FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C.

          [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 2000

                                       OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

         For the transition period from ............. to ..............

                        Commission File Number 000-27592


                              SCANTEK MEDICAL INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


                      DELAWARE                            84-1090126
         -------------------------------              -------------------
         (State or other jurisdiction of               (I.R.S. Employer
         incorporation or organization)               Identification No.)


                   321 PALMER ROAD, DENVILLE, NEW JERSEY 07834
                                 (973) 366-5250
             ------------------------------------------------------
             (Address and telephone number, including area code, of
                    registrant's principal executive office)


         ---------------------------------------------------------------
         (Former name, former address and former fiscal year, if changed
                               since last report)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

YES __X__       NO _____

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

     At October 30, 2000 there were 18,889,690 shares of Common Stock, $.001 par
value, outstanding.

<PAGE>



                              SCANTEK MEDICAL INC.

                                      INDEX

                                                                          Page
                                                                          ----
Part I.  Financial Information                                              1

  Item 1.    Financial Statements

             Consolidated Balance Sheets as of
              September 30, 2000 (unaudited) and
              June 30, 2000                                                 2

             Consolidated Statements of Operations
              and Comprehensive (Loss) for the
              Three Months Ended September 30, 2000 and
              1999 (unaudited)                                            3 - 4

             Consolidated Statements of Cash Flows
              for the Three Months Ended September 30,
              2000 and 1999 (unaudited)                                   5 - 6

             Notes to Financial Statements (unaudited)                    7 - 9

  Item 2.    Management's Discussion and Analysis of
              Financial Condition and Results of Operations              10 - 14

Part II. Other Information

  Item 1.         Legal Proceedings                                        15

  Item 6.         Exhibits and Report on Form 8-K                          15

Signatures                                                                 16






<PAGE>


PART I.  Financial Information

     Item 1. Financial Statements

          Certain information and footnote disclosures required under generally
accepted accounting principles have been condensed or omitted from the following
consolidated financial statements pursuant to the rules and regulations of the
Securities and Exchange Commission. It is suggested that the following
consolidated financial statements be read in conjunction with the year-end
consolidated financial statements and notes thereto included in the Company's
Annual Report on Form 10-KSB for the year ended June 30, 2000.

          The results of operations for the three months ended September 30,
2000, are not necessarily indicative of the results to be expected for the
entire fiscal year or for any other period.




                                       -1-


<PAGE>


                      SCANTEK MEDICAL INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>

                                                                      September 30,                June 30,
                                                                           2000                      2000
                                                                  -----------------------   -----------------------
                                                                       (Unaudited)
<S>                                                                    <C>                       <C>
                             ASSETS
Current Assets:
    Cash                                                               $     1,409               $     2,898
    Marketable securities                                                   14,252                    20,735
    Accounts receivable                                                     24,000                    24,000
    Inventories                                                            661,672                   721,315
    Prepaid expenses                                                           245                     8,511
                                                                       -----------               -----------
        Total Current Assets                                               701,578                   777,459
                                                                       -----------               -----------

Property and equipement - net                                            1,473,150                 1,548,016
Other assets - net                                                          84,272                   101,174
                                                                       -----------               -----------

    TOTAL ASSETS                                                       $ 2,259,000               $ 2,426,649
                                                                       ===========               ===========

            LIABILITIES AND STOCKHOLDERS' DEFICIENCY

Current Liabilities:
    Short-term debt                                                    $   864,516               $   860,593
    Current portion of long-term debt                                      850,000                   300,000
    Accounts payable                                                     1,294,444                 1,263,095
    Accrued interest                                                       644,194                   539,333
    Accrued salaries                                                     1,402,472                 1,332,472
    Accrued expenses                                                       615,931                   528,406
                                                                       -----------               -----------
        Total Current Liabilities                                        5,671,557                 4,823,899
                                                                       -----------               -----------

Long-term debt                                                           2,171,109                 2,604,609
                                                                       -----------               -----------
        Total Liabilities                                                7,842,666                 7,428,508
                                                                       -----------               -----------

Commitments and Contingencies

Stockholders' Deficiency:
    Preferred stock, par value $.001
     per share - authorized 5,000,000
     shares; none issued                                                         -                         -
    Common stock, par value $.001
     per share - authorized 45,000,000
     shares; outstanding 18,889,690 and
     18,810,540 shares                                                      18,890                    18,810
    Additional paid-in-capital                                           3,767,263                 3,726,976
    Cumulative other comprehensive loss                                   (287,748)                 (281,265)
    Deficit                                                             (9,082,071)               (8,466,380)
                                                                       -----------               -----------
        Total Stockholders' Deficiency                                  (5,583,666)               (5,001,859)
                                                                       -----------               -----------

    TOTAL LIABILITIES AND STOCKHOLDERS'
     DEFICIENCY                                                        $ 2,259,000               $ 2,426,649
                                                                       ===========               ===========

</TABLE>



                                      -2-
<PAGE>


                      SCANTEK MEDICAL INC. AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                         Three Months Ended September 30,
                                                                       -------------------------------------
                                                                           2000                     1999
                                                                           ----                     ----
<S>                                                                    <C>                       <C>
Revenues:
    Net sales                                                          $         -               $         -
    License fees                                                                 -                   597,500
                                                                       -----------               -----------
                                                                                 -                   597,500
                                                                       -----------               -----------
Costs and expenses:
    Cost of sales                                                          149,860                    85,275
    General and administrative
     expenses                                                              242,951                   433,674
    Research and development                                                70,000                    70,000
                                                                       -----------               -----------
                                                                           462,811                   588,949
                                                                       -----------               -----------
Income (loss) from operations                                             (462,811)                    8,551
                                                                       -----------               -----------

Other income (expense):
    Interest and dividends                                                      14                        73
    Gain on sale of marketable
     securities                                                                  -                    76,644
    Interest expense                                                      (152,894)                 (169,890)
                                                                       -----------               -----------
                                                                          (152,880)                  (93,173)
                                                                       -----------               -----------
Net loss                                                               $  (615,691)              $   (84,622)
                                                                       ===========               ===========

Loss per common share - basic                                          $     (0.03)              $         -
                                                                       ===========               ===========

Loss per common share - diluted                                        $     (0.03)              $         -
                                                                       ===========               ===========


Weighted average number of
 common shares outstanding - basic                                      18,862,867                18,328,420
                                                                       ===========               ===========
Weighted average number of
 common shares outstanding - diluted                                    18,862,867                18,328,420
                                                                       ===========               ===========

</TABLE>


                                                                     (Continued)
                See notes to consolidated financial statements.

                                      -3-
<PAGE>




                      SCANTEK MEDICAL INC. AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                             (Unaudited) (continued)

<TABLE>
<CAPTION>

                                                                         Three Months Ended September 30,
                                                                       -------------------------------------
                                                                          2000                      1999
                                                                          ----                      ----
<S>                                                                    <C>                       <C>
Net loss                                                               $  (615,691)              $   (84,622)

Other comprehensive income (expense) net of income taxes:

      Unrealized gain (loss) on marketable securities                       (6,483)                   30,162
                                                                       -----------               -----------
Comprehensive loss                                                     $  (622,174)              $   (54,460)
                                                                       ===========               ===========

</TABLE>

                 See notes to consolidated financial statements.

                                       -4-
<PAGE>





                      SCANTEK MEDICAL INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                         Three Months Ended September 30,
                                                                       -------------------------------------
                                                                           2000                      1999
                                                                           ----                      ----
<S>                                                                    <C>                       <C>
Cash flows from operating activities:
    Net loss                                                           $  (615,691)              $   (84,622)
Adjustments to reconcile net loss to net cash used in
  operating activities:
    Depreciation and amortization                                           91,768                    91,764
    Net gain on sale of marketable securities                                    -                  (76,644)
    Non-cash officers compensation                                          40,367                    55,943
    Other non-cash items                                                         -                 (211,264)
    Changes in operating assets
     and liabilities                                                       361,644                  (106,848)
                                                                       -----------               -----------
       Net Cash (Used in)
        Operating Activities                                              (121,912)                 (331,671)
                                                                       -----------               -----------

Cash flows from investing activities:
    Proceeds from sale of marketable securities                                  -                   276,009
                                                                       -----------               -----------
Cash flows from financing activities:
    Proceeds from borrowings                                                     -                    60,000
    Proceeds from officer loans                                            121,500                    25,000
    Repayment of officer loans                                                   -                   (10,000)
    Repayment of notes                                                      (1,077)                   (1,326)
    Proceeds from sale of common stock                                           -                    10,000
                                                                       -----------               -----------
       Net Cash Provided by Financing Activities                           120,423                    83,674
                                                                       -----------               -----------

Net increase (decrease) in Cash                                             (1,489)                   28,012

Cash - beginning of period                                                   2,898                     5,516
                                                                       -----------               -----------

Cash - end of period                                                   $     1,409               $    33,528
                                                                       ===========               ===========

</TABLE>

                                                                     (Continued)
                 See notes to consolidated financial statements.



                                       -5-
<PAGE>





                      SCANTEK MEDICAL INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                         Three Months Ended September 30,
                                                                       -------------------------------------
                                                                           2000                      1999
                                                                           ----                      ----
<S>                                                                    <C>                       <C>
Changes in operating assets and liabilities consist of:

    Decrease in inventory                                              $    59,643               $         -
    Decrease in due from licenses                                                -                  (305,000)
    (Increase) decrease in prepaid
     expenses                                                                8,266                      (165)
    (Increase) in other assets                                                   -                    (3,300)
    Increase in accounts payable
     and accrued expenses                                                  293,735                   201,617
                                                                       -----------               -----------
                                                                       $   361,644               $  (106,848)
                                                                       ===========               ===========
Supplementary information:
    Cash paid during the year for:
       Interest                                                        $       533               $    30,783
                                                                       ===========               ===========
       Income Taxes                                                    $       200               $         -
                                                                       ===========               ===========
Non-cash investing activities:
    Acquisition of investment in connection with
     licensing agreement                                               $         -               $  (247,500)
                                                                       ===========               ===========
     Unrealized gain (loss) on
      marketable securities                                            $    (6,483)              $    30,162
                                                                       ===========               ===========

Non-cash financing activities:
     Conversion of accounts payable
      and accrued expenses to common
      stock                                                            $         -               $    20,312
                                                                       ===========               ===========
     Conversion of accounts payable and accrued
       expenses to stock options and warrants                          $         -               $    15,924
                                                                       ===========               ===========
    Common stock issued to officers for
     loan financing                                                    $    40,367               $    55,943
                                                                       ===========               ===========

</TABLE>

                                                                     (Continued)
                 See notes to consolidated financial statements.



                                       -6-
<PAGE>


                      SCANTEK MEDICAL INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    Organization

    The consolidated balance sheet as of September 30, 2000, and the
    consolidated statements of operations and comprehensive (loss) and cash
    flows for the three months ended September 30, 2000 and 1999 have been
    prepared by the Company and are unaudited. In the opinion of management, all
    adjustments (consisting of normal recurring adjustments) necessary to
    present fairly the financial position, results of operations and
    comprehensive (loss) and cash flows for all periods presented have been
    made. Certain items in the September 30, 1999 financial statements have been
    reclassified to conform to September 30, 2000 classifications. The
    information for June 30, 2000 was derived from audited financial statements.

    Basis of Presentation

    The accompanying consolidated financial statements have been prepared on a
    going concern basis, which contemplates the realization of assets and the
    satisfaction of liabilities in the normal course of business.

    The Company has experienced losses during and subsequent to its development
    stage. Losses and negative cash flows from operations have continued in the
    current fiscal year and subsequent to June 30, 2000. As of September 30,
    2000, the Company has a working capital deficit of approximately $5.0
    million.

    The activities of the Company are being financed through the sale of its
    common stock and debt securities. In October 2000, the Company sold 36% of
    its Brazilian subsidiary to a Brazilian investment firm for $2 million. The
    Company will reinvest the proceeds in Scantek Medical do Brasil Ltda. The
    Company's continued existence is dependent upon its ability to obtain needed
    working capital through additional equity and/or debt financing, and the
    commercial acceptability of the BreastCare(TM)/BreastAlert(TM) to create
    sales that will help the Company achieve a profitable level of operations.
    However, there is no assurance that additional capital will be obtained or
    the BreastCare(TM)/BreastAlert(TM) will be commercially successful. This
    raises substantial doubt about the ability of the Company to continue as a
    going concern.

    The financial statements do not include any adjustments relating to the
    recoverability and classification of recorded asset amounts or the amounts
    and classifications of liabilities that might be necessary should the
    Company be unable to continue as a going concern.

    Earnings (Loss) Per Common Share

    Basic and diluted loss per common share are computed by dividing net loss by
    the weighted average number of common shares outstanding during the year.
    Potential common shares used in computing diluted earnings per share relate
    to stock options and warrants which, if exercised, would have a dilutive
    effect on earnings per share. During the three months ended September 30,
    2000 and 1999, potential common shares were not used in the computation of
    diluted loss per common share, as their effect would be antidilutive.


                                       -7-

<PAGE>

2. SALE OF SUBSIDIARY

    On October 1, 2000, the Company and its Brazilian subsidiary executed an
    agreement with a Brazilian investment group. Scantek Medical Inc. sold 36%
    of its equity in Scantek do Brasil Ltda for $2 million ($2,000,000) dollars
    to such Brazilian investment group. The Company will reinvest the total
    proceeds in Scantek Medical do Brasil Ltda.

    The new partner will play a major roll in expediting the Brazilian
    operations, including the construction of the new manufacturing facility,
    expanding Scantek Medical do Brasil Ltda's operations, marketing and sales.
    The $2,000,000 will be funded in various stages and milestones until the
    Sudene Federal Funding from the government is completed.

    The agreement by the Brazilian investment group to purchase shares of
    Scantek Medical Inc. common stock, as previously announced, has been
    terminated.

3. SEGMENTS - GEOGRAPHIC AREAS

    The Company does not have reportable operating segments as defined in the
    Statement of Financial Accounting Standards No. 131, "Disclosure about
    Segments of an Enterprise and Related Information". The method for
    attributing revenues to individual countries is based on the destination to
    which finished goods are shipped. The Company operates facilities in the
    United States and South America. Revenues include license fees received by
    the Company in connection with various arrangements contracted throughout
    the world.


                                                  Three Months Ended
                                                     September 30,
                                            --------------------------------

                                                 2000               1999
                                                 ----               ----

         Total Revenues:
                  United States             $      -             $   597,500

         Less: intergeographic revenue             -                   -
                                            ---------------      -----------
                                            $      -             $   597,500
                                            ===============      ===========

         Income (loss) from operations:
                  United States             $      (350,124)     $   160,427
                  South America                    (112,687)        (151,876)
                                            ---------------      -----------
                                            $      (462,811)     $     8,551
                                            ===============      ===========



                                       -8-

<PAGE>



3. NEW ACCOUNTING PRONOUNCEMENTS

    In June 1998, the Financial Accounting Standards Board (FASB)issued
    Statement of Financial Accounting Standards No. 133 "Accounting for
    Derivative Instruments and Hedging Activities"(SFAS 133). This standard was
    amended by Statement of Financial Accounting Standards No. 137 "Accounting
    for Derivative Instruments and Hedging Activities-Deferral of the Effective
    Date of FASB Statement No. 133" and changed the effective date for SFAS 133
    to all fiscal quarters of fiscal years beginning after June 15, 2000.In June
    2000, the FASB issued SFAS 138, "Accounting for Certain Derivative
    Instruments and Certain Hedging Activities, ("SFAS 133"). SFAS 133 and 138
    requires that all derivative instruments be recorded on the balance sheet at
    their respective fair values. Changes in the fair value of derivatives are
    recorded each period in current earnings or other comprehensive income,
    depending on the designation of the hedge transaction. For fair value hedge
    transactions in which the Company is hedging changes in the fair value of
    assets or liabilities, changes in the fair value of the derivative
    instrument will generally be offset by changes in the hedged item's fair
    value. For cash flow hedge transactions in which the Company is hedging the
    variability of cash flows related to a variable rate asset, liability or
    forecasted transaction, changes in the fair value of the derivative
    instrument will be reported in other comprehensive income. The gains and
    losses on the derivative instrument that are reported in other comprehensive
    income will be recognized in earnings in the periods in which earnings are
    impacted by the variability of the cash flows of the hedged item. The
    Company will adopt SFAS 133 and 138 in the first quarter of 2001 and does
    not expect such adoption to have a material effect on the Company's
    consolidated results of operations, financial position or cash flows.

    In December 1999, the Securities and Exchange Commission (SEC) issued Staff
    Accounting Bulletin No. 101 ("SAB 101"), "Revenue Recognition in Financial
    Statements". SAB 101 summarizes certain of the SEC's views in applying
    generally accepted accounting principles to revenue recognition in financial
    statements. The Company adopted the provisions of SAB 101 during the fourth
    quarter ending December 31, 2000 and it is not expected to have a material
    impact on the Company's consolidated results of operations, financial
    position or cash flows.


                                       -9-


<PAGE>


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

    The Company's quarterly and annual operating results are affected by a wide
    variety of factors that could materially and adversely affect revenues and
    profitability, including competition from other suppliers; changes in the
    regulatory and trade environment; changes in consumer preferences and
    spending habits; the inability to successfully manage growth; seasonality;
    the ability to introduce and the timing of the introduction of new products
    and the inability to obtain adequate supplies or materials at acceptable
    prices. As a result of these and other factors, the Company may experience
    material fluctuations in future operating results on a quarterly or annual
    basis, which could materially and adversely affect its business, financial
    condition, operating results, and stock price. Furthermore, this document
    and other documents filed by the Company with the Securities and Exchange
    Commission (the "SEC") contain certain forward-looking statements under the
    Private Securities Litigation Reform Act of 1995 with respect to the
    business of the Company. These forward-looking statements are subject to
    certain risks and uncertainties, including those mentioned above, and those
    detailed in the Company's Annual Report on Form 10-KSB for the year ended
    June 30, 2000, which may cause actual results to differ significantly from
    these forward-looking statements. The Company undertakes no obligation to
    publicly release the results of any revisions to these forward-looking
    statements which may be necessary to reflect events or circumstances after
    the date hereof or to reflect the occurrence of unanticipated events. An
    investment in the Company involves various risks, including those mentioned
    above and those which are detailed from time to time in the Company's SEC
    filings.

    Results of Operations

    The following table sets forth for the periods indicated, the percentage
    increase or (decrease) of certain items included in the Company's
    consolidated statement of operations:

                                         % Increase (Decrease) from Prior Period
                                         ---------------------------------------
                                                    Three Months Ended
                                                    September 30, 2000
                                                    compared with three
                                                       months ended
                                                    September 30, 1999
                                                    ------------------

       Sales (1)                                             -  %
       License fee revenue                                (100.0)
       Cost of sales                                        75.7
       General and administrative expense                  (44.0)
       Research and development                              -
       Interest expense                                    (10.0)
       Net earnings (loss) (1)

       ----------
       (1) Percentage not meaningful




                                      -10-


<PAGE>



                    Three Months Ended September 30,2000 vs.
                      Three Months Ended September 30,1999


Revenues

    There were no sales during the three months ending September 30, 2000 and
    1999 as the Company is re-focusing its South American marketing strategy in
    Brazil. The Company will ship the BreastCare(TM)/BreastAlert(TM) from the
    United States during the fourth quarter of calendar 2000 to South America
    until the manufacturing facility in Brazil is completed and operational.

    License fee revenue decreased to $-0- during the three months ended
    September 30, 2000 from $597,500 for the three months ended September 30,
    1999 as the Company recognized license fees from Nugard Healthcare Ltd. from
    the preceding year.

Cost of Sales

    Cost of sales increased to $149,860 during the three months ended September
    30, 2000 from $85,275 during the three months ended September 30, 1999
    primarily due to an inventory write off of $59,643 for expired product at
    the South American location.

General and Administrative Expenses

    General and administrative expenses decreased to $242,951 during the three
    month period ending September 30, 2000 from $433,674 the three months ended
    September 30, 1999. This decrease is primarily due to decreases in
    consulting services in the Company's South American subsidiary in Uruguay.

Interest Expense

    Interest expense was $152,894 for the three months ended September 30, 2000
    compared to $169,890 for the three months ended September 30, 1999. The 10%
    decrease was attributable to the decrease on the Company's long-term debt.

Research and Development Expense

    Research and development expense of $70,000 stayed the same for the three
    months ended September 30, 2000 and 1999. Salaries incurred by the Company
    in the experimental area of development of its product remained constant.



                                      -11-

<PAGE>


Liquidity And Capital Resources

    The Company's need for funds has increased from period to period, as it has
    incurred expenses for among other things, research and development;
    applications for and maintenance of domestic and international trademarks
    and international patent protection; licensing and pre-marketing activities;
    and, attempts to raise the necessary capital to expand the Company's
    production capacity. Since inception, the Company has funded these needs
    through private placements of its equity and debt securities and advances
    from the Company's President, Chief Executive Officer and major shareholder.
    The Company has entered into various license agreements that have raised
    additional funds. In addition, the Company's auditors' report for the year
    ended June 30, 2000 dated August 17, 2000, expressed an opinion as to the
    Company continuing as a going concern.

    During September 1998, the Company commenced the sale of its
    BreastCare(TM)/BreastAlert(TM) in Brazil, Uruguay and Paraguay through its
    South American licensee. During February 1999, the Brazilian economy
    declined and the Brazilian currency lost fifty (50%) percent of its value.
    Brazil increased the import and value - added tax from approximately twenty
    - one (21%) percent in December 1998 to approximately seventy - four (74%)
    percent in February 1999. Due to these factors, sales substantially
    decreased in Brazil, which represents approximately eighty (80%) percent of
    the Company's expected revenue. The Company is establishing a production
    facility in Brazil. This will eliminate the high value - added tax and
    hopefully will be able to facilitate sales. The Company terminated its
    license agreement with its former licensee in South America but key
    personnel for the former licensee have joined Scantek. The Company's
    Brazilian subsidiary plans to manufacture, market and distribute the
    BreastCare(TM)/BreastAlert(TM) in Brazil and export to other South American
    countries.

    The Company commenced its distribution operations in South America during
    the second half of calendar 2000, while shipments to Ireland commenced in
    October 1999 for test marketing and shipments to other parts of Europe will
    commence during the first half of calendar 2001. However, until cash flow
    generated from the shipment of the BreastCare(TM) device is sufficient to
    support the Company's operations, the Company needs financing to fund its
    current overhead and various capital requirements. As of September 30, 2000,
    the Company borrowed $1,644,715 from unaffiliated third parties. These loans
    are payable by the Company on various dates through December 2001. In
    addition, as of November 1, 2000, the Company's President advanced the
    Company an additional $116,500 since July 2000. These loans have supported
    the Company through the prior fiscal year and the current fiscal year, and
    the Company expects the cash flow from sales commencing in the first quarter
    of calendar 2001 to cover the operations of the Company in calendar 2001 and
    2002, providing the Company is successful in raising additional capital to
    support the operations until cash flows generated for the sales of the
    BreastCare(TM)/BreastAlert(TM) commences.

    As previously noted, the Company terminated its license agreement with its
    South American licensee. The Company will manufacture, market and distribute
    the BreastCare(TM)/BreastAlert(TM) throughout South America through the
    Company's South American subsidiaries.

    In July 1999, the Company, through its Brazilian subsidiary Scantek Medical
    do Brasil Ltda, executed a letter of intent with another entity to create a
    joint venture with exclusive rights to import, manufacture, market and
    distribute the BreastCare(TM)/BreastAlert(TM) in Brazil. After completing
    its due diligence, the Company terminated the letter of intent.

                                      -12-

<PAGE>


    Through its Brazilian subsidiary, the Company signed an agreement with the
    State of Pernambuco in December 1999. The State of Pernambuco has the second
    largest concentration of hospitals in Brazil offering quality care and
    management believes that the location is also the most desirable for
    production, shipping, financing and tax incentives. The Company is
    establishing a 2,550 square meter manufacturing facility in Recife,
    Pernambuco at the new port of Suape. The Company has broken ground, and
    anticipates construction to be completed by the first half of calendar 2001.
    The Company will ship the production equipment for arrival by the time
    construction is complete.

    The State of Penambuco has offered various incentives, including acreage, at
    a reduced price, to build the facility, a 75% reduction in taxes through
    2013, free shipping outside the state, and in connection with the federal
    programs offered in Northeast Brazil, financing programs to help fund the
    operations and capital improvements.

    The Company plans to ship the BreastCare(TM)/BreastAlert(TM) from the United
    States until the production facility in Brazil is operational.

    On October 1, 2000, the Company and its Brazilian subsidiary executed an
    agreement with a Brazilian investment group. Scantek Medical Inc. will sell
    36% of its equity in Scantek Medical do Brasil Ltda for two million
    ($2,000,000) dollars to the Brazilian investment group. The Company will
    reinvest the total proceeds in Scantek Medical do Brasil Ltda.

    Management believes that the new partner will play a major roll in
    expediting the Brazilian operations, including the construction of the new
    manufacturing facility, expanding Scantek Medical do Brasil Ltda's
    operations, marketing and sales. The $2,000,000 will be funded in various
    stages and milestones until the Sudene Federal Funding from the government
    is completed.

    The agreement by the Brazilian investment group to purchase shares of
    Scantek Medical Inc. common stock, as previously announced, has been
    terminated.

    On July 14, 1999, the Company granted an exclusive license to NuGard
    HealthCare Ltd. ("NuGard"), an Irish Company; to market Scantek's
    BreastCare(TM)/BreastAlert(TM) in Ireland and the United Kingdom. Pursuant
    to the licensing agreement, NuGard will pay a non-refundable licensing fee
    of $350,000 in various stages, of which $59,000 was received as of June 30,
    2000, and the Company received common shares equivalent to fifteen (15%)
    percent of NuGard's total outstanding common shares. The purchase price will
    range from $10 to $15 per unit - FOB US. The licensing agreement requires
    minimum purchases of 5,000 units a month and payments of licensing fees
    which have been postponed until the license agreement can be renegotiated.

    The Company's working capital and capital requirements will depend on
    numerous factors, including the level of resources that the Company devotes
    to the purchase of manufacturing equipment to support start-up production
    and to the marketing aspects of its products. The Company intends to
    construct production and/or assembly centers abroad to manufacture, market
    and sell the BreastCare(TM)/BreastAlert(TM) in the international market. The
    Company entered into an agreement with Zigmed Inc., pursuant to which Zigmed
    Inc. will manufacture the sensor production equipment needed for
    manufacturing of the BreastCare(TM)/BreastAlert(TM) device for the contract
    price of $1,850,680. The Company, as of September 30, 2000, has advanced
    Zigmed Inc. payments of $1,097,904 and issued Zigmed Inc. 100,000 shares of
    the Company's common stock (valued at $1.00 per share) against the contract
    price. The balance of $752,776 will be paid when the Company raises the
    additional capital.




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<PAGE>


    The Company's success is dependent on raising sufficient capital to
    establish a fully operable production and assembly facility to manufacture
    the BreastCare(TM)/BreastAlert(TM) for the international market. The Company
    believes the BreastCare(TM)/BreastAlert(TM) will be commercially accepted
    throughout the international market. The Company does not have all the
    financing in place at this time, nor may it ever, to meet these objectives.

NEW ACCOUNTING PRONOUNCEMENTS

    In June 1998, the Financial Accounting Standards Board (FASB)issued
    Statement of Financial Accounting Standards No. 133 "Accounting for
    Derivative Instruments and Hedging Activities"(SFAS 133). This standard was
    amended by Statement of Financial Accounting Standards No. 137 "Accounting
    for Derivative Instruments and Hedging Activities-Deferral of the Effective
    Date of FASB Statement No. 133" and changed the effective date for SFAS 133
    to all fiscal quarters of fiscal years beginning after June 15, 2000.In June
    2000, the FASB issued SFAS 138, "Accounting for Certain Derivative
    Instruments and Certain Hedging Activities, ("SFAS 133"). SFAS 133 and 138
    requires that all derivative instruments be recorded on the balance sheet at
    their respective fair values. Changes in the fair value of derivatives are
    recorded each period in current earnings or other comprehensive income,
    depending on the designation of the hedge transaction. For fair value hedge
    transactions in which the Company is hedging changes in the fair value of
    assets or liabilities, changes in the fair value of the derivative
    instrument will generally be offset by changes in the hedged item's fair
    value. For cash flow hedge transactions in which the Company is hedging the
    variability of cash flows related to a variable rate asset, liability or
    forecasted transaction, changes in the fair value of the derivative
    instrument will be reported in other comprehensive income. The gains and
    losses on the derivative instrument that are reported in other comprehensive
    income will be recognized in earnings in the periods in which earnings are
    impacted by the variability of the cash flows of the hedged item. The
    Company will adopt SFAS 133 and 138 in the first quarter of 2001 and does
    not expect such adoption to have a material effect on the Company's
    consolidated results of operations, financial position or cash flows.

    In December 1999, the Securities and Exchange Commission (SEC) issued Staff
    Accounting Bulletin No. 101 ("SAB 101"), "Revenue Recognition in Financial
    Statements". SAB 101 summarizes certain of the SEC's views in applying
    generally accepted accounting principles to revenue recognition in financial
    statements. The Company adopted the provisions of SAB 101 during the fourth
    quarter ending December 31, 2000 and it is not expected to have a material
    impact on the Company's consolidated results of operations, financial
    position or cash flows.





                                      -14-



<PAGE>


PART II.  Other Information

   Item 1. Legal Proceedings

      The Company is not presently subject to any legal proceedings which are
      material to the consolidated results of operations or financial condition
      of the Company.

   Item 6. Exhibits and Reports on Form 8-K

      (a) Exhibits: Exhibit 27.1 Financial Data Schedule.

      (b) There were no Current Reports on Form 8-K filed by the registrant
          during the quarter ended September 30, 2000.



                                      -15-


<PAGE>


                                   SIGNATURES
                                   ----------

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



                                          SCANTEK MEDICAL INC.



                                          By: /s/ ZSIGMOND SAGI
                                              ----------------------------------
                                              Zsigmond Sagi, President and
                                              Chief Financial Officer



Dated:  November 13, 2000






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