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, 1999

__   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. - 000-28509

                     National Sorbents, Inc.
              formerly known as Polyspherics, Inc.

Nevada                                            31-1291923
(State of organization) (I.R.S. Employer Identification No.)

10139 Commerce Park Drive, Cincinnati, Ohio 45246
(Address of principal executive offices)

            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.
$3,551,260

Aggregate market value of voting stock held by non-affiliates of
registrant as of March 30: $7,710,726

Shares of Common Stock outstanding as of March 30:  9,763,938

               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 which
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 allow 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 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., Matarah, 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, to date NSI has not received the
award of a design patent. NSI owns various trademarks on product
lines which it has been awarded over time.

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

History and Organization

NSI was formed as a proprietorship in 1988 by Daniel B. and
Leslie E. Jones. 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 49%, 26% and 19% of the total revenues of NSI for the
years ended December 31, 1999, 1998 and 1997 respectively.
Revenues from contract activities represented 51%, 74% and 81% of
total revenues for NSI for the years ended December 31, 1999,
1998 and 1997 respectively, with a single waste management
customer representing 98%, 95% and 99% of revenues from contract
activities for the years ended December 31, 1999, 1998, and 1997
respectively.

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.

Employees

At December 31, 1999, NSI employed twenty five (25) individuals.
The distribution of employees by function is as follows:

     <TABLE>

     <S>                  <C>

     Production           13

     Sales and marketing   7

     Administration        5

     </TABLE>

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
$37,677 for the year ended December 31, 1999, as compared to a
net loss of $188,237 for the year ended December 31, 1998, and a
net loss of $495,746 for the year ended December 31, 1997.The
results for the year ended December 31, 1999 were affected by a
one time gain of $497,863 as the result of a settlement agreement
with a prior employee/finance source. NSI's losses from
operations were $472,889, $161,200 and $421,924 for the years
ended December 31, 1999, 1998 and 1997, respectively. NSI can not
assure you that it will operate profitably in the near future if
at all.

NSI has a negative net worth. At December 31, 1999, NSI has a
negative net worth of $1,153,793. 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, 1999 current
liabilities exceeded current assets $1,380,402 and our total
liabilities exceeded our total assets by $1,153,793. NSI
continues to explore additional sources for financing to meet our
needs. NSI has not determined the amount or the form of this
additional financing (i.e. debt or equity). NSI cannot assure
success in obtaining additional financing for future operations
or capital needs on favorable terms if at all.

Existing shareholders are able to exercise control. Officers and
directors beneficially own approximately 43% of the outstanding
shares of common stock and Leslie E. Jones owns approximately
43%. 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 $1,500,000 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 43% of the outstanding
shares of the company. An unrelated group of investors controls
33% 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.
The property is financed by a twenty five year mortgage note with
an outstanding balance of $614,615 at December 31, 1999. The
property is pledged as collateral to secure the mortgage note.
The note provides for adjustable monthly payments, currently
$4,618, and bears an interest rate of 8,25%, 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, 1999.



                             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.

        <TABLE>

        <S>                    <C>                <C>

        Quarter ended                  Low       High

        December 31, 1999          $0.4375      $2.00

        September 30, 1999          0.4375     0.9375

        June 30, 1999               0.3438     1.5625

        March 31, 1999               1.125       1.50

        December 31, 1998             0.75      1.375

        </TABLE>

        Prior quarters traded under "NSES"

As of March 30, 2000, the high and low bid prices per share of
common stock were $1.375 and $1.50, respectively.  There were
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,
1999 NSI has issued 9,763,938 shares of its common stock for a
net cash consideration $4,907,944.

Results of operations

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.

Year ended December 31, 1998 compared to year ended December 31,
1997

Revenues

Net revenues decreased $89,575, or 2%, to $4,329,192 from
$4,418,767 for the years ended December 31, 1998 and 1997
respectively. Revenues from the sale of sorbent materials
increased $302,357, or 33%, to $1,230,863 from $928,506 for the
years ended December 31, 1998 and 1997 respectively, as the
result of an increase in product shipped rather than a price
change. Environmental revenues decreased $359,133, or 10%, to
$3,184,553 from $3,543,686 for the years ended December 31, 1998
and 1997 respectively, as the result of the lower volume of
services performed, rather than a change in pricing of services.
Freight billings increased $45,809, or 79% to $103,972 from
$58,163 for the years ended December 31, 1998 and 1997
respectively, as the result of the increase in product shipments
and not a rate increase. Sales returns & allowances increased
$28,607 or 18%, to $190,196 from $161,589 for the years ended
December 31, 1998 and 1997 respectively.

Cost of sales and revenues

Cost of sorbents sold increased $319,255, or 43% to $1,058,576
from $739,321 for the years ended December 31, 1998 and 1997
respectively. The increase reflects the increased amount of
material sold. Cost of environmental revenues decreased $677,646,
or 22%, to $2,423,559 from $3,101,205 for the years ended
December 31, 1998 and 1997 respectively. The decrease reflects
the lower disposal activity level.

Gross profit

The changes in revenues and costs discussed in the preceding
paragraphs resulted in a gross profit increase of $268,816, or
46%, to $847,057 from $578,241 for the years ended December 31,
1998 and 1997 respectively. The increase is attributed to the
shift of revenues to the higher profit line.

Operating Costs and Expenses

Operating expenses decreased $8,092 or 1%, to $1,008,257 from
$1,000,165 for the years ended December 31, 1998 and 1997
respectively. The decrease is primarily attributed to lower
commissions reflecting  the growth in sorbent sales by an
individual not included in the commission structure, and lower
charges for uncollectible accounts, partially offset by increased
professional fees and other administrative costs.

Other income/expense

Other expense, net decreased $46,785, or 63% to $27,037 from
$73,822 for the years ended December 31, 1998 and 1997
respectively. The decrease reflects the lower interest charges
incurred as the result of interest charges being waived on
certain debt combined with a one time gain from recovery of
amounts on an insurance claim.

Taxes on income

The company has accumulated  significant loss carry-forwards for
federal and state income tax purposes. The Company has not
attained profitability in the years of its operations, thus, any
recognizable tax benefit of current losses has been offset by an
equal valuation reserve reflecting the uncertainty of the
company's ability to use the benefit of the carry-forward.

Liquidity and Capital Resources

Cash was $12,287 and $0 at December 31,1999 and 1998
respectively. Net accounts receivable were $412,651 and $344,812
at December 31, 1999 and 1998 respectively. The $80,126 net
increase of cash and receivables at December 31, 1999 as compared
to December 31, 1998 reflects normal timing differences and is
not indicative of any specific trend.

The net working capital deficit was $1,380,402 and $1,875,678 at
December 31, 1999 and 1998 respectively. The improvement in the
net deficit reflects the impact of the debt settlement
accomplished at December 31, 1999, as well as the impact of
timing rather than a change in activity levels.

Indebtedness amounted to $611,145 and $621,053 at December 31,
1999 and 1998 respectively. The reduction reflects the normal
amortization in accordance with loan agreements.

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 $613,815, 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 a capital lease. The lease bears
an interest rate of 14.25% and has a term of five years maturing
in May, 2001. Annual commitment of principal and interest for the
year 2000 is $5,244.

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 all necessary software
changes to recognize the year 2000, with minimal cost other than
time expended by company personnel. None of the company's
suppliers experienced any difficulties in handling transactions
in the year 2000.

Item 7. Financial Statements.

The Financial Statements and Notes thereto can be found beginning
on page F-1, "Index to 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.

Not applicable.

                            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:

        <TABLE>

          <S>           <C>               <C>

          Name          Age             Position
     Daniel B.           64     President, Treasurer,
     Jones                      and Director
     Leslie E,           50     Vice President,
     Jones                      Secretary, and Director
     Dr. John P.         42     Director
     Bryk
     Efthimios           39     Vice President Sales &
     Mamaligas                  Marketing
     </TABLE>

Committees

During 1999, 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 equty 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, 1999, 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, 1999 paid to Daniel B. Jones, our President
and a director, Leslie E. Jones, our Vice President and a
director. No other executive officer received compensation
exceeding $100,000 during the fiscal year ended December 31,
1999.

                   SUMMARY COMPENSATION TABLE

<TABLE>

<S>             <C>   <C>                    <C>                       <C>

                      Annual compensation    Long term compensation

                                             Awards            Payout
                                                               s

Name and        Year  Salary   Bonus  Other  Restric  Securit  LTIP    All
Position              ($)      ($)    Annua  ted      ies      Payout  other
                                      l      Stock    underly  s ($)   Comp.
                                      Comp.  Awards   ing              ($)
                                      ($)    ($)      options
                                                      / SARs
                                                      (#)
Daniel B.       1999  $48,000
Jones,
President and   1998  $48,000
Director
Leslie E.       1999  $48,000
Jones,
Vice President  1998  $48,000
and Director
</TABLE>

                          OPTIONS TABLE

               Options Granted in Last Fiscal Year

No Stock options were granted in the fiscal years ended December
31, 1999 and 1998.

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, 1999 and 1998.

Option and Award Plan

At the present time and during the fiscal years ended December
31, 1999 and 1998 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, 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, 2000, 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.

<TABLE>

<S>                         <C>                  <C>

Name and Address of         Amount and Nature    Percent of Class
Beneficial Owner (1)        of Beneficial        (2)
                            Ownership
Leslie E. Jones             4,156,137            42.6%
All directors and           4,172,803            42.7%
executive Officers as a
group (2 persons)
</TABLE>

(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, which generates over 95% 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 March 31,2001.

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

FINANCIAL STATEMENTS

          Reports of Independent Auditor, Van Buren & Hauke, LLC,
            dated March 26, 2000

          Balance Sheet as of December 31, 1999, and December 31,
            1998.

          Statement of Operation for the years ended December 31,
            1999, and December 31, 1998.

          Statement of Stockholders' Equity.

          Statement  of  Cash Flows for the years ended  December
            31, 1999, and December 31, 1998.

          Notes to Financial Statements














                     NATIONAL SORBENTS, INC.

                      FINANCIAL STATEMENTS

         For the Years Ended December 31, 1999 and 1998

NATIONAL SORBENTS, INC.

                        TABLE OF CONTENTS
<TABLE>
<S>                                                  <C>
                                                      PAGE NO.
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS' REPORT      1
FINANCIAL STATEMENTS
   Balance Sheets                                           2-3
   Statements of Operations                                   4
   Statements of Cash Flows                                   5
   Statements of Changes in Stockholders' (Deficit)           6
   Notes to the Financial Statements                       7-13
   </TABLE>






        INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS' REPORT

To the Board of Directors
National Sorbents, Inc.
Cincinnati, Ohio

We have audited the accompanying balance sheets of National
Sorbents, Inc. as of December 31, 1999 and 1998, and the related
statements of operations, cash flows, and changes in
stockholders' (deficit) for the years 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 audits.

We  conducted  our  audits in accordance with generally  accepted
auditing  standards.  Those standards require that  we  plan  and
perform  the audits 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 audits provide 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, 1999 and 1998, and the
results   of   its  operations,  cash  flows,  and   changes   in
stockholder's  (deficit) for the years 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 "Going Concern" to the financial statements, the Company
had  incurred  significant operating losses,  had  experienced  a
significant  decline in overall revenue in 1999 and  at  December
31,  1999  had  a  working capital deficit of  $1,380,402  and  a
stockholder   deficit   of  $1,153,793.   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.

                                   /s/ Van Buren & Hauke, LLC




March 26, 2000
NATIONAL SORBENTS, INC.
BALANCE SHEETS
DECEMBER 31, 1999 AND 1998
<TABLE>
<S>                                                    <C>          <  <C>
                                                                    C
                                                                    >
                                                           1999            1998

                                       Assets

Current assets:
 Cash                                                        $               $
                                                          12,287             -
 Trade receivables, net:
  Sorbent
                                                         281,518          24,714
  Environmental
                                                       131,133         320,098
   Total Trade Recivables
                                                       412,651         344,812
 Inventory:
  Raw materials
                                                       106,189         59,675
  Finished goods
                                                       98,882          108,198
   Total Inventory
                                                       205,071         167,873
 Prepaid expenses
                                                       18,144          7,980
 Employee advances
                                                       10,428          -
   Total Current Assets
                                                       658,581         520,665
Property, Plant and Equipment:
 Land and building
                                                       850,000         850,000
 Factory equipment
                                                       142,268         139,741
 Computers and office equipment
                                                       49,873          47,297
 Furniture and improvements
                                                       29,799          24,862

                                                       1,071,940       1,061,900
 Less: Accumulated depreciation
                                                       (239,026)       (207,655)
  Net Property, Plant and Equipment
                                                       832,914         854,245
Other assets
                                                       4,840           1,005
   Total Assets                                         $ 1,496,335     $ 1,375,915
   </TABLE>
                     NATIONAL SORBENTS, INC.
                         BALANCE SHEETS
                   DECEMBER 31, 1999 AND 1998
 <TABLE>
 <S>                                        <C>           <  <C>
                                                          C
                                                          >

                                                1999             1998

                 Liabilities and Stockholders' (Deficit)

Current Liabilities:
 Cash overdraft                              $                $
                                            -                4,156
 Trade payables:
  Sorbents
                                            802,386          579,777
  Environmental
                                            275,950          111,492
Accrued Expenses:
 Payroll, taxes
                                            58,860           59,643
 Interest
                                            23,875           150,438
 Other
                                            71,998           236,086
Notes payable
                                            380,940          137,000
Notes payable - Stockholder
                                            415,066          415,066
Notes payable - Moon
                                            -                691,231
Current portion of long-term debt
                                            9,908            11,454
  Total Current Liabilities
                                            2,038,983        2,396,343
Mortgage payable, net of current portion
                                            608,967          613,815
Capital lease, net of current position
                                            2,178            7,238
 Total Long-Term Debt
                                            611,145          621,053
  Total Liabilities
                                            2,650,128        3,017,396
Stockholders' (Deficit):
 Common stock; $0.001 par value, 25,000,000
shares authorized,                          9,764            5,499
   outstanding shares, 9,763,938 and
5,498,838 in 1999 and 1998, respectively
Paid-in capital
                                            5,012,440        4,377,080
(Subscription receivable)
                                            (114,260)        -
Retained (deficit)
                                            (6,061,737)      (6,024,060)
  Total Stockholders' (Deficit)
                                            (1,153,793)      (1,641,481)

   Total Liabilities and Stockholders'       $ 1,496,335      $ 1,375,915
(Deficit)
   </TABLE>
                     NATIONAL SORBENTS, INC.
                    STATEMENTS OF OPERATIONS
         FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<S>                                            <C>              < <C>
                                                                C
                                                                >
                                                    1999                1998
Revenues:
 Environmental                                  $    1,807,141     $    3,184,553
 Sorbents
                                               1,639,126          1,230,863
 Freight revenues
                                               109,947            103,972
 Sales returns and allowances
                                               (4,953)            (190,196)
  Net Revenue
                                               3,551,261          4,329,192
Cost of Sales:
 Environmental
                                               1,474,916          2,423,559
 Sorbents
                                               1,294,420          1,021,468
 Depreciation (Sorbents)
                                               31,371             37,108

                                               2,800,707          3,482,135
Gross Profit
                                               750,554            847,057
Operating Costs and Expenses:
 Salaries, wages and taxes
                                               542,380            529,695
 Advertising and promotion
                                               307,700            239,076
 Commissions
                                               89,850             42,424
 Professional fees
                                               125,292            64,511
 Communications
                                               27,214             21,627
 Insurance
                                               27,410             26,253
 Bad debts
                                               -                  18,562
 Other administration
                                               103,597            66,109
  Total Operating Costs and Expenses
                                               1,223,443          1,008,257
(Loss) From Continuing Operations
                                               (472,889)          (161,200)
Interest Expense
                                               (65,945)           (63,447)
Other Income
                                               3,294              36,410
(Loss) before extraordinary gain
                                               (535,540)          (188,237)
Extraordinary gain on debt restructuring
                                               497,863            -
Net (Loss)                                      $                  $
                                               (37,677)           (188,237)

Net (Loss) Per Common Share:
 (Loss) before extraordinary gain               $                  $
                                               (0.07)             (0.03)
 Extraordinary gain on debt restructuring
                                               0.07               -
 Net (loss)                                     $                  $
                                               -                  (0.03)

Weighted average number of common shares
outstanding                                    7,470,944          5,403,838
</TABLE>
                     NATIONAL SORBENTS, INC.
        STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIT)
         FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998

<TABLE>
<S>                      <C>             <C>             <C>             <C>              <C>
                                 Common  Stock             Additional        Retained          Total
                                                             Paid-In                       Stockholders'
                             Shares          Amount          Capital        (Deficit)     (Defic
                                                                                           it)

Balance, December 31,         5,368,838   $               $  4,377,210    $  (5,835,823)   $   (1,453,244)
1997                                     5,369

Stock issued to
noteholder               50,000          50              (50)            -                -

Stock issued for
compensation             80,000          80              39,920          -                40,000

Underwriting costs
                         -               -               (40,000)        -                (40,000)

Net (Loss) for Year
Ended                    -               -               -               (188,237)        (188,237)
   December 31, 1998

Balance, December 31,         5,498,838                       4,377,080
1998                                     5,499                           (6,024,060)      (1,641,481)

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

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

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

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

Net (Loss) for Year
Ended                    -               -               -               (37,677)         (37,677)
   December 31, 1999

Balance, December 31,         9,763,938   $               $  4,898,180    $  (6,061,737)   $   (1,153,793)
1999                                     9,764
</TABLE>
                     NATIONAL SORBENTS, INC.
                    STATEMENTS OF CASH FLOWS
         FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<S>                                            <C>       <<C>
                                                         C
                                                         >
                                                 1999        1998
Operating Activities:
 Net (loss)                                     $          $
                                               (37,677)   (188,237)
 Adjustments to reconcile net (loss) to net
cash (used)
   by operating activities:
  Depreciation
                                                  31,371  37,108
  Extraordinary gain from debt restructuring
                                                (497,863  -
                                                       )
  Changes in operating assets and liabilities:
   (Increase) in accounts receivable
                                                (67,839)  (17,990)
   (Increase) in inventory
                                                (37,198)  (41,410)
   (Increase) in prepaid expenses
                                                (10,164)  (7,980)
   (Increase) in employee advances
                                                (10,428)  -
   (Increase) in other assets
                                                 (3,835)  -
   Increase (decrease) in trade payables
                                                 407,428  (171,414)
   (Decrease) in accrued expenses
                                                (155,163  (89,916)
                                                       )
Net cash (used) by operating activities
                                                (381,368    (479,839)
                                                       )

Cash flows from investing activities:
 Purchase of equipment
                                               (10,040)   (11,859)
Net cash (used) by investing activities
                                               (10,040)   (11,859)

Cash flows from financing activities:
 (Decrease) increase in cash overdraft
                                               (4,156)    4,156
 Increase in notes payable
                                               243,940    114,000
 Increase in stockholder loan
                                               -          340,000
 (Decrease) in Moon note
                                               (350,000   -
                                               )
 (Decrease) increase in current portion of
long-term debt                                 (1,546)    7,483
 (Decrease) increase in mortgage payable
                                               (4,848)    4,916
 (Decrease) in capital lease
                                               (5,060)    (4,611)
 Proceeds from sale of common stock
                                               525,365    -
Net cash provided by financing activities
                                               403,695    465,944

Net increase (decrease) in cash
                                               12,287     (25,754)

Cash at beginning of year
                                               -          25,754

Cash at end of year                             $          $
                                               12,287     -

</TABLE>
                     NATIONAL SORBENTS, INC.
                  NOTES TO FINANCIAL STATEMENTS
         For The Years Ended December 31, 1999 and 1998

1.   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, by issuing to its five shareholders
     10,000  shares of the Company's stock in return for  all  of
     the  issued  and  outstanding stock of  Poly.   Poly  was  a
     company  required to file annual and periodic  reports  with
     the  Securities  and Exchange Commission by  virtue  of  its
     having  filed a 12-g registration on Form 10-SB in  December
     1999.   Subsequent to the acquisition of Poly,  the  Company
     merged  the  subsidiary into itself  and  is  the  surviving
     entity  for  reporting purposes.  These financial statements
     are  those of the Company, adjusted to reflect the Company's
     reincorporation  in Nevada, but without any  adjustment  for
     the  10,000 shares issued to Poly's shareholders in  January
     2000.

     The  Company  engages in two segments of  the  environmental
     industry,  one  dealing with containment/cleanup  (sorbents)
     and the other with waste disposal (environmental services).

     In   the  sorbents  segment,  the  Company  is  engaged   in
     engineering, manufacturing and distributing sorbents capable
     of  absorbing a variety of liquids, including oil, chemicals
     and acids, and offering technical expertise and knowledge to
     companies  in  need  of containment/cleanup  services.   The
     sorbent  segment  represents  approximately  49%  of   total
     revenues in 1999 and 29% in 1998.

     The  Company's environmental services business provides cost
     effective innovative solutions to solve industries' problems
     in  waste  management and disposal.  In 1999 and 1998,  this
     segment of the business accounted for approximately 51%  and
     71%,   respectively,  of  total  revenues.   The   Company's
     environmental  services  are  provided  principally  to  one
     customer  in the Midwest who accounted for 98% and  95%,  in
     1999   and   1998,  respectively,  of  total   environmental
     revenues.

2.   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.

                     NATIONAL SORBENTS, INC.
                  NOTES TO FINANCIAL STATEMENTS
         For The Years Ended December 31, 1999 and 1998

     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.

     Concentration of Sorbent Raw Material Suppliers

     The  Company  depends  on  two  suppliers  for  sorbent  raw
     materials.   Neither  of these suppliers  provide  a  unique
     product  and  the Company could readily be able  to  acquire
     similar materials from other suppliers in the event  of  any
     disruptions  from these suppliers.  However, in the  interim
     period  of  finding other adequate supplies,  the  Company's
     operations would be adversely affected.

     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.  At  year-
     end  and  during  the  year, management reviews  outstanding
     accounts receivable, as well as the bad debt write  offs  in
     the  past,  to establish an allowance for doubtful  accounts
     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, Plant and Equipment

     Property,  plant  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.   Depreciation expense amounted to $31,371  and
     $37,108 in 1999 and 1998, respectively.

     NATIONAL SORBENTS, INC.

                  NOTES TO FINANCIAL STATEMENTS
         For The Years Ended December 31, 1999 and 1998

     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 or all of the deferred tax asset will
     not be realized.

3.   GOING CONCERN

     Through   December  31,  1999  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.   For the year 1999, the Company  experienced  a
     significant decline in overall revenues and a $472,889  loss
     from  continuing operations, and at year-end had  a  working
     capital  deficit of $1,380,402 and stockholders' deficit  of
     $1,153,793.  These factors raise substantial doubt about its
     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.

4.   TRADE RECEIVABLES

     At  December  31, 1999 and 1998, the allowance for  doubtful
     accounts was $107,837 and $173,479, respectively.

5.   NOTES AND DEBT

     Mortgage Note

    In  September 1996 the Company acquired the present  location
    of  its  executive office and manufacturing facilities.   The
    Company  signed  a  purchase money  note  in  the  amount  of
    $635,288, payable in consecutive monthly payments of  $6,444,
    including interest at 9% per annum, commencing November  1996
    and   continuing  through  July  1998,  at  which  time   all
    remaining principal and interest was due.  In June 1998,  the
    Company  refinanced  the  balance for  $625,000,  payable  in
    monthly  installments  from  August  1,  1998,  initially  of
    $4,619 per month, including interest at 7.5% per annum.   The
    interest rate may change on

                     NATIONAL SORBENTS, INC.
                  NOTES TO FINANCIAL STATEMENTS
         For The Years Ended December 31, 1999 and 1998

     July  1,  1999  and on that day every 12 months  thereafter,
     with  a maximum charge of 14.5% per annum but not less  than
     1.5% per annum.  On each anniversary, the interest rate  can
     not  increase  or  decrease by more than 2.0%  based  on  an
     index, as defined.  The note is secured by a mortgage on the
     facility.   For  the years 1999 and 1998  the  Company  paid
     interest   of   $48,581  and  $50,550,  respectively.    The
     obligation  to  make principal payments over the  next  five
     years is as follows:

          <TABLE>

          <S>             <C>

                     2000       $5,187
                     2001  $5,94
                               9
                     2002       $6,777
                     2003       $7,676
                     2004       $8,651
                 </TABLE>

     Capital Lease

     The  Company is obligated under a capital lease.  The  total
     cost  and accumulated depreciation of phone equipment  under
     the  capital  lease was $20,611 (included  in  computer  and
     office equipment) and $15,115, respectively at December  31,
     1999.   The  Company  entered into  a  five-year  lease  for
     $20,611 with monthly payments of $437 expiring in May 2001.

     Stockholder Loan

     The stockholder loan is a demand loan without interest.   No
     activity  occurred on the loan in 1999, while in  1998,  the
     Company  borrowed $340,000.  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.

     Notes Payable

     The  Company has two demand notes and one note due June  26,
     2000.   The note due on June 26, 2000 was originally  issued
     on  June  26, 1998 and due one year later but renewable  for
     one or more years by the mutual consent of the parties.  The
     notes bear interest of between approximately 10% to 12%  per
     annum.  The Company also borrowed $200,000 in December  1999
     with  no  interest.   The  loan  is  a  third  demand  loan.
     Interest  accrued  on the notes was $7,726  and  $22,726  at
     December 31, 1999 and 1998, respectively.

                     NATIONAL SORBENTS, INC.
                  NOTES TO FINANCIAL STATEMENTS
         For The Years Ended December 31, 1999 and 1998

     During  1999  and 1998, the Company paid total  interest  of
     $50,945 and $54,697.

6.   STOCKHOLDERS' (DEFICIT)

     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
     placements 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  and  80,000
     shares  in 1998 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.  Also in 1998, the Company issued
     50,000  shares at par for no money as an inducement  to  the
     lender for the June 26, 1998 note.

7.   INCOME TAXES

     At  December 31, 1999, the Company had federal and state tax
     net  operating  loss (NOL's) carryforwards of  approximately
     $5,250,000  and  $3,130,000, 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.

8.   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
     1999  and  1998.   It however, pays all administrative  fees
     relating to the Plan.

9.   EXTRAORDINARY GAIN FROM 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.

10.  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 supplier had operational problems or  ceased
     making material available to the Company,

                     NATIONAL SORBENTS, INC.
                  NOTES TO FINANCIAL STATEMENTS
         For The Years Ended December 31, 1999 and 1998

     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
     98%  of environmental revenue in 1999.  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-annually by negotiation.

11.  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.

12.  RELATED PARTY TRANSACTIONS

     The  Company's  president  and vice-president  maintain  the
     Company's   presence  at  trade  shows  and  certain   sales
     presentations,    participate   in   significant    customer
     development  activities,  as  well  as  devoting   time   to
     maintaining   relationships  with  existing  customers   and
     vendors.  The cost of these activities, primarily travel and
     entertainment, are charged to the statement of operations as
     advertising and promotion.

13.  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
           <TABLE>
           <S>                          <C>     <  <C>
                                                C
                                                >
                                         1999       1998
           Note payable-Moon            $341,23    -
                                              1
           Accrued Interest             136,271       -
           Accounts payable              20,361       -
           Total                        $497,86       -
                                              3
           </TABLE>

                  Stock Issued For Compensation

           <TABLE>

           <S>                          <C>     <  <C>
                                                C
                                                >

                                         1999       1998
           Stock issued to              $105,60    $40,00
           underwriters as                    0         0
           compensation
           </TABLE>

                     NATIONAL SORBENTS, INC.
                  NOTES TO FINANCIAL STATEMENTS
         For The Years Ended December 31, 1999 and 1998

14.  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.

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

           <TABLE>

           <S>                      <C>        <<C>
                                               C
                                               >

                                      1999         1998
           Revenues:
           Environmental            $1,807,14    $3,184,55
                                            1            3
           Sorbents                 1,744,120    1,144,639
           Total Revenues           $3,551,26    $4,329,19
                                            1            2

           Gross Profits:
           Environmental             $332,225     $760,994
           Sorbents                   418,329       86,063
           Total Gross Profit        $750,554     $847,057
           </TABLE>

     The  Company's environmental services business  is  operated
     with   sub-contractors  performing  substantially  all   the
     required services.  The Company performs billing, collection
     and   follow-up  services.   However,  these  services   are
     insubstantial 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.

EXHIBITS

a)   2.1    Articles of Incorporation

  2.2    By-Laws

b)   Reports on Form 8-K:

  On  January  24, 2000, the Company filed a Form 8-K  announcing
  that  the  Company  had completed a change in  control  of  the
  Company  through a share exchange with National Sorbents,  Inc.
  As  a  result  of  this exchange agreement, National  Sorbents,
  Inc.,  which  had  redomiciled in Nevada became  the  surviving
  entity.

                         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.

    <TABLE>

    <S>                   <C>                     <C>

    Signature             Title                   Date

    \s\ Daniel B. Jones   President and Director  March 30,
                                                  2000

    </TABLE>

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.

    <TABLE>

    <S>                   <C>                     <C>

    Signature             Title                   Date

    \s\ Daniel B. Jones   President and Director  March 30,
                          (Principal Executive    2000
                          Officer)

    \s\ Leslie E. Jones   Vice President and      March 30,
                          Director                2000

    \s\ Jerome J. Cain    Director of Finance     March 30,
                          and Operations          2000
                          (Principal Financial
                          Officer)

    \s\ Dr. John Bryk     Director                March 30,
                                                  2000

    </TABLE>