<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 JUNE 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
--------------- ----------
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
5770 ROOSEVELT BLVD., SUITE 700, CLEARWATER, FL 34620
--------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE: (813) 524-3227
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
----- -----
THE NUMBER OF SHARES OUTSTANDING OF THE ISSUER'S COMMON STOCK AT $.001 PAR VALUE
AS OF AUGUST 10, 1996, WAS 8,775,685.
FORM 10-QSB
1
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NUMED SURGICAL, INC.
STATEMENT OF NET DEFICIENCY IN LIQUIDATION
JUNE 30, 1997 MARCH 31, 1997
------------- --------------
ASSETS
Current assets:
Cash $ 49,737 35,341
Accounts receivable (less an allowance for
bad debts and returns of $16,370
at June 30, 1997 and March 31, 1997) 1,840 46,952
Inventories 8,651 8,272
Prepaid expenses and other assets 300 300
------- ------
Total current assets 60,528 90,865
------- ------
Total assets $ 60,528 90,865
------- ------
------- ------
LIABILITIES AND NET DEFICIENCY
Current liabilities:
Accounts payable $ 37,702 32,708
Accrued expenses 16,437 14,760
Due to AMATECH 38,526 47,695
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Total current liabilities 92,665 95,163
Net deficiency in liquidation;
attribute to 8,775,685 shares $ (32,137) (4,298)
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------- ------
See notes to financial statements.
<PAGE>
NUMED SURGICAL, INC.
STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30,
1997 1996
--------- ---------
Net sales $ 3,918 124,991
Cost of goods sold 8,109 73,772
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Gross profit (loss) (4,191) 51,219
Selling, general and administrative expenses:
Salary and benefits - 32,035
Professional fees 11,500 5,302
Travel and entertainment - 1,872
Occupancy 6,432 2,353
Office expenses - 5,937
Advertising - 5,420
Depreciation and amortization - 8,785
Other 5,716 858
--------- ---------
Total selling, general and
administrative expenses 23,648 62,562
--------- ---------
Operating loss (27,839) (11,343)
Other income (expense):
Interest income - 2
Interest expense - (1,417)
--------- ---------
Total other expense - (1,415)
--------- ---------
Net loss $ (27,839) (12,758)
--------- ---------
--------- ---------
Net loss per share $ (0.00) (0.00)
--------- ---------
--------- ---------
See notes to financial statements.
<PAGE>
NUMED SURGICAL, INC.
STATEMENT OF CASH FLOWS
THREE MONTHS
ENDED JUNE 30,
1997 1996
--------- --------
Cash flows from operating activities:
Net loss $(27,839) (12,760)
Adjustments to reconcile net loss to net cash used
in operating activities:
Depreciation and amortization - 8,785
Increase (decrease) in cash due to net changes
in operating assets and liabilities:
Accounts receivable 45,112 (19,384)
Inventories (379) 16,996
Prepaid expenses and other current assets - (5,453)
Accounts payable (4,175) 4,230
Accrued expenses 1,677 (16,324)
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Net cash used in operating activities 14,396 (23,910)
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Cash flows from investing activities -
Purchase of property and equipment - (56)
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Cash flows from financing activities -
Proceeds from borrowings on line of credit - 23,000
------ -------
Increase in cash 14,396 854
Cash at beginning of period 35,341 7,229
------ -------
Cash at end of period $ 49,737 6,375
------ -------
------ -------
See notes to financial statements.
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NUMED SURGICAL, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
THREE MONTHS ENDED JUNE 30, 1997 AND YEAR ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
Net assets
Common stock (deficiency) in
------------- Paid-in Accumulated liquidation at
Shares Value capital deficit Total March 31, 1997
----------- ----- -------- ----------- -------- ----------------
<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 - - - - - (27,839)
--------- -------- --------- -------- -------- --------
Balances at June 30,
1997 8,775,685 $ - - - - (32,137)
--------- -------- --------- -------- -------- --------
--------- -------- --------- -------- -------- --------
</TABLE>
See notes to financial statements.
<PAGE>
NUMED SURGICAL, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 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 June 30, 1997 and the results of
operations and cash flows for the three months ended June 30, 1996 and 1997.
The results for the three months ended June 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 June 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 the 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. Net revenues for the three months ended June 30, 1997
were $3,918 as compared to $124,991 for the same period one year ago. This
represents a decrease of $121,073 or 97% under the same period one year ago.
This decrease is due to the fact that the Company ceased operations.
The gross loss for the three months ended June 30, 1997, was $4,191 as compared
to a profit of $51,219 or 41% the same period one year ago. The decreases for
the three month period in gross profit was due to the cease in operations.
Total general and administrative expenses as a percentage of revenues for the
three months ended June 30, 1997 decreased to 62% as compared to 43% for the
same period one year ago. This is a decrease of $38,914 or 19% for the same
period one year ago. This decrease is due to the cease in operations. The
major portion of this expenses was in professional fees paid for 1997 year-end
audit.
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NUMED SURGICAL, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
The operating loss increased approximately 118% or $15,081 from ($12,758) to
($27,839). This increase was again due to the ceasing of operations.
FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES:
The Company's cash and cash equivalents increased to $49,737 at June 30, 1997
from $35,341 at March 31, 1997, which is a net increase of $14,396 resulting
mostly from liquidation of assets.
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PART II: OTHER INFORMATION
ITEM 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: August 27, 1997 /s/ Jugal K. Taneja
-----------------------------
Jugal K. Taneja
CEO, Chief Accounting Officer
and Director
Form 10-QSB
8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 49,737
<SECURITIES> 0
<RECEIVABLES> 1,840
<ALLOWANCES> 0
<INVENTORY> 8,651
<CURRENT-ASSETS> 0
<PP&E> 300
<DEPRECIATION> 0
<TOTAL-ASSETS> 60,528
<CURRENT-LIABILITIES> 92,665
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> (32,137)
<SALES> 3,918
<TOTAL-REVENUES> 3,918
<CGS> 8,109
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 27,839
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (27,839)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (27,839)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
