UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB


( X )                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                     SECURITIES AND EXCHANGE ACT OF 1934

                     For the quarterly period ended September 30, 1999

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

                     For the transition period from __________  to __________

                     Commission file number:  0-18271


                            MAGELLAN TECHNOLOGY, INC.
                    -----------------------------------------
             (Exact name of registrant as specified in its charter)


                  Utah                                  87-0467614
---------------------------------           -----------------------------------
(State or other jurisdiction of           (I.R.S. Employer Identification No.)
 Incorporation or Organization)

13526 South 110 West
Draper, Utah                                                         84020
---------------------------------------                              -----
(Address of principal executive offices)                           (Zip Code)


Registrant's telephone number, including area code:   (801) 495-2211
                                                   ----------------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the  Securities  and  Exchange Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes X No _____

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date:

                                                            Outstanding at
               Class                                      September 30, 1999
               -----                                      ------------------
Common Stock, $.0002 par value                            27,531,291 shares



<PAGE>


FORM 10-QSB

                       Financial Statements and Schedules
                            Magellan Technology, Inc.

                    For the Quarter Ended September 30, 1999

The  following  financial  statements  and schedules of the  registrant  and its
consolidated subsidiaries are submitted herewith:


                         PART I - FINANCIAL INFORMATION
                         ------------------------------
Item 1.           Financial Statements

                  Condensed  Consolidated  Balance Sheets for
                  September 30, 1999 and year-end for December
                  31, 1998                                                     3

                  Condensed Consolidated  Statements of
                  Operations for the three months and nine
                  months ended September 30, 1999 and 1998                     4

                  Condensed  Consolidated  Statements of Cash
                  Flows for the nine months ended September 30,
                  1999 and 1998                                                5

                  Notes to Condensed Consolidated Financial
                  Statements                                                   7

Item 2.           Management's Discussion and Analysis of
                  Financial Condition and Results of Operations               10


                           PART II - OTHER INFORMATION
                           ---------------------------
Item 1.           Legal Proceedings                                           14

Item 2.           Changes in Securities                                       14

Item 3.           Defaults upon Senior Securities                             14

Item 4.           Submission of Matters to a Vote of Security Holders         14

Item 5.           Other information                                           14

Item 6(a)         Exhibits                                                    14

Item 6(b)         Reports on Form 8-K                                         14

<PAGE>
                         MAGELLAN TECHNOLOGY, INC.
                              AND SUBSIDIARIES

                   Condensed Consolidated Balance Sheets

<TABLE>
<CAPTION>


                                                                               Sep 30, 1999        Dec 31, 1998
            ASSETS                                                              (Unaudited)          (Audited)
                                                                               ------------        ------------
<S>                                                                            <C>                 <C>

Current Assets:
 Cash                                                                          $    184,134        $    217,428
 Accounts Receivable                                                              1,132,217             474,875
 Inventories                                                                        910,737           1,100,313
 Prepaid Expenses                                                                     5,785             133,489
 Other Current Assets                                                                69,012              38,896
                                                                               ------------        ------------
   Current Assets                                                                 2,301,885           1,965,001
                                                                               ------------        ------------

 Property and Equipment, net                                                        857,184             973,550
 Goodwill, net                                                                      975,058           1,204,214
 Licenses & Technology, net                                                       1,188,672           1,283,594
                                                                               ------------        ------------
   Total Assets                                                                $  5,322,799        $  5,426,358
                                                                               ============        ============

            LIABILITIES

Current Liabilities:
 Accounts Payable                                                              $  1,211,049        $  1,320,328
 Accrued Personnel Costs                                                            169,664             143,706
 Accrued Liabilities                                                                399,919             186,718
 Accrued Interest Payable                                                           272,157             135,332
 Line of Credit                                                                   2,996,158           3,032,315
 Related Party Notes Payable                                                        835,000           1,840,000
 Notes Payable                                                                      725,694             355,212
 Current Portion of long-term debt                                                  744,707             647,939
                                                                               ------------        ------------
   Current Liabilities                                                            7,354,347           7,661,549

 Long-Term Debt                                                                     370,048           1,075,748
                                                                               ------------        ------------
   Total Liabilities                                                              7,724,394           8,737,297
                                                                               ------------        ------------


            STOCKHOLDERS' EQUITY

 Common Stock, par value $.0002 per share;
 50,000,000 shares authorized, 27,531,291 shares
 issued and outstanding as of September 30, 1999.                                     5,506               4,150

 Additional Paid-in Capital                                                      13,883,646          11,461,507
 Unearned Compensation                                                              (85,506)           (130,868)
 Accumulated Deficit                                                            (14,645,728)         (9,306,760)
 Current Earnings/(Loss)                                                         (1,559,514)         (5,338,968)
                                                                               ------------        ------------
   Total Stockholders' equity                                                    (2,401,595)         (3,310,939)
                                                                               ------------        ------------
     Total Liabilities and Stockholders' Equity                                $  5,322,799        $  5,426,358
                                                                               ============        ============

</TABLE>

                                       3

<PAGE>

                            MAGELLAN TECHNOLOGY, INC.
                                AND SUBSIDIARIES

                 Condensed Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>


                                                                          Three Months                      Nine Months
                                                                       Ended September 30               Ended September 30
                                                                      1999            1998             1999            1998
                                                                 -------------    ------------    -------------  --------------

<S>                                                              <C>              <C>             <C>            <C>
 Net Sales                                                       $  2,042,817     $  1,270,277    $  5,871,283   $   3,026,881
 Cost of Sales                                                        220,850          213,722         930,409         630,993
                                                                 -------------    ------------    -------------  --------------
   Gross Margin                                                     1,821,967        1,056,555       4,940,874       2,395,888

 Variable Selling Costs                                               319,733          168,395       1,098,647         330,981
                                                                 -------------    ------------    -------------  --------------
   Contribution Margin                                              1,502,234          888,160       3,842,227       2,064,908

Operating Expenses:
 Administration & Finance                                             443,867         464,657        1,178,838       1,267,754
 Customer Support                                                      34,377                          138,996
 Logistics Support Facility                                            76,854                           76,854
 Operations & Engineering                                             174,692          447,741         574,590       1,089,461
 Sales - Domestic                                                     581,369          999,182       1,990,872       2,318,738
 Sales - International                                                109,340                          217,441
 Training & Education                                                 178,985                          539,687
                                                                 -------------    ------------    -------------  --------------
    Total Operating Expenses                                        1,599,484        1,911,580       4,717,278       4,675,953
                                                                 -------------    ------------    -------------  --------------
 Income/(Loss) from Operations:                                       (97,249)      (1,023,420)       (875,051)     (2,611,045)

Other (Income)/Expense:
 Other (Income)/Expense                                                28,428                           27,915
 Equity in Loss of Joint Venture                                                                                         5,050
 (Gain)/Loss on Sale of Assets                                          1,165                              151        (180,023)
                                                                 -------------    ------------    -------------  --------------
 EBITDA                                                              (126,842)      (1,023,420)       (903,117)     (2,436,072)

 Depreciation Expense                                                  52,389           39,415         155,836          86,915
 Amortization of Licenses & Goodwill                                  156,073          113,202         464,703         279,242
 Interest Expense                                                     156,158          112,803         494,359         345,797
                                                                 -------------    ------------    -------------  --------------
    Net Income/(Loss) before Taxes                                   (491,462)      (1,288,839)     (2,018,014)     (3,148,026)
 Provision for Income Taxes                                                -                                -
                                                                 -------------    ------------    -------------  --------------
    Net Income/(Loss) before Extraordinary Item                      (491,462)      (1,288,839)     (2,018,014)     (3,148,026)
 Extraordinary (Income)/Expense                                      (451,111)                        (458,500)
                                                                 -------------    ------------    -------------  --------------
    Net Income/(Loss)                                            $    (40,351)    $ (1,288,839)   $ (1,559,514)  $  (3,148,026)
                                                                 =============    ============    =============  ==============

    Net Income/(Loss) per share                                         (0.00)           (0.07)          (0.06)          (0.16)
                                                                 =============    ============    =============  ==============

 Weighted average shares outstanding                               24,021,013       19,164,059      24,021,013      19,164,059
                                                                 =============    ============    =============  ==============

</TABLE>
                                       4

<PAGE>

                    MAGELLAN TECHNOLOGY, INC.
                        AND SUBSIDIARIES

               Condensed Consolidated Statements of Cash Flows
                           (Unaudited)
<TABLE>
<CAPTION>

                                                                             Nine Months
                                                                          Ended September 30,
                                                                         1999            1998
                                                                     -------------    -------------

<S>                                                                  <C>              <C>
Cash Flows from Operating Activities:
 Net Income/(Loss)                                                   $ (1,559,514)    $ (3,148,026)
 Adjustments to Reconcile Net Income/(Loss)
   to Net Cash used in Operating Activities:
     Provision for Bad Debt                                                18,400
     Stock Compensation                                                    45,362          180,099
     Issusance of common stock for services                                35,000
     Forgiveness of Debt                                                 (458,500)
     Depreciation Expense                                                 155,836           86,915
     Amortization of Licenses & Goodwill                                  464,703          279,242
     Loss from Discontinued Operations                                          -
     Loss on Joint Venture                                                                   5,050
     (Gain) on Sale of Assets                                                 151         (180,023)
 (Increase)/Decrease in:
   Accounts Receivable                                                   (723,342)        (406,032)
   Inventory                                                              189,576       (1,506,135)
   Prepaid Expenses                                                       127,704           15,273
   Other Current Assets                                                   (30,116)               -
 Increase/(Decrease) in:
   Accounts Payable                                                       (19,197)         558,908
   Accrued Personnel Costs                                                 25,958          272,130
   Accrued Liabilities                                                    213,201
   Accrued Interest Payable                                               147,858
                                                                     -------------    -------------
 Net Cash Used in Operating Activities                                 (1,366,920)      (3,842,599)
                                                                     -------------    -------------
Cash Flows from Investing Activities:
 Purchase of Property & Equipment                                         (45,426)        (733,867)
 Sale of Property & Equipment                                               3,804
 Acquisition of Greenberg Asset Management Corp                                           (500,000)
 Sale of Investment in Joint Venture                                            -        1,500,000
                                                                     -------------    -------------
 Net Cash Provided by/(Used in) Investing Activities                      (41,622)         266,133
                                                                     -------------    -------------
Cash Flows from Financing Activities:
 Issuance of Common Stock                                                 311,838          580,000
 Proceeds from Related Party Notes                                      1,240,000        1,940,000
 Principal Payments on Related Party Notes                               (345,000)         (20,141)
 Proceeds from Notes Payable                                              400,000
 Principal Payments on Notes Payable                                      (45,000)
 Proceeds from Line of Credit                                              13,843          849,374
 Principal Payments on Line of Credit                                     (50,000)            (356)
 Proceeds from Long-term Debt                                              18,798          346,560
 Principal Payments on Long-term Debt                                    (169,231)        (209,385)
                                                                     -------------    -------------
 Net Cash Provided by/(Used in) Financing Activities:                   1,375,248        3,486,052
                                                                     -------------    -------------
 Net Decrease in cash                                                     (33,293)         (90,413)

 Cash, Beginning of Period                                                217,428          233,506
                                                                     -------------    -------------
 Cash, End of Period                                                 $    184,134     $    143,093
                                                                     =============    =============

</TABLE>
                                       5

<PAGE>


                            MAGELLAN TECHNOLOGY, INC.
                                AND SUBSIDIARIES

                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                             Nine Months
                                                                          Ended September 30,
                                                                         1999            1998
                                                                     -------------    -------------

<S>                                                                  <C>              <C>

Cash paid during the period for:

 Interest                                                            $    345,610          249,039
                                                                     =============    =============

 Income Taxes                                                        $          -     $          -
                                                                     =============    =============


</TABLE>

Noncash Financing and Investing Activities:

Nine Months Ended September 30, 1998:

     During May 1998, the Company  acquired the net assets of Digital Health for
$1,453,125 with the issuance of common stock and additional debt.

     During the nine months ended September 1998, $1,650,000 of notes payable to
related parties and $46,551 of accrued interest payable were converted to common
stock of the Company.

     During January 1998,  the Company  acquired the net assets of the Greenberg
Asset  Management  Corp for $750,000  cash and the issuance of a note payable in
the amount of $750,000 payable to an individual.  This transaction was accounted
for as a "purchase".

Nine Months Ended September 30, 1999:

     During the nine months  ended  September  30, 1999,  the Company  converted
$1,900,000 of notes payable and $11,033 of accrued  interest payable into common
stock.

     During the nine months ended September 30, 1999, the Company issued 250,000
shares of common  stock in exchange for the rights to certain  technology  known
known as the P.I.C.E. Technology. The value of stock issued was $140,625.

     During the nine months  ended  September  30, 1999,  the Company  converted
accounts  payable  balances  to a  certain  vendors  to  common  stock and notes
payable. The amounts converted were $25,000 and $62,192.81 respectively.

     During the nine months ended  September  30, 1999,  the Company  applied an
accounts  receivable  balance  from a  customer  in the amount of $47,600 to the
outstanding balance of a note payable to this same individual.

     During the nine months ended September 30, 1999, the Company issued 100,000
shares of common stock in exchange for services performed by an individual.  The
share were issued at $.35 per share for a total amount of $35,000.

     During the nine months ended  September  30, 1999,  the Company  recognized
extraordinary income in the amount of $451,111 as a result of the forgiveness of
debt by a certain creditor.

     During the nine months ended  September 30, 1999, the Company  acquired all
of the issued and outstanding  stock of Biological  Technologies  International,
Inc. in exchange for 3,024,024 shares of Magellan Technology, Inc. common stock.
This  transaction  was accounted for using the "Pooling of Interests"  method of
accounting.


                                       6

<PAGE>



                            MAGELLAN TECHNOLOGY, INC.
                                AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements

(1)      The unaudited condensed  consolidated  financial statements include the
         accounts of Magellan  Technology,  Inc.  (The  Company)  and its wholly
         owned  subsidiaries,   BioMeridian   Corporation   [formerly  known  as
         ProHealth,  Inc.  and prior to that known as Satellite  Image  Systems,
         Inc.  (SIS,  Inc.)  and  SIS  Jamaica,  LTD  (SIS  Jamaica)],   SkyHook
         Technologies,  Inc.  (SkyHook),  which the Company  acquired  effective
         October  15,  1996,  BioMeridian   International,   Inc.  (BioMeridian)
         (formerly  known  as  BioSource,   Inc.)  which  the  Company  acquired
         effective October 15, 1997, and Biological Technologies  International,
         Inc. (BTI) which the Company acquired effective September 17, 1999. The
         acquisition  of SkyHook  included the  issuance of 4,874,936  shares of
         Magellan  common  stock and cash for all of the  outstanding  shares of
         SkyHook common stock.  The  transaction was accounted for as a purchase
         transaction.  The  acquisition  of  BioSource  included the issuance of
         225,000  shares  of  Magellan  common  stock  and  cash  for all of the
         outstanding  shares of BioSource  common  stock.  The  transaction  was
         accounted  for  as  a  purchase  transaction.  The  Company  recognized
         goodwill of $358,997 in connection with the BioSource transaction.  The
         acquisition  of BTI  included  the  issuance  of  3,024,024  shares  of
         Magellan common stock for all of the  outstanding  shares of BTI common
         stock.  The  transaction  was accounted for as a "pooling of interests"
         transaction.  On August 1, 1996 the Company transferred its interest in
         the assets, liabilities, and operations of SIS, Inc. to Satellite Image
         Systems,  LLC (SIS, LLC), a joint venture.  On May 12, 1998 the Company
         sold its 46.5%  interest in SIS, LLC. In  connection  with the sale the
         company  recognized a gain of $180,023.  On June 15, 1998,  the Company
         completed the acquisition of certain licenses and technology of Digital
         Health,  LLC in  exchange  for  1,375,000  shares of  common  stock and
         $250,000  in cash  payable  in  monthly  installments  of  $15,000.  On
         February 16, 1999,  the Company  acquired  certain  assets known as the
         P.I.C.E.  technology  from an individual in exchange for 250,000 shares
         of common stock.

(2)      The unaudited condensed  consolidated  financial statements include all
         adjustments,  consisting of normal recurring  items,  which are, in the
         opinion  of  management,  necessary  to present  fairly  the  financial
         position  of the  company as of  September  30, 1999 and the results of
         operations  for the three  months and nine months ended  September  30,
         1999 and 1998 and cash flows for the nine months  ended  September  30,
         1999 and 1998.  The results of  operations  for the three  months ended
         September 30, 1999 are not necessarily  indicative of quarterly results
         to be expected for the remainder of the year.

(3)      The  amount  of the loss per  share  is based on the  weighted  average
         number  of  shares   outstanding   at  September  30,  1999  and  1998,
         respectively.

(4)      Effective  May 12, 1998 the Company  entered  into an agreement to sell
         its 46.5%  interest  in SIS,  LLC.  Terms of the  agreement  include an
         initial  payment of $1,500,000  and  additional  payments not to exceed
         $1,000,000  that will be earned over the next 27 months  based upon the
         operating  results of SIS, LLC.  $1,200,000 of the funds  received were
         used to retire a non-revolving  term line of credit. The balance of the

                                       7
<PAGE>

         funds was used for working  capital  purposes.  On August 31, 1999, the
         Company  entered into an agreement  whereby the previous  agreement for
         additional  payments  to be earned  over time  would be  terminated  in
         exchange  for  the  immediate   forgiveness  of  the  remainder  of  an
         outstanding  note  payable  obligation  to SIS,  LLC. As a result,  the
         Company recognized an extraordinary gain of $451,111.

(5)      On May 19, 1998 the company entered into a $3,000,000 revolving line of
         credit agreement.  During the three months ended September 30, 1999 the
         Company made no  additional  borrowings  under this  revolving  line of
         credit.  This revolving line of credit matures on December 19, 1999 and
         is  secured  by the  Company's  inventory  and  receivables  and by the
         personal  guarantees  of  the  Company's  Chief  Executive  Officer,  a
         Director, and a major shareholder. As of September 30, 1999 the Company
         had an outstanding  balance of $2,996,158  under this revolving line of
         credit.

(6)      During the nine months ended September 30, 1999 the Company  borrowed a
         net amount of $295,000 from the Company's Chief Executive  Officer,  or
         from  entities  controlled  by  this  individual,  under  two  separate
         $100,000 unsecured note payable agreements,  one $50,000 unsecured note
         payable agreement,  one $30,000 unsecured note payable  agreement,  and
         one $15,000 unsecured note payable  agreement.  Each note payable bears
         interest at 12% and is payable  upon demand.  In addition,  the Company
         borrowed  $20,000,  $30,000 and $25,000 under  separate  unsecured note
         payable agreements from stockholders.  Each note payable bears interest
         at 12% and is payable upon demand.  The Company also  borrowed  $50,000
         from an entity under an unsecured  note  payable  agreement  that bears
         interest at 10%. The Company has since acquired this entity.


                                       8

<PAGE>

(7)      During the nine months  ended  September  30,  1999,  the Company  also
         borrowed  $350,000 and $250,000 from  unrelated  parties under separate
         convertible  note payable  agreements.  Each  convertible  note payable
         bears  interest at 12% and contains a provision  for the  conversion of
         the principal amount to common stock at a specified price. On March 31,
         1999, both convertible note payable agreements were converted to common
         stock at $.35 per common  share.  In  addition,  the  Company  borrowed
         $200,000,  $100,000 and $25,000 from  unrelated  parties under separate
         convertible  note payable  agreements.  Each bears  interest at 12% and
         contains a provision  for the  conversion  of the  principal  amount to
         common stock at a specified  price.  The funds from these  transactions
         were used to finance  operations.  In addition,  the Company  converted
         certain  accounts payable to a vendor into a note payable in the amount
         of $39,313.  This note payable  bears  interest at 9% and is payable at
         the end of six months from the date of issuance.

(8)      Effective  March 31, 1999,  $1,300,000  of related  party notes payable
         were  converted to common stock of the  Company.  In addition,  accrued
         interest payable on the related party notes payable of $11,033 was used
         by the related parties to exercise warrants to purchase common stock.

(9)      Magellan has signed an agreement to merge SkyHook  Technologies,  Inc.,
         its wholly owned  subsidiary,  into  EnviroFoam  Technologies,  Inc., a
         Department of Defense ("DoD") contractor  located in Phoenix,  AZ. With
         this action, Magellan has exited the Aviation and Department of Defense
         marketplace to position itself to be a leader in the Alternative Health
         Care Marketplace through the operations of its wholly owned subsidiary:
         BioMeridian International, Inc. Terms of the merger are to be finalized
         in the near future


                                       9

<PAGE>


                         PART I - FINANCIAL INFORMATION


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

Nine-month  period ended  September 30, 1999 compared to the  nine-month  period
ended September 30, 1998.

Results of BioMeridian

BioMeridian International,  Inc. (BioMeridian) manufactures and sells the MSA-21
system to healthcare practitioners.  This equipment is used to assess stress and
assist  healthcare  practitioners  in the  analysis  and  treatment  of  certain
conditions.  If stress or imbalance is  detected,  the MSA-21  system is used to
recommend a course of treatment or therapy to alleviate the stress or to restore
balance to the body's  meridian  systems.  BioMeridian  also  provides  training
classes and support services for health care practitioners that utilize the BEST
system.   The  MSA-21  system  is  registered   with  the  U.S.  Food  and  Drug
Administration.

For the nine months ended September 30, 1999 BioMeridian achieved sales revenues
of $4,712,042 that resulted in an operating loss of $342,820 compared with sales
revenues of $1,855,079  that  resulted in an operating  loss of $387,675 for the
nine months ended September 30, 1998. The  significant  increase in sales is the
result of the synergies of the acquired  assets and  technology of BioSource and
Digital Health and the expanded user base along with improved  sales  techniques
and performance of independent and in-house sales representatives. The continued
operating loss is primarily due to unusually high selling expenses and operating
overhead  costs.  The  increased  overhead  costs  are the  result  of  improved
marketing strategies and improved customer training and support personnel.

Although  BioMeridian  has  experienced  operating  losses during the nine-month
period ended September 30, 1999, the Company  believes that  BioMeridian has now
reached a  sustainable  revenue  level in excess  of  $500,000  per month and is
poised to  achieve  profitable  operations  again in the  fourth  quarter as was
achieved in the third quarter of 1999.

Results of BTI

BTI (Biological Technologies International,  Inc.) is the leader in the field of
biological  terrain  assessment,  and the only company in the United States that
produces a biological terrain assessment device. The principal product of BTI is
the BTA S-2000.  This product tests blood,  saliva, and urine for the factors of
pH  (acid-alkaline  balance),  rH2  (oxidative  stress),  and r  (gross  mineral
concentration)  and  provides  the  practitioner  with an  immediate,  objective
assessment of a patient's individual biochemistry.

For the nine months  ended  September  30, 1999 BTI achieved  sales  revenues of
$904,383  that  resulted in an operating  loss of $136,598  compared  with sales
revenues of $1,171,802  that  resulted in an operating  loss of $347,910 for the
nine months ended September 30, 1998. The decrease in sales and the reduction in
the operating  loss are  primarily the result of closing the eastern U.S.  sales
office  located in  Manchester,  MA. In addition,  non-recurring  legal costs of
approximately  $50,000 were  incurred by BTI in the third  quarter in connection
with the  acquisition  of BTI.  Although BTI has  experienced  operating  losses

                                       10

<PAGE>

during the nine-month period ended September 30, 1999, the Company believes that
BTI can  increase  its  revenue  level  using  the  existing  sales  network  of
BioMeridian  and can,  thereby,  achieve  profitable  operations  in the  fourth
quarter of 1999.

Results of SkyHook

Since its formation in February 1995, SkyHook  Technologies,  Inc. (SkyHook) has
been  engaged  in  the  development  of  computer-controlled   multi-hook  cargo
transport  devices that SkyHook  believes will improve the efficiency and safety
of  helicopter  missions by enabling the  selective  delivery  and  retrieval of
multiple external  payloads during a single mission.  SkyHook also believes that
its  devices  will allow an aircrew to more fully  utilize a  helicopter's  load
capacity while minimizing flight time.

SkyHook's patented products include the SkyHook External Cargo Management System
(SkyHook ECMS) and the SkyHook Light Ariel Delivery System  (SkyHook LADS).  The
SkyHook  LADS is a lower cost system  designed  to carry three or four  separate
loads with total  system  load  capacity  of 12,000  pounds.  The  SkyHook  LADS
complements  the SkyHook  ECMS that is  designed to carry three or six  separate
loads with a total system  capacity of 36,000 pounds.  With the  introduction of
the LADS system to complement the ECMS product, the company can effectively meet
the varying  needs of its  potential  customers.  SkyHook has invested over $8.0
million in the development,  testing and marketing of its unique  products.  The
Company continues an aggressive marketing campaign with the U.S. Military as its
primary potential customer.

During the nine months ended  September  30,  1999,  the Kansas  National  Guard
issued a purchase order for one Light Aerial  Delivery  System (LADS).  The LADS
system was delivered to the Kansas  National  Guard in late April 1999.  SkyHook
anticipates  additional  revenues from the sale of SkyHook products near the end
of 1999. However, currently the Company must rely on its lines of credit and its
ability  to raise  additional  debt and  equity  financing  in order to  finance
continued product development, sales and marketing, and all operating activities
related to SkyHook and its products.

SkyHook was  recently  awarded a contract  with  Envirofoam  Technologies,  Inc.
(Envirofoam)  that  provides  for the  marketing  and contract  management  of a
patented fire suppression device that is targeted for sale to the U.S. Military.
During the nine months ended September 30, 1999 SkyHook  recognized  revenues of
$214,500 under this contract with  Envirofoam.  Magellan has signed an agreement
to  merge  SkyHook  Technologies,   Inc.,  its  wholly  owned  subsidiary,  into
EnviroFoam  Technologies,  Inc.,  a  Department  of Defense  ("DoD")  contractor
located in Phoenix,  AZ. With this action,  Magellan has exited the Aviation and
Department  of  Defense  marketplace  to  position  itself to be a leader in the
Alternative  Health Care Marketplace  through the operations of its wholly owned
subsidiary:  BioMeridian  International,  Inc.  Terms  of the  merger  are to be
finalized in the near future.

SkyHook  was  recently  awarded  a sole  source  Indefinite  Delivery/Indefinite
Quantity  Logistics  Support  Facility  (LSF)  contract  plus a  Facilities  Use
contract,  with  a  contract  ceiling  value  of  $48  million.  The  period  of
performance is for 6 years, which includes three option years. The scope of work
provides  a broad  spectrum  of  opportunities  ranging  from  general  aviation
modification  and  repair,  vehicle  and  watercraft  maintenance,   engineering
services, manufacturing and production, etc.

                                       11

<PAGE>


Three-month  period ended September 30, 1999 compared to the three-month  period
ended September 30, 1998.

Results of BioMeridian

For the three  months  ended  September  30,  1999  BioMeridian  achieved  sales
revenues of $1,651,633 which resulted in operating  income of $210,710  compared
with sales  revenues of $876,493 which resulted in an operating loss of $205,056
for the three months ended September 30, 1998. The significant increase in sales
is the  result  of the  synergies  of the  acquired  assets  and  technology  of
BioSource  and Digital  Health and the  expanded  user base along with  improved
sales   techniques   and   performance   of   independent   and  in-house  sales
representatives.  The  increase in operating  income is due to  increased  sales
accompanied by  management's  changes in and drive for more efficient  operating
overhead levels.

Results of BTI

For the three months ended  September  30, 1999 BTI achieved  sales  revenues of
$291,870  that  resulted in an  operating  loss of $66,374  compared  with sales
revenues of $393,784  that  resulted in an  operating  loss of $118,553  for the
three months ended  September 30, 1998.  The decrease in sales and the reduction
in the operating loss are primarily the result of closing the eastern U.S. sales
office  located in  Manchester,  MA. In addition,  non-recurring  legal costs of
approximately  $50,000 were  incurred by BTI in the third  quarter in connection
with the acquisition of BTI.

Although BTI has  experienced  operating  losses during the  three-month  period
ended September 30, 1999, the Company believes that BTI can increase its revenue
level using the existing sales network of BioMeridian and can, thereby,  achieve
profitable operations in the fourth quarter of 1999.

Results of SkyHook

SkyHook  anticipates  additional revenues from the sale of SkyHook products near
the end of 1999. However, currently the Company must rely on its lines of credit
and its  ability  to raise  additional  debt and  equity  financing  in order to
finance continued product  development,  sales and marketing,  and all operating
activities related to SkyHook and its products.

SkyHook was  recently  awarded a contract  with  Envirofoam  Technologies,  Inc.
(Envirofoam)  that  provides  for the  marketing  and contract  management  of a
patented fire suppression device that is targeted for sale to the U.S. Military.
During the three months ended September 30, 1999 SkyHook recognized  revenues of
$99,000 under this contract with Envirofoam. Magellan has signed an agreement to
merge SkyHook Technologies,  Inc., its wholly owned subsidiary,  into EnviroFoam
Technologies,  Inc.,  a  Department  of Defense  ("DoD")  contractor  located in
Phoenix,  AZ. With this action,  Magellan has exited the Aviation and Department
of Defense  marketplace  to  position  itself to be a leader in the  Alternative
Health Care Marketplace  through the operations of its wholly owned  subsidiary:
BioMeridian  International,  Inc. Terms of the merger are to be finalized in the
near future.

                                       12

<PAGE>

Liquidity and Capital Resources

On May 19, 1998 the company  entered into a $3,000,000  revolving line of credit
agreement.  During the three months ended September 30, 1999 the Company made no
additional  borrowings under this revolving line of credit.  This revolving line
of credit matures on December 19, 1999 and is secured by the Company's inventory
and receivables and by the personal  guarantees of the Company's Chief Executive
Officer,  a Director,  and a major  shareholder.  As of  September  30, 1999 the
Company had an  outstanding  balance of $2,996,158  under this revolving line of
credit.

During the nine months  ended  September  30,  1999 the  Company  borrowed a net
amount of $295,000 from the Company's Chief Executive Officer,  or from entities
controlled  by this  individual,  under two  separate  $100,000  unsecured  note
payable  agreements,  one $50,000 unsecured note payable agreement,  one $30,000
unsecured  note  payable  agreement,  and one  $15,000  unsecured  note  payable
agreement.  Each note payable bears  interest at 12% and is payable upon demand.
In addition,  the Company borrowed  $20,000,  $30,000 and $25,000 under separate
unsecured note payable  agreements  from  stockholders.  Each note payable bears
interest at 12% and is payable upon demand.  The Company also  borrowed  $50,000
from an entity under an unsecured note payable  agreement that bears interest at
10%. The Company has since acquired this entity.

During the nine months  ended  September  30, 1999,  the Company  also  borrowed
$350,000 and $250,000 from  unrelated  parties under separate  convertible  note
payable  agreements.  Each  convertible  note payable bears  interest at 12% and
contains a provision for the conversion of the principal  amount to common stock
at a  specified  price.  On  March  31,  1999,  both  convertible  note  payable
agreements were converted to common stock at $.35 per common share. In addition,
the Company borrowed $200,000, $100,000 and $25,000 from unrelated parties under
separate  convertible  note payable  agreements.  Each bears interest at 12% and
contains a provision for the conversion of the principal  amount to common stock
at a specified  price.  The funds from these  transactions  were used to finance
operations.  In addition,  the Company  converted  certain accounts payable to a
vendor into a note  payable in the amount of $39,313.  This note  payable  bears
interest  at 9% and is  payable  at the  end of six  months  from  the  date  of
issuance.

Effective  March 31,  1999,  $1,300,000  of related  party  notes  payable  were
converted to common stock of the Company. In addition,  accrued interest payable
on the related party notes payable of $11,033 was used by the related parties to
exercise warrants to purchase common stock.

The Company has made significant  investment and effort over the last five years
into the establishment of a sound framework for operating entities that are well
positioned in their respective  marketplaces.  With the pending sale of SkyHook,
Magellan  will  now  focus  its  full  management  attention  on its  profitable
Complementary  Health  Care  initiatives.   Management   anticipates   continued
profitable  growth and feels that BioMeridian and BTI are poised for success and
future  profitable  operations.  However,  there  can be no  assurance  that the
Company will be able to achieve profitable  operations or obtain the needed debt
or equity capital required on terms favorable to the Company.  If the Company is
unable to raise additional  capital,  the ability of the Company to successfully
market  and  distribute   its  products  and  services   through  its  operating
subsidiaries and its financial condition would be materially adversely affected.


                                       13

<PAGE>


                           PART II - OTHER INFORMATION

Item 1.           Legal proceedings:  None.

Item 2.           Changes in Securities:    None.

Item 3.           Defaults upon Senior Securities:   None.

Item 4.           Submission of Matters to a Vote of Security Holders: None.

Item 5.           Other information:  None.

Item 6.           Exhibits and Reports on Form 8-K:   None.

<PAGE>


SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


                            MAGELLAN TECHNOLOGY, INC.
                            -------------------------
                                  (Registrant)




\s\Douglas M. Angus                                  November 15, 1998


------------------------                             -----------------
Douglas M. Angus                                           Date
Vice President - Finance

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