UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, D. C.
                                       
                                       
                                FORM 10-QSB/A
                               AMENDMENT NO. 1
                                       
                                       
              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) 
      

      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.
      
             20,169,770 Shares of common stock, $.001 par value
      
    
     
      
                                  FIRST SCIENTIFIC, INC.
                                      FORM 10-QSB/A
                                     AMENDMENT NO. 1
      
                             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 the Financial Statements (Unaudited)                    6
      
      Item 2. Management's Discussion and Analysis of Financial 
              Condition and Results of Operations                          10
      
           
                               PART II - OTHER INFORMATION
      
      Item 1. Legal Proceedings                                            13

      Item 2. Changes in Securities                                        13
      
      Item 5. Other Information                                            14
      
      Item 6. Exhibits and Reports on Form 8-K                             16
      
      Signatures                                                            18
      

                                            -2-
<PAGE>

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements
      
                                  FIRST SCIENTIFIC, INC.
                            (FORMERLY LINCO INDUSTRIES, INC.)
                             (A Development Stage Enterprise)
                          CONDENSED CONSOLIDATED BALANCE SHEETS
                                       (UNAUDITED)
                                             
      
                                                   September 30,  December 31,
                                                        1998         1997
                                                     ----------    ----------
                                          ASSETS
      
      Current Assets
       Cash                                          $  744,713   $    7,938
       Trade receivables                                 24,161        8,425
       Stock subscriptions receivable                 1,015,963           - 
       Inventory                                         21,998       29,881
       Prepaid expenses                                  14,000        2,934
                                                     ----------   ----------
        Total Current Assets                          1,820,835       49,178
       
      Property and Equipment, Net                         8,001          618
      
      Purchased Technology, Net                         131,250           - 
                                                     ----------   ----------
      Total Assets                                   
                                                     $1,960,086   $   49,796
                                                     ==========   ==========
      
                      LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
      
      Current Liabilities
       Accounts payable                              $   15,584   $    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                       149,161      298,074
                                                     ----------   ----------
      Long-Term Notes Payable                                -        74,600
                                                     ----------   ----------
      Stockholders' Equity (Deficit)
       Preferred stock 1,000,000 shares authorized,  
        no shares outstanding                                -            - 
       Common stock $.001 par value, 50,000,000
        shares authorized; issued and outstanding:
        20,169,770 shares at September 30, 1998
        and 10,467,581 shares at December 31, 1997       20,170      10,468
       Additional paid-in capital                     6,429,114     148,887
       Unearned compensation                           (153,457)         - 
       Deficit accumulated during the development
        stage                                        (4,484,902)   (482,233)
                                                     ----------   ---------
       
        Total Stockholders' Equity (Deficit)          1,810,925    (322,878)
                                                     ----------   ---------
      Total Liabilities and Stockholders' 
       Equity (Deficit)                              $1,960,086   $  49,796
                                                     ==========   =========
      
 The accompanying notes are an integral part of these financial statements.

                                       -3-
<PAGE>
            
      
                            FIRST SCIENTIFIC, INC.
                      (FORMERLY LINCO INDUSTRIES, INC.)
                       (A Development Stage Enterprise)
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (UNAUDITED)

<TABLE>
<CAPTION>                                                                            Cumulative From
                                                                                      April 30, 1990
                                  For the Three Months        For the Nine Months   (Date of Inception)
                                   Ended September 30,         Ended September 30,        Through                           
                                -------------------------   -------------------------  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         3,367        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                        162,083        16,918       210,169        37,680       476,002
                                                                         
   Interest expense                   5,706         8,029        21,751        17,163       115,600
                                -----------   -----------   -----------   -----------   -----------
   
    Total Operating Expenses      3,951,165        33,512     4,027,879        67,307     4,563,303
                                -----------   -----------   -----------   -----------   -----------         
   
Net Loss                        $(3,928,688)  $   (31,753)  $(4,002,669)  $   (64,185)  $ (4,484,902)
                                ===========   ===========   ===========   ===========   ============
Basic and Diluted Loss Per 
  Common Share                  $     (0.37)  $     (0.01)  $     (0.39)  $     (0.01)  $      (0.45)
                                ===========   ===========   ===========   ===========   ============
Weighted Average Number 
 of  Shares Used in Per-Share 
 Calculation                     10,570,842    10,467,581    10,317,667    10,467,581     10,017,375
                                ===========   ===========   ===========   ===========   ============

<FN>
  The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>                             -4-
<PAGE>




                            FIRST SCIENTIFIC, INC.
                      (FORMERLY LINCO INDUSTRIES, INC.)
                       (A Development Stage Enterprise)
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)
     <TABLE>                                
     <CAPTION>
                           
                                                                           Cumulative From
                                                 For the Nine Months Ended April 30, 1990
                                                    Ended September 30,        Through
                                                 -------------------------  September 30,
                                                     1998         1997          1998
                                                 -----------   -----------   -----------                              
<S>                                             <C>           <C>           <C>
Cash Flows From Operating Activities
   Net loss                                      $(4,002,669)  $   (64,183)  $ (4,484,902)
   Adjustments to reconcile net loss to
      net cash used in operating  activities:
      Depreciation and amortization                    3,917            77         4,020
      Common stock issued for services                    -             -         74,355
      Common stock issued for purchased 
       research and development                    3,766,440            -      3,766,440
      Compensation from stock options granted         20,737            -         20,737
      Changes in operating 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)
         Customer deposits                            33,750            -         33,750
         Accounts payable                             13,186         1,609        15,585
         Accrued interest payable                     (5,642)       12,548        17,529
         Deferred compensation                        28,000         2,139       111,877
                                                 -----------   -----------   -----------                         
      Net Cash Used in Operating Activities         (161,201)      (27,938)     (500,769)
                                                 -----------   -----------   -----------
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 Provided by (Used in) 
         Investing Activities                        295,297          (721)      294,576
                                                 -----------   -----------   -----------

Cash Flows From Financing Activities
   Proceeds from borrowing                            61,050        17,179       255,975
   Principal payments on notes payable              (117,338)           -       (155,975)
   Proceeds from loans from stockholders              19,930            -        158,934
   Principal payments on loans from stockholder      (28,403)      (15,850)      (45,468)
   Proceeds from issuance of common stock            667,440            -        737,440     
                                                 -----------   -----------   -----------

      Net Cash Provided by  Financing Activities     602,679         1,329       950,906
                                                 -----------   -----------   -----------

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

<FN>
  The accompanying notes are an integral part of these financial statements.
 </FN>
 </TABLE>                       -5-
 <PAGE>



                                     FIRST SCIENTIFIC, INC.
                      NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                          (UNAUDITED)
         
         
         NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
         
         Principles of Consolidation -- As a result of the reorganization
         agreement between Linco Industries, Inc. and SPPS Financial
         Corporation on September 15, 1998, the reporting entity for
         accounting purposes changed from SPPS Financial Corporation to
         Linco Industries, Inc. ("Linco"). Accordingly, the accompanying
         condensed  consolidated financial statements include the accounts
         and transactions of Linco for all periods presented and the
         accounts and transactions of SPPS Financial Corporation from
         September 15, 1998. Intercompany accounts and transactions have
         been eliminated in consolidation. The consolidated entities are
         collectively referred to herein as the Company.
         
         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 disclosures
         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 Linco
         financial statements and notes thereto included 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.
         
         Reorganization -- On September 15, 1998, 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 shares of 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 of 3,333,330 common
         shares to the SPPS shareholders. Those shares were recorded at
         zero. The accompanying financial statements have been restated for
         all periods presented for the effects of the  stock split from the
         reorganization of Linco. In connection with the reorganization,
         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 weighted-average 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 1,050,000
         potentially issuable common shares which were excluded from the
         calculation of diluted loss per common share for the three and nine
         months ended September 30, 1998 and none for the three and nine
         months ended September 30, 1997. 
         
         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 two non-alcohol based antibacterial sanitizing formulations that
         remove bacteria while moisturizing the skin and a topical rash
         prevention and treatment formulation that cleanses and moisturizes
         the skin for treatment of skin rashes caused by incontinence and
         other irritations.
         
         The acquired technology was valued and recorded at $3,901,440 based
         upon the fair value of the shares of common stock issued. Since there
         has been no public market of the Company's common stock, the fair
         value of the common stock was determined to be $0.75 per share based
         upon the price at which stock was issued for cash at the time the
         technology was transferred. 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 --During the nine months ended
         September 30, 1998 and 1997, the Company paid $44,881 and $4,615
         for interest.
                                       
         Noncash Investing and Financing Activities --In contemplation of
         the reorganization, the Company received an advance in the amount
         of $50,000 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, related party notes payable in the amount of
         $90,000 were converted into additional paid-in capital without the
         issuance of additional shares.
                                       
         On September 15, 1998, the Company issued 5,201,920 shares of
         common stock in exchange for the rights to technology valued at
         $3,901,440 and the cancellation of a license and royalty agreement
         central to the Company's product.
                                       
         On September 15, 1998, for accounting purposes,  the Company was
         deemed to have issued 3,333,330 common shares, valued at $0, to the
         shareholders of SPPS in connection with the reverse acquisition of
         SPPS. No liabilities were assumed in connection with this acquisition.
                                       
         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. 
                                       
         On September 30, 1998, the Company issued 403,796 shares of common
         stock in exchange for $254,387 of marketable securities, net of
         deferred tax.
                                       
         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 December 31, 1997, the Company had
         notes payable to banks in the amount of $156,288. The balances of
         all these notes were paid in full during September 1998.
                                       
         NOTE 5-LEASE COMMITMENTS
                                       
         During the fourth quarter of 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                  Capital      Operating
                  December 31,                       Leases        Leases
               -------------------                  --------      ---------
                       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 May 1998, the Company issued 21,343 shares of common stock
         to a third party in exchange for $6,249 in cash at $0.29 per share.
         During July of 1998, the Company issued 87,744 shares of common
         stock to a third party in exchange for $30,000 in cash at $0.34 per
         share. 
         
         During June 1998, the Company redeemed 1,778,588 common shares from
         Dr. Ed Walker in connection with termination of his service on the 
	   Board of Directors.
         
         On September 15, 1998, the Company issued 5,201,920 shares of
         common stock to Dr. Ed Walker for the transfer of all rights and
         ownership of technology relating to three scientific formulations
         Valued at $3,901,440. Also, for accounting purposes, the Company
         was deemed to have issued 3,333,330 shares of common stock, valued
         at $0, to the shareholders of SPPS.
         
         During September 1998, the Company issued (or received
         subscriptions for) 2,666,659 shares of common stock for
         approximately $1,951,540, or $0.73 per share, received or
         receivable in cash and marketable securities, net of tax. The
         capital contribution was in connection with the reorganization
         agreement which allowed the transfer to be tax free to the
         investors. The investors' tax basis in the contributed marketable
         securities became the Company's tax basis; accordingly, deferred
         income tax of $48,460 was recognized 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
         $885,577 in cash and marketable securities, net of tax, and the
         conversion of a $50,000 pre-acquisition advance. The marketable
         securities received were immediately sold at no gain or loss. An
         additional  $1,015,963 has been reflected as a stock subscription
         receivable at September 30, 1998, which was subsequently received
         and the related 1,354,529 common shares were subsequently issued.
         
         During the third quarter of 1998, the Company issued 169,781 shares
         of common stock 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
         amount  will be recognized by the Company as the options vest with
         $20,737 and $69,401 being charged to operations during the third
         and fourth quarters of 1998, respectively, and $61,936 and $22,120
         being charged to operations during the years ending December 31,
         1999 and 2000, respectively.
         
         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 a privately held enterprise.
         
         NOTE 8-SUBSEQUENT EVENTS
         
         Subsequent to September 30, 1998, $1,015,963 in cash and marketable
         were received in satisfaction of 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 to compensation
         arrangements for consulting services from two directors. The
         compensation arrangements are for a one-year period and require
         cash compensation payments of $17,000 per month in the aggregate.
         Services under these agreements began during August 1998.
         Accordingly, compensation expense in the amount of $20,000 related
         to these arrangements has been charged to third quarter operations
         in the accompanying financial statements. 


         Item 2.  Managements's Discussion and Analysis of Financial
         Condition and Results 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 included in 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 a development stage company and, since inception,
         has incurred losses from operations. As of September 30, 1998 the
         Company has had cumulative net losses since inception totaling
         $4,484,902. 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 consists of two moisturizing
         antibacterial sanitizing formulations that remove 99.69% to 99.99%
         of bacteria from the skin without the harsh effects of alcohol or
         iodine (these products 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
         treatment against skin rashes caused by incontinence and other
         irritations (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. compliant 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 $1,671,673 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. The Company had an accumulated deficit
         of $4,484,902 at September 30, 1998, most of which had been funded
         out of proceeds received from the issuance of stock, including
         $3,766,440 for acquired research and development, and from
         incurring liabilities.
               
         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 June 1998, Company revenues were generated from sporadic
         sales of a Linseed oil based soap product and a rash prevention
         product created for a distributor who sells this product under a
         private label to an over-the-counter customer. First Scientific may
         continue to sell product to this distributor, but does not expect
         the revenue to be significant  from this relationship.  In June
         1998, the Company entered into a private label supply agreement
         with a multinational distributor of medical and healthcare
         products.  This private label transaction is for individual
         antibacterial wipes that the customer will market globally. The
         manufacturing of this product has not been completed as of
         September 30, 1998, but is scheduled for January 1999; 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 $210,169 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 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 $16,936 and $29,519 for the
         three and nine months ended September 30, 1998, before acquired
         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 acquired research and development was for the transfer of all
         rights and ownership of technology relating to three scientific
         formulations. 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 $950,906 in net proceeds
         through financing activities from inception through September 1998
         of which $602,440 was generated during the nine months ended
         September 30, 1998. The Company used net cash in operating
         activities of $161,201 during the nine months ended September 30,
         1998. Investing activities provided $295,297 net cash during the
         nine months ended September 30, 1998 primarily from the sale of
         securities. Those securities were received in exchange for common
         stock and were sold immediately upon their receipt. As of September
         30, 1998, the Company's liabilities totaled $149,162. The Company
         had working capital as of September 30, 1998 of $1,671,673.
               
          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, F.D.A. testing
         requirements, 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") wherein it raised 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,  $935,577,
         net of deferred tax of $48,460, 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 exchanged 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 66,667 shares of 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 were recorded at $0.  The
         recorded value of the contributed technology is based upon the
         price at which common shares were issued for cash at the time the
         technology was transferred. The value of the acquired technology
         was allocated $135,000 to purchased technology and $3,766,440 to
         research and development expense. 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 from the reorganization of Linco
         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 
                                                     Operations
               
                  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 the University of Nebraska 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 the Company, which hired him as a full-time
         employee in August, 1998.
               
                  Reed J. Tanner, age 43, is Vice President of Operations
         for 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 1998, to present Mr. Tanner
         has overseen distribution and regulatory compliance at the Company.
             
              
         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 Registrant, 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 Registration Statement on Form 10-SB, file
                     No. 0-24378.
             ***     Incorporated by reference to the same numbered exhibit
                     to the Form 10-Q 
                     filed November 16, 1998 by the Company with the
                     Securities and Exchange Commission
             ****    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-K/A
             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:      December 11, 1998
                                          By:  /s/  Douglas R. Warren
                                              ----------------------------
                                              Douglas R. Warren, President
               
         DATED:      December 11, 1998
                                          By: /s/ Gordon M. Davis
                                             ----------------------------- 
                                             Gordon M. Davis, Vice President
                                             Administration/CFO (Principal
                                             Financial and Accounting Officer)