UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, D. C.
                                       
                                 FORM 10-QSB
                                       
              QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934
      
      For the quarter ended September 30, 1998 Commission File Number: 0-24378
      
                            FIRST SCIENTIFIC, INC.
      Exact name of small business issuer as specified in its charter).
      
      
                 DELAWARE                                 33-0611745
      ---------------------------------       -------------------------------
      (State or other jurisdiction            (IRS Employer Identification No.)
      of incorporation or organization)
      
      1877 West 2800 South, Suite 200                      
      Ogden, Utah                                         84401
      ----------------------------------------          ---------
      (Address of principal executive offices)          (Zip Code)
      Registrant's telephone number, including Area Code:   (801) 393-5781
      
      Indicate by check mark whether the registrant (1) has filed all
      reports required to be filed by Sections 13 or 15(d) of the Securities
      Exchange Act of 1934 during the preceding 12 months (or for 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 the number of shares outstanding of each of the issuer's classes
      of common equity as of the close of the period covered by this report.
      
                 18,815,241 Shares of common stock, $.001 par value
      
                                    -1-
   <PAGE>
      
     
                                  FIRST SCIENTIFIC, INC.
                                       FORM 10-QSB
      
                             QUARTER ENDED SEPTEMBER 30, 1998
      
                                    TABLE OF CONTENTS
      
                              PART I - FINANCIAL INFORMATION
      
      
                                                                           PAGE
      
      Item 1. Financial Statements
      
              Condensed Consolidated Balance Sheets (unaudited) - 
		  September 30, 1998 and December 31, 1997                      3
            
              Condensed Consolidated Statements of Operations (unaudited) 
		  for the three months and the nine months ended September 
	        30, 1998 and September 30, 1997 and for the Cumulative 
              period from April 30, 1990 (date of inception) through
	        September 30, 1998                                            4
                  
              Condensed Consolidated Statements of Cash Flows (unaudited) 
	        for the nine months ended September 30, 1998 and September 
		  30, 1997          							    5
                  
              Notes to Financial Statements (unaudited)                     6
                  
      Item 2.
      
              Management's Discussion and Analysis of 
              Financial Condition and Results of Operations                10
              

                      PART II - OTHER INFORMATION
      
              Other Information                                            14
      
              Signature Page                                               17


                                      -2-
<PAGE>




                            FIRST SCIENTIFIC, INC.
                      (FORMERLY LINCO INDUSTRIES, INC.)
                       (A Development Stage Enterprise)
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (UNAUDITED)
                                       
                                    ASSETS

    
                                               September 30,   December 31,
                                                   1998            1997
                                               -------------   ------------
Current Assets
 Cash                                           $    744,713   $      7,938
 Trade receivables                                    24,162          8,425
 Stock subscriptions receivable                      763,903             - 
 Inventory                                            21,998         29,881
 Prepaid expenses                                     14,000          2,934
                                                ------------    -----------
 
  Total Current Assets                             1,568,776         49,178
 
Property and Equipment, Net                            8,001            618

Purchased Technology, Net                            131,250              -
                                                ------------    -----------

Total Assets                                    $  1,708,027    $    49,796
                                                ============    ===========

                    LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities
 Accounts payable                               $     15,585    $     2,399
 Customer deposits                                    33,750             - 
 Accrued interest payable                                 41         23,171
 Deferred salary payable                              20,000         83,877
 Deferred income tax payable                          61,881             - 
 Notes payable, current portion                           -          81,688
 Related party notes payable                          17,905        106,939
                                                ------------    -----------

  Total Current Liabilities                          149,162        298,074
                                                ------------    -----------

Long-Term Notes Payable                                    -         74,600
                                                ------------    -----------

Stockholders' Deficit
 Preferred stock 1,000,000 shares authorized, no 
    shares outstanding                                     -              - 
 Common stock $.001 par value, 50,000,000 
   shares Authorized; issued and 
    outstanding: 18,815,241 
    shares at June 30, 1998 and 10,467,581 
    shares at December 31, 1997                       18,588         10,468
  Additional paid-in capital                       5,696,403        148,887
 Unearned compensation                              (174,194)             - 
 Deficit accumulated during the 
   development stage                              (3,981,932)      (482,233)
                                                 -----------    -----------
 
  Total Stockholders' Deficit                      1,558,865       (322,878)
                                                 -----------    -----------
 
Total Liabilities and Stockholders' Deficit      $ 1,708,027    $    49,796
                                                 ===========    ===========
  The accompanying notes are an integral part of these financial statements.


                            FIRST SCIENTIFIC, INC.
                      (FORMERLY LINCO INDUSTRIES, INC.)
                       (A Development Stage Enterprise)
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (UNAUDITED)


<TABLE>
<CAPTION>
                                                                                           Cumulative
                                                                                                 From
                                                                                       April 30, 1990
                                                                                             (Date of
                                                                                           Inception)
                                     For the Three Months       For the Nine Months           through
                                     Ended September 30,        Ended September 30,     September 30,
                                  -------------------------   -------------------------
                                         1998          1997          1998          1997          1998
                                  -----------   -----------   -----------   -----------   -----------
<S>                              <C>           <C>           <C>           <C>           <C>
Sales                             $    60,889   $     5,126   $    68,501   $     8,781   $   221,348
                                                                         
Cost of Sales                          38,412         3,387        43,291         5,659       142,947
                                  -----------   -----------   -----------   -----------   -----------

Gross Profit                           22,477         1,759        25,210         3,122        78,401
                                  -----------   -----------   -----------   -----------   -----------
Operating Expenses
   Research and development 
     expense                        3,783,376         8,565     3,795,959        12,464      3,971,701
   General and administrative 
     expense                          141,346        16,918       189,432        37,680        456,002
   Interest expense                     5,706         8,029        21,751        17,163         94,863
                                  -----------   -----------   -----------   -----------   ------------
   
    Total Operating 
        Expenses                    3,930,428        33,512     4,007,142        67,307      4,522,566
                                  -----------   -----------   -----------   -----------    -----------

Net Loss                          $(3,907,951)  $   (31,753)  $(3,981,932)  $  (64,185)    $(4,444,165)
                                  ===========   ===========   ===========   ==========     ===========

Basic and Diluted Loss Per 
  Common Share                    $     (0.36)  $     (0.01)  $     (0.38)  $    (0.01)    $     (0.45)
                                  ===========   ===========   ===========   ==========     ===========
Weighted Average Number
  of  Shares Used in Per-Share 
  Calculation                      10,888,982    10,467,581    10,467,581   10,370,800       9,971,191
                                  ===========   ===========   ===========   ==========     ===========
 <FN>

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


                             FIRST SCIENTIFIC, INC.
                       (FORMERLY LINCO INDUSTRIES, INC.)
                        (A Development Stage Enterprise)
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

                                                                   Cumulative
                                                                         From
                                                               April 30, 1990
                                                                     (Date of
                                                                    Inception)
                                          Ended September 30,          Through
                                        ------------------------- September 30, 
                                                 1998        1997         1998              
                                        -------------  ---------  ------------
 Cash Flows From Operating Activities
  Net loss                              $  (3,981,932) $ (64,183) $ (4,464,166)
  Adjustments to reconcile net loss to 
     net cash used in operating activities:
    Depreciation and amortization               3,917         77         4,020
    Common stock for services                       -          -        74,355
    Common stock for purchased research 
      and development                       3,766,440          -     3,766,440
    Changes in assets and  liabilities:
       Accounts receivable                    (15,737)     16,019      (24,162)
       Inventory                                7,883       1,246      (21,998)
       Prepaid expenses                       (11,066)      2,607      (14,000)
       Accounts payable                        13,186       1,609       15,586
       Customer deposits                       33,750           -       33,750
       Accrued interest payable                11,233      12,548       34,404
       Deferred compensation                   28,000       2,139      111,877
                                        -------------  ---------- ------------
    Net Cash Used in Operating 
      Activities                             (144,326)    (27,938)    (483,894)
                                        -------------  ---------- ------------
 Cash Flows From Investing Activities
  Cash paid for equipment                      (7,550)       (721)      (8,271)
  Cash received from sale of
    securities available-
    for-sale                                  302,847           -       302,847
                                       --------------  ---------- -------------

     Net Cash Used in Investing           
      Activities                              295,297        (721)      294,576
                                       --------------   --------- -------------
 Cash Flows From Financing Activities
  Proceeds from borrowing                      11,050      17,179       205,975
  Principal payments on 
    notes payable                            (117,338)          -      (155,975)
  Proceeds from loans from 
    stockholders                               19,930           -       158,934
  Principal payments on loans 
    from stockholders                         (45,278)    (15,850)      (62,343)
  Proceeds from issuance of 
    common stock                              717,440           -        787,440
                                       --------------  ---------- --------------
    Net Cash Provided by  
      Financing Activities                    505,804       1,329        934,031
                                       --------------  ---------- --------------
 Net Increase (Decrease) in Cash              736,775     (27,330)       744,713
 
 Cash and Cash Equivalents at Beginning 
    of Period                                   7,938      28,033              - 
                                       --------------  ---------- --------------
 Cash and Cash Equivalents at 
   End of Period                       $      744,713  $      703 $      744,713
                                       ==============  ========== ==============
 Supplemental cash flow information and noncash investing and financing
 activities - Note 3
 
  The accompanying notes are an integral part of theses financial statements.

                             FIRST SCIENTIFIC INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)
 
 
 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
 Interim Condensed Financial Statements - The accompanying condensed
 consolidated financial statements are unaudited. In the opinion of
 management, all necessary adjustments (which include only normal recurring
 adjustments) have been made to present fairly the financial position,
 results of operations and cash flows for the periods presented. Certain
 information and note disclosure normally included in financial statements
 prepared in accordance with generally accepted accounting principles have
 been condensed or omitted. It is suggested that these condensed
 consolidated financial statements be read in conjunction with the financial
 statements and notes thereto included in the December 31, 1997 annual
 financial statements of the Company as reflected in the Form 8-K/A
 Amendment No. 1 dated September 15, 1998. The results of operations for the
 nine month period ended September 30, 1998 are not necessarily indicative
 of the operating results to be expected for the full year.
 
 Principles of Consolidation - The accompanying condensed  consolidated
 financial statements include the accounts and transactions of First
 Scientific Corporation (formerly Linco Industries, Inc.) for all periods
 presented and the accounts and transactions of First Scientific, Inc. from
 the date of its acquisition on September 15, 1998. Intercompany accounts
 and transactions have been eliminated in consolidation. The consolidated
 entities are collectively referred to herein as the Company.
 
 Organization - On September 15, 1998, Linco Industries, Inc. ("Linco")
 entered into a reorganization agreement with SPPS Financial Corporation
 ("SPPS"), a publicly held Delaware corporation, whereby a newly-formed,
 wholly-owned subsidiary of SPPS was merged into Linco. Under the terms of
 the agreement, the Linco shareholders exchanged all of the 3,710 issued and
 outstanding common stock of Linco for 8,798,080 shares of SPPS common
 stock. SPPS had no assets, liabilities or operations and had 3,333,330
 common shares outstanding at the date of the agreement. The agreement has
 been accounted for as the reorganization of Linco, with a related
 2,371.45-for-1 stock split, and the issuance by Linco of 3,333,330 common
 shares recorded at zero. The accompanying financial statements have been
 restated for all periods presented for the effects of a stock split. SPPS
 changed its name to First Scientific, Inc. 
 
 Basic and Diluted Loss per Share - Basic loss per common share is computed
 by dividing net loss by the number of common shares outstanding during the
 period. Diluted loss per share is calculated to give effect to potentially
 issuable common shares except during loss periods when those potentially
 issuable common shares would decrease the loss per share. There were
 125,000 potentially issuable common shares which were excluded from the
 calculation of diluted loss per common share. 
 
 NOTE 2 ACQUISITION OF TECHNOLOGY
 
 In connection with the reorganization agreement with SPPS, the Company
 issued 5,201,920 shares of common stock to an officer/director for the
 transfer of all rights and ownership of technology relating to three
 scientific formulations and the cancellation of the Company's obligation
 under a royalty agreement relating to the use of the technology. The
 scientific formulations were developed by the officer/director and the
 Company and the common shares were issued to fully transfer the
 officer/director's interest in the technology to the Company. The
 technology relates to three scientific formulations, a non-alcohol based
 antibacterial sanitizing formulation that removes bacteria while
 moisturizing the skin and a topical rash prevention and treatment
 formulation that cleanses and moisturizes the skin for use with incontinent
 and other skin rash situations.
 
 The acquired technology was valued and recorded at $3,901,440 based upon
 the fair value of the shares of common stock issued. The fair value of the
 common stock was $0.75 per share based upon the price at which stock was
 issued for cash at the time the technology was transferred. There has been
 no public market of the Company's common stock. The acquired technology was
 allocated $135,000 to purchased technology and $3,766,440 to research and
 development expense based upon an evaluation of the status of the
 components of the technology at the acquisition date and the estimated net
 future cash flows from the portion of the technology currently being used
 in products for sale.
 
 NOTE 3 CASH FLOW INFORMATION 
 
 Supplemental Cash Flow Information -
 
                                         
                                        For the Nine Months
                                        Ended Sepetember 30,
                                       ----------------------
                                             1998        1997
                                       ----------   ---------
 
       Interest paid                   $   21,710   $  17,163
                                       ==========   =========

 Noncash Investing and Financing Activities - As mentioned in Note 2, First
 Scientific Corporation entered into an agreement with SPPS pursuant to
 which SPPS issued 8,798,080 shares of its common stock in exchange for 100%
 of the issued and outstanding common stock of First Scientific Corporation.
 In connection with the agreement, the Company issued 5,201,920 shares of
 common stock in exchange for the rights and technology and the cancellation
 of a license and royalty agreement central to the Company's product.
 
 In contemplation of the reorganization with SPPS, the Company received an
 advance in the amount of $50,000 from an investor on August 6, 1998 in
 order to meet short-term operating expenses. The advance was converted into
 66,667 shares of common stock at the date of the reorganization. 
 
 On September 14, 1998, $91,877 of deferred salary was converted into
 additional paid-in capital without the issuance of additional shares.
 Additionally, notes payable to shareholders in the amount of $90,000 were
 converted into additional paid-in capital without the issuance of
 additional shares.
 
 On September 30, 1998, the Company issued 169,781 common shares upon the
 conversion of a $50,000 note payable together with accrued interest in the
 amount of $8,049. 
 
 NOTE 4 NOTES PAYABLE
 
 Conversion of Notes Payable - As described in Note 6, common stock was
 issued upon the conversion of a note payable in the amount of $50,000. 
 
 Related Party Notes Payable - On September 14, 1998, related party notes
 payable in the amount of $90,000 were converted into additional paid-in
 capital without the issuance of additional shares. The remaining related
 party notes payable of $17,905 are to directors, former directors and
 officers of the Company.
 
 Notes Payable to Banks - At June 30, 1998, the Company had notes payable to
 banks in the amount of $101,524. The balances of all these notes were paid
 in full during September 1998.
 
 
 NOTE 5 LEASE COMMITMENTS
 
 Subsequent to June 30, 1998, the company entered into operating lease
 agreements to lease office space and a copier, and a capital lease
 agreement for computer equipment. The office lease is for a two year term,
 is renewable on an annual basis, and currently requires lease payments of
 $2,576 per month with annual escalations equal to the lesser of the change
 in the consumer price index or 5%. The copier lease is for 36 months with
 monthly payments of $146. The capital lease is for a 3-year term requiring
 monthly payments of $294. The future minimum lease payments for these new
 leases at their inception are as follows:
     
       For the Year Ending                             
          December                          Capital     Operating 
        ------------                      ---------    ----------
            1998                          $  1,274     $   10,994
            1999                             3,523         32,981
            2000                             3,523         22,676
            2001                             2,936          1,275
                                          --------     ----------
 
       Total Minimum Payments               11,256         67,926
                                          --------     ----------
 
       Less amount representing interest    (3,540)
                                          --------
 
       Present value of net minimum lease 
         payments                         $  7,716
                                          ========
 
 
 NOTE 6 COMMON STOCK
 
 During the third quarter of 1998, the Company issued 87,744 common shares
 to a third party in exchange for $30,000 in cash. 
 
 From September 16th through September 30, 1998, the Company issued (or
 received subscriptions for) 2,666,666 shares of common stock for
 approximately $1,951,540, or $0.73 per share, received or receivable in
 cash and marketable securities. The capital contribution was in connection
 with the Linco reorganization agreement. The investors' tax basis in the
 marketable securities contributed became the Company's tax basis;
 accordingly, deferred income tax was recognized of $48,460 for the
 difference in the fair value of the securities and their tax basis. At
 September 30, 1998, the Company had issued 1,312,130 common shares in
 exchange for $984,098 in cash and marketable securities, net of tax. The
 marketable securities received were immediately sold for no gain or loss.
 An additional $967,442 has been reflected as a stock subscription
 receivable at September 30, 1998 which was subsequently received and the
 related 1,354,536 common shares were subsequently issued.
 
 During the third quarter of 1998, 169,781 shares of common stock were
 issued upon conversion of a $50,000 note payable together with accrued
 interest in the amount of $8,049.
 
 NOTE 7 STOCK OPTIONS
 
 On September 30, 1998, the Company granted stock options to two outside
 directors to purchase a total of 1,050,000 shares of common stock at $0.75
 per share. The options vest according to a schedule over three years and
 expire September 30, 2003. 125,000 options were exercisable at September
 30, 1998. The options granted were valued at their fair value on the grant
 date of $174,194, which will be recognized by the Company as the options
 vest with $85,355 charged to operations during the year ended December 31,
 1998, and $64,452 and $24,387 charged during the years ending December 31,
 1999 and 2000, respectively. No compensation expense was recognized during
 the third quarter.
 
 The options were valued based upon their fair values according to the
 Black-Scholes option pricing model with the following assumptions: dividend
 yield of 0.0%, expected volatility of 0.0%, risk free interest rate of 5.0%
 and expected life of 5 years. The expected volatility is assumed to be 0.0%
 because at the grant date the Company is deemed to be privately held.
 
 
 NOTE 8 SUBSEQUENT EVENTS
 
 As described in Note 2, 1,312,130 common shares issued for subscriptions
 received from third party investors. Subsequent to September 30, 1998,
 $763,903 was received in satisfaction of the subscriptions receivable. 
 
 During October 1998, the Company obtained a $2,000,000 key man life
 insurance policy on the Company's research and development director. 
 
 During October 1998, the Company agreed in principle to compensation
 packages for a director and a consultant which amount to $17,000 per month
 in the aggregate.
              
  
 
 




      Item 2.  Managements's Discussion and Analysis of Plan of Operations
      
          The following discussion and analysis provides information which
      management believes is relevant to an assessment and understanding of
      the Company's consolidated results of operations and financial
      condition.  The discussion should be read in conjunction with the
      unaudited condensed consolidated financial statements, as of September
      30, 1998, together with the audited Financial Statements as of
      December 31,1997 and form 8-K/A Amendment No.1 dated September
      15,1998.  Whenever in this discussion the term "Company" is used, it
      should be understood to refer to First Scientific, Inc. ("First
      Scientific") and its subsidiary on a consolidated basis, except where
      the context clearly indicates otherwise. 
      
      Overview
      
          The Company is development stage company and, since inception, has
      incurred losses from operations.  As of September 30, 1998 the Company
      has had cumulative net losses totaling $3,981,932.  The Company is
      primarily engaged in the development of scientific chemical
      formulations that have worldwide sales application.  It has chosen
      initially to market  its products through private label relationships
      with companies that are major distributors in the over-the-counter,
      medical, healthcare and multi-level arenas.    Development of its own
      brand, especially in the medical markets, will be pursued on a
      case-by-case basis as profitable opportunities arise.  First
      Scientific has developed two unique formulations; the first is a
      moisturizing antibacterial sanitizing formulation that removes 99.99%
      of bacteria from the skin without the harsh effects of alcohol or
      iodine (this product can be delivered in wipes, spray , gel-lotion and
      lotion-soap form) and the second, a topical rash prevention and
      treatment formulation that cleanses and moisturizes the skin for use
      with incontinent patients and other rash situations (in wipe form).
      The world wide market for such products has grown significantly in
      recent years and is projected to continue growing at an aggressive
      rate.  Regarding the Company's antibacterial formulation, this growth
      is due to the increase in the bacteria related disease, sickness and
      death from methicillin-resistant and other bacteria, the demands of
      government and healthcare agencies/providers to create healthier
      treatment enviroments and the insistence of the public in general for
      healthier living and working conditions.  Increasing market growth for
      the Company's diaper and other rash formulation is primarily a
      function of the tremendous growth rate of the  incontinent geriatric
      population, as baby boomers get older, and the product's application
      for the infant market.  Management believes the markets for its
      products will continue to expand and that the potential for becoming a
      significant participant  in such markets is a reasonable expectation. 
             
          First Scientific outsources the manufacture of its products.  The
      company currently has developed relationships with two such
      manufacturers who both have F.D.A approved facilities.  These
      manufacturers are in the business of manufacturing for various
      customers who require F.D.A. compliant facilities for their products
      and have years of experience performing according to F.D.A. standards.
       The Company produces a concentrate of its antibacterial formulation
      at its own facility, or at nearby contract facilities, under F.D.A.
      protocols.  The concentrate is then shipped to its manufacturers for
      production runs according  to  customer specifications.  This
      procedure protects the trade secret status of this formulation.  The
      Company does not use this procedure in the production of its rash
      prevention and treatment formulation because its cannot economically
      mix concentrate for this product; however, strict confidentiality
      agreements are in place with the manufacturer to protect the trade
      secret status of this product formulation.  
      
      Financial Position
      
          The Company had $744,713 in cash as of September 30, 1998.  This
      represented an increase of  $736,775 from December 31, 1997.  Working
      capital as of September 30,1998, increased to $1,419,614 as compared
      to a negative working capital of $248,896 at December 31,1997. This
      increase was largely due to funding from a private placement of
      securities by the Company,  as more fully described elsewhere in this 
      document.
      
      Results of Operations
      
           During the three months and nine months ended September 30, 1998,
      the Company had total operating revenues of $60,889 and $68,501
      respectively, comprised primarily of product sales; compared with
      total operating revenues of $5,126 and $8,781 for the comparable
      periods from the prior year, comprised also primarily of product sales.
      
              Prior to June1998 Company revenues were generated from
      sporadic sales of  a Linseed oil based soap product and rash
      prevention product created for a distributor who sells this product
      under private labels to an over-the-counter customer. First Scientific
      may continue to sell product to these clients, but does not expect the
      revenue to be significant  from these relationships.  In June 1998 the
      Company entered into a private label supply agreement with a
      multinational distributer of medical and healthcare products.  This
      private label transaction is for individual antibacterial wipes that
      the customer will export.  The manufacturing of this product has not
      been completed as of September 30,1998, but is scheduled for December
      1998; however, the customer has paid 50% down according to the terms
      of the transaction.   Serious negotiations are currently in process
      with other potential domestic  private label customers and an
      international customer that are projected to conclude during the forth
      quarter of 1998 or during the first quarter of 1999.
      
              Private label agreements, such as those discussed above,
      create certain risks for the Company, including (i) reliance for sales
      of products on other parties, and therefore reliance on the other
      parties' marketing ability, marketing plans and credit-worthiness;
      (ii) if the Company's products are marketed under other parties'
      labels, goodwill associated with use of the products may inure to the
      benefit of the other parties rather than the Company; (iii) the
      Company may have only limited protection from changes in manufacturing
      costs and raw materials costs; and (iv) if the Company is reliant on
      other parties for all or substantially all of its sales, the Company
      may be limited in its ability to negotiate with such other parties
      upon any renewals of their agreements.  Management believes  these
      risks are mitigated by initial markets demands, the apparent
      uniqueness of its formulations, the large existing and expanding
      markets  for its products and  the caliber of customers with which it
      is negotiating currently.
      
              The Company uses as many as twenty specific chemical and
      botanical ingredients to formulate its products.  Supplies of these
      ingredients remain readily available from multiple sources. The
      Company currently maintains very good relationships with its suppliers
      and does not anticipate problems that would cause the interruption,
      delay or availability of such ingredients     
          
              General and administrative expenses were $141,346 and $189,432
      for the three and nine months ended September 30, 1998, respectively,
      compared with $16,918 and $37,680 for the comparable periods from the
      prior year. The increase in expenditures between the 1998 and 1997
      periods were due to the transition, the Company experienced from
      basically a one man product development entity, with minimal sales, to
      an adequately staffed operation capable of administrating  anticipated
      growth. In September 1998 the Company moved into new executive office
      space which should meet  growth needs for the foreseeable future.  The
      space it had been occupying will be kept for research, testing, mixing
      and  warehousing.
      
              Research and development expenses were $16,396 and $25,519 for
      the three and nine months ended September 30, 1998, before purchased
      research and development in the amount of $3,766,440, compared with
      $8,565 and $12,464 for  the comparable periods from the prior year. 
      The increase in expenditures between the 1998 and 1997 periods
      resulted from the refinement of such formulations and development of
      new formulations.  Net of technology  acquisition costs incurred in
      previous periods, management expects an increase in research and
      development expenses for future periods, as the Company expands its
      product offerings and customer base. 
          
      Liquidity and Capital Resources
      
              To date, the Company has financed its operations principally
      through founder loans, private placements of equity securities and
      product sales. The Company generated $1,236,878 in net proceeds
      through financing activities from inception through September 1998.
      The Company used net cash in operating activities of $144,326 during
      the nine months ended September 30, 1998 compared to $27,938 for the
      comparable period from the prior year. As of September 30, 1998, the
      Company's liabilities totaled $129,163. The Company had working
      capital as of September 30, 1998 of $1,439,613.
      
              The Company's working capital and other capital requirements
      for the foreseeable future will vary based upon a number of factors,
      including continuing research and development, market development,
      facilities enhancement, additional personnel, travel and other
      expenses related to projected growth. With the new business the
      Company is now negotiating , management believes that existing funds
      and funds generated from these sales will be sufficient to meet
      current obligations and ultimately to establish profitable operations.
       However, should payment  terms on private label sales deviate from
      the normal 50% down payment with the order and the balance of 50%
      before shipping and/or should sales increase at a higher than
      anticipated rate, the Company will likely need a bank line of credit,
      purchase order/accounts receivable financing or additional equity
      capital to meet its working capital needs in the future. There is no
      assurance that any funding will be available or that, if available,
      the terms of such offering or funding will be favorable to the Company.
      
      Year 2000
      
              The Company uses computers principally for scientific modeling
      and calculation, product/market research  and administrative functions
      such as communications, word processing, accounting and management and
      financial reporting. The Company's computer system was purchased
      September, 1998. The software utilized by the Company is generally
      standard "off the shelf" software, typically available from a number
      of vendors. While the Company believes it has taken all appropriate
      steps to assure year 2000 compliance, it is dependent substantially on
      vendor compliance. Should vendor assurances that the Company's systems
      are 2000 compliant be incorrect, management believes systems failures
      would  not have a material adverse impact on its operations.
      
              In addition to its own computer systems, in connection with
      its business activities, the Company interacts with suppliers,
      customers, creditors and financial service organizations domestically
      and globally who use computer systems. It is impossible for the
      Company to monitor all such systems, and there can be no assurance
      that the failure of such systems would not have a material adverse
      impact on the Company's business and operations. The Company is
      currently evaluating what contingency plans it may adopt in order to
      make in the event the Company or parties with whom the Company does 
      business experience year 2000 problems.
      
      Forward-Looking Statements
      
              When used in this Form 10-Q and in other filings by the
      Company with the SEC, in the Company's press releases or other public
      or stockholder communications, or in oral statements made with the
      approval of an authorized executive officer of the Company, the words
      or phrases "would
      be," "will allow," "intends to," "will likely result," "are expected
      to," "will continue," "is anticipated," "estimate," "project," or
      similar expressions are intended to identify "forward-looking
      statements" within the meaning of the Private Securities Litigation
      Reform Act of 1995.
      
              The Company cautions readers not to place undue reliance on
      any forward-looking statements, which speak only as of the date made,
      are based on certain assumptions and expectations which may or may not
      be valid or actually occur, and which involve various risks and
      uncertainties, including but not limited to risk of product demand,
      market acceptance, economic conditions, competitive products and
      pricing, difficulties in product development, commercialization, and
      technology, and other risks. In addition, sales and other revenues may
      not commence and/or continue as anticipated due to delays or
      otherwise. As a result, the Company's actual results for future
      periods could differ materially from those anticipated or projected.
      
              Unless otherwise required by applicable law, the Company does
      not undertake, and specifically disclaims any obligation, to update
      any forward-looking statements to reflect occurrences, developments,
      unanticipated events or circumstances after the date of such statement.
      
      
                               PART II   OTHER INFORMATION
      
      Item 1.  Legal Proceedings.
      
          The Company is not currently involved in any legal proceedings.
      
      Item 2.  Changes in Securities.
      
              In September 1998, the Company initiated a private placement
      (the "Private Placement") anticipating raising  gross proceeds of
      $2,000,000 through the sale of 2,666,666 shares of common stock to
      qualified investors for $.75 per share. As of September 30, 1998,
      $984,098 had been raised and 1,312,130 shares of common stock has been
      issued under Rule 506 of Regulation D and Section 4(2) of the
      Securities Act of 1933, as amended (the "Securities Act"). The Company
      did not use an underwriter in connection with the Private Placement.
          
              On September 15, 1998, the Company, then known as Linco
      Industries, Inc.(Linco), entered into a reorganization agreement with
      SPPS Financial Corporation (SPPS) whereby Linco would become a wholly
      owned subsidiary of SPPS.  Under the terms of the agreement, a newly
      formed wholly-owned subsidiary of SPPS was merged into Linco.  The
      shareholders of Linco exhanged each of their shares of common stock
      for 2,371.45 shares of SPPS common stock in connection with the
      reorganization agreement, which resulted in SPPS issuing 8,798,080
      shares of its common stock to the Linco shareholders.  Concurrent with
      the reorganization, SPPS issued 5,201,920 common shares in exchange
      for the rights to technology and the cancellation of a license and
      royalty agreement central to the Company's products.  As a result of
      the reorganization, the Linco shareholders became shareholders of the
      Company in a transaction intended to qualify as a tax-free
      reorganization.  Concurrent with the reorganization, SPPS changed its
      name to First Scientific, Inc.  
      
              In contemplation of the reorganization, the Company received a
      pre-merger advance in the amount of $50,000 on August 6, 1998, in
      order to meet short term operating expenses.  The advance from an
      investor was converted into common stock at the date of the 
      reorganization.
      
              The merger has been considered the reorganization of Linco and
      the acquisition of SPPS in a purchase business combination.  There was
      no market for SPPS's common stock, which corporation had minimal
      assets; therefore, the 3,333,330 shares of common stock outstanding at
      the date of the reorganization will be recorded at $0.  The fair value
      of the contributed technology is based upon the fair value of common
      shares issued for cash following the reorganization and was
      preliminarily valued at $3,901,440, or $0.75 per share.  The merger
      has been accounted for as the reorganization of Linco with a  related
      2,371.45 for 1 stock split.  The accompanying financial statements
      have been restated for the effects of the stock split for all periods
      presented.  
      
      Item 5: Other Information
      
      Directors and Executive Officers
      
              On September 15, 1998, the stockholders of the Company elected
      new directors.  The members of the Board of Directors of the Company
      serve until the next annual meeting of stockholders, or until their
      successors have been elected.  The officers serve at the pleasure of
      the Board of Directors.  The following are the directors and executive
      officers of the Company:
      
               Name                                Position
              -----------------                    ----------------------
              Douglas R. Warren                    President and Director
              Edward B. Walker                     Director
              Jerral R. Pulley                     Director
              Dr. Peter J. Sundwall Jr., M.D.      Director
              Darrell J. Saunders, D.D.S.          Director
              Gordon M. Davis                      Vice President
                                                     Administration/CFO
              Reed Tanner                          Vice President Distribution,
                                                     Regulatory Compliance
      
              Douglas R. Warren, age 65, has been President of the Company
      since its acquisition of Linco Industries, Inc., of which he was one
      of the founders.  As President of Linco, he directed all aspects of
      operations including manufacturing, distribution and sales.  Prior to
      acquisition of Linco by the Company, Mr. Warren developed many
      important business relationships within suppliers and potential 
      customers.
      
              Edward B. Walker, age 46, is a native of Ogden, Utah.  He
      graduated from Weber State University and obtained his Ph.D in
      chemistry from Texas Tech University.  After completing a
      post-doctoral fellowship in the Stanford University Department of
      Biochemical Pharmacology, Dr. Walker returned to Weber State
      University in 1981, where he is currently a professor of chemistry and
      Director of the Utah Center of Excellence for Chemical Technology.
      
              Dr. Walker's basic research interests over the years have
      focused on the biochemistry of natural products, and their effects on
      living systems.  In addition, he spends a significant portion of his
      time in applied research, helping Utah inventors and corporations
      develop new and enhanced products, refine their quality assurance
      programs, and improve manufacturing methods.  Dr. Walker has been
      issued various U.S. and foreign patents for his inventions, ranging
      from novel drugs derived from plants to flow cells used in
      spectrophotometers.  Dr. Walker has received the Utah Governor's Medal
      for Science and Technology, Weber State University's Master Teacher
      Award, and is a Cortez Professor in the Honors Program at WSU.  He has
      authored many scientific publications and two university-level
      chemistry textbooks.
      
              Jerral R. Pulley, age 64, is an experienced executive skilled
      at providing strategic direction, innovative marketing solutions and
      creating new streams of business revenue.  Mr. Pulley is a partner in
      the consulting firm, The Client Synergy Group, and immediately prior
      to that while in Boston, he served as Senior Vice President and
      General Manager of S.C. Publishing 1995-1997 and 1990-1994 as CEO of
      Polymerics, a leading art/craft company with $90 million in revenue.
      
              Mr. Pulley's background includes serving in senior executive
      roles at several prominent corporations including: Binnery & Smith
      (Crayola), as VP Corporate Development; Ryder, as Senior VP Strategic
      Planning/Corporate Development; Bordon, Group VP (Consumer Products
      Division); LifeSavers, EVP; Pepsico, VP Marketing Planning.  Mr.
      Pulley also spent twelve years at Procter & Gamble where his last
      assignment was starting a Toilet Goods Division in the United Kingdom.
      
              Mr. Pulley has served on several Boards of Directors and
      presently is a Director of The Thorsden Group, Ltd., a software
      provider in Salt Lake City, and Vice Chairman of the Henry's Fork
      Foundation, a non-profit organization concerned with proper watershed
      stewardship.  Mr. Pulley holds a B.S. from the University of Utah and
      an MBA from UCLA.
      
              Dr. Peter V. Sundwall Jr., M.D., age 34, graduated Cum Laude
      from the University of Utah with a degree in Psychology.  He went on
      to earn a Masters degree in Educational Psychology from the University
      of Utah.  Dr. Sundwall received his Doctor of Medicine degree from the
      University of Utah Medical School where he graduated with Honors in
      Family Medicine and received the Golden Cane award for excellence in
      patient care.  Dr. Sundwall completed his Family Practice Residency at
      St. Peters Hospital in Olympia, Washington.  Currently he is
      practicing Family Medicine at Intermountain Health Care in Highland, 
      Utah.
      
              Dr. Darrel J. Saunders, age 65, is a native of Ogden, Utah. 
      He graduated from Weber State University with a D.D.S. degree in 1961.
       Dr. Saunders has practiced dentistry in Ogden, Utah since the 1960s. 
      He was a L.C.D.R. in the Navy Reserve, serving as the Dental Officer
      for 12 years.  Dr. Saunders was a member of the Ogden City Public
      Works Advisory Committee and served twice as a District Chairman for
      the Boy Scouts.  He was a member of the Executive Committee for the
      Lake Bonneville Council of the BSA.  He served on the Ogden City
      Council for 18 years, serving one term as Assistant Mayor and another
      as Chairman of the City Council.  Dr. Saunders also was on the Board
      of Directors for the Utah League of Cities and Towns and was a member
      and Chairman of the Board for the Central Weber Sewer District.  He
      was recently appointed by the mayor of Ogden to serve on the
      Sesquicentennial Advisory Committee to help plan the activities for
      Ogden's sesquicentennial celebration in 2001.
      
              Gordon M. Davis, age 53, is Vice President Administration/CFO
      of the Company.  He received a bachelor's degree in business
      management from the University of Utah and has spent his career in
      banking, finance and management consulting.  Over the past five years
      Mr. Davis was president of Satellite Image Systems, Salt Lake City,
      Utah in 1992 and 1993 and President of EE Multimedia, Inc., Salt Lake
      City, Utah in 1995.  During 1996, Mr. Davis was part owner of a
      solarium company in Salt Lake City, Utah.  During 1997 and 1998, he
      was a consultant to a real estate development project in South America
      and served as an independent business and financial consultant to
      other early stage development ventures, including Linco Industries,
      Inc., which hired him as a full-time employee in August, 1998.
      
              Reed J. Tanner, age 43, is Vice President Distribution,
      Regulatory Compliance of the Company.  From 1993 to May 1996 he was
      supervisor of US Air Force Ammunition Control Point, responsible for
      inventory, location, and logistical support of Air Force non-nuclear
      munitions stockpile.  Mr. Tanner was employed from  June 1996 to
      September 1996 by BDM Corporation, identifying ozone depleting
      chemicals in Air Force maintenance manuals as specified by EPA.  From
      October 1996 to May 1998, Mr. Tanner was subject matter expert for
      technical writing of US Air Force munitions technical manuals for
      Sverdrup Technology, ASG.   From May 98 to present Mr. Tanner is the
      VP Distribution, regulatory compliance at Linco Industries, Inc.
    
     
      Item 6. Exhibits and Reports on Form 8-K
      
              (a)     Exhibits
      
              The following Exhibits are filed herewith pursuant to Rule 601
      of Regulation S-B or are incorporated by reference to previous filings.
              
    Exhibit #        Description
    ----------------------------  
      2.1   Agreement and Plan of Reorganization, dated August 10,
            1998, between the Registratnt, Linco, Linco
            Acquisition Corp. and Edward Walker*
      3.1   Articles of Incorporation**
      3.2   Bylaws**
      3.3   Amendment to Articles of Incorporation changing name
            to First Scientific, Inc. and effecting a forward
            stock split.*
      10.1  Non-qualified Stock Option Agreement with Jerral R. Pulley***
      10.2  Non-qualified Stock Option Agreement with Peter Sundwall, M.D.***
      27    Financial data schedule***
      
      _____________________
      *    Incorporated by reference to the same-numbered exhibit to the
           Form 8-K filed October 2, 1998 by the Company with the
           Securities and Exchange Commission.
      **   Incorporated by reference to the same-numbered exhibit to the
           Company's Regisration Statement on Form 10-SB, file No. 0-24378.
      ***  Filed herewith
      
             
              (b)     Reports on Form 8-K
            
              On October 2, 1998, the Company filed a report on Form 8-K
      regarding the reorganization of the Company.
      
              On October 23, 1998, the Company filed a report on Form 8-KA
      regarding pro forma financial statements as of June 30, 1998.
      
                                        SIGNATURES
      
                Pursuant to the requirements of the Securities and Exchange
      Act of 1934, the Registrant has duly caused this report to be signed
      on its behalf by the undersigned thereunto duly authorized.
      
                                        REGISTRANT
      
                                  FIRST SCIENTIFIC, INC.            
                                        Registrant
      
      
      DATED: November 16 , 1998           
      
      
                                    By: /s/  Douglas R. Warren
                                    -----------------------------
                                     Douglas R. Warren, President 
      
      
      DATED: November 16, 1998
      
      
      
                                    By: /s/ Gordon M. Davis 
                                    -----------------------------                                        
                                    Gordon M. Davis, Vice President
                                    Administration/CFO (Principal
                                    Financial and Accounting Officer)
      

                               

                                                                             \
       


</TABLE>