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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended November 30, 1998
Commission File Number: 33-8420-D
MEDTECH, INC.
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(Exact name of small business issuer as specified in its charter)
Nevada 84-1037630
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(State of other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
20750 VENTURA BOULEVARD, SUITE 202, WOODLAND HILLS, CA 91364
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(Address of principal executive offices including zip code)
(818) 710-9813
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(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act 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 X No___
As of November 30, 1998, Registrant had 1,400,230 shares of common stock,
$.001 par value per share, were outstanding.
Transitional Small Business Disclosure Format (check one): Yes__ No X
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INDEX
Page
Number
Part I. Financial Information
Item I. Financial Statements
Balance Sheets as of November 30, 1998
(Unaudited) and May 31, 1998 3
Statements of Operations, Three Months
Ended November 30, 1998 4
Statements of Operations, Six Months
Ended November 30, 1998 5
Statements of Cash Flows, Three Months
Ended November 30, 1998 6
Statements of Cash Flows, Six Months
Ended November 30, 1998 7
Notes to Financial Statements 8
Item 2. Management's Discussion and Analysis of
Financial Conditions and Results of
Operations 9
Part II. Other Information 10
2
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MEDTECH, INC.
BALANCE SHEETS
(Unaudited)
ASSETS
November 30, May 31,
1998 1998
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Current Assets
Cash $ 1,238 $ 617
Advances - related party 12,000 12,000
Other 2,528 2,108
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Total Current Assets 15,766 14,725
Total Assets $ 15,766 $ 14,725
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LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Current Liabilities:
Accounts payable $ 4,442 $ 3,448
Notes payable 35,314 31,314
Other 6,282 4,926
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Total Current Liabilities 46,038 39,688
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Stockholders' (Deficit):
Common Stock, no par value,
100,000,000 shares authorized
1,400,230 shares issued and
outstanding 1,400 1,400
Additional paid-in capital 534,747 534,747
Accumulated deficit (566,419) (561,110)
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Total Stockholders' (Deficit) (30,272) (24,963)
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Total Liabilities and Stockholders'
(Deficit) $ 15,766 $ 14,725
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The accompanying notes are an integral part of the financial statements.
3
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MEDTECH, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended November 30, 1998
Revenues $ 210
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Operating Expenses:
Legal and accounting 827
Interest 706
Other 711
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Total Operating Expenses 2,244
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Net Loss $ (2,034)
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Per Share $ nil
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Weighted Average Number of Shares
Outstanding 1,400,230
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The accompanying notes are an integral part of the financial statements.
4
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MEDTECH, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ended November 30, 1998
Revenues $ 420
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Operating Expenses:
Legal and accounting 2,980
Interest 1,356
Other 1,393
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Total Operating Expenses 5,729
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Net Loss $ (5,309)
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Per Share $ nil
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Weighted Average Number of Shares
Outstanding 1,400,230
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The accompanying notes are an integral part of the financial statements.
5
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MEDTECH, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended November 30, 1998
Cash Flows Operating Activities:
Net (loss) $ (2,034)
(Increase) in accrued interest
receivable (210)
Increase in accrued interest payable 706
(Decrease) in accounts payable (81)
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Net Cash (Used in) Operating
Activities (1,619)
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Cash Flows from Investing Activities -
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Cash Flows from Financing Activities:
Proceeds from notes payable -
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Net Cash Provided by Financing
Activities -
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(Decrease) in Cash (1,619)
Cash, Beginning of Period 2,857
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Cash, End of Period $ 1,238
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Interest Paid $ -
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Income Taxes Paid $ -
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The accompanying notes are an integral part of the financial statements.
6
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MEDTECH, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended November 30, 1998
Cash Flows Operating Activities:
Net (loss) $ (5,309)
(Increase) in accrued interest
receivable (420)
Increase in accrued interest payable 1,356
Increase in accounts payable 994
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Net Cash (Used in) Operating
Activities (3,379)
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Cash Flows from Investing Activities -
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Cash Flows from Financing Activities:
Proceeds from notes payable 4,000
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Net Cash Provided by Financing
Activities 4,000
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Increase in Cash 621
Cash, Beginning of Period 617
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Cash, End of Period $ 1,238
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Interest Paid $ -
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Income Taxes Paid $ -
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The accompanying notes are an integral part of the financial statements.
7
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MEDTECH, INC.
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1998 (Unaudited)
(1) CONDENSED FINANCIAL STATEMENTS
The financial statements included herein have been prepared by Medtech, Inc.
without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in the financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted as allowed by
such rules and regulations, and Medtech, Inc. believes that the disclosures
are adequate to make the information presented not misleading. It is
suggested that these financial statements be read in conjunction with the May
31, 1998 audited financial statements and the accompanying notes thereto.
While management believes the procedures followed in preparing these financial
statements are reasonable, the accuracy of the amounts are in some respect's
dependent upon the facts that will exist, and procedures that will be
accomplished by Medtech, Inc. later in the year.
The management of Medtech, Inc. believes that the accompanying unaudited
condensed financial statements contain all adjustments (including normal
recurring adjustments) necessary to present fairly the operations and cash
flows for the periods presented.
8
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ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Medtech, Inc. (the "Company") was organized as a Nevada corporation under the
name "High Hopes, Inc." on August 24, 1986, in order to evaluate, structure
and complete a merger with, or acquisition of, prospects consisting of private
companies, partnerships of sole proprietorships.
The Company generated minimal revenues during the quarter ended November 30,
1998, and the Company's capital as of November 30, 1998 was very limited.
At November 30, 1998, the Company had no material commitments for capital
expenditures.
On January 7, 1999, Medtech, Inc. (formerly "High Hopes, Inc.") (the
"Company") completed the acquisition of certain rights to a JAVA-based, on-
line healthcare management system in exchange for 41,417,176 shares (post-
split) of the Company's common stock (approximately 80% of the shares now
outstanding). In connection with this transaction, the Company completed a 5
for 1 forward stock split having a record date of January 4, 1999.
Please see the Company's report on Form 8-K dated January 7, 1999 for further
information on this transaction.
YEAR 2000 COMPLIANCE
The Company is aware of the issues associated with the programming code in
existing computer systems as the year 2000 approaches. Prior to the recent
transaction discussed above, the Company had assessed these issues as they
related to the Company, and since the Company had no operating business and
did not use any computers, and since it has no customers or suppliers, it did
not have any year 2000 issues to disclose.
Now that the Company has a business and new management, a reassessment of the
year 2000 issues is necessary. Management intends to complete this assessment
during the first calendar quarter of 1999 and the results will be reported on
the next Form 10-Q.
9
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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 MATTERS TO A VOTE OF SECURITY HOLDERS. None.
ITEM 5. OTHER INFORMATION. None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
Exhibit 27 Financial Data Schedule Filed herewith
electronically.
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.
MEDTECH, INC.
Date: January 19, 1999 By:/s/ John F. Andrews
John F. Andrews, President
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<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
balance sheet and statements of operations found on pages 3 and 4 of the
Company's Form 10-QSB for the year to date, and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-END> NOV-30-1998
<CASH> 1,238
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
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<CURRENT-ASSETS> 15,766
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 15,766
<CURRENT-LIABILITIES> 46,038
<BONDS> 0
0
0
<COMMON> 1,400
<OTHER-SE> (31,672)
<TOTAL-LIABILITY-AND-EQUITY> 15,766
<SALES> 0
<TOTAL-REVENUES> 420
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 5,729
<LOSS-PROVISION> 0
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<NET-INCOME> (5,729)
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