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


                                   Form 10-QSB



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

        For the quarterly period ended March 31, 2000

        Commission file number 0-27853


                              HYATON ORGANICS INC.
        (Exact name of small business issuer as specified in its charter)

            Nevada                                       86-0913555
(State or other jurisdiction of               (IRS Employer Identification No.)
 incorporation or organization)

                      1500 West Georgia Street, 13th Floor
                           Vancouver, British Columbia
                                 Canada V6G 2Z6
                    (Address of principal executive offices)

                                 (604) 623-3300
                           (Issuer's telephone number)


                  (Former address if changed since last report)


Check  whether the 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 o

Number of shares of common stock outstanding as of March 31, 2000:  27,556,000

<PAGE>2

PART I.   FINANCIAL INFORMATION
Item 1.   Financial Statements

HYATON ORGANICS INC.
(a development stage enterprise)

Consolidated Balance Sheets
(expressed in U.S. dollars)

(Unaudited and Prepared Internally by Management)

March 31, 2000, with comparative figures for 1999

<TABLE>
<CAPTION>
                                                                     2000             1999
                                                                ------------       ----------
<S>                                                            <C>               <C>
Assets

Current assets:
  Cash                                                          $     57,148       $   65,026
  Accounts receivable and other                                       15,814           11,506
                                                                ------------       ----------
  Total current assets                                                72,962           76,532
Computer equipment, net of accumulated depreciation
  of $1,038                                                            2,946            1,482
                                                                ------------       ----------
Total assets                                                    $     75,908       $   78,014
                                                                ============       ==========
Liabilities and Shareholders' Deficiency
Current liability:
  Accounts payable and accrued liabilities                      $     10,665       $    2,648
Loans from related parties                                         1,194,311          568,607
                                                                ------------       ----------
Total liabilities                                                  1,204,976          571,255
Shareholders' deficiency:
  Capital stock:
    Authorized:
      100,000,000 common shares with a par value of $0.01
      25,000,000 preference shares with a par value of $0.01
    Issued:
      27,556,000 common shares (1999 - 27,559,000)                   275,560          276,247
    Additional paid-in capital                                       223,187               -
    Deficit accumulated during the development stage              (1,607,207)        (792,401)
    Other comprehensive income:
      Cumulative translation adjustment                              (20,608)          22,913
                                                                ------------       ----------
    Total shareholders' deficiency                                (1,129,068)        (493,241)
                                                                ------------       ----------
Total liabilities and shareholders' deficiency                  $     75,908       $   78,014
                                                                ============       ==========
</TABLE>

See accompanying notes to consolidated financial statements.


<PAGE>3

HYATON ORGANICS INC.
(a development stage enterprise)

Consolidated Statements of Operations and Deficit
(expressed in U.S. dollars)

(Unaudited and Prepared Internally by Management)

<TABLE>
<CAPTION>


                                                                                        For the period
                                                        Three month      Three month      November 24,
                                                       period ended      period ended       1994 to
                                                         March 31,         March 31,        March 31,
                                                          2000               1999             2000
                                                      ------------      ------------     ------------

<S>                                                   <C>               <C>              <C>
Revenue                                               $          -      $      4,066     $     87,666

Expenses:
  Consulting and other professional fees                   138,880            67,631          680,213
  Product research and development costs                    26,405            27,072          351,491
  Travel                                                       755             3,195           42,735
  Administrative and other expenses                         10,205             6,799          127,344
  Employee equity compensation                                   -                 -          222,500
                                                      ------------      ------------     ------------
                                                           176,245           104,697        1,424,283
                                                      ------------      ------------     ------------
Net loss                                                   176,245           100,631        1,336,617

Deficit accumulated during the development stage,
  beginning of period                                    1,430,962           691,770                -
Charge to deficit                                                -                 -          270,590
                                                      ------------      ------------     ------------
Deficit accumulated during the development stage,
  end of period                                       $  1,607,207      $    792,401     $  1,607,207
                                                      ============      ============     ============
Basic and diluted loss per share                      $       0.01      $       0.01     $       0.06
Weighted average number of
  shares outstanding                                    27,556,000        27,559,000       21,960,502
                                                      ============      ============     ============
</TABLE>


See accompanying notes to consolidated financial statements.


<PAGE>4

HYATON ORGANICS INC.
(a development stage enterprise)

Consolidated Statements of Cash Flows
(expressed in U.S. dollars)

(Unaudited and Prepared Internally by Management)

<TABLE>
<CAPTION>

                                                                                        For the period
                                                        Three month      Three month      November 24,
                                                       period ended      period ended       1994 to
                                                         March 31,         March 31,        March 31,
                                                          2000               1999             2000
                                                      ------------      ------------     ------------

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

Cash flows from (used in) operating activities:
  Net loss                                            $   (176,245)     $   (100,631)    $ (1,336,617)
  Items not involving the use of cash:
    Depreciation                                               153                 -            1,019
    Employee equity compensation                                 -                 -          222,500
    Shares issued as a financing fee                             -                 -            5,000
  Changes in non-cash operating working capital:
    Accounts receivable                                     (3,969)           29,602           (6,512)
    Accounts payable and accrued liabilities               (19,439)          (35,651)           1,820
                                                      ------------      ------------     ------------
                                                          (199,500)         (106,680)      (1,112,790)
Cash flows used in investing activities:
  Capital expenditures                                      (2,015)                -           (3,883)

Cash flows from financing activities:
  Issuance of common shares                                      -                 -              657
  Loans from related parties:
    Kafus Industries Ltd.                                  227,704           136,933          800,581
    Cameron Strategic Planning Ltd.                         27,640            17,992          332,857
    Mr. Robert L. Novitsky                                       -               871           39,744
    Kafus Bio-Composites, Inc.                                   -                 -            1,107
                                                      ------------      ------------     ------------
                                                           255,344           155,796        1,174,946

Effect of exchange rate changes on
  foreign currency cash balances                               101             6,700           (1,125)
                                                      ------------      ------------     ------------
Increase (decrease) in cash                                 53,930            55,816           57,148
Cash, beginning of period                                    3,218             9,210                -
                                                      ------------      ------------     ------------
Cash, end of period                                   $     57,148      $     65,026     $     57,148
                                                      ============      ============     ============
Supplementary information:
  Interest paid                                       $          -      $          -     $          -
  Income taxes paid                                              -                 -                -
  Non-cash transactions:
    Issuance of common shares:
      For investment in Camden
        Agro-Systems Inc.                                        -                 -          270,590
      As a financing fee                                         -                 -            5,000
      Options issued as employee
        equity compensation                                      -                 -          222,500
                                                      ============      ============     ============

</TABLE>

See accompanying notes to consolidated financial statements.

<PAGE>5

HYATON ORGANICS INC.
(a development stage enterprise)

Notes to Consolidated Financial Statements
(expressed in U.S. dollars)

(Unaudited and Prepared Internally by Management)

March 31, 2000


1.  Basis of presentation:

    The  consolidated   unaudited  financial   statements  do  not  include  all
    information  and footnote  disclosures  required  under  generally  accepted
    accounting  principles in the United  States.  In the opinion of management,
    all adjustments  (consisting solely of normal recurring accruals) considered
    necessary  for a fair  presentation  of the financial  position,  results of
    operations  and  cash  flows  as at  March  31,  2000  and for  all  periods
    presented, have been included.

    The unaudited  consolidated  balance  sheets,  statements of operations  and
    deficit and  statements of cash flows have been prepared in accordance  with
    generally accepted accounting  principles for interim financial  information
    in the United States.

    Interim results of the three months ended March 31, 2000 are not necessarily
    indicative  of the  results  that may be  expected  for the fiscal year as a
    whole.  These financial  statements  should be read in conjunction  with the
    financial  statements  and notes thereto  included in the  Company's  annual
    report on Form 10-SB for the fiscal year ended December 31, 1999.

2.  Segmented information:

    At March 31, 2000,  the  Company's  operations  were  primarily  situated in
    Canada or related to operations  that are situated in Canada.  Through CASI,
    the Company's  primary focus is on the  manufacturing of organic  fertilizer
    from animal  waste.  Accordingly,  the Company is considered to operate in a
    single reportable and geographic segment.

<PAGE>6

Item 2.   Management's Discussion and Analysis or Plan of Operation

     Hyaton Organics Inc. ("Hyaton" or the "Company") was incorporated in Nevada
on August 20, 1996, under the name Hayoton Company  Incorporated as a management
company for resorts and hotel  properties.  On September  24, 1996,  the Company
changed  its  name  from  Hayoton   Company   Incorporated   to  Hyaton  Company
Incorporated  and then to Hyaton  Organics Inc. on October 21, 1999. The Company
was dormant until June 1997,  when the Board  reevaluated  its business plan and
decided to focus the Company's business on commodity  production and/or purchase
and  resale of same  through  strategic  alliances  with  leading  environmental
corporations. Effective November 2, 1998, the Company completed a reorganization
with Kafus  Industries  Ltd.  ("Kafus")  whereby the Company  issued  20,000,000
shares of its Common Stock in exchange for Kafus' 9,000 common  shares of Camden
Agro- Systems, Inc. ("Camden"), an Ontario corporation,  owned by Kafus. Through
Camden,  the Company is in the  business of  management  consulting  and product
development, and the Company's efforts have focused primarily on the development
of organic fertilizers from animal waste.

Results of Operations

Three Months Ended March 31, 2000 Compared to March 31, 1999

     Revenues.  The Company had no revenues for the three months ended March 31,
2000,  compared to nominal  revenues of $4,066 for the three  months ended March
31, 1999.

     Expenses.  Total  expenses for the three months ended March 31, 2000,  were
$176,245 compared to total expenses of $104,697 for the three months ended March
31,  1999.  Expenses  primarily  increased in the area in  consulting  and other
professional   fees  related  to  the  development  of  the  Company's   organic
fertilizers and for product development and research costs.

     Net Loss. The Company  incurred a net loss of $176,245 for the three months
ended March 31,  2000,  as compared to a loss of $100,631 for three months ended
March 31, 1999.

Liquidity and Capital Resources

     The Company is a  development  stage  company  that  intends to develop and
market fertilizer derived from animal residues. At this time, the Company has no
revenues,  and does not anticipate any substantial  revenues until it is able to
develop and sell its products. Accordingly, the Company does not have sufficient
revenues to fund its operations.  Currently, the Company receives loans from its
largest shareholder,  Kafus Industries Ltd., to  fund its operations and provide
working  capital.  It is  anticipated  that the Company will continue to receive
financing  through loans from Kafus.  No assurance can be given,  however,  that
Kafus will  continue to finance the Company's  operations.  As of March 31, 2000
and  March  31, 1999,  the Company's  working  capital  was $62,297 and $73,884,
respectively.

PART II. OTHER INFORMATION

Items 1, 2, 3, 4 and 5

Not Applicable.


<PAGE>7

Item 6.

(a)     Exhibits

        Exhibit 27.  Financial Data Schedule

(b)     Reports on 8-K

None.


<PAGE>8

                                   SIGNATURES


        In accordance with the  requirements  of the Securities  Exchange Act of
1934,  the  registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

                                        HYATON ORGANICS INC.
                                           (Registrant)



Dated:  May 22, 2000                    ROBERT NOVITSKY

                                        Robert Novitsky, President