UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                   FORM 10-QSB

[X]  Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

         For the quarterly period ended March 31, 2000

[ ]  Transition Report pursuant to 13 or 15(d) of the Securities  Exchange Act
     of 1934

         For the transition period from              to
                                        -------------

Commission File Number 33-55254-03

                            DYNAMIC ASSOCIATES, INC.

        (Exact name of Small Business Issuer as specified in its charter)


         Nevada                                  87-0473323
-----------------------------------         -------------------
(State or other jurisdiction of             (IRS Employer
         incorporation )                     Identification No.)

6617 North Scottsdale Road, Suite 103
Scottsdale, Arizona                                               85253
--------------------------------------------                  --------------
(Address of principal executive offices                          (Zip Code)

Issuer's telephone number, including area code (480) 315-8600

Indicate by a check mark  whether the issuer (1) has filed all reports  required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the issuer was required
to file such reports),  and (2) has been subject to such filing requirements for
the past 90 days [X] Yes [ ] No

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

                                                 Outstanding as of
             Class                                 March 31, 2000
------------------------------------         -----------------------
$.001 par value Class A Common Stock              18,386,429 shares


                                       1

<PAGE>



                         PART 1 - FINANCIAL INFORMATION

Item 1.                    Financial Statements

BASIS OF PRESENTATION

General
The accompanying unaudited financial statements have been prepared in accordance
with  the  instructions  to Form  10-QSB  and,  therefore,  do not  include  all
information  and footnotes  necessary for a complete  presentation  of financial
position,  results of  operations,  cash  flows,  and  stockholders'  deficit in
conformity  with generally  accepted  accounting  principles.  In the opinion of
management,  all adjustments considered necessary for a fair presentation of the
results of  operations  and  financial  position have been included and all such
adjustments are of a normal recurring  nature.  Operating  results for the three
months ended March 31, 2000 are not  necessarily  indicative of the results that
can be expected for the year ending December 31, 2000.

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

The Company is engaged in managing the operation of psychiatric/geriatric  units
for   various   hospitals   through   Perspectives   Health   Management   Corp.
("Perspectives"), a wholly owned subsidiary.

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2000, the Company had $168,765 in cash and cash equivalents. The
Company incurred an ordinary loss of $.00 per share.

Perspectives,  a Nevada corporation,  is a 100% owned subsidiary of the Company.
It provides elderly healthcare and gero-psychology  services to small healthcare
facilities unable to provide these services in house. The Perspectives treatment
program  conforms  to the  guidelines  of the  JCAHO  Accreditation  Manual  for
Hospitals and Medical  Standards.  The program is reimbursed at cost by Medicare
when  established as a distinct part unit of a hospital  which  qualifies for an
exemption from the Medicare Prospective Payment System("PPS"). The PPS exemption
provides  for a cost plus  reimbursement  system for the unit,  which allows the
hospital to receive full reimbursement of the direct operating expenses, plus an
allocation  to the  unit of a  substantial  portion  of the  hospital's  overall
overhead and capital costs.

RESULTS OF OPERATIONS

The  2000  financial  statements  present  the  activities  of the  Company  and
Perspectives.  The 1999  financial  statements  present  the  activities  of the
Company and Genesis & GCCA which became Perspectives.

During the three months ended March 31, 2000,  no  management  fees were paid or
accrued  compared  to $95,958  for the same period in 1999.  The  officers  have
agreed to waive compensation due to the Company's lack of cash.

Net ordinary loss for the three months ended March 31, 2000 was $24,045 compared
to a loss of  $1,811,553  for the same period in 1999.  The net loss is $.00 per
share for the quarter.  Net loss for the period is largely due to bad debts that
were  recorded  related  to  expected  necessary  write-offs  of  some  accounts
receivable.

Management  fee income was  $1,692,199 for the three months ended March 31, 2000
compared to $2,484,166 for the same period in 1999.  This is a 32% decrease from
1999. The main reasons for the decline are 4 fewer  contracts than in 1999 and a
reduction in fees required because the hospitals have been


                                       2
<PAGE>



unable to pay some of the higher contracted  amounts due to Medicare  reductions
in the amounts the hospitals receive.

General and  administrative  expenses  for the three months ended March 31, 2000
were $1,418,123 compared to $1,854,082 for the same period in 1999.

Depreciation and amortization expenses for the three months ended March 31, 2000
were $3,786 and $0  respectively  compared to $15,028 and  $636,320 for the same
period in 1999. In 1999, the Company  adjusted the carrying value of goodwill to
the amount it expects to receive from the sale of Perspectives  and is no longer
amortizing goodwill on a quarterly basis.

Interest expense for the three months ended March 31, 2000 was $194,335 compared
to  $291,052  for the same period in 1999.  Interest  expense is incurred to the
Convertible  Note  Holders of the  Company.  During the quarter  ended March 31,
1999, the Company was able to lower the interest rate from 10.0% to 7.5% on most
of its debt.  The Company is delinquent on most of its interest  payments due in
2000 (about $354,000).

During the quarter ended March 31, 1999, the Company  recorded an  extraordinary
gain in the amount of $7,955,381 from  restructuring its convertible  notes. The
extraordinary  gain represented income of $.49 per share. The gain had no income
tax consequences.

Impact of the Year 2000 Issue
The "Year 2000 Problem" arose because many existing  computer  programs use only
the last two digits to refer to a year.  Therefore,  these computer  programs do
not  properly  recognize a year that begins  with "20"  instead of the  familiar
"19".  If not  corrected,  many  computer  applications  could  fail  or  create
erroneous  results.  The extent of the potential impact of the Year 2000 Problem
is not yet  known,  and if not  timely  corrected,  it could  affect  the global
economy.  The Company did not  experience  any Y2K  problems and does not expect
problems in the future.

Forward Looking Statements
The  information  contained in this section and elsewhere may at times represent
management's  best estimates of the Company's future financial and technological
performance, based upon assumptions believed to be reasonable.  Management makes
no  representation or warranty,  however,  as to the accuracy or completeness of
any of these  assumptions,  and nothing  contained  in this  document  should be
relied  upon as a promise  or  representation  as to any future  performance  or
events. The Company's ability to accomplish these objectives, and whether or not
it will be financially  successful is dependent upon numerous  factors,  each of
which  could  have a  material  effect on the  results  obtained.  Some of these
factors  are within the  discretion  and  control of  management  and others are
beyond management's control. Management considers the assumptions and hypothesis
used in preparing any forward-looking  assessments of profitability contained in
this document to be  reasonable;  however,  we cannot assure  investors that any
projections  or  assessments  contained in this  document,  or otherwise made by
management, will be realized or achieved at any level.


ITEM 1.           LEGAL PROCEEDINGS

Not applicable.

ITEM 2.           CHANGES IN SECURITIES AND USE OF PROCEEDS

Not applicable.


                                       3

<PAGE>



ITEM 3.           DEFAULT UPON SENIOR SECURITIES

Not applicable.

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

Not applicable.

                           PART II - OTHER INFORMATION

Item 5.           Other Information

Genesis Health  Management  Corporation  (Genesis) (now part of Perspectives) In
December 1996, the Company  purchased  100% of the  outstanding  common stock of
Genesis for $25,373,000.  Of the purchase price, $15,050,000 was paid in cash or
notes and accounts payable and $10,323,000 was paid by issuing  3,100,000 shares
of the  Common  Stock of the  Company  at a value of $3.33 per  share.  The note
issued in connection  with the  acquisition of Genesis was paid in full on March
3, 1997.  Genesis  had been  operating  in  Louisiana  for 3 years  prior to the
purchase by the Company.  Genesis is in the  business of managing and  operating
psychiatric/geriatric   units  in  various   hospitals   (both   in-patient  and
out-patient). At March 31, 2000, the former Genesis had 18 contracted units. The
former  Genesis  has  contracts  with  hospitals  in the  states  of  Louisiana,
Arkansas, Mississippi and Tennessee.

Geriatric Care Centers of America, Inc. (GCCA) (now part of Perspectives)
On  March  13,  1997,  Geriatric  Care  Centers  of  America  ("Geriatric"),   a
corporation  organized  pursuant to the laws of the state of  Tennessee,  merged
with Geriatric Care Centers  Acquisition  Corporation,  for $500,000 in cash and
150,000  shares of Common Stock of the  Company.  The former GCCA is also in the
business of managing and operating  psychiatric/geriatric units in hospitals. At
March 31, 2000, the former GCCA had 3 operating units.

Item 6.           Exhibits and Reports on Form 8-K.

         (a)      Exhibits
                  99-1 Financial Statements as of March 31, 2000
                  27 Financial Data Schedule

         (b)      Reports on Form 8-K
                  None

                                   SIGNATURES

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

                                           DYNAMIC ASSOCIATES, INC.


DATED:  May 18, 2000                       By:
                                           Grace Sim, Secretary/Treasurer

                                       4

<PAGE>



                    DYNAMIC ASSOCIATES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                                    March 31,        December 31,
                                                                                      2000               1999
                                                                                   (Unaudited)         (Audited)
                                                                                -----------------  ------------------
ASSETS
   CURRENT ASSETS
<S>                                                                             <C>                <C>
       Cash and cash equivalents                                                $         168,765  $          181,826
       Accounts receivable (less allowance for doubtful accounts of
          $1,033,909 in 2000 and $933,909 in 1999                                       2,374,601           2,065,028
       Other receivables                                                                   67,789              70,589
       Prepaid expense and other current assets                                            67,949               1,600
                                                                                -----------------  ------------------

                                                           TOTAL CURRENT ASSETS         2,679,104           2,319,043

   PROPERTY, PLANT & EQUIPMENT                                                             98,855              89,016

   OTHER ASSETS
       Deferred debt issue costs (less amortization of $344,084)                          533,113             560,765
       Goodwill (less amortization of $24,857,775)                                      1,590,000           1,590,000
                                                                                -----------------  ------------------
                                                                                        2,123,113           2,150,765
                                                                                -----------------  ------------------

                                                                                $       4,901,072  $        4,558,824
                                                                                =================  ==================

LIABILITIES & (DEFICIT)
   CURRENT LIABILITIES
       Accounts payable                                                         $         113,908  $           63,363
       Accrued expenses                                                                   752,261             636,179
       Current portion of long-term debt                                                   45,966               4,349
       Accrued interest payable                                                           516,685             366,305
                                                                                -----------------  ------------------
                                                      TOTAL CURRENT LIABILITIES         1,428,820           1,070,196

   Long-term debt                                                                          13,526               5,857
   Convertible notes                                                                    8,676,500           8,676,500
                                                                                -----------------  ------------------
                                                                                        8,690,026           8,682,357
                                                                                -----------------  ------------------
                                                              TOTAL LIABILITIES        10,118,846           9,752,553

   STOCKHOLDERS' (DEFICIT)
       Common Stock $.001 par value:
          Authorized - 25,000,000 shares
          Issued and outstanding 18,386,429 shares                                         18,386              18,386
       Additional paid-in capital                                                      19,146,474          19,146,474
       Retained deficit                                                               (24,382,634)        (24,358,589)
                                                                                -----------------  ------------------
                                                  TOTAL STOCKHOLDERS' (DEFICIT)        (5,217,774)         (5,193,729)
                                                                                -----------------  ------------------

                                                                                $       4,901,072  $        4,558,824
                                                                                =================  ==================
</TABLE>



                                      F - 1

<PAGE>



                    DYNAMIC ASSOCIATES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                Three Months Ended March 31,
                                                                                  2000                1999
                                                                           ------------------  -----------------
<S>                                                                        <C>                 <C>
Management fees                                                            $        1,692,199  $       2,484,166
                                                                           ------------------  -----------------
                                                                                    1,692,199          2,484,166

General & administrative expenses                                                   1,418,123          1,854,082
Depreciation                                                                            3,786             15,028
Amortization of goodwill                                                                    0            636,320
Bad debts                                                                             100,000          1,186,637
                                                                           ------------------  -----------------
                                                                                    1,521,909          3,692,067
                                                                           ------------------  -----------------

                                            NET OPERATING INCOME (LOSS)               170,290         (1,207,901)

OTHER INCOME (EXPENSE)
     Interest expense                                                                (194,335)          (291,052)
     Unrealized (decrease) in investment                                                    0             (9,000)
                                                                           ------------------  -----------------
                                                                                     (194,335)          (300,052)
                                                                           ------------------  -----------------

                                         NET (LOSS) BEFORE INCOME TAXES               (24,045)        (1,507,953)

INCOME TAX EXPENSE                                                                          0            303,600
                                                                           ------------------  -----------------

                                                      NET (LOSS) BEFORE
                                                     EXTRAORDINARY ITEM               (24,045)        (1,811,553)

Extraordinary item - Gain on restructuring of debt (no
     applicable income taxes)                                                               0          7,955,831
                                                                           ------------------  -----------------

                                                      NET INCOME (LOSS)    $          (24,045) $       6,144,278
                                                                           ==================  =================

Net income (loss) per weighted average share:
     Operations                                                            $             (.00) $            (.11)
     Extraordinary item                                                                   .00                .49
                                                                           ------------------  -----------------

                                                      NET INCOME (LOSS)    $             (.00) $             .38
                                                                           ==================  =================

Weighted average number of common shares used to compute
     net (loss) per weighted average share                                         18,386,429         16,305,179
                                                                           ==================  =================
</TABLE>


                                      F - 2

<PAGE>



                    DYNAMIC ASSOCIATES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                Three months ended March 31,
                                                                                  2000                1999
                                                                           ------------------  -----------------
OPERATING ACTIVITIES
<S>                                                                        <C>                 <C>
   Net income (loss)                                                       $          (24,045) $       6,144,278
   Adjustments to reconcile net income (loss) to cash provided
     (used) by operating activities:
       Depreciation and amortization                                                   31,438            695,191
       Non-cash debt restructuring                                                          0         (7,955,831)
       Bad debts                                                                      100,000          1,186,637
       Unrealized change in investment                                                      0              9,000
       Deferred taxes                                                                       0            300,000
   Changes in assets and liabilities:
       Accounts receivable                                                           (406,773)          (746,435)
       Prepaid expenses and other                                                      18,383            (16,425)
       Accounts payable and accrued expenses                                          317,007            167,067
                                                                           ------------------  -----------------

                                             NET CASH PROVIDED (USED)
                                              BY OPERATING ACTIVITIES                  36,010           (216,518)

FINANCING ACTIVITIES
   Cash from (to) subsidiaries / LLC                                                        0           (220,522)
   Principal payments on debt                                                         (49,071)              (962)
                                                                           ------------------  -----------------

                                                   NET CASH (USED) BY
                                                 FINANCING ACTIVITIES                 (49,071)          (221,484)
                                                                           ------------------  -----------------

                                DECREASE IN CASH AND CASH EQUIVALENTS                 (13,061)          (438,002)

Cash and cash equivalents at beginning of period                                      181,826            478,418
                                                                           ------------------  -----------------

                           CASH AND CASH EQUIVALENTS AT END OF PERIOD      $          168,765  $          40,416
                                                                           ==================  =================

SUPPLEMENTAL INFORMATION
   Cash paid for interest                                                  $           16,303  $          18,029
   Cash paid for income taxes                                                               0                  0
</TABLE>


During  2000,  the  Company  purchased  a vehicle  in the  amount of  $13,625 by
incurring a loan in the same amount.

During 1999, the Company issued 4,162,500 shares of its restricted  common stock
and 8,325,000  warrants to purchase  stock at $1.50 per share until December 31,
2000 to retire debt of $8,325,000 and accrued interest of $912,881.

                                      F - 3

<PAGE>



                    DYNAMIC ASSOCIATES, INC. AND SUBSIDIARIES
                SELECTED NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 1:         EXPECTED SALE OF SUBSIDIARIES

                In  late  1999,   the  Company   began   negotiations   to  sell
                Perspectives.  The Company merged  Perspectives with Genesis and
                GCCA with Perspectives  being the surviving entity.  The Company
                is  finalizing  negotiations  whereby it will sell  Perspectives
                under a contract  bearing  interest at 8% per year. The contract
                calls for sixty  monthly  payments of $20,000 and then a balloon
                payment of $900,000.  The contract has a present  value of about
                $1,590,000.  The Company is also  finalizing  an agreement  with
                shareholders  who are owed $8,325,000 in convertible  notes. The
                shareholders have tentatively agreed to accept the assignment of
                the above  contract  to reduce the  $8,325,000  owed to them and
                then to  convert  the  remaining  debt of  $6,225,000  into  the
                Company's common stock at the rate of $.15 per share. This would
                result in 41,500,000  new shares of the  Company's  common stock
                being issued,  and the shareholders as a group would have voting
                control of the Company.

NOTE 2:         SEGMENT INFORMATION

                Pre-consolidation net income (loss) is as follows:

                           Dynamic                            $      (197,378)
                           Perspectives                               173,333
                                                              ---------------

                                                              $       (24,045)
                                                              ===============


                                      F - 4