SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10-KSB


[X]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

For the fiscal year ended December 31, 1995

                                      OR

[  ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

Commission file number 33-3385LA

                   ENVIRONMENTAL PLASMA ARC TECHNOLOGY, INC.
            ---------------------------------------------------
              (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

     Nevada                                87-0430816
     ------                                ----------
(State or other jurisdiction of            (I.R.S. Employer
incorporation or organization)             Identification No.)

870 East 9400 South, #203, Sandy, Utah     84094
--------------------------------------     -----
(Address of principal executive offices)   (Zip code)

Issuer's telephone number, including area code:  (801) 553-9393
                                                 --------------
Securities registered pursuant to Section 12(b) of the Act:  None.
                                                          ----------
Securities registered pursuant to Section 12(g) of the Act:  None.
                                                         -----------
Check whether the issuer (1) 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         No [  X ] 

Check if there is no disclosure of delinquent filers in response to Item 405
of Regulation S-B contained herein, and will not be contained, to the best of
registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or any amendment to
this Form 10-KSB.  [N/A]

State issuer's revenue for it most recent fiscal year:  None.

The aggregate market value of the voting stock held by non-affiliates of the
registrant is not currently determinable inasmuch as there is no bona fide
trading market for the registrant's common stock.

Indicate the number of shares outstanding of each of the registrant's classes
of common stock as of the latest practicable date: 18,275,000 shares of Common
Stock outstanding on January 31, 1996.

Documents incorporated by reference:  None.

Transitional Small Business Disclosure Format (check one):  Yes      No [ X ]  

                                    PART I

Item 1.     DESCRIPTION OF BUSINESS.

            (a)     Business Development.

            Environmental Plasma Arc Technology, Inc. (the "Company") was
incorporated under the laws of the State of Nevada in 1986 under the name
Mainstay Investments, Inc.  The Company's name was changed in 1987 to Bio-
Helix, Inc., in 1990 to Concept Gold, Inc. and in 1992 to its current name. 
From December 31, 1991 through June 1992, the Company had no ongoing business
operations and investigated various acquisition possibilities.

            In June 1992, the Company entered into an agreement with Nu Arc
Scientific, Inc. ("Nu Arc Scientific") and its principal stockholders, Edward
and Carole Taylor (the "Taylors") whereby the Company acquired world-wide
commercial exploitation rights with respect to a  technology used for the
treatment of industrial emissions and other sources of air pollution.  The
technology, known as "environmental plasma arc technology" (the "EPAT
Technology"), principally relates to a method and devices used to remove and
reduce air pollutants from a variety of discharge facilities.  From this
acquisition to the present, the Company has operated as a research and
development company, seeking to identify applications for the EPAT Technology.
The Company did not have any revenues from operations in 1994.

            In connection with the June 1992 agreement, the Company's
stockholders approved a 1-for-5 reverse stock split of the outstanding shares
of common stock of the Company and ratified the agreement.  Thereafter, the
Company issued shares of common stock to the Taylors, Nu Arc Scientific and an
investor group, resulting in the Taylors' holding approximately 70 % of the
outstanding shares of the Company's common stock. In November 1993, the shares
of the Company's common stock owned by the Taylors were sold at a sheriff's
sale to a group of investors and current stockholders of the Company, which
changed the control of the Company to that group. The Company has also worked
to resolve third party claims with respect to the EPAT Technology that had
arisen from certain actions taken by the Taylors prior to the August 1992
agreement and during their relationship with the Company.  The Company
believes that resolution and settlement of all material claims have been
reached with the claimants, except for those that have not been deemed
meritorious and continue to be defended by the company. See "Legal
Proceedings."

            The officers of the Company as of December 31, 1995 were: Mitchell
T. Godfrey, President and Director; Gary R. Littler, Vice President and
Director; and Leslie Z. Libman, Secretary/Treasurer and Director.

            In June 1994, pursuant to a court order, Mitchell Godfrey, acting
as trustee on behalf of a group of shareholders, acquired through a
garnishment proceeding the patent application relating to the EPAT Technology. 
In July 1994, Mr. Godfrey assigned all rights to the patent application to the
Company, and the Company became the owner of the patent application relating
to the EPAT Technology.  In November 1994, the Company was issued a patent
from the United States Patent and Trademark Office with respect to the EPAT
Technology.


            (b)     Business of the Company.

             Development of the EPAT Technology and Products
              ----------------------------------------------
             As of December 31, 1995, the Company operated primarily as a
research and development company working to identify applications and develop
products for the EPAT Technology.  The EPAT Technology is an electro-
mechanical system that the Company believes is capable of reducing air
pollutants from commercial and industrial facility discharge systems by means
of an electrical field.  The process uses "non-thermal plasmas" generated by
electric arcs and coronas that energize air stream molecules and remove
pollutants by causing them to undergo molecular changes.  The Company believes
that the applications of this process have the potential to be used by oil
refineries, steel production plants, public utility power plants, co-
generation facilities, chemical producers, commercial printers, waste disposal
facilities, incinerators and other discharge facilities.

            The Company is currently in the process of developing and testing
a prototype configuration of the EPAT Technology. Tests of the EPAT Technology
occurred in June 1993 on a biomedical incinerator and in August 1993 on a
commercial printing facility. These tests were conducted by independent
testing agencies that measured removal rates of pollutants produced by
discharge systems at those facilities.  Management believes that the
achievement of removal rates measured in such tests by the Company's first
generation prototype offers considerable promise for the development of the
EPAT Technology for a number of applications, although there can be no
assurance that such development will be successful.

            During 1993, the Company began the development of a fourth
prototype EPAT system. This unit will be used in an on-site test of the EPAT
Technology and is an integral part of the development plan of the EPAT
Technology.  In addition to the manufacture of this prototype, the Company
successfully tested the EPAT Technology in a biomedical incinerator
application and in a commercial printing application.  Although neither test
was conclusive, each served to further establish the viability of the EPAT
Technology as potentially effective in reducing air pollutants.

            Marketing Strategy
           --------------------
            The Company's short-term marketing strategy is to install a
test/demonstration unit at a host facility, which would agree to purchase a
system from the Company at such time as the unit demonstrates its
effectiveness.  It is intended that a complete set of third party tests will
be conducted at this site to evaluate the capabilities and effectiveness of
the EPAT Technology.  Other opportunities will be sought to install units for
other applications that are compatible with the current stage of development
of the EPAT Technology in an attempt to attain technical credibility for the
systems.  Assuming the EPAT Technology is demonstrated to be successful in
effectively removing and reducing air pollutants, of which there can be no
assurance, it is anticipated that the devices using the EPAT Technology will
be manufactured in various sizes, and would be capable of removing and
reducing emissions of a wide range of pollutants and compounds and of
providing either primary or secondary air stream treatment.

            Competition
           -------------
            If the Company is able to develop a product using the EPAT
Technology that is demonstrated to be effective in removing or reducing air
pollutants, the Company believes that the EPAT Technology can compete
effectively with other technologies that are currently used to control
emissions of air pollutants, including, for example, scrubbers, electrostatic
precipitators, catalytic converters, carbon absorption systems, filtration
devices, thermal incinerators and other methods of controlling such emissions. 
If a system using the EPAT Technology is successfully developed, of which
there can be no assurance, the Company believes that such system will compete
favorably in a number of areas.  The Company's system is intended to reduce
multiple pollutants in a single process, while most currently existing systems
are effective in reducing only one pollutant in the air stream and require by-
product removal and clean-up.  The Company believes that its system will most
likely compete favorably in the area of initial cost, the costs of continued
maintenance and effectiveness.  The Company faces substantial competition,
however, from conventional environmental control methods and may compete with
companies that have more extensive research, marketing and manufacturing
capabilities and significantly greater financial, technical and personnel
resources than the Company.

            Patent and Patent Applications
           --------------------------------
            The Company has been issued a patent relating to the EPAT
Technology from the United States Patent and Trademark Office and has filed
patent applications in several foreign jurisdictions.  The Company may seek
additional patents with respect to the EPAT Technology in the United States
and internationally.

            Research and Development
           --------------------------
            As described above, virtually all of the Company's operations have
consisted primarily of research and development activities with respect to the
EPAT Technology.

            Employees
           -----------
            As of December 31, 1995, the Company did not employ any full time
employees.

Item 2.     PROPERTIES.

            As of December 31, 1995, the Company did not own any real
property. 

Item 3.     LEGAL PROCEEDINGS.

            The Company was a co-defendant, along with the Taylors and Nu-Arc
Scientific in litigation regarding marketing and manufacturing rights with
respect to the EPAT Technology, in an action entitled Bio-Arc Inc., a Delaware
Corporation v. Edward O. Taylor and Carole A. Taylor, Civil No. 920903383,
Third Judicial District of Salt Lake County, Utah.  An out of court settlement
was negotiated in this case to be paid in cash and stock.  An order dismissing
the action was signed on June 29, 1994.  

            On September 29, 1993 Mitchell Godfrey took an assignment on a
judgment in favor of Brown & Brown, plaintiff in the case of Brown & Brown,
P.C. v. Nu Arc Scientific Incorporated, Carole Taylor and Edward Taylor, Third
District Court of Salt Lake County, Utah, in the amount of $50,000. Mr.
Godfrey then succeeded in a garnishment proceeding in attaching U.S. patent
application serial no. 07/786,261, held by the defendants in satisfaction of
the judgment.  Mr. Godfrey subsequently assigned this patent to EPAT.  

            The Company was named a defendant in an action entitled Bank One,
Utah, National Association v. Environmental Plasma Arc Technology, Civil No.
930905654CN, Third Judicial District of Salt Lake County, Utah, seeking to
recover from the Company certain sums relating to an overdraft in the
Company's account with Bank One.  The Company entered into a settlement
agreement (the "Settlement Agreement") with Bank One in March 1994, pursuant
to which the Company agreed to pay the principal sum of the overdraft of
$101,606.27 plus interest and certain expenses.  Bank One agreed to assign to
the Company Bank One's claim against Nu Arc Scientific relating to an
overdraft in a Nu Arc Scientific account with Bank One.  The Company was
unable to meet the terms of the Settlement Agreement and on September 19, 1994
the co-defendants repaid the overdraft sums and some additional monies and
took an assignment of the Bank's claim against the Company.  All of the
parties to the Settlement Agreement expressly reserved all claims against
Edward and Carole Taylor and NuArc Scientific.  Additionally, the Company
pledged all of its assets (including patent rights as) collateral for the
payments of the overdraft amount.  The lawsuit has been dismissed with respect
to the Company with prejudice.

            During 1994, the Company negotiated stock settlement agreements
with several vendors and creditors of the Company.  The board of directors
also approved the settlement of several obligations of Nu-Arc Scientific, Inc.
and Edward and Carole Taylor, with stock of the Company owned by shareholders
of the Company.  This was done to alleviate the risk of any future claims
being brought against the Company's right to market the technology purchased
from Nu-Arc Scientific and Edward and Carole Taylor.  Approximately $271,553
of accounts payable and accrued expenses recorded on the books of the Company
at December 31, 1993 were satisfied through these settlement agreements.  

Item 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

            No matter was submitted to a vote of the Company's stockholders
during the fourth quarter of the year ended December 31, 1995.

                                   Part II

Item 5.     MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

            During the period covered by this Form 10-KSB report, there has
been no public market for the Company's Common Stock.  The Company's Common
Stock, par value $.001 per share, is the only class of securities of the
Company that is authorized, issued and outstanding.  As of January 31, 1996
there were 18,275,000 shares issued and outstanding, held by approximately 616
stockholders of record.

            The Company has never paid any dividends on its outstanding shares
of Common Stock, and no dividends are contemplated to be paid in the
foreseeable future.

Item 6.     PLAN OF OPERATION.

            The Company had no revenues from operations for the fiscal year
ended December 31, 1995.

            The Company owns an exclusive license in the EPAT Technology. 
Since 1992, it has been the intent of the Company to develop a plan to exploit
the EPAT Technology as an exclusive licensee.  As of the date hereof, the
Company s inventory of systems utilizing the EPAT Technology ( EPAT Systems )
is limited to two demonstration/test models, one production model to be
utilized for beta testing purposes and one commercially viable model which the
Company feels is ready for market with a commercial value of approximately
$250,000.

            The Company is pursuing and will continue to pursue opportunities
to market the EPAT Technology to potential customers as well as to pursue
strategic combinations with potential business partners in an attempt to
maximize the value of the EPAT Technology and the EPAT Systems.

            Although the Company has several potential sources of capital
resources, its liquidity position is not sufficient to allow for substantial
growth activity.  The Company currently has no employees and is in need of
significant capital to enable it to pursue its objective of demonstrating the
EPAT Technology to potential customers and to obtain orders for the EPAT
Systems and to produce EPAT Systems in a timely manner.

            The Company does not intend or expect to purchase or sell any
significant equipment or assets, undertake any research and development, or to
hire any employees until such time as sufficient capital has been raised to
allow the Company to pursue operations.

Item 7.     FINANCIAL STATEMENTS.

            The consolidated audited financial statements of the Company for
the fiscal year ended December 31, 1995 are attached hereto and incorporated
herein by reference.


Item 8.     CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

             None.

                                   Part III

Item 9.     DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT.

            (a)     Directors and Executive Officers.

            The following table sets forth as of December 31, 1995 certain
information regarding the executive officers and directors of the Company.

Name                   Age            Position
----                   ---            --------

Mitchell T. Godfrey    50            President, Director

Gary R. Littler        55            Vice President, Director

Leslie Z. Libman       54            Secretary/Treasurer, Director

            Mitchell T. Godfrey  has served as a director of the Company since
September 1992.  Since 1987, Mr. Godfrey has held the following positions:
from 1987 through 1988 Mr. Godfrey was President of Rocky Mountain Collection;
from June 1988 through the present he has been the Vice-President of Tax
Planning Inc.; from November 1991 until present date he has served as
President of Tirex Inc.; and, for the past ten years through the present date
he has served as co-owner of M & M Development, Inc.  In the foregoing
positions, Mr. Godfrey's areas of responsibilities have been in an
administrative capacity and in such areas as employee relations, sales and
marketing.

            Gary R. Littler was Executive Vice President of Advanced
Biotherapy Concepts, Inc., a public biomedical company engaged in imino-
deficiency disease research.  He received his Bachelor of Science degree form
the University of Florida in 1968.  Form 1968 to 1975 he was a Senior
Technical Representative and Territorial Manager for Photo Products Department
of E.I. Dupont de Nemours & Co., Inc.  In 1975 he formed Littler, Ltd., a
California corporation that structured and funded feature length motion
pictures through tax shelter investment packages.  From 1975 to 1979 Mr.
Littler acted as an investment consultant, advising start up businesses and
businesses seeking acquisitions.  In 1979 he became associated with Mountain
High Properties, Inc. of Dallas, Texas, in the development and marketing of
resort condominiums.  He has held the position of Director of Marketing and
Franchise sales for an established ice cream processing company, and has
worked as an investment consultant for RJP Investments, Inc., an investment
marketing company located in San Juan Capistrano, California.

            Leslie Z. Libman is a graduate of the University of Miami with a
Bachelor s degree in Business Administration and the University of Miami
School of Law with the degree of Juris Doctorate.  He has been a member of the
Florida Bar since 1966.  He has practiced law in the fields of franchising and
licensing, corporate law and contracts, international commercial transactions
and litigation, both civil and criminal, as well as a period of service as
Assistant City Attorney for the City of Miami Beach, Florida, as a prosecutor
and appellate attorney.  He was the co-founder, developer and managing partner
of an international business enterprise from 1973 until he sold his interest
in 1986.  he has served as officer, director and in-house counsel for several
corporations of which three have been public companies.  Mr. Libman has
served, at various times, in the capacity of President, Director and in-house
counsel to Environmental Plasma Arc Technology, Inc. under its previous name,
and drafted the agreements whereunder the company s technology was originally
acquired. 
    
            (b)     Compliance with Section 16(a) of the Exchange Act.

            The Company does not have a class of securities registered under
the Securities Exchange Act of 1934, and, therefore, its officers, directors
and holders of more than 10% of the outstanding shares of the Company are not
subject to the provisions of Section 16(a).

Item 10.     EXECUTIVE COMPENSATION.

            (a)     Executive Compensation.

            No executive officers received any compensation whatsoever during
the fiscal year ended December 31, 1995.

            (b)     Employment Agreements.

            None.

Item 11.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

            The following table sets forth, as of January 31, 1996 the name
and address of each person who is known by the Company's Board of Directors to
be the beneficial owner of more than 5% of the Company's outstanding Common
Stock and the beneficial ownership of the Company's Common Stock by the
Company's directors and executive officers.

            Under the rules of the Securities and Exchange Commission, a
person is deemed to be the beneficial owner of securities if he has or shares
"voting power" (which includes the power to vote, or to direct the voting of,
such securities) or "investment power" (which includes the power to dispose,
or to direct the disposition, of such securities).  A person is also deemed to
be the beneficial owner of any securities that he has the power to acquire
beneficial ownership of within 60 days.  Under these rules, more than one
person may be deemed the beneficial owner of the same securities.

Name and                   No. of Shares         Percent of Outstanding
Address                    Beneficially Owned    Common Stock
-------                    ------------------    ------------

Mitchell T. Godfrey        1,566,250             9.0%
c/o Mt. Baldy Associates
3626 Highway 284
Townsend, MT  59644

Gary R. Littler            736,900               4.0%
1025 Ocean Avenue
Apt. 303
Santa Monica, CA 90403

Leslie Libman              341,000               1.9%
3445 115th Avenue
Apt. 318
Bellevue, WA 98004

Richard W. Patton          1,380,000             7.9%
82 Lloyd Avenue                                               
Malvern, PA  19355

John Clayton               1,280,800             7.4%
P.O. Box 2033
Sandy, Utah 84094

David A. Orischak          1,000,000             5.7%
3 Bell Circle
Malvern, PA  19355

Item 12.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

            John Clayton received shares for his services as promoter of the
Company's securities in various offerings and placements of the Company's
securities.

Item 13.    EXHIBITS AND REPORTS ON FORM 8-K.

            (a)      Exhibits.

     Exhibit No.  Description

     3.1          Articles of Incorporation of the Company, as amended.
     3.2          By-laws of the Company

     23           Consent of Jones, Jensen & Company.*
     27           Financial Data Schedule *

            (b)  Reports on Form 8-K.

            None.
_______________
*filed herewith

                                 SIGNATURES

          In accordance with Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

                                       ENVIRONMENTAL PLASMA
                                       ARC TECHNOLOGY, INC.

December 30, 1996.                     By:/s/ Mitchell T. Godfrey
                                          ------------------------------
                                          Mitchell T. Godfrey
                                          President, Director, and Chief
                                          Executive Officer

          In accordance with the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.

December 30, 1996             By:/s/ Mitchell T. Godfrey
                                 ----------------------------------------
                                  Mitchell T. Godfrey
                                  President, Director, Chief Executive Officer

December 30, 1996             By: /s/ David Rees
                                ----------------------------------------
                                  David Rees
                                  Secretary/Treasurer and Director

                 ENVIRONMENTAL PLASMA ARC TECHNOLOGY, INC.
                       (A Development Stage Company)

                     Consolidated Financial Statements

                        December 31, 1995 and 1994


                                CONTENTS

Independent Auditors  Report                                   3

Consolidated Balance Sheets                                    4

Consolidated Statements of Operations                          5

Consolidated Statements of Stockholders  Equity (Deficit)      6

Consolidated Statements of Cash Flows                          9

Notes to the Consolidated Financial Statements                11


<PAGE>
<Letterhead of Jones, Jensen & Company, Certified Public Accountant, appears
here>

                       INDEPENDENT AUDITORS' REPORT
                       ----------------------------

Board of Directors
Environmental Plasma Arc Technology, Inc.

We have audited the accompanying consolidated balance sheets of Environmental
Plasma Arch Technology, Inc. (A Development Stage Company), as of December 31,
1995 and December 31, 1994, and the related consolidated statements of
operations, stockholders' equity and cash flows for the years ended December
31, 1995, 1994 and 1993 and from inception on February 10, 1986 to December
1995. These financial statements are the responsibility of the Company's
management.  Our responsibility is to express an opinion on the consolidated
financial statements and financial statement schedules based on our audits. 

We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatements.  An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
consolidated financial statements.  An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.  We believe
that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above,
present fairly, in all material respects, the financial position of
Environmental Plasma Arc Technology, Inc. (A Development Stage Company), as of
December 31, 1995 and 1994, and 1993 and from inception on February 10, 1986
to December 31, 1995 in conformity with generally accepted accounting
principles. 

The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern.  The Company has suffered
recurring losses from operations that raises substantial doubt about its
ability to continue as a going concern.  Management s plans in regard to these
matters are described in Note 6.  The financial statements do not include any
adjustments that might from the outcome of this uncertainty.

/S/ Jones, Jensen & Company
Jones, Jensen & Company
October 30, 1996

<PAGE>
                  ENVIRONMENTAL PLASMA ARCH TECHNOLOGY, INC.
                         (A Development Stage Company)
                          Consolidated Balance Sheets
     
                                   ASSETS
                                   ------
<TABLE>
<CAPTION>
                                              December 31, 
                                              ------------
<S>                                    <C>                <C>
                                       1995               1994
                                       -----------       ----------   
CURRENT ASSETS
  Cash                                 $ -                $   6,775     
  Work in process inventory (Note 1)      341,128           341,128
                                          -------           -------            
     Total Current Assets                 341,128           347,903
                                          -------           -------

PROPERTY AND EQUIPMENT (Note 4)            22,169            28,491
                                           ------            ------

       TOTAL ASSETS                    $  363,297         $ 376,394
                                          ========        =========
</TABLE>

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                 ----------------------------------------------
<TABLE>
<CAPTION>
                                               December 31, 
                                               ------------
<S>                                    <C>                <C>
                                       1995               1994
                                       ----               ----        
CURRENT LIABILITIES
 Accounts payable                      $  304,949         $300,176
 Accrued expenses                          49,744           54,550 
 Payroll taxes payable                     60,139           33,031
 Notes payable - shareholders (Note 3)    241,128          224,088
 Note payable - (Note 7)                    2,485            2,485
                                            -----            -----
    Total Current Liabilities             658,445          614,330             
                                         --------         --------

COMMITMENTS AND CONTINGENCIES (NOTE 2)         -               -     
                                         ---------        --------

STOCKHOLDERS' EQUITY (DEFICIT)
 Common stock - $0.001 par value; 
   50,000,000 shares authorized; 
   18,195,000 and 18,275,000 
   shares issued outstanding, 
   respectively                            18,195           18,275
 Additional paid-in capital             1,679,579        1,679,814        
 Deficit accumulated during the 
 development stage                     (1,992,922)      (1,936,025)
                                       -----------      -----------

 Total Stockholders' Equity (Deficit)    (295,148)        (237,936)            
                                         ---------       ---------

     TOTAL LIABILITIES AND 
      STOCKHOLDERS' EQUITY (DEFICIT)   $  363,297        $ 376,394
                                       ==========        ==========
</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.


                 ENVIRONMENTAL PLASMA ARC TECHNOLOGY, INC.
                      (A Development Stage Company)                 
                  Consolidated Statements of Operations

<TABLE>
<CAPTION>

                                                                                 On February 10,           
                                     For the Years Ended December 31,            1986 to
                                -------------------------------------------      December 31,    
                                1995               1994           1993           1995
                                --------------    ------------   ------------    ------------
<S>                             <C>                <C>            <C>            <C>
REVENUES                        $ -                $ -            $ -            $     50,000

EXPENSES
 Selling expense                  -                    -            109,489           109,489
 Depreciation and amortization      6,322               1,203         8,045            17,298
 Research and development         -                    -             25,738            42,492
 General and administrative        22,338             325,939       706,370         1,608,092
                                   ------             -------       -------         ---------

     Total Expenses                28,660             327,142       849,642         1,777,371
                                   ------             -------       -------         ---------

OPERATING INCOME (LOSS)           (28,660)           (327,142)     (849,642)       (1,727,371)
                                  --------            -------       -------         --------- 
OTHER INCOME (EXPENSE)
 Interest                         (28,237)           (19,950)        (5,125)          (53,312)
 Loss on disposal of assets       -                  (36,492)          (339)         (211,831)  
 Income Taxes                     -                     (208)          (100)             (408)
                                 ---------           --------          -----             -----

      Total Other Income
        (Expense)                 (28,237)           (56,650)        (5,564)         (265,551)          
                                  --------           --------        -------         ---------

NET LOSS                        $ (56,897)         $(383,792)     $(855,206)     $ (1,992,922)
                                ==========         ===========    ==========     =============
Weighted average loss per
 share                          $   (0.00)         $   (0.02)     $   (0.04)
                                ==========         ===========    ==========             

</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.








                  ENVIRONMENTAL PLASMA ARC TECHNOLOGY, INC.
                       (A Development Stage Company)
          Consolidated Statements of Stockholders  Equity (Deficit)

<TABLE>
<CAPTION>


                                                               Deficit
                                                               Accumulated               Total
                           Common Stock           Additional   During the                Stockholders 
                          --------------          Paid-in      Development    Treasury   Equity         
                         Shares       Amount      Capital      Stage          Stock      (Deficit)
                         ----------  ----------   --------     -----------    ---------  ----------
<S>                      <C>         <C>          <C>          <C>            <C>        <C>
Balance, 
 February 10, 1986         -          $  -        $ -          $ -            $ -        $     -        

Shares  issued to  
officers and directors 
at $.025 per share         200,000         200        4,800      -              -             5,000

Net loss for the 
period ended December 
31, 1986                    -           -            -              (160)       -              (160)
                           -------     --------     -------    ------------  ----------   ----------
Balance,
December 31, 1986          200,000         200        4,800         (160)       -             4,840
             
Shares issued through
public offering at $.25
per share                  400,000         400       99,600      -              -           100,000   

Public offering costs        -          -           (20,315)     -              -           (20,315) 

Shares issued in 
acquisition of wholly-
owned subsidiary           720,000         720       29,280      -              -            30,000

Shares issued through
private placement at 
$2.50 per share             10,000          10       24,990      -              -            25,000

Net loss for the year 
ended December 31, 1987      -           -            -          (36,112)       -           (36,112)
                          ----------  ---------    -----------   ------------  ---------    --------
Balance 
December 31, 1987        1,330,000       1,330      138,355      (36,272)       -           103,413

Shares issued trough
private placement at
$2.50 per share             30,000          30       74,970      -              -            75,000

Net loss for the year 
ended December 31, 1988      -           -            -          (48,075)       -           (48,075)
                         ----------   ---------   ---------      --------   ---------       --------
Balance
December 31, 1988        1,360,000       1,360      213,325      (84,347)       -           130,338

Net loss for the year 
ended December 31, 1989      -           -            -         (175,094)       -          (175,094)
                         -----------  ----------  ----------   -----------  ----------     ---------
Balance
December 31, 1989        1,360,000    $ 1,360     $ 213,325    $(259,441)     $ -         $ (44,756)
                   ---------- --------  --------  ---------- --------  ---------
</TABLE>


The accompanying notes are an integral part of these consolidated financial
statements.



                   ENVIRONMENTAL PLASMA ARC TECHNOLOGY, INC.
                       (A Development Stage Company)
   Consolidated Statements of Stockholders  Equity (Deficit) (Continued)

<TABLE>
<CAPTION>


                                                               Deficit
                                                               Accumulated               Total
                              Common Stock        Additional   During the                Stockholders 
                         ----------------------   Paid-in      Development    Treasury   Equity         
                         Shares       Amount      Capital      Stage          Stock      (Deficit)
                         -----------  ---------  ----------   -------------  ----------  ----------
<S>                      <C>          <C>         <C>         <C>            <C>         <C>
Balance, 
December 31, 1989         1,360,000    $ 1,360    $213,325     $ (259,441)   $  -        $ (44,756)     
              
Expenses paid on behalf
of the Company by      
Stockholders                -           -           53,481        -              -          53,481

Shares issued for 
services provided by 
stockholders at 
$.001 per share             170,000        170        (170)       -              -             -        

Net loss for the year 
December 1990               -           -            -            (8,685)       -           (8,685)
                           --------    --------    --------     ---------      ---         -------
Balance,
December 31, 1990         1,530,000      1,530     266,636      (268,126)       -               40
            
Net loss for the year 
ended December 31, 1991     -           -            -           (41,701)       -          (41,701)
                          ----------   --------   ---------     ---------     ------       --------
Balance 
December 31, 1991         1,530,000      1,530     266,636      (309,827)        -         (41,661)

Shares issued for   
cash and relief of  
debt                        470,000        470      80,370          -            -          80,840

Shares issued for 
marketing and 
manufacturing rights     14,000,000     14,000     (14,000)         -            -             -

Shares issued for 
services performed        2,000,000       2,000     (2,000)         -            -             -

Shares issued through
private placement at
$.25 per share            2,000,000       2,000     453,692         -          (192)       455,500

Net loss for the year 
ended December 31, 1992      -            -          -         (387,200)        -         (387,200)
                         -----------   --------    ---------   -----------     --------   --------

Balance
December 31, 1992        20,000,000   $  20,000   $ 784,698   $(697,027)     $ (192)     $ 107,479
                        -----------  ----------    ---------   ----------    ----------   ---------     
</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.

                       




                  ENVIRONMENTAL PLASMA ARC TECHNOLOGY, INC.
                       (A Development Stage Company)
   Consolidated Statements of Stockholders  Equity (Deficit) (Continued)
<TABLE>
<CAPTION>
                                                               Deficit
                                                               Accumulated               Total
                            Common Shares         Additional   During the                Stockholders 
                         ----------------------   Paid-in      Development    Treasury   Equity         
                        Shares       Amount       Capital      Stage          Stock      (Deficit)
                        -----------  ---------   -----------   -----------  ----------  ------------
<S>                     <C>          <C>          <C>          <C>          <C>          <C>
Balance, 
December 31, 1992        20,000,000    $20,000    $ 784,698    $(697,027)   $ (192)      $   107,479    
                
Shares issued through
private placement at   
$.25 per share              -           -            47,808       -            192            48,000
Cancellation of shares
issued for private 
placement                (2,000,000)    (2,000)       2,000       -              -          -

Shares through
private placement 
at $.50 per share           332,000        332      165,860       -             -            166,192  

Capital contributed 
by shareholder              -           -            80,826       -             -             80,826

Net loss for the year   
December 1993               -           -            -           (855,206)      -           (855,206)
                          -----------  ----------  -----------  ----------  ----------   -------------- 
Balance,
December 31, 1993        18,332,000     18,332     1,081,192   (1,552,223)      -           (452,709)

Cancellation of
shares                      (57,000)       (57)           57      -             -             -

Capital contributed
by shareholders              -          -            598,565      -             -            598,565 

Net loss for the year 
ended December 31, 1994      -          -            -           (383,792)      -           (383,792)
                         -----------  -----------  ------------ ----------   ----------   ------------- 
Balance 
December 31, 1994        18,275,000     18,275     1,679,814   (1,936,025)      -           (237,936)

Cancellation of 
shares (Note 5)             (80,000)       (80)      (40,900)     -             -            (40,980)

Capital Contributed               
by shareholders              -           -            40,665      -             -             40,665

Net loss for the year 
ended December 31, 1995      -          -            -            (56,897)      -            (56,897)
                          ----------  ---------  -----------   ----------   ----------    -------------
Balance
December 31, 1995        18,195,000   $ 18,195    $1,679,579  $(1,992,922)   $  -         $ (295,148)
                         =========== ========== ============ =============   ==========   ============

</TABLE>

The accompanying notes are an integral part of these financial statements.








                 ENVIRONMENTAL PLASMA ARC TECHNOLOGY, INC.
                      (A Development Stage Company)                 
                  Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>

                                                                                From Inception
                                                                                  On February 10,          
                                                                                  1986 to
                                     For the Years Ended December 31,             December 31,    
                                1995                 1994         1993            1995
                                -------------       ------------  -----------     -------------
<S>                             <C>                 <C>           <C>             <C>
CASH FLOWS FROM OPERATING
ACTIVITIES

Net Loss From Operations        $ (56,897)           $ (383,792)  $ (855,206)     $(1,992,922) 

Adjustments to Reconcile
 Net Cash Provided by
 Operating Activities
 Depreciation and amortization      6,322                 1,203        8,045           17,298
 Loss on disposal of assets       -                      36,492          339           36,831
 Changes operating assets
 and liabilities (Increase)
 decrease in receivables          -                    -              50,000        -
 (Increase) decrease in 
  inventory                       -                     (36,589)    (202,390)        (341,128) 
  employee and shareholder
 advances                         -                       9,176      101,315            9,176
Increase (decrease) in 
payables, accrued expenses
and payroll taxes                 (10,905)             (260,697)     472,932          370,321
                                  --------             ---------     -------          --------

Net Cash Used by Operating
Activities                        (61,480)             (634,207)    (424,965)      (1,900,424)  
                                ----------            ----------   ----------     ------------


CASH FLOWS FROM INVESTING
ACTIVITIES

Purchase of fixed assets          -                    -             (12,930)         (85,818)
Payment of organization costs     -                    -                -                (110)
Cash from sale of assets          -                         970        1,000            1,970
Cash placed in trust              -                      20,000      (20,000)            -
                                 ---------               ------      --------         --------

Net Cash Used by Investing
Activities                      $ -                  $   20,970   $  (31,930)     $   (83,958)
                                 ---------               ------      --------         --------             

</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.

<TABLE>
<CAPTION>










                                                                                From Inception
                                                                                  On February 10,          
                                                                                  1986 to
                                     For the Years Ended December 31,             December 31,    
                                1995                 1994         1993            1995
                                ------------         ----------  ------------     ---------------
<S>                             <C>                  <C>          <C>             <C>
CASH FLOWS FROM FINANCING
ACTIVITIES

Contribution by stockholders    $   40,665           $ 758,403    $ 128,826       $  996,375
Payment to stockholder            -                    -            -                (13,202)
Sale of common stock              -                    -            166,000          876,185
Cash received from debt 
financing                           14,040             -            246,354          364,384
Cash paid on debt financing       -                   (138,391)     (84,285)        (239,360)
                                 ---------            ---------     --------        ---------

Net Cash Provided from
Financing Activities                54,705             620,012      456,895        1,984,382
                                    ------             -------      -------        ---------

NET INCREASE (DECREASE)IN CASH      (6,775)              6,755      -               -

CASH AT BEGINNING OF PERIOD      $   6,775             -            -               -
                                 ---------          ----------    ---------       ----------

CASH AT ENDING OF PERIOD         $ -                 $   6,775    $ -             $ - 
                                 ===========        ==========   ===========     ============
SUPPLEMENTAL CASH FLOWS
INFORMATION:
 CASH PAID FOR:
 Interest                        $ -                 $ -          $ -             $ -
 Income taxes                    $ -                 $ -          $ -             $ -

NON CASH FINANCING ACTIVITIES:  
 Issuance of stock for relief 
  of note payable                $ -                 $ -          $ -             $  40,840
 Capital contributed by
 shareholders                    $ 40,665            $ 598,565    $ -             $ 639,230
   

</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.


                        ENVIRONMENTAL PLASMA ARC TECHNOLOGY, INC.
                              (A Development Stage Company)
                     Notes to the Consolidated Financial Statements
                               December 31, 1995 and 1994

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization
------------

The financial statements presented are those of Environmental Plasma Arc
Technology, Inc. (The Company).  The Company was incorporated under the laws
of the State of Nevada on February 10, 1986 as Bio-Helix, Inc.  The Company
was organized for the purpose of searching out and acquiring or participation
in a business or business opportunity.  On July 13, 1992, the Company s name
was changed to Concept Gold, Inc., and on September 30, 1992, the shareholders
of the Company voted to change the name to Environmental Plasma Arc
Technology, Inc.  At such time, the Company resolved to issue stock for an
agreement between Nu-Arc Scientific, Inc., Edward Taylor and Carole Taylor,
which gave the Company exclusive marketing and manufacturing rights of certain
patented air purification systems for internal combustion engines and other
applications.  The Company is currently in the beginning stages of marketing
and manufacturing these purification systems, and no significant revenues have
been realized from the sale of these purification system units. Accordingly,
the Company is classified as a development stage company as defined in SFAS
No. 7.

Consolidation
-------------

The consolidated financial statements are those of Environmental Plasma Arc
Technology, Inc. and its wholly owned subsidiary EPAT Marketing Corporation. 
All intercompany accounts have been eliminated in the consolidation.

Work in Process Inventory
-------------------------

Work in process inventories are stated at the lower of cost or market and
consist of the following:


                                     1995          1994
                                     ----          ----
     Materials                       $ 277,915     $277,915
     Labor                              63,213       63,213
                                     ---------     --------
   
                                     $341,128      $341,128
                                     --------      --------

These costs have been incurred in manufacturing air purification systems for
resale. At December 31, 1995 and 1994, the estimated market value was assessed
and the cost of the inventory was decreased by a valuation account in the
amount of $-0- and #32,467, respectively.


                        ENVIRONMENTAL PLASMA ARC TECHNOLOGY, INC.
                              (A Development Stage Company)
               Notes to the Consolidated Financial Statements (Continued)
                               December 31, 1995 and 1994

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Organization Costs
------------------

The Company amortized its organization costs, which reflect amounts expended
to organize the Company, over sixty months using the straight-line method.

Cash
----

The Company considers all highly liquid debt instruments purchased with a
maturity of three months or less to be cash equivalents.

Income Taxes
------------

No federal taxes have been accrued due to net operating losses in each year
presented.  The Company has net operating loss carryovers of approximately
$1,780,000 which, begin to expire in 2007 through 2000.  The minimum state
income taxes of $100 have been accrued at December 31, 1995 and 1994,
respectively.  No tax benefit has been reported in the financial statements
for the net operating loss carryforward because of the uncertainty that
sufficient future income will be generated to offset the losses.  The
valuation allowance of the loss carryforwards offset any potential tax
benefit.

Reclassifications
-----------------

Certain 1994 items have been reclassified to conform to the 1995 presentation.

Recently issued Accounting Standards
------------------------------------

In March 1995, the Financial Accounting Standards Board issued a new statement
titled  Accounting for Impairment of Long-Lived Assets.   This new standard is
effective for years beginning after December 15, 1995, but was adopted early
by the Company.  The early adoption of the new standard did not have a
material effect on the financial statements.

In October 1995, the Financial Accounting Standards Board issued a new
standard titled  Accounting for Stock-Based Compensation .  This new standard
encourages, but does not require, companies to recognize compensation expense
for grants of stock, stock options, and other equity instruments to employees
based on fair value.  Companies that do not adopt the fair value accounting
rules must disclose the impact of adopting the new method in the notes to the
financial statements.  Transactions in equity instruments with non-employees
for goods or services must be accounted for on the fair value method. 
Although the Company has not performed a detailed analysis of the impact of
this new standard on the Company s financial statements, the Company does not
believe that adoption of the new standard will have a material effect on the
financial statements. 


                        ENVIRONMENTAL PLASMA ARC TECHNOLOGY, INC.
                              (A Development Stage Company)
               Notes to the Consolidated Financial Statements (Continued)
                               December 31, 1995 and 1994

NOTE 2 - COMMITMENTS AND CONTINGENCIES

The Company was included in a lawsuit as a co-defendant with, Nu-Arc
Scientific, Inc. Edward Taylor and Carole Taylor.  The litigation concerned
the marketing and manufacturing rights of the plasma arc technology, which
rights were purchased by the Company.  An out of court settlement of cash and
stock totaling $23,750 was negotiated on the case.  An order dismissing the
action was subsequently signed on June 29, 1994.

The Company is involved as a co-defendant in a law suit with Bank One.  Bank
One instituted a suit against the Company and certain affiliates of the
Company seeking to recover certain sums relating to overdrafts in the
Company s bank account.  On March 18, 1994, the Company and its affiliates
entered into a settlement agreement, and on September 19, 1994 the co-
defendants took assignments of the bank s claim.  The claims were paid by co-
defendants and were contributed to additional paid-in capital.

NOTE 3 - RELATED PARTY TRANSACTIONS AND NOTES PAYABLE - SHAREHOLDERS

All of the original shares issued were  restricted  shares and not to be
resold except in compliance with the provisions of Rule 144 promulgated by the
Securities and Exchange Commission.

Various shareholders advanced funds to the Company on a short-term basis as
needed.  The balances owed to the shareholders at December 31, 1995 and 1994
were $241,128 and $224,088, respectively.  The notes accrue interest at
various rates of 11.25% to 12.0%, are due on demand and are unsecured.  

                        ENVIRONMENTAL PLASMA ARC TECHNOLOGY, INC.
                              (A Development Stage Company)
               Notes to the Consolidated Financial Statements (Continued)
                               December 31, 1995 and 1994


NOTE 4 - PROPERTY AND EQUIPMENT

Property and equipment consists of the following at December 31:

                                           1995          1994
                                           ----          ----

Automobiles                                $  2,500     $ 2,500
Equipment                                     1,920       1,920
Furniture and fixtures                          497         497
Promotional video                            25,597      25,597
                                             ------      ------
Total                                        30,514      30,514

Less accumulated depreciation                (8,345)     (2,023)
                                             -------     -------

                                            $22,169      $28,491
                                            -------      -------
                                          
Property and equipment are recorded at cost.  Depreciation is provided using
the straight-line method over the estimated useful lives of the related
assets.  Depreciation expense for the years ended December 31, 1995 and 1994
was $6,322 and $1,203, respectively.

NOTE 5 - STOCKHOLDER TRANSACTIONS

On September 25, 1992, stockholders ratified an agreement dated August 10,
1992 to purchase the manufacturing and marketing rights of air purification
systems held by Nu-Arc Scientific, Inc., Edward Taylor and Carole Taylor.  The
agreement provided that 70% of the total issued and outstanding stock would be
issued for a private placement, and 10% would be held by the shareholders of
Concept Gold, Inc.

In November of 1992, the Company issued 14,000,000 shares for the marketing
and manufacturing rights to the  Plasma Arc Technology.   The value of the
rights was recorded at predecessor cost which was $-0-.

Also in November of 1992, the Company issued 2,000,000 shares to an investor
group for services performed, and 2,000,000 shares were issued and kept in
treasury for the private placement.  1,808,000 shares were sold for cash of
$455,500 with the remaining 192,000 shares remaining in treasury at December
31, 1992.  During 1993 the remaining 192,000 shares were sold for cash at $.25
per share.

In June 1993, the board of directors approved the cancellation of 2,000,000
shares issued to Nu-Arc Scientific, Inc.

As mentioned in Note 3, Nu-Arc Scientific, Inc. sold some of its stock in the
Company to pay liabilities incurred by the Company, with the remainder being
contributed to capital.

During 1993, Edward Taylor and Carole Taylor, major shareholders of the
Company, filed for bankruptcy.  Their stock was sold at a sheriff s sale to a
group of investors and certain shareholders of the Company, thus changing the
majority control of the Company.  In 1994 some of these shares were used to
settle debts of the Company. (See Note 8)

During 1994, the board of directors approved the cancellation of 57,000 shares
issued to Nu-Arc Scientific, Inc.

During 1995, 80,000 shares issued to a vendor in lieu of the payment were
returned to the Company and were canceled.  The corresponding liability was
added back to accounts payable.

NOTE 6 - GOING CONCERN

The Company s financial statements prepared using generally accepted
accounting principles applicable to a going concern which contemplates the
realization of assets and liquidation of liabilities in the normal course of
business.  However, the Company has not yet realized significant revenue from
the sale of the purification systems, and must rely on proceeds from stock
sales to continue operations.  The Company plans to continue to market the
systems in order to increase revenues to a level sufficient to support
operations.  Without realization of additional adequate financing it would be
unlikely that the Company will be able to pursue and realize its objectives.

                        ENVIRONMENTAL PLASMA ARC TECHNOLOGY, INC.
                              (A Development Stage Company)
               Notes to the Consolidated Financial Statements (Continued)
                               December 31, 1995 and 1994

NOTE 7 - NOTE PAYABLE

Notes payable at December 31, 1995 are as follows:

                                                   1995          1994
                                                   ----          ----
Note payable to an individual, bears interest at
12%, is due on demand and is unsecured.            $2,485        $2,485
                                                   ------        ------

Principal requirements are as follows:

          1996                                     $2,485

NOTE 8 - STOCK SETTLEMENTS

During 1994, the Company negotiated stock settlement agreements with several
vendors and creditors of the Company.  The board of directors also approved
the settlement of several obligations of Nu-Arc Scientific, Inc. and Edward
and Carole Taylor, with stock of the Company owned by shareholders of the
Company.  This was done to alleviate the risk of any future claims being
brought against the Company s right to market the technology purchased from
Nu-Arc Scientific, Inc. and Edward and Carole Taylor.

Approximately $271,553 of accounts payable and accrued expenses recorded on
the books of the Company at December 31, 1993 were satisfied through these
settlement agreements.

NOTE 9 - INTANGIBLE ASSETS

In November of 1993, a group of investors and certain shareholders of the
Company acquired the patent rights of the  Plasma Arc Technology .  The group
of investors and certain shareholders of the Company contributed the patent to
the Company.  The value of the patent was recorded at predecessor cost, which
was $-0-.

NOTE 10 - SUBSEQUENT EVENTS

The Company issued 6,019,000 shares of common stock during October 1996 to
cancel debt owed to related parties in the amount of $200,516.  An additional
2,000,000 shares of common stock were issued during October 1996 for services
rendered during 1996.