UNITED STATES

SECURITIES AND EXCHANGE COMMISSION



WASHINGTON, D.C. 20549



FORM 10-Q



[X]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2008



[ ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from _______ to _________



Commission File Number 0-23957



MEDITECNIC, INC.

(Exact Name of small business issuer as specified in its charter)



Nevada

87-0430532

(State or other Jurisdiction of

I.R.S. Employer Identi-

Incorporation or Organization

fication No.)



24351 Pasto Road, #B, Dana Point, California 92629



(Address of Principal Executive Offices)

(Zip Code)



(949) 489-2400



(Issuer's Telephone Number, including Area Code)



Indicate by check mark whether the Registrant (i) 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 (of for such shorter period that the Registrant was required to file such reports) and (ii) has been subject to such filing requirements for the past 90 days. YesNo X



Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of "accelerated filer and large accelerated filer" in Rule

12b-2 of the Exchange Act (Check one).



Large accelerated filer [  ]    Accelerated filer  [  ] Non-accelerated filer [  ]   Smaller Reporting Company [ X ]

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.

Yes [  ] No [ X ]

Indicate the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date.



Common Stock, par value  $.001

7,527,485

Title of Class

Number of Shares outstanding

at December 11, 2008







MEDITECNIC, INC. (A DEVELOPMENT STAGE COMPANY)

BALANCE SHEET

AS OF JUNE 30, 2008 AND DECEMBER 31, 2007



ASSETS

JUNE 30,

DECEMBER 31,

2008

2007

Current Assets

Cash and cash equivalents

$

120,339

$

103,903

Inventory

126,446

113,867

Prepaid Expenses

42,211

45,676

Marketable Securities

17,644

15,888

Total Current Assets

306,640

279,334



Fixed Assets

Vehicles

21,190

16,921

Office Furniture and Equipment

65,252

52,072

86,442

68,993

Accumulated Depreciation

(73,367)

(64,303)

Total Fixed Assets

13,075

4,690



Other Assets

Patents

871,326

871,326

Deposits

11,762

10,592

Total Other Assets

883,088

881,918



Total Assets

$

1,202,803

$

1,165,942



LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable

$

68,207

$

44,327

Accrued Payroll Taxes

--

--

Total Current Liabilities

68,207

44,327



Long Term Liabilities

Payable to Related Party

199,301

177,942

Loans from Shareholders

3,446,945

2,936,202

Total Long Term Liabilities

3,646,246

3,114,144



Stockholders Equity

Preferred Stock (1,000 shares issued and outstanding)

1

1

Capital Stock (7,527,485 issued and outstanding)

7,528

7,528

Additional Paid In Capital

3,495,072

3,495,072

Accumulated Deficit During the Development Stage

(5,999,045)

(5,668,579)

Accumulated Other Comprehensive Income

(15,025)

173,450

(2,511,650)

(1,992,529)



Total Liabilities and Stockholders Equity

$

1,202,803

$

1,165,942





















See accompanying Notes to Financial Statements.



MEDITECNIC, INC. (A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF OPERATIONS

CUMULATIVE

FOR THE SIX

FOR THE THREE

FROM

MONTHS ENDED

MONTHS ENDED

MARCH 24, 1998

JUNE 30

JUNE 30

JUNE 30

JUNE 30

TO

2008

2007

2008

2007

JUNE 30, 2008

Income

Sales Turnover

$

--

$

--

$

--

$

--

$

258,814

Research and Development

--

--

--

--

357,332

Realization of Patents

--

--

--

--

90,734

Other Revenue

--

--

--

--

14,832

Total Income

--

--

--

--

721,712



Operating Expenses

Staff Research

73,788

73,941

36,346

32,592

1,943,980

Audit Fees

72,966

4,156

14,009

163

175,766

Legal and Honoraries

44,147

16,415

8,837

9,805

246,438

Office Rent

43,795

46,981

20,250

16,143

502,229

General and Administrative

95,704

85,113

58,734

21,766

3,830,058

Total Operating Expenses

330,400

226,606

138,176

80,469

6,698,471



Net Operating Income (Loss)

(330,400)

(226,606)

(138,176)

(80,469)

(5,976,759)



Other Income (Expense)

Interest Income

9

423

6

--

39,050

Insurance Indemnities

--

--

--

--

10,568

Loss on Disposal of Assets

--

--

--

--

(14,288)

Interest Expense

--

--

--

--

(39,301)

Other Taxes

(75)

--

--

--

(18,315)

Total Other Income (Expense)

(66)

423

6

--

(22,286)



Net Income (Loss)

$

(330,466)

$

(226,183)

$

(138,170)

$

(80,469)

$

(5,999,045)



Other Comprehensive Income (Loss)

Gains (Losses) on Exchange Rates

(188,655)

265

(79,592)

(126)

(63,325)

Change in Value of Life Insurance

--

--

--

--

12,744

Gain (Loss) in Marketable Securities

--

1,939

--

--

35,376

Net Comprehensive Income (Loss)

(188,655)

2,204

(79,592)

(126)

(15,205)



Net Income (Loss) per share

(0.0439)

$

(0.0300)

$

(0.0184)

$

(0.0107)

$

(0.7970)



Weighted Average Number

of Shares Outstanding

7,527,485

7,527,485

7,527,485

7,527,485

7,527,485























See accompanying Notes to Financial Statements.



MEDITECNIC, INC. (A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF CASH FLOWS

CUMULATIVE

FOR THE SIX

FOR THE THREE

FROM

MONTHS ENDED

MONTHS ENDED

MARCH 24, 1998

JUNE 30

JUNE 30

JUNE 30

JUNE 30

TO

2008

2007

2008

2007

JUNE 30, 2008

CASH FLOWS FROM OPERATING ACTIVITIES



Net Income

$

(330,466)

$

(226,183)

$

(138,170)

$

(80,469)

$

(5,999,045)



Adjustments to reconcile net income to net cash

provided by operating activities

Depreciation

--

--

--

--

73,367

Amortization

--

--

--

--

592,347

Increase (decrease) in:

Interest Receivable

--

46,453

--

--

--

Accounts Receivable

--

15,252

--

26

--

Prepaid Expenses

(8,419)

32,773

(5,942)

--

(42,211)

Inventory

(12,579)

--

3,813

--

(126,446)

Research and Development

--

--

--

--

(592,347)

Decrease (Increase) in:

Accounts Payable

23,880

(167,395)

14,026

5,170

68,207

Deferred Revenue

--

--

--

--

--

Accrued Liabilities

(39,274)

(8,034)

(39,274)

--

--

Other Comprehensive Income

(188.655)

2,204

(79,592)

(126)

(15,205)

Net Cash Provided (Used) By

Operating Activities

(555,513)

(304,930)

(245,139)

(75,399)

(6,041,333)



CASH FLOWS FROM INVESTING ACTIVITIES



Cash Used for Deposit

(1,170)

(8,670)

355

--

(11,762)

Acquisition of Fixed Assets

(8,192)

--

843

--

(86,442)

Cash Used of Patent Acquisition

--

--

--

--

(871,326)

(Increase) decrease in Marketable



Securities

(1,756)

9,583

532

--

(17,644)

Net Cash (Used) By Investing

Activities

(11,118)

913

1,730

--

(987,174)



CASH FLOWS FROM FINANCING ACTIVITIES



Loans From Shareholders

561,708

298,993

201,262

81,708

3,446,945

Payable to Related Party

21,359

(5,110)

21,359

(5,110)

199,301

Sale of Common Stock

--

--

--

--

3,502,601

Net Cash (Used) By Financing

Activities

583,067

293,883

222,621

76,598

7,148,847



NET INCREASE (DECREASE) IN CASH

16,436

(10,134)

(20,788)

1,199

120,339



CASH AT BEGINNING OF PERIOD

103,903

96,757

141,127

85,424

--



CASH AT END OF PERIOD

$

120,339

$

86,623

$

120,339

$

86,623

$

120,339



Cash Paid for Interest

--

--

--

861

18,319



See accompanying Notes to Financial Statements.



MEDITECNIC, INC. (A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)

JUNE 30, 2008

NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



A summary of significant accounting policies of Meditecnic, Inc. (Predecessor, Viking Broadcasting Corporation) is presented to assist in understanding the Companys financial statements. The financial statements and notes are representations of the Companys management who are responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the accompanying financial statements.



The accompanying financial statements are unaudited, but in the opinion of the management of the Company, contain all adjustments, consisting of only normal recurring accruals, necessary to present fairly the financial position at June 30, 2008, the results of operations for the three months ended June 30, 2008 and 2007, and the cash flows for the three months ended June 30, 2008 and 2007.



Reference is made to the Company's Form 10-K for the year ended December 31, 2007.  The results of operations for the three and six months ended June 30, 2008 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2008.



Organization, Nature of Business and Trade Name



Meditecnic, Inc. (The Company) was incorporated in the State of Nevada on March 24, 1998. Meditecnic, Inc. is the successor by merger on April 18, 1998 with Viking Broadcasting Corporation, (Viking) a Utah corporation incorporated on May 1, 1984 as Carrigan Gold Corporation. Viking was originally formed to sell and deal in minerals, oil and gas properties. This venture and an investment in broadcasting properties were unsuccessful. Because of the unsuccessful ventures, prior to the merger and the subsequent acquisition of certain patent rights, Viking was inactive and had discontinued operations.



The Company has acquired the technology related to its endoscopic applications from Meditecnic, S.A. (Meditecnic), which also performs research and development for the Company.



The financials include the accounts of Meditecnic, Inc., Viking Broadcasting Corporation and Meditecnic, S.A. a wholly owned subsidiary. On April 18, 1998, Meditecnic, Inc. merged with Viking Broadcasting Corporation being the surviving company and establishing the surviving entitys name to be Meditecnic, Inc. The Company's primary business is developing and marketing advanced products for dental and endoscopic applications.



Prior to April 18, 1998, Meditecnic, Inc. had been a privately owned and operated development stage company. The Company has not generated any significant revenues from its operations and is defined as a development stage company per SFAS No. 7.



Basis of Presentation



The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Companys system of internal accounting control is





MEDITECNIC, INC., (A Development Stage Company)

(Predecessor, Viking Broadcasting Corporation)

NOTES TO FINANCIAL STATEMENTS





NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Basis of Presentation (continued)



designed to assure, among other items, that (1) recorded transactions are valid; (2) all valid transactions are recorded and (3) transactions are recorded in the period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the company for the respective periods being presented.



Foreign Currency Translation



Foreign Currency Transactions  (all of which have been in Swiss Francs) are translated into US dollars at the applicable average daily interbank   floating rates of exchange, prevailing at the dates of the transactions.  Monetary assets and liabilities denominated in foreign currencies are translated into US dollars using the applicable exchange rates prevailing at the balance sheet date.  The Company's share capital and reporting currency is denominated in US dollars.



Property and Equipment



Property and equipment are carried at cost. Expenditures for maintenance and repairs are charged against operations. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.



Depreciation is computed for financial statement purposes on a straight-line basis over estimated useful lives of the related assets. The estimated useful lives of depreciable assets are:

Estimated

Useful Lives

Office Equipment

5-10 years

Office Furniture

5-7   years

Shop Tools

5-7   years

Vehicles

5-10 years



For federal income tax purposes, depreciation is computed under the modified accelerated cost recovery system. For audit purposes, depreciation is computed under the straight-line method.





MEDITECNIC, INC., (A Development Stage Company)

(Predecessor, Viking Broadcasting Corporation)

NOTES TO FINANCIAL STATEMENTS





NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Use of Estimates



The preparation of financial statements in accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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.  A change in managements estimates or assumptions could have a material impact on Meditecnic, Inc.s financial condition and results of operations during the period in which such changes occurred. Actual results could differ from those estimates. Meditecnic, Inc.s financial statements reflect all adjustments that management believes are necessary for the fair presentation of their financial condition and results of operations for the periods presented.



Loss Per Share - Basic and Diluted



The Company follows SFAS No. 128, "Earnings Per Share".  Basic earnings per share is computed by dividing income available to common stock holders by the weighted average number of shares outstanding.  In computing diluted earnings per share, the weighted average number of shares outstanding is adjusted to reflect the effect of potentially dilutive securities including options, warrants, preferred stock or contingently issuable (or escrowed) stock, and income available to common stockholders is adjusted to reflect any changes in income or loss that would result from the issuance of the dilutive common shares.  There were no potential common shares included in the calculation of diluted loss per share for the three months  ended June 30, 2006 and 2005, because the effect would have decreased the loss per share amount and therefore been anti-dilutive.



Cash and Cash Equivalents



For purposes of the statement of cash flows, the Company considers all short-term debt securities purchased with maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates market. The Company maintains cash in bank deposits accounts, which, at times, may exceed federally insured limits or are in foreign banks.



Revenue and Cost Recognition



The Company reports income and expenses on the accrual basis of accounting, whereby income is recorded when it is earned and expenses recorded when they are incurred. In this specific industry revenue is generated from the sale of approved devices. No devices have been approved to this date; therefore, no revenue from operations has been generated.









MEDITECNIC, INC., (A Development Stage Company)

(Predecessor, Viking Broadcasting Corporation)

NOTES TO FINANCIAL STATEMENTS



NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Revenue and Cost Recognition (continued)



Job costs include all direct materials, and labor costs and those indirect costs related to production of approved medical devices. Selling, general and administrative costs are charged to expense as incurred.



Cost of Goods Sold



Job costs include all direct materials, and labor costs and those indirect costs related to production. Selling, general and administrative costs are charged to expense as incurred.



Advertising



Expenses related to specific jobs are allocated and classified as costs of goods sold. Expenses not related to specific jobs are recorded as general and administrative expenses. Advertising expense for the six months ended June 30, 2008 and 2007 totaled $10,574 and $524, respectively.



Principles of Consolidation



These consolidated financial statements are presented based on the generally accepted accounting principle of consolidation and merger. These principles state that a new enterprise is formed through the exchange of stock, or payment of cash or other property, or the issue of debt instruments. Consolidated statements are then presented based on the combining of the results of operations and the financial position of both companies essentially as if the two were a single entity in the periods presented.



The consolidated financial statements include the accounts of Meditecnic, Inc. and Meditecnic, S.A. Intercompany balances have been eliminated in these consolidated statements.



Stock



The Company has authorized common stock and has also authorized preferred stock (see Note P).



Recently Adopted Accounting Standards

In June 2008, the FASB ratified EITF Issue No. 08-3, Accounting for Lessees for Maintenance Deposits Under Lease Arrangements (EITF 08-3). EITF 08-3 provides guidance for accounting for nonrefundable maintenance deposits. It also provides revenue recognition accounting guidance for the lessor. EITF 08-3 is effective for fiscal years beginning after December 15, 2008. The Company does not expect the  impact of EITF 08-3 on its consolidated financial position and results of operations to be material.



In May 2008, the Financial Accounting Standards Board (FASB) issued SFAS No. 162, The Hierarchy of Generally Accepted Accounting Principles. This statement identifies the sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements presented in conformity



MEDITECNIC, INC., (A Development Stage Company)

(Predecessor, Viking Broadcasting Corporation)

NOTES TO FINANCIAL STATEMENTS

NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Recently Issued Accounting Pronouncements (continued)



with generally accepted accounting principles in the United States. This statement is effective 60 days following the approval of the Securities and Exchange Commission. The Company does not expect the effects of adopting this statement to be significant.



In April 2008, the FASB issued FSP 142-3, Determination of the Useful Life of Intangible Assets, (FSP 142-3). FSP 142-3 amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under SFAS No. 142, Goodwill and Other Intangible Assets. FSP 142-3 is effective for fiscal years beginning after December 15, 2008. The Company does not expect the adoption of FSP 142-3 will have a material impact on the Companys consolidated financial position, results of operations and cash flows.



In March 2008, the FASB issued SFAS No. 161 Disclosures about Derivative Instruments and Hedging Activities amendment of FASB Statement No. 133 (SFAS 161).  This statement changes the disclosure requirements for derivative instruments and hedging activities.  Entities are required to provide enhanced disclosures stating how and why an entity uses derivative instruments; how derivatives and related hedged items are accounted for under SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities (SFAS 133) and its related interpretations; and how derivative instruments and related hedge items affect an entitys financial position, financial performance and cash flows.  SFAS 161 is effective in fiscal years beginning after November 15. 2008 and is required to be adopted by the Company in the first quarter of fiscal year 2010.  The Company does not expect the adoption of SFAS 161 will have a material impact on the Companys disclosures.



In December 2007, FASB issued SFAS No. 160 Non-controlling Interest in Consolidated Financial Statements. SFAS No. 160 amends Accounting Research Bulletin No.51, Consolidated Financial Statements, to establish accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary.  SFAS No. 160 defines a non-controlling interest, sometimes called a minority interest, is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent.  The objective of SFAS No. 160 is to improve the relevance, comparability, and transparency of the financial information that a reporting entity provides in its consolidated financial statements.  SFAS No. 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008 and is required to be adopted by the Company in the first quarter of fiscal year 2010.  The Company is evaluating the impact, if any, of the adoption of SFAS No. 160.  It is not expected to have material impact on the Companys financial position, results of operations and cash flows.



In March 2008, the FASB issued SFAS No. 161 Disclosures about Derivative Instruments and Hedging Activities amendment of FASB Statement No. 133 (SFAS 161).  This statement changes the disclosure requirements for derivative instruments and hedging activities.  Entities are required to provide enhanced disclosures stating how and why an entity uses derivative instruments; how derivatives and related hedged items are accounted for under SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities (SFAS 133) and its related interpretations; and how derivative instruments and related hedge items affect an entitys financial position, financial performance and cash flows.  SFAS 161 is effective in fiscal years beginning after November 15. 2008 and is required to be adopted by the Company in the first quarter of fiscal year 2010.  The Company does not expect the adoption of SFAS 161 will have a material impact on the Companys disclosures.



In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combinations. SFAS No. 141R changes the accounting for business combinations in a number of areas including the treatment of contingent consideration, preacquisition contingencies, transaction costs, in-process research and development and restructuring











MEDITECNIC, INC., (A Development Stage Company)

(Predecessor, Viking Broadcasting Corporation)

NOTES TO FINANCIAL STATEMENTS

NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Recently Issued Accounting Pronouncements (continued)

costs. In addition, under SFAS No. 141R, changes in an acquired entitys deferred tax assets and uncertain tax positions after the measurement period will impact income tax expense. This statement will be effective as of the beginning of an entitys first fiscal year that begins after December 15, 2008. This statement, when adopted, will change the Companys accounting treatment for business combinations on a prospective basis.

In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities. This statement permits entities to choose to measure many financial instruments and certain other items at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. This statement is expected to expand the use of fair value measurement. SFAS No. 159 is effective as of the beginning of an entitys first fiscal year that begins after November 15, 2007. The Company adopted adopt SFAS No. 159 during the first quarter of fiscal 2008.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements. This statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The Company is currently in the process of determining the effects of adopting this statement in its consolidated financial statements. In November 2007, the FASB approved the deferral of the effective date of SFAS No. 157 for one year for all nonfinancial assets and nonfinancial liabilities, except for those items that are recognized or disclosed at fair value in the financial statements on a recurring basis.



NOTE B  ACCOUNTS RECEIVABLE



Accounts receivable is defined as amounts due from customers for goods and services provided in the normal course of business operations.  All amounts are based on actual costs incurred.



The receivables that total the amount on the balance sheet are from invoices issued to long time customers that are considered good credit risks and have a history of paying invoices within a reasonable length of time.  Therefore we have determined through analysis of past historical experience for this Company the allowance for bad debt would be less than one half of one percent (.5%) of the receivables listed on the books.





MEDITECNIC, INC., (A Development Stage Company)

(Predecessor, Viking Broadcasting Corporation)

NOTES TO FINANCIAL STATEMENTS





NOTE C  INTEREST RECEIVABLE



Interest receivable is defined as the current value of interest amounts due on trade receivables and note receivables.  The interest receivables on these financial statements consist of amounts charged to customers for financing and accrued on liquid assets.  As of June 30, 2008 and 2007, interest receivables were valued at $0 and $0.



NOTE D - MARKETABLE SECURITIES



The Company's securities investments that are bought and held principally for the purpose of selling them in the near term are classified as trading securities.  Trading securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period included in earnings.  Net (increase) decrease in marketable securities for the six months ended June 30, 2008 was $(1,756) and for 2007 was $9,583



NOTE E  FIXED ASSETS



Fixed assets consist of vehicles, officer equipment and furniture and organization costs less depreciation.



NOTE F  PREPAID EXPENSES



Prepaid expenses are prepayments made to secure the use of assets or the receipts of services at a future date.  The amounts listed on the financial statements presented as prepaid assets are for insurance contracts that overlap the years presented.



NOTE G  - DEPOSITS



The Company paid CHF 400,000 ($258,550) in September 1999 and January 2000 as a deposit on purchase of Meditecnic, S.A., a non-affiliated research contractor.  As of September 12, 2002 the purchase was completed and Meditecnic, S.A. became a wholly owned subsidiary.





MEDITECNIC, INC., (A Development Stage Company)

(Predecessor, Viking Broadcasting Corporation)

NOTES TO FINANCIAL STATEMENTS



NOTE G  - DEPOSITS (continued)



In addition the Company placed a CHF 60,000 deposit for the purchase of patents in December 2003 ($38,346) and a CHF 100,000 ($60,390) for the purchase of an additional patent in February 2001.  Additional deposits were made in 2000 toward patent purchases in the amount of $159,814.  All deposits have been classified as patent deposits as the patents from Meditecnic, SA were purchased by Meditecnic, Inc., prior to the completion of the stock purchase.



NOTE H  PATENTS



Acquisition costs of patents are capitalized.  The Company acquired certain patents by agreement dated March 24, 1998 for a purchase price of CHF 950,000 ($637,260 at the exchange rate in effect on the contract date).  The Company paid all amounts on the contract by July 30, 1998.



These patents will be amortized commencing on commercialization of the patents. Annual taxes and patent license fees and legal costs associated therewith are expensed as incurred.  The continuing carrying value of patents is assessed based upon the Company's operating experience, expected cash flows from related products and other factors as deemed appropriate.



NOTE I - INCOME TAXES



The Company follows Statement of Financial Accounting Standards ("SFAS") No. 109, "Accounting for Income Taxes", which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are         recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts are each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income.



Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax payable for the period and the change during the period in deferred tax assets and liabilities.  As of June 30, 2006 and 2005 there were no deferred tax liabilities or assets. As of June 30, 2005, the Company had net operating loss carryforwards for federal purposes of over $150,000. The federal net operating loss carryforward have begun expiring. The utilization of net operating loss carryforwards may be limited under the provisions of Internal Revenue Code Section 382 and similar state provisions.



The Company has no U.S. operations and is incorporated in Nevada, which levies no income tax on corporations.



Due to the inherent uncertainty in forecasts and future events and operating results, the Company has provided for a valuation allowance in an amount equal to gross deferred tax assets resulting in no net deferred tax assets or liabilities for the periods audited





MEDITECNIC, INC., (A Development Stage Company)

(Predecessor, Viking Broadcasting Corporation)

NOTES TO FINANCIAL STATEMENTS



NOTE J  RESEARCH AND DEVELOPMENT



Research and Development Costs are capitalized on actual costs incurred.  Amortization is calculated on the Net Book Value of the Research and Development item/project, and an amortization rate of 33% (percent) per year.



Other Company sponsored research and development costs related to both present and future products are expensed as incurred.



NOTE K  NOTE RECEIVABLE



Note receivable is comprised on a note in the amount of $3,199,592 loaned in various increments beginning in April 2000 to Meditecnic, S.A., which at the time of the loan agreement was an unaffiliated company.   The Company is now a fully owned subsidiary of Meditecnic, Inc., which performs research and development for the Company.  The note was due on December 31, 2002 and bears interest at 5% per annum, payable semi-annually.



As part of the consolidation process the receivables from Meditecnic, SA and the payables to Meditecnic, Inc. related to this footnote were eliminated.



NOTE L  ACCOUNTS PAYABLE



These accounts represent the actual costs of amounts due to Vendors and Suppliers for goods and services received.



NOTE M  ACCRUED PAYROLL TAXES



These accounts represent the actual amounts of unpaid payroll taxes as of the end of each period.



NOTE N  LONG TERM LIABILITIES/POSTPONED STOCKHOLDERS LOANS



These accounts consist of amounts due to stockholders, on which payments have been postponed.  As of the date of these financial statements, Management at Meditecnic is of the opinion that these amounts can be considered as a loss; only a return to a positive Net Stockholders Equity could liberate the postponed amounts.





MEDITECNIC, INC., (A Development Stage Company)

(Predecessor, Viking Broadcasting Corporation)

NOTES TO FINANCIAL STATEMENTS



NOTE O - FOREIGN CURRENCY TRANSACTION GAIN (LOSS)



Foreign currency transaction gains and losses result from a change in exchange rates between the functional currency of the Company and the currency in which a foreign transaction is denominated.  These gains or losses are comprised of actual currency gains or losses realized upon settlement or foreign currency transactions and expected (unrealized) currency gains or losses on unsettled foreign currency transactions.



NOTE P - STOCKHOLDERS' EQUITY



In March 1998 the Company effected a placement under Rule 504 of Six Million (6,000,000) shares of common stock and One Thousand (1,000) shares of Series A Preferred Stock to ten persons for $101,735 and options to purchase One Million Five Hundred Thousand (1,500,000) shares at $2.00 per share.  The options were exercised in fiscal 1998 for net proceeds of $2,980,821 (net offering costs).



When the Company changed domicile to Nevada, the capital structure was changed to authorize Fifty Million (50,000,000) shares of common stock,, $.001 par value, and Ten Million (10,000,000) shares of preferred stock,  $.001 par value.  One Thousand (1,000) shares of preferred stock have been designed as Class A with the following rights and privileges:

- no rights to dividends

- no redemption value

- liquidation limited to $.01 per share

- rights (as a whole) to vote 2/3 (two thirds)

of the  members of the  board  of  directors

-

no  conversion  rights

-

restrictions on transferability



NOTE Q  COMMITMENTS



The Company has signed a contract with an individual to pay CHF 40,000 for the purchase of the technical and intellectual properties related to the Company's dental and endoscopic business.  The contract also calls for his assistance in the further development of the technology as much as possible over and unspecified period of time.



NOTE R  GOING CONCERN



Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading, or seeking protection from creditors pursuant to laws or regulations. Accordingly, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business.



MEDITECNIC, INC., (A Development Stage Company)

(Predecessor, Viking Broadcasting Corporation)

NOTES TO FINANCIAL STATEMENTS



NOTE R  GOING CONCERN (continued)



The Company has had limited operations to date other than the acquisition of the patents and license rights.  In March 1998 the Company raised $100,000 in an offering of common stock.  In 2000 the Company sold $3,000,000 in Common Stock.  The Company is in the research and development stage of its products.  Research and development costs were $223,598 in fiscal 2001, $230,817 in fiscal 2000 and $206,508 in fiscal 1999.



Research and development was carried out by a (previous to the acquisition) non-affiliated entity, Meditecnic SA, on a contract basis. The Company exercised its option to purchase all of the capital stock of Meditecnic SA for CHF 400,000 granted November 5, 2001, of which CHF 300,000 ($195,720) was paid in November 2001 and is accounted for on the December 31, 2001 balance sheet as a deposit.



The Company has also loaned funds to Meditecnic SA prior to the exercising of the purchase agreement. In addition the Company placed a CHF 60,000 deposit for the purchase of patents in December 2000 ($38,346) and a CHF 100,000 ($60,390) for the purchase of an additional patent in February 2001.  Due to the exercising of the subsidiary stock purchase the intercompany balances have been eliminated.





NOTE S - NET LOSS PER COMMON SHARE



Net loss per share is calculated in accordance with SFAS No. 128, Earnings Per Share. The weighted average number of common shares outstanding during each period is used to compute basic loss per share.



Basic net loss per common share is based on the weighted-average number of share of common stock of Seven Million Five Hundred Twenty Seven Thousand Four Hundred Eighty Five (7,527,485) outstanding.



MEDITECNIC, INC., (A Development Stage Company)

(Predecessor, Viking Broadcasting Corporation)

NOTES TO FINANCIAL STATEMENTS



NOTE T  ACQUISITION



An acquisition of a company occurs when one enterprise pays cash, or issues stock or debt for all or part of the voting stock of another enterprise. The acquired enterprise remains intact as a separate legal entity. The parent-subsidiary relationship is accounted for as a purchase, and it is referred to as an acquisition.



Meditecnic, S.A. originally authorized and issued One Hundred (100) bearer shares of stock, which were issued to one (1) shareholder. These stocks were cancelled as part of the acquisition agreement. In an acquisition the stock disclosures are presented by retroactively stating the equity accounts as of the earliest period presented to give effect to the new capital structure subsequent to the acquisition.



No additional shares of stock will be issued as part of this purchase option agreement. Therefore the equity section of the financial statements presented reports the total number of shares issued as of December 31, 2005 as Seven Million Five Hundred Twenty Seven Thousand Four Hundred Eighty Five (7,527,485) shares of common stock.



Meditecnic, SA had assets valued at $420,017; therefore the Seven Million Five Hundred Twenty Seven Thousand Four Hundred Eighty Five (7,527,485) share of common stock on shares of Meditecnic, SA Corp still issued and outstanding had a value of .0558 cents per share at the date of acquisition.  Meditecnic, Inc. had assets on the books valuing Two Million six Hundred Twenty Thousand Four Hundred Sixty Three (2,620,463) resulting in a stock value of .348 cents per share prior to the acquisition.



The acquisition resulted in an increase in the value of the outstanding Seven Million Five Hundred Twenty Seven Thousand Four Hundred Eighty Give (7,527,485) shares of common stock to .404 cents per share.  This resulted in a reverse dilution of .056 cents per share equal to a .161 percent dilution.



Per the purchase option agreement all One Hundred (100) shares of stock were obtained from Meditecnic, S.A. when the option was exercised on June 6, 2002.  The Company stock was purchased at fair market value.  Therefore, these financial statements are presented as if the acquisition had occurred during the periods presented.





Item 2.

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



The Company had no sales in the three and six months ended June 30, 2008 and 2007. Our net loss was $138,170 and $330,466 for the three and six months ended June 30, 2008, compared to a net loss of $80,469 and $226,183 for the three and six months ended June 30, 2007. We the reason for the increased loss in 2008 was legal and audit costs related to completing our periodic reports due for periods prior to 2008. We expect that in future periods these costs will be less as we file on a current basis.



The Company invests cash in marketable securities. A portion of the Companys assets are valued in currencies other than the US dollar, primarily Swiss francs. We recognize gains and losses on the currency exchange rate changes from time to time.



The Company is being funded by shareholder loans which were $561,708 in the six months ended June 30, 2008 and  $21,359 from another related party. Because of the Companys lack of cash, it is unable to engage in significant marketing of its products and the Company has no sales. Management has not determined whether it can obtain loans or equity infusions from persons other than shareholders or related parties, but effective marketing of its products will likely require in excess of $1 million. The total loans as of June 30, 2008 are $3,646,246. Because of these loans and other liabilities of the Company, it has a negative shareholders equity. Until such time as the Company is able to obtain a substantial infusion of cash, whether from additional loans, bank lines of credit or placements of its securities, it will be unable to generate sales and is generally not able to move forward on its business plan. The Company anticipates that once it is able to have its securities listed on a trading market, that it will be able to raise sufficient funds, engage in marketing and begin to have sales again.



In the European areas in which we operate the economic stress and the dislocation of the financial markets that began in late calendar year 2007 has continued and substantially increased in the recent months. Recently, concerns over inflation, energy costs, the availability and cost of credit, the conditions of the U.S. mortgage market and declining real estate prices in the U.S. have contributed to increased market volatility and diminished expectations about U.S. and the global economies and the financial markets going forward. These factors, combined with the volatility in oil prices, declining business and consumer confidence, and increases in unemployment rates, have precipitated an economic slowdown and fears of a potential recession on a global scale.



Off Balance Sheet Obligations and Contractual Obligations



We have no obligations required to be reported under this item.

Inflation

We believe that inflation currently does not have a material effect on our results of operations.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities in the financial statements. Actual results may differ from these estimates. We believe these estimates and assumptions are reasonable. We consider accounting policies to be critical when they require us to make assumptions about matters that are highly uncertain at the time the accounting estimate is made and when different estimates that our management reasonably could have used have a material effect on the presentation of our financial condition, changes in financial condition or results of operations.

Our critical accounting policies include but are not limited to the valuation of inventories and valuation of patents.

When necessary, we adjust the carrying value of inventories to the lower of cost or market, including costs to sell or dispose, and for estimated inventory shrinkage. Inventories are stated at the lower of cost (first in, first out method) or market (net realizable value). Estimates of the future demand for our products, age of the inventory and changes in stock-keeping units are some of the key factors used by our management in assessing the net realizable value of inventories. We capitalize our patents and patent costs as incurred.  The value of our patents must be periodically reviewed for impairment, and amortized once the patents are commercialized.

Forward Looking Statements



Information included in this annual report  includes forward looking statements, which can be identified by the use of forward-looking terminology such as may, expect, anticipate, believe, estimate, or continue, or the negative thereof or other variations thereon or comparable terminology. The statements in "Risk Factors" and other statements and disclaimers in this registration statement constitute cautionary statements identifying important factors, including risks and uncertainties, relating to the forward-looking statements that could cause actual results to differ materially from those reflected in the forward-looking statements.



Since we have not yet generated significant revenues, we are a development stage company as that term is defined in paragraphs 8 and 9 of SFAS No. 7.   Our auditors have included an explanatory paragraph in their report on our financial statements, relating to the uncertainty of our business as a going concern, due to our lack of operating history or current revenues and competitive position.  We do not believe that conventional financing, such as bank loans, is available to us due to these factors.  We have no bank line of credit available to us.  Management believes that it will be able to raise the required funds for operations from one or more future offerings, in order to effect our business plan.



Our future operating results are subject to many facilities, including:



o     our success in developing our technology;



o     our ability to obtain customers for our devices;



o     the effects of competition;



o     our ability to obtain additional financing; and



o     other risks which we identify in future filings with the SEC.



Any or all of our forward looking statements in this annual report and in any other public statement we make may turn out to be wrong. They can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Consequently, no forward looking statement can be guaranteed. In addition, we undertake no responsibility to update any forward-looking statement to reflect events or circumstances which occur after the date of this report.



Item 3. Quantitative and Qualitative Disclosures About Market Risk.



As a smaller reporting company as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.



Item 4T. Controls and Procedures.



Disclosure Controls and Procedures



Evaluation of disclosure controls and procedures. The Companys principal executive officer and its principal financial officer, based on their evaluation of the Companys disclosure controls and procedures (as defined in Exchange Act Rules 13a-14(c) and 15d -14 (c) as of March 31, 2008. Based on this evaluation, our principal executive officer and principal financial officer concluded as of the Evaluation Date that our disclosure controls and procedures were not effective such that the information relating to the Company, including our consolidated subsidiaries, required to be disclosed in our SEC reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and (ii) is accumulated and communicated to management, including our principal executive officer/principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.



Our management, including our chief executive officer and chief financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud.  A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.



Changes in internal controls. There were no significant changes in the Companys internal controls or in other factors that could significantly affect the Companys internal controls subsequent to the date of their evaluation.







PART II.  OTHER INFORMATION



Item 1.

LEGAL PROCEEDINGS  -  None



Item 2.

CHANGES IN SECURITIES - None



Item 3.

DEFAULTS UPON SENIOR SECURITIES - None



Item 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - None



Item 5.

OTHER INFORMATION - None



Item 6.

EXHIBITS

---



31

31.1 Certification of the Chief Executive  Officer pursuant to Rule 13a-14 of the Securities and Exchange  Act of 1934 as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2003. Filed herewith.



31.2 Certification of the Chief Financial Officer pursuant to Rule 13a-14 of the Securities and Exchange  Act of 1934 as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2003. Filed herewith.



32

32.1 Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2003. Filed herewith.



32.2 Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2003. Filed herewith.



SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.





MEDITECNIC, INC.







Date:

December 11, 2008

By:/s/ Luc Badel



Luc Badel

Treasurer (chief financial officer

and accounting officer and duly

authorized officer)