U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-QSB
(Mark One)
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT OF 1934
For the transition period from_______________ to___________________
Commission File Number: 33-27610-A
MEDICAL TECHNOLOGY & INNOVATIONS, INC.
(Exact name of small business issuer as specified in its charter)
Florida 65-2954561
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
615 Centerville Road, Lancaster, PA 17601
(Address of principal executive offices) (Zip Code)
(717) 892-6770
(Issuer's telephone number, including area code)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 March 31, 1999 27,410,010 shares of Common Stock, no par value, of
the registrant were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE:
Portions of the registrant's annual report filed with the Securities and
Exchange Commission on Form 10-KSB, filed November 6, 1998.
<PAGE>
MEDICAL TECHNOLOGY & INNOVATIONS, INC,
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
March 31, 1999 and June 30, 1998 F-4
Condensed Consolidated Income Statements
For the Three and Nine Months ended
March 31, 1999 and 1998 (Unaudited) F-5
Condensed Consolidated Statements of Stockholders'
Equity (Unaudited) F-6
Condensed Consolidated Statements of Cash Flows
For the Nine Months ended March 31, 1999 and 1998 (Unaudited) F-7
Notes to Condensed Consolidated
Financial Statements F-8
Item 2. Management's Discussion and Analysis or
Plan of Operation 9
Item 4. Submission of Matters to a Vote of
Security Holders 11
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 14
<PAGE>
PART I
Item 1. Financial information
<PAGE>
Medical Technology & Innovations, Inc.
Condensed Consolidated Balance Sheets
March 31, 1999 and June 30, 1998
Assets
<TABLE>
<CAPTION>
March 31, 1999 June 30,
(Unaudited) 1998
----------- ----
<S> <C> <C>
Current Assets
Cash and cash equivalents $27,741 $38,247
Accounts Receivable, less allowances of
$36,367, respectively 437,671 287,114
Inventory 576,842 393,148
Prepaid Expenses 71,970 30,740
----------- ---------
Total Current Assets 1,114,224 749,249
--------- --------
Fixed Assets
Land 182,000 382,000
Equipment, less accumulated depreciation
of $455,599 and $364,567, respectively 688,204 829,537
----------- ----------
Fixed Assets, net 870,204 1,211,537
Other Assets
Intangible and Other Assets 2,177,748 2,345,530
---------- ----------
Total Assets $4,162,176 $4,306,316
========== ===========
</TABLE>
<TABLE>
<CAPTION>
Liabilities and Stockholders' Equity
Current Liabilities
<S> <C> <C>
Accounts Payable $512,782 $505,824
Accrued Liabilities 540,956 370,558
Current Maturities of Long-Term Debt 1,174,683 1,035,872
--------- -----------
Total Current Liabilities 2,228,421 1,912,254
Long-Term Debt, Net of Current Maturities 493,281 1,117,545
----------- ----------
Total Liabilities 2,721,702 3,029,799
--------- ----------
Stockholders' Equity
Common Stock, no par value, authorized
700,000,000 shares, outstanding 27,410,010
and 26,385,279 shares, respectively 10,091,183 9,632,183
Series A Convertible Preferred Stock, $100
par value, authorized 70,000 shares,
outstanding nil - 0 - - 0 -
Series B Convertible Preferred Stock,
$100 par value, authorized 1000 shares,
267 outstanding 1,602,000 1,602,000
Preferred Stock, authorized 100,000,000 shares
$1,000 par value, 12%, noncumulative,
Outstanding 22.5 shares 22,500 22,500
Treasury Stock, at cost (309,742) (309,742)
Accumulated Deficit (9,965,467) (9,670,424)
---------- ----------
Total Stockholders' Equity 1,440,474 1,276,517
--------- ---------
Total Liabilities and Stockholders' Equity $4,162,176 $4,306,316
=========== ==========
</TABLE>
The accompanying notes are an integral part of the condensed
financial statements.
F-4
<PAGE>
Medical Technology & Innovations, Inc.
Condensed Consolidated Income Statements
For the Three Months and Nine Months Ended March 31, 1999 and 1998 (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues $1,090,965 $1,315,277 $4,263,047 $3,725,277
Cost of Goods Sold 691,750 756,704 2,401,530 2,406,877
---------- ---------- ---------- -----------
Gross Profit 399,215 558,573 1,861,517 1,318,400
---------- ---------- ---------- -----------
Operating Expenses
Advertising 4,900 30,652 21,063 101,398
Selling, General,
and Administrative 721,783 678,592 2,001,107 1,932,462
---------- ---------- ---------- -----------
Total Operating Expenses 726,683 709,244 2,022,170 2,033,860
---------- ---------- ---------- -----------
Income (Loss) from Operations (327,468) (150,671) (160,653) (715,460)
Interest expense, net 48,083 51,356 134,390 176,672
---------- ---------- ---------- -----------
Net (Loss) from Operations ($375,551) ($202,027) ($295,043) ($892,132)
========== ========== ========== ===========
Add: Gain on Restructuring of
Series A Preferred Stock - 0 - - 0 - - 0 - 948,163
---------- ---------- ---------- -----------
Net Income (Loss) Attributable
to Common Stock ($375,551) ($202,027) ($295,043) $56,031
========== ========== ========== ===========
Net Operating (Loss) per common
share(basic and diluted)(*) ($.015) ($.011) ($.014) ($.047)
========== ========== ========== ===========
Net(Loss) per common share after
Gain on Restructuring of
Series A Preferred Stock(*) ($.015) ($.011) ($.014) ($.001)
========== ========== ========== ===========
Weighted Average Outstanding
Shares 27,016,345 20,499,802 27,016,345 20,499,802
========== ========== ========== ===========
</TABLE>
(*) Calculated including Series B Preferred Stock accretion of $32,040 for the
three month periods ended March 31, 1999, and 1998; and $96,120 and $64,080 for
the nine month periods ended March 31, 1999 and 1998, respectively.
The accompanying notes are an integral part of the condensed
financial statements.
F-5
<PAGE>
Medical Technology & Innovations, Inc.
Consolidated Statements of Stockholders' Equity (Unaudited)
For the Years Ended
<TABLE>
<CAPTION>
Series A Series B
Convertible Convertible Total
Common Common Preferred Preferred Preferred Treasury Accumulated Stockholders
Shares Stock Stock Stock Stock Stock Deficit Equity
------ ----- ----- ----- ----- ------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at June 30, 1996 12,147,299 $4,147,140 $56,000 ($250,000)($4,675,501) ($722,361)
Sale of 70,000 Series A
Convertible Preferred Stock,
Net of issuance costs $6,220,700 6,220,700
Conversions of Preferred Stock
Into Common Stock 3,697,576 1,846,390 (1,812,890) (33,500)
Exercise of Stock Options 194,737 292,105 292,105
Issuance of Common Stock 532,898 270,250 270,250
Stock Issued for Services 215,000 199,375 199,375
Purchase of Treasury Shares (56,781) (59,742) (59,742)
Net Loss (3,507,559) (3,507,559)
---------- ---------- ---------- ---------- ---------- -------- ---------- ----------
Balance at June 30, 1997 16,730,729 $6,755,260 $4,407,810 $22,500 ($309,742)($8,183,060) $2,692,768
---------- ---------- ---------- ---------- ---------- -------- ---------- ----------
Net Loss (1,487,364) (1,487,364)
Issuance of Common Stock 144,509 25,000 25,000
Stock Issued for Services 1,156,864 296,113 296,113
Conversion of Series A Preferred
Stock into common stock 7,853,177 1,531,647 (1,531,647)
Conversion of subscribed Series A 500,000 76,000 (76,000)
Preferred Stock into common stock
Gain on Restructuring of Series A
Preferred Stock 948,163 (1,198,163) (250,000)
Issuance of Series B Preferred
In exchange for Series A Preferred (1,602,000) 1,602,000
---------- ---------- ---------- ---------- ---------- --------- ---------- ----------
Balance at June 30, 1998 26,385,279 $9,632,183 -0- $1,602,000 $22,500 ($309,742)($9,670,424) $1,276,516
---------- ---------- ------------ ---------- ---------- --------- ----------- ----------
Net Income(Loss) ($295,043) (295,043)
Stock Issued for Services 299,731 82,250 82,250
Conversion of Subordinated
Notes into common stock 725,000 376,750 376,750
---------- ---------- ------------ ---------- ---------- --------- ----------- ----------
Balance at March 31,1999 27,410,010 $10,091,183 -0- $1,602,000 $22,500 ($309,742)($9,965,467) $1,440,474
========== =========== ============ ========== ========= ======== ========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-6
<PAGE>
Medical Technology & Innovations, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
For the Nine Months Ended March 31, 1999 and 1998
<TABLE>
<CAPTION>
Nine Months Ended March 31,
1999 1998
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net Loss ($295,043) ($892,132)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and Amortization 249,115 266,911
(Increase) in Accounts Receivable (150,557) (188,863)
(Increase) Decrease in Inventory (183,694) 216,330
(Increase) Decrease in Prepaid Expenses (41,230) 3,487
Increase in Accounts Payable 6,958 98,500
Increase in Accrued Liabilities 170,398 88,355
Stock issued for services 82,250 197,584
---------- --------
Net cash (used) in operating activities (161,803) (209,828)
Cash flows from investing activities:
Sale of Headquarters Land and Building 260,000 -0-
Purchase of Fixed Assets - 0 - (4,590)
---------- -------
Net cash from (used) investing activities 260,000 (4,590)
Cash flows from financing activities:
Costs incurred for restructuring of
Series A Preferred Stock, net - 0 - (320,000)
Proceeds from issuance of stock, net 50,000
Proceeds from issuance of notes payable 125.297 806,729
Repayment of notes payable, net (234,000) (192,927)
--------- ---------
Net cash from (used in) financing activities (108,703) 343,802
Net increase (decrease) in cash and cash equivalents (10,506) 129,384
Cash and cash equivalents at beginning of period 38,247 58,090
--------- ----------
Cash and cash equivalents at end of period $27,741 $187,474
========= ========
</TABLE>
The accompanying notes are an integral part of the condensed financial
statements.
F-7
<PAGE>
Medical Technology & Innovations, Inc.
Notes to Condensed Consolidated Financial Statements
1. CONDENSED FINANCIAL STATEMENTS. The unaudited condensed consolidated
financial information contained in this report reflects all adjustments
(consisting of normal recurring accruals) considered necessary, in the
opinion of management, for a fair presentation of results for the interim
periods presented. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted. These
financial statements should be read in conjunction with the financial
statements and notes thereto included in the Company's June 30, 1998 Annual
Report on Form 10-KSB. The results of operations for periods ended March 31
are not necessarily indicative of operations for the full year.
2. STOCK OPTION PLANS. In October of 1995 officers of the Company were granted
options to acquire up to 2.0 million shares of common stock at an exercise
price of $1.50 per share. The options are exercisable ratably over a three
year period commencing with the quarter ending June 30, 1996.
In April of 1996 the Company's shareholders approved the 1996 Stock Option
Plan, which allows the board of directors to grant up to 3.0 million
options. During fiscal 1998 and fiscal 1999, 500,000 and 120,000 options
respectively, have been granted.
In September of 1997 and February of 1998, the Board of Directors reduced
the exercise price on all options granted to Company Executives to $.25.
The following is a summary of stock option transactions:
Outstanding, July 1, 1998 3,239,936
Options granted 120,000
Options exercised 0
Options cancelled (689,936)
Outstanding, March 31, 1999 2,670,000
Exercisable, end of period 2,196,667
3. PREFERRED STOCK. The Company has three classes of preferred stock. The
$1,000 par value convertible preferred stock is convertible into 14,985
shares of the Company's common stock
The Series A convertible preferred stock was convertible into approximately
30 million shares of the Company's common stock as of September 30, 1997.
The Series A preferred stock conversion rate was the lower of the
approximate market rate or $2.72.
During September of 1997, the Company renegotiated terms with the Series A
Preferred Shareholders and as a result, all Series A Preferred Shares were
exchanged for a combination of cash, common stock, a new Series B Preferred
stock and an amended warrant certificate with an exercise price of $1.00
per share in cash. Series A Preferred shareholders owning 217 outstanding
shares elected to receive $3,800 in cash in exchange for their Series A
Preferred shares with a face value of $10,000. Series A Preferred
shareholders owing 267 outstanding shares agreed to exchange their Series A
Preferred shares for a new Series B Preferred share with
<PAGE>
a $100 par value, a face value of $6000 with accretion at 8% from October
1, 1997 plus 10,000 shares of the Company's common stock. The new Series B
Preferred stock is convertible into common stock beginning October 1, 1998
at a fixed conversion price of $1.00 per share. Conversion is limited to
10% per month of the shares held until February 28, 1999 and 20% per month
thereafter. The conversion feature doubles provided the Company's common
stock closing bid price for ten consecutive days is greater than $2.00 per
share. The Company has the option of redeeming the Series B Preferred
shares at any time in cash, at 110% of the original face value of the
Series B Preferred shares including accretion, or in the Company's common
stock valued at the average closing bid price for the 30 days prior to the
redemption at 120% of the original face value of the Series B Preferred
shares including accretion. The Company is required to redeem the Series B
Preferred stock on September 30, 2000. The common stock issued to Series B
Preferred shareholders is subject to the following lockup schedule: Maximum
Date Tradeable
December 1, 1997 250 shares
January 1, 1998 750 shares
February 1, 1998 1,500 shares
April 1, 1998 2,500 shares
July 1, 1998 5,500 shares
October 1, 1998 10,000 shares
As a result of the restructuring of the Series A Preferred Stock, the
common stock holders have received a gain of approximately $948,000.
4. WARRANTS. The Company has issued warrants to purchase 3.6 million shares of
common stock as of March 31, 1999. The warrants relate to grants made in
connection with an equity issuance and various services rendered. The
warrants can be exercised at prices ranging from $1.00 to $2.72 per share.
2.5 million warrants expire in July 2001. Pursuant to terms renegotiated in
September of 1997 between the Company and holders of Series A Preferred
Shares issued in July of 1996, the exercise price of approximately 1.8
million warrants was reduced from $2.72 to $1.00.
Item 2. Management's Discussion and Analysis or Plan of Operation
This analysis should be read in conjunction with the condensed consolidated
financial statements, the notes thereto, and the financial statements and notes
thereto included in the Company's June 30, 1998 Annual Report on Form 10-KSB.
All nonhistorical information contained in this Form 10-QSB is a forward-looking
statement. The forward looking statements contained herein are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those reflected in the forward looking statements. Factors that
might cause such differences include, but are not limited to the following, a
slower acceptance of the MTI PhotoscreenerTM in the marketplace, increased
foreign competition putting pricing pressures on Steridyne products, changes in
economic trends and other unforeseen situations or developments. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
reflect management's analysis only as of the date hereof.
<PAGE>
Results of Operations
Comparison of Nine Month Periods Ended March 31, 1999 and 1998
Revenues for the first nine months of fiscal 1999 increased by $537,770 from
$3,725,277 in fiscal 1998 to $4,263,047 in fiscal 1999 or a 14% increase. This
increase results because of increased demand for the MTI PhotoScreener(TM) from
retail optical chains and service clubs. Gross profit of $1,861,517 for the
first nine months of fiscal 1999 increased by 41% versus the comparable period
in fiscal 1998 mostly due to sales increases and mix as overall margins are
comparable between the two periods. MTI products generally have higher profit
margins than Steridyne products.
Operating expenses for the first nine months of fiscal 1999 were $2,022,170
versus $2,033,860 in the comparable period in fiscal 1998. This nominal
reduction would have increased if certain redundancy costs would not have
occurred. The loss from operations for the first three quarters ended March 31,
1999 was $160,653 compared to $715,460. This dramatic improvement results from
continued increases in sales of the MTI PhotoScreener(TM) to retail optical
chains in the US and international markets primarily during the first two
quarters of fiscal 1999. Interest expense decreased 24% compared to the prior
fiscal year primarily as a result of the sale of the headquarters building and
subsequent mortgage payoff and a conversion of $376,750 of convertible notes
into common stock in July of 1998.
Management expects a lower net loss for the fourth fiscal quarter of 1999
because of increased sales, continued cost controls, and the elimination of
certain redundancy costs.
Liquidity and Capital Resources
At March 31, 1999 the Company had cash of $27,741 and working capital of
($1,114,197) as compared to $38,247 and ($1,163,005) at June 30, 1998. Included
in current maturities of long term debt at March 31, 1999 and June 30, 1998 is
approximately $800,000 of secured notes incurred to fund the Series A
restructuring which are repayable or convertible into Company Common Stock at
the end of March, 1999. The Company is currently in discussion with these note
holders to review possible alternatives to refinance this borrowing.
In September of 1997 the Company reached an agreement with the holders of the
Series A Preferred shares issued in July of 1996 to amend certain terms and
conditions of the issue subject to the Company completing the required
financing. All Series A Preferred shareholders were given the choice of electing
("Option 1") a cash payment of $3,800 per share or ("Option 2") 10,000 shares of
the Company's common stock and a new Series B Preferred share with a $6,000 face
in exchange for 1 share of the original Series A Preferred. All Series A
Preferred shareholders will also have the exercise price reduced on all warrants
applicable to tendered Series A Preferred Shares from $2.72 to $1.00. The new
Series B Preferred Stock is convertible into common stock of the Company from
October 1, 1998 at a fixed price of $1.00. Conversion is limited to 10% of the
holding for the first four months following October 1, 1998 then it is increased
to 20% per month thereafter. The Series B Preferred stock can be redeemed by the
Company at any time in cash at 110% of the face value or in common stock at 120%
of the face value, with mandatory redemption required by September 30, 2000.
Over 60% of the parties who purchased the Series A Preferred shares and
converted them into shares of the Company's common stock agreed to a lock-up
which limited sales to 8% of the amount purchased per month with no limit on
salability after October 1, 1998. Common stock issued to Series A Preferred
Stockholders electing Option 2 was subject to a lock-up which ended on October
1, 1998.
In connection with securing financing for Option 1 of the Series A Preferred
restructuring, the Company raised an additional $719,000 for general working
capital purposes. The Company recruited new senior management
<PAGE>
who instituted significant reductions in employees, inventory management
programs and cutbacks in operating expenses in all parts of the business.
Management also broadened its sales and marketing emphasis to target large
retailers and national public service organizations rather than individual
healthcare professionals. Management believes these actions will improve
operating performance and cash flow in the near term.
In August of 1998, the Company received its largest order ever to deliver
approximately 700 PhotoScreeners during fiscal 1999. As of March 31, 1999 all of
the MTI PhotoScreeners ordered were billed. The order which approximates $1.5
million placed certain restrictions on the Company from selling the
PhotoScreener in certain markets which have now been waived. In connection with
this order and provided the customer spends several millions of dollars in
national advertising mentioning the PhotoScreener, the Company has provided the
customer with warrants to purchase 1.2 million shares of the Company's stock at
an exercise price of $0.88 per share. Due to a delay in the national rollout and
marketing campaign by the customer, the warrant package is under discussion with
the customer.
The Chief Executive Officer and a former director personally signed a guarantee
with a local bank to provide a $250,000 line of credit to the Company which was
originally scheduled to terminate in January of 1999 but has been extended.
For the past several years the Company has financed its operations primarily
through private sales of securities and revenues from the sale of its products.
Since June of 1993 the Company has received net proceeds of approximately $10.0
million from the private sale of securities and debt. The Company may raise
additional capital through private and/or public sales of securities in the
future.
Year 2000 Compliance
The Company is aware of the issues associated with the programming code in
existing computer systems as the millennium (Year 2000) approaches. All software
used for the Company systems is supplied by software vendors or outside service
providers. The Company has confirmed with such providers that its present
software is Year 2000 compliant.
Item 4. Submission of Matters to a Vote of Security Holders
At the Company's 1999 annual meeting of stockholders held on April 12, 1999,
Jeremy P. Feakins was elected a director of the Company for a three year term by
a vote of 24,049,210 in favor, 4,860 votes against and 256,968 abstain votes and
Dennis A. Surovcik was elected as a director of the Company for a three year
term by a vote of 24,053,760 in favor, 310 votes against and 256,968 abstain
votes. Further, Simon Lever & Company was ratified as the Company's independent
certified public accountant for the 1999 fiscal year by a vote of 24,232,907 in
favor, 1950 votes against and 76,181 abstain votes.
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
3.1 Amendment to the Articles of Incorporation for SouthStar Productions, Inc.,
which changed its name to Medical Technology & Innovations, Inc.
Incorporated by reference to the Company's Current Report on Form 8-K for
an event on September 21, 1995]
3.2 Restated Articles of Incorporation for Medical Technology & Innovations,
Inc.[Incorporated by reference to Exhibit 3.3 to the Company's Annual
Report on Form 10-KSB (File No. 33-27610-A), filed September 30, 1996]
3.3 By-laws [Incorporated by reference to Exhibit 3.2 to the Company's
Registration Statement on Form S-18 (File No. 33-27610-A), filed March 17,
1989]
10.1 Share Exchange Plan between SouthStar Productions, Inc. and Medical
Technology, Inc. [Incorporated by reference to the Company's Current Report
on Form 8-K for an event on August 21, 1995]
10.2 Asset purchase agreement for the purchase and sale of certain assets of
Steridyne Corporation [Incorporated by reference to the Company's Current
Report on Form 8-K for an event on July 31, 1996]
10.3 Medical Technology & Innovations, Inc. 1996 Stock Option Plan.
[Incorporated by reference to Exhibit 10.3 to the Company's Annual Report
on Form 10-KSB (File No. 33-27610-A), filed September 30, 1996]
10.4 SouthStar Productions, Inc. Stock Purchase Plan 1995a (Financial Public
Relations Consulting Agreement) [Incorporated by reference to Exhibit 4.1
to the Company's Registration Statement on Form S-8 (File No. 33-27610-A),
filed August 23, 1995]
10.5 Medical Technology & Innovations, Inc. 1996b Stock Purchase Plan
(Consulting Agreement) [Incorporated by reference to Exhibit 4.1 to the
Company's Registration Statement on Form S-8 (File No. 33-27610-A), filed
April 22, 1996]
10.6 Form of Employment Agreement, Covenant not to Compete, and Stock Option
Agreement between the Company and key employees. [Incorporated by reference
to Exhibit 10.6 to the Company's Annual Report on Form 10-KSB (File No.
33-27610-A), filed September 30, 1996]
10.7 Purchase Agreement dated January 31, 1996 between the Company and Glenn and
Ruth Schultz. [Incorporated by reference to Exhibit 10.7 to the Company's
Annual Report on Form 10-KSB (File No. 33-27610-A), filed September 30,
1996]
16.1 Letter on change in certifying accountant [Incorporated by reference to the
Company's Current Report on Form 8-K for an event on April 26, 1996]
<PAGE>
21.0 Subsidiaries of the Company.
Medical Technology, Inc., an Iowa corporation
Steridyne Corporation, a Florida corporation
27.1 Financial Data Schedules [annexed hereto]
(b) Reports on Form 8-K.
No reports on Form 8-K were filed during the quarterly period covered by
this report.
<PAGE>
Signatures
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
AND
BY: /s/ DENNIS A. SUROVCIK BY: /s/ JEREMY P. FEAKINS
Dennis A. Surovcik, Senior Vice President Jeremy P. Feakins
Chief Financial Officer Chief Executive Officer
Date: May 15, 1999.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000847464
<NAME> MEDICAL TECHNOLOGY & INNOVATIONS, INC.
<MULTIPLIER> 1
<CURRENCY> U.S. Currency
<S> <C>
<PERIOD-TYPE> 9-Mos
<FISCAL-YEAR-END> Jun-30-1998
<PERIOD-START> Jan-1-1999
<PERIOD-END> Mar-31-1999
<EXCHANGE-RATE> 1
<CASH> 27,741
<SECURITIES> 0
<RECEIVABLES> 474,038
<ALLOWANCES> 36,367
<INVENTORY> 576,842
<CURRENT-ASSETS> 1,114,224
<PP&E> 1,325,803
<DEPRECIATION> 455,599
<TOTAL-ASSETS> 4,162,176
<CURRENT-LIABILITIES> 2,228,421
<BONDS> 0
0
1,624,500
<COMMON> 10,091,183
<OTHER-SE> (309,742)
<TOTAL-LIABILITY-AND-EQUITY> 4,162,776
<SALES> 4,263,047
<TOTAL-REVENUES> 4,263,047
<CGS> 2,401,530
<TOTAL-COSTS> 2,401,530
<OTHER-EXPENSES> 2,022,170
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 134,390
<INCOME-PRETAX> (295,043)
<INCOME-TAX> 0
<INCOME-CONTINUING> (295,043)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (295,043)
<EPS-PRIMARY> (.014)
<EPS-DILUTED> (.014)
</TABLE>
