SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported): August 1, 2000 FIRST SCIENTIFIC, INC. (Exact name of registrant as specified in this Charter) Delaware 0-24378 33-0611745 ---------------------------- ----------------------- ------------------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 1877 West 2800 South, Suite 200, Ogden, Utah 84401 -------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's Telephone Number, Including Area Code: (801) 393-5781 ITEM 4. Change in Registrant's Certifying Accountant. On August 1, 2000, First Scientific, Inc. (the "Company") engaged the accounting firm of Arthur Andersen, LLP ("Andersen ") as our independent public accountants to review our interim financial statements beginning with our fiscal quarter ended June 30, 2000 and to audit our financial statements beginning with our fiscal year ending December 31, 2000. The appointment of new independent public accountants was approved by the Company's Audit Committee and Board of Directors. We amicably concluded our relationship with our former independent public accountants, Hansen, Barnett & Maxwell, a professional corporation ("HB&M"), effective with the appointment of Andersen. Prior to the appointment of Andersen, the Registrant did not consult with Andersen on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. During the two most recent fiscal years ended December 31, 1999 and 1998, and the interim period subsequent to December 31, 1999, there were no disagreements with HB&M on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have caused HB&M to make references in their report to such disagreements. HB&M's reports on the financial statements for the past two years have contained no adverse opinion or disclaimer of opinion and were not modified as to audit scope or accounting principles, except that HB&M's report dated March 2, 2000 contained an explanatory paragraph regarding our ability to continue as a going concern. We have provided HB&M with a copy of this disclosure and requested that they furnish a letter addressed to the Securities and Exchange Commission (the "Commission") stating whether they agree with the above statements. (A copy of the letter addressed to the Commission is filed as Exhibit 1.0 to this report on Form 8-K.) ITEM 7. Financial Statements and Exhibits Exhibit 1.0. Letter from Hansen Barnett & Maxwell dated August 7, 2000 regarding 8-K disclosure. 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 hereunto duly authorized. FIRST SCIENTIFIC, INC. (Registrant) Date: August 7, 2000 By: /s/ Randall L. Hales -------------------- Randall L. Hales, President and Chief Executive Officer Date: August 7, 2000 By: /s/ John L. Theler ------------------ John L. Theler, CFO Principal Financial Officer -2-

Pro First Forma Pro Scientific PureSoft Adjustments Forma -------------- -------------- ------------ ------------ ASSETS CURRENT ASSETS Cash $ 881,528 $ 66,006 (D)$ 900,000 (A) (119,000) $ 1,728,534 Investments in securities available for sale 110,509 -- -- 110,509 Other current assets 67,088 43,758 -- 110,846 Note receivable 7,248 -- -- 7,248 Goodwill -- -- (A) 571,449 571,449 ----------- ---------- --------- ----------- Total Current Assets 1,066,373 109,764 1,352,449 2,528,586 ----------- ---------- --------- ----------- NET EQUIPMENT 190,626 16,300 (A) 6,760 213,686 Deposit on PureSoft Purchase 611,779 -- (A) (611,779) -- Other assets 34,750 -- -- 34,750 ----------- ---------- --------- ----------- TOTAL ASSETS $ 1,903,528 $ 126,064 $ 747,430 $ 2,777,022 =========== ========== ========= =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 113,503 $ 14,370 $ -- $ 127,873 Other current liabilities 36,483 6,264 -- 42,747 Short-term note payable -- -- (A) 149,301 149,301 Payable to First Scientific -- 300,000 (A) (300,000) - Related party loans payable -- 79,955 -- 79,955 ----------- ---------- --------- ----------- Total Current Liabilities 149,986 400,589 (150,699) 399,876 LONG-TERM LIABILITIES 11,970 - - 11,970 ----------- ---------- --------- ----------- Total Liabilities 161,956 400,589 (150,699) 411,846 ----------- ---------- --------- ----------- STOCKHOLDERS' EQUITY Preferred stock -- -- (D) 583,783 583,783 Common stock 20,721 -- -- 20,721 Additional paid-in capital 8,961,591 -- (A) 93,349 (D) 471,966 9,526,906 Members' equity -- 10,000 (A) (10,000) -- Receivable from stockholders -- (181,000) -- (181,000) Unrealized loss on investment in securities (1,205) -- -- (1,205) Unearned compensation (309,408) -- (A) (200,000) (509,408) Accumulated deficit (6,930,127) (103,525) (A) 103,525 (A) 11,255 (D) (155,749) (7,074,621) ----------- ---------- --------- ----------- Total Stockholders' Equity 1,741,572 (274,525) 898,129 2,365,176 ----------- ---------- --------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,903,528 $ 126,064 $ 747,430 $ 2,777,022 =========== ========== ========= ===========

Pro Pro First Forma Forma Scientific PureSoft Adjustments Results -------------- -------------- ------------ ----------- Revenues $ 65,175 $ 39,438 $ -- $ 104,613 Cost of Sales 29,798 12,899 -- 42,697 ----------- ----------- --------- ----------- Gross profit 35,377 26,539 -- 61,916 ----------- ----------- --------- ----------- Operating expenses 741,720 67,398 -- 809,118 Amortization of goodwill -- -- (B) 28,572 28,572 ----------- ----------- --------- ----------- Total Expenses 741,720 67,398 28,572 837,690 ----------- ----------- --------- ----------- Loss from Operations (706,343) (40,859) (28,572) (775,774) Interest Expense (1,753) (1,391) -- (3,144) Interest Income 9,030 -- -- 9,030 ----------- ----------- --------- ----------- Net Income (Loss) (699,066) (42,250) (28,572) (769,888) Preferred Dividends -- -- (E) (20,000) (20,000) ----------- ----------- --------- ----------- Loss Applicable to Common Shares $ (699,066) $ (42,250) $ (48,572) $ (789,888) =========== =========== ========= =========== Basic and diluted loss per common share $ (0.03) $ (0.04) =========== =========== Weighted average number of common shares used in per share calculation 20,481,015 20,481,015 =========== ===========

Pro Pro First Forma Forma Scientific PureSoft Adjustments Results -------------- -------------- ------------ ----------- Revenues $ 553,631 $ 94,591 $ -- $ 648,222 Cost of Sales 148,223 38,896 -- 187,119 ----------- ----------- --------- ----------- Gross profit 405,408 55,695 -- 461,103 Operating expenses 1,761,537 107,360 1,868,897 Amortization of goodwill -- -- (B) 101,452 101,452 ----------- ----------- --------- ----------- Total Expenses 1,761,537 107,360 101,452 1,970,349 ----------- ----------- --------- ----------- Loss from Operations (1,356,129) (51,665) (101,452) (1,509,246) Interest expense (4,485) (4,873) -- (9,358) Interest income 32,643 -- -- 32,643 Realized loss on investment in securities (140,346) -- -- (140,346) ----------- ----------- --------- ----------- Net Income (Loss) (1,468,317) (56,538) (101,452) (1,626,307) Preferred dividends -- -- (D)(471,966) (E) (70,000) (541,966) ----------- ----------- --------- ----------- Net loss applicable to common shares $(1,468,317) $ (56,538) $(643,418) $(2,168,273) =========== =========== ========= =========== Basic and diluted loss per common share $ (0.07) $ (0.11) =========== =========== Weighted average number of common shares used in per calculation 20,182,373 20,182,373 =========== ===========

Amount Imputed Acquisition Date Paid/Payable Description of Consideration Paid/Payable Interest Cost ---------------- ---------------------------- ------------ ---------- ---------- 03/15/2000 Cash payment $ 350,000 $ 6,439 $ 356,439 03/15/2000 87,534 warrants 261,779 4,816 266,595 03/15/2000 8-1/2% promissory note 156,381 (7,080) 149,301 06/02/2000 Cash payment 119,000 - 119,000 04/01/2001-2002 Minimum future stock issuance 106,083 (12,734) 93,349 ---------- --------- --------- Total Purchase Price $ 993,243 $ (8,559) $ 984,684 ========== ========= =========

For the Period From For the Period From February 10, 1999 February 10, 1999 For the Three (Date of Inception) (Date of Inception) Months Ended Through Through March 31, 2000 March 31, 1999 December 31, 1999 -------------- -------------- -------------------- (Unaudited) (Unaudited) Cash Flows From Operating Activities Net loss $(42,250) $ 9,307 $ (61,275) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation expense 2,083 -- 6,617 Operating expenses paid by issuance of loans and members' equity -- -- 42,000 Changes in current assets and liabilities: Accounts receivable (8,027) (7,621) (10,895) Inventory (24,835) -- -- Accounts payable (11,407) -- 25,777 Accrued liabilities 1,390 -- 4,873 -------- --------- --------- Net Cash Provided by (Used In) Operating Activities (83,046) 1,686 7,097 -------- --------- --------- Cash Flows From Financing Activities Proceeds from related party debt 29,955 -- -- Principal payments on related party debt (7,000) -- -- Advance from First Scientific 300,000 -- -- Advance to members (181,000) -- -- -------- --------- -------- Net Cash Provided by Financing Activities 141,955 -- -- -------- --------- --------- Net Increase in Cash 58,909 1,686 7,097 -------- --------- --------- Cash - Beginning of Period 7,097 -- -- -------- --------- ---------- Cash - End of Period $ 66,006 $ 1,686 $ 7,097 ======== ========= ==========

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