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 June 30, 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 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                                      June 30, 2000
------------------------------------         -----------------------------------
$.001 par value Class A Common Stock                  18,386,429 shares




<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 June 30, 2000 are not  necessarily  indicative  of the results that
can be expected for the year ending December 31, 2000.

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.



                                       2

<PAGE>



                    DYNAMIC ASSOCIATES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                                                 June 30,          December 31,
                                                                                                   2000                1999
                                                                                                (Unaudited)          (Audited)
                                                                                             -----------------  ------------------
ASSETS
         CURRENT ASSETS
<S>                                                                                          <C>                <C>
              Cash and cash equivalents                                                      $         715,258  $          181,826
              Accounts receivable (less allowance for doubtful accounts of
                $1,157,472 in 2000 and $933,909 in 1999)                                             1,887,880           2,065,028
              Other receivables                                                                              0              70,589
              Prepaid expense and other current assets                                                 101,118               1,600
                                                                                             -----------------  ------------------

                                                                      TOTAL CURRENT ASSETS           2,704,256           2,319,043

         PROPERTY, PLANT & EQUIPMENT                                                                    93,176              89,016

         OTHER ASSETS
              Deferred debt issue costs (less amortization of $371,736 in 2000
                and $316,432 in 1999)                                                                  505,461             560,765
              Goodwill                                                                               1,590,000           1,590,000
                                                                                             -----------------  ------------------
                                                                                                     2,095,461           2,150,765
                                                                                             -----------------  ------------------

                                                                                             $       4,892,893  $        4,558,824
                                                                                             =================  ==================

LIABILITIES & (DEFICIT)
         CURRENT LIABILITIES
              Accounts payable                                                               $         102,882  $           63,363
              Accrued expenses                                                                         635,735             636,179
              Current portion of long-term debt                                                         30,842               4,349
              Accrued interest payable                                                                 681,567             366,305
                                                                                             -----------------  ------------------
                                                                 TOTAL CURRENT LIABILITIES           1,451,026           1,070,196

         Long-term debt                                                                                 11,922               5,857
         Convertible notes                                                                           8,676,500           8,676,500
                                                                                             -----------------  ------------------
                                                                                                     8,688,422           8,682,357
                                                                                             -----------------  ------------------
                                                                         TOTAL LIABILITIES          10,139,448           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                                                                     (24,411,415)        (24,358,589)
                                                                                             -----------------  ------------------
                                                             TOTAL STOCKHOLDERS' (DEFICIT)          (5,246,555)         (5,193,729)
                                                                                             -----------------  ------------------

                                                                                             $       4,892,893  $        4,558,824
                                                                                             =================  ==================
</TABLE>


                                       3


<PAGE>



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




<TABLE>
<CAPTION>
                                                                     Three Months Ended              Six Months Ended
                                                                          June 30,                       June 30,
                                                                     2000           1999           2000            1999
                                                                -------------   -------------  -------------  -------------
<S>                                                             <C>             <C>            <C>            <C>
Management fees                                                 $   1,670,253   $   2,029,246  $   3,362,452  $   4,513,412
                                                                -------------   -------------  -------------  -------------
                                                                    1,670,253       2,029,246      3,362,452      4,513,412

General & administrative expenses                                   1,506,974       1,568,440      2,925,097      3,422,522
Depreciation                                                            5,679          15,026          9,465         30,054
Amortization of goodwill                                                    0         636,320              0      1,272,640
Bad debts                                                              48,000         (12,560)       148,000      1,174,077
                                                                -------------   -------------  -------------  -------------
                                                                    1,560,653       2,207,226      3,082,562      5,899,293
                                                                -------------   -------------  -------------  -------------

                                   NET OPERATING INCOME (LOSS)        109,600        (177,980)       279,890     (1,385,881)

OTHER INCOME (EXPENSE)
     Interest income                                                        0             651              0            651
     Interest expense                                                (138,381)       (192,772)      (332,716)      (483,824)
     Unrealized (decrease) in investment                                    0          (4,000)             0        (13,000)
                                                                -------------   -------------  -------------  -------------
                                                                     (138,381)       (196,121)      (332,716)      (496,173)
                                                                -------------   -------------  -------------  -------------

                                NET (LOSS) BEFORE INCOME TAXES        (28,781)       (374,301)       (52,826)    (1,882,054)

INCOME TAX EXPENSE                                                          0          (1,800)             0        301,800
                                                                -------------   -------------  -------------  -------------

                                             NET (LOSS) BEFORE
                                            EXTRAORDINARY ITEM        (28,781)       (372,301)       (52,826)    (2,183,854)

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

                                             NET INCOME (LOSS)  $     (28,781)  $    (372,301) $     (52,826) $   5,771,977
                                                                =============   =============  =============  =============

Net income (loss) per weighted average share:
     Operations                                                 $         .00   $        (.02) $         .00  $        (.13)
     Extraordinary item                                                   .00             .00            .00            .47
                                                                -------------   -------------  -------------  -------------

                                             NET INCOME (LOSS)  $         .00   $        (.02) $         .00  $         .34
                                                                =============   =============  =============  =============

Weighted average number of common shares
     used to compute net (loss) per weighted
     average share                                                 18,386,429      18,386,429     18,386,429     16,998,929
                                                                =============   =============  =============  =============
</TABLE>


                                        4

<PAGE>



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

<TABLE>
<CAPTION>
                                                                                  Six months ended June 30,
                                                                                  2000                1999
                                                                           ------------------  -----------------
OPERATING ACTIVITIES
<S>                                                                        <C>                 <C>
   Net income (loss)                                                       $          (52,826) $       5,771,977
   Adjustments to reconcile net income (loss) to cash provided
     (used) by operating activities:
       Depreciation and amortization                                                   64,769          1,374,189
       Non-cash debt restructuring                                                          0         (7,955,831)
       Book value of disposed assets                                                        0             66,360
       Bad debts                                                                      148,000          1,174,077
       Unrealized change in investment                                                      0             13,000
       Deferred taxes                                                                       0            300,000
   Changes in assets and liabilities:
       Accounts receivable                                                             99,737         (1,058,296)
       Prepaid expenses and other                                                     (99,518)            66,280
       Accounts payable and accrued expenses                                          439,069              3,019
                                                                           ------------------  -----------------

                                             NET CASH PROVIDED (USED)
                                              BY OPERATING ACTIVITIES                 599,231           (245,225)

INVESTING ACTIVITIES
   Deposits                                                                                 0                410
                                                                           ------------------  -----------------

                                             NET CASH PROVIDED (USED)
                                              BY INVESTING ACTIVITIES                       0                410

FINANCING ACTIVITIES
   Principal payments on debt                                                         (65,799)            (2,277)
                                                                           ------------------  -----------------


                               NET CASH (USED) BY
                                                 FINANCING ACTIVITIES                 (65,799)            (2,277)
                                                                           ------------------  -----------------

                                DECREASE IN CASH AND CASH EQUIVALENTS                 533,432           (247,092)

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

                           CASH AND CASH EQUIVALENTS AT END OF PERIOD      $          715,258  $         231,326
                                                                           ==================  =================

SUPPLEMENTAL INFORMATION
   Cash paid for interest                                                  $            4,417  $         274,431
   Cash paid for income taxes                                                               0             23,931

</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.

                                       5

<PAGE>



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 June 30, 2000, the Company had $715,258 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

During the three  months ended June 30, 2000,  no  management  fees were paid or
accrued  compared to $0 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  June 30,  2000 was  $(28,781)
compared to a loss of  $(372,301)  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  $1,670,253  for the three months ended June 30, 2000
compared to $2,029,246 for the same period in 1999. This is an 18% 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 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 June 30, 2000
were $1,506,974 compared to $1,568,440 for the same period in 1999.

Depreciation and amortization  expenses for the three months ended June 30, 2000
were $5,679 and $0  respectively  compared to $15,026 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 June 30, 2000 was $138,381  compared
to  $192,772  for the same period in 1999.  Interest  expense is incurred to the
Convertible Note Holders of the Company. During the quarter ended June 30, 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 $681,000).

During  the six months  ended June 30,  2000,  no  management  fees were paid or
accrued  compared  to $75,769  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 six months ended June 30, 2000 was $(52,826)  compared
to a loss of $(2,183,854)  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  $3,362,452  for the six months  ended June 30,  2000
compared to $4,513,412 for the same period in 1999.  This is a 25% 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 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 six months ended June 30, 2000 were
$2,925,097 compared to $3,422,522 for the same period in 1999.

Depreciation  and  amortization  expenses for the six months ended June 30, 2000
were $9,465 and $0 respectively  compared to $30,054 and $1,272,640 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.


                                       6

<PAGE>

Interest expense for the six months ended June 30, 2000 was $332,716 compared to
$483,824  for the same  period in 1999.  Interest  expense  is  incurred  to the
Convertible Note Holders of the Company. During the quarter ended June 30, 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 $681,000).

Even  though  the  Company  is in  default,  it has made  arrangements  with the
majority  of its  bondholders  to convert the debt at the rate of $.15 per share
into the Company's  common stock.  The promissory  note described in Item 5 will
also be assigned to the bondholders.

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

                           Dynamic           $      (396,030)
                           Perspectives              343,204
                                             ---------------

                                             $       (52,826)
                                             ===============

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.

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

The Company is in the final stages of entering into an agreement for the sale of
all the assets of its wholly owned  subsidiary,  Perspectives  Health Management
LLC  ("Perspectives"),  to  a  Delaware  limited  liability  company  named  New
Perspectives  Health  Management  Corp. (The  "Purchaser").  As this is the only
active business  operation within the Company and represents the transfer of all
of the combined assets of the Company and it subsidiaries,  this sale will leave
the Company without any active business or assets.

                                       7


<PAGE>



Under this agreement,  Perspectives will sell all of its assets to the Purchaser
in exchange for:

     1.   Twenty  thousand  dollars  and no cents  ($20,000)  U.S.  as the first
          installment  of sixty (60) equal monthly  payments in accordance  with
          the Promissory Note described in paragraph (2) below.

     2.   A  promissory  note in the stated  principal  amount of  $1,737,657.80
          payable  in 60 monthly  installments  of $20,000  each  together  with
          interest  accrued thereon at the simple interest rate of eight percent
          (8%) per  annum.  This  promissory  note will be secured by a security
          interest in the Assets.

     3.   The  Purchaser's  agreement to assume and discharge in a timely manner
          the obligations of Perspectives under all contracts, accounts payable,
          and agreements transferred by Perspectives to the Purchaser.

     4.   In  addition,  Purchaser  has  agreed  that  in the  event  of a Major
          Transaction,  it shall  pay the  entire  amount of the  principle  and
          interest then owing under the promissory note, plus:

          a.   50% of the net proceeds of such Major  Transaction,  if the Major
               Transaction  is entered into or closes on or before  September 1,
               2002; and

          b.   25% of the net proceeds of such Major  Transaction,  if the Major
               Transaction  is entered into or closes  after  September 1, 2002,
               but on or before September 1, 2003.

          A Major Transaction occurs if:

          a.   Purchaser merges or consolidates with another entity;

          b.   Purchaser sells or otherwise  transfers all or substantially  all
               of its assets; or

          c.   More that 50% of the voting  membership  interest of Purchaser is
               transferred  in a  single  transaction  or a  series  of  related
               transactions,   other  than   transfers   to  certain   permitted
               transferees of the members of Purchaser.

               Net proceeds  with respect to a Major  Transaction  equals all of
               the net  consideration to be received by Purchaser or its members
               in such Major Transaction, less any principal and interest paid.

The obligation of the Parties to consummate  this sale is subject to each of the
following conditions:

          a.   All representations  and warranties of Perspectives,  Dynamic and
               the  Purchaser  are true and correct in all material  respects on
               the closing date;

          b.   There  have been no  material  adverse  changes  to the  business
               between the date of the agreement and the closing date;

          c.   No action or  proceeding  before the  Governmental  Authority has
               been  instituted  or  threatened  to  restrain  or  prohibit  the
               transactions contemplated by the agreement.

          d.   The note holders of Dynamic have each approved: (a) the agreement
               and the sale,  and (b) the exchange of the  existing  notes for a
               pro rata share of the promissory note and other consideration.

          e.   Each note holder has executed a representation  letter consenting
               to the sale of the assets and assignment fo the note.

               The sale must be  consummated  within thirty (30) days  following
               the latest of the date(s) of approval of the  transaction  by the
               shareholders of Dynamic and the note holders and the satisfaction
               of each other condition to closing, but no later than the 1st day
               of  September,  2000,  unless both parties  agree in writing on a
               later closing date.

               At the Closing, the Purchaser shall take all actions necessary to
               ensure that any and all liabilities of Perspectives are satisfied
               or paid current so that  Perspectives is not in default under any
               such obligations.

                                       8



<PAGE>



ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K.

         (a)      Exhibits
                  99-1 Financial Statements as of June 30, 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:  August 18, 2000                     By:  /s/ Grace Sim
      ---------------------                    ----------------------------
                                            Grace Sim, Secretary/Treasurer


                                       9