International Absorbents (IAX)

Basis of consolidation and presentation

The consolidated financial statements include the accounts of International Absorbents Inc. (the “Company” or “International Absorbents”), a Canadian corporation, and its wholly owned subsidiary Absorption Corp (“Absorption”), a Nevada corporation doing business in the states of Washington and Georgia.

These unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. The accompanying interim condensed consolidated financial statements do not include all notes normally included in the Company’s audited annual consolidated financial statements and therefore should be read in conjunction with the Company’s annual consolidated financial statements and notes thereto for the year ended January 31, 2009 included in the Company’s Form 10-K filed with the SEC on April 29, 2009. The accompanying condensed consolidated financial statements include all normal recurring adjustments which, in the opinion of management, are necessary to present fairly the Company’s consolidated financial position at April 30, 2009 and January 31, 2009, its results of operations for the three month periods ended April 30, 2009 and 2008 and the statements of cash flows for the three month periods ended April 30, 2009 and 2008. Interim results are not necessarily indicative of results for a full year or future periods.

Basis of consolidation and presentation

The consolidated financial statements include the accounts of International Absorbents Inc. (the “Company” or “International Absorbents”) and its wholly owned subsidiary Absorption Corp (“Absorption”), a Nevada corporation doing business in the states of Washington and Georgia.

These unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting.  The accompanying interim condensed consolidated financial statements do not include all notes normally included in our audited annual consolidated financial statements and Annual Report on Form 10-K and therefore should be read in conjunction with our annual consolidated financial statements and notes thereto for the year ended January 31, 2008 included in the Company’s Annual Report on Form 10-K.  The accompanying interim condensed consolidated financial statements include all normal recurring adjustments which, in the opinion of management, are necessary to present fairly the Company’s consolidated financial position at October 31, 2008 and January 31, 2008, its results of operations for the nine and three months ended October 31, 2008 and 2007 and the statements of cash flows for the nine months ended October 31, 2008 and 2007. The results of operations for the nine months ended October 31, 2008 are not necessarily indicative of the results to be expected for the entire fiscal year or future periods.

Basis of consolidation and presentation

The consolidated financial statements include the accounts of International Absorbents Inc. (the “Company” or “International Absorbents”) and its wholly owned subsidiary Absorption Corp (“Absorption”), a Nevada corporation doing business in the states of Washington and Georgia.

These unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting.  The accompanying interim condensed consolidated financial statements do not include all notes normally included in our audited annual consolidated financial statements and Annual Report on Form 10-K and therefore should be read in conjunction with our annual consolidated financial statements and notes thereto for the year ended January 31, 2008 included in the Company’s Annual Report on Form 10-K.  The accompanying interim condensed consolidated financial statements include all normal recurring adjustments which, in the opinion of management, are necessary to present fairly the Company’s consolidated financial position at July 31, 2008 and January 31, 2008, its results of operations for the six and three months ended July 31, 2008 and 2007 and the statements of cash flows for the six months ended July 31, 2008 and 2007. The results of operations for the six months ended July 31, 2008 are not necessarily indicative of the results to be expected for the entire fiscal year or future periods.

Basis of consolidation and presentation

The consolidated financial statements include the accounts of International Absorbents Inc. (the “Company” or “International Absorbents”) and its wholly owned subsidiary Absorption Corp (“Absorption”), a Nevada corporation.

These unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. The accompanying interim condensed consolidated financial statements do not include all notes normally included in our audited annual consolidated financial statements and 10-K and therefore should be read in conjunction with our annual consolidated financial statements and notes thereto for the year ended January 31, 2008 included in the Company’s annual report on Form 10-K. The accompanying condensed consolidated financial statements include all normal recurring adjustments which, in the opinion of management, are necessary to make the financial statements not misleading and to present fairly the Company’s consolidated financial position at April 30, 2008 and January 31, 2008, its results of operations for the three months ended April 30, 2008 and 2007 and the statement of cash flows for the three months ended April 30, 2008 and 2007. The results of operations for the three months ended April 30, 2008 are not necessarily indicative of the results to be expected for the entire fiscal year or future periods.