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, 1998
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
----------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE: (727) 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 9, 1999, WAS 8,775,685.
FORM 10-QSB
<PAGE>
NUMED SURGICAL, INC.
STATEMENTS OF NET DEFICIENCY IN LIQUIDATION
DECEMBER 31, MARCH 31,
1998 1998
----------- -----------
(UNAUDITED) (AUDITED)
ASSETS
Current assets:
Cash $ 4,599 8,254
Accounts receivable 13,270 13,270
Allowable for bad debts (13,270) (13,270)
-------- --------
Total assets $ 4,599 8,254
======== ========
LIABILITIES AND NET DEFICIENCY
Current liabilities:
Accounts payable 875 3,875
Accrued expenses 16,937 16,437
-------- --------
Total current liabilities 17,812 20,312
-------- --------
Net deficiency in liquidation, attributable to
8,775,685 shares $(13,213) (12,058)
======== ========
<PAGE>
NUMED SURGICAL, INC.
STATEMENT OF CHANGES IN NET DEFICIENCY IN LIQUIDATION
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
DECEMBER 31,
1998 1997
----------- -----------
<S> <C> <C>
Decreases in net liabilities in liquidation:
Sales $ -- --
Bad debt recovery -- --
Increases in net liabilities in liquidation:
Professional fees 500 2,024
Office expense 115 848
----------- -----------
(Increase) decrease in net
liabilities in liquidation (615) (2,872)
Beginning net liabilities in liquidation (12,598) (29,712)
----------- -----------
Ending net liabilities in liquidation $ (13,213) (32,584)
=========== ===========
Gain (loss) per share:
Gain (loss) attributable to common stockholders $ (615) (2,872)
=========== ===========
Net gain (loss) per common share (basic and
diluted) $ -- --
=========== ===========
Weighted average common stock outstanding
(basic and diluted) 8,775,685 8,775,685
=========== ===========
</TABLE>
<PAGE>
NUMED SURGICAL, INC.
STATEMENT OF CHANGES IN NET DEFICIENCY IN LIQUIDATION
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
DECEMBER 31,
1998 1997
----------- -----------
<S> <C> <C>
Decrease in net liabilities in liquidation:
Sales $ -- 3,918
Bad debt recovery -- 3,101
Increases in net liabilities in liquidation:
Cost of goods sold -- 8,109
Professional fees 4,375 14,024
Occupancy -- 6,432
Office expense 175 1,024
Other -- 5,716
----------- -----------
Increase in net liabilities in liquidation (4,550) (28,286)
Beginning net assets in liquidation (8,663) (4,298)
----------- -----------
Ending net liabilities in liquidation $ (13,213) (32,584)
=========== ===========
Loss per share:
Loss attributable to common stockholders $ (4,550) (28,286)
=========== ===========
Net loss per common share (basic and diluted) $ -- --
=========== ===========
Weighted average common stock outstanding
(basic and diluted) 8,775,685 8,775,685
=========== ===========
</TABLE>
<PAGE>
NUMED SURGICAL, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
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, 1998. The results for
the three months ended December 31, 1998 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, 1998, 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, 1998 and 1997 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, 1998. This decrease is due to the fact that the Company ceased
operations.
FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES:
The Company's cash and cash equivalents at December 31, 1998 and March 31, 1998
were $4,599 and $8,274, respectively. The change is minimal due to the Company's
liquidation.
<PAGE>
PART II: OTHER INFORMATION
ITEMS 1 - 5: Not Applicable
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits:
27 Financial Data Schedule
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: February 9, 1999 /s/ JUGAL K. TANEJA
------------------------------------------
JUGAL K. TANEJA
CEO, Chief Accounting Officer and Director
<PAGE>
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
- ----------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> SEP-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 4,599
<SECURITIES> 0
<RECEIVABLES> 13,270
<ALLOWANCES> (13,270)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 875
<CURRENT-LIABILITIES> 16,437
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 17,312
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 615
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (615)
<INCOME-TAX> 0
<INCOME-CONTINUING> (615)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (615)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
