UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB
(Mark One)

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

                  For the fiscal year ended - December 31, 1996

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 
    OF 1934 [No Fee Required]

               For the transition period from ________ to ________

                       Commission file number 33-33042-NY

                            Coronado Industries, Inc.
                 ----------------------------------------------
                 (Name of small business issuer in its charter)


           Nevada                                       22-3161629
-------------------------------            ------------------------------------
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
incorporation or organization)


   16929 E. Enterprise Drive, Suite 202, Fountain Hills, AZ             85268
---------------------------------------------------------------       ---------
(Address of Principal executive offices) (as of date of filing)       (Zip Code)
                                  
Issuer's telephone number (602) 837-6810
                          ---------------

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

     Title of each class              Name of each exchange on which registered

  ------------------------           -------------------------------------------

  ------------------------           -------------------------------------------

Securities registered under section 12(g) of the Exchange Act:  NONE

--------------------------------------------------------------------------------
                                (Title of Class)

--------------------------------------------------------------------------------
                                (Title of Class)

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  Registrant was required to file such reports),  and (2)
has been subject such filing requirements for the past 90 days. Yes [ ] No [ X ]

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


                            CORONADO INDUSTRIES, INC.

                                   FORM 10-KSB

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996

                                                                          Page
                                                                          ----
PART I                                                                      1
      Item 1   Business Development                                         1
      Item 2.  Description of Property                                      7
      Item 3.  Legal Proceedings                                            7
      Item 4.  Submission of Matters to a Vote of Security Holders          7

PART II                                                                     8
      Item 5.  Market for Registrant's Common Equity and Related
                Stockholders Matters                                        8
      Item 6.  Management's Discussion and Analysis or 
                 Plan of Operation                                          9
      Item 7.  Financial Statements                                        10
      Item 8.  Changes In and Disagreement with Accountants on
                 Accounting and Financial disclosure                       10

PART III                                                                   11
      Item 9.  Directors, Executive Officers, Promoters and 
                 Control Persons' Compliance with Section 16(a) 
                 of the Exchange Act                                       11
      Item 10. Executive Compensation                                      12
      Item 11. Security Ownership of Certain Beneficial Owners 
                 and Management                                            12
      Item 12. Certain Relationships and Related Transactions              13

PART IV                                                                    15
      Item 13. Exhibits, Financial Statements, Schedules and 
                 Reports on Form 8K                                        15

SIGNATURES                                                                 16

SUPPLEMENTAL INFORMATION AND EXHIBITS                                      17

<PAGE>

                                     PART I

ITEM 1(a). BUSINESS DEVELOPMENT

         INITIAL PUBLIC OFFERING

         The Registrant was incorporated under the laws of the State of New York
on December 21, 1989. The effective date of the registrant's public offering was
March 13, 1990.  The  Registrant  offered 5,000 common  shares,  par value $.001
each, at $4.50 per Share and 5,000 Warrant Units each Warrant Unit consisting of
8 redeemable  common share  purchase "A" warrants,  16  redeemable  common share
purchase "B" warrants and 16  redeemable  common share  purchase "C" warrants at
$.50 per Warrant Unit.

         5,000 Shares and 5,000 Warrant Units were sold in the offering yielding
gross  proceeds of $25,000 and net proceeds of $15,000 after payment of offering
expenses of $10,000. The Offering closed on May 1, 1990.

         For further information concerning the Registration Statement, see File
No. 33-33042-NY at the Securities and Exchange  Commission's  Regional Office in
New York City or at its principal office in Washington, D.C.

         GENERAL DESCRIPTION OF INITIAL BUSINESS

         The Registrant was organized under the name, First Lloyd Funding,  Inc.
as a blank check  company.  The Registrant was not engaged in any business prior
to its initial public offering.  It was formed to invest in, merge, or otherwise
combine with or acquire another company or other companies.

         ACQUISITION

         The  Registrant,  on May  16,  1990,  acquired  30% of the  issued  and
outstanding  shares  of common  stock of  Logical  Computer  Services,  Ltd.,  a
Delaware corporation, ("LCS") through the issuance of an aggregate of 600,000 of
its common shares to the  stockholders  of LCS. On May 18, 1990,  the Registrant
filed an  amendment to its  certificate  of  incorporation  changing its name to
Logical Computer Services of New York, Ltd.

         LCS  commenced  business in  January,  1989.  It  provided  third party
hardware  maintenance for existing  microcomputer  systems.  It sold maintenance
contracts on an annual basis to the  government and  commercial  sectors.  These
contracts  constituted  a mode of  "downtime  insurance"  as the client was thus
protected from loss of use of the system through malfunction.  LCS also provided
time and material services on a per call basis.  Because of the price erosion of
computer systems and equipment and their increasing reliability,  the prices its
customers  were willing to pay for its services were not economic and markups on
the resale of inventoried  equipment became minimal.  As a result,  during June,
1991, LCS ceased doing business.

                                        1
<PAGE>

         MERGER AGREEMENT - ANDROID CORPORATION

         At the  Registrant's  shareholder  meeting held on April 19, 1994,  the
shareholders of the Registrant  ratified an Agreement and Plan of Reorganization
("Merger  Agreement")  with  Android  Corporation,  a  privately  held  Delaware
corporation.  Under the terms of the  Agreement,  the  shareholders  of  Android
Corporation  would  receive  controlling  interest of the  Registrant,  upon the
merger of the two corporations;  however,  the Registrant would be the surviving
company.  Subsequent  to the  ratification  by the  shareholders  of the  merger
agreement, certain events occurred within Android Corporation. Specifically, the
three operating  subsidiaries of Android  Corporation were rendered  inactive by
the loss of key personnel.  Pursuant to certain  agreements  that existed within
Android  Corporation,  prior to the Merger  Agreement,  the assets  owned by the
subsidiary corporations reverted to the personnel that left Android Corporation.
Subsequent  to these  actions,  Android  Corporation  was left with a very small
amount of operating assets and an excessive amount of debt. The Directors of the
Registrant  determined  that a material  change had taken place  within  Android
Corporation  and it was no longer  advisable to complete  the Merger  Agreement.
Therefore, pursuant to the terms of the Merger Agreement, the Board of Directors
of the Registrant voted to terminate the merger.

         CREATION OF SUBSIDIARY

         Subsequent to the termination of the Merger Agreement,  in October 1994
the Board of Directors of the Registrant  established a wholly owned  subsidiary
under the Laws of the State of Ohio known as Logical Research,  Inc. The purpose
of establishing the subsidiary was to acquire the inventory and technology still
held by Android  Corporation with respect to the laser-assisted  wheel alignment
system  developed  for the  automotive  industry.  As of December 31, 1994,  the
Registrant had secured a licensing agreement to utilize the technology developed
by Android  Corporation  with  respect  to the  laser-assisted  wheel  alignment
system.  Under the terms of the  licensing  agreement,  for a period of not more
than two years, the Registrant was to pay the sum of $500 to Android Corporation
for each wheel alignment system sold that utilized the technology  improved upon
by Android Corporation.  In addition,  in January,  1995, the Board of Directors
secured  an  assignment  of  patent  rights  for  the  patented  portion  of the
underlying  technology involving the wheel alignment system. The majority of the
patent rights are held by two former  shareholders of Android  Corporation,  Mr.
James L.  Woodruff and Mr. John G. Lange.  Mr.  Woodruff and Mr. Lange agreed to
permit the registrant to practice the technology  disclosed in the patent and to
formally  assign the patent to the Registrant at such times as Mr. Lange and Mr.
Woodruff  were  successful  in obtaining  permission to assign the patent from a
third  individual  that holds the remaining  patent rights.  In exchange for the
permission  to  practice  the  technology  and  the  future  assignment  of  the
technology,  the Board of Directors issued to Mr. Lange and Mr. Woodruff a total
of 188,491 shares of common stock in the Corporation in January, 1995.

         In addition to the  aforementioned  stock issued in 1995,  the Board of
Directors authorized a private offering of stock in the amount of 540,000 shares
of the  Registrant's  common stock during the fourth  quarter of 1994. The stock
was offered to former  shareholders of Android  Corporation at the rate of $0.50
per share. An additional  150,430 shares of common stock were issued as a result
of this private  offering of this amount:  19,939 shares were reportedly  issued
for new capital and the balance was  reportedly  issued as a  capitalization  of

                                        2
<PAGE>

outstanding  loans to the Registrant.  The present  management of the Company is
investigating  the facts  involving the issuance of these shares to confirm that
the Company received the  consideration  reported.  At this time the Company has
obtained  sufficient  information to challenge the validity of the issuance of a
substantial number of these shares. (See "Ophthalmic  International,  L.L.C. and
American Glaucoma" below).

         SPIN-OFF OF SUBSIDIARY

         On October 13, 1995, Mr. James L.  Woodruff,  director and President of
the  Corporation,  was sentenced as a result of a prior guilty plea to one count
of filing a false document. The Federal District Court in Colorado sentenced Mr.
Woodruff to a prison  term of three  years as a result of this plea.  On October
20,  1995,  the Board of  Directors  of the  Corporation's  subsidiary,  Logical
Research, Inc., terminated Mr. Woodruff's employment contract and removed him as
President  of that  corporation.  Thereafter,  the  Board  of  Directors  of the
Registrant  considered its options with regard to the continuation of operations
of  Logical  Research,  Inc.  and as to the  disposition  of the  inventory  and
technology held by the corporation.  It was determined by the Board of Directors
that Logical Research, Inc. had become a significant liability to the Registrant
and that the Registrant  could not utilize the technology held by the subsidiary
corporation without the efforts of Mr. James Woodruff.

         Thereafter,  on October 31, 1995, the Registrant and Mr. James Woodruff
entered  into  an  agreement  whereby  Mr.  Woodruff  would  purchase  from  the
Registrant all of the shares held by the Registrant in Logical  Research,  Inc.,
an Ohio  corporation.  Mr. Woodruff would pay for the shares of stock in Logical
Research, Inc. by conveying his holdings in the Registrant, amounting to 173,995
shares of the Registrant's common stock to the treasury of the Registrant.  This
transaction was  subsequently  completed at the beginning of November,  1995. In
conjunction with the sale of the Registrant's subsidiary,  Mr. James L. Woodruff
resigned all positions that he held in the  Registrant.  After the completion of
this  transaction,  the Registrant  ceased either  directly or indirectly  being
engaged in any business.

         CORONADO STONE PRODUCTS

         On June 4, 1996 the Registrant  executed a Letter of Intent to exchange
15,000,000  shares of its  common  stock for 100% of the  outstanding  shares of
Creative Stone Manufacturing,  Inc. d/b/a/ Coronado Stone Products.  As a result
of this Letter of Intent, on August 30, 1996 the Registrant's shareholders voted
to: (i) increase the number of authorized  preferred stock shares from 1,000,000
to 3,000,000;  (ii) to consolidate  the  Registrant's  outstanding  common stock
shares  by  means  of a  5-for-1  reverse  stock  split;  (iii)  to  change  the
Registrant's name to Coronado  Industries,  Inc.; (iv) to change the domicile of
the  Registrant  from the State of New York to the State of Nevada.  (All common
stock share numbers used in this report have been adjusted for the reverse stock
split.)
                                        3
<PAGE>

         The contemplated acquisition of Creative Stone Manufacturing, Inc., was
abandoned in September, 1996.

         OPHTHALMIC INTERNATIONAL, L.L.C. AND AMERICAN GLAUCOMA, INC.

         On  November  5, 1996 the  Registrant  entered  into an Asset  Purchase
Agreement with Ophthalmic International, L.L.C. ("OI"), and American Glaucoma, a
joint venture ("AG"), which provided for the purchase of the assets of OI and AG
in exchange for 15,592,224  shares of the Registrant's  common stock (85%) to be
issued to the Registrant's current three Directors. An additional 855,000 shares
were  issued as  finders  fees to twelve  entities  and  individuals,  including
340,000  shares  to  Edward A.  Barth  (then  President  and a  Director  of the
Registrant) and Barth Construction Co., Inc., 5,000 shares to Richard Campanalie
(then a  Registrant  Director)  and  20,000  shares to  Richard  Hooper  (then a
Registrant   Director).   See  "Item  12.  Certain   Relationships  and  Related
Transactions."

         The assets of OI transferred  to the  Registrant  were a patent pending
and other  proprietary  information  concerning  equipment and a process for the
treatment of open angle glaucoma. The assets of AG transferred to the Registrant
were the concept and a business plan for forty glaucoma treatment centers in the
United States. However, a provision in the Asset Purchase Agreement allows OI to
rescind the  transaction  and receive  the patent  rights and other  proprietary
rights back from the Registrant in the event OI discovers  within one year after
the date of the Asset Purchase Agreement that the Registrant breached one of its
representations or warranties in that agreement.

ITEM 1(b). BUSINESS OF ISSUER

         The Registrant, through its Ophthalmic International,  Inc. subsidiary,
will be  manufacturing  and marketing a vacuum  fixation  device with a patented
designed suction ring that treats Open Angle and Pigmentary glaucoma.

         In the United States, glaucoma is a leading cause of blindness. About 3
percent of Americans  older than 65 years (2 million  people) are  affected.  Of
those,  about 60,000 are legally blind. If detected and treated early,  glaucoma
need not cause  blindness or even severe  vision loss.  Glaucoma is not a single
disease  but  rather a group of  diseases  that  effect  the eye.  This group of
diseases has a single feature in that progressive  damage to the optic nerve due
to increased pressure within the eyeball. As the optic nerve deteriorates, blind
spots  and  patterns  develop.  If  left  untreated,  the  result  may be  total
blindness.

         The term glaucoma is derived from the Greek work  "glauco"  which means
bright or sparkling.  The term has evolved to mean vision loss  associated  with
increased  pressure within the eye. The space between the lens and the cornea in
the eye is filled with a fluid called the aqueous humor.  This fluid  circulates
from behind the colored portion of the eye (the iris) through the opening at the
center of the eye  (pupil) and into the space  between the iris and cornea.  The
aqueous  humor is produced  constantly,  so it must be drained  constantly.  The
drain is at the point  where the iris and  cornea  meet,  known as the  drainage
angle,  which directs fluid into a channel  (Schlemm's canal) that then leads it
to a system of small veins  outside the eye.  When the  drainage  angle does not
function properly, the fluid cannot drain and pressure builds up within the eye.


                                        4
<PAGE>

Pressure also is exerted on another fluid in the eye, the vitreous  humor behind
the lens, which in turn presses on the retina.  This pressure affects the fibers
of the optic  nerve,  slowly  damaging  them.  The result over time is a loss of
vision.

         After three years of ongoing  studies  involving Dr. John T.  LiVecchi,
M.D.,  F.A.C.S.,  Assistant  Clinical  Professor  of  Ophthalmology,   Allegheny
University and Dr. Guillermo Avolos,  Professor of Ophthalmology,  University of
Guadalajara, Mexico, it was determined that a 2 minute treatment with Ophthalmic
International's  "vacuum  fixation  device and  patented  design  suction  ring"
temporarily   reduced  I.O.P.  in  the  treatment  of  Open  angle  Glaucoma  by
approximately  6 Hg for an average of three  months at which time the  treatment
can be repeated with no serious side effects.  This I.O.P.  lowering is achieved
when the  external  suction  device is applied  over the  perilimbal  area for a
specified  time.  With this treatment the Registrant  believes that there are no
harmful  side  effects,  like  those  associated  with eye drop  treatments.  In
addition, the following patent entitled "Open Angle Glaucoma Treatment Apparatus
and Method" has been approved and therefore will allow the Registrant to achieve
a significant market advantage over any future competitor.

         In  addition,  the  Registrant  will be  changing  the  labeling on the
equipment from a "vacuum fixation device" to a "glaucoma treatment device." This
labeling requires FDA approval,  for which the first step is the completion of a
3-month  Duke  University  study  anticipated  to start in June,  1997 and to be
completed  by October,  1997.  The  Registrant's  treatment  is a  "Non-Invasive
Procedure"  and the  Registrant  believes  the  procedure  has no  harmful  side
effects,  like those  associated with eye drops.  The test results thus far have
indicated an average  drop of I.O.P.  per  procedure  was 6 mm Hg and 73% of all
eyes  treated   maintained  an  I.O.P.   lowering  effect  (without   additional
traditional treatment) after 8 months.

         On February 11, 1997 the U.S.  Patents and  Trademarks  Office issued a
patent to Ophthalmic  International,  L.L.C.,  Patent Number 5,601,548,  for the
process,  equipment and the procedure which has been licensed to the Registrant.
The  Registrant  believes,  without  assurance,  that this patent  provides  the
Registrant  with a  substantial  competitive  advantage  over current and future
glaucoma treatment competitors.  The Registrant is not aware of any other patent
being granted for glaucoma treatment.

         MARKETING STRATEGY

         Registrant's  subsidiary,  Ophthalmic  International,  Inc., intends to
manufacture and sell the vacuum equipment, the patented rings and the process in
the  United  States  and  abroad,  primarily  through  distributors  who will be
assigned  specific  geographical  territories,  on the  basis of  continents  or
countries.  Ophthalmic  International  entered into a confidentiality  agreement
with  Alcon Co. in March,  1997 as the first  step in  negotiating  for Alcon to
become a distributor.  The Registrant expects Ophthalmic  International to enter
into   confidentiality   agreements  with  one  or  more  additional   potential
distributors and to commence  negotiations for exclusive worldwide  distribution
rights  within the next 30 days.  These  negotiations  may not be completed  and
definitive agreements executed until the Duke University study is completed.

                                        5
<PAGE>

         Until  such  time  as  Registrant   executes  an  exclusive   worldwide
distribution   agreement,   Registrant   expects  to  enter  into  one  or  more
non-exclusive  distribution agreements with medical equipment dealers in the Far
East and/or Europe.  These  short-term  agreements will provide  Registrant with
test-marketing  results for use in its negotiations for the exclusive  worldwide
rights and provide  Registrant  with interim cash flow.  Registrant has sold one
vacuum  fixation unit to a German dealer with which the dealer has commenced his
initial   marketing.   Registrant  expects  one  or  more  of  these  short-term
non-exclusive distribution agreements to be executed within the next few weeks.

         The  Registrant  expects  its  distributors  will  purchase  the vacuum
equipment for  approximately  $5,000-$10,000  per unit and purchase the patented
ring which is placed on the patient's  eye, for  approximately  $10 to $15 each,
depending upon volume.  The Registrant  expects,  without  assurance,  to have a
gross profit margin on the vacuum equipment and patented rings in excess of 60%.

         The  Registrant's  vacuum equipment is composed of special order parts,
such as molded case,  display board,  circuit boards,  and motors, all for which
Registrant  has  established  manufacturing   relationships with  manufacturers.
Registrant's subsidiary,  Ophthalmic  International,  Inc., assembles the vacuum
fixation  device at its  offices in  Fountain  Hills,  Arizona.  At such time as
Registrant executes an agreement with a major worldwide distributor,  Registrant
may also sell the manufacturing  rights to the same company.  The Registrant has
contracted  for the  manufacture  of the  patented  rings with a medical  device
manufacturer located in California.

         Registrant's  subsidiary,  American Glaucoma, Inc., intends to open and
operate as many as 40 glaucoma  treatment clinics  throughout the United States,
subject to obtaining adequate financing.  American Glaucoma plans on opening its
first  glaucoma  treatment  clinic  in the  Phoenix,  Arizona  area.  Registrant
estimates  that  there are  approximately  62,000 to 75,000  potential  glaucoma
patients in the Phoenix area, based upon a 3% general  population  occurrence of
the  condition.  Based upon an estimated  start-up cost and first year budget of
$600,000  for the Phoenix  clinic,  Registrant  estimates  that it would have to
treat  approximately  800  patients  for  an  annual  clinic  fee of  $1,500  to
break-even on these initial  expenditures,  assuming a 50% net income margin (of
which there is no assurance).

         POTENTIAL MARKET

         Registrant estimates that approximately  6,000,000 people in the United
States are affected by Open Angle or Pigmentary glaucoma. The initial studies on
the  Registrant's  process  indicate  that  it  yields  effective  results  with
approximately  75% to 80% of all people  with such  conditions.  Certain  ethnic
populations, such as Orientals, have a higher incidence of the condition. Such a
worldwide incidence of the condition leads the Registrant to the conclusion that
there is a  multimillion  dollar market  presently  for the  Company's  patented
process, equipment and rings.

                                        6
<PAGE>

ITEM 2.  DESCRIPTION OF PROPERTY.

         During the calendar year 1996, the  Registrant  owned no real property.
For the first ten  months of the  calendar  year,  the  principal  offices  were
located,  on a rental free  basis,  within the  offices  operated by Mr.  Edward
Barth,  the interim  President of the Registrant.  These offices were located at
4264 Strausser Street, N.W., North Canton, Ohio 44720.

         Commencing on November 5, 1996, the Registrant's  offices were moved to
16929 E. Enterprise Drive, Suite 202, Fountain Hills, AZ 85268, where Registrant
is currently leasing approximately 1,600 square feet of space from a third party
landlord.  Registrant  is  paying  approximately  $1,000  per  month,  including
utilities,  in  rent  for  this  space  on a  month-to-month  basis.  Registrant
presently believes this space is adequate to satisfy  Registrant's needs for the
foreseeable future.

ITEM 3.  LEGAL PROCEEDINGS.

         There  have been no legal  proceedings  instituted  by or  against  the
Registrant during the last calendar year. However, at least one of the Company's
former  officers and Directors has threatened to sue the Company and its current
Directors as a result of damages  which have been  incurred  because the Company
has refused to permit the  transfer  of his  shares.  The Company has decided to
file a  lawsuit  against  this  and  other  former  officers,  as well as  other
shareholders, on the basis that it now appears they may have been issued Company
shares without the Company receiving  consideration  therefor,  as well as other
grounds. (See "Certain Transactions")

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

         On July 31, 1996 a majority of the Registrant's  shareholders  approved
the following corporate actions:

          (i)   Increase  number  of  authorized  Preferred  Stock  shares  from
                1,000,000 to 3,000,000.

          (ii)  Acquire Creative Stone Manufacturing, Inc.

          (iii) Change name of Registrant to Coronado Industries, Inc.

          (iv)  Change state of incorporation from New York to Nevada.


                                        7
<PAGE>

                                     PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

         MARKETING   INFORMATION.   The  principal  U.S.  market  in  which  the
registrant's  common  shares (all of which are one class,  $.001 par value) were
traded was the over-the-counter  market. The aforesaid securities are not traded
or  quoted on any  automated  quotation  system.  Such  over-the-counter  market
quotations  reflect  inter-dealer  prices  without  retail  markup,  markdown or
commission and may not necessarily represent actual transactions.  The following
table  shows the low and the high bid  reported  by the  NASDAQ  Bulletin  Board
System in 1996, by fiscal quarter, and for the first quarter of 1997.

                                                               Low       High
                                                               ---       ----
January 1, 1996 - March 31, 1996                                  0         0
April 1, 1996 - June 30, 1996 (reflecting 5:1 reverse split)      0         0
July 1, 1996 - September 30, 1996                                 0         0
October 1, 1996 - December 31, 1996                           $1.50     $9.75
January 1, 1997 - March 31, 1997                              $3.00     $6.75

         HOLDERS. The Registrant has approximately 220 stockholder accounts.

         DIVIDENDS.  The  Registrant has not paid or declared any dividends upon
its common  shares since its inception  and, by reason of its present  financial
status and its contemplated  financial  requirements,  does not intend to pay or
declare any dividends upon its common shares within the foreseeable future.

         WARRANTS.  In addition to the  Registrant's  common shares,  there were
issued and  outstanding as of December 31, 1991,  80,000 "B" Warrants and 80,000
"C" Warrants (the "A" Warrants having expired) each redeemable  warrant entitles
the holder to  purchase a like  number of common  shares.  The  warrants  became
exercisable  on the closing date of the Offering,  May 1, 1990. The "B" Warrants
were to expire  two years from the  closing  date and the "C"  Warrants  were to
expire three years from the closing date. The Registrant had the right to redeem
the  warrants at any time upon 30 days'  notice at $.001 each.  Exercise  price,
after the reverse  split,  is $7.25 for the "B"  Warrants and $12.50 for the "C"
Warrants. On May 7, 1992 all of the outstanding warrants were surrendered by the
holder thereof for cancellation. No remuneration was paid to the holder of these
warrants in exchange for the surrender.

         During  the  fourth  quarter  of  1994,  the  Directors  voted to offer
warrants for the purchase of  Registrant's  $0.001 par value common  stock.  The
warrants were to be offered to those former  shareholders of Android Corporation
who did not subscribe to the private offering initiated during September,  1994.
The terms of the  warrants  were that each  warrant  enabled  the  purchaser  to
purchase up to 2,000 shares of the Registrant's $0.001 par value common stock at
a price of $0.15 per share. Only accredited  investors were offered the warrants
and if exercised,  the  purchaser  would have received  restricted  shares.  All
warrants were to expire on January 31, 1996, if not exercised.  A total of 13.1

                                        8
<PAGE>

warrants were subscribed for during the first quarter of 1995 at $1.00 per 2,000
warrants.  None of the $.15  warrants  were  exercised  during the calendar year
1995. All outstanding warrants expired on January 31, 1996.

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

         OPERATIONS.  Registrant  was a  development  stage  company at year-end
December 31, 1996, with no revenues having been generated during the year. Also,
prior to November 5, 1996  Registrant  had been a dormant  shell company with no
operations since 1994. Therefore, there is no comparable prior year's operations
to which to compare the 1996 annual operating results.

         With  respect  to future  operations  Registrant  intends  to  commence
actively  marketing and  manufacturing  its patented  Vacuum Fixation Device and
patented  suction rings in the second-half of 1997. The  profitability  of these
operations  will be dependent  upon the total  number of units sold.  Registrant
believes,  without  assurances,  that its  gross  profit  margins  are such that
Registrant  could be  profitable if as few as 200 Vacuum  Fixation  Devices were
sold during 1997.

         Registrant is also planning,  without assurances,  on opening its first
glaucoma treatment center in the United States in Phoenix, Arizona in the second
half of 1997. On an annual basis,  this glaucoma center could be profitable from
serving as few as 800 patients. Registrant believes, without assurances, that it
is likely to be servicing between 1,000 and 3,000 patients on an annual basis by
the end of the glaucoma center's first full year of operations.

         LIQUIDITY AND CAPITAL RESOURCES

         On a short-term and long-term  basis  Registrant  requires only minimal
capital to sustain  its  manufacturing  and  marketing  of the  patented  Vacuum
Fixation Device and the patented suction rings,  because of Registrant's current
inventory levels and the low cost of marketing these patented products. However,
on a short-term basis Registrant requires  approximately $600,000 to $800,000 to
adequately  fund the first year's  operation of its initial  glaucoma  treatment
center in  Phoenix,  Arizona.  Registrant  is  presently  planning  to conduct a
private  placement  of its  securities  in mid-1997  to secure  this  financing.
However,  at this time Registrant has received no commitments from any source to
provide such financing. On a long-term basis,  Registrant  anticipates,  without
assurances,  that its initial  glaucoma  treatment  center will be  sufficiently
profitable  to permit an  additional  39 glaucoma  centers to be funded over the
subsequent two years from a combination of internal and external sources.

         In December,  1996 Registrant borrowed $10,000,  payable on January 31,
1998 and bearing 15% annual interest. Subsequent to year end Registrant borrowed
an additional $162,000 from the same lender on the same terms.

         On  international  product  sales,  Registrant   anticipates,   without
assurance,  avoiding  currency  deviations  by receiving  U.S.  currency for all
product sales.

                                        9
<PAGE>

ITEM 7.  FINANCIAL STATEMENTS.

         See Financial Statements starting on page F-1 for this information.

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

         On March 21, 1996,  Registrant's  last  certifying  accountant,  Hobe &
Lucas of Independence,  Ohio,  issued an opinion on the  consolidated  financial
statements  of  Logical  Computer  Services  of  New  York,  Ltd.,  a  New  York
corporation  and a Company  predecessor  corporation,  in  conjunction  with the
issuance of the Company's annual report on Form 10-KSB for the fiscal year ended
December  31,  1995.  The  opinion  stated  that the  accompanying  consolidated
financial  statements for the fiscal years ended December 31, 1995 and 1994 were
prepared assuming that the Company would continue as a going concern. The letter
referred to disclosures in Note 8 of the financial  statements  that the Company
had  incurred  net losses  during the years  ended  December  31, 1995 and 1994,
respectively, which, along with other conditions, raised substantial doubt about
the Company's ability to continue as a going concern.  The opinion  additionally
stated that the financial  statements did not include any adjustments that might
result  from the  outcome  of these  uncertainties.  Note 8 to the  accompanying
financial statements disclosed that in order to meet the Company's current debt,
additional  working  capital  would be  required  and that as of the date of the
report the Company had not raised sufficient funds to meet its needs. Registrant
is unaware of any disagreements with Hobe & Lucas that existed at any time.

         On January  17, 1997 Hobe & Lucas  resigned  from its  engagement  with
Registrant as a result of Registrant's move of its offices to Arizona.

         On March 13, 1997 Arthur  Andersen LLP ("Arthur  Andersen") was engaged
by  Registrant  to audit its  financial  statements  for the  fiscal  year ended
December 31, 1996. Registrant was not provided with any advice as to accounting,
auditing or financial  reporting  issues arising from any discussion with Arthur
Andersen.  On  March  28,  1997,  Arthur  Andersen  resigned  as the  certifying
accountant  for  Registrant.  Arthur  Andersen  had not issued any report on the
financial  statements of Registrant.  Registrant is aware of no disagreements or
reportable events with respect to its relationship with Arthur Andersen.

         On May 8, 1997,  Registrant  engaged  Semple & Cooper,  L.L.P.,  as its
principal accountant to audit Registrant's financial statement,  commencing with
the  year-ended  December 31, 1996.  Prior to its  engagement of Semple & Cooper
L.L.P.,  the Registrant had not contacted Semple & Cooper L.L.P. with respect to
any  accounting  matter  or the  subject  of any  disagreement  with a  previous
accounting firm.

                                       10
<PAGE>

                                    PART III

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

         The directors and executive  officers of the  Registrant as of December
31, 1996 were as follows:

         Name and Address                                Position
         ----------------                                --------
         Gary R. Smith                      Director, President and Treasurer
         16929 E. Enterprise Drive
         Suite 202
         Fountain Hills, AZ 85268

         G. Richard Smith                   Director and Secretary
         16929 E. Enterprise Drive
         Suite 202
         Fountain Hills, AZ 85268

         John T. LiVecchi                   Director
         16929 E. Enterprise Drive
         Suite 202
         Fountain Hills, AZ 85268

         The Company presently has two vacancies on its Board of Directors.

         GARY R.  SMITH,  age 53, has been a Director  of the  Registrant  since
November 5, 1996, and President and Treasurer of the  Registrant  since November
5, 1996. From July, 1995 to November 5, 1996 Gary R. Smith was a member and Vice
President of Product Development and Manufacturing of Ophthalmic  International,
L.L.C., the company that developed and patented the glaucoma treatment which was
conditionally  transferred to the  Registrant.  From 1987 to June,  1995 Gary R.
Smith was Co-owner and Vice President of Product  Development and  Manufacturing
for Southern California Medical Distributors,  Ltd. ("SCMD"), where he developed
a turbine  powered  keratotome for eye surgery.  Gary R. Smith attended  Detroit
Institute of Technology in Detroit, Michigan from 1961 through 1963.

         G. RICHARD SMITH,  age 49, has been a Director of the Registrant  since
November 5, 1996 and Secretary of the Registrant  since  November 5, 1996.  From
July,  1995 to November 5, 1996 G. Richard  Smith was a member and  President of
Ophthalmic  International,  L.L.C.,  the company that developed and patented the
glaucoma treatment which was conditionally  transferred to the Registrant.  From
1987 to June,  1995 G.  Richard  Smith was  Co-owner  and  President of Southern
California Medical Distributors, Ltd. ("SCMD") which developed a turbine powered
keratotome  for eye surgery.  G. Richard Smith  attended  Oakland  University in
Oakland County, Michigan from 1968 to 1970.

                                       11
<PAGE>

         JOHN T.  LIVECCHI,  age 49, has been a Director  of the  Company  since
December 16, 1996.  Dr.  LiVecchi  received his medical  degree in 1977 from the
University of Rome, Italy. From 1983 to present Dr. LiVecchi has been in private
medical  practice in the field of  ophthalmology  in the Scranton,  Pennsylvania
area. Dr. LiVecchi has been on the staff of several  hospitals and universities.
Dr.  LiVecchi  is  licensed  to  practice  medicine  in the  States of New York,
Michigan and  Pennsylvania.  Dr.  LiVecchi has  authored  numerous  articles and
presentations.  In  1994  Dr.  LiVecchi  undertook  the  project  of  developing
equipment  and  procedures  for  treating  open angle  glaucoma,  along with the
Company's other Directors.

         Messrs.  Smith,  Smith and LiVecchi were the three owners of SCMD which
developed a turbine powered keratome for eye surgery.  They sold this company to
its Chinese  distributor  in 1995.  During the last year  before its sale,  this
company  had  total  revenues  of  approximately  $1,050,000  and net  income of
approximately  $695,000. This company was sold for a multiple of its net income.
Messrs.  Smith,  Smith and  LiVecchi  sold SCMD to devote  their  efforts to the
development of the glaucoma  treatment  process and  equipment,  which they felt
could be more profitable than the turbine keratome.

Compliance with Section 16(A)

         During the fiscal year ended December 31, 1996, Gary R. Smith failed to
comply with the  reporting  requirements  of Section  16(A) by failing to timely
report to the SEC his  acquisition of 6,796,112  total shares from Registrant on
November 5, 1996 and 19 subsequent gifts of stock to family and friends.

         During the fiscal year ended December 31, 1996, G. Richard Smith failed
to comply with the reporting  requirements of Section 16(A) by failing to timely
report to the SEC his  acquisition of 6,796,112 total shares from Registrant on
November 5, 1996 and 3 subsequent gifts of stock to family and friends.

         During the fiscal year ended December 31, 1996, John T. LiVecchi failed
to comply with the reporting  requirements of Section 16(A) by failing to report
to the SEC his acquisition of 2,000,000 total shares from Registrant on November
5, 1996.


ITEM 10. EXECUTIVE COMPENSATION.

         As of December 31, 1996, there are no outstanding employment contracts.
However,  the Company's Board of Directors  approved annual salaries of $100,000
for the Company's two Officers,  Gary R. Smith and G. Richard Smith,  commencing
November 5, 1996. To the extent these salaries  cannot be paid from Company cash
flow, the salaries will be accrued. As Company revenues and earnings increase in
the future, the salaries of these Company officers may increase.

                                       12
<PAGE>
ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

         As of June 1,  1997  there  were  18,344,253  outstanding  shares.  The
following  table sets  forth the name,  address,  number of shares  beneficially
owned, and the percentage of the Company's total outstanding common stock shares
owned by: (i) each of the Company's  Officers and Directors;  (ii) the Company's
Officers and Directors as a group; and (iii) other shareholders of 5% or more of
the Company's total outstanding common stock shares.

                      Name and Address         Amount and Nature of     Percent
Title of Class        Beneficial Owner         Beneficial Ownership(1)  of Class
--------------------------------------------------------------------------------
Common Stock     Gary R. Smith                      6,528,612             35.6%
                 16929 E. Enterprise Drive
                 Suite 202
                 Fountain Hills, AZ 85268

Common Stock     G. Richard Smith                   6,728,612             36.7%
                 16929 E. Enterprise Drive
                 Suite 202
                 Fountain Hills, AZ 85268

Common Stock     John T. LiVecchi                   2,000,000             10.9%
                 16929 E. Enterprise Drive
                 Suite 202
                 Fountain Hills, AZ 85268

Common Stock     Officers and Directors, As a      15,257,224             83.2%
                  Group (3 People)

Common Stock     J.R. Vincent and M.M. Vincent(1)   1,197,904              6.5%
                 11 Third Avenue
                 Douglas, Isle of Man
                 IM2 6AL

         (1) J.R.  Vincent  and M.M.  Vincent are the sole  directors  of Tryson
Distributors  Limited which owns 648,952 shares and Swincan  Development Limited
which owns 548,952 shares.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

         During the fiscal year ending December 31, 1992, two significant events
took place regarding  individuals  holding more than 10 percent  interest in the
Registrant that materially  effects the management of the Registrant.  On May 7,
1992,  Mr. John Troster (the  Registrant's  President,  Treasurer,  Director and
owner of 93,500 shares of the Registrant's  common shares) sold 87,300 shares to
an investors group comprised of Mr. Stephen A. Jones, Mr. Mitsuo Tatsugawa,  Mr.
Robert Kube,  Mr. David Warren,  Mr.  Raymond R. Gheen and Mr. Timothy J. Miles.
The  shares  were  sold to the  investment  group  as part  of a  108,000  share
purchase. The total purchase price for all of the shares sold was $35,000.00. As
part of this  transaction,  John Troster  resigned as  President,  Treasurer and
Director of the  Registrant and John A.  Catricola  resigned as Vice  President,
Secretary and Director of the Registrant.  Prior to resigning as Director of the
Registrant,  John Troster  appointed Raymond Gheen and Stephen Jones to fill the
vacancies on the Board of Directors  that had resulted from prior  resignations.
Following John Troster's resignation,  Mitsuo Tatsugawa was appointed to replace
John Troster.  Effective May 7, 1992, the new Board of Directors elected Timothy
Miles to serve as President and Treasurer of the Registrant and Mary Ellen Miles
to serve as Vice President and Secretary of the Registrant.  The principal place
of business of the Registrant was changed to Mr. Miles' residence on a rent-free
basis.
                                       13
<PAGE>

         In November,  1992, the Registrant's officers entered into negotiations
with  Android  Corporation,  for a merger of the two  corporations  wherein  the
Registrant  would be the  surviving  entity.  A binding  agreement,  subject  to
shareholder approval, was effective on April 5, 1993. As part of this agreement,
the  investment  group who purchased  control of the  Registrant in 1992 sold to
Android Corporation,  20,000 shares of the Registrant's common stock at the rate
of $2.50  per  share  and  thereafter  sold an  additional  2,500  shares of the
Registrant's  common stock at the rate of $5.00 per share.  In conjunction  with
the  initial  agreement  among  the  control  group   shareholders  and  Android
Corporation,  the shareholders also gave Android Corporation their proxy for all
of the remaining  shares  controlled by the  investment  group for a period form
April 5, 1993 through May 31, 1993. No votes of  shareholders  were taken during
this time and the proxies expired.

         As part of the merger  agreement,  the  Registrant  had agreed to pay a
commission to Mr. Timothy J. Miles for his efforts in arranging the merger.  The
commission  was to be in the  form  of the  issuance  of  44,000  shares  of the
Registrant's common stock. The stock was to restrict stock pursuant to Rule 144.
Although  the  merger  was not  finally  culminated,  the  Board  of  Directors,
comprised  of Mr.  Miles and his wife,  instructed  these  shares of stock to be
issued  to him.  Between  April,  1993  and May 28,  1995,  the  Company  issued
approximately  257,298  post-split  shares to then officers and Directors of the
Company and certain  shareholders  of Android  Corp.,  a company whose  proposed
merger with the Company was never completed. These shares were supposedly issued
as finders fees or in consideration  of monies paid to the Company.  The Company
has recently  learned that little or no  consideration  was received for some of
these shares, because substantially all of the monies were paid to Android Corp.
and not the  Company.  For these and other  reasons,  the Company has decided to
attempt to reclaim these shares through litigation against these shareholders.

         On November 5, 1996,  the  Registrant  entered into the Asset  Purchase
Agreement with Ophthalmic International,  L.L.C., and American Glaucoma, whereby
6,796,112  restricted shares of Registrant's common stock were issued to each of
Gary R. Smith and G. Richard Smith, and 2,000,000  restricted shares were issued
to John T. LiVecchi.  Messrs.  Smith, Smith and LiVecchi became the Registrant's
sole Directors as a result of this transaction. For accounting purposes, Messrs.
Smith,  Smith and LiVecchi are deemed to have no cost in the assets  transferred
to the Registrant.  Ophthalmic  International,  L.L.C., has the right to rescind
the  transaction  and  receive  the return of the  patent and other  proprietary
assets it transferred to Registrant,  if it discovers that  Registrant  breached
any of its  warranties  or  representations  contained  in  the  Asset  Purchase
Agreement.

         Edward  A.  Barth,  Richard  Companalie  and  Richard  Hooper,   former
directors of the Registrant,  received  335,000,  5,000,  and 20,000  restricted
Registrant  shares,  respectively,  as a  finder's  fee  in the  Asset  Purchase
Agreement.  In addition,  Barth  Construction  Co., Edward Barth's  construction
company,  received 5,000 shares of Registrant  common stock as a finder's fee in
the Asset Purchase Agreement. An additional 495,000 post-split shares was issued
in  November,  1996  by the  Company  to  former  officers  of the  Company  and
shareholders  of Android  Corp.  supposedly  as  finder's  fees.  The Company is
currently investigating the propriety of these finder fees to these individuals.


                                       14
<PAGE>

                                     PART IV

ITEM 13. EXHIBITS, FINANCIAL STATEMENTS, SCHEDULES AND REPORTS ON FORM 8K.

         Reference  is  herewith  made to the  financial  statements  and  notes
thereto  included  herein and to the cover page of this 10-KSB  with  respect to
documents incorporated by reference in accordance with Rule 12b-33.

         On  November  14,  1996,  Registrant  filed  a Form  8-K  with  the SEC
reporting on a change in control of  Registrant,  acquisition  of assets,  other
events and resignations of Directors, with no financial statements filed.


                           INDEX TO EXHIBITS PROVIDED


         1.   Financial Statements    F-1

         2.   Exhibit 11 -- Computation of Earnings (Loss) per Share

         3.   Exhibit 27 -- Financial Data Schedule







                                       15
<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 authorized.

                           CORONADO INDUSTRIES, INC.


                                    By: /s/ Gary R. Smith
                                       ------------------------------
                                       Gary R. Smith, President




         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
this report has been signed by the following persons on behalf of the Registrant
and in the capacities on the date(s) indicated.


 /s/ Gary R. Smith
-----------------------   President, (Chief Executive      Dated: June 16, 1997
Gary R. Smith             Officer) Treasurer (Chief
                          Accounting Officer), Director


/s/ G. Richard Smith
-----------------------   Secretary, Director              Dated: June 16, 1997
G. Richard Smith                                                      



-----------------------   Director                         Dated:
John LiVecchi





                                       16
<PAGE>

                     SUPPLEMENTAL INFORMATION AND EXHIBITS


SUPPLEMENTAL  INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO SECTION
15(D) OF THE  SECURITIES  EXCHANGE  ACT OF 1934 BY  REGISTRANTS  WHICH  HAVE NOT
REGISTERED SECURITIES PURSUANT TO SECTION 12 OF THE ACT.

         The  Registrant's  fiscal year ended  December 31, 1996. The Registrant
currently has not held its Annual Meeting of Stockholders.

         Four copies of all material to be mailed to  stockholders  with respect
to such meeting will be furnished to the Securities and Exchange  Commission but
such  documents,  when  furnished,  will  not be  deemed  to be  filed  with the
Securities  and Exchange  Commission  or  otherwise  subject to  liabilities  of
Section 18 of the Act  (except to the extent  that the  Registrant  specifically
incorporates  such material by reference in any subsequent  Form 10-KSB);  it is
expected that such documents  will consist of a Form of Proxy,  Notice of Annual
Meeting, Information Statement with Schedules and/or Exhibits annexed thereto.




                                       17

<PAGE>

                            CORONADO INDUSTRIES, INC.
                          (A Development Stage Company)
                       (Formerly Logical Computer Services
                               of New York, Ltd.)

                              FINANCIAL STATEMENTS

                               For The Year Ended
                                December 31, 1996



<PAGE>






                          INDEPENDENT AUDITORS' REPORT



To The Stockholders and Board of Directors of
Coronado Industries, Inc. (A Development Stage Company)
(Formerly Logical Computer Services of New York, Ltd.)


We have audited the accompanying balance sheet of Coronado  Industries,  Inc. (A
Development  Stage Company) as of December 31, 1996, and the related  statements
of operations, changes in stockholders' equity, and cash flows for the year then
ended.  These  financial  statements  are the  responsibility  of the  Company's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit.

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

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial position of Coronado  Industries,  Inc. (A
Development  Stage  Company) as of  December  31,  1996,  and the results of its
operations  and its cash  flows  for the year  then  ended  in  conformity  with
generally accepted accounting principles.


Certified Public Accountants

Phoenix, Arizona
May 27, 1997




<PAGE>



                            CORONADO INDUSTRIES, INC.
                          (A Development Stage Company)
             (Formerly Logical Computer Services of New York, Ltd.)
                                  BALANCE SHEET
                                December 31, 1996

                                     ASSETS
Current Assets:
   Cash                                                                $  7,183
   Inventory                                                             10,567
                                                                       --------

        Total Current Assets                                             17,750
                                                                       --------

Property and Equipment, net                                               8,799
                                                                       --------
Other Assets:
   Intangible assets                                                      8,266
                                                                       --------

        Total Assets                                                   $ 34,815
                                                                       ========
                      LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:
   Accounts payable                                                    $  8,272
   Accrued salaries                                                      30,556
                                                                       --------

        Total Current Liabilities                                        38,828

Long-Term Debt                                                           10,000
                                                                       --------

        Total Liabilities                                                48,828
                                                                       --------
Stockholders' Deficit:
   Preferred stock - $.0001 par value;
     3,000,000 shares authorized, none
     issued or outstanding                                                   --
   Common stock - $.001 par value;
     20,000,000 shares authorized,
     18,344,253 shares issued and outstanding                            18,344
   Additional paid-in capital                                            37,149
   Accumulated deficit during development stage                         (69,506)
                                                                       --------

        Total Stockholders' Deficit                                     (14,013)
                                                                       --------

        Total Liabilities and Stockholders' Deficit                    $ 34,815
                                                                       ========

                   The Accompanying Notes are an Integral Part
                           of the Financial Statements

                                       F-2
<PAGE>

                            CORONADO INDUSTRIES, INC.
                          (A Development Stage Company)
             (Formerly Logical Computer Services of New York, Ltd.)
                STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT
                      For The Year Ended December 31, 1996


Revenues                                                           $        --
                                                                   -----------
General and Administrative Expenses:
   Officers salaries                                               $    30,556
   Advertising                                                             285
   Amortization                                                            285
   Bad debts                                                               900
   Bank charges                                                             86
   Business promotion                                                      187
   Depreciation                                                          1,766
   Directors fees                                                        1,200
   Dues and subscriptions                                                  127
   Meals and entertainment                                                  59
   Office supplies                                                       1,746
   Outside services                                                        107
   Postage and delivery                                                    374
   Professional fees                                                    24,740
   Taxes and licenses                                                    3,489
   Taxes - property                                                        248
   Telephone                                                               772
   Travel                                                                1,490
                                                                   -----------

        Total operating expenses                                        68,417
                                                                   -----------

Loss from Operations                                                   (68,417)

Interest Expense                                                         1,089
                                                                   -----------

Net Loss                                                           $   (69,506)
                                                                   ===========

Net Loss per Share (Note 1)                                        $        --
                                                                   ===========

Weighted Average Shares Outstanding                                 18,344,253
                                                                   ===========

                   The Accompanying Notes are an Integral Part
                           of the Financial Statements

                                       F-3
<PAGE>

                            CORONADO INDUSTRIES, INC.
                          (A Development Stage Company)
             (Formerly Logical Computer Services of New York, Ltd.)
                  STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                      For The Year Ended December 31, 1996

<TABLE>
<CAPTION>
                                                   Common Stock                     
                                               --------------------                   Stock-
                                                            Retained    Additional    holders'
                         Shares                 Paid-in     Earnings     Treasury     Equity
                      Outstanding    Amount     Capital    (Deficit)      Stock      (Deficit)
                      -----------    ------     -------    ---------    ----------   ---------
<S>                 <C>            <C>       <C>          <C>          <C>          <C>
Balance at
December 31, 1995      1,885,573   $  2,755   $ 253,737   $(298,854)    $ (9,425)    $(51,787)

Stock issued
for services              40,000         40       1,160          --           --        1,200

One for five
reverse stock
split                 (1,540,448)    (1,540)      1,540          --           --           --

Proceeds from
sale of stock          1,511,904      1,512      74,885          --           --       76,397

Reverse merger
with American
Glaucoma and
Ophthalmic            15,592,224     15,592    (293,313)    298,854           --       21,133

Retirement of
treasury stock                --       (870)     (8,555)         --        9,425           --

Stock issued
for finders fee          855,000        855       7,695         --            --        8,550

Net loss                      --         --          --     (69,506)          --      (69,506)
                      ----------   --------   ---------    --------     --------     --------
Balance at
December 31, 1996     18,344,253   $ 18,344   $  37,149    $(69,506)    $     --     $(14,013)
                      ==========   ========   =========    ========     ========     ========
</TABLE>

                   The Accompanying Notes are an Integral Part
                           of the Financial Statements

                                       F-4
<PAGE>

                            CORONADO INDUSTRIES, INC.
                          (A Development Stage Company)
             (Formerly Logical Computer Services of New York, Ltd.)
                             STATEMENT OF CASH FLOWS
                      For The Year Ended December 31, 1996


Cash Flows from Operating Activities:
 Cash paid for general and administrative expenses                     $(75,528)
 Interest paid                                                           (1,089)
                                                                       --------

Net cash used in operating activities                                   (76,617)
                                                                       --------

Cash Flows from Financing Activities:
 Cash received from long-term debt                                       10,000
 Cash received from sale of stock                                        76,397
 Repayment of notes payable to stockholders                              (4,000)
                                                                       --------

Net cash provided by financing activities                                82,397
                                                                       --------

Net Increase in Cash                                                      5,780

Cash, at beginning of year                                                1,403
                                                                       --------

Cash, at end of year                                                   $  7,183
                                                                       ========

Reconciliation of Net Loss to Net Cash Used in
Operating Activities:
 Net loss                                                              $(69,506)

Adjustments to reconcile net loss to net cash
 used in operating activities:
Depreciation                                                              1,766
Amortization                                                                285
Stock issued for services                                                 1,200

Changes in Assets and Liabilities:
Accounts payable                                                        (39,890)
Accrued payroll                                                          30,556
Accrued expenses                                                         (1,028)
                                                                       --------

Net Cash Used in Operating Activities                                  $(76,617)
                                                                       ========

                                       F-5
<PAGE>

                            CORONADO INDUSTRIES, INC.
                          (A Development Stage Company)
             (Formerly Logical Computer Services of New York, Ltd.)
                          NOTES TO FINANCIAL STATEMENTS


1.   Summary of Significant Accounting Policies, Nature of Operations and Use of
     Estimates:

     Organization:

     Coronado Industries,  Inc. (the Company) was originally  incorporated under
     the laws of the State of New York in December 1989 as First Lloyd  Funding,
     Inc., which  subsequently  changed its name to Logical Computer Services of
     New York, Ltd. In September, 1996, the Company changed its name to Coronado
     Industries,  Inc. The Company had limited  activity  prior to its merger on
     November 5, 1996,  when the Company  acquired one hundred percent (100%) of
     the assets of Ophthalmic International, L.L.C. and American Glaucoma.

     The stockholders of American Glaucoma and Ophthalmic International, L.L.C.,
     which are the same for both corporations,  obtained majority control of the
     Company in the combination.  Therefore, the transaction is accounted for as
     a reverse merger. The accompanying financial statements have been presented
     on a contiguous basis due to the inactivity of Logical Computer Services of
     New York, Ltd.

     The Company has been in the  development  stage  since its  acquisition  of
     Ophthalmic  International,  L.L.C. and American  Glaucoma in November 1996.
     Ophthalmic  International,  L.L.C.  has received a patent on the method for
     treating Open Angle Glaucoma, as well as the devices used in the treatment,
     including the Vacuum  Fixation  Device.  However,  a provision in the Asset
     Purchase Agreement allows Ophthalmic  International,  L.L.C. to rescind the
     transaction and receive the patent rights and other proprietary rights back
     from the registrant in the event Ophthalmic International, L.L.C. discovers
     within one (1) year after the date of the Asset Purchase Agreement that the
     registrant  breached  one of its  representations  or  warranties  in  that
     agreement.  The  Company  intends to  manufacture  and market the  patented
     Vacuum  Fixation  Device and the patented  suction  rings to major  medical
     supply companies and health care providers  throughout the world.  However,
     the Company has yet to generate any revenues.

     Use of Estimates in the Preparation of Financial Statements:

     The  preparation  of financial  statements  in  conformity  with  generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions  that affect the reported amounts of assets and liabilities 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.  Actual  results  could  differ  from those
     estimates.

     Inventories:

     Inventories   are  stated  at  the  lower  of  cost,  as  determined  on  a
     first-in/first-out (FIFO) basis or market.

                                       F-6
<PAGE>

                            CORONADO INDUSTRIES, INC.
                          (A Development Stage Company)
             (Formerly Logical Computer Services of New York, Ltd.)
                    NOTES TO FINANCIAL STATEMENTS (Continued)


1.   Summary of Signficant Accounting Policies,  Nature of Operations and Use of
     Estimates: (Continued)

     Property and Equipment:

     Property and  equipment  are stated at cost.  Maintenance  and repairs that
     neither materially add to the value of the property nor appreciably prolong
     its life are charged to operations as incurred. Betterments or renewals are
     capitalized  when  incurred.  Depreciation  is provided  using  accelerated
     methods over the following useful lives:

            Office furniture and equipment       5-7 years
            Machinery and equipment              5-7 years

     Deferred Income Taxes:

     Deferred  income  taxes  are  provided  on an asset and  liability  method,
     whereby  deferred  tax  assets  are  recognized  for  deductible  temporary
     differences  and operating loss and tax credit  carryforwards  and deferred
     tax liabilities are recognized for taxable temporary differences. Temporary
     differences are the differences  between the reported amounts of assets and
     liabilities  and their tax bases.  Deferred  tax  assets  are  reduced by a
     valuation  allowance when in the opinion of  management,  it is more likely
     than not that some  portion or all of the  deferred  tax assets will not be
     realized.  Deferred tax assets and liabilities are adjusted for the effects
     of changes in tax laws and rates on the date of enactment.

     Fair Value of Financial Instruments:

     The fair value of the Company's  long-term debt is based on rates currently
     available from the bank for debt with similar terms and maturities.

     Loss Per Share:

     The loss per  share is based  upon the  weighted  average  number of shares
     outstanding  from the time of the reverse  merger,  and giving  retroactive
     effect to the one-for-five reverse stock split (Note 5).

     Intangible Assets:

     The Company  reviews its  intangible  assets at least  annually to evaluate
     potential impairment by comparing the carrying value of the intangible with
     expected  future net operating cash flows from the related  operations.  If
     the  expected  future net  operating  cash flows are less than the carrying
     value,  the Company  recognizes an  impairment  loss equal to the amount by
     which the  carrying  value  exceeds  the  discounted  expected  future  net
     operating cash flows from the related operation.

                                       F-7
<PAGE>

                            CORONADO INDUSTRIES, INC.
                          (A Development Stage Company)
             (Formerly Logical Computer Services of New York, Ltd.)
                    NOTES TO FINANCIAL STATEMENTS (Continued)


2.   Property and Equipment:

     At December 31, 1996, property and equipment consists of the following:

            Office furniture and equipment          $10,300
            Machinery and equipment                     265
                                                    -------
                                                     10,565
            Less: accumulated depreciation           (1,766)
                                                    -------

            Net property and equipment              $ 8,799
                                                    =======

     Depreciation expense was $1,766 for the year ended December 31, 1996.

3.   Intangible Assets:

     Intangible  assets  consist  primarily of goodwill,  which  represents  the
     excess of the cost of the combined  companies  over the fair value of their
     net assets at the date of combination,  and is being amortized ratably over
     five (5) years.  Amortization  expense  charged to operations  for the year
     ended December 31, 1996 was $285.


4.   Long-Term Debt:

At   December 31, 1996, long-term debt consists of the following:

     10% note payable to Hayden Investments, principal
     and interest due January 31, 1998; unsecured.           $10,000
                                                             =======

5.   Changes in Stockholders' Equity:

     During the year ended December 31, 1996,  the Company's  Board of Directors
     authorized  a number of  transactions  to provide  for  operations  and the
     Company's reverse merger.

     Common Stock:

     The Board of Directors  authorized the issuance of 40,000  pre-split shares
     of common stock to its four directors  (10,000 shares each).  This issuance
     was deemed compensation for services rendered.

     The  Board  of  Directors  authorized  and  the  stockholders   approved  a
     one-for-five reverse stock split effective September 19, 1996.

                                       F-8
<PAGE>
                            CORONADO INDUSTRIES, INC.
                          (A Development Stage Company)
             (Formerly Logical Computer Services of New York, Ltd.)
                    NOTES TO FINANCIAL STATEMENTS (Continued)


5.   Changes in Stockholders' Equity:(Continued)

     The Board of Directors  authorized the subscription of additional shares of
     common stock through a private  offering,  pursuant to  regulations  of the
     Security Act of 1933. This resulted in the issuance of 1,511,904 post-split
     shares  of  common  stock.  The  intent  of  the  Board  of  Directors,  in
     authorizing  the sale of  additional  common  stock,  was to raise  capital
     sufficient to pay off the Company's existing payables.

     The  Board  of  Directors  authorized  the  issuance  of  common  stock  in
     accordance  with the Asset  Purchase  Agreement  between  the  Company  and
     Ophthalmic  International,  L.L.C. and American Glaucoma.  This resulted in
     15,592,224   post-split   shares  of  common  stock  being  issued  to  the
     stockholders of Ophthalmic  International,  L.L.C.  and American  Glaucoma.
     Additionally, 855,000 shares were issued to individuals for finders fees.

     Treasury Stock:

     The Board of Directors  approved the retirement of 869,977 shares of common
     stock held in the treasury, and the return of these shares to the status of
     authorized but unissued shares.

6.   Income Taxes:

     The net operating  losses of the Company  prior to the reverse  merger have
     been substantially  eliminated due to the change in ownership.  As such, as
     of December 31, 1996, the Company has a net operating loss  carryforward in
     the  approximate  amount of $69,000,  available to offset federal and state
     taxable income primarily through December 31, 2011.

     Differences  between  financial  reporting  and  income  tax losses to date
     relates  primarily to the  Company's net operating  loss  carryforwards  at
     December  31, 1996.  SFAS No. 109  requires  the  reduction of deferred tax
     assets  by a  valuation  allowance,  if based on the  weight  of  available
     evidence,  it is more  likely  than not  that  some  portion  or all of the
     deferred tax assets will not be realized.  Based on the weight of available
     evidence,  the  Company  has  provided a full  valuation  allowance  on its
     deferred tax asset at December 31, 1996.

7.   Subsequent Event:

     Subsequent  to December 31, 1996 and through  April 20,  1997,  the Company
     received  from Hayden  Investments,  $162,000 in exchange for several notes
     payable,  each payable within one (1) year with applicable  interest stated
     at 15%.

                                       F-9
<PAGE>
                            CORONADO INDUSTRIES, INC.
                          (A Development Stage Company)
             (Formerly Logical Computer Services of New York, Ltd.)
                    NOTES TO FINANCIAL STATEMENTS (Continued)


7.   Subsequent Event:(Continued)

     During the year ended December 31, 1996,  the State of Nevada  approved the
     Company's change of incorporation  from the State of New York, in which the
     Company  was  originally  incorporated  and  issued  the  Company  a Nevada
     Corporate Charter dated September 6, 1996. Subsequent to December 31, 1996,
     the State of New York also approved the Company's change of  incorporation.
     The Company officially reincorporated June 4, 1997.

8.   Going Concern:

     The accompanying financial statements have been prepared in conformity with
     generally accepted accounting principles, which contemplate continuation of
     the  Company  as a  going  concern.  However,  the  Company  has  sustained
     continuing operating losses.

     The primary  business of the Company,  which is in the  development  stage,
     will be to  manufacture  and  market a  patented  treatment  for Open Angle
     Glaucoma.  The Company's patents relate to both the method of treatment and
     the necessary devices. However, the Company has yet to generate revenues.

     As shown in the  accompanying  statement  of  operations,  the  Company has
     incurred net losses of $69,506 in 1996. Unaudited information subsequent to
     December 31, 1996, indicates that losses are continuing. As of December 31,
     1996, the accompanying  balance sheet reflects $14,013 in net stockholders'
     deficit.

     The above conditions indicate that the Company may be unable to continue in
     existence. The financial statements do not include any adjustments relating
     to the recoverability and classification of recorded asset amounts,  or the
     amounts and  classification  of liabilities  that might be necessary should
     the Company be unable to continue in existence.

     Management has secured  additional  funding of $162,000 through issuance of
     notes  payable (see Note 7) and is  currently  negotiating  the  marketing,
     distribution  and  manufacturing of the Company's  patented  treatment with
     potential customers.

9.   Non-Cash Investing and Financing Activities:

     During the year ended December 31, 1996, the Company merged with Ophthalmic
     International,  L.L.C.  and American  Glaucoma.  In this merger the Company
     conditionally  received  inventory  totaling $10,567,  office furniture and
     equipment of $10,300, machinery and equipment of $265 and patents valued at
     $1 in exchange for 15,592,224 shares of common stock.

     During the year ended December 31, 1996, the Company retired 869,977 shares
     of treasury stock booked at a cost of $9,425,  reducing  additional paid in
     capital by the same amount.

                                      F-10
<PAGE>
                            CORONADO INDUSTRIES, INC.
                          (A Development Stage Company)
             (Formerly Logical Computer Services of New York, Ltd.)
                    NOTES TO FINANCIAL STATEMENTS (Continued)

10.     Litigation:

        There has been no  litigation  instituted  by or against the Company for
        the year ended December 31, 1996. However, at least one of the Company's
        former  officers and directors has threatened to sue the Company and its
        current  directors  as a result of  damages  which  have  been  incurred
        because the  Company  has refused to permit the  transfer of his shares.
        The Company has decided to file a lawsuit  against this and other former
        officers,  as well  as  other  stockholders,  on the  basis  that it now
        appears  they may have been issued  Company  shares  without the Company
        receiving  consideration,  as  well  as  other  grounds.  Based  on  the
        representations of the Company's legal counsel, no provision for gain or
        loss has been included in the accompanying  financial statements,  as no
        estimate  can be made as to any  amount to be  ultimately  recovered  or
        lost.



                                      F-11