U.S. Securities and Exchange Commission
                        Washington, D.C. 20549

   
                              Form 10-QSB/A
    

(Mark One)
[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934
     For the period ended October 31, 1997
                         ------------------


[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 [No Fee Required]
     For the transition period from                to
                                    --------------


     Commission File number 0-21019
                            -------


                      INNOVATIVE MEDICAL SERVICES
                      ---------------------------
            (Name of small business issuer in its charter)


         California                              33-0530289
-------------------------------              -----------------
(State or other jurisdiction of              (I.R.S. Employer
incorporation or organization)               Identification No.)


            1725 Gillespie Way, El Cajon, California 92020
            ----------------------------------------------
               (Address of principal executive offices)


                             619 596 8600
                             ------------
                       Issuer's telephone number

     Check whether the issuer (1) filed all reports 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
          ------    ------

     State the number of shares outstanding of each of the issuer's classes
of common equity as of the latest practicable date 3,532,851 as of October
31, 1997.

<PAGE>

INNOVATIVE MEDICAL SERVICES
STATEMENTS OF INCOME (Unaudited)
-----------------------------------------------------------------------------

                                                   FOR THE THREE MONTHS ENDED
                                                        OCTOBER 31, 1997
                                                       1997          1996
                                                   --------------------------

Net sales                                           $  435,259    $  219,668 
Cost of sales                                          248,418       160,766 
                                                    ----------    ---------- 

Gross profit                                           186,841        58,902 
                                                    ----------    ---------- 

Selling expenses                                       152,463        33,297 
General and Administrative expenses                    389,199       159,248 
Research and development                                53,265             - 
                                                    ----------    ---------- 

Total operating costs                                  594,927       192,545 
                                                    ----------    ---------- 

Operating income (loss)                               (408,086)     (133,643)
                                                    ----------    ---------- 

Other income and (expense):
Interest income                                              -        44,769 
Dividend income                                         21,709             - 
                                                    ----------    ---------- 

Total other income (expense)                            21,709        44,769 
                                                    ----------    ---------- 

Income (loss) before income taxes                     (386,377)      (88,874)

Federal and state income taxes                             200           200 
                                                    ----------    ---------- 

Net income (loss)                                   $ (386,577)   $  (89,074)
                                                    ==========    ========== 

   
Net (loss) per common share                         $    (0.07)   $    (0.03)
                                                    ==========    ========== 
    


STATEMENTS OF ACCUMULATED DEFICIT
-----------------------------------------------------------------------------

                                                    (unaudited)
                                                   Three Months
                                                       Ended      Year Ended
                                                    October 31,    July 31,
                                                       1997          1997
                                                   ------------------------

Balance, beginning of period                       $(2,198,588)   $ (791,274)

Net income (loss)                                     (386,577)   (1,407,314)
                                                    ----------    ---------- 

Balance, end of period                             $(2,585,165)  $(2,198,588)
                                                    ==========    ========== 

<PAGE>

SIGNATURES

Pursuant to the requirement 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.

                                   INNOVATIVE MEDICAL SERVICES
                                   (Registrant)



                                   By: /s/ MICHAEL L. KRALL
                                      --------------------------------
                                      Michael L. Krall, President/CEO



                                   By: /s/ GARY BROWNELL
                                      --------------------------------
                                      Gary Brownell,
                                      Chief Financial Officer