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**U.S. SECURITIES AND EXCHANGE COMMISSION**
                             Washington, D.C. 20549

                                   **FORM 10-KSB**

[ X ]    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE SECURITIES
         EXCHANGE ACT OF 1934
                                   For the fiscal year ended: January 31, 2002

[   ]    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934
                                   For the transition period from ________ to ________

                         Commission File Number 0-29581

                       **ADVANCED MEDICAL TECHNOLOGIES, INC.
           ----------------------------------------------------------
               (Exact name of registrant as specified in charter)

                  NEVADA                                   98-0206212
          --------------------------                     -----------------
          (State or other jurisdiction of                   (IRS Employer
          incorporation or organization)                Identification Number)

    2805 East Oakland Park Boulevard, PMB 363, Ft. Lauderdale, Florida   33306
    ------------------------------------------------------------------- ---------
         (Address of principal executive offices)                        (Zip Code)

                 735 St. Albans Drive, Boca Raton, Florida 33486
        ----------------------------------------------------------------
                                (Former address)

                     Issuer's telephone number: 954-782-5802

Securities registered under Section 12(b) of the Exchange Act:   None

Securities registered pursuant to Section 12(g) of the Exchange Act:   None

Check whether the Company (1) has 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 filing requirements for the past 90 days.        Yes [X]  No [  ]

Check if no disclosure of delinquent filers in response to Item 405 of
Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of the registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III  of this Form
10-KSB or any amendment to this Form 10-KSB.                                     [  ]

The Company's revenues for fiscal year 2002 were $0

The aggregate market value of the voting and non-voting common equity held by
non-affiliates computed by reference to the p rice at which the common equity
was sold, or the average bid and asked price of such common equity, as of a
specified date within the past 60 days. (See definition of affiliate in Rule
12b-2 of the Exchange Act.): $0 based on the closing price of $0 as of January
31, 2002.* As of January 31, 2002, the Company had a total of 21,047,300 shares
of common stock outstanding.

*Affiliates, for the purpose of this item, refer to the officers, directors,
and/or persons or firms owning 5% or more of the Company's common stock, both of
record and beneficially.

                       DOCUMENTS INCORPORATED BY REFERENCE

The following documents are incorporated by reference:   None

PART I.........................................................................1

         Item 1.  Description of Business......................................1
         Item 2.  Description of Property......................................4
         Item 3.  Legal Proceedings............................................4
         Item 4.  Submission of Matters to a Vote of  Security Holders.........4

PART II........................................................................4

         Item 5.  Market for Common Equity and Related Shareholder Matters.....4
         Item 6.  Management's Discussion and Analysis or Plan of Operation....4
         Item 7.  Financial Statements.........................................5
         Item 8.  Changes in and Disagreements with Accountants on Accounting
                  and Financial Disclosure.....................................5

PART III.......................................................................6

         Item 9.   Directors, Executive Officers, Promoters and Control
                   Persons: Compliance with Section 16(a) of the Exchange Act..6
         Item 10.  Executive Compensation......................................7
         Item 11.  Security Ownership of Certain Beneficial Owners and
                   Management..................................................8
         Item 12.  Certain Relationships and Related Transactions..............9
         Item 13.  Exhibits and Reports on Form 8-K............................9

                                       i

                                  SPECIAL NOTE
                           FORWARD-LOOKING STATEMENTS

CERTAIN STATEMENTS CONTAINED IN THIS REPORT, INCLUDING, WITHOUT LIMITATION,
STATEMENTS CONTAINING THE WORDS "BELIEVES," "ANTICIPATES," "EXPECTS" AND WORDS
OF SIMILAR IMPORT CONSTITUTE "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING
STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES.

THE COMPANY'S ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE ANTICIPATED IN
THESE FORWARD-LOOKING STATEMENTS AS A RESULT OF CERTAIN FACTORS, INCLUDING THE
SUCCESS AND SUBSEQUENT ACCEPTANCE OF NEW MEDICAL RESEARCH AND DEVELOPMENT; THE
REGULATORY FRAMEWORK OF THE HEALTH CARE INDUSTRY; THE COMPANY'S ABILITY TO
CREATE, SUSTAIN, MANAGE OR FORECAST ITS GROWTH; ITS ABILITY TO ATTRACT AND
RETAIN KEY PERSONNEL; ITS ABILITY TO PROTECT TECHNOLOGY; CHANGES IN ITS BUSINESS
STRATEGY OR DEVELOPMENT PLANS; COMPETITION; DEMOGRAPHIC CHANGES; BUSINESS
DISRUPTIONS; ADVERSE PUBLICITY; AND INTERNATIONAL, NATIONAL AND LOCAL GENERAL
ECONOMIC AND MARKET CONDITIONS.

                                       ii
**PART I

ITEM 1.  DESCRIPTION OF BUSINESS**

THE COMPANY

The Company has been in business since it's date of incorporation, February 3,
1999. The Company's articles of incorporation currently provide that the Company
is authorized to issue 200,000,000 shares of common stock, par value $0.001 per
share. As at January 31, 2002 there were 21,047,300 shares outstanding.

PREVIOUS TECHNOLOGY OF THE COMPANY

The Company was previously involved in a multimedia Internet based, interactive
communications network providing health care industry manufacturers with access
to key case managers representing over 200 managed care companies and health
maintenance organizations (HMOs) throughout the United States. This concept was
terminated by management during the latter part of the year 2000 and all rights
to the Company's previous website (WWW.TXSAVE.COM) were transferred to the
Company's former President, Irving Abrams.

NEW TECHNOLOGY FOR THE COMPANY

Overall Summary

The Company previously acquired from James J. Reidy an exclusive license to
patents relating to technology that produces pure drinking water directly from
the air. The Company also entered into a consulting agreement with Mr. Reidy to
assist the Company in arranging for the manufacture and sale of WaterStar
machines that are based on the acquired technology. Although the Company has not
generated any revenues to date, the following sets forth a description of the
Company's intended business plan.

The Company entered into an Agreement with Consultants America Corporation to
launch a worldwide franchise program to distribute its WaterStar "Air Moisture
to Pure Water Conversion System" globally. This was intended to allow the
Company to be engaged in the development, manufacturing and marketing of a
scientifically-proven technology and to generate an endless supply of quality
drinking water from existing moisture in the atmosphere.

In the opinion of management of the Company, Consultants America Corporation, a
division of GLOBALXCHANGE CORP., was considered to be the premier franchise
development and sales organization in the United States, with an international
reputation for assisting companies with rapid growth through franchise sales and
development. Mr. William Richey, President and Founder of Consultants America
Corporation, has worked with companies as large as CitiCorp with expansion
programs and a variety of electronic and appliance businesses. Mr. Richey is
Dean of the Franchise Institute and is the author of numerous books and articles
covering a wide variety of franchising subjects. He is also the inventor of the
WatertStar machines and spent 13 years in research, studies and development at a
cost of over half a million dollars.

                                       1

The WaterStar machines are computer controlled, simple to operate and easy to
maintain. Water is produced from the atmosphere by the WaterStar system for an
average of approximately eight cents per gallon, which more than competes with
existing bottled water retail sales and provides the ultimate consumer advantage
that they can actually see that the water is being purified. From the first drop
of moisture in, to the last glass of water out, WaterStar maintains an enclosed
sterile environment throughout the water treatment process. A computer chip
continuously monitors multiple critical operating, filtration and sterilizing
functions, including powerful filters, ultra-violet treatments and one-micron
activated carbon water filters. The resulting water meets or exceeds the
Environmental Protection Agency's (EPA's) drinking water standards and contains
no harmful chemicals, bacteria, pesticides, trace metals or chlorine.

To date, four patents have been successfully filed and a further six patents are
pending.

The WaterStar system is capable of producing between 2 gallons and 2,200 gallons
of pure drinking water per day utilizing a patented ultraviolet purification
system. The WaterStar Hydrologic System produces water that is virtually free of
detectable levels of chemicals, minerals, and particular matter greater than
one-micron in diameter. The Company believes that the system holds huge consumer
marketing potential and industrial use worldwide.

PROCESS OF PRODUCING PURIFIED DRINKING WATER

The WaterStar Drinking machine is similar to the average water cooler but comes
in various sizes, as more fully disclosed below. The method of extracting the
moisture from the air and producing purified drinking water occurs as follows:

Before entering the WaterStar system, air is filtered for large, airborne
particulars such as dust, dirt, and other foreign materials. A nonpowered,
self-charging filter removes microscopic particles down to 1 micron in size,
such as pollen, molds, bacteria laden dust particles, and animal dander, with a
peak arrestance of 95.3 percent.

Water enters the WaterStar system through a sterile opening protected by
ultraviolet light. This initial ultraviolet exposure sterilizes the incoming
water for up to 150 times the time required to kill over 99.99 percent of all
bacteria, virus, algae, and other microorganisms that may be present. All
WaterStar series models use a disposable 1 micron carbon block water filter to
remove microscopic impurities and even chemicals that may contribute to bad
taste and odor.

After the water is filtered it receives a second ultraviolet light exposure.
This redundant safety feature has a UV exposure three times that rate needed for
over 99.99 percent kill of microorganisms.

The final outlet from the WaterStar system into the removable storage container
or external tank is also protected by exposure to ultraviolet light and it
prevents microorganisms from migrating backward into the WaterStar system.

All critical operating and safety functions are continuously monitored by
WaterStar's patent computer. If any function fails, this computer disables the
water-making capability of the WaterStar. Indicator lights, or a message, on the
control panel clearly inform the user of appropriate action. In addition, the
WaterStar computer monitors a unique sensing device that confirms the presence
and proper installation of the electrostatic air filter. The unit will not
operate otherwise. When the electrostatic air filter becomes dirty and
inefficient, the water-making function stops until the filter is cleaned and
properly reinstalled.

Another sensing device monitored by the computer confirms that the water filter
is new and properly positioned. The WaterStar will not operate with a used or
expired filter. This safety feature prevents intentional or accidental use of an
improper water filter. For example, potential dangers from using an expended
water filter are avoided because the water-making function is disabled at
appropriate intervals, depending upon the model, by computer until a new filter
is installed.

                                       2

Many ultraviolet treatment systems use quartz sleeves to protect the ultraviolet
light from direct contact with water, but quartz can build up a light-blocking
film over time that diminishes the effectiveness of the UV sterilizing ability.
The WaterStar system uses special thin-walled Teflon tubing or plasma coating to
virtually eliminate film buildup and blocked ultraviolet light.

VARIOUS MODELS OF THE WATERSTAR MACHINE

All WaterStar models are designed to operate with simple but versatile controls
in either a manual or conditional mode. The control panel includes two master
switches. A manual switch allows direct on/off operation on demand. A second
switch activates an automatic on/off operation in conjunction with a humidistat
and a thermostat. This automatic switch, links to the humidity and temperature
settings, which enables the user to limit the periods of machine operation to
the most productive hours of each day, thereby minimizing energy costs per
gallon of water produced. The WaterStar can be made in virtually any size and
the following models are currently available:

**WaterStar Series 100**

This model operates with Peltier technology (no refrigerants) and is rated to
produce 2 gallons per day with a maximum of 5.1 gallons per day. It will be
approximately 12" x 12" x 15" and be ideally suited for solar power if desired.

**WaterStar Series 180**

Water production is rated at 6.75 gallons per day, but will exceed 9.6 gallons
per day.

**WaterStar Series 600**

Water production is rated at 22.3 gallons per day, but will exceed 28.9 gallons
per day.

**WaterStar Series 950**

Water production is rated at 35.5 gallons per day, but will exceed 45.8 gallons
per day.

**WaterStar Series 1300**

Water production is rated at 516 gallons per day, but will exceed 667 gallons
per day.

**WaterStar Series 2000**

Water production is rated at 775 gallons per day, but will exceed 1,000 gallons
per day.

Note - the above ratings are based upon ambient conditions of 80 degrees
Fahrenheit and 60 percent relative humidity.

                                       3
**ITEM 2.  DESCRIPTION OF PROPERTY**

The Company does not own any property at present.

**ITEM 3.  LEGAL PROCEEDINGS**

There are no legal proceedings to which the Company is a party or to which it's
property is subject, nor to the best of management's knowledge are any material
legal proceedings contemplated.

**ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS**

No matters were submitted to a vote of shareholders of the Company during the
fiscal year ended January 31, 2002.

                                     **PART II****ITEM 5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

The Company's common shares were admitted for trading on the NASD OTC Bulletin
Board under the symbol of ADMD during the earlier part of the year 2000. Prior
to that time, there was no established public market for the Company's shares.

As a result there is no available trading information for the period February 3,
1999 (date of inception) to April 30, 2000. In addition, there is virtually no
material price information available for January 31, 2002 based upon no Company
activity. The high and low trading prices for each month from the date the share
commenced trading on the OTC Bulletin Board, the closing monthly price per share
and the monthly volume are set out below:

         **MONTH             HIGH PRICE       LOW PRICE      CLOSING PRICE    VOLUME**

         May 2000               $ 1.75       $  0.75         $   0.75       10,000
         June 2000                0.75          0.75             0.75       10,000
         July 2000                0.75          0.50             0.50            0
         August 2000              0.50          0.20             0.20       50,000
         September 2000           0.20          0.10             0.20       25,000
         October 2000             0.25          0.10             0.25       30,000
         November 2000            1.00          0.25             0.50      500,000
         December 2000            0.50          0.35             0.50    1,000,000
         January 2001             1.50          0.50             0.50    2,000,000

**ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The Company had intended to embark on an aggressive product roll-out, however,
has not received proper capital to attempt its plan. Able to produce more than 5
gallons of drinking water every 24 hour cycle, the WaterStar residential model
provides consumers with the ability to conveniently and endlessly produce safe
drinking water with lifting, transporting and storing water bottles.

                                       4

Concurrent to its proposed residential launch, a larger volume model was also
under development for the commercial market so that restaurants, bars, and
hotels can provide customers with consistent high-quality drinking water.

A test market study conducted in the city of San Diego, California by
independent market research firm, The Results Company, indicated the market for
WaterStar models exceeds one million dollars per year from that city alone.

To assist the Company in fast-tracking penetration in a variety of consumer and
industrial markets, the Company entered into an agreement with Consultants
America Corporation, a leading franchise, development, and sales organization in
the United States to embark upon a marketing effort for the WaterStar Hydrologic
Systems through domestic and international franchising.

LIQUIDITY AND CAPITAL RESOURCES

As at January 31, 2002, the Company had no assets, and $422,478 of liabilities.
The liabilities of $422,478 consist of amounts accrued for audit, accounting,
transfer agent fees, office expenses and advances from third parties.

The Company has no contractual obligations for either lease premises or
employment agreements and has made no commitments to acquire any asset of any
nature. Without receipt of investment capital, the Company will not be able to
continue its contemplated business plan.

RESULTS OF OPERATIONS

The Company has not received any revenues from the sale of its WaterStar products.

**ITEM 7.  FINANCIAL STATEMENTS**

The financial statements of the Company are included following the signature
page to this Form 10-KSB.

**ITEM 8.  CHANGES IN AND DISAGREEMENT WITH ACCOUNTANTS ON ACCOUNTING
                 AND FINANCIAL DISCLOSURE**

From inception to date, the Company's principal accountant is Andersen, Andersen
& Strong, L.C. of Salt Lake City, Utah. The firm's report for the period from
inception to January 31, 2001 did not contain any adverse opinion or disclaimer,
nor were there any disagreements between management and the Company's
accountants.

                                       5
**PART III

ITEM 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
         COMPLIANCE WITH SECTION 16 (a) OF THE EXCHANGE ACT**

The following table sets forth as of January 31, 2002, the name, age, and
position of the executive officer and sole director, and the term of office of
the director of the Company.

                                                                                        **Term as
         Name              Age      Position Held                                       Director Since

     Donald J. Brumlik      63      President, Director and Secretary Treasurer         2001

The director of the Company serves for a term of one year and until his
successor is elected at the Company's annual shareholders' meeting and is
qualified, subject to removal by the Company's shareholders. As officer, Mr.
Brumlik serves for a term of one year and until his successor is elected at the
annual general meeting of the board of directors and is qualified.

Set forth below is certain biographical information regarding Mr. Brumlik as the
sole director and officer of the Company.

Mr. Brumlik received a B.S. degree in Accountancy from the University of
Illinois, a Certified Pubic Accounts Certificate and a Juris Doctor degree from
De Paul University, College of Law. From 1991 through to 1996 Mr. Brumlik was
Executive Vice President and a Director of RX Medical Services Corp ("RXM")
during which time RXM was a public company listed on the American Stock
Exchange. Mr. Brumlik negotiated and headed the team that caused the acquisition
of over thirty companies engaged in the clinical laboratory and MRI imaging
businesses for RXM.

To the knowledge of management, during the past five years, no present or former
director, executive officer or person nominated to become a director or an
executive officer of the Company:

         (1)      filed a petition under the federal bankruptcy laws or any
                  state insolvency law, nor had a receiver, fiscal agent or
                  similar officer appointed by the court for the business or
                  property of such person, or any partnership in which he
                  was a general partner at or within two years before the time
                  of such filings;

         (2)      was convicted in a criminal proceeding or named subject of a
                  pending criminal proceeding (excluding traffic violations and
                  other minor offenses);

         (3)      was the subject of any order, judgment or decree, not
                  subsequently reversed, suspended or vacated, of any court of
                  competent jurisdiction, permanently or temporarily enjoining
                  him from or otherwise limiting, the following activities:

                  (i)      acting as a futures commission merchant, introducing
                           broker, commodity trading advisor, commodity pool
                           operator, floor broker, leverage transaction
                           merchant, associated person of any of the foregoing,
                           or as an investment advisor, underwriter, broker or
                           dealer in securities, or as an affiliate person,
                           director or employee of any investment company, or
                           engaging in or continuing any conduct or practice in
                           connection with such activity;

                                       6

                  (ii)     engaging in any type of business practice; or

                  (iii)    engaging in any activities in connection with the
                           purchase or sale of any security or commodity or in
                           connection with any violation of federal or state
                           securities laws or federal commodities laws;

         (4)      was the subject of any order, judgment, or decree, not
                  subsequently reversed, suspended, or vacated, of any federal
                  or state authority barring, suspending or otherwise limiting
                  for more than 60 days the right of such person to engage in
                  any activity described above under this Item, or to be
                  associated with persons engaged in any such activities;

         (5)      was found by a court of competent jurisdiction in a civil
                  action or by the Securities and Exchange Commission to have
                  violated any federal or state securities law, and the judgment
                  in such civil action or finding by the Securities and Exchange
                  Commission has not been subsequently reversed, suspended, or
                  vacated.

         (6)      was found by a court of competent jurisdiction in a civil
                  action or by the Commodity Futures Trading Commission to have
                  violated any federal commodities law, and the judgment in such
                  civil action or finding by the Commodity Futures Trading
                  Commission has not been subsequently reversed, suspended or
                  vacated.

COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

The Company knows of no director, officer, or beneficial owner of more than ten
percent of any class of equity securities of the Company registered pursuant to
Section 12 ("Reporting Person") that failed to file any reports required to be
furnished pursuant to Section 16(a). The Company knows of no Reporting Person
that failed to file the required reports during the most recent fiscal year.

**ITEM 10.  EXECUTIVE COMPENSATION**

CASH COMPENSATION

There was no cash compensation paid to any director or executive officer of the
Company during the fiscal year ended January 31, 2002.

On August 30, 2001, the Company issued 1,600,000 shares of common stock as
compensation to officers of the Company and to a consultant for services
rendered. These services were valued at $16,000.

BONUSES AND DEFERRED COMPENSATION

None

COMPENSATION PURSUANT TO PLANS

None

PENSION TABLE

None

                                       7

OTHER COMPENSATION

None

COMPENSATION OF DIRECTORS

None

TERMINATION OF EMPLOYMENT

There are no compensatory plans or arrangements, including payments to be
received from the Company, with respect to any person named in Cash
Consideration set out above which would in any way result in payments to any
such person because of his resignation, retirement, or other termination of such
person's employment with the Company or its subsidiaries, or any change in
control of the Company, or a change in the person's responsibilities following a
change in control of the Company.

**ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth as at January 31, 2002, the name and address and
the number of shares of the Company's common stock, with a par value of $0.001
per share, held of record or beneficially by each person who held of record, or
was known by the Company to own beneficially, more than 5% of the issued and
outstanding shares of the Company's common stock, and the name and shareholdings
of each director and of all officers and directors as a group.

**Name and Address           Nature                   Amount
  of Beneficial             of                     of Beneficial          Percent
      Owner              Ownership (1)               Ownership           of Class**

IRVING ABRAMS              Direct                    1,000,000            4.75 %
24 Lockheed Blvd.
Toronto, Ontario
Canada, M9P 2H6

DAVID ZOSIAK               Direct                    2,000,000             9.50%
2267 Lorraine Avenue
Coquitlam, British Columbia
Canada, V3K 2M8

DONALD J. BRUMLIK          Direct                      750,000             3.56%
735 Saint Albans Drive
Boca Raton, Florida
USA, 33486

CEDE & CO                  Indirect (*)              6,504,373            30.90%
P.O. Box 20
Bowling Green Station
New York, New York, 10004

                                       8

JAMES J. REIDY             Direct and Indirect(*)    5,050,000            23.99%
1260 Main Street
Holden, MA 01520-1020

Held by the Director       Direct                            0             0.00%

(1)      All shares owned directly are owned beneficially and of record, and
         such shareholder has sole voting, investment and dispositive power,
         unless otherwise noted.

(*)      Management does not know the beneficial owners of these shares.

**ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

TRANSACTIONS WITH MANAGEMENT AND OTHERS

Except as indicated below, there were no material transactions, or series of
similar transactions, since inception of the Company and during its current
fiscal period, or any currently proposed transactions, or series of similar
transactions, to which the Company was or is to be a party, in which the amount
involved exceeds $60,000, and in which any director or executive officer, or any
security holder who is known by the Company to own of record or beneficially
more than 5% of any class of the Company's common stock, or any member of the
immediate family of any of the foregoing persons, has an interest.

INDEBTEDNESS OF MANAGEMENT

There were no material transactions, or series of similar transactions, since
the beginning of the Company's last fiscal year, or any currently proposed
transactions, or series of similar transactions, to which the Company was or is
to be a part, in which the amount involved exceeded $60,000 and in which any
director or executive officer, or any security holder who is known to the
Company to own of record or beneficially more than 5% of the common shares of
the Company's capital stock, or any member of the immediate family of any of the
foregoing persons, has an interest.

TRANSACTIONS WITH PROMOTERS

The Company does not have promoters and has no transactions with any promoters.

ITEM 13.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)      Exhibits:    None

         (b)      Reports on Form 8-K: The Company did not file any Current
                  Reports on Form 8-K during the fiscal year ended December 31,
                  2001

                                       9
**SIGNATURES**

         In accordance with Section 13 or 15(d) of the Exchange Act, the
Registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

Date: July 31, 2002                                  ADVANCED MEDICAL TECHNOLOGIES, INC.

                                                 By: /s/ Donald J. Brumlik
                                                     ---------------------------------------
                                                         Donald J. Brumlik, Chairman of the
                                                         Board and Chief Executive Officer

         In accordance with the Exchange Act, this report has been signed below
by the following persons on behalf of the Registrant and in the capacities and
on the date indicated.

Date: July 31, 2002                              By: /s/ Donald J. Brumlik
                                                     ----------------------------------------
                                                         Donald J. Brumlik, President
                                                         (Principal Executive Officer and
                                                         Principal Financial and Accounting Officer)

**ADVANCED MEDICAL TECHNOLOGY, INC.

                              FINANCIAL STATEMENTS

                                JANUARY 31, 2002**BAUM & COMPANY, P.A.
                          Certified Public Accountants
                        1515 University Drive - Suite 209
                          Coral Springs, Florida 33071
                                 (954) 752-1712

                          INDEPENDENT AUDITORS' REPORT**

Board of Directors and Stockholders of
Advanced Medical Technology, Inc.
Pompano Beach, Florida

We have audited the accompanying balance sheet of Advanced Medical Technology,
Inc. as of January 31, 2002 and the related statements of operations,
stockholders' equity and cash flows for the years ended January 31, 2002 and
2001. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America.. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements present fairly in all material respects
the financial position of Gold Entertainment Group, Inc., as of January 31, 2002
and the results of its operations and cash flows from the years ended January
31, 2002 and 2001 in conformity with accounting principles generally accepted in
the United States of America.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 6, the Company is
experiencing difficulty in generating sufficient cash flow to meet its necessary
capital requirements and sustain its operations, which raises substantial doubt
about its ability to continue as a going concern. The financial statements do
not include any adjustments that might result from the outcome of this
uncertainty.

Coral Springs, Florida
June 7, 2002

                                      F-1

**GOLD ENTERTAINMENT GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                                  BALANCE SHEET
                                JANUARY 31, 2002

                                     ASSETS

Current Assets:
     Cash                                               $      394
                                                        ----------

         Total Assets                                   $      394
                                                        ==========

           LIABILITIES AND STOCKHOLDERS' EQUITY (ACCUMULATED DEFICIT)

Current Liabilities:
     Account payable                                    $     - 0 -
                                                        ----------

         Total Liabilities

Stockholders' Equity:

     Common Stock, $.0001 par value, authorized 21,047,300
         shares, issued and outstanding                    21,047
     Additional paid in capital                           109,138
     Accumulated Deficit during development stage        (552,663)
                                                        ----------
         Total Stockholders' Equity (deficit)            (422,478)
                                                        ----------
     Total Liabilities and Stockholders' Equity         $     - 0 -
                                                        ==========

                 See accompanying notes to financial statements

                                      F-2

**ADVANCED MEDICAL TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF OPERATIONS
                      YEARS ENDED JANUARY 31, 2002 AND 2001
                  AND THE ACCUMULATED DEVELOPMENT STAGE PERIOD
           COMMENCING FEBRUARY 3, 1999 (INCEPTION) TO JANUARY 31, 2002

                                                                                            February 3, 1999
                                                                                            (Inception) to
                                                       2002                  2001           January 31, 2001
                                                -------------------    ------------------    ----------------

Revenue                                          $      - 0 -           $       - 0 -         $     - 0 -

Expenses                                            467,470                  36,768             552,663
                                                -------------------    ------------------    ----------------

Net Income (Loss)                                $ (467,470)            $   (36,768)         $ (552,663)
                                                ===================    ==================    ================

Net (Loss) per weighted average of shares        $   (0.022)            $    (0.003)         $   (0.026)
                                                -------------------    ------------------    ----------------

Weighted average of shares                       21,471,300              14,197,300          21,470,300
                                                -------------------    ------------------    ----------------

                 See accompanying notes to financial statements

                                      F-3

**ADVANCED MEDICAL TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF CASH FLOWS
                      YEARS ENDED JANUARY 31, 2002 and 2001
                  AND THE ACCUMULATED DEVELOPMENT STAGE PERIOD
                     COMMENCING FEBRUARY 3, 1999 (INCEPTION)
                               TO JANUARY 31, 2002

                                                                                                           February 3, 1999
                                                                                                            (Inception) to
                                                                2002                  2001                 January 31, 2002
                                                           ----------------------------------------------------------------

Cash Flows from operations:
Net income (loss)                                              $(467,470)          $   (36,768)           $       (552,663)

Adjustments to Reconcile Net Loss to net
Cash Used for Operating Activities
     Common stock issued for services                             16,000                 - 0 -                     16,000
     Common stock issued for patent and
         consulting fees                                          50,500                 - 0 -                     50,500
     Capital contributions cost                                    - 0 -                 - 0 -                     10,800

Changes in Assets and Liabilities:
     Increase in account payable                                 336,646                36,107                     336,646
     Accrued consulting related parties                           44,432                 - 0 -                      85,832
                                                             -----------       ---------------         -------------------

         Net cash used for operations                            (20,000)                 (661)                    (52,885)
                                                             -----------         -------------          ------------------

Cash flow from financing activities:
     Proceeds from common stock                                   20,000                 - 0 -                      52,885
                                                             -----------        --------------           -----------------

Net increase (decrease) in cash                                    - 0 -                  (661)                      - 0 -

Cash beginning                                                     - 0 -                   661                       - 0 -
                                                          --------------         -------------         -------------------

Cash ending                                                    $   - 0 -           $     - 0 -            $          - 0 -
                                                          ==============         =============         ===================

Schedule of Noncash Investing and Financing
Activities:
     Capital contributions                                                              10,800
                                                                                   ===========

                 See accompanying notes to financial statements

                                      F-4

**ADVANCED MEDICAL TECHNOLOGIES, INC
                          (A DEVELOPMENT STAGE COMPANY)
                  STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
       PERIOD COMMENCING FEBRUARY 3, 1999 (INCEPTION) TO JANUARY 31, 2002**

                                                                                                   Accumulated
                                                                                     Additional   Deficit During         Total
                                                                      Common         Paid - In     Development        Stockholders'
                                                        Shares      Stock Amount      Capital         Stage         Equity (Deficit)
                                                     ---------------------------    ------------  ---------------- -----------------

Beginning balance February 3, 1999 (Inception)           - 0 -       $   - 0 -       $   - 0 -      $    - 0 -      $    - 0 -

Issuance of common stock for cash at $0.001 -
     February 14, 1999                               6,000,000           6,000           - 0 -           - 0 -           6,000

Issuance of common stock for cash at $0.002 -
     February 16, 1999                               8,155,000           8,155           8,155           - 0 -          16,310

Issuance of common stock for cash at $.025 -
     March 3, 1999                                      42,300              42          10,533           - 0 -          10,575

Capital contributions                                    - 0 -            - 0 -         10,800           - 0 -          10,800

Net loss - January 31, 2001                              - 0 -            - 0 -          - 0 -         (85,193)        (85,193)
                                                     ---------------------------    ------------  ---------------- -----------------

Balance - January 31, 2001                          14,197,300          14,197          29,488         (85,193)        (41,508)

Issuance of common stock for Patent rights and
     consulting at $0.001 - May 3, 2001                 50,000              50             450           - 0 -             500

Issuance of common stock for cash at $0.001 -
     July 5, 2001                                      200,000             200          19,800           - 0 -          20,000

Issuance of commons stock for Patent rights and
     consulting at $0.001 - August 30, 2001          5,000,000           5,000          45,000           - 0 -          50,000

Issuance of common stock for services at $0.01 -
     August 30, 2001                                 1,600,000           1,600          14,400           - 0 -          16,000

Net loss - January 31, 2002                              - 0 -           - 0 -           - 0 -        (467,470)       (467,470)
                                                      --------------------------    -------------  ----------------- ---------------

Balance - January 31, 2002                          24,047,300       $  21,047      $  109,138      $ (552,663)      $(422,478)
                                                      ==========================    =============  ================= ===============

                 See accompanying notes to financial statements

                                      F-5

**ADVANCED MEDICAL TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                            JANUARY 31, 2002 AND 2001**NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES****Organization and Operations**

              The Company was incorporated under the laws of the State of Nevada
              on February 3, 1999 with authorized common stock of 200,000,000
              shares at $0.001 par value.

              The Company was organized formerly for the purpose of establishing
              a multimedia internet bases communication network between the
              healthcare industry manufacturers and the key base managers in the
              medical field to advertise and promote the manufacturers products.

              On April 4, 2002, pursuant to the "Stock Exchange and Merger
              Agreement" the Company consummated a "reverse acquisition" and
              changed its name to Gold Entertainment Group, Inc.

              Since its inception, the Company generated working capital pursuant
              to Regulation D offerings of common stock.

              **Basis of Accounting

              The Company's policy is to prepare its financial statements using
              the accrual basis of accounting in accordance  with generally
              accepted accounting principles.  The Company has elected January
              31 at its annual year-end.

              **Use of Estimates**

              The preparation of financial statements in conformity with
              generally accepted accounting principles requires management to
              make estimates and assumptions that affect the reported amounts of
              assets and liabilities, the disclosure of contingent assets and
              liabilities at the date of the financial statements, and the
              reported amounts of revenues and expenses during the reporting
              period. Actual results could differ from those estimates.

              **Cash and Equivalent

              Cash and cash equivalents include cash and cash in banks. The
              Company maintains cash and cash equivalent balances at a financial
              institution that is insured by the Federal Deposit Insurance
              Corporation up to $100,000. At January 31, 2002, there is no
              concentration of credit risk from uninsured bank balances.

                                      F-6

**ADVANCED MEDICAL TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                            JANUARY 31, 2002 AND 2001**NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (Continued)**Organization Costs**

              The Company has incurred various expenditures in the formation of
              its corporate and organizational structure. In accordance with
              SOP98-5 these costs will be expenses as incurred.

              **Revenue Recognition**

              The Company will recognize revenue upon completion of its services
              to be rendered or delivery of products to its customers.  The
              Company has not generated revenues since inception

              **Development Stage**

              The Company is in its development stage. The Company since
              inception has not commenced its operations, nor has generated
              sufficient working capital to pursue its business objectives. The
              accumulated deficit during its development stage is $552,663.

              **Net Earnings (Losses) Per Share

              The Company reports its net earnings (losses) per share in
              accordance with SFAS No. 128 "Earnings Per Share".  Basic net
              earnings (losses) per share is computed by dividing net income
              (loss) available to common stockholders by the weighted averaged
              number of common shares outstanding.

              Diluted earnings (losses) per share is computed similar to basic
              earnings (losses) per share except that the denominator is
              increased to include the number of additional common shares that
              would have been outstanding. As of January 31, 2002 there are no
              outstanding stock options or stock warrants that would have
              affected our computation.

              **Comprehensive Income

              The Company adopted SFAS No. 130 for Accounting for Comprehensive
              Income".  For the year ended January 31, 2002, this SFAS has no
              impact on the stockholders' equity.

**NOTE 2 - INCOME TAX**

              In February 1992, the Financial Standards Board issued Statement
              of Financial Accounting Standards No. 109, "Accounting for Income
              Taxes." Under SFAS No. 109, deferred assets and liabilities are
              recognized for the estimated future tax consequences between the
              financial statement carrying amounts of the existing assets and
              their respective basis.

                                      F-7

**ADVANCED MEDICAL TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                            JANUARY 31, 2002 AND 2001**NOTE 2 - INCOME TAX (Continued)**

              Deferred assets and liabilities are measured using enacted tax
              rates in effect for the year in which temporary differences are
              expected to be recovered or settled. Under SFAS No. 109, the
              effect on deferred assets and liabilities of a change in tax rates
              is recognized in the period that includes the enactment date.

              The Company has a net operating loss carry forward of $552,663
              which is offset by a $552,663  valuation  allowance due to the
              uncertainty surrounding the ultimate realization of these assets.
              The loss carryforward expires in 15 years.

**NOTE 3 -      PATENT LICENSE AGREEMENT**

              On February 14, 2001 the Company assumed the assignment of an
              agreement previously entered into with Doyle Capital Management.
              Under the terms of the Patent Licence Agreement, the Company has
              been granted the  worldwide  rights to a patented system that
              extracts water from the air and created potable water. The
              Agreement provides for various  consulting fees to the licensor.

              On approximately March 26, 2002 the Company due to its inability
              to generate sufficient working capital to manufacture the patented
              devices and its arrearage of consulting fees due to the licensor,
              the Patent License Agreement was terminated.

**NOTE 4 - RELATED PARTY TRANSACTIONS

              The Company has accrued $85,833 for consulting fees to its
              CEO/President for the year ended January 31, 2002.

              The Company issued 5,050,000 shares of restricted common stock to
              the Licensor of its Patent License. The Company incurred
              approximately $109,000 of consulting fees under this License
              Agreement.

**NOTE 5 - SUBSEQUENT EVENTS**

              Merger Agreement

              On March 26, 2002, the Company entered into a merger agreement with
              Gold Entertainment Group, Inc. (a Nevada Corporation).  As part of
              the agreement, the Company will divest itself of all its assets, a
              new Board of Directors will be nominated and "Gold" shareholders
              shall exchange their shares for the shares of Advanced Medical
              Technology, Inc.

              Additionally, "Gold" will cease to exist and "Advanced"  ill be
              the survivor corporation and will change its name to Gold
              Entertainment Group, Inc.

                                      F-8

**ADVANCED MEDICAL TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                            JANUARY 31, 2002 AND 2001****NOTE 5 - SUBSEQUENT EVENTS (Continued)**Merger Agreement (Continued)**

              The stock for stock exchange  will be tax free pursuant to  Internal
              Revenue Code Section 368(a)(1)(4). The merger agreement was
              ratified by the Board of Directors on April 4, 2002.

              **Reverse Stock Split

              Prior to the reverse split on March 25, 2002, eight million shares
              of common stock were issued to the President of the Company in
              exchange for the cancellation of indebtedness for accrued
              compensation.

              On March 25, 2002, the Board of Directors adopted a resolution for
              a 1 for 25 reverse split of the Companys' common shares.  The
              reverse stock split will not change the value of the
              capitalization of the Company.

**NOTE 6 - GOING CONCERN

              As shown in the accompanying financial statements, the Company
              incurred substantial net losses for the period February 8, 1999 to
              January 31, 2002. There is no guarantee whether the Company will
              be able to generate enough revenue and/or raise capital to support
              those operations. This raises substantial doubt about the Company's
              ability to continue as a going concern.

              Management also states that they are confident that they can
              improve operations and raise the appropriate funds to grow their
              underlying business and acquire other businesses.

              The financial statements do not include any adjustments that might
              result from the outcome of these uncertainties.

                                      F-9********************************************
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