<PAGE> 1
- - - - - - - - - - - - - -----------------------------------------------------------------
- - - - - - - - - - - - - -----------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
----------------------------------
FORM 10-Q
[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999.
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from:
------------------------------
Commission file number 0-27094
------------------------------
FIRST AMERICAN SCIENTIFIC CORP.
(Exact name of Registrant as specified in its charter.)
NEVADA 88-0338315
(State of other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
409 Granville Street, Suite 303
Vancouver, British Columbia V6C 1T2
(Address of principal executive offices, including zip code.)
(604) 681-8656
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 Act of 1934 during the preceding 12 months (or for
such shorter period that the Registrant was required to file such
reports), and (2) has been subject to such filing requirements
for the past 90 days.
YES [ ] NO [ x ]
The number of shares outstanding of the Registrant's Common
Stock, no par value per share, at March 31, 1999 was 54,946,018
shares.
- - - - - - - - - - - - - -----------------------------------------------------------------
- - - - - - - - - - - - - -----------------------------------------------------------------
<PAGE> 2
PART I
ITEM 1. FINANCIAL STATEMENTS
FIRST AMERICAN SCIENTIFIC CORP.
BALANCE SHEET
See Notes to Financials
(unaudited)
Nine Months
ending Year ending
March 31, June 30
1999 1998
[S] [C] [C]
ASSETS
Current Assets
Cash $ 4,262 $ 1,133
Accounts receivable - 32,915
Inventory - 5,500
Prepaid expenses - -
---------- ----------
4,262 39,548
---------- ----------
PROPERTY AND EQUIPMENT
Kinetic Disintegrator equipment 872,246 872,246
Plant assets and equipment 1,359,161 1,359,161
Office equipment 23,916 23,916
Leasehold Improvements 5,476 5,476
---------- ----------
2,260,799 2,260,799
Less: Accumulated depreciation (200,142) (200,142)
---------- ----------
2,060,657 2,060,657
---------- ----------
OTHER ASSETS
Technology licenses - net
of amortization 1,756,775 1,756,775
Patent and Manufacturing
Rights - net of amortization 234,931 234,931
Deposits 13,735 13,735
---------- ----------
2,005,441 2,005,441
---------- ----------
$4,070,360 $4,105,646
========== ==========
See accompanying notes to financial statements.
F-1a
<PAGE> 3
FIRST AMERICAN SCIENTIFIC CORP.
BALANCE SHEET
See Notes to Financials
(unaudited)
<TABLE>
<CAPTION>
Nine Months
ending Year ending
March 31, June 30
1999 1998
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Bank overdraft $ - $ 6,061
Accounts payable 293,518 322,366
Short term loans payable 19,645 80,000
License agreement payable 502,000 537,000
---------- ----------
815,163 945,427
---------- ----------
Stockholders' Equity
Common stock - $.001 par value
100,000,000 shares authorized
54,946,018 shares issued 51,571 49,326
Additional paid in capital 6,122,376 6,027,370
Stock subscriptions and options
receivable (45,500)
Deficit accumulated during the
development stage (2,918,750) (2,870,977)
---------- ----------
Total Stockholders' Equity 3,255,197 3,160,219
---------- ----------
$4,070,360 $4,105,646
========== ==========
</TABLE>
See accompanying notes to financial statements.
F-1b
<PAGE> 4
FIRST AMERICAN SCIENTIFIC CORP
STATEMENT OF LOSS AND ACCUMULATED DEFICIT
See Notes to Financials
(unaudited)
<TABLE>
<CAPTION>
Nine Months
ending Year Ending
March 31 June 30
1999 1998
<S> <C> <C>
INCOME $ 289,678 $ 665,638
COST OF SALES 106,041 290,086
------------ ------------
GROSS PROFIT 183,637 375,552
OPERATING EXPENSES 231,409 1,290,784
------------ ------------
NET INCOME (LOSS) $ (47,772) $ (915,232)
LOSS ON ABANDONMENT - (157,691)
------------ ------------
NET LOSS (47,772) (1,072,923)
ACCUMULATED DEFICIT
BEGINNING OF PERIOD (2,870,978) (1,798,055)
------------ ------------
ACCUMULATED DEFICIT
END OF PERIOD $ (2,918,750) $ (2,870,978)
============ ============
NET INCOME (LOSS) PER SHARE $ (0.008) $ (0.05)
============ ============
</TABLE>
See accompanying notes to financial statements.
F-2
<PAGE> 5
FIRST AMERICAN SCIENTIFIC CORP.
STATEMENT OF CASH FLOWS
See Notes to Financials
(unaudited)
<TABLE>
<CAPTION>
Nine Months
Ending Year Ending
March 31 June 30
1999 1998
<S> <C> <C>
CASH FLOWS PROVIDED (USED) IN OPERATIONS
Net Income (loss) $ (47,772) $(1,072,922)
Adjustment to year end deficit
Depreciation and amortization - 323,041
Adjustment to reconcile net loss
to net cash used by operations:
Financing fees paid by issuance of stock - -
Office services paid by issuance of stock - 13,500
(Increase) decrease in accounts receivable 78,415 (5,475)
Decrease in inventory 5,500 49,876
Decrease in prepaid expenses - 18,836
(Decrease) in accounts payable and
accrued expenses (28,848) (63,683)
Decrease in litigation reserve - (62,061)
(Decrease) in accrued interest - -
--------- -----------
7,295 (798,888)
--------- -----------
CASH FLOWS PROVIDED (USED) IN
INVESTING ACTIVITIES
Purchase of plant, property and equipment - -
Deposits - 1,833
--------- -----------
- 1,833
CASH FLOWS PROVIDED (USED) IN
FINANCING ACTIVITIES
Short term borrowings 19,645 789,977
Retirement of debt (80,000) -
Payments on short-term borrowings (41,061) (200,000)
Proceeds from sales of stock 97,250 200,000
--------- -----------
(4,166) 789,977
--------- -----------
NET INCREASE (DECREASE) IN CASH $ 3,129 $ (7,078)
CASH - Beginning of period 1,133 8,211
--------- -----------
CASH - End of period $ 4,262 $ 1,133
========= ===========
</TABLE>
See accompanying notes to financial statements.
F-3a
<PAGE> 6
FIRST AMERICAN SCIENTIFIC CORP.
STATEMENT OF CASH FLOWS
See Notes to Financials
(unaudited)
<TABLE>
<CAPTION>
Nine Months
Ending Year Ending
March 31 June 30
1999 1998
<S> <C> <C>
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid during the period for:
Interest $ - $ 8,787
Income taxes $ - $ -
NON-CASH INVESTING ACTIVITIES
Common stock issued for payment on
royalty agreements $ - $ 170,315
NON-CASH FINANCING ACTIVITIES
Common stock issued for payment on
patents and manufacturing rights $ - $ 250,000
Common stock issued for exchange
of debt $ 83,750 $ 1,634,187
Common stock issued for commissions $ 13,500 $ 13,500
</TABLE>
See accompanying notes to financial statements.
F-3b
<PAGE> 7
FIRST AMERICAN SCIENTIFIC CORP
STATEMENT OF STOCKHOLDERS' EQUITY
See Notes to Financials
(unaudited)
Nine Months Ending March 31, 1999
<TABLE>
<CAPTION>
Additional
Common Stock Paid-In Accumulated
Shares Amount Capital Deficit
<S> <C> <C> <C> <C>
Balance
June 30, 1998 49,326,018 49,326 6,027,370 2,870,978
Add:
Settlement of debt of
$80,000 and financial
fees of $13,500 for
1,870,000 shares of
common stock 1,870,000 1,870 91,630
Exercise of stock
options 3,750,000 375 3,375
Net Loss for the nine
months ending March
31, 1999 47,772
---------- ------ --------- ---------
54,946,018 51,571 6,122,375 2,918,750
========== ====== ========= =========
</TABLE>
See accompanying notes to financial statements
F-4
<PAGE> 8
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO THE FINANCIAL STATEMENTS
March 31, 1999
(unaudited)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.
Organization:
First American Scientific Corp. (the Company) was incorporated on April
12, 1995 under the laws of the State of Nevada, has a year end of June
30. The Company, originally organized to become a manufacturer of
rubber powder for industrial fillers, has acquired the rights to
process and sell industrial products such as gypsum, limestone, and
sulphur. Because of the speculative nature of the Company, there are
significant risks, some of which are summarized as follows:
- - - - - - - - - - - - - - Newly formed company with limited sales and operating history.
- - - - - - - - - - - - - - Limited funds available for expansion, operations, and debt
repayment.
- - - - - - - - - - - - - - Assets principally consisting of technology, licenses, and related
equipment, with patents granted.
The Company was formed April 12, 1995 and was in the development stage
(as defined in Statement of Financial Accounting Standards No 7)
through the year ended June 30, 1996. Operations commenced May 1, 1997.
Summary of Significant Accounting Policies: Depreciation began May 1,
1997 when the Company's property, plant and equipment were placed in
service. The cost of property, plant and equipment is
being depreciated over the estimated useful lives of the related
assets. The cost of leasehold improvements will be depreciated over the
lesser of the length of the related assets or the estimated useful
lives of the assets. Depreciation will be computed on the
straight-line method for financial reporting purposes and income tax
purposes.
Amortization of the Company's technology licenses began May 1, 1997
when the Company's property, plant and property, plant and equipment
(which directly originate from the licensed technology) were placed in
service. The cost of the Company's technology licenses is being
amortized over the estimated economic life of fifteen years.
Organization costs, which are deemed immaterial, were expensed when
paid.
F-5
<PAGE> 9
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO THE FINANCIAL STATEMENTS
March 31, 1999
(unaudited)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. . .
continued
Provision for Taxes:At March 31, 1999, the Company had net operating
loss carry forwards of approximately $2,918,750 that may be offset
against future taxable income. No tax benefit has been reported in the
financial statements as the Company believes there's a 50% or greater
chance the net operating loss carry forwards will expire unused.
Accordingly, the potential tax benefits of the net operating loss carry
forwards are offset by a valuation allowance of the same amount.
Recently Issued Accounting Standards
In March 1995 the Financial Accounting Standards Board issued a new
statement titled "Accounting for Impairment of Long-Lived Assets." This
new standard is effective for years beginning after December 15, 1995.
In complying with this new standard, the Company has reviewed its
long-lived assets at June 30, 1998 and concluded that no events or
changes in circumstances have transpired which indicate that the
carrying value of its assets may not be recoverable. The Company does
not believe that adoption of the new standard will have a material
effect on its financial statements in the current fiscal year.
In October 1995, the Financial Accounting Standards Board issued a new
statement titled "Accounting for Stock Based Compensation" (FAS 123).
The new statement is effective for fiscal years beginning after
December 15, 1995. FAS 123 encourages, but does not require, companies
to recognize compensation expense for grants of stock,
stock options, and other equity instruments to employees based on fair
value. The Company has adopted the fair value accounting rules to
record all transactions in equity instruments for goods and services.
2. STOCKHOLDERS EQUITY
Common Stock: All shares have been adjusted for a 6- for -10 reverse
stock split on August 14, 1995.
3.GOING CONCERN
The Company's financial statements have been presented on a going
concern basis that contemplates the realization of assets and the
satisfaction of liabilities in the normal course of business. The
liquidity of the Company has been adversely affected by net losses in
fiscal year ends June 30, 1996, 1997, 1998 and the nine months to Mar
31, 1999.
The Company has reported a loss of $47.772 for the period ending March
31, 1999 bringing accumulated losses to $2,918,750. At March 31, 1999
the Company had a working capital deficit of $810,901, down from
2,045,540 $905,879 at June 30, 1998.
F-6
<PAGE> 10
FIRST AMERICAN SCIENTIFIC CORP.
NOTES TO THE FINANCIAL STATEMENTS
March 31, 1999
(unaudited)
3. GOING CONCERN. . . continued.
Management has taken a number of steps to reduce expenses and develop
a profitable revenue stream. This includes an R & D program to develop
a commercially viable rubber processing machine and to find a joint
venture partner for the industrial minerals plant in California. The
Company also intends to aggressively market its technology for other
recycling applications, e.g. biosolids and wallboard. Management
intends to seek new capital either by debt or equity issuances to
provide funds needed to implement its business plan. Management also
intends to seek other opportunities to broaden the potential revenue
base for the Company.
4. TECHNOLOGY LICENSE
On June 22, 1995, the Company executed a license agreement with
Spectrasonic Corp. (hereinafter "Spectrasonic") for the worldwide
license to its patented Kinetic Disintegrator System (KDS) for use in
rubber and glass recycling and disposal for a period of ninety nine
years. The purchase price of this license and one KDS machine was
$550,000 and the license rights are valued at $250,000. Since this
initial agreement, modifications have been made to the machine,
bringing its cost to $440,740, at March 31, 1999.
On February 22, 1996, the Company entered into an additional license
agreement with Spectrasonic Corp. for the worldwide license to its now
patented Kinetic Disintegrator System for exclusive use in gypsum
disintegration, disintegration, disposal, recycling, re-manufacturing
or manufacturing of used or new raw materials. The purchase price of
this license and one KDS Machine for gypsum-related use was $775,000
with the parties agreeing that the technology license is valued at
$425,000 and the gypsum KDS machine is valued at $350,000. Certain
modifications have been made to the machine, bringing its cost at March
31, 1999 to $431,506.
On May 17, 1996, the Company executed another agreement with Spectra
sonic Corp for the worldwide licenses to equipment developed by
Spectra sonic for use in disintegration, disposal, recycling,
manufacturing and remanufacturing of "any kinds of materials" for a
period of ninety-nine years. The purchase price of this license was
$1,230,000, which consisted of the Company issuing to Spectrasonic
1,000,000 shares of First American common stock (with an aggregate
deemed value of US$500,000), and agreeing to pay $730,000 in varying
amounts between June 30, 1996 and January 2, 1997. The Company issued
1,000,000 common shares to Spectrasonic in July 1996. The Company has
made payments to Spectrasonic in the amount of $193,000, but is in
default on this agreement by its failure to make remaining installments
totaling $502,000.
F-7
<PAGE>
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO THE FINANCIAL STATEMENTS
March 31, 1999
(unaudited)
4. TECHNOLOGY LICENSE. . . .continued.
On July 2, 1997, the Company finalized negotiations with Spectrasonic
for all patents issued, to be issued or pending including all data
pertaining to the patent process with respect to the KDS machine whose
worldwide rights had been previously acquired by the Company. In
addition the Company acquired all manufacturing rights applicable to
the KDS machine technology. The Company has sole right and
responsibility for manufacturing the machinery. Consideration to
Spectrasonic will be the issuance of 1,000,000 common shares of the
Company's stock at $0.25 per share plus payment of $500,000. The cash
payment to Spectrasonic will be made at $50,000 per machine
manufactured and sold by the Company.
5. TRANSLATION OF FOREIGN CURRENCY.
The Company has adopted Financial Accounting Standard No. 52. Because
the Canadian foreign exchange rate has remained approximately the
same since inception, there are no material exchange rate transaction
gains or losses.
Common stock issued for the payment on license agreements was recorded
in U.S. dollars.
6. STOCK COMPENSATION PLANS.
The Company has adopted a consultant and employee stock compensation
plan. The total number of shares included in the Plan is 350,000. Any
shares issued as a result of the exercise of option will be "restricted
securities". Options may only be granted to employees and consultants
of the Company. The Board of Directors is vested with authority and
discretion to prescribe, amend and rescind rules and regulations
relating to the plan. No options have been issued as of March 31,
1999.
The Company has also adopted a directors and officers' stock option
plan. Directors have approved a plan wherein 1,000,000 shares are
eligible for distribution. In September 1998, the directors approved a
new plan for 15,000,000 shares. As of March 31, 1999, 4,300,000 options
had been approved and issued to officers, directors and consultants.
Form 8's have been filed for both plans.
7. LOANS
On November 15, 1996, the Company entered into a loan agreement with
Huntingdon Limited in the amount of $100,000. In March 1998, this loan
plus accrued interest was converted into shares of common stock in the
Company.
F-8
<PAGE> 12
FIRST AMERICAN SCIENTIFIC CORP.
NOTES TO THE FINANCIAL STATEMENTS
March 31, 1999
(unaudited)
7. LOANS. . . continued.
On February 20, 1997, the Company entered into a loan agreement with
834968 Ontario, Inc in the amount of $200,000. This short-term loan
was fully repaid on August 20, 1997.
During the year ended June 30, 1997, the Company entered into a
short-term loan agreement with Magic Trading in the amount of $171,414.
This uncollateralized loan plus additional loans during the year were
converted into common stock in the Company.
During the year ended June 30, 1997, the Company entered into a
short-term loan agreement with Meraloma Club in the amount of $36,500.
This loan, plus accrued interest was converted into shares of common
stock in the Company.
On April 30, 1996, the Company entered into a loan agreement with
Knowlton Capital Inc, wherein the lender agreed to provide a revolving
line of credit . The loan agreement has been extended over the past
two years, and in March 1998, all loans outstanding were converted into
shares of common stock.
On January 21, 1997, the Company entered into a loan agreement with
Jacqueline Lovelock in the amount of $82,000. This was a secured loan,
whose terms have been extended and the amounts increased. These loans
were converted into shares of common stock in the Company.
During the year, certain loans totalling $135,816 were obtained in
regard to the financing of the mine site in Blythe, California. These
loans were to have been repaid by a royalty arrangement but in March
1998, all royalty agreements in the amount of $135,816 were converted
into shares of common stock in the Company.
Short term loans of $80,000 at June 30, 1998 have been converted to
shares of common stock and at March 31, 1999 short term loans
outstanding amounted to $19,645.
8. RELATED PARTY TRANSACTIONS.
Spectrasonic Corp, is owned and controlled by Mssr's Martin and Sand,
each of whom own 50 of its outstanding stock. Spectrasonic, a
shareholder in the Company with 1,250,000, is a creditor of the
Company. (See Note 4.)
F-9
<PAGE> 13
FIRST AMERICAN SCIENTIFIC CORP.
NOTES TO THE FINANCIAL STATEMENTS
March 31, 1999
(unaudited)
9. LEASES.
The Company owns no real property. It leases 800 square feet of office
space at Suite 1003, 409 Granville Street, Vancouver, British Columbia
VTC 1T2. Payment amounts to $1,000 per month.
In May 1996, the Company signed a lease to rent facilities in
Bakersfield, California for the industrial processing of gypsum,
limestone and specialty products. The lease, which requires payments of
$1,500 per month, expires on April 14, 1999. This lease has not as yet
been renewed.
10. ROYALTY AGREEMENT
On October 15, 1995, the Company entered into a gross royalty agreement
with Strategic International Inc. The Agreement grants to Strategic
International Inc, a gross perpetual royalty of $0.015 per pound on all
glass or rubber which is processed through, by or under the license
granted on June 22, 1995, to First American Scientific Corp, by
Spectrasonic Corp. Strategic International Inc. was instrumental in
arranging the licensing agreements with
Spectrasonic Corp. No royalties were payable at March 31, 1999.
11. EARNINGS (LOSS) PER SHARE
The net income (loss) per share is computed using the weighted average
number of shares outstanding and amounts to $(.008) and $0.05) per
share for the period ending March 31, 1999 and June 30, 1998.
F-10
<PAGE> 14
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS - QUARTER ENDING MARCH 31, 1999
LIQUIDITY AND CAPITAL RESOURCES
The Company was incorporated on April 12, 1995 as a development
stage company and remained so until May 1997 when a pilot plant in
Bakersfield, California, commenced operation. Production in the
Bakersfield plant continued until July 1, 1998 when it was determined
that the Company needed to raise additional working capital in order to
properly finance the operations. The Company was satisfied with the
technology as it was applied for industrial minerals such as gypsum,
limestone and dolomite. The Company has focused the current fiscal
year on application of all available funds toward development of the
sludge process and the rubber process. As well, the Company sold a KDS
unit to a company using it in the processing of contaminated wood
products. The purchaser of the KDS has been most satisfied with the
performance of the KDS unit.
At March 31, 1999, the Company had a bank balance of $4,262.
Accounts payable at March 31, 1999 amounted to $293,518. The Company
will continue to raise funds either from sale of common stock or from
private loans, until it can generate its cash requirements internally
and retire its outstanding obligations satisfactorily. The Company
recognizes a need for additional working capital as it also has a
current obligation in regard to the balance owing on its acquisition of
the patent rights, etc. attached to its technology in the amount of
$502,000.
In the first nine months of operation, the Company has raised
$97,250 from the sale of common stock. These funds were used to retire
loans outstanding at June 30, 1998 plus commissions payable on funds
raised and sundry debts incurred during the current year. The working
capital position continues to improve as it amounts to $(810,091) vs.
$(915,879) at June 30, 1998. While this working capital position is
improving, it is not satisfactory and management will continue to seek
additional financing to correct this imbalance and eliminate its
present debt.
The Company has sufficient liquidity to maintain its operation
while it continues to seek additional funding.
Management intends to negotiate a conversion of the current short
term loans of $19,645 into common stock of the company.
RESULTS OF OPERATIONS
During the quarter ending March 31, 1999, the Company incurred an
operating loss of $12,930, increasing the loss for the year to $47,772.
This is a significant improvement over the last fiscal year wherein the
company lost $1,072,923 for the same nine month period. The Company has
spent almost $35,000 on research and development during the fiscal
year to date, as it attempts to ready its sludge process technology for
commercial applications. Research on its rubber application is being
carried out under a joint venture agreement in Ireland. A report on
these activities is expected soon.
<PAGE> 15
The Bakersfield plant suspended operations on July 1, 1998 in as
the Company lacked sufficient working capital to run the plant
effectively. The Company is in discussions with a possible joint
venture partner capable of operating the plant facilities.
INFLATION
Inflation continues to be a non-factor in the quarter ending March
31, 1999. This is consistent with the previous quarters this year as
well as the last fiscal year ending June 30, 1998. There are no
capital projects underway and the only expenditures are operational,
which are not adversely affected by inflation.
QUARTER ENDED MARCH 31, 1999
The Company rents premises at 4100 Burr Street, Bakersfield,
California, for the sum of $1,500 per month. A party interested in a
joint venture at this facility has absorbed this cost as part of its
analysis of its opportunities. The lease on these premises expires in
April 1999 and an extension has not as yet been negotiated. The plant
consists of two (2) KDS machines which are currently leased, which in
turn generate processed industrial minerals at the rate of 10 to 12
tons per hour for both machines. These machines are supplemented by
approximately $1,500,000 in additional equipment, such as conveyors,
bagging equipment, large bulk hoppers, various and sundry electrical
equipment, weigh scales and receiving docks, and sundry other items.
For the nine months ending March 31, 1999, the largest single
expenditure was $65,000 for royalties per agreement to acquire the
technology. The Company also spent almost $35,000 on research and
development and $20,000 to promote the technology as it relates to
industrial minerals, rubber and biowaste (sludge). The Company has
reconfigured the machine for biowaste and completed onsite testing
program for biowaste. Test results from the biowaste test site continue
to be positive and the Company was very pleased with the Pathogen
count and the moisture reduction in the test site.
All operating results are reflected in U.S. dollars and any
foreign exchange loss or gain is nominal in that the value of the
Canadian dollar to the U.S. dollar has only changed moderately and most
expenses and funds and funds raised are in U.S. dollars. The exchange
rate during the past quarter was virtually unchanged.
FOREIGN OPERATIONS
The Company is conducting its biowaste testing in the State of
Washington, having moved its equipment from Chilliwack, B.C. Canada.
The Company is currently testing a KDS machine near Tonasket,
Washington. The focus of its efforts in the quarter ending March 31,
1999 continued to be directed toward biowaste and the preparation of
the machine for commercial applications. Corporate and administrative
offices are maintained in Vancouver, British Columbia, Canada.
<PAGE> 16
EXHIBIT INDEX
Exhibit
No. Description
27 Financial Data Schedule
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.
Dated this 12th day of May, 1999.
FIRST AMERICAN SCIENTIFIC CORP.
(the "Registrant")
BY: /s/ Robert G. Dinning
Robert G. Dinning, Secretary/Treasurer, Chief Financial Officer
and a Member of the Board of Directors.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Statement of Financial Condition at March 31, 1999 (Unaudited)
and the Consolidated Statement of Income for the nine months ended March
31, 1999 (Unaudited) and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> MAR-31-1999
<CASH> 4,262
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,262
<PP&E> 4,266,240
<DEPRECIATION> 220,142
<TOTAL-ASSETS> 4,070,360
<CURRENT-LIABILITIES> 815,163
<BONDS> 0
0
0
<COMMON> 51,571
<OTHER-SE> 6,122,376
<TOTAL-LIABILITY-AND-EQUITY> 4,070,360
<SALES> 0
<TOTAL-REVENUES> 289,678
<CGS> 106,041
<TOTAL-COSTS> 106,041
<OTHER-EXPENSES> 231,409
<LOSS-PROVISION> (47,772)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (47,722)
<EPS-PRIMARY> 0.008
<EPS-DILUTED> 0.008
</TABLE>
