<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(MARK ONE)

  X        Quarterly Report pursuant to Section 13 or 15(d) of the Securities 
-----      Exchange Act of 1934

For the quarterly period ended June 30, 1998

           Transition report pursuant to Section 13 or 15(d) of the Securities 
-----      Exchange Act of 1934

For the transition period from ______________________ to ____________________

Commission File No. 0-18785


                      OXBORO MEDICAL INTERNATIONAL, INC.
-------------------------------------------------------------------------------
     (Exact name of small business issuer as specified in its charter)

         Minnesota                                           41-1391803
--------------------------------                        --------------------
(State or other jurisdiction of                           (I.R.S. Employer 
incorporation or organization)                           Identification No.)

13828 Lincoln Street NE, Ham Lake, Minnesota                    55304
--------------------------------                        --------------------
(Address of principal executive offices)                      (ZIP Code)

Issuer's telephone number, including area code:            (612) 755-9516
                                                        --------------------

                                No Change
-------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last 
report)

Indicate by check mark whether the issuer (1) has filed all reports required 
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 
during the past 12 months (or for such shorter period that the issuer was 
required to file such reports), and (2) has been subject to such filing 
requirements for the past 90 days. Yes  X   No
                                       ---

     The number of shares of the issuer's Common Stock outstanding at 
June 30, 1998 was 3,168,942 shares.

<PAGE>



                       OXBORO MEDICAL INTERNATIONAL, INC.

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                     Page No.
                                                                                  --------------
<S>                                                                               <C>
                               PART I. FINANCIAL INFORMATION

Item 1.           Financial Statements

                  Condensed Consolidated Balance Sheets as of
                  June 30, 1998 (unaudited) and September 30, 1997                      3

                  Condensed Consolidated Statements of Operations for Three Months 
                  and Nine Months Ended June 30, 1998 and 1997  (unaudited)             4
                  
                  Condensed Consolidated Statements of Cash Flows for
                  Nine Months Ended June 30, 1998 and 1997 (unaudited)                  5

                  Notes to Condensed Consolidated Financial Statements (unaudited)      6

Item 2.           Management's Discussion and Analysis                                  8

                               PART II. OTHER INFORMATION

Item 1.           Legal Proceedings                                                    10

Item 6.           Exhibits and Reports on Form 8-K                                     11

Signature                                                                              11
</TABLE>

                                       2

<PAGE>



                          PART I. FINANCIAL INFORMATION
Item 1.  Financial Statements
                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                     June 30,                  September 30,
                                                                                       1998                         1997
                                                                                 -----------------         ---------------------
                                                                                   (unaudited)
<S>                                                                              <C>                       <C>
ASSETS
CURRENT ASSETS:
       Cash and cash equivalents                                                    $     114,881             $     124,815
       Accounts receivable, less allowance for doubtful
           accounts of $22,232 and $28,276, respectively                                  734,257                   719,547
       Inventories                                                                      1,803,760                 1,659,838
       Deferred income taxes                                                              188,000                   188,000
       Other current assets                                                               243,514                   250,329
                                                                                 -----------------         ---------------------
       TOTAL CURRENT ASSETS                                                             3,084,412                 2,942,529

PROPERTY AND EQUIPMENT:
       Building                                                                           905,366                   891,919
       Land                                                                                57,211                    57,211
       Furniture and equipment                                                          1,295,054                 1,243,080
                                                                                 -----------------         ---------------------
                                                                                        2,257,631                 2,192,210
       Less accumulated depreciation                                                     (966,719)                 (841,582)
                                                                                 -----------------         ---------------------
                                                                                        1,290,912                 1,350,628
INVESTMENTS                                                                               254,835                   203,770
INVENTORIES                                                                               851,000                   910,000
OTHER ASSETS                                                                              132,975                   171,250
                                                                                 -----------------         ---------------------
       TOTAL ASSETS                                                                 $   5,614,134             $   5,578,177
                                                                                 -----------------         ---------------------
                                                                                 -----------------         ---------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
      Current maturities of long-term obligations                                   $       6,411             $       6,411
      Note payable to bank                                                                388,313                   131,313
      Accounts payable                                                                    154,627                   231,704
      Accrued salaries, wages, payroll taxes                                              191,127                   245,126
      Income taxes payable                                                                 23,742                    32,602
      Other accrued expenses                                                              104,811                   195,139
                                                                                 -----------------         ---------------------
      TOTAL CURRENT LIABILITIES                                                           869,031                   842,295

LONG TERM OBLIGATIONS                                                                     381,861                   386,754
DEFERRED INCOME TAXES                                                                     115,000                   115,000

SHAREHOLDERS' EQUITY:
       Common stock                                                                        31,690                    22,586
       Additional paid-in capital                                                       2,737,399                 1,313,057
       Retained earnings                                                                2,981,045                 2,992,291
           Less:
           Receivable from ESOP                                                          (174,306)                  (93,806)
           Stock subscription receivable                                                 (318,746)                     -
           Shares in escrow - Employee Agreement                                         (708,840)                     -
           Shares in escrow - Royalty Agreement                                          (300,000)                     -
                                                                                 -----------------         ---------------------
TOTAL SHAREHOLDERS' EQUITY                                                              4,248,242                 4,234,128
                                                                                 -----------------         ---------------------

      TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                    $   5,614,134             $   5,578,177
                                                                                 -----------------         ---------------------
                                                                                 -----------------         ---------------------
</TABLE>

    See accompanying notes to condensed consolidated financial statements.

                                       3

<PAGE>


                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                         Three Months Ended                             Nine Months Ended          
                                                               June 30                                       June 30
                                              ----------------------------------------     ----------------------------------------
                                                    1998                   1997                 1998                    1997
                                              ------------------    ------------------     ------------------    ------------------
<S>                                           <C>                   <C>                    <C>                    <C>
Net sales                                          $1,367,603             $1,185,167           $3,772,149             $3,486,462
Cost of goods sold                                    483,247                374,792            1,297,111              1,013,166
                                              ------------------    ------------------     ------------------    ------------------
Gross margin                                          884,356                810,375            2,475,038              2,473,296

Selling, general and administrative expenses          871,068                931,867            2,478,111              2,512,394
                                              ------------------    ------------------     ------------------    ------------------
Operating income (loss)                                13,288               (121,492)              (3,073)               (39,098)

Interest and other income (expense)
                                                       (1,029)               (15,442)             (10,673)               (25,760)
                                              ------------------    ------------------     ------------------    ------------------

Earnings (loss) before income taxes                    12,259               (136,934)             (13,746)               (64,858)

Income tax provision (benefit)                          2,500                (31,694)              (2,500)                (9,287)
                                              ------------------    ------------------     ------------------    ------------------
Net earnings (loss)                                $    9,759             $ (105,240)          $  (11,246)          $    (55,571)
                                              ------------------    ------------------     ------------------    ------------------
                                              ------------------    ------------------     ------------------    ------------------

Net earnings (loss) per share
       Basic                                       $        -             $     (.04)          $        -           $       (.02)
       Diluted                                     $        -             $     (.04)          $        -           $       (.02)

Weighted average common and common
  equivalent shares outstanding
       Basic                                        3,168,942              2,698,392            2,740,852              2,692,997
       Diluted                                      3,168,942              2,698,392            2,740,852              2,692,997    
</TABLE>

    See accompanying notes to condensed consolidated financial statements.

                                       4

<PAGE>

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                      Nine Months Ended
                                                                                                           June 30
                                                                                    ----------------------------------------------
                                                                                           1998                      1997
                                                                                    --------------------      -------------------
<S>                                                                                 <C>                       <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
      Net loss                                                                             $ (11,246)                $ (55,571)
      Adjustments to reconcile net loss to net cash used in operating activities:
           Depreciation and amortization                                                     132,344                   135,810
           Compensation expense related to stock options                                      12,500                      --
     Change in current assets and current liabilities:
           Accounts receivable                                                               (14,710)                  (34,770)
           Inventories                                                                       (84,922)                 (148,762)
           Other current assets                                                                6,815                   (74,895)
           Accounts payable                                                                  (77,077)                 (102,865)
           Income taxes payable                                                               (3,500)                  (29,000)
           Accrued salaries, wages, payroll taxes and other accrued expenses                (144,327)                  (23,733)
                                                                                    --------------------      -------------------
           NET CASH USED IN OPERATING ACTIVITIES                                            (184,123)                 (333,786)

CASH FLOWS FROM INVESTING ACTIVITIES:
      Long-term investment                                                                   (51,065)                  (59,208)
      (Additions to) reduction of other assets                                                38,275                   (52,181)
      Purchase of property and equipment                                                     (72,628)                  (85,486)
      Repurchase of stock                                                                     --                       (95,298)
                                                                                    --------------------      -------------------
           NET CASH USED IN INVESTING ACTIVITIES                                             (85,418)                 (292,173)

CASH FLOWS FROM FINANCING ACTIVITIES:
      Proceeds from exercise of stock options                                                 --                        90,000
      Payment of stock subscription                                                           --                        80,000
      Proceeds from ESOP payment                                                               7,500                     7,500
      Payment on long-term debt                                                               (4,893)                   (5,030)
      Net borrowings under note payable to bank                                              257,000                   500,000
                                                                                    --------------------      -------------------
           NET CASH PROVIDED BY FINANCING ACTIVITIES                                         259,607                   672,470
                                                                                    --------------------      -------------------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                          (9,934)                   46,511

CASH AND CASH EQUIVALENTS, at beginning of period                                            124,815                    13,323
                                                                                    --------------------      -------------------
                                                                                    --------------------      -------------------
CASH AND CASH EQUIVALENTS, at end of period                                                $ 114,881                 $  59,834
                                                                                    --------------------      -------------------
                                                                                    --------------------      -------------------

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the nine months ended June 30 for:
    Income taxes                                                                           $   6,360                 $  29,000
</TABLE>

     See accompanying notes to condensed consolidated financial statements.

                                       5

<PAGE>

         OXBORO MEDICAL INTERNATIONAL, INC. AND CONSOLIDATED SUBSIDIARY
               NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        NINE MONTHS ENDED JUNE 30, 1998
                                   (UNAUDITED)

1.         Basis of Financial Statement Presentation

           The accompanying unaudited condensed consolidated financial 
           statements have been prepared by the Company pursuant to the rules 
           and regulations of the Securities and Exchange Commission. Certain 
           information and footnote disclosures normally included in financial 
           statements prepared in accordance with generally accepted 
           accounting principles have been condensed or omitted pursuant to 
           such rules and regulations. Although management believes that the 
           disclosures are adequate to make the information presented not 
           misleading, it is suggested that these interim consolidated 
           financial statements be read in conjunction with the Company's most 
           recent audited consolidated financial statements and notes thereto. 
           In the opinion of management, all adjustments (which include only 
           normal recurring adjustments) necessary for a fair presentation of 
           the financial position, results of operations and cash flows for 
           the interim periods presented have been made. Operating results for 
           the three months and nine months ended June 30, 1998 are not 
           necessarily indicative of the results that may be expected for the 
           year ending September 30, 1998.

 2.         Inventories

<TABLE>
<CAPTION>
                                                                              June 30,                  September 30,
                                                                                1998                         1997
                                                                         --------------------      ----------------------
<S>                                                                      <C>                       <C>
           Inventories consist of:
               Raw materials                                                   $1,598,038                  $1,385,987
               Finished goods                                                   1,056,722                   1,183,851
                                                                         --------------------      ----------------------
                                                                               $2,654,760                  $2,569,838
                                                                         --------------------      ----------------------
                                                                         --------------------      ----------------------
</TABLE>

           The Company produces inventory in anticipation of customer demand. 
           Although management believes its estimated carrying value of 
           inventory is appropriate, it is possible that continuing limited 
           sales of various product lines could result in a significant 
           reduction of the value of this inventory, which could have a 
           material adverse effect on the Company.

3.         Shareholders' Equity

           Changes in shareholders' equity during the nine months ended June 30,
           1998 were as follows:

<TABLE>
<CAPTION>
<S>                                                                                       <C>
           Shareholders' equity at September 30, 1997                                     $4,234,128
           Receivable from ESOP (a)                                                          (88,000)
           Payment on ESOP receivable                                                          7,500
           Stock subscription receivable (b)                                                (318,746)
           Shares issued into escrow - Employment Agreement (c)                             (708,840)
           Shares issued into escrow - Royalty Agreement (d)                                (300,000)
           Paid-in capital received (e)                                                    1,424,342
           Common stock issued (f)                                                             9,104
           Net (loss) for the period (g)                                                     (11,246)
                                                                                          ----------

           Shareholders' equity at June 30, 1998                                          $4,248,242
                                                                                          ----------
                                                                                          ----------
</TABLE>

                                       6

<PAGE>

           (a)       On January 16, 1998, the Company issued 80,000 shares of 
                     its common stock to the Company's ESOP.  The stock was 
                     issued at $1.10 per share.

           (b)       On January 16, 1998, various officers and directors
                     exercised stock options to purchase 300,364 shares of
                     common stock. The average exercise price was $1.061 per
                     share. A stock subscription receivable of $318,746 was
                     established concurrent with the exercises, payable over
                     five years. The Company also received a $5,360 tax benefit
                     related to this transaction.

           (c)       On February 25, 1998, 360,000 shares of newly issued common
                     stock were placed in escrow in connection with an amendment
                     to the Employment Agreement with an officer of the Company.
                     The stock was issued at $1.969 per share.

           (d)       On February 25, 1998, 150,000 shares of newly issued common
                     stock were placed in escrow in connection with an amendment
                     to the Royalty Agreement with an officer of the Company.
                     The stock was issued at $2.00 per share.

           (e)       Paid-in capital increased by $1,424,342 due to the above 
                     transactions.

           (f)       Common  stock  increased  by $8,904 due to the above  
                     transactions.  Common stock also  increased  by an  
                     additional  $200 to account for options paid for by an 
                     officer in fiscal 1997.

           (g)       Operations during the nine months ended June 30, 1998 
                     resulted in a net loss of $11,246.

           Earnings Per Share
 
           The Company's basic net earnings (loss) per share amounts have been 
           computed by dividing net earnings (loss) by the weighted average 
           number of outstanding common shares. The Company's diluted net 
           earnings (loss) per share is computed by dividing net earnings 
           (loss) by the weighted average number of outstanding common shares 
           and common share equivalents relating to stock options, when 
           dilutive. 

           For the three months ended June 30, 1998 no common share 
           equivalents were included in the computation of diluted net 
           earnings per share as the effect would have been anti-dilutive. 
           For the three months ended June 30, 1997, and the nine months 
           ended June 30, 1998 and 1997, the Company reported net losses and 
           accordingly, no common share equivalents were included in the 
           computation of diluted net loss per share.

           Options to purchase 40,000 and 140,364 shares of common stock with 
           a weighted average exercise price of $1.63 and $1.31 were 
           outstanding during the three months ended June 30, 1998 and 1997, 
           but were excluded from the computation of common share equivalents 
           because their exercise prices were greater than the average market 
           price of the common shares.

           Options to purchase 60,121 and 127,031 shares of common stock with 
           a weighted average exercise price of $1.50 and $1.46 were 
           outstanding during the nine months ended June 30, 1998 and 1997, 
           but were excluded from the computation of common share equivalents 
           because their exercise prices were greater than the average market 
           price of the common shares.
           

4.         Supplemental Disclosure of Cash Flow Information

           The Company paid $38,866 and $51,661 in interest during the nine
           months ended June 30, 1998 and 1997, respectively, and received cash
           of $13,594 and $25,567 as interest payments during the nine months
           ended June 30, 1998 and 1997, respectively.

5.         Recently Issued Accounting Standards

           In June 1997, the Financial Accounting Standards Board (FASB) issued
           SFAS No. 130, "Reporting Comprehensive Income," which is effective
           for fiscal years beginning after December 15, 1997. SFAS No. 130
           establishes standards for the reporting and display of comprehensive
           income and its components. Comprehensive income includes certain
           non-owner changes in equity that are currently excluded from net
           income. Because the 

                                       7

<PAGE>

           Company historically has not experienced transactions that would 
           be included in comprehensive income, the adoption of SFAS No. 130 
           is not expected to have a material effect on the financial 
           position, results of operations or cash flows of the Company.

           The FASB also issued SFAS No. 131, "Disclosures about Segments of
           Enterprise and Related Information" effective for fiscal years
           beginning after December 15, 1997. SFAS No. 131 requires public
           companies to report certain information about operating segments in
           their financial statements, and establishes related disclosures about
           products and services, geographic areas and major customers. SFAS No.
           131 does not need to be applied to interim financial statements in
           the initial year of application; however, comparative information for
           interim periods in the initial year of application will be reported
           in the financial statements for interim periods in fiscal 2000.

           The AICPA's Accounting Standard Executive Committee has issued SOP
           98-1, "Accounting for the Costs of Computer Software Developed or
           Obtained for Internal Use." Capitalized costs of internal-use
           software projects consist of external direct costs of materials and
           services used to develop or purchase internal-use software, payroll
           and payroll-related costs, and interest costs incurred during the
           development of internal-use software. SOP 98-1 is effective for
           fiscal years beginning after December 15, 1998 for costs incurred in
           those fiscal years for all projects, including projects in progress
           when the SOP is adopted. The adoption of this standard is not
           expected to have a material effect on the financial statements of the
           Company.

Item 2.  Management's Discussion and Analysis

RESULTS OF OPERATIONS

The Company develops, assembles and markets disposable medical products for use
in general and cardiovascular surgery (Medical). Its wholly-owned subsidiary,
Oxboro Outdoors, Inc. (Outdoors), develops and markets products for outdoor
recreational use.

Net sales during the three-month and nine-month periods ended June 30, 1998 
increased by 15.4% and 8.2%, respectively, as compared to the  corresponding 
periods in the previous fiscal year.

Medical sales for fiscal 1998 for the three-month and nine-month periods were
$1,150,693 and $3,366,026, respectively, representing increases of 5.6% for both
periods compared to the corresponding prior periods. Increases were realized in
sales to hospitals, international distributors, dealers/distributors, with a
slight decrease in sales (2%) to surgical kit packing companies.

Outdoors sales for fiscal 1998 for the three-month and nine-month periods
were $216,911 and $406,123, respectively, compared to $95,078 and $299,158 for
the comparable prior periods. The increases of Outdoors sales result
almost entirely from sales of National Football League licensed product.

Consolidated  gross margin was 64.7 % for the  three-month  period and 65.6% 
for the  nine-month  period ended June 30, 1998,  as compared to 68.4% and 
70.9%, respectively, for the same periods in fiscal 1997.

                                       8

<PAGE>

For Medical, the gross margin was 68.4% and 69.0% for the three-month and 
nine-month periods ended June 30, 1998, respectively, as compared to 71.9% and 
75.0% for the same periods in fiscal 1997. 

For Outdoors, the gross margin was 45.0% and 37.6%, respectively, for the 
three-month and nine-month periods ended June 30, 1998, compared to 28.0% and 
29.3% respectively, for the three and nine-month periods in fiscal 1997.

The decreases in gross margin for Medical were due mainly to the 
establishment of a regulatory compliance office, CE Certification approval 
processes, and general compliance activities which resulted in an increase in 
cost of manufacturing.

For Outdoors, the increase in gross margin was due mainly to increased sales 
and the mix of products sold.

Selling, general and administrative ("SG&A") expenses decreased 6.5% for the 
three-month period and 1.5% for the nine-month period as compared to the 
prior periods.

For the nine months ended June 30, 1998, Medical SG&A expenses increased by 
approximately $104,830, including increases from certain one-time expenses, 
such as $102,696 for compliance activities, $26,709 in non-conforming product 
expenses, $51,537 in consulting fees, and $214,000 attributable to a proxy 
contest. These were offset in part by decreases in several categories of 
operating expenses. During the third quarter of fiscal 1997, the Company 
incurred expenses of $152,590 in connection with the termination of the prior 
Chief Executive Officer.

For the nine months ended June 30, 1998, Outdoors SG&A expenses decreased by 
$139,114, primarily due to a decrease in advertising costs of $152,777. The 
Company believes that the reduction in spending on advertising may have had a 
negative impact on Outdoors sales.

Earnings (loss) before income taxes during the three-month and nine-month  
periods ended June 30, 1998 were $12,259 and ($13,746),  respectively,  
compared to ($136,934) and ($64,858), respectively, for the corresponding 
periods of fiscal 1997.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 1998, the Company had working capital of $2,215,381, compared 
to $2,100,234 at September 30, 1997, and long-term debt (net of current 
maturities) of $381,861. As of June 30, 1998 the Company had $114,881 in 
cash, compared to $124,815 at September 30, 1997.

During the nine months ended June 30, 1998, the Company used $184,123 net 
cash in operating activities, including an increase of $84,922 in inventories 
and decreases of $77,077 in accounts payable, $53,999 in accrued salaries, 
wages, payroll taxes and $90,328 in other accrued expenses.

The Company used $85,418 in investing activities during the nine months ended 
June 30, 1998, primarily for the purchase of property and equipment.

During the nine months ended June 30, 1998 the Company renewed its line of 
credit of $1,500,000 subject to certain terms and conditions related to the 
Company's financial performance and management stability. At June 30, 1998, 
the Company was in compliance with all covenants; however, there can be no 
assurance that the Company will continue to be in compliance in the future. 
As of June 30, 1998 the Company's outstanding balance on this line of credit 

                                       9

<PAGE>

was $388,313. The Company believes that any additional funding necessary 
during fiscal 1998 would be sufficiently available depending on the continued 
availability of funds from the Company's line of credit.

The Company recently announced that its Chief Executive Officer would be 
retiring effective September 1, 1998. The terms of his retirement 
compensation are currently being negotiated.

YEAR 2000

The Company has assessed and continues to assess the impact of the Year 2000 
issue on its reporting systems and operations. The Year 2000 issue exists 
because many computer systems and applications currently use two-digit fields 
to designate a year. As the century date occurs, date sensitive systems may 
recognize the Year 2000 as 1900 or not at all. This inability to recognize or 
properly treat the Year 2000 may cause systems to process critical financial 
and operational information incorrectly.

Most systems under which the Company is currently operating recognize the 
Year 2000. The Company plans to devote the necessary resources to resolve all 
significant Year 2000 issues in a timely manner and has not yet quantified the 
cost of any required modifications. If Year 2000 modifications are not 
properly completed either by the Company or any entities with whom the 
Company conducts business, which include approximately 3800 hospitals, the 
Company could be adversely impacted.

FORWARD-LOOKING STATEMENTS

Forward-looking statements herein are made pursuant to the safe harbor 
provisions of the Private Securities Litigation Reform Act of 1995. There are 
certain important factors that could cause results to differ materially from 
those anticipated by some of the statements made herein. Investors are 
cautioned that all forward-looking statements involve risks and uncertainty. 
Among the factors that could cause actual results to differ materially are 
the following: market acceptance of new products, changes in competitive 
environment, general conditions in the industries served by the Company's 
products, personnel changes and associated costs, financial obligations under 
retirement agreement with senior management, continued availability of bank 
financing and related costs, overall economic conditions including inflation, 
potential business combinations or divestitures, and timeliness and 
cost of regulatory compliance activities and any related impact on sales.

                           PART II. OTHER INFORMATION

Item 1.    Legal Proceedings

           The Company previously reported a favorable jury verdict in an action
brought by Up North Communications, Ltd. ("Up North") against the Company and
Outdoors, in Minnesota District Court, Anoka County. Up North sought payment of
approximately $64,000, plus interest, for goods and services provided to
Outdoors. Outdoors asserted a counterclaim against Up North alleging breach of
contract, breach of warranty and misrepresentation, seeking damages in excess of
$50,000, for Up North's failure to comply with the contract by supplying
defective goods and services and misrepresenting its abilities and experience. A
jury trial held in late 1997 resulted in a jury verdict in favor of the Company
and Outdoors for between $19,000 and $26,700, depending on the court's
interpretation of the legal effect of one of the jury's answers to the special
verdict, plus attorneys' fees. Subsequently, post-trial motions were filed by Up
North seeking judgment notwithstanding the verdict ("JNOV") or, in the
alternative, a new trial. Outdoors, in turn, filed a motion seeking a
determination of the amount of attorneys' fees. The motions were heard on March
17, 1998.

                                       10

<PAGE>

        The Court denied Up North's Motion for JNOV and/or a new trial, and 
awarded Outdoors attorneys' fees and costs in the amount of $22,500. Judgment 
was entered in favor of Outdoors against Up North on June 24, 1998 in the 
amount of $43,054, which included the damages, interest and attorneys' fees. 
Up North's time to appeal from the denial of its post-trial motions has 
expired and the time to appeal from the judgment will expire on September 24, 
1998.

Item 6.  Exhibits and Reports on Form 8-K

           (a)  Exhibits

                 27 - Financial Data Schedule

           (b)  Reports on Form 8-K

                 No Reports on Form 8-K were filed during the quarter ended June
                 30, 1998.

                                    SIGNATURE

      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.

                                        OXBORO MEDICAL INTERNATIONAL, INC.


Dated:  August 14, 1998                 By   /s/ Larry A. Rasmusson
                                            ----------------------------------
                                             Larry A. Rasmusson
                                             Its Chief Financial Officer

                                       11