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

                                   FORM 10-QSB


(MARK ONE)

[X]  QUARTERLY  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934 FOR THE TRANSITION PERIOD FROM ____________TO _______________


COMMISSION FILE NUMBER:


                         LUNA MEDICAL TECHNOLOGIES, INC.
        (Exact name of small business issuer as specified in its charter)

NEVADA                                                           98-0207745
 (State or other        (Primary Standard Industrial         I.R.S. Employer
jurisdiction of          Classification Code Number)         Identification No.)
incorporation
or organization)

201-2001 McCallum Road, Abbotsford, British Columbia, Canada            V2S 3N4
(Address of principal executive offices)                              (Zip Code)

                                  604.807.9948
                (Issuer's Telephone Number, including Area Code)


                              Thomas E. Stepp, Jr.
                              Stepp & Beauchamp LLP
                           1301 Dove Street, Suite 460
                         Newport Beach, California 92660
                             Telephone: 949.660.9700
                             Facsimile: 949.660.9010
            (Name, Address and Telephone Number of Agent for Service)


                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

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

                      APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity,  as of the latest  practical date. As of September 30, 2000,  there were
8,118,338  shares of the  issuer's  $.001  par value  common  stock  issued  and
outstanding.

<PAGE>


                         PART I - FINANCIAL INFORMATION


Item 1.  Financial Statements


                           ACCOUNTANT'S REVIEW REPORT

The Board of Directors
Luna Medical Technologies, Inc.
Vancouver, BC Canada

We have  reviewed the  accompanying  consolidated  balance sheet of Luna Medical
Technologies,  Inc.  as of  September  30, 2000 and the  related  statements  of
operations and comprehensive  income,  stockholders' equity (deficit),  and cash
flows for the six months  ended  September  30, 2000 and 1999.  All  information
included in these financial  statements is the  representation of the management
of Luna Medical Technologies, Inc.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A review  of  interim  financial
information consists principally of applying analytical  procedures to financial
data and making  inquiries of persons  responsible  for financial and accounting
matters.  It is  substantially  less in scope than an audit in  accordance  with
generally accepted auditing standards,  the objective of which is the expression
of an opinion regarding the financial statements taken as a whole.  Accordingly,
we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the  accompanying  financial  statements  in order  for them to be in
conformity with generally accepted accounting principles.

The  financial  statements  for the year ended March 31, 2000 were audited by us
and we expressed an unqualified opinion on it in our report dated July 12, 2000.
We have not performed any auditing procedures since that date.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note 2 to the
financial  statements,  the Company  has an  accumulated  deficit  and  negative
working capital.  These conditions raise  substantial  doubt about the Company's
ability to continue as a going concern.  The success of the Company is dependent
on successfully  marketing its licensed  product.  Management's  plans regarding
those issues are  discussed in Note 2. The  financial  statements do not include
any adjustments that might result from the outcome of this uncertainty.


Williams & Webster, P.S.
Certified Public Accountants
Spokane, Washington
December 18, 2000

<PAGE>


                        LUNA MEDICAL TECHNOLOGIES, INC.
                       (Formerly Luna Technologies, Inc.)
                          CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                                                   September 30,          March 31,
                                                                                                       2000                 2000
                                                                                                    (Unaudited)
                                                                                                    -----------           ---------
<S>                                                                                                  <C>                  <C>
ASSETS
    CURRENT ASSETS
        Cash                                                                                         $   2,395            $  63,403
        Accounts receivable, net of allowance                                                           11,612                  706
        GST receivable                                                                                   7,597               10,476
        Prepaid expenses                                                                                 1,451                9,421
        Inventory                                                                                           --                  223
                                                                                                     ---------            ---------
           Total Current Assets                                                                         23,055               84,229
                                                                                                     ---------            ---------

    PROPERTY, PLANT AND EQUIPMENT
        Office equipment                                                                                 2,543                6,045
        Less depreciation                                                                                 (632)                (504)
                                                                                                     ---------            ---------
           Total Property, Plant and Equipment                                                           1,911                5,541
                                                                                                     ---------            ---------

    OTHER ASSETS
        Licensing agreement                                                                                  1                    1
        Trademark, net of amortization                                                                   2,390                2,500
                                                                                                     ---------            ---------
           Total Other Assets                                                                            2,391                2,501
                                                                                                     ---------            ---------

        TOTAL ASSETS                                                                                 $  27,357            $  92,271
                                                                                                     =========            =========

LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
    CURRENT LIABILITIES
        Accounts payable                                                                             $ 132,840            $  26,307
        Accounts payable - related parties                                                              24,768               59,169
        Accrued expenses                                                                               101,938                3,339
        Short-term loans                                                                                54,991                   --
        Short-term loans - related parties                                                              48,814                2,083
                                                                                                     ---------            ---------
           Total Current Liabilities                                                                   363,351               90,898
                                                                                                     ---------            ---------

    COMMITMENTS AND CONTINGENCIES                                                                           --                   --
                                                                                                     ---------            ---------

        TOTAL LIABILITIES                                                                              363,351               90,898
                                                                                                     ---------            ---------

    STOCKHOLDERS' EQUITY (DEFICIT)
        Preferred stock, 5,000,000 shares authorized, $.001 par value;
           no shares issued and outstanding                                                                 --                   --
        Common stock, 50,000,000 shares authorized, $.001 par value;
           8,155,660 and 8,040,660 shares issued and outstanding,
           respectively                                                                                  8,156                8,041
        Additional paid-in-capital                                                                     464,399              434,459
        Accumulated deficit                                                                           (821,050)            (448,379)
        Accumulated other comprehensive income                                                          12,501                7,252
                                                                                                     ---------            ---------
           Total Stockholders' Equity (Deficit)                                                       (335,994)               1,373
                                                                                                     ---------            ---------

        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                         $  27,357            $  92,271
                                                                                                     =========            =========
</TABLE>


             See accompanying notes and accountant's review report.


                                       2
<PAGE>


                        LUNA MEDICAL TECHNOLOGIES, INC.
                       (Formerly Luna Technologies, Inc.)
        CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE PACKAGE


                                                 Six Months Ended September 30,
                                                 ------------------------------
                                                      2000             1999
                                                   (Unaudited)     (Unaudited)
                                                   -----------     -----------
REVENUE                                            $    36,883     $    49,242

COST OF GOODS SOLD                                      24,676          31,282
                                                   -----------     -----------

GROSS PROFIT                                            12,207          17,960
                                                   -----------     -----------

EXPENSES
      Depreciation and amortization                        502            --
      Consulting                                       228,703          35,277
      Professional fees                                 64,006          52,414
      Marketing expense                                 38,049          46,361
      General and administrative expense                33,979          19,952
      Rent                                              10,396           4,200
      Travel expense                                     4,161           4,201
      Stock issuance costs                               5,260            --
                                                   -----------     -----------
           Total Expenses                              385,056         162,405
                                                   -----------     -----------

LOSS FROM OPERATIONS                                  (372,849)       (144,445)
                                                   -----------     -----------

OTHER INCOME AND EXPENSES
      Gain on disposal of assets                           287            --
      Interest expense                                    (109)           --
                                                   -----------     -----------
           Total Other Income and Expenses                 178            --
                                                   -----------     -----------

LOSS BEFORE INCOME TAXES                              (372,671)       (144,445)

INCOME TAXES                                              --              --
                                                   -----------     -----------

NET LOSS                                              (372,671)       (144,445)

OTHER COMPREHENSIVE INCOME
      Foreign currency translation gain                  5,249            --
                                                   -----------     -----------

COMPREHENSIVE LOSS                                 $  (367,422)    $  (144,445)
                                                   ===========     ===========

      NET LOSS PER COMMON SHARE                    $     (0.05)    $     (0.02)
                                                   ===========     ===========

      WEIGHTED AVERAGE NUMBER OF
           BASIC AND DILUTED COMMON
           STOCK SHARES OUTSTANDING                  8,118,338       7,310,660
                                                   ===========     ===========


             See accompanying notes and accountant's review report.


                                       3
<PAGE>


                        LUNA MEDICAL TECHNOLOGIES, INC.
                       (Formerly Luna Technologies, Inc.)
             CONSOLIDATED STATEMENTS STOCKHOLDERS' EQUITY (DEFICIT)


<TABLE>
<CAPTION>
                                              Common Stock
                                          -------------------   Additional     Stock                                      Total
                                            Number               Paid-In    Subscriptions  Comprehensive  Accumulated  Stockholders'
                                          of Shares    Amount    Capital     Receivable       Income        Deficit       Equity
                                          ---------    ------   ---------   ------------  ------------    -----------  -------------
<S>                                       <C>          <C>       <C>          <C>            <C>          <C>            <C>
Balance, March 31, 1999                   7,310,660     7,311      70,189      (5,000)          --         (29,097)       43,403

Subscription received                          --        --          --         5,000           --            --           5,000

Issuance of common stock for
      cash at $0.50 per share               630,000       630     314,370        --             --            --         315,000

Issuance of common stock in
      exchange for debt at $0.50
      per share                             100,000       100      49,900        --             --            --          50,000

Net loss for year ending
      March 31, 2000                           --        --          --          --            7,252      (419,282)     (412,030)
                                          ---------    ------    --------     -------         ------     ---------     ---------

Balance, March 31, 2000                   8,040,660     8,041     434,459        --            7,252      (448,379)        1,373
                                          ---------    ------    --------     -------         ------     ---------     ---------
Issuance of common stock for
      subscription at $.001 per share        55,000        55        --           (55)          --            --            --

Issuance of common stock for
      cash at $0.50 per share                60,000        60      29,940        --             --            --            --

Subscription received                          --        --          --            55           --            --              55

Foreign currency translation adjustment        --        --          --          --            5,249          --           5,249

Net loss for the six months ended
      September 30, 2000                       --        --          --          --             --        (372,671)     (367,422)
                                          ---------    ------    --------     -------         ------     ---------     ---------
Balance, September 30, 2000
      (Unaudited)                         8,155,660    $8,156    $464,399     $  --          $12,501     $(821,050)    $(365,994)
                                          =========    ======    ========     =======        =======     =========     =========
</TABLE>


             See accompanying notes and accountant's review report.


                                       4
<PAGE>


                        LUNA MEDICAL TECHNOLOGIES, INC.
                       (Formerly Luna Technologies, Inc.)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                               Six Months
                                                           Ended September 30,
                                                        ------------------------
                                                            2000         1999
                                                        (Unaudited)  (Unaudited)
                                                        -----------  -----------
Cash flows from operating activities:
      Net loss                                           $(372,671)   $(144,445)
      Adjustments to reconcile net loss
           to net cash used by operating activities:
           Depreciation and amortization                       502         --
           Non-cash transactions                             3,502         --
           Gain on disposition of assets                      (287)        --
      Changes in assets and liabilities:
           Accounts receivable                             (10,906)     (24,966)
           GST receivable                                    2,879       (4,432)
           Prepaid expenses                                  7,970       22,090
           Inventory                                           223         (713)
           Accounts payable                                 72,132       88,786
           Accrued liabilities                              98,599      (16,453)
                                                         ---------    ---------
Net cash used in operating activities                     (198,057)     (80,133)
                                                         ---------    ---------

Cash flows from investing activities:
      Investment in intangibles                               --           (710)
                                                         ---------    ---------
Net cash used by investing activities                         --           (710)
                                                         ---------    ---------

Cash flows from financing activities:
      Proceeds from sale of common stock                    30,000         --
      Proceeds from stock subscriptions receivable              55        5,000
      Proceeds from short-term loan payable                101,722       67,053
                                                         ---------    ---------
Net cash provided by financing activities                  131,777       72,053
                                                         ---------    ---------

Change in cash                                             (66,280)      (8,790)

      Foreign currency translation gain                      5,272         --

Cash, beginning of period                                   63,403        9,897
                                                         ---------    ---------

Cash, end of period                                      $   2,395    $   1,107
                                                         =========    =========

Supplemental disclosures:
      Interest paid                                      $     109    $   1,203
      Income taxes paid                                  $    --      $    --

Non-cash activities:
      Exchanged office equipment for
           release from payable                          $   3,502    $    --
      Issued stock for subscription receivable           $      55    $    --


             See accompanying notes and accountant's review report.


                                       5
<PAGE>


                         LUNA MEDICAL TECHNOLOGIES, INC.
                       (Formerly Luna Technologies, Inc.)
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2000


NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Luna Medical Technologies,  Inc., formerly Luna Technologies, Inc., (hereinafter
"the Company") was incorporated  January 19, 1999 under the laws of the State of
Nevada  for the  purpose  of  engaging  in any lawful  activity.  The  financial
statements  include all activity of the Company and its wholly owned subsidiary,
Luna  Fertility  Indicator,  Inc.  The  Company has  entered  into an  exclusive
worldwide  license  agreement with Luna Products,  Inc., the manufacturer of the
Luna Fertility  Indicator,  to distribute  the Indicator.  The Company sells its
product across Canada, at retail, wholesale and to distributorships, with 90% of
the  sales  being to  distributors.  Subsequent  to the date of these  financial
statements, the Company changed its focus. See Note 15. The Company maintains an
office in Vancouver, British Columbia. The Company has elected a fiscal year-end
of March 31.

On May 31, 1999, the Company  amended its articles of  incorporation  to reflect
the name change to Luna Medical Technologies, Inc.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant  accounting  policies of Luna Medical  Technologies,
Inc. is presented to assist in understanding the Company's financial statements.
The  financial  statements  and  notes  are  representations  of  the  Company's
management,  which is 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 financial statements.

The  Company was formed on January  19,  1999 and was in the  development  stage
through March 31, 1999.  The year ending March 31, 2000 is the first year during
which it is considered an operating company.

Accounting Method

The Company's  financial  statements  are prepared  using the accrual  method of
accounting.

Consolidation Policy

The accompanying  consolidated  financial statements include the accounts of the
Company and its wholly owned subsidiary. Inter-company transactions and balances
have been eliminated in the consolidation.

Loss Per Share

Basic  loss per share was  computed  by  dividing  the net loss by the  weighted
average number of shares  outstanding  during the period.  The weighted  average
number of shares was calculated by taking the number of shares  outstanding  and
weighting  them by the amount of time that they were  outstanding.  Diluted loss
per share is the same as basic loss per share,  as the inclusion of common stock
equivalents would be anti-dilutive.


                                       6
<PAGE>


                         LUNA MEDICAL TECHNOLOGIES, INC.
                       (Formerly Luna Technologies, Inc.)
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2000


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Provision for Taxes

At September  30, 2000,  the Company had net operating  losses of  approximately
$821,000 that may be offset against  operating income through 2015. No provision
for taxes or tax benefit has been reported in the financial statements, as there
is not a measurable means of assessing future profits or losses.

Use of Estimates

The process of preparing  financial  statements  in  conformity  with  generally
accepted  accounting  principles  requires the use of estimates and  assumptions
regarding certain types of assets,  liabilities,  revenues,  and expenses.  Such
estimates  primarily relate to unsettled  transactions and events as of the date
of the financial statements.  Accordingly,  upon settlement,  actual results may
differ from estimated amounts.

Allowance for Doubtful Accounts

The Company  maintains  an adequate  allowance  for  doubtful  accounts to cover
anticipated  bad debts.  Accounts  receivable are charged  against the allowance
when it is determined by the Company that payment will not be received.

Inventory

Inventory  consists  of the Luna  Fertility  Indicator,  and is  stated at cost,
determined by the first-in  first-out  method.  The Company  maintains a minimal
supply of inventory, as it has a short turnaround time with its supplier.

Advertising

Advertising costs are charged to operations in the year incurred.

Impairment of Long-lived Assets

The Company  evaluates the  recoverability  of long-lived assets when events and
circumstances   indicate  that  such  assets  might  be  impaired.  The  Company
determines  impairment by comparing the undiscounted future cash flows estimated
to be  generated  by these  assets  to their  respective  carrying  amounts.  At
September 30, 2000, no impairment to assets was deemed to have occurred.

Cash and Cash Equivalents

The Company  considers  all highly liquid  investments  with a maturity of three
months or less at the date of acquisition to be cash equivalents.

Revenue Recognition

Revenues and cost of revenues are recognized  when title to the product  passes.
Title  passes  when the product  leaves the  Company's  location  in  Vancouver,
British Columbia.


                                       7
<PAGE>


                         LUNA MEDICAL TECHNOLOGIES, INC.
                       (Formerly Luna Technologies, Inc.)
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2000


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Derivative Instruments

In June 1998,  the  Financial  Accounting  Standards  Board issued  Statement of
Financial  Accounting  Standards  ("SFAS") No. 133,  "Accounting  for Derivative
Instruments and Hedging  Activities." This new standard  establishes  accounting
and reporting standards for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities. It requires
that an entity  recognize all derivatives as either assets or liabilities in the
consolidated balance sheet and measure those instruments at fair value.

At September  30,  2000,  the Company has not engaged in any  transactions  that
would be considered derivative instruments or hedging activities.

Compensated Absences

The Company has no employees.  At such time as the Company hires personnel,  its
employees  will be entitled to paid  vacation,  paid sick days and personal days
off depending on job classification,  length of service,  and other factors. The
Company's  policy will be to recognize  the cost of  compensated  absences  when
actually paid to employees.

Reclassifications

Certain  amounts from prior periods have been  reclassified  to conform with the
current period presentation. This reclassification has resulted in no changes to
the Company's accumulated deficit previously reported.

Translation of Foreign Currency

The Company has adopted Financial  Accounting  Standard No. 52. Foreign currency
translation  resulted in an aggregate  exchange  gain of $12,928 as of September
30,  2000.   The  Company   recorded  this   transaction  in  the  Statement  of
Stockholders' Equity as other comprehensive income.

Interim Financial Statements

The interim  financial  statements as of and for the quarter ended September 30,
2000,  included herein,  have been prepared for the Company without audit. These
statements  reflect all  adjustments,  which are, in the opinion of  management,
necessary to present  fairly the results of operations  for these  periods.  All
such adjustments are normal recurring adjustments. The results of operations for
the  periods  presented  are not  necessarily  indicative  of the  results to be
expected for the full fiscal year.


                                       8
<PAGE>


                         LUNA MEDICAL TECHNOLOGIES, INC.
                       (Formerly Luna Technologies, Inc.)
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2000


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Going Concern

The  accompanying  financial  statements  have been  prepared  assuming that the
Company will continue as a going concern. As shown in the accompanying financial
statements, the Company incurred a net loss of $372,671 and has negative working
capital for the  six-month  period  ended  September  30,  2000.  The Company is
currently  marketing its licensed  product which will, if  successful,  mitigate
these  factors  which raise  substantial  doubt about the  Company's  ability to
continue  as a going  concern.  The  financial  statements  do not  include  any
adjustments  relating  to the  recoverability  and  classification  of  recorded
assets, or the amounts and classification of liabilities that might be necessary
in the event the Company  cannot  continue in existence.  Management  intends to
seek additional capital from new equity issuances that will provide funds needed
to increase  liquidity,  fund internal  growth and fully  implement its business
plan.

Segment Information

The  Company  has  adopted  SFAS No.  131,  "Disclosures  about  Segments  of an
Enterprise and Related  Information," which requires  disclosures about products
and services, geographic areas and major customers. The adoption of SFAS No. 131
did not affect the Company's  results of operations or financial  position,  but
did affect the disclosure of segment information as illustrated in Note 12.

Fair Value of Financial Instruments

The  carrying  amounts for cash,  receivables,  payables,  and accrued  expenses
approximate their fair value.

NOTE 3 - SUBSIDIARIES

Formation of Luna Fertility Indicator, Inc.
On May 10,  1999,  the Company  incorporated  a wholly  owned  subsidiary,  Luna
Fertility  Indicator,  Inc.,  a British  Columbia  Corporation,  to  market  and
distribute the licensed product.

NOTE 4 - CONCENTRATIONS

Credit Risk For Cash Held At Banks

The Company maintains cash accounts at two banks in Vancouver, British Columbia,
Canada.  The Canadian dollar accounts are insured up to a maximum of $60,000 per
account. However, the United States dollar account is not insured.

Supplier

Luna Products,  Inc. ("LPI") is the sole supplier of the Company's product. This
firm is not a related party.


                                       9
<PAGE>


                         LUNA MEDICAL TECHNOLOGIES, INC.
                       (Formerly Luna Technologies, Inc.)
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2000


NOTE 5 - FIXED ASSETS

Office equipment is stated at cost.  Depreciation  expense is computed using the
straight-line method over the useful life of the asset, and amounted to $416 for
the six-month period ended September 30, 2000. Accumulated  depreciation differs
from depreciation expense due to foreign currency translation (Note 2).

NOTE 6 - INTANGIBLE ASSETS

License Agreement

On February 1, 2000,  the Company's  subsidiary  signed a  fifteen-year  license
agreement  with  Luna  Products,  Inc.  (LPI),  providing  the  Company  with an
exclusive  world-wide  right to distribute  the Luna Fertility  Indicator.  This
agreement  replaced all previous  agreements,  and sets the cost, minimum annual
purchase  requirements,  minimum  marketing  expense  requirements  and inventor
royalty  fee of $1 per unit sold of the Luna  Fertility  Indicator.  The license
agreement with LPI was stated at a value of $1.

Trademark

The Company  capitalized  the expenses of acquiring the Luna  trademark and will
amortize the expenses over a fifteen-year period, which represents its estimated
useful  life,  using the  straight-line  method.  Amortization  expense  for the
six-month  period  ended  September  30,  2000  amounted  to  $86.   Accumulated
amortization   differs  from  amortization   expense  due  to  foreign  currency
translation (Note 2).

NOTE 7 - SHORT-TERM LOANS

Short-term  loans - related  parties  consist of the  following at September 30,
2000 and March 31, 2000:

                                                   September 30,    March 31,
                                                       2000            2000
                                                     -------          ------
     Campbell Capital Advisory, Inc. (CCA)           $46,875          $   84
     Javelin Enterprises                               1,939           1,999
                                                     -------          ------
          Total                                      $48,814          $2,083
                                                     =======          ======

The CCA loan payable is unsecured, has no stated maturity and bears no interest.
The Company  intends to pay the balance  when funds become  available.  CCA is a
related company under the control of the Company's president (see Note 10).


                                       10
<PAGE>


                         LUNA MEDICAL TECHNOLOGIES, INC.
                       (Formerly Luna Technologies, Inc.)
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2000


NOTE 7 - SHORT-TERM LOANS (Continued)

The Javelin note  payable is  unsecured,  has no stated  maturity and bears 10 %
interest per annum.  Total interest  accrued during the six-month  period ending
September 30, 2000 amounted to $98.  During  December  1999,  the Company issued
80,000  shares of common  stock as  partial  satisfaction  of the note.  Javelin
Enterprises is a stockholder of the Company (see Note 10).

NOTE 8 - COMMON STOCK

The Company is authorized to issued up to 50,000,000  shares of $0.001 par value
common stock. The voting rights of the common stock is noncumulative.

Upon  incorporation,  7,310,660  shares of common stock were sold,  7,170,000 at
$0.001 per share, and 140,660 at $0.50 per share, under Regulation D, Rule 504.

During the year ended March 31, 2000 the Company issued 630,000 shares of common
stock for cash at $0.50 per share.  The Company  also issued  100,000  shares of
common stock in settlement of outstanding debt at $0.50 per share.

During the six months ended September 30, 2000, the Company issued 55,000 shares
at $.001  per  share  for a  subscription  receivable.  The  Company  issued  an
additional 60,000 shares of common stock at a cash price of $0.50 per share.

During the quarter  ended June 30,  2000,  the Company  reached an  agreement to
issue  200,000  shares of stock in  payment  of  consulting  fees  amounting  to
$100,000.  These fees are  currently  recorded in the  financial  statements  as
accrued  expenses.  The  Company  plans  to issue  these  shares  subsequent  to
September 30, 2000.

NOTE 9 - WARRANTS AND OPTIONS

The Company  issued one warrant with each share of common stock  subscribed  for
during a  subscription  period in autumn of 1999.  The warrants have an exercise
price of $1.00 per share and expire  December 1, 2000. As of September 30, 2000,
no  warrants  had been  exercised  and there are  410,000  warrants  issued  and
outstanding.

The Company  does not have a formal  stock  option  plan.  However,  the Company
issued  options to two  consultants  during the year ended March 31,  2000.  The
options  had no value due to the fact that the  exercise  price was in excess of
the fair market value at the grant date. On May 8, 2000,  the Company  cancelled
this agreement  with required 30 day notice,  and the  consultants  relinquished
their claim to these options.


                                       11
<PAGE>


                         LUNA MEDICAL TECHNOLOGIES, INC.
                       (Formerly Luna Technologies, Inc.)
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2000


NOTE 10 - PREFERRED STOCK

The Company is authorized  to issue up to  50,000,000  share of $0.001 par value
preferred stock. The stock does not carry any pre-emptive or preferential rights
to subscribe to any unissued stock or any other securities which the Company may
be authorized to issued and does not carry voting rights.

No shares of preferred stock were issued as of September 30, 2000.

NOTE 11 - RELATED PARTIES

The former  president  and chief  executive  officer of the  Company,  Gordon C.
McDougall,  is also the president and stockholder of Campbell Capital  Advisory,
Inc. (CCA),  which had advanced funds to the Company to begin  operations and to
retain the services of an attorney.  As of September 30, 2000,  the Company owes
CCA $46,875.  In addition,  CCA provides management services for a quarterly fee
of $15,000 plus $12,000 for reimbursed expenses.  For the six-month period ended
September 30, 2000, the Company  incurred a total of $38,049 in management  fees
and  $4,161  in  reimbursed  expenses.  As of  September  30,  2000  there is an
outstanding accounts payable of $22,002 to CCA.

The Company  executed a  promissory  note in favor of a  stockholder,  for funds
loaned to the Company.  As partial  satisfaction  of the note,  80,000 shares of
common stock were issued. As of March 31, 2000, the balance owing on the note is
$1,960, plus interest of $2,107.

NOTE 12 - COMMITMENTS AND CONTINGENCIES

Foreign Operations
The accompanying balance sheet includes $27,357 relating to the Company's assets
in Canada.  Although this country is  considered  politically  and  economically
stable,  it is always possible that  unanticipated  events in foreign  countries
could disrupt the Company's operations.

Rent

The Company rents office space on a month-to-month basis.

License Agreement

There is a royalty  agreement in effect with Luna Products,  Inc. This agreement
calls for the payment of $1 per unit sold of the Luna Fertility  Indicator.  See
Note 6.

Management Service Agreement

The Company's  subsidiary signed a two-year  agreement for management  services.
The  agreement  expires  August  31,  2001 at which  time it may  continue  on a
year-to-year  basis for ten years. The agreement  requires a base monthly fee of
$5,000 CND, plus a 5 % bonus of the Company's subsidiary's operating profits.


                                       12
<PAGE>


                         LUNA MEDICAL TECHNOLOGIES, INC.
                       (Formerly Luna Technologies, Inc.)
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2000


NOTE 13 - SEGMENT INFORMATION

As  described  in Note 2, the  Company  adopted  SFAS No. 131 in its fiscal year
2000.  The Company's  operations  are  classified  into two principal  reporting
segments that provide  different  products or services.  Separate  management of
each  section is required  because  each  business  unit is subject to different
marketing, and production strategies.

The table below presents information about the Company's reportable segments:

<TABLE>
<CAPTION>
                                                   Six-months ended September 30, 2000
                                       ----------------------------------------------------------
                                         Luna Medical         Luna Fertility
                                       Technologies, Inc.     Indicator, Inc.       Consolidated
                                       ------------------     ---------------     ---------------
<S>                                     <C>                   <C>                 <C>
     External Revenue                   $          --         $        36,883     $        36,883
     Operating loss                     $       324,385       $        48,286     $       372,671
     Interest income                    $          --         $          --       $          --
     Depreciation and amortization      $           416       $            86     $           502
     Interest expense                   $           109       $          --       $           109
     Total assets                       $        13,092       $        14,265     $        27,357
</TABLE>

The first segment, Luna Medical Technologies,  Inc. is a holding company for the
second segment and does not rely on direct  revenues.  The second segment,  Luna
Fertility  Indicator,  Inc.,  an operating  company,  derives  revenues from the
marketing and distribution of the licensed product.

The accounting  policies for the two  reportable  segments are the same as those
described  in the  summary  of  significant  accounting  policies.  The  Company
allocates resources to its operating segment, and evaluates  performance of this
segment based on operating income.

NOTE 14 - YEAR 2000 ISSUES

Like  other  companies,  Luna  Medical  Technologies,  Inc.  could be  adversely
affected if the computer systems it, or its suppliers or customers,  uses do not
properly process and calculate date-related information and data from the period
surrounding  and including  January 1, 2000. This is commonly known as the "Year
2000"  issue.  Additionally,  this issue could impact  non-computer  systems and
devices such as production equipment,  elevators, etc. The costs related to Year
2000 compliance are expensed as incurred. At this time, there have been no known
effects to the Company in regards to the Year 2000 issue.


                                       13
<PAGE>


                         LUNA MEDICAL TECHNOLOGIES, INC.
                       (Formerly Luna Technologies, Inc.)
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2000


NOTE 15 - SUBSEQUENT EVENTS

The Company has signed and  completed  the  agreement  to acquire all issued and
outstanding  shares  of  Menathen   Services,   Inc.o/a  Women's  Health  Center
subsequent  to the date of these  financial  statements.  Under  the  terms  and
conditions of the acquisition, two officers of the Company will each be entitled
to  200,000  shares of the  Company's  common  stock and will also be allowed to
acquire and  additional  100,000  shares of the Company's  common stock for each
Woman's Health Center opened.

In October  2000,  Stuart  McNeill  resigned as president of the Company and Dr.
James Swanney  accepted the position.  The focus of the business changed at this
time,  and will now  concentrate on the  development of women's health  centers.
After  December 1, 2000,  the Company  will no longer  receive any revenue  from
sales of the Luna Fertility Indicator.


                                       14
<PAGE>


Item 2.  Management's Discussion and Analysis or Plan of Operation

Business of the Company. Luna Medical Technologies,  Inc., a Nevada corporation,
formerly named Luna Technologies,  Inc., was incorporated in the State of Nevada
on January 19, 1999. In May, 1999, the Company  changed its name to Luna Medical
Technologies,  Inc. Our executive  offices have been relocated,  effective on or
about October 16, 2000, to 201-2001 McCallum Road, Abbotsford,  British Columbia
V2S 3N4, and our telephone number has been changed,  effective on the same date,
to 604.807.9948.

On or about May 11, 1999, we  incorporated a wholly-owned  subsidiary in British
Columbia named Luna Fertility Indicator,  Inc., which was intended to market and
distribute the Luna  Fertility  Indicator,  a home  fertility  test. On or about
December 1, 2000, we sold all of our the rights to the Luna Fertility  Indicator
to Melissa Gervais, Inc., who was originally going to provide in-house marketing
and public  relations  services to us to promote  and market the Luna  Fertility
Indicator.

We have had  significant  changes in our  management  and our business plan. Our
management  has been  entirely  replaced  during  this  fiscal  quarter.  Gordon
McDougall resigned as a member of our board of directors effective September 20,
2000.  Stuart  McNeill was our president and a director from September 12, 2000,
to November 6, 2000.  Dr. James  Swanney  became our president and a director on
October 17, 2000. Elizabeth Findlay became a director on October 17, 2000.

Earlier this year, on or about May 9, 2000, we accepted the  resignation of Brad
Desaulniers  as our  president  and chief  operating  officer and as a director.
Gordon McDougall was appointed to replace Mr. Desaulniers as president,  and was
our  sole  director  until  the  appointment  of  Mr.  McNeill.  These  repeated
management  turnovers  have  resulted in the  company's  focus and business plan
shifting several times in the past fiscal year. New management believes that our
new business plan,  which will  concentrate on the development of Women's Health
Centers,  will  enable  us to  provide  professional,  multi-service  facilities
specializing in women's health issues.

We believe our new management has the medical background and business experience
we need to effectuate  our new business  plan.  Dr.  Swanney  received a medical
degree from Glasgow Scotland in 1969 and was an industrial  medical director for
Rolls  Royce in 1971  prior to joining  Placer  Development  in 1973.  He joined
Pfizer  Canada  in  1979  and  acquired  experience  in the  pharmaceutical  and
corporate medical industry.  He left Pfizer Canada to return to British Columbia
and set up a private medical practice. Dr. Swanney was a founding partner of the
Family Medicine Research Centre, conducting medical research for both government
and private industry.  He has developed drug and alcohol treatment  programs and
served as prsident of MSA General Hospital overseeing a large medical staff.

Elizabeth  A.  Findlay  holds a Masters  Degree in  Education  and a Bachelor of
Nursing  Science.  She has  significant  experience  as a nurse and with women's
health issues and services.

We acquired Menathen Services in October, 2000. On or about October 10, 2000, we
entered into an agreement  to acquire all of the issued and  outstanding  common
stock of Menathen Services,  Inc., a British Columbia corporation doing business
as Women's Health  Center.  Our business plan  contemplates  opening a string of
these health centers,  which will provide medical facilities geared specifically
toward women's health issues.

We have signed a letter of intent to acquire  Willow  Medical  Systems,  Inc. On
September  8,  2000,  we signed a letter of intent  to  acquire  Willow  Medical
Systems, Inc., a Vancouver-based  British Columbia corporation which has created
an Internet  practice and medical  records  system.  This system allows  medical
professionals  access  to  patient  records,   on-line  subscriptions,   medical
information,   referrals,   dictionairies,   research  databases,   billing  and
accounting  systems,  scheduling  software,  Internet bulk supply purchasing and
other practice  management tools. It also allows patients to fill prescriptions,
schedule medical  appointments and receive medical  information and test results
on-line.

Although the concept of electronic transmission of and access to medical records
over  the  Internet  is  not  new,  many  medical  professionals   resisted  the
implementation  of this type of technology due to the high costs of hardware and
software,  and concerns over patient privacy and the  confidentiality of medical
records.  Now that most  medical  practices  already have  computer  systems for
billing and scheduling,  and reliable software and systems exist to maintain the
confidentiality of medical files, applications for medical software are now more
readily accepted by the medical profession.


                                       15
<PAGE>


Liquidity.  The Company has been in the development stage since January 19, 1999
(inception). We incurred a net loss of $372,671 and has negative working capital
for the six-month period ended September 30, 2000. This has raised concerns that
we may not be able to continue to operate.

Our cash has  decreased  from $63,403 at March 31, 2000,  to $2,395 at September
30, 2000.  Our  inventory has also  declined  from  inventory  valued at $223 to
inventory  valued at $0 at September  30, 2000.  Our  accounts  receivable  have
increased from $706 at March 31, 2000, to $11,612 at September 30, 2000.  During
the same six month period,  our accounts  payable have increased from $26,307 to
$132,840. We have taken out short term loans from related parties, specifically,
during the  six-month  period ended  September 30, 2000 we increased our debt to
Campbell Capital Advisory, Inc., which is controlled by our former president and
director,  Gordon McDougall,  from $84 to $46,875.  We also carried a short term
loan for $1,939 at  September  30,  2000 from one of our  shareholders,  Javelin
Enterprises.  Both of these loans are unsecured and have no stated maturity. The
loan from Campbell Capital Advisory, Inc. bears no interest, while the loan from
Javelin Enterprises bears interest at 10% per annum.

Results of Operations. For the six-month period ended September 30, 1999, we had
$49,242 in revenue from sales of the Fertility  Indicator,  with $31,282 in cost
of goods  sold.  During the same  period in the year 2000,  we had  revenues  of
$36,883,  with $24,676 in cost of goods sold. Our gross profit for the six-month
period ended  September 30, 1999 was $17,960,  as compared to a gross profit for
the six-month period ended September 30, 2000 of $12,207. Our expenses increased
significantly  in 2000 as  compared  to 1999.  For the  six-month  period  ended
September  30,  1999 we paid a total of $35,277  in  consulting  fees;  however,
during  the same  six-month  period  in 2000,  we paid a total  of  $228,703  in
consulting  fees. Our professional  fees incurred  increased from $52,414 in the
six-month  period ended  September 30, 1999 to $64,006 during the same period in
2000.  Our general and  administrative  expenses  increased from $19,952 for the
six-month  period ended  September 30, 1999 to $33,979 during the same period in
2000.  Our rent also  increased  from  $4,200  for the  six-month  period  ended
September 30, 1999 to $10,396 during the same period in 2000.

At  September  30,  2000,  we had  total  current  liabilities  of  $363,351,  a
significant  increase from the $90,898 in  liabilities at September 30, 1999. At
September  30,  2000,  we had total  assets of  $27,357,  down from  $92,271  at
September 30, 1999.

Currently,  our only source of liquidity is the sale of our common stock.  After
December  1,  2000,  we will no longer  receive  any  revenue  from sales of the
Fertility  Indicator.  We will require additional capital to fund our operations
and develop our women's health centers over the next 12 months.  Such additional
capital may be received from private or public financings, as well as borrowings
and other  resources.  If adequate cash is not available,  we may be required to
curtail  our  operations  significantly  or to  obtain  funds by  entering  into
arrangements  with  collaborative  partners  or others  that may  require  us to
relinquish  rights that we would not otherwise  relinquish.  No assurance can be
given,  however,  that we will have access to additional cash in the future,  or
that  funds  will  be  available  on  acceptable   terms  to  satisfy  the  cash
requirements of our company.

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

None

Item 2.  Change in Securities

During the year ended March 31,  2000,  we issued  630,000  shares of our common
stock for cash at $0.50 per share.  We also issued  100,000 shares of our common
stock in settlement of outstanding debt; this stock was also valued at $0.50 per
share.

During the six months ended  September  30, 2000, we issued 55,000 shares of our
common stock at par value,  $.001 per share, for a subscription  receivable.  We
also issued an  additional  60,000  shares of our common stock for cash at $0.50
per share.


                                       16
<PAGE>


On October 16,  2000,  we entered  into  employment  agreements  with Dr.  James
Swanney and Elizabeth Findlay which provided,  among other things, that we would
issued  500,000  shares of our common stock to Dr. Swanney and 200,000 shares of
our common stock to  Elizabeth  Findlay as  incentive  compensation.  We filed a
Registration Statement on Form S-8 with the SEC on November 20, 2000 to register
Dr. Swanney's shares.

On October 16, 2000,  we entered into a consulting  agreement  with Cameron King
which  provided  that we would  issue  100,000  shares  of our  common  stock as
compensation for consulting services.

Item 3.  Defaults Upon Senior Securities

None

Item 4.  Submission of Matters to Vote of Security Holders

None

Item 5.  Other Information

None

Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits Required by Item 601 of Regulation S-B:

2.   Plan of Acquisition - Acquisition Agreement with Menathen Services, Inc.
3.   Articles  of  Incorporation  and Bylaws - filed as  exhibits  to Form 10-SB
     filed  with  the SEC on March  17,  2000 and  incorporated  herein  by this
     reference
4.   Instruments  defining the rights of holders - not  applicable
10.  Material contracts
        10.1  Employment  agreement  with Dr.  James  Swann  filed as exhibit to
Registration  Statement  on Form S-8 filed with the SEC on November 20, 2000 and
incorporated herein by this reference
        10.2 Employment  agreement with Dr. Elizabeth Findlay
        10.3 Consulting  Agreement with Cameron King
11.  Statement re:  computation of per share earnings are included in Note 2 to
financial  statements
15.  Letter on unaudited interim financial information  is included in financial
statements
18.  Letter on change in accounting  principles - not applicable
19.  Reports  furnished to security holders - none
22.  Published report regarding matters submitted to vote - not applicable
24.  Power of attorney - not applicable
27.  Financial data schedule

(b) Reports on Form 8-K. On September  21,  2000,  we filed a report on Form 8-K
with the Commission  announcing  that we had accepted the  resignation of Gordon
McDougall as our president  effective  September 7, 2000 and that Mr.  McDougall
remained as a director.  We also announced that we had approved the  appointment
of Stuart McNeill as our president  effective  September 7, 2000 and that we had
approved the appointment of Mr. McNeill as a director on September 11, 2000.

On  November  13,  2000,  we  filed a report  on Form  8-K  with the  Commission
announcing that, effective October 16, 2000, our board of directors accepted the
resignation  of Stuart  McNeill as president  and the  appointment  of Dr. James
Swanney as president and a director.  That report on Form 8-K also reported that
Elizabeth A. Findlay had been appointed as a director effective October 16, 2000
and that on September  20,  2000,  we had  accepted  the  resignation  of Gordon
McDougall as a director.


                                       17
<PAGE>


                                   SIGNATURES

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

Dated:   December 20, 2000              LUNA MEDICAL TECHNOLOGIES, INC.


                                        By:      /s/ Dr. James Swanney
                                                 --------------------------
                                                 Dr. James Swanney
                                        Its:     President and Chief
                                                   Financial Officer


                                       18