SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[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
__________________ to __________________
Commission File Number 0-23957
MEDITECNIC, INC.
(Exact Name of Registrant as specified in its Charter)
Delaware 87-0430532
(State or other Jurisdiction of I.R.S. Employer Identi-
Incorporation or Organization fication No.)
24351 Pasto Road, Suite B, Dana Point, California 92629
(Address of Principal Executive Offices) (Zip Code)
(949) 489-2400
(Registrant's Telephone Number, including Area Code)
Indicate by check mark whether the Registrant (i) 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 (of for such shorter period that the
Registrant was required to file such reports) and (ii)
has been subject to such filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's
classes of Common
Stock, as of the latest practicable date.
Common Stock, $.001 par value 7,527,588
Title of Class Number of Shares outstanding
at September 30, 1998
No exhibits included.
1
<PAGE>
MEDITECNIC, INC.
(A Company in the Development Stage)
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
December 31, September 30,
1998 1998
Current Assets
<S> <C>
Cash and Cash Equivalents 2,409,899
Total Current Assets 2,409,899
Other Assets - Patents 637,260
TOTAL ASSETS $ $ 3,047,159
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES - Accounts payable $ $
STOCKHOLDERS' EQUITY
Preferred Stock, $.001 par value; 1,000,000 shares
authorized; 1,000 shares of Series A Preferred
Stock issued and outstanding 1
Common Stock, $.001 par value; 20,000,000 shares
authorized; 27,588 and 7,527,588 shares issued
and outstanding 28 7,528
Additional paid-in Capital 1 3,075,055
Accumulated deficit during the development stage 28 (35,425)
TOTAL STOCKHOLDERS' EQUITY 3,047,159
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ $ 3,047,159
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
MEDITECNIC, INC.
(A Company in the Development Stage)
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
CUMULATIVE
FOR THE NINE MONTHS FOR THE THREE FROM
ENDED MONTHS ENDED September 7, 1994
September 30, September 30, TO
1998 1997 1998 1997 September 30, 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REVENUES $ -0- $ -0- $ -0- $ -0- $ -0-
OPERATING EXPENSES
General and Administrative 25,368 12,201 37,335
Research and Development 20,752 18,520 20,752
TOTAL OPERATING EXPENSES 46,120 30,721 57,907
Net Operating Income (46,120) (30,721) (57,907)
OTHER INCOME (LOSS)
Interest Income
Interest Expense (1,832) (1,638) 1,832
Foreign Currency Gains (Losses) 12,556 12,689 12,555
Total Other Income 10,724 11,051 14,387
NET (LOSS) $ (35,396) (19,670) $ (43,520)
NET (LOSS) PER SHARE $ (Nil) $ (Nil) $ (Nil) $ $ (.01)
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 424,000 27,588 424,600 27,588 420,491
</TABLE>
See accompanying Notes to Financial Statements.
3
<PAGE>
MEDITECNIC, INC.
(A Company in the Development Stage)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
CUMULATIVE
FOR THE NINE MONTHS FOR THE THREE FROM
ENDED MONTHS ENDED September 7, 1994
September 30, September 30, TO
1998 1997 1998 1997 September 30, 1998
CASH FLOWS FROM OPERATING
ACTIVITIES
<S> <C> <C> <C>
Net (Loss) $ (35,396) $ $ (19,678) $ $ (43,520)
Add item not requiring the
use of cash 271
Increase (decrease) in accounts
payable - patent (587,048) 591
Net cash flows from operating
activities (35,396) (606,718) (975)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Patent (637,260) (271)
CASH FLOWS FROM FINANCING
ACTIVITIES
Contribution to Capital 1,939
Sale of Common Stock 3,082,556 2,980,821 746
Net Cash flows from financing
activities 3,082,556 2,980,821 1,246
NET INCREASE (DECREASE) IN CASH 2,409,899 2,374,103 (763)
CASH BALANCE AT BEGINNING
OF PERIOD 35,805
CASH BALANCE AT END OF
PERIOD $ 2,409,899 $ -- $ 2,409,899 $ $ 2,409,899
Supplemental Cash Flow Information
Cash Paid for
Taxes 1,106
Interest
Shares issued for payment of
payables and expenses 14,500
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
MEDITECNIC, INC.
(A Company in the Development Stage)
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
September 30, 1998
1. Comments
The accompanying financial statements are unaudited, but in the opinion
of the management of the Company, contain all adjustments, consisting of only
normal recurring accruals, necessary to present fairly the financial position
at December 31, 1998, the results of operations for the three and nine months
ended September 30, 1998 and 1997, and the cash flows for the three and nine
months ended September 30, 1998 and 1997.
Reference is made to the Company's Form 10-SB. The results of
operations for the three and nine months ended September 30, 1998 are not
necessarily indicative of the results of operations to be expected for the
full fiscal year ending December 31, 1999.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
The Company has limited working capital and no activities.
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS - None
Item 2. CHANGES IN SECURITIES - None
Item 3. DEFAULTS UPON SENIOR SECURITIES - None
Item 4. SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS - None
Item 5. OTHER INFORMATION - None
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibits--None
Reports on Form 8-K--None.
5
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, th
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MEDITECNIC, INC.
Date: January 10, 2000 By:
/s/ Finn Robert-Tissot
Chief Financial
Officer (chief financial officer
and accounting officer and duly
authorized officer)
6
<PAGE>