-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, J5kiKzlUqxXGwhmGnU+jgCjZpP+D7iw9oHZKdWlKbV/v9Cys+NUlvx6OvzoJv0wP PmnpjYNYfzt1DdOYRcQlEQ== 0001070876-03-000066.txt : 20030520 0001070876-03-000066.hdr.sgml : 20030520 20030520152706 ACCESSION NUMBER: 0001070876-03-000066 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030331 FILED AS OF DATE: 20030520 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SURGICAL SAFETY PRODUCTS INC CENTRAL INDEX KEY: 0001063530 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090] IRS NUMBER: 650565144 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-24921 FILM NUMBER: 03712380 BUSINESS ADDRESS: STREET 1: 8374 MARKET STREET STREET 2: SUITE 439 CITY: BRADENTON STATE: FL ZIP: 34202 BUSINESS PHONE: 9413603039 MAIL ADDRESS: STREET 1: 8374 MARKET STREET STREET 2: SUITE 439 CITY: BRADENTON STATE: FL ZIP: 34202 10QSB 1 surgical10qsb0303.htm QUARTERLY FILING surgical10qsb0303
                     U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB
(Mark One)

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

            For the quarterly period ended March 31, 2003

        [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934

            For the transition period from _______________ to ________________

            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 Street, Number 439
Bradenton, Florida                                          34202
(Address of principal executive offices)                  (Zip Code)

                                 (941) 360-3039
                (Issuer's Telephone Number, Including Area Code)

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

                                      None

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

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


        As of May 20, 2003, there are 50,641,501 shares of voting common stock of
the registrant issued and outstanding.



    Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]


                                       1



                                      INDEX


               Part I.  FINANCIAL INFORMATION (UNAUDITED)

               Item 1.  Financial Statements

                        Condensed Consolidated Balance Sheet                 4

                        Condensed Consolidated Statements of Operations      5

                        Condensed Consolidated Statements of Cash Flows      6

                        Notes to Consolidated Financial Statements           7

               Item 2.  Management's Discussion and Analysis of Financial    10
                          Condition and Results of Operations

               Item 3.  Controls and Procedures                              12

               Part II. OTHER INFORMATION

               Item 1.  Legal Proceedings                                    13

               Item 2.  Changes in Securities                                13

               Item 3.  Defaults Upon Senior Securities                      14

               Item 4.  Submission of Matters to a Vote of Security Holders  14

               Item 5.  Other Information                                    14

               Item 6.  Exhibits and Reports on Form 8-K                     14

               SIGNATURES                                                    15

               CERTIFICATIONS                                                16



                                       2


                          PART I. FINANCIAL INFORMATION



        This Report contains certain forward-looking statements of the intentions,
hopes, beliefs, expectations, strategies, and predictions of Surgical Safety
Products, Inc. or its management with respect to future activities or other
future events or conditions 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. These statements are usually identified by the use of words such as
"believes," "will," "anticipates," "estimates," "expects," "projects," "plans,"
"intends," "should," "could," or similar expressions. Investors are cautioned
that all forward-looking statements involve risks and uncertainty, including,
without limitation, variations in quarterly results, volatility of Surgical
Safety Products, Inc.'s stock price, development by competitors of new or
competitive products or services, the entry into the market by new competitors,
the sufficiency of Surgical Safety Products, Inc.'s working capital and the
ability of Surgical Safety Products, Inc. to retain management, to implement its
business strategy, to assimilate and integrate any acquisitions, to retain
customers or attract customers from other businesses and to successfully defend
itself in ongoing and future litigation. Although Surgical Safety Products, Inc.
believes that the assumptions underlying the forward-looking statements
contained in this Report are reasonable, any of the assumptions could be
inaccurate, and, therefore, there can be no assurance that the forward-looking
statements included in this Report will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking statements included in
this Report, the inclusion of such information should not be regarded as a
representation by Surgical Safety Products, Inc. or any other person that the
objectives and plans of Surgical Safety Products, Inc. will be achieved. Except
for its ongoing obligation to disclose material information as required by the
federal securities laws, Surgical Safety Products, Inc. undertakes no obligation
to release publicly any revisions to any forward-looking statements to reflect
events or circumstances after the date of this Report or to reflect the
occurrence of unanticipated events. Accordingly, the reader should not rely on
forward-looking statements, because they are subject to known and unknown risks,
uncertainties, and other factors that may cause our actual results to differ
materially from those contemplated by the forward-looking statements.



                                       3


Item 1. Financial Statements



                         Surgical Safety Products, Inc.
                      Condensed Consolidated Balance Sheet
                                 March 31, 2003
                                   (Unaudited)
________________________________________________________________________________

ASSETS

CURRENT ASSETS:
   Cash                                                    $      67,627
   Accounts receivable (net of allowance for doubtful
    accounts of $0.00)                                            11,300 
     Total current assets                                         78,927 

TOTAL ASSETS                                               $      78,927
                                                           ==============

LIABILITIES AND STOCKHOLDERS' DEFICIT


Current liabilities:
  Accounts payable and accrued and other liabilities       $     870,406
  Stockholder advances                                           162,763
  Convertible notes payable                                       50,000
  Notes payable - related party                                   26,000
  Other notes payable                                             33,009 
      Total current liabilities                                1,142,178 

STOCKHOLDERS' DEFICIT:
  Series A Preferred stock, $.001 par value, 4,000,000
    shares authorized; 3,990,000 shares issued and
    outstanding                                                    3,990
  Common stock, $.001 par value, 100,000,000 shares
     authorized; 50,641,501 shares issued and outstanding         50,642
  Additional paid-in capital                                   6,569,816
  Deficit                                                     (7,687,699)
       Total stockholders' deficit                            (1,063,251)

Total                                                      $      78,927
                                                           ==============
________________________________________________________________________________

See the accompanying notes to the consolidated financial statements.


                                       4



                         Surgical Safety Products, Inc.
                 Condensed Consolidated Statements Of Operations
                   Three Months Ended March 31, 2003 and 2002
                                   (Unaudited)

________________________________________________________________________________

                                                 Three                 Three
                                             Months Ended          Months Ended
                                            March 31, 2003        March 31, 2002

Revenues                                    $      10,733        $       6,470 

Costs and expenses:
   Costs of revenues earned                         4,750                9,184
   Interest                                         2,988               28,776
   Other operating expenses                        89,813              146,186 
      Total expenses                               97,551              184,146 

NET LOSS                                    $     (86,818)       $    (177,676)
                                            ==============       ==============

Per share information - basic and
  fully diluted                             $       (0.00)       $       (0.00)
                                            ==============       ==============

Weighted average shares outstanding            50,641,501           42,324,083
                                            ==============       ==============

________________________________________________________________________________

See the accompanying notes to the consolidated financial statements.


                                       5




                         Surgical Safety Products, Inc.
                 Condensed Consolidated Statements of Cash Flows
                   Three Months Ended March 31, 2003 and 2002
                                   (Unaudited)
________________________________________________________________________________


                                                          2003          2002   
Cash flows from operating activities-
  Net cash (used in) operating activities             $   (22,420)  $  (61,749)

Cash flows from financing activities-
  Net cash provided by financing activities                90,000       61,500 

Increase (decrease) in cash and cash equivalents           67,580         (249)

Cash and cash equivalents, beginning of period                 47          249 

Cash and cash equivalents, end of period              $    67,627   $        -
                                                      ============  ===========

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:

Conversion of accrued payroll to preferred stock      $   200,000   $        -
                                                      ============  ===========
Conversion of convertible notes payable to equity     $     7,500   $        -
                                                      ============  ===========
________________________________________________________________________________


See the accompanying notes to the consolidated financial statements.


                                       6


                         SURGICAL SAFETY PRODUCTS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2003
                                   (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 subsidiaries - C5 Health, Inc. and Power3
Medical, 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, 2002 and for the two years ended December 31, 2002 and 2001,
including notes thereto included in the Company's December 31, 2002 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 recurring losses from
operations and has stockholders' and working capital deficits of $1,063,251 at
March 31, 2003.

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. Management's plans include searching for an
appropriate merger and/or acquisition target. In the interim, management
will attempt to fund operations by raising debt or equity capital through
borrowings and/or private placements. However, there is no assurance that


                                       7


the Company will be successful in their efforts to raise capital and/or to
locate a suitable merger or acquisition target, or that such merger or
acquisition can be accomplished on acceptable terms. These factors, among
others, indicate that the Company may be unable to continue as a going concern
for a reasonable period of time.

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.

(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 are calculated by
dividing net income (loss) by the weighted average number of common shares
outstanding for the period. Diluted earnings (loss) per share are 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) 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.

(4)  Related Party Transactions

During the respective three month periods ended March 31, 2003 and 2002,
certain related parties infused $3,000 and $61,500 for working capital.

(5)  Stockholders' (Deficit)

During the period ended March 31, 2003 the Company issued 750,000 shares of
its common stock as full consideration of certain convertible notes totaling
$7,500.


                                       8


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    Entering a merger with and into its wholly owned subsidiary known as
         Power3 Medical, Inc.

In addition, on March 31, 2003 the Company entered a series of consultant
relationships to assist in business development and company and product
acquisitions. These consultant agreements are encompassed in the 2003 Stock
Compensation Plan. These consultants have received warrants for 8,000,000
shares of common stock registered under an S-8 filing on April 15, 2003.


                                        9


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

Overview

The Company's (SSPD: OTCBB) overall mission is the research, development,
production and distribution of innovative products and services for healthcare.
The Company's sole current product is a traditional safety product called
SutureMate(R)surgical safety device. The Company intends to develop additional
products and services relating to providing a safer and more efficient
environment for healthcare workers, manufacturers and patients and to expand its
operations to provide products and services for immediate communication and
access to information in the healthcare industry while complying with expanding
patient confidentiality regulations. However, no additional products are
currently under development and such additional planned products may never be
developed or offered.

The Company was relatively inactive during much of 2002 and the first
quarter of 2003 as it sought a merger partner and working capital to carry out
its business plan. The Company currently has a single product, which accounts
for all of its revenue generating operations. This product, the
SutureMate(R)surgical safety device, a patented, disposable, surgical assist
device, was initially introduced in 1993. The SutureMate(R)surgical safety
device allows the surgeon to use a safer, more efficient method of surgical
stitching and has features to prevent accidental needle sticks and assist in
finishing surgical sutures with one hand, including a foam needle-cushion and a
suture-cutting slot. The Company expects to automate the manufacture of the
SutureMate(R) surgical safety device if sales volume can be increased to
economic levels.

The Company has other products including patented medical devices and other
non-patented digital products which to date have not been fully developed and
have not created significant revenue. The Company does not presently plan to
further develop these products unless it can secure strategic alliances to
assist in development and commercialization of such products. Because, these
products may never be developed to a state of commercial significance or
viability, the Company is seeking to expand its business through the acquisition
of additional products or additional lines of business that do not require
significant development. There can be no assurance that the Company will be
successful in its efforts.

Corporate Developments

On March 31, 2003, the Company's board of directors authorized and approved
several resolutions (the "Restructure Plan"). The Restructure Plan includes:
the creation of a 2003 Stock Compensation Plan and filing of Form S-8 to
register the shares under the 2003 Stock Compensation Plan, the authorization
of a Series A Preferred Stock consisting of 4,000,000 shares, issuance of
2,660,000 of Series A Preferred Stock in consideration of accrued and unpaid
salary totaling $200,000 to officer's Tim Novak and Paul Gray of the Company,
issuance of 1,330,000 shares of Series A Preferred Stock to Mr. Jerry Leonard
in consideration of $100,000 cash, the incorporation of a subsidiary to be
known as Power3 Medical, Inc. (which has been incorporated under the laws
of the state of Nevada as a wholly owned subsidiary of the


                                       10


Company), approval of a merger agreement with and into its Power3 Medical,
Inc. subsidiary (expected to be effective June 19, 2003), and the issuance of
one share of Power3 Medical, Inc. to the shareholders of the Company in exchange
for each 50 shares of the Company's common stock held on the date of the merger.

On March 31, 2003 the Company entered a series of consultant relationships
to assist in business development and company and product acquisitions. These
consultant agreements are encompassed in the 2003 Stock Compensation Plan as
described in preceding paragraph. These consultants will receive warrants for
8,000,000 shares of common stock registered under the S-8 filing described
above. The following table describes each of the terms of each such agreement.


  Consultant                         Services                          Compensation           Duration

Resource Capital         sole   restructuring    agent,    general   50,000 unregistered      Evergreen
Management, Inc.         co-ordination    of   outside    contract    shares of Common         30 days
                         services,   identification   of   outside          Stock            termination
                         resources, restructure supervision                                     notice

Claudia Arps             electronic  commerce  marketing  strategy  Warrants to purchase       One year
                         and  implementation,  business  structure   1,600,000 shares of
                         analysis    and    execution,    internal      Common Stock
                         policies and procedures  development  and
                         implementation

Heinrich Hessels         market    analysis,    negotiation    and  Warrants to purchase       One year
                         relationship  management,  operation  and   1,600,000 shares of
                         workflow  analysis  and  design,   market      Common Stock
                         perception and brand positioning

Karin Hoermann           business     position     analysis    and  Warrants to purchase       One year
                         definition,   brand   and   new   venture   1,600,000 shares of
                         launches,     operation     functionality      Common Stock
                         analysis and consolidation

Paul McAteer             employee    relations    and    incentive  Warrants to purchase       One year
                         compensation   plans  advice,   expansion   1,600,000 shares of
                         strategies and  implementation  including      Common Stock
                         services   and   geographical   analysis,
                         merger  and   acquisition   analysis  and
                         strategy development



                                       11



  Consultant                         Services                          Compensation           Duration


Jack Sherman             marketing  strategy  and  implementation,  Warrants to purchase       One year
                         market analysis and expansion,  strategic   1,600,000 shares of
                         alliance analysis and development              Common Stock

        The warrants issued pursuant to the forgoing consulting agreements
contain provisions that would prevent the reduction in the number of shares
of stock that would be issued upon a reverse split, combination, reclassification
or other reduction in the number of shares of the Company outstanding.

Results of Operations for the Three Months Ended March 31, 2003 and 2002

        Revenues for the quarter ended March 31, 2003 were $10,733 compared to
$6,470 for the same period last year, an increase of $4,263. The increase is
attributable to an increase in sales of the SutureMate(R)surgical safety device
during the first quarter of 2003.

        Interest expense decreased by $25,788 to $2,988 for the quarter ended
March 31, 2003 compared to $28,776 for the same period last year. The decrease
resulted primarily because certain debt was converted to equity in December
2002, and certain other debt was considered extinguished as of December 31,
2002.

        Other operating expenses decreased by $56,373 to $89,813 for the quarter
ended March 31, 2003 compared to $146,186 for the same period last year. This
decrease is mainly due to decreased payroll accruals and a decrease of rent
expense as a result of the termination of the company's previous office
location.

        Net loss for the quarter ended March 31, 2003 was $86,818 compared to
$177,676 for the same period last year.

Liquidity and Capital Resources

        As of March 31, 2003 the Company has minimal cash or current assets. In
addition it has a stockholders' deficit of $1,063,251 on March 31, 2003.

        The Company's sole source of funding during the first quarter of 2003 was
from an investment of $100,000 in Preferred Series A stock.

        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 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

Item 3. Controls and Procedures

        Based on their evaluation, as of a date within 90 days of the filing date
of this Form 10-QSB, the Company's Chief Executive Officer and Chief Financial
Officer have concluded that the Company's disclosure controls and procedures (as
defined in Rule 13a-14(c) and 15d-14(c) under the Securities Exchange Act of
1934, as amended) are effective. There have been no significant changes in
internal controls or in other factors that could significantly affect these
internal controls subsequent to the date of this evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.



                                       12



debt or equity financing at this time.

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


                           Part II. OTHER INFORMATION

Item 1. Legal Proceedings

        On March 25, 2002, the Company agreed to pay IBM $20,000 on or before May
31, 2002 as settlement for certain litigation. The settlement was predicated on
the Company paying this amount by May 31, 2002. However, the Company was unable
to pay these funds, and as such, the settlement amount was increased to $100,000
plus interest commencing June 1, 2002. The Company is liable to IBM for $100,000
plus statutory interest from June 1, 2002 as it has missed its threshold payment
date. 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. The Company charged the additional
$80,000 due to the vendor to operations during 2002.

On January 30, 1998, the Company entered into an agreement with a health care
provider (the "Provider") in which the Provider was to perform clinical testing
of ten surgical or medical products submitted by the Company. The agreement,
which has been personally guaranteed by the Company's predecessor CEO, expired
on January 30, 2003 and required the Company to pay the Provider a fixed amount
of $25,000 for each of the ten studies. The agreement further provided that the
Company was obligated to pay the $250,000 even if the Company elected to forego
having the Provider perform the clinical testing. The Company has not submitted
any products for clinical testing during the term of the agreement and/or paid
any amounts due under this arrangement. For various reasons, the Provider has
effectively agreed to waive their rights under the agreement provided that the
Company either (1) enters into a new profit participation agreement with the
Company under which the Provider would receive no less than $250,000 within a
four year period commencing on the date of such agreement or (2) makes an
immediate payment of $50,000 to the Provider. As a result thereof, the Company
has recorded a $50,000 liability as of December 31, 2002, which amount
represents the probable amount of the liability existing at such time. If the
Company elects to enter a new profit participation agreement, the new agreement
is expected to retain the existing personal guaranty of the Company's previous
CEO. Neither the Company nor the Provider has filed any litigation relating to
this contract.

        The Company knows of no other significant 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

        During the quarter ended March 31, 2003, the Company authorized a Series A
Preferred Stock consisting of 4,000,000 shares, issuance of 2,660,000 of Series
A Preferred Stock in consideration of accrued and unpaid salary totaling
$200,000 to officer's Tim Novak and Paul Gray of the Company and issuance of



                                       13



1,330,000 of Series A Preferred Stock to Mr. Jerry Leonard in consideration of
$100,000 cash. The Series A Preferred Stock was issued in reliance on the
exemption from registration provided by Section 4(2) of the Securities Act of
1933, as amended, because of the limited number of offerees, the historical
relationship of the offerees to the Company and the absence of any public
advertising or solicitation.

During the quarter ended March 31, 2003, the Company issued 750,000 shares
of voting common stock in consideration of the conversion of $7,500 of
convertible notes payable. The common stock was issued in reliance on the
exemption from registration provided by Section 4(2) of the Securities Act of
1933, as amended, because of the limited number of offerees, the historical
relationship of the offerees to the Company and the lack of advertising and in
reliance of the exemption from registration provided by Section 3(a)(9) of the
Securities Act of 1933, as amended, since both the common stock and the
outstanding notes payable were securities issued by the same person.

Item 3. Defaults Upon 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 March 31, 2003.

Item 5. Other Informations

None

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits

None

(b) Reports on Form 8-K

On January 02, 2003, the Registrant filed a Form 8-K dated January 02, 2003
reporting the exchange of outstanding convertible notes for common stock under
and Item 5.




                                       14



On April 8, 2003, the Registrant filed a Form 8-K dated March 31, 2003 reporting
the adoption of a restructure plan, change in control of the Company and
intention to re-incorporate in Nevada under Items 1 and 7.


                                   SIGNATURES

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

                                    Surgical Safety Products, Inc. (Registrant)


Date: May 20, 2003                  By: /s/ Timothy Novak
                                        Timothy Novak
                                        Chairman and Chief Executive Officer


        Pursuant to the requirements of the Exchange Act, this report has been
signed by the following persons in the capacities and on the dates indicated.

Signature                       Title                           Date

/s/ Timothy Novak         Chairman and Chief                   May 20, 2003
Timothy Novak             Executive Officer



/s/ R. Paul Gray          Director, Secretary, Treasurer       May 20, 2003
R. Paul Gray              and Chief Financial Officer





                                       15



                                  CERTIFICATION

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 annual 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 annual report;
        3. Based on my knowledge, the financial statements, and other financial
           information included in the this annual report, fairly present in all
           material respects the financial condition, results of operations and
           cash flows of the registrant as of, and for the periods presented in
           this annual report;
        4. The registrant's other certifying officers and I are responsible for
           establishing and maintaining disclosure controls and procedures for
           the registrant and have:
                a. Designed such disclosure controls and procedures to ensure that
                   material information relating to the registrant, including the
                   consolidated subsidiaries, is made known to us by others within
                   those entities, particularly during the period in which this
                   annual report is being prepared;
                b. Evaluated the effectiveness of the registrant's disclosure
                   controls and procedures as of a date within 90 days prior to the
                   filing of this annual report; and
                c. Presented in this annual report our conclusions about the
                   effectiveness of the disclosure controls and procedures based on
                   our evaluation noted preceding;
        5. The registrant's other certifying officers and I have disclosed, based
           on our most recent evaluation, to the registrant's auditors:
                a. All significant deficiencies in the design or operation of
                   internal controls which could adversely affect the registrant'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 the registrant's
                   internal controls; and
        6. The registrant's other certifying officers and I have indicated in
           this annual 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: May 20, 2003

                                                        /s/ Timothy Novak
                                                        By: Timothy Novak
                                                        Title: Chief Executive Officer


                                       16




                                  CERTIFICATION

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 annual 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 annual report;
        3. Based on my knowledge, the financial statements, and other financial
           information included in the this annual report, fairly present in all
           material respects the financial condition, results of operations and
           cash flows of the registrant as of, and for the periods presented in
           this annual report;
        4. The registrant's other certifying officers and I are responsible for
           establishing and maintaining disclosure controls and procedures for
           the registrant and have:
                a. Designed such disclosure controls and procedures to ensure that
                   material information relating to the registrant, including the
                   consolidated subsidiaries, is made known to us by others within
                   those entities, particularly during the period in which this
                   annual report is being prepared;
                b. Evaluated the effectiveness of the registrant's disclosure
                   controls and procedures as of a date within 90 days prior to the
                   filing of this annual report; and
                c. Presented in this annual report our conclusions about the
                   effectiveness of the disclosure controls and procedures based on
                   our evaluation noted preceding;
        5. The registrant's other certifying officers and I have disclosed, based
           on our most recent evaluation, to the registrant's auditors:
                a. All significant deficiencies in the design or operation of
                   internal controls which could adversely affect the registrant'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 the registrant's
                   internal controls; and
        6. The registrant's other certifying officers and I have indicated in
           this annual 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: May 20, 2003

                                                        /s/ R. Paul Gray
                                                        By: R. Paul Gray
                                                        Title: Chief Financial Officer


                                       17


EX-99.1 3 novak99.htm NOVAK SARBANES OXLEY ACT novak99exhibit
                                 CORRESPONDENCE
                      Certification Pursuant to 906 by CEO




CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1250,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the quarterly report of Surgical Safety Products, Inc. (the
"Company") on Form 10-QSB for the period ending March 31, 2003 as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), I, Timothy
Novak, Chief Executive Officer of the Company, certify, to the best of my
knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of the Sarbanes-Oxley Act of 2002, that:

The Report fully compiles with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and

The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company.



                                                 /s/ Timothy Novak
                                                 Timothy Novak

                                                 Chief Executive Officer
                                                 Surgical Safety Products, Inc.
May 20, 2003


EX-99.2 4 gray99.htm GRAY SARBANES OXLEY ACT gray99exhibit

                                 CORRESPONDENCE
                      Certification Pursuant to 906 by CFO




CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1250,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the quarterly report of Surgical Safety Products, Inc. (the
"Company") on Form 10-QSB for the period ending March 31, 2003 as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), I, R. Paul
Gray, Chief Financial Officer of the Company, certify, to the best of my
knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of the Sarbanes-Oxley Act of 2002, that:

The Report fully compiles with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and

The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company.



                                                    /s/ R. Paul Gray
                                                    R. Paul Gray

                                                    Chief Financial Officer
                                                    Surgical Safety Products, Inc.
May 20, 2003

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