SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 18, 1998
BEST MEDICAL TREATMENT GROUP, INC.
(Exact name of registrant as specified in its charter)
GAENSEL GOLD MINES, INC.
(Former Name)
Nevada
(State or other jurisdiction of incorporation)
0-12825 84-0916272
(Commission File Number) (IRS Employer Identification No.)
45110 Club Drive, Suite B, Indian Wells, California 92210
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (619) 360-1042
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Item 5. Other Events
Gaensel Gold Mines, Inc. (the "Registrant") has changed its name to
Best Medical
Treatment Group, Inc.; Lifeline Medical Information Systems, Inc., a subsidiary
of the Registrant,
has changed its name to Best Medical Treatment, Inc. ("Best Medical").
Best Medical is a medical information company that is able to match
the needs of an individual foreign patient with the best doctors and hospitals
in the United States capable of treating the patient
Over 100 million people, living outside the United States, can afford
medical treatment in the US. The United States is recognized throughout the
world as having the most advanced medical treatment available. In the past year
John Hopkins Hospital had an increase from 600 foreign patients to over 6,000.
To identify the best doctors and hospitals in the United States, Best
Medical developed a proprietary search protocol and rating system that covers
over 5,000 US hospitals, 600,000 US physicians, 4,000 medical journals,
10,000,000 medical references, 100 medical data bases, and numerous surveys
rating doctors and hospitals.
Many financially capable foreign patients don't seek treatment in the
United States. Management believes that most foreigners are intimidated by the
many barriers involved in the process. Foreign physicians and patients are not
knowledgeable of which US doctors and hospitals are leaders in a particular
specialty. Language and cultural barriers, transfer of foreign language medical
records, financial arrangements, visas, passports, and travel logistics, are all
obstacles. Best Medical manages all of the above matters, plus many others, to
remove all barriers to medical treatment in the United States.
To arrange treatment by the best doctors and best hospitals in the
United States, Best Medical first had to determine the identity of the best
doctors and hospitals. This necessitated that Best Medical established criteria
to enable the company to rate doctors and hospitals, on a specialty by specialty
basis. In specialties such as AIDS, cardiology, cancer, organ transplants, etc.
a heavy emphasis was placed on mortality rates. In specialties such as
pediatrics, psychiatry, ophthalmology, and rehabilitation, emphasis is placed
elsewhere. Best Medical then conducted multidimensional research on over 5,000
US hospitals and 600,000 US physicians, 20,000 medical journals, 185 medical
data bases, and numerous surveys rating doctors and hospitals.
After accessing Best Medical's internal medical library/database the
company conducts an outside search following a proprietary search protocol. The
protocol calls for an systematic search of multiple medical data bases, medical
libraries and medical journals. The search also encompasses accessing government
reports publications, and medical certification and disciplinary boards. At the
conclusion of the search, Best Medical is able to match the best qualified US
physicians and hospitals to the precise medical needs of a particular patient
Once advised of a patients diagnosis and medical needs, Best Medical
commences a search to determine the three best doctor-hospital combinations in
the US most capable of treating that particular patient. The search research
results immediately communicated to the patient's physician by telephone,
followed by a full written report sent by overnight mail. The report will
<PAGE>
explain why each doctor-hospital team was selected along with detailed
information on their history and capabilities.
Once a patient makes a selection, Best Medical will make all of the
arrangements for the patient to come under the care of the selected physician
and hospital. This service includes transfer of medical records, arranging for
the selected doctor and hospital team to treat the patient, cost estimates from
physicians and hospitals, travel arrangements, visas and passports, travel
arrangements, housing, and payment arrangements.
Best Medical receives a discount from hospitals and physicians
similar to an insurance company or Health Maintenance Organization. This
discount ranges from 10% to 30% depending of the particular doctor and hospital.
Best Medical passes the entire discount on to the patient. This discount will
more than reimburse the patient for Best Medical's fees. For researching and
identifying the three best hospitals and doctors in the United States Best
Medical charges a fee of $3,500. For making all of the medical arrangements for
a patient to come under the care of the selected physician and hospital, Best
Medical charges a fee equal to 10% of the costs of the medical costs.
Best Medical is a true information age company. Without the Internet
and the World Wide Web, Best Medical could not exist. Best Medical's core asset
is its medical library/database and search protocol. Best Medical's information
is partly contained in medical textbooks, partly in cyberspace, and partly on
the Company's inhouse computers. Best Medical's medical/database is so new and
unique that there are no copyright laws to protect Best Medical's database from
being cloned or pirated. To protect its library/database, Best Medical stores
parts of its database on different computers, at different locations. Best
Medical's core computer, which contains search protocols and indexes, is under
the joint control of the CEO and Executive Vice President of the company and
never "on line".
Most of the information needed to determine the best doctors and
hospitals is already in Best Medical's database. Prior to producing report Best
Medical conducts an on line search to determine whether any new data is
available anywhere in the United States that could influence our recommendation.
The total research cost is approximately $500, while the average cost to make
arrangements with the selected physician and hospital is about $500. The average
fee is expected to be $10,000, leaving $9,000 after costs.
Best Medical will market its service to through foreign physicians
and hospitals. The company will attend medical conventions and seminars in
foreign countries. Best Medical believes doctors will use our service once we
have an opportunity to demonstrate or research ability.
Best Medical will introduce its service in South America, in spring
1998. The introduction is expected to take six months, after which the company
will add staff in the US and commence commercial operations. Best Medical
anticipates expansion into Central America and Mexico in the last quarter of
1999. In 1999 the company expects to introduce its services in both the Middle
East and China.
The principal market that might be difficult for Best Medical is
Western Europe, where the quality of medical treatment is high and many patients
may not feel the need to be treated
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in the United States.
Safe Harbor under the Private Securities Litigation Reform Act of 1995
The Private Securities Litigation Reform Act of 1995 (the "Act") provides a
"safe harbor" for forward-looking statements to encourage companies to provide
prospective information about their companies, so long as those statements are
identified as forward-looking and are accompanied by meaningful cautionary
statements identifying important factors that could cause actual results to
differ materially from those discussed in the statement. The Company desires to
take advantage of the "safe harbor" provisions of the Act. Certain information,
particularly information regarding future economic performance and finances and
plans and objectives of management, contained in this Current Report on Form
8-K.
Financial Information
The following financial information is presented regarding the
Registrant. See the Registrant's Form 10-Q for the Quarterly Period Ended July
31, 1997.
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<TABLE>
<CAPTION>
GAENSEL GOLD MINES, INC. & SUBSIDIARY
(A Company in the Development Stage)
BALANCE SHEET
July 31, April 30,
ASSETS 1997 1997
CURRENT ASSETS
<S> <C> <C>
Cash and Equivalents $ 10,048 $ 18,876
Stock Subscription Receivable 800 800
Prepaid Rent 1,997 1,997
Deposits 30,000 -
Total Current Assets $ 42,845 $ 21,673
OTHER ASSETS
Property & Equipment - Net 136,564 155,957
Intangibles 1 1
Organization Costs - Net 466 -
Total Other Assets 137,031 155,598
TOTAL ASSETS $ 179,876 $ 177,631
LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts Payable $ 7,635 $ 7,635
Accrued Expenses 4,732 3,000
Advamces Related Parties 12,861 -
TOTAL LIABILITIES $ 25,228 $ 10,635
STOCKHOLDERS' EQUITY
Common Stock 1,018 1,018
Additional paid in capital 560,862 560,862
(Deficit) accumulated during
development stage (407,232) (394,884)
TOTAL STOCKHOLDERS'
TOTAL EQUITY 154,648 166,996
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 179,876 $ 177,631
</TABLE>
See accompanying Notes to Financial Statements
- 2 -
<TABLE>
<CAPTION>
GAENSEL GOLD MINES, INC. & SUBSIDINARY
(A Company in the Development Stage)
STATEMENT OF 0PERATIONS
For Three Months Ended For Nine Months Ended
July 31, July 31
1997 1996 1997 1996
<S> <C> <C> <C> <C>
REVENUES $ - - $ - -
COSTS AND EXPENSES
Selling, General and
Administrative 20,745 - 32,662 100,000
INCOME (LOSS) FROM
OPERATIONS $ (20,745) - $ (32,662) (100,000)
NON OPERATING
INCOME - - - -
INTEREST INCOME
(EXPENSE) - - - -
NON OPERATING
(EXPENSE) - - - -
NET INCOME (LOSS)
ACCUMULATED DURING
DEVELOPMENT STAGE $ (20,745) - $ (32,662) (100,000)
Income (Loss) Per Share $ (0.02) - $ (0.03) $ (0.05)
Weighted Average Number
of Shares 1,018,379 1,018,379 1,018,379 2,072,925
Shares Outstanding 1,018,379 2,079,925 1,018,379 2,072,925
</TABLE>
See accompanying Notes to Financial Statements
- 3 -
<TABLE>
<CAPTION>
GAENSEL GOLD MINES, INC. & SUBSIDIARY
(A Company in the Development Stage)
STATEMENT OF CASH FLOWS
For Nine Months Ended For Three Months Ended
July 31, July 31
1997 1997 1997 1997
<S> <C> <C> <C> <C>
Net Income(Loss) $ (100,000) (304,530) (100,000) (20,745)
Adjustments -
shares issued for services 100,000 - 100,000 -
Increase in Other Assets - (466) - (466)
Depreciation - 19,393 - 19,393
Increase in Accrued Expenses - 4,732 - 1,732
Increase in Prepaid Rent - (1,997) - -
Increase in Stock Subscription
Receivable - (800) - -
Increase in Advances from
Related Parties - 12,861 - 12,861
Increase in Deposits - (30,000) - (30,000)
CASH (USED) BY
OPERATING ACTIVITIES - (300,807) - (17,225)
CASH (USED) IN INVESTING
ACTIVITIES; ACQUISITION
PROPERTY & EQUIPMENT - (155,957) - -
SUB TOTAL - (456,764) - (17,225)
CASH FLOW FROM FINANCING
ACTIVITIES; ISSUANCE OF
COMMON STOCK - 466,236* - 8,397*
INCREASE(DECREASE)
IN CASH - 9,472 - (8,828)
BEGINNING CASH BALANCE - 576 - 18,876
ENDING CASH BALANCE $ - 10,048 - 10,048
*Corrections to prior Quarter 4/30/97
</TABLE>
See accompanying Note to Financial Statements
<PAGE>
- 4 -
GAENSEL GOLD MINES, INC. & SUBSIDIARY
(A Company in the Development Stage)
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
JULY 31, 1997
1. General
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
July 31, 1997, the results of operation for the three and nine months ended July
31, 1997 and 1996, and the cash flows for the three and nine months ended July
31, 1997 and 1996. Certain information and footnote disclosures normally
included in financial statements that have been prepared in accordance with
generally accepted accounting principles have been condensed or omitted pursuant
to the rules and regulations of the Securities and Exchange Commission, although
management of the Company believes that the disclosure in these financial
statements are adequate to make the information presented therein not
misleading. For further information, refer to the financial statements and
footnotes thereto for the fiscal year ended October 31, 1996 included in the
Company's Form 10-K and the prior Quarterly 10Qs filed for the periods ending
January 31, and April 30, 1997.
The results of operations for the three and nine months ended July 31,
1997, are not necessarily indicative of the results of operations to be expected
for the full fiscal year ending October 31, 1997.
2. Shareholder's Equity
The Company effected a 1-for-10 reverse stock split in February, 1997
and issued 800,000 additional shares to aqcuire Lifeline Medical Information
Systems, Inc. ("Lifeline"). For further information, refer to the financial
statements and footnotes thereto for the prior quarter ending April 30, 1997
included in the Company's form 10Q.
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: January 16, 1998 GAENSEL GOLD MINES, INC.
<PAGE>
By: /s/ Robert Filiatreaux
Name: Robert Filiatreax
Title: President
