<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549
                                    FORM 10-Q

 (Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
     EXCHANGE ACT OF 1934.

                  For the quarterly period ended March 31, 1998
                                       or

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from               to
                                   ---------------  --------------------
                        Commission File Number 33-7106-A

                                 NATURADE, INC.
             (Exact name of registrant as specified in its charter)

              DELAWARE                            23-2442709
              --------                            ----------
        (State or other jurisdiction of       (I. R. S. Employer
        incorporation or organization)         Identification No.)

              7110 East Jackson Street, Paramount, California 90723
              -----------------------------------------------------
                    (Address of principal executive offices)

                                 (562) 531-8120
                                 --------------
              (Registrant's telephone number, including area code)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes  X    No
                                             -------  -------

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate by number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. 5,300,306 shares as of March
31, 1998.

                                       1

<PAGE>



                                    FORM 10-Q
                                QUARTERLY REPORT
                          Quarter Ended March 31, 1998

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                  PAGE NO.
                                                                                  --------
<S>                                                                               <C>
PART 1:           FINANCIAL INFORMATION

     Item 1.      Financial Statements

                  Statements of Financial Position at March 31, 1998               3
                   (unaudited) and September 30, 1997 (audited)

                  Statements of Operations for the three and six month             5
                  periods ended March 31, 1998 (unaudited) and March 31,
                  1997 (unaudited)

                  Statements of Cash Flows for the six month periods ended         6
                  March 31, 1998 (unaudited) and March 31, 1997 (unaudited)

                  Notes to Financial Statements                                    7

     Item 2.      Management's Discussion and Analysis of Financial Condition      8
                  and Results of Operations

PART II:      OTHER INFORMATION

     Item 6.      Exhibits and Reports on Form 8-K                                10


SIGNATURES                                                                        11

</TABLE>


                                       2
<PAGE>

ITEM 1.  FINANCIAL STATEMENTS





                                    NATURADE, INC.
                        Statements of Financial Position


                                     Assets
                                    --------

<TABLE>
<CAPTION>


                                March 31, 1998   September 30, 1997
                                  (Unaudited)       (Audited)
<S>                              <C>             <C>        
Current assets:
     Cash and cash equivalents   $ 4,616,419     $   157,585
     Notes receivable                 18,074              --
     Accounts receivable           1,231,469       1,404,660
     Income Tax Refund               100,000              --
     Inventories                   1,991,260       2,413,621
     Prepaid expenses                127,050          42,149
     Deferred income taxes           210,852         158,514
                                 -----------     -----------
          Total current assets     8,295,124       4,176,529

Available for sale security               --         217,000
Property and equipment, net        2,073,298       2,111,806
Intangible assets, net             1,149,047       1,177,507
Notes receivable                      88,339              --
Investment in joint venture           67,128          62,128
Other assets                           9,649           8,604
                                 -----------     -----------
          Total assets           $11,682,585     $ 7,753,574
                                 -----------     -----------
                                 -----------     -----------
</TABLE>

                 See accompanying notes to financial statements.

                                       3

<PAGE>
ITEM 1.  FINANCIAL STATEMENTS



                      Liabilities and Stockholders' Equity
                      ------------------------------------

<TABLE>
<CAPTION>

                                                   March 31, 1998  September 30, 1997
                                                     (Unaudited)       (Audited)

<S>                                                  <C>            <C>        
Current  liabilities:
     Notes payable                                   $ 1,473,254    $ 1,150,000
     Current installments of
        long-term debt                                   213,115        194,857
     Accounts payable                                    942,823      1,027,288
     Accrued expenses                                    321,741        341,251
     Income tax payable                                       --        106,998
                                                     -----------    -----------
          Total current liabilities                    2,950,933      2,820,394
                                                     -----------    -----------
Long-term debt, excluding current installments         2,109,173      2,235,908
                                                     -----------    -----------
Deferred income taxes                                     11,986         11,986
                                                     -----------    -----------
Stockholders' equity:

Preferred stock, .0001 par value; 1,500,000 shares
     authorized, issued and outstanding Series A
     convertible 1,250,024 shares at
     March  31, 1998(-0- at September 30, 1997)              125             --

Common stock; .0001 par value; 50,000,000 shares
     authorized, 5,300,306  issued and
     outstanding (3,297,223 at September 30, 1997)           530            330

Additional paid-in capital                             7,156,787      1,539,902
Retained earnings (deficit)                             (546,949)     1,061,654
Unrealized gain on security available
     for sale, net                                            --         83,400
                                                     -----------    -----------
          Total stockholders' equity                   6,610,493      2,685,286
                                                     -----------    -----------
          Total liabilities and
          stockholders' equity                       $11,682,585    $ 7,753,574
                                                     -----------    -----------
                                                     -----------    -----------
</TABLE>


                 See accompanying notes to financial statements.

                                       4
<PAGE>

                                 NATURADE, INC.
                            Statements of Operations
<TABLE>
<CAPTION>


                                       Three Months     Three Months      Six  Months      Six  Months
                                           Ended           Ended             Ended            Ended
                                      March 31, 1998   March 31, 1997   March 31, 1998    March 31, 1997
                                        (Unaudited)      (Unaudited)      (Unaudited)      (Unaudited)
                                        -----------      -----------      -----------      -----------
<S>                                     <C>              <C>              <C>              <C>        
Net sales                               $ 3,139,098      $ 3,035,180      $ 5,868,156      $ 6,230,123
                                                                                         
Cost of sales                             1,532,951        1,502,635        2,887,655        3,099,321
                                        -----------      -----------      -----------      -----------
     Gross profit                         1,606,147        1,532,545        2,980,501        3,130,802
                                                                                         
Selling, general and                                                                     
     administrative expenses              2,337,046        1,242,574        3,904,977        2,312,767
                                        -----------      -----------      -----------      -----------
     Operating income (loss)               (730,899)         289,971         (924,476)         818,035
                                                                                         
Other income (expenses):                                                                 
     Miscellaneous, net                      61,478            7,116          249,838           22,911
     Interest expense                      (109,329)         (90,462)        (210,476)        (171,445)
     Non-recurring charges                 (823,490)            --           (823,490)            --
                                        -----------      -----------      -----------      -----------
     Earnings before income tax                                                          
        expense (benefit)                (1,602,240)         206,625       (1,708,604)         669,501
                                                                                         
Income tax expense  (benefit)               (57,454)          82,000         (100,000)         267,000
                                        -----------      -----------      -----------      -----------
                                                                                         
     Net Income  (Loss)                 ($1,544,786)     $   124,625      ($1,608,604)     $   402,501
                                        -----------      -----------      -----------      -----------
                                        -----------      -----------      -----------      -----------
                                                                                         
Net Income  (loss) per common share                                                      
                                                                                         
     Basic earnings per share           ($     0.29)     $      0.04      ($     0.36)     $      0.15
                                        -----------      -----------      -----------      -----------
                                        -----------      -----------      -----------      -----------
     Weighted average number of                                                          
        shares used in computing                                                         
        basic earnings per share          5,297,378        2,797,223        4,472,897        2,693,992
                                        -----------      -----------      -----------      -----------
                                        -----------      -----------      -----------      -----------
                                                                                         
     Diluted earnings per share         ($     0.29)     $      0.04      ($     0.36)     $      0.14
                                        -----------      -----------      -----------      -----------
                                        -----------      -----------      -----------      -----------
     Weighted average number of                                                          
        shares used in computation of                                                    
        diluted earnings per share:       5,297,378        3,096,414        4,472,897        2,959,839
                                        -----------      -----------      -----------      -----------
                                        -----------      -----------      -----------      -----------
</TABLE>

                 See accompanying notes to financial statements


                                       5

<PAGE>

                                 NATURADE, INC.
 
                            Statements of Cash Flows

<TABLE>
<CAPTION>
 
                                              Six Months Ended    Six Months Ended
                                               March 31, 1998      March 31, 1997
                                               (Unaudited)          (Unaudited)
 
<S>                                            <C>                  <C>       
Net cash used in operating activities          ($1,345,374)         ($323,011)
                                               -----------          --------- 
 
Cash flows used in investing activities:
     Capital expenditures-Property and 
     equipment                                     (27,779)           (16,903)
                                               -----------          --------- 
Cash flows provided by financing activities:
     Net borrowings under line of
        credit agreements                          323,254            210,507
     Principal payments under long-term debt      (108,477)           (75,421)
     Net proceeds from exercise of warrants         26,582            204,218
     Proceeds from issuance of common and
        preferred stock                          5,590,628                 --
                                               -----------          ---------
Net cash provided by financing activities        5,831,987            339,304
                                               -----------          ---------
Net increase (decrease) in cash                  4,458,834               (610)
 
Cash at beginning of period                        157,585            120,143
                                               -----------          --------- 
Cash at end of period                           $4,616,419           $119,533
                                               -----------          --------- 
                                               -----------          --------- 
</TABLE>

                 See accompanying notes to financial statements


                                       6
<PAGE>


                                 NATURADE, INC.

                          Notes to Financial Statements

1.   The results of operations for the interim periods shown in this report are
     not necessarily indicative of results to be expected for the fiscal year.
     In the opinion of management, the information contained herein includes all
     adjustments necessary for fair presentation of the financial statements.
     All such adjustments are of a normal recurring nature. These financial
     statements do not include all disclosures associated with the Company's
     annual financial statements and accordingly, should be read in conjunction
     with such statements.

2.   Inventories are stated at the lower of cost (weighted average) or market
     (net realizable value); and consist of the following:
<TABLE>
<CAPTION>

                      March 31, 1998       September 30, 1997
                       (Unaudited)             (Audited)
                       -----------             ---------
<S>                   <C>                      <C>        
     Finished Goods   $  779,509               $   796,500
     Raw Materials     1,211,751                 1,617,121
                      ----------               -----------
          Total       $1,991,260               $ 2,413,621
</TABLE>


3.   Depreciation of property and equipment is provided over the estimated
     useful lives of the respective assets on the straight-line basis.

4.   Research and development costs are included in expenses when incurred.

5.   Trademarks and copyrights are being amortized using the straight-line
     method over a 17 year and 25 year period, respectively.

6.   The FASB has issued statement No. 128 "Earnings Per Share (EPS)" which
     became effective for periods ending after December 15, 1997. This statement
     requires restatement of all prior period EPS data presented. This statement
     simplifies the standards for computing earnings per share previously found
     in APB Opinion No. 15 and makes them comparable to international EPS
     standards. It replaces the presentation of primary EPS with the
     presentation of basic EPS and requires dual presentation of diluted EPS on
     the face of the income statement for all entities with complex capital
     structures.

     Basic EPS excludes dilution and is computed by dividing income available to
     common stockholders by the weighted average number of common shares
     outstanding for the period. Diluted EPS is computed similarly to fully
     diluted EPS pursuant to Opinion 15.


                                       7
<PAGE>



ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations

     This discussion contains "forward looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Although Naturade, Inc. (the
"Company" or the "Registrant") believes that the expectations reflected in such
forward looking statements are reasonable, such statements are inherently
subject to risk and the Company can give no assurance that such expectations
will prove to be correct. Such forward looking statements involve risks and
uncertainties and actual results could differ from those described herein and
future results may be subject to numerous factors, many of which are beyond the
control of the Company. Such risk factors include, without limitation, the risk
of changes or developments in the regulatory framework or product liability
principles applicable to the Company and its products, and the risk of
consolidation in the distribution channels expected to be used by the Company to
distribute its products. The Company undertakes no obligation to publicly
release the result of any revisions to these forward-looking statements that may
be made to reflect events or circumstances after the date hereof or to reflect
the occurrence of unexpected events.

Liquidity and Capital Resources
 
     The Company used cash of $1,345,374 in operating activities in the six
months ended March 31, 1998.

     The Company's working capital increased from $1,356,135 at September 30,
1997 to $5,927,737 at March 31, 1998. Such increase was largely due to the
closing of a transaction with, among others, Doyle & Boissiere LLC on December
15, 1997, (which transaction was reported by the Company on two Current Reports
on Form 8-K filed on October 17, 1997, and December 23, 1997, respectively), in
which the Company issued shares of its common and preferred stock in return for
$6,000,000 cash.

     Cash used for capital expenditures during the six month period totaled
$27,779. Management anticipates capital expenditures for the remainder of its
September 30, 1998 fiscal year of less than $100,000.

     The Company's cash provided by financing activities of $5,831,987 for the
six month period was the result of proceeds received from the above-referenced
transaction with Doyle & Boissiere LLC.

     Management is of the opinion that the Company has sufficient business,
liquidity and capital resources to finance its operations.

Results of Operations

     Total net sales for the second quarter ended March 31, 1998 increased
$103,918 or 3.4% but decreased $361,967 or 5.8% for the six month period ended
March 31, 1998 compared to the same periods last year. Of this amount, domestic
sales increased $66,574 or 1.2% but decreased $299,167 or 5.2% for the second
quarter and first six months respectively while international sales also
increased $37,344 or 17.6% but decreased $62,800 or 11.9% for these same
periods.

                                       8
<PAGE>


     Although the Company is still undergoing a reorganization, sales in the
second quarter showed an increase over the comparable period a year ago.
However, sales for the first six months of the current fiscal year are still
below the first six months of the prior year due primarily to conditions that
prevailed in the first quarter of the current year, namely a decrease in
promotional activity and the loss of sales related to the United States Drug
Enforcement Agency's ban on pseudophedrine, an ingredient present in four of the
Company's "Cold and Flu" category products.

     Gross profit as a percentage of sales increased 0.7% to 51.2% of sales for
the quarter ended March 31, 1998 from 50.5% for the same period last year and
increased 0.5% to 50.8% of sales for the six months ended March 31, 1998 from
50.3% of sales for the same period last year.

     Selling, General and Administrative expenses increased $1,094,472 or 33.5%
to $2,337,046 or 74.4% of sales for the quarter ended March 31, 1998 from
$1,242,574 or 40.9% for the same period last year, and also increased $1,592,210
or 29.5% to $3,904,977 or 66.6% of sales for the six months ended March 31, 1998
from $2,312,767 or 37.1% of sales for the same period last year. These increases
were primarily the result of selling and marketing expenses for the Company's
Performance Nutrition Division in the amount of $517,968 and $778,892 for the
second quarter ended March 31, 1998 and the six months ended March 31, 1998,
respectively. There were no expenses in the same periods last year as operations
in this division began in May 1997. Additionally, general and administrative
expenses increased $275,429 and $388,314 for the same periods. Increases in
consulting and legal fees accounted for the majority of these differences.

     Other expenses includes $823,490 of non-recurring charges recorded in the
three month period ended March 31, 1998. Following the Doyle & Boissiere
transaction on December 15, 1997, a comprehensive assessment of the business and
corporate assets was presented to the Board of Directors on February 18, 1998,
resulting in the establishment of a new strategic direction. Specifically,
corporate resources and management attention are to be focused on achieving
corporate growth in sales and earnings commensurate with growth in the dietary
supplement industry. Analysis of the company's product line, including sales
history, margin contribution, inventory turns and competitive position resulted
in the decision to write-off and physically dispose of inventory totaling
$466,000 (which is included in the non-recurring charges mentioned above). An
additional $200,000 reserve (also included in such non-recurring charges) was
recorded to reduce the value of discontinued inventory in process of being sold.

     Interest expense for the quarter ended March 31, 1998 increased $18,868 and
$39,031 for the six months ended March 31, 1998 compared to the same periods
last year.

     Income tax expense decreased by $139,154 and $367,000 for the three month
and six month periods ended March 31, 1998, respectively, compared to the same
periods last year, due to losses for the periods and the carryback benefits of
such losses.


                                       9
<PAGE>




                           PART II: OTHER INFORMATION

Item 6.  Exhibits & Reports on Form 8-K

Exhibits
<TABLE>
<CAPTION>

Number                              Description                          Page
------                              -----------                          ----
<S>             <C>                                                       <C>
10.17           Naturade, Inc.                                            13
                1998 Incentive Stock Option Plan

10.18           Incentive Stock Option Plan                               14
                with Bill D. Stewart dated March 2, 1998.

10.19           Incentive Stock Option Plan                               15
                with Ronald Ahrens dated April 20, 1998.

10.20           Employment Contract                                       16
                with Bill D. Stewart, CEO dated March 2, 1998.

</TABLE>

Reports on Form 8-K

         None.








                                      10

<PAGE>


                               S I G N A T U R E S

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                                   NATURADE, INC.
                                                   (Registrant)

DATE:    May 12, 1998                              By /s/ Bill D. Stewart
                                                   ------------------------
                                                   Bill D. Stewart
                                                   Chief Executive Officer

DATE:    May 12, 1998                              By /s/ Paul D.Shapnick
                                                   ------------------------
                                                   Paul D. Shapnick
                                                   Chief Financial Officer


                                       11
<PAGE>


                                  EXHIBIT INDEX
<TABLE>
<CAPTION>

Exhibit No.             Description                                  Page No.
-----------             -----------                                  --------

<S>               <C>                                                   <C>
  10.17           Naturade,Inc.                                         13
                  1998 Incentive Stock Option Plan

  10.18           Incentive Stock Option Plan                           14
                  with Bill D. Stewart dated March 2,  1998

  10.19           Incentive Stock Option Plan                           15
                  with Ronald Ahrens dated April 20,1998

  10.20           Employment Contract                                   16
                  with Bill D. Stewart, CEO dated March 2, 1998           

  27              Financial Data Schedule                               17

</TABLE>


                                       12