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UNITED STATES SECURITIES AND EXCHANGE COMMISSION  
Washington, DC 20549

FORM 10QSB

|[X]   | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities  Exchange Act of 1934
|----- | ----------------------------------------------------------------------------------------
|      | FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2002                                           
|      | 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 0-27094

FIRST AMERICAN SCIENTIFIC CORP.(Exact name of registrant as specified in its charter)



|NEVADA(State of other jurisdiction of incorporation or organization) | 88-0338315 (IRS Employer Identification Number)
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100 Park Royal South 
Suite 811 
Vancouver, British Columbia 
Canada  V7T 1A2(Address of principal executive offices)

(604) 931-9035 (Registrant's telephone number, including area code)

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 March 31, 2002: 139,763,018.

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Board of Directors 
First American Scientific Corp.
Vancouver, BC

ACCOUNTANT'S REVIEW REPORT

We have reviewed the accompanying consolidated balance sheet of First American Scientific Corp. as of March 31, 2002 and 2001 and the related consolidated statements of operations, stockholders' equity and cash flows for the three and nine months ended March 31, 2002 and 2001.  These financial statements are the responsibility of the Company's management.

We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants.  A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters.  It is substantially less in scope than an audit in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial statements taken as a whole.  Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America.

The financial statements for the year ended June 30, 2001 were audited by us and we expressed an unqualified opinion on them in our report dated September 14, 2001, but we have not performed any auditing procedures since that date.

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplates continuation of the Company as a going concern.  As discussed in Note 2, the Company has an accumulated deficit of $7,891,417 at March 31, 2002 and has limited sales volume.  These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans regarding those matters also are described in Note 2.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ Williams & Webster, P.S.
Williams & Webster, P.S.Certified Public AccountantsSpokane, Washington
May 14, 2002

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|FIRST AMERICAN SCIENTIFIC CORP.  
CONSOLIDATED BALANCE SHEETS
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|ASSETS                                                       
|CURRENT ASSETS                                               
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|PROPERTY AND EQUIPMENT                                       
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|OTHER ASSETS                                                 
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|TOTAL ASSETS                                                 
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|LIABILITIES AND STOCKHOLDERS' EQUITY                         
|CURRENT LIABILITIES                                          
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|COMMITMENTS AND CONTINGENCIES                                
|MINORITY INTEREST IN SUBSIDIARY                              
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|STOCKHOLDERS' EQUITY                                         
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|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                   

See accompanying notes and accountant's review report.

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|FIRST AMERICAN SCIENTIFIC CORP. 
CONSOLIDATED STATEMENTS OF OPERATIONS  
AND COMPREHENSIVE INCOME (LOSS)
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|REVENUES                                                                                                
|COST OF SALES                                                                                           
|GROSS PROFIT                                                                                            
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|OPERATING EXPENSES                                                                                      
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|LOSS FROM OPERATIONS                                                                                    
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|OTHER INCOME (EXPENSE)                                                                                  
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|LOSS BEFORE INCOME TAXES                                                                                
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|INCOME TAXES                                                                                            
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|NET LOSS BEFORE ALLOCATION TO MINORITY INTEREST                                                         
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|ALLOCATION OF LOSS TO MINORITY INTEREST                                                                 
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|NET LOSS                                                                                                
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|OTHER COMPREHENSIVE INCOME (LOSS)                                                                       
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|COMPREHENSIVE NET LOSS                                                                                  
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See accompanying notes and accountant's review report.

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|FIRST AMERICAN SCIENTIFIC CORP.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY                                       
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|Balance, June 30, 2000                                                                                               
|Issuance of options for compensation and consulting services                                                         
|Common stock issued from options for cash, compensation, services and other expenses at an average of $0.09 per share
|Common stock issued from options for cash at an average of  $0.01 per share                                          
|Common stock issued from options for cash at an average of  $0.05 per share                                          
|Common stock issued from options for cash and equipment inventory at $0.12 per share                                 
|Common stock issued from options for website development and video inventory at an average of $0.07 per share        
|Common stock issued from options for cash at $0.03 per share and services of $91,960 and inventory of $12,000        
|Common stock issued from options for services at $0.08 per share                                                     
|Common stock issued from options for cash at $0.08 per share                                                         
|Common stock issued from options for legal settlement at $0.14 per share                                             
|Common stock issued from options for commissions at $0.11 per share                                                  
|Foreign currency translation gain (loss)                                                                             
|Net loss for the year ended June 30, 2001                                                                            
|Balance, June 30, 2001                                                                                               
|Common stock issued from options as compensation at $0.06 per share                                                  
|Common stock issued for cash at $0.06 per share                                                                      
|Common stock issued from options for services at $0.09 per share                                                     
|Common stock issued for rent expenses at $0.125 per share                                                            
|Foreign currency translation gain (loss)                                                                             
|Net loss for the nine months ended March 31, 2002 (unaudited)                                                        
|Balance, March 31, 2002, (unaudited)                                                                                 

See accompanying notes and accountant's review report.

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|FIRST AMERICAN SCIENTIFIC CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
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|CASH FLOWS PROVIDED (USED) IN OPERATING ACTIVITIES                   
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|Net cash (used) in operating activities                              
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|CASH FLOWS PROVIDED (USED) IN INVESTING ACTIVITIES                   
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|Net cash used in investing activities                                
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|CASH FLOWS PROVIDED (USED) IN FINANCING ACTIVITIES                   
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|Net cash provided by financing activities                            
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|NET INCREASE (DECREASE) IN CASH                                      
|Other comprehensive loss                                             
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|CASH - Beginning of year                                             
|CASH - End of period                                                 
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|SUPPLEMENTAL CASHFLOW DISCLOSURES:                                   
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|NON-CASH TRANSACTIONS:                                               
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See accompanying notes and accountant's review report.

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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

First American Scientific Corp. (hereinafter "the Company" or "FASC") was incorporated in April 1995 under the laws of the State of Nevada primarily for the purpose of manufacturing and operating equipment referred to as the KDS Micronex System.  This patented process has the capability of reducing industrial material such as limestone, gypsum, zeolite, wood chips, bio-waste, rubber and ore containing precious metals to a fine talcum-like powder.  The process can significantly increase the end value of the host material.  The Company maintains an office in Vancouver, British Columbia, Canada.

The Company, through its wholly owned subsidiary, VMH, has developed an internet sales site known as VMH Videomoviehouse.com Inc.  The site is designed to sell videos, CDs and books and, as technology advancements permit, is expected to become a virtual video rental store.

In September 1999, the Company entered into an agreement with VMH Videomoviehouse.com Inc., ("VMH") a British Columbia company whereby the Company acquired 100% of the common shares and the technology of VMH in return for a cash consideration of $250,000. (See Note 7).  VMH possesses domain names, a web page, and technology for the sale of videos, DVD's, and CD's through the internet.

The Company formed First American Power Corp, formerly 521345 BC Ltd., a wholly owned subsidiary, in 1998 in order to provide research and development services exclusively to First American Scientific Corp. that are eligible for Canadian research and development credits and, when feasible, operate a profitable production facility in Canada.

The Company formed Alternative Green Energy Systems, Inc. (hereinafter "AGES") in 2002 for the purpose of using FASC's licensed technology and patents to manufacturer, sell, operate and use the KDS machines in combination with available expertise in wood dust burning technology.  See Note 10.  The Company owns 43.48% and has management control of AGES.  William E. Barber owns 43.48% and Hydro-Quebec Capitech Inc. owns 13.04% of AGES.

The Company's year-end is June 30th.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies of First American Scientific Corp. is presented to assist in understanding the Company's financial statements.  The financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity.  These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

Going ConcernThe accompanying financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of its liabilities in the normal course of operations.

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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Going Concern (continued)As shown in the accompanying financial statements, the Company has incurred an accumulated deficit of $7,891,417 through March 31, 2002 and has minimal revenues.  Although the Company recorded $1,108,087 in sales during the nine months ended March 31, 2002, it also generated a loss from operations by $879,067.  These factors raise substantial doubt about the Company's ability to continue as a going concern.

Management plans to undertake a comprehensive review of its ongoing business to substantially increase sales through current channels and develop new sales opportunities.

Management has established plans designed to increase the sales of the Company's products by continued research and development and combining technology through AGES.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

Management intends to seek new capital from new equity securities offerings that will, if successful, provide funds needed to increase liquidity, fund internal growth and fully implement its business plan.  However, there is no assurance that the Company will raise the required capital.  If the Company is unable to raise the required capital, then it will assess its future business viability.

Accounting MethodThe Company uses the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

Loss Per ShareIn June 1999, the Company adopted Statement of Financial Accounting Standards Statement (SFAS) No. 128, Earnings Per Share.  Basic earnings (loss) per share is computed using the weighted average number of common shares outstanding.  Diluted net loss per share is the same as basic net loss per share, as the inclusion of common stock equivalents would be antidilutive.

Derivative InstrumentsThe Financial Accounting Standards Board issued Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging Activities," as amended by SFAS No. 137, "Accounting for Derivative Instruments and Hedging Activities - Deferral of the Effective Date of FASB No. 133", and SFAS No. 138, "Accounting for Certain Derivative Instruments and Certain Hedging Activities", which is effective for the Company as of January 1, 2001.  This standard establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities.  It requires that an entity recognize all derivatives as either assets or liabilities in the consolidated balance sheet and measure those instruments at fair value.

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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Derivative Instruments (continued)If certain conditions are met, a derivative may be specifically designated as a hedge, the objective of which is to match the timing of gain or loss recognition on the hedging derivative with the recognition of (i) the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk or (ii) the earnings effect of the hedged forecasted transaction.  For a derivative not designated as a hedging instrument, the gain or loss is recognized in income in the period of change.

Historically, the Company has not entered into derivatives contracts to hedge existing risks or for speculative purposes.

At March 31, 2002 the Company has not engaged in any transactions that would be considered derivative instruments or hedging activities.

Principles of ConsolidationThe consolidated financial statements include the accounts of the Company and its subsidiaries.  All significant inter-company transactions and balances have been eliminated in consolidation.

Minority InterestAt March 31, 2002 minority shareholders held an approximately 13.04%  interest in Alternative Green Energy Systems, Inc. The value for this minority interest is shown on the accompanying balance.

Cash and Cash EquivalentsFor purposes of the Statement of Cash Flows, the Company considers all short-term debt securities purchased with a maturity of three months or less to be cash equivalents.

Prepaid expensesPrepaid expenses consist of commissions and salaries paid in advance that will be amortized as earned.

Fair Value of Financial InstrumentsThe carrying amounts for cash, accounts receivable, the trust account, accounts payable, and accrued liabilities approximate their fair value.

Concentration of RiskThe Company maintains its cash accounts in primarily one commercial bank in Vancouver, British Columbia, Canada.  The Company's cash account, which is not insured, is a business checking account in United States dollars.

ReclassificationCertain amounts from prior periods have been reclassified to conform with the current period presentation.  This reclassification has resulted in no changes to the Company's accumulated deficit or net losses presented.

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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Foreign Currency TranslationAssets and liabilities of the Company's foreign operations are translated into U.S. dollars at the period-end exchange rates, and revenue and expenses are translated at the average exchange rates during the period.  Exchange differences arising on translation are disclosed as a separate component of shareholders' equity. Realized gains and losses from foreign currency transactions are reflected in the results of operations.

Provision for TaxesIncome taxes are provided based upon the liability method of accounting pursuant to SFAS No. 109 "Accounting for Income Taxes."  Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end.  A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the "more likely than not" standard imposed by SFAS No. 109 to allow recognition of such an asset.

At March 31, 2002, the Company had net deferred tax assets of approximately $1,200,000 principally arising from net operating loss carryforwards for income tax purposes, and stock and options issued for services.  As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the net deferred tax asset, a valuation allowance equal to the net deferred tax asset has been established at March 31, 2002.

At March 31, 2002, the Company has net operating loss carryforwards of approximately $5,900,000, which expire in the years 2015 through 2021.  The Company recognized approximately $410,000 of losses for the issuance of restricted common stock and stock options for services in fiscal 2002, which were not deductible for tax purposes and are not included in the above calculation of deferred tax assets.

Use of EstimatesThe process of preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses.  Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements.  Accordingly, upon settlement, actual results may differ from estimated amounts.

Impairment of Long-lived AssetsThe Company evaluates the recoverability of long-lived assets when events and circumstances indicate that such assets might be impaired.  The Company determines impairment by comparing the undiscounted future cash flows estimated to be generated by these assets to their respective carrying amounts.

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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Compensated AbsencesEmployees of the Company are entitled to paid vacation, paid sick days and personal days off, depending on job classification, length of service, and other factors.  It is impracticable to estimate the amount of compensation for future absences, and, accordingly, no liability has been recorded in the accompanying financial statements.  The Company's policy is to recognize the costs of compensated absences when actually paid to employees.

Segment InformationThe Company adopted SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information," during the second quarter of 1999. SFAS No. 131 established standards for reporting information about operating segments in annual financial statements and requires selected information about operating segments in interim financial reports issued to stockholders. It also established standards for related disclosures about products and services and geographic areas. Operating segments are defined as components of an enterprise about which separate financial information is available, evaluated regularly by the chief operating decision makers, or a decision making group, in deciding how to allocate resources and in assessing performance.

Revenue and Cost RecognitionRevenues from the sale of KDS machines are recognized when there is a sales contract, all criteria of the contract has been completed, collectibility is reasonably assured and the products are delivered.

KDS machine costs include all direct material and labor costs and related indirect costs.  Changes in job performance, job conditions, and estimated profitability may result in revisions to product costs, which are recognized in the period in which the revisions are determined.

The Company recognizes revenue from the sale of videos, CDs and books when the products are shipped and title passes to customers.  All internet sales are paid via credit card and are considered immediately collectible.

Cost of sales from videos, CDs and books consist of the purchase price of products sold, inbound and outbound shipping charges and packaging supplies.

The Company has a subdistributor relationship with Amazon.com, Half.com and Yahoo Warehouse.  When the Company acts as the subdistributor, it records accounts receivable for funds to be transferred to VMH's bank account.  The transfer of funds takes four to fourteen days.

InventoryInventories are stated at the lower of average cost or market. The cost of finished goods includes the cost of raw material, direct and indirect labor, and other indirect manufacturing costs.

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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The components of inventory are as follows:



|                            |   | March 31,
2002 |  |   | June 30,
2001
|--------------------------- | - | -------------- |  | - | -------------
|Finished goods - videos     | $ | 73,554         |  | $ | 41,178       
|Finished goods - machines   |   | 658,486        |  |   | 81,167       
|Work in progress - machines |   | -              |  |   | 51,594       
|                            | $ | 732,040        |  | $ | 173,939      

Accounting PronouncementsIn October 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" (SFAS No. 144).  SFAS 144 replaces SFAS 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of."  This new standard establishes a single accounting model for long-lived assets to be disposed of by sale, including discontinued operations.  Statement 144 requires that these long-lived assets be measured at the lower of carrying amount or fair value less cost to sell, whether reported in continuing operations or discontinued operations.  This statement is effective beginning for fiscal years after December 15, 2001, with earlier application encouraged.  The Company adopted SFAS 144 and does not believe that the adoption will have a material impact on the financial statements of the Company at March 31, 2002.

In October 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations" (SFAS No. 143).  SFAS No. 143 establishes guidelines related to the retirement of tangible long-lived assets of the Company and the associated retirement costs.  This statement requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made.  The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived assets.  This statement is effective for financial statements issued for the fiscal years beginning after June 15, 2002 and with earlier application encouraged.  The Company adopted SFAS No. 143 and does not believe that the adoption will have a material impact on the financial statements of the Company at March 31, 2002.

In September 2000, the FASB issued SFAS No. 140 "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities."  This statement provides accounting and reporting standards for transfers and servicing of financial assets and extinguishment of liabilities and also provides consistent standards for distinguishing transfers of financial assets that are sales from transfers that are secured borrowings.  SFAS No. 140 is effective for recognition and reclassification of collateral and for disclosures relating to securitization transactions and collateral for fiscal years ending after December 15, 2000, and is effective for transfers and servicing of financial assets and extinguishments of liabilities occurring after March 31, 2001.  The Company believes that the adoption of this standard will not have a material effect on the Company's results of operations or financial position.

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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Web Site DevelopmentEffective January 1, 2000, the Company adopted SOP 98-1 as amplified by EITF 00-2, "Accounting for Web Site Development costs."  In accordance with this early adoption, the Company has capitalized $126,021 in web site development costs.  Beginning July 1, 2001, these capitalized costs are being amortized over three years.

Comprehensive IncomeIn June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income" ("SFAS No. 130").  SFAS 130 establishes standards for reporting and displaying comprehensive income, its components and accumulated balances. SFAS 130 is effective for periods beginning after December 15, 1997. The Company adopted this accounting standard and its adoption is reflected in the accompanying financial statements.

NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment are stated at cost.  Depreciation is provided using the straight-line method over the estimated useful lives of the assets.  The useful lives of property, plant and equipment for purposes of computing depreciation are five to forty years. The following is a summary of property, equipment, and accumulated depreciation:



|                                       |  |   | March 31,
2002 |   | June 30,
2001
|-------------------------------------- |  | - | -------------- | - | -------------
|Kinetic disintegration equipment (KDS) |  | $ | 448,640        | $ | 1,355,597    
|Plant assets and equipment             |  |   | 52,176         |   | 52,176       
|Office equipment                       |  |   | 58,823         |   | 42,539       
|Leasehold improvements                 |  |   | 5,476          |   | 5,476        
|Total assets                           |  | $ | 565,115        | $ | 1,455,788    
|Less accumulated depreciation          |  |   | 165,925        |   | 378,886      
|                                       |  | $ | 399,190        | $ | 1,076,902    

Depreciation expense for the nine months ended March 31, 2002 was $36,009.  The Company evaluates the recoverability of property and equipment when events and circumstances indicate that such assets might be impaired.  The Company determines impairment by comparing the undiscounted future cash flows estimated to be generated by these assets to their respective carrying amounts.  Maintenance and repairs are expensed as incurred.  Replacements and betterments are capitalized.  The cost and related reserves of assets sold or retired are removed from the accounts, and any resulting gain or loss is reflected in results of operations.

In March 31, 2002, the Company determined that three of its KDS machines were impaired.  These machines were written down to $150,000 each and reclassified to inventory.  Subsequently, these three machines were sold for $150,000 each.  The Company recognized a $122,542 loss in impairment.

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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 4 - TECHNOLOGY RIGHTS AND PATENTS

Technology LicensesOn June 22, 1995, the Company entered into a license agreement with Spectrasonic Corp. (hereinafter "Spectrasonic"), a related party, for the worldwide license to its unpatented Kinetic Disintegration Equipment (KDS) for use in rubber and glass recycling and disposal, for a period of ninety-nine years.  The purchase price of this license and one SDM machine was $550,000, with license rights valued at $250,000.  Since then, modifications were made to the first KDS machine, bringing its total cost to $440,740.  This machine was transferred to the Company's subsidiary, 521345 BC Ltd., at its book value of $55,669.

On February 22, 1996, the Company entered into an additional license agreement with Spectrasonic for the worldwide license to its unpatented Ultrasound Equipment for exclusive use in gypsum disintegration, disposal, recycling, remanufacturing or manufacturing of used or new raw materials.  The purchase price of this license and one KDS machine for gypsum-related use was $775,000, with the parties agreeing that the technology license was valued at $425,000 and the gypsum KDS machine was valued at $350,000.

On May 17, 1996, the Company executed another agreement with Spectrasonic for the worldwide licenses to equipment (as yet unpatented) developed by Spectrasonic for use in disintegration, disposal, recycling, remanufacturing or manufacturing "any and all kinds of materials" for a period of ninety-nine years.  The purchase price of this license was $1,047,000, which the Company paid by issuing to Spectrasonic 5,500,000 shares of First American common stock (with an aggregate deemed value of $802,000) and paid $168,000 in varying installment amounts between September 30, 1996 and January 2, 1997.  The Company recognized $77,000 in forgiveness of debt, which has been recorded as additional paid-in capital.

On July 2, 1997, the Company finalized negotiations with Spectrasonic for all patents to be issued or pending, including all data pertaining to the patent process with respect to the Kinetic Disintegration Machine (KDS Machine) whose worldwide rights had been previously acquired by the Company.  In the negotiations, the Company acquired all manufacturing rights applicable to the KDS machine technology.  The Company has sole right and responsibility for manufacturing the machinery.  Consideration to Spectrasonic was 1,000,000 common shares of the Company's stock at $0.25 per share issued on December 1, 1999.

Technology licenses, patents and manufacturing rights are stated at cost. Amortization is provided using the straight-line method over the estimated useful lives of the assets, which are five and fifteen years.

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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 4 - TECHNOLOGY RIGHTS AND PATENTS (continued)

The following is a summary of technology licenses, patents and manufacturing rights and accumulated amortization:



|                                              |   | March 31,
2002 |   | June 30,
2001
|--------------------------------------------- | - | -------------- | - | -------------
|                                              |   |                |   |              
|VMH Videomoviehouse.com Inc. Website          | $ | 126,155        | $ | 126,021      
|VMH Videomoviehouse.com Inc technology assets |   | 250,000        |   | 250,000      
|Technology license and rights                 |   | 1,905,000      |   | 1,905,000    
|Patents and manufacturing rights              |   | 250,000        |   | 250,000      
|                                              | $ | 2,531,115      | $ | 2,531,021    
|Less accumulated amortization                 |   | 796,932        |   | 594,25       
|                                              | $ | 1,734,183      | $ | 1,936,726    

Amortization expense for the nine months ended March 31, 2002 was $73,854.

NOTE 5 - INVESTMENT IN JOINT VENTURE

The Company has entered into a joint venture agreement with Beau Pre Explorations Ltd.  The Company's investment consists of one KDS machine contributed to the joint venture to process mineral and extract precious metal at the Valentine Mountain mine site.

NOTE 6 - COMMON STOCK

During the nine months ended March 31, 2002, the Company issued from options 3,800,000 shares of common stock as compensation with a fair market value of  $214,000; issued 3,085,000 shares of common stock for $180,850 in cash; issued 2,025,000 shares of common stock from options with a fair market value of $181,875 for services; and issued 120,000 shares of common stock with a fair market value of $15,000 for rent expense.

During the year ended June 30, 2001, the Company issued 22,166,545 shares of common stock for services valued at $1,353,805, which includes services for website development, inventory valued at $138,000, cash of $222,724, compensation valued at $262,762, commissions valued at $22,500.  In addition, the Company issued 5,931,818 shares of common stock for cash in the amount of $231,050 and issued 1,813,637 shares of common stock as legal settlements valued at $262,500.

In June 2000, an amendment to the Company's articles of incorporation was approved, which increased the Company's authorized capital to 200,000,000 shares of common stock at a par value of $0.001 per share.

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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 7 - STOCK OPTIONS

In September 1998, the Company adopted the First American Scientific Corp. 1998 Directors and Officers Stock Option Plan, a non-qualified plan.  This plan allows the Company to distribute up to 15,000,000 shares of common stock to officers, directors, employees and consultants through the authorization of the Company's board of directors.

On June 8, 2000, the Company's board of directors approved the First American Scientific Corp. 2000 Non-qualifying Stock Option Plan.  This plan allows the Company to distribute up to 30,000,000 shares of common stock at $0.20 per share to persons employed or associated with the Company.

During the year ended June 30, 2001, the Company granted 33,912,000 options of which 24,906,273 were issued for services and compensation, 1,240,000 were issued for video inventory and website development, 900,000 for equipment inventory and cash.  6,865,727 options were issued for cash.

During the nine months ended March 31, 2002, the Company granted 3,005,000 options for Compensation, services, expenses and cash at an average exercise price of $0.09, which were exercised immediately.  The options were granted at the fair market value of the stock.

The fair value of each option granted during fiscal 2001 and 2002 was estimated on the grant date using the Black-Scholes Option Price Calculation.  The following assumptions were made in estimating fair value: risk-free interest of 6%, volatility of 30%, expected life of 1 to 5 years, and no expected dividends.  The value of these options in the amount of $411,891 is included in operating expense in the accompanying financial statements.

The following is a summary of stock option activity:



|                                                                                            |  |   | Number of Shares |  |   | Weighted Average Exercise Price
|------------------------------------------------------------------------------------------- |  | - | ---------------- |  | - | -------------------------------
|Options outstanding at July 1, 2000                                                         |  |   | 3,300,000        |  | $ | 0.027                          
|Granted                                                                                     |  |   | 33,912,000       |  |   | 0.065                          
|Exercised                                                                                   |  |   | (29,912,000)     |  |   | 0.042                          
|Options outstanding at June 30, 2001                                                        |  |   | 7,300,000        |  | $ | 0.11                           
|Options exercisable at June 30, 2001                                                        |  |   | 7,300,000        |  | $ | 0.11                           
|Options outstanding at July 1, 2001                                                         |  |   | 7,300,000        |  | $ | 0.11                           
|Granted                                                                                     |  |   | 3,005,000        |  |   | 0.09                           
|Exercised                                                                                   |  |   | (5,825,000)      |  |   | 0.10                           
|Options outstanding at March 31, 2002                                                       |  |   | 4,480,000        |  | $ | 0.12                           
|Options exercisable at March 31, 2002                                                       |  |   | 4,480,000        |  | $ | 0.12                           
|Weighted average fair value of options granted during the three months ended March 31, 2002 |  | $ | 0.09             |  |   |                                

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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 8 - RELATED PARTIES

At March 31, 2002, the Company owed its officers $80,000 for accrued salary and $65,034 for reimbursed expenses.  These amounts are recorded in the accompanying financial statements under the caption of accounts payable, related parties.

During the year ended June 30, 2000, the Company's officers, directors and board members were issued 3,225,000 common stock options, of which 1,725,000 were issued for services valued at $58,650 and 1,500,000 were issued for $37,500 in cash.  All options were exercised.  During the year ended June 30, 2001 the Company's president was granted 7,342,000 common stock options, of which 3,842,000 were exercised and recorded as compensation expense.  See Note 6.

The president of the Company was the former sole shareholder of VMH Videomoviehouse.com Inc., a firm which was purchased for $250,000 in 2000 and is now the wholly owned subsidiary of First American Scientific Corp.  See Note 9 and Note 11.

One of the Company's shareholders was issued a valid option to purchase 1,200,000 shares of common stock at $0.019 per share in April 1999.  When this shareholder was prepared to exercise these options, the Company had insufficient authorized capital available.

The Company authorized additional common stock in June 2000, however during this period the market price of the Company's common stock dropped and the shareholder suffered a potential loss of approximately $480,000.  First American's management agreed to issue this shareholder an additional 1,200,000 options for common stock shares to compensate for this potential loss.  The options were exercised and recorded as an operating expense in the year ended June 30, 2001.

The Company issued the former president of the Company 1,295,455 options for common stock to terminate his employment agreement.  These options were exercised for $75,000 and the balance of $70,500 recorded as compensation expense in the year ended June 30, 2001.

NOTE 9 - COMMITMENTS AND CONTINGENCIES

Lease CommitmentsThe Company owns no real property.  On August 1, 1998, the Company negotiated a three-year commercial lease for 740 square feet in Vancouver, British Columbia, at a monthly rental of $1,000.

In May 1996, the Company signed a lease to rent facilities in Bakersfield, California for the industrial processing of gypsum, limestone and specialty products.  The lease expired on April 14, 1998.  Negotiations with a proposed joint venture partner to operate this facility have ended in dispute between the parties and operations of the plant have ceased.  It appears that the legal issues which relate to control and possession of the property and equipment are near resolution.  At the present time, the Company is utilizing the facility for storage of equipment.  No rental payments have been made since the expiration of this lease.

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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 9 - COMMITMENTS AND CONTINGENCIES (continued)

Sales CommitmentThe Company has a sales contract with Vesuvius Inc. (hereinafter "Vesuvius") for the sale of a KDS Micronex.  The purchase price of the machine is $225,000 of which Vesuvius paid $112,500 as a non-refundable deposit.  Under the terms of this agreement, the KDS machine was to be delivered at the time of payment in full.  Because Vesuvius could not meet its obligation to pay the balance, First American and Vesuvius subsequently reached an agreement wherein Vesuvius would find a third party acceptable to First American to purchase the KDS machine and pay the balance due of $112,500.  First American has agreed to apply the forfeited deposit to the sale if a third party is found.  This amount was recognized as other income during the year ended June 2001.

NOTE 10 - ACQUISITION

AGES has issued 5,000 shares of no-par Class A common stock for $0.06 per share to both the Company and to Mr. William E. Barber.  In addition 1,500 Class B common stock shares were issued to Hydro-Quebec Capitech, Inc. for $376,427 in cash.  The Company and Mr. Barber each own 43.48% of AGES, although the Company has management control of AGES and has consolidated the subsidiary.  AGES has signed an agreement with Thermix Combustion Systems Inc. to acquire its engineering expertise in wood burning technologies and in designing Pro-Logic computerized control systems and programs.  AGES also has a license agreement with the Company to use its patents for the manufacture, sale, operation and use of KDS machines and equipment in connection with any application when used in combination with the acquired expertise in wood dust burning technology.











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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 11 - SEGMENT REPORTING

As described in Note 2, the Company has adopted SFAS No. 131.  The Company's operations are classified into two pricipal reporting segments that provide different products or services.

The table below presents information about the Company's reportable segments:



|For Nine Months Ending March 31, 2002
|-------------------------------------



|                              | VMH Videomoviehouse.com Inc. |           | FASC
FAPC
AGES |   | Eliminations |  | Consolidated
|----------------------------- | ---------------------------- | --------- | -------------- | - | ------------ |  | ------------
|External revenue              | $                            | 791,686   |                | $ | 416,401      |  | $           
|Intersegment revenue          |                              | -         |                |   | -            |  |             
|Total net revenue             |                              | 791,686   |                |   | 416,401      |  |             
|Operating income (loss)       |                              | (141,048) |                |   | (848,864)    |  |             
|Depreciation and amortization |                              | 94,002    |                |   | 231,377      |  |             
|Interest expense              |                              | -         |                |   | -            |  |             
|Net identifiable assets       | $                            | 459,854   |                | $ | 3,361,892    |  | $           
|General corporate assets      |                              |           |                |   |              |  |             
|Total assets                  |                              |           |                |   |              |  |             



|For Year Ending June 30, 2001
|-----------------------------



|                              | Videomoviehouse |          | FASC
FAPC |   | Eliminations |  | Consolidated
|----------------------------- | --------------- | -------- | --------- | - | ------------ |  | ------------
|External revenue              | $               | 7,122    |           | $ | -            |  | $           
|Intersegment revenue          |                 | -        |           |   | -            |  |             
|Total net revenue             |                 | 7,122    |           |   | -            |  |             
|Operating income (loss)       |                 | (21,151) |           |   | (2,720,513)  |  |             
|Depreciation and amortization |                 | -        |           |   | 365,298      |  |             
|Interest expense              |                 | -        |           |   | -            |  |             
|Net identifiable assets       | $               | 440,756  |           | $ | 3,479,632    |  | $           
|General corporate assets      |                 |          |           |   |              |  |             
|Total assets                  |                 |          |           |   |              |  |             
|                              |                 |          |           |   |              |  |             

VMH Videomoviehouse.com Inc., the first reportable segment, derives its revenue from sales of videos DVD's, CD's and advertising on its website.

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FIRST AMERICAN SCIENTIFIC CORP.
Notes to the Consolidated Financial Statements
March 31, 2002

NOTE 11 - SEGMENT REPORTING (continued)

First American Scientific Corp, First American Power Corp. and Alternative Green Energy Systems, Inc. BC Ltd., the second reportable segment, derive their revenues from the sale of KDS equipment throughout the United States and Europe.

The Company's subsidiary, FAPC, provides research and development services exclusively to First American Scientific Corp.

The accounting policies for the aforementioned reportable segments are the same as those described in the summary of significant accounting policies.

NOTE 12 - EXTRAORDINARY GAIN

Forgiveness of Debt During the year ended June 30, 2001, the Company negotiated debt settlement agreements with various suppliers and vendors.  These transactions resulted in an extraordinary gain of $146,500 for the year ending June 30, 2001.

NOTE 13 - SPIN OFF OF VMH VIDEOMOVIEHOUSE.COM, INC.

On June 11, 2001 the Company's board of directors recommended and approved a motion that VMH Videomoviehouse.com Inc. spin off into its own separate fully reporting OTC publicly traded company.  First American Scientific Corp. is taking steps to divest itself of VMH Videomoviehouse.com Inc.  and is currently answering inquires from the Securities and Exchange Commission concerning the registration of the subsidiary's stock.











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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR RESULTS OF OPERATIONS

Three Months ending March 31, 2002

LIQUIDITY AND CAPITAL RESOURCES

First American Scientific  (the Company) was incorporated April 12, 1995 as a development stage company.

Bakersfield Plant

From May 1997 until June 1998 it operated a pilot project in Bakersfield, which confirmed that, the technology worked for industrial minerals, primarily gypsum. A joint venture to operate the plant ended in dispute between the parties and operation of the plant ceased. The dispute, where FASC is the plaintiff, was settled before the court of California, and, subsequent to the date of these statements, the equipment has released to FASC. The two fully operational KDS machines and complete material handling bagging equipment has been moved to a new location in California where it is undergoing a complete refurbishing and being upgrade for a future project.

Patents

The Company irrevocably acquired all patent rights to the KDS technology in December 1999, free and clear of all encumbrances or future royalty obligations.  In April 2001, the Company filed applications for two new process patents, one for the cryogenic freezing and shattering scrap rubber, and the other for extraction of precious metals using the KDS  equipment. Both applications are patent pending status.

Vancouver Research site

In July 2000, the company reclaimed one of its KDS systems and relocated it to Vancouver, British Columbia, Canada where it is now being used for research for testing of improvements to the technology.

It  has been completely retrofitted and is being used for research, testing and demonstrations on various types of products. Improvements are continually being made to the equipment and a new, more powerful machine, the KDS 250 has also been constructed and is operation at the same location. The more powerful machine was need to process feedstock, such as biomass, which has a  higher moisture content than industrial minerals.  Further design modifications have been made to attach an auxiliary water extraction system to the exhaust blower to further enhance the drying process.

Ireland Research & Development

Research and development of the KDS system at the company's research facility in Ireland  has been finalized with marginal success with rubber and human waste. The equipment has been sold and moved to a location outside Dublin to be put into production processing a combination of food and wood waste. Final details of the negotiations will be announced soon as they are finalized.

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Rubber Application

In March 2001, the Company entered into an agreement with P.E. Coulter P.Eng, to re-design the KDS system to cryogenically freeze and process scrap rubber. The system was designed and a patent application was filed in April 2001. Subsequently, an agreement with Coulter and his investment group to purchase a KDS system could not be reached and the proposed agreement was never consummated. Subsequently, FASC s engineering staff took over work on the project and submitted full documentation to our patent agent for filing.

Cloverdale Demonstration Centre

Construction of the new Cloverdale demonstration and sales center was completed in April 2002 and is now in full operation. The sales offices, located adjacent to the demonstration center on the same property, was completed and occupied by FASC in July 2001.

Alternative Green energy Systems Inc (AGES)

In November 2001, the Company in partnership with Thermix Combustion Systems Inc. incorporated a new Canadian company " Alternative Green energy Systems Inc" ( AGES ) to develop and market a combined  biomass disintegration and combustion system for creating BTU s from waste wood ( biomass ). IN February 2002, Hydor Quebec Capitech Inc became a 20 % shareholder in AGES for their commitment to invest $ 1,000,000 CDN in AGES.  $ 600,000 was received in March 2002 with the balance due, subject to the sale of the first system, in August 2002. In January 2002 a KDS machine was shipped to Montreal where it is being re-designed to adapt to the system and Thermix management and engineering staff will market the combined system to their existing clients in the forestry and pulp and paper industry.  When adequate technical data is developed in Montreal, it will be made available to Honeywell International who have expressed interest in forming a strategic alliance with FASC to market the system. Responsibility for continuing technical discussions and testing for the Honeywell proposal are now being handled by AGES.

Beaupre Explorations Ltd Joint Venture

In August  2000, the Company entered into an agreement with Beaupre Explorations Ltd. to re-design the KDS machine to extract gold from ore taken from Beaupre's gold claims on Valentine Mountain near Sooke, BC, Canada. The implementation of the agreement was dependant on FASC first patenting the process, then proving sufficient production volume to make the project economically viable. After extensive  testing and re-design, in September 2001, Dr. Robert Salter PhD, P.Eng, mining consultant issued a report indicating that, after makings several recommended changes, the KDS equipment is capable of processing 43 tons of ore per day, sufficient to move the project to the next Phase. In preparation for final bench testing, a KDS 300 system has been moved to Sooke BC.  Phase II testing indicated a re-designed hardened hub and batter system  was necessary to provide sustained production levels and  is expected to be fabricated and installed before the end of the fiscal year. If results satisfactory to both parties are achieved, a pre-arranged 50/50 joint venture partnership between Beaupre and FASC will be implemented.

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RESULTS OF OPERATIONS - QUARTER ENDED  March 31, 2002

The Company continues to focus on strengthening its balance sheet with current assets of  $1,482,600 and current liabilities of $ 342,730 providing for a positive working capital  ratio of  4.3  to 1 . This compares to current assets of $ 438,796 and current liabilities of $ 172,185 as of June 30, 2001. As of March 31, 2002, the company had $ 420,456 cash on hand which is sufficient to maintain its operation for the next year.  No  action has been taken by management to seek additional capital from new equity securities offerings, or other fund raising activities.

In accordance with GAAP, the two machines in Bakersfield and the one machine in Ireland have been written down to a value of $ 150,000 USD each and have been reclassified as inventory pending a sale. During the quarter, two machines were sold, and there is one sale pending.

Revenue for the quarter consisted of internet video sales by VideoMovieHouse.com in the amount of $375,305, and equipment sales by FASC of was $ 303,383. Video sales in the previous quarter were $ 347,710 and there were no equipment sales.

As of March 31, 2002 there were 139,763,018 shares issued and outstanding.

VMH VideoMovieHouse.com Inc

Development of the Internet site VideoMovieHouse.com  is completed with and the site was launched and open for business on May 15, 2001. The site initially offers catalogue merchandise for sale over the Internet, and plans to develop into a full-scale sales and rental operation as advancement in technology permits. The project is expected to produce modest positive cash flow in its first year of operation. Plans are currently underway to "spin off " the business which will be taken public based on its own merits.  SB - 2 documents have been filed with the SEC and are currently under their review.

A separate Management Discussion and Analysis for our subsidiary VMH VideoMovieHouse.com Inc is attached to this filing.

INFLATION

Inflation has not been a factor effecting current operations, and is not expected to have any material effect on operations in the near future.

FORIEGN OPERATIONS

The company rents office space in West Vancouver, and Cloverdale BC, Canada  which serve as administrative and sales offices. The Cloverdale demonstration site is currently under construction and is expected to be operational before the end of the year.

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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 on this 15th day of May, 2002.

FIRST AMERICAN SCIENTIFIC CORPORATION
(Registrant)

By:	/s/ Cal Kantonen
Cal Kantonen, President, Chief Financial Officer and Chairman of the Board Of Directors















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