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

1820-1095 West Pender Street, Vancouver, British Columbia, Canada     V6E 2M6
(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. [X] 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, 1999,  there were
7,310,660  shares of the  issuer's  $.001  par value  common  stock  issued  and
outstanding.


<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

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

Business  of  the  Registrant.   Luna  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 1820-1095 West Pender Street,
Vancouver,  British Columbia,  Canada V6E 2M6. 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
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 has hired, on an as needed basis,
Melissa Gervais to act as an in-house marketing and public relations  consultant
to  co-ordinate  an  advertising  campaign  in  targeted  media  such as medical
journals,  women's magazines,  religious  publications and other selected media.
The  Registrant  hopes that Ms.  Gervais'  efforts will help generate  immediate
awareness of the Indicator.  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


                                       2

<PAGE>

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.

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. 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 September 30, 1999, Registrant has realized US$49,242 in
revenues  from  sales of the  Indicator.  The cost of those  sales  amounted  to
US$31,282,  resulting in a gross profit of US$17,960. The Consolidated Statement
of Loss for the six month period ended  September 30, 1999  indicates a net loss
of  US$144,445.  At September 30, 1999,  the  Registrant  had current  assets of
US$74,241.  The  majority  of  which  is  represented  by  US$40,000  in a  loan
receivable;  and US$26,057 in accounts  receivable.  At September 30, 1999,  the
Registrant had current liabilities of US$170,994. At September 30, 1999, current
assets exceeded current liabilities by US$96,753. 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$71,522,  however,  those notes are  unsecured.  The US$19,883 loan payable to
Campbell Capital Advisory,  Inc., a private Canadian  corporation  controlled by
Registrant's  President,  Gordon  McDougall,  bears no interest and has no fixed
repayment  terms.  The  US$41,939  loan  payable  to Javelin  Enterprises  bears
interest  at 10% per annum and is  repayable  without  notice or  penalty  on or
before June 2, 2000.  The  US$9,700  loan payable to Phoenix  Titanium  Recovery
Corp. bears interest at 10% per annum and is repayable without notice or penalty
on or before September 24, 2000.

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.


                                       3

<PAGE>


The following chart  represents the sales of the Indicator from January 19, 1999
(inception) to September 30, 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
--------------------------------------------------------------------------------

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 public or private 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.

Impact of the Year 2000 Issue.  The  Registrant  anticipates  that the Year 2000
("Y2K")  could impact the business of the  Registrant.  Many  business  software
applications  use only the last two  digits to  indicate  the  applicable  year.
Unless these programs are modified,  computers running  time-sensitive  software
may be unable to distinguish between the year 1900 and the year 2000,  resulting
in system failures or miscalculations and disruptions of operations,  including,
among other things, a temporary  inability to process  transactions or engage in
other  normal  business  activities.  Many Y2K  problems  might  not be  readily
apparent  when  they  first  occur,  but  instead  could  imperceptibly  degrade
technology systems and corrupt information stored in computerized  databases, in
some cases before January 1, 2000.

At this time, none of Registrant's  technology systems are computer  controlled.
However,  there is no guarantee that the systems of other companies on which the
Registrant's  systems rely will be timely converted and will not have a material
adverse effect on the Registrant's systems.

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

                                       4


<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:   November 15, 1999                 LUNA MEDICAL TECHNOLOGIES, INC.


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


                                       5

<PAGE>



LUNA MEDICAL TECHNOLOGIES, INC.
Consolidated Balance Sheet
(Unaudited - Prepared by Management)
September 30, 1999
--------------------------------------------------------------------------------



<TABLE>
<CAPTION>
                  ASSETS                                               September 30     March 31
                                                                          1999            1999
<S>                                                                     <C>            <C>
CURRENT ASSETS
Cash                                                                    $   1,107      $   9,897
      Accounts receivable                                                  26,057          1,091
      Loan receivable                                                      40,000         40,000
      Goods and Services Tax recoverable                                    5,352            920
      Inventory                                                             1,725          1,012
      Prepaid marketing expense                                                --         16,453
      Prepaid expenses                                                         --          5,637
                                                                        ---------      ---------
                                                                           74,241         75,010
                                                                        ---------      ---------

OTHER ASSETS
      Marketing licence                                                         1              1
      Trademark                                                               710             --
                                                                        ---------      ---------
                                                                              711              1
                                                                        ---------      ---------
                                                                        $  74,952      $  75,011
                                                                        =========      =========


                  LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
      Accounts payable and accrued liabilities                          $  99,472      $  10,686
      Accrued marketing costs                                                  --         16,453
      Short term loans payable                                             71,522          4,469
                                                                        ---------      ---------
                                                                          170,994         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
            7,310,660 shares issued and outstanding                         7,311          7,311
      Additional paid-in capital                                           70,189         70,189
      Stock subscriptions receivable                                           --         (5,000)
      Deficit                                                            (173,542)       (29,097)
                                                                        ---------      ---------
                                                                          (96,042)        43,403
                                                                        ---------      ---------
                                                                        $  74,952      $  75,011
                                                                        =========      =========
</TABLE>


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


<PAGE>


LUNA MEDICAL TECHNOLOGIES, INC.
Consolidated Statement of Loss
(Unaudited - Prepared by Management)
For the six month period ended September 30, 1999
--------------------------------------------------------------------------------


SALES                                                               $    49,242

COST OF SALES                                                            31,282
                                                                    -----------

GROSS PROFIT                                                             17,960
                                                                    -----------

EXPENSES
      Audit and accounting                                                8,457
      Bank charges and interest                                           2,567
      Consulting                                                         35,277
      Legal                                                              13,957
      Management fees                                                    30,000
      Marketing                                                          46,361
      Office and telephone                                               15,527
      Rent                                                                4,200
      Transfer agent                                                      1,858
      Travel                                                              4,201
                                                                    -----------
                                                                        162,405
                                                                    -----------
NET LOSS                                                            $  (144,445)
                                                                    ===========



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

WEIGHTED AVERAGE NUMBER OF
      COMMON STOCK SHARES OUTSTANDING                                 7,310,660
                                                                    ===========




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


<PAGE>



LUNA MEDICAL TECHNOLOGIES, INC.
Consolidated Statement of Stockholders' Equity
(Unaudited - Prepared by Management)
For the six month period ended September 30, 1999
--------------------------------------------------------------------------------


COMMON STOCK
      Balance, beginning and end of period                            $   7,311
                                                                      ---------


ADDITIONAL PAID-IN CAPITAL
      Balance, beginning and end of period                               70,189
                                                                      ---------


DEFICIT
      Balance, beginning of period                                      (29,097)
      Net loss                                                         (144,445)
                                                                      ---------
      Balance, end of period                                           (173,542)
                                                                      ---------


TOTAL STOCKHOLDERS' EQUITY                                            $ (96,042)
                                                                      =========




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


<PAGE>



LUNA MEDICAL TECHNOLOGIES, INC.
Consolidated Statement of Cash Flows
(Unaudited - Prepared by Management)
For the six month period ended September 30, 1999
--------------------------------------------------------------------------------


CASH FLOWS FROM OPERATING ACTIVITIES
      Net loss                                                        $(144,445)
      Changes in non-cash working capital
            Accounts receivable                                         (24,966)
            Goods and Services Tax recoverable                           (4,432)
            Inventory                                                      (713)
            Prepaid marketing expense                                    16,453
            Prepaid expenses                                              5,637
            Accounts payable and accrued liabilities                     88,786
            Accrued marketing costs                                     (16,453)
                                                                      ---------
                                                                        (80,133)
                                                                      ---------
CASH FLOWS FROM INVESTING ACTIVITIES
      Trademark registration costs                                         (710)
                                                                      ---------


CASH FLOWS FROM FINANCING ACTIVITIES
      Proceeds from short term loans payable                             67,053
      Receipt of stock subscriptions receivable                           5,000
                                                                      ---------
                                                                         72,053
                                                                      ---------
CHANGE IN CASH                                                           (8,790)

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

CASH, end of period                                                   $   1,107
                                                                      =========



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




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


<PAGE>



LUNA MEDICAL TECHNOLOGIES, INC.
Notes to Consolidated Financial Statements
(Unaudited - Prepared by Management)
September 30, 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.   SHORT TERM LOANS PAYABLE

     Short term loans payable consist of the following:

<TABLE>
<CAPTION>
<S>                                                               <C>          <C>
     Loan payable to Campbell Capital Advisory, Inc. - an         $19,883      $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            41,939          --
           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                                                        $71,522      $4,469
                                                                  =======     =======
</TABLE>



<PAGE>


LUNA MEDICAL TECHNOLOGIES, INC.
Notes to Consolidated Financial Statements
(Unaudited - Prepared by Management)
September 30, 1999
--------------------------------------------------------------------------------


3.   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                 $30,000
     Marketing expenses reimbursed to a company of the President         15,000
     Office expenses reimbursed to a company of the President             7,200


4.   COMMITMENTS AND CONTINGENCIES

     On January 31, 1999,  the company  entered into a licencing  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 and management  believes that sales should result
     in a complete  repayment  of this loan  within one year.  Furthermore,  the
     licencing  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.