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 DECEMBER 31, 1999

[ ]  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 jurisdiction       (Primary Standard           (I.R.S. Employer
    of incorporation or         Industrial Classification    Identification No.)
      organization)                  Code Number)

  Suite 400, 900 West Hastings Street,
  Vancouver, British Columbia, Canada                                V6C 1E5
(Address of principal executive offices)                           (Zip Code)

                                 (604) 687-0719
                (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 December 31, 1999,  there were
7,720,660  shares of the  issuer's  $.001  par value  common  stock  issued  and
outstanding.

<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

LUNA MEDICAL TECHNOLOGIES, INC.
Consolidated Balance Sheet
(Unaudited - Prepared by Management)
December 31, 1999

<TABLE>
<CAPTION>
                  ASSETS                                            December 31     March 31
                                                                           1999         1999
CURRENT ASSETS
<S>                                                                   <C>          <C>
      Cash                                                            $  69,680    $   9,897
      Accounts receivable                                                18,570        1,091
      Loan receivable                                                    40,000       40,000
      Goods and Services Tax recoverable                                  5,196          920
      Inventory                                                           3,500        1,012
      Prepaid marketing expense                                          21,429       16,453
      Prepaid expenses                                                       --        5,637
                                                                      ----------------------
                                                                        158,375       75,010
                                                                      ---------    ---------

OTHER ASSETS
      Marketing licence                                                       1            1
      Trademark                                                           2,552           --
                                                                      ----------------------
                                                                          2,553            1
                                                                      ----------------------
                                                                      $ 160,928    $  75,011
                                                                      =========    =========

                  LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
      Accounts payable and accrued liabilities                        $  80,720    $  10,686
      Accrued marketing costs                                                --       16,453
      Investor deposits                                                  30,000           --
      Short term loans payable                                           18,054        4,469
                                                                      ----------------------
                                                                        128,774       31,608
                                                                      ---------    ---------

STOCKHOLDERS' EQUITY
      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
            7,720,660 shares issued and outstanding                       7,721        7,311
      Additional paid-in capital                                        274,779       70,189
      Stock subscriptions receivable                                         --       (5,000)
      Deficit                                                          (250,346)     (29,097)
                                                                      ---------    ---------
                                                                         32,154       43,403
                                                                      ---------    ---------
                                                                      $ 160,928    $  75,011
                                                                      =========    =========
</TABLE>

The accompanying Notes to Consolidated Financial Statements are an integral part
of this statement.


                                       2
<PAGE>

LUNA MEDICAL TECHNOLOGIES, INC.
Consolidated Statement of Loss
(Unaudited - Prepared by Management)
For the nine month period ended December 31, 1999

SALES                                                               $   103,401

COST OF SALES                                                            68,524
                                                                    -----------

GROSS PROFIT                                                             34,877
                                                                    -----------

EXPENSES
      Audit and accounting                                               11,977
      Bank charges and interest                                           5,599
      Consulting                                                         66,775
      Legal                                                              31,180
      Management fees                                                    45,000
      Marketing                                                          59,468
      Office and telephone                                               23,217
      Rent                                                                4,200
      Transfer agent                                                      4,466
      Travel                                                              4,244
                                                                    -----------
                                                                        256,126
                                                                    -----------
NET LOSS                                                            $  (221,249)
                                                                    ===========

NET LOSS PER COMMON SHARE                                           $     (0.03)
                                                                    ===========

WEIGHTED AVERAGE NUMBER OF
      COMMON STOCK SHARES OUTSTANDING                                 7,356,215
                                                                    ===========

The accompanying Notes to Consolidated Financial Statements are an integral part
of this statement.


                                       3
<PAGE>

LUNA MEDICAL TECHNOLOGIES, INC.
Consolidated Statement of Stockholders' Equity
(Unaudited - Prepared by Management)
For the nine month period ended December 31, 1999

COMMON STOCK
         Balance, beginning of period                                 $   7,311
         Sale of common stock at $0.50 per share                            410
                                                                      ---------
         Balance, end of period                                           7,721
                                                                      ---------
ADDITIONAL PAID-IN CAPITAL
         Balance, beginning of period                                    70,189
         Sale of common stock at $0.50 per share                        204,590
                                                                      ---------
         Balance, end of period                                         274,779
                                                                      ---------
DEFICIT
         Balance, beginning of period                                   (29,097)
      Net loss                                                         (221,249)
                                                                      ---------
      Balance, end of period                                           (250,346)
                                                                      ---------
TOTAL STOCKHOLDERS' EQUITY                                            $  32,154
                                                                      =========

The accompanying Notes to Consolidated Financial Statements are an integral part
of this statement.


                                       4
<PAGE>

LUNA MEDICAL TECHNOLOGIES, INC.
Consolidated Statement of Cash Flows
(Unaudited - Prepared by Management)
For the nine month period ended December 31, 1999

CASH FLOWS FROM OPERATING ACTIVITIES
         Net loss                                                     $(221,249)
         Changes in non-cash working capital
                  Accounts receivable                                   (17,479)
                  Goods and Services Tax recoverable                     (4,276)
                  Inventory                                              (2,488)
                  Prepaid marketing expense                              (4,976)
                  Prepaid expenses                                        5,637
                  Accounts payable and accrued liabilities               70,034
                  Accrued marketing costs                               (16,453)
                                                                      ---------
                                                                       (191,250)
                                                                      ---------
CASH FLOWS FROM INVESTING ACTIVITIES
         Trademark registration costs                                    (2,552)
                                                                      ---------

CASH FLOWS FROM FINANCING ACTIVITIES
      Investor deposits                                                  30,000
      Proceeds from short term loans payable                             13,585
      Proceeds from sale of common stock                                205,000
      Receipt of stock subscriptions receivable                           5,000
                                                                      ---------
                                                                        253,585
                                                                      ---------

CHANGE IN CASH                                                           59,783

CASH, beginning of period                                                 9,897
                                                                      ---------

CASH, end of period                                                   $  69,680
                                                                      =========

Supplemental disclosures:
      Interest paid                                                   $   3,533
      Income taxes paid                                               $      --

The accompanying Notes to Consolidated Financial Statements are an integral part
of this statement.


                                       5
<PAGE>

LUNA MEDICAL TECHNOLOGIES, INC.
Notes to Consolidated Financial Statements
(Unaudited - Prepared by Management)
December 31, 1999

1.   ORGANIZATION AND DESCRIPTION OF BUSINESS

     Luna Medical Technologies, Inc. and its wholly-owned subsidiary, Luna
     Fertility Indicator, Inc. were incorporated, respectively, January 19, 1999
     under the laws of the State of Nevada and May 11, 1999 under the laws of
     the Province of British Columbia, Canada for the purpose of engaging in any
     lawful activity. The company has entered into an exclusive worldwide
     licence agreement with Luna Products Inc. to distribute the Luna Fertility
     Indicator, and is in the process of developing and implementing marketing
     plans for the products acquired. The company and its subsidiary maintain
     offices in Vancouver, British Columbia, Canada.

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

2.   INVESTOR DEPOSITS

     Investor deposits represent amounts received from potential investors
     before the common stock offer had closed and the subscriptions had been
     accepted. Subsequent to the period end the stock offering closed and 60,000
     shares were issued at a price of $0.50 per share.

3.   SHORT TERM LOANS PAYABLE

     Short term loans payable consist of the following:

     Loan payable to Campbell Capital Advisory, Inc. - an      $ 6,415  $ 4,469
           unsecured loan bearing no interest and with no
           fixed terms of repayment. Campbell Capital
           Advisory, Inc. is a private corporation controlled
           by the President of the company
     Loan payable to Javelin Enterprises - an unsecured          1,939       --
           loan bearing interest at 10% per annum
           Repayable without notice or penalty. Due
           June 2, 2000
     Loan payable to Phoenix Titanium Recovery Corp. -           9,700       --
           an unsecured loan bearing interest at 10% per
           annum.  Repayable without notice or penalty
           Due September 24, 2000
                                                               -------  -------
     Total                                                     $18,054  $ 4,469
                                                               =======  =======


                                       6
<PAGE>

LUNA MEDICAL TECHNOLOGIES, INC.
Notes to Consolidated Financial Statements
(Unaudited - Prepared by Management)
December 31, 1999

4.   STOCK PURCHASE WARRANTS

     The company has issued warrants that entitle the holders to purchase up to
     410,000 shares of the capital stock of the company at a price of $1.00 per
     such share at any time prior to December 1, 2000.

5.   RELATED PARTY TRANSACTIONS

     During the period, the company entered into transactions with related
     parties as follows:

     Management fees paid to a company of the President            $67,500
     Marketing expenses reimbursed to a company of the President    33,750
     Office expenses reimbursed to a company of the President       17,550

6.   COMMITMENTS AND CONTINGENCIES

     Licensing Agreement

     On January 31, 1999, the company entered into a licensing agreement with
     Luna Products Inc. (LPI). This arrangement is recorded as a loan receivable
     of US$40,000 and a marketing licence of US$1. The agreement calls for the
     loan to be paid by a CDN$1 fee per unit for the first 30,000 units sold,
     and then a CDN$0.50 fee per unit sold in perpetuity. The loan does not have
     a stated rate of interest. Furthermore, the licensing agreement calls for
     continuing royalties of 5% of Luna Medical Technologies' gross sales to
     Luna Products Inc. and CDN$1 to Jim Emmerson, a director of LPI, for each
     unit sold in perpetuity. Each of these royalties will be paid one month in
     arrears. On May 6, 1999, the company and LPI agreed to certain
     modifications to the licence agreement as to certain pricing and purchasing
     structures, and the company agreed to incur marketing expenses totalling
     not less than CDN$250,000 by May 31, 2000.

     Marketing and Management Agreement

     The company's wholly-owned subsidiary, Luna Fertility Indicator, Inc. (the
     "subsidiary") has entered into an agreement with Melissa Gervais, Inc.
     ("Gervais") whereby the subsidiary has engaged Gervais to provide marketing
     and management services for a period of 10 years for a fee of CDN$5,000 per
     month, premises rental of CDN$600 per month and an option to purchase a
     7.2% interest in the subsidiary for a nominal price. Should the
     subsidiary's net revenue (as defined by the agreement) exceed CDN$7,500 per
     month for four consecutive months, the monthly fee shall increase to
     CDN$6,250. Furthermore, the subsidiary will pay Gervais a performance bonus
     of 5% of net operating profits of the subsidiary.

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

Business of the Registrant. Medical Technologies, Inc., a Nevada corporation
("Registrant"), formerly entitled Luna Technologies, Inc., was incorporated in
the State of Nevada on January 19, 1999. On or about May 31, 1999, the
Registrant changed its name to Luna Medical Technologies, Inc. The executive
offices of the Registrant are located at Suite 400, 900 West Hastings Street,
Vancouver, British Columbia, Canada V6C IE5. The Registrant's telephone number
is 604.687.0719.

On or about January 31, 1999, the Registrant entered into an exclusive worldwide
license agreement ("Agreement") with Luna Products, Inc., a Canadian corporation
("LPI"), to distribute the Luna Fertility Indicator ("Indicator"), a


                                       7
<PAGE>

lightweight, re-usable home fertility test. As a point of clarification, as used
in this Quarterly Report on Form 10-QSB the term "US$" means and refers to the
currency of the United States of America, unless otherwise stated. As used in
this Quarterly Report on Form 10-QSB the term "CDN$" means the currency of
Canada, in Canadian Dollars, unless otherwise stated. The Agreement also grants
the Registrant the right to distribute fertility charts with every purchase of
the Indicator (described in more detail below). The license granted under the
Agreement expires upon repayment of the Loan. However, the Registrant and LPI
have orally agreed that the relationship between the Registrant and LPI will
continue beyond the term of the License. Except for their relationship regarding
the Indicator, the Registrant and LPI have no other affiliation.

The Indicator is a simple to use device whereby a woman can track her stages of
fertility. The Indicator takes up slightly more space than a lipstick and can be
used any private place with access to natural or clear light. A woman simply
places a sample of her saliva on the clean slide, allows the saliva to dry, then
holds the slide up to a 40-watt or greater light source and looks at the saliva
pattern through the eyepiece. The woman then compares her saliva patterns
indicated in the book of charts provided free of charge with the Indicator.
Comparing the saliva patterns will indicate her state of fertility. The charts
are easy to use, consisting mainly of the woman noting on the chart whether she
is fertile or infertile based on the saliva patterns, thus providing a quick and
easy reference indicating her monthly fertility cycle. If the woman is in the
biologically active, fertile phase, her saliva will crystallize and fibrous
"fern-type" patterns will be clearly viewed in the small Indicator in-home small
microscope. Then she can rinse off the slide and put it away until the next use.
The Registrant anticipates that the Indicator will be used as a guide to
determine the different phases of the fertility cycle and as an aid to encourage
conception. The Registrant does not intend for this device to be used or
considered as a contraceptive or method of birth control.

The Registrant's Subsidiary. On or about May 11, 1999, the Registrant caused to
be incorporated, in British Columbia, Luna Fertility Indicator, Inc. Luna
Fertility Indicator, Inc., is currently a wholly-owned subsidiary of the
Registrant. The Registrant anticipates that the primary business of Luna
Fertility Indicator, Inc., will be marketing and distributing the Indicator.

Marketing and Sales Strategy. The Registrant's subsidiary, Luna Fertility
Indicator, Inc., has entered into a management services contract with Melissa
Gervais, Inc. ("Gervais, Inc.") (more particularly described in Note 6 of the
financial statements included within Item 1 of this Form 10-QSB). For an initial
term of 10 years, Gervais, Inc. will provide in-house marketing and public
relations services and will co-ordinate an advertising campaign in targeted
media such as medical journals, women's magazines, religious publications and
other selected media. The Registrant will attempt to market the Indicator in
major chain drug stores using selected regional distributors.

The Registrant has agreed in principal on a distribution contract with Bathurst
Sales ("Bathurst") of Downsview, Ontario, Canada's leading distributor of
cosmetics and personal care products, whose customers include London Drugs,
Shoppers Drug Mart, Pharma Plus Drugmarts, Lawton's Drug Stores and Uniprix.
Bathurst distributes products such as Revlon, John Frieda, Elizabeth Arden,
Rubbermaid, AM Cosmetics and Vogue International, and its current clients are
those that the Registrant desires will market and promote the Indicator.
Bathurst will be informed of the dates of the Registrant's advertising programs
to co-ordinate any co-operative advertising plans that its clients may have for
the period. Bathurst has orally agreed to distribute the Indicator and
negotiations are ongoing to reduce the terms, conditions and covenants to
writing. The Registrant anticipates that the written agreement between the
Registrant and Bathurst will provide for the shipment, FOB Vancouver, on a
CDN$22.00 per unit basis.

The Registrant is in the process of developing new and attractive ways to market
the Indicator. During the last several months, the Registrant has designed new
packaging and marketing materials which the Registrant believes will enhance the
appeal of the Indicator. The Indicator is now being represented in Canada by two
distributors. The first distributor, Bathurst, sells various products to
traditional drug stores. The second distributor, Inno-Vite, sells various
products to health food stores such as Caper's, Vitamin House, Choices,
Nutrition House, GNC and Noah's Natural Foods. The Registrant continues to
negotiate with the companies interested in the Registrant's Indicator in other
markets throughout the world. The Registrant anticipates that distribution
arrangements will be finalized within six (6) months of securing the necessary
governmental approvals in those foreign markets.


                                       8
<PAGE>

The Registrant has commenced sales of the Indicator in Canada. The Registrant
has focused its initial sales efforts in Canada because it has received
government approval to distribute the Indicator. The Registrant anticipates that
it will initiate a mail order campaign and advertising in selected publications.
The Registrant has begun discussing with potential distributors in Taiwan, South
Africa and Turkey the potential foreign markets for the Indicator. The
Registrant hopes to expand marketing and distribution into Spain, Turkey and the
United States. However, since all discussions with such distributors are merely
preliminary, the Registrant cannot predict when, or even if, it will penetrate
such markets. The Registrant also anticipates providing distributors with
rebates for co-operative advertising and freight and discount allowances. At
this time, the Registrant's only business is the marketing and distribution of
the Indicator. The Registrant is generating revenue from the sale of the
Indicator in Canada (more particularly described in Item 2 of this Amendment No.
1 to the Registrant's Registration Statement on Form 10-SB). The Registrant has
a very limited operating history and has not realized significant revenues from
its operations.

The Indicator will be targeted toward: (i) chain drug stores and pharmacy
retailers, (ii) distributors selling to health food chains, and (iii) natural or
homeopathic medical clinics.

Liquidity. The Registrant has been in the development stage since January 19,
1999 (inception). As of December 31, 1999, the Registrant has realized
US$103,401 in revenues from sales of the Indicator. The cost of those sales
amounted to US$68,524, resulting in a gross profit of US$34,877. The
Consolidated Statement of Loss for the nine-month period ended December 31, 1999
indicates a net loss of US$221,126. At December 31, 1999, the Registrant had
current assets of US$158,375. The majority of which is represented by US$69,680
in cash; US$40,000 in a loan receivable; US$21,429 in prepaid marketing
expenses; and US$18,570 in accounts receivable. At December 31, 1999, the
Registrant had current liabilities of US$128,774. At December 31, 1999, current
assets exceeded current liabilities by US$29,601. The Registrant is not aware of
any trends, demands, commitments or uncertainties that will result in the
Registrant's liquidity decreasing or increasing in a material way. The
Registrant does currently hold short-term notes payable in the amount of
US$18,054, however, those notes are unsecured. The US$6,415 loan payable to
Campbell Capital Advisory, Inc., a private Canadian corporation controlled by
the Registrant's President, Gordon McDougall, bears no interest and has no fixed
repayment terms. The US$1,939 loan payable to Javelin Enterprises and the
US$9,700 loan payable to Phoenix Titanium Recovery Corp. bear interest at 10%
per annum and are repayable without notice or penalty on or before June 2, 2000
and September 24, 2000, respectively.

Currently, the Registrant's source of liquidity is through the sale of its
common stock, through loans and through revenue raised by sales of the
Indicator. The Registrant believes, however, that the revenue stream produced
through sales of the Indicator is increasing and will provide sufficient
resources to meet its financial obligations for the next 12-month period.

The following chart represents the sales of the Indicator from January 19, 1999
(inception) to December 31, 1999:

        ------------------------------------------------------------
        Month                   Sales              Units Sold
        ============================================================
        January 1999             US$0                  0
        ------------------------------------------------------------
        February 1999            US$0                  0
        ------------------------------------------------------------
        March 1999             US$1,020                75
        ------------------------------------------------------------
        April 1999             US$1,061                77
        ------------------------------------------------------------
        May 1999              US$13,187               798
        ------------------------------------------------------------
        June 1999              US$1,299                32
        ------------------------------------------------------------
        July 1999              US$1,120                41
        ------------------------------------------------------------
        August 1999            US$9,162               599
        ------------------------------------------------------------
        September 1999        US$23,413              1,508
        ------------------------------------------------------------
        October 1999          US$37,773              2,579
        ------------------------------------------------------------
        November 1999          US$1,324                80
        ------------------------------------------------------------
        December 1999         US$15,060              1,044
        ------------------------------------------------------------


                                       9
<PAGE>

The Registrant believes that between its revenue stream and its current cash
resources it will be able to maintain its current operations. However, should
these resources prove to be insufficient, the Registrant may be required to
raise additional funds or arrange for additional financing over the next 12
months to adhere to its development schedule. Such additional capital may be
received from additional private or public financings, as well as borrowings and
other resources. If adequate cash is not available, the Registrant may be
required to curtail its operations significantly or to obtain funds by entering
into arrangements with collaborative partners or others that may require the
Registrant to relinquish rights that the Registrant would not otherwise
relinquish. No assurance can be given, however, that the Registrant will have
access to additional cash in the future, or that funds will be available on
acceptable terms to satisfy the cash requirements of the Registrant.

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

None


                                       10
<PAGE>

                                   SIGNATURES

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

Dated: February 14, 2000            LUNA MEDICAL TECHNOLOGIES, INC.

                                    By:    /s/  GORDON MCDOUGALL
                                           -----------------------------------
                                           Gordon McDougall
                                    Its:   President


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