    16,523
    
    
    
    15,846Intangible assets, net
    
    
    
    
    
    
    8Other assets, net
    
    
    268
    
    
    
    288Total assets
    
    $
    23,846
    
    
    $
    23,477Liabilities and Stockholders EquityCurrent liabilities:Accounts payable and accrued liabilities
    
    $
    1,957
    
    
    $
    1,861Related party payable
    
    
    5
    
    
    
    5Current portion of long-term debt
    
    
    535
    
    
    
    329Total current liabilities
    
    
    2,497
    
    
    
    2,195Deferred income tax liability
    
    
    815
    
    
    
    673Long-term debt
    
    
    6,761
    
    
    
    7,263Total liabilities
    
    
    10,073
    
    
    
    10,131Stockholders equity:Common stock, no par value;100,000,000 shares authorized,
6,260,568 and 6,251,838 issued and outstanding at
October 31, 2005 and January 31, 2005, respectively
    
    
    8,173
    
    
    
    8,154Additional paid in capital
    
    
    650
    
    
    
    644Retained earnings
    
    
    4,950
    
    
    
    4,548Total stockholders equity
    
    
    13,773
    
    
    
    13,346Total liabilities and stockholders equity
    
    $
    23,846
    
    
    $
    23,477
 2




---



##### 



INTERNATIONAL ABSORBENTS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 Nine Months Ended
    
    
    Three Months EndedOctober 31,
    
    
    October 31,
    
    
    October 31,
    
    
    October 31,2005
    
    
    2004
    
    
    2005
    
    
    2004(unaudited)
    
    
    (unaudited)
    
    
    (unaudited)
    
    
    (unaudited)Sales, net
    
    $
    18,717
    
    
    $
    16,995
    
    
    $
    6,751
    
    
    $
    5,999Cost of goods sold
    
    
    13,122
    
    
    
    10,072
    
    
    
    4,842
    
    
    
    3,5685,595
    
    
    
    6,923
    
    
    
    1,909
    
    
    
    2,431Selling, general and administrative expenses
    
    
    4,813
    
    
    
    4,208
    
    
    
    1,584
    
    
    
    1,319Income from operations
    
    
    782
    
    
    
    2,715
    
    
    
    325
    
    
    
    1,112Interest expense
    
    
    (241
    )
    
    
    (113
    )
    
    
    (80
    )
    
    
    (37
    )Interest income
    
    
    56
    
    
    
    15
    
    
    
    23
    
    
    
    9Income before provision for income tax
    
    
    597
    
    
    
    2,617
    
    
    
    268
    
    
    
    1,084Income tax provision
    
    
    (195
    )
    
    
    (832
    )
    
    
    (80
    )
    
    
    (348
    )Net income
    
    $
    402
    
    
    $
    1,785
    
    
    $
    188
    
    
    $
    736Basic earnings per share
    
    $
    .06
    
    
    $
    .30
    
    
    $
    .03
    
    
    $
    .12Fully diluted earnings per share
    
    $
    .06
    
    
    $
    .29
    
    
    $
    .03
    
    
    $
    .12Weighted
average number of shares outstanding(in thousands)Basic
    
    
    6,258
    
    
    
    5,915
    
    
    
    6,261
    
    
    
    6,011Diluted
    
    
    6,345
    
    
    
    6,237
    
    
    
    6,332
    
    
    
    6,269
 3




---



##### 



INTERNATIONAL ABSORBENTS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 Nine Months EndedOctober 31,
    
    
    October 31,2005
    
    
    2004(unaudited)
    
    
    (unaudited)Cash flows from operating activitiesNet income
    
    $
    402
    
    
    $
    1,785Adjustments to reconcile net income to net cash
from operating activitiesDepreciation and amortization
    
    
    975
    
    
    
    490Stock-based compensation
    
    
    6
    
    
    
    33Tax benefit from exercise of stock options
    
    
    
    
    
    
    35Deferred tax
    
    
    128
    
    
    
    400Changes in operating assets and liabilities
Accounts receivable
    
    
    (404
    )
    
    
    (624
    )Inventory
    
    
    (775
    )
    
    
    33Prepaid expenses
    
    
    (11
    )
    
    
    (24
    )Accounts payable and accrued liabilities
    
    
    32
    
    
    
    (7
    )Income tax receivable/payable
    
    
    (70
    )
    
    
    245Due to related party
    
    
    
    
    
    
    1Net cash flows from operating activities
    
    
    283
    
    
    
    2,367Cash flows from investing activitiesPurchase of short-term investments
    
    
    (110
    )
    
    
    (4
    )Proceeds from short-term investments
    
    
    220
    
    
    
    Purchase of property, plant and equipment
    
    
    (1,560
    )
    
    
    (5,639
    )Purchase of other assets
    
    
    
    
    
    
    (153
    )Changes in restricted cash
    
    
    437
    
    
    
    (1,075
    )Net cash flows from investing activities
    
    
    (1,013
    )
    
    
    (6,871
    )Cash flows from financing activitiesProceeds from long-term debt
    
    
    
    
    
    
    6,669Repayment of long-term debt
    
    
    (296
    )
    
    
    (2,121
    )Proceeds from exercise of stock options
    
    
    19
    
    
    
    590Net cash flows from financing activities
    
    
    (277
    )
    
    
    5,138Net change in cash
    
    
    (1,007
    )
    
    
    634Cash and cash equivalents, beginning of period
    
    
    3,520
    
    
    
    1,453Cash and cash equivalents, end of period
    
    $
    2,513
    
    
    $
    2,087Supplemental Cash flow InformationCash paid for interest
    
    $
    248
    
    
    $
    198Cash paid for income taxes
    
    $
    130
    
    
    $
    150Non-cash investing activitiesChange in property, plant and equipment and accounts
payable for purchase of plant and equipment
    
    $
    64
    
    
    $
    (380
    )
 4




---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 1. Significant Accounting Policies
 Basis of consolidation and presentation
   Use of estimates
  New Accounting Pronouncements:
   Stock-based employee compensation
   5




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##### 



Nine months ended
    
    
    Three months endedOctober 31,
    
    
    October 31,
    
    
    October 31,
    
    
    October 31,2005
    
    
    2004
    
    
    2005
    
    
    2004Net income
    
    $
    402
    
    
    $
    1,785
    
    
    $
    188
    
    
    $
    736Stock based compensation recognized
under APB No. 25, net of related tax
effects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Compensation expense calculated in accordance
with SFAS 123, net of related tax effects
    
    
    (194
    )
    
    
    (540
    )
    
    
    (67
    )
    
    
    (216
    )Pro forma net income
    
    $
    208
    
    
    $
    1,245
    
    
    $
    121
    
    
    $
    520Basic earnings per shareAs reported
    
    $
    0.06
    
    
    $
    0.30
    
    
    $
    0.03
    
    
    $
    0.12Pro forma
    
    $
    0.03
    
    
    $
    0.21
    
    
    $
    0.02
    
    
    $
    0.08Diluted earnings per shareAs reported
    
    $
    0.06
    
    
    $
    0.29
    
    
    $
    0.03
    
    
    $
    0.12Pro forma
    
    $
    0.03
    
    
    $
    0.20
    
    
    $
    0.02
    
    
    $
    0.08
  2006
    
    
    2005a)     risk free interest rate
    
    
    3.81
    %
    
    
    2.37
    %b)     expected volatility
    
    
    124.2
    %
    
    
    108.3
    %c)     expected dividend yield
    
    
    0.00
    %
    
    
    0.00
    %d)     estimated average life (in years)
    
    
    6.43
    
    
    
    4.40
 Other stock-based compensation
  6




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##### 



2. Share Capital
 Common Shares
 Shares
    
    
    CapitalCommon shares outstanding, January 31, 2005
    
    
    6,252
    
    
    $
    8,154Common shares outstanding, October 31, 2005
    
    
    6,261
    
    
    $
    8,173
 Options
  3. Segmented Information
    Business Segment Data  Nine Months Ended October 31, 2005
  AnimalCare
    
    
    Industrial
    
    
    ConsolidatedRevenues
    
    $
    17,524
    
    
    $
    1,193
    
    
    $
    18,717Operating cost and expenses
    
    
    15,736
    
    
    
    1,224
    
    
    
    16,960Operating income (loss) before depreciation and amortization
    
    
    1,788
    
    
    
    (31
    )
    
    
    1,757Depreciation and amortization
    
    
    
    
    
    
    
    
    
    
    (975
    )Interest expense
    
    
    
    
    
    
    
    
    
    
    (241
    )Interest Income
    
    
    
    
    
    
    
    
    
    
    56Net income before taxes
    
    
    
    
    
    
    
    
    
    $
    597
 7




---



##### 



Business Segment Data  Nine Months Ended October 31, 2004
  AnimalCare
    
    
    Industrial
    
    
    ConsolidatedRevenues
    
    $
    16,003
    
    
    $
    992
    
    
    $
    16,995Operating cost and expenses
    
    
    12,774
    
    
    
    1,016
    
    
    
    13,790Operating income (loss) before
depreciation and amortization
    
    
    3,229
    
    
    
    (24
    )
    
    
    3,205Depreciation and amortization
    
    
    
    
    
    
    
    
    
    
    (490
    )Interest expense
    
    
    
    
    
    
    
    
    
    
    (113
    )Interest Income
    
    
    
    
    
    
    
    
    
    
    15Net income before taxes
    
    
    
    
    
    
    
    
    
    $
    2,617
 Business Segment Data  Three Months Ended October 31, 2005
  AnimalCare
    
    
    Industrial
    
    
    ConsolidatedRevenues
    
    $
    6,163
    
    
    $
    588
    
    
    $
    6,751Operating cost and expenses
    
    
    5,525
    
    
    
    564
    
    
    
    6,089Operating income (loss) before
depreciation and amortization
    
    
    638
    
    
    
    24
    
    
    
    662Depreciation and amortization
    
    
    
    
    
    
    
    
    
    
    (337
    )Interest expense
    
    
    
    
    
    
    
    
    
    
    (80
    )Interest income
    
    
    
    
    
    
    
    
    
    
    23Net income before taxes
    
    
    
    
    
    
    
    
    
    $
    268
 Business Segment Data  Three Months Ended October 31, 2004
  AnimalCare
    
    
    Industrial
    
    
    ConsolidatedRevenues
    
    $
    5,689
    
    
    $
    310
    
    
    $
    5,999Operating cost and expenses
    
    
    4,438
    
    
    
    281
    
    
    
    4,719Operating income (loss) before
depreciation and amortization
    
    
    1,251
    
    
    
    29
    
    
    
    1,280Depreciation and amortization
    
    
    
    
    
    
    
    
    
    
    (168
    )Interest Expense
    
    
    
    
    
    
    
    
    
    
    (37
    )Interest Income
    
    
    
    
    
    
    
    
    
    
    9Net income before taxes
    
    
    
    
    
    
    
    
    
    $
    1,084
 8




---



##### 



4. Inventories components
  October 31,
    
    
    January 31,2005
    
    
    2005Raw materials and supplies
    
    $
    1,330
    
    
    $
    831Finished goods
    
    
    853
    
    
    
    577$
    2,183
    
    
    $
    1,408
 5. Property, Plant and Equipment
  October 31,
    
    
    January 31,2005
    
    
    2005Property, plant and equipmentLand
    
    $
    1,547
    
    
    $
    1,547Buildings
    
    
    8,474
    
    
    
    8,420Leasehold improvements
    
    
    630
    
    
    
    629Equipment
    
    
    10,039
    
    
    
    8,470$
    20,690
    
    
    $
    19,066Less: Accumulated depreciation
    
    
    (4,167
    )
    
    
    (3,220
    )$
    16,523
    
    
    $
    15,846
 6. Credit arrangements
  7. Long-term debt
   9




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##### 



8. Legal Matters
 et.al.
 9. Earnings per share
 For the nine months endedOctober 31, 2005Net Income
    
    
    Shares
    
    
    Per share(numerator
    
    
    (denominator)
    
    
    amountBasic earnings per shareNet income available to stockholders
    
    $
    402,000
    
    
    
    6,258,231
    
    
    $
    0.06Effect of dilutive securitiesStock options to purchase common stock
    
    
    
    
    
    
    87,019Diluted earnings per sharesNet income available to stockholders
    
    $
    402,000
    
    
    
    6,345,250
    
    
    $
    0.06
 For the nine months endedOctober 31, 2004Net Income
    
    
    Shares
    
    
    Per share(numerator
    
    
    (denominator)
    
    
    amountBasic earnings per shareNet income available to stockholders
    
    $
    1,785,000
    
    
    
    5,914,808
    
    
    $
    0.30Effect of dilutive securitiesWarrants to purchase common stock
    
    
    
    
    
    
    50,733Stock options to purchase common stock
    
    
    
    
    
    
    271,123Diluted earnings per sharesNet income available to stockholders
    
    $
    1,785,000
    
    
    
    6,236,664
    
    
    $
    0.29
 10




---



##### 



For the three months endedOctober 31, 2005Net Income
    
    
    Shares
    
    
    Per share(numerator
    
    
    (denominator)
    
    
    amountBasic earnings per shareNet income available to stockholders
    
    $
    188,000
    
    
    
    6,260,568
    
    
    $
    0.03Effect of dilutive securitiesStock options to purchase common stock
    
    
    
    
    
    
    71,185Diluted earnings per sharesNet income available to stockholders
    
    $
    188,000
    
    
    
    6,331,753
    
    
    $
    0.03
 For the three months endedOctober 31, 2004Net Income
    
    
    Shares
    
    
    Per share(numerator
    
    
    (denominator)
    
    
    amountBasic earnings per shareNet income available to stockholders
    
    $
    736,000
    
    
    
    6,010,507
    
    
    $
    0.12Effect of dilutive securitiesWarrants to purchase common stock
    
    
    
    
    
    
    37,392Stock options to purchase common stock
    
    
    
    
    
    
    220,740Diluted earnings per sharesNet income available to stockholders
    
    $
    736,000
    
    
    
    6,268,639
    
    
    $
    0.12
 10. Subsequent event
  ITEM
2.     MANAGEMENTS DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   Overview
  Care FRESH ® Care FRESH ®
 11




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##### 



Care FRESH ®
 Care FRESH ® Colors Care FRESH ® Colors Care FRESH ® Ultra Care FRESH ® Colors
  RESULTS OF OPERATIONS
  Threemonthsended
    
    
    
    
    
    
    ThreemonthsendedOctober 31,
    
    
    Percent
    
    
    October 31,
    
    
    Percent
    
    
    Percentage2005
    
    
    of Sales
    
    
    2004
    
    
    of Sales
    
    
    ChangeSales, net
    
    
    6,751
    
    
    
    100
    %
    
    
    5,999
    
    
    
    100
    %
    
    
    13
    %Cost of Goods Sold
    
    
    4,842
    
    
    
    72
    %
    
    
    3,568
    
    
    
    59
    %
    
    
    37
    %Gross Profit
    
    
    1,909
    
    
    
    28
    %
    
    
    2,431
    
    
    
    41
    %
    
    
    -23
    %Selling, general, &
administrative
expenses
    
    
    1,584
    
    
    
    23
    %
    
    
    1,319
    
    
    
    22
    %
    
    
    20
    %Income from operations
    
    
    325
    
    
    
    5
    %
    
    
    1,112
    
    
    
    19
    %
    
    
    -74
    %Interest Income
    
    
    23
    
    
    
    0
    %
    
    
    9
    
    
    
    0
    %
    
    
    156
    %Interest Expense
    
    
    (80
    )
    
    
    -1
    %
    
    
    (37
    )
    
    
    -1
    %
    
    
    116
    %Income before
provision for income
tax
    
    
    268
    
    
    
    4
    %
    
    
    1,084
    
    
    
    18
    %
    
    
    -78
    %Income tax
    
    
    (80
    )
    
    
    -1
    %
    
    
    (348
    )
    
    
    -6
    %
    
    
    -80
    %Net Income
    
    
    188
    
    
    
    3
    %
    
    
    736
    
    
    
    12
    %
    
    
    -77
    %
 12




---



##### 



Ninemonthsended
    
    
    
    
    
    
    NinemonthsendedOctober 31,
    
    
    Percent
    
    
    October 31,
    
    
    Percent
    
    
    Percentage2005
    
    
    of Sales
    
    
    2004
    
    
    of Sales
    
    
    ChangeSales, net
    
    
    18,717
    
    
    
    100
    %
    
    
    16,995
    
    
    
    100
    %
    
    
    10
    %Cost of Goods Sold
    
    
    13,122
    
    
    
    70
    %
    
    
    10,072
    
    
    
    59
    %
    
    
    31
    %Gross Profit
    
    
    5,595
    
    
    
    30
    %
    
    
    6,923
    
    
    
    41
    %
    
    
    -20
    %Selling, general, &
administrative
expenses
    
    
    4,813
    
    
    
    26
    %
    
    
    4,208
    
    
    
    25
    %
    
    
    14
    %Income from operations
    
    
    782
    
    
    
    4
    %
    
    
    2,715
    
    
    
    16
    %
    
    
    -72
    %Interest Income
    
    
    56
    
    
    
    0
    %
    
    
    15
    
    
    
    0
    %
    
    
    273
    %Interest Expense
    
    
    (241
    )
    
    
    -1
    %
    
    
    (113
    )
    
    
    -1
    %
    
    
    113
    %Income before
provision for income
tax
    
    
    597
    
    
    
    3
    %
    
    
    2,617
    
    
    
    15
    %
    
    
    -78
    %Income tax
    
    
    (195
    )
    
    
    -1
    %
    
    
    (832
    )
    
    
    -5
    %
    
    
    -78
    %Net Income
    
    
    402
    
    
    
    2
    %
    
    
    1,785
    
    
    
    11
    %
    
    
    -79
    %
 Revenues
 Care FRESH ® Care FRESH ® Ultra Care FRESH ® Ultra.
 Care FRESH ® Care FRESH ® Care FRESH ® Care FRESH Ultra Care FRESH ® Colors.
 Gross Profit
  13




---



##### 



Selling, General and Administrative Expenses
    Interest Expense
  Income Tax
  Net Income
  14




---



##### 



LIQUIDITY AND CAPITAL RESOURCES
   As of October
    
    
    As of January31, 2005
    
    
    31,
2005Financial ConditionTotal Assets
    
    $
    23,846
    
    
    $
    23,477Total Liabilities
    
    
    10,073
    
    
    
    10,131Total Stockholders Equity
    
    $
    13,773
    
    
    $
    13,346Debt/equity ratio
    
    
    0.73
    
    
    
    0.76Assets/debt ratio
    
    
    2.37
    
    
    
    2.32Working CapitalCurrent assets
    
    $
    7,055
    
    
    $
    7,335Current liabilities
    
    $
    2,497
    
    
    $
    2,195Current ratio
    
    
    2.83
    
    
    
    3.34Cash PositionCash, restricted cash & short term investments
    
    $
    2,621
    
    
    $
    4,175Cash generated from operations
    
    $
    283
    
    
    $
    3,693
    ** for the entire year ended January 31, 2005
 Financial Condition
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Working Capital
  Cash Position
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Cash Generated from Operations
  Financing and Investing Activities
       Environmental Matters
  17




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Critical Accounting Policies
 Introduction
   Inventory
  Accounts Receivable and Allowance for Doubtful Accounts
  Property, Plant and Equipment
  Revenue Recognition
  Income Tax
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Use of Estimates
  Impairment of Long-Lived Assets
  Off-Balance Sheet Arrangements
   RISK FACTORS
 The following risk factors and other information included in this Quarterly Report should be
carefully considered. The risks and uncertainties described below are not the only ones we face.
Additional risks and uncertainties not presently known to us or that we currently deem immaterial
also may impair our business operations. If any of the following risks occur, our business,
financial condition, operating results and cash flows could be materially adversely affected.
 We are still building our market presence and are subject to substantial competition that could
inhibit our ability to succeed as planned.
  We may be adversely affected by trends in the retail industry.
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We depend on a few customers for a significant portion of our business .
   Competition in our industries may hinder our ability to execute our business strategy, achieve
profitability, or maintain relationships with existing customers.
  
    
    maintain our relationships with key retailers;
    
    continually develop innovative new products that appeal to consumers;
    
    maintain strict quality standards; and
    
    deliver products on a reliable basis at competitive prices.
  Any increase in the costs, or decreases in the supply, of the raw materials necessary for our
business could have an adverse effect on our financial condition.
  We have significant indebtedness.
  If we fail to maintain an effective system of internal and disclosure controls, we may not be able
to accurately report our financial results or prevent fraud. As a result, current and potential
shareholders could lose confidence in our financial reporting, which would harm our business and
the trading price of our securities.
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Our business is subject to many regulations and noncompliance is costly .
  If we need to raise additional capital for our operating plan, our business would be harmed if we
were unable to do so on acceptable terms.
  The indentures governing our bonds and bank debt financing includes financial covenants that
restrict certain of our activities and impose certain financial tests that we must meet in order to
be in compliance with their terms.
  The loss of key senior management personnel could negatively affect our business.
  We cannot be certain that our product innovations and marketing successes will continue.
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The inability to successfully obtain or protect our patents could harm our competitive advantage .
  The products that we manufacture could expose us to product liability claims.
  The price for our common stocks may continue to be volatile.
  The liquidity of our stock depends in part on our continued listing with the American Stock
Exchange.
  As a result of our principal executive offices being located in Canada, and a majority of our
directors and certain of our officers residing in Canada, investors may find it difficult to
enforce, within the United States, any judgments obtained against our company or our directors or
officers.
  FORWARD-LOOKING STATEMENTS
  ITEM 4. CONTROLS AND PROCEDURES
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PART II  OTHER INFORMATION
 ITEM 6. EXHIBITS
 ExhibitNumber
    
    Exhibit Description3.1
    
    Altered Memorandum of Company (Amended) (incorporated by reference to Exhibit 3.1 to the
Companys Form 10-KSB filed on April 3, 2003).3.2
    
    Articles of the Company (incorporated by reference to the exhibits to the Companys
registration statement filed on February 24, 1992, as amended (No. 33-45020)).31.1
    
    Certification of Gordon Ellis, President and Chief Executive Officer of International
Absorbents Inc., pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.31.2
    
    Certification of David Thompson, Chief Financial Officer of International Absorbents Inc.,
pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.32.1
    
    Certification of Gordon Ellis, President and Chief Executive Officer of International
Absorbents Inc., pursuant to 18 U.S.C. Section 1350.32.2
    
    Certification of David Thompson, Chief Financial Officer of International Absorbents Inc.,
pursuant to 18 U.S.C. Section 1350.
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SIGNATURES
  INTERNATIONAL ABSORBENTS INC.
(Registrant)Date: December 9, 2005
    
    /s/ GORDON L. ELLISGordon L. EllisPresident & Chief Executive Officer(Principal Executive Officer)Date: December 9, 2005
    
    /s/ DAVID H. THOMPSONDavid H. ThompsonSecretary and Chief Financial Officer(Principal Financial Officer) 24