10QSB/A 1 surgical10qsbajune2002.htm AMENDED QUARTERLY FILING surg10qsba040403

                     U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                  Form 10-QSB/A

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

                      For the quarter ended: June 30, 2002

                           Commission file no. 0-24921

                         Surgical Safety Products, Inc.
                 (Name of small business issuer in its charter)

            New York                                             65-0565144
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                              Identification No.)


           8374 Market St., Suite 439 Bradenton, Florida         34202
               (Address of principal executive offices)       (Zip Code)

                    Issuer's telephone number (941) 360-3039

         Securities registered under Section 12(b) of the Exchange Act:


            Title of each class               Name of each exchange on which registered

            ___________________     None      ______________________

         Securities registered under Section 12(g) of the Exchange Act:

                          Common Stock, $.001 par value
                                (Title of class)

                        Copies of Communications sent to:
                             Thomas P. McNamara Esq.
                            Thomas P. McNamara, P.A.
                      2909 Bay to Bay Boulevard, Suite 309
                              Tampa, Florida 33629
                    Tel: (813) 837-0727 - Fax: (813) 837-1532


                                       1


Indicate by Check whether the issuer (1) filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.

                   Yes     X        No

As of March 31, 2003, there are 50,641,501 shares of voting stock of the
registrant issued and outstanding, all of which have voting rights.




                                       2





                                     PART I


Item 1.            Financial Statements
                      (Unaudited)

Condensed Consolidated Balance Sheet
Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Cash Flows
Notes to the Financial Statements





                                       3






                         Surgical Safety Products, Inc.
                      Condensed Consolidated Balance Sheet
                                  June 30, 2002
                                   (Unaudited)

                                     ASSETS

Current assets

     Total current assets                                      $          - 

Property and equipment (net of accumulated depreciation
   of $3,151)                                                        11,849 

Other assets                                                         11,250 

                                                               $     23,099
                                                               =============

                     LIABILITIES AND STOCKHOLDERS' (DEFICIT)

Current liabilities:
  Accounts payable and accrued expenses                        $    877,507
  Convertible notes payable                                          57,500
  Deferred revenue                                                   50,000
  Stockholder advances                                              131,263
  Notes payable - shareholders                                       45,000
  Other convertible notes payable                                   341,442
  Other notes payable                                               957,000 
      Total current liabilities                                   2,459,712 

Stockholders' (Deficit):
  Common stock, $.001 par value, 100,000,000
   shares authorized, 49,047,941 shares
   issued and outstanding                                            49,048
   Common stock subscribed                                            1,500
  Additional paid-in capital                                      4,861,629
  Accumulated (deficit)                                          (7,348,790)
                                                                 (2,436,613)
                                                               $     23,099
                                                               =============



See the accompanying notes to the consolidated financial statements.


                                       4





                         Surgical Safety Products, Inc.
                 Condensed Consolidated Statements of Operations
            Three Months and Six Months Ended June 30, 2002 and 2001
                                   (Unaudited)

                                                         Three Months                   Six Months
                                                     2002             2001          2002          2001

Revenues                                         $      6,803     $   74,480     $   13,273    $  185,839

Costs and expenses:
 Costs of revenues earned                               4,086          3,562         13,270        18,093
 Loss from impairment and disposition
  of property and equipment                            70,420          1,597         70,420        71,973
 Interest                                              29,098          7,773         57,874        20,297
 Other operating expenses                             193,251        112,778        339,437       301,653 
                                                      296,855        125,710        481,001       412,016 

Net (loss)                                       $   (290,052)    $  (51,230)    $ (467,728)   $ (226,177)
                                                 =============    ===========    ===========   ===========

Per share information - basic and fully diluted

Net (loss) per share                             $      (0.01)    $    (0.00)    $    (0.01)   $    (0.01)
                                                 =============    ===========    ===========   ===========

Weighted average shares outstanding                46,806,655     16,584,556     44,565,369    15,724,964
                                                 =============    ===========    ===========   ===========




See the accompanying notes to the consolidated financial statements.


                                       5





                         Surgical Safety Products, Inc.
                 Condensed Consolidated Statements of Cash Flows
                     Six Months Ended June 30, 2002 and 2001
                                   (Unaudited)

                                                          2002             2001
Cash flows from operating activities:
  Net cash (used in) operating activities            $    (96,749)     $    (130,980)

Cash flows from investing activities:
  Net cash provided by investing activities                     -             81,000 

Cash flows from financing activities:
  Net cash provided by financing activities                96,500              1,500 

(Decrease) in cash and cash equivalents                      (249)           (48,480)

Cash and cash equivalents, beginning of period                249             52,247 

Cash and cash equivalents, end of period             $          -      $       3,767
                                                     =============     ==============



See the accompanying notes to the consolidated financial statements.



                                       6





                         SURGICAL SAFETY PRODUCTS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2002
                                   (UNAUDITED)



(1) Basis Of Presentation

The accompanying unaudited financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America
("GAAP") for interim financial information and Item 310(b) of Regulation S-B.
They do not include all of the information and footnotes required by GAAP for
complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring adjustments) considered necessary for a fair
presentation have been included.

The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
certain estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date
of the financial statements. The reported amounts of revenues and expenses
during the reporting period may be affected by the estimates and assumptions
management is required to make. Actual results could differ from those
estimates.

The accompanying consolidated financial statements include the accounts of the
Company and its wholly owned subsidiary - C5 Health, Inc. Inter-company
transactions and balances have been eliminated in consolidation.

The results of operations for the periods presented are not necessarily
indicative of the results to be expected for the full year. For further
information, refer to the consolidated financial statements of the Company as of
December 31, 2001 and for the two years ended December 31, 2001 and 2000,
including notes thereto included in the Company's December 31, 2001 Form 10-KSB.


The Company's financial statements are presented on a going concern basis, which
contemplates the realization of assets and satisfaction of liabilities in the
normal course of business. The Company has experienced losses from operations
aggregating $467,728 for the six months ended June 30, 2002 and has
stockholders' and working capital deficits of $2,436,613 and $2,459,712,
respectively at June 30, 2002.

The Company's ability to continue as a going concern is contingent upon its
ability to attain profitable operations by securing financing and implementing
its business plan and the successful integration of an operating business. In
addition, the Company's ability to continue as a going concern must be
considered in light of the problems, expenses and complications frequently
encountered by entrance into established markets and the competitive environment
in which the Company operates. The financial statements do not include any
adjustments to reflect the possible future effects on the recoverability and
classification of assets or the amounts and classification of liabilities that
may result from the possible inability of the Company to continue as a going
concern.



                                       7


(2) Earnings Per Share

The Company calculates net income (loss) per share as required by SFAS No. 128,
"Earnings per Share." Basic earnings (loss) per share is calculated by dividing
net income (loss) by the weighted average number of common shares outstanding
for the period. Diluted earnings (loss) per share is calculated by dividing net
income (loss) by the weighted average number of common shares and dilutive
common stock equivalents outstanding. During the periods when they would be
anti-dilutive common stock equivalents, if any, are not considered in the
computation.

(3) Impairment and Disposal of Long Lived Assets

Long-lived assets held and used by the Company are reviewed for possible
impairment whenever events or circumstances indicate the carrying amount of an
asset may not be recoverable or is impaired. During the period ended June 30,
2001, the Company's management determined that certain property and equipment
was impaired and accordingly an impairment loss of $71,973 was recorded during
the period. During the period ended June 30, 2002 the Company recorded a loss on
the disposal of property and equipment aggregating $70,420 for which it received
nominal consideration. At June 30, 2002, management believes that all of its
long-lived assets are recoverable.

(4) Income Taxes

The Company accounts for income taxes under Statement of Financial Accounting
Standards No. 109 (FAS 109), "Accounting for Income Taxes", which requires use
of the liability method. FAS 109 provides that deferred tax assets and
liabilities are recorded based on the differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting
purposes, referred to as temporary differences. Deferred tax assets and
liabilities at the end of each period are determined using the currently enacted
tax rates applied to taxable income in the periods in which the deferred tax
assets and liabilities are expected to be settled, or realized.

The Company's deferred tax asset resulting from net operating loss carryforwards
is fully offset by a valuation allowance. The Company has recorded a valuation
allowance to state its deferred tax assets at estimated net realizable value due
to the uncertainty related to realization of these assets through future taxable
income.

The provision for income taxes differs from the amount computed by applying the
statutory rate of 34% to income before income taxes due to the effect of the net
operating loss.

(5) Related Party Transactions

During the period ended June 30, 2002, a related entity infused $96,500 for
working capital.

(6) Stockholders' (Deficit)

During the period ended June 30, 2002 the Company issued 6,723,858 shares of its
common stock as full consideration for advances from a related party aggregating
$201,716 (including the $96,500 described in Note 5).

(7) Accounts Payable

During the period ended June 30, 2002 the Company defaulted on a settlement
agreement with a vendor, which called for the payment of $20,000 to settle all
outstanding obligations with the vendor. In the event of default of the payment
the Company agreed to pay a settlement amount of $100,000. The Company charged
the additional $80,000 due to the vendor to operations during the period ended
June 30, 2002.



                                       8



(8) Subsequent Events

The following events occurred subsequent to June 30, 2002 and September 30, 2002.

In December 2002, the Company extinguished a related party note of $500,000, a
related party note of $475,006 and related party accrued interest of $68,431.
The extinguishment resulted from the dissolution of the related party as a legal
company and with no legal standing in the states in which it transacted
business. All known registered agent representatives were contacted and
indicated their resignation with no successor being identified.

At December 3,1 2002, the Company was obligated under an employment agreement
with its chief executive officer, which required the payment of an annual salary
of $100,000 and certain benefits. The agreement was terminated on March 31,
2002, which coincided with the officer's personal efforts being allocated and
directed to other business ventures outside of the Company.

On August 12, 2002 and effective June 1, 2002, the Board of Directors passed a
resolution regarding employment arrangement with its newly appointed chief
executive officer and chief financial officer. The Board resolved that such
arrangement be for an annual salary of $150,000 for each officer. The agreements
may be terminated for any reason; if the Company elects to do so without cause,
then the officers will be entitled to compensation and benefits for a period of
ninety days.

In May 2002, the Company entered a lease expiring on March 31, 2006. This lease
was terminated on October 29, 2002 and all future obligations were released in
exchange for a promissory note totaling $33,009, which included termination and
related fees. This note is due on October 29, 2003 and accrues interest at 6%
per annum.

On February 7, 2001, the Company executed a loan cancellation and settlement
agreement effectively terminating a line of credit agreement. Until fully
converted, the remaining balance of the notes and accrued interest ($341,442 at
December 31, 2001) would accrue interest at 8%. On December 15, 2002 the loan
and accrued interest balance was completely converted into common stock at
$0.375 per share and the note was returned to the company on that date
terminating all related obligations associated with this line of credit
agreement.

The letter of intent signed with Scan America USA, Inc. on July 11, 2002 to
effect a 50/50 merger (see Corporate Developments) expired on December 31, 2002
and was not renewed.

The Company is negotiating to settle a contingent liability with a health care
provider. The provider had agreed to perform clinical testing of ten surgical or
medical products submitted by the Company during the period ended January 31,
2003 in exchange for total consideration of $250,000. No products have been
submitted for testing, however pursuant to the agreement, the $250,000 remains
due and payable as of January 31, 2003. No amounts have been accrued under this
arrangement as of June 30, 2002 pending resolution of the negotiations.


As of December 31, 2002 all property and equipment had been disposed of or has
been written off due to impairment.

On March 31, 2003, the Company's Board of Directors authorized and approved
several resolutions as follows:

        o The creation of a 2003 Stock Compensation Plan and filing of Form
          S-8 to register the shares under the 2003 Stock Compensation
          Plan.
        o The authorization of a Series A Preferred Stock consisting of
          4,000,000 shares.
        o Issuance of 2,660,000 of Series A Preferred Stock in
          consideration of accrued and unpaid salary totaling $200,000 to
          two officers of the Company.
        o Issuance of 1,330,000 of Series A Preferred Stock in
          consideration of $100,000 cash by an individual investor.
        o The incorporation of a subsidiary to be known as Power3 Medical,
          Inc. to be incorporated under the laws of the state of Nevada as
          a wholly owned subsidiary.
        o Resolved that the Company enter a merger with and into its wholly
          owned subsidiary known as Power3 Medical, Inc.




                                       9




Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations

Overview

The Company's (OTC BB: SSPD) overall mission is the research, development,
production and distribution of innovative products and services for healthcare.
Consisting of both traditional products and innovative business-to-business
e-solutions, the common goal is a safer and more efficient environment for
healthcare workers, manufacturers and patients. Originally formed as a medical
device company, Surgical shifted focus to being an e-company when the Company's
management recognized an untapped market niche: responding to the critical need
for immediate communication and access to information in healthcare.

The Company currently has a single product which accounts for all of its revenue
generating operations. SutureMate(R), a patented, disposable, surgical assist
device, was initially introduced in 1993. Its unique design facilitates the
highly recommended one-handed suturing technique which is advocated by
occupational safety experts. SutureMate(R) allows the surgeon to use a safer,
more efficient method of surgical stitching. The product has features which
include a foam needle-cushion, and a suture cutting slot.

The Company is seeking to expand its business through the acquisition of
additional products or additional lines of business. There can be no assurance
that the Company will be successful in its efforts.

Corporate Developments

On May 10, 2002, the Company executed an Amendment to the lease agreement on its
corporate offices. These offices were leased by Core Care Delaware, Inc. a
corporation formed in Delaware in February 2001 ("Core Care") that is owned by
Mr. Lyles, a Director of the Company prior to his resignation in February 2002.
The original leas began in April 2001 and the space was subleased to C5. On May
9, 2002, Core Care assigned all rights, title and interest in the lease to the
Company.

On June 7, 2002, Mr. Danielczyk resigned from the Board of Directors to pursue
other business activities. Mr. Novak was elected as Chairman of the Board upon
Mr. Danielczyk's resignation. Mr. Novak was appointed Chief Executive Officer on
August 12, 2002 replacing Dr. Michael Swor who assumed the responsibility of
Vice President of Product Development on this date. Mr. Gray was appointed Chief
Financial Officer on August 12, 2002 moving from acting Chief Financial Officer
position.

The Company signed a letter of intent with Scan America USA, Inc. on July 11,
2002 to effect a 50/50 merger. The letter of intent expired as of December 31,
2002 and was not renewed.

Results of Operations

The Company's financial statements are presented on a going concern basis, which
contemplates the realization of assets and satisfaction of liabilities in the
normal course of business. The Company has experienced losses from operations
aggregating $467,728 for the six months ended June 30, 2002 and has
stockholders' and working capital deficits of $2,436,613 and $2,459,712,
respectively at June 30, 2002.

The Company's ability to continue as a going concern is contingent upon its
ability to attain profitable operations by securing financing and implementing
its business plan and the successful integration of an operating business. In
addition, the Company's ability to continue as a going concern must be
considered in light of the problems, expenses and complications frequently
encountered by entrance into established markets and the competitive environment
in which the Company operates. The financial statements do not include any
adjustments to reflect the possible future effects on the recoverability and
classification of assets or the amounts and classification of liabilities that
may result from the possible inability of the Company to continue as a going
concern.

Net sales for the quarter ended June 30, 2002 were $6,803 compared to $74,480
for the same period last year, a decrease of $67,677. Net sales for the six
months ended June 30, 2002 were $13,273 compared to $185,839 for the same period
last year, a decrease of $172,566. The decrease is attributable to reduced sales
of the Company's SutureMate product during 2002 and sales of the Company's Oasis
products during the 2001 periods which did not occur in 2002 as the Company
decided to concentrate its efforts on SutureMate due to the lack of funding for
multiple product lines and the lack of a technical staff to support the Oasis
product line.

Gross profit margin for the quarter June 30, 2002 amounted to $2,717, or 40% of
net sales compared to $70,918 or 95% of net sales for the same period last year.
For the six months ended June 30, 2002, gross profit margin was $3 or 0% of net
sales compared to $167,746 or 90% of net sales for the same period last year.
This decrease in gross profit percentage is attributable to the sales of
SutureMate products in 2002 which carry a substantially lower gross profit
margin than the Oasis products which comprised a significant percentage of the
sales in 2002.

The loss on the impairment and disposition of property and equipment amounted to
$70,420 during the quarter ended June 30, 2002 as compared to $1,597 for the
same period last year. The loss on the impairment and disposition of property
and equipment amounted to $70,420 during the six months ended June 30, 2002 as
compared to $71,973 for the same period last year. The loss during 2002 is
attributable to the disposition of equipment for nominal consideration and the
loss during 2001 is attributable to a write down of impaired property and
equipment.

Interest expense increased by $21,325 to $29,098 for the quarter ended June 30,
2002 compared to $7,773 for the same period last year. For the six months ended
June 30, 2002 interest expense increased by $37,577 to $57,874 compared to
$20,297 for the same period in 2001. The increased expense results principally
for interest recorded on notes payable related to the C5 acquisition.



                                       10



Other operating expenses increased by $80,473 to $193,251 for the quarter ended
June 30, 2002 compared to $112,778 for the same period last year. For the six
months ended June 30, 2002 these expenses increased by $37,784 to $339,437
compared to $301,653 for the same period in 2001. This increase is mainly due to
increased payroll accruals.

Net loss for the quarter ended June 30, 2002 was $290,052 compared to $51,230
for the same period last year. For the six months ended June 30, 2002 net loss
was $467,728 compared to $226,177 for the same period in 2001.

Liquidity and Capital Resources

As of June 30, 2002 the Company has no cash or current assets. In addition it
has a working capital deficit of $2,459,712 on June 30, 2002.

The Company's sole source of funding during 2002 was from working capital
advances from an affiliate aggregating $96,500. These advances were converted
into common shares of the Company during the quarter ended June 30, 2002.

Based on its current operating plan, the Company believes that its existing
resources together with cash generated from operations will not be sufficient to
satisfy the Company's contemplated working capital requirements at for the next
fiscal year. The Company anticipates that it will need to raise capital through
the sale of equity interests or borrow funds to sustain its operations The
Company has no agreements, commitments or understandings with respect to such
debt or equity financing at this time.

The Company has no commitments for capital expendatures at this time.

Forward-Looking Statements

This Form 10-QSB contains certain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, which are intended to be covered by
the safe harbors created hereby. Investors are cautioned that all
forward-looking statements involve risks and uncertainty, including without
limitation, the Company's future cash resources and liquidity, further
expenditures by the Company's customers, current year revenue and net income,
future revenues the ability of the Company to fully exploit potential business
opportunities and the impact of the Company's steps to reduce its overhead and
cash commitments. Although the Company believes that the assumptions underlying
the forward-looking statements contained herein are reasonable, any of the
assumptions could be inaccurate, and therefore, there can be no assurance that
the forward-looking statements included in this Form 10-QSB will prove to be
accurate. In light of the significant uncertainties inherent in the
forward-looking statements included herein, the inclusion of such information
should not be regarded as a representation by the Company or any other person
that the objectives and plans of the Company will be achieved.

Item 3. Controls and Procedures

The Company's Chief Executive Officer and Chief Financial Officer evaluated the
Company's disclosure controls and procedures within the 90 days preceding the
filing date of this quarterly report. Based upon this evaluation, the Chief
Executive Officer and Chief Financial Officer concluded that the
Company'sdisclosure controls and procedures are effective in ensuring that
material information required to be disclosed is included in the reports that it
files with the Securities and Exchange Commission.

There were no significant changes in the Company's internal controls or, to the
knowledge of the management of the Company, in other factors that could
significantly affect these controls subsequent to the evaluation date.



                                      11





                PART II

Item 1. Legal Proceedings.

On March 13, 2001, the Company was served with a Summons and Complaint by IBM in
an action entitled International Business Machines v. Surgical Safety Products
Inc. (The "Action"). The Action was brought in the Circuit Court in Sarasota
Florida. In the Action, IBM brought four (4) causes of action, namely, breach of
contract, implied contract, account stated and unjust enrichment. Each cause of
action relates to the contract between Surgical and IBM relative to the delivery
of services and equipment. Surgical had entered into the arrangement with IBM to
meet its commitments to US Surgical. When US Surgical failed to perform as
expected, Surgical sought termination of the arrangement with IBM. Effective
July 14, 2000, this contract was terminated. IBM is seeking payment of in excess
of $600,000 for invoices principally related to software and labor associated
with implementing the US Surgical Agreement. The Company brought a motion to
dismiss three (3) of the causes of action that was denied and thereafter filed a
defense. The Company believed it had an absolute defense to the breach of
contract claim since the agreement provided that the Company could terminate and
provided the payments required for such termination. Further the agreement
required that the Company approve all work prior to performance and the work for
which it was invoiced was not approved. The implied contract and unjust
enrichment claims can only go forward if the there is no valid contract since
they are alternative pleadings. The Company believed that it had just and
meritorious defenses to this action. The matter was set for trial in April 2002.
On March 25, 2002, the parties entered into a Stipulation of Settlement whereby
the Company is to pay IBM $20,000 on or before May 31, 2002. In the event such
payment is not made, IBM may enter a final judgment against the Company for
$100,000 by filing a copy of the Stipulation. On the basis of this settlement,
the matter was dismissed with prejudice with the court retaining jurisdiction to
enforce the settlement terms the Company failed to make the required payment and
judgment was entered in the amount of $100,000. The Company is liable to IBM for
$100,000 plus statutory interest from June 1, 2002. Notwithstanding the fact
that the lower amount was not paid, the Company believes that this settlement
was in the best interest of the Company and its shareholders as it minimized the
potential exposure should the Company have been unsuccessful at trial.


                                       12


C5's right to use the Salud.com domain name was subject to litigation in U.S.
District Court for the Southern District of Florida. C5 acquired the domain name
Salud.com as part of the asset acquisition from MHC. It also acquired any
liabilities relating to such acquired assets that arise on or after the closing.
In a case entitled Salu, Inc. v. Salud.com, Inc. and Millennium Health
Communications, Inc., Case No. 00-3877-CIV, the plaintiff has listed four (4)
causes of action alleging Infringement of a Registered Trademark under 15 USC
ss.1114, Infringement of a Registered Trademark under 15 USC ss.1125(a),
Dilution of a Famous Mark and Violations of Common Law Trademark Rights. The
plaintiff is seeking declaratory and injunctive relief, transfer or forfeiture
of the domain name, monetary damages, an accounting and treble damages and other
damages permitted under 15 USC ss.1117. The plaintiff's complaint was never
served and the first amended complaint that was served in the spring 2001 did
not include MHC. The defendant made a motion to dismiss that was denied and
thereafter filed an answer with affirmative defenses. It then brought a motion
for summary judgment on the basis that the word "salud" means health in Spanish
and therefore there is no basis for an infringement claim for the use in the
domain name. While the motion was pending, the plaintiff filed a second amended
complaint in August 2001 adding MHC. The court ruled that the summary judgment
was moot in light of the second amended complaint. MHC filed an answer with
affirmative defenses and the defendants renewed their motion for summary
judgment to which is attached affidavit evidence from language experts as to the
common usage of the word "salud" in Spanish. Prior to a determination on the
motion and during the first quarter of 2002, the parties settled. The parties
agreed that C5 would insert a disclaimer on its websites that it was not
associated with any of the SALU websites or company. There were no damages paid
by to any party. The court retained jurisdiction to oversee the agreed
settlement. The Company believes this settlement resolves satisfactorily for the
Company finally all issues relative to the use of its domain name.

The Company received a demand letter for $250,000 relating to its arrangement
with Sarasota Memorial Hospital as it related to certain clinical studies to be
performed by Sarasota Memorial Hospital as submitted by the Company. The
clinical studies were never completed by Sarasota Memorial Hospital and the
amount is not believed to be owed by the Company until such studies have been
initiated and completed.

The Company knows of no other legal proceedings to which it is a party or to
which any of its property is the subject or any unsatisfied judgments against
the Company and knows of no other material legal proceedings which are pending,
threatened or contemplated.

Item 2. Changes in Securities and Use of Proceeds

        There were no changes in the Company's securities in the quarter ended June
30, 2002.

Item 3. Defaults in Senior Securities

        None

Item 4. Submission of Matters to a Vote of Security Holders.

        No matters were submitted to the Security Holders for a vote during the
quarter ended June 30, 2002.

Item 5. Other Information

        None

Item 6. Exhibits and Reports on Form 8-K

(a) The exhibits required to be filed herewith by Item 601 of Regulation S-B, as
described in the following index of exhibits, are incorporated herein by
reference, as follows:



Exhibit No.             Description

2.1             Agreement and Plan of Merger and Reorganization between Surgical
                Safety Products, Inc., OIX, Inc. and C5 Health Inc dated
                September 15, 2001 effective October 26, 2001 [14]

3.(I).1         Articles of Incorporation of Surgical Safety Products, Inc., a
                Florida corporation filed May 15, 1992 [1]

3.(I).2         Articles of Amendment filed December 9, 1992 [1]

3.(I).3         Articles of Amendment filed July 19, 1994 [1]




                                       13





3.(I).4         Articles of Amendment filed October 11, 1994 [1]

3.(I).5         Articles of Incorporation of Sheffeld Acres, Inc., a New York
                Corporation filed May 7, 1993 [1]

3.(I).6         Articles of Merger filed in the State of Florida October 12,
                1994 [1]

3.(I).7         Certificate of Merger filed in the State of New York February
                8, 1995 [1]

3.(I).8         Certificate to Do Business in the State of Florida filed April
                11, 1995 [1]

3.(I).9         Certificate of Amendment filed May 1, 1998 [1]

3.(I).10        Certificate of Amendment filed February 28, 2000 [7]

3.(II).1        Bylaws of Sheffeld Acres, Inc., now known as Surgical Safety
                Products, Inc. [1]

3.(II).2        Amended Bylaws of Surgical Safety Products, Inc. [2]

10.1            Acquisition of Endex Systems, Inc. d/b/a/ InterActive PIE dated
                December 8, 1997 [1]

10.2            Prepaid Capital Lease Agreement with Community Health Corporation
                relative to Sarasota Medical Hospital OASiS Installation dated
                January 30, 1998 [1]

10.3            Letter of Intent with United States Surgical Corporation dated
                February 12, 1998 [1]

10.4            Form of Rockford Industries, Inc. Rental Agreement and Equipment
                Schedule to Master Lease Agreement [1]

10.5            Ad-Vantagenet Letter of Intent dated June 19, 1998 [1]

10.6            Distribution Agreement with Morrison International Inc. dated
                September 30, 1996 [1]

10.7            Distribution Agreement with Hospital News dated August 1, 1997
                [1]

10.8            Clinical Products Testing Agreement with Sarasota Memorial
                Hospital dated January 30, 1998 [1]



                                       14




10.9            Real Estate Lease for Executive Offices effective June 1, 1998
                [1]

10.10           Employment Agreement with Donald K. Lawrence dated April 1, 1997
                [1]

10.11           Employment Agreement with G. Michael Swor dated June 15, 1998
                [1]

10.12           Employment Agreement with Frank M. Clark dated June 15, 1998 [1]

10.13           Agreement for Consulting Services with Stockstowatch.com Inc.
                dated March 30, 1988 [1]

10.14           Form of Employee Option Agreement dated July 1994 [1]

10.15           Form of Employee Option Agreement dated 1998 [1]

10.16           Form of Consultants Option Agreement dated July 1994 [1]

10.17           Form of Consultants Option Agreement dated 1998 [1]

10.18           Confidential Private Offering Memorandum dated May 30, 1995 [1]

10.19           Supplement to Private Offering Memorandum dated October 30, 1995
                [1]

10.20           Stock Option Agreement with Bay Breeze Enterprises LLC dated
                April 9, 1998 [1]

10.21           Revolving Loan Agreement, Revolving Note, Security Agreement
                with SouthTrust Bank dated May 2, 1997 [1]

10.22           Agreement between the Company and T. T. Communications, Inc.
                dated October 15, 1998 [2]

10.23           Agreement between the Company and U.S. Surgical Corporation
                dated October 28, 1998. [2]

10.24           Collaborative Agreement between the Company and Dr. William B.
                Saye dated November 16, 1998. [2]

10.25           Kiosk Information System, Inc. Purchase Order dated November 3,
                1998 [2]

10.26           Surgical Safety Products 1999 Stock Option Plan adopted January
                1999 [2]

10.27           Form of the Employee Option Agreement under the Surgical Safety
                Products 1999 Stock Option Plan dated January 1999 [2]

10.28           Form of the Director, Consultant and Advisor Option Agreement
                under the Surgical Safety Products 1999 Stock Option Plan dated
                January 1999 [2]

10.29           Verio, Inc. Access Service Agreement dated February 16, 1999.
                [2]



                                       15




10.30           Form of Investor Subscription Documents and Agreements relative
                to the April 1999 Self Directed Private Placement Offering under
                Rule 506 of Regulation D. [3]

10.31           Form of the Warrant issued pursuant to the April 1999 Self
                Directed Private Placement Offering under Rule 506 of Regulation
                D. [3]

10.32           Consulting Agreement dated April 1999 with Koritz Group, LLC.
                [3]

10.33           Agreement dated April 1999 with KJS Investment Corporation. [4]

10.34           Agreement dated May 1999 with Ten Peaks Capital Corp. [4]

10.35           Private Partner Network Agreement dated July 30, 1999 with US
                Surgical [5]

10.36           Staff/Client Leasing Agreement dated October 16, 1999, as
                amended September 15, 1999 [5]

10.37           Agreement dated July 15, 1999 with Triton Capital Inc.[6]

10.38           Effective December 30, 1999, Loan Agreement, Note, Security
                Agreement, Lender's Warrant, Agent's Warrant, Registration Rights
                Agreement and Escrow Agreement relative to the December 1999
                transaction with Thomson Kernaghan & Co., Inc. and Amendment
                thereto. [7]

10.39           Effective January 3, 2000 IBM Customer Agreement and Statement
                of Work. [7]

10.40           Investment Banking Services Agreement dated February 2, 2000
                with Dunwoody Brokerage Services Inc. [8]

10.41           Consulting Agreement dated February 15, 2000 with Global
                Development Advisors Inc. [8]

10.42           Surgical Safety Products 2000 Stock Option and Award Plan [8]

10.43           Agreement with Steel Beach Productions dated February 29, 2000
                [9].

10.44           Agreement with Horizon Marketing Group dated May 16, 2000 [10]

10.45           Agreement with EPIX dated May 25, 2000 [10]

10.46           Amendment to the Company's 2000 Stock Option and Awards Plan
                dated June 6, 2000 [10]

10.47           Revolving Loan Agreement, Revolving Note, Security Agreement
                with SouthTrust Bank dated June 7, 2000 [10]

10.48           Agreement with AORN effective July 1, 2000 [10]




                                       16




10.49           Agreement with Carver Cross dated July 6, 2000 [10]

10.50           Agreement with U.S. Surgical effective June 28, 2000 [11]

10.51           Agreement with Imagyn dated September 18, 2000 [12]

10.52           Agreement with Haemacure dated September 19, 2000 [12]

10.53           Agreement with Storz dated September 29, 2000 [12]

10.54           Agreement with Quantum dated October 6, 2000 [12]

10.55           Agreement with Stryker dated October 9, 2000 [12]

10.56           Property Lease dated October 13, 2000 [12]

10.57           Agreement with GDA dated October 25, 2000 [12]

10.58           Loan Cancellation and Settlement Agreement with Thomson
                Kernaghan & Co. Ltd. effective February 7, 2001 [13]

10.59           Term Sheet for merger with Emagicsoft Technologies Inc. dated
                February, 2001 [13]

10.60           Selective HR Solutions Agreement dated March 2001. [13]

10.61           DeRoyal Industries, Inc. Agreement dated 2001 [13]

10.62           Lock Out Agreement dated October 5, 2001 between Surgical Safety
                Products, Inc., C5 Health, Inc. and Dr. Swor. [15]

10.63           Form of the Convertible Secured Promissory Note of C5 Assumed at
                the Merger [20]

10.64           Secured Promissory Note to Millennium dated May 2001 [20]

10.65           Extension Agreement of Millennium May 2001 assumed at the Merger
                [20]

10.66           Secured Promissory Note to Millennium dated August 2001 assumed
                at the Merger [20]

10.67           Letter Agreement from Millennium extending May and August 2001
                Notes to December 31, 2002 [20]

10.68           Form of Unsecured Promissory Note due to Mr. Novak and Mr. Gray
                assumed at the Merger [20]

10.69           Letter Agreement from Mr. Novak extending due date of Unsecured
                Promissory Note to December 31, 2002 [20]

10.70           Letter Agreement from Mr. Gray extending due date of Unsecured
                Promissory Note to December 31, 2002 [20]




                                       17





10.71           Lease Agreement, Assignment and Amendment for Corporate Offices
                [20]

13.1            Definitive Proxy Statement filed February 28, 2000 [8]

16.1            Letter on change of certifying accountant pursuant to Regulation
                SK Section 304(a)(3) [16]

16.2            Letter on change of certifying accountant pursuant to Regulation
                SK Section 304(a)(3) [17]

16.3            Letter dated November 16, 2001 from Kerkering, Barbario & Co, PA
                to the SEC [18]

16.4            Letter dated November 22, 2001 from Kerkering, Barbario & Co, PA
                to the SEC [18]

16.5            Letter dated January 7, 2002 from Kerkering, Barbario & Co., PA
                to the SEC. [19]

99.1            Chief Executive Officer and Chief Financial Officer Certification
                pursuant to Section of 906 of Sarbanes-Oxley Act of 2002

[1] Previously filed with the Company's Form 10SB

[2] Previously filed with the Company's Amendment No. 1 to the Form 10SB

[3] Previously filed with the Company's Form 10QSB for the Quarter ended March
30, 1999

[4] Previously filed with the Company's Form 10QSB for the Quarter ended June
30, 1999

[5] Previously filed with the Company's Amendment No. 2 to the Form 10SB

[6] Previously filed with the Company's Form 10QSB for the Quarter ended
September 30, 1999

[7] Previously filed with the Company's Form S-3 on March 2, 2000.

[8] Previously filed with the Company's Form 10KSB for the fiscal year ended
December 31, 1999.

[9] Previously filed with the Company's Form 10QSB for the Quarter ended March
31, 2000.

[10] Previously filed with the Company's Form 10QSB for the Quarter ended June
30, 2000.

[11] Previously filed with the Company's Amendment 3 to the Form 10QSB for the
Quarter ended June 30, 2000.

[12] Previously filed with the Company's Form 10QSB for the Quarter ended
September 30, 2000.

[13] Previously filed with the Company's Form 10KSB for the fiscal year ended
December 31, 2000.

[14] Previously filed with the Company's Form 8K filed October 4, 2001

[15] Previously filed with the Company's Form 10QSB for the Quarter ended
September 30, 2001.

[16] Previously filed with the Company's Form 8K relative to change of
accountants on November 16, 2001

[17] Previously filed with the Company" Form 8K/A relative to change of
accountants on November 21, 2001

[18] Previously filed with the Company's Form 8K relative to change of
accountants on November 29, 2001

[19] Previously filed with the Company's Form 8K relative to change of
accountants on May 9, 2002




                                       18



[20] Previously filed with the Company's Form 120KSB for the fiscal year ended
December 31, 2001

     (b) Reports on Form 8-K were filed during the quarter  ended June 30, 2002
as follows:

     There were no other Form 8K filings made during this quarter.



                                       19



                SIGNATURES

In accordance with Section 12 of the Securities Exchange Act of 1934, the
registrant caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized.




                           Surgical Safety Products, Inc. (Registrant)


Date: April 4, 2003        By: /s/ R.  Paul Gray
                           R.  Paul Gray
                           Secretary, Treasurer
                           and Chief Financial Officer





                                       20




CERTIFICATIONS

I, R. Paul Gray, certify that:

1.  I have reviewed this quarterly report on Form 10QSB of Surgical Safety Products, Inc.;

2.  Based on my knowledge, this quarterly report does not contain any untrue
    statement of a material fact or omit to state a material fact necessary to
    make the statements made, in light of the circumstances under which such
    statements were made, not misleading with respect to the period covered by
    this quarterly report; and

3.  Based on my knowledge, the financial statements, and other financial
    information included in this quarterly report, fairly present in all
    material respects the financial condition, results of operations and cash
    flows of the issuer as of, and for, the periods presented in this
    quarterly report.

4. I and the issuer's other certifying officers are responsible for
   establishing and maintaining disclosure controls and procedures for
   the issuer and have:

        (i) Designed such disclosure controls and procedures to ensure that
material information relating to the issuer, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which the periodic reports are being
prepared;

        (ii) Evaluated the effectiveness of the issuer's disclosure controls
and procedures as of _______________ [a date within 90 days prior to the
filing date of the report] ("Evaluation Date"); and

        (iii) Presented in the report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. I and the issuer's other certifying officers have disclosed, based on
   our most recent evaluation, to the issuer's auditors and the audit
   committee of the board of directors (or persons fulfilling the
   equivalent function):

        (i) All significant deficiencies in the design or operation of
internal controls which could adversely affect the issuer's ability to
record, process, summarize and report financial data and have identified
for the issuer's auditors any material weaknesses in internal controls; and

        (ii) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the issuer's internal
controls; and

6. I and the issuer's other certifying officers have indicated in the
   report whether or not there were significant changes in internal
   controls or in other factors that could significantly affect internal
   controls subsequent to the date of our most recent evaluation,
   including any corrective actions with regard to significant
   deficiencies and material weaknesses.



Date:  April 4, 2003

/s/ R. Paul Gray
    R. Paul Gray
    Chief Financial Officer




                                       21




CERTIFICATIONS

I, Timothy Novak, certify that:

1.  I have reviewed this quarterly report on Form 10QSB of Surgical Safety Products, Inc.;

2.  Based on my knowledge, this quarterly report does not contain any untrue
    statement of a material fact or omit to state a material fact necessary to
    make the statements made, in light of the circumstances under which such
    statements were made, not misleading with respect to the period covered by
    this quarterly report; and

3.  Based on my knowledge, the financial statements, and other financial
    information included in this quarterly report, fairly present in all
    material respects the financial condition, results of operations and cash
    flows of the issuer as of, and for, the periods presented in this
    quarterly report.

4. I and the issuer's other certifying officers are responsible for
   establishing and maintaining disclosure controls and procedures for
   the issuer and have:

        (i) Designed such disclosure controls and procedures to ensure that
material information relating to the issuer, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which the periodic reports are being
prepared;

        (ii) Evaluated the effectiveness of the issuer's disclosure controls
and procedures as of _______________ [a date within 90 days prior to the
filing date of the report] ("Evaluation Date"); and

        (iii) Presented in the report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. I and the issuer's other certifying officers have disclosed, based on
   our most recent evaluation, to the issuer's auditors and the audit
   committee of the board of directors (or persons fulfilling the
   equivalent function):

        (i) All significant deficiencies in the design or operation of
internal controls which could adversely affect the issuer's ability to
record, process, summarize and report financial data and have identified
for the issuer's auditors any material weaknesses in internal controls; and

        (ii) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the issuer's internal
controls; and

6. I and the issuer's other certifying officers have indicated in the
   report whether or not there were significant changes in internal
   controls or in other factors that could significantly affect internal
   controls subsequent to the date of our most recent evaluation,
   including any corrective actions with regard to significant
   deficiencies and material weaknesses.



Date:  April 4, 2003

/s/ Timothy Novak
    Timothy Novak
    Chief Executive Officer



                                       22