SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-QSB

     (Mark One)

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

     For Quarter Ended: June 30, 1999; or

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

     For the transition period _________ to __________

     Commission File Number: 000-26261

                          AMERICAN FIRE RETARDANT CORP.
             ------------------------------------------------------
             (Exact name of Registrant as specified in its charter)


            NEVADA                                            88-03826245
------------------------------                          -----------------------
State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                            Identification No.)

9337 Bond Avenue, El Cajon, California                          92021
----------------------------------------------------    ------------------------
(Address of principal executive offices)                      Zip Code)


                                 (619) 390-6888
              ----------------------------------------------------
              (Registrant's telephone number, including area code)


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

     On June 30, 1999 there were  2,343,788  shares of the  registrant's  Common
Stock, $0.01 par value, issued and outstanding.

     Transitional Small Business Disclosure Format: Yes [ ] No [X]

     This Form 10-QSB has 19 pages, the Exhibit Index is located at page 19.
<PAGE>
                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

     The financial statements included herein have been prepared by the Company,
without  audit  pursuant  to the rules and  regulations  of the  Securities  and
Exchange  Commission.  Certain  information  and  footnote  disclosure  normally
included in financial  statements prepared in accordance with generally accepted
accounting  principles have been condensed or omitted pursuant to such rules and
regulations,  although the Company believes that the disclosures are adequate to
make the information presented not misleading.

     In the opinion of the Company,  all adjustments,  consisting of only normal
recurring adjustments, necessary to present fairly the financial position of the
Company as of June 30, 1998 and the results of its operations and changes in its
financial  position  from  inception  through June 30, 1998 have been made.  The
results of operations for such interim period is not  necessarily  indicative of
the results to be expected for the entire year.

                          Index to Financial Statements
                          -----------------------------
                                                                           Page
                                                                           ---
Balance Sheets ........................................................... 3
Statements of Operations ................................................. 5
Statements of Stockholders' Equity (deficit) ............................. 6
Statements of Cash Flows ................................................. 7
Notes to Financial Statements for Period ................................. 9

     All other  schedules are not submitted  because they are not  applicable or
not required or because the information is included in the financial  statements
or notes thereto.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                     Page 2
<PAGE>
                          AMERICAN FIRE RETARDANT CORP.
                           Consolidated Balance Sheet

                                     ASSETS
<TABLE>
<CAPTION>

                                                         June 30,           December 31,
                                                           1999                 1998
                                                       --------------      --------------
                                                       (Unaudited)
<S>                                                    <C>                 <C>
CURRENT ASSETS

   Cash                                                $    19,249         $    62,057
   Inventory                                               123,251             140,495
   Accounts receivable, net                                401,261             472,302
                                                       ----------------------------------

     Total Current Assets                                  543,761             674,854
                                                       ----------------------------------

PROPERTY AND EQUIPMENT                                     189,306             196,603
                                                       ----------------------------------

OTHER ASSETS

   Deferred charges, net                                    53,200              72,500
   Deposits and other assets                                16,372              16,372
                                                       ----------------------------------

     Total Other Assets                                     69,572              88,872
                                                       ----------------------------------

     TOTAL ASSETS                                      $   802,639         $   960,329
                                                       ==================================
</TABLE>


                 The accompanying notes are an integral part of
                    these consolidated financial statements.

                                     Page 3
<PAGE>
                       AMERICAN FIRE RETARDANT CORPORATION
                                 AND SUBSIDIARY
                     Consolidated Balance Sheets (Continued)

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

<TABLE>
<CAPTION>
                                                         June 30,           December 31,
                                                           1999                 1998
                                                       --------------      --------------
                                                       (Unaudited)
<S>                                                    <C>                 <C>
CURRENT LIABILITIES

   Accounts payable                                    $    88,769         $    65,887
   Accrued expenses                                        229,624             221,621
   Unearned revenue                                         42,690              42,690
   Shareholder loans                                       201,663             215,700
   Notes payable, current portion                          254,026             225,697
   Line of credit                                          378,637             418,869
                                                       ---------------------------------

     Total Current Liabilities                           1,195,409           1,190,464
                                                       ---------------------------------

LONG-TERM LIABILITIES

   Notes payable                                            82,976              94,668
                                                       ---------------------------------

     Total Liabilities                                   1,278,385           1,285,132
                                                       ---------------------------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY (DEFICIT)

   Common stock, 0.001 par value;  25,000,000
    shares authorized, 2,343,788 and 2,278,661
    shares issued and outstanding, respectively              2,344               2,279
   Additional paid-in capital                              847,114             801,590
   Accumulated deficit                                  (1,325,204)         (1,128,672)
                                                       ---------------------------------

     Total Stockholders' Equity (Deficit)                 (475,746)           (324,803)
                                                       ---------------------------------

     TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY (DEFICIT)                                 $   802,639         $   960,329
                                                       =================================

</TABLE>

                 The accompanying notes are an integral part of
                    these consolidated financial statements.

                                     Page 4
<PAGE>
                       AMERICAN FIRE RETARDANT CORPORATION
                                 AND SUBSIDIARY
                      Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>


                                          For the Six Months          For the Three Months
                                            Ended June 30,                Ended June 30,
                                        -------------------------     --------------------------
                                        1999           1998           1999           1998
                                        --------------------------------------------------------
<S>                                     <C>            <C>            <C>            <C>
NET SALES                               $1,021,544     $  849,514     $  469,301     $  444,071

COST OF SALES                              321,814        274,969        156,735        162,356
                                        --------------------------------------------------------

GROSS MARGIN                               699,730        574,545        312,566        281,715
                                        --------------------------------------------------------

EXPENSES

Selling, general and administrative        704,936        820,691        344,326        418,357
Depreciation and amortization expense       36,016          6,496         18,008          3,248
                                        --------------------------------------------------------

     Total Expenses                        740,952        827,187        362,334        421,605
                                        --------------------------------------------------------

INCOME (LOSS) BEFORE OTHER
 EXPENSES                                  (41,222)      (252,642)       (49,768)      (139,890)
                                        --------------------------------------------------------

OTHER EXPENSES

  Interest expense                        (144,451)       (82,106)       (83,135)       (46,852)
  Bad debt expense                         (10,859)       (12,458)        (5,396)        (3,881)
                                        --------------------------------------------------------

     Total Other Expenses                 (155,310)       (94,564)       (88,531)       (50,733)
                                        --------------------------------------------------------

LOSS BEFORE INCOME TAXES                  (196,532)      (347,206)      (138,299)      (190,623)

PROVISION FOR INCOME TAXES                       -              -              -              -
                                        --------------------------------------------------------

NET LOSS                                $ (196,532)    $ (347,206)    $ (138,299)    $ (190,623)
                                        ========================================================

BASIC LOSS PER SHARE                    $    (0.17)    $    (0.33)    $    (0.24)    $    (0.36)
                                        ========================================================

FULLY DILUTED LOSS PER SHARE            $    (0.17)    $    (0.33)    $    (0.24)    $    (0.36)
                                        ========================================================

BASIC WEIGHTED AVERAGE SHARES            1,155,613      1,051,030        577,806        525,515
                                        ========================================================

FULLY DILUTED WEIGHTED
 AVERAGE SHARES                          1,155,613      1,051,030        577,806        525,515
                                        ========================================================

</TABLE>

                 The accompanying notes are an integral part of
                    these consolidated financial statements.

                                     Page 5
<PAGE>
                       AMERICAN FIRE RETARDANT CORPORATION
                                 AND SUBSIDIARY
            Consolidated Statements of Stockholders' Equity (Deficit)

<TABLE>
<CAPTION>

                                   Common Stock                  Additional     Stock
                                   ----------------------        Paid-In        Subscription   Accumulated
                                   Shares         Amount         Capital        Receivable     Deficit
                                   ------------------------------------------------------------------------
<S>                                <C>            <C>            <C>            <C>            <C>
Balance, December 31, 1997         2,018,333      $  2,018       $  730,369     $ (30,000)     $ (695,768)

Common stock issued for cash           4,785             5           18,495             -               -

Receipt of stock subscription              -             -                -        30,000               -

Common stock issued for
 services and interest               255,543           256           52,726             -               -

Net loss for the year ended
 December 31, 1998                         -             -                -             -        (432,904)
                                   ------------------------------------------------------------------------

Balance, December 31, 1998         2,278,661         2,279          801,590             -      (1,128,672)

Common stock issued for
 debt conversion (unaudited)          49,159            49           34,362             -               -

Common stock issued for
 interest (unaudited)                 15,968            16           11,162             -               -

Net loss for the six months
 ended June 30, 1999
 (unaudited)                               -             -                -             -        (196,532)
                                   ------------------------------------------------------------------------

Balance, June 30, 1999
 (unaudited)                       2,343,788      $  2,344       $  847,114    $        -      $(1,325,204)
                                   ========================================================================

</TABLE>

                 The accompanying notes are an integral part of
                    these consolidated financial statements.

                                     Page 6
<PAGE>

                                        AMERICAN FIRE RETARDANT CORPORATION
                                                  AND SUBSIDIARY
                                       Consolidated Statements of Cash Flows
                                                    (Unaudited)

<TABLE>
<CAPTION>
                                                    For the Six Months          For the Three Months
                                                       Ended June 30,                Ended June 30,
                                                  -------------------------     --------------------------
                                                  1999           1998           1999           1998
                                                  --------------------------------------------------------
<S>                                               <C>            <C>            <C>            <C>
CASH FLOWS FROM OPERATING
 ACTIVITIES

  Net loss                                        $ (196,532)    $ (347,206)    $ (138,299)    $ (190,623)
  Adjustments to reconcile net loss to net cash
   provided  (used) by operating activities:
    Common stock issued for interest expense          11,178         30,961         11,178         30,961
    Depreciation and amortization                     36,016          6,496         18,008          3,248
    Bad debt expense                                  10,859         12,548          5,396          3,971
   Change in Assets and Liabilities:
    (Increase) decrease in accounts receivable        60,181          2,370         48,349         63,311
    (Increase) decrease in deposits                        -         (6,683)             -              -
    (Increase) decrease in inventory                  17,244        (14,500)           998           (539)
    (Increase) decrease in prepaid expenses
      and deferred charges                                 -          5,225              -          5,225
    Increase (decrease) in accounts payable           22,882            303         28,080        (13,278)
    Increase (decrease) in accrued expenses            8,005         72,590        (20,623)        23,444
    Increase (decrease) in unearned revenue                -              -        (27,205)        (4,400)
                                                  --------------------------------------------------------

      Net Cash Provided (Used) by
      Operating Activities                           (30,167)      (237,896)       (74,118)       (78,680)
                                                  --------------------------------------------------------

CASH FLOWS FROM INVESTING
 ACTIVITIES

  Purchase of fixed assets                            (9,420)       (12,290)        (2,360)             -
                                                  --------------------------------------------------------

       Net Cash (Used) by Investing Activities        (9,420)       (12,290)        (2,360)             -
                                                  ---------------------------------------------------------

CASH FLOWS FROM FINANCING
 ACTIVITIES

  Proceeds from sale of common stock                       -         48,500              -          7,000
  Proceeds from notes payable                        105,000         75,500        105,000         50,100
  Proceeds from lines of credit                      763,869        457,865        404,401        274,501
  Payment on notes payable and line of credit       (872,090)      (308,650)      (442,406)      (264,849)
                                                  --------------------------------------------------------
      Net Cash Provided (Used) by
      Financing Activities                        $   (3,221)    $  273,215     $   66,995     $   66,752
                                                  --------------------------------------------------------
</TABLE>



                 The accompanying notes are an integral part of
                    these consolidated financial statements.

                                     Page 7
<PAGE>
                       AMERICAN FIRE RETARDANT CORPORATION
                                 AND SUBSIDIARY
                Consolidated Statements of Cash Flows (Continued)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                    For the Six Months          For the Three Months
                                                       Ended June 30,                Ended June 30,
                                                  -------------------------     --------------------------
                                                  1999           1998           1999           1998
                                                  --------------------------------------------------------
<S>                                               <C>            <C>            <C>            <C>
NET INCREASE (DECREASE) IN CASH                   $  (42,808)    $   23,029     $   (9,483)    $  (11,928)

CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                                 62,057         83,911         28,732        118,868
                                                  --------------------------------------------------------

CASH AND CASH EQUIVALENTS AT
  END OF PERIOD                                   $   19,249     $  106,940     $   19,249     $  106,940
                                                  ========================================================

SUPPLEMENTAL CASH FLOW
 INFORMATION

CASH PAID FOR

  Interest                                        $  115,693     $   51,145     $   59,256     $   15,891
  Income taxes                                    $        -     $        -     $        -     $        -

NON-CASH FINANCING ACTIVITIES

  Common stock issued for debt                    $   34,411     $        -     $   34,411     $        -
  Common stock issued for interest                $   11,178     $   30,961     $   11,178     $   30,961

</TABLE>



                 The accompanying notes are an integral part of
                    these consolidated financial statements.

                                     Page 8
<PAGE>
                       AMERICAN FIRE RETARDANT CORPORATION
                                 AND SUBSIDIARY
                 Notes to the Consolidated Financial Statements
                       June 30, 1999 and December 31, 1998


NOTE 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The  accompanying  consolidated  financial  statements have been prepared by the
Company  without audit.  In the opinion of management,  all  adjustments  (which
include  only normal  recurring  adjustments)  necessary  to present  fairly the
financial  position,  results of operations  and cash flows at June 30, 1999 and
1998 and for all periods presented have been made.

Certain information and footnote  disclosures  normally included in consolidated
financial  statements  prepared in accordance with generally accepted accounting
principles have been condensed or omitted.  It is suggested that these condensed
consolidated  financial  statements  be read in  conjunction  with the financial
statements and notes thereto included in the Company's December 31, 1998 audited
consolidated  financial  statements.  The results of operations  for the periods
ended June 30, 1999 and 1998 are not  necessarily  indicative  of the  operating
results for the full years.

                                     Page 9
<PAGE>

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations.

     The following  discussion and analysis  should be read in conjunction  with
the financial statements and notes thereto appearing elsewhere herein.

THREE MONTHS ENDED JUNE 30, 1999 COMPARED WITH THREE MONTHS ENDED JUNE 30, 1998.

     NET SALES  increased  $25,230  or 5.68% over the  comparable  period a year
earlier.  For such  three  month  periods  the  increase  was from  $444,071  to
$469,301. The increase in net sales is due to additional contracts signed in the
course of doing normal business.

     GROSS  PROFIT  increased  10.95% in the three months ended June 30, 1999 to
$312,566 from $281,715.  Gross profit as a percentage of sales was 66.6% for the
second quarter of fiscal 1999 compared to 63.4% for the second quarter of fiscal
1998. The increase in percentage  gross profit is mainly due to increased  sales
in chemicals which the company has a higher percent of profit. Also, the Company
now controls the  manufacturing of its main chemical,  FIREXTRA 238 at a savings
of $12 per gallon.  In addition,  the Company is now pricing its  products  more
competitively.

     OPERATING  EXPENSES  decreased  to $362,334 for the three months ended June
30, 1999 from $421,605 for the three months ended June 30, 1998. The decrease in
operating  expenses is primarily due to a decrease in payroll  expenses from the
second  quarter of 1998 to the second  quarter of 1999.  In 1998 the Company was
involved  in a very  large  job at Beau  Rivage  in  Biloxi,  Mississippi  which
resulted in a much larger  payroll.  The payroll for the entire  Company for the
three months ended June 30, 1999 was $107,064  compared to $242,412 for the same
period in 1998. The decrease in payroll  expenses in the second quarter 1999 was
significantly  offset by a substantial  increase in legal and accounting fees in
preparation for the Company going public.  The legal and accounting fees for the
second  quarter 1999 were  $44,688 as compared to $1,112 for the second  quarter
1998.  There was also an increase in travel  expenses  associated  with  various
meetings  with the  attorneys and  accountants  in the same matter.  Travel also
included trips for maintaining due diligence in future  acquisitions in addition
to normal  business  trips to  Louisiana  and  Florida,  setting up the  Florida
satellite office and sending crews to Florida and Louisiana for particular jobs.
The travel for the second  quarter  1999 was  $50,486 as compared to $26,371 for
the same period in 1998.

     As a  result  of the  foregoing  factors,  the  Company  had a NET  LOSS of
$138,299  for the three  months  ended June 30,1999 as compared to a NET LOSS of
$190,623 for the three months ended June 30, 1998, a decrease of 27.45%.

SIX MONTHS ENDED JUNE 30, 1999 COMPARED WITH SIX MONTHS ENDED JUNE 30, 1998.

     NET SALES  increased  $172,030  or 20.25%  for the six  months  ended  June
30,1999 to $1,021,544  from $849,514 for the six months ended June 30, 1998. The
increase  in net sales is  attributable  to a  significant  increase  in overall
business.  The sale of chemicals  increased 46.92% for the six months ended June
30, 1999 from  $130,048  for the six months  ended June 30, 1998 to $191,065 for
the six months ended June 30, 1999. The firefilm jobs increased from $97,436 for
the six months ended June 30,1998 to $258,349 for the same period in 1999.  That
is a 165.15%  increase from 1998 to 1999. Our fabric  treatment  sales increased
136.54% in the  six-month  period  for 1999 as  compared  to the same  six-month
period  in 1998.  It was  $87,598  for the  six-months  ended  June 30,  1998 as
compared to $207,200  for the six months ended June 30,  1999.  However,  all of
these increases were significantly offset by a decrease in firestop sales due to
the  completion of the Beau Rivage job prior to 1999. The firestop sales for the
six months ended June 30, 1999 were $283,698 as compared to $453,471 for the six
months ended June 30, 1998. That is a 59.84% decrease in those six-month periods
from 1998 to 1999. As a result of the foregoing  factors,  the NET SALES for the
company increased $172,030 for the six months ended June 30, 1999 as compared to
the six months  ended June 30, 1999 as compared to the six months ended June 30,
1998.

     GROSS  PROFIT  increased  21.79% in the six months  ended June 30,  1999 to
$669,730 from $574,545.  Gross profit as a percentage of sales was 68.5% for the
first half of 1999 as compared to 67.6% for the first half of fiscal 1998.  This
increase is  primarily  due to the  increase in net sales,  as the cost of sales
remained  consistent as a percentage for the two periods.  Also, the Company now
controls the  manufacturing  of its main chemical,  FIREXTRA 238 at a savings of
$12 per gallon.  In  addition,  the Company is now  pricing  its  products  more
competitively.

     OPERATING  EXPENSES decreased to $740,952 for the six months ended June 30,
1999 from  $827,187 for the six months ended June 30,  1998.  This  decrease was
primarily due to the decrease in payroll  expenses from 1998 to 1999,  which was
caused by the completion of the Beau Rivage job later in 1998.

                                    Page 10
<PAGE>
The payroll expenses  decreased  $221,821 from the first half of the fiscal year
1998 to the first half of fiscal year 1999. They were $226,738 in the six months
ended June 30, 1999 as compared  to $448,559  for the six months  ended June 30,
1998.  This  decrease  was  significantly  offset  by  an  increase  in  various
categories, including:

                                                %
          EXPENSE                            INCREASE
          -------------------------------------------
          Accounting and Legal               636.1%
          Advertising                        255.8%
          Travel                              58.4%
          Interest                            56.6%

     The  accounting  and legal  expenses  are  directly  related to the Company
preparing to go public. The interest increase is due to the use of factoring and
additional interest on loans received by the Company to assist in cash flow. The
travel  increase is because of the number of  meetings  with the  attorneys  and
accountants in preparation for the Company going public in addition to the other
reasons  stated  above.  The  advertising  has  increased in an effort to better
publicize the Company to a larger market.

     As a  result  of the  foregoing  factors,  the  Company  had a NET  LOSS of
$196,532  for the six months  ended June 30,  1999 as  compared to a NET LOSS of
$347,206 for the six months ended June 30, 1998.

LIQUIDITY AND CAPITAL RESOURCES

     The  Company's  primary  needs  for funds are to  provide  working  capital
associated  with  forecasted  growth in sales  volume.  Specifically,  funds are
required to provide  materials and manpower  required for larger contracts which
the Company has been signing beginning in July of 1999.  Working capital for the
six months ended June 30, 1999 was funded primarily through the sale of accounts
receivable and proceeds from private lenders.

     Net cash provided by operating  activities was ($30,167) for the six months
ended June 30, 1999 as compared to ($237,896)  for the six months ended June 30,
1998. This substantial  change is due in large part to the significant  decrease
in the NET  LOSS of  $150,674.  A  significant  part of the  loss in the  second
quarter of fiscal 1998 was because an employee purposefully set out to undermine
the Company for his own reasons and then left for a competitor.

     Net cash provided by financing activities for the six months ended June 30,
1999 was  ($3,221)  compared  to $273,215  during the six months  ended June 30,
1998.  The first half of fiscal 1999 included  $105,000  proceeds from the notes
payable and $763,869  from lines of credit.  The  repayment of the notes payable
and lines of credit  offset  these  amounts.  For the first half of fiscal 1998,
$48,500 was provided from issuance of capital stock.  No such issuance  occurred
in the first half of fiscal 1999.

     The Company  holds a patent on a new  product  that is just coming into the
marketplace,  and proprietary rights on several of its fire-retardant chemicals.
The  Company  will  engage in a research  and  development  program,  and is now
searching for a chemist to head the program.

CAUTIONARY FORWARD -LOOKING STATEMENT
-------------------------------------

     Statements  included  in  this  Management's  Discussion  and  Analysis  of
Financial  Condition  and Results of  Operations,  and in future  filings by the
Company with the  Securities  and Exchange  Commission,  in the Company's  press
releases  and in  oral  statements  made  with  the  approval  of an  authorized
executive officer which are not historical or current facts are "forward-looking
statements"  made  pursuant  to  the  safe  harbor  provisions  of  the  Private
Securities  Litigation  Reform Act of 1995 and are subject to certain  risks and
uncertainties  that  could  cause  actual  results  to  differ  materially  from
historical  earnings and those presently  anticipated or projected.  The Company
wishes  to  caution   readers   not  to  place   undue   reliance  on  any  such
forward-looking statements,  which speak only as of the date made. The following
important  factors,  among others, in some cases have affected and in the future
could affect the Company's  actual results and could cause the Company's  actual
financial   performance  to  differ   materially  from  that  expressed  in  any
forward-looking   statement:  (i)  the  extremely  competitive  conditions  that
currently exist in the three dimensional  software  development  marketplace are
expected to continue,  placing further pressure on pricing which could adversely
impact  sales  and  erode  profit  margins;  (ii)  many of the  Company's  major
competitors in its channels of distribution have significantly greater financial
resources  than the Company;  and (iii) the inability to carry out marketing and
sales plans would have a materially adverse impact on the Company's projections.
The  foregoing  list  should not be  construed  as  exhaustive  and the  Company
disclaims any obligation  subsequently to revise any forward-looking  statements
to  reflect  events or  circumstances  after the date of such  statements  or to
reflect the occurrence of anticipated or unanticipated events.

                                    Page 11
<PAGE>
YEAR 2000 ISSUES
----------------

     Year 2000 Issues - Uncertainty  Of The Effects Of The Year 2000 On Computer
Programs And Systems.  The "year 2000" issue  concerns  the  potential  exposure
related  to  the  possible  automatic   generation  of  business  and  financial
misinformation  resulting from the  application of computer  programs which have
been written using two digits,  rather than four, to define the applicable  year
of  business  transactions.  When the  year  2000  begins,  programs  with  such
date-related  logic will not be able to  distinguish  between the years 1900 and
2000,  potentially causing software and hardware to fail,  generating  erroneous
calculations  or presenting  information in an unusable  format.  The Company is
dependent on multiple  computer  servers and the third-party  computer  programs
running on them to provide data in support of its accounting and  administrative
functions.  The Company's plan for year 2000  compliance  includes the following
phases:  (i)  conducting a  comprehensive  inventory of the  Company's  internal
systems, including information technology systems and non-information technology
systems  and the systems  acquired  or to be acquired by the Company  from third
parties,  (ii) assessing and prioritizing  any required  changes,  upgrades,  or
enhancements,  (iii)  resolving  any problems by repairing  or, if  appropriate,
replacing the  non-compliant  systems,  (iv) testing all remediated  systems for
Year 2000 compliance and (v) developing  contingency  plans that may be employed
in the event that any system used by the Company is  unexpectedly  affected by a
previously  unanticipated  problem  relating to the Year 2000. In recognition of
the potential year 2000 problem,  the Company has begun a program to replace any
of its existing communications,  engineering and accounting software that is not
year 2000  compliant with new software that is warranted by its vendors as being
year 2000 compliant.  It is anticipated  that the costs of such replacement will
not be material.  The Company has  relationships  with various  third parties on
whom it relies to provide goods and services  necessary for the  manufacture and
distribution of its products.  These include  suppliers and vendors.  As part of
its  determination of year 2000 readiness,  the Company has identified  material
relationships  with third party  vendors and is in the process of assessing  the
status of their compliance  through the use of informal  inquiries and review of
hardware  and  software  documentation.  The  components  to be purchased by the
Company  in  connection  with the  manufacture  of its  products  are  generally
available through numerous independent sources. Due to the broad diversification
of these sources, the risk associated with potential business interruptions as a
result of year 2000  non-compliance  by one or more  sources  is not  considered
significant.  It is  anticipated  that the  steps the  Company  has taken and is
continuing  to take to deal with the year 2000  problem  will reduce the risk of
significant business interruptions,  but there is no assurance that this outcome
will be  achieved.  Failure to detect and  correct  all  internal  instances  of
non-compliance  or the inability of third parties to achieve  timely  compliance
could result in the  interruption  of normal  business  operations  which could,
depending on its duration, have a material adverse effect on the Company.

RISK FACTORS
------------

     FUTURE CAPITAL REQUIREMENTS; UNCERTAININTY OF FUTURE FUNDING. The Company's
plan of operation calls for additional  capital to facilitate growth and support
its long-term  development and marketing programs. It is likely that the Company
would need to seek  additional  financing  through  subsequent  future public or
private sales of its securities,  including equity  securities.  The Company may
also seek funding for the  development  and  marketing  of its products  through
strategic  partnerships and other arrangements with investment  partners.  There
can be no assurance, however, that such collaborative arrangements or additional
funds will be available when needed,  or on terms acceptable to the Company,  if
at all. Any such  additional  financing  may result in  significant  dilution to
existing stockholders.  If adequate funds are not available,  the Company may be
required to curtail one or more of its future programs.

     PATENTS AND PROPRIETARY RIGHTS. The Company relies on patents,  contractual
rights, trade secrets,  trademarks,  and copyrights to establish and protect its
proprietary rights in its products and its components.  The Company has patented
the technology that is incorporated  into its products and believes that,  since
it  is a  technology  patent,  competitors  will  have  a  more  difficult  time
developing products  functionally  similar to the Company's.  To further protect
its products,  the Company will apply for additional  patents for its inventions
and for  non-commercial  available  components  designed  and  developed  by the
Company that are integral to product performance. The Company intends to closely
monitor  competing  product  introductions for any infringement of the Company's
proprietary  rights.  The Company believes that, as the demand for products such
as those  developed  by the  Company  increases,  infringement  of  intellectual
property rights may also increase.  If infringement of the Company's proprietary
rights is by industry  competitors,  they have substantially  greater financial,
technical, and legal resources than the Company which could adversely affect the
Company's  ability to defend its rights.  In addition,  the Company  could incur
substantial costs in defending its rights.

                                    Page 12
<PAGE>
     DEPENDENCE  ON KEY  EMPLOYEES.  Historically,  the Company has been heavily
dependent on the ability of Bruce E. Raidl,  to contribute  essential  technical
and  management  experience.  In the event of future  growth in  administration,
marketing, manufacturing and customer support functions, the Company may have to
increase the depth and experience of its management  team by adding new members.
The   Company's   success  will  depend  to  a  large  degree  upon  the  active
participation of its key officers and employees.  Loss of services of any of the
current  officers and directors  could have a significant  adverse effect on the
operations and prospects of the Company.  There can be no assurance that it will
be able to employ qualified persons on acceptable terms to replace officers that
become unavailable.

     NEED FOR ADDITIONAL SPECIALIZED  PERSONNEL.  Although the management of the
Company is committed to the business and continued development and growth of the
business,  the  additional  of  specialized  key  personnel and sales persons to
assist  the  Company  in  its  expansion  of its  national  operations  will  be
necessary. There can be no assurance that the Company will be able to locate and
hire such specialized personnel on acceptable terms.

     COMPETITION.  There are numerous corporations,  firms and individuals which
are engaged in the type of business activities in which the Company is presently
engaged.  Many of those entities are more experienced and possess  substantially
greater financial, technical and personnel resources than the Company. While the
Company hopes to be competitive  with other similar  companies,  there can be no
assurance that such will be the case.

     VOTING  CONTROL.  Due to the joint ownership of a majority of the shares of
the Company's  outstanding common stock by Angela M. Raidl and her brother Bruce
Raidl,  collectively,  these  individuals  have the  ability to elect all of the
Company's directors, who in turn elect all executive officers, without regard to
the votes of other stockholders.

     ABILITY  TO  MAINTAIN  ADEQUATE  INVENTORY  LEVELS.  The  size of the  fire
retardant and fire protection markets and need to maintain adequate  inventories
with  regard  to  such  products  could  force  the  Company  into  implementing
additional  manufacturing  and warehousing  programs.  There can be no assurance
that the  Company  will  have the  necessary  capital  resource  or man power to
implement such manufacturing and warehousing programs.

     DEPENDENCE ON ABILITY TO MARKET PRODUCTS AND SERVICES. Due to the Company's
limited  resources,  the sales and marketing of the Company's  products has been
limited to date.  The  success of the Company is  dependent  upon its ability to
market and sell the  products  and  services  of the Company  with such  limited
resources.

     RISKS OF "PENNY  STOCKS."  The  Company's  common stock may be deemed to be
"penny  stock"  as  that  term is  defined  in Reg.  Section  240.3a51-1  of the
Securities and Exchange Commission.  Penny stocks are stocks (i) with a price of
less than five  dollars  per share;  (ii) that are not traded on a  "recognized"
national  exchange;  (iii) whose  prices are not quoted on the NASDAQ  automated
quotation system  (NASDAQ-listed  stocks must still meet requirement (i) above);
or (iv) of an issuer with net  tangible  assets less than  US$2,000,000  (if the
issuer  has  been  in  continuous   operation  for  at  least  three  years)  or
US$5,000,000  (if in continuous  operation  for less than three years),  or with
average annual revenues of less than US$6,000,000 for the last three years.

     Section 15(g) of the 1934 Act and Reg. Section  240.15g-2 of the Commission
require  broker-dealers  dealing in penny stocks to provide potential  investors
with a document  disclosing  the risks of penny  stocks and to obtain a manually
signed  and  dated  written  receipt  of  the  document  before   effecting  any
transaction in a penny stock for the investor's account.  Potential investors in
the  Company's  common  stock  are  urged to  obtain  and read  such  disclosure
carefully before purchasing any shares that are deemed to be "penny stock."

     Moreover,  Reg. Section 240.15g-9 of the Commission requires broker-dealers
in penny stocks to approve the account of any investor for  transactions in such
stocks before selling any penny stock to that investor.  This procedure requires
the broker-dealer to (i) obtain from the investor information  concerning his or
her financial situation,  investment experience and investment objectives;  (ii)
reasonably  determine,  based on that  information,  that  transactions in penny
stocks are  suitable  for the  investor  and that the  investor  has  sufficient
knowledge and experience as to be reasonably  capable of evaluating the risks of
penny stock  transactions;  (iii) provide the investor with a written  statement
setting forth the basis on which the  broker-dealer  made the  determination  in
(ii) above;  and (iv) receive a signed and dated copy of such statement from the
investor,  confirming  that it  accurately  reflects  the  investor's  financial
situation,  investment  experience and investment  objectives.  Compliance  with
these  requirements  may make it more  difficult  for investors in the Company's
common stock to resell their shares to third parties or to otherwise  dispose of
them.

                                    Page 13
<PAGE>
     NO MARKET FOR COMMON  STOCK.  Although  the  Company  intends to submit for
quotation of its common stock on the OTC  Bulletin  Board of the NASD  following
the effectiveness of this registration statement, and to seek a broker-dealer to
act as market  maker for its  securities  (without  the use of any  consultant),
there is  currently no market for such  shares,  there have been no  discussions
with any  broker-dealer or any other person in this regard,  and no market maker
has been  identified;  there can be no  assurance  that such a market  will ever
develop or be  maintained.  Any market  price for shares of common  stock of the
Company is likely to be very volatile,  and numerous  factors beyond the control
of the Company may have a  significant  effect.  In addition,  the stock markets
generally have experienced, and continue to experience, extreme price and volume
fluctuations  which  have  affected  the  market  price  of many  small  capital
companies and which have often been  unrelated to the operating  performance  of
these companies.  These broad market  fluctuations,  as well as general economic
and political conditions, may adversely affect the market price of the Company's
common stock in any market that may develop.

                           PART II - OTHER INFORMATION.

Item 1.  Legal Proceedings.

    Alman v. AFRC Florida
     ---------------------

     The Company was  involved in  litigation  in the  calendar  year 1997.  The
Company's  former  subsidiary,  AFRC Florida was a party defendant in the matter
Allen E. Alman and Phyllis S. Alman v. American Fire  Retardant  Corporation  of
Florida and Stephen F. Owens,  Dade County Florida,  Case No. 97-7203 CA 09. The
matter was a dispute over the terms of a Stock Purchase  Agreement  entered into
in  September  1993 with regard to the purchase by AFRC Florida of all the stock
and assets of Apco Equipment Sale  Corporation  dba  Thoro-Sheen  Company.  This
matter was  resolved in July 1997  wherein  AFRC Florida and Mr. Owens agreed to
pay to Mr. And Mrs.  Almans the total sum of $51,550,  payable  $5,775.00  on or
before July 15, 1997,  $5,775.00 on or before August 30, 1997 and the balance of
$40,000 in  installments  of  $1,800.00  per month for 24 months  commencing  on
September  30,  1997,  until  paid in  full.  To date the  Company  has made all
payments in a timely manner pursuant to the terms of the Joint Stipulation.

     Halvelin v. AFRC
     ----------------

     The Company is a party  defendant in the matter of Havelin v. American Fire
Retardant  Corporation,  United  States  District  Court,  Southern  District of
Mississippi,  Case No. 1-99CV156GR. The Plaintiff,  Jennifer L. Havelin is suing
the Company  alleging  that the  Company  discriminated  against  the  Plaintiff
because of Plaintiff's  sex, a female.  The Plaintiff  originally  filed a claim
with Equal Employment  Opportunity  Commission ("EEOC") in May 15, 1998 alleging
discrimination and that Plaintiff had been laid off because she was a female. On
January 29, 1999 the EEOC  dismissed  Plaintiffs  claim as being without  merit.
This action  arises from the same facts set forth by Plaintiff in her claim with
the EEOC and the Company believes that the Company will prevail on the merits of
this  action.  Further,  pursuant to Title VII the  Plaintiff  had 90 days (i.e.
until May 1,  1999) to file a  lawsuit  in  Federal  Court  with  regard to this
matter. The Plaintiff filed her action beyond the prescribed time period.

     Delinquent Payroll Taxes
     ------------------------

     The Company owes the Internal Revenue Service $219,582 for prior delinquent
payroll  taxes by the  Company's  former  subsidiaries,  AFRC  Florida  and AFRC
Louisiana.  These payroll taxes became delinquent starting in the 3rd quarter of
1997  through  the 4th  quarter  of  1998.  The  total  delinquent  payroll  tax
liabilities are $101,403  attributed to AFRC Florida and $118,178  attributed to
AFRC Louisiana.  The Company has retained the tax counsel of Royston & Hebert in
Lafayette,  Louisiana  to  represent  the Company  before the  Internal  Revenue
Service and the Company is currently submitting an Offer and Compromise work-out
agreement  to obtain a  substantial  reduction  of the  outstanding  payroll tax
balance due.  The Company has since kept  current  with all present  payroll and
other tax obligations.

     With the exception of the legal proceedings and tax matter set forth above,
the Company is not presently a party to any  litigation,  claim,  or assessment.
Further,  the Company is unaware of any unasserted  claim or  assessment,  which
will have a material  effect on the financial  position or future  operations of
the Company.

Item 2.  Changes in Securities.

         Not required.

Item 3.  Defaults Upon Senior Securities.

         Not required.

                                    Page 14
<PAGE>
Item 4.  Submission of Matters to a Vote of Security Holders.

     On June 1,  1999,  a  majority  of the  shareholders  pursuant  to  Section
78.320(2)  of the  Nevada  Revised  Statutes  voting in favor of  Restating  the
Company's By-laws. A copy of said By-laws are incorporated  herein by reference.
See Exhibit list.

Item 5.  Other Information.

     On June 4, 1999, the Company filed a  Registration  Statement on Form 10-SB
in order to register the  Company's  common stock,  $0.01 par value  pursuant to
Section 12(g) of the Securities Exchange Act of 1934. The Registration Statement
on  Form  10-SB  as  filed  with  the  Securities  and  Exchange  Commission  is
incorporated herein by reference.

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

     (a) List of Exhibits  attached or  incorporated  by referenced  pursuant to
Item 601 of Regulation S-B.

               (2)  2.1(a)  Certificate  of  Merger  from the  State of  Wyoming
                    regarding  Merger AFRC  Louisiana with and into AFRC Wyoming
                    (Incorporated  by reference from the Company's  Registration
                    Statement on Form 10-SB filed June 4, 1999;  Commission File
                    No. 000-26261).

                    2.1(b)  Certificate  of Merger  from the State of  Louisiana
                    regarding  Merger  of AFRC  Louisiana  with  and  into  AFRC
                    Wyoming.  (Incorporated  by  reference  from  the  Company's
                    Registration  Statement  on Form  10-SB  filed June 4, 1999;
                    Commission File No. 000-26261).

                    2.1(c) Articles of Merger regarding Merger of AFRC Louisiana
                    with and into AFRC Wyoming.  (Incorporated by reference from
                    the  Company's  Registration  Statement  on Form 10-SB filed
                    June 4, 1999; Commission File No. 000-26261).

                    2.1(d)  Acquisition  Agreement and Plan of Merger  regarding
                    Merger  of  AFRC  Louisiana  with  and  into  AFRC  Wyoming.
                    (Incorporated  by reference from the Company's  Registration
                    Statement on Form 10-SB filed June 4, 1999;  Commission File
                    No. 000-26261).

                    2.2(a)  Certificate  of  Merger  from the  State of  Florida
                    regarding   Merger  of  AFRC  Florida  with  and  into  AFRC
                    Wyoming.(Incorporated   by  reference   from  the  Company's
                    Registration  Statement  on Form  10-SB  filed June 4, 1999;
                    Commission File No. 000-26261).

                    2.2(b)  Certificate  of  Merger  from the  State of  Wyoming
                    regarding  Merger  of AFRC  Louisiana  with  and  into  AFRC
                    Wyoming.  (Incorporated  by  reference  from  the  Company's
                    Registration  Statement  on Form  10-SB  filed June 4, 1999;
                    Commission File No. 000-26261).

                    2.2(c) Florida  Articles of Merger  regarding Merger of AFRC
                    Louisiana  with  and  into  AFRC   Wyoming.(Incorporated  by
                    reference from the Company's  Registration Statement on Form
                    10-SB filed June 4, 1999; Commission File No. 000-26261).

                    2.2(d) Wyoming  Articles of Merger  regarding Merger of AFRC
                    Louisiana  with  and  into  AFRC   Wyoming.(Incorporated  by
                    reference from the Company's  Registration Statement on Form
                    10-SB filed June 4, 1999; Commission File No. 000-26261).

                    2.2(e)  Acquisition  Agreement and Plan of Merger  regarding
                    Merger  of  AFRC  Florida   with  and  into  AFRC   Wyoming.
                    (Incorporated  by reference from the Company's  Registration
                    Statement on Form 10-SB filed June 4, 1999;  Commission File
                    No. 000-26261).

                    2.3(a) Articles of Merger  regarding Merger regarding Merger
                    of AFRC Wyoming with and into AFRC Nevada (the "Company") to
                    change  the  Domicile  of  the  Company.   (Incorporated  by
                    reference from the Company's  Registration Statement on Form
                    10-SB filed June 4, 1999; Commission File No. 000-26261).

                    2.3(b)  Acquisition  Agreement and Plan of Merger  regarding
                    Merger  of AFRC  Wyoming  with and  into  AFRC  Nevada  (the
                    "Company")   to  change  the   Domicile   of  the   Company.
                    (Incorporated  by reference from the Company's  Registration
                    Statement on Form 10-SB filed June 4, 1999;  Commission File
                    No. 000-26261).

                                    Page 15
<PAGE>
               (3)  3.1 Articles of  Incorporation  of American  Fire  Retardant
                    Corp. filed on January 20, 1998.  (Incorporated by reference
                    from the  Company's  Registration  Statement  on Form  10-SB
                    filed June 4, 1999; Commission File No. 000-26261).

                    3.2  Restated  By-laws  of  American  Fire  Retardant  Corp.
                    (Incorporated  by reference from the Company's  Registration
                    Statement on Form 10-SB filed June 4, 1999;  Commission File
                    No. 000-26261).

                    3.3  Qualification  of American Fire Retardant  Corp.,  as a
                    Foreign  Corporation in the State of Florida.  (Incorporated
                    by reference  from the Company's  Registration  Statement on
                    Form  10-SB  filed  June  4,  1999;   Commission   File  No.
                    000-26261).

                    3.4  Qualification  of American Fire Retardant  Corp.,  as a
                    Foreign Corporation in the State of Louisiana. (Incorporated
                    by reference  from the Company's  Registration  Statement on
                    Form  10-SB  filed  June  4,  1999;   Commission   File  No.
                    000-26261).

                    3.5 Statement  and  Designation  of American Fire  Retardant
                    Corp., as a Foreign Corporation in California. (Incorporated
                    by reference  from the Company's  Registration  Statement on
                    Form  10-SB  filed  June  4,  1999;   Commission   File  No.
                    000-26261).

                    3.6  Qualification  of American Fire Retardant  Corp.,  as a
                    Foreign Corporation in the State of Colorado.  (Incorporated
                    by reference  from the Company's  Registration  Statement on
                    Form  10-SB  filed  June  4,  1999;   Commission   File  No.
                    000-26261).

                    3.7  Qualification  of American Fire Retardant  Corp.,  as a
                    Foreign   Corporation   in   the   State   of   Mississippi.
                    (Incorporated  by reference from the Company's  Registration
                    Statement on Form 10-SB filed June 4, 1999;  Commission File
                    No. 000-26261).

               (10) 10.1(a)  Letter of Intent  Between  American Fire  Retardant
                    Corp.,  and  Fabritek  Industries,   LLC.  (Incorporated  by
                    reference from the Company's  Registration Statement on Form
                    10-SB filed June 4, 1999; Commission File No. 000-26261).

                    10.1(b)  Amendment to Letter of Intent Between American Fire
                    Retardant Corp., and Fabritek Industries, LLC. (Incorporated
                    by reference  from the Company's  Registration  Statement on
                    Form  10-SB  filed  June  4,  1999;   Commission   File  No.
                    000-26261).

                    10.2  Royalty  Agreement  between  American  Fire  Retardant
                    Corp., and Norman O. Houser. (Incorporated by reference from
                    the  Company's  Registration  Statement  on Form 10-SB filed
                    June 4, 1999; Commission File No. 000-26261).

                    10.3  Sale,  Assignment  and  Assumption  Agreement  between
                    American Fire  Retardant  Corp. and Patrick L. Brinkman with
                    regard to the  purchase of  manufacturing  rights to De-Fyre
                    X-238.(Incorporated   by   reference   from  the   Company's
                    Registration  Statement  on Form  10-SB  filed June 4, 1999;
                    Commission File No. 000-26261).

                    10.4(a)  Merchant  Service  Agreement  between American Fire
                    Retardant  Corp.  and  St.  Martin  Bank.  (Incorporated  by
                    reference from the Company's  Registration Statement on Form
                    10-SB filed June 4, 1999; Commission File No. 000-26261).

                    10.4(b) St. Martin Bank $100,090 Promissory Note Dated March
                    11,  1997.(Incorporated  by  reference  from  the  Company's
                    Registration  Statement  on Form  10-SB  filed June 4, 1999;
                    Commission File No. 000-26261).

                                    Page 16
<PAGE>
                    10.4(c) Edward E. Friloux Commercial  Guaranty to St. Martin
                    Bank re:$100,090 Promissory Note. (Incorporated by reference
                    from the  Company's  Registration  Statement  on Form  10-SB
                    filed June 4, 1999; Commission File No. 000-26261).

                    10.4(d) Stephen F. Owens  Commercial  Guaranty to St. Martin
                    Bank re:$100,090 Promissory Note. (Incorporated by reference
                    from the  Company's  Registration  Statement  on Form  10-SB
                    filed June 4, 1999; Commission File No. 000-26261).

                    10.4(e)  Angela M. Raidl  Commercial  Guaranty to St. Martin
                    Bank re:$100,090 Promissory Note. (Incorporated by reference
                    from the  Company's  Registration  Statement  on Form  10-SB
                    filed June 4, 1999; Commission File No. 000-26261).

                    10.4(f) St. Martin Bank $250,000  Promissory  Note Dated May
                    21,  1998.(Incorporated  by  reference  from  the  Company's
                    Registration  Statement  on Form  10-SB  filed June 4, 1999;
                    Commission File No. 000-26261).

                    10.4(g) St. Martin Bank Business Loan Agreement Dated August
                    18,  1998.  (Incorporated  by reference  from the  Company's
                    Registration  Statement  on Form  10-SB  filed June 4, 1999;
                    Commission File No. 000-26261).

                    10.4(h) St. Martin Bank  $172,725.73  Promissory  Note Dated
                    August  18,  1998.   (Incorporated  by  reference  from  the
                    Company's Registration Statement on Form 10-SB filed June 4,
                    1999; Commission File No. 000-26261).

                    10.4(i) Edward E. Friloux Commercial  Guaranty to St. Martin
                    Bank  re:$172,725.73   Promissory  Note.   (Incorporated  by
                    reference from the Company's  Registration Statement on Form
                    10-SB filed June 4, 1999; Commission File No. 000-26261).

                    10.4(j) Stephen F. Owens  Commercial  Guaranty to St. Martin
                    Bank  re:  $172,725.73  Promissory  Note.  (Incorporated  by
                    reference from the Company's  Registration Statement on Form
                    10-SB filed June 4, 1999; Commission File No. 000-26261).

                    10.4(k)  Angela M. Raidl  Commercial  Guaranty to St. Martin
                    Bank  re:  $172,725.73  Promissory  Note.  (Incorporated  by
                    reference from the Company's  Registration Statement on Form
                    10-SB filed June 4, 1999; Commission File No. 000-26261).

                    10.4(l) St.  Martin Bank  Commercial  Pledge  Agreement  re:
                    $172,725.72 Promissory Note. (Incorporated by reference from
                    the  Company's  Registration  Statement  on Form 10-SB filed
                    June 4, 1999; Commission File No. 000-26261).

                    10.4(m) St. Martin Bank Pledge of  Collateral  Mortgage Note
                    re: $172,725.72 Promissory Note.  (Incorporated by reference
                    from the  Company's  Registration  Statement  on Form  10-SB
                    filed June 4, 1999; Commission File No. 000-26261).

                    10.4(n) St. Martin Bank  Agreement to Provide  Insurance re:
                    $172,725.72 Promissory Note. (Incorporated by reference from
                    the  Company's  Registration  Statement  on Form 10-SB filed
                    June 4, 1999; Commission File No. 000-26261).

                    10.4(o)  St.   Martin  Bank  -   Collateral   Mortgage   re:
                    $172,725.72 Promissory Note. (Incorporated by reference from
                    the  Company's  Registration  Statement  on Form 10-SB filed
                    June 4, 1999; Commission File No. 000-26261).

                    10.4(p) St. Martin Bank - $54,059.29  Promissory  Note Dated
                    February  4,  1999.  (Incorporated  by  reference  from  the
                    Company's Registration Statement on Form 10-SB filed June 4,
                    1999; Commission File No. 000-26261).

                    10.5(a)  Private  Capital,  Inc.  -  Purchase  and  Security
                    Agreement Dated April 17, 1997.  (Incorporated  by reference
                    from the  Company's  Registration  Statement  on Form  10-SB
                    filed June 4, 1999; Commission File No. 000-26261).

                    10.5(b) Private  Capital,  Inc. - Angela M. Raidl Continuing
                    Guaranty  &  Waiver.  (Incorporated  by  reference  from the
                    Company's Registration Statement on Form 10-SB filed June 4,
                    1999; Commission File No. 000-26261).

                                    Page 17
<PAGE>
                    10.5(c) Private Capital,  Inc. - Stephen F. Owens and Edward
                    E. Friloux  Continuing  Guaranty & Waiver.  (Incorporated by
                    reference from the Company's  Registration Statement on Form
                    10-SB filed June 4, 1999; Commission File No. 000-26261).

                    10.6(a) Bank of Erath $15,030 Promissory Note Dated June 16,
                    1997.   (Incorporated   by  reference   from  the  Company's
                    Registration  Statement  on Form  10-SB  filed June 4, 1999;
                    Commission File No. 000-26261).

                    10.6(b)  Bank of Erath  of Loan  Extension  Agreement  Dated
                    October  20,   1998.(Incorporated   by  reference  from  the
                    Company's Registration Statement on Form 10-SB filed June 4,
                    1999; Commission File No. 000-26261).

                    10.7 American Fire  Retardant  Corp. - El Cajon,  California
                    Industrial  Lease.   (Incorporated  by  reference  from  the
                    Company's Registration Statement on Form 10-SB filed June 4,
                    1999; Commission File No. 000-26261).

                    10.8(a)  Whitney  Bank - $74,400  Secured  Promissory  Note.
                    (Incorporated  by reference from the Company's  Registration
                    Statement on Form 10-SB filed June 4, 1999;  Commission File
                    No. 000-26261).

                    10.8(b)  Whitney  Bank  -  Collateral   Mortgage,   Security
                    Agreement and Assignment of Leases and Rents.  (Incorporated
                    by reference  from the Company's  Registration  Statement on
                    Form  10-SB  filed  June  4,  1999;   Commission   File  No.
                    000-26261).

                    10.9  American  Fire  Retardant  Corp. - Standard  Lease for
                    Louisiana  Corporate  Apartment.  (Incorporated by reference
                    from the  Company's  Registration  Statement  on Form  10-SB
                    filed June 4, 1999; Commission File No. 000-26261).

                    10.10 Oil,  Gas & Mineral  Lease with  Penwell  Energy  Inc.
                    (Incorporated  by reference from the Company's  Registration
                    Statement on Form 10-SB filed June 4, 1999;  Commission File
                    No. 000-26261).

                    10.11(a) Whitney National Bank - $42,888.46 Promissory Note.
                    (Incorporated  by reference from the Company's  Registration
                    Statement on Form 10-SB filed June 4, 1999;  Commission File
                    No. 000-26261).

                    10.11(b)  Whitney   National  Bank  -  Security   Agreement.
                    (Incorporated  by reference from the Company's  Registration
                    Statement on Form 10-SB filed June 4, 1999;  Commission File
                    No. 000-26261).

                    10.12 Presidio Capital Consulting  Agreement.  (Incorporated
                    by reference  from the Company's  Registration  Statement on
                    Form  10-SB  filed  June  4,  1999;   Commission   File  No.
                    000-26261).

                    10.13 Warren Guidry Letter Promissory Note. (Incorporated by
                    reference from the Company's  Registration Statement on Form
                    10-SB filed June 4, 1999; Commission File No. 000-26261).

                    10.14(a) Agreement with Richard Rosenberg.  (Incorporated by
                    reference from the Company's  Registration Statement on Form
                    10-SB filed June 4, 1999; Commission File No. 000-26261).

                    10.14(b)  Amendment  to Agreement  with  Richard  Rosenberg.
                    (Incorporated  by reference from the Company's  Registration
                    Statement on Form 10-SB filed June 4, 1999;  Commission File
                    No. 000-26261).

                    10.14(c)  Richard  Rosenberg - $43,134.39  Promissory  Note.
                    (Incorporated  by reference from the Company's  Registration
                    Statement on Form 10-SB filed June 4, 1999;  Commission File
                    No. 000-26261).

               (27) Financial Data Schedule

                    27.1. Financial Data Schedule (submitted  electronically for
                    SEC information only).

                                    Page 18
<PAGE>
     (b) There were no other reports on Form 8-K filed during the period covered
by this report.

     The following  Exhibit Index sets forth the Exhibit attached hereto.

                                 EXHIBIT INDEX
                                 -------------

     Exhibit        Description
     -------        -----------
     NONE

                                   SIGNATURES
                                   ----------

     Pursuant  to the  requirements  of  Section  13 or 15(d) 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.

                                        AMERICAN FIRE RETARDANT CORP.
                                        A Nevada Corporation


Date: August 13, 1999                   /S/ Stephen F. Owens
                                        ---------------------------------------
                                        By:  Stephen F. Owens
                                        Its: President


Date: August 13, 1999                   /S/ Angela M. Raidl
                                        ---------------------------------------
                                        By:  Angela M. Raidl
                                        Its: Vice President, Chief Financial
                                             Officer, Secretary


                                    Page 19