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 March 31, 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 April 30, 2000 there were 18,362,170 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
            March 31, 2000 (unaudited) and
            June 30, 1999 ..............................................    2

           Consolidated Statements of Operations
            and Comprehensive (Loss) for the
            nine and three Months Ended March
            31, 2000 and 1999 (unaudited) ..............................  3 - 4

           Consolidated Statements of Cash Flows
            for the Nine Months Ended March 31,
            2000 and 1999 (unaudited) ..................................  5 - 6

           Notes to Consolidated Financial Statements (unaudited) ......  7 - 8

  Item 2.  Management's Discussion and Analysis of
            Financial Condition and Results of Operations ..............  9 - 14

Part II. Other Information

  Item 1.  Legal Proceedings ...........................................    15

  Item 6.  Exhibits and Reports 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, 1999.

          The results of operations for the nine months ended March 31, 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
                                   (UNAUDITED)

                                     ASSETS

                                                 March 31,            June 30,
                                                -----------          ----------
                                                   2000                 1999
                                                -----------          ----------
                                                (Unaudited)
Current Assets:
  Cash .......................................  $     9,090          $    5,516
  Marketable securities ......................      257,020             409,272
  Accounts receivable ........................       24,000                -
  Inventory ..................................      883,558             898,796
  Due from licensees .........................       55,000                -
  Prepaid expenses ...........................       48,214              84,287
                                                -----------          ----------
         Total Current Assets ................    1,276,882           1,397,871
                                                -----------          ----------

Property and equipment - net .................    1,579,381           1,803,974
Other assets - net ...........................      596,273             160,179
                                                -----------          ----------
         TOTAL ASSETS ........................  $ 3,452,536          $3,362,024
                                                ===========          ==========

                   LIABILITIES AND STOCKHOLDERS' DEFICIENCY

Current Liabilities:
  Short-term debt ............................  $ 1,582,715          $1,274,271
  Accounts payable ...........................    1,253,750           1,210,861
  Accrued interest ...........................      443,607             224,279
  Accrued salaries ...........................    1,299,472           1,106,119
  Accrued expenses ...........................      357,451              84,213
                                                -----------          ----------

     Total Current Liabilities ...............    4,936,995           3,899,743
                                                -----------          ----------

Long-term debt ...............................    1,908,709           1,827,009
                                                -----------          ----------
         Total Liabilities ...................    6,845,704           5,726,752
                                                -----------          ----------

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 18,362,170
   and 18,070,200 shares .....................       18,362              18,070

  Additional paid-in-capital .................    3,744,841           3,433,002

  Deficit                                        (7,111,391)         (5,649,915)
  Cumulative other comprehensive (loss) ......      (44,980)           (165,885)
                                                -----------          ----------

         Total Stockholders' Deficiency ......   (3,393,168)         (2,364,728)
                                                -----------          ----------
         TOTAL LIABILITIES AND STOCK-
          HOLDERS' DEFICIENCY ................  $ 3,452,536          $3,362,024
                                                ===========          ==========


                 See notes to consolidated financial statements.
                                       -2-
<PAGE>


                      SCANTEK MEDICAL INC. AND SUBSIDIARIES

         CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                Nine Months Ended March 31,  Three Months Ended March 31,
                                                --------------------------    --------------------------
                                                   2000           1999           2000           1999
                                                -----------    -----------    -----------    -----------
<S>                                             <C>            <C>            <C>            <C>
Revenues:
  Net sales ..................................  $    29,775    $  127,775     $    24,000    $       -
  License fees ...............................      597,500     1,127,500             -          375,000
                                                -----------    -----------    -----------    -----------
   Total Revenues ............................      627,275     1,255,275          24,000        375,000
                                                -----------    -----------    -----------    -----------
Costs and Expenses:
  Cost of sales ..............................      275,555       233,555          92,615        69,650
  General and administrative expenses ........    1,331,301       769,306         446,399       331,518
  Research and development ...................      213,768       290,689          73,768        73,673
                                                -----------    -----------    -----------    -----------

   Total Costs and Expenses ..................    1,820,624     1,293,550         612,782        474,841
                                                -----------    -----------    -----------    -----------

Net operating (loss) .........................   (1,193,349)      (38,275)       (588,782)       (99,841)
                                                -----------    -----------    -----------    -----------
Other income (expense):
  Interest and dividends .....................          202           149              52             14
  Gain (loss) on sale of
   marketable securities .....................       25,007           -           (51,637)           -
  Interest expense ...........................     (293,336)     (167,366)        (93,976)       (77,748)
                                                -----------    -----------    -----------    -----------
                                                   (268,127)     (167,217)       (145,561)       (77,734)
                                                -----------    -----------    -----------    -----------

Net (loss) ...................................  $(1,461,476)   $  (205,492)   $  (734,343)   $  (177,575)
                                                ===========    ===========    ===========    ===========
Loss per common share -  basic ...............  $      (.08)   $      (.01)   $      (.04)   $      (.01)
                                                ===========    ===========    ===========    ===========
Loss per common share - diluted ..............  $      (.08)   $      (.01)   $      (.04)   $      (.01)
                                                ===========    ===========    ===========    ===========
Weighted average number of common
  shares outstanding - basic .................  18, 333,820     17,566,035     18,333,820     17,406,659
                                                ===========    ===========    ===========    ===========
Weighted average number of common
 shares outstanding -  diluted ...............   18,333,820     17,566,035     18,333,820     17,406,659
                                                ===========    ===========    ===========    ===========

</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>

                                  Nine Months Ended March 31,   Three Months Ended March 31,
                                  --------------------------    --------------------------
                                      2000          1999           2000            1999
                                  -----------    -----------    -----------    -----------
<S>                               <C>            <C>            <C>            <C>
Net loss ......................   $(1,461,476)   $  (205,492)   $  (734,343)   $  (177,575)

Other comprehensive income
 (expense) net of income taxes:

   Unrealized gain (loss) on
    marketable securities .....       120,905     (2,723,732)       120,331       (168,717)
                                  -----------    -----------    -----------    -----------

Comprehensive (loss) ..........   $(1,340,571)   $(2,929,224)   $  (614,012)   $  (346,292)
                                  ===========    ===========    ===========    ===========

</TABLE>


                 See notes to consolidated financial statements.
                                       -4-


<PAGE>


                      SCANTEK MEDICAL INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)


                                          Nine Months Ended March 31,
                                          --------------------------
                                              2000           1999
                                          -----------    -----------

Cash flows from operating activities:
 Net (loss) ...........................   $(1,461,476)   $  (205,492)
Adjustments to reconcile net
 (loss) to net cash used in
 operating activities:
  Depreciation and amortization .......       275,299        199,967
  Net gain on sale of mar-
   ketable securities .................       (25,007)          --
  Non-employee stock based
   compensation .......................        47,772         44,929
  Non-cash officers compensation ......       171,093         65,625
  Other non-cash items ................      (164,234)        84,375
  Changes in operating
   assets and liabilities .............       463,145       (356,480)
                                          -----------    -----------
         Net Cash (Used in)
          Operating Activities ........      (693,408)      (167,076)
                                          -----------    -----------

Cash flows from investing
 activities:
  Proceeds from sale of
   marketable securities ..............       298,164           --
  Purchase and deposits
   of equipment .......................          --       (1,202,980)
                                          -----------    -----------
         Net Cash Provided by
          (Used in) Investing
          Activities ..................       298,164     (1,202,980)
                                          -----------    -----------

Cash flows from financing
 activities:
   Proceeds from borrowings ...........       367,715      1,050,000
   Proceeds from officer loans ........       133,513        249,500
   Repayment of officer loans .........       (76,084)          --
   Repayment of notes .................       (36,326)        (1,202)
   Proceeds from sale of common stock .        10,000        100,000
                                          -----------    -----------
         Net Cash Provided by
          Financing Activities ........       398,818      1,398,298
                                          -----------    -----------

Net Increase in Cash ..................         3,574         28,242

Cash - beginning of period ............         5,516         55,929
                                          -----------    -----------

Cash - end of period ..................   $     9,090    $    84,171
                                          ===========    ===========










                                   (Continued)
                 See notes to consolidated financial statements.
                                       -5-


<PAGE>


                      SCANTEK MEDICAL INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Continued)

                                                    Nine Months Ended March 31,
                                                    -----------    -----------
                                                       2000            1999
                                                    -----------    -----------
Changes in Operating Assets
 and Liabilities Consist of:
  (Increase) in accounts receivable .............   $   (24,000)   $      --
  Decrease (increase) in inventory ..............        15,238     (1,017,632)
  (Increase) decrease in
    due from licensees ..........................      (291,000)       401,900
  (Increase) decrease in
   prepaid expenses .............................        36,073       (141,808)
  (Increase) in other assets ....................        (3,300)       (62,255)
  Increase in accounts payable
   and accrued expenses .........................       730,134      1,215,815
  (Decrease) in deferred income .................          --         (752,500)
                                                    -----------    -----------
                                                    $   463,145    $  (356,480)
                                                    ===========    ===========
Supplementary information:
 Cash paid during the year for:
         Interest ...............................   $    37,083    $    94,668
                                                    ===========    ===========
         Income taxes ...........................   $       200    $     5,637
                                                    ===========    ===========
Non-cash investing activities:
  Acquisition of investment in
   connection with
   licensing agreement ..........................   $  (247,500)   $      --
                                                    ===========    ===========
  Unrealized gain (loss)
   on marketable securities .....................   $   120,905    $(2,723,732)
                                                    ===========    ===========
Other Non-Cash Activities:
  Conversion of accounts
  payable to stock options ......................   $    47,772    $    44,929
                                                    ===========    ===========
 Conversion of accrued officers'
  salaries to common stock ......................   $     9,375    $      --
                                                    ===========    ===========
 Conversion of accrued officers'
  salaries to common stock ......................   $      --      $    65,625
                                                    ===========    ===========
 Common stock issued for loan
  financing .....................................   $    73,891    $    84,375
                                                    ===========    ===========
 Compensation for the cancellation
  and re-issuance of stock options ..............   $   171,093    $      --
                                                    ===========    ===========


                 See notes to consolidated financial statements.
                                       -6-


<PAGE>


                      SCANTEK MEDICAL INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   ORGANIZATION

          The consolidated balance sheet as of March 31,2000, and the
     consolidated statements of operations and comprehensive (loss) and cash
     flows for the nine months ended March 31, 2000 and 1999 have been prepared
     by Scantek Medical Inc and Subsidiaries ("Scantek" or 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. The information for June 30, 1999 was
     derived from audited financial statements.

2.   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 a normal course of business.

          The Company has experienced losses during its development stage. The
     Company is no longer a development stage Company but losses and negative
     cash flows from operations have continued in the current fiscal year. As of
     March 31, 2000, the Company has a working capital deficit of approximately
     $3.4 million.

          The activities of the Company are being financed through the sale of
     its common stock and debt securities and the sale of marketable securities
     owned by the Company. 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) device throughout the world. This uncertainty 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.

3.   EARNINGS (LOSS) PER SHARE

          Basic earnings (loss) per common share are computed using the weighted
     average number of common shares outstanding during the period. Diluted
     earnings per common share are computed using the weighted average number of
     common shares and potential common shares outstanding during the period.


                                       -7-


<PAGE>


                      SCANTEK MEDICAL INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


4.   SEGMENTS - GEOGRAPHIC AREAS

          The Company does not have reportable operating segments as defined in
     Statement of Financial Accounting Standards No. 131, "Disclosure about
     Segments of an Enterprise and Related Information" (SFAS 131). 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.

          United States revenues include license fees received by the Company in
     connection with various arrangements contracted throughout the world.
     Revenues in South America for the nine months ended March 31, 2000 were
     shipments to Colombia from the Company's subsidiary in Uruguay. Revenues in
     South America for the nine months ended March 31, 1999 were to the
     Company's former South American licensee, Sandell Corporation, S.A. Sales
     of the BreastCare(TM) device were not recorded by the Company until Sandell
     Corporation, S.A. shipped the BreastCare(TM) device to unrelated entities.

                                      Nine Months Ended March 31,
                                      --------------------------
                                         2000            1999
                                      -----------    -----------
     Total Revenues:
       United States ..............   $   597,500    $ 1,127,775
       South America ..............        24,000        127,500
       Europe .....................         5,775           --
       Less intergeographic revenue          --          (75,436)
                                      -----------    -----------
                                      $   627,275    $ 1,179,839
                                      ===========    ===========

     Income (loss) from operations:
       United States ..............   $(1,168,512)   $  (101,051)
       South America ..............      (292,964)      (104,441)
                                      -----------    -----------
                                      $(1,461,476)   $  (205,492)
                                      ===========    ===========


                                       -8-


<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 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, 1999, which may cause actual results to differ materially 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.

          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 maintaining of domestic and international trademarks
     and international patent protection; licensing and pre-marketing
     activities; and attempts to raise the necessary capital for initial
     production. 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, 1999 dated August 24, 1999 expressed an opinion as to the
     Company continuing as a going concern.


                                       -9-


<PAGE>



          During September 1998, the Company commenced the sale of its
     BreastCare(TM) device 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 all key
     personnel for the licensee have joined Scantek. The Company's Brazilian
     subsidiary plans to manufacture, market and distribute the BreastCare(TM)
     device in Brazil and export to other South American countries.

          The Company expects to commence its distribution operations in South
     America during the second half of calendar 2000 while shipments to Ireland
     commenced in October 1999 and shipments to other parts of Europe will
     commence during the second half of calendar 2000. 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 March 31, 2000,
     the Company borrowed $1,582,715 from unaffiliated third parties of which
     approximately $308,000 was advanced since June 30, 1999. These loans are
     payable by the Company on various dates through December 2000. In addition,
     as of May 12, 2000 the Company's president advanced the Company an
     additional $177,000 since July 1999. These loans have supported the Company
     through the prior fiscal year and the current nine months, and the Company
     expects the cash flow from sales commencing in the second quarter of
     calendar 2000 to cover the operations of the Company in calendar 2000
     providing the Company is successful in raising additional capital to
     support the operations until cash flows generated for the sales of the
     BreastCare(TM) device 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) device throughout South America through the
     Company's South American subsidiaries.

          In July 1999 the Company, through its Brazilian subsidiary Scantek do
     Brazil 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) device in Brazil. After completing its due
     diligence the Company terminated the letter of intent.


                                      -10-
<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 is also the most desirable location 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 plans to start construction in early 2000 and anticipates
     construction to be completed by August 2000. 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 to build the facility, a 75% reduction in taxes for 11 years, 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) device from the United
     States until the production facility in Brazil is operational.

          On July 29, 1999 the Company granted an exclusive license to Nugard
     Healthcare Ltd, an Irish company,, ("Nugard") to market Scantek's
     BreastCare(TM) device in Ireland and the United Kingdom. Nugard will pay a
     non-refundable licensing fee of $350,000 in various stages, of which
     $59,000 was received as of March 31, 2000, and the Company received common
     shares equivalent to fifteen (15%) percent of Nugard's total outstanding
     common shares. The agreement requires minimum purchase of 5,000 units per
     month. The purchase price will range from $10 to $15 per unit based on
     shipment of the BreastCare(TM) device to the government or private
     physicians. Sales commenced to Nugard on a pilot basis through December
     1999 and will begin fulfilling the required minimum purchase agreement
     after various clinical tests are completed.

          The Company executed a letter of intent on August 20, 1997 with
     respect to the acquisition of a Hungarian based manufacturer of plastic
     medical packaging products and the manufacturing facility for an aggregate
     purchase price of $1,750,000. It is the Company's intention to use this
     facility as a production center for the BreastCare(TM) device for Eastern
     Europe. The acquisition is subject to the Company obtaining financing for
     the purchase of the Hungarian manufacturer.

          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) in the international market. The Company
     entered into an agreement with Zigmed Inc. pursuant to which Zigmed Inc.
     will manufacture the production equipment needed for manufacturing of the
     BreastCare(TM) device for the contract price of $1,850,680. The Company as
     of March 31, 2000, has advanced Zigmed Inc. payments of $940,604 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 $810,076 will be paid
     when the Company raises the additional capital.


                                      -11-
<PAGE>


          The Company's success is dependent on raising sufficient capital to
     establish a production and assembly facility to manufacture the
     BreastCare(TM) for the international market. The Company believes the
     BreastCare(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.


     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
                                        ----------------------------------------
                                        Nine Months Ended     Three Months Ended
                                          March 31, 2000        March 31, 2000
                                        compared with 1999    compared with 1999
                                        ------------------    ------------------
     Sales (1) .......................        (76.7)%                (1)%
     License fee revenue .............        (47.0)                 (1)
     Cost of sales ...................         18.0                  33.0
     General and administrative
      expense ........................         73.1                  34.7
     Research and development ........        (26.5)                   .3
     Interest expense ................         75.3                  20.9
     Net earnings (loss) .............       (611.2)               (313.5)

     ----------

     (1) Percentage not meaningful


     NINE MONTHS ENDED MARCH 31,2000 VS. NINE MONTHS ENDED MARCH 31,1999
       AND THREE MONTHS ENDED MARCH 31, 2000 VS. THREE MONTHS ENDED MARCH 31,
       1999

     REVENUES

          Net sales decreased to $29,775 during the nine months ended March 31,
     2000 from $127,775 during the nine months ended March 31, 1999 as the
     Company is re-focusing its South American marketing strategy in Brazil. The
     Company will ship the BreastCare(TM) device from the United States during
     the second quarter to South America until the manufacturing facility in
     Brazil is completed. Shipments to Ireland commenced in October 1999 and
     shipments to other parts of Europe will commence during the second half of
     calendar 2000. Manufacturing in Brazil is planning to commence during the
     second half of calendar 2000 after the Company completes construction of
     its new manufacturing facility in Brazil. Until then the Company will
     manufacture the BreastCare(TM) device in its U.S. facilities. Manufacturing
     for Europe will continue in its U.S. facilities until the Company
     establishes a manufacturing facility in Europe.


                                      -12-
<PAGE>


          Net sales increased to $24,000 during the three months ended March 31,
     2000 from $-0- during the three months ended March 31, 1999. In 2000 the
     Company shipped the BreastCare(TM) device to Colombia. Shipments in 1999
     were discounted due to economic conditions in Brazil.

          License fee revenue decreased to $597,500 during the nine months ended
     March 31, 2000 from $1,127,500 for the nine months ended March 31, 1999 as
     the Company recognized license fees from Nugard Healthcare Ltd. as compared
     to higher license fees from Sandell Corp, D-Lanz Corp and HumaScan from the
     preceding year.

          License fee revenue decreased to $-0- during the three months ended
     March 31, 2000 from $375,000 during the three months ended March 31, 1999.
     The Company recognized license fee income from HumaScan Corp during 1999
     but received no license fee income during 2000.

     COST OF SALES

          Cost of sales increased to $275,555 during the nine months ended March
     31, 2000 from $233,555 during the nine months ended March 31, 1999
     primarily due to depreciation expense of $207,633 on the production
     equipment compared to $132,192 for the same nine month period ended March
     31, 1999.

          Cost of sales increased 33% to $92,615 during the three month period
     ended March 31, 2000 from $69,650 during the three months period ended
     March 31, 1999 for primarily the same reasons set forth in the nine month
     analysis.

     GENERAL AND ADMINISTRATIVE EXPENSES

          General and administrative expenses increased 73.1% to $1,331,301
     during the nine months ended March 31, 2000 compared to $769,306 during the
     nine months ended March 31, 1999. This increase is primarily due to
     increases in consulting services, compensation expense and travel expense
     in connection with the Company's South American marketing strategies in
     Brazil.

          General and administrative expenses increased 34.7% to $446,399 during
     the three months ended March 31, 2000 compared to $331,518 during the three
     months ended March 31, 1999 for principally the same reasons set forth in
     the nine month analysis.

     RESEARCH AND DEVELOPMENT EXPENSES

          Research and development expense decreased 26.5% to $213,768 during
     the nine months ended March 31, 2000 from $290,389 during the nine months
     ended March 31, 1999. The decrease is primarily attributable to decreased
     salaries incurred by the Company in the experimental area of development of
     its product.

          Research and development expenses increased .3% to $73,768 during the
     three month period ended March 31, 2000 from $73,673 during the three
     months ended March 31, 1999 as these expenses stayed constant during the
     period.


                                      -13-
<PAGE>


     INTEREST EXPENSE

          Interest expense was $293,336 for the nine months ended March 31, 2000
     compared to $167,366 for the nine months ended March 31, 1999. The 75.3%
     increase was attributable to the increase on the Company's short-term debt.

          Interest expense was $93,976 for the three months ended March 31, 2000
     compared to $77,748 for the three months ended March 31, 1999. The 20.9%
     increase is primary for the same reasons as set forth in the nine month
     analysis.


                                      -14-
<PAGE>


PART II.  Other Information

     Item 1.   Legal Proceedings

          See Item 3 of the Company's Annual Report on Form 10-KSB for the year
     ended June 30, 1999.

     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 March 31, 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:  May 12, 2000


                                                                 -16-