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**UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549**___________________**FORM 10-QSB****/A**___________________

**ý                                QUARTERLY REPORT PURSUANTTO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

 

**For the quarterlyperiod ended September 30, 2005**

 

**OR**

 

** ̈                                TRANSITION REPORTPURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

 

**For the transitionperiod from               to              **

 

Commissionfile number 0-50912

 

**INTERNATIONALAMERICAN TECHNOLOGIES, INC.**(Exact Name Of RegistrantAs Specified In Its Charter)
| Nevada |      |      |      | 88-0225318

(State of    Incorporation)
            
(I.R.S. Employer    Identification No.)

  
                           
601 Cien Street, Suite    235, Kemah, TX
            
77565-3077

(Address of Principal Executive Offices)
            
(ZIP Code)

 

Registrant'sTelephone Number, Including Area Code: (281) 334-9479

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

At September 30,2005, the Registrant had 20,135,000 shares of common stock outstanding.

 
****
 

**TABLE OF CONTENTS**
Item    Description    Page
**PART I - FINANCIAL INFORMATION**
  
ITEM    1.
            
  FINANCIAL    STATEMENTS.
        3  
ITEM    2.
            
  MANAGEMENT'S    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATION.
        3   
ITEM    3.
            
     CONTROLS    AND PROCEDURES.
        4     
**PART II - OTHER INFORMATION**
  
ITEM 1.
            
  LEGAL    PROCEEDINGS.
        5  
ITEM 2.
            
  CHANGES    IN SECURITIES.
        5   
ITEM 3.
            
  DEFAULT    UPON SENIOR SECURITIES.
        5   
ITEM 4.
            
  SUBMISSION    OF MATERS TO A VOTE OF SECURITY HOLDERS.
        5   
ITEM 5.
            
  OTHER    INFORMATION.
        5   ITEM 6.  EXHIBITS    AND REPORTS ON FORM 8-K.5
 
****
**PART I - FINANCIAL INFORMATION**

ITEM 1. FINANCIAL STATEMENTS****Back to Table of Contents

The Registrant's financialstatements for the three and nine-month periods ended September 30, 2005 and 2004 areattached to this quarterly report.

Financial Statements

ITEM2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATION****Back to Table of Contents

Forward-Looking Statements; Market Data 

The following discussion of theCompany's plan of operation contains forward-looking statements. Forward-lookingstatements give our current expectations or forecasts of future events. You can identifythese statements by the fact that they do not relate strictly to historical or currentfacts. They use of words such as "anticipate," "estimate,""expect," "project," "intend," "plan,""believe," and other words and terms of similar meaning in connection with anydiscussion of future operating or financial performance. From time to time, we also mayprovide forward-looking statements in other materials we release to the public.

Overview

International AmericanTechnologies, Inc., a Nevada corporation, is publicly traded on the pink sheets under thesymbol IMTG. The Company was incorporated on August 18, 1986 and is a 81.05% ownedsubsidiary of American International Industries, Inc., a company reporting under theExchange Act with its shares subject to quotation on the OTCBB under the symbol AMIN.

On February 28, 2005, the Registrant entered into a stockpurchase agreement to acquire 51% of the capital stock of Hammonds Technical Services,Inc., a privately owned Texas corporation ("Hammonds") in consideration for theRegistrant or its parent, American International Industries, Inc., providing: (i) $998,300in cash to Hammonds for working capital; (ii) a secured revolving long-term line of creditin the amount of $2,000,000; and (iii) the parent, American International Industries,Inc., issuing 145,000 restricted shares of common stock to the Registrant in considerationfor a $1,450,000 promissory note. The agreement with Hammonds closed on April 28, 2005 andHammonds became a subsidiary of the Registrant.  Therestricted shares were exchanged for two minority equity interests in Hammonds owned bythird parties, which minority interests were canceled. In connection with the agreement between the Company andHammonds the Registrant changed its name from Unlimited Coatings Corporation toInternational American Technologies, Inc. 

Results of Operations and Financial Conditions
*The Company's results of operations during the three- andnine-month period ended September 30, 2005 are not comparative to the numbers during thesame period in the prior year because the Company had not acquired Hammonds and was anon-operating company in 2004.

*Revenues:*Our gross revenues for the three month and nine monthperiod ended September 30, 2005 were $1,128,887 and $1,704,922, respectively. We did nothave any revenues during the same periods of 2004 because during 2004 and through April28, 2005 we had no business operations.
*Cost of Sales: Our costs of sales for the three month and ninemonth period ending September 30, 2005 were $915,904 and $1,305,043, respectively. Withthe increase in backlog we expect to purchase necessary inventory in quantities which willincrease our gross margins and expect decreased cost of sales. 
*General and administrative expenses: In for the three month periodended September 30, 2005 selling, general and administrative expenses totaled $758,737compared to $4,165 for the three-month period ended September 30, 2004. For the nine-monthperiod ended September 30, 2005 selling, general and administrative expenses were$1,161,662 compared to $4,371 for the nine-month period ended September 30, 2004. Theincrease in selling, general and administrative expenses was a result of the acquisitionof Hammonds Technical Services.
*Operating Loss: Our operating loss for the three-month period endedSeptember 30, 2005 was $545,754 compared to an operating loss of $4,165 for thethree-month period ended September 30, 2004. For the nine-month period ended September 30,2005 our operating loss was $761,783 compared to an operating loss of $4,371 for theperiod ended September 30, 2004. We expect our operating loss to incrementally decreasebased on our current backlog of orders. 
*Other Income (Loss): We had other income for the three andnine-month periods ended September 30, 2005 of $8,826 and $20,489, respectively, frominterest income.
*Net Income (Loss): We had a net loss for the three-month periodended September 30, 2005 of $536,928 compared to net income of $7,055 for same period inthe prior year. For the nine-month period ended September 30, 2005, our net loss was$741,294 compared to net income of $13,239 for the same period in the prior year.
*Liquidity and Capital Resources

Cash used in operating activities during the nine months endedSeptember 30, 2005 was $885,178 compared to cash provided by operating activities of$14,382 during the same period in the prior year. The Company's negative cash flow fromoperations was mainly due to our net loss and an increase in inventories of $270,483.Non-cash charges of $193,618 related to depreciation and amortization and common stockissued for services valued at $13,500 offset cash used in operating activities. Wereceived $1,931,968 during the nine-month period ended September 30, 2005 from theissuance of long-term debt instruments offset by payments of short-term payables of$716,248 resulting in $1,215,720 provided by financing activities during the nine-monthperiod ended September 30, 2005. We used $327,724 for investing activities during the ninemonths ended September 30, 2005. Hammonds Technical Services obtained a $2,000,000revolving line of credit which is payable December 17, 2006.

ITEM 3. CONTROLS AND PROCEDURES****Back to Table of Contents
*Evaluation of disclosure controls and procedures. In connectionwith the audit of the Company’s financial statements for the year ended December 31,2005, the Company's president/chief financial officer conducted an evaluation regardingthe effectiveness of the Company's disclosure controls and procedures (as defined in Rules13a-15(e) or 15d-15(e) under the Exchange Act. Based upon the evaluation of these controlsand procedures and discussions with our independent accountants, our president/chieffinancial officer concluded that our disclosure controls and procedures were ineffectiveas of December 31, 2005. The president/chief financial officer determined that the Companydid not maintain effective controls over the financial reporting process due to aninsufficient complement of personnel with an appropriate level of accounting knowledge,experience and training in the application of generally accepted accounting principlescommensurate with its financial reporting requirements and the complexity of thecompany’s operations and transactions, specifically at the Company’s operatingsubsidiary, Hammonds Technical Services, Inc. The Company did not maintain effectivecontrols to ensure there was adequate analysis, documentation, reconciliation and reviewof accounting records and supporting data and monitoring and oversight of the workperformed by completeness of the consolidated financial statements in accordance withgenerally accepted accounting principles. Specifically, the Company did not have effectivecontrols designed and in place over the consolidation of the financial statements of theHammonds subsidiary, including the acquisition, the reconciliation of inter-companyaccounts,   inventory and reserves, fixed assets and depreciation, accruedliabilities and general and administrative expense. In light of the above, the Company hasdetermined to restate its financial statements for the periods ended June 30 and September30, 2005.*Changes in internal controls. Subsequent to December31, 2005, the Company made changes in internal control over financial reporting in orderto improve such internal controls over financial reporting. Specifically, the Company hastaken the following steps to address the specific deficiencies in internal disclosurecontrols and procedures: (i) the Company’s operating subsidiary has hired a full timecontroller who has been directed to implement procedures to correct the noteddeficiencies; (ii) the Company has hired a qualified consultant with accounting andauditing experiences to perform an internal audit function; and the Company’s parenthas hired a full time CFO to oversee financial and accounting transactions to include thefinancial reporting and disclosure.

**PART II - OTHER INFORMATION**

ITEM 1. LEGALPROCEEDINGS****Back to Table of Contents

The Registrant's officers and directorsare not aware of any threatened or pending litigation to which the Registrant is a party.

ITEM 2. CHANGESIN SECURITIES****Back to Table of Contents

None.

ITEM3. DEFAULTS UPON SENIOR SECURITIES****Back to Table of Contents

None.

ITEM4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS****Back to Table of Contents

None.

ITEM5. OTHER INFORMATION****Back to Table of Contents

None.

ITEM6. EXHIBITS AND REPORTS ON FORM 8-K****Back to Table of Contents

(a) The following documents are filed as exhibits tothis report on Form 10-QSB/A or incorporated by reference herein. Any documentincorporated by reference is identified by a parenthetical reference to the SEC filingthat included such document.
**Exhibit    No.**
**Description**31.1Certification of    President and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted    pursuant to the Sarbanes-Oxley Act of 200231.2
Certification    of President and Chief Financial Officer Pursuant to Section 906 of Sarbanes-Oxley Act of    2002
(b) Reports on Form 8-K During the Period Covered by this Report: 

The Registrant did not file a Form 8-K during the three-month periodended September 30, 2005.

 

**SIGNATURES**

Pursuant to therequirements of the Securities Exchange Act of 1934, this report has been signed below bythe following persons on behalf of the registrant and in the capacities and on the dateindicated.
By /s/ Daniel DrorDaniel DrorChairmanOctober 12, 2006   By /s/ Gary D. WoerzGary D. WoerzCEO and CFOOctober 12, 2006
**FinancialStatements**Back to Table of Contents
Condensed    Consolidated Financial Statements   Balance Sheets -    September 30, 2005 and December 31, 2004 (Audited)8      Statements    of Operations - Three and nine months ended September 30, 2005 and 20049   Statements    of Cash Flows - Nine months ended September 30, 2005 and 200410Notes    to Condensed Consolidated Financial Statements11**INTERNATIONAL    AMERICAN TECHNOLOGIES, INC. AND SUBSIDIARY**Condensed Consolidated Balance SheetsBack to Table of ContentsSeptember 30, 2005    and December 31, 2004(unaudited)  **  **
**September 30, 2005**
**December 31, 2004****(Restated)**
**(Audited)**   
AssetsCurrent assets:
      Cash$2,917
$
99   Certificate of    deposits-300,000   Accounts    receivable, net516,582   Current portion of    notes receivable31,41226,865   Inventories1,079,321-   Prepaid expenses    and other assets97,619-   Amount due from    affiliate-88,712        Total current assets1,727,851415,676   Long-term notes receivable, net392,898416,466Property and equipment, net 839,080-Patents and trademarks, net2,583,605Other assets42,435-          Total assets$5,585,869$832,142  
Liabilities    and Stockholders' Equity  Current liabilities:   Accounts payable    and accrued expenses1,235,09015   Short-term notes    payable263,190-        Total current liabilities1,498,28015  Long-term debt1,931,968-Due to American International    Industries, Inc.1,548,088-Deferred tax liability503,200-      Total liabilities5,481,53615  Stockholders' equity:   Preferred stock,    $0.0001par value, authorized 5,000,000 shares: none issued--   Common stock,    $0.0001 par value, authorized 195,000,000 shares:         20,135,000 shares issued and outstanding at September 30, 2005     and    20,000,000 shares and outstanding at December 31, 20042,0142,000   Additional paid-in    capital965,128951,642   Accumulated    deficit(862,809)(121,515)     Total    stockholders' equity104,333832,127        Total liabilities and stockholders' equity$5,585,869
$832,142  See accompanying    notes to condensed consolidated financial statements.**INTERNATIONAL AMERICAN TECHNOLOGIES, INC. AND SUBSIDIARY**Condensed Consolidated Statements of OperationsBack to Table of ContentsFor    the three and nine months ended September 30, 2005 and 2004(Unaudited)  **Three Months Ended****Three Months Ended****Nine Months Ended**
**Nine Months Ended****September 30, 2005****September 30, 2004****September 30, 2005****September 30, 2004****  **
**(Restated)**   
**(Restated)**     Revenues$1,128,887$-$1,704,922
$
-Costs and expenses:   Cost of sales 915,904-1,305,043
-   Selling, general    and administrative 758,7374,1651,161,662
4,371        Total costs and expenses 1,674,6414,1652,466,705
4,371   Operating loss(545,754)(4,165)(761,783)
(4,371)   Other income (expenses):    Interest income 8,82611,22020,489
17,610     Total    other income8,82611,22020,489
17,610       Net    earnings (loss) before income tax(536,928)7,055(741,294)
13,239Provision for income tax---
-        Net earnings (loss)$(536,928)$7,055$(741,294)
$
13,239  Net earnings applicable to    common shareholders:Basic and    diluted$(0.03)$0.00$(0.04)$
0.00   Weighted    average common shares - basic and diluted20,129,00020,000,00020,102,650
20,000,000     See    accompanying notes to condensed consolidated financial statements.**INTERNATIONAL AMERICAN TECHNOLOGIES, INC. AND SUBSIDIARY**Condensed Consolidated Statements of Cash FlowsBack to Table of ContentsNine    months ended September 30, 2005 and 2004(Unaudited)  **Nine Months Ended****Nine Months Ended****September 30, 2005****September 30, 2004****  **
**(Restated)**     Cash flows from operating    activities:    Net earnings
$(741,294)
$
13,239   Adjustments to    reconcile net earnings    to net cash    provided by (used in) operating activities:         Depreciation and amortization of property and equipment52,736
-        Amortization of patents and trademarks140,882
-     Common    stock issued for services13,500
-   (Increase)    decrease of operating assets, net of acquisition of subsidiary:         Accounts receivable(7,216)-        Inventories(270,483)-        Prepaid expenses and other current assets(36,390)-     Other    assets27,650
-   Increase    (decrease) in operating liabilities, net of acquisition of subsidiary:        Accounts payable and accrued expenses(64,563)1,143                Net cash provided by (used in) operating activities (885,178)
14,382  Cash flows from investing    activities:    Purchase of    property and equipment(65,051)
-   Redemption of    certificate of deposit300,000
-   Purchase of stock    in majority-owned subsidiary(998,300)
-   Cash acquired in    acquisition of majority-owned subsidiary56,506
-   Notes receivable19,021
15,813   Amount due from/to    affiliates360,100
(32,600)               Net cash used in investing activities 
(327,724)
(16,787)   Cash flows from financing    activities:    Proceeds from    long-term debt1,931,968
-   Repayment of    short-term notes payable(716,248)
-               Net cash provided by financing activities 
1,215,720
-                 Net increase (decrease) in cash 2,818
(2,405)  Cash at beginning of year
99
3,542Cash at end    of period
$
2,917
$
1,137   Supplemental    schedule of cash flow information:
$
-
$
-  See accompanying    notes to condensed consolidated financial statements.**INTERNATIONAL AMERICAN TECHNOLOGIES, INC. AND SUBSIDIARYNotes to  Consolidated FinancialStatements Back to Table of ContentsSeptember 30, 2005
**(1) General

International American Technologies, Inc. (the "Company" or"IMTG"), operates as a holding company with one majority-owned subsidiary. TheCompany is a majority owned subsidiary of American International Industries, Inc. (AIII).

The accompanying unaudited financial statements have been prepared inaccordance with U. S. generally accepted accounting principles ("GAAP") forinterim financial information and with the instructions to Form 10-QSB. Accordingly, theydo not include all of the information and footnotes required by GAAP for completefinancial statements. In the opinion of management, all adjustments (consisting of normalrecurring adjustments) considered necessary for a fair presentation have been included.Operating results for the nine months period ended September 30, 2005 are not indicativeof the results that may be expected for the year ending December 31, 2005.

As contemplated by the Securities and Exchange Commission (SEC) underRules of Regulation S-B, the accompanying financial statements and related footnotes havebeen condensed and do not contain certain information that will be included in theCompany's annual financial statements and footnotes thereto. For further information,refer to the Company's audited consolidated financial statements and related footnotesthereto included in the Company's annual report on Form 10-KSB for the year ended December31, 2004.
**(2) Use of Estimates

The preparation of financial statements in conformity with U. S. GAAPrequires management to make estimates and assumptions that affect the reported amounts ofassets and liabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during thereporting period. Actual results could vary from those estimates.
**(3) Recent Accounting Pronouncements

In December 2004, the Financial Accounting Standards Board issuedStatement of Financial Accounting Standards No. 153. This statement addresses themeasurement of exchanges of nonmonetary assets. The guidance in APB Opinion No. 29, *"Accountingfor Nonmonetary Transactions,"* is based on the principle that exchanges ofnonmonetary assets should be measured based on the fair value of the assets exchanged.

The guidance in that opinion; however, included certain exceptions tothat principle. This statement amends Opinion 29 to eliminate the exception fornonmonetary exchanges of similar productive assets and replaces it with a generalexception for exchanges of nonmonetary assets that do not have commercial substance. Anonmonetary exchange has commercial substance if the future cash flows of the entity areexpected to change significantly as a result of the exchange. This statement is effectivefor financial statements for fiscal years beginning after June 15, 2005. Earlierapplication is permitted for nonmonetary asset exchanges incurred during fiscal yearsbeginning after the date of this statement is issued. Management believes the adoption ofthis statement will have no impact on the financial statements of the Company.

In December 2004, the Financial Accounting Standards Board issuedStatement of Financial Accounting Standards No. 152, which amends FASB statement No. 66, *"Accountingfor Sales of Real Estate,"* to reference the financial accounting and reportingguidance for real estate time-sharing transactions that is provided in AICPA Statement ofPosition (SOP) 04-2, *"Accounting for Real Estate Time-Sharing Transactions."*This statement also amends FASB Statement No. 67, *"Accounting for Costs andInitial Rental Operations of Real Estate Projects,"* to state that the guidancefor (a) incidental operations and (b) costs incurred to sell real estate projects does notapply to real estate time-sharing transactions. The accounting for those operations andcosts is subject to the guidance in SOP 04-2. This statement is effective for financialstatements for fiscal years beginning after June 15, 2005. Management believes theadoption of this statement will have no impact on the financial statements of the Company.

In November 2004, the Financial Accounting Standards Board (FASB)issued Statement of Financial Accounting Standards No. 151, *"Inventory Costs- anamendment of ARB No. 43, Chapter 4."* This statement amends the guidance in ARBNo. 43, Chapter 4, *"Inventory Pricing,"* to clarify the accounting forabnormal amounts of idle facility expense, freight, handling costs, and wasted material(spoilage). Paragraph 5 of ARB 43, Chapter 4, previously stated that *"under somecircumstances, items such as idle facility expense, excessive spoilage, double freight,and rehandling costs may be so abnormal as to require treatment as current periodcharges."* This statement requires that those items be recognized ascurrent-period charges regardless of whether they meet the criterion of *"soabnormal."* In addition, this statement requires that allocation of fixedproduction overheads to the costs of conversion be based on the normal capacity of theproduction facilities. This statement is effective for inventory costs incurred duringfiscal years beginning after June 15, 2005. Management does not believe the adoption ofthis statement will have any immediate material impact on the Company.
**(4) Acquisition

On February 28, 2005, the Company entered into a Stock PurchaseAgreement  to acquire a 51% interest in the capital stock of Hammonds TechnicalServices, Inc., a privately owned Texas corporation ("Hammonds") inconsideration for the Company or its parent, American International Industries, Inc.,providing: (i) $998,300 in cash to Hammonds for working capital; (ii) a secured revolvinglong-term line of credit in the amount of $2,000,000; and (iii) the parent issuing 145,000restricted shares of common stock to the Company in consideration for a $1,450,000promissory note. The restricted shares were exchanged for two minority equity interests inHammonds owned by third parties, which minority interest were canceled. The total purchaseprice to acquire the 51% in Hammonds was $2,455,700, representing cash payments of$998,300, 145,000 shares of American International Industries’ restricted commonstock valued at $1,450,000 and the assumption of a note payable to one of the formershareholders in the amount of $173,300 and liabilities in excess of assets in the amountof $7,400. The acquisition of Hammonds closed on April 28, 2005.

Hammonds is a manufacturer of fuel injectors and pumps for the aviationindustry, and producer of fuel and water additives for the aviation and potable waterindustries. Sales are made to customers in both domestic and international markets.

As required by SFAS No. 141, the Company has recorded the acquisitionusing the purchase method of accounting with the purchase price allocated to the acquiredassets and liabilities based on their respective estimated fair values at the acquisitiondate. The purchase price of $2,455,700 had been allocated at follows:
Current assets$1,435,939Property and equipment, net 826,765Patents and trademarks, net of amortization2,724,487Other non-current assets70,085Current liabilities (2,098,376)Deferred tax liability(503,200)$2,455,700
Revenues and expenses are included in the Company’s statement ofoperations from May 1, 2005 through September 30, 2005.

The following unaudited pro forma data summarizes the results ofoperations of the Company for the three and nine month periods ended September 30, 2005and 2004 as if the acquisition had been completed on January 1, 2004. The pro forma datagives effect to the actual operating results prior to acquisition. The pro forma resultsdo not purport to be indicative of the results that would have actually been achieved ifthe acquisition had occurred on January 1, 2004 or may be achieved in the future.

Three    months ended
Three months ended
Nine months ended
Nine months ended
September 30, 2005
September 30, 2004
September 30, 2005
September 30, 2004Revenues
$
1,128,887
$
1,985,115
$
1,704,922
$
3,929,565Net income (loss)
$
(536,928)
$
(253,425)
$
(741,294)
$
(403,640)Basic net earnings (loss)    per share
$
(0.03)
$
(0.01)
$
(0.04)
$
(0.02)**(5) Income Taxes

Income taxes for the interim periods were computed using the effective tax rateestimated to be applicable for the full fiscal year, which is subject to ongoing reviewand evaluation by management. The estimated federal income tax expense for the nine-monthperiods ended September 30, 2005 and 2004 is eliminated by net operating loss carryforwards.

**(6) Restatement of Previously Issued Quarterly Data (Unaudited)**

The data for the quarterly period ended September 30, 2005 is beingrestated to properly account for the allocation of the purchase price for the acquisitionof Hammonds. In addition, the restatement accounts for the correction of errors related tothe over booking of income as it relates to the forgiveness of debt and increaseamortization of intangibles.

 

As previously reported
Restatement adjustments
As restatedQuarter ended September 30, 2005     Revenues
$1,704,922
$-
$1,704,922     Cost of sales1,305,043-1,305,043     Selling, general and    administrative1,058,947102,7151,161,662     Total costs and expenses2,363,990102,7152,466,705     Operating income (loss)(659,068)(102,715)(761,783)     Interest income14,3256,16420,489     Other income519,099(519,099)-        Total other    income533,424(512,935)20,489     Net earnings (loss) before income    taxes     (125,644)(615,650)(741,294)     Net earnings (loss)(125,644)(615,650)(741,294)          Net earnings (loss) per share to    shareholders(0.01)(0.03)(0.04)     Weighted Average common shares20,102,650-20,102,650September 30, 2005     Excess of cost over net assets of    businesses acquired
$4,603,634
$4,603,634
$-     Patents and trademarks, net135,5822,448,0232,583,605     Total assets7,741,480(2,155,611)5,585,869     Accounts payable and accrued    expenses922,629312,4611,235,090     Current liabilities2,735,607(1,237,327)1,498,280     Deferred tax liability-503,200503,200     Amount due to American    International Industries, Inc.1,549,788(7,400)1,548,088     Minority interest2,353,922(2,353,922)-     Total liabilities7,021,497(1,539,961)5,481,536     Accumulated deficit(247,159)(615,650)(862,809)     Total stockholders' equity719,983(615,650)104,333********************* |
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