SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB

(MARK ONE)

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

       For the quarterly period ended June 30, 1998

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

       For the transition period from ___________________ to ___________________

                           Commission File No. 0-24188

                                   JOTAN, INC.
        (Exact name of small business issuer as specified in its charter)

                     Florida                             59-3181162
         (State or other jurisdiction of      (IRS Employer Identification No.)
          incorporation or organization)

         Issuer's telephone number, including area code (904) 355-2592

         -------------------------------------------------------------------
         Former name, former address and former fiscal year, if changed


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


APPLICABLE ONLY TO CORPORATE ISSUERS - State the number of shares outstanding of
each of the  issuer's  classes of common  equity,  as of the latest  practicable
date: 21,414,013 shares of common stock, $.01 par value, as of August 10, 1998.



<PAGE>





                                      INDEX

                                   Jotan, Inc.



Part I - Financial Information                                         Page

         Item I   -- Financial Statements (Unaudited)
                     Condensed Consolidated Statements of Operations
                     for the Three Months and Six Months ended
                     June 30, 1998 and 1997                              2

                     Condensed Consolidated Balance Sheets at
                     June 30, 1998 and 1997                           3 and 4

                     Condensed Consolidated Statements of Cash
                     Flows for the Six Months ended 
                     June 30, 1998 and 1997                           5 and 6

                     Notes to Condensed Consolidated Financial
                     Statements                                          7

         Item II  -- Management's Discussion and Analysis of
                     Financial Condition and Results of Operations       9

         Item III -- Liquidity and Capital Resources                    10


Part II - Other Information

          Item 5 - Other Information                                    11

          Item 6 - Exhibits and Reports on Form 8-K                     11

          Signatures                                                    13

                                       1
<PAGE>

<TABLE>

                                   Jotan, Inc.

                 Condensed Consolidated Statements of Operations
                                   (Unaudited)

<CAPTION>
                         Three months ended June 30   Six months ended June 30
                             1998          1997          1998          1997
                         ------------  ------------  ------------  ------------

<S>                      <C>           <C>           <C>           <C>         
Sales                    $ 17,385,462  $ 18,973,980  $ 33,246,946  $ 25,763,187
Cost of sales              12,887,519    13,621,011    24,017,172    18,369,154
                         ------------  ------------  ------------  ------------
Gross profit                4,497,943     5,352,969     9,229,774     7,394,033

Operating expenses          4,977,173     4,590,539     9,848,150     6,531,864
Amortization of goodwill
 and non-compete              147,660       793,490       339,981     1,065,998
                         ------------  ------------  ------------  ------------
Operating income (loss)   (   626,890)  (    31,060)   (  958,357)   (  203,829)

Other income                      935           215         5,268        10,125
Interest expense           (1,146,490)  (   980,869)   (2,201,215    (1,301,467)

                         ------------  ------------  ------------  ------------
Income (loss) before
 taxes                     (1,772,445)   (1,011,714)   (3,154,304)   (1,495,171)
Income tax expense                  -             -             -             -
                         ------------  ------------  ------------  ------------

Net income (loss)          (1,772,445)   (1,011,714)   (3,154,304)   (1,495,171)

Amounts attributable to 
 preferred stock              300,217       220,625       672,194       320,834
                         ------------  ------------  ------------  ------------

Net income (loss) 
 attributable to common
  shareholders           $ (2,072,662) $ (1,232,339) $ (3,826,498) $ (1,816,005)
                         ============  ============  ============  ============
Net income (loss) 
 per share
  Basic                    $   (.11)     $   (.22)      $   (.31)     $   (.32)
                           ========      ========       ========      ========
  Diluted                  $   (.11)     $   (.22)      $   (.31)     $   (.32)
                           ========      ========       ========      ========

Weighted average number
 of shares outstanding:
  Basic                    18,995,951     5,696,611    12,383,020     5,687,964
                           ==========    ==========    ==========    ==========
  Diluted                  18,995,951     5,696,611    12,383,020     5,687,964
                           ==========    ==========    ==========    ==========
</TABLE>








See notes to condensed consolidated financial statements.

                                       2
<PAGE>

<TABLE>

                                   Jotan, Inc.

                      Condensed Consolidated Balance Sheets
                                   (Unaudited)

<CAPTION>
                                                      June 30
                                            1998                    1997
                                         ----------              ----------
<S>                                     <C>                     <C>    
Assets
Current assets:
    Cash                                $         -             $   536,288
    Accounts receivable, net              9,741,518              10,372,866
    Inventory                             7,636,301               7,786,435
    Other current assets                  1,738,986               1,056,353
                                         ----------              ----------
Total current assets                     19,116,805              19,751,942
                                         ----------              ----------


Property and equipment, net               4,549,317               5,072,792


Goodwill, net                             1,912,780              27,043,921
Non-compete agreements, net               1,648,539               6,162,000
Other assets                                534,433                 879,113
                                         ----------              ----------

Total assets                            $27,761,874             $58,909,768
                                        ===========             ===========

</TABLE>







See notes to condensed consolidated financial statements.

                                       3
<PAGE>

<TABLE>

                                   Jotan, Inc.

                      Condensed Consolidated Balance Sheets
                                   (Unaudited)

<CAPTION>

                                                        June 30
                                                1998               1997
                                             ----------         ----------
<S>                                         <C>                <C>    
Liabilities and stockholders' equity 
Current liabilities:
  Bank overdraft                            $   975,496        $         -
  Trade payables                              4,417,614          5,779,624
  Accrued expenses                            3,933,123          4,631,418
  Current portion of long-term debt,
   and capital leases                         9,715,740          3,957,000
  Other                                       1,115,204            329,564
                                             ----------         ----------
Total current liabilities                    20,157,177         14,697,606
                                             ----------         ----------

Capitalized lease obligations                 3,800,072          3,907,801
Other liabilities                             2,154,785            121,561
Long-term debt, less current maturities
  Related parties                             9,951,183          8,710,000
  Others                                     17,474,707         20,924,040
                                             ----------         ----------
                                             33,380,747         33,663,402
                                             ----------         ----------

Redeemable preferred stock with related 
 parties                                     12,932,747          9,340,000

Stockholders' equity (deficit) 
  Preferred stock:
    Authorized shares - 10,000,000
    Issued and outstanding shares to 
    related party - 1,435,705 in 1998
    and 1,265,823 in 1997                        14,357             12,658
  Voting common stock, $.01 par value:
    Authorized shares - 40,000,000
    Issued and outstanding shares - 
    21,414,013 in 1998 and 5,696,611 
    in 1997                                     214,140             56,966
  Additional paid-in capital                  3,692,211          4,639,611
  Retained earnings (deficit)               (42,629,505)       ( 3,500,475)
                                            -----------        -----------
Total stockholders' equity (deficit)        (38,708,797)         1,208,760
                                            -----------        -----------

Total liabilities and stockholders' equity  $27,761,874        $58,909,768
                                            ===========        ===========
</TABLE>







See notes to condensed consolidated financial statements.

                                       4
<PAGE>

<TABLE>

                                   Jotan. Inc.

                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)
<CAPTION>

                                                   Six months ended June 30
                                                     1998            1997
                                                ------------    ------------
<S>                                            <C>             <C>    
Cash flows from operating activities
Net income (loss)                              $(  3,154,304)  $(  1,495,171)
Adjustments to reconcile net income (loss)
 to net cash provided by (used in) operating
 activities:
  Depreciation and amortization expense              671,041       1,266,192
  Stock compensation expense                               -          25,800
  Changes in operating assets and liabilities:
    Accounts receivable, net                    (    184,559)   (  2,852,061)
    Inventory                                   (    351,992)   (    334,912)
    Other current assets                        (     72,486)   (    214,515)
    Other assets                                (    258,566)        484,249
    Trade payables                              (  3,010,571)        974,991
    Accrued expenses                                 528,171         920,439
    Other current liabilities                   (    432,000)   (    592,557)
    Other liabilities                                 31,622               -
                                                ------------    ------------
Net cash (used in) provided by operating
 activities                                     (  6,233,644)   (  1,817,545)

Cash flows from investing activities
Proceeds from sale of property and equipment               -       1,000,000
Purchase of property and equipment              (     32,494)   (    137,235)
Purchase of business, Cove, net of 
 cash acquired                                             -    (  2,625,000)
Purchase of business, Southland, net of
 cash acquired                                             -    ( 37,721,235)
                                                ------------    ------------
Net cash used in investing activities           (     32,494)   ( 39,483,470)
                                                ------------    ------------

Cash flows from financing activities
Conversion of trade payable to notes payable       3,402,460               -
Proceeds from (payments) on line of 
 credit borrowings                              (    504,393)   (  1,594,076)
Payments on long-term debt and capitalized
 leases                                         (    496,556)   (  1,500,219)
Proceeds from senior revolver                              -       6,080,884
Proceeds from acquisition revolver                         -       2,625,000
Proceeds from senior term debt                             -      16,122,500
Proceeds from senior subordinated debt             1,250,000       8,710,000
Proceeds from issuance of redeemable
 preferred stock, net of issuance costs              250,000       9,340,000
Proceeds from issuance of warrants                         -         650,000
                                                ------------    ------------
Net cash provided by financing activities          3,901,511      40,434,089
                                                ------------    ------------

Net increase (decrease) in cash and
 cash equivalents                               (  2,364,627)   (    866,926)
Cash and cash equivalents at beginning
 of period                                         1,389,131       1,403,214
                                                ------------    ------------
Cash and cash equivalents at end of period     $(    975,496)  $     536,288
                                                ============    ============
</TABLE>

                                       5
<PAGE>

<TABLE>

                                   Jotan. Inc.

           Condensed Consolidated Statements of Cash Flows (Continued)
                                   (Unaudited)
<CAPTION>

                                                Six months ended June 30
                                                 1998              1997
                                            -------------     ------------

<S>                                         <C>              <C>   
Purchase of business, Cove, net of 
 cash acquired
  Inventory                                 $           -    $(    383,500)
  Property and equipment                                -     (    278,750)
  Other assets                                          -     (      2,850)
  Goodwill                                              -     (  2,054,037)
  Notes payable and capitalized leases                  -           94,137
                                            -------------     ------------

                                            $           -    $(  2,625,000)
                                            =============    ==============
</TABLE>

<TABLE>


<S>                                         <C>              <C>  
Purchase of business, Southland, net of
 cash acquired
  Accounts receivable                       $           -    $(  5,967,581)
  Inventory                                             -     (  5,789,881)
  Other current assets                                  -     (    517,889)
  Property and equipment                                -     (  4,069,138)
  Other assets                                          -     (    820,802)
  Trade payables                                        -        3,278,692
  Accrued expenses                                      -        3,488,497
  Other current liabilities                             -          922,121
  Other liabilities                                     -          122,486
  Non - Compete                                         -     (  6,600,000)
  Goodwill                                              -     ( 25,500,563)
  Notes payable and capitalized leases                  -        3,732,823
                                            -------------     ------------

                                            $           -    $(37,721,235)
                                            =============    =============

</TABLE>







See notes to condensed consolidated financial statements.

                                       6
<PAGE>


                                   Jotan Inc.
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

1. The Business and Basis of Presentation

Description of Business

The Company is a  distributor  of packaging  and shipping  supplies  with twenty
distribution centers and two production facilities located throughout the United
States. The Company sells to a broad customer base including industrial,  moving
and storage,  air freight,  and perishable food market segments.  Prior to March
1997, Jotan, Inc. was a southeast  regional  distributor of packaging  materials
providing  "Just  On  Time  As  Needed"  delivery  service  for  its  industrial
customers.

On March 4, 1997, the Company  completed the acquisition of 100% of the stock of
Southland Holding Company ("SHC").  The subsidiaries of SHC and one affiliate of
the Company merged with and into SHC in 1997 which changed its name to Southland
Container Packaging Corp. ("Southland"). Southland is a distributor of packaging
and shipping  supplies with eleven  distribution  centers  throughout the United
States.  Southland  served primarily the moving and storage  industry,  but also
provided packaging  products to the air freight and perishable food markets.  As
of June 20, 1997,  the Company  completed the  acquisition of the assets of Cove
Container Corporation ("Cove").  Cove is a distributor of packaging and shipping
supplies  with  a  distribution  center  located  in  Pontiac,  Michigan,  and a
manufacturing facility in West Branch, Michigan. Cove serves both the industrial
and the moving and storage industry segments.


Basis of Presentation

The  accompanying  financial  statements  are  unaudited  and, in the opinion of
management,   reflect  all  the  adjustments  that  are  necessary  for  a  fair
presentation of the financial position and results of operations for the periods
presented. All such adjustments are of a normal and recurring nature.

The  results  of  operations  for the  periods  presented  are  not  necessarily
indicative  of the results to be expected  for the entire  year.  The  financial
statements  at June 30, 1998 and June 30, 1997 reflect the combined  accounts of
the Company and its subsidiaries.  Certain  information and footnote  disclosure
normally  included  in the  financial  statements  prepared in  accordance  with
generally accepted accounting principles have been condensed or omitted.

2. Long-Term Debt


Long-term debt consists of the following at June 30, 1998:
<TABLE>
<S>                                                                 <C>        
Senior Secured Term Loan A with interest at LIBOR plus 2.75%.       $ 8,159,323
 
Senior Secured Term Loan B with interest at LIBOR plus 3.25%.         7,615,718

Senior Secured  Revolving  Line of Credit  with  interest
  at LIBOR plus  2.75%.                                               7,576,491


 Subordinated  Debt with related  parties,  interest at 12.5%.        9,951,183

Senior Subordinated PIK notes with related parties  
  evidencing  accrued interest due for August 1997
  and  November  1997 on the original  subordinated
  debt, interest of 12.5%.                                              508,334

Other                                                                 3,138,604
                                                                    -----------
</TABLE>

                                       7
<PAGE>


                                  Jotan Inc.
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

2. Long-Term Debt (continued)

<TABLE>
<S>                                                                <C> 
                                                                     36,949,653

Less current maturities                                            (  9,523,766)
                                                                    -----------
                                                                    $27,425,887
                                                                    ===========
</TABLE>

On April 14, 1998, the Company and Southland  entered into a Fifth  Amendment to
its Credit  Agreement with the Banks (the "Fifth  Amendment")  whereby the Banks
waived the  events of  default  for  nonpayment  and agreed to defer  delinquent
interest  payments and other scheduled  interest payments through July 31, 1998,
by execution of interest deferral notes.  Scheduled principal payments also were
deferred  until March 1999.  However,  the Company agreed that all principal and
interest  under  loans  from the Banks will be due on  February  28,  2001.  The
Company agreed to give the Banks tighter  controls and liens on cash collateral,
and the  Banks  agreed  to  relax  certain  financial  covenants,  although  the
miscellaneous debt restriction was reduced to $100,000. One of the new terms was
that  all  collections  on  customer  receivables  would be used to pay down the
revolving line of credit through a lockbox arrangement.  As a result, the amount
outstanding  under the  revolving  line of credit of $7,576,491 at June 30, 1998
has been classified as a current liability.  As a result of the Fifth Amendment,
the Company's working capital line of credit with the Banks remains available to
meet the Company's requirements.

As a condition to the Fifth Amendment,  the Banks required Rice Capital Partners
II L.P.  ("Rice"),  a related  party by management of Rice being on the Board of
Directors,  to loan the Company an additional  $1,250,000.  In exchange for this
loan which was  obtained  in April 1998,  the  Company  issued to Rice its 12.5%
priority senior  subordinated  notes (the "Priority  Notes").  Interest payments
under the  Priority  Notes are  payable  with PIK notes until the Bank's debt is
repaid.  The  Priority  Notes are  junior to the  Bank's  debt but senior to the
subordinated  notes  previously  issued to Rice and  Fairview  (the "1997 Senior
Subordinated  Notes").  In order to induce Rice to purchase the Priority  Notes,
the Company also agreed to issue to Rice  immediately  exercisable  warrants for
the purchase (at a nominal exercise price) of 42,377,173 shares of the Company's
common  stock.  The  Company  also agreed to issue to Rice  similar  warrants to
purchase   8,475,638   shares  of  the  Company's  common  stock  as  additional
consideration  for Rice's  purchase of  $250,000 of Series B Preferred  Stock in
January,  1998.  The total number of shares of common stock provided under these
warrants is subject to  reduction  after  receipt of a fairness  opinion from an
independent financial advisor.

On June 2, 1998, the Company and Southland entered into a Sixth Amendment to its
Credit  Agreement  with  the  Banks  (the  "Sixth  Amendment")  whereby  certain
modifications were made to the definition of "eligible  accounts" in Section 1.1
of the Credit  Agreement.  In addition,  the bank account  structure was clearly
defined.


Long-term debt due matures as follows:
<TABLE>
              <S>                                              <C>        
              1999                                             $10,436,411
              2000                                               3,095,846
              2001                                              13,631,168
              2002                                                   1,670
              2003                                                       -
              Thereafter                                        10,758,334
                                                              ------------
                                                                37,923,429

              Less discounts                                  (    973,776)
                                                              ------------
                                                               $36,949,653
                                                              ============
</TABLE>
                                       8
<PAGE>


                                  Jotan, Inc.

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

On March 4, 1997, the Company  completed the acquisition of 100% of the stock of
Southland Holding Company and its subsidiaries, now known as Southland Container
Packaging  Corp.  ("Southland").  On June 23, 1997,  the Company  completed  the
acquisition of the assets of Cove Container Corporation ("Cove"). As a result of
these  acquisitions,  the Company's  financial  statements for the quarter ended
June 30, 1997 and the quarter  ended June 30,  1998 are not  comparable  in many
respects.

To facilitate a meaningful  comparison of the Company's  operating  performance,
the  following  discussion  and analysis is presented  on a  traditional  basis.
Included in the following  discussion are comparisons of EBITDA (earnings before
interest,  taxes,  depreciation,  and amortization and other  extraordinary  and
non-recurring  charges). The Company believes EBITDA is helpful in understanding
cash flow generated from  operations  that is available for taxes,  debt service
and capital expenditures.  In addition,  EBITDA, as redefined in the senior loan
documents  to  exclude  certain   extraordinary   and   non-recurring   charges,
facilitates  the  monitoring  of covenants  related to certain  long-term  debt.
EBITDA should not be considered by investors as an  alternative  to net earnings
as an indicator of the  Company's  operating  performance  or to cash flows as a
measure of its overall liquidity.

Jotan,  Inc.  and its  consolidated  subsidiaries  reported  a net  loss of $2.1
million  for the  quarter  ended June 30,  1998,  compared to a net loss of $1.2
million for the same period in 1997.  EBITDA for the quarter ended June 30, 1998
was a loss of $80 thousand  compared to $906 thousand profit for the same period
in 1997.  For the first six months of 1998,  the Company  reported an  operating
loss of $958 thousand compared to a loss of $204 thousand for the same period in
1997. EBITDA for the six months ended June 30, 1998 was $46 thousand compared to
$1,062 thousand for the same period in 1997.

Quarter to quarter, the reduction in EBITDA was due to the reorganization of the
West  Coast  operations.  This  included  the  closure of three  facilities  and
retention of new management.

<TABLE>
<CAPTION>

                            Second Quarter      First Six Months
                            1998       1997      1998      1997

<S>                        <C>        <C>       <C>       <C>  
        ($000's)
Operating Income/(Loss)    (627)      (  31)    (958)      (204)
Amortization                148         793      340      1,066
Depreciation                168         143      331        200
Other Non-recurring         231           -      333          -
                           -----       -----    -----     ------
EBITDA                      (80)        906       46      1,062
</TABLE>

Net sales for the second  quarter of 1998  decreased to $17.4 million from $18.9
million for the second quarter of 1997.  Year to date, net sales  increased from
$25.8 million in 1997 to $33.2 million in 1998. The year to date increase in net
sales  was  primarily  related  to post  acquisition  revenue  generated  by the
Southland and Cove operations which is only partially included in 1997 results.

Gross  profit was $4.5 million for the second  quarter of 1998  compared to $5.3
million the same period in 1997. Year to date,  gross profit increased from $7.4
million in 1997 to $9.2 million in 1998.  Margins  declined  from 28.7% to 27.7%
for the  first  six  months.  The  year to date  increase  in gross  profit  was
primarily  related to post  acquisition  revenue  generated by the Southland and
Cove operations which is only partially included in 1997 results.

Operating expenses increased to $4.9 million for the second quarter of 1998 from
$4.6  million for the same period in 1997 and from $6.5  million to $9.8 million
for the six months ending June 30, 1998. The major factor  contributing to these
increases  was  the  inclusion  of  Southland  operating  expenses  in the  post
acquisition period.

                                       9
<PAGE>

                                   Jotan, Inc.

II. Management's Discussion and Analysis of Financial Condition and Results of
    Operations (Continued)

Amortizations of goodwill and non-compete agreements were $148 thousand and $793
thousand for the second  quarters of 1998 and 1997,  respectively.  Year to date
amortization  totaled  $340  thousand  and  $1,066  thousand  for 1998 and 1997,
respectively. Post acquisition amortization expense was significantly reduced by
the year-end 1997 write-off of Southland related goodwill.

Interest  expense  for the second  quarters  of 1998 and 1997  amounted  to $1.1
million and $1.0 million respectively.  Year to date, interest expense increased
from $1.3 million in 1997 to $2.2 million in 1998. The major factor contributing
to these  increases  was the  impact  of  increased  borrowings  related  to the
Southland acquisition.

III. Liquidity and Capital Resources

On April 14, 1998, the Company and Southland  entered into a Fifth  Amendment to
its Credit  Agreement with the Banks (the "Fifth  Amendment")  whereby the Banks
waived the  events of  default  for  nonpayment  and agreed to defer  delinquent
interest  payments and other scheduled  interest payments through July 31, 1998,
by execution of interest deferral notes.  Scheduled principal payments also were
deferred  until March 1999.  However,  the Company agreed that all principal and
interest  under  loans  from the Banks will be due on  February  28,  2001.  The
Company agreed to give the Banks tighter  controls and liens on cash collateral,
and the  Banks  agreed  to  relax  certain  financial  covenants,  although  the
miscellaneous debt restriction was reduced to $100,000. One of the new terms was
that  all  collections  on  customer  receivables  would be used to pay down the
revolving line of credit through a lockbox arrangement.  As a result, the amount
outstanding  under the  revolving  line of credit of $7,576,491 at June 30, 1998
has been classified as a current liability.  As a result of the Fifth Amendment,
the Company's working capital line of credit with the Banks remains available to
meet the Company's requirements.

As a condition to the Fifth Amendment,  the Banks required Rice Capital Partners
II L.P.  ("Rice"),  a related  party by management of Rice being on the Board of
Directors,  to loan the Company an additional  $1,250,000.  In exchange for this
loan which was  obtained  in April 1998,  the  Company  issued to Rice its 12.5%
priority senior  subordinated  notes (the "Priority  Notes").  Interest payments
under the  Priority  Notes are  payable  with PIK notes until the Bank's debt is
repaid.  The  Priority  Notes are  junior to the  Bank's  debt but senior to the
subordinated  notes  previously  issued to Rice and  Fairview  (the "1997 Senior
Subordinated  Notes").  In order to induce Rice to purchase the Priority  Notes,
the Company also agreed to issue to Rice  immediately  exercisable  warrants for
the purchase (at a nominal exercise price) of 42,377,173 shares of the Company's
common  stock.  The  Company  also agreed to issue to Rice  similar  warrants to
purchase   8,475,638   shares  of  the  Company's  common  stock  as  additional
consideration  for Rice's  purchase of  $250,000 of Series B Preferred  Stock in
January, 1998.

On June 2, 1998, the Company and Southland entered into a Sixth Amendment to its
Credit  Agreement  with  the  Banks  (the  "Sixth  Amendment")  whereby  certain
modifications were made to the definition of "Eligible  Accounts" in Section 1.1
of the Credit  Agreement.  In addition,  the bank account  structure was clearly
defined.

Negotiations  were held with certain key vendors to hold in abeyance amounts due
while a repayment plan was implemented and bank negotiations  were completed.  A
plan has been  developed  and  implemented,  with the approval of the  creditors
involved,  to accomplish  the repayment of past due amounts while  providing for
the uninterrupted supply of materials for the business.

                                       10
<PAGE>


                                   Jotan, Inc.

Part II -- Other Information

           Item 5--Other Information

                    The  deadline  for  submission  of   shareholder   proposals
               pursuant to Rule 14a-8 under the Securities Exchange Act of 1934,
               as amended ("Rule  14a-8"),  for inclusion in the Company's proxy
               statement for its 1999 Annual Meeting of Shareholders is February
               22,  1999.  After  May  8,  1999,  notice  to  the  Company  of a
               shareholder  proposal  submited  otherwise  than pursuant to Rule
               14a-8  will be  considered  untimely;  and the  persons  named in
               proxies  solicited by the  Company's  Board of Directors  for its
               1999 Annual Meeting of  Shareholders  may exercise  discretionary
               voting  power with  respect to any such  proposal as to which the
               Company does not receive timely notice.

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

           (a) Exhibits

               Exhibit 10 - Material Contracts

                 Sixth Amendment to Credit Agreement dated as of June 2, 1998.

               Exhibit 11 - Computation of Per Share Earnings

               Exhibit 27 - Financial Data Schedule

          (b)  Reports on Form 8-K

               Form 8-K Current Report, Item 5, Other Events, filed May 4, 1998.

                                       11
<PAGE>

<TABLE>

                                   Jotan, Inc.

           Exhibit 11 Statement Re: Computation of Per Share Earnings


<CAPTION>

                          Three months ended June 30   Six months ended June 30
                               1998         1997          1998         1997
<S>                        <C>          <C>           <C>          <C>    
Basic and Diluted:
  Average shares 
   outstanding              18,995,951    5,696,611    12,383,020    5,687,964
                           ===========  ===========   ===========  ===========


Net income (loss)          $(1,772,445) $(1,011,714)  $(3,154,304) $(1,495,171)

Amount attributable to 
 preferred stock               300,217      220,625       672,194      320,834
                           -----------  -----------   -----------  -----------

Net income (loss) 
 attributable to common
 shareholders              $(2,072,662) $(1,232,339)  $(3,826,498) $(1,816,005)
                           ===========  ===========   ===========  ===========

Per share amount basic
 and diluted               $      (.11) $      (.22)  $      (.31) $      (.32)
                           ===========  ===========   ===========  ===========

</TABLE>




                                       12


<PAGE>


                                   Jotan, Inc.

SIGNATURES

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


                          Jotan, Inc.




                          By:   /s/ Raleigh Minor
                              ______________________________
                                Raleigh Minor, President
                                and Chief Executive Officer




                          By:  /s/ Edward Lipscomb
                              ________________________________
                                Edward Lipscomb, Vice President
                                and Chief Financial Officer





August 13, 1998

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