UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 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 quarter ended March 31, 1998

                                       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 0-27646

                          Gum Tech International, Inc.
         ---------------------------------------------------------------
        (Exact name of small business issuer as specified in it charter)

              Utah                                           87-0482806
              ----                                           ----------
   (State or other jurisdiction                           (I.R.S. Employer
   of incorporation or organization)                    Identification Number)

                             246 East Watkins Street
                                Phoenix, AZ 85004
                     --------------------------------------
                    (Address of principal executive offices)

                                 (602) 252-1617
                            -------------------------
                           (Issuer's telephone number)

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15 (d) of the  Exchange Act during the past 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 __

     There are 6,056,460 shares of the  registrant's  common stock, no par value
outstanding as of May 5, 1998.





<PAGE>

                          GUM TECH INTERNATIONAL, INC.
                                   FORM 10-QSB
                                      INDEX

Part I Financial Information                                             Page

         Item 1.    Condensed Balance Sheet as of
                    March 31, 1998                                         1

                    Condensed Statements of Operations
                    for the three months ended March 31, 1998
                    and 1997                                               3

                    Condensed Statements of Cash Flows
                    for the three months ended March 31, 1998
                    and 1997                                               4

                    Notes to Condensed Financial Statements                5

         Item 2.    Management's Discussion and Analysis of
                    Financial Condition and Results of Operations          6

Part II             Other Information and Signatures                       9


<PAGE>



                          GUM TECH INTERNATIONAL, INC.
                             CONDENSED BALANCE SHEET
                                 March 31, 1998
                                   (Unaudited)

                                     ASSETS

Current  Assets:
      Cash and cash  equivalents                                    $ 2,539,911
      Restricted cash                                                    57,639
      Accounts  receivable, net of allowance for
       doubtful accounts of $48,283                                     834,048
      Inventories                                                     1,081,512
      Notes receivable                                                  150,000
      Interest  receivable                                               26,071
      Prepaid expenses and other                                        108,131
                                                                    -----------

          Total Current Assets                                        4,797,312
                                                                    -----------

Property and Equipment, at cost:

     Machinery and  production  equipment                             3,564,952
     Office furniture and equipment                                     140,865
     Leasehold improvements                                             194,087
                                                                    -----------

     Total Property and Equipment                                     3,899,904

     Less accumulated depreciation                                   (1,070,077)
                                                                    -----------

     Net Property and Equipment                                       2,829,827
                                                                    -----------

Other Assets:


     Intangible assets,  net of accumulated
       amortizat ion of $61,649                                         209,732
     Deposits and other                                                  93,161
                                                                    -----------

          Total Other Assets                                            302,893
                                                                    -----------

          Total Assets                                              $ 7,930,032
                                                                    ===========

                 The accompanying notes are an integral part of
                      these condensed financial statements.


                                       1

<PAGE>




                          GUM TECH INTERNATIONAL, INC.
                             CONDENSED BALANCE SHEET
                                 March 31, 1998
                                   (Continued)
                                   (Unaudited)

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
    Accounts payable                                               $    726,926
    Accrued interest                                                     68,622
    Customer deposits                                                    49,549
    Current portion of long-term  debt                                  474,597
                                                                   ------------

        Total Current Liabilities                                     1,319,694
                                                                   ------------

Long Term Debt, net of current portion above:
    Financial institutions and other                                  4,016,199
    Obligations under capital leases                                     31,269
    Less current portion above                                         (474,597)
                                                                   ------------

        Total Long Term Debt                                          3,572,871
                                                                   ------------

Commitments and Contingencies                                              --

Stockholders' Equity:
    Preferred stock: no par value,
       1,000,000 shares authorized, none
       issued or  outstanding                                              --   
    Common stock: no par value,
       10,000,000 shares authorized,
       5,876,460 shares issued and
       outstanding                                                   12,124,150
    Additional paid in  capital                                       2,144,540
    (Accumulated deficit)                                           (11,231,223)
                                                                   ------------


        Total Stockholders' Equity                                    3,037,467
                                                                   ------------

     Total Liabilities and Stockholders' Equity                    $  7,930,032
                                                                   ============



                  The accompanying notes are an integral part
                    of these condensed financial statements.

                                       2


<PAGE>
<TABLE>
<CAPTION>
                                       GUM TECH INTERNATIONAL, INC.
                                    CONDENSED STATEMENTS OF OPERATIONS
                                                (Unaudited)

                                                                                Three months ended March 31,
                                                                          ------------------------------------
                                                                              1998                     1997
                                                                          ------------------------------------
<S>                                                                       <C>                      <C>        
Net sales                                                                 $ 1,104,431              $   723,611

Cost of sales                                                                 789,828                1,166,453
                                                                          -----------              -----------

           Gross Profit                                                       314,603                 (442,842)

Operating expenses                                                          3,269,269                  627,393
Research and development                                                      114,471                   49,940
                                                                          -----------              -----------

           Income  (Loss) From Operations                                  (3,069,137)              (1,120,175)
                                                                          -----------              -----------

Other Income (Expense):
   Interest and other income                                                   42,808                   31,222
   Interest expense                                                          (123,926)                (739,443)
                                                                          -----------              -----------

           Total Other Income (Expense)                                       (81,118)                (708,221)
                                                                          -----------              -----------

Income (Loss) Before Provision For Income Taxes                            (3,150,255)              (1,828,396)

Provision (benefit) for income taxes                                             --                       --
                                                                          -----------              -----------

Net Income (Loss)                                                         $(3,150,255)             $(1,828,396)
                                                                          ===========              ===========

Net Income (Loss) Per Share of Common Stock:                 
  Basic:
     Weighted Average Number of Common Shares Outstanding                  5,857,571                4,948,740
                                                                         ===========              ===========
      Net Income (Loss) Per Share of Common Stock                        $     (0.54)             $     (0.37)
                                                                         ===========              ===========

  Diluted:
     Weighted Average Number of Common Shares Outstanding                  5,857,571                4,948,740
                                                                         ===========              ===========
      Net Income (Loss) Per Share of Common Stock                        $     (0.54)             $     (0.37)
                                                                         ===========              ===========








                                The accompanying notes are an integral part
                                  of these condensed financial statements.


                                                    3
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
                                 GUM TECH INTERNATIONAL, INC.
                              CONDENSED STATEMENTS OF CASH FLOWS
                                         (Unaudited)

                                                                     Three months ended March 31,
                                                                 ----------------------------------
                                                                     1998                  1997
                                                                 ----------------------------------
<S>                                                              <C>                    <C>  
Cash Flows From Operating Activities:
     Net income (loss)                                           $(3,150,255)           $(1,828,426)
     Adjustments to reconcile net
      income (loss) to net cash (used)
      by operating activities :
        Depreciation                                                  67,323                141,545
        Amortization                                                  13,939                  8,114
        Compensation from forgiveness of
          note receivable                                             66,000                   --
        Compensation from extension of stock options               1,478,750                   --
        Interest expense from beneficial
          conversion feature of notes payable                           --                  665,790
        Accrued interest on notes receivable                          34,093                (35,110)
        Changes in assets and liabilities:
        Decrease in accounts receivable                              248,186                244,795
        Decrease in employee receivable                               61,054                   --
        Decrease in current portion of
          note receivable                                            148,012                   --
        (Increase) decrease in inventories                           (48,130)               289,167
        Decrease in prepaid expenses and other                         8,074                 26,751
        Decrease in deposits and other                                53,313                184,012
        (Decrease) in accounts payable and
          accrued expenses                                            (4,910)               (59,542)
        Increase (decrease) in customer deposits                      34,549                (65,500)
                                                                 -----------            -----------

        Net Cash (Used) By Operating Activities                     (990,002)              (428,404)
                                                                 -----------            -----------
Cash Flows From Investing Activities:
        Capital expenditures                                         (21,780)              (132,531)
        Increase in notes receivable                                    --                 (195,888)
                                                                 -----------            -----------
        Net Cash Provided (Used) By
          Financing Activities                                       (21,780)              (328,419)
                                                                 -----------            -----------

Cash Flows From Financing Activities:
        Proceeds from borrowing                                         --                2,530,000
        Principal payments on notes payable                          (80,487)               (53,976)
        Issuance of common stock upon exercise
          of options                                                  36,000                   --
        Debt issuance costs incurred                                 (11,733)              (258,448)
                                                                 -----------            -----------
        Net Cash Provided (Used) By
          Financing Activities                                       (56,220)             2,217,576
                                                                 -----------            -----------
        Net Increase (Decrease) in Cash
          and Cash Equivalents                                    (1,068,002)             1,460,753

        Cash and Cash Equivalents at
          Beginning of Period                                      3,607,913              1,116,751
                                                                 -----------            -----------

        Cash and Cash Equivalents at End of Period               $ 2,539,911            $ 2,577,504
                                                                 ===========            ===========

Supplemental Disclosure of Cash Flow Information:

        Cash paid during the period for:
              Interest                                           $   125,451            $    39,199
              Income taxes                                              --                     --

                 The accompanying notes are an integral part of
                      these condensed financial statements.


                                       4



</TABLE>

<PAGE>



                          GUM TECH INTERNATIONAL, INC.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)


1    The  accompanying  financial  information  of the  Company is  prepared  in
     accordance with the rules prescribed for filing condensed interim financial
     statements and,  accordingly,  does not include all disclosures that may be
     necessary for complete  financial  statements  prepared in accordance  with
     generally accepted  accounting  principles.  The disclosures  presented are
     sufficient,  in  management's  opinion,  to make  the  interim  information
     presented not misleading.  All adjustments,  consisting of normal recurring
     adjustments,  which are necessary so as to make the interim information not
     misleading,  have been made.  Results of  operations  for the three  months
     ended  March  31,  1998  are  not  necessarily  indicative  of  results  of
     operations  that may be expected for the year ending  December 31, 1998. It
     is recommended  that this  financial  information be read with the complete
     financial statements included in the Company's Annual Report on Form 10-KSB
     for the year ended December 31, 1997  previously  filed with the Securities
     and Exchange Commission.

2    As of  December  31,  1997,  the Company  adopted  Statement  of  Financial
     Accounting  Standards (SFAS) No. 128, "Earnings Per Share", which specifies
     the method of  computation,  presentation  and  disclosure  of earnings per
     share.  SFAS No. 128  requires the  presentation  of two earnings per share
     amounts,  basic and diluted.  Basic earnings per share is calculated  using
     the average number of common shares outstanding. Diluted earnings per share
     is computed on the basis of the average number of common shares outstanding
     plus the dilutive  effect of outstanding  stock options using the "treasury
     stock" method.  The basic and diluted earnings per share are the same since
     the  Company  had a net loss in 1998 and  1997 and the  inclusion  of stock
     options  and  other  incremental  shares  would be  antidilutive.  Options,
     warrants and other incremental  shares to purchase  2,819,812 and 2,933,132
     shares of common  stock at March 31, 1998 and 1997,  respectively  were not
     included  in the  computation  of diluted  earnings  per share  because the
     Company had a net loss and their effect would be antidilutive.




                                        5

<PAGE>

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                       -----------------------------------

Overview

     The  Company  was  organized  in 1991 to  develop,  market  and  distribute
specialty  chewing gum products under its own brand names and on a private label
basis for other chewing gum marketers.  The Company's  first chewing gum product
included a natural  caffeine  substance  marketed to runners and other  exercise
enthusiasts  as a source  of energy  and  carbohydrates.  In 1994 and 1995,  the
Company  raised  funds  through  debt and equity  financings  which were used to
establish a new management team, develop additional chewing gum products,  build
inventories and purchase chewing gum  manufacturing  equipment for the Company's
28,000 square foot  manufacturing  facility which  commenced  operations in late
March,  1996. The facility currently has 46 employees and by the end of 1996 the
Company produced 100% of its chewing gum products.  The Company consolidated its
corporate offices with its manufacturing facility in April, 1998.

     The Company's  current chewing gum products  contain  ingredients  which it
claims (i) reduce tobacco  cravings (under the  "CigArrest"  brand name which is
licensed to Bancroft Pharmaceuticals),  (ii) may reduce the risk of osteoporosis
(under the "Calcium  Gum" brand name,  (iii)  contribute to energy and endurance
(under the "High Gear" "Ginseng  Gum",  "Love Gum", and "Buzz Gum" brand names),
(iv) promote weight loss (under the "ChromaTrim" and "CitrusSlim"  brand names),
(v) reduces free radicals (under the "Complete  Antioxidant  Formula" brand name
and (vi) promotes  oral hygiene and breath  freshness  (under the  "DentaHealth"
brand name). The Company also produces gum under the "Chew and Sooth Zinc" brand
name for the cold and flu season. Sales of CigArrest,  Calcium Gum, Ginseng Gum,
High  Gear and Chew and Sooth  Zinc Gum  commenced  in 1997.  Sales of Buzz Gum,
ChromaTrim,  Love Gum, CitrusSlim and DentaHealth commenced in 1991, 1993, 1994,
1995 and  1996,  respectively.  The  Complete  Antioxidant  Formula  Gum will be
introduced  in  mid-1998.  In  1998,  the  Company  also  plans to  include  its
DentaHealth  product in a line with other oral care products  marketed as an OTC
anti-plaque  oral care  regimen.  These  dental  technologies  will be shared by
several  other market  leaders in 1998-99.  The Company is also involved in many
private  label  endeavors,  including  the research and  development  of various
nicotine and non-nicotine  smoking cessation  products.  Private label customers
market under their own brand names.

     The Company  markets  its  branded  nutrient  and  therapeutic  chewing gum
products directly and through wholesale distributors who distribute primarily to
drug store and convenience  chains (Duane Reade,  Genovese,  CVS, Rite Aid, Drug
Emporium,  Long's,  Thrifty,  Payless,  Phar-Mor,  Eckard and 7-11), mass market
chains (Kmart and Pamida),  major supermarket chains (Smith's,  Randall's,  H.E.
Butt,  Pathmark and Fry's) and to various natural food stores. In addition,  the
Company  sells its  products  in a number  of  international  markets  including
Europe, Asia and Canada.


                                   
                                        6


<PAGE>



Results of Operations  for the three months ended March 31, 1998 compared to the
three months ended March 31, 1997.

     The following table sets forth certain statement of operations  information
expressed  both in  dollars  and as a  percentage  of net sales for the  periods
indicated:

<TABLE>
<CAPTION>

                                                               Three Months Ended December 31,
                                                               -------------------------------
                                                           1998                               1997
                                                           ----                               ----
<S>                                            <C>                 <C>         <C>                        <C> 
Net sales                                      $ 1,104,431         100%        $   723,611                100%
Cost of sales                                      789,828          72           1,166,453                161
Gross profit                                       314,603          28            (442,842)               (61)
Operating expenses                               3,269,269         296             627,393                 87
Research and development                           114,471          10              49,940                  7
Income (Loss) from operations                   (3,069,137)       (278)         (1,120,175)              (155)
Interest and other income                           42,808           4              31,222                  4
Interest expense                                   123,926          11             739,443                102
Provision (benefit) for income taxes                  --           --                 --                  --
Net income (Loss)                               (3,150,255)       (285)         (1,828,396)              (253)
</TABLE>


     Net Sales.  Net sales increased by $380,820,  or 53%, to $1,104,431 for the
three  months  ended March 31, 1998  compared to $723,611  for the three  months
ended March 31, 1997. Private label sales increased to $864,109 in 1998 compared
to $1,100 for the same period in 1997.  The Company saw a decrease of 19% in net
retail sales of its branded products to $185,000 for the period in 1998 compared
to $228,000 for the same period in 1997.

     Cost of Sales.  Cost of sales, as a percentage of net sales,  decreased 89%
to  $789,828  or 72% of net sales  for the three  months  ended  March 31,  1998
compared  to  $1,166,453  or 161% of net  sales  for the  same  period  in 1997.
Approximately  $218,124 of plant  operating  expenses were  allocated to cost of
sales for the period ended March 31, 1998, of which $55,000 was directly related
to depreciation of the plant's manufacturing equipment,  compared to $395,286 of
operating  expenses  and $131,570 of  depreciation  expense for the period ended
March 31, 1997. The Company recorded the sales under its barter  agreements at a
zero value with a cost of sales of  $309,000  for the  period  ending  March 31,
1997.

     Gross Profit. Gross profit, as a percentage of net sales,  increased by 89%
to  $314,603  or 28% of net sales  for the three  months  ended  March 31,  1998
compared to  $(442,842)  or (61%) of net sales for the same period in 1997.  The
increase in gross profit percentage was directly related to the decrease in cost
of sales.

     Operating  Expenses.  Operating  expenses were  $3,269,269,  an increase of
$2,641,876 for the three months ended March 31, 1998 compared to the same period
in 1997. Significant  non-manufacturing  operating expenses for the three months
ended March 31, 1998,  was non-cash  compensation  due to the extension of stock
options to a former officer of the company ($1,478,750),  severance compensation

                                

                                        7

<PAGE>

to  various  officers  of  the  company   ($599,985)   advertising   ($342,797),
administrative   management   labor($228,998),   accounting   and   professional
consulting  fees  ($142,359),  legal fees  ($136,531) and travel and trade shows
($79,432).

     Research  and  Development.  Research  and  Development  expenditures  were
$114,471 for the three  months ended March 31, 1998  compared to $49,940 for the
same period in 1997.  The majority of these costs were related to the production
scale-up of various gums for Nabisco,  Inc. and  Schering-Plough's OTC Aspergum,
an analgesic  gum and Chooz,  an antacid gum.  The Company  also  continued  the
formulations  of various  private label  projects.  These private label products
consisted  of dental  gums,  diet  gums,  multi-vitamin  gums,  ginseng  gum and
nicotine and non-nicotine smoking cessation gums.

     Interest and Other Income and Interest  Expense.  Interest and other income
was $42,808, an increase of $11,586 for the three months  ended March 31,  1998,
primarily as a result of an increase in working  capital from equity  financings
that were invested in short-term investments.  Interest expense was $123,926 for
the three  months  ended March 31,  1998,  a decrease of $615,517  from the same
period in 1997.  During 1997,  the Company  issued  $2,530,000  of  subordinated
convertible notes.  These debentures had a beneficial  conversion feature to the
individual  investors  that resulted in a $665,790  non-cash  charge to interest
expense for the period ended March 31, 1997.

     Net Loss. Net loss increased to $3,150,255 for the three months ended March
31, 1998 compared to a net loss of $1,828,396 for the same period in 1997.

Liquidity and Capital Resources

     As of March 31,  1998,  the  Company's  working  capital was $3.48  million
compared to $5.09 million at December 31, 1997. For the three months ended March
31,  1998,  the  Company  experienced  a  decrease  in cash  used  by  operating
activities of $990,002 primarily as a result of the net loss for the period.

     Investing  activities used $21,780 in cash for the three months ended March
31, 1998 compared to $328,419 of cash used in the same period of 1997.  The cash
used in 1998 was primarily from the purchases of capital equipment.

     Financing  activities used $56,220 in cash the three months ended March 31,
1998 compared to $2.22 million in cash provided for the same period in 1997. The
increase in cash provided in 1997 was due to the Company selling an aggregate of
$2.53 million of convertible debentures in March, 1997.

     The  Company's  future  results of  operations  and other  forward  looking
statements contained in this section, in particular the statement(s)  concerning
plant  efficiencies and capacities,  capital spending,  research and development
and other expenses involve a number of risks and  uncertainties.  In addition to
the factors  discussed  above,  among the other  factors that could cause actual
results to differ  materially  are the  following:  business  conditions and the
general economy;  competitive factors, such as rival gum manufacturers'  pricing
and  marketing  efforts;   availability  of  third-party  material  products  at
reasonable prices; risk of nonpayment of accounts receivable; risks of inventory
obsolescence  due to shifts in market demand;  timing of product  introductions;
and litigation involving product liabilities and consumer issues.

                                        8



<PAGE>


Part II. Other Information

Item 1.  Legal Proceedings
         -----------------

     On October 16, 1996, a lawsuit was filed  against the Company in the United
States District Court for the Central  District of California,  CV-95-9784.  The
action is entitled GCN Products, Inc. vs. Roy Kelly, et al. The complaint, as it
relates to the Company, principally alleges that the Company engaged in unlawful
rebates,  appropriations and overcharges,  commercial bribery,  fraud and unjust
enrichment.  Plaintiff  seeks  compensatory  and punitive  damages.  The Company
denies all allegations and intends to vigorously defend the suit.

     On August 27,  1997, a lawsuit was filed by Paul R.  Janssens-Lens  against
Gum  Tech  International,  Inc.,  in the  case  of  Janssens-Lens  v.  Gum  Tech
International,  Inc.,  Kensington  Securities,  Inc.,  Kirtis Wyatt and Jane Doe
Wyatt in the Superior Court of Arizona, in and for the County of Maricopa,  case
number CV97-15896. The Janssens Lens lawsuit alleges both breach of contract and
tort actions,  including  intentional  interference  with  prospective  economic
advantage,  misrepresentation,  securities  fraud and  consumer  fraud and seeks
compensatory  damages in an amount of no less than $1,680,000,  together with an
award of punitive  damages in an amount to be determined  at trial.  The lawsuit
settled  in the  early  stages  between  plaintiff  Paul  R.  Janssens-Lens  and
defendants  Kensington  Securities,  Inc. and Kirtis Wyatt.  The Company did not
participate in this settlement agreement. The plaintiff is now in the process of
determining  whether he believes he still has a viable  cause of action  against
the Company.  In the event the plaintiff  elects to proceed against the Company,
the Company intends to vigorously defend the lawsuit. The Company believes it is
insured for its costs in this matter.

     On March 26,  1998,  Roy Kaplan filed a charge of  discrimination  with the
California  Department of Fair  Employment and Housing and the Equal  Employment
Opportunity  Commission  alleging  discrimination  based  on age  and  religion.
Specifically,  he alleges that he was terminated  from his position as Executive
Vice  President  of Sales  because of his age (63) and  religion  (Jewish).  The
Company  will  respond to this  charge on or before May 26,  1998.  The  Company
denies that Mr. Kaplan's  termination  was based on his age or his religion.  At
this time, no prediction as to the outcome of the matter can be expressed.

Item 2.  Changes in Securities
         ---------------------
                  None

Item 3.  Defaults Upon Senior Securities
         -------------------------------
                  None

Item 4.  Submission of Matters to a Vote of Security Holders
         ---------------------------------------------------
                  None

Item 5.  Other
         -----
                  None

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

                  A.  Exhibits
                           None






                                        9



<PAGE>



     B. Reports on Form 8-K

     The Company filed a Current  Report on Form 8-K dated February 13, 1998. On
February  10,  1998,  the Board of  Directors  of Gum Tech  International,  Inc.
accepted the  resignation of Chairman,  Chief  Executive  Officer and President,
Gerald N.  Kern  prior to a  scheduled  review of Mr.  Kern's  performance.  The
severance package includes a payment of $200,000, of which, $50,000 will be held
in trust for 120 days and is subject to a non-disparagement  clause. The Company
will also forgive  $116,000 of debt and  officer's  advances owed by Mr. Kern to
the Company.  Additionally,  Mr. Kern received  100,000 shares of Gum Tech stock
options, exercisable up to one year at $5.81 per share.

















                                       10



<PAGE>


                                   SIGNATURES


In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


Gum Tech International, Inc.



 /s/ Gary S. Kehoe
-----------------------
Gary S. Kehoe
President and
Chief Operating Officer


 /s/ Jeffrey L. Bouchy
----------------------
Jeffrey L. Bouchy
Senior Vice President-Chief Financial Officer


May 15, 1998