American Scientific Resources Inc. (ASFX) is an emerging manufacturer and distributor of next-generation medical products and healthcare supplements sourced from around the globe. Its products are distributed primarily through leading retail drug chains, nationwide medical suppliers, infomercials and online sites. The Company has two reportable operating segments: Heart Smart System Inc., which supplies nutraceutical supplements developed to aid in the prevention of cardiovascular disease; and Kidz-Med Inc., which distributes an innovative line of health and safety-related pediatrics products.

Incorporated in 1990, the Company is based in New Paltz, New York.

Source: Reuters.com, SEC Filings.

On May 11, the Company posted its unaudited revenue results for the first quarter ended March 31, 2009. Citing a boost in online sales of the Kidz-Med Thermofocus 5-in-1 Non-Contact Thermometer, Pacifier Medicine Dispenser and other products supplied by Kidz-Med, the development-stage Company stated that it experienced a 15% sales increase with net sales of $263,603 for the first quarter of 2009, as compared to net sales of $229,982 for the first quarter of 2008. The management hopes to have the audit of the 2008 financials and Q1 2009 review completed shortly.

No analysts rate ASFX at this stage of company’s development.

Overview

Based in New Paltz, New York, ASFX manufactures and distributes medical products and supplies. It is a holding company for two wholly owned subsidiaries: Kidz-Med Inc. and Heart Smart System.

Kidz-Med Inc. distributes a leading line of medical and medicine delivery devices for children and sensitive

adults, including the Kidz-Med Thermofocus® 5-in-1, the world’s first clinical non-contact thermometer. Founded in 1993, this division has grown to become an innovative leader in the pediatric and children’s health and safety products industry. It provides the most revolutionary patented family-friendly products sourced from around the globe to help keep children safe and parents reassured.

Heart Smart System Inc. supplies nutraceutical supplements developed to aid in the prevention of cardiovascular disease.

Market

Market observers estimate that the medical-surgical products distribution industry will continue to grow as the aging U.S. population demand more healthcare services. According to Hoover’s report, the number of Americans over 65 will increase more than 50% between 2000 and 2020. In addition, reports indicate that trends such as the proliferation of medical technology and testing, new pharmacology treatments, as well as the increasing healthcare awareness will positively impact the medical products distribution industry. According to a report by Research and Markets, industry participants and the Health Industry Distributors Association estimate the market size of the acute care, medical-surgical distribution to be approximately $21 billion to $25 billion.

Company Highlights and Recent News

ASFX’s goal is to provide next-generation medical products and healthcare supplements sourced from around the globe. The Company is currently concentrating its efforts toward successful marketing of its next-generation medical products and healthcare supplements, while continuing to locate and acquire unique products that are successfully sold abroad, and introduce and promote them to the North American market.

On August 18, ASFX’s wholly owned subsidiary Kidz-Med announced it has received an initial Purchase Order of the Kidz-Med Thermofocus 5-in-1 Non-contact Thermometers from another distinguished baby specialty retailer, which is expected to hit the customer’s stores this fall.

For the first quarter ended March 31, 2009, the Company reported that sales revenues increased primarily on Kidz-Med Thermofocus 5-in-1, which has been long recommended by doctors throughout the UK, Europe and Asia. This instrument, which uses safe infrared technology, proves to be ideal in diagnosing flu-associated fever since it has absolutely no contact with the skin, making for a completely hygienic and non-invasive experience.

Prior to reporting an update from a new vendor for its flagship product, Kidz-Med said Walgreens intended to cut many SKUs out of its planograms going in to the 2009/2010 year, including the Kidz-Med Thermofocus. Currently, no word has been given as to when reorders might resume. However, ASFX CEO Christopher Tirotta stated that the Company has a strong working relationship with Walgreens, and that the latter has indicated interest in future products that Kidz-Med would like to bring to market.

The Company yesterday announced has become the exclusive seller of the world’s only FDA-approved home needle destruction device. On August 19, the Company announced it has obtained from Safeguard Medical Technologies LLC exclusive worldwide rights to sell and market home Needle Destruction Devices (NDD) known as the Disintegrator(TM) and the Disintegrator Plus(TM). According to the Company’s press release, all current and future sales and contracts worldwide have been granted to the Company. It plans to introduce the product commercially in the fall of 2009.

Source: http://stockcharts.com/h-sc/ui

ASFX trades above its 13-day moving average. This generally bullish sign is significant because the moving average are also positively trending.

The MACD for ASFX currently indicates a strong bullish signal. The MACD is above the signal line, a 9-day moving average of the MACD. The MACD is also above the critical level of 0, which implies the past price action had been positive. ASFX’s above-normal volatility is indicated by its increased distance between its upper and lower bands. ASFX is trading above its Bollinger Band, and relative to recent price action, this signals the stock is currently overextended.