SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB
(Mark One)

[X]  QUARTERLY  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934

                       For the quarter ended May 31, 1999

                                       OR

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934

                        For the transition period from to

                           Commission File No. 1-11047

                           SPARTA SURGICAL CORPORATION
                           ---------------------------
              (Exact name of small business issuer in its charter)

            Delaware                                             22-2870438
            --------                                             ----------
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)


                              Bernal Corporate Park
           7068 Koll Center Parkway, Suite 425, Pleasanton, CA 94566
           ---------------------------------------------------------
                    (Address of principal executive offices)


                                 (925) 417-8812
                                 --------------
                           (Issuer's telephone number)



     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the Securities 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

     As of July 9,  1999,  3,302673  shares of Common  Stock,  89,983  shares of
Redeemable  Convertible  Preferred Stock,  28,068 shares of Series A Convertible
Redeemable  Preferred  Stock and 39,938 shares of Series AA Preferred Stock were
outstanding.

<PAGE>


                           SPARTA SURGICAL CORPORATION

                                   Form 10-QSB


                                      INDEX

                                                                           Page
                                                                          Number
                                                                          ------
Part I. Financial Information

     Item 1. Financial Statements

             Consolidated Balance
             Sheet as of May 31, 1999                                        1

             Consolidated Statements of
             Operations for the three months
             ended May 31, 1999 and 1998                                     2

             Consolidated Statements of
             Cash Flows for the three months
             ended May 31, 1999 and 1998                                     3

             Notes to Financial Statements                                   4

     Item 2. Management's Discussion and
             Analysis of Financial Condition
             and Results of Operations                                     5 - 7

Part II. Other Information and Signatures                                  8 - 9



<PAGE>
<TABLE>
<CAPTION>


                           SPARTA SURGICAL CORPORATION
                           CONSOLIDATED BALANCE SHEET
                                  May 31, 1999
                                   (Unaudited)

                                     ASSETS

<S>                                                                    <C>
Current Assets:
Cash and Cash Equivalents
Accounts Receivable - Net of Allowance                                       1,000
     for doubtful accounts of $34,000                                      229,000
Inventories                                                              2,016,000
Other                                                                       57,000
                                                                       -----------

     Total Current Assets                                                2,303,000
                                                                       -----------

Property and Equipment, at cost:
Equipment                                                                  419,000
Other                                                                       20,000
                                                                       -----------

                                                                           439,000
Less Accumulated Depreciation                                             (315,000)

     Net Property and Equipment                                            124,000
                                                                       -----------

Other Assets:
Intangible Assets                                                          478,000
Other                                                                      183,000
                                                                       -----------

     Total Other Assets                                                    661,000
                                                                       -----------

     Total Assets                                                      $ 3,088,000
                                                                       ===========

                      LIABILITIES AND STOCHOLDERS' EQUITY

Current Liabilities
Current Portion of Long Term Obligations                               $   571,000
Accounts Payable - Trade                                                   432,000
Accrued Expenses                                                           149,000
                                                                       -----------

     Total Current Liabilities                                           1,152,000
                                                                       -----------

Revolving Credit Facility and Long Term Obligations                      1,777,000

Stockholders' Equity
Preferred Stock: $4.00 par value, 2,000,000 shares authorized;
     1992 Non-Cumulative Convertible Redeemable Preferred Stock:
     165,000 Shares Authorized, 89,983 Shares Issued and Outstanding       360,000
     Series A Cumulative Convertible Preferred Stock:
     30,000 Shares Authorized, 28,068 Shares Issued and Outstanding        112,000
     Series AA Cumulative Convertible Redeemable Preferred Stock:
     875,000 Shares Authorized, 39,938 Shares Issued and Outstanding       160,000
Common Stock: $0.002 par value, 8,000,000 Shares Authorized,
     2,902,673 Shares Issued and Outstanding                                 4,000
Additional Paid in Capital                                               9,395,000
Accumulated Deficit                                                     (9,878,000)
                                                                       -----------

     Total Stockholders' Equity                                            159,000
                                                                       -----------

     Total Liabilities and Stockholder's Equity                        $ 3,088,000
                                                                       ===========



        The accompanying notes are an integral part of these statements.

                                       1
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                                    SPARTA SURGICAL CORPORATION
                               CONSOLIDATED STATEMENTS OF OPERATIONS
                                            (Unaudited)

                                                                             Three Months Ended
                                                                                   May 31,
                                                                         --------------------------
                                                                             1999           1998
                                                                             ----           ----

<S>                                                                      <C>            <C>
Net sales                                                                $   399,000    $   719,000
Cost of sales                                                                185,000        385,000
                                                                         -----------    -----------

      Gross profit                                                           214,000        334,000



Selling, general and administrative expenses                                 147,000        192,000
Depreciation and amortization expenses                                        59,000         67,000
                                                                         -----------    -----------
      Income from Operations                                                   8,000         75,000
                                                                         -----------    -----------

Other income (expense):
   Interest and Other Income                                                    --          206,000
   Interest Expense                                                          (86,000)       (93,000)
                                                                         -----------    -----------

      Total other income (expense)                                           (86,000)       113,000
                                                                         -----------    -----------


      Income Before Provision for Income Taxes                               (78,000)       188,000



   Provision for Income Taxes                                                   --             --
                                                                         -----------    -----------

   Net Income (Loss)                                                     $   (78,000)   $   188,000
                                                                         ===========    ===========


Preferred Stock Dividends                                                     (2,000)        (4,000)
                                                                         -----------    -----------

   Net Income Applicable
      to Common Stockholders Income (Loss)                                   (80,000)       184,000
                                                                         ===========    ===========

   Shares Used to Calculate Basic Net Income (Loss) Per Common Share     $ 1,937,958    $   861,499
                                                                         ===========    ===========

   Basic Net Income (Loss) Per Common Share                              $     (0.04)   $      0.21
                                                                         ===========    ===========

   Shares Used to Calculate Diluted Net Income (Loss) Per Common Share   $ 1,937,958    $ 1,471,708
                                                                         ===========    ===========

   Diluted Net Income (Loss) Per Common Share                            $     (0.04)   $      0.13
                                                                         ===========    ===========


                 The accompanying notes are an integral part of these statements.

                                                2
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                                  SPARTA SURGICAL CORPORATION
                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                                          (Unaudited)

                                                                            Three Months Ended
                                                                                  May 31,
                                                                           ---------------------
                                                                             1999        1998
                                                                             ----        ----

Cash flows from operating activities:
<S>                                                                         <C>        <C>
   Net income (Loss)                                                        (78,000)   $ 188,000
   Adjustments to reconcile net income (loss) to net cash used by
     operating activities:
       Depreciation and amortization                                         59,000       67,000
       Settlement related to disposal of product line                          --       (206,000)
       Changes in operating assets and liabilities:
         Accounts receivable                                                (67,000)    (192,000)
         Inventories                                                         10,000       54,000
         Other assets                                                       (91,000)     (24,000)
         Accounts payable and accrued expenses                             (127,000)      26,000
                                                                          ---------    ---------
            Net cash used in operating activities                          (294,000)     (87,000)

Cash flows from investing activities:
   Capital expenditures                                                      (2,000)      (5,000)
                                                                          ---------    ---------
            Net cash used in investing activities                            (2,000)      (5,000)
                                                                          ---------    ---------
Cash flows from financing activities:
   Proceeds from borrowings                                                 706,000      676,000
   Principal payments on long-term obligations                             (410,000)    (584,000)
                                                                          ---------    ---------

            Net cash provided by financing activities                       296,000       92,000
                                                                          ---------    ---------

            Net change in cash and cash equivalents                            --           --
                                                                          ---------    ---------

            Cash and cash equivalents at beginning of the period              1,000        1,000
                                                                          ---------    ---------

            Cash and cash equivalents at end of the period                $   1,000    $   1,000
                                                                          =========    =========

Supplemental disclosure of cash flow information:
-------------------------------------------------
   Cash paid during the year for:
     Interest                                                             $  67,000    $  66,000
     Income taxes                                                              --           --

Supplemental disclosure of non-cash financing activities:
---------------------------------------------------------
   Dividends payable on Series A convertible redeemable preferred stock   $   2,000    $   4,000




               The accompanying notes are an integral part of these statements.

                                              3
</TABLE>

<PAGE>

                           SPARTA SURGICAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.   The accompanying condensed consolidated financial statements of the Company
     as of May 31,  1999 and for the three  months  ended May 31,  1999 and 1998
     have been prepared on the same basis as the audited  financial  statements.
     In the opinion of  management,  such  unaudited  information  includes  all
     adjustments  (consisting only of normal recurring accruals) necessary for a
     fair presentation of this interim  information.  Operating results and cash
     flows for interim periods are not necessarily indicative of results for the
     entire  year.  The  information  included in this report  should be read in
     conjunction  with the  Company's  audited  financial  statements  and notes
     thereto  included in the Company's Annual Report on Form 10KSB for the year
     ended February 28, 1999  previously  filed with the Securities and Exchange
     Commission.

2.   Effective  March 1, 1999,  the Company  adopted the provisions of Statement
     No.  130,  Reporting  Comprehensive  Income  that  modifies  the  financial
     statement presentation of comprehensive income and its components. Adoption
     of this  Statement  had no effect on the  Company's  financial  position or
     operating results.

     Comprehensive  income  (loss) for the three  months  ended May 31, 1999 and
     1998,  representing  all changes in  Stockholder'  equity during the period
     other than changes  resulting from the Company's  stock,  was $(78,000) and
     $188,000, respectively.

3.   Basic income (loss) per share is based upon weighted  average common shares
     outstanding.  Diluted  income  per share is  computed  using  the  weighted
     average common shares outstanding plus any potential  dilutive  securities.
     Dilutive securities include stock options, warrants,  convertible debt, and
     convertible preferred stock. The following table sets forth the computation
     of basic and diluted net income (loss) per common share:

<TABLE>
<CAPTION>

                                                        Three Months Ended May 31,
                                                        --------------------------
                                                            1999           1998
                                                            ----           ----
Numerator
<S>                                                     <C>            <C>
  Net income (loss) applicable to common stockholders   $   (80,000)   $   184,000

Interest expense on convertible debt                           --            6,000
                                                        -----------    -----------

Net income (loss) used in computing diluted
  income (loss) per common share                        $   (80,000)   $   190,000
                                                        ===========    ===========

Denominator
Weighted average common shares outstanding
  during the period                                       2,890,944      1,814,485
Less: shares subject to escrow agreement                   (952,986)      (952,986)
                                                        -----------    -----------
Shares used in computing basic income (loss)
  per common share                                        1,937,958        861,499

Dilutive effect of conversion of preferred stock               --           63,984
                                                        -----------    -----------
Dilutive effect of options and warrants using
  the treasury stock method                                    --          176,892
                                                        -----------    -----------
Dilutive effect of convertible debt using the
  if-converted method                                          --          369,333
                                                        -----------    -----------

Shares used in computing diluted income
  (loss) per common share                                 1,937,958      1,471,708
                                                        ===========    ===========

</TABLE>


4.   BUSINESS SEGMENTS

     The  Company's  products  are  divided  into two product  groups:  Surgical
     Specialty  Products  and   Electrotherapy   DME  Products.   The  Company's
     reportable  product group segments are strategic  business units that offer
     different  ranges of  products.  Surgical  Specialty  Products  consist  of
     microsurgical hand held instruments and accessories, critical care hospital
     disposable  products  and  oral  maxillofacial   implant  plating  systems.
     Electrotherapy  DME Products  consist of  transcutaneous  electrical  nerve
     stimulators, electrodes and related accessories.

                                       4
<PAGE>


     Information  by  product  group  segment  is set forth  below for the three
     months ended May 31:

                                                 1999       1998
                                                 ----       ----
             Net sales:
                 Surgical Specialty Products   $206,000   $301,000
                 Electrotherapy DME Products    193,000    418,000
                                               --------   --------

                                               $399,000   $719,000
                                               ========   ========

             Gross profit:
                 Surgical Specialty Products   $142,000   $182,000
                 Electrotherapy DME Products     72,000    152,000
                                               --------   --------

                                               $214,000   $334,000
                                               ========   ========


     Due to the shared and integrated  resources in personnel and facilities for
     the two product group segments,  information on assets,  operating expenses
     and income from operations is not identifiable for each of the two business
     segments.


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

RESULTS OF OPERATIONS

Three months ended May 31, 1999
as Compared to Three months ended May 31, 1998

     Net sales for the three months ended May 31, 1999  ("First  Quarter  Fiscal
2000") were  $399,000,  a 45% decrease  from net sales of $719,000 for the three
months ended May 31, 1998 ("First Quarter Fiscal 1999").  The net sales decrease
during the First  Quarter  Fiscal 2000 as compared to the First  Quarter  Fiscal
1999 is the result of a decrease of $225,000  or 54% in  electrotherapy  product
sales from  $418,000  to $193,000  coupled  with a decrease of $95,000 or 32% in
surgical product sales from $301,000 to $206,000.  The decrease in sales for the
electrotherapy  product line can be primarily  attributed  to the  completion of
standing purchase orders in the approximate  amount of $650,000 from various OEM
accounts.  In April 1999,  the  Company  received a standing  purchase  order of
approximately  $140,000 from one of its OEM accounts. The further loss of any of
the Company's OEM account could have a material  adverse effect on the Company's
business,  operating results and financial  condition.  The decrease in surgical
sales is primarily  attributed  to the  reduction in the number of the Company's
independent manufacturing sales representatives, and the decision by the Company
not to attend  various  trade shows as a result of the lack of working  capital.
During the First  Quarter  Fiscal  2000,  the  Company  was awarded a three year
contract for surgical products from a large national hospital buying group.

     The Company  intends to continue to  concentrate  its efforts on increasing
its level of sales to achieve profitable  operations.  In addition,  the Company
intends  to  consider  growth  through  selective   strategic   acquisitions  in
complementary  lines of business.  In that regard,  on June 8, 1999, the Company
completed an agreement to purchase all of the outstanding  common stock of Olsen
Electrosurgical, Inc. ("Olsen"), a privately held company founded in 1885. Olsen
designs,   develops,   manufactures  and  markets  electrosurgical  devices  and
accessories.  For the fiscal year  ending  December  31,  1998,  Olsen  recorded
approximately $2.4 million in net sales. Under the agreement, Sparta issued four
hundred  thousand  (400,000)  shares of the Company's  common stock,  $0.002 par
value in exchange for all of the outstanding shares of Olsen's common stock.

     Gross profit was $214,000 or 46% of net sales for the First Quarter  Fiscal
2000 as compared to  $334,000 or 54% of net sales for the First  Quarter  Fiscal
1999.  The  decrease  in  gross  profit  percentage  is  primarily  due  to  the
electrotherapy   products  generates  lower  gross  profits  and  certain  price
concessions   were  made  in  the  surgical  product  line  with  the  Company's
distributors.

                                       5
<PAGE>


     Selling, general and administrative ("SG&A") expenses for the First Quarter
Fiscal 2000 were $147,000, a 23% decrease from SG&A expenses of $192,000 for the
First Quarter  Fiscal 1999.  The decrease in SG&A expenses for the First Quarter
Fiscal 2000 as compared to the First Quarter Fiscal 1999 is primarily due to the
continuing  reduction of personnel,  salaries,  and the containment of operating
costs.  Depreciation and amortization expenses for the First Quarter Fiscal 2000
and 1999 were $59,000 and $67,000 respectively.

     Net loss for the First  Quarter  Fiscal  2000 was  $78,000,  a decrease  of
$266,000  from a net income of $188,000 for the First Quarter  Fiscal 1999.  The
net loss for the First  Quarter  Fiscal  2000 as  compared  to net income in the
First Quarter Fiscal 1999 is primarily due to lower sales and gross profit which
was the result of the completion of various OEM standing  purchase orders in the
approximate amount of $650,000 during Fiscal 1999.


LIQUIDITY AND CAPITAL RESOURCES

     In recent years, the Company has experienced losses from operations and has
suffered from a deficiency in available  working  capital.  In Fiscal 1999,  the
Company  substantially  improved its  operating  performance,  principally  as a
result of significant reductions in operating expenses.  However,  revenues from
existing  product lines have not been  sufficient to generate  adequate  working
capital.  Management  intends  to  continue  the steps it has  taken to  improve
operations and aggressively  pursue capital for its acquisition  program through
debt and equity securities offerings. Management has retained the services of an
investment  advisor  to  pursue  capital  through  such  private  equity or debt
offering. Management intends to continue to pursue viable acquisition candidates
and currently has three non-binding letters of intent with target companies,  in
addition to the acquisition agreement with Olsen Electrosurgical, Inc. signed in
June  1999.   Management  believes  its  actions  will  be  sufficient  to  fund
operations,  however, there can be no assurance that the Company will be able to
complete planned debt or equity offerings or targeted acquisitions.

     At February 28, 1999, the Company had  approximately  $7,530,000 of federal
net operating loss  carryforwards for tax reporting purposes available to offset
future  taxable  income;  such  carryforwards  will  expire  from  2007 to 2019.
Additionally,  the Company has  approximately  $1,680,000 of state net operating
loss carryforwards for tax reporting purposes which will expire through 2004.

     The Company's working capital at May 31, 1999 was $1,151,000 as compared to
$1,313,000  at  February  28,  1999.  The  Company's  working  capital  position
decreased by $162,000 as the result of bridge financing costs.

     Mr. Reiner,  provided the Company with a Working Capital Credit Facility of
up to  $750,000,  bearing 12% interest  per annum.  The advances  made under the
Working  Capital Credit Facility and any accrued and unpaid interest are due the
earlier of (i) July  2000;  (ii) upon the  closing  of a minimum  of  $1,000,000
equity or debt financing by the Company;  or (iii) upon default at the option of
Mr. Reiner, with five (5) day notice to the Company. In addition, Mr. Reiner has
the option to convert all amounts under the Working Capital Credit Facility into
the Company's Common Stock at 100% of the average closing bid prices as reported
on NASDAQ for the five(5) trading days preceding the conversion date. As of July
7, 1999, the amount due to Mr. Reiner under the Working  Capital Credit Facility
was approximately $503,000.

     On  July  25,   1997,   NationsCredit   Commercial   Funding   Division  of
NationsCredit  Commercial Corporation,  A NationsBank Company  ("NationsCredit")
provided  the  Company  with  a  48-month  Revolving  Line  of  Credit  of up to
$2,500,000 (the "Loan"). The company agreed to pay NationsCredit interest on the
average  outstanding  principal  amount of the Loan at a per annum rate of prime
(7.75% at May 31, 1999) plus 3%. The Loan is advanced to the Company  based on a
percentage  of  eligible  assets  and is secured  by a first  position  security
interest on all of the assets of the Company. In addition,  $250,000 of the Loan
is personally guaranteed by Thomas F. Reiner, the Company's Chairman,  President
and Chief Executive Officer.  As of July 7, 1999, the outstanding balance on the
Loan was $1,315,000 and approximately $20,000 in credit was available.  The Loan
is being used to provide working capital for current operations.

                                       6
<PAGE>


     During the period from March 1999 through July 9, 1999,  the Company raised
$550,000 of financing from various individual investors.  These individual loans
range from  $25,000 to  $200,000,  with  interest  ranging  from 7% to 12%.  The
proceeds  from these  loans are  designated  to be used  primarily  for  working
capital,  legal and accounting expenses related to the various acquisitions that
the Company has targeted  including the completion of the recent  acquisition of
Olsen  Electrosurgical,  Inc.  In  accordance  with the terms of the loans,  the
principal  is to be repaid by the  Company at the  earlier  of ranging  from two
months to six months  from the date of issuance of the loans or the closing of a
$25 million secondary public offering.  In addition,  as a consideration for the
loans made by the  individual  investors,  the Company  also will be required to
issue certain number of shares of the Company's  common stock.  In addition,  in
connection  with the  financing,  in March 1999, the Company signed a consulting
agreement with a financial  advisor and as a result the Company issued  warrants
to purchase  300,000  shares of the  Company's  common  stock at $0.95 per share
until March 8, 2002. In addition, the financial advisor also receives a finder's
fee.

     In March 1999, the Company  entered into a non-binding  letter of intent to
purchase  substantially  all of the assets of a company  that  manufactures  and
markets  intra-oral camera imaging system equipment for the dental industry.  In
May 1999, the Company  entered into a non-binding  asset  purchase  agreement to
acquire  substantially  all of the assets  and  business  operations  of Western
Medical Services, Inc., a provider of home health care staffing.

     The Company may make  additional  acquisitions  of companies,  divisions of
companies  or  products  in the  future.  Acquisitions  entail  numerous  risks,
including  difficulties  or an inability  to  successfully  assimilate  acquired
operations  and products,  diversion of  management's  attention and loss of key
employees of acquired businesses,  all of which the Company has encountered with
previous  acquisitions.  Future acquisitions by the Company may require dilutive
issuances of equity  securities and the  incurrence of additional  debt, and the
creation  of  goodwill  or  other   intangible   assets  that  could  result  in
amortization expense.  These factors could have a material adverse effect on the
Company's business, operating results and financial condition.

     The Company's current operations continue to be cash flow negative, further
straining the Company's working capital resources.  The Company's future capital
requirements will depend on numerous  factors,  including the acquisition of new
product lines and/or other business operations and the continued  development of
existing  product sales,  distribution and marketing  capabilities.  In order to
continue its current level of  operations,  it will be necessary for the Company
to obtain additional working capital, from either debt or equity sources. If the
Company is unable to obtain such additional working capital, it may be necessary
for  the  Company  to   restructure   its   operations  to  reduce  its  ongoing
expenditures.

     The Company is currently  evaluating the potential  impact of the year 2000
on the processing of  date-sensitive  information by the Company's  computerized
information  system.  The year 2000  problem is the result of computer  programs
being written using two digits (rather than four) to define the applicable year.
Any of the Company's  computer  programs that have  time-sensitive  software may
recognize a date using "00" as the year 1900  rather  than the year 2000,  which
could  result  in  miscalculations  or  system  failures.  Based on  preliminary
information,  the costs of addressing  the potential  problems are not currently
expected to have a material adverse effect  (estimated not to exceed $25,000) on
the Company's financial  position,  liquidity or results of operations in future
periods.  However,  if the Company,  or its customers or vendors,  are unable to
resolve  such  processing  issues in a timely  manner,  it could pose a material
financial risk. Accordingly, the Company plans to devote the necessary resources
to resolve all significant year 2000 issues in a timely manner.

Except for the historical information contained herein, the matters set forth in
this  report are  forward-looking  statements  within  the  meaning of the "safe
harbor"  provisions  of the Private  Securities  Litigation  Reform Act of 1995.
These forward-looking statements are subject to risks and uncertainties that may
cause actual results to differ materially. These risks are detailed from time to
time in the Company's  periodic  reports filed with the  Securities and Exchange
Commission,  including  the Company's  Annual  Report on Form 10-KSB,  Quarterly
Reports  on Form  10-QSB  and  other  periodic  filings.  These  forward-looking
statements speak only as of the date hereof. The Company disclaims any intent or
obligation to update these forward-looking statements.

                                       7

<PAGE>


Part II. Other Information

Item 1. Legal Proceedings

     None.

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 Information

     None.

Item 6. Exhibits and Reports on Form 8-K

     a.   Exhibit No.

          27   Financial Data Schedule.

     b.   Reports on Form 8-K

     The Registrant  filed a Form 8-K dated June 23, 1999 which reported that it
     has acquired,  in exchange for 400,000  shares of the  Registrant's  common
     stock, all of the outstanding common stock of Olsen Electrosurgical,  Inc.,
     a  research  and  developer,  manufacturer,  marketer  and  distributor  of
     reusable and disposable electrosurgical instruments and accessories for use
     in cutting tissues and cauterization  during surgical  procedures.  For its
     most recent fiscal year ended  December 31, 1998,  Olsen recorded net sales
     of approximately $2.4 million and employs 20 full-time employees.


                                       8
<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.


Sparta Surgical Corporation



/s/ Thomas F. Reiner
--------------------
Thomas F. Reiner
Chairman of the Board
President & CEO and
Acting CFO



July 15, 1999



                                       9