<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 December 31, 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.)
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
---- ----
The number of shares outstanding of the Issuer's common stock at $.001 par value
as of February 16, 1998, was 8,775,685.
Form 10-QSB
1
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NUMED SURGICAL, INC.
STATEMENTS OF NET DEFICIENCY IN LIQUIDATION
(UNAUDITED)
<TABLE>
<CAPTION>
DECEMBER 31, 1997 MARCH 31, 1997
----------------- --------------
<S> <C> <C>
ASSETS
Current assets:
Cash $ 9,638 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
--------- --------
Total assets $ 18,589 90,865
--------- --------
--------- --------
LIABILITIES AND NET DEFICIENCY
Current liabilities:
Accounts payable $ 21,728 32,708
Accrued expenses 16,437 14,760
Due to AMATECH 13,008 47,695
--------- --------
Total current liabilities 51,173 95,163
--------- --------
Net deficiency in liquidation,
attribute to 8,775,685 shares $ (32,584) (4,298)
--------- --------
--------- --------
</TABLE>
See notes to financial statements.
2
<PAGE>
NUMED SURGICAL, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS
ENDED DECEMBER 31,
1997 1996
--------- ---------
<S> <C> <C>
Net sales $ - 145,118
Cost of goods sold - 65,803
--------- ---------
Gross profit (loss) - 79,315
Selling, general and administrative expenses:
Salary and benefits - 25,348
Professional fees 2,024 9,132
Travel and entertainment - 2,348
Occupancy - 2,626
Advertising and marketing - 4,552
Shareholder relations - 1,819
Office expense 848 3,660
Depreciation and amortization - 8,041
--------- ---------
Total selling, general and
administrative expenses 2,872 57,526
--------- ---------
Operating income (loss) (2,872) 21,789
Other income (expense):
Interest expense - (1,590)
--------- ---------
Total other income (expense) - (1,590)
--------- ---------
Net income (loss) $ (2,872) 20,199
--------- ---------
--------- ---------
Net loss per share $ (0.00) (0.00)
--------- ---------
--------- ---------
Shares used in computing
per share information 8,775,685 8,775,685
--------- ---------
--------- ---------
</TABLE>
See notes to financial statements.
3
<PAGE>
NUMED SURGICAL, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS
ENDED DECEMBER 31,
1997 1996
---------- ---------
<S> <C> <C>
Net sales $ 3,918 376,133
Cost of goods sold 8,109 207,182
--------- ---------
Gross profit (loss) (4,191) 168,951
Selling, general and administrative expenses:
Salary and benefits - 88,084
Professional fees 14,024 18,273
Travel and entertainment - 6,858
Occupancy 6,432 8,090
Advertising and marketing - 17,445
Shareholder relations - 3,286
Office expense 1,024 14,401
Depreciation and amortization - 25,610
Other 5,716 -
--------- ---------
Total selling, general and
administrative expenses 27,196 182,047
--------- ---------
Operating loss (31,387) (13,096)
Other income (expense):
Interest income - 3
Interest expense - (5,140)
Bad debt recovery 3,101 -
--------- ---------
Total other income (expense) 3,101 (5,137)
--------- ---------
Net loss $ (28,286) (18,233)
--------- ---------
--------- ---------
Net loss per share $ (0.00) (0.00)
--------- ---------
--------- ---------
Shares used in computing
per share information 8,775,685 8,775,685
--------- ---------
--------- ---------
</TABLE>
See notes to financial statements.
4
<PAGE>
NUMED SURGICAL, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS
ENDED DECEMBER 31,
1997 1996
--------- -------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (28,286) (18,233)
Adjustments to reconcile net loss
to net cash provided by (used in)
operating activities:
Depreciation and amortization - 25,610
Increase (decrease) in cash due to
net changes in operating assets and
liabilities:
Accounts receivable 46,952 (9,862)
Inventories (379) 16,151
Prepaid expenses and other current assets - (11,685)
Accounts payable (10,980) (1,201)
Accrued expenses (33,010) (23,596)
--------- -------
Net cash provided by (used in) operating
activities (25,703) (22,816)
--------- -------
Cash flows from investing activities -
Purchase of intangibles - (2,870)
Purchase of property and equipment - 169
--------- -------
Net cash used in investing
activities - (2,701)
--------- -------
Cash flows from financing activities -
Proceeds from short-term borrowings - 23,000
--------- -------
Decrease in cash (25,703) (2,517)
Cash at beginning of period 35,341 7,229
--------- -------
Cash at end of period $ 9,638 4,712
--------- -------
--------- -------
</TABLE>
See notes to financial statements.
5
<PAGE>
NUMED SURGICAL, INC.
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
NINE MONTHS ENDED DECEMBER 31, 1997 AND YEAR ENDED MARCH 31, 1997
(UNAUDITED)
<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 - - - - - (28,286)
--------- -------- --------- --------- -------- ---------
Balances at December
31, 1997 8,775,685 $ - - - - (32,584)
--------- -------- --------- --------- -------- ---------
--------- -------- --------- --------- -------- ---------
</TABLE>
See notes to financial statements.
6
<PAGE>
NUMED SURGICAL, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 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 December 31, 1997 and the results of
operations and cash flows for the nine months ended December 31, 1996 and 1997.
The results for the nine months ended December 31, 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 December 31, 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
December 31, 1997. This decrease is due to the fact that the Company ceased
operations.
The Company's net loss of $2,872 for the three months ended December 31, 1997
was due to the cessation of operations while the comparable period in 1996
resulted in net income of $20,199.
The net loss for the nine month period ended December 31, 1997 was $28,286
compared to a net loss of $18,233 for the comparable period in 1996.
7
<PAGE>
NUMED SURGICAL, INC.
NOTES TO FINANCIAL STATEMENTS
FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES:
The Company's cash and cash equivalents decreased to $9,638 at December 31, 1997
from $35,341 at March 31, 1997, which is a net increase of $25,793 resulting
mostly from liquidation of assets, net of the payment of liquidation.
8
<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
9
<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: February 16, 1998 /s/ JUGAL K. TANEJA
___________________________________
JUGAL K. TANEJA
CEO, Chief Accounting Officer and Director
10
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> DEC-31-1997
<CASH> 9638
<SECURITIES> 0
<RECEIVABLES> 13270
<ALLOWANCES> (13270)
<INVENTORY> 8651
<CURRENT-ASSETS> 18589
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 18589
<CURRENT-LIABILITIES> 51173
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> (32584)
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2872
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2872)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2872)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
