UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C.  20529


                                   FORM 10-KSB


                 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                   For the Fiscal Year ended December 31, 1999

              This report contains only financial statements for the
                     fiscal year ended December 31, 1999

                          Commission File No.  333-82493

                      CALIFORNIA MOLECULAR ELECTRONICS CORP.
             (Exact Name of Registrant as specified in its charter)


               ARIZONA                                86-0888087
(State  or  other  jurisdiction  of        (I.R.S. Employer Identification No.)
  incorporation  or  organization)

                50 AIRPORT PARKWAY   SAN JOSE, CALIFORNIA     95110

                    (Address of principal executive offices)

                                    408-451-8404

                         (Registrant's telephone number)

              Securities registered under Section 12(b) of the Act:

                 Title of each class to be registered:     None

           Securities registered pursuant to section 12(g) of the Act:

Title  of  each  class  to  be  registered:  Common  Stock,  No  Par  Value

                          Name  of  exchange:     None


     Indicate  by  check  mark  whether the registrant (1) has filed all reports
required  to  be  filed by Section 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding  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
     ---     ---

     Check if disclosure of delinquent filers pursuant to Item 405 of Regulation
S-K (section 229.405 of this chapter) is not contained herein, and no disclosure
will be contained, to the best of registrant's knowledge, in definitive proxy
or information statements incorporated by reference in Part III of this Form
10-K or any amendment to this Form 10-KSB. [ X ]

     Revenue for the registrant's most recent fiscal year was $9,319.

    The aggregate market value of the voting stock held by non-affiliates of the
registrant as of May 15, 2000 was $1,477,152.


     As of May 15, 2000 there were 5,064,743 outstanding shares of Common Stock.

     Transitional Small Business Disclosure Format (check one): Yes [ ]  No [X ]


<PAGE>
                     CALIFORNIA MOLECULAR ELECTRONICS CORP.

                                TABLE OF CONTENTS

                                  FORM 10-KSB
                                DECEMBER 31, 1999

ITEM NO.                                                            PAGE
--------                                                            ----

                                     PART II

ITEM 7.     Financial Statements . . . . . . . . . . . . . . . . . . . . . . . 1

                                     PART IV

ITEM 13.    Exhibits, Financial Statement Schedules and Reports on Form 8-K

(a)   1.    Financial Statements

            The financial statements listed below appear on the pages indicated:

            Balance Sheets at December 31, 1999 and 1998 . . . . . . . . . . . 3
            Statements of Operations for the years ended
                 December 31, 1999 and 1998  . . . . . . . . . . . . . . . . . 4
            Statements of Stockholders' Equity (Deficit) for the
                 period from March 17, 1997
                 (date of incorporation) to December 31, 1999  . . . . . . . . 5
            Statements of Cash Flows for the years ended
                 December 31, 1999 and 1998  . . . . . . . . . . . . . . . . . 6
            Notes to Financial Statements  . . . . . . . . . . . . . . . . . . 7

      2.    Financial Statement Schedules

            None.

      3.    Exhibits

            Exhibit No. 27.1 - Financial Data Schedule   . . . . . . . . . . .15

(b)   Reports on Form 8-K

            None.

Signatures   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
<PAGE>
                     CALIFORNIA MOLECULAR ELECTRONICS CORP.
                     --------------------------------------
                          (A DEVELOPMENT STAGE COMPANY)
                          -----------------------------

                              FINANCIAL STATEMENTS
                              --------------------

             WITH REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
             -------------------------------------------------------

                                    * * * * *

                                DECEMBER 31, 1999
                                -----------------


                                        1
<PAGE>
March  17,  2000

To  the  Board  of  Directors

  and  Stockholders  of

    California  Molecular  Electronics  Corp.


     REPORT  OF  INDEPENDENT  CERTIFIED  PUBLIC  ACCOUNTANTS
     -------------------------------------------------------

     In  our  opinion, the accompanying balance sheet and the related statements
of  operations, stockholders' equity (deficit) and cash flows present fairly, in
all  material  respects,  the  financial  position  of  California  Molecular
Electronics  Corp.  (a development stage company) at December 31, 1999 and 1998,
and  the  results of its operations and its cash flows for the three year period
ended  December  31,  1999,  in  conformity  with  generally accepted accounting
principles.  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 audits.  We conducted our audits of these statements in
accordance with generally accepted auditing standards which 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,  assessing  the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We  believe that our audits provide a reasonable basis for the opinion expressed
above.

ODENBERG,  ULLAKKO,  MURANISHI  &  CO.  LLP
San  Francisco,  California



                                       2
<PAGE>
                  CALIFORNIA  MOLECULAR  ELECTRONICS  CORP.
                  -----------------------------------------
                          (a development stage company)
                          -----------------------------
<TABLE>
<CAPTION>
                                BALANCE  SHEET
                                --------------
                                                             December 31
                                                     -------------------------
                                                         1999          1998
                                                     -------------  ----------
                       A S S E T S
                       -----------
Current assets:
<S>                                                  <C>            <C>
  Cash                                               $     91,993   $ 154,626
  Employee advance                                              -       5,000
                                                     -------------  ----------
    Total current assets                                   91,993     159,626

Furniture and fixtures, net                                 2,099           -
Prepaid expenses                                            6,493           -
Other                                                         427         627
                                                     -------------  ----------
                                                     $    101,012   $ 160,253
                                                     =============  ==========

            LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
            ----------------------------------------------

Current liabilities:
  Accounts payable and accrued liabilities           $     13,800   $   2,392
  Other payable                                             5,000           -
  Advance from related party                                    -       1,366
  Payable to related party                                      -      14,500
                                                     -------------  ----------
    Total current liabilities                              18,800      18,258
                                                     -------------  ----------

Stockholders' equity (deficit):
  Common stock, no par value:
  Authorized 20 million shares; 4,994,065 and
  4,887,520 issued and outstanding (including
  4,800 and 0 treasury shares) at December 31, 1999
  and 1998, respectively                                1,280,242     636,556
Less: Treasury stock at cost; 4,800 shares at
  December 31, 1999                                       (28,800)          -
Deficit accumulated during development stage           (1,169,230)   (494,561)
                                                     -------------  ----------
                                                           82,212     141,995
                                                     -------------  ----------
Commitments (Notes 5 and 9)                          -------------  ----------
                                                     $    101,012   $ 160,253
                                                     =============  ==========
</TABLE>

                  See accompanying notes to financial statements.


                                        3
<PAGE>
                     CALIFORNIA MOLECULAR ELECTRONICS CORP.
                     --------------------------------------
                          (a development stage company)
                          -----------------------------

                             STATEMENT OF OPERATIONS
                             -----------------------
<TABLE>
<CAPTION>
                                             Cumulative amounts from
                                             March 17, 1997 (date of
                                                   incorporation) to         Year ended December 31,
                                                        December 31,  -------------------------------------
                                                             1999        1999         1998         1997
                                                        ------------  -----------  -----------  -----------
Revenue:
<S>                                                     <C>           <C>          <C>          <C>
  Interest income                                       $    12,140   $    9,319   $    2,821   $        -
                                                        ------------  -----------  -----------  -----------
Expenses:
   Research and development expenses                        265,668      240,668       25,000            -

   Officers' compensation
        donated to the Company (Note 7)                     688,333      270,000      270,000      148,333

   Preoperating expenses                                    227,219      173,270       46,428        7,521
                                                        ------------  -----------  -----------  -----------

              Total expenses                              1,181,220      683,938      341,428      155,854
                                                        ------------  -----------  -----------  -----------

Loss before income taxes                                 (1,169,080)    (674,619)    (338,607)    (155,854)

Provision for state income taxes                                150           50           50           50
                                                        ------------  -----------  -----------  -----------

Net loss                                                $(1,169,230)  $ (674,669)  $ (338,657)  $ (155,904)
                                                        ============  ===========  ===========  ===========



Basic and diluted loss per common share                 $      (.24)  $     (.14)  $     (.07)  $     (0.3)
                                                        ============  ===========  ===========  ===========

Weighted average number of common shares outstanding      4,875,996    4,930,858    4,832,658    4,800,000
                                                        ============  ===========  ===========  ===========
</TABLE>

                  See accompanying notes to financial statements.

                                        4
<PAGE>
                     CALIFORNIA MOLECULAR ELECTRONICS CORP.
                     --------------------------------------
                          (a development stage company)
                          -----------------------------

                   STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
                   -------------------------------------------

           FOR THE PERIOD FROM MARCH 17, 1997 (DATE OF INCORPORATION)
           ----------------------------------------------------------

                              TO DECEMBER 31, 1999
                              --------------------
<TABLE>
<CAPTION>
                                                                                                     Deficit
                                                                                                   Accumulated
                                                               Common Stock                           During
                                                        --------------------------    Treasury     Development
                                                           Shares        Amount         Stock         Stage        Total
                                                        -------------  -----------  -------------  ------------  ----------
<S>                                                     <C>            <C>          <C>            <C>           <C>
Stock issued in March 1997                                 4,000,000   $   10,000   $          -   $         -   $  10,000

Stock issued on hiring of executives                         800,000        3,000              -             -       3,000

Stock issuance costs                                               -       (2,296)             -             -      (2,296)


Officers' compensation donated to the Company (Note 7)             -      148,333                                  148,333

Net loss                                                           -            -              -      (155,904)   (155,904)
                                                        -------------  -----------  -------------  ------------  ----------

Balance at December 31, 1997                               4,800,000      159,037              -      (155,904)      3,133

Stock issued in private placement                             87,520      218,800              -             -     218,800

Stock issuance costs                                               -      (11,281)             -             -     (11,281)


Officers' compensation donated to the Company (Note 7)             -      270,000              -             -     270,000

Net loss                                                           -            -              -      (338,657)   (338,657)
                                                        -------------  -----------  -------------  ------------  ----------

Balance at December 31, 1998                               4,887,520      636,556              -      (494,561)    141,995

Stock issued in private placement                             91,540      347,900              -             -     347,900

Stock issuance costs                                               -      (49,239)             -             -     (49,239)


Officers' compensation donated to the Company (Note 7)             -      270,000              -             -     270,000

Stock issued for license technology fee                       15,005       75,025              -             -      75,025

Treasury stock, at cost                                       (4,800)           -        (28,800)            -     (28,800)

Net loss                                                           -            -              -      (674,669)   (674,669)
                                                        -------------  -----------  -------------  ------------  ----------

Balance at December 31, 1999                               4,989,265   $1,280,242   $    (28,800)  $(1,169,230)  $  82,212
                                                        =============  ===========  =============  ============  ==========
</TABLE>

See accompanying notes to financial statements.


                                        5
<PAGE>
                     CALIFORNIA  MOLECULAR  ELECTRONICS  CORP.
                     -----------------------------------------
                          (a development stage company)
                          -----------------------------

                             STATEMENT OF CASH FLOWS
                             -----------------------
<TABLE>
<CAPTION>
                                                                Cumulative amounts
                                                               from March 17, 1997
                                                            (date of incorporation)
                                                                    to December 31,         Year ended December 31,
                                                                                     ------------------------------------
                                                                          1999         1999         1998         1997
                                                                       ------------  ----------  -----------  -----------
Operations:
<S>                                                                    <C>           <C>         <C>         <C>
 Net loss                                                              $(1,169,230)  $(674,669)  $(338,657)   $(155,904)
Items not requiring current use of cash:
Officers' compensation, donated to the Company (Note 7)
                                                                           688,333     270,000     270,000      148,333
License fees                                                                75,025      75,025           -            -
Depreciation                                                                   525         525           -            -
Changes in other operating items:
     Payable to related party                                                    -     (14,500)     14,500            -
     Employee advances                                                     (25,147)    (20,147)     (5,000)           -

Accounts payable and accrued liabilities                                    13,800      11,408          36        2,356
Other payable                                                                5,000       5,000           -            -
Prepaid expenses                                                            (6,493)     (6,493)          -            -
     Other                                                                    (427)        200        (200)        (427)
                                                                       ------------  ----------  ----------  ----------
Cash used for operating activities                                        (418,614)   (353,651)    (59,321)      (5,642)
                                                                       ------------  ----------  ----------  ----------

Investments:
Furniture and fixtures                                                      (2,624)     (2,624)          -            -
                                                                       ------------  ----------  ----------  ----------
Cash used for investing activities                                          (2,624)     (2,624)          -            -
                                                                       ------------  ----------  ----------  ----------

Financing:
 Advance from related party                                                      -      (1,366)      1,366            -
Issuance of common stock, after stock issuance expense
                                                                           516,884     298,661     212,487        5,736
Purchase of Treasury stock                                                  (3,653)     (3,653)          -            -
                                                                       ------------  ----------  ----------  ----------
Cash provided by financing activities                                      513,231     293,642     213,853        5,736
                                                                       ------------  ----------  ----------  ----------

Increase (decrease) in cash                                                 91,993     (62,633)    154,532           94

Cash at beginning of period                                                      -     154,626          94            -
                                                                       ------------  ----------  ----------  ----------
Cash at end of period                                                  $    91,993   $  91,993   $ 154,626   $       94
                                                                       ============  ==========  ==========  ==========

Supplemental cash flow disclosures:
 Taxes paid                                                            $       150   $      50   $      50   $      50
                                                                       ============  ==========  ==========  ==========

Supplemental schedule of noncash investing and financing activities:
Payable for purchase of license                                        $         -   $       -   $  14,500   $       -
                                                                       ============  ==========  ==========  ==========
Receivable from sale of common stock                                   $         -   $       -   $       -   $   4,968
                                                                       ============  ==========  ==========  ==========

Acquisition of Treasury stock                                          $   (25,147)  $ (25,147)  $       -   $       -
For cancellation of employee advances                                       25,147      25,147           -   $       -
                                                                       ------------  ----------  ----------  ----------
                                                                       $         -   $       -   $       -   $       -
                                                                       ============  ==========  ==========  ==========
</TABLE>


                   See accompanying notes to financial statements.

                                        6
<PAGE>
                    CALIFORNIA  MOLECULAR  ELECTRONICS  CORP.
                    -----------------------------------------
                          (a development stage company)
                          -----------------------------

     NOTES  TO  FINANCIAL  STATEMENTS
     --------------------------------

NOTE  1  -  Operations  and  summary  of  significant  accounting  policies:

     California  Molecular  Electronics  Corp.  ("CALMEC"  or the "Company"), an
Arizona  corporation,  was incorporated on March 17, 1997.  CALMEC was formed to
engage  primarily in the business of producing and selling products and services
related  to  the  new  technological  field of molecular electronics.  Molecular
electronics  is  the technology of using single molecules to form the components
of  electronic  devices.

     CALMEC is currently attempting to raise equity through a public offering of
its  common  stock  (see  Note  11).

     A  summary  of  significant  accounting  policies  follows:

     Use  of  estimates
     ------------------

     The  preparation  of  financial  statements  requires  management  to  make
estimates  and  assumptions  that  affect  the amounts reported in the financial
statements  and  accompanying  notes.  Actual  results  could  differ from those
estimates.

     Fair  value  of  financial  instruments
     ---------------------------------------

     The  carrying values of financial instruments, such as accounts payable and
debt  obligations,  approximate  their  fair  market  value.

     Concentration  of  credit  risk
     -------------------------------

     The Company maintains its cash in bank deposit accounts at well-established
financial  institutions.  At times the balances per the records of the financial
institutions  may  exceed  federally  insured  limits.

     Furniture  and  fixtures
     ------------------------

     Furniture  and  fixtures  are stated at cost.  Expenditures for maintenance
and  repairs are charged to expense.  Depreciation is computed using accelerated
methods  over  the  estimated  useful  lives  of  the  assets  of  five  years.

     Income  taxes
     -------------

     The  Company uses the asset and liability method in accounting for deferred
income  taxes.  Under this method, deferred income taxes are recorded to reflect
the  tax consequences in future years of differences between the carrying amount
of  assets  and  liabilities for financial reporting and tax purposes (primarily
relating  to  start-up  costs)  at  each  fiscal  year  end.


                                        7
<PAGE>
     Loss  per  share
     ----------------

     Basic  and dilutive loss per common share is calculated by dividing the net
loss for the period by the average number of common shares outstanding. In 1999,
1998,  and 1997, dilutive loss per share excludes the effect of options, because
the  effect  would  have  been  antidilutive.



<TABLE>
<CAPTION>
NOTE  2  -  Furniture  and  fixtures:

                                      December 31
                                 -------------------
                                     1999      1998
                                 ------------  -----
<S>                              <C>           <C>
Computer equipment               $      2,624  $   -
Less - accumulated depreciation           525      -
                                 ------------  -----

                                 $      2,099  $   -
                                 ============  =====
</TABLE>

NOTE  3  -  Common  stock  offering:

     In  April 1998, CALMEC commenced a private placement offering of its common
stock.  The  offering  agreement allowed for the sale of up to 400,000 shares of
CALMEC's  common  stock  at $2.50 per share (restated for stock dividend), for a
maximum  value  of  $1 million.  There was no minimum number of securities which
were  required  to  be  sold  in  the  offering.  In  February 1999, the Company
increased  the  price  of  the  shares  to  $5 per share (restated for the stock
dividend;  see  Note  4).   On  March 1, 1999, the Company began providing stock
purchasers  with  a  warrant for each share purchased.  The warrant entitles the
purchasers  to  buy  an  additional  share for $5 through February 2002.  CALMEC
terminated  the  offering  in  June  1999.

     CALMEC  is  in  the  process  of  raising equity financing through a public
offering  of  its  common stock.  On January 31, 2000, CALMEC filed a Form SB-2,
Registration Statement Under The Securities Act of 1933, with the Securities and
Exchange  Commission  ("SEC"),  which  became effective on February 7, 2000 (see
Note  11).

NOTE  4  -  Issuances  of  capital  stock:

     On  March 19, 1997, the Company's chairman agreed to pay expenses he deemed
essential  to  the  Company's  start-up  phase,  with the understanding that the
Company would reimburse him for these costs at 10% per annum, until such time as
the  Board  of  Directors determined the Company had attained sufficient capital
for  its  operations.  The  chairman  agreed to cancel the first $10,000 of such
obligations  owed to him by the Company in exchange for 10 million shares of the
Company's  no par common stock valued at $.001 per share.  On June 5, 1997, upon
the  execution  of  certain long-term employment and other agreements related to
CALMEC,  the  Company  issued  1  million  shares  of  common  stock  to  an
officer/director  of CALMEC at $.001 per share.  On September 17, 1997, upon the
execution  of  certain  employment agreements, CALMEC issued 1 million shares of
its  common  stock  to  the  Company's president and CEO at $.002 per share.  On
January  1,  1998,  each of the stockholders voluntarily contributed back to the
Company  80%  of his stock to effect a pro-rata voluntary 80% reduction in their
ownership.  The  stock that was contributed back to the Company was deemed to be
authorized  and unissued stock rather than treasury stock.  In 1998, the Company
issued  87,520  shares  of  its common stock to accredited investors, as defined
under  Rule  501(a)  of  Regulation D promulgated by the Securities and Exchange
Commission,  at  $2.50 per share.  In 1999, the Company issued 106,545 shares of
its  common  stock to accredited investors at prices ranging from $2.50 to $5.00
per  share.  On  February 15, 1999, the Board of Directors declared a 100% stock
dividend.  All shares and per share data have been restated to reflect the stock
dividend.


                                        8
<PAGE>
NOTE  5  -  Leases:

     The  Company  has  entered  into a cost reimbursable contract with San Jose
State  University  Foundation  ("Foundation")  for the period from April 1, 1999
through  March 31, 2000.  The contract includes advisory services to be provided
by  the  San Jose State University Department of Chemistry, facilities, supplies
and  equipment  use.  The  Foundation  shall be reimbursed for costs incurred in
providing  the  aforementioned  items  not to exceed a maximum amount of $72,794
over  the  period  of the contract.  Rent expense was $36,326 and $3,726 for the
years  ended  December  31,  1999  and  1998,  respectively, and no rent expense
was incurred in 1997.

NOTE  6  -  Licenses:

     CALMEC  has  entered  into  an  exclusive  license  and  patent  assignment
agreement  with  an officer/director of the Company.  The agreement provides the
Company  with  the  exclusive  rights to use ChiropticeneTM switches, a class of
molecular  electronic switches.  The agreement also called for the assignment to
CALMEC  of  all  of the officer/director's rights to Chiropticene  technology on
May 1, 1999.  CALMEC paid the officer/director a license fee of $25,000 ($10,500
of  the  license  fee  was paid in 1998, and the balance was paid in 1999.)  The
cost  of  the  license  fee  has  been  expensed  in  the accompanying financial
statements  as  research  and  development  costs.

     During  1999,  CALMEC  entered  into  license  agreements  with  certain
universities  which  provide  the Company with exclusive licenses to use or sell
products  using  technology owned by the universities.  The Company has paid the
universities  $25,000,  and  has  issued  15,005  shares  of  common  stock to a
university and certain inventors for license fees.  CALMEC has reimbursed one of
the universities $15,237 for prior expenses incurred.  The Company has reflected
the payments and common stock issuance in the amount of $115,262 as research and
development  costs  in  1999  in  the  accompanying financial statements, with a
credit  to  cash  in  the amount of $40,237 and to common stock in the amount of
$75,025.

NOTE  7  -  Related  party  transactions:

     CALMEC's  three officers have devoted 100% of their time to the business of
the Company since their hire in 1997.  The officers have elected to forego their
salaries  until  such time after the Company has completed its startup phase and
upon  determination  by  the  Board  of  Directors  that  sufficient  capital is
available for operations.  Planned annual remuneration for the three officers is
as  follows:  $40,000  -  Chairman and Treasurer; $110,000 - President and Chief
Executive  Officer;  and  $120,000 - Executive Vice President and Secretary.  As
required  by  the  Securities  and  Exchange Commission accounting rules, in the
accompanying  financial  statements  the  officers'  unpaid  salaries  totaling
$270,000  for  the  years  ended December 31, 1999 and 1998 and $148,333 for the
year  ended December 31, 1997 are reflected as compensation expense and a credit
to common stock, as the Company does not intend to repay such forfeited salaries
in  the  future.



                                        9
<PAGE>
     In  December  1999,  the Company repurchased from an officer of the Company
4,800  shares  of  common stock at $6.00 per share, of which $25,147 was applied
against  outstanding  advances  from  the  officer.

NOTE  8  -  Stock  option  plan:

     On  May  1,  1997,  the Board of Directors of CALMEC adopted the 1997 Stock
Option  Plan  (the  "1997  Plan").  The  aggregate  number  of  shares  that are
available  for  issuance  pursuant  to the exercise of options granted under the
1997  Plan  may not exceed 1,600,000 shares of common stock.  Options granted in
1999 have vesting periods ranging from immediate to five years.  Options granted
in  1998 generally vest within one year from the date of grant.  Incentive stock
options  are  priced at the fair market value of the stock at the date of grant.
Nonqualified  stock  options  are priced at eight-five percent (85%) of the fair
market  value  at  the date of grant.  Options generally have a life of seven to
ten  years.

     During  1997, CALMEC adopted Financial Accounting Standards Board Statement
No.  123,  "Accounting  for  Stock-Based  Compensation"  ("SFAS  No.  123") and,
pursuant  to the provisions of SFAS No. 123, applies Accounting Principles Board
Opinion  No.  25,  "Accounting  for Stock Issued to Employees" ("APB 25") to the
1997  Plan.  Accordingly,  no compensation cost has been recognized for the Plan
in  1999  and  1998.

     Had  CALMEC  elected to adopt the fair value approach of SFAS No.  123, the
net  loss  of  $674,669  as  reported for the year ended December 31, 1999 would
compare  to  a  pro  forma  net  loss  of  $737,762; the net loss of $338,657 as
reported  for  the year ended December 31, 1998 would compare to a pro forma net
loss  of  $366,197  and the net loss of $155,904 as reported for the period from
March 17, 1997 (date of inception) to December 31, 1997 would not change.  Basic
and  diluted  loss per share of $.14 as reported for the year ended December 31,
1999 would compare to a pro forma net loss per share of $.15.  Basic and diluted
loss per share of $0.07 for the year ended December 31, 1998 would compare to a
basic  and  diluted loss per  share  of  $0.08 on a pro forma basis.  Basic and
diluted  loss  per  share  of  $0.03 for the period from March 17, 1997 (date of
inception)  to  December  31,  1997  would  not  change  on  a  pro forma basis.

     The  effects of applying SFAS No. 123 in the preceding pro forma disclosure
are  not  indicative  of  the  effect  on  reported net income for future years.

     The fair value of each option grant is estimated on the date of grant using
the  minimum value method with the following assumptions used for grants in 1999
and  1998,  respectively:  risk-free  interest rates of 6.4% for both years, and
expected  lives  of 5.8 and 5.9 years.  No dividend yield was used as CALMEC has
not  paid  dividends in the past and does not anticipate paying dividends in the
future.


                                       10
<PAGE>
A  summary  of  the status of CALMEC's stock option plan as of December 31, 1999
and  1998,  and  changes  during  the  years  then  ended,  is  presented below:

<TABLE>
<CAPTION>
                                         1999        1998
                                      ----------  ----------
                                                   Weighted              Weighted
                                                   Average                Average
                                        Number     Exercise    Number    Exercise
                                      of Shares     Price     of Shares    Price
                                      ----------  ----------  ---------  ---------
<S>                                   <C>         <C>         <C>        <C>
Outstanding at beginning of year        886,000   $  0.2156     800,000  $  0.0038
Granted                                  48,520   $  5.0000      86,000  $  2.1860
Canceled                                (16,500)  $ (2.1250)          -          -
                                      ----------  ----------  ---------  ---------
Outstanding at end of year              918,020   $   .4341     886,000  $  0.2156
                                      ==========  ==========  =========  =========

Options exercisable at year end         418,020                 207,000

Weighted average grant-date fair
     value of options granted during
     the year whose exercise price
     equaled market price on date of
     grant                                        $    1.37              $     .39

Weighted average grant-date fair
     value of options granted during
      the year whose exercise price
     was less than market price on
     date of grant                                $       -              $     .92
</TABLE>

     The  following table summarizes information about stock options outstanding
at  December  31,  1999:

<TABLE>
<CAPTION>



                    Options Outstanding                             Options Exercisable
-----------------------------------------------------------------  ----------------------
                                        Weighted
                                         Average        Weighted                Weighted
Range of                                Remaining        Average                 Average
Exercise                Number         Contractual      Exercise     Number     Exercise
Prices                Outstanding         Life            Price    Exercisable    Price
--------------------  -----------  -------------------  ---------  -----------  ---------
<S>                   <C>          <C>                  <C>        <C>          <C>
5.0000                    48,520            8.3 years  $  5.0000       28,520  $  5.0000
 .0025                    400,000            4.3 years  $   .0025      160,000  $   .0025
 .0050                    400,000            4.7 years  $   .0050      160,000  $   .0050
2.1250                    55,500            8.5 years  $  2.1250       55,500  $  2.1250
2.5000                    14,000            5.3 years  $  2.5000       14,000  $  2.5000
--------------------  -----------  -------------------  ---------  -----------  ---------
 .0025 - $5.00            918,020            4.9 years  $   .4341      418,020  $   .7099
====================  ===========  ===================  =========  ===========  =========
</TABLE>


                                       11
<PAGE>
NOTE  9  -  Commitments:

     In  accordance  with the Company's license agreement with a university (see
Note  6), beginning January 1, 2002 and on January 1 of every year thereafter as
long  as  the  license  is  in  effect,  the  Company shall pay the university a
maintenance fee equal to either, at the university's option, 2,000 shares of the
Company's  common  stock  or a cash payment equal to the fair value of the 2,000
shares  on  the  due  date,  not  to  be  less  than  $10,000.

NOTE  10  -  Income  taxes:

     The  Company's  operating  loss  for  financial reporting purposes has been
reported  as  deferred start-up costs for federal and state income tax purposes.
Deferred  tax  assets  are  comprised  of  the  following:

<TABLE>
<CAPTION>
                                                                             Year ended December 31,
                                                                     ----------------------------------
                                                                         1999       1998
                                                                       --------  ----------  ----------
<S>                                                                   <C>         <C>        <C>
Deferred start-up costs                                               $ 167,581   $ 26,843   $ (2,557)

Valuation allowance for deferred tax assets
                                                                       (167,581)   (26,843)    (2,557)
                                                                      ----------  ---------  ---------

Net deferred tax asset                                                $       -   $      -   $      -
                                                                      ==========  =========  =========
</TABLE>
     A  valuation  allowance  is  provided  for  deferred  tax  assets as future
deductibility  is  uncertain.  At  December 31, 1999, 1998, and 1997 all of the
deferred  tax  assets  were  noncurrent.  The  change  in valuation allowance is
comprised  of  increases  due  to  net  operating  losses.

     A  reconciliation  of income tax computed at the federal statutory tax rate
to  the  provision  for  income  taxes  is  as  follows:


<TABLE>
<CAPTION>
                           Cumulative amounts from
                           March 17, 1997 (date of
                           Year ended December 31,
                               incorporation) to   ----------------------------------------------------------
                                December 31, 1999         1999               1998                1997
                               ------------------  ------------------  ------------------  ------------------
                                 Amount      %       Amount      %       Amount      %       Amount      %
                               ----------  ------  ----------  ------  ----------  ------  ----------  ------
<S>                            <C>         <C>     <C>         <C>     <C>         <C>     <C>         <C>
Income taxes at federal
statutory rate                 $(397,487)  (34.0)  $(229,370)  (34.0)  $(115,126)  (34.0)  $ (53,007)  (34.0)
Increase (decrease) in income
 taxes resulting from:
State and local income
taxes, net of federal tax
benefit                          (58,454)   (5.0)    (33,731)   (5.0)    (16,930)   (5.0)    ( 7,795)   (5.0)
Permanent differences            234,033    20.0      91,800    13.6      91,800    27.1      50,433    32.3
State minimum tax                    150     0.0          50     0.0          50     0.0          50     0.0
Net operating loss               221,908    19.0     171,301    25.4      40,256    11.9      10,369     6.7
                               ----------  ------  ----------  ------  ----------  ------  ----------  ------
                               $     150     0.0   $      50     0.0   $      50     0.0   $      50     0.0
                               ==========  ======  ==========  ======  ==========  ======  ==========  ======
</TABLE>


                                       12
<PAGE>
NOTE  11  -  Subsequent  event:

     On  January  31, 2000, CALMEC filed Form SB-2, Registration Statement under
the Securities Act of 1933, with the SEC.  On February 7, 2000, the Registration
Statement  became  effective  and  CALMEC  commenced its sale of up to 1,000,000
shares  of  common  stock  at $6.00 per share.  CALMEC plans to raise $6 million
with  this  offering,  before payment of estimated offering expenses of $50,000,
although  no  assurance can be made as to how many shares the Company will sell.
Subsequent to the effective date of the Registration Statement through March 17,
2000,  CALMEC  has  sold  40,266  shares  of  its  common  stock, for a total of
$241,596.


                                       13
<PAGE>


                                   SIGNATURES


     Pursuant  to  the  requirement  of  Section  13  or 15(d) of the Securities
Exchange Act of 1934, the issuer has duly caused this report to be signed on its
behalf  by  the  undersigned,  thereunto  duly  authorized  on  May  18,  2000.



                                    California Molecular Electronics Corp.

                                    /s/ James Marek, Jr.
                                    --------------------------------------
                                        James Marek, Jr.
                                        President and Chief Executive Officer


                                       14
<PAGE>