U.S. SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C.   20549                

                               FORM 10-KSB

        Annual report under section 13 or 15(d) of the Securities
    Exchange Act of 1934 for the fiscal year ended December 31, 1996.

Commission file number: 33-26789NY

                               EFTEK CORP.
              (Name of small business issuer in its Charter)

         Nevada                                          93-0996501
(State or other jurisdiction                           (IRS Employer 
    of incorporation)                               Identification Number)

                    408 Bloomfield Drive, Units 1 & 2
                      West Berlin, New Jersey  08091
                 (Address of Principal Executive Offices)
              Registrant's Telephone Number:  (609) 767-2300

Securities to be registered under Section 12(b) of the Act:
Title of Each Class               Name of each exchange on which registered
       None                                          None           
                        
Securities to be registered under Section 12(g) of the Act:     None      
                                      
Check whether the issuer (1) filed all reports required to be  filed by
Section 13 or 15(d) of the Securities Exchange Act during the past 12
months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the
past 90 days.  Yes: X  No: 

Check if there is no disclosure of delinquent filers in response to Item
405 of Regulation S-B contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form,
10-KSB or any amendment to this Form 10-KSB.     X   

State issuer's revenues for its most recent fiscal year:  $207,677

The aggregate market value of the voting stock of the registrant held by
non-affiliates as of March 31, 1997 was approximately $4,444,557 based on
the average high and low bid prices for such common stock as reported on
the O-T-C Bulletin Board.

The number of shares of Common Stock outstanding as of March 31, 1997 was
29,004,311.  The number of Class A Redeemable Common Stock Purchase
Warrants outstanding as of March 31, 1997 was 65,412.  The number of Class
B Redeemable Common Stock Purchase Warrants outstanding as of March 31,
1997 was 82,824.

Documents Incorporated by Reference - Various exhibits from the Company's
Post-Effective Amendment No. 1 to Form S-18 Registration Statement, Sec.
File No. 33-26789NY filed June 1, 1989 and such other documents contained
in Item 13(a)(iii).

Transitional Small Business Disclosure Format (Check One): Yes      No  X
                                                                ---    ---
<PAGE>
                                 PART I.

ITEM 1.  DESCRIPTION OF BUSINESS

BUSINESS DEVELOPMENT

The Company was incorporated in the State of Nevada on December 30, 1988.

The Company became a Public Company by filing and registering with the
Securities and Exchange Commission under Form S-18, certain Units
consisting of four shares of common stock and forty Class A and forty Class
B redeemable common stock purchase warrants.  Its Registration Statement
became effective on June 1, 1989.  A total of 32,000 Units were sold at the
offering price of $5.50 per Unit for gross total proceeds of $176,000.  The
net total proceeds after deducting the various costs of the offering was
$121,369.

On January 5, 1990, Savoy Capital Group, Ltd. acquired all of the
outstanding common stock of Exotic Bodies, Inc., a Pennsylvania
Corporation, which became a wholly owned subsidiary of Savoy Capital Group,
Ltd. in exchange for 15,857,600 shares of the Company's Common Stock. 
Pursuant to said Agreement, Savoy Capital Group, Ltd. amended its
Certificate of Incorporation to change its name to Exotic Bodies, Inc., and
the wholly owned subsidiary changed its name to Exotic Bodies of
Pennsylvania, Inc.

The Company operating under the name Exotic Bodies, Inc., endeavored to
begin operations of automobile theme museums and entertainment complexes
featuring the display of exotic, European automobiles and associated exotic
car products and services.  The Company's attempt to setup and operate such
exotic automobile theme museums was unsuccessful and the Company
essentially ceased such operations in mid-1992 and began to search for a
suitable acquisition candidate.  

On July 25, 1994, the Company completed the acquisition of R & D
Innovators, Inc., a New Jersey corporation, engaging in the development,
manufacturing and sales of equipment for the bottling and packaging
industry.  As part of such acquisition, the Company divested itself of the
assets relating to the business of exotic automobiles including all of the
logos and trade names in consideration for the cancellation by Bruce Selig,
the former Chairman of the Board of the Company, of all of his outstanding
loans to the Company.  Furthermore, simultaneously with the Closing on July
25, 1994, prior management was replaced by the management of R & D
Innovators, Inc.  

Effective, August 15, 1994, the Company amended its Certificate of
Incorporation to change its name to EFTEK Corp., and on August 22, 1994 the
Company effected a 1 for 17 reverse stock split.

BUSINESS OF ISSUER AFTER THE ACQUISITION OF R & D INNOVATORS, INC.

On July 25, 1994, the Company completed the acquisition of R & D
Innovators, Inc., a New Jersey corporation, organized in July 1990, to
engage in the development, manufacturing and sales of equipment for the
bottling and packaging industry.

R & D Innovators, Inc. developed and attempted to market a device called
the Water Ballaster/Rinser System ("Ballaster").  The Ballaster addresses
a problem encountered by various companies that fill polyethylene
terephthalate (PET) plastic bottles, namely that this variety of container
used typically for Coca-Cola, Pepsi and other soft drinks is top-heavy and
thus tends to tip over prior to filling.  The result is that these bottles
can not be run through filling or bottling lines at anywhere near the speed
and efficiency normally associated with glass or Base-Cup (more costly and
environmentally unsound) equipped plastic bottles.  Existing bottling lines
are set up to accommodate only glass bottles with tabletop conveyors which
deliver the bottles to the filler.  The introduction of PET bottles onto
the existing tabletop conveyor lines designed for glass bottles has created
inefficiency and has delayed the speed of the bottling lines by failing to
deliver bottles to the filler as quickly as glass bottles.  The filler
speeds vary and are not being utilized to their full capacity thereby
producing fewer bottles (cases) per minute.

Until early 1995, the Company experienced difficulties in attempting to
market the Ballaster.  Accordingly, the Company made the decision not to
further divert the Company's resources to pursue this marketing in the near
future.  Essentially, all efforts in this regard were suspended in order to
further concentrate the Company's efforts on its new core business.  The
Company intends to license its patents and technologies to other companies
who have more resources and contacts in the industry to further market the
Ballaster.

In 1994 and 1995, the Company became interested in the colorization of
amorphous mixed cullet (broken glass) from recycled glass containers of
green, amber and flint (clear color) bottles that are recycled and
collected by trash haulers.  The Company entered into a Purchase Agreement
with International Cullet Exchange, Inc. which applied for a patent
concerning colorizing of 3-MIX cullet to result in a single color to be
utilized by the glass container industry.  The Closing of the acquisition
has not occurred to date, as it was determined that there was great
resistance to utilization of mixed cullet irrespective of color unless it
was free of contaminants.  Therefore, the Company believed that it had an
opportunity to form a new core business of processing 3-MIX cullet to meet
the qualifications of the glass bottling and fiberglass industries.  The
following sections describe the Company's proposed new core business and
plan of operation for the next year period.

THE IMPORTANCE OF 3-MIX GLASS CULLET RECYCLING

Today recycling is at an all time high due to its economic attractiveness
and the ever growing environmental conscious society.  One of the major
materials recycled in the United States is glass.  When glass is recycled,
it is usually color separated at trash sorting facilities and by haulers
into green, amber and flint.  This process, however, is not perfect.  Due
to the inherent fragile characteristics of this material and the handling
procedures during the entire recycling process, approximately 50% of all
recyclable glass breaks, becomes amorphous 3-MIX cullet (broken glass),
unsuitable for cost-effective color separation, and ends up in landfills
or, at best, goes in limited quantities to asphalt production and road
construction.

At the same time, single color cullet is a very valuable raw material for
fiberglass and container glass manufacturing.  It has a lower viscosity
than other glassmaking materials (sand, etc.) and liquefies at a lower
Fahrenheit than for the virgin batch.  As a result, not only the melting
process speeds up and the wear of the furnace refracting bricks lessens
(leading to its longer production life) but, most importantly, substantial
savings of natural gas, the principal fuel for glass furnaces, is achieved. 
A Federal Department of Energy study claims that every 10% increment of
recycled glass in a batch reduces energy demand by 2%-3%.  The US Glass
Packaging Institute estimated that in a standard size furnace for every 10%
increase in cullet, the annual consumption of gas is reduced by about 24.5
million cubic feet.  Also, cullet use in glass production is more
environmentally sound, since it reduces the use of landfills and lowers
furnace air emissions.  Landfill space availability, especially in
Metropolitan areas, is becoming more scarce.  Incinerator disposal of waste
materials is growing.  Some waste materials such as presently unusable
glass cannot be disposed of by incineration, but are disposed of in
landfills.  Unusable scrap glass, referred to as cullet, can be recycled if
the contaminants can be removed.  Manufacturers of fiberglass and glass
containers do use clean cullet, even in relatively small amounts of
different colors of commingled glass.  The U.S. Fiberglass Market for
cullet is several hundred thousand tons annually.  As technologies advance
the use of commingled (3-MIX) cullet, their usage can equal the bottle
glass usage.

CONTAMINANT DETECTION AND EXTRACTION

With all the attractiveness of 3-MIX from the economic and environmental
standpoints, this material has not been used very much by the fiberglass
industry.  The major reason is the approximate 10% of contaminants
contained in an average 3-MIX batch.  The fiberglass industry limits the 3-MIX
contaminant content and imposes other requirements for the cullet it
uses.  While there have been developed ways to automatically remove paper,
plastics and metals, ceramics and other solid contaminants, both
transparent and opaque still are a major problem, precluding the large-scale
use of 3-MIX in fiberglass production.  Melting temperature varies
from a minimum of 400 degrees higher than that of a virgin batch and, as a
result, unmelted ceramic seeds and stones block (and often damage)
fiberglass extrudes and disrupt the whole manufacturing process.  So far,
ceramics have been removed from 3-MIX for the most part manually.  This
method is not only unreasonably expensive, but highly inefficient as well. 
While non-transparent ceramic pieces (still only the larger ones) can be
removed this way, fragments of Pyrex, which looks very similar to glass, go
undetected and cause an unacceptably high level of 3-MIX contamination.  

EFTEK's wholly owned subsidiary, C.F.C., Inc., is developing and has
applied for a patent for an automatic Contaminant Detector and Ejector. 
Although there is no assurance that this system will work efficiently in
production, the Company believes that this system will expose a layer of 3-MIX,
fed onto a conveyor belt, to a special electromagnetic treatment and
then scan the activated cullet.  The computerized scanner is being designed
to electronically divide the scanned area of the 3 feet wide conveyor belt
into sectors and identify those which contain ceramic and other contaminant
pieces.  With the help of proprietary software, the scanner will be
coordinated with the contaminant ejection unit, which is activated in the
"kick-out area" at the right time to discard the contaminated sector of the
conveyor.  With a projected high level of efficiency and limited waste,
C.F.C.'s Contaminant Detector when combined with the use of existing
technology could more effectively solve the problem of contaminant
contamination of 3-MIX cullet and open the possibility for more use of this
material in fiberglass (as well as container glass) production.

EFTEK'S RECYCLING PLANT

The Company has determined that if it can process mixed cullet to remove
organics, paper, plastic, ceramics, metals and other contaminants
(resulting in an end product that the Company names "Premium Cullet") so
that this Premium Cullet meets qualifications and specifications from the
U.S. Fiberglass and Glass Bottlers industries, of which there is no
assurance, there can be a substantial market of over one million tons
annually.

In order to penetrate this market, the Company proposes to develop and
operate, either for its own use or by joint-ventures, various recycling
plants throughout the U.S.  To establish proof of operation, acceptance of
market, and economic viability, the Company purchased in June of 1996
approximately 137 acres of land in South New Jersey containing a 1200 feet
long by 65 feet wide preformed concrete building large enough to house two
production lines as well as storage of raw unprocessed 3-MIX cullet, as
well as the processed Premium Cullet.  Plans are to operate up to two
shifts of production 7.5 hours per shift.  Total employment with two shifts
of operation is expected to be 17 people.  The projected schedule for start
up of one shift is late May 1997.

INCOME FROM RAW MATERIAL ACCEPTANCE

What the Company believes is unique to the recycling industry, various
waste removers, haulers and other recycling companies have to pay landfills
or other environmentally acceptable depositories tipping fees for the
disposal of unusable mixed cullet, which can range from $20 to $50 per ton
on the average, depending upon location and availability in the U.S.

EFTEK; As an anticipated processor of mixed cullet began receiving
deliveries from various recyclers within a 150 mile range.  Tipping fees
averaged $6.00 per ton net, depending on volume, delivered to the Company's
processing plant.  The Company intends to enter into long term (one and a
half years) supply agreements with recyclers in the area once the
processing plant is fully operational.

As a processor of 3-MIX cullet, the Company is complying with all special
permits required and other regulations from State or Federal agencies.

The acceptance of the cullet raw material and the payment to the Company of
tipping fees resulted in immediate cash flow and should be a continuous
source of revenue.

During January 1997, management elected to cease accepting cullet
deliveries due to price discrepancies with suppliers and other reasons.  It
is anticipated that the Company will resume accepting cullet immediately
upon  being "qualified" by certain of its end users at an increased fee
schedule. 

DESCRIPTION OF PLANT OPERATION

EFTEK's program for processing 3-MIX cullet consists of machinery that
removes organics, paper, plastic, ceramics and other contaminants.  The
process begins with receipt of cullet from recyclers.  The first step of
the process is to remove all ferrous (magnetic) metals.  After ferrous
metals are removed, paper, plastics and other organics are removed.  Next,
it is crushed to a size not greater than two inches.  After crushing
non-ferrous metals are removed.  The next step in the process is to wash (and
recycle the water) and then dry the cullet to remove the remaining
organics, plastics and paper.  Following the drying process, non-transparent
contaminants such as opaque ceramics, stones, rocks, etc. are
removed.  The next step of the process is to remove transparent ceramics,
vision ware, pyrex, etc. by EFTEK's patent pending contaminant detector
presently under development.  The final step of the process is to size the
cullet to customer specifications.  The finished product will be loaded in
trucks and rail for delivery to customers.  The removed contaminants should
be a small percentage of the total.  All materials separated from the
cullet will be either sold to an end user, or disposed of in the most
economical acceptable manner.

GOVERNMENT REGULATION

The Company believes that its processing plant will be subject to minor
State or Federal regulations (such as filing for a Class A Recycling
Permit).  The Company, upon acceptance of the raw cullet material, will be
responsible for either its processing or ultimate disposal if it can not be
properly processed.

FUTURE PLANS

Upon successful performance from the first processing plant, subsequent
plants will be considered in locations where cullet supplies are available
and there are customers within a reasonable radius.  

RISKS AND UNCERTAINTIES

Although the Company's proposed plans have a high upside potential,
shareholders are cautioned that there are also substantial risks including,
but not limited to, the following:  1) Requirements for acceptance of the
Company's Premium Cullet by the proposed end users may be too restrictive
to economically satisfy; 2) New more economic technologies may be developed
to satisfy end users' requirements; 3) Raw mixed cullet may become too
scarce affecting availability, or too abundant, reducing tipping fees; 4)
Government regulations may either change or be interpreted differently; 5)
The Company could encounter higher operational costs or delays; 6) or other
unforeseen circumstances could arise to adversely affect the Company's
operations.

FIRE DOCTOR, INC.

In April 1996, the Company acquired 100% of stock of Fire Doctor, Inc.
("Fire Doctor") in exchange for two million shares of restricted common
stock of EFTEK.  The acquisition was handled as a non-taxable
reorganization pursuant to the Internal Revenue Code of 1986, as amended. 
After the reorganization, Fire Doctor became a wholly owned subsidiary of
EFTEK.  As part of the acquisition, the Company loaned $250,000 of its
Private Placement proceeds to Fire Doctor.  Further, the Company agreed
that Fire Doctor would be independent of control of EFTEK unless or until
for the year ending December 31, 1997, Fire Doctor does not achieve a pre-tax
profit of a minimum of $100,000; and a minimum of $500,000 for the year
ending December 31, 1998.  Berkshire International Finance, Inc.
("Berkshire") through its affiliate Sierra Growth & Opportunity Fund, Inc.
who is now, and William N. Levy ("Mr. Levy") who was more than 5% owners of
the stock of the Company, owned 30% and 13%, respectively, of the common
stock of Fire Doctor.  The acquisition was negotiated between various
officers and directors of both entities with Mr. Levy declining to
participate.  The Company and Fire Doctor waived any potential conflict
from Mr. Levy's past dual legal representation of both parties.

Fire Doctor developed and markets a proprietary chemical formula designed
to retard the spread of flame.  Fire Doctor has been in business for
approximately three years of which it devoted to developing a product line
of fire retardant chemicals.  Their main product, Fire Barrier II, has
received "Underwriter's Laboratories Recognition" in their flame reduction
category.  To Fire Doctor's knowledge, this is the only product that has
been recognized by Underwriter's Laboratories in this category.

Fire Doctor has submitted the product for testing to various independent
testing organizations which results have shown that use of the product is
an effective treatment on natural and most synthetic fibers as well as
natural wood.  In addition, the product has been tested and classified as
non-toxic and a non-irritant.  Towards this end, Fire Doctor successfully
sold its product as and "added value" item to Yenkin-Majestic a major paint
manufacturer for inclusion in its line of "kid proof" paint.  

Fire Doctor's current marketing strategy is as follows:

1.   To enter into agreements with key manufacturers to incorporate Fire
Doctor's product into their core offering such as paints, shelf liners,
wicker furniture, etc.
2.   To target distributors in various "after market" industries to market
through service providers to the end user.  These include carpet cleaners
and replacement roof companies.
3.   To target selective broadcast media marketers to incorporate the
product in both infomercial and commercial format.

Fire Doctor utilizes commissioned manufacturers sales representatives to
call on a pre-assigned list of potential customers.

Herbert Siegel was appointed President of Fire Doctor, Inc. in August, 1996
(see Item 9. for biography of Herbert Siegel). 

ITEM 2.  DESCRIPTION OF PROPERTY

The Company has leased approximately 4,500 square feet of office space
located at 408 Bloomfield Drive, Bloomfield Business Park, Units 1 and 2,
Berlin, New Jersey 08009, from a non-affiliate for a period of a remaining
six months for rent of $2,600 per month.  Fire Doctor, Inc. subsidiary is
sharing the leased premises.  


In June 1996, the Company purchased an approximate 137 acre industrial
compound located in Winslow Township, New Jersey, from High Concrete
Structures, Inc., for the total consideration of $650,000.

There are currently seven structures located on the property totaling
148,000 square feet, including an 80,000 square foot industrial plant and
a 8,000 square foot commercial office building.  The Company houses its
proprietary 3-Mix Cullet processing operations in the 80,000 square foot
facility.  

ITEM 3.  LEGAL PROCEEDINGS

As of March 26, 1997, there were no material actions, proceedings or
litigations pending at that time, or to the knowledge of the Company,
threatened, to which the property of the Company was subject, or to which
the Company was a party.

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

The Company's Annual Shareholder's Meeting was held on August 19, 1996, at
which time three matters were submitted to the Company's stockholders for
a vote.  The majority of the stockholders voted for the appointment of
Baratz & Associates, P.A., as the Company's independent auditors for fiscal
year 1996, adoption of the 1996 Stock Incentive Plan (800,000 shares), and
the election of the following Directors: Frank Whitmore, Thomas L. Brandt,
Robert H. Rudman, Oleg Batratchenko and Kevin J. Coffey, Esquire.

                                 PART II

ITEM 5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

The Company's Common Stock is quoted in the Over-The-Counter market on the
OTC Bulletin Board under the trading symbol "EFTK".  The following table
indicates the high and low bid prices of the Common Stock from January 1995
to March 31, 1996 for the quarterly periods ended on the dates set forth 
(reflecting the Company's common stock 1 for 17 reverse stock split in
August, 1994).
<TABLE>
<CAPTION>
  QUARTERLY PERIOD ENDED                 HIGH BID               LOW BID
  <S>                                    <C>                    <C>
  1995
  March 31                               3-3/4                  3
  June 30                                3-3/4                  2-3/4
  September 30                           2-3/4                  2-1/4
  December 31                            2-1/4                  3/4

  1996
  March 31                               1-1/2                  5/8
  June 30                                1-1/16                 3/4
  September 30                           1-1/8                  7/16  
  December 31                            1-1/2                  3/4   

  1997
  March 31                               1-15/32                9/16  
</TABLE>
As of March 31, 1997, the high and low bid quotations for the Company's
Common Stock were 9/16 and 9/16.

No price is currently available for the redeemable warrants which have been
restructured so that each warrant (after the 1 for 17 reverse stock split)
permits the warrant holder to purchase six shares of the Registrant's
common stock at an exercise price of $2.00 per share, with an extended
expiration date for the warrants of December 31, 1997.  As of this date,
Units, which were comprised of the Company's common stock and warrants, are
no longer available or being traded.

There are approximately 252 holders of record of the Company's common
stock, however, the Company believes that its beneficial shareholders are
in excess of 700 in street name in various brokerage accounts.  The Company
has never declared a dividend on its common stock and does not plan to do
so in the near future.  The prices set forth above are not necessarily
indicative of the depth of the trading market of the Company's common
stock.  These over-the-counter market quotations reflect inter-dealer
prices without markups, markdowns, or commissions and may not necessarily
reflect actual transactions.  

ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS 

The Company's primary source of funds and liquiditity to date has been
through the sale of its securities.  The Company also received $202,620 in
tipping fees for the delivery and acceptance of 3 mix cullet (see below). 
Additionally, an option, which was not subsequently exercised, was sold for
the licensing of the ballaster technology.  The Company continues to be
receptive to any offers to license its technologies but is not actively
pursuing this area which would divert resources from its current core
business.

The Company believes there is a substantial and lucrative market for clean,
non-contaminated cullet.  In an effort to tap this market the Company
purchased in June of 1996 a 137 acre industrial compound including an
80,000 square foot industrial building as the site of the first processing
facility.  The property was purchased for $650,000 with an additional
$726,786 of improvements made to date.  There is also additional office and
other building totaling 48,000 square feet as well as land available to
rent to third parties.

In addition to the building improvements, approximately $1,482,157 of
equipment and machinery, labor and supplies were incurred through December
31, 1996 in developing the processing line.  The line is expected to be
completed by May 15,1997.

As a subsequent event, management decided during January 1997 to cease
accepting 3 mix cullet due to price discrepancies with suppliers and other
reasons.  However, it continues to receive and process "flint" glass which
has immediate end use.  It is anticipated that the Company will resume
accepting cullet immediately upon being "qualified" by certain of its end
users at an increased fee schedule.

In April, 1996, the Company acquired, as a diversification hedge, 100% of
the stock of Fire Doctor, Inc.  The wholly owned subsidiary markets and
sells a chemical which substantially retards the spread of flame.  Fire
Doctor has successfully sold its product as an "added value" item to a
major paint manufacturer for inclusion in its line of "kids proof" paint. 
This direction, combined with the obvious consumer use with Christmas
trees, decks, etc. has been the basis for the Company's continued support
despite slow sales performance.

Throughout 1996, management continuously reviewed, revised and addressed
its overhead costs in order to maximize efficiencies during the processing
line construction and development.  These efforts continue in 1997 as the
line becomes operational and future sites are identified and pursued.

As a subsequent event, the Company sold at various points in 1997,
additional shares of its common stock for a consideration of $781,125. 
Although there is no assurance, the Company believes that additional
financing through Private Placement is available and such funds, in
addition to tipping fees and, eventually, the sale of premium cullet to end
users should provide enough financing for the Company for the next year.

ITEM 7.  FINANCIAL STATEMENTS.

The Company's financial statements are presented under Item 13 of this
report.

ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON                 
ACCOUNTING AND FINANCIAL DISCLOSURE

None.                            PART III

ITEM 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
         PERSONS

The following are the Officers and Directors of the Company as of March 26,
1997:

Name                          Age       Position Held with Company
-----                        -----      ----------------------------
Frank Whitmore1               61        President, Chief Executive
                                        Officer, Director
Frank G. Pringle2             52        Vice President R & D, Director
Shawn Pringle                 28        Treasurer and Chief Financial Officer
Kevin J. Coffey, Esq.3        38        Director
Thomas L. Brandt4             42        Director
Herbert Siegel5               46        President of Fire Doctor, Inc.,
                                        Director
Gerard T. Wisla6              39        Secretary, Director
______________________________

1 Appointed January 31, 1996
2 President until January 31, 1996; resigned as Director on June 12, 1996,
and no longer    an officer and employee as of March 31, 1997.
3 Resigned as Secretary on June 12, 1996.
4 Appointed March 13, 1996.
5 Appointed August 2, 1996, as President of Fire Doctor, Inc.(and a Director
until March    19, 1997).
6 Appointed Secretary June 12, 1996 and a Director since March 19, 1997.

FRANK WHITMORE, President, Chief Executive Officer since January 31, 1996
and a Director of the Registrant, a general consultant since 1991, retired
in 1991 from Anchor Glass Container Corporation where he served as a
Corporate Officer and Vice President of Technical Services from 1984 to
1990. From 1983 to 1984 he was President of Midland Glass Company. From
1981 to 1983 Mr. Whitmore was Vice President of Engineering &
Manufacturing. He held various positions with Anchor Hocking Corporation of
Lancaster, Ohio between 1960 and 1981, beginning as a plant engineer, and
advancing to Engineering Manager, Plant Manager, to Vice President of
Operations. Mr. Whitmore received a bachelor of science degree in
Electrical Engineering from Ohio University.

FRANK G. PRINGLE, President and Chairman of the Board of Directors of the
Registrant and its subsidiary until January 31, 1996, and no longer an
employee as of March 31, 1997, has worked in the packaging industry since
1969 being initially employed by R.A. Jones.  From 1971 through 1975, he
was employed by Standard Knapp Packaging Machinery where his last position
was as Regional Sales Manager.  From 1975 to 1979, Mr. Pringle was employed
as Sales Manager for Simplimatic Engineering Corporation.  In 1979, Mr.
Pringle purchased a part interest in Ambec Systems, serving as Vice
President of Marketing and New Machine Development.  At such time, he
helped to developed a patented machine called "10" Conveyor.  In 1981, Mr.
Pringle left Ambec Systems and the packaging field due to a covenant not to
compete and became involved in the ownership of health clubs, which
continued until 1985 when he started Pringle Systems, a company that
installed packaging equipment and manufactured conveyors and other
packaging machinery.  In 1990, Mr. Pringle organized R & D Innovators, Inc.
and has been employed by such company to the present time as well as by
EFTEK Corp., the parent company.  Mr. Pringle holds a number of patents in
the field of engineering.

SHAWN F. PRINGLE, Treasurer and Chief Financial Officer of the Registrant
and its subsidiary, is the son of Frank G. Pringle.  From 1987 to 1991, he
was involved on a part time basis in the fabrication, engineering and
drafting work of Pringle Systems while working for a Bachelor of Science
Degree in biology at the University of South Carolina which he received in
December of 1992.  Thereafter, he joined R & D Innovators, Inc. full time
and has been responsible for certain aspects of corporate operations and
engineering.

KEVIN J. COFFEY, ESQ., Director of the Registrant and its Subsidiary has
been a partner since 1986 in the law firm of Donner, Coffey & Donner, which
engages in multi-state general litigation and general practice, and now is
in private practice by himself.  He received Juris Doctorate Degree from
Delaware Law School in 1985 and a Bachelor of Arts from the University of
Connecticut in 1980.

THOMAS L. BRANDT, a Director of the Registrant and its subsidiary, is the
founder, President and Chief Operating Officer of Brandt Technologies, Inc.
("BTI").  BTI has operated since 1985 as a supplier of precision inspection
equipment and packaging technologies to the glass and plastics container
industries worldwide.  From 1983 to 1985, Mr. Brandt served on the
management team of Emhart/Powers Machinery Group integrating glass
manufacturing systems throughout North America, Europe and the Middle East. 
From 1980 to 1983, he held the position of Site Project Engineer for
Guardian Industries, responsible for the construction of a 186,000 square
foot windshield manufacturing plant.  Between 1975 - 1980, Mr. Brandt held
various positions with Thatcher Glass beginning as Corporate Layout
Engineer and advancing to Assistant Plant Engineer at the Lawrenceburg,
Indiana manufacturing facility.  Mr. Brandt received a two year technical
degree through the State University of New York for Mechanical Design and
holds three (3) U.S. and International patents, jointly holds two (2)
European patents and four (4) patents pending in progress.

HERBERT SIEGEL, President of Fire Doctor, Inc. subsidiary and Director
until February, 1997.  Herbert Siegel is the founder, President and Partner
of Herb Siegel, Inc. ("HSI"), a manufacturers representatives firm which
represents a wide variety of domestic and foreign manufacturers from all
categories of consumer products.  In 1957, Mr. Siegel received an honorable
discharge from the U.S. Army.  Following discharge from the service, Mr.
Siegel became the National Sales Manager of a Philadelphia based
manufacturer of consumer products.  In 1968, Mr. Siegel founded HSI and
subsequently formed Asia Combine, LTD., a manufacturer and Agent/Trading
Company for sourcing and manufacturing importing products from Asia.  

GERALD WISLA, Secretary and Director of the Registrant is a Certified
Public Accountant and a principal partner of Wisla & Cohen Certified Public
Accountants for the last five years.  Mr. Wisla was previously a
shareholder and Director of Quality Control for a large regional accounting
firm.  His experience includes presentations at continuing education
seminars and articles published in various newsletters.  Mr. Wisla is a
graduate of Drexel University.  He is a member of the American and
Pennsylvania Institutes of Certified Public Accountants.  Mr. Wisla is a
past Board member of an alumni association at Drexel University and
currently serves as Treasurer and Chairman of the Finance Committee of a
local non-profit organization.

ITEM 10.  EXECUTIVE COMPENSATION

                          SUMMARY COMPENSATION TABLE
<TABLE>
<CAPTION>
               Annual Compensation                      Long Term Compensation 
                 
                                              Awards                    Payouts

(a)Name and    (b)  (c)    (d)      (e)Other   (f)Restricted (g)Securities   (h)      (i)
Principal                              Annual      Stock       Underlying      LTIP     All Other
Position       Year Salary  Bonus($) Compensation  Awards($) Option/SARs(#) Payouts($) Compensation
-----------    ---- ------  -------- ------------  --------- -------------- ---------- ------------
<S>            <C>  <C>      <C>       <C>            <C>         <C>           <C>          <C>
Frank Whitmore,1996 $ 41,667 0         0              0           0             0            0
President
Frank Pringle, 1996 $102,500 0         0              0           0             0            0 
(Past Pres.)   1995 $ 63,750 0         0              0           0             0            0
               1994 $112,950 0         0              0           0             0            0
</TABLE>
Frank Whitmore, the current President of the Company, agreed to receive
$50,000 annual salary and 500,000 stock options, (200,000 of which are
already vested and an additional 100,000 options to be vested each year
thereafter as long as he is still employed by the Company).  Mr. Whitmore
also received 7,500 stock options for Director compensation for 1995.

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

RECORD AND BENEFICIAL OWNERSHIP OF THE COMPANY'S COMMON STOCK

(A)(B)The following table sets forth certain information with regard to the
record and beneficial ownership of the Company's common stock as of March 31,
1997 by (i) each shareholder owner of record or beneficially 5% or more of
the Company's common stock (ii) each Director individually and (iii) all
Officers and Directors of the Company as a group. All numbers have been
adjusted for the 1 for 17 reverse stock split, which occurred August 22,
1994:
<TABLE>
<CAPTION>
                NAME AND ADDRESS                                 PERCENT
TITLE OF CLASS   OF BENEFICIAL OWNER               SHARES OWNED   OF CLASS
<S>              <C>                                      <S>             <C>
Common           Frank Whitmore                              207,500(1)   .72%
                 Bloomfield Business Park
                 408 Bloomfield Drive, Units  1 & 2
                 West Berlin, New Jersey 08091

Common           Frank G. Pringle                          3,480,176(2)   12.0%
                 8 Tallowood Drive
                 Medford, NJ 08055

Common           Kevin J. Coffey, Esq.                       363,540(3)   1.25%
                 153 Lost Lake
                 Marlton, NJ 08053

Common           Shawn Pringle                               245,168(2)   .85%
                 Bloomfield Business Park
                 408 Bloomfield Drive, Units  1 & 2
                 West Berlin, New Jersey 08091

Common           Thomas L. Brandt                              7,500(4)   .03%
                 Bloomfield Business Park
                 408 Bloomfield Drive, Units  1 & 2
                 West Berlin, New Jersey 08091

Common           Herbert Siegel                               61,666(5)   .21%
                 405 Lakeside Drive
                 South Hampton, PA 18966

Common           Sierra Growth & Opportunity Fund          2,651,000       9.14%
                 551 Fifth Avenue, Suite 605
                 New York, NY 10017

Common           Gerard Wisla                                 13,503(6)    .05%
                 4808 Rainbow Ridge Circle
                 Schwenksville, Pennsylvania 19473

Common           Oleg Batratchenko                            57,500(7)    .20%
                 551 Fifth Avenue, Suite 605
                 New York, NY 10017

Common           Arista Capital Growth Fund Ltd.           1,925,797       6.64%
                 P.O. Box 20043
                 Phase 3, British American Center
                 Georgetown, Grand Cayman
                 Cayman Islands, British West Indies

Common           Veco Capital Growth Fund                  1,889,206       6.51%
                 P.O. Box 20043
                 Phase 3, British American Center
                 Georgetown, Grand Cayman
                 Cayman Islands, British West Indies

Common           Arista High Technology Growth Fund        4,319,747       14.89%
                 P.O. Box 20043
                 Phase 3, British American Center
                 Georgetown, Grand Cayman
                 Cayman Islands, British West Indies

All Officers and Directors as a group (7 in number)          956,377       3.30%
__________________________
1  Includes 200,000 stock options vested and excludes 300,000 stock options
still not vested at the exercise price of $.625 per share and 7,500 stock
options granted to Mr. Whitmore as a member of the Board of Directors in 1995
at the exercise price of $.625 per share.
2 Frank G. Pringle and Shawn Pringle, father and son, each disclaim beneficial
ownership of the shares of Registrant held by the other.
3 Includes 15,000 stock options all of which are vested for compensation for
being a Director in 1995 and 1996 at the rate of 7,500 stock options per
year exercisable at $1.75 and $.875, respectively.  Does not include 7,500
stock options which are not vested for compensation for being a Director for
1997.
4 Includes 7,500 stock options granted to Mr. Brandt as compensation for being
a Director in 1996 which are vested.  Does not include 7,500 stock options
granted to Mr. Brandt as compensation for being a Director in 1997 which are
not vested.
5 Includes 50,000 stock options which are vested at the exercise price of
$1.00.  Does not include 100,000 stock options exercisable at $1.00 which are
not vested.
6 Does not include 7,500 stock options exercisable at $1.25 which are not
vested, granted to Mr. Wisla as a member of the Board of Directors of 1997. 
Included are 12,500 options exercisable at $.62 granted to Mr. Wisla for past
services rendered, all of which are vested.
7 Includes 7,500 stock options exercisable at $.875 which are vested, granted
as compensation for being a Director for the year 1996.  Does not include
7,500 stock options exercisable at $1.25, which are not vested, granted as
compensation for being a Director for the year 1997.

(C)  CHANGE IN CONTROL

None.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

FIRE DOCTOR, INC. for certain transactions concerning William N. Levy and
Berkshire International Finance, Inc. as set forth in Part I, Item 1.

ITEM 13.  EXHIBITS AND REPORTS ON FORM 8-K

(A)  The following documents are filed as a part of this Form 10-KSB at the
page indicated.
                                                        Page Number
(a)(i)  Financial Statements

        Auditor's Report as of April15, 1997...............F1

        Consolidated Balance Sheets - December 31, 1996 and
        1995...............................................F2

        Consolidated Statement of Operations - For the years
        ended December 31, 1996 and 1995...................F3

        Statement of Shareholder's Equity - For the years
        ended December 31, 1996 and 1995...................F4

        Statement of Cash Flows - For the years ended 
        December 31, 1996 and 1995.........................F5

        Consolidated Notes to Financial Statements.........F6-F10

(a)(ii) Consolidated Schedules - None.

All schedules for which provision is made in the applicable accounting
regulation of the Securities and Exchange Commission are not required under
the related instructions or are inapplicable and, therefore, have been
omitted.

(a)(iii) Exhibits
                                                       Sequential
NUMBER   DESCRIPTION                                   Page Number

3(a)     Articles of Incorporation of the Company
         (Savoy Capital Group, Inc.)                            *

3(b)     By-Laws of the Company                                 *

3(c)     Certificate of Incorporation of Exotic Bodies, Inc.    **

3(d)     Amendment of Articles of Incorporation of Savoy
         Capital Group Ltd. changing its name to Exotic Bodies,
         Inc.                                                   **

3(f)     Amendment to Certificate of Incorporation of Exotic
         Bodies, Inc. changing its name to EFTEK Corp.          ***

10(a)    Stock Purchase Agreement of January 5, 1990 between
         the Registrant and Exotic Bodies, Inc.                 **

10(b)    Stock Purchase Agreement dated July 25, 1994 by and
         between the Registrant and R & D Innovators, Inc.      ***

10(c)    Stock Purchase Agreement dated February, 1996 by and
         between the Registrant and the Shareholders of Fire
         Doctor, Inc.                                           ****

10(d)    Purchase Agreement between EFTEK Corp.
         and High Concrete Structures, Inc. dated June 5, 1996. ****

10(e)    1996 Stock Incentive Plan                               18


*    Incorporated by reference from the like-numbered exhibit to Form S-18
Registration Statement, SEC File No. 33-26789-NY Post-Effective Amendment No.
1 filed June 1, 1989.

**   Incorporated by reference from the like-numbered exhibit to Form S-18
Registration Statement, SEC file No. 33-26789-NY Post-Effective Amendment No.
3 filed April 25, 1990.

***  Incorporated by reference from the Exhibit to Form 10-KSB for the fiscal
year ended December 31, 1994.

**** Incorporated by reference from the Exhibit to Form 10-KSB for the fiscal
year ended December 31, 1995.

(b)  Form 8-K

Reports on Form 8-K filed during the last quarter of the period covered by
this report are as follows:

i.   Notification of Private Placements filed December 23,1996.

As a subsequent event, reports filed on Form 8-K filed after December 31,
1996, but prior to the filing of this report are as follows:

i.   Notification of Private Placements filed February 27, 1997.

ii.  Notification of Private Placements filed March 25, 1997.

iii. Notification of Private Placements filed April 11, 1997.

<PAGE>

                          EFTEK CORPORATION
               YEARS ENDED DECEMBER 31, 1996 AND 1995




                               CONTENTS



                                                              Page(s)

INDEPENDENT AUDITORS' REPORT                                    F-1

CONSOLIDATED FINANCIAL STATEMENTS

Balance Sheets                                                  F-2

Statements of Operations                                        F-3

Statements of Stockholders' Equity                              F-4

Statements of Cash Flows                                        F-5

Notes to Consolidated Financial Statements                   F-6 - F-10
<PAGE>



                         INDEPENDENT AUDITORS' REPORT



To the Board of Directors and Stockholders
EFTEK Corporation
408 Bloomfield Drive
Berlin,  NJ  08009


  We  have  audited  the accompanying consolidated balance  sheets  of
EFTEK  Corporation and subsidiaries as of December 31, 1996 and 1995, 
and the  related consolidated statements of operations, stockholders'
equity and cash flows for the 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 audits.

  We  conducted  our  audits  in accordance  with  generally  accepted
auditing  standards.   Those standards require that we plan and  perform
the  audits  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 made
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  EFTEK
Corporation and subsidiaries as of December 31, 1996 and 1995, and the
results  of their operations and their cash  flows  for  the  years then
ended in conformity with generally accepted accounting principles.


                                      BARATZ & ASSOCIATES, P.A.


February 13, 1997
<PAGE>
                            EFTEK CORPORATION
                         CONSOLIDATED BALANCE SHEETS
                         DECEMBER 31, 1996 AND 1995

</TABLE>
<TABLE>
<CAPTION>
                                                   1996        1995
                                                   ----        ----
<S>                                  <C>        <C>         <C>
    Assets
    ------
Current Assets
-------------- 
Cash                                            $   172,919 $       391
Receivables:
  Trade                                              63,857
  Related parties                    (Note 3)       261,764     258,338
  Other                                                 900
Prepaid expenses                                     44,120            
                                                ----------- -----------
    Total Current Assets                            543,560     258,729
    --------------------                        ----------- -----------
Property and Equipment, Net          (Note 2)     2,873,025      19,113
---------------------------                     ----------- -----------
Other Assets
------------
Patent costs, net                    (Note 2)        54,375      49,540
Organization costs, net              (Note 2)           750       1,050
Deposits                                              7,300       3,300
                                                ----------- -----------
    Total Other Assets                               62,425      53,890
    ------------------                          ----------- -----------
    Total Assets                                  3,479,010     331,732
    ------------                                =========== ===========
    Liabilities and Stockholders' Equity                     
    ------------------------------------
Current Liabilities
-------------------
Current portion of long term debt    (Note 4)        38,104
Accounts payable and accrued
  liabilities                                       191,329      70,023
Income taxes payable                 (Note 6)           300
Due to related party                 (Note 3)                     4,776
                                                ----------- -----------
     Total Current Liabilities                      229,733      74,799
     -------------------------
Long Term Debt, Less Current
  Portion                            (Note 4)       138,543            
----------------------------                    ----------- -----------
    Total Liabilities                               368,276      74,799
    -----------------                           ----------- -----------
Commitments and Contingencies        (Note 5)
-----------------------------
Stockholders' Equity
--------------------
Common stock, $.001 par; authorized
  25,000,000 shares; issued and out-
  standing 25,991,076 and 11,861,435
  shares at December 31, 1996 and
  1995, respectively                 (Notes 7&9)     25,991      11,861
Additional paid in capital                        4,820,446   1,385,178
Deficit                                          (1,735,457) (1,139,860)
                                                ----------- -----------
                                                  3,110,980     257,179

Common stock held in treasury
  (14,434 shares), at cost                              246         246
                                                ----------- -----------
    Total Stockholders' Equity                    3,110,734     256,933
    --------------------------                  ----------- -----------
    Total Liabilities and Stockholders'
      Equity                                    $ 3,479,010 $   331,732
    ----------------------------------          =========== ===========
</TABLE>
  The accompanying notes are an integral part of these financial statements 
<PAGE>
                             EFTEK CORPORATION
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                   YEARS ENDED DECEMBER 31, 1996 AND 1995
<TABLE>
<CAPTION>
                                               1996        1995
                                               ----        ----
<S>                        <C>          <C>            <C>                        
Revenues                                $    207,677   $           
--------                                ------------   ------------
Costs and Expenses
Cost of revenues                             167,072         12,347
Selling, general and
  administrative           (Notes 2 & 5)     654,855        326,626
                                        ------------   ------------
Total Costs and
  Expenses                                   821,927        338,973
---------------                         ------------   -------------
Loss From Operations                     (   614,250)   (   338,973)
--------------------                    ------------   ------------
Other Income (Expenses)
-----------------------
Interest income            (Note 3)           15,926         20,729
Miscellaneous income                          16,466          1,634
Interest expense           (Note 4)      (     5,068)
Miscellaneous expense                    (     8,071)   (     1,007)
                                        ------------   ------------
Total Other Income
  (Expenses)                                  19,253         21,356
------------------                      ------------   ------------

Loss Before Income Taxes                 (   594,997)   (   317,617)
------------------------
Income Taxes               (Notes 2 & 6)         600               
------------                            ------------   ------------
Net Loss                                $(   595,597)  $(   317,617)
--------                                ============   ============

Net Loss Per Common Share  (Note 2)     $(       .03)  $(       .03)
-------------------------               ============   ============

Weighted Average Common
  Shares Outstanding                      17,899,723     10,832,120
-----------------------                 ============   ============
</TABLE>
  The accompanying notes are an integral part of these financial statements.
<PAGE>
                              EFTEK CORPORATION
               CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                    YEARS ENDED DECEMBER 31, 1996 AND 1995

<TABLE>
<CAPTION>
                                                      Additional                   Treasury
                                  Common Stock         Paid-In                      Stock,
                                Shares     Amount      Capital      Deficit         at Cost       Total
                                ------     ------     ----------    -------        ---------      -----
                                <C>        <C>       <C>           <C>             <C>        <C>
Balance, January 1, 1995        11,761,435 $ 11,761  $ 1,295,278    $( 822,243)    $(246)     $   484,550

Common stock issued                100,000      100       89,900                                   90,000

Net loss for the year                                                ( 317,617)                (  317,617)
                                ---------- --------  -----------    ----------     ---------  -----------

Balance, December 31, 1995      11,861,435   11,861    1,385,178    (1,139,860)     (246)         256,933

Common stock issued             14,078,140   14,130    3,412,992                                3,427,122

Acquisition (Notes 2 & 8)                                 22,276                                   22,276

Net loss for the year                                                 (595,597)                (  595,597)
                               ---------- --------- -----------     ----------     ---------  -----------

Balance, December 31, 1996     25,939,575 $ 25,991  $ 4,820,446    $(1,735,457)    $(246)     $ 3,110,734
                               ========== ========  ===========    ===========     ======     ===========
</TABLE>

  The accompanying notes are an integral part of these financial statements.

<PAGE>
                           EFTEK CORPORATION
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                YEARS ENDED DECEMBER 31, 1996 AND 1995

<TABLE>
<CAPTION>
                                               1996         1995
                                               ----         ----  
<S>                                       <C>            <C>
Cash Flows From Operating Activities
------------------------------------
Net loss for the year                       $(595,597)   $(317,617)

Adjustments to Reconcile Net Loss to
  Net Cash Used In Operating Activities
---------------------------------------
Depreciation and amortization                   7,927        7,367

Changes in Operating Assets
  and Liabilities
---------------------------
Increase in receivables                    (   68,183)    ( 22,163)
(Increase) decrease in prepaid expenses    (   44,120)      11,232
Increase in deposits                       (    4,000)    (    400)
Increase in accounts payable and
  accrued liabilities                         121,306       23,363
Increase in income taxes payable                  300             
                                           ----------     --------
Net Cash Used in Operating Activities      (  582,367)    (298,218)
-------------------------------------      ----------     --------
Cash Flows From Investing Activities             
------------------------------------
Additions to intangible assets             (    7,598)    (  6,812)
Purchase of property and equipment         (2,858,776)
Acquisition                                    22,276             
                                           ----------     --------
Net Cash Used in Investing Activities      (2,844,098)    (  6,812)
-------------------------------------      ----------     --------
Cash Flows From Financing Activities
------------------------------------
Related party advance                                        4,776
Reduction of related party debt            (    4,776)
Proceeds from long term debt                  176,647
Proceeds from issuances of common stock     3,427,122       90,000
                                           ----------     --------
Net Cash Provided By Financing Activities   3,598,993       94,776
-----------------------------------------  ----------     --------
Net Increase (Decrease) In Cash               172,528     (210,254)
-------------------------------
Cash at Beginning of Year                         391      210,645
-------------------------                  ----------     --------
Cash at End of Year                       $   172,919    $     391
-------------------                       ===========    =========

Supplemental Cash Flow Information (Note 8)
----------------------------------
</TABLE>
  The accompanying notes are an integral part of these financial statements.

<PAGE>
                             EFTEK CORPORATION
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        DECEMBER 31, 1996 AND 1995

1.  Description of Business

    EFTEK Corporation (the Company), incorporated in the state of
    Nevada, is engaged in processing mixed cullet (broken glass) into a
    recycled, uncontaminated product for use in fiberglass and glass
    container manufacturing industries.  The Company also develops and
    sell various fire retardant chemicals.

2.  Summary of Significant Accounting Policies

    Principles of Consolidation

    The  consolidated financial statements include the accounts of the
    Company  and  its  wholly  owned  subsidiaries. All significant
    intercompany accounts and transactions have been eliminated.

    Use of Estimates

    The preparation of financial statements in conformity with generally
    accepted accounting principles requires management to make estimates
    and assumptions that affect the reported amounts of assets and
    liabilities and disclosure of contingent assets and liabilities at
    the date of the financial statements and the reported amounts of
    revenues and expenses during the period.  Actual results could
    differ from those estimates.

    Property and Equipment

    Property and equipment are recorded at cost.  Depreciation is
    provided using the straight line method over the estimated useful
    lives of the assets.  Depreciation expense for the years ended
    December 31, 1996 and 1995 was $4,864 and $4,148, respectively. 
    Expenditures for maintenance and repairs are charged against income
    as incurred.  When assets are sold or retired, the cost and
    accumulated depreciation are removed from the accounts and any gain
    or loss is included in income.

    Property  and  equipment consisted of the following at December  31:

                                                1996         1995

         Land                              $   338,073
         Building                              312,068
         Building improvements                 726,786
         Equipment                           1,482,157    $ 10,829
         Furniture and fixtures                 17,511      12,003
         Leasehold improvements                  2,500       2,500
                                             2,879,095      25,332
         Less accumulated depreciation          11,083       6,219

         Net property and equipment        $ 2,868,012    $ 19,113
<PAGE>
    Intangible Assets

    Certain  intangible assets have been capitalized and are amortized 
    over  the estimated useful lives of the assets using  the
    straight-line  method.   Patent  costs are amortized  over a period 
    of 17 years.  Organization costs are amortized over a period of 5
    years.

    Income Taxes

    The Company uses Statement of Financial Accounting Standards No.
    109, "Accounting for Income Taxes" (SFAS 109) in reporting deferred
    income taxes.  SFAS 109 requires a company to recognize deferred tax
    assets and liabilities for the expected future income tax
    consequences of events that have been recognized in the company's
    financial statements.  Under this method, deferred tax assets and
    liabilities are determined based on temporary differences between
    the financial carrying amounts and the tax bases of assets and
    liabilities using enacted tax rates in effect in the years in which
    the temporary differences are expected to reverse.

    Net Loss Per Common Share

    Net loss  per common share is based upon the weighted average number 
    of common  and  common  equivalent shares (stock warrants)
    outstanding in each period.  The computation of fully diluted net
    loss per common and common equivalent share was antidilutive in each
    of the periods presented.

    Acquisition

    On April 20, 1996, the Company acquired Fire Doctor, Inc. (Fire) by
    issuing two million shares of the Company's common stock in exchange
    for all Fire's outstanding shares of common stock. The acquisition
    was accounted for as a purchase.  Proforma results of the Company,
    assuming the acquisition occurred at the beginning of the year,
    would not be materially different from the actual results reported.

3.  Related Party Transactions

    Related party transactions included the following:

    At January 1, 1995, the Company was due $225,109 from a stockholder
    (former Company president).  During 1995, stockholder advances and
    interest charges were $38,229 collectively and repayments were
    $5,000 resulting in a $258,338 balance due from the stockholder at
    December 31, 1995.  In 1996, stockholder additions (interest
    charges) were $15,926 and repayments were $12,500, leaving a
    $261,764 balance due at December 31, 1996.

    At December 31, 1995, the Company owed an affiliate $4,776; the
    amount was repaid in 1996 in its entirety.
<PAGE>
4.  Long Term Debt

    Long term debt consisted of the following at December 31, 1996:

    A note payable in monthly  installments of 
    $417, inclusive of interest  at 18.72% per
    annum.  The  note matures in October  1999
    and is collateralized by equipment costing
    $11,410.                                          $  10,929

    A note payable in monthly  installments of
    $707, inclusive of  interest  at 8.89% per
    annum.  The note matures  in November 1999
    and is collateralized by equipment costing
    $22,000.                                             21,718

    A note payable  in monthly installments of
    $1,903, inclusive of interest at 9.25% per
    annum.  The note matures in September 2000
    and is collateralized by equipment costing
    $95,000.                                             72,121

    A note payable in  monthly installments of
    $1,711, inclusive  of interest  at  13.96%
    per annum.  The note  matures  in  October
    2001 and is collateralized   by  equipment 
    costing $73,597.                                     71,879
                                                        176,647
    Less current portion                                 38,104

    Total long term debt                              $ 138,543

    The aggregate maturities of long term debt are as follows:

                  1997                $  38,104
                  1998                   42,689
                  1999                   46,326
                  2000                   33,462
                  2001                   16,066

                                      $ 176,647

5.  Commitments and Contingencies

    Technology License Agreement

    On  May 15, 1993, R & D Innovators, Inc. (R&D), a subsidiary of the
    Company, entered into a technology license  agreement with an
    affiliated company, whereby R & D granted certain  licensing and
    patent rights to the affiliate in exchange for royalties equal to
    10%  of  the  affiliated company sales.  In 1996  and  1995,  no
    royalties were earned or due to R & D.

    Operating Leases

    The   Company leases office facilities   and transportation
    equipment under noncancellable operating leases with expiration 
    dates  through October 1997.  Rent expense  amounted  to $38,353 and
    $24,600 in 1996 and 1995, respectively.

    Future   minimum  rental  commitments  under   noncancellable  
    lease agreements are $30,090 (1997).

    Litigation

    The Company's balance sheet includes a $15,500 accounts payable to
    a contractor who has litigated against the Company for alleged
    breach of contract and unpaid fees.  The Company believes the suit
    is without merit and intends to vigorously defend its position. 
    Counsel has estimated a maximum potential loss of $20,000.


6.  Income Taxes

    Operating losses in 1996 and 1995 eliminated the need for income tax
    provisions except for the statutory state minimum tax.  At December
    31, 1996, the Company had available federal and state operating loss
    carryforwards in the respective amounts of $1,787,000 and
    $1,746,380.  The loss carryforwards expire 2011 (federal) and 2003
    (state).

    Income taxes, including those currently payable to the state, were
    $600 at December 31, 1996.

    No provisions were made for deferred income taxes in 1996 and 1995. 
    Net deferred tax assets were entirely eliminated by a valuation
    allowance as follows:

    Deferred income tax components:

                                              1996           1995

         Deferred Tax Asset
         Net operating loss carryforwards  $ 764,904      $ 410,094

         Deferred Tax Liability
         Start-up costs                     ( 55,457)        40,204

         Net Deferred Tax Asset              709,447        450,298

         Less Valuation Allowance           (709,447)      (450,298)

                                           $    0         $    0   

    A valuation allowance is provided when it is more likely than not
    that some portion of the deferred tax asset will not be realized. 
    At December 31, 1996 and 1995, management believed that portion of
    the net operating loss carryforwards would not be realized before
    their expiration.

7.  Stock Options and Warrants

    Common Stock Options

    The Company's 1996 stock incentive plan provides for the granting of
    incentive stock options for the purchase of shares of common stock
    to nonsalaried directors as provided by the plan.  The option
    exercise price is the bid price on the date of grant.  The Board of
    Directors determines the vesting period and expiration date
    (generally five years).  Stock option transactions were as Follows:

                                              Shares Under Option

                                                     1996

            Outstanding, beginning of year        $       0
            Granted                                 177,500
   
            Outstanding, end of year (at prices
            ranging from $.625 to $1.00 per
            share)                                $ 177,500

    Common Stock Warrants

    At December 31, 1996 and 1995, the  Company  had outstanding 65,000
    Class A redeemable  common  stock warrants and  83,000  Class  B
    redeemable  common stock warrants.  Each warrant allows for the
    purchase  of  six  shares of the Company's  common  stock  at  an
    exercise price  of  $2 per share.  Warrant expiration dates were
    extended to December 31, 1997.
<PAGE>
8.  Supplemental Cash Flow Information

    Non cash investing and financing activities for the year ended
    December 31, 1996 consisted of the acquisition of Fire Doctor, Inc.
    through the issuance of stock.  The transaction was recorded as
    follows:

         Fair value of assets acquired                 $ 61,009
         Liabilities assumed                            (38,733)

         Adjustment to additional paid in capital      $ 22,276

    Cash paid for interest and income taxes during 1996 was $5,068 and
    $300, respectively.

9.  Subsequent Event

    The Company anticipates either a reverse stock split approved only
    by the Board of Directors or an increase in the authorized number of
    common shares during the second quarter of 1997 subject to
    stockholder approval at the annual meeting of stockholders.  In
    either event, the authorized common shares would be sufficient to
    cover the increased issuance.  The financial statements have not
    been adjusted to reflect the impact of the proposed actions.
<PAGE>
                              SIGNATURES

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

                                EFTEK CORP. 

Dated:  April 15, 1997          By:/s/Frank Whitmore
                                   ______________________
                                   FRANK WHITMORE
                                   President, Chief Executive
                                   Officer and Director

Dated:  April 15, 1997          By:/s/Shawn Pringle
                                   __________________________
                                   SHAWN PRINGLE
                                   Treasurer and Chief Financial Officer

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, this report has been signed on behalf of EFTEK
Corp. and in the capacities and on the dates indicated.

Dated:  April 15, 1997          By:/s/Frank Whitmore
                                   ____________________________
                                   FRANK WHITMORE
                                   President, Chief Executive 
                                   Officer and Director

Dated:  April 15, 1997          By:/s/Shawn Pringle
                                   _____________________________
                                   SHAWN PRINGLE
                                   Treasurer and Chief Financial Officer

Dated:  April 15, 1997         By:/s/Kevin J. Coffey
                                   ____________________________
                                   KEVIN J. COFFEY, Director

Dated:  April 15, 1997         By:/s/Thomas L. Brandt
                                   ___________________________
                                   THOMAS L. BRANDT, Director

Dated:  April 15, 1997          By:/s/Oleg Batratchenko
                                   ____________________________
                                   OLEG BATRATCHENKO, Director

Dated:  April 15, 1997          By:/s/Gerard T. Wisla
                                   -----------------------------
                                   GERARD T. WISLA
                                   Secretary and Director*

*  Director as of March 19, 1997
EFTEK\1996.10K
<PAGE>