U.S. Securities and Exchange Commission
                      Washington, D.C. 20549

                            FORM 10-KSB

x   ANNUAL REPORT UNDER SECTION 13 or 15(d) OF THE SECURTIES AND
    EXCHANGE ACT OF 1934.

         For the fiscal year ended December 31, 2000

__  TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES
    AND EXCHANGE ACT OF 1934.

    For the transition period from ________________ to  ___________.

                        Commission File No.

                      National Sorbents, Inc.
                              Nevada

                           31-1291923

                    National Sorbents, Inc.
                  10139 Commerce Park Drive
                   Cincinnati, Ohio 45246


             Issuer's telephone number  (513) 860-4144

Securities registered under Section 12(b) of the Exchange Act:

                     Title of each class
Name of each exchange on which registered

Securities registered under Section 12(g) of the Exchange Act:
              Common Stock, par value $.001 per share
                         (Title of Class)

 Check whether issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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    .

Check if disclosure of delinquent filers in response to Item 405 of
the Regulation S-B is not contained in this form, and no disclosure
will be contained, to the best of registrant's knowledge, in
definitive proxy or information statements incorporated by
reference in Part III of this Form 10-KSB or any amendment to this
Form 10-KSB. [    ]

State issuer's revenue for its most recent fiscal year. $3,612,281

Aggregate market value of voting stock held by non-affiliates of
registrant as of December 31: $2,417,526


Shares of Common Stock outstanding as of December 31:  12,893,472

                DOCUMENTS INCORPORATED BY REFERENCE


Transitional Small Business Disclosure Format (check one): Yes ___;
No  X

                              10-KSB

                         TABLE OF CONTENTS

                              PART I

Item 1. Description of Business

Item 2. Description of Property

Item 3. Legal Proceedings

Item 4. Submission of Matters to a Vote of Security Holders

                              PART II

Item 5. Market for Common Equity and Related Stockholder Matters

Item 6. Management Discussion and Analysis or Plan of Operation

Item 7. Financial Statements

Item 8. Changes In and Disagreements with Accountants or Accounting
and Financial Disclosure

                             PART III

Item 9. Directors, Executive Officers, Promoters and Control
Persons; Compliance with Section 16(a)
             Of the Exchange Act
Item 10. Executive Compensation

Item 11. Security Ownership of Certain Beneficial Owners and
Management

Item 12. Certain Relationships and Related Transactions

Item 13. Exhibits and reports on Form 8-K


This Annual Report on Form 10-KSB contains statements that
constitute forward-looking statements. These statements appear in a
number of places in this Form 10-KSB and include statements
regarding the intent, belief or current expectations of National
Sorbents, Inc. together with its subsidiaries (referred in this
report as "we", "us" and "our") with respect to (i) our financing
plans, (ii) trends affecting our financial condition or results of
operations, (iii) the impact of competition, and (iv) the expansion
of certain operations. Investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that the actual results
may differ materially from those in the forward-looking statements
as a result of various factors. The information contained in this
Form 10-KSB, including, without limitation, the information under
"Risk Factors," "Management's Discussion and Analysis or Plan of
Operations" and "Description of Business" identifies important
factors that could cause or contribute to such differences. See
"Description of Business-Risk Factors-All forward-looking
statements should be read with caution."

                              PART I

Item 1. Description of Business

National Sorbents, Inc., ("NSI") is engaged in the business of
developing, manufacturing and marketing sorbent products
("sorbents") to industrial and governmental entities. Additionally,
NSI provides waste disposal management services to clients
(primarily one large customer in the Midwest) on a contractual
basis.

Sorbents are employed in control, containment, and clean up of a
variety of liquids including oil, chemical, acid, caustic, and
water based liquids. Sorbents may be comprised of either natural,
manufactured materials or a combination of both. The development of
products consisting of a combination of materials allows the
industry to offer products suited for specific application to the
type of spill. NSI concentrates on developing sorbents, which
maximize the amounts of liquids contained, controlled and cleaned
up from any spill.

NSI markets its sorbents under the trademarked name "MAXX". The
sorbents are categorized into three main product lines:

      MAXX ULTRA a general purpose absorbent engineered for maximum
absorption of coolants, solvents, water, oil and other liquids with
the exception of aggressive acids and caustics.

     MAXX SELECT is a specific purpose absorbent engineered for
maximum absorption of oil and petrochemicals while repelling water.

     MAXX RESCUE is a universal absorbent which will absorb
virtually any liquid including strong acids and caustics. The
ability of the product to absorb any type of liquid makes it
especially useful in controlling and containing spills of an
unknown origin.

Recent Developments

Industry Overview

Sorbent materials are used in increasing amounts for both large and
small situations, from hazardous waste control/cleanup through
industrial, medical, and mortuary applications. There is continuing
growth in the concern for the impact of released chemicals, oils,
hazardous materials, infectious and other toxic substances on both
people and the environment. Federal and local regulations regarding
the control/cleanup of spills as well as the ultimate disposal of
sorbent materials used in the process are becoming more restrictive
and specific. Generators are legally liable for the proper
handling, control, and disposal of these materials. This constant
increase in laws and enforcement mandates that companies be well
informed of the regulations and the potential results/effects of
any violation.

All private and governmental functions are being mandated to pursue
waste minimization, resource recovery, and controlled disposition
of materials used in the process. Proper sorbent material selection
and usage provides fast and efficient control and cleanup of any
incidence, provides personnel protection to those involved in the
process, as well as protection to the safety personnel, such as
fire and other emergency personnel, involved in the process.

Environmental concerns are the source of additional regulation and
control of materials used by industry and governments.

The industry is comprised of a range of companies from
wholesaler/distributors, through manufacturers/distributors, to
direct manufacturers of sorbent materials. The relative size of
companies in the industry ranges from small distributors through
multi-national producers.

The product which may be classified as sorbents range from the
basics, such as clay, sawdust, rags, etc. through the application
specific man-made materials developed to maximize the amount of
waste/spill controlled.

Competition

There are a large number of companies classifying themselves as
providers of sorbent, but the major companies in the industry are
less than twenty, and include such companies as 3M, Ergon, SPC,
SpillTech, New Pig Corp., and NSI.

The determinants of success in the market are the combination of
product knowledge, application, quality, response and support at
the time of an occurrence. NSI is acknowledged as an industry
leader in these categories and maintains its commitment to support
the needs of its customers.

Intellectual Property

Sorbents are produced from natural materials as well as generic
formulated materials. The generic composition of the material
precludes the acquisition of patents on the product. NSI does
pursue design patents both domestically and internationally for
products, which it has developed and which offer unique features to
the user of the product.  Presently, we have a patent pending on a
filter pouch.  NSI owns various trademarks on product lines, which
it has been awarded over time.

NSI has registered the trademark MAXXr as the unique identification
of the differentiation between its products and that of
competitors. NSI vigorously protects this trademark.

History and Organization

Daniel B. and Leslie E. Jones formed NSI as a proprietorship in
1988. NSI was incorporated in the State of Ohio on January 18, 1990
and reincorporated in the State of Nevada on January 19, 2000. NSI
shares are traded under the symbol "NSIE" on the Over the
Counter/Bulletin Board market.

On January 19, 2000 NSI reorganized as a Nevada corporation, while
maintaining its administrative, sales and manufacturing facilities
in Cincinnati, Ohio. Following the reorganization NSI acquired all
of the outstanding shares of Polyspherics Corporation, a Nevada
Corporation, with no assets, liabilities, revenues or operations.
Subsequent to the completion of the acquisition of Polyspherics,
NSI merged its wholly owned subsidiary into itself and is the
surviving entity for reporting purposes.

NSI has historically engaged in two segments of the environmental
industry, the first being the sale of sorbent materials to
distributors and end-users of the product, and the second being the
contract management of waste disposal services for clients,
primarily one large Midwest client. The sale of sorbents
represented 59% and 49% of the total revenues of NSI for the years
ended December 31, 2000 and 1999, respectively.  Revenues from
contract activities represented 41% and 51% of total revenues for
NSI for the years ended December 31, 2000 and 1999 respectively,
with a single waste management customer representing 98% of
revenues from contract activities for the years ended December 31,
2000 and 1999.


Potential Expansion of Business

NSI has followed the corporate philosophy of identifying areas
and/or industries where the control of various materials and
liquids is a critical concern.

One of the most recent industries identified in this process is the
mortuary industry. After several years of development and testing,
during the fourth quarter of 1999 NSI introduced a line of products
developed specifically to provide maximum control of body fluids
and process fluids used during the preparation for interment or
cremation of human corpses.  The mortuary product line represented
1.5% of total sales for the year ending December 31, 2000.

Employees

At December 31, 2000, NSI employed twenty-nine (29) individuals.
The distribution of employees by function is as follows:

     Production                    21
     Sales and marketing            5
     Administration                 3

No employees of NSI are covered by a collective bargaining
agreement. NSI has employment contracts with Daniel B. and Leslie
E. Jones, which automatically renew on an annual basis, no other
employees are covered by an employment contract.

Risk Factors

All forward-looking statements should be read with caution.
Statements in this Annual Report on Form 10-KSB under the captions
"Description of Business," "Management's Discussion and Analysis or
Plan of Operations," and elsewhere in this Form 10-KSB, as well as
statements made in press releases and oral statements that may be
made by us or by officers, directors or employees acting on our
behalf, that are not statements of historical fact, constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors, including those described in this Form 10-KSB under the
caption "Risk Factors," that could cause our actual results to be
materially different from the historical results or from any future
results expressed or implied by such forward-looking statements. In
addition to statements which explicitly describe such risks and
uncertainties, readers are urged to consider statements labeled
with terms "believes," "expects," "plans," "anticipates," or
"intends," to be uncertain and forward-looking. All cautionary
statements made in this Form 10-KSB should be read as being
applicable to all related forward-looking statements wherever they
appear. Investors should consider the following risk factors as
well as risks described elsewhere in this Form 10-KSB.

NSI has experienced losses. During its history NSI has experienced
net losses from its operations. NSI had a net loss of $632,003 for
the year ended December 31, 2000, as compared with a net loss of
$37,677 for the year ended December 31, 1999.  The results for the
year ended December 31, 2000 were adversely affected by the
substantial shortfall in Environment sales due to an explosion at
the plant of the key waste management customer and their subsequent
shutdown.  Other factors affecting results in 2000 included
inefficiencies in the manufacturing process and extra marketing
costs.  The results for the year ended December 31, 1999, included
the onetime gain of $497,863 as the result of a settlement
agreement with a prior employee/finance source.  NSI's losses
before extraordinary gains were $632,003 and $535,540 for the years
ended December 31, 2000 and 1999, respectively.  NSI cannot assure
that it will operate profitably in the near future if at all.

NSI has a negative net worth.  At December 31, 2000, NSI has a
negative net worth of $1,183,967. NSI cannot assure you that we
will be able to operate profitably in the future, if at all.

NSI may continue to need financing or additional equity to meet our
future capital requirements. At December 31, 2000 current
liabilities exceeded current assets by $1,460,541 and total
liabilities exceeded total assets by $1,183,967. NSI continues to
explore additional sources for financing to meet the financial need
of the company.  NSI is in the final stages of determining the
amount and form of the needed additional financing.  Negotiations
are underway to determine the terms of additional debt financing.
The outcome of those discussions is not assured, however.

Existing shareholders are able to exercise control. Officers and
directors beneficially own approximately 32.4% of the outstanding
shares of common stock and Leslie E. Jones, Exec. Vice President,
owns approximately 32.2%. The Articles of Incorporation do not
provide for cumulative voting rights.

Loss of key employee could jeopardize NSI. Daniel B. Jones', the co-
founder of NSI with his wife Leslie E. Jones, and currently
President of NSI, continued contributions are critical to the
success and future performance of the company. Mr. Jones is
recognized as a true leader of the commercial sorbent industry, as
well as an industry leader in knowledge of proper procedures to be
employed in the control, containment and clean-up of material
spills. Loss of Mr. Jones leadership in these areas could be
devastating to the continued operations of NSI. NSI maintains key
man term life insurance totaling $1,000,000 on the life of Mr.
Jones.

Intense competition could affect market share. NSI manufactures and
sells its sorbent products in a highly competitive market comprised
of numerous companies of varying financial strength. This variety
at times causes pricing pressure on sorbent materials.
Additionally, the variety of types of products and variation in
effectiveness of the product create multiple levels of competition.

NSI cannot predict or assure the potential investor of its ability
to grow its market share or in fact to maintain current share
levels in light of the diversity of the competitive forces
affecting the sorbent market.

No dividends are anticipated. NSI has never declared or paid any
cash or other dividends on its common stock. At present we do not
anticipate paying any dividends on the common stock and intend to
devote any earnings to the further development and growth of our
business. Investors who anticipate the need for immediate income
from their investment should refrain from purchasing our common
stock.

Common stock may lack liquidity. To date shares of common stock of
NSI have traded on the NASDAQ Over the Counter/Bulletin Board
market. We cannot however assure a shareholder that there is or
will be a ready market to buy or sell shares when desired.

Future sales of common stock by existing shareholders could
adversely affect the price of our stock.

Officers and directors of the NSI control 25.3% of the outstanding
shares of the company.  Action by either of these groups to divest
of their holdings could have a negative effect on the price and
capability to divest of individual holdings.

Item 2. Description of Property.

NSI's manufacturing and office facilities are located at 10139
Commerce Park Drive, Cincinnati, Ohio. The facility is comprised of
a 40,000 square foot office/production facility situated on five
acres of land. The site is located in an industrial park with
multiple direct accesses to the interstate highway system. A twenty-
five year mortgage note finances the property with an outstanding
balance of $607,799 at December 31, 2000.  The property is pledged
as collateral to secure the mortgage note.  The note provides for
adjustable monthly payments, currently $5,616, and bears an
interest rate of 9.875%, which is adjustable annually at July 1.
The rate adjustment is subject to a 2.0% annual increase limitation
and a maximum annual rate of 14.50%.

NSI believes the facility is of sufficient size to handle all
production and administrative functions necessary to meet its
current and anticipated operating activities, with the knowledge
that the property provides adequate space for potential expansion
required by future growth of operations.


Item 3. Legal Proceedings.

NSI is involved in various legal actions arising out of its normal
course of business. The officers and directors of NSI do not
believe that an adverse decision on any of these actions, whether
considered individually or in the aggregate, will have a material
adverse affect on the company or its financial position.

Item 4. Submission of matters to a Vote of Security Holders

There were no matters submitted to a vote of stockholders during
the fiscal year ended December 31, 2000.


                              PART II

Item 5. Market for Common Equity and Related Stockholder Matters.

Price range of Common Stock

The common stock of NSI has been traded on the NASDAQ OTC Bulletin
Board under the symbol "NSIE."  The following table sets forth, for
the fiscal periods indicated, the high and low selling prices of a
share of common stock as reported by the OTC Bulletin Board for
each calendar quarter for the two prior years. Such quotations
reflect actual sale transaction prices rather than inter-dealer
prices.

Quarter ended             Low                         High
Dec. 31, 2000           $ 0.1875                    $ 0.7500
Sep. 30, 2000             0.3750                      1.0313
Jun.  30, 2000            0.5100                      1.3750
Mar.  31, 2000            1.0625                      2.0000
Dec. 31, 1999             0.4375                      2.0000
Sep. 30, 1999             0.4375                      0.9375
Jun. 30, 1999             0.3438                      1.5625
Mar. 31, 1999             1.1250                      1.5000
Dec. 31, 1998             0.7500                      1.3750

                   Prior quarters traded under "NSES"

As of December 31, 2000, the closing bid price per share of common
stock was $ 0.1875.  There are approximately 4,000 holders of
record of the common stock.

Item 6. Management's Discussion and Analysis or Plan of Operations.

All statements contained herein that are not historical facts,
including but not limited to, statements regarding our current
business strategy and our plans for future development and
operations, are based upon current expectations. These statements
are forward-looking in nature and involve a number of risks and
uncertainties. Generally, the words "anticipates," believes,"
"estimates," "expects" and similar expressions as they relate to
NSI and its management are intended to identify forward-looking
statements. Actual results may differ materially. Among the factors
that could cause actual results to differ materially are those set
forth under the caption "Description of Business-Risk Factors."  We
wish to caution readers not to place undue reliance on any such
forward-looking statements, which statements speak only as of the
date made.

Since its inception in 1988 NSI has been active in the production,
distribution and selling of sorbent materials used in the control,
containment and removal of material spills of both hazardous and
non-hazardous materials. NSI has evolved from being primarily a
distributor of such products to being a significant converter of
sorbent materials from a raw product to a usable product.
Additionally, NSI has developed as a significant provider of
material disposal management services to the generators of such
materials. NSI's operating history exceeds ten years, but the
risks, expenses and difficulties encountered by start-up companies
must be considered when evaluating NSI's prospects.

Operating expenses of NSI, although not entirely predictable, can
be estimated with a reasonable measure of accuracy and except for
the fixed costs associated with the facility can be controlled by
management of the company. Several factors, including marketing of
NSI products and services, the types of products sold, competitive
pressures, distribution costs and order size, affect both the level
and timing of operating expenses.

Since its inception NSI has incurred costs associated with
developing product identity, name recognition, testing and
verifying product quality and appropriate use, developing products
for acceptance by new markets, costs of product introduction
including advertising and market research. Management foresees such
expenses continuing in the future as NSI develops a complete line
of product and services necessary to be a leader of the sorbent
industry.

To date NSI has financed its net expenditures through a combination
of borrowings and the sale of common stock of the company. Since
its incorporation in 1990 through December 31, 2000 NSI has issued
12,893,472 shares of its common stock for a net cash consideration
$ 5,445,670.

Results of operations

Year ended December 31, 2000 compared to year ended December 31,
1999

Revenue

Net revenue increased $61,020, or 1.7%, to $3,612,281 from
$3,551,261 for the years ended December 31, 2000 and 1999
respectively.  Revenues from the sales of sorbent materials
increased $336,943, or 21%, to $1,976,069 from $1,639,126 for the
respective years.  Revenue from sales of Environmental services
decreased $313,370, or 17%, year over year due to a catastrophic
event at the plant of the principal customer of these services.
Freight revenues were up $42,424, or 39%; and sales returns and
allowances were small and commensurate with activities.  The
mortuary product line sales came in at $52,619 for its first full
year of sales following its launch in December of 1999; in line
with expectations.

Cost of sales and revenues

Cost of sorbents sold increased $478,710 over 1999.  Environmental
services costs of goods declined in line with the decrease in
activity.  Overall, cost of goods sold increased by $177,380, or
6.3%.  This change was primarily the result of increasing
manufacturing costs due to cash flow difficulties and inefficient
scheduling of production.

Gross profit

Gross profit declined by $116,360, or 15.5%, to $634,194 from
$750,554 for the years ended December 31, 2000 and 1999,
respectively.  The changes in revenues and costs discussed in the
preceding paragraphs contributed to this decline. The decline in
profits was also the result of the decision to pursue sales through
different channels that resulted in decreased margins, but the
promise of higher volumes.

Operating costs and expenses

Operating expenses increased $165,693, or 14%, to $1,389,136 from
$1,223,443 for the years ended December 31, 2000 and 1999,
respectively.  This increase resulted from increased advertising
and promotional expenses.

Other income/expense

The net other income/expense is $122,939 for the year ending
December 31, 2000.  Approximately $200,000 is included in other
income related to the environmental segment.  More information was
obtained during the current year that allowed management to better
clarify issues for which liabilities had previously been recorded
and to determine that these liabilities were no longer necessary.
The balance of this total is composed of interest expense, which is
up slightly from the prior year.

Taxes on income

The company has accumulated significant loss carry-forwards for
federal and state income tax purposes. Since the Company has not
attained profitability in any of its years of operations, any
recognizable tax benefit of current losses has been offset by a
valuation reserve reflecting the uncertainty of using the carry-
forward. The carry-forwards begin to expire in the year 2005.


Year ended December 31, 1999 compared to year ended December 31,
1998

Revenues

Net revenues decreased $777,931, or 18%, to $3,551,261 from
$4,329,192 for the years ended December 31, 1999 and 1998
respectively. Revenues from the sale of sorbent materials increased
$408,263, or 33%, to $1,639,126 from $1,230,863 for the years ended
December 31, 1999 and 1998 respectively, as the result of an
increase in product shipped rather than a price change.
Environmental revenues decreased $1,377,412, or 43%, to $1,807,141
from $3,184,553 for the years ended December 31, 1999 and 1998
respectively, as the result of the lower volume of services
performed, rather than a change in pricing of services. The
decrease in services reflected a temporary suspension of production
at a facility of our major customer during the second and third
quarter of 1999, by the fourth quarter activity levels at that
facility had returned to normal levels. Freight billings increased
$5,975, or 6% to $109,947 from $103,972 for the years ended
December 31, 1999 and 1998 respectively, as the result of an
increase in activity and not a rate increase. Sales returns &
allowances decreased $185,243 or 97%, to $4,953 from $190,196 for
the years ended December 31, 1999 and 1998 respectively.

Cost of sales and revenues

Cost of sorbents sold increased $267,215, or 26%, to $1,325,791
from $1,058,576 for the years ended December 31, 1999 and 1998
respectively. The increase reflects the increased amount of
material sold rather than an increase in unit cost of product. Cost
of environmental revenues decreased $948,643, or 39%, to $1,474,916
from $2,423,559 for the years ended December 31, 1999 and 1998
respectively. The decrease reflects the lower disposal activity
level experienced rather than a reduction in price.

Gross profit
The changes in revenues and costs discussed in the preceding
paragraphs resulted in a gross profit decrease of $96,503 or 11%,
to $750,554 from $847,057 for the years ended December 31, 1999 and
1998 respectively. The decrease is attributed to an overall
decrease in revenues offset by the shift of revenues to a higher
profit line.

Operating Costs and Expenses

Operating expenses increased $215,186 or 21%, to $1,223,443 from
$1,008,257 for the years ended December 31, 1999 and 1998
respectively. The increase is primarily attributed to the increase
in sales promotion activities related to growing the sorbent sales,
higher commissions related to the growth in sorbent sales, and
increased professional fees related to negotiating the debt
restructuring and audit fees related to bringing the company to
full reporting status.

Other income/expense

Other expense, net was $62,651 for the year ended December 31, 1999
as compared to $27,037 for the year ended December 31, 1998. The
company realized a gain from insurance proceeds of $36,410 during
1998 which accounts for the difference between the two years.

The company experienced a on time gain resulting from debt
restructuring during the year ended December 31, 1999 in the amount
of $497,863.

Taxes on income

The company has accumulated significant loss carry-forwards for
federal and state income tax purposes. Since the Company has not
attained profitability in any of its years of operations, any
recognizable tax benefit of current losses has been offset by a
valuation reserve reflecting the uncertainty of using the carry-
forward. The carry-forwards begin to expire in the year 2005.


Liquidity and Capital Resources

Cash was $12,716 and $12,287at December 31, 2000 and 1999
respectively.  Net accounts receivable were $296,674 and $412,651
at December 31, 2000 and 1999 respectively.  The decrease of
receivables at December 31, 2000, as compared to December 31, 1999,
reflects business activity and normal timing differences and is not
indicative of any specific trend.

The net working capital deficit was $1,460,541 and $1,380,402 at
December 31, 2000 and 1999 respectively.  The deterioration in the
net deficit reflects the impact of business activity at December
31, 2000, as well as the impact of timing.

The company is liable for several notes payable. Total notes
payable indebtedness amounted to $756,340 and $805,914 at December
31, 2000 and 1999, respectively.  In addition, the company had a
note outstanding to its president for $415,066 at December 31, 2000
and 1999.  The balance of this indebtedness was the short term
portion of long-term debt.  The change for the year was the result
of normal amortization and issuance of common stock for a portion
of the notes payable.

Long term indebtedness amounted to $612,734 and $611,145 at
December 31, 2000 and 1999 respectively. The increase reflects the
normal amortization in accordance with loan agreements netted
against the addition of a capital lease.


Long-term indebtedness of the company consisted of the following
instruments:
A mortgage note, secured by the real estate of the company, in the
principal amount of $607,799, the note bears interest at the rate
of one-year treasury notes plus three and one-half percent. The
rate of interest on the mortgage is adjustable to the then current
rate at each July 1, but never in excess of fourteen and one-half
percent, nor less than one and one-half percent. The mortgage note
has a maturity date of July 1, 2023.

The Company is obligated under two capital leases. The first lease
bears an interest rate of 14.25% and has a term of five years
maturing in May 2001.  The commitment of principal and interest for
the year 2001 is $2,180.  The second lease covers computer
networking equipment.  The lease bears an interest rate of
approximately 17.75% and is for a period of three years.  Monthly
payments are $748.

Cash requirements to fund the operations and growth of the company
have historically exceeded cash flow from operations. Accordingly,
the company has funded its cash requirements through a combination
of debt and equity. The company foresees the need to continue
similar funding arrangements in the immediate future.

The company does not have material specific capital requirements
outside the funds necessary to grow the organization.


Year 2000

The company successfully implemented a company-wide computer
network during the year 2000 on which it now manages its major
accounting functions.


Item 7. Financial Statements.

The Financial Statements may be found beginning on page F 1,
"Financial Statements," following Part III of this Annual Report on
Form 10-KSB.

Item 8. Changes In and Disagreements With Accountants on Accounting
and Financial Disclosure.


  1.   By letter dated March 5, 2001, National Sorbents, Inc.
       terminated its relationship with Vanburen & Hauke, LLC as
       its independent accountants.

  2.   The former accountant's report on the financial statements
       for the two most recent fiscal years was modified as to
       uncertainty that the Company will continue as a going
       concern.

  3.   The decision to change accountants was approved by the
       board of directors.

  4.   During the two most recent fiscal years and subsequent
       period to date, there have not been any disagreements with
       the former accountant on any matters of accounting
       principles or practices, financial statement disclosure, or
       auditing scope or procedure.

  5.   National Sorbents, Inc. has engaged, by letter dated May 1,
       2001 the accounting firm of Clark, Schaefer, Hackett & Co.
       to serve as independent public accountants for National
       Sorbents, Inc.

  6.   National Sorbents, Inc. has requested that Vanburen & Hauke
       provide a letter addressed to the Securities and Exchange
       Commission stating whether Vanburen &Hauke agrees with the
       statements made by National Sorbents, Inc. A copy of such
       letter has been filed as an exhibit to this Form 10-KSB.

                             PART III

Item 9.  Directors, Executive Officers, Promoters and Control
Person; Compliance with Section 16(a) of the Exchange Act.

Our directors and executive officers are as follows:

Name                                                    Age
Position

Daniel B. Jones                                         64
President, Treasurer, and Director

Leslie E, Jones                                         51
Exec. Vice President, Secretary, and Director

Dr. John P. Bryk                                        43
Director

Efthimios Mamaligas                                     40
Vice President Sales & Marketing


Committees

During 2000, only special meetings were held to approve various
corporate authority changes mandated by changes in management
personnel.

No committees have been formed nor members appointed.





Biographies

Daniel B. Jones

Mr. Jones has been President, Chief Executive Officer, Treasurer,
and a member of the Board of Directors since the incorporation of
the company in January, 1990. From 1998 until January, 1990, he was
the Vice President and General Manager of Environmental Absorbent
Supply, Inc., a sorbent manufacturer and distributor. From 1980 to
1988 he was General Manager of Cincinnati Fiber, Inc., a sorbent
manufacturer. From 1965 to 1980, he was President and a Director of
Premier Industries, Inc., a manufacturer of component parts for the
aircraft, automobile and steel industries. In his capacity of
President of NSI, Mr. Jones has been primarily responsible for the
development of the company from a distributor of products, to a
processor and manufacturer of its own product line. His
responsibilities have included sales, marketing, administration,
finance, product development, operations and contract management.

Leslie E. Jones

Ms. Jones has been the Executive Vice President, Secretary,
controlling shareholder and a member of the Board of Directors
since the incorporation of the company in January, 1990. From 1987
to 1988, she was an Administrator for Hondrous Academy, an adult
education school. From 1983 to 1988, she was a real estate sales
person for Sibcy-Cline,Inc., a real estate brokerage firm. From
1978 to 1982, she was a sales person and buyer for Pogues
Department Store, an upscale retail department store. In her
capacity as Executive Vice President of NSI, Ms. Jones has been
responsible for Human Resources, legal, Public Relations, and
Product Promotion of the company.


Efthimios Mamaligas

Mr. Mamaligas has been a Vice President of the company since
September, 1997. He has been responsible for both the domestic and
international Sales and Marketing efforts of the company. Prior to
joining the company Mr. Mamaligas was a senior manager with the
Chiquita division of United Brands Inc., as well as serving in a
similar capacity with Gibson Greeting Cards, Inc.

Each Director holds office until our annual meeting of stockholders
and until his successor is duly elected and qualified. Officers are
elected by the Board of  Directors and hold office at the
discretion of the Board of Directors. Daniel B. and Leslie E. Jones
are husband and wife. No other family relationships exist between
any of our directors and executive officers.

Section 16(a) Beneficial Ownership Reporting Compliance.

Section 16(a) of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), requires our directors and executive
officers, and persons who beneficially own more than the percent of
a registered class of our equity securities, to file with the
Securities and Exchange Commission (the SEC) initial reports of
ownership and reports of changes in ownership of Common Stock and
other equity securities. Officers, directors, and persons who
beneficially own more than ten percent of a registered class of our
equities are required by the regulations of the Commission to
furnish us with copies of all Section 16(a) forms they file.

To our knowledge, based solely on review of the copies of such
reports furnished to the Company, during the fiscal year ended
December 31, 2000, all Section 16(a) filing requirements applicable
to our officers, directors, and greater than ten percent beneficial
owners were complied with.


Item 10. Executive Compensation.

Executive Compensation

The following table sets forth the annual and long-term
compensation for services in all capacities for the fiscal year
ended December 31, 2000 paid to Daniel B. Jones, our President and
a director, Leslie E. Jones, our Exec. Vice President and a
director. No other executive officer received compensation
exceeding $100,000 during the fiscal year ended December 31, 2000.





                           Summary Compensation Table
<Table>

                 <c>    <c>        <c>       <c>       <c>         <c>         <c>        <c>

                           Annual compensation                  Long term compensation
                    --------------------------------     ----------------------------------------
                                                          Awards                  Payouts
                                                          ---------------------   ----------------
Name and Position   Year   Salary     Bonus     Other     Restricted  Securities  LTIP       All
                           ($)        ($)       Annual    Stock       underlying  Payouts    other
                                                Comp.     Awards ($)  options /   ($)        Comp.
                                                ($)                   SARs (#)               ($)
Daniel B. Jones,     2000   $48,000        -          -           -           -         -         -
President and        1999   $48,000        -          -           -           -         -         -
Director

Leslie E. Jones,     2000   $48,000        -          -           -           -         -         -
Vice President and   1999   $48,000        -          -           -           -         -         -
Director
</Table>


                           OPTIONS TABLE

                Options Granted in Last Fiscal Year

No Stock options were granted in the fiscal years ended December
31, 2000 and 1999.

Director Compensation

No compensation was granted to directors for their participation in
meetings of the Board of Directors during the fiscal years ended
December 31, 2000 and 1999.

Option and Award Plan

At the present time and during the fiscal years ended December 31,
2000 and 1999 there was no stock option or stock award plan in
place in the company.

401(k) Savings Plan

The Company has adopted a 401(k) savings plan whereby participants
can elect to defer up to a specified maximum of their compensation.
The plan presently does not provide for any matching contributions
by the company. The Company pays all administrative functions
required by the operation of the plan.

Employment Agreements

Mr. Daniel B. Jones, President and Ms. Leslie E. Jones, Exec. Vice
President are employed in accordance with employment agreements
dated 1990 which provide automatic renewal each December 31 for a
one year period.

Item 11. Security Ownership of Certain Beneficial Owners and
Management.

Principal Stockholders

The following table sets forth information known to us, as of March
30, 2001, regarding the beneficial ownership of our voting
securities by (i) each person who is known by us to own of record
or beneficially more than 5% of the outstanding Common Stock, (ii)
each of our directors and the Named Executive Officers, as defined
in Item 6, and (iii) all directors and executive officers as a
group. Unless otherwise indicated, each of the stockholders listed
in the table below has sole voting and dispositive power with
respect to shares beneficially owned by such stockholder.


Number of Shares
Name of Beneficial Owner (1)                  Beneficially Owned
Percent of Class (2)

Leslie E. Jones
4,156,137                                               32.2 %

All directors and executive
4,172,803                                               32.4 %
Officers as a group (2 persons)

(1)  The address for Ms. Jones is c/o National Sorbents, Inc.,
     10139 Commerce Park Drive, Cincinnati, Ohio 45246.
(2)  Shares of Common Stock are deemed outstanding for purposes of
     computing the percentage of beneficial ownership if such shares of
     Common Stock are exercisable or convertible within 60 days of the
     date of this Form 10-KSB.

Item 12. Certain Relationships and Related Transactions.

A single customer, who generates approximately 99% of the revenue
from environmental services and NSI are party to a purchase
contract covering the services to be provided by NSI. The contract
provides for periodic review of the pricing schedules on specified
waste streams, as well as providing for pricing updates on new
waste streams after approval of the profile at the final disposal
facility. The contract expires on December 31,2001.

Item 13. Exhibits and Reports on Form 8-K.

Financial Statements for the Year Ended December 31, 2001

                   NATIONAL SORBENTS, INC.

                      Table Of Contents


                                                      Page


Independent Auditors' Report                            1

Financial Statements

   Balance Sheets                                     2-3

   Statement of Operations                              4

   Statement of Cash Flows                              5

   Statements of Changes in Stockholders' Deficit       6

   Notes to the Financial Statements                 7-14





                Independent Auditors' Report

To the Board of Directors
National Sorbents, Inc.:

We  have  audited the accompanying balance sheet of National
Sorbents,  Inc.  as of December 31, 2000,  and  the  related
statements  of  operations,  cash  flows,  and  changes   in
stockholders'  deficit  for  the  year  then  ended.   These
financial statements are the responsibility of the company's
management.  Our responsibility is to express an opinion  on
these financial statements based on our audit. The financial
statements  of  National Sorbents, Inc. as of  December  31,
1999 were audited by other auditors whose report dated March
26,   2000  included  an  explanatory  paragraph  describing
conditions that raised substantial doubt about the Company's
ability to continue as a going concern.

We conducted our audit in accordance with generally accepted
auditing  standards.  Those standards require that  we  plan
and  perform the audit to obtain reasonable assurance  about
whether  the  financial  statements  are  free  of  material
misstatement.  An audit includes examining, on a test basis,
evidence  supporting  the amounts  and  disclosures  in  the
financial  statements. An audit also includes assessing  the
accounting principles used and significant estimates made by
management,  as  well  as evaluating the  overall  financial
statement presentation.  We believe that our audit  provides
a reasonable basis for our opinion.

In  our opinion, the financial statements referred to  above
present  fairly,  in  all material respects,  the  financial
position of National Sorbents, Inc. at December 31, 2000 and
the  results of its operations, cash flows, and  changes  in
stockholders' deficit for the year then ended in  conformity
with generally accepted accounting principles.

The  accompanying  financial statements have  been  prepared
assuming  that the Company will continue as a going concern.
As  discussed  in  Note 3 to the financial  statements,  the
Company  has incurred significant operating losses, and  has
significant working capital and stockholder deficits.  These
factors  raise  substantial  doubt  about  its  ability   to
continue  as a going concern.  Management's plans  are  also
described  in  the  note.  The financial statements  do  not
include  any adjustments that might result from the  outcome
of this uncertainty.

June 4, 2001
Cincinnati, Ohio

                   NATIONAL SORBENTS, NIC.
                        Balance Sheets
                  December 31, 2000 and 1999
<Table>

                                       <c>           <c>
                 Assets
                                              2000           1999

 Current assets:
  Cash                                     $   12,716           12,287
  Trade receivables, net:
   Environmental                               42,408          131,133
   Sorbents                                   254,266          281,518
                                          -----------    -------------
    Total trade receivables                   296,674          412,651
  Inventory:                              -----------    -------------
   Raw materials                              101,862          106,189
   Finished goods                             108,037           98,882
                                          -----------    -------------
    Total inventory                           209,899          205,071
                                          -----------    -------------
  Prepaid expenses                                              18,144
                                                1,459
  Employee advances                            14,867           10,428
                                          -----------    -------------
    Total current assets                      535,615          658,581
                                          -----------    -------------
  Property and equipment:
  Land and building                           850,000          850,000
  Factory equipment                           146,478          142,268
  Computers and office equipment               73,940           49,873
  Furniture and improvements                   29,799           29,799
  Construction in process                      58,482                -
                                          -----------    -------------
                                            1,158,699        1,071,940
  Less:  accumulated depreciation           (275,321)        (239,026)
                                          -----------    -------------
  Net property and equipment                  883,378          832,914

 Other assets                                   5,930            4,840
                                          -----------    -------------
     Total assets                         $ 1,424,923        1,496,335
                                          ===========    =============
</Table>
 See accompanying notes to financial statements.

                             -2-

            Liabilities and Stockholders' Deficit
<Table>
<S>                                                 <C>        <c>
                                                       2000       1999
                                                    ---------  ----------
 Current liabilities:
 Trade payables:
 Environmental
                                                    $  373,248     275,950
 Sorbents                                              723,029     802,386
                                                     ---------  ----------
 Total trade payables                                1,096,277   1,078,336
                                                     ---------  ----------
 Accrued expenses:
 Payroll, taxes                                         52,812      58,860
 Interest                                               38,805      23,875
 Other                                                  51,922      71,998
 Notes payable                                         325,379     380,940
 Notes payable - Stockholder                           415,066     415,066
 Current portion of long-term debt and capital
leases                                                  15,895       9,908
                                                     ---------  ----------
    Total current liabilities                        1,996,156   2,038,983
                                                     ---------  ----------
 Mortgage payable, net of current portion              600,084     608,967
 Capital lease, net of current portion                  12,650       2,178
                                                     ---------  ----------
 Total long-term debt                                  612,734     611,145
                                                     ---------  ----------
 Total liabilities                                   2,608,890   2,650,128
                                                     ---------  ----------
 Stockholders' deficit:
 Common stock; $0.001 par value, 50,000,000
  shares authorized, 12,893,472 and
  9,763,938 outstanding in 2000 and 1999,               12,893       9,764
respectively
 Paid-in capital                                     5,496,880   4,898,180
 Retained deficit                                   6,693,740) (6,061,737)
                                                    ----------  ----------
 Total stockholders' deficit                       (1,183,967) (1,153,793)
                                                    ----------  ----------
    Total liabilities and stockholders' deficit     $1,424,923   1,496,335
                                                    ==========  ==========
</Table>
                             -3-

                   NATIONAL SORBENTS, INC.
                   Statements of Operations
            Years ended December 31, 2000 and 1999
<Table>

                                             <c>          <c>
                                                    2000         1999
                                                -----------   ----------
 Revenues:
  Environmental                                  $ 1,493,771     1,807,141
  Sorbents                                         1,976,069     1,639,126
  Freight revenues                                   152,371       109,947
  Sales returns and allowances                       (9,930)       (4,953)
                                                 -----------    ----------
     Net revenue                                   3,612,281     3,551,261
 Cost of Sales:
  Environmental                                    1,182,723     1,474,916
 Sorbents                                          1,773,130     1,294,420
 Depreciation (Sorbents)                              22,234        31,371
                                                 -----------    ----------
                                                   2,978,087     2,800,707
                                                 -----------    ----------
     Gross Profit                                    634,194       750,554
                                                 -----------    ----------
 Operating Costs and Expenses:
  Salaries, wages and taxes                          497,787       542,380
  Advertising and promotion                          408,947       307,700
  Commissions                                        106,554        89,850
  Professional fees                                  138,447       125,292
  Communications                                      24,501        27,214
  Insurance                                           32,974        27,410
  Other administration                               179,926       103,597
                                                 -----------    ----------
                                                   1,389,136     1,223,443
                                                 -----------    ----------
      Loss from operations                         (754,942)     (472,889)

 Interest expense                                   (72,018)      (65,945)
 Other income                                        194,957         3,294
                                                 -----------    ----------
 Loss before extraordinary gain                    (632,003)     (535,540)
 Extraordinary gain on debt restructuring                  -       497,863
                                                 -----------    ----------
     Net loss                                    $ (632,003)      (37,677)
                                                 ===========    ==========
 Net loss per common share:
  Loss before extraordinary gain                 $    (0.06)        (0.07)
  Extraordinary gain on debt restructuring                 -          0.07
                                                 -----------    ----------
 Net loss                                        $    (0.06)             -
                                                 ===========    ==========
 Weighted average number of common shares
  outstanding                                     10,797,708     7,470,944
                                                 ===========    ==========
</Table>

See accompanying notes to financial statements.

                             -4-

                   NATIONAL SORBENTS, INC.
                   Statements of Cash Flows
            Years ended Decmeber 31, 2000 and 1999
<Table>

                                            <c>          <c>
                                                   2000         1999
 Cash flows from operating activities:          ----------  -----------
 Net loss                                      $ (632,003)      (37,677)

 Adjustments to reconcile net loss to net
  cash used by operating activities:
    Depreciation                                   36,295         31,371
     Stock issued for services                     51,000              -
     Extraordinary gain from debt                       -      (497,863)
restructuring
     Changes in operating assets and
liabilities:
      (Increase) decrease in accounts             115,977       (67,839)
receivable
      (Increase) in inventory                     (4,828)       (37,198)
      (Increase) decrease  in prepaid expenses     16,685       (10,164)
      (Increase) in employee advances             (4,439)       (10,428)
      (Increase) in other assets                  (1,090)          (385)
      Increase in trade payables                   17,941        407,428
      (Decrease) in accrued expenses             (11,194)      (155,163)
                                               ----------    -----------
 Net cash used by operating activities          (415,656)      (381,368)
                                               ----------    -----------
 Cash flows from investing activities:
    Purchase of equipment                        (86,759)       (10,040)
                                               ----------    -----------
 Net cash used by investing activities           (86,759)       (10,040)
                                               ----------    -----------
 Cash flows from financing activities:
   (Decrease) in cash overdraft                         -        (4,156)
   Increase in notes payable                            -        243,940
   Proceeds from capital lease                     20,759              -
   (Decrease) in Moon note                              -      (350,000)
   Payments on notes payable                      (3,061)        (1,546)
   Payments on mortgage debt                      (6,355)        (4,848)
   Payments on capital lease                      (6,828)        (5,060)
   Proceeds from sale of common stock             498,329        525,365
                                               ----------    -----------
 Net cash provided by financing activities        502,844        403,695

 Net increase in cash                                 429         12,287

 Cash at beginning of year                         12,287              -
                                               ----------    -----------
 Cash at end of year                           $   12,716         12,287
                                               ==========    ===========
</Table>
 See accompanying notes to financial statements.


                             -5-

                             NATIONAL SORBENTS, INC.
                  Statements of Changes in Stockholders' Deficit
                      Years Ended Decmeber 31, 2000 and 1999
<Table>

                            <c>             <c>           <c>              <c>             <c>
                                                                Additional                        Total
                                        Common Stock             Paid-In         Retained     Stockholders'
                                    Shares         Amount        Capital          Deficit        Deficit
                                ------------    -----------   ------------     ------------   ------------
 Balance, December 31, 1998         5,498,838      $   5,499       4,377,080     (6,024,060)    (1,641,481)

 Sales of Common Stock              4,053,900          4,054         635,571               -        639,625

 Stock Issued for Compensation        211,200            211         105,389               -        105,600

 Underwriting Costs                         -              -       (105,600)               -      (105,600)

 Less subscription receivable               -              -       (114,260)               -      (114,260)

 Net loss for year                          -              -               -        (37,677)       (37,677)
                                 ------------    -----------    ------------    ------------   ------------
 Balance, December 31, 1999         9,763,938          9,764       4,898,180     (6,061,737)    (1,153,793)

 Sale of Common Stock               2,884,534          2,884         547,945               -        550,829

 Stock issued for services,           300,000            300          50,700               -         51,000
net

 Cancellation of stock
  for compensation                   (55,000)           (55)        (27,445)                       (27,500)

 Underwriting costs reversed                                          27,500                         27,500

 Net loss for year                          -              -               -       (632,003)      (632,003)
                                 ------------    -----------    ------------    ------------   ------------
 Balance, December 31, 2000        12,893,472    $    12,893       5,496,880     (6,693,740)    (1,183,967)
                                 ============    ===========    ============    ============   ============
</Table>

 See accompanying notes to financial statements.

                                       -6-


                     NATIONAL SORBENTS, INC.

                  Notes To Financial Statements


 10.  Nature Of Operations:

     National Sorbents, Inc. (Company) was incorporated  in  1990
     in  the  state of Ohio where its administrative,  sales  and
     manufacturing facilities are located.  In January 2000,  the
     Company redomiciled in Nevada, authorizing 25,000,000 common
     shares at $0.001 par value per share.  Immediately following
     the  incorporation in Nevada, the Company affected a  share-
     for-share exchange with the shareholders of the Ohio Company
     and then merged the Ohio Company into the Nevada Company, so
     the  surviving  company is the Nevada Company.   Immediately
     after,  the Company purchased Polyspherics, Inc.  (Poly),  a
     Nevada   shell  corporation  with  no  assets,  liabilities,
     revenues or operations.  Poly was a company required to file
     annual and periodic reports with the Securities and Exchange
     Commission  by  virtue of its having a 12-g registration  on
     Form  10-SB.   Subsequent to the acquisition  of  Poly,  the
     Company  merged  the  subsidiary  into  itself  and  is  the
     surviving entity for reporting purposes.

     The  Company  engages in two segments of  the  environmental
     industry,  one  dealing with containment/cleanup  (sorbents)
     and  the other with waste disposal (environmental services).
     The  breakdown of the segment information is shown elsewhere
     in these footnotes.

 11.  Summary Of Significant Accounting Policies:

     Use of estimates

      The  preparation of financial statements in conformity with
      generally    accepted   accounting   principles    requires
      management  to make estimates and assumptions  that  affect
      the   reported  amounts  of  assets  and  liabilities   and
      disclosure  of  contingent assets and  liabilities  at  the
      date  of  the financial statements and the reported amounts
      of  revenues  and  expenses during  the  reporting  period.
      Actual results could differ from those estimates.

     Fair value of financial instruments

     Substantially  all  of  the Company's financial  assets  and
     liabilities are carried at fair value or contracted amounts,
     which approximate fair value.




                               -7-

     Net loss per common share

     Net  loss  per  common share before extraordinary  gain  and
     earnings  per  share  from  extraordinary  gain  have   been
     computed  by  dividing  the  respective  numerator  by   the
     weighted average number of common shares outstanding  during
     the periods.

     Trade receivables

     The  Company,  in  the  normal course of  business,  extends
     credit   to   customers   on   an  uncollateralized   basis.
     Management   periodically   reviews   outstanding   accounts
     receivable, as well as the bad debt write offs in the  past,
     to   establish  an  allowance  for  doubtful   account   for
     uncollectible amounts.

     Inventories

     Inventories are stated at the lower of cost or market.  Cost
     is determined using the first-in-first-out method (FIFO).

     Property and Equipment

     Property  and  equipment are recorded at cost.  Depreciation
     is provided principally on the straight-line method over the
     estimated   useful   lives   of  the   assets.    Additions,
     improvements,  and expenditures for repairs and  maintenance
     that  are  material in nature and significantly add  to  the
     productivity  or  extend the economic  life  of  assets  are
     capitalized.  Any immaterial amounts or amounts incurred  as
     recurring expenditures for repairs are charged to expense.

     Income Taxes

     Income  taxes are recorded in accordance with SFAS No.  109,
     Accounting  for Income Taxes.  This statement  requires  the
     recognition  of  deferred  tax  assets  and  liabilities  to
     reflect the future tax consequences of events that have been
     recognized  in  the  Company's financial statements  or  tax
     returns.   Measurement of the deferred  items  is  based  on
     enacted  tax laws.  In the event the future consequences  of
     differences between financial reporting basis and tax  basis
     of  the Company' assets and liabilities result in a deferred
     tax  asset,  SFAS  No.  109 requires an  evaluation  of  the
     probability  of  being able to realize the  future  benefits
     indicated by such asset.  A valuation allowance related to a
     deferred  tax asset is recorded when it is more likely  than
     not  that some portion of all of the deferred tax asset will
     not be realized.

     Reclassifications

     Certain  reclassifications have been made in the prior  year
     financials to conform to the current year presentation.

                               -8-

 12.  Going concern:

     Through   December  31,  2000  the  Company   had   incurred
     significant  operating losses and has  depended  upon  stock
     sales,  stockholder/officer loans and loans from  others  to
     provide   the   liquidity  necessary  to  maintain   ongoing
     operations.   In  2000  the  Company  continued   to   incur
     operating  losses  and  showed  only  a  small  increase  in
     revenues  from  1999 levels.  As of December  31,  2000  the
     Company  had  a  working capital deficit of  $1,460,541  and
     stockholders'  deficit of $1,183,967.  These  factors  raise
     substantial doubt about the Company's ability to continue as
     a going concern.

     Management  is  exploring  various  alternative  sources  of
     capital,  including  refinancing  the  mortgage,  additional
     equity and debt offerings or some combination of equity  and
     debt.   There  can  be no assurance that  the  Company  will
     achieve  any  level of financing or that the level  achieved
     will  be  sufficient  to  maintain  or  grow  the  Company's
     operations.

 13.  Trade receivables:

     At  December  31, 2000 and 1999, the allowance for  doubtful
     accounts was $36,145 and $107,837 respectively.

 14.  Notes payable:

     Notes payable consists of several notes.  The following is a
     recap of the terms of the each series of notes:

<Table>

                                                      <c>	           <c>
                                                                 2000          1999

Term  note, interest as 12%, dated June  26, 1998
 Lender received 50,000 shares of stock at
inception   and  has  option   to   purchase additional
shares at 50% of market value.  Renewable
annually by consent of both parties                          $  125,000        125,000

Promissory   note  dated   May   16,   1995.
Interest
at prime plus 1%.                                                   379          3,440

Demand notes, without interest                                  200,000        200,000

Note payable without interest.  Subsequently
paid off by issuance of common stock.                                 -         52,500
                                                             ----------       --------
  Total outstanding                                          $  325,379        380,940
                                                             ==========       ========
</Table>

     During  2000 and 1999, the Company recognized total interest
     expense related to these notes in the amount of $15,201  and
     $15,666, respectively.  Only $201 and $666, respectively  of
     this interest was paid in cash.

                               -9-

 15.  Notes and Debt:

             Capital lease

     As  of December 31, 2000 the Company is obligated under  two
     capital   leases.   The  first  lease  consists   of   phone
     equipment. This lease expires in May 2001. The second  lease
     involves computer-networking equipment.  This lease  expires
     in  July 2003.   The minimum annual payments required  under
     these leases are as follows:

                                           2001       $  11,156
                                           2002           8,975
                                           2003           5,577
                                                      ---------
   Total lease payments                                  25,708
   Amounts representing interest                          4,878
                                                      ---------
   Present   value   of   future   minimum               20,830
   payments
   Less: current portion                                  8,180
                                                      ---------
   Long-term portion                                  $  12,650
                                                      =========
      The  total  of  the assets under capitalized  lease  as  of
      December 31, 2000 is as follows:

     Computers and office equipment    $  41,370
     Accumulated depreciation           (23,389)
                                      ----------
        Total                          $  17,981
                                      ==========

     Notes payable - Stockholder

     The stockholder loan is a demand loan without interest.  The
     loan is from the president of the Company.

     Moon Note

     In   September  1999,  the  Company  executed  a  settlement
     agreement  wherein the Company (defendant) and the plaintiff
     in  a  court  action asserting various claims  against  each
     other,  have  agreed  to  compromise a  $847,863  obligation
     ($691,231  of  principal, $136,271 of accrued  interest  and
     $20,361  of  other  claims) for  a  payment  of  $50,000  in
     September 1999 and $300,000 on or before December 31,  1999.
     The  Company  made the required payments and  recognized  an
     extraordinary gain of $497,863 in 1999.




                              -10-

     Mortgage Note

     The  mortgage  debt  outstanding  is  secured  by  land  and
     building  that houses the operations.  The interest  on  the
     note is variable and can change by up to 2.0% per year based
     on  a  defined index. For the period from 1999 to  2000  the
     rate varied between 7.5% to 8.975%.  The maximum rate on the
     loan  is 14.5%. The rate is subject to adjustment each  year
     on  July  1.   For the years 2000 and 1999 the Company  paid
     interest of $54,990 and $48,581 respectively.  The scheduled
     principal  payments  for each of the  next  five  years  and
     thereafter are as follows:

             2001                  $  7,715
             2002                     8,513
             2003                     9,393
             2004                    10,363
             2005                    11,434
             Thereafter             560,381
                                  $ 607,799

 16.  Operating leases:

     The   Company  leases  certain  warehouse  space  under   an
     agreement  that  expires in 2002.  The Company  also  leases
     certain vehicles under operating leases that expire in  2001
     and  2002.   Total expense for operating leases was  $30,668
     and  $15,323 for 2000 and 1999, respectively.  The following
     are the minimum payments due under these leases:

                         2001   43,633
                         2002   21,819

 17.  Stockholders' deficit:

     During  2000, in conjunction with the reorganization into  a
     Nevada  corporation,  the number of  authorized  shares  was
     increased from 25,000,000 to 50,000,000.

     In  2000,  the  Company issued 3,184,534  shares  of  common
     stock.   One of these transactions involved the issuance  of
     2,764,534   shares   and   raised  $498,329.    The   second
     transaction  involved  the transfer  of  $52,500  previously
     accounted  for  as  a  note payable by issuance  of  120,000
     shares.  Finally, 300,000 shares were issued in exchange for
     services  rendered.  The issuance of the 300,000 shares  was
     valued  by the company at $.17 per share, approximately  the
     value  of shares sold during the year.  None of these shares
     were  registered  under  the  Securities  Act  of  1933,  as
     amended,  or  any state securities laws.  Also in  2000  the
     Company cancelled 55,000 shares of stock that had previously
     been   issued  in  connection  with  underwriting  services.
     Because  the  services were never rendered, the shares  were
     cancelled.   This  transaction  has  been  reflected  as   a
     reversal in the equity section of the portion of the  shares
     cancelled.

                              -11-

     In 1999, the Company issued 4,053,900 shares of common stock
     in  three  private placements at per share prices of  $0.02,
     $0.50  and $1.25, raising a total of $639,625.  The  private
     placement  were not registered under the Securities  Act  of
     1933, as amended, or any state securities laws.

     The  Company also issued 211,200 shares in 1999 in  exchange
     for underwriting services. All services have been valued  at
     $0.50 per share, the Company's estimate of the fair value of
     the  stock.   The value of underwriters' services  has  been
     charged to additional paid-in capital in both years.

 18.   Income taxes:

     At  December 31, 2000, the Company had federal and state tax
     net  operating  loss (NOL's) carryforwards of  approximately
     $5,900,000  and  $3,500,000, respectively.  Primarily  as  a
     result  of  these NOL's, the Company had a net tax  deferred
     tax  asset  which was fully offset by a valuation  allowance
     due  to  uncertainties as to whether the results  of  future
     operations  will  enable  the Company  to  realize  the  tax
     benefits  arising from these NOL's.  The federal  and  state
     NOL's  expire in various amounts through the years  2005  to
     2019.

 19.  401(K) plan:

     The   Company  has  a  401  (k)  plan  (Plan)  covering  all
     employees.   The Company made no contributions to  the  Plan
     for   the  years  2000  and  1999.   It  however,  pays  all
     administrative fees relating to the Plan.

 20.  Other income:

     Included  in  other income for the year ended  December  31,
     2000  is  approximately $200,000 in income  related  to  the
     environmental segment.  More information was obtained during
     the  current year that allowed management to better  clarify
     issues  for  which liabilities had previously been  recorded
     and  to  determine  that the recorded  liabilities  were  no
     longer necessary.

 21.  Extraordinary gain on debt restructuring:

     In  1999,  the  Company recognized $497,863 of extraordinary
     gain  on  the  restructuring of its note payable-Moon.   The
     Company  has recorded the above amount in the statements  of
     operations for 1999.

 22.  Risks and uncertainties:

     The Company's future operating results may be affected by  a
     number  of factors.  The Company is dependent upon a  number
     of major suppliers for sorbent raw materials.  Although some
     of  the  raw materials could be purchased from other sources
     if a critical

                              -12-

     supplier  had operational problems or ceased making material
     available  to  the  Company, operations could  be  adversely
     affected.   In particular, approximately 85% of the  sorbent
     raw materials purchased are from two suppliers.

     The    Company's   environmental   services   are   provided
     principally  to one customer who accounted for approximately
     99%  and  98%  of  environmental revenue in 2000  and  1999,
     respectively.   This  customer  experienced  a  catastrophic
     event during 2000 that will significantly reduce the revenue
     that will be recognized from this segment in 2001.  Although
     the  Company  has  a  non-cancelable  13-month  contract  to
     provide  environmental disposal services for this  customer,
     the  Company  is not guaranteed any minimum business  level.
     Sales prices are adjustable semi-annual by negotiation.

 23.  Commitments And Contingent Liabilities:

     The  Company is subject to legal proceedings and claims that
     arise  in  the  ordinary course of  its  business.   In  the
     opinion of management, the amount of ultimate liability with
     respect  to  these  actions will not materially  affect  the
     financial position of the Company.

 24.  Supplemental Schedule Of Noncash Financing Activities:

     The Company's noncash financing activities are reflected  in
     the table below:

        Details of Items Discharged in Debt Restructuring

                               2000            1999
      Note payable-Moon          $    -         341,231
     Accrued Interest                 -         136,271
     Accounts payable                 -          20,361
                              ---------       ---------
        Total                 $       -         497,863
                              =========      ==========
                  Stock Issued For Compensation

                                           2000         1999
     Stock issued/(canceled) to under-
       writers as compensation          $ (27,500)    $ 105,600
                                        ==========    ==========

 25.  Business Segment Data:

     The    Company's   two   operating   segments   within   the
     environmental  industry  are containment/cleanup  (sorbents)
     and  waste disposal (environmental services).  These are the
     only  two  components  of the Company about  which  separate
     financial  information is available and  that  is  evaluated
     regularly  by  the  chief  operating  decision  maker.   The
     Company's operating decision maker is its president.


                              -13-

     During   2000   the  primary  customer  for  the   company's
     environmental  services segment experienced  a  catastrophic
     event  that  significantly reduced operations.  During  2000
     the company continued to provide services to the customer as
     a  result of the cleanup work related to the event.  However
     in  2001, management expects a significant reduction in  the
     revenue from this segment.

     Information  concerning operations by  business  segment  is
     presented in the following table:

                                        2000          1999
          Revenues:
            Environmental         $    1,493,771      1,807,141
            Sorbents                   2,118,510      1,744,120
          Total Revenues               3,612,281      3,551,261

          Gross Profits:
            Environmental               311,048        332,225
            Sorbents                    323,146        418,329
             Total Gross Profit   $     634,194        750,554

     The  Company's environmental services business  is  operated
     with   sub-contractors  performing  substantially  all   the
     required   services.    The   Company   performs   billings,
     collection and follow-up services.  However, these  services
     are not substantial and the company does not report the cost
     of  these  services  on a stand alone  basis  to  the  chief
     operating  decision maker.  Therefore, the  Company's  gross
     profit is equal to its operating profit, and represents  the
     difference  between what the Company bills for the  services
     and what it pays the sub-contractors.

     The  Company's assets, excluding any amounts receivable  and
     payable  related to the waste disposal segment, are entirely
     associated with the Company's sorbents business.















                              -14-

Exhibit No.    Description
                          SIGNATURE  PAGE


In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

NATIONAL SORBENTS, INC.


Signature
Title                                         Date


\s\ Daniel B. Jones
President and
Director                                 June 25, 2001


In accordance with the Exchange Act of 1934, this report has been
signed below by the following persons on behalf of the registrant
in the capacities and on the dates indicated.

Signature
Title                                                Date

\s\ Daniel B. Jones
President and
Director                                        June 25, 2001

(Principal Executive Officer)

 \s\ Leslie E. Jones
Exec. Vice President
and Director                                    June 25, 2001


 \s\ Dr. John Bryk
Director                                        June 25, 2001