10QSB/A 1 surgicalsept10qsba040403.htm AMENDED QUARTERLY FILING surgsept10qsba040403
                     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: September 30, 2002

                           Commission file no. 0-24921

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

                         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 Street, Number 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:

                            Name of each exchange on
             Title of each class                  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
                               September 30, 2002
                                   (Unaudited)

                         ASSETS

Current assets

     Total current assets                                  $      3,353

Property and equipment (net of accumulated depreciation
   of $4,651)                                                    10,349 

Other assets                                                     11,250 

                                                           $     24,952
                                                           =============

          LIABILITIES AND STOCKHOLDERS' (DEFICIT)

Current liabilities:
  Accounts payable and accrued expenses                    $   981,988
  Convertible notes payable                                     57,500
  Deferred revenue                                              50,000
  Stockholder advances                                         158,263
  Notes payable - shareholders                                  39,000
  Other convertible notes payable                              341,442
  Other notes payable                                          966,003 

      Total current liabilities                              2,594,196 

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)                                     (7,481,421)
                                                            (2,569,244)
                                                           $    24,952
                                                           ============







See the accompanying notes to the consolidated financial statements.



                                       4



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

                                                     Three Months              Nine Months
                                                  2002         2001        2002          2001

Revenues                                       $     5,263   $   3,156   $   18,536    $  188,995 

Costs and expenses:
 Costs of revenues earned                            4,380           -       17,650        18,093
 Loss from impairment and disposition
  of property and equipment                              -         174       70,420        72,147
 Interest                                           29,288       3,164       87,162        23,461
 Other operating expenses                          104,226      12,697      443,663       314,350 
                                                   137,894      16,035      618,895       428,051 

Net (loss)                                     $  (132,631)  $ (12,879)  $ (600,359)   $ (239,056)
                                               ============  ==========  ===========   ===========

Per share information - basic and fully diluted

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

Weighted average shares outstanding             49,047,941   20,022,889  46,059,560    18,956,190
                                               ============  ==========  ===========   ===========



See the accompanying notes to the consolidated financial statements.



                                       5



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

                                                     2002         2001
Cash flows from operating activities:
  Net cash (used in) operating activities         $(125,396)   $(139,130)

Cash flows from investing activities:
  Net cash provided by investing activities               -            - 

Cash flows from financing activities:
  Net cash provided by financing activities         125,500       86,883 

Increase (decrease) in cash and cash equivalents        104      (52,247)

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

Cash and cash equivalents, end of period          $     353    $       -
                                                  ==========   ==========




See the accompanying notes to the consolidated financial statements.


                                       6




                         SURGICAL SAFETY PRODUCTS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 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 $600,359 for the nine months ended September 30, 2002 and has
stockholders' and working capital deficits of $2,569,244 and $2,590,843
respectively at September 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 September
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 September 30, 2002 the
Company recorded a loss on the disposal of property and equipment aggregating
$70,420 for which it received nominal consideration. At September 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 September 30, 2002, a related entity infused $96,500 for
working capital in exchange for common stock.  In addition, we received additional
working capital advances of approximately $40,000 from certain stockholders during
the three months ended September 30, 2002.

(6) Stockholders' (Deficit)

During the period ended September 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 September 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
September 30, 2002.


                                       8


(8) Subsequent Events

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

In December 2002, the Company with the 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 has 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 lease 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 $600,359 for the nine months ended September 30, 2002 and has
stockholders' and working capital deficits of $2,569,244 and $2,590,843
respectively at September 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 September 30, 2002 were $5,263 compared to
$3,156 for the same period last year, an increase of $2,107. Net sales for the
nine months ended September 30, 2002 were $18,536 compared to $188,995 for the
same period last year, a decrease of $170,459. 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 September 30, 2002 amounted to $883, or 17%
of net sales compared to $3,156 or 100% of net sales for the same period last
year. For the nine months ended September 30, 2002, gross profit margin was $886
or 5% of net sales compared to $170,912 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 nine months ended September 30, 2002 as compared to $72,147
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 $26,124 to $29,288 for the quarter ended September
30, 2002 compared to $3,164 for the same period last year. For the nine months
ended September 30, 2002 interest expense increased by $63,701 to $87,162
compared to $23,461 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 $91,529 to $104,226 for the quarter ended
September 30, 2002 compared to $12,697 for the same period last year. For the
nine months ended September 30, 2002 these expenses increased by $129,313 to
$443,663 compared to $314,350 for the same period in 2001. This increase is
mainly due to increased payroll accruals.

Net loss for the quarter ended September 30, 2002 was $132,631 compared to
$12,879 for the same period last year. For the nine months ended September 30,
2002 net loss was $600,359 compared to $239,056 for the same period in 2001.

Liquidity and Capital Resources

As of September 30, 2002 the Company has minimal cash or current assets. In
addition it has a working capital deficit of $2,590,843 on September 30, 2002.

The Company's sole source of funding during 2002 was from working capital
advances from an affiliates and shareholders aggregating $131,500. Certain of
these advances were converted into common shares of the Company during the nine
months ended September 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 expenditures 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, IBM served the Company with a Summons and Complaint 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 September
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 September 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 September 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




CERTIFICATION ACCOMPANYING PERIODIC REPORT PURSUANT TO SECTION 302 OF THE
        SARBANES-OXLEY ACT OF 2002

I, R. Paul Gray, certify that:

1. I have reviewed this quarterly report on Form 10-QSB 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;

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
Surgical Safety Products, Inc. as of, and for, the periods presented in this
quarterly report.

4. I am responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)for Surgical
Safety Products, Inc. and have:
a) designed such disclosure controls and procedures to ensure that material
information relating to Surgical Safety Products, Inc., including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being prepared;
b) evaluated the effectiveness of Surgical Safety Products, Inc.'s disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. I have disclosed, based on my most recent evaluation, to Surgical Safety
Products, Inc.'s auditors and the audit committee of Surgical Safety Products,
Inc.'s board of directors (or persons performing the equivalent functions):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect Surgical Safety Products, Inc.'s ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in Surgical Safety Products, Inc.'s
internal controls; and

6. I have indicated in this quarterly report whether 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
April 4, 2003

                                       21


CERTIFICATION ACCOMPANYING PERIODIC REPORT PURSUANT TO SECTION 302 OF THE
        SARBANES-OXLEY ACT OF 2002

I, Tim Novak, certify that:

1. I have reviewed this quarterly report on Form 10-QSB 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;

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
Surgical Safety Products, Inc. as of, and for, the periods presented in this
quarterly report.

4. I am responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)for Surgical
Safety Products, Inc. and have:
a) designed such disclosure controls and procedures to ensure that material
information relating to Surgical Safety Products, Inc., including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being prepared;
b) evaluated the effectiveness of Surgical Safety Products, Inc.'s disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. I have disclosed, based on my most recent evaluation, to Surgical Safety
Products, Inc.'s auditors and the audit committee of Surgical Safety Products,
Inc.'s board of directors (or persons performing the equivalent functions):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect Surgical Safety Products, Inc.'s ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in Surgical Safety Products, Inc.'s
internal controls; and

6. I have indicated in this quarterly report whether 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/    Tim Novak
Tim Novak
Chief Executive Officer
April 4, 2003


                                       22