SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20001
                                    FORM 10-K

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

For the fiscal year ended                            Commission File No. 0-11-50
      August 31, 2001

                              MAMMATECH CORPORATION
              ----------------------------------------------------
             (exact name of registrant as specified in its charter)

            FLORIDA                                            59-2181303
 ------------------------------                            -------------------
(State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                           Identification Number)


         930 N.W. 8th Avenue, Gainesville, Florida 32601 (352) 375-0607
      ----------------------------------------------------------------------
     (Address including zip code, and telephone number, including area code,
                  of registrant's principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class              Exchange on Which Registered

      None                                   None

Securities registered pursuant to Section 12(g) of the Act:

                                  Common Stock
                               ------------------
                                (Title of Class)

Indicate by check mark whether the Company (1) has filed all reports required to
be filed by Section 13 of 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days. Yes  X  No
                         -----  -----

The aggregate market value of the Company's common stock held by non-affiliates
as of November 29 was $357,274 based on the average bid and asked price. As of
November 29, there were 100,452,500 shares of the Company's common stock
outstanding. Of this sum, 6,208,500 shares are treasury shares.


Total Number of Pages: 38                           Exhibit Index is on Page: 37




<PAGE>


                                     PART I
                                     ------

ITEM 1.  DESCRIPTION OF BUSINESS
--------------------------------
INTRODUCTION
------------

     The Company owns all rights to, subject to certain minor royalties, and is
engaged in the sale of a patented breast tumor detection training system (the
"MammaCare System"). Using life- like models of a human female breast, the
MammaCare System is designed to train individuals to perform effective manual
breast examination. The breast models contain simulated tumors of varying sizes,
ranging from under 5mm. to over 10mm. They also contain material which simulates
the normal nodularity, or "lumpiness", that characterizes most breast tissue.

     Although the examiner can never determine by feel alone whether a lump is
benign or malignant, detection of tumors in the size range simulated by the
models is important to early diagnosis of malignancies. Thus, the Company
believes that by training women to palpate the breast model (and their own
breasts) properly, the MammaCare System will lead to early detection of breast
cancer and thus reduce morbidity and mortality due to this disease.

     The MammaCare System is sold in several forms, all of which contain at
least one of the Company's patented breast models. Originally, a client was
given private training after which she was provided with a take-home breast
model and other materials. Now, the customer may view a video tape developed by
the Company which teaches her the proper use of the model(s) and an extremely
thorough examination technique. The practice model is designed to permit a woman
to reinforce her lump detection skills periodically and serves as a comparative
standard as she palpates her own breast.

     The sale of take-home models, together with training in the Company's
method of B.S.E., was originally accomplished primarily through franchise and
license arrangements (collectively referred to as "Franchises") with healthcare
providers. In addition, the Company owns and operates one MammaCare Center in
Gainesville, Florida. Franchisees sell materials and provide training directly
to women, as does the Company at its own Center. To date, these franchisees have
been medical schools, hospitals, breast centers, and radiology clinics.

                                                                               2

<PAGE>


     In recent years, development and marketing through new Franchises has been
de-emphasized because this marketing approach proved overly costly and
cumbersome for the returns it generated. The Company has therefore developed a
different marketing strategy which involves the sale of an integrated training
system known as the MammaCare Learning System (the "Learning System"). The
Learning System is available in two versions, the Professional and the Personal,
and is comprised of one (Personal) or two (Professional) breast models and a
videotaped B.S.E. training program designed to be viewed by women in either
their homes Personal) or in a clinical setting (Professional). In both cases,
the skill learned is subject to ultimate evaluation by a physician. See Item 1,
"New Marketing Approach".

THE PURPOSE OF MANUAL BREAST EXAMINATION
----------------------------------------

     Manual palpation has been and remains the most widely used method for
detection of breast cancer in all stages of development. The breast is an ideal
organ for physical examination because of the external location, coupled with
the softness of the tissue and its hard backing. The earlier breast cancer is
detected, diagnosed and treated, the greater the chances are for arrest of the
condition. Published studies of breast pathology have shown that 94% of all
cancerous tumors of the breast are potentially discoverable by manual
examination conducted by a properly trained person. Even though women themselves
remain the primary discoverers of breast cancer, several reports show that
B.S.E. is not widely practiced. Consequently, most breast cancers are initially
detected at a relatively advanced stage with metastasis having already occurred.
The average size tumor that women present to their physicians is about 3.5 cm.
(over one inch) in diameter. Treatment often requires a radical mastectomy (an
extensive surgical procedure which includes removal of the breast, underlying
muscle and axillary lymph nodes) followed by a course of radiation treatment
and/or chemotherapy. On the other hand, if the disease is initially detected
while the primary tumor is small (<1.0 cm) and no lymph nodes are involved,
treatment often involves only removal of the tumor and a margin of surrounding
healthy tissue. Thereafter, a course of radiation treatment is often prescribed
as a precautionary measure.


     In research conducted at the University of Florida under the direction of
the two principle shareholders of the Company, together with a third individual,
more than 445 women were taught to detect tumors in the model ranging from 2 to

                                                                               3

<PAGE>


10 mm. As a result of this training, 33 of these women (7.4%) discovered
suspicious masses and were referred to physicians. This percentage is comparable
to that expected from screening procedures involving mammography and clinical
examination.

     The research was conducted at the University's Center for Ambulatory
Studies. Except for a National Cancer Institute grant made directly to the
University in 1977 and one small direct University grant, the research was not
directly sponsored by the University; instead, it was concluded at the
University's facilities under the supervision of the Company's two principle
shareholders (and a third person) as part of their normal faculty research
duties. The University released its rights to this research.

     Based upon its commercial experience with approximately 10,000 women who
have had the benefit of MammaCare training, the Company has demonstrated that
the MammaCare System can train women to detect masses as small as 0.3 cm. It has
been well documented that detection of such small masses often enables the
surgeon to provide treatment in the form of lumpectomy (see above) or some other
less extensive procedure not requiring total removal of the affected breast and
surrounding tissue.

BASIC TRAINING MODEL AND TRAINING
---------------------------------

     The Company's basic training model is a life-like model of a human female
breast. Its covering is a thin silicone membrane which simulates human skin. The
interior of the model, also made of silicone, closely simulates that of a mature
female breast with respect to granular, glandular, adipose and connective
tissue. Implanted within the model are simulated tumors consisting of extruded
polymers whose firmness matches that of excised tumors. The model is
manufactured in different degrees of firmness and nodularity in order to offer
the trainee a model which closely resembles her own breast.

     A special series of training exercises is used to instruct women in basic
palpation techniques required for manual self- examination for breast anomalies.
The basic approach is to: (1) teach the distinction between the feel of all
varieties of normal breast tissue and that of typical breast tumors, (2) teach a
method of palpation that insures contact with all depths of the trainee's own
breast tissue, and (3) teach a pattern of examination that insures palpation of
all breast tissue.

                                                                               4

<PAGE>


COMPANY CENTER
--------------

     The Company's Center is located in Gainesville, Florida. This Center serves
three important functions. It is the national training center established to
provide training for all licensees, physicians, nurses, and Company personnel
who are engaged in offering MammaCare to the public. Another function of this
Center is to package and ship MammaCare Products. Finally, this facility serves
as a research center permitting the Company to undertake marketing and product
development research.

     As part of the Company's commitment to maintain the quality of its service
to both the medical profession and women who need B.S.E., the Company has
developed two training programs at the Gainesville Center. The first is a
comprehensive, four-day training program leading to certification as a MammaCare
Specialist. Specialist certification is dependent upon a demonstrated mastery of
pertinent selected biological and medical literature as well as the MammaCare
Method of performing and teaching manual breast examination.

     The second training program leads to an Associate certificate. It is a
three-day training session for health care professionals which enables them to
instruct women in the use of the MammaCare technique. These certification
procedures are used by the Company to control the quality of its training. It is
a matter of resolute Company policy that a woman's mastery of the MammaCare
System will only be evaluated by a trained MammaCare Specialist. MammaCare
Specialists are empowered to train and certify MammaCare Associates at their own
sites.


MARKETING OF THE COMPANY'S SYSTEM AND MODELS
--------------------------------------------

     MammaCare Systems are each sold as a complete learning program. The Company
permits models to be sold separately to customers who have appropriate training,
either through the actual training sessions required in connection with the
MammaCare System, through the video training contained in either of the Learning
Systems, or through training provided by various individuals in accordance with
the Company's standards.

     During the last several fiscal years, the Company has intensified its
efforts to offer MammaCare overseas.(See Management Discussion below). The
Company has developed an extensive customer base in Canada and anticipates
increased activity in that country as the trade barriers continue to be
dismantled as a result of NAFTA. The Company has trained a number of MammaCare

                                                                               5

<PAGE>


Specialists who live and work in Canada and maintains close professional ties to
these individuals. The Company has also an established relationship with a
distributor in Germany who has translated the materials into German and is
slowly establishing a substantial presence throughout Europe.



MARKETING HISTORY
-----------------

     During the Spring of 1986, the Company concluded that Centers were not
providing enough sales volume and not recruiting enough new users of the System.
After the end of 1986 fiscal year, the Company implemented a new marketing
strategy designed to encourage sales through physicians. Shortcomings with the
prior marketing approach included the price of MammaCare (up to $125), which
generally was not covered by most health insurance carriers and the
inconvenience women found with the training at the Centers.

     Under this new marketing approach, health care providers purchase the
MammaCare Professional Learning System directly from the Company for $225 each.
The Company does not generate any revenues from the use of the Learning System
by women; its sole revenues under the new marketing approach come from sales of
System and any accompanying training.

     The MammaCare Professional Learning System consists of a teaching model, a
24-minute video cassette, and practice kit. The teaching model is a patented
breast model, designed to teach the difference between the feel of normal,
nodular breast tissue and the feel of small lesions. The video cassette guides
the learner through a series step-by-step exercises, first on the models, then
on her own breast tissue. This is intended to lead to mastery level proficiency
in palpation, search technique and lump detection. The practice kit contains a
"take-home" breast model, a written review manual, a reminder calendar and a
record booklet.

     It is suggested that providers make the System available to their patients
to use at a set fee. A patient may purchase the practice kit portion of the
System for continued monthly reinforcement of her skills. Patients may view the
videotape either in their homes or in the provider's facility. In either case, a
patient should have her proficiency reviewed by a physician or certified
MammaCare Specialist.

                                                                               6

<PAGE>


     By obtaining the MammaCare Learning System from their own providers,
patients are assured of receiving the full quality of MammaCare without the
inconvenience and expense of a lengthy clinic visit. Further, it is anticipated
that the cost of MammaCare to the public will be lower than historical prices
charged for this service. However, while the Company has made providers aware of
the need to keep the price of MammaCare reasonable, the providers are free to
charge whatever fee they deem appropriate for the use of the System. In light of
the fact that most health insurance policies do not reimburse patients for any
portion of their MammaCare expenses, no assurance can be given that the
physicians will set prices low enough to attract patients.

     Providers who are Franchisees or licensees are permitted to purchase Kits
at a substantial discount. The Company's intent is for these providers to act as
distributors to other physicians and health care providers in their respective
geographic regions. Patients ultimately purchasing these systems would then seek
a proficiency evaluation from either their physician or the Franchisee/provider.
Conceivably, if additional treatment were needed, the patient would choose the
physician or health care provider to furnish such treatment since a health care
relationship had already been established.

     A direct-to-physicians marketing approach was also developed during the
Summer of 1986 and implemented in late September of the same year. To date,
there are over 1000 physicians, hospitals and diagnostic centers throughout the
United States providing the Learning System to women. Although it is too early
to judge whether it will be more successful than the Company's earlier marketing
strategies, the Company believes that this marketing approach is superior
insofar as it eliminates certain prior deficiencies. No assurances can be given
that this new marketing approach will be successful. In any event, for the
Company to maintain profitability, MammaCare must be provided to an ever
increasing number of women.

     Early in 1989, the Company introduced a companion product called the
MammaCare Personal Learning System. It contains a single breast model, a 45-min.
video tape which teaches the same skills as the videotape in the Professional
System but with reference to the single model, and assorted printed matter. This
System is being marketed directly to women and was described in the August 1989
issue of Redbook and the July-August 1991 issue of the East West Journal. The
Company is presently evaluating consumer response to this product and expects to
develop additional marketing strategies for it in the coming year. The MammaCare

                                                                               7

<PAGE>


Personal Learning System is sold for $69.50, making it affordable and convenient
for working women and others who are unable to schedule and keep appointments
with health care providers. It is also discounted to readers of Family Circle
and other publications in the lay press that feature MammaCare periodically in
the editorial content of their health sections.

     In 1993, the Company introduced a third version of MammaCare known as the
MammaCare Clinical Learning System. This system is used to train physicians and
other health care providers to conduct clinical breast examinations using the
MammaCare Method. It is being adopted by medical schools, teaching hospitals,
and a small number of HMO's who are attempting to control costs by taking
advantage of the benefits of competent manual examination of the breast as a
means of early cancer detection. It is being used extensively by the Breast and
Cervical Cancer Screening Programs in the various states and will be the focus
of an expanded training effort by the Company in the near future.


OTHER MARKETING APPROACHES
--------------------------

     It is part of the Company's overall marketing strategy to arrange for the
availability of MammaCare wherever women routinely seek health service. To this
end, the Company has sought to penetrate the institutional market and medical
departments of large corporations. Limited resources have prevented the Company
from pursuing this strategy vigorously; however, the General Electric
Corporation ("GE") has introduced the Professional Learning System into its
Fairfield, Connecticut headquarters facility where it was reportedly well
received. GE has purchased three Learning Systems for use in other facilities.
Additionally, Pacific Bell has purchased a small number of MammaCare Personal
Learning Systems for a trial program aimed at their female employees. Results of
that trial were reported in 1991 and were judged favorable by Pacific Bell
representatives.

     The Company has intermittent negotiations ongoing with several other large
corporations to make MammaCare available in their health care facilities. The
Company believes that the addition of the MammaCare Personal Learning System may
offer a more attractive mechanism for providing MammaCare in the workplace.
There can be no assurance, however, that either these negotiations, trial
programs, or related marketing efforts will result in significant revenue for
the Company.

     Prior to 1988,the Company retained a Southern California nurse practitioner
as a marketing consultant for MammaCare. She appeared on the first ABC-TV "Home
Show" in February, 1988 where she described the MammaCare Learning System to a

                                                                               8

<PAGE>


nationwide audience. This individual was employed by a large health care concern
in Beverly Hills, California until 1996 and is a nationally recognized expert on
BSE. That organization now uses MammaCare in all of its breast centers under a
special agreement negotiated during 1992.

     Largely as a result of the efforts of this individual, the California
Division of the American Cancer Society adopted several features of MammaCare
for enhancement of their national Special Touch program. Specifically, the
Company provides its patented training models to Special Touch Facilitators who
have undergone training approved by the Company. These individuals may also
purchase the Company's Home Practice Model for use by participants in California
ACS BSE training programs. In November of 1989, the California Division received
an Honors Citation for its Special Touch Program from the National Office of the
American Cancer Society. To date, the Company has shipped over $100,000 worth of
products to California ACS chapters or affiliated individuals under this
arrangement.

     Similar arrangements have been concluded with the Alaska, Alabama, Alaska,
Arkansas, Connecticut, Delaware, Florida, Georgia, Indiana, Kansas, Kentucky,
Maine, Minnesota, New York, Pennsylvania, South Carolina, South Dakota and
Wisconsin Divisions of the American Cancer Society. These organizations are a
major component of the Company's customer base and are a stable source of
revenue. More recently, the Company has developed a web site (www.mammacare.com)
and markets its products and services through that medium.

RESEARCH
--------

     The University of North Carolina at Chapel Hill was the first major medical
institution to conduct research using MammaCare. The results of that research
have been widely disseminated and are available from the Company by request.

     Other institutions and organizations who have conducted or are conducting
research involving MammaCare include Johns Hopkins University, the Fred
Hutchinson Cancer Center, the University of California at San Diego, the
University of Oregon, the University of Arkansas, the University of Vermont, the
State University of New York at Stony Brook, the Harvard Community Health Plan,
the University of Cincinnati, the University of Indiana, the Fox Chase Cancer
Center, Northwestern University, the University of West Virginia, U.S.
Healthcare, and the Mayo Clinic.

                                                                               9

<PAGE>


     Presently, the Company is conducting research under the auspices of the
National Cancer Institute. The object is to develop and validate versions of
MammaCare that will meet the needs of the blind and visually impaired and the
deaf and hard of hearing. This research is progressing on schedule and is
expected to result in effective products.

PATENTS, TRADEMARKS AND COPYRIGHTS
----------------------------------

     The MammaCare System was invented by seven people, including the Company's
two principle shareholders, as part of research activities conducted at the
University of Florida. Subject to royalties payable to four of the co-inventors,
the Company owns all rights to and is entitled to receive all revenues from the
System. The Company's ownership interest in the patents and foreign patent
applications is as follows:




Total Sale Volume of the System         Company's Percentage
-------------------------------         --------------------
$          1 to $ 5,000,000                    97.14%
$  5,000,001 to $ 7,500,000                    97.71%
$  7,500,001 to $10,000,000                    98.29%
$ 10,000,001 and over                          98.86%

--------------------------------

     The Company's position is that based upon reasonable expectations of the
parties, the above figures are for the life of the patent.



PATENTS
-------

     The Company is the assignee of the following patents and patent
applications directed to the Model and/or the System as indicated:

                                                                              10

<PAGE>


            Patent No.    Issue date
            or Appli-      or Filing     Expiration   Subject
Country     cation No.    Date           Date         Matter
-------     ----------    ----------     ----------   --------

United      4,134,218     1/16/79       1/16/96      Model and
States                                               Methods and
                                                     Apparatus re-
                                                     lating to the
                                                     System

United        308,914     Filed                      New model re-
States                    2/9/89                     lating to the
                                                     system.


Canada      1,109,252     9/22/81       9/22/98      Model

Canada      1,147,951     Filed         6/14/2000    Methods and
                          6/14/83                    Apparatus re-
                                                     lating to the
                                                     System


United      2005894       5/26/82       10/2/98      Model
Kingdom

United      2077017       10/13/82      10/2/98      Methods and
Kingdom                                              Apparatus re-
                                                     lating to the
                                                     System


Germany     P 2844373.4   11/11/81      10/12/98     Model, as well
                                                     as certain appa-
                                                     ratus relating
                                                     to the System

Germany(1)  Pending       Filed            -         Division appli-
            Application   2/25/80                    cation of the
            P 2857496.14                             application
                                                     which issued as
                                                     German Patent
                                                     No. P 2844373.4
                                                     and is directed
                                                     to methods and
                                                     apparatus rela-
                                                     ting to the system


Japan       1304322       6/15/85       10/11/98     Methods and
                                                     Apparatus rela-
                                                     ting to the System

Japan(2)    Pending       10/26/84         -         Model allowed
            224,279/84                               and published
                                                     for opposition.

                                                                              11

<PAGE>


(1) The German Patent Office has issued a notice of a decision to grant this
application. After the application is granted, it will be published for the
purpose of opposition, an interested person may oppose the granting of the
application within three months of the publication date.

(2) This application was allowed by the Japanese Patent Office and published for
opposition in September, 1985. In November, 1985, a Statement of Opposition was
filed on the ground that protection sought fro this model was overbroad and that
the Company's model is not sufficiently novel or inventive compared to other
models to support a patent. In November, 1986, the Company filed a repose
setting forth their position that the patent application defines the model in a
manner that is patentable over all of the prior models known. To date, the
Japanese Patent Office has not acted on this matter.

     All of the foreign patents and patent applications have claimed the benefit
of the filing date of the application which issued as U.S. Patent No. 4,134,218,
namely, October 11, 1977, under the Paris Convention of 1883 for the Protection
of Industrial Property. There is no assurance that any of the pending patent
applications will be issued as patents.

                                                                              12

<PAGE>


TRADEMARKS
----------

     The following chart depicts the trademarks and copyrights owned by the
Company:

                                     Regis-
                                     tration
Type of Mark        Mark             Number          Status
------------        ----             ------          ------

U.S. Trademark   The MammaCare      1,288,296       Issued
                 Method & Design                    7/31/84

U.S. trademark   The Mammatech      1,305,388       Issued
                 Corporation                        11/13/84

U.S. Trademark   MammaKit           1,317,844       Issued
                                                    2/5/85

U.S. Trademark   MammaTrainer       1,310,897       Issued
                 & Design                           12/25/84

U.S. Trademark   MammaTest          1,303,689       Issued
                 & Design                           11/6/84

U.S. Trademark   M & Design         1,310,918       Issued
                                                    12/25/84

U.S. Trademark   Hand Design        1,357,256       Issued
                                                    8/27/85

U.S. Trademark   MammaCare          1,445,641       Issued
                                                    6/30/87

---------------------------------------------------


COPYRIGHTS
---------                            Regis-
                                     tration
Type                Name             Number      Effective for:
----                ----             -------     --------------

Advertising         What Am I      TX1-199-545   75 years from
Brochure            Supposed to                  9/29/83
                    Feel?


Test Form           MammaTest      TX1-234-492   75 years from
                                                 12/14/83

Instructional       The MammaCare  TX1-259-524   75 years from
Manual              Method                       12/29/83

                                                                              13

<PAGE>


ITEM 2.  PROPERTIES
-------------------

     The Company's facilities house its executive offices and MammaCare Center.
Located at 930 N.W. 8th Avenue, Gainesville, Florida, the Company's offices are
approximately 2,700 square feet. Rent is $1295.25 per month plus utilities.
These facilities are adequate for the Company's current business operations. The
Company does not anticipate difficulties in obtaining additional office
facilities in Gainesville at comparable rates should operations expand
sufficiently. The Company rents these facilities from an unrelated party on a
month- to-month basis. The Company owns a completely equipped modular factory
unit that is housed within a building owned by RTS Laboratories, Inc. (RTS), a
non-affiliated organization located in Alachua, Florida. RTS supplies personnel
and manufactures the Company's models under contract, using the Company's
modular facility, materials, and equipment.

ITEM 3. LEGAL PROCEEDINGS
-------------------------

     There is no current or pending litigation involving the Company.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
------------------------------------------------------------

     Not Applicable.

                                                                              14

<PAGE>


                                     PART II
                                     -------

ITEM 5.  MARKET FOR THE COMPANY'S COMMON STOCK EQUITY AND RELATED
-----------------------------------------------------------------
SHAREHOLDER MATTERS
-------------------

     A. Market Information. The Company's common stock is traded in the
over-the-counter market. From February 1983, through December 1985, there had
been an established trading market on NASDAQ for the Company's common stock.
However, in mid-December 1985, the Company's common stock was de-listed by
NASDAQ. The Company's common stock is currently listed in the National Quotation
Bureau "pink sheets". Throughout 2001, the bid value of the stock ranged from
$0.001 to $0.05.

     The following information concerning the National Quotation Bureau price of
the Company's common stock has been received from NASDAQ and the National
Quotation Bureau.


     Quarterly Period        High Bid (1)           Low Bid (1)
     ----------------        ------------           ------------

     November 30, 1988          $   0.005              $   0.005
     February 28, 1989          $   0.01               $   0.0025
     May 31, 1989               $   0.01               $   0.01
     August 31, 1989            $   0.01               $   0.004
     November 30, 1989          $   0.01               $   0.0075
     February 28, 1990          $   0.01               $   0.005
     May 31, 1990               $   0.01               $   0.005
     August 31, 1990            $   0.01               $   0.001
     November 30, 1990          $   0.01               $   0.001
     February 29, 1991          $   0.01               $   0.001
     May 31, 1991               $   0.01               $   0.001
     August 31, 1991            $   0.01               $   0.001
     November 30, 1991          $   0.01               $   0.001
     February 29, 1992          $   0.01               $   0.001
     May 31, 1992               $   0.01               $   0.001
     August 31, 1992            $   0.01               $   0.001
     August 31, 1996            $   0.01               $   0.005
     August 31, 1997            $   0.01               $   0.001
     August 31, 1998            $   0.24               $   0.001
     August 31, 1999            $   0.08               $   0.010
     August 31, 2000            $   0.30               $   0.010
         August 31, 2001        $   0.05               $   0.001

(1) Such over-the-counter market quotations reflect inter-dealer prices, without
retail mark-up, mark-down or commission, and may not necessarily represent
actual transactions.

                                                                              15

<PAGE>


     B. Holders of Common Stock. As of August 31, 2001, there were approximately
3,460 record holders of the Company's common stock with 100,352,500 shares
outstanding, of which 6,208,500 shares are treasury stock.






ITEM 6.  SELECTED FINANCIAL DATA
--------------------------------

Summary of Consolidated Statements of Operations


YEAR ENDED             Aug.31,     Aug.31,     Aug.31,     Aug.31,     Aug.31,
                        2001        2000        1999        1998        1997
                       -------     -------     -------     -------     -------
Revenues from          539,414     464,153     468,206     541,911     438,755
Operations
Net Income              12,521       4,532     201,934     150,545     143,578
(Loss)
Income (Loss)                0           0           0           0           0
per Common
Share




Summary of Consolidated Balance Sheet
-------------------------------------


YEAR ENDED            Aug.31,     Aug.31,     Aug.31,      Aug.31,     Aug.31,
                       2001        2000        1999         1998        1997
                      -------     -------     -------      -------     -------
Total Assets         1,242,465   1,147,500   1,065,127     769,143     530,184

Total                  525,082     400,235     307,368     233,987     112,825
Liabilities



YEAR ENDED             Aug.31,     Aug.31,     Aug.31,     Aug.31,     Aug.31,
                        2001        2000        1999        1998        1997
                       -------     -------     -------     -------     -------
Shareholder's          717,383     747,265     757,759     543,216     417,359
Equity


During these periods, no cash dividends were declared or paid.
--------------------------------------------------------------

                                                                              16

<PAGE>



ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
-------------------------------------------------------------------------
RESULT OF OPERATIONS
--------------------

     Results of Operations.
     ----------------------

     Sales for 2001 were the highest in the Company's history. The 2001 sales
total of $539,414 represents a increase of 16.2% compared to the previous year
and a increase of 15.2% compared to 1999. Export sales of $41,895 accounted for
7.7% of the total, up from 5.04& the previous year. Figure 1 shows the progress
of sales since 1987, the first year the Company sold its products directly to
the medical profession rather than through its licensed centers.

                               [GRAPHIC OMITTED]
                  Figure 1 Sales Revenues for Mammatech:1987-
                                      2001

     The Company's operating expense decreased by 7.28% in comparison to 2000
and by 3.09% with respect to the 1999 figure. The resulting operating loss of
$68,718 is reduced by 64% in comparison to last year and by 60.4% compared to
1999. Since 1998, this figure has been elevated due to the need for additional
staff assigned to a three-year NCI SBIR Phase II grant awarded to the Company.
This expense continued during the 2001 but was reimbursed in the amount of
$38,557. The Company's pretax net income for the year was $12,521, up
significantly (176%) from $4,532 in the previous year.

     The major focus of the Company's marketing activities during the year was
the expansion of its direct mail program. This was enhanced by the production
and distribution of the Company's first catalogue which has been carefully
coordinated with the web site. Enhanced sales, particularly from new customers,
was the principal result of this activity which is now being expanded.

                                                                              17

<PAGE>


     The Company introduced two major new products during the year. The first is
a greatly improved version of its basic patented training model which anchors
the MammaCare Professional Learning System. The second new product is an economy
version of the MammaCare Lump Chart, introduced last year. Demand for the new
lump chart already exceeds that of the earlier version and is expected to remain
brisk.

     During the year, a number of research reports appeared in the medical
literature suggesting manual examination of the breast is essentially equivalent
to mammography with respect to effectiveness in detecting early stage breast
cancer. The result has been an upsurge in interest on the part of medical
schools and training programs in the Company's training systems and products.
The Company therefore continued its emphasis on its professional training
program during 2001, producing 40 Certified MammaCare Specialists, down from 52
the previous year. Four of these individuals are employees of the World Bank and
were trained in a satellite training facility at George Washington University.
Additionally, the company provided training for 65 attendees at the annual
meeting of the Nation Consortium of Breast Centers. A number of these
individuals have sought additional training as a result of this exposure and
others are expected to do so as well.

     Medical professionals seeking MammaCare Professional Training represent a
variety of health care organizations. Many are associated with the U.S. Centers
for Disease Control, Breast and Cervical Cancer Project (BCCP)and other federal
and state facilities. Others come from military facilities. Professional
training continues to be a significant source of revenue for the Company,
although there can be no assurance that it will continue.

     The Company also benefits from its sales and distribution agreement with a
German health care products company. This agreement provides exclusive
distribution rights for the Company's products throughout Germany and the
German-speaking portions of Austria, Switzerland, and Belgium. In return, the
distributor has undertaken at its own expense to provide translations of the
Company's Personal Learning System video tape and printed materials. The
distributor continues an extensive promotional campaign in both the electronic
and print media. The distributor is now actively marketing and modest sales are
continuing. Discussions concerning formation of a MammaCare training center in
Germany are now in the beginning stages. There can be no assurance that such a
center will materialize or that, even if it does, that there will be substantial
revenue to the Company as a result.

                                                                              18

<PAGE>


     The Company continues to participate in a cooperative agreement with
Medical Informatics, a division of Multi-Media Systems, Inc. This arrangement
provides for joint development of an automated version of the Company's clinical
breast examination technology. This work is supported primarily by a NCI Phase
II SBIR grant to Multi-Media Systems. There can be no assurance that a
marketable product will result from this collaboration or that any revenues will
accrue to the Company as a result.

     Finally, the Company continued during the year to conduct its research
program under a Phase II grant in the amount of $592,000 from the Small Business
Innovative Research (SBIR) Program of the National Institutes of Health. The
purpose of this project is to develop versions of MammaCare suitable for use by
women with sensory impairments. The portion of the project devoted to the blind
and visually impaired has been completed and sales are just now beginning. Work
on a companion product for the hearing impaired is nearing completion. The
Company sought and received a one-year no-cost extension of the project in order
to complete data collection and analysis. Data are being collected via the
internet using a site and an interactive technology that may in the future be
used with certain of the Company's other products.


     Liquidity
     ---------

     At the close of the 2001 fiscal year, the Company's assets totaled
$1,242,465 compared to $1,147,500 at the close of 2000. The Company has
sufficient liquid assets to meet current and foreseeable obligations.

     The Company continues to support its operations solely on the basis of
operating revenues and is debt free but for its note for $6,260 to an
unaffiliated supplier for its manufacturing facility. The Company's principal
goal continues to be to make MammaCare available to all women at risk for breast
cancer through affiliations with capable organizations in the health care
industry.


     Capital Resources.
     ------------------

     The Company has no material commitment for capital expenditures and there
are no known trends in its capital resources.


ITEM 8.  FINANCIAL STATEMENTS - (SEE FOLLOWING PAGES)
-----------------------------

                                                                              19

<PAGE>


                         REPORT OF INDEPENDENT AUDITORS


Board of Directors and Shareholders
Mammatech Corporation

We have audited the accompanying balance sheets of Mammatech Corporation as of
August 31, 2001 and 2000, and the related statements of operations, changes in
stockholders' equity, and cash flows for each of the three years then ended.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audit.

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 financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates 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 financial statements referred to above present fairly, in
all material respects, the financial position of Mammatech Corporation as of
August 31, 2001 and 2000, and the results of its operations, and its cash flows
for each of the three years then ended, in conformity with generally accepted
accounting principles.




                            /s/  James E. Scheifley & Associates, P.C.
                            ------------------------------------------
                                 James E. Scheifley & Associates, P.C.
                                 Certified Public Accountants

Englewood, Colorado
September 27, 2001

                                                                              20

<PAGE>
<TABLE>
<CAPTION>


                              Mammatech Corporation
                                 Balance Sheets
                            August 31, 2001 and 2000


                                     ASSETS
                                     ------
                                                          2001           2000
                                                      -----------    -----------
Current assets:
<S>                                                   <C>            <C>
  Cash                                                $   578,054    $   541,855
  Available for sale securities                           217,908        174,074
  Accounts receivable - trade, net of allowance for
    doubtful accounts of $7,908 and $8,670                128,861         82,436
  Accounts receivable - other                                   0          3,548
  Inventory                                               105,448        141,685
  Deferred tax asset - current portion                      5,100          3,400
                                                      -----------    -----------
      Total current assets                              1,035,371        946,998


Property and equipment, at cost, net of
  accumulated depreciation of $215,464 and $204,595        26,488         22,803

Deferred tax asset - non-current portion                  161,890        165,800
Patents, trademarks and other intangibles, net of
  accumulated amortization of $82,572 and $72,292          18,716         11,899
                                                      -----------    -----------
                                                      $ 1,242,465    $ 1,147,500
                                                      ===========    ===========

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

Current liabilities:
  Current portion of long-term debt                         6,260          6,736
  Accounts payable - trade                                 24,433         29,438
  Accounts payable - officers                               6,630          6,630
  Accrued salaries                                        416,189        298,410
  Accrued royalties                                        71,570         59,021
                                                      -----------    -----------
      Total current liabilities                           525,082        400,235

Long-term debt                                                  0              0

Stockholders' equity:
 Common stock, $.0001 par value,
  200,000,000 shares authorized, 100,462,500 and
  100,452,500 shares issued and outstanding                10,046         10,046
 Additional paid-in capital                             2,811,183      2,811,183
 Accumulated deficit                                   (1,890,939)    (1,903,460)
                                                      -----------    -----------
                                                          930,290        917,769
 Valuation allowance for marketable securities            (64,856)       (22,453)
 Treasury stock, at cost, 6,208,500 shares               (148,051)      (148,051)
                                                      -----------    -----------
                                                          717,383        747,265
                                                      -----------    -----------
                                                      $ 1,242,465    $ 1,147,500
                                                      ===========    ===========


                 See accompanying notes to financial statements.

                                                                               21
</TABLE>

<PAGE>
<TABLE>
<CAPTION>


                                        Mammatech Corporation
                                        Statements of Income
                             Years Ended August 31, 2001, 2000 and 1999

                                                         2001             2000             1999
                                                    -------------    -------------    -------------
<S>                                                 <C>              <C>              <C>
Sales, net                                          $     539,414    $     464,153    $     468,206
Cost of sales                                             128,318          130,276          146,878
                                                    -------------    -------------    -------------
Gross profit                                              411,096          333,877          321,328

Selling, general and administrative expenses              479,814          517,491          494,593
                                                    -------------    -------------    -------------
Income (loss) from operations                             (68,718)        (183,614)        (173,265)

Other income and (expense):
  Interest expense                                         (1,624)               0             (132)
  Loss on sale of investment securities                         0                0          (10,228)
  Other income                                             38,557          152,243          186,440
  Interest and dividend income                             46,516           36,703           29,119
                                                    -------------    -------------    -------------
                                                           83,449          188,946          205,199

Income before income taxes                                 14,731            5,332           31,934
Provision for income taxes                                 (2,210)            (800)         170,000
                                                    -------------    -------------    -------------

Net income                                          $      12,521    $       4,532    $     201,934
                                                    =============    =============    =============

Basic and fully diluted earnings per share:
 Net income                                         $        0.00    $        0.00    $        0.00
                                                    =============    =============    =============

 Weighted average shares outstanding                  100,462,500      100,458,333      100,352,500
                                                    =============    =============    =============




  Net income (loss)                                 $      12,521    $       4,532    $     201,934
   Unrealized gain (loss) from investments net of
    income taxes                                          (27,986)         (10,115)           7,464
                                                    -------------    -------------    -------------
  Comprehensive income                              $     (15,465)   $      (5,583)   $     209,398
                                                    =============    =============    =============


                           See accompanying notes to financial statements.

                                                                                                 22
</TABLE>

<PAGE>
<TABLE>
<CAPTION>


                                Statement of Stockholders' Equity
                                      Mammatech Corporation


                                                                     Additional
                                            Common                     Paid-in      Treasury
                                            Shares        Amount       Capital        Stock
                                         -----------   -----------   -----------   -----------
<S>                                     <C>           <C>           <C>           <C>
Balance, August 31, 1998                 100,352,500   $    10,035   $ 2,809,594   $  (148,051)

Common stock issued for services             100,000            10         1,290          --

Increase in market value of securities          --            --            --            --

Net income for the year                            0             0             0             0
                                         -----------   -----------   -----------   -----------

Balance, August 31, 1999                 100,452,500        10,045     2,810,884      (148,051)

Common stock issued for services              10,000             1           299          --

(Decrease) in market value of
securities                                      --            --            --            --

Net income for the year                            0             0             0             0
                                         -----------   -----------   -----------   -----------

Balance, August 31, 2000                 100,462,500        10,046     2,811,183      (148,051)

(Decrease) in market value of
securities                                      --            --            --            --

Net income for the year                            0             0             0             0
                                         -----------   -----------   -----------   -----------

Balance, August 31, 2001                 100,462,500   $    10,046   $ 2,811,183   $  (148,051)
                                         ===========   ===========   ===========   ===========


                                                                                             23
</TABLE>

<PAGE>
<TABLE>
<CAPTION>


                         Statement of Stockholders' Equity
                               Mammatech Corporation
                                      (Con't)


                                         Securities
                                          Valuation     Accumulated
                                           Reserve        Deficit         Total
                                         -----------    -----------    -----------
<S>                                    <C>            <C>            <C>
Balance, August 31, 1998                 $   (18,436)   $(2,109,926)   $   543,216

Common stock issued for services                   0           --            1,300

Increase in market value of securities        11,309           --           11,309

Net income for the year                            0        201,934        201,934
                                         -----------    -----------    -----------

Balance, August 31, 1999                      (7,127)    (1,907,992)       757,759

Common stock issued for services                   0           --              300

(Decrease) in market value of
securities                                   (15,326)          --          (15,326)

Net income for the year                            0          4,532          4,532
                                         -----------    -----------    -----------

Balance, August 31, 2000                     (22,453)    (1,903,460)       747,265

(Decrease) in market value of
securities                                   (42,403)          --          (42,403)

Net income for the year                            0         12,521         12,521
                                         -----------    -----------    -----------

Balance, August 31, 2001                 $   (64,856)   $(1,890,939)   $   717,383
                                         ===========    ===========    ===========


                                                                          23(Con't)
</TABLE>

<PAGE>
<TABLE>
<CAPTION>


                                 Mammatech Corporation
                               Statements of Cash Flows
                      Years Ended August 31, 2001, 2000 and 1999

                                                    2001        2000         1999
                                                 ---------    ---------    ---------

<S>                                              <C>          <C>          <C>
Net income (loss)                                $  12,521    $   4,532    $ 201,934
  Adjustments to reconcile net income (loss)to
net
   cash provided by operating activities:
   Depreciation and amortization                    16,788       22,454      (21,737)
   Common stock issued for services                      0          300        1,300
Changes in assets and liabilities:
    (Increase) decrease in accounts receivable     (42,877)      11,547      (19,358)
    (Increase) decrease in available for sale
securities                                         (86,237)    (112,894)      29,180
    (Increase) decrease in inventory                36,237       42,686       17,203
    (Increase) decrease in other assets             (3,424)     (12,705)      43,054
    (Increase) decrease in deferred tax asset        2,210          800     (170,000)
    Increase (decrease) in accounts payable         (5,005)      (6,983)     (12,174)
    Increase (decrease) in accrued expenses        130,328       99,850       93,615
                                                 ---------    ---------    ---------
       Total adjustments                            48,020       45,055      (38,917)
                                                 ---------    ---------    ---------
  Net cash provided by
   operating activities                             60,541       49,587      163,017
                                                 ---------    ---------    ---------

Cash flows from investing activities:
   Acquisition of property and equipment           (23,866)      (5,944)      (7,545)
                                                 ---------    ---------    ---------
Net cash (used in) investing activities            (23,866)      (5,944)      (7,545)
                                                 ---------    ---------    ---------

Cash flows from financing activities:
   Repayment of note payable                          (476)           0            0
                                                 ---------    ---------    ---------
  Net cash (used in)
   financing activities                               (476)           0            0
                                                 ---------    ---------    ---------

Increase (decrease) in cash                         36,199       43,643      155,472
Cash and cash equivalents,
 beginning of period                               541,855      498,212      342,740
                                                 ---------    ---------    ---------
Cash and cash equivalents,
 end of period                                   $ 578,054    $ 541,855    $ 498,212
                                                 =========    =========    =========


                 See accompanying notes to financial statements.

                                                                                  24
</TABLE>

<PAGE>



                              Mammatech Corporation
                            Statements of Cash Flows
                   Years Ended August 31, 2001, 2000 and 1999

                                                  2001        2000        1999
                                                --------    --------    --------

Supplemental cash flow information:
   Cash paid for interest                       $      0    $    132    $    829
   Cash paid for income taxes                   $   0.00    $   0.00    $   0.00


Non-cash investing and financing acticities:
Increase (decrease) in investment valuation
reserve                                         $(42,403)   $(15,326)   $ 11,309


                 See accompanying notes to financial statements.

                                                                              25

<PAGE>
                              Mammatech Corporation
                          Notes to Financial Statements
                                 August 31, 2001


Note 1. Summary of Significant Accounting Policies

     A. Organization and Operations: Mammatech Corporation was incorporated in
     the State of Florida on November 23, 1981, and holds patents on a breast
     tumor detection training system. The system, which consists of a breast
     model and a method of breast self-examination, is marketed by the Company
     to individuals and healthcare professionals.

     Inventories:
     Inventories, which consist principally of finished goods, are stated at the
     lower of cost or market using the first-in, first-out method.

     Property and Equipment:
     Property and equipment are carried at cost. Depreciation and amortization
     are computed using the straight-line method over the estimated useful lives
     of the assets ranging from 3 to 8 years. When assets are retired or
     otherwise disposed of, the cost and the related accumulated depreciation
     are removed from the accounts, and any resulting gain or loss is recognized
     in operations for the period. The cost of repairs and maintenance is
     charged to operations as incurred and significant renewals or betterments
     are capitalized.

     Patents, Trademarks, and Copyrights:
     Patents, trademarks, and copyrights are amortized using the straight-line
     method over their estimated useful economic lives of 10 years. They are
     stated at cost less accumulated amortization.

     Revenue recognition:
     The Company recognizes revenue on the sales of its products at the time of
     shipment.

                                                                              26

<PAGE>


     Earnings per share:
     In February 1997, the Financial Accounting Standards Board ("FASB") issued
     SFAS No. 128, "Earnings Per Share." SFAS No. 128 supersedes and simplifies
     the existing computational guidelines under Accounting Principles Board
     ("APB") Opinion No. 15, "Earnings Per Share."

     The statement is effective for financial statements issued for periods
     ending after December 15, 1997. Among other changes, SFAS No. 128
     eliminates the presentation of primary earnings per share and replaces it
     with basic earnings per share for which common stock equivalents are not
     considered in the computation. It also revises the computation of diluted
     earnings per share.

     The Company has adopted SFAS No. 128 and there is no material impact to the
     Company's earnings per share, financial condition, or results of
     operations. The Company's earnings per share have been restated for all
     periods presented to be consistent with SFAS No. 128.

     The basic earnings per share are computed by dividing net income for the
     period by the weighted average number of common shares outstanding for the
     period. Basic income per share is unchanged on a diluted basis.

     Cash and cash equivalents:
     Cash and cash equivalents, consist of cash and term deposits with original
     maturities of less than 90 days.

     Estimates:
     The preparation of the Company's financial statements requires management
     to use estimates and assumptions. These estimates and assumptions affect
     the reported amounts in the financial statements and accompanying notes.
     Actual results could differ from these estimates.

     Fair value of financial instruments:
     The Company's short-term financial instruments consist of cash and cash
     equivalents, marketable securities, accounts and loans receivable, and
     payables and accruals. The carrying amounts of these financial instruments
     approximate fair value because of their short-term maturities. Financial
     instruments that potentially subject the Company to a concentration of

                                                                              27

<PAGE>


     credit risk consist principally of cash, marketable securities and accounts
     receivable, trade. During the year the Company maintained cash deposits at
     financial institutions in excess of the $100,000 limit covered by the
     Federal Deposit Insurance Corporation.

     Stock-based Compensation
     The Company adopted Statement of Financial Accounting Standard No. 123 (FAS
     123), Accounting for Stock-Based Compensation beginning with the Company's
     first quarter of 1996. Upon adoption of FAS 123 when circumstances
     requiring its application arise, the Company will continue to measure
     compensation expense for its stock-based employee compensation plans using
     the intrinsic value method prescribed by APB No. 25, Accounting for Stock
     Issued to Employees.

     Advertising
     Advertising expenses are charged to expense upon first showing. Amounts
     charged to expense were $6,226, $4,182 and $673 for the years ended August
     31, 2001, 2000 and 1999, respectively.

     New Accounting Pronouncements
     SFAS No. 130, 'Reporting Comprehensive Income', establishes guidelines for
     all items that are to be recognized under accounting standards as
     components of comprehensive income to be reported in the financial
     statements.

     The statement is effective for all periods beginning after December 15,
     1997 and reclassification of financial statements of financial statements
     for earlier periods will be required for comparative purposes. The Company
     has adopted SFAS No. 130 during the year ended August 31, 1999.


     Note 2. Related Party Transactions

     The Company occupies office and clinic space pursuant to a month-to-month
     lease entered into with a shareholder at a cost of $1,295 per month plus
     certain common costs, which approximates fair market value. Rent expense
     was $15,069, $13,497, and $14,885 for the years ended August 31, 2001,
     2000, and 1999, respectively.

                                                                              28

<PAGE>


     During prior years two officers of the Company made advances aggregating
     $11,830 of which $5,200 had been repaid prior to the year ended August 31,
     1998. The balance of the advances was $6,630 at August 31, 2001.

     During February 1989, an officer of the Company filed a patent application
     for a product representing a variation of the Company's patented models.
     The new product is an important part of the Company's product line.

     The Company has entered into an agreement with this officer whereby the
     Company would enjoy exclusive and unrestricted use of the new product for
     the payment of the patent application fees. The agreement was for a period
     of one year and is automatically renewable for additional one year periods
     provided, however, that either party may cancel the agreement upon one
     months notice after the initial year.


     Note 3. Available for Sale Securities

     During the year ended August 31, 1999 the Company liquidated certain of its
     investment in a high-income mutual fund. Proceeds from the sale amounted to
     $66,277 and a portion thereof were reinvested in other mutual fund
     investments. The Company realized a loss from the sale of $10,228 during
     the year ended August 31, 1999. The aggregate market value of the funds
     amounted to $76,506 at August 31, 1999. The accumulated amount of net
     unrealized holding (losses) applicable to these securities has been
     included as a separate component of stockholders' equity in the
     accompanying balance sheet. This amount was ($7,127) at August 31, 1999 and
     the change in net unrealized holding (losses) for the year ended August 31,
     1999 amounted to $11,309.

     During the year ended August 31, 2000 the Company increased its investment
     in a high-income mutual fund by $112,894. The aggregate market value of the
     funds amounted to $174,074 at August 31, 2000. The accumulated amount of
     net unrealized holding (losses) applicable to these securities has been

                                                                              29

<PAGE>


     included as a separate component of stockholders' equity in the
     accompanying balance sheet. This amount was ($22,453) at August 31, 2000
     and the change in net unrealized holding (losses) for the year ended August
     31, 2000 amounted to $(15,326).

     During the year ended August 31, 2001 the Company increased its investment
     in a high-income mutual fund by $86,237. The aggregate market value of the
     funds amounted to $217,908 at August 31, 2001. The accumulated amount of
     net unrealized holding (losses) applicable to these securities has been
     included as a separate component of stockholders' equity in the
     accompanying balance sheet. This amount was ($64,856) at August 31, 2001
     and the change in net unrealized holding (losses) for the year ended August
     31, 2001 amounted to $(42,403).


     Note 4. Property and Equipment

     Property and equipment consists of the following, at cost, at August 31:

                                                2001      2000
                                              --------  --------
           Furniture and equipment            $225,817  $211,263
           Leasehold improvements               16,135    16,135
                                               -------   -------
                                               241,952   227,398
           Less: accumulated depreciation      215,464   204,595
                                               -------   -------
                                              $ 26,488  $ 22,803
                                               =======   =======

     Depreciation charged to operations was $10,869, $17,193 and $17,115 during
     the years ended August 31, 2001, 2000, and 1999, respectively.


     Note 5. Note Payable

     At August 31, 2001 the Company had an unsecured note payable due to a
     vendor in the principal amount of $6,260 with interest at 8% per annum. The
     Company plans repay the note in full during the year ended August 31, 2002.

                                                                              30

<PAGE>


     Note 6. Commitments and Contingencies

     In connection with the acquisition of the patent rights for the Company's
     system of breast self-examination, the Company has paid $11,787 to the
     University of Florida for its release of all patent rights. In addition, 7
     inventors also held certain patent rights to the Company's process. Three
     of these individuals, who are principal shareholders of the Company,
     contributed their rights to the Company at the inception of the Company in
     1981 at $0 value. The remaining four inventors have assigned their rights
     in certain models to the Company in exchange for royalty payments to be
     made based on sales. The related sales were $435,719, $379,154, and
     $449,802 for the years ended August 31, 2001, 2000, and 1999, respectively.
     The related royalty expense was $12,549, $10,920, and $12,954 for the years
     ended August 31, 2001, 2000, and 1999, respectively.

     The aggregate royalties payable to the inventors is as follows:

                                  Sales           Royalty
                        ---------------------------------
                        $        1  -  $ 5,000,000  2.86%
                        $5,000,001  -  $ 7,500,000  2.29%
                        $7,500,001  -  $10,000,000  1.71%
                        Over           $10,000,000  1.14%

     The Company does not maintain product liability insurance related to its
     product line. It is unable to estimate the risks and possible economic
     consequences related to its decision not to carry this type of insurance.


     Note 7. Concentration of Credit Risk/Major Customers

     During the years ended August 31, 2001, 2000 and 1999, the Company had no
     single customer that accounted for more than 10% of its total sales.

     At August 31, 2001 the Company has $545,447 on deposit in uninsured money
     market accounts.

                                                                              31

<PAGE>


     The Company currently utilizes a single manufacturer for its products.
     Should this manufacturer be unable to meet the Company's demands it feels
     that it would be able to locate another suitable manufacturer or
     manufacturers.

     The Company made sales to customers located in foreign countries amounting
     to $41,895 during the year ended August 31, 2001.


     Note 8. Other Income

     During September 1997, the Company received final approval for a research
     grant aggregating $592,000 to offset the costs associated with a program to
     promote breast self-examination for disabled women. The grant was issued to
     the Company by the US Department of Health and Human Services and has a
     two- year term ending September 29, 1999 and has been extended for an
     additional term. Funds received for services provided under the grant for
     the years ended August 31, 2001, 2000 and 1999 amounted to $38,557,
     $152,243 and $186,440, respectively.


     Note 9. Income Taxes

     Deferred income taxes may arise from temporary differences resulting from
     income and expense items reported for financial accounting and tax purposes
     in different periods. Deferred taxes are classified as current or
     non-current, depending on the classifications of the assets and liabilities
     to which they relate. Deferred taxes arising from temporary differences
     that are not related to an asset or liability are classified as current or
     non-current depending on the periods in which the temporary differences are
     expected to reverse. The Company has recorded a deferred tax asset during
     the year ended August 31, 1999, related to the operating loss carryforward
     of $170,000 based upon its estimate of net income before taxes that it
     expects to generate during the remaining term of the loss carryforward
     ($500,000). The Company has provided a reserve of approximately $140,000
     for the asset related to the portion of the loss carryforward that more
     likely than not will not be utilized in future years. The reserve has
     decreased by approximately $75,000 from the amount recorded at August 31,
     2000 due principally to the expiration or utilization of $228,000 of the
     loss carryforward during 2001.

                                                                              32

<PAGE>


     At August 31, 2001, the Company had net operating loss carryforward
     aggregating approximately $903,000, which expires as follows:

                   2002:   $ 115,000          2007:   $ 131,000
                   2003:   $  54,000          2008:   $  74,000
                   2004:   $ 233,000          2009:   $  16,000
                   2005:   $ 280,000


     The amounts shown for income taxes in the statements of operations differ
     from the amounts computed at federal statutory rates. The following is a
     reconciliation of those differences.

                                          Year Ended August 31,
                                          ---------------------
                                          2001     2000    1999
                                          ----     ----    ----
        Tax at federal statutory rates     34%      34%     34%
        Surtax exemption                  (19)     (19)    (19)
        Operating loss carryforward       (15)     (15)    (15)
                                          ---      ---     ---
                                           - %      - %     - %
                                          ===      ===     ===


     Item 9. Disagreements on Accounting and Financial Disclosure
     ------------------------------------------------------------

     None

                                                                              33

<PAGE>


PART III
--------

Item 10. Directors and Executive Officers of the Company
--------------------------------------------------------

     The following persons are the executive officers and directors of the
Company.

Name                           Age      Position with the Company
----                           ---      -------------------------

Mark Kane Goldstein, Ph.D.     63       Chairman of the Board, Vice-
President and Secretary

H. S. Pennypacker, Ph.D.       64       President and Director

Mary Bailey Sellers            53        Treasurer


     All directors serve until the next annual meeting of shareholders. There is
currently one vacancy on the Board of Directors.

Mark Kane Goldstein
-------------------

     Mark Kane Goldstein, Ph.D., is Chairman of the Board, Vice President and
Secretary of the Company. Dr. Goldstein directs and advises the Company on
fiscal and policy matters and directs research on product development. From 1971
until July, 1982, Dr. Goldstein was employed by the U.S. Veterans
Administration, Gainesville, Florida, as a research scientist. During this same
period, Dr. Goldstein also was an Associate Professor/Research Scientist at the
University of Florida, Gainesville, Florida, and continues as Co-Director of its
Center for Ambulatory Studies.

     From 1978 through May, 1984, Dr. Goldstein was a member of the City
Commission of Gainesville, Florida including 1980-81 when he served a one-year
term as Mayor.

     Dr. Goldstein received a B.A. in 1961 from Muhlenberg College, an M.A. in
1962 from Columbia University and a Ph.D. in 1971 from Cornell University. All
Degrees were in Psychology.


Henry Sutton Pennypacker, Ph.D.
-------------------------------

     Henry Sutton Pennypacker, Jr., Ph.D., is President and a director of the
Company. He is currently employed as President of the Company and as Professor
Emeritus of Psychology at the University of Florida. He was the acting Chairman

                                                                              34

<PAGE>


of the Department of Psychology from June 1969 to 1970 and prior thereto was an
Associate Professor and Assistant Professor. In May 1998, Dr. Pennypacker
retired from the University but continues to teach on a part-time basis.

     Dr. Pennypacker is the author or co-author of four books and over fifty
articles and book chapters dealing with various aspects of behavioral research
and behavioral medicine. He is a past President of the International Association
for Behavior Analysis, the Society for Advancement of Behavior Analysis, and the
Florida Association for Behavior Analysis. He serves as a member of the Board of
Trustees of the Cambridge Center for Behavioral Studies and was recently elected
Chairman of its newly formed Board of Directors. On August 10, 1990, Dr.
Pennypacker received an award from the California Division of the American
Cancer Society in recognition of his "...pioneering contribution to breast
self-examination education."

     Dr. Pennypacker received a B.A. and an M.A. from the University of Montana
in 1958 and 1960, respectively, and a Ph.D. from Duke University in 1962. All
degrees were in Psychology.

Mary Bailey Sellers
-------------------

     Mary Bailey Sellers has been employed as Controller by the Company since
September 1985. She was appointed Treasurer in August 1986. From April 1978
through November 1984, she was employed by Barnett Bank of Alachua County, N.A.,
and a predecessor bank as Vice President-- commercial loans. Mrs. Sellers
devoted her time to her family from December 1984 through August 1985.

     Mrs. Sellers received a B.A. in English and History in 1970 from Barry
College.


Item 11. Executive Compensation
-------------------------------

     The following table sets forth the cash remuneration paid or accrued by the
Company during the fiscal year ended August 31, 2001, to each executive officer
whose total cash compensation exceeded $60,000 and to all executive officers of
the Company as a group.

                                                                              35

<PAGE>


                            Cash Compensation Table
                            -----------------------

        A                        B                      C
--------------------------------------------------------------------------------

Name of individual          Capacities in            Cash
or number of persons        which served           Compensation
in a group
All executive officers      All capacities         $47,187.37
as a group
(three persons) (1)

(1) No executive officer of the Company received more than $37,500.00 in
compensation during the fiscal year ended August 31,1998.

Dr. H. S. Pennypacker, Jr., President of the Company, and Dr. Mark Goldstein
received partial compensation associated with their activities on the research
grant during the 2001 fiscal year. In addition,$61,797 was accrued in salary for
Dr. Pennypacker and $55,984 was accrued for Dr. Goldstein. Mary Sellers receives
a salary of $37,500.00 per year.


     All directors receive reimbursement of expenses but no fees for serving as
directors.


Item 12. Security Ownership of Certain Beneficial Owners and Management
-----------------------------------------------------------------------

     The following table sets forth, as of Nov. 30, 1998, the number of shares
of common stock owned both of record and beneficially by (I) all persons owning
five percent or more of the outstanding common stock of the Company; (ii) all
directors, and (iii) all officers and directors as a group:

                                  Shares of           Percentage of
                                 Stock Owned        Outstanding Shares
----------------------------------------------------------------------

Mark Kane Goldstein, Ph.D. (2)    26,516,000              26.4%
930 N.W. 8th Avenue
Gainesville, Florida 32601

H. S. Pennypacker, Ph.D.          25,800,000              25.7%
930 N.W. 8th Avenue (1)(2)
Gainesville, Florida 32601

Mary Bailey Sellers                  400,000               4.0%
930 N.W. 8th Avenue
Gainesville, Florida 32601

All Officers and Directors
as a group (1)(2)

------------------------------

(1) All shares owned by Dr. Pennypacker are owned by himself and his wife as to
which Dr. Pennypacker has shared investment and voting power.

                                                                              36

<PAGE>


Item 13. Certain Relationships and Related Transactions
-------------------------------------------------------

     On February 9, 1989, Mark Kane Goldstein, an Officer and Director of the
Company, filed Patent Application Serial No. 308,914 seeking protection for a
new breast model that represents a significant variation on the Company's
patented models. The new breast model is an integral part of the Company's new
MammaCare Personal Learning System. The Company has entered into a licensing
agreement with Dr. Goldstein whereby the Company enjoys exclusive and
unrestricted use of the invention in exchange for payment of costs associated
with preparation and filing of the patent documents together with whatever
foreign patent protection the Company, in consultation with Dr. Goldstein, may
seek.

                                                                              37

<PAGE>


                                     PART V

Item 14. Exhibits, Financial Statements, Schedules, and Reports on Form 8-K
---------------------------------------------------------------------------

(a)  The following documents are filed as part of this Report on Form 10-K.

Financial Statements                          Pages 17 to 24


(b)  Reports on Form 8-K: No reports on Form 8-K were filed during the last
quarter of the fiscal year ended August 31, 2001.

(c)  Exhibit Index: None

3    Articles of Incorporation*

3.1  Articles of Amendment to Articles of Incorporation*

3.2  By-Laws*

3.3  Amendments to By-Laws*

4    Warrants*

10.1 Patent Assignment Agreements*

10.2 H. S. Pennypacker Assignment*

10.3 Mark Kane Goldstein Assignment*

                    ----------------------------------------


*Contained in the Company's registration statement of Form S-18 filed in October
27, 1982.

**Contained in Amendment No. 1 to the Company's registration statement on Form
S-18 filed on November 13, 1982.

***Contained in Amendment No. 3 to the Company's registration statement on Form
S-18 filed on November 9, 1982.

                                                                              38

<PAGE>


                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Company has duly caused this Report to be signed on its behalf
by the undersigned, thereunto duly authorized.

                                            MAMMATECH CORPORATION


                                            By:  /s/  H. S. Pennypacker
                                               --------------------------------
                                                      H. S. Pennypacker,
                                                      President

Date: November 29, 2001





Pursuant to the requirements of the Securities Exchange Act of 1934, this Report
has been signed below by the following persons on behalf of the Company and in
the Capacities and on the dates indicated.


Signature
---------
Position or Office                                        Date
------------------                                        ----

/s/  Mark Kane Goldstein                                  November 29, 2001
----------------------------------
     Mark Kane Goldstein
     Chairman of the Board


/s/  H. S. Pennypacker                                    November 29, 2001
----------------------------------
     H. S. Pennypacker
     President and Director



/s/  Mary Bailey Sellers                                  November 29, 2001
----------------------------------
     Mary Bailey Sellers
     Treasurer

                                                                              39