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 quarterly period ended December 31, 1999

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

    For the transition period from _______ to _______.

                         Commission File Number 0-28745

                         NATIONAL SCIENTIFIC CORPORATION
        (Exact name of small business issuer as specified in its Charter)

           Texas                                                 86-0837077
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)

                4455 East Camelback Road, E160, Phoenix, AZ 85018
          (Address of Principal Executive Offices, including Zip Code)

                   Issuer's telephone number: 602-954-1492

Indicate by check mark  whether the issuer (1) filed all reports  required to be
filed by Section 13 or 15(d) of the  Exchange  Act during the past 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 [  ]

42,930,889 shares of Common Stock, par value $.01 per share, were outstanding at
February 15, 2000.

Transitional Small Business Disclosure Format (Check One): Yes [ ] No [X]
<PAGE>
                         NATIONAL SCIENTIFIC CORPORATION

                                   FORM 10-QSB

                                      INDEX

Part I - Financial Information

     Item 1 - Financial statements (unaudited)

              Balance Sheet - December 31, 1999                            3

              Statements of Operations - Three Months ended
              December 31, 1999 and 1998 and Cumulative from
              October 1, 1997 (Inception) through December 31, 1999        4

              Statements of Cash Flows - Three Months ended
              December 31, 1999 and 1998 and Cumulative from
              October 1, 1997 (Inception) through December 31, 1999        5

              Statements of Changes in Shareholders' Equity -
              Fiscal Years ended September 30, 1999 and 1998
              and Quarter ended December 31, 1999                          6

              Notes to Financial Statements                                7

     Item 2 - Management's Discussion and Analysis of Financial
              Condition  and Results of Operations                         9

Part II - Other Information

     Item 2 - Changes in Securities and Use of Proceeds                   11

     Item 5 - Other Information                                           11

     Item 6 - Exhibits and reports on Form 8-K                            11

Signatures                                                                12
<PAGE>
                         PART I - FINANCIAL INFORMATION

                         NATIONAL SCIENTIFIC CORPORATION
                          (A Development Stage Company)
                        Unaudited Condensed Balance Sheet
                                December 31, 1999


                                     ASSETS
                                                                       1999
                                                                   -----------
Current assets:
  Cash and cash equivalents                                        $   702,521
                                                                   -----------
      Total current assets                                             702,521
                                                                   -----------
Property and equipment, net                                              3,006
                                                                   -----------
                                                                   $   705,527
                                                                   ===========

                 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
  Accounts payable and accrued expenses                            $    15,546
  Accrued interest                                                      11,280
  Note payable                                                         110,000

                                                                   -----------
      Total current liabilities                                        136,826
                                                                   -----------

                                                                   -----------
Shareholders' equity, (deficit):
  Preferred stock, $.10 par value; 4,000,000 shares
    authorized, No shares issued and outstanding                            --
  Common stock, par value $.01; 80,000,000 shares
    authorized, 42,930,889 shares issued and outstanding               429,309
  Additional paid-in-capital                                         4,605,049
  Deficit accumulated during the development stage                  (2,065,977)
  Accumulated deficit                                               (2,394,680)
  Receivable for return of stock                                        (5,000)
                                                                   -----------
                                                                       568,701
                                                                   -----------
                                                                   $   705,527
                                                                   ===========

                 See Accompanying notes to financial statements

                                       3
<PAGE>
                         NATIONAL SCIENTIFIC CORPORATION
                          (A Development Stage Company)
                  Unaudited Condensed Statements of Operations
             For the Quarters Ended December 31, 1999 and 1998, and
      For the Period from October 1, 1997 (Inception of Development Stage)
                            Through December 31, 1999

<TABLE>
<CAPTION>
                                                                                  Cumulative
                                                                                  Development
                                                     1999            1998            Stage
                                                  -----------     -----------     -----------
<S>                                            <C>               <C>             <C>
Revenues                                          $        --     $        --     $        --
                                                  -----------     -----------     -----------
Costs and expenses
 Consulting fees, related party                       405,000          44,450         935,775
 Salaries and benefits                                     --              --          73,706
 Research and development                              78,027          17,877         529,557
 Stock compensation                                    50,320              --         155,276
 Other                                                 62,324          16,833         334,585
                                                  -----------     -----------     -----------
                                                      595,671          79,160       2,028,899
                                                  -----------     -----------     -----------

Net loss from operations                             (595,671)        (79,160)     (2,028,899)
                                                  -----------     -----------     -----------
Other income (expense)
 Interest and other income                              4,074              --           5,354
 Interest expense                                      (2,750)             --         (13,877)
 Loss on disposal of assets                                --              --         (28,555)
                                                  -----------     -----------     -----------
                                                        1,324              --         (37,078)
                                                  -----------     -----------     -----------

Net loss before income tax benefit                   (594,347)        (79,160)     (2,065,977)

Provision for income taxes (benefit)                       --              --              --
                                                  -----------     -----------     -----------

Net loss                                          $  (594,347)    $   (79,160)    $(2,065,977)
                                                  ===========     ===========     ===========

Net loss per common share, basic and diluted      $     (0.01)    $        --
                                                  ===========     ===========
</TABLE>

                 See Accompanying notes to financial statements

                                       4

<PAGE>
                         NATIONAL SCIENTIFIC CORPORATION
                          (A Development Stage Company)
                  Unaudited Condensed Statements of Cash Flows
             For the Quarters Ended December 31, 1999 and 1998, and
      For the Period from October 1, 1997 (Inception of Development Stage)
                            Through December 31, 1999
<TABLE>
<CAPTION>
                                                                                       Cumulative
                                                                                       Development
                                                          1999            1998            Stage
                                                       -----------     -----------     -----------
<S>                                                    <C>             <C>             <C>
Cash flows from operating activities:
 Net loss                                              $  (594,347)    $   (79,160)    $(2,065,977)
 Adjustments to reconcile net loss to net
  cash used in operating activities:
  Depreciation                                                 334             334           8,561
  Loss on disposal of assets                                    --              --          28,555
  Stock issued for services                                474,820          20,413       1,192,797
  Decrease in receivables                                       --          12,500          30,000
  Decrease in prepaid expenses and deposits                     --              --          10,571
  Decrease in accounts payable and accrued expenses         (4,371)         (5,606)         (7,033)
  Increase in accrued interest                               2,750              --          11,280
                                                       -----------     -----------     -----------
      Net cash used in operating activities               (120,814)        (51,519)       (791,246)
                                                       -----------     -----------     -----------
Cash flows from investing activities:
 Proceeds from the sale of furniture and equipment              --              --           4,660
                                                       -----------     -----------     -----------
Cash flows from financing activities:
 Repayment of shareholder loans                                 --              --         (10,000)
 Proceeds from the issuance of common stock                750,000              --         748,181
 Proceeds from the issuance of preferred stock                  --          55,000         482,500
 Proceeds from exercise of common stock options             11,150              --         264,808
                                                       -----------     -----------     -----------
      Net cash provided by financing activities            761,150          55,000       1,485,489
                                                       -----------     -----------     -----------

Net increase in cash and cash equivalents                  640,336           3,481         698,903

Cash and cash equivalents, beginning of year                62,185          21,735           3,618
                                                       -----------     -----------     -----------
Cash and cash equivalents, end of year                 $   702,521          25,216         702,521
                                                       ===========     ===========     ===========
SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION

Cash paid during the year for interest                 $        --     $        --     $     2,597
                                                       ===========     ===========     ===========
Cash paid during the year for income taxes             $        --     $        --     $        --
                                                       ===========     ===========     ===========
</TABLE>

SUMMARY OF NON-CASH INVESTING AND FINANCING ACTIVITIES

During 1998,  the Company sold  equipment for $4660 in cash,  with the purchaser
assuming $9,252 in lease obligations.

During the  year-ended  September 30, 1999, the Company issued 451,440 shares of
restricted  common  stock to a  Director  in  exchange  for  320,000  shares  of
unrestricted common stock.

During the quarter-ended  December 31, 1999, the Company issued 1,128,600 shares
of  restricted  common  stock to a Director  in exchange  for 580,000  shares of
unrestricted common stock.

                 See Accompanying notes to financial statements

                                       5
<PAGE>
                         NATIONAL SCIENTIFIC CORPORATION
                          (A Development Stage Company)
        Unaudited Statements of Changes in Shareholders' Equity (Deficit)
              For the Years Ended September 30, 1999 and 1998, and
                     For the Quarter Ended December 31, 1999

<TABLE>
<CAPTION>
                                             Common Stock       Preferred Stock
                                         --------------------  -----------------  Additional                Development
                                          Number of            Number of            Paid-In   Accumulated     Stage
                                           Shares     Amount    Shares    Amount    Capital     Deficit       Deficit      Total
                                           ------     ------    ------    ------    -------     -------       -------      -----
<S>                                     <C>         <C>        <C>       <C>      <C>         <C>            <C>         <C>
Balance September 30, 1997               17,847,292  $178,473       --       --    2,160,780   (2,394,680)          --    (55,427)
Stock issued for services                 3,487,557    34,875       --       --      335,473           --           --    370,348
Private placement of preferred stock             --        --   49,500    4,950      242,550           --           --    247,500
Exercise of warrants and options            547,000     5,470       --       --      100,888           --           --    106,358
Conversion of preferred to common stock   3,450,000    34,500  (34,500)  (3,450)     (31,050)          --           --         --
Contributed capital                              --        --       --       --       14,850           --           --     14,850
Net loss                                         --        --       --       --           --           --     (772,545)  (772,545)
                                         ----------  --------  -------   ------   ----------   ----------   ----------   --------

Balance, September 30, 1998              25,331,849   253,318   15,000    1,500    2,823,491   (2,394,680)    (772,545)   (88,916)
                                         ----------  --------  -------   ------   ----------   ----------   ----------   --------
Stock issued for  services                3,165,000    31,650       --       --      315,979           --           --    347,629
Preferred stock offering                         --        --   47,000    4,700      230,300           --           --    235,000
Exercise of warrants and options            496,000     4,960       --       --       27,490           --           --     32,450
Private placement of common stock           400,000     4,000       --       --       96,000           --           --    100,000
Conversion of preferred to common stock   6,200,000    62,000  (62,000)  (6,200)     (55,800)          --           --         --
Common stock issued to collateralize
 loan                                       500,000     5,000       --       --           --           --           --      5,000
Stock converted by director's
 family member                              451,440     4,515       --       --       (4,515)          --           --         --
Net loss                                         --        --       --       --           --           --     (699,085)  (699,085)
                                         ----------  --------  -------   ------   ----------   ----------   ----------   --------

Balance, September 30, 1999              36,544,289   365,443       --       --    3,432,945   (2,394,680)  (1,471,630)   (67,922)
                                         ----------  --------  -------   ------   ----------   ----------   ----------   --------
Stock issued for  services                1,375,000    13,750       --       --      461,070           --           --    474,820
Preferred stock offering                         --        --       --       --           --           --           --         --
Exercise of warrants and options            118,000     1,180       --       --        9,970           --           --     11,150
Private placement of common stock         3,765,000    37,650       --       --      712,350           --           --    750,000
Stock converted by director's
 family member                            1,128,600    11,286       --       --      (11,286)          --           --         --
Net loss                                         --        --       --       --           --           --     (594,347)  (594,347)
                                         ----------  --------  -------   ------   ----------   ----------   ----------   --------

Balance, December 31, 1999               42,930,889   429,309       --       --    4,605,049   (2,394,680)  (2,065,977)   573,701
                                         ==========  ========  =======   ======   ==========   ==========   ==========   ========
Receivable for return of stock                                                                                             (5,000)
                                                                                                                         --------
                                                                                                                          568,701
                                                                                                                         ========
</TABLE>
                 See Accompanying notes to financial statements

                                       6
<PAGE>
                         NATIONAL SCIENTIFIC CORPORATION
                          (A Development Stage Company)
                          Notes to Financial Statements
                           December 31, 1999 and 1998



1. BASIS OF PRESENTATION

   The  accompanying  financial  statements  have been  prepared by the Company,
   without  audit,  and  reflect  all  adjustments  that are,  in the opinion of
   management,  necessary  for a fair  statement  of the results for the interim
   periods.  The  statements  have been  prepared in accordance  with  generally
   accepted accounting principles for interim financial reporting and Securities
   and  Exchange  Commission  regulations.   Certain  information  and  footnote
   disclosures  normally included in financial statements prepared in accordance
   with generally accepted accounting  principles have been condensed or omitted
   pursuant to such rules and  regulations.  In the opinion of  management,  the
   financial  statements  reflect  all  adjustments  (of a normal and  recurring
   nature)  which  are  necessary  for a  fair  presentation  of  the  financial
   position,  results of operations and cash flows for the interim periods.  The
   results of  operations  for the three months ended  December 31, 1999 are not
   necessarily  indicative  of the results to be expected for the entire  fiscal
   year.

   These financial  statements  should be read in conjunction with the financial
   statements and notes thereto included in the Company's registration statement
   on Form 10-SB, as amended, for the fiscal year ended September 30, 1999.

2. ISSUANCE OF COMMON STOCK

   During the quarter ended  December 31, 1999,  the Company  received  $750,000
   from a private  placement of common stock. In conjunction  with the offering,
   the Company issued 600,000 shares of restricted  stock valued at $72,000 to a
   principal  and a consultant of the Company.  The Company also issued  500,000
   shares  of  restricted  common  stock  to  consultants  as  compensation  for
   services. The stock was valued at 50% of the market price of the stock on the
   dates granted and earned.

3. STOCK OPTIONS

   The  Company  from time to time  issues  stock  options  for the  purchase of
   restricted  stock to  directors,  officers,  employees and  consultants.  The
   Company does not have a qualified  stock option plan for its  executives  and
   employees.

   The Company adopted Statement of Financial  Accounting Standards No. 123 (FAS
   123),  "Accounting for Stock-Based  Compensation,"  which permits entities to
   recognize  as  expense  over  the  vesting  period  the  fair  value  of  all
   stock-based  awards  on the date of grant.  Under the terms of the  Company's
   stock options granted to certain  directors,  officers and  consultants,  the
   Board of  Directors,  at its sole  discretion,  will  determine  when certain
   options granted shall be fully vested and exercisable.  At December 31, 1999,
   all  outstanding  stock  options  had been  deemed  vested,  and  were  fully
   exercisable at fiscal year end.

                                       7
<PAGE>
3. STOCK OPTIONS, CONTINUED

   In  accordance  with FAS 123, the fair value of option grants is estimated on
   the date of grant using the Black-Scholes  option-pricing  model for proforma
   footnote  purposes  with the  following  assumptions  used for  grants in all
   years;  dividend  yield of 0%,  risk-free  interest  rate of 6%, and expected
   option life of 2.5 years. Expected volatility was assumed to be 50% in 1999.

                                                                    Weighted
                                                      Number        Average
                                                        of          Exercise
                                                      Shares         Price
                                                      ------         -----

   Options Outstanding, September 30, 1999            92,000         $ .10
     Granted                                         256,000           .09
     Exercised                                      (118,000)          .09
                                                   ---------
   Options Outstanding, December 31, 1999            230,000           .10
                                                   =========

4. NET LOSS PER SHARE

   Net loss per share is computed by dividing  the loss  attributable  to common
   shareholders by the weighted average number of shares  outstanding during the
   period,  which was assumed to be 40,532,808  and  27,321,904 for the quarters
   ended  December 31, 1999 and 1998,  respectively.  Stock options and warrants
   are considered anti-dilutive and were not considered in the calculation.


                                       8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

SAFE HARBOR STATEMENT

Certain statements in this Form 10-QSB,  including information stated under Item
2  Management's  Discussion  and Analysis of Financial  Condition and Results of
Operations, constitute  "forward-looking  statements'  within the meaning of the
Private  Securities  Litigation  Reform Act of 1995 (the Act). We desire to make
available to ourselves  certain "safe  harbor"  provisions of the Act and we are
including this special note to enable us to do so.

Forward-looking  statements  in the  Form  10-QSB  or  those  included  in other
publicly available documents filed with the Securities and Exchange  Commission,
reports to our stockholders and other publicly  available  statements  issued or
released by us involve known and unknown risks,  uncertainties and other factors
which could cause our actual  results,  performance  (financial or operating) or
achievements  to differ  from the  future  results,  performance  (financial  or
operating)  or  achievements   expressed  or  implied  by  such  forward-looking
statements. Such future results are based upon management's best estimates based
upon current conditions and the most recent results of operations.

THREE MONTHS ENDED DECEMBER 31, 1999 COMPARED TO THREE MONTHS ENDED
DECEMBER 31, 1998

We are a development  stage company and,  therefore,  have no revenues to report
for the periods indicated above.

During the quarter ended December 31, 1999, we completed our private offering of
August 1, 1999.  We raised a total of  $830,000  for the entire  offering,  with
$750,000 of this coming in the quarter ended December 31, 1999.

We believe that our cash  position of $702,521 as of December  31,  1999,  to be
sufficient to continue operations for the next twelve months without the need to
raise additional  funds.  Such future  requirements are based upon  management's
best  estimates  based upon current  conditions  and the most recent  results of
operations.

In the next  twelve  months,  we expect to  increase  research  and  development
expenditures with additional staffing under our chief technical consultant,  Dr.
El-Sharawy.  The  purpose  of these  additional  expenditures  is to  bring  our
existing  products closer to the point of market readiness by producing  working
prototypes  along  with  design  and  process  specifications.  There  can be no
assurance  that we will be  successful  in  completing  these  tasks in the time
period estimated.

Operating  expenses for the three months ended December 31, 1999 of $595,671 are
up from the similar  period ended  December 31, 1998,  which were $79,160.  This
increase,  over the similar  period last year, was primarily due to the increase
in stock  compensation  to  consultants  and a principal  for the  completion of
specific  patent  related  projects and completion of the August 1, 1999 private
offering.

                                       9
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

On December 31, 1999, we completed our private  offering of August 1, 1999.  The
gross  proceeds of the offering  were  $830,000.  We believe we  presently  have
sufficient capital to fund our operations. Additional capital may be received as
a result of the exercise of warrants to acquire  9,650,000  shares of restricted
common  stock.  The  warrants  expire on  December  31,  2000 and were issued in
conjunction with our private offering of March 15, 1998, at an exercise price of
$1.00 per share. There can be no assurance,  however, that any of these warrants
will be exercised.

Cash used in  operations  was $120,814  for the three months ended  December 31,
1999 compared with $51,519 for the three month period ended December 31, 1998. A
substantial  portion of this increase can be attributed to the costs  associated
with the work done to bring about the filing of our Form 10-SB on  December  30,
1999.

YEAR 2000

We have  conducted  a review  to  identify  which  systems,  both  internal  and
external,  may be  affected  by the "Year  2000"  problem.  The  majority of our
business  processing   applications  operate  on  individual  personal  computer
systems.  We believe that the hardware and  operating  systems are now Year 2000
compliant  as of December 31,  1999.  If the current  systems are not fully Year
2000  compliant,  we estimate that the cost  associated  with becoming Year 2000
compliant will not materially  affect our future operating  results or financial
condition.

                                       10
<PAGE>
                            PART II - OTHER INFORMATION

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

On December 31, 1999,  we  completed  our private  offering of August 1, 1999. A
total of $830,000 was raised during the offering.  We sold  4,165,000  shares of
restricted  common  stock at an  average  price of $.20 per share for the entire
offering.  Of these totals,  $750,000 was raised and 3,765,000  shares were sold
for the quarter ended December 31, 1999.

As part of this  offering,  we also  issued  4,250,000  warrants  to  purchase a
restricted  share of common  stock at a price of $1.50 for each  warrant.  These
warrants are  immediately  exercisable and they all expire on December 31, 2001.
No warrants have been  exercised as of the date of this filing.  The shares were
sold in  reliance on the  exemption  provided by Sections 4 (2) and 4 (6) of the
Securities Act of 1933 and Rule 506 of Regulation D.

In addition,  during the quarter ending December 31, 1999,  1,375,000 restricted
shares of common stock were issued to consultants  and a principal for services,
including  600,000  restricted shares issued to a consultant and a principal for
their completion of the private offering of August 1, 1999;  118,000  restricted
shares of common stock were issued due to the  exercising of options  granted to
consultants;  and 1,128,600  restricted  shares of common stock were issued to a
principal as final payment for use of his family's unrestricted common stock for
the private offering of August 1, 1999.

ITEM 5. OTHER INFORMATION

Since the filing of Form 10-SB on December 30, 1999, our Form 10-SB amendment on
January 19, 2000 and prior to the filing of this Form  10-QSB,  we have  learned
that the U.S. Patent and Trademark  Office has issued two additional  patents on
the company's behalf;  patent 6,008,694 for our Distributed Amplifier And Method
Therefor was issued on December 28, 1999 and patent 6,013,939 for our Monolithic
Inductor  With  Magnetic  Flux Lines  Guided Away From  Substrate  was issued on
January 11, 2000.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     (a)  Exhibits

          27 -- Financial Data Schedule

     (b)  Reports on Form 8-K - No reports on Form 8-K were filed during
          the quarter.

                                       11
<PAGE>
                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                        NATIONAL SCIENTIFIC CORPORATION



Date: February 15, 2000                 /s/ L.L. Ross
                                        ----------------------------------------
                                        L.L Ross
                                        Chairman of the Board, President & Chief
                                        Executive Officer



                                        /s/ Vernon M. Traylor
                                        ----------------------------------------
                                        Vernon M. Traylor
                                        Corporate Secretary

                                       12