<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 September 30, 1998.
[ ] 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 1003
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 September 30, 1998 was 51,196,018
shares.
- -----------------------------------------------------------------
- -----------------------------------------------------------------
<PAGE> 2
PART I
ITEM 1. FINANCIAL STATEMENTS.
FIRST AMERICAN SCIENTIFIC CORP
BALANCE SHEET
See Notes to Financials
(Unaudited)
<TABLE>
<CAPTION>
Three months Year ending
Ending September June 30
30, 1998 1998
<S> <C> <C>
ASSETS
Current Assets;
Cash $ 18,076 $ 1,133
Accounts receivable - 32,915
Inventory - 5,500
Prepaid expenses - -
---------- ----------
18,076 39,548
---------- ----------
PROPERTY AND EQUIPMENT
Kinetic Disintegrator equipment 872,246 872,246
Plant assets and equipment 1,359,161 1,359,161
Office equipment 24,272 23,916
Leasehold Improvements 5,476 5,476
---------- ----------
2,261,155 2,260,799
Less: Accumulated depreciation (200,142) (200,142)
---------- ----------
2,061,013 2,060,657
OTHER ASSETS
Technology licenses - net of
amortization 1,756,775 1,765,775
Patent and Manufacturing
Rights - net of amortization 234,931 234,931
Deposits 13,735 13,735
---------- ----------
2,005,441 2,005,441
---------- ----------
$4,084,530 $4,105,646
========== ==========
</TABLE>
See accompanying notes to financial statements.
F-1a
<PAGE> 3
FIRST AMERICAN SCIENTIFIC CORP
BALANCE SHEET
See Notes to Financials
(Unaudited)
<TABLE>
<CAPTION>
Three Months Year ending
Ending September June 30
30, 1998 1998
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Bank overdraft $ - $ 6,061
Accounts payable 311,562 322,366
Deferred liability - -
Short term loans payable - 80,000
License agreement payable 522,000 537,000
---------- ----------
833,562 945,427
---------- ----------
Stockholders' Equity
Common stock - $,001 Par Value
100,000.000 shares authorized
51,196,018 shares issued 51,196 49,326
Additional paid in capital 6,119,000 6,027,370
Stock subscriptions and options
receivable (45,500) (45,500)
Deficit accumulated during the
development stage (2,873,728) (2,870,977)
---------- ----------
Total Stockholders' Equity 3,250,968 3,160,219
---------- ----------
$4,084,530 $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>
Three Months
Ending Year Ending
September 30, June 30
1998 1998
<S> <C> <C>
INCOME $ 121,698 $ 665,638
COST OF SALES 42,875 290,086
---------- -----------
GROSS PROFIT 78,823 375,552
OPERATING EXPENSES 81,574 1,290,783
---------- -----------
OPERATING LOSS $ (2,751) $ (915,231)
LOSS ON ABANDONMENT - 157,691
---------- -----------
OPERATING LOSS BEFORE
INCOME TAXES (2,751) 1,072,922
PROVISION FOR INCOME TAXES - -
---------- -----------
NET LOSS (2,751) 1,072,922
ACCUMULATED DEFICIT
BEGINNING OF PERIOD (2,870,977) 1,798,055
----------- -----------
ACCUMULATED DEFICIT
END OF PERIOD $(2,873,728) $(2,870,977)
=========== ===========
NET LOSS PER COMMON SHARES $ (0.0006) $ (0.05)
=========== ===========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 23,656,167 23,656,167
=========== ===========
</TABLE>
See accompanying notes to financial statements.
F-2
<PAGE> 5
FIRST AMERICAN SCIENTIFIC CORP
STATEMENT OF STOCKHOLDERS' EQUITY
See Notes to Financials
(Unaudited)
Three Months Ending
September 30, 1998
<TABLE>
<CAPTION>
Additional
Common Stock Paid-In Retained
Shares Amount Capital Earnings
<S> <C> <C> <C> <C>
Balance
June 30, 1998 49,326,018 49,326 6,027,370 2,870,977
Add:
Settlement of debt of
$80,000 and financial
fees of $13,60 for
1,870,000 shares of
common stock 1,870,000 1,870 91,630
Net Loss for the period
ending September 30,
1998 2,751
---------- ------ --------- ---------
51,196,018 51,196 6,119,000 2,873,728
========== ====== ========= =========
</TABLE>
See accompanying notes to financial statements.
F-3
<PAGE> 6
FIRST AMERICAN SCIENTIFIC CORP
STATEMENT OF CASH FLOWS
See Notes to Financials
(unaudited)
<TABLE>
<CAPTION>
Three Months
Ending Year Ending
September 30 June 30
1998 1998
<S> <C> <C>
CASH FLOWS PROVIDED (USED) IN OPERATIONS
Net income (loss) $ (2,751) $(1,072,922)
Depreciation and amortization - 323,041
Financing fen paid by issuance of stock 13,500 13,500
Office services paid by issuance of stock - -
(Increase) in accounts receivable 32,915 (5,475)
Decrease in inventory 5,500 49,876
Decrease in prepaid expenses - 18,836
Decrease in accounts payable
and accrued expenses (10,804) (63,683)
Decrease in litigation reserve - (62,061)
-------- -----------
Net cash (used) in operating activities 38,360 (798,888)
-------- -----------
CASH FLOWS PROVIDED (USED) IN INVESTING ACTIVITIES
Purchase of plant, property and equipment (356) -
Deposit - 1,833
-------- -----------
Net cash provided (used) in
investing activities (356) 1,833
-------- -----------
CASH PLOWS PROVIDED (USED) IN FINANCING ACTIVITIES
Short term borrowings (6,061) 789,977
Payments on short-term borrowings (15,000) (200,000)
Proceeds from sales of stock - 200,000
-------- ----------
(21,061) 789,977
-------- ----------
NET INCREASE (DECREASE) IN CASH $ 16,943 $ (7,078)
-------- ----------
CASH - Beginning of period 1,133 8,211
-------- ----------
CASH - End of period $ 18,076 $ 1,135
-------- ----------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest $ - $ 8,787
Income taxes $ - $ -
NON-CASH FINANCING ACTIVITIES
Common stock issued for payment of fixed assets 31,600
Common stock issued for payment an 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 90,000 1,634,187
Common stock issued for commissions 13,500 13,500
</TABLE>
See accompanying notes to financial statements
F-4
<PAGE> 7
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
(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 it
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 arc 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 for 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> 8
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO THE FINANCIAL STATEMENTS
September 30, 1998
(Unaudited)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES . .
continued
Provision for Taxes:
At June 30, 1998. the Company had not operating loss carry forwards
of approximately $2,870,978 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 his 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 and 1998.
F-6
<PAGE> 9
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO THE FINANCIAL STATEMENTS
September 30, 1998
(Unaudited)
3. GOING CONCERN continued
The Company has reported a loss of $2,751 for the period ending
September 30, 1998 bringing accumulated losses to $2,873,728. At
September 30, 1998 the Company had a working capital deficit of
$815,486, down from $905,877 at June 30, 1998.
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.
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 September 30, 1998.
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
September 30, 1998 to $431,506.
F-7
<PAGE> 10
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO THE FINANCIAL STATEMENTS
September 30, 1998
(Unaudited)
4. TECHNOLOGY LICENSE continued
On May 17, 1996, the Company executed another agreement with
Spectrasonic Corp for the worldwide licenses to equipment developed
by Spectrasonic 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 $522,000.
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
September 30, 1998.
F-8
<PAGE> 11
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO THE FINANCIAL STATEMENTS
September 30, 1998
(Unaudited)
6. STOCK COMPENSATION PLANS continued
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 September 30, 1998, 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.
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, the Knowlton Capital Inc. loan
of $521,851 was 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.
Additional sundry loans obtained during the year have also been
converted to shares of common stock Loans outstanding of $80,000
were converted to common shares in July 1998.
F-9
<PAGE> 12
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO THE FINANCIAL STATEMENTS
September 30, 1998
(Unaudited)
8. RELATED PARTY TRANSACTION
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.)
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. The cost of this lease is approximately $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.
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 September 30, 1998.
11. EARNINGS (LOSS) PER SHARE
The net income (loss) per share is computed using the weighted
average number of shares outstanding and amounts to $(0.0006) and
$(0.05) per share for the period ending September 30, 1998 and June
30, 1998.
F-10
<PAGE> 13
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Quarter - Ending September 30, 1998
LIQUIDITY AND CAPITAL RESOURCES
The Company was incorporated on April 12, 1995, and commenced
construction of a plant in Bakersfield, California in July 1996. The
Company was a development stage company until May 1997 when the
Bakersfield plant commenced full production. Production in the
Bakersfield plant was suspended July 1, 1998 as the Company felt it
needed to raise additional working capital in order to properly finance
the operations. In the three months ending September 30, 1998, sales
amounted to $121,698 from the sale of a KDS machine to a customer in
California. This unit was fully paid for when delivered.
At September 30, 1998, the Company had a bank balance of $20,505.
Accounts receivable totaled $45,000. Accounts payable at September
30, 1998 amount to $318,123. 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. 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
$522,000.
In the first three months of operation, the Company has raised
$93,500 from the sale of common stock. These funds were used to retire
loans outstanding at June 30, 1998 plus commissions payable on funds
raised. The working capital position continues to improve as it amounts
to $(774,118) verse $(863,905) at June 30, 1998. While this working
capital position is improving, 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.
RESULTS OF OPERATIONS
During the quarter ending September 30, 1998, the Company incurred
an operating loss of $3,354. This is a significant improvement over the
last fiscal year wherein the Company lost $893,108. The Company spent
$21,575 on research and development during the quarter as it attempts
to ready its sludge process technology for commercial applications.
The Bakersfield plant suspended operations on July 1, 1998 in as
the Company lacked sufficient working capital to run the plant
effectively. The Company seeking a joint venture partner capable of
operating the plant facilities. Discussions are in progress in an
attempt to obtain a joint venture partner.
<PAGE> 14
In April 1998, the Company reached agreement with its secured
debt holders to convert all outstanding loans into common stock at
$0.05 per share. In addition to this, the Company has also negotiated
with all holders of Royalty Agreements regarding Gypsum production at
Blythe, California to convert their holdings to common shares. This
debt of $135,817 has been converted at $0.05 per share into common
shares of the Company.
INFLATION
Inflation continues to be a non-factor in the quarter ending
September 30, 1998. This is consistent with the previous 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 SEPTEMBER 30, 1998
The Company rents premises at 4100 Burr Street, Bakersfield
California, for the sum of $1,500 per month. These premises are rented
for a one year period with the option to renew for an additional 2
years. 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. The company has exercised its option to extend the lease
through April 30, 1999.
During the quarter ending September 30, 1998, the largest single
expenditure was $27,800 for consulting services and $20,500 in legal
expense. The Company also spends funds on research and development and
a marketing program 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 are very
positive and the Company was very pleased with the Pathogen count and
the moisture reduction in the test site. It is expected that a more
extensive test will be conducted in the next three to six months prior
to proceeding to its first commercial application.
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
conversion rate over the past quarter has varied between US$0.64 and
US$0.66 to CDN$1.00.
<PAGE> 15
FOREIGN OPERATIONS
The Company is conducting its biowaste testing in the State of
Washington, having moved its equipment from Chilliwack, British
Columbia, Canada. The Company is currently testing a KDS machine near
Tonasket, Washington. The focus of its efforts in the quarter ending
September 30, 1998 was directed toward biowaste and the preparation
of the machine for commercial applications. Corporate and
administrative offices are maintained in Vancouver, British Columbia,
Canada.
EXHIBIT INDEX
Exhibit
No. Description
27 Financial Data Schedule
<PAGE> 15
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 23rd day of April, 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 September 30, 1998
(Unaudited) and the Consolidated Statement of Income for the three months
ended September 30, 1998 (Unaudited) and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> SEP-30-1998
<CASH> 18,076
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 18,076
<PP&E> 4,266,596
<DEPRECIATION> (200,142)
<TOTAL-ASSETS> 4,084,530
<CURRENT-LIABILITIES> 833,562
<BONDS> 0
0
0
<COMMON> 51,196
<OTHER-SE> 6,119,000
<TOTAL-LIABILITY-AND-EQUITY> 3,250,968
<SALES> 121,698
<TOTAL-REVENUES> 121,698
<CGS> 42,875
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 81,574
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,751)
<EPS-PRIMARY> (0.006)
<EPS-DILUTED> (0.006)
</TABLE>
