<PAGE>
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 Quarter Ended September 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 0-24362
NuMED SURGICAL, INC.
(Exact name of small business issuer in its charter)
STATE OF NEVADA 34-1755390
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7270 Sawgrass Point Drive, Pinellas Park, FL 33782
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(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (813) 524-3227
Securities registered pursuant to Section 12(b) of the Act:
(Title of each class) (Name of each exchange on which registered)
None Not applicable
Securities registered pursuant to Section 12(g) of the Act:
Common stock, Par value $.001 per share
---------------------------------------
(Title of Class)
Indicate by check mark whether the issuer (1) 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 (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
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The number of shares outstanding of the Issuer's common stock at $.001 par value
as of February 10, 1995, was 8,775,685.
Form 10-QSB
1
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NuMED SURGICAL, INC.
STATEMENT OF NET DEFICIENCY IN LIQUIDATION
SEPTEMBER 30, 1997 MARCH 31, 1997
------------------ --------------
ASSETS
Current assets:
Cash $ 43,002 35,341
Accounts receivable 13,270 63,322
Allowable for bad debts (13,270) (16,370)
Inventories 8,651 8,272
Prepaid expenses and other assets 300 300
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Total assets $ 51,953 90,865
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--------- --------
LIABILITIES AND NET DEFICIENCY
Current liabilities:
Accounts payable $ 26,702 32,708
Accrued expenses 16,437 14,760
Due to AMATECH 38,526 47,695
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Total current liabilities 81,665 95,163
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Net deficiency in liquidation;
attribute to 8,775,685 shares $ (29,712) (4,298)
--------- --------
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See notes to financial statements.
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NuMED SURGICAL, INC.
STATEMENT OF OPERATIONS
THREE MONTHS
ENDED SEPTEMBER 30,
1997 1996
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Net sales $ - 106,024
Cost of goods sold - 67,607
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Gross profit (loss) - 38,417
Selling, general and administrative
expenses:
Salary and benefits - 30,701
Professional fees 500 3,839
Travel and entertainment - 2,638
Occupancy - 3,111
Advertising and marketing - 7,473
Shareholder relations - 609
Office expense 176 4,804
Depreciation and amortization - 8,784
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Total selling, general and
administrative expenses 676 61,959
----------- ---------
Operating loss (676) (23,542)
Other income (expense):
Interest income - 1
Interest expense - (2,131)
Bad debt recovery 3,101 -
----------- ---------
Total other income (expense) 3,101 (2,130)
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Net income (loss) $ 2,425 (25,672)
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----------- ---------
Net loss per share $ (0.00) (0.00)
----------- ---------
----------- ---------
Shares used in computing per share
information 8,775,685 8,775,685
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----------- ---------
See notes to financial statements.
<PAGE>
NuMED SURGICAL, INC.
STATEMENT OF OPERATIONS
SIX MONTHS
ENDED SEPTEMBER 30,
1997 1996
---- ----
Net sales $ 3,918 231,015
Cost of goods sold 8,109 141,379
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Gross profit (loss) (4,191) 89,636
Selling, general and administrative
expenses:
Salary and benefits - 62,736
Professional fees 12,000 9,141
Travel and entertainment - 4,510
Occupancy 6,432 5,464
Advertising and marketing - 12,893
Shareholder relations - 1,467
Office expense 176 10,741
Depreciation and amortization - 17,569
Other 5,716 -
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Total selling, general and
administrative expenses 24,324 124,521
----------- ---------
Operating loss (28,515) (34,885)
Other income (expense):
Interest income - 3
Interest expense - (3,549)
Bad debt recovery 3,101 -
----------- ---------
Total other income (expense) 3,101 (3,546)
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Net loss $ (25,414) (38,431)
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Net loss per share $ (0.00) (0.00)
----------- ---------
----------- ---------
Shares used in computing per share
information 8,775,685 8,775,685
----------- ---------
----------- ---------
See notes to financial statements.
<PAGE>
NuMED SURGICAL, INC.
STATEMENT OF CASH FLOWS
SIX MONTHS
ENDED SEPTEMBER 30,
1997 1996
---- ----
Cash flows from operating activities:
Net loss $ (25,414) (38,432)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation and amortization - 17,569
Increase (decrease) in cash due
to net changes in operating
assets and liabilities:
Accounts receivable 46,952 9,669
Inventories (379) 14,244
Prepaid expenses and other
current assets - (18,827)
Accounts payable (6,006) 16,613
Accrued expenses (7,492) (22,274)
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Net cash provided by
(used in) operating
activities 33,075 (21,438)
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Cash flows from investing activities -
Purchase of property and equipment - 113
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Cash flows from financing activities -
Proceeds from short-term borrowings - 23,000
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Increase in cash 7,661 1,675
Cash at beginning of period 35,341 7,229
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Cash at end of period $ 43,002 8,904
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See notes to financial statements.
<PAGE>
NuMED SURGICAL, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
SIX MONTHS ENDED SEPTEMBER 30, 1997 AND YEAR ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
Common stock Net assets
-------------- Paid-in Accumulated (deficiency) in
Shares Value capital deficit Total liquidation
--------- ------- ------- ----------- ------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Balance at March 31,
1996 8,775,685 $ 8,776 473,222 (392,939) 89,059 -
Net loss - - - (93,357) (93,357) -
--------- ------- ------- -------- ------- ---------
Balances at March 31,
1997 before liquidation
basis of accounting 8,775,685 8,776 473,222 (486,296) (4,298) -
Changes in basis of
accounting - (8,776) (473,222) 486,296 4,298 (4,298)
--------- ------- ------- -------- ------- ---------
Balances at March 31,
1997 after the liquidation
basis of accounting 8,775,685 - - - - (4,298)
Net loss - - - - - (25,414)
--------- ------- ------- -------- ------- ---------
Balances at September
30, 1997 8,775,685 $ - - - - (29,712)
--------- ------- ------- -------- ------- ---------
--------- ------- ------- -------- ------- ---------
</TABLE>
See notes to financial statements.
<PAGE>
NuMED SURGICAL, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
NOTE A - BASIS OF PRESENTATION
GENERAL:
The accompanying interim financial statements are unaudited, but reflect all
adjustments which are, in the opinion of the Company's management necessary to
present fairly the financial position as of September 30, 1997 and the results
of operations and cash flows for the six months ended September 30, 1996 and
1997. The results for the six months ended September 30, 1997 are not
necessarily indicative of results to be expected for the full year. References
should be made to the Company's Form 10-KSB for the year ended March 31, 1997,
for additional disclosure.
ITEM 2:
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
INTRODUCTION:
The following is an analysis of the operations of NuMed Surgical for the three
months ended September 30, 1997 and 1996 and should be read in conjunction with
the Company's financial statements that appear elsewhere in this report.
RESULTS OF OPERATIONS:
The Company ceased operations on April 1, 1997 and liquidated the "patient
positioning" assets. The Company ceased operations due to continued losses
caused by increased competition and the loss of exclusivity of patient
positioning products. Also, the Company was never able to find an acceptable
industry partner to enter into a joint venture on the Liftmate Product which was
acquired in 1995. The Company did not have adequate internal resources to
pursue the "Liftmate" market on its own. The "patient positioning" product line
was where most of the sales of the Company were coming from since the inception
of the Company. The Company had no sales activity for the three months ended
September 30, 1997. This decrease is due to the fact that the Company ceased
operations.
The income for the three months ended September 30, 1997 was $2,425 as compared
to a loss of $25,672. The decreases for the three month period in gross loss
was due primarily to bad debt recoveries.
The operating loss decreased approximately $7,370 from $34,885. This decrease
was due from the ceasing of operations.
<PAGE>
NuMED SURGICAL, INC.
NOTES TO FINANCIAL STATEMENTS
FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES:
The Company's cash and cash equivalents increased to $43,002 at September 30,
1997 from $35,341 at March 31, 1997, which is a net increase of $7,661 resulting
mostly from liquidation of assets.
<PAGE>
PART II: OTHER INFORMATION
ITEMS 1 - 5: Not Applicable
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits: None
b. Reports on Form 8-K: None
<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.
Date: November 12, 1997 /s/ Jugal K. Taneja
---------------------------------------------
JUGAL K. TANEJA
CEO, Chief Accounting Officer and Director
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<CASH> 43,002
<SECURITIES> 0
<RECEIVABLES> 13,270
<ALLOWANCES> (13,270)
<INVENTORY> 8,651
<CURRENT-ASSETS> 51,953
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 51,953
<CURRENT-LIABILITIES> 81,526
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> (29,712)
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> (676)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,101
<INCOME-TAX> 0
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<DISCONTINUED> 0
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<CHANGES> 0
<NET-INCOME> 3,101
<EPS-PRIMARY> 0
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</TABLE>
