<PAGE>

                                AMENDMENT NO. 1
                                      TO 
                                  FORM 10-QSB
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

              [X] Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

              For the quarterly period ended March 31, 1998
                                             --------------

                                      OR

              [_] 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  0-21384
                                                -------

                          KAIRE HOLDINGS INCORPORATED
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

          Delaware                                            13-3367421
-------------------------------                         ----------------------
(State or other jurisdiction of                           (I.R.S. employer
incorporation or organization)                          identification number)

2139 Pontius Avenue, Los Angeles, California                    90025
--------------------------------------------------------------------------------
  (Address of principal executive offices)                    (Zip Code)

       Registrant's Telephone number, including area code: (310) 312-9652
                                                           --------------

                       INTERACTIVE MEDICAL TECHNOLOGIES LTD.
--------------------------------------------------------------------------------
 (former, name, address and former fiscal year, if changed since last report)

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       No  X
                                              ---      ---

State the number of shares outstanding of each of the Registrant's classes of
common stock, as of the latest practicable date.

                                               Outstanding at
                  Class of Common Stock        March 31, 1998
                  ---------------------       ----------------
                    $.075 par value           4,371,650 shares

        Transitional Small Business Disclosure Format  Yes        No  X
                                                           ---       ---

                                      -1-
<PAGE>
 
                  KAIRE HOLDINGS INCORPORATED AND SUBSIDARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                        For the Quarters Ended March 31,
<TABLE>
<CAPTION>
 
                                                             (Unaudited)     (Unaudited)
                                                                 1997           1998
                                                             ------------   -------------
<S>                                                          <C>            <C>
Cash flows from operating activities
Net Loss                                                      $ (878,446)     $ (423,712)
Adjustments to reconcile net loss to net cash
 used in operating activities:
    Amortization and Depreciation                                136,121          18,513
    Common stock issued for services
    Common stock issued for interest on notes                                      6,205
    Compensation expenses related to below-market stock
     Options granted
(Increase) decrease in:
    Accounts receivable                                          (21,635)        (26,711)
    Lease receivable                                             (90,591)              -
    Prepaid expenses and other assets
    Inventories                                                                     (808)
Increase (decrease) in:
    Accounts payable and accrued expenses                         43,506         156,818
                                                              ----------      ----------
 
         Net cash used in operating activities                  (811,045)       (275,085)
                                                              ----------      ----------
 
Cash flows from investing activities
    Purchase of furniture and equipment                           (2,499)            -
    Investment in affiliates                                     (10,000)            -
 
         Net cash used in investing activities                   (12,499)            -
 
Cash flows from financing activities
    Payments on notes payable                                     (2,000)            -
    Proceeds from issuance of common stock                       450,000         200,078
    Proceeds from issuance of convertible notes                  427,320          60,000
 
         Net cash provided by financing activities               875,320         260,078
                                                              ----------      ----------
 
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                      -6-
<PAGE>
 
believes that the disclosures in these financial statements are adequate to make
the information presented therein not misleading. It is suggested that these
condensed financial statements and notes thereto be read in conjunction with the
financial statements and the notes thereto included in the Company's December
31, 1997 Form 10-KSB.

        The results of operations for the three months ended March 31, 1998 are
not necessarily indicative of the results of operations to be expected for
the full fiscal year ending December 31, 1998.

        Income Taxes
        ------------

        The Company utilizes SFAS No. 109, "Accounting for Income Taxes," which
requires the recognition of deferred tax assets and liabilities 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 at
each period 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.

        Fair Value of Financial Instruments
        -----------------------------------

        The Company measures its financial assets and liabilities in accordance
with generally accepted accounting principles. For certain of the Company's
financial instruments, including cash and cash equivalents and accounts payable
and accrued liabilities, the carrying amounts approximate fair value due to
their short maturities. The amounts shown for notes payable also approximate
fair value because current interest rates offered to the Company for debt of
similar maturities are substantially the same.

        Stock Split
        -----------

        On or about February 19, 1998, the Company effected a 1-for-75 reverse
stock split of its common stock. All share and per share data have been
retroactively restated to reflect this stock split.

        Stock Options
        -------------

        SFAS No. 123, "Accounting for Stock-Based Compensation," establishes and
encourages the use of the fair value based method of accounting for stock-based
compensation arrangements under which compensation cost is determined using the
fair value of stock-based compensation determined as of the date of grant and is
recognized over the periods in which the related services are rendered. The
statement also permits companies to elect to continue using the current implicit
value accounting method specified in Accounting Principles Bulletin ("APB")
Opinion No. 25,

                                      -11-
<PAGE>
 
                                   SIGNATURES
                                   ----------

        Pursuant to the requirements of Section 13 or 15(d) 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.

                     KAIRE HOLDINGS INCORPORATED.
                     ----------------------------
                         (Registrant)



   Date:  March 4, 1999              By: /s/ STEVEN R. WESTLUND
         -------------------            ---------------------------------
                                                Steven Westlund
                                                (Chief Executive Officer)


   Date:  March 4, 1999              By:  /s/ PETER T. BENZ
         -------------------            ---------------------------------
                                                Peter T. Benz
                                                (President)


   Date:  March 4, 1999              By: /s/ OWEN M. NACCARATO 
         -------------------            ---------------------------------
                                                Owen M. Naccarato
                                                (Chief Financial Officer)

                                      -26-