<PAGE>
                 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,
1997.

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)

                         324 New Brooklyn Road 
                       Berlin, New Jersey  08009
                 (Address of Principal Executive Offices)
              Registrant's Telephone Number:  (609) 753-4344


                        Bloomfield Business Park
                    408 Bloomfield Drive, Units 1 & 2
                      West Berlin, New Jersey 08091
                   (Former Address of the Registrant)

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: 

State issuer's revenues for its most recent fiscal year:  $443,727

The aggregate market value of the voting stock of the registrant held by
non-affiliates as of March 31, 1998 was approximately $1,474,662 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, 1998 was
11,556,910.  The number of Class A Redeemable Common Stock Purchase Warrants
outstanding as of March 31, 1998 was 65,412.  The number of Class B
Redeemable Common Stock Purchase Warrants outstanding as of March 31, 1998
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 Unitsconsisting
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. 

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.   

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.

Effective May 22, 1997, the Company effected a 1 for 3 reverse stock split
of the Company's common stock which trades on the OTC Bulletin Board.  In
addition, the Company changed its trading symbol on the OTC Bulletin Board
to "EFTX."  The outstanding Class A and Class B Warrants remained the same.

GENERAL

After several years of research and development, the Company has developed
an advanced operational system that utilizes recycled broken glass (known as
cullet), that is usually only suitable for landfills, to produce an end product
that the Company has named "GlassFlour", a furnace-ready raw material for
fiberglass insulation and suitable for glass container manufacturers.

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.  Due to the inherent fragile characteristics of this material,
and the handling procedures during the entire recycling process, a large
percentage of all recyclable glass breaks and is commingled with contaminants
and garbage and becomes amorphous cullet, which is unsuitable
for cost effective color separation and ends up in landfills or, at best,
goes in limited quantities to asphalt production.  At the same time, cullet
is a very valuable raw material for fiberglass and glass container
manufacturing.  It has a lower viscosity than other glass making material
(sand, plate glass) and liquefies at lower temperatures than these other
materials.  As a result, not only does the melting process speed up, but the
wear of the furnace refracting bricks lessens (leading to its longer
production life) and creates a substantial savings of natural gas, the
principal fuel for glass furnaces.

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 Company believes that the  U.S.
fiberglass market for cullet is at least several hundred thousand tons
annually.  As technologies advance, the use of commingled cullet, could
equal or exceed the bottle glass usage.

Cullet use in glass production is more environmentally (and therefore
politically) sound, since it lowers furnace air emissions and takes the
pressure off the landfills.  However, with all the attractiveness of cullet,
post-consumer cullet has not been used very much by the fiberglass industry. 
The major reason is the presence of contamination contained in an average
batch of cullet.  While there have been ways developed to automatically
remove paper, plastics and metals, organics and ceramics are still a
problem, precluding the large scale use of cullet in fiberglass and glass
bottle production.  The melting temperature of ceramics is higher than
that of glass and, as a result, unmelted ceramic seeds and stones block (and
often damage) fiberglass spinners and disrupt the whole manufacturing process.
So far, ceramics have been removed from cullet 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 ceramics, which look very similar to glass,
go undetected and cause an unacceptably high level of cullet contamination.
The Company believes it has resolved this problem in a combination of
proprietary operations and processes.

The Company believes that its process creates a clearly defined competitive
advantage over other cullet processors.,  The quality, cost savings,
environmental and other advantages are even more important as several state
governments are mandating that glass manufacturers use larger
amounts of
cullet in their production facilities.  The combination of
economics and
legislation puts the Company in a potentially lucrative position
to fill a
massive void in the growing demand for purified cullet.

The Company'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 raw
material is
then dumped into a "Grizzly."  As it comes out of the "Grizzly",
two hand
pickers on the first conveyor line pick out anything above four
inches in
diameter such as plastic or metals.  During the next phase of
production,
the product is drawn down a conveyor and under a cross belt
magnet which
takes out ferrous metals and is then sent through a crusher.  It
is then put
into a wash cycle where the washer floats out any light plastics
and non-ferrous metals such as aluminum.  The product is then
sent to a dryer. 
Following the drying process non-transparent contaminants such as
opaque
ceramics, stones, rocks, etc. are removed.  The product then goes
through
another magnetic detector which takes out all remaining metals. 
The final
step of the process is to size the cullet to the customer's
satisfaction. 
The finished product is loaded in trucks and rail for delivery to
customers. 
The removed contaminants would 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.

The Company purchased in June of 1996 approximately 137 acres of
land in
Southern New Jersey containing a 1100 feet long by 65 feet wide
preformed
concrete building large enough to house a production line 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
approximately 20
people.  Production commenced in October 1997 after a lengthy
qualification
process with various fiberglass insulation manufacturers.

INCOME FROM RAW MATERIAL ACCEPTANCE

What the Company believes is unique to the recycling industry,
various waste
removers, haulers and other recycling companies pay landfills or
other
environmentally acceptable depositories tipping fees for the
disposal of
unusable mixed cullet, which can range from $0 to $30 per ton on
the
average, depending upon location, availability and degree of
contamination. 

The Company as a processor of mixed cullet began receiving
deliveries from
various recyclers within a 150 mile range.  Tipping fees vary,
depending on
volume and condition, delivered to the Company's processing
plant. 

As a processor of mixed cullet, the Company believes that it is
complying
with all special permits required and other regulations from
State or
Federal agencies.

FUTURE PLANS

The Company is considering opening plants in locations where
cullet supplies
are available and there are customers within a reasonable radius. 
 Subject
to adequate financing, plants in the States of California,
Georgia, Kansas,
as well as other states are being considered as suitable
locations.

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 or eliminating
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").  After the reorganization, Fire Doctor became a
wholly
owned subsidiary of EFTEK. 

Fire Doctor developed and markets a proprietary chemical formula
designed to
retard the spread of flame.  Fire Doctor has been in business for
approximately four years, three years of which it devoted to
developing a
product line of fire retardant chemicals.  Their main product,
Fire Barrier
II, is recognized under the Component Recognition Program of
Underwriters
Laboratories, Inc.

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 and is non-toxic and a non-irritant. During 1997, Fire
Doctor sold
several tanker loads of Fire Barrier II as a "value added"
product which was
included in Majic Kidproof Fire Retardant Wall Paint which is
manufactured
and marketed by Yenkin-Majestic Paint Corporation.  However, to
date,
despite substantial marketing efforts, Fire Doctor has still not
experienced
substantial sales due to what it believes to be limited capital
and long lead
times.  Fire Doctor is reviewing its options.

Fire Doctor's current marketing strategy is as follows:

1.   To attempt to enter into agreements with key manufacturers
to
incorporate Fire Doctor's product into their core offering such
as paints
and building materials; and 

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.

Fire Doctor utilizes commissioned manufacturers sales
representatives to
call on potential customers.

Herbert Siegel was President of Fire Doctor, Inc. from August,
1996 to May,
1997.  In May, 1997, Benjamin Steiner was appointed President of
Fire
Doctor, Inc. and has served as such to date (see Item 9. for
biography of
Benjamin Steiner).

ITEM 2.  DESCRIPTION OF PROPERTY

The Company relocated its principal business offices to the
industrial
office building that was purchased 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 72,000 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
72,000
square foot facility.

Fire Doctor, Inc., a subsidiary of the Company, is currently
utilizing
office space at Plaza 1000, Suite 309, Voorhees, New Jersey
08043.


ITEM 3.  LEGAL PROCEEDINGS

As of April 14, 1998, 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 that have not otherwise been settled or
in the final
stages of settlement, except for a suit by C&D Marketing for
"finder's fees"
for some clients which the Company has done business with.  The
Company
contests such fees and believes that the claim is without merit. 
In addition,
Celia Pringle has filed a lawsuit for failure to timely remove a
restrictive
legend from her stock so she could sell her stock for more money. 
The Company
believes that the claim has no merit.

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

No matters were put to a vote of the security holders during the
fourth
quarter of fiscal 1997.  However, as a subsequent event, the
Company's
1997-1998 Annual Shareholder's Meeting was held on January 22,
1998, at
which time three matters were submitted to the Company's
stockholders for a
The majority of the stockholders voted for the appointment of the
following
Directors: Frank Whitmore, Thomas L. Brandt, Oleg Batratchenko,
Kevin J.
Coffey, Esquire, Gerard T. Wisla and Michael L. Newsom.  Baratz &
Associates, P.A., as the Company's independent auditors for
fiscal year 1997
and fiscal year 1998 and adoption of an Amendment to the 1996
Stock
Incentive Plan which increased the plan by 400,000 shares.  The
proxy
tabulation was as follows: 8,016.908, 8,022,990 and 7,924,220,
respectively.
<PAGE>
                                 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 "EFTX".  The
following table
indicates the high and low bid prices of the Common Stock from
January 1996
to March 31, 1998 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 and a 1 for 3 reverse stock split in May, 1997).
<TABLE>
<CAPTION>
  QUARTERLY PERIOD ENDED                 HIGH BID              
LOW BID
  <S>                                    <C>                   
<C>
  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
  June 30                                2 26/32                1
5/8
  September 30                           2 3/16                 1
  December 31                            1 7/16                
5/8

  1998
  March 31                               5/8                   
5/16

</TABLE>
As of March 31, 1998, the high and low bid quotations for the
Company's
Common Stock were    and             .

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
and a 1 for three 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, 1998.  

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.  

<PAGE>
ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS

CAUTIONARY STATEMENT
--------------------
When used in this Report on Form 10-KSB and in other public
statements, both
oral and written, by the Company and Company officers, the words
"estimates,"
"project," "intend," "believe," "anticipate," and similar
expressions, are
intended to identify forward-looking statements regarding events
and financial
trends that may affect the Company's future operating results and
financial
position.  such statements are subject to risks and uncertainties
that could
cause the Company's actual results and financial position to
differ materially.
Such factors include, among others: 1) the Company's success in
attacting new
business; 2) the size, duration and timing of orders of
GlassFlour; 3) the
termination, delay or cancellation of orders of GlassFlour; 4)
the competition
in the industry in which the Company competes; 5) the Company's
ability to
obtain financing on satisfactory terms; 6) the sensitivity of the
Company's
business to general economic conditions; 7) efficiency of
production lines;
8)  availability and economic feasibility of receiving mixed
cullet; and 10)
other economic, competitive, governmental and technological
factors affecting
the Company's operations, markets, products, services and prices. 
The Company
undertakes no obligations to publicly release the result of any
revision of
these forward-looking statements to reflect events or
circumstances after the
date they are made or to reflect the occurrence of unanticipated
events.

RESULTS OF OPERATIONS
---------------------

Year Ended December 31, 1997 Compared with Year Ended December
31, 1996
-----------------------------------------------------------------------
Revenue for the year ended December 31, 1997 increased 214% to
$443,727 as
compared to $207,677 for the year ended December 31, 1996.  The
increase
in revenues is attributable to the commencement of operations of
the
Company's wholly owned subsidiary, CFC, Inc. in October, 1997.

Cost of revenues for the year ended December 31, 1997 increased
251% to
$419,959 as compared to $167,072 for the year ended December 31,
1996.  The
increase is cost of revenues is attributable to the commencement
of operations
of the Company's wholly owned subsidiary, CFC, Inc.

Selling, general and administrative costs for the year ended
December 31, 1997
increased 253% to $1,654,183 as compared to $654,855 for the year
ended
December 31, 1996.  The increase in selling, general and
administrative costs
is attributable to payroll and related operating costs of CFC,
Inc., the write
off of related party receivable of $261,764 and depreciation
expense of
$133,357.

Other income (expenses) for the year ended December 31, 1997 was
an expense of
$57,525 as compared to income of $19,253 for the year ended
December 31, 1996.
The increase in other income (expenses) is attributable to
interest expense of
$58,314.

Net loss for the year ended December 31, 1997 increased 284% to
$1,688,580 as
compared to $595,597 for the year ended December 31, 1996, due to
the above
factors.

LIQUIDITY AND CAPITAL RESOURCES 
-------------------------------
The Company's primary source of funds continued to be through the
sale of its
securities.  Additionally, cash flow as supplemented by the
procedds of a
$250,000 mortgage on its Berlin, New Jersey plant site as well as
various
financing leases related to specific equipment installed in its
processing
line.  The operating production line was completed in mid 1997
and commenced
October 1, 1997, after an extensive qualification process with
its customers,
the wholly owned subsidiary, CFC, Inc. (CFC), began selling its
product, Glass
Flour (trademark pending), to two of the world's largest
producers of
fiberglass insulation.  In fact, the Company entered into
agreements with both
customers where the Company agreed to reserve up to 40,000 tons
of GlassFlour
each in exchange for significant, volume related, pricing
schedule.  CFC also
received certain tipping fees for the delivery and acceptance of
3-mix cullet.
Tipping fees varied depending on the quality and condition of the
cullet.

As a subsequent event, these customers have increased their
demand for Glass
Flour and are anticipated to do so throughout 1998.  The Company
believes that
CFC is meeting its current obligations and should continue to
improve its
operating results as demand levels rise and efficiencies improve.

The successful qualification process has led to the recognition
of the high
quality and economic advantages of GlassFlour as a raw material
in the
manufacturing of fiberglass insulation.  As a result, the Company
has also
received commitments by its customers for certain minimum/maximum
demand levels
for its product should additional processing plants be developed
at various
locations in close proximity to other insulation manufacturing
facilities.
Commitments have been received fro the purchase of a minimum of
80% of the
anticipated 100,000 ton, two-shift capacity, of a proposed
processing facility
in northern California.  Management is in the process of
performing its due
diligence related to an expansion program that not only includes
California,
but Georgia, Kansas and other locations.  Various factors will
influence the
decision to expand to specific locations including, but not
limited to, product
demand, raw material availability and financing options, of which
there is
no assurance.

As a subsequent event, the Company sold at various times in 1998,
additional
shares of its common stock in a Private Placement to mainly
institutional
foreign investors for a consideration of $192,583. 

Year 2000 Compliance
--------------------
All research indicates that the Company's exposure to this
problem will be
minimal.  The Company's computers, local area network servers,
software and
phone system have all been purchased within the last three years. 
The
manufacturers of the Company's systems have provided, or are on
track to
provide updates by the end of 1998, if needed.

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.

<PAGE>
                              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,
1998:

Name                          Age       Position Held with
Company
-----                        -----     
----------------------------
Frank Whitmore                62        President, Chief
Executive
                                        Officer, Director
Kevin J. Coffey, Esq.         39        Director
Thomas L. Brandt              43        Director
Gerard T. Wisla(1)            40        Secretary, Chief
Financial Officer,
                                        Director
Shawn F. Pringle(2)           29        Former Treasurer and
Chief Financial
                                        Officer
Oleg Batratchenko             32        Director
Michael L. Newsom(3)          48        Director
Benjamin Steiner(4)           56        President of Fire Doctor,
Inc.
Herb Siegel(5)                47        Former President of Fire
                                        Doctor, Inc. and former
Director
______________________________



1 Appointed a Director on March 19, 1997 and Chief Financial
Officer on May
22, 1997*.
2 Resigned as Treasurer and Chief Financial Officer on May 22,
1997*.
3 Director Pro-tem appointed a Director by the Board of Directors
on
December 11, 1997 and by Shareholders' vote at the Annual
Shareholders'
Meeting held on January 22, 1998.
4 Appointed May 22, 1997* as President of Fire Doctor, Inc.
5 Resigned as Director on March 19, 1997 and resigned as
President of Fire
Doctor, Inc. on May 22, 1997.

*  All May 22, 1997 appointments became effective on June 2,
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.

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.

SHAWN F. PRINGLE, former Treasurer and Chief Financial Officer of
the
Registrant and its subsidiary (resigned on May 22, 1997), 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.  After resigning
as Chief
Financial Officer and Treasurer, Mr. Pringle was appointed to
Assistant to
the President and subsequently resigned that position and left
the Company
in December, 1997.

GERARD WISLA, Secretary, Treasurer, Chief Financial Officer and
Director of
the Registrant is a Certified Public Accountant and a principal
partner of
Wisla & Cohen Certified Public Accountants for the last eight
years.  Mr.
Wisla was previously a shareholder and Director of Quality
Control for a
large regional accounting firm.  In addition to his extensive
financial, tax,
and business consulting background, 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
various
local and national professional organizations.  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.

OLEG BATRATCHENKO, Director.  Since April, 1995, Mr. Batratchenko
was Vice
President of Research at Berkshire International Finance, Inc., a
New York 
corporate finance and investment banking company.  Also, Mr.
Batratchenko is 
a Senior Vice President of an affiliate organization, Fifth
Avenue Research
and Advisory Group, Inc.  Mr. Batratchenko has been managing many
of the
public  relations services rendered to a number of growth
oriented small cap
companies. From 1993 to 1995, Mr. Batratchenko was employed in
the capacity
of Research Analyst by Safian Investment Research, Inc., a White
Plains, New
York financial research and money management firm.  Prior to
that, Mr.
Batratchenko worked as a Performance Analyst with Newberger and
Berman, a
major New York money  management firm.  Between 1987 and 1990,
Mr.
Batratchenko was a Research  Associate at the Moscow Institute of
World
Economy and International Relations, where he completed a Masters
program in
Economics and was involved in a number of high profile research
projects
being conducted by this leading Russian think tank for the
Kremlin.  In
1992, Mr. Batratchenko obtained a Masters Degree in 
International Political
Economy from New York University.  He is an Associate  member of
the
Financial Analysts - Money Managers Society (New York).

MICHAEL L. NEWSOME, Director, is the owner of his own consulting
company. 
From 1981 through 1997, he held various management positions with
Anchor
Glass Container Corp., including Director of Environmental
Affairs and
Director of Glass Engineering.  From 1973 to 1980, he was
involved in
various technical supervisory activities with Libby Owens Ford
Glass
Company.  He has authored publications carried in the glass
industry
magazines concerning various environmental issues.  His areas of
expertise
involving the glass industry relate to glass melting operations,
raw
material selection, environmental auditing, emissions reduction,
statistical
and economic analysis and development of corporate environmental
policy and
operating procedures.  Mr. Newsom graduated in 1972 from the
University of
Toledo with a B.S. degree in Chemical Engineering and in 1979
received his
MBA, also from the University of Toledo.

BENJAMIN I. STEINER, President of Fire Doctor, Inc. subsidiary as
of June 2,
1997, is a Certified Public Accountant.  From 1964 through 1997,
Mr. Steiner
has held executive financial and administrative positions at
mid-market,
publicly and privately owned companies.  From 1995 to 1996, Mr.
Steiner was
the Vice President of Finance and Chief Financial Officer of
Packquisition
Corp.  From 1994 to 1995, he held the Chief Financial Officer
position at
Liss Brothers, Inc.  Prior to that, Mr. Steiner was the Manager
of Financial
Administration at Direct Innovative Products.  Mr. Steiner
graduated in 1964
from Bucknell University where he earned a B.S. degree is
Business
Administration.  He is an active member of the American and
Pennsylvania
Institutes of Certified Public Accountants.  Mr. Steiner is a
former Chapter
Treasurer and Director of the Institute of Management
Accountants, former
Chapter Vice President of the Association for Corporate Growth
and former
Director of the Philadelphia Finance Association.

HERBERT SIEGEL, former President of Fire Doctor, Inc. subsidiary
and
Director until his resignation on May 22, 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.


ITEM 10.  EXECUTIVE COMPENSATION

                          SUMMARY COMPENSATION TABLE
<TABLE>
<CAPTION>
               Annual Compensation         Long Term Compensation 
               --------------------       
------------------------  
                                      Awards              
Payouts
                                      ------             
---------
(a)Name and    (b)  (c)    (f)Restricted (g)Securities  (h)     
(i)
Principal                     Stock       Underlying       LTIP   
 All
Other
Position       Year Salary   Awards($)   Option/SARs(#)  
Payouts($)Compensation
-----------    ---- ------   ---------  -------------- ----------
------------
<S>            <C>  <C>        <C>            <C>         <C>     
     <C>  
       <C>
Frank Whitmore,1997 $ 50,000*  0              0           0       
     0    
       0
President (1)  1996 $ 41,667   0              0           0       
     0    
       0

Frank Pringle, 1996 $102,500   0              0           0       
     0    
       0
(Past Pres.)   1995 $ 63,750   0              0           0       
     0    
       0
               1994 $112,950   0              0           0       
     0    
       0

Gerard T.
Wisla, CFO(2)  1997 $ 12,000*  0              0           0       
     0    
       0
</TABLE>

*  $41,667 was paid to the President and $14,583 is accrued
salary to be
paid at a later date.

** $12,000, all of which is accrued and to be paid at a later
date.

(1) Frank Whitmore, the current President of the Company, agreed
to receive
$50,000 annual salary and 166,667 stock options, (66,667 of which
are
already vested and an additional 33,333 options to be vested each
year
thereafter as long as he is still employed by the Company).  Mr.
Whitmore
also received 2,500 stock options for Director compensation for
1995.  On
October 31, 1997, Mr. Whitmore was granted 333,334 stock options
at the
exercise price of $1.00 per share and an additional 100,000 stock
options on
January 22, 1998 for $.3875 per share.

(2) Gerard T. Wisla, the current Chief Financial Officer of the
Company,
agreed to receive $24,000 annual salary.  On March 1, 1996, prior
to Mr.
Wisla being appointed an officer or director, Mr. Wisla was
granted 4,167
stock options at the exercise price of $1.86 for past services
rendered to
the Registrant.  In addition, after being named as a director,
Mr. Wisla was
granted 2,500 stock options at the exercise price of $3.75. 
However, when
Mr. Wisla was appointed Secretary, and subsequently Chief
Financial Officer,
those options were terminated.  In addition, on October 31, 1997,
he was
granted 25,000 options at the exercise price of $1.00 for
services and on
January 22, 1998, 25,000 stock options at the exercise price of
$.3875 as an
employee.

All of the above stock options and exercise prices reflect the 1
for 3
reverse stock split that occurred on May 22, 1997.
 
See Item 11. footnotes for stock option grants to other Directors
and 
Officers.

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, 1998 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 and the 1 for 3 reverse stock split that occurred on May 22,
1997:
<TABLE>
<CAPTION>
TITLE OF       NAME AND ADDRESS                                   
   PERCENT
 CLASS         OF BENEFICIAL OWNER                   SHARES OWNED 
   OF CLASS

-----------------------------------------------------------------------------
<S>              <C>                                <S>           
    <C>
Common           Frank Whitmore                        610,977(1) 
     5.29%
                 324 New Brooklyn Road
                 Berlin, New Jersey 08009

Common           Frank G. Pringle
                 Creditors' Trust                    1,050,826(2) 
     9.09%
                 8 Tallowood Drive
                 Medford, NJ 08055

Common           Kevin J. Coffey, Esq.                 111,588(3) 
      .97%
                 153 Lost Lake
                 Marlton, NJ 08053

Common           Shawn Pringle                          40,390(2) 
      .35%
                 324 New Brooklyn Road
                 Berlin, New Jersey 08009 

Common           Thomas L. Brandt                       15,000(4) 
      .13%
                 324 New Brooklyn Road
                 Berlin, New Jersey 08009
                
Common           Herbert Siegel                         11,666(5) 
      .10%
                 405 Lakeside Drive
                 South Hampton, PA 18966

Common           Sierra Growth & Opportunity 
                 Fund                                  883,667    
     7.65%
                 551 Fifth Avenue, Suite 605
                 New York, NY 10017

Common           Gerard Wisla                           69,508(6) 
      .60%
                 4808 Rainbow Ridge Circle
                 Schwenksville, Pennsylvania 19473

Common           Oleg Batratchenko                      21,667(7) 
      .19%
                 551 Fifth Avenue, Suite 605
                 New York, NY 10017

Common           Michael Newsome                        12,500(8) 
      .11%
                 P.O. Box 924
                 Safety Harbor, Florida 34695

Common           Benjamin Steiner                       10,000(9) 
      .09%
                 40 April Lane
                 Huntingdon Valley, PA. 19006

Common           Arista Capital Growth 
                 Fund Ltd.                          
2,318,887(10)     20.07%
                 P.O. Box 20043
                 Phase 3, British American Center
                 Georgetown, Grand Cayman
                 Cayman Islands, British West Indies

Common           Signature Equities Agency GmbH      1,371,368    
    11.87%
                 Ross Str 96
                 40476 Duesseldorf
                 Germany

Common           Veco Capital Growth Fund            1,173,803    
    10.16%
                 P.O. Box 20043
                 Phase 3, British American Center
                 Georgetown, Grand Cayman
                 Cayman Islands, British West Indies

          

All Officers and Directors as a                        903,296    
     7.82%
group (9 in number)                                           
__________________________
1  Includes 100,000 stock options vested and excludes 66,667
stock options
still not vested at the exercise price of $1.875 per share and
2,500 stock
options granted to Mr. Whitmore as a member of the Board of
Directors in
1995 at the exercise price of $5.25 per share.  Also includes
333,334 stock
options at the exercise price of $1.00 and 100,000 options at the
exercise
price of $.3875.
2 Frank G. Pringle and Shawn Pringle, father and son, each
disclaim
beneficial ownership of the shares of Registrant held by the
other.  The
Company has been advised, according to a Court Order of the U.S.
Bankruptcy
Court filed March 5, 1997, that all of Mr. Frank G. Pringle's
shares are now
beneficially owned solely by a Creditors' Trust in consideration
of the
release of Mr. Pringle of certain obligations of his bankruptcy
estate.  This
figure does not include the beneficial ownership of stock held in
street name.
3 Includes 7,500 stock options all of which are vested for
compensation for
being a Director in 1995, 1996 and 1997 at the rate of 2,500
stock options
per year exercisable at $5.25, $2.625, and $3.75, respectively. 
Does not
include 7,500 stock options which are not vested for compensation
for being
a Director for 1998. 
4 Includes 7,500 stock options granted to Mr. Brandt as
compensation for
being a Director in 1996 and 1997 which are vested as well as
10,000 stock
options for services at the exercise price of $1.00.  Does not
include 7,500
stock options granted to Mr. Brandt as compensation for being a
Director in
1998 which are not vested. 
5 No longer an officer or director as of May 22, 1997.
6 Includes 2,500 stock options exercisable at $3.75 which are not
vested,
granted to Mr. Wisla as a member of the Board of Directors of
1997, 4,167
options exercisable at $1.86 granted to Mr. Wisla for past
services
rendered, 25,000 stock options exercisable at $1.00 granted for
services and
25,000 stock options exercisable at $.3875 granted to Mr. Wisla
for
services.  All of Mr. Wisla's stock options are vested.
7 Includes 5,000 stock options granted as compensation for being
a Director
for the years 1996 and 1997 (2,500 per year) exercisable at
$2.625 and
$3.75, respectively, all of which are vested.  Does not include
7,500 stock
options exercisable at $.8125, which are not vested, granted as
compensation
for being a Director for the year 1998.
8 Includes 2,500 stock options exercisable at $3.75 granted as
compensation
for being a Director for the year 1997, all of which are vested,
as well as
10,000 stock options granted to Mr. Newsome for services at the
exercise
price of $.3875.  Does not include 7,500 stock options that were
granted at
the exercise price of $.8125 for being a Director in the year
1998, which
are not vested.
9 Includes 10,000 stock options at the exercise price of $2.00
which are
vested.  Does not include 20,000 stock options at the exercise
price of
$2.00 which are not vested.  
10 This figure assumes a combined beneficial ownership of Arista
Capital Growth
Fund Ltd., Arista Biomedical Growth Fund Ltd. and Arista High
Technology
Growth Fund Ltd.

(C)  CHANGE IN CONTROL

None.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

None for the fiscal year ended December 31, 1997.

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 April 15, 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                             
*****

21       Subsidiaries of the Registrant

27       Financial Data Schedule (in Electronic format only)

*    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.

*****Incorporated by reference from the Exhibit to Form 10-KSB
for the
fiscal year ended December 31, 1996.

(b)  Form 8-K

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

       There were no reports filed on Form 8-K during the fourth
quarter of 
       fiscal 1997.


<PAGE>





EFTEK CORPORATION
               YEARS ENDED DECEMBER 31, 1997 AND 1996




                               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-12










                     INDEPENDENT AUDITORS' REPORT



To the Board of Directors and Stockholders
EFTEK Corporation
408 Bloomfield Drive
West Berlin,  NJ  08091


     We  have  audited  the accompanying consolidated balance 
sheets of 
EFTEK  Corporation and subsidiaries as of December 31, 1997 and
1996, 
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, 1997 and 1996,
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.


April 7, 1998

EFTEK CORPORATION
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1997 AND 1996



                                                     1997       
1996
    Assets

Current Assets
Cash                                            $    32,002 $  
172,919
Receivables:
  Trade                                              65,598     
63,857
  Related parties                    (Note 3)                  
261,764 
  Other                                                           
 900
Prepaid expenses                                     40,034     
44,120 

    Total Current Assets                            137,634    
543,560 

Property and Equipment, Net          (Note 2)     4,830,629  
2,873,025 

Other Assets
Intangible assets, net               (Note 2)        84,046     
55,125
Deposits                                              3,900      
7,300 

    Total Other Assets                               87,946     
62,425

    Total Assets                                  5,056,209  
3,479,010 

    Liabilities and Stockholders'
      Equity                     

Current Liabilities
Current portion of long term debt    (Note 4)       205,528
Current portion of obligations
  under capital leases               (Note 5)       139,561     
38,104
Accounts payable and accrued
  liabilities                                       763,691    
191,329 
Income taxes payable                 (Note 7)           600       
 300

     Total Current Liabilities                    1,109,380    
229,733

Long Term Debt (Less Current
  Portion)                           (Note 4)       243,633
     
Obligations Under Capital Leases
  (Less Current Portion)             (Note 5)       396,875    
138,543

    Total Liabilities                             1,749,888    
368,276 

Commitments and Contingencies        (Note 6)

Stockholders' Equity
Common stock, $.001 par; authorized
  25,000,000 shares; issued and out-
  standing 10,829,155 and 25,991,076
  shares at December 31, 1997 and
  1996, respectively                 (Notes 8&9)     10,829     
25,991 
Additional paid in capital                        6,719,775  
4,820,446 
Deficit                                          (3,424,037)
(1,735,457)

                                                  3,306,567  
3,110,980

Common stock held in treasury
  (4,811 shares), at cost                               246       
 246 

    Total Stockholders' Equity                    3,306,321  
3,110,734 

    Total Liabilities and Stockholders'
      Equity                                    $ 5,056,209 $
3,479,010





                           EFTEK CORPORATION
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                 YEARS ENDED DECEMBER 31, 1997 AND 1996






                                               1997        1996


Revenues                                $    443,727   $   
207,677 

Costs and Expenses
Cost of revenues                             419,959       
167,072 
Selling, general and
  administrative           (Notes 2 & 5)   1,654,183       
654,855 

Total Costs and
  Expenses                                 2,074,142       
821,927 

Loss From Operations                     ( 1,630,415)   (  
614,250)

Other Income (Expenses)
Interest income            (Note 3)                         
15,926 
Miscellaneous income                             789        
16,466 
Interest expense           (Note 4)      (    58,314)   (    
5,068)
Miscellaneous expense                                   (    
8,071)

Total Other Income
  (Expenses)                             (    57,525)       
19,253 


Loss Before Income Taxes                 ( 1,687,940)   (  
594,997)

Income Taxes               (Notes 2 & 6)         640           
600 

Net Loss                                $( 1,688,580)  $(  
595,597)


Net Loss Per Common Share  (Note 2)     $(       .17)  $(      
 .10)


Weighted Average Common
  Shares Outstanding                      10,161,663     
5,966,574






EFTEK CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996






                                                            
Additional                  Treasury
                                           Common Stock       
Paid-In                    Stock,
                                        Shares     Amount     
Capital       Deficit      at Cost       Total

Balance, January 1, 1996             11,861,435 $ 11,861  $
1,385,178    $(1,139,860)     $(246)    $   256,933

Common stock issued                  14,129,641   14,130   
3,412,992                                 3,427,122

Acquisition (Notes 2 & 10)                                    
22,276                                    22,276

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


Balance, December 31, 1996           25,991,076   25,991   
4,820,446     (1,735,457)      (246)    $ 3,110,734

Common stock issued                   3,941,953    3,942   
1,065,874                                 1,069,816

Reverse stock split (Note 9)        (19,955,353) (19,955)     
19,955

Common stock issued                     851,479      851     
813,500                                   814,351

Net loss for the year                                             
       (1,688,580)                (1,688,580)


Balance, December 31, 1997           10,829,155 $ 10,829  $
6,719,775    $(3,424,037)     $(246)    $ 3,306,321




EFTEK CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1997 AND 1996






                                               1997         1996

Cash Flows From Operating Activities
Net loss for the year                     $(1,688,580)  $( 
595,597) 

Adjustments To Reconcile Net Loss To
  Net Cash Used In Operating Activities
Depreciation and amortization                 137,680        
7,927  

Changes In Operating Assets
  And Liabilities           
Decrease (increase) in receivables            260,923    (  
68,183) 
Decrease (increase) in prepaid expenses         4,086    (  
44,120) 
Decrease (increase) in deposits                 3,400    (   
4,000) 
Increase in accounts payable and
  accrued liabilities                         572,362      
121,306  
Increase in income taxes payable                  300          
300  

Net Cash Used In Operating Activities      (  709,829)   ( 
582,367) 

Cash Flows From Investing Activities                    
Additions to intangible assets             (   28,235)   (   
7,598) 
Purchase of property and equipment         (1,666,884)  
(2,858,776)
Acquisition                                                 
22,276  

Net Cash Used In Investing Activities      (1,695,119)  
(2,844,098) 

Cash Flows From Financing Activities
Reduction of related party debt                          (   
4,776)
Proceeds from debt                            450,000      
176,647
Reduction of debt                          (   70,136)
Proceeds from issuances of common stock     1,884,167    
3,427,122  

Net Cash Provided By Financing Activities   2,264,031    
3,598,993  

Net Increase (Decrease) In Cash            (  140,917)     
172,528  

Cash at Beginning of Year                     172,919          
391  

Cash at End of Year                       $    32,002   $  
172,919  




Supplemental Cash Flow Information (Note 10)


EFTEK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996




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 (GlassFlour) 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, 1997 and 1996 was $133,357 and $4,864, 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:

                                                1997         1996

          Land                              $   338,073  $  
338,073  
         Building                              317,081     
317,081  
          Building improvements                 889,159     
726,786    
         Equipment                           3,406,493   
1,482,157
         Furniture and fixtures                 21,759      
17,511
         Leasehold improvements                              
2,500
                                             4,972,565   
2,884,108
         Less accumulated depreciation         141,936      
11,083

         Net property and equipment        $ 4,830,629  $
2,873,025



     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 and mortgage acquisition costs
are 
amortized over a period of 5 years.

     Intangible assets consisted of the following at December 31:

                                               1997       1996

          Patents                            $ 71,675   $ 63,624
          Mortgage acquisition costs           25,193
          Organization costs                    1,500      1,500
                                              98,368     65,124
          Less accumulated amortization        14,322      9,999

              Net intangible assets          $ 84,046   $ 55,125
     
     Income Taxes

     The Company accounts for income taxes under an asset and
liability 
approach that requires the recognition of deferred tax assets and 
liabilities for the expected future tax consequences of events
that 
have been recognized in the Company's financial statements or tax 
returns.  In estimating future tax consequences, the Company 
generally considers all expected future events other than
enactment 
of changes in the tax laws or rates.

    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 diluted net loss 
per common and common equivalent share was antidilutive in each
of 
the periods presented.  The 1996 calculation of net loss per
common 
share was adjusted retroactively to reflect the reverse stock
split 
occurring in 1997.

     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, 1996, the Company was due $258,338 from a
stockholder 
(former Company president).  During 1996, interest charges were 
$15,926 and repayments were $12,500 resulting in a $261,764
balance 
due from the stockholder at December 31, 1996.  In 1997, the 
receivable was determined to be uncollectible due to the 
stockholder's personal bankruptcy.  Bad debt expense in the
amount 
of $261,764 is included in selling, general and administrative 
expenses.

     At January 31, 1996, the Company owed an affiliate $4,776;
the 
amount was repaid in 1996 in its entirety.


4.   Long Term Debt

     Long term debt consisted of the following at December 31,
1997:

                                                     1997     
1996

    A mortgage payable in monthly installments of
     $3,750, inclusive of interest  at 16% per
     annum.  The mortgage matures on July 2011 and
    is collateralized by land and building in
     Williamstown, NJ.                             $ 249,161
     
    A note payable to an officer and shareholder
     of the Company.  Interest is payable monthly
     at 10% per annum.  The note matures March 1998.
    Interest accrued on this note at December 31,
     1997 was $3,014.                                100,000

     A note payable to a financing company, interest
     is payable at 8% per annum when the note 
     matures in January 1998.  The Company has the
     option to convert the note into common stock
    at $0.625 per share prior to January 1998.       50,000

    A note payable to a company.  Interest is 
     payable at 8% per annum when the note matures
     on June 1998.  The Company has the option to
     convert the note into common stock at $0.625
     per share prior to June 1998.                    50,000
                                                    449,161
    Less current portion                            205,528

    Total long term debt                          $ 243,633

     The aggregate maturities of long term debt at December 31,
1997 are 
as follows:

                  1998             $ 205,528
                  1999                 6,480
                  2000                 7,597
                  2001                 8,905
                  2002                10,439
                  Thereafter         210,212

                                   $ 449,161

5.   Obligations Under Capital Leases

     Obligations under capital leases consisted of the following
at 
December 31, 1997:

                                                      1997      
1996
    A lease payable in monthly  installments of
     $4,639, inclusive of  interest  at 12.6% per
     annum.  The lease matures  in March 2001
     and is collateralized by equipment costing
     $155,000.                                     $ 146,004

    A lease payable  in monthly installments of
     $2,913, inclusive of interest at 12.9% per
     annum.  The lease matures in August 2001
     and is collateralized by equipment costing
     $108,750.                                        99,848


     A lease payable in  monthly installments of
     $1,794, inclusive  of interest  at  16.1%
     per annum.  The lease matures  in  October
     2001 and is collateralized   by  equipment 
    costing $73,597.                              $  61,275  $ 
71,879

    A lease payable in monthly  installments of
     $1,422, inclusive of interest  at 8.99% per
     annum.  The lease matures in November 2001
     and is collateralized by equipment costing
     $11,410.                                         56,156

    A lease payable  in monthly installments of
     $1,903, inclusive of interest at 9.25% per
     annum.  The lease matures in September 2000
     and is collateralized by equipment costing
     $76,100.                                         55,255    
72,121

    A lease payable  in monthly installments of
     $1,219, inclusive of interest at 17.61% per
     annum.  The lease matures in January 2002
     and is collateralized by equipment costing
     $48,398.                                         42,375
  
    A lease payable  in monthly installments of
     $529, inclusive of interest at 12.95% per
     annum.  The lease matures in February 2001
     and is collateralized by equipment costing
     $19,750.                                         16,777

     A lease payable in monthly installments of
    $379 inclusive of interest at 12.6% per
    annum.  The lease matures in November 2002
    and is collaterized by equipment costing
    $16,823.                                         16,620
    
     A lease payable  in monthly installments of
     $707, inclusive of interest at 8.89% per
     annum.  The lease matures in November 1999
     and is collateralized by equipment costing
     $22,000.                                         14,895   
21,718

    A lease payable in monthly installments of
    $497 inclusive of interest at 14.5% per
    annum.  The lease matures in April 2000
    and is collaterized by equipment costing
    $13,410.                                         11,384

    A lease payable in monthly installments of
    $320 inclusive of interest at 10.9% per
    annum.  The lease matures in May 2000
    and is collaterized by equipment costing
    $9,805.                                           8,139

     A lease payable  in monthly installments of
     $417, inclusive of interest at 18.72% per
     annum.  The lease matures in October 1999
     and is collateralized by equipment costing
     $11,410.                                          7,708   
10,929
                                                     536,436  
176,647
     Less current portion                            139,561   
38,104

                                                   $ 396,875 $
138,543


     Minimum future lease payments at December 31, 1997 are as
follows:

                  1998                $ 200,861
                  1999                  199,320
                  2000                  175,945
                  2001                   86,847
                  2002                    5,387
                                        668,360
    Less amount representing interest   131,924

    Present value of future minimum
      lease payments                  $ 536,436

6.  Commitments and Contingencies

    Operating Leases

     The Company leases office facilities   and transportation
equipment 
under noncancellable operating leases with expiration dates  
through October 1997.  Rent expense  amounted  to $26,867 and 
$38,353 in 1997 and 1996, respectively.

     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.

     The Company is a defendant in a lawsuit filed by a Company
that 
performed marketing services for EFTEK Corporation (EFTEK).  The 
Company claims that EFTEK owes them a "finders fee" for the
clients 
that EFTEK does business with. Outside counsel for EFTEK has 
advised the Company that at this stage in the proceedings they 
cannot offer an opinion as to the probable outcome.  The Company 
believes the suit is without merit and is vigorously defending
its 
position.

7.  Income Taxes

     Operating losses in 1997 and 1996 eliminated the need for
income 
tax provisions except for the statutory state minimum tax.  At 
December 31, 1997, the Company had available federal and state 
operating loss carryforwards in the respective amounts of 
$3,470,000 and $3,424,000.  The loss carryforwards expire 2012 
(federal) and 2005 (state).

     Income taxes, including those currently payable to the
state, were 
$640 and $600 at December 31, 1997 and 1996, respectively.

     No provisions were made for deferred income taxes in 1997
and 1996. 
Net deferred tax assets were entirely eliminated by a valuation 
allowance as follows:


     Deferred income tax components:

                                              1997           1996

         Deferred Tax Asset
         Net operating loss carryforwards  $ 1,487,830    $
764,904

         Deferred Tax Liability
         Start-up costs                     (   13,401)    (
55,457)

         Net Deferred Tax Asset              1,474,429     
709,447

         Less Valuation Allowance           (1,474,429)   
(709,447)

                                           $         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, 1997 and 1996, management believed that a portion 
of the net operating loss carryforwards would not be realized 
before their expiration.

8.  Stock Options and Warrants

     Common Stock Options

     The Company's 1997 stock incentive plan provides for the
granting 
of incentive and nonstatutory stock options for the purchase of 
shares of common stock to officers, directors, nonsalaried 
directors, employees and consultants 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

                                                       1997   
1996

        Outstanding, beginning of year                177,500     
  0
       Granted                                       503,333 
177,500
       Retired                                      ( 50,000)
       Adjustment for reverse stock split           (166,666)     
   

       Outstanding, end of year (at exercise
         prices ranging from $1.00 to $3.75 per
         share)                                      464,167 
177,500

     Common Stock Warrants

     At December 31, 1997 and 1996, 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.

9. Reverse Stock Split

On May 22, 1997, the Board of Directors authorized a one for
three 
reverse stock split.  As a result, the number of shares
outstanding 
decreased by 19,955,353 and additional paid in capital increased
by 
$19,955.  The authorized number of shares and the par value 
remained the same.




10. Supplemental Cash Flow Information

     Cash paid for interest during 1997 and 1996 was $55,230 and
$5,068, 
respectively.  Cash paid for income taxes during 1996 was $400
and 
$300, respectively.

     Noncash investing and financing activities for the years
ended 
December 31, 1997 and 1996 consisted of the following:

     In 1997 the Company purchased equipment by incurring capital
lease 
obligations in the amount of $429,086.

     In 1996 the Company acquired 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

     
 

 
 




     The accompanying notes are an integral
     part of these financial statements.<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:                           _____________________________
                                 FRANK WHITMORE
                                 President, Chief Executive
                                 Officer and Director

Dated:                           _____________________________
                                 GERARD T. WISLA
                                 Secretary, Treasurer, Chief
Financial
                                 Officer and Director  

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:                           ____________________________
                                 FRANK WHITMORE
                                 President, Chief Executive 
                                 Officer and Director
 
Dated:                           ____________________________
                                 GERARD T. WISLA
                                 Secretary, Treasurer,Chief
Financial                                  Officer and Director 

Dated:                           ____________________________
                                 KEVIN J. COFFEY, Director

Dated:                           ___________________________
                                 THOMAS L. BRANDT, Director

Dated:                           ____________________________
                                 OLEG BATRATCHENKO, Director

Dated:                           _____________________________
                                 MICHAEL L. NEWSOME 
                                 Director* 

*  Director as of January 22, 1998

EFTEK\1997.10K

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