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 December 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 Identification No.)
incorporation or organization)
615 Centerville Road, Lancaster, PA 17601
- ---------------------------------- ---------------------
(Address of principal executive offices) (Zip Code)
(Issuer's telephone number, including area code): (717) 892-6770
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 [ ]
Transitional Small Business Disclosure Format (Check One): YES [ ] NO [X]
As of December 31, 1999 33,428,067 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 December 16, 1999.
<PAGE>
MEDICAL TECHNOLOGY & INNOVATIONS, INC.
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
December 31, 1999 and June 30, 1999 4
Condensed Consolidated Income Statements
For the Three and Six Months ended December
31, 1999 and 1998 (Unaudited) 5
Consolidated Statements of Stockholders' Equity (Unaudited) 6
Condensed Consolidated Statements of Cash Flows
For the Six Months ended December 31, 1999 and 1998 (Unaudited) 7
Notes to Condensed Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis or Plan of Operation 9
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 14
<PAGE>
PART I - FINANCIAL INFORMATION
3
<PAGE>
<TABLE>
<CAPTION>
Medical Technology & Innovations, Inc.
Condensed Consolidated Balance Sheets
December 31, 1999 and June 30, 1999
Assets
December 31, 1999 June 30, 1999
(Unaudited)
-------------- -------------
<S> <C> <C>
Current Assets
Cash and cash equivalents $ 335,618 $ 90,581
Accounts Receivable, less allowances of
$21,174, respectively 725,229 438,207
Inventory 598,848 513,358
Prepaid Expenses 36,736 91,002
-------------- ------------
Total Current Assets 1,696,431 1,133,148
-------------- ------------
Fixed Assets
Land 182,000 182,000
Equipment, less accumulated depreciation
of $564,160 and $494,006, respectively 601,409 669,160
-------------- ------------
Fixed Assets, net 783,409 851,160
Other Assets
Intangible and Other Assets 2,022,301 2,134,155
-------------- ------------
Total Assets $ 4,502,141 $ 4,118,463
============== ============
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable $ 991,665 $ 908,139
Accrued Liabilities
Payroll and payroll taxes 162,965 180,472
Royalties 184,121 147,961
Other 233,103 94,155
Current Maturities of Long-Term Debt 415,021 415,836
-------------- ------------
Total Current Liabilities 1,986,875 1,746,563
Long-Term Debt, Net of Current Maturities 1,130,470 1,321,158
-------------- ------------
Total Liabilities 3,117,345 3,067,721
-------------- ------------
Stockholders' Equity
Common Stock, no par value, authorized
700,000,000 shares, outstanding 33,428,067
and 27,548,334 shares, respectively 11,061,623 10,190,092
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,
266 shares outstanding 1,596,000 1,596,000
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 (1,973,531 shares) (436,799) (436,799)
Accumulated Deficit (10,858,528) (10,321,051)
-------------- ------------
Total Stockholders' Equity 1,384,796 1,050,742
-------------- ------------
Total Liabilities and Stockholders' Equity $ 4,502,141 $ 4,118,463
============== ============
</TABLE>
The accompanying notes are an integral part of the
condensed financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
Medical Technology & Innovations, Inc.
Condensed Consolidated Income Statements
For the Three Months and Six Months
Ended December 31, 1999 and 1998 (Unaudited)
Three Months Ended December 31, Six Months Ended December 31,
1999 1998 1999 1998
-------- ------- ------ ------
<S> <C> <C> <C> <C>
Revenues $ 1,118,819 $ 1,819,628 $ 2,174,098 $ 3,172,082
Cost of Goods 709,002 900,654 1,378,758 1,709,780
----------- ------------ ------------ ------------
Sold
Gross Profit 409,817 918,974 795,340 1,462,302
----------- ------------ ------------ ------------
Operating Expenses
Advertising 8,567 11,095 10,711 16,163
Selling, General,
and Administrative 737,412 716,572 1,254,383 1,279,324
----------- ------------ ------------ ------------
Total Operating Expenses 745,979 727,667 1,265,094 1,295,487
----------- ------------ ------------ ------------
Income (Loss) from Operations (336,162) 191,307 (469,754) 166,815
Interest expense, net 28,812 49,339 67,723 86,307
----------- ------------ ------------ ------------
Net Income (Loss) $ (364,974) $ 141,968 $ (537,477) $ 80,508
============ ============ ============ ============
Net Income (Loss) per common share
(basic and diluted) $ .014(*) $ .004(*) $ .021(*) $ .001(*)
============ ============ ============ ============
Weighted Average Outstanding Shares 28,525,207 26,435,089 28,525,207 26,435,089
============ ============ ============ ============
</TABLE>
(*) Calculated including Series B Preferred Stock accretion of $32,040 for the
three month and $64,080 for the six month periods ended December 31, 1999.
The accompanying notes are an
integral part of the condensed financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
Medical Technology & Innovations, Inc.
Consolidated Statements of Stockholders' Equity
For the Years Ended
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, 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
Preferred Stock into common stock 500,000 76,000 (76,000)
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) $1,276,517
---------- ---------- ------------ ----------- -------- ---------- ------------ -----------
Purchase of Treasury Shares (600,000) (127,057) (127,057)
Net Loss (650,627) (650,627)
Stock Issued for Services 983,974 172,409 172,409
Conversion of Series B Preferred
Stock into common stock 54,081 6,000 (6,000)
Conversion of Subordinated
Notes into common stock 725,000 379,500 379,500
------- ---------- ----------- ----------- -------- --------- ------------ -----------
Balance at June 30, 1999 27,548,334 $10,190,092 - 0 - $1,596,000 $ 22,500 $(436,799) $(10,321,051) $1,050,742
---------- ----------- ----------- ----------- -------- ---------- ------------ -----------
Conversion of Debentures
into common stock 5,436,733 822,601 822,601
Stock Issued for Services 443,000 48,930 48,930
Net Loss (537,477) (537,477)
---------- ---------- ----------- ---------- -------- --------- ------------ -----------
Balance at December 31, 1999 33,428,067 $11,061,623 - 0 - $1,596,000 $ 22,500 $(436,799) $(10,858,528) $1,384,796
========== =========== =========== ========== ======== ========== ============ ===========
</TABLE>
The accompanying notes are an integral part
of the condensed financial statements
6
<PAGE>
<TABLE>
<CAPTION>
Medical Technology & Innovations, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
For the Six Months Ended December 31, 1999 and 1998
Six Months Ended December 31,
1999 1998
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net (Loss) Income $ (537,477) $ 80,508
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and Amortization 179,605 140,080
(Increase) in Accounts Receivable (287,022) (231,932)
(Increase) Decrease in Inventory (85,490) (42,974)
(Increase) Decrease in Prepaid Expenses 54,266 (32,027)
Increase in Accounts Payable 83,526 369
Increase in Accrued Liabilities 157,601 66,092
Stock issued for service 48,930 - 0 -
----------- ----------
Net cash (used in) operating activities (386,061) (19,884)
Cash flows from investing activities:
Sale of Headquarters Land and Building - 0 - 260,000
------------ ----------
Net cash from investing activities - 0 - 260,000
Cash flows from financing activities:
Proceeds from issuance of notes payable 631,098 123,905
Repayment of notes payable, net - 0 - (234,000)
-------------- ----------
Net cash from (used in) financing activities 631,098 (110,095)
-------------- ----------
Net increase in cash and cash equivalents 245,037 130,021
Cash and cash equivalents at beginning of period 90,581 38,247
-------------- ----------
Cash and cash equivalents at end of period $ 335,618 $ 168,268
============== ==========
</TABLE>
The accompanying notes are an integral part
of the condensed financial statements
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, 1999 Annual
Report on Form 10-KSB. The results of operations for periods ended December
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 1999 and fiscal 1998, 120,000 and 500,000 options
respectively, have been granted. All options granted in fiscal 1998 and
20,000 options granted in fiscal 1999 are exercisable ratably over a
three-year period commencing with the grant date at an exercise price of
$0.25 per share. The remaining options granted in fiscal 1999 were
exercisable immediately at an exercise price of $0.50 per share.
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, 1999 1,380,000
Options granted 0
Options exercised 0
Options cancelled (283,332)
-----------
Outstanding, December 31, 1999 1,096,668
==========
Exercisable, end of period 1,003,338
==========
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.
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
8
<PAGE>
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. Accretion as of December 31, 1999
and June 30, 1999 was $288,360 and $224,280, respectively and is not
reflected in the Company's balance sheets.
4. Warrants. The Company has issued warrants to purchase 3.4 million shares of
common stock as of December 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.
Approximately 3.0 million warrants expire in July 2001.
5. Industry Segments. Statements of Financial Accounting Standards No. 131,
"Disclosures about Segments of an Enterprise and Related Information",
requires the presentation of description information about reportable
segments which is consistent with that made available to the management of
the Company to assess performance. Since the Company subsidiaries operate
in separate distinct industry segments, management of the overall business
is conducted by separate subsidiaries. The Corporate segment includes
salary and fringe benefits of the Chairman and a portion of similar costs
related to the Chief Financial Officer, financial public relations costs
and other costs not directly related to the operations of the business
segments.
<TABLE>
<S> <C> <C> <C> <C>
Medical Steridyne
Six Months ended December 31, 1999 Technology, Inc. Corporation Corporate Total
---------------- ----------- --------- -----
Revenues $ 149,399 $ 2,024,699 - 0 - $ 2,174,098
Operating (Loss) (270,681) (55,378) (143,695) (469,754)
Net Interest 29,399 38,324 - 0 - 67,723
Pre Tax (Loss) (300,080) (93,702) (143,695) (537,477)
Net (Loss) (300,080) (93,702) (143,695) (537,477)
Depreciation and amortization 23,108 156,497 - 0 - 179,605
Medical Steridyne
Six Months ended December 31, 1998 Technology, Inc. Corporation Corporate Total
---------------- ----------- --------- -----
Revenues 1,566,587 $ 1,605,495 - 0 - $ 3,172,082
Operating Income (Loss) 512,884 (184,400) (161,669) (166,815)
Net Interest 15,124 61,927 9,256 86,307
Pre Tax Income (Loss) 497,760 (246,327) (170,925) 80,508
Net Income (Loss) 497,760 (246,327) (170,925) 80,508
Depreciation and amortization 30,928 143,542 - 0 - 140,080
</TABLE>
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, 1999 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 Photoscreener 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.
9
<PAGE>
Results of Operations
Comparison of Six-Month Periods Ended December 31, 1999 and 1998
Revenues for the first half of fiscal 2000 were $2,174,098 compared to
$3,172,082 for the comparable period in fiscal 1999, or a decrease in sales of
$997,984 or 32%. This decline results because the Company shipped over
$1,400,000 of PhotoScreeners and accessories to a major national retail optical
chain in the first half of fiscal 1999 with no comparable sales occurring in
fiscal 2000. The Company shipped approximately $1.5 million of product to this
customer throughout fiscal 1999. Revenues from sales of temperature taking
devices for the first half of fiscal 2000 were up over 26% when compared to the
comparable period of fiscal 1999, mainly due to increased sales to retail
accounts. Gross profit for the first half of fiscal 2000 of $795,340 represents
a decrease of 46% versus the comparable period in fiscal 1999 and is entirely
due to the shortfall in sales of the PhotoScreener as overall margins are
comparable between the two periods.
Operating expenses decreased by about 2% from $1,295,487 in the first six months
of fiscal 1999 to $1,265,094 in the comparable period in fiscal 2000. This
reduction is evident in several expense categories with the greatest savings in
the employment areas. Interest expense of $67,723 for the first six months of
fiscal 2000 decreased by $18,584 or 22% when you compare it to the first half of
fiscal 1999, primarily as a result of converting over $822,000 of debt into
common stock in October of 1999. The overall net loss for the first six months
of fiscal 2000 was $537,477 versus a profit of $80,508 for fiscal 1999. This
result is again evident due to the difference in sales of the PhotoScreener
between the two periods.
Management has completed the process of consolidating all of its operations into
a single location and cutting back on administrative staff in line with present
sales levels. Management believes that actions taken to revise the Company's
operating and financial requirements will provide the opportunity for the
Company to realize a profit in the third quarter of fiscal 2000.
Information about the Company's Industry Segments is included in Note 5 to the
Notes to Condensed Consolidated Financial Statements.
Liquidity and Capital Resources
At December 31, 1999, the Company had cash of $335,618 and working capital of
($290,444) as compared to $90,581 and ($613,415) at June 30, 1999. This decrease
in working capital deficit is mostly due to an increase in Steridyne's accounts
receivables and increases in long-term borrowings to pay current liabilities.
Included in long-term debt at June 30, 1999 was approximately $822,000 of notes,
secured by certain assets of Steridyne Corporation, incurred to fund the Series
A restructuring in October 1997 which were converted into 5,436,733 shares of
Company common stock in October of 1999. As a result of repaying the $822,000 of
secured notes with the Company's common stock, a significant amount of
collateral is available for borrowing purposes. The Company entered into a loan
agreement with an affiliate of the Chief Executive Officer to provide a
$1,000,000 credit line for working capital needs of the Group.
In August of 1998, the Company received its largest order ever to deliver
approximately 700 PhotoScreeners during fiscal 1999. The order which
approximated $1.5 million placed certain restrictions on the Company from
selling the PhotoScreener in certain markets. In connection with this order and
provided the customer spends several millions of dollars in national advertising
mentioning the PhotoScreener, the Company 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. This commitment has expired. Unless the customer executes a national
vision screening marketing program mentioning the PhotoScreener, sales of the
PhotoScreener in fiscal 2000 could decline.
10
<PAGE>
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
terminates in December of 1999. The Company is in discussion with the bank
regarding options available to the Company.
During the quarter ended December 31, 1999, the Company borrowed over $600,000
from an affiliate of the Chief Executive Officer and Chairman of the Company to
support the working capital needs of the Consolidated Group. This loan is
secured by certain assets of the Company and is guaranteed by the Company's
subsidiaries. At December 31, 1999, $650,778 was outstanding and included in the
balance sheet as of the same date.
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 $11.0
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. Additionally, the Company has made inquiries
with some of its largest customers and suppliers and determined that any
possible negative impact with regard to non-compliance with year 2000
programming issues are minimal.
The Company is also establishing a back up contingency plan which will allow it
to continue to operate its computer systems in the event unforeseeable external
factors disrupt normal operations in the year 2000.
11
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
--------
3.1 Articles of Incorporation of SouthStar Productions, Inc., n/k/a
Medical Technology & Innovations, Inc. [Incorporated by reference to
Exhibit 3.1 to the Company's Registration Statement on Form S-18 (File
No. 33-27610-A), filed March 17, 1989]
3.2 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]
3.3 Restated Articles of Incorporation for Medical Technology &
Innovations, Inc. [Incorporated by reference to the Company's Annual
Report on Form 10-KSB (File No. 33-27610-A), filed September 30, 1996]
3.4 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 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 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 the Company's
Annual Report on Form 10-KSB (File No. 33-27610-A), filed September
30, 1996.]
10.8 Purchase Agreement dated March 8, 1999 between Medical Technology &
Innovations, Inc., Steridyne Corporation and Florida Medical
Industries, Inc.
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]
12
<PAGE>
21.0 Subsidiaries of the Company.
Medical Technology, Inc., an Iowa corporation
Steridyne Corporation, a Florida corporation
27.1 Financial Data Schedules
(b) Reports on Form 8-K.
No reports on Form 8-K were filed during the quarterly period covered by
this report.
13
<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: BY:
/s/ Dennis A. Surovcik /s/ JEREMY P. FEAKINS
----------------------------- -------------------------
Dennis A. Surovcik Jeremy P. Feakins
Senior Vice President Chairman and
and Chief Financial Officer Chief Executive Officer
Date: February 4, 2000.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000847464
<NAME> MEDICAL TECHNOLOGY & INNOVATIONS, INC.
<MULTIPLIER> 1
<CURRENCY> U.S.Currency
<S> <C>
<PERIOD-TYPE> 6-mos
<FISCAL-YEAR-END> Jun-30-1999
<PERIOD-START> Jul-01-1999
<PERIOD-END> Dec-31-1999
<EXCHANGE-RATE> 1
<CASH> 335,618
<SECURITIES> 0
<RECEIVABLES> 746,403
<ALLOWANCES> 21,174
<INVENTORY> 598,848
<CURRENT-ASSETS> 1,696,431
<PP&E> 1,347,569
<DEPRECIATION> 564,160
<TOTAL-ASSETS> 4,502,141
<CURRENT-LIABILITIES> 1,986,875
<BONDS> 0
0
1,618,500
<COMMON> 11,061,623
<OTHER-SE> (436,799)
<TOTAL-LIABILITY-AND-EQUITY> 4,502,141
<SALES> 2,174,098
<TOTAL-REVENUES> 2,174,098
<CGS> 1,378,758
<TOTAL-COSTS> 1,265,094
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 67,723
<INCOME-PRETAX> (537,477)
<INCOME-TAX> 0
<INCOME-CONTINUING> (537,477)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (537,477)
<EPS-BASIC> (.021)
<EPS-DILUTED> (.021)
</TABLE>
