<PAGE>

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON D.C. 20549

                                  FORM 10-QSB
                               -----------------

              QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

                    For the quarter ended November 30, 1999

                         Commission file number 0-18515

                      Therapy Lasers, Inc. and Subsidiary
                      Incorporated in the State of Nevada
                   Employer Identification Number 93-0960302

                                10450 Westoffice
                              Houston, Texas 77042
                                 (713) 339-2722


Check whether the issuer (1) timely filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months;  Yes___  No X

and (2) has been subject to such filing requirements for the past 90 days.
Yes X   No ___

As of November 30, 1999, there were outstanding 11,302,627 shares of Therapy
Lasers, Inc. Common Stock, par value $.001.

TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE): Yes__ No X
<PAGE>

                              Therapy Lasers, Inc.
                              Index to Form 10-QSB


                                     Part I


FINANCIAL INFORMATION (UNAUDITED)

ITEM 1.  FINANCIAL STATEMENTS

Balance Sheets as of November 30, 1999 and February 28, 1999

Statements of Loss for the Three and Nine Months Ended November 30, 1999 and
1998

Statements of Cash Flows for the Three and Nine Months Ended November 30, 1999
and 1998

Notes to Financial Statements

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
     FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                                    Part II


OTHER INFORMATION

     Item 6

SIGNATURES
<PAGE>

                         PART 1.  FINANCIAL INFORMATION

ITEM 1.  Financial statements

                              THERAPY LASERS, INC.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                              NOVEMBER 30,                 FEBRUARY 28,
                                                                                  1999                         1999
                                                                              (UNAUDITED)
                                                                      ------------------------     ------------------------
<S>                                                                      <C>                          <C>
ASSETS
  Current assets:
    Cash                                                                           $     1,170                  $     6,708
                                                                      ------------------------     ------------------------
      Total current assets                                                               1,170                        6,708
                                                                      ------------------------     ------------------------
  Office and computer equipment, net of
    accumulated depreciation of $1,000                                                       -                            -
                                                                      ------------------------     ------------------------
  Other assets                                                                               -                            -
                                                                      ------------------------     ------------------------
       Total assets                                                                $     1,170                  $     6,708
                                                                      ========================     ========================
LIABILITIES
  Current liabilities:
    Accounts payable and accrued expenses                                          $    21,859                  $    66,964
    Due to related parties                                                               6,000                        4,000
                                                                      ------------------------     ------------------------
      Total current liabilities                                                         27,859                       70,964
                                                                      ------------------------     ------------------------
      Total liabilities                                                                 27,859                       70,964
                                                                      ------------------------     ------------------------

  Commitments and contingencies                                                              -                            -

STOCKHOLDERS' EQUITY (DEFICIT)
  Common stock, par value $.001 per share,
    100,000,000 shares authorized, 11,302,627 and
    10,762,627 shares issued and outstanding                                            11,303                       10,763
  Capital in excess of par value                                                     4,651,911                    4,598,085
  Accumulated deficit:
    Prior operating accumulated deficit                                             (4,452,105)                  (4,452,105)
    Accumulated during the development stage                                          (237,798)                    (220,999)
                                                                      ------------------------     ------------------------
      Total stockholders' equity (deficit)                                             (26,689)                     (64,256)
                                                                      ------------------------     ------------------------
      Total liabilities and stockholders'
        equity                                                                     $     1,170                  $     6,708
                                                                      ========================     ========================
</TABLE>
See accompanying notes.
<PAGE>

                              Therapy Lasers, Inc.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                               STATEMENTS OF LOSS


<TABLE>
<CAPTION>

                                        THREE MONTHS ENDED                                   NINE MONTHS ENDED
                                            NOVEMBER 30,                                         NOVEMBER 30,
                           -------------------------------------------------      -----------------------------------------------
                                   1999                       1998                       1999                      1998
                                (UNAUDITED)                 (UNAUDITED)               (UNAUDITED)                (UNAUDITED)
                           ----------------------      ---------------------      --------------------      ---------------------

<S>                            <C>                         <C>                        <C>                       <C>
Revenues                               $         -                $         -               $         -                $    28,700
Cost of Goods Sold                               -                          -                         -                     20,436
                            ----------------------      ---------------------      --------------------      ---------------------
Gross Profit                                                                -                         -                      8,264
                            ----------------------      ---------------------      --------------------      ---------------------

Expenses:
  Legal and professional                       584                      4,420                     8,953                      9,825
  Salaries and fees for
    services                                     -                          -                     6,000                          -
  Other general and
    administrative                             588                      1,569                     1,608                     10,490
                            ----------------------      ---------------------      --------------------      ---------------------
    Total expenses                           1,172                      5,989                    16,561                     20,315
                            ----------------------      ---------------------      --------------------      ---------------------
    Income (loss) from
         operations                         (1,172)                    (5,989)                  (16,561)                   (12,051)

Other income (expenses):
  Interest                                     136                          -                       238                          -
                            ----------------------      ---------------------      --------------------      ---------------------

    Net (loss)                             ($1,308)                   ($5,989)                 ($16,799)                  ($12,051)
                            ======================      =====================      ====================      =====================



Basic earnings per share                    ($0.00)                    ($0.00)                   ($0.00)                    ($0.00)
                            ======================      =====================      ====================      =====================

Weighted average number
  of shares outstanding                 11,302,627                 10,662,627                11,121,972                 10,575,354
                            ======================      =====================      ====================      =====================
</TABLE>
See accompanying notes.
<PAGE>

                              THERAPY LASERS, INC.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>

                                                 THREE MONTHS ENDED                            NINE MONTHS ENDED
                                                    NOVEMBER 30,                                  NOVEMBER 30,
                                  ---------------------------------------------      -------------------------------------------
                                            1999                     1998                      1999                   1998
                                         UNAUDITED                 UNAUDITED                UNAUDITED              UNAUDITED
                                  --------------------      -------------------      --------------------     ------------------
<S>                                  <C>                       <C>                      <C>                      <C>
Cash flows from operating
  activities:
  Net (loss)                                   ($1,308)                 ($5,989)                 ($16,799)              ($12,051)
Adjustments to reconcile net
  gain (loss) to net cash used
  in operating activities
  (Increase) decrease in
    accounts receivable                              -                    1,912                         -                  8,479
  (Decrease) in accounts pay-
    able and accrued expenses                      413                     (274)                  (45,105)                (8,517)
    Less, Accrued expenses paid
      by issuance of stock                           -                        -                    54,000                      -
  Operating expenses paid by
    shareholders                                     -                        -                       366                      -
                                  --------------------      -------------------      --------------------     ------------------
    Net cash flows from
      operating activities                        (895)                  (4,351)                   (7,538)               (12,089)
                                  --------------------      -------------------      --------------------     ------------------

Cash flows from investing
  activities                                         -                        -                         -                      -
                                  --------------------      -------------------      --------------------     ------------------

Cash flows from financing
  activities:
    Advance from related party                   2,000                        -                     2,000                      -
    Repayment of note payable                        -                        -                         -                 (2,000)
    Sale of stock for cash                           -                        -                         -                 15,000
                                  --------------------      -------------------      --------------------     ------------------
    Net cash flows from
      financing activities                       2,000                        -                     2,000                 13,000
                                  --------------------      -------------------      --------------------     ------------------

    Net increase in cash and
      cash equivalents                           1,105                   (4,351)                   (5,538)                   911
Cash and cash equivalents,
  beginning of period                               65                    6,546                     6,708                  1,284
                                  --------------------      -------------------      --------------------     ------------------
Cash and cash equivalents, end
  of period                                   $  1,170                 $  2,195                 $   1,170              $   2,195
                                  ====================      ===================      ====================     ==================

Supplementary cash flow
  information:
  Non-cash investing and
    financing activities:
    Operating expenses paid by
      shareholders                                   -                        -                 $     366                      -
    Shares issued for accrued
      expenses                                       -                        -                    54,000                      -
</TABLE>
See accompanying notes.
<PAGE>

                              THERAPY LASERS, INC.
                         NOTES TO FINANCIAL STATEMENTS


NOTE 1 - BASIS OF PRESENTATION:
The financial statements include the accounts of Therapy Lasers, Inc.  The
balance sheet as of November 30, 1999, the statements of loss for the three
months and nine months ended November 30, 1999 and 1998, and the statements of
cash flows for the three months and nine months ended November 30, 1999 and 1998
have been prepared by the Company without audit.  In the opinion of management,
these financial statements include all adjustments necessary to present fairly
the financial position, results of operations and cash flows as of November 30,
1999 and for all periods presented.  All adjustments made have been of a normal
recurring nature.  Certain information and footnote disclosures normally
included in the financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.  The Company
believes that the disclosures included are adequate and provide a fair
presentation of interim period results.  Interim financial statements are not
necessarily indicative of financial position or operating results for an entire
year.  It is suggested that these interim financial statements be read in
conjunction with the audited financial statements and the notes thereto included
in the Company's Form 10-K for the year ended February 28, 1999 filed with the
United States Securities and Exchange Commission (SEC) on or about June 15,
1999.

NOTE 2 - THE COMPANY:
Therapy Lasers, Inc. (the Company) is a Nevada corporation engaged principally
in searching for capital, in organizing and developing a wholesale electrical
components business, and in investigating other business opportunities.  From
March 1, 1995 until late 1996, the Company was attempting to establish markets
in foreign countries (primarily Mexico and Canada) for medical laser products it
had developed, and was seeking financing to obtain approval of the Food and Drug
Administration to market the medical laser products in the United States.  In
late 1996, the Company substantially discontinued its efforts in the laser
field, as its efforts had been unsuccessful.  Also in late 1996, the Company
commenced activities in the wholesale electrical components business, serving as
a non-stocking sales representative based in Houston, Texas for an affiliated
company.  In that connection, the Company sells primarily to another affiliated
company.  At quarter end, the Company was investigating other opportunities in
related fields.

The Company is deemed to have been in the development stage since March 1, 1995.
Prior to that time, it was in the operating stage and was engaged in the sale
and rental of medical supplies and equipment; these operations have been sold
and/or discontinued.

In its current development stage, management anticipates incurring substantial
additional losses as it pursues its wholesale lighting business and as it
investigates other business opportunities.

On February 27, 1995, the Company changed its name from Medeci Corporation to
Therapy Lasers, Inc.

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Following is a summary of the Company's significant accounting policies:
<PAGE>

     BASIS OF PRESENTATION - The accounting and reporting policies of the
     Company conform to generally accepted accounting principles, and, effective
     March 1, 1995, the accounting and reporting policies conform to generally
     accepted accounting principles of development stage enterprises.

     PRINCIPLES OF CONSOLIDATION - The accompanying financial statements include
     the accounts of its wholly owned subsidiary, LaserCare, Inc., also a
     development stage enterprise.  All significant intercompany transactions
     have been eliminated.

     USES OF ESTIMATES - The preparation of financial statements in conformity
     with generally accepted accounting principles requires management to make
     estimates and assumptions that affect the reported amounts of assets and
     liabilities and disclosure of contingent assets and liabilities at the date
     of the financial statements and the reported amount of revenues and
     expenses during the reporting period.  Actual results could differ from
     those estimates.  The Company's periodic filings with the Securities and
     Exchange Commission include, where applicable, disclosures of estimates,
     assumptions, uncertainties and concentrations in products and markets which
     could affect the financial statements and future operations of the Company.

     CASH AND CASH EQUIVALENTS - For purposes of the statement of cash flows,
     the Company considers all cash in banks, money market funds, and
     certificates of deposit with a maturity of less than one year to be cash
     equivalents.

     FAIR VALUE OF FINANCIAL INSTRUMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS  -
     The carrying amounts of cash, accounts receivable, accounts payable, notes
     payable, and accrued expenses approximate fair value because of the short
     maturity of these items.   These fair value estimates are subjective in
     nature and involve uncertainties and matters of significant judgment, and,
     therefore, cannot be determined with precision.  Changes in assumptions
     could significantly affect these estimates.  At November 30, 1999, the
     Company had no derivative financial instruments.

     EQUIPMENT AND FURNISHINGS - Equipment and furnishings is stated at cost
     less accumulated depreciation, computed principally on the straight-line
     method over the estimated useful lives of the assets.  Estimated useful
     lives approximate five years.  Depreciation is taken on the straight-line
     method for tax purposes also, using lives prescribed by the Internal
     Revenue Code, which are similar to book basis lives.

     Maintenance and repairs of equipment and furnishings are charged to
     development stage expenses and new purchases and major improvements are
     capitalized.  Upon retirement, sale or other disposition, the cost and
     accumulated depreciation are eliminated from the accounts, and any gain or
     loss is included in operating income.

     FEDERAL INCOME TAXES - Deferred income taxes are reported for timing
     differences between items of income or expense reported in the financial
     statements and those reported for income tax
<PAGE>

     purposes in accordance with Statement of Financial Accounting Standards
     number 109 Accounting for Income Taxes, which requires the use of the
     asset/liability method of accounting for income taxes. Deferred income
     taxes and tax benefits are recognized for the future tax consequences
     attributable to differences between the financial statement carrying
     amounts of existing assets and liabilities and their respective tax bases,
     and for tax loss and credit carryforwards. Deferred tax assets and
     liabilities are measured using enacted tax rates expected to apply to
     taxable income in the years in which those temporary differences are
     expected to be recovered or settled. The Company provides deferred taxes
     for the estimated future tax effects attributable to temporary differences
     and carryforwards when realization is more likely than not.

     Differences between book and tax income arise primarily from the valuation
     of stock issued for services.

     NET INCOME PER SHARE OF COMMON STOCK - Net income per share of common stock
     is computed by dividing net income by the weighed average number of shares
     of common stock outstanding during the period, after giving retroactive
     effect to stock splits, if any.

NOTE 4 - UNCERTAINTY, GOING CONCERN:
The Company has incurred net operating losses and negative cash flow from
operations in recent years, and has disposed of its last operating subsidiary.
As of November 30, 1999, the Company had negative net worth in excess of $26,000
and operating revenues that were insufficient to generate a profit.  Although
the Company settled a Federal tax lien during the prior year for approximately
$4,000, resulting in an extraordinary gain of $25,051, and although the Company
realized $20,000 in cash from sales of common stock during the prior year, and
although management is currently seeking additional cash flow through potential
acquisitions and/or mergers with operating companies, and although management is
seeking to expand its wholesale components business, there is no assurance that
these activities will be successful.

These factors create substantial doubt about the Company's ability to continue
as a going concern.  The ability of the Company to continue as a going concern
is dependent upon (a) obtaining sufficient additional debt or equity financing
to finance operations, capital improvements, and other necessary activities, (b)
achieving a profitable level of operations, (c) acquiring a profitable business,
or (d) a combination of these actions.  The financial statements do not include
any adjustments that might be necessary if the Company is unable to continue as
a going concern.

NOTE 5 - COMPREHENSIVE INCOME:
FASB Statement Number 130, Reporting Comprehensive Income, became effective for
fiscal years beginning after December 15, 1997, and establishes standards for
reporting and display of comprehensive income and its components (revenues,
expenses, gains, and losses) in a full set of general-purpose financial
statements.  This Statement requires that all items that are required to be
recognized under accounting standards as components of comprehensive income be
reported in a financial statement that is displayed with the same prominence as
other financial statements.  The Company had no comprehensive income other than
net
<PAGE>

income during the periods included in the accompanying financial statements.
<PAGE>

                              THERAPY LASERS, INC.

                ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITON AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS
The Company had no sales during the quarter ending November 30, 1999.  The
Company is essentially dormant and management continues to investigate various
business opportunities.  The company incurred operating expenses of $1,172 and
$16,561 during the quarter and nine months ended November 30, 1999, compared to
$5,989 and $20,315 during the comparable periods of the preceding year.  The
difference is the result of a decreased level of activity in the current year,
and in timing in the incurring of expenses necessary to maintain the corporate
entity and to file required reports.

LIQUIDITY AND CAPITAL RESOURCES
The Company had total liabilities approximating $28,000 and a working capital
deficit of $27,000 as of November 30, 1999 compared to $49,000 and $47,000 at
November 30, 1998.  This change in working capital is primarily attributable to
the issuance of common stock in exchange for certain accrued expenses.  The
Company expects that cash requirements for development stage operations for the
next fiscal year will be provided from the wholesale electrical components
business or from private placements of common stock.  However, there can be no
assurance that these activities will, in fact, provide the necessary working
capital for operations.

OTHER MATTERS
The Company utilizes "off-the-shelf" computer software in its operations
obtained from major vendors such as Peachtree and Microsoft.  Currently,
management believes that most critical systems are year 2000 compliant, or will
be made compliant prior to December 31, 1999.  The estimated cost of becoming
compliant is minimal, and is not expected to have a material effect on the
financial statements or the Company's ability to serve its customers.


This Form 10-QSB includes or may include certain forward-looking statements that
involve risks and uncertainties. This Form 10-QSB contains certain forward-
looking statements concerning the Company's financial position, business
strategy, budgets, projected costs and plans and objectives of management for
future operations as well as other statements including words such as
"anticipate," "believe," "plan," "estimate," "expect," "intend," and other
similar expressions. Although the Company believes its expectations reflected in
such forward-looking statements are based on reasonable assumptions, readers are
cautioned that no assurance can be given that such expectations will prove
correct and that actual results and developments may differ materially from
those conveyed in such forward-looking statements. Important factors that could
cause actual results to differ materially from the expectations reflected in the
forward-looking statements in this Form 10-QSB include, among others, the pace
of technological change, the Company's ability to manage growth and attract and
retain employees, general business and economic conditions in the Company's
operating regions, and competitive and other factors, all as more fully
described in the Company's Report on Form 10-K for the period ended February 28,
1999 under Management's Discussion and Analysis of
<PAGE>

Financial Condition and Results of Operations "Assumptions Underlying Certain
Forward-Looking Statements and Factors that May Affect Future Results" and
elsewhere from time to time in the Company's other SEC reports. Such forward-
looking statements speak only as of the date on which they are made and the
Company does not undertake any obligation to update any forward-looking
statement to reflect events or circumstances after the date of this Form 10-QSB.
If the Company does update or correct one or more forward-looking statements,
investors and others should not conclude that the Company will make additional
updates or corrections with respect thereto or with respect to other forward-
looking statements. Actual results may vary materially.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
None.

     All other items in Part II are either not applicable to the Company during
     the current quarter, the answer is negative, or a response has been
     previously reported and an additional report of the information is not
     required, pursuant to the instructions to Part II.


                                   SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized on the 18th day of April,
2000.

                                  Therapy Lasers, Inc.



By:        /s/ LEON D. HOGG                             Date: April 18, 2000
    ----------------------------------
   Leon D. Hogg, Chairman of the Board,
   President, Chief Executive Officer