<PAGE> 1
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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 December 31, 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
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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 December 31, 1998 was 54,946,018
shares.
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<PAGE> 2
PART I
ITEM 1. FINANCIAL STATEMENTS.
FIRST AMERICAN SCIENTIFIC CORP
BALANCE SHEET
See Notes to Financials
(Unaudited)
<TABLE>
<CAPTION>
Six Months ending Year ending
December 31 June 30
1998 1998
<S> <C> <C>
ASSETS
Current Assets;
Cash $ 10,766 $ 1,133
Accounts receivable 5,500 32,915
Inventory - 5,500
Prepaid expenses - -
---------- ----------
16,266 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
---------- ----------
$4,082,720 $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>
Six Months ending Year ending
December 31 June 30
1998 1998
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Bank overdraft $ - $ 6,061
Accounts payable 301,565 322,366
Short term loans payable 14,777 80,000
License agreement payable 502,000 537,000
---------- ----------
818,342 945,427
---------- ----------
Stockholders' Equity
Common stock - $,001 Par Value
100,000.000 shares authorized
54,946,018 shares issued 51,196 49,326
Additional paid in capital 6,119,001 6,027,370
Stock subscriptions and options
receivable (45,500)
Deficit accumulated during the
development stage (2,905,819) (2,870,977)
---------- ----------
Total Stockholders' Equity 3,264,378 3,160,219
---------- ----------
$4,082,720 $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 Financial
(Unaudited)
<TABLE>
<CAPTION>
Six Months ending Year Ending
December 31 June 30
1998 1998
<S> <C> <C>
INCOME $ 238,288 $ 665,638
COST OF SALES 77,488 290,086
------------ ------------
GROSS PROFIT 160,800 375,552
OPERATING EXPENSES 195,642 1,290,783
------------ ------------
NET INCOME (LOSS) $ (34,842) $ (915,231)
LOSS ON ABANDONMENT - 157,691
------------ ------------
NET LOSS (34,842) 1,072,922
ACCUMULATED DEFICIT
BEGINNING OF PERIOD (2,870,977) 1,798,055
------------ ------------
ACCUMULATED DEFICIT
END OF PERIOD $ (2,905,819) $ (2,870,977)
============ ============
NET INCOME (LOSS) PER SHARE $ (0.006) $ (0.05)
============ ============
</TABLE>
See accompanying notes to financial statements.
F-2
<PAGE> 5
FIRST AMERICAN SCIENTIFIC CORP.
STATEMENT OF STOCKHOLDERS' EQUITY
See Notes to Financials
(Unaudited)
Six months ending December 31, 1998
<TABLE>
<CAPTION>
Additional
Common Stock Paid-In Retained
Shares Amount Capital Earnings
<S> <C> <C> <C> <C>
Balance
June 30, 1998 49,329,018 49,326 6,027,370 2,870,977
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
Net Loss for the s
six month period
ending December
31, 1998 (34,842)
---------- ------ --------- ---------
51,199,018 51,196 6,119,000 2,836,135
========== ====== ========= =========
</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>
Six Months
ending Year Ending
December 31 June 30
1998 1998
<S> <C> <C>
CASH FLOWS PROVIDED (USED) IN OPERATIONS
Net Income (ion) $ (34,842) $ (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 - 13,5OO
(Increase) decrease in accounts receivable 72,915 (5,475)
Decrease In inventory 5,500 49,876
Decrease in prepaid expenses - 18,836
(Decrease) in accounts payable and
accrued expenses (20,801) (63,683)
Decrease in litigation reserve - (62,061)
(Decrease) in accrued interest - -
---------- ------------
22,772 (798,888)
---------- ------------
CASH FLOWS PROVIDED (USED) IN INVESTING ACTIVITIES
Purchase of plant, property and equipment (355) -
---------- ------------
Deposits - 1,833
---------- ------------
(355) 1,833
CASH FLOWS PROVIDED (USED) IN FINANCING ACTIVITIES
Short Term borrowings 14,777 789,977
Retirement of debt (80,000) -
Payments on short-term borrowings (41,061) (200,000)
Proceeds from sales of stock 93,500 200,000
---------- ------------
(12,784) 780,977
---------- ------------
NET INCREASE (DECREASE) IN CASH $ 9,633 $ (7,078)
CASH - Beginning of period 1,133 8,211
---------- ------------
CASH - End of period $ 10,766 $ 1,133
========== ============
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 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 $ 80,000 $ 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 THE FINANCIAL STATEMENTS
December 31, 1998
See Notes to Financials
(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
December 31, 1998
See Notes to Financials
(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.
F-6
<PAGE> 9
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1998
See Notes to Financials
(Unaudited)
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.
The Company has reported a loss of $34,842 for the period ending
December 31, 1998 bringing accumulated losses to $2,905,819, At
December 31, 1998 the Company had a working capital deficit of
$802,076, down from $905,879 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 it's
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 December 31, 1998.
On February 22, 1996, the Company entered into an additional license
agreement with Spectrasonic 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
December 31, 1998 to $431,506.
F-7
<PAGE> 10
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1998
See Notes to Financials
(Unaudited)
4. TECHNOLOGY LICENSE . . . continued
On May 17, 1996, the Company executed another agreement with
Spectrasonic 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 $500,000 U.S.), 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.
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.
F-8
<PAGE> 11
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1998
See Notes to Financials
(Unaudited)
6. STOCK COMPENSATION PLANS
The Company has adopted it 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 its of
December 31, 1998.
The Company has alto 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 December 31, 1998, 4,300,000
options had been approved and issued to officers. directors and
consultants. Form S-8s 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, all
loans outstanding were converted into shares of common stock.
F-9
<PAGE> 12
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1998
See Notes to Financials
(Unaudited)
7. LOANS . . . continued
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 CA. 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 loan of $80,000 at June 30. 1998 have been converted to
shares of common stock and at December 31, 1998 short term loans
outstanding amounted to $11,000.
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.)
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 IT2. 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.
F-10
<PAGE> 13
FIRST AMERICAN SCIENTIFIC CORP
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1998
See Notes to Financials
(Unaudited)
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 December 31, 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 $(0.006) and
$(0.05) per share for the period ending December 31, 1998 and June
30, 1998.
F-11
<PAGE> 14
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Quarter - Ending December 31, 1998
LIQUIDITY AND CAPITAL RESOURCES
The Company was incorporated on April 12, 1995, to acquire the
licensing rights to development, market, manufacture, distribute, and
sell equipment using the Kinetic Disintegrator System technology, a
highly defined micronizing process using kinetic energy and standing
sound waves. The Company was a development stage company until May 1997
when a plant in Bakersfield, California commenced production of gypsum
and limestone. This proceeded until the plant operation was suspended
July 1, 1998 as the company felt it needed to raise additional working
capital in order to properly finance the operations. The operations
confirmed that the technology successfully created a fine grind of
commercial value. This technology has many other applications,
including rubber, sludge, wallboard, and glass. These applications are
all in various stages of research development. As well, the Company has
sold a Disintegrator System in California where they are processing
contaminated wood waste.
In the six months ending December 31, 1998, sales amounted to
$238,288, which was primarily derived from the sale of a Disintegrator
System. This system was fully paid for prior to delivery.
At December 31, 1998, the Company had a bank balance of $10,766.
Accounts receivable totaled $5,500. Accounts payable at September 30,
1998 amount to $301,565. 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 $502,000.
During the first six months of operation, the Company raised
$93,500 from the sale of common stock. These funds were used to retire
loans outstanding at June 30, 1998 and commissions on funds raised. The
working capital position continues to improve as it amounts to
$(802,076) vs. $(905,879) at June 30, 1998. Management is aware that it
must continue to seek new capital to complete the research on items it
wishes to market.
The Company has sufficient liquidity to maintain its operation
while it continues to seek additional funding.
<PAGE> 15
RESULTS OF OPERATIONS
During the six months ending December 31, 1998, the Company
incurred an operating loss of $34,842. This compares favorably with
operating results for the previous fiscal wherein the loss for the year
amounted to in excess of $1,000,000. The company continues to expend
funds on research, $25,575 for the year to date, primarily in the
sludge process that affects every municipality in North America. The
Company is optimistic that the processing of sludge can be done
significantly cheaper as well as creating a marketable by-product. It
will continue to seek financing to complete this aspect of the
technology.
The Company has reconfigured the machine for biowaste and
completed an 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.
The Bakersfield plant suspended operations on July 1, 1998 as the
company lacked sufficient working capital to operate the plant
effectively. The company is currently seeking a joint venture partner
capable of operating the plant facilities. Discussions are in progress
with a prospective partner.
INFLATION
Inflation has not been a factor in the six months ending December
31, 1998. This is consistent with the 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 DECEMBER 31, 1998
In the fall of 1998, the Company reached agreement with Greenleaf
Fibre Company Ltd of Northern Ireland to conduct research and
development on the commercial viability of the KDS as it relates to the
disintegration of rubber and rubber related products. A KDS system was
shipped to Northern Ireland and installed on their premises. After
studies of the basic technology are completed and any modification of
the basic technology completed, Green Leaf intends to commence pilot
plant testing and it is expected that testing will be complete by the
end of June 1999.
<PAGE> 16
The Company also shipped a KDS unit to a military site in Utah,
to be used by the U.S. military as part of a system for disposal of
contaminated wood products. The unit exceeded the standards for
throughput and particle size during acceptance testing. Installation of
the complete system is scheduled by June 30, 1999.
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.
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 the testing, in the quarter ending
December 31, 1998, is 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> 17
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 December 31, 1998 (Unaudited)
and the Consolidated Statement of Income for the six months ended December
31, 1998 (Unaudited) and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> DEC-31-1998
<CASH> 10,766
<SECURITIES> 0
<RECEIVABLES> 5,500
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 16,266
<PP&E> 4,266,596
<DEPRECIATION> (200,142)
<TOTAL-ASSETS> 4,082,720
<CURRENT-LIABILITIES> 818,342
<BONDS> 0
0
0
<COMMON> 51,196
<OTHER-SE> 6,119,001
<TOTAL-LIABILITY-AND-EQUITY> 3,264,378
<SALES> 238,288
<TOTAL-REVENUES> 238,288
<CGS> 77,488
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 195,642
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (34,842)
<EPS-PRIMARY> (0.006)
<EPS-DILUTED> (0.006)
</TABLE>
