FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549



(Mark  One)

[X]     QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR 15(d) OF THE SECURITIES
        EXCHANGE  ACT  OF  1934
For  the  quarterly  period  ended September 30,  2001


[ ]     TRANSITION  REPORT  PURSUANT  TO  SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE  ACT  OF  1934
For  the  transition  period  from  ________  to  ________

Commission  file  number:  000-26957

                              DCH TECHNOLOGY, INC.
        (Exact name of small business issuer as specified in its charter)

             Delaware                                    84-1349374
   (State or other jurisdiction             (I.R.S. Employer Identification No.)
 of incorporation or organization)

                             24832 Avenue Rockefeller
                               Valencia, CA  91355
                    (Address of Principal Executive Offices)

                    Issuer's telephone number: (661) 775-8120

     Check whether the issuer  (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the preceding 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  [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

     As of October 31, 2001, the issuer had 31,813,671 shares of common stock,
                                            ----------
$.01 par value per share, outstanding.


<PAGE>
                              DCH TECHNOLOGY, INC.

                                    CONTENTS

                                                                        Page No.
                                                                        --------
PART  I  -  FINANCIAL  INFORMATION

   Item  1.     Financial  Statements                                          3

                Independent  Accountant's  Report                              3

                Consolidated  Balance  Sheets                                  4

                Consolidated  Statements  of  Operations                       6

                Consolidated  Statements  of  Cash  Flows                      7

                Notes  to  Consolidated  Financial  Statements                 8

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

   Item  3.     Quantitative  and  Qualitative  Disclosures  About
                Market  Risk                                                  21

PART  II  -  OTHER  INFORMATION                                               21

   Item  1.     Legal Proceedings                                             21

   Item  2.     Changes in Securities and Use of Proceeds                     21

   Item  3.     Defaults Upon Senior Securities                               21

   Item  4.     Submission of Matters to a Vote of Security Holders           21

   Item  5.     Other Information                                             21

   Item  6.     Exhibits and Reports on Form 8-K                              21

SIGNATURES                                                                    22


<PAGE>
PART  I.  FINANCIAL INFORMATION



                         Independent Accountants' Report


Board of Directors and Shareholders
DCH Technology, Inc.

We  have reviewed the accompanying consolidated balance sheet of DCH Technology,
Inc.  and  subsidiaries  as  of  September 30, 2001 and the related consolidated
statements  of  operations  and cash flows for the nine month period then ended.
These  financial  statements  are  the  responsibility  of  DCH Technology, Inc.
management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A  review  of  interim financial
information  consists principally of applying analytical procedures to financial
data  and  making  inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with  generally  accepted  auditing  standards,  the  objective  of which is the
expression  of  an  opinion regarding the financial statements taken as a whole.
Accordingly,  we  do  not  express  such  an  opinion.

Based  on our review, we are not aware of any material modifications that should
be  made  to the consolidated financial statements referred to above for them to
be  in  conformity  with  generally  accepted  accounting  principles.

We  have  previously  audited,  in  accordance  with generally accepted auditing
standards,  the  consolidated  balance  sheet  of  DCH  Technology,  Inc.  and
subsidiaries as of December 31, 2000, and the related consolidated statements of
operations,  stockholders'  equity  and  cash  flows for the year then ended not
presented  herein;  and  in  our  report dated February 6, 2001, we expressed an
unqualified  opinion on those consolidated financial statements. In our opinion,
the  information  set forth in the accompanying consolidated balance sheet as of
December 31, 2000, is fairly presented, in all material respects, in relation to
the  consolidated  balance  sheet  from  which  it  has  been  derived.



/s/  Moss  Adams  LLP

Los Angeles, California
November 2, 2001


<PAGE>
<TABLE>
<CAPTION>
                         DCH Technology, Inc. and Subsidiaries
                              CONSOLIDATED BALANCE SHEETS

                                         ASSETS

                                                         SEPTEMBER 30,    DECEMBER 31,
                                                             2001             2000
                                                        ---------------  --------------
CURRENT ASSETS                                            (UNAUDITED)
<S>                                                     <C>              <C>
   Cash                                                 $      942,816   $      75,300
   Accounts receivable, net of allowances                      223,154         175,047
   Inventory                                                   840,415         528,816
   Prepaid expenses                                            393,202          84,261
   Other receivable                                             16,753          17,076
                                                        ---------------  --------------

     TOTAL CURRENT ASSETS                                    2,416,340         880,500

PLANT, PROPERTY AND EQUIPMENT, net                             811,012       2,362,357

OTHER ASSETS
   Restricted cash deposit                                           -         700,000
   Intangible assets, net of amortization                      142,088         134,536
   Investment in joint venture                                  40,708          41,623
   Investments with no readily determinable fair value          25,000          25,000
   Other                                                       148,368          10,190
                                                        ---------------  --------------

     TOTAL OTHER ASSETS                                        356,164         911,349
                                                        ---------------  --------------

                                                        $    3,583,516   $   4,154,206
                                                        ===============  ==============


LIABILITIES AND STOCKHOLDERS' EQUITY


CURRENT LIABILITIES
   Accounts payable                                     $      616,195   $     659,053
   Accrued compensation                                        259,373         728,805
   Accrued liabilities                                         224,125         427,563
   Current portion of capital lease obligations                 17,222          14,623
   Current portion of note payable                                   -          55,867
   Unearned revenue                                            260,000               -
                                                        ---------------  --------------

     TOTAL CURRENT LIABILITIES                               1,376,915       1,885,911

LONG TERM LIABILITIES
   Capital lease obligations, net of current portion                 -          14,662
   Long-term debt, net of current portion                            -         710,658
                                                        ---------------  --------------

     TOTAL LIABILITIES                                       1,376,915       2,611,231


<PAGE>
STOCKHOLDERS' EQUITY
   Preferred stock, $0.10 par value
     5,000,000 shares authorized,
     no shares issued and outstanding                                -               -

   Common stock, $0.01 par value,
     50,000,000 shares authorized,
     30,432,673 and 25,560,616 shares
     issued and outstanding                                    304,327         255,606

   Additional paid-in-capital                               25,945,833      17,631,900
   Investment in limited liability companies                   (64,554)        (68,714)
   Other comprehensive loss                                     (4,664)         (3,320)
   Accumulated deficit                                     (23,974,341)    (16,272,497)
                                                        ---------------  --------------
     TOTAL STOCKHOLDERS' EQUITY                              2,206,601       1,542,975
                                                        ---------------  --------------

                                                        $    3,583,516   $   4,154,206
                                                        ===============  ==============
</TABLE>

      The Accompanying Notes are an Integral Part of These Financial Statements


<PAGE>
<TABLE>
<CAPTION>
                             DCH Technology, Inc. and Subsidiaries
                             CONSOLIDATED STATEMENTS OF OPERATIONS
                                         (Unaudited)

                                            THREE MONTHS ENDED           NINE MONTHS ENDED
                                              September  30,               September 30,
                                        --------------------------  --------------------------
                                            2001          2000          2001          2000
                                        ------------  ------------  ------------  ------------
<S>                                     <C>           <C>           <C>           <C>
Sales                                   $   251,078   $   150,578   $   671,354   $   727,009

Cost of products sold                       176,967        97,046       401,387       578,157
                                        ------------  ------------  ------------  ------------

Gross profit                                 74,111        53,532       269,967       148,852

Operating expenses:
   Selling, general and administrative    1,755,784     1,716,897     5,824,834     4,219,611
      expenses
   Depreciation and amortization            122,103        95,161       325,191       164,930
   Research and development                 439,914       517,566     1,816,507     1,202,276
                                        ------------  ------------  ------------  ------------

   Total operating expenses               2,317,801     2,329,624     7,966,532     5,586,817
                                        ------------  ------------  ------------  ------------

     Loss from operations                (2,243,690)   (2,276,092)   (7,696,565)   (5,437,965)

Other income (expenses), net                (18,967)       34,896       (15,817)      106,437
                                        ------------  ------------  ------------  ------------

Loss Before minority interest            (2,262,658)   (2,241,196)   (7,712,382)   (5,331,528)

Minority interest                             4,557             -        10,537             -
                                        ------------  ------------  ------------  ------------

Net loss                                 (2,258,100)   (2,241,196)   (7,701,845)   (5,331,528)


Other comprehensive loss
 Foreign currency translation                (1,228)            -        (4,664)            -
 Adjustments                                                    -             -             -
                                        ------------  ------------  ------------  ------------

   Comprehensive loss                   $(2,259,328)   (2,241,196)  $(7,706,509)  $(5,331,528)
                                        ============  ============  ============  ============

Net loss per share
   Basic                                $     (0.08)  $     (0.09)  $     (0.27)  $     (0.22)
                                        ============  ============  ============  ============

   Diluted                              $     (0.08)  $     (0.09)  $     (0.27)  $     (0.22)
                                        ============  ============  ============  ============

Weighted average common shares
outstanding                              29,750,317    25,416,995    28,747,772    23,757,397
                                        ============  ============  ============  ============
</TABLE>

       The Accompanying Notes are an Integral Part of These Financial Statements


<PAGE>
<TABLE>
<CAPTION>
                        DCH Technology, Inc. and Subsidiaries
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     (Unaudited)

                                                               NINE MONTHS ENDED
                                                                 SEPTEMBER 30,
                                                           --------------------------
                                                               2001          2000
                                                           ------------  ------------
<S>                                                        <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES

   Net loss                                                $(7,701,845)  $(5,331,528)
   Adjustments to reconcile net loss to net cash used
     by operating activities:
     Depreciation and amortization                             325,191       164,930
     Issuance of stock, warrants and options for services    3,819,722       973,209
     LLP loss                                                    3,733        10,581
     Minority interest                                         (10,537)            -
     Loss on disposal of equipment                              49,848        12,248
   Change in assets and liabilities:
     Accounts receivable, net                                  (48,107)       49,264
     Inventory                                                (564,438)     (167,389)
     Prepaid expenses                                          105,059      (139,824)
     Other receivable                                           14,127        60,100
     Accounts payable                                          (42,858)       (3,882)
     Accrued expenses                                         (136,125)       55,504
     Other current liabilities                                  47,867             -
     Accrued payroll and vacation                             (469,432)      110,480
     Deferred revenue                                          260,000         4,450

                                                           ------------  ------------

     NET CASH USED IN OPERATING ACTIVITIES                  (4,347,975)   (4,201,857)

CASH FLOWS FROM (TO)INVESTING ACTIVITIES
   Redemption of (Investment in) certificate of deposit        700,000      (718,057)
   Minority interest investment in LLC                          10,537             -
   Deposits made for equipment, leases                             124       (95,690)
   Purchase of licenses and intellectual property              (35,597)      (50,000)
   Purchase of property and equipment                                -    (1,135,286)
   Proceeds from sale of property                            1,154,887     -       -

                                                           ------------  ------------

     NET CASH PROVIDED BY (USED IN)INVESTING ACTIVITIES      1,829,951    (1,999,033)

CASH FLOWS FROM FINANCING ACTIVITIES
   Private placement of common stock and warrants            3,292,944     5,210,000
   Principal payments on capital lease                         (12,063)      (11,213)
   Principal payments on long-term debt                       (766,525)      (20,265)
   Proceeds from exercise of options and warrants              871,184     1,361,677
   Proceeds from common stock subscriptions receivable               -       131,000
                                                           ------------  ------------

     NET CASH RECEIVED FROM FINANCING ACTIVITIES             3,385,540     6,671,199
                                                           ------------  ------------
NET INCREASE IN CASH                                           867,516       470,309


<PAGE>
CASH, BEGINNING OF PERIOD                                       75,300     1,193,084
                                                           ------------  ------------

CASH, END OF PERIOD                                        $   942,816   $ 1,663,393
                                                           ============  ============

Supplemental disclosure of cash flow information:

   Cash paid for

     Interest                                              $    49,404   $    23,320
     Income taxes                                                1,954         2,544

Non-cash  transactions
    During the period ended September 30, 2001, accrued expenses of $115,000
    were  settled  with the  issuance  of  stock options
    During the period ended September 30, 2001, prepaid services under a consulting
    agreement of $250,000 were paid with the issuance of stock
</TABLE>

    The Accompanying Notes are an Integral Part of these Financial Statements


<PAGE>
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1)  BASIS  OF  PRESENTATION

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared  in  accordance  with the instructions to Form 10-QSB. The consolidated
balance  sheet,  statement  of  operations and cash flows at and for the periods
ended  September  30,  2001  have  been  reviewed  by  the Company's independent
auditors  in  accordance  with  the professional standards and procedures as set
forth  in Statement of Auditing Standards No. 71 (SAS 71). SAS 71 procedures for
conducting  a  review  of interim financial information generally are limited to
inquiries  and  analytical  procedures concerning significant accounting matters
relating  to  the  financial information to be reported. They do not include all
information  and  footnotes  necessary  for  a  fair  presentation  of financial
position  and  results of operations and cash flows in conformity with generally
accepted  accounting  principles. These consolidated financial statements should
be  read  in  conjunction with the consolidated financial statements and related
notes contained in the Company's Annual Report on Form 10-KSB for the year ended
December  31,  2000.  In  the  opinion of management, all adjustments considered
necessary  for  a  fair  presentation  have been included in the interim period.
Operating  results  for  the  nine  months  ended  September  30,  2001  are not
necessarily  indicative  of the results that may be expected for the year ending
December  31,  2001.

(2)  NATURE  OF  BUSINESS

     The  consolidated  financial  statements  include  the  accounts  of  DCH
Technology,  Inc. and its wholly-owned subsidiaries, DCH Sensors Corporation and
Enable  Fuel  Cells Corporation (collectively referred to as "the Company"). The
Company  is engaged in acquiring, developing, and commercializing hydrogen-based
technologies.

(3)  LOSS  PER  SHARE

     Loss  per  share  of  common  stock  is computed using the weighted average
number  of  common  shares  outstanding  during  the  period shown. Common stock
equivalents  were  not  included  in  the  determination of the weighted average
number  of  shares  outstanding,  as  they  would  be  antidilutive.

(4)  INVENTORY

                       September 30, 2001  December 31, 2000
                       ------------------  ------------------

      Raw Materials               445,960  $          393,158
      Work in Process             230,084             124,797
      Finished Goods              164,371              10,861
                       ------------------  ------------------

              Total               840,415  $          528,816
                       ==================  ==================


(5)  INCOME  TAXES

     The Company records income taxes using an asset and liability method. Under
this  method,  deferred  Federal and State income tax assets and liabilities are
provided for temporary differences between the financial reporting basis and the
tax-reporting basis of assets and liabilities. At September 30, 2001, cumulative
net  operating  losses,  which  have  not been deducted for income tax reporting


<PAGE>
purposes,  amount  to  approximately  $  27,000,000. These losses may be carried
forward  and  used  to  offset  future taxable income. Unused loss carry forward
amounts  will  expire  for  Federal  and  State purposes starting 2013 and 2002,
respectively.  The deferred tax assets resulting from this loss carry forward is
approximately $ 9,900,000. The entire amount of this deferred tax asset has been
reserved  and  reduced  to  $-0- because of the uncertainty regarding the future
utilization  of  the  loss  carry  forward  amounts.


(6)  PROPERTY SALE AND LEASEBACK

     During  the  third quarter of 2001 the Company sold its principal operating
     facilities and entered into a 10-year operating lease for the property. The
     sale resulted in a loss of approximately $45,000. The property was sold for
     cash  in  the  amount of $1,256,000, less selling expenses, and $164,000 in
     rent  credit  which shall be applied ratably over the 10-year lease period.

(7)  BUSINESS SEGMENT INFORMATION

     The  Company's  primary  reportable  segments  include  Enable  Fuel  Cell
     Corporation  (Fuel  Cell) located in Wisconsin, and DCH Sensors Corporation
     (Sensor) located in California. Substantially all activities of the Company
     are  conducted  through  these  two  segments.  Occasionally,  the  Company
     generates  miscellaneous  revenues  from  other  sources.  Other  revenue
     generating activities consist primarily of consultation services incidental
     to  the  core  Sensor  and  Fuel  Cell  segment  activities.  The following
     represents  segment  information  for  the  three  and  nine  months  ended
     September  30,  2001  and  2000:

                                   Fuel Cells   Sensors     Other     Total
                                  ------------  --------  ---------  --------

     For the three months ended
       September 30, 2001:
       Sales                      $       -0-   $184,442  $ 66,636   $251,078
       Gross profit (loss)        $       -0-   $ 37,457  $ 36,654   $ 74,111

     For the three months ended
       September 30, 2000:
       Sales                      $    30,540   $118,038  $  2,000   $150,578
       Gross profit (loss)        $     7,900   $ 45,634  $     (2)  $ 53,532

     For the nine months ended
       September 30, 2001:
       Sales                      $     7,528   $597,190  $ 66,636   $671,354
       Gross profit (loss)        $   (11,126)  $244,439  $ 36,654   $269,967

     For the nine months ended
       September 30, 2000:
       Sales                      $   335,480   $389,529  $  2,000   $727,009
       Gross profit (loss)        $    32,622   $116,232  $     (2)  $148,852


<PAGE>
ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITIONS AND
RESULTS  OF  OPERATIONS.

     THIS  REPORT  CONTAINS  FORWARD-LOOKING  STATEMENTS  WITHIN  THE MEANING OF
SECTION  21E  OF  THE SECURITIES EXCHANGE ACT OF 1934. THESE STATEMENTS INCLUDE,
WITHOUT  LIMITATION,  STATEMENTS  ABOUT OUR EXPECTATIONS, BELIEFS, INTENTIONS OR
FUTURE  STRATEGIES  THAT  ARE  SIGNIFIED  BY THE WORDS "EXPECTS", "ANTICIPATES",
"INTENDS",  "BELIEVES",  OR  SIMILAR  LANGUAGE. THESE FORWARD-LOOKING STATEMENTS
INVOLVE  RISKS,  UNCERTAINTIES AND OTHER FACTORS. ALL FORWARD-LOOKING STATEMENTS
INCLUDED  IN  THIS DOCUMENT ARE BASED ON INFORMATION AVAILABLE TO US ON THE DATE
HEREOF  AND  SPEAK ONLY AS OF THE DATE HEREOF. THE FACTORS DISCUSSED BELOW UNDER
"FORWARD-LOOKING  STATEMENTS"  AND ELSEWHERE IN THIS FORM 10-QSB ARE AMONG THOSE
FACTORS  THAT IN SOME CASES HAVE AFFECTED OUR RESULTS AND COULD CAUSE THE ACTUAL
RESULTS  TO  DIFFER  MATERIALLY  FROM  THOSE  PROJECTED  IN  THE FORWARD-LOOKING
STATEMENTS.

     The  following  discussion should be read in conjunction with the condensed
consolidated  financial  statements  and  notes  thereto.

General
-------

     DCH (Diversified Commercial Hydrogen) Technology, Inc. (DCH), is engaged in
the  acquisition,  development,  and  commercialization  of  hydrogen-based
technologies.

     DCH  develops  and/or  licenses  patented  technologies  and  converts  the
technologies  into  viable  products  that we then produce and sell. We focus on
technologies  related  to  the  use of hydrogen, primarily hydrogen-specific gas
sensors  and  hydrogen-based  proton exchange membrane (PEM) fuel cells. We also
provide  hydrogen  safety  services.

     We  introduced  our  first  hydrogen  gas detector product line, the Robust
Hydrogen  Sensor (TM) product line, in November 1998. DCH currently offers eight
hydrogen  sensor  products,  including  our  new  family  of  H2SCAN(TM) sensing
systems.  DCH began development of a low power (up to 10 kWs) fuel cell in 1998.
In  March  2000,  we  created  a  wholly-owned  subsidiary, the Enable Fuel Cell
Corporation,  to  focus  on  this development and create channels to market. DCH
currently  offers  and  has  placed  into  the  market  alpha and beta fuel cell
products  ranging  in  power  from  less  than  one  watt  to  5  kW.

     We  currently  obtain our funding from equity financings and product sales.
As  production  activity  increases  and  we  implement  our  complete marketing
strategy,  we expect revenues from sales of products to increase as a proportion
of  our  funding.

     On  August  10,  2000, DCH common stock began trading on the American Stock
Exchange  under  the  symbol  "DCH."

     In  the  third  quarter  of 2001, DCH's two co-founders, David Haberman and
David  Walker, resigned from daily operations as part of a planned transition to
our  senior  operating team identified and retained over the past several months
from established corporations. This team, lead by new DCH President and CEO John
Donohue,  represents  the  broad  management experience expected by investors at
this  stage  of  our  growth.

     Mr.  Walker served as an officer (Vice President and President) of DCH from
1994  to  June 30, 2001. Mr. Haberman had served as our Vice President from 1994
until  June  30,  2001. Mr. Walker has been retained as a consultant to DCH, and
Mr.  Haberman  remains  as  our Chairman of the Board. The transition took place
with  the  full  agreement  of  the  rest  of  our  Board  of  Directors.

     Mark  Lezell  resigned  as  a  Director in October 2001, due to a demanding
schedule  that kept him from fulfilling his duties as a Board member. On October
5,  2001,  the Board unanimously elected John Donohue, President and CEO of DCH,
to  the  Board.


<PAGE>
Hydrogen Sensors
----------------
     The  third  quarter  of  2001 was very dynamic for DCH's sensor operations,
achieving a 60% increase in sensor revenue this quarter compared to sensor sales
in  the  third  quarter  of  2000.

     A  strengthened  emphasis  on  product  development  resulted  in
commercialization  of  a  wall/ceiling-mounted  hydrogen-specific sensory system
based  on  DCH's  unique  H2SCAN(TM)  technology.  Like the portable (hand-held)
H2SCAN(TM)  system  introduced  at  the beginning of the second quarter of 2001,
this  new  product  provides  improved  resolution  and stability over a greater
environmental  temperature  range relative to the DCH wall/ceiling-mount systems
it replaces. We demonstrated this product as a prototype to L3 Communications of
Sylmar, CA, which resulted in a contract to develop an H2SCAN(TM) system for one
of  L3's  telecommunications applications. Delivery of several units to L3Com is
planned  for  the  fourth  quarter  for  further  evaluation.

     DCH  also  configured  other  H2SCAN(TM)  sensing  systems  for  monitoring
high-pressure  hydrogen  process applications. These applications require that a
40%  concentration  of  hydrogen  gas  will  be  measured  at  approximately  30
atmospheres  of pressure. Other customers are evaluating similar prototype units
and  have  indicated  that  they  intend to make additional purchases as soon as
production  units  are  available.  Based on the success of these prototypes, we
plan  to  initiate  a  development  program  for a family of fixed high-pressure
hydrogen sensors based on H2SCAN(TM) technology. Initial production is currently
planned  for  mid-2002.

     We  also  made  critical  headway  during  the  third  quarter  of  2001 in
completing the next generation of our Robust Hydrogen Sensor(TM) (RHS), a unique
thin-film-on-integrated  circuit sensor we sell as a stand-alone product as well
as  the  sensor  module  for  H2SCAN(TM)  systems.  The  new  RHS will contain a
hydrogen-sensing  field  effect  transistor  (FET)  that  offers  two  orders of
magnitude  greater  sensitivity  to  hydrogen  than existing sensors. During the
third quarter, we received the first set of prototypes of this second generation
sensor  from  our  supplier,  Silicon Valley Sensors, Inc., for evaluation. This
evaluation  led  to  several  design  changes  in  the sensor. The second set of
prototypes  is  scheduled  for delivery to DCH in the fourth quarter of 2001. We
plan  to  introduce the new, improved RHS in the first quarter of 2002 to a much
broader customer base requiring H2 detection below 100 ppm and precision sensors
for  manufacturing  process  monitoring  applications.

     During  the  third  quarter  DCH  also  achieved  important  new  steps  in
supply-chain  management,  expanding  key  vendor  relationships  from  a
single-purchase process of small quantities to selected suppliers with long-term
commitments.  These  arrangements  have resulted in improved pricing and reduced
delivery  times.  We  plan  to  expand this program on a larger scale with other
suppliers  for  additional  components.


Fuel Cells
----------
     In the third quarter of 2001, DCH made several key deliveries of Enable(TM)
fuel  cells  and  fuel cell systems. We delivered a 5 kW fuel cell system to UOP
LLC - an international developer of process technology and a supplier of natural
gas  reformer  technology  to  the  fuel  cell industry - for integration with a
natural  gas  fuel  processor.  The  integrated  system  will  be delivered to a
European  client  of  the  Electric  Power  Research  Institute's (EPRI's) Power
Quality  Program  next  year.

     The  Houston  Advanced  Research  Center (HARC) ordered a 5kW DCH fuel cell
with natural gas reformer for testing and demonstration. A consortium, organized
by  HARC,  will  test the fuel cell's performance and reliability as a clean and
affordable  energy source. Consortium members include Dana Corporation, Southern
Company,  Texaco Energy Systems, Inc., and Walt Disney Imagineering Research and
Development.


<PAGE>
     Consolidated Edison of New York also ordered a 5 kW natural-gas fueled fuel
cell  system  in  the  third  quarter  of  2001  for  evaluation.

     We  received  a  contract  from  the  Texas  Natural  Resource Conservation
Commission  (TNRCC)  for  10  fourth-generation  DCH EnableTM portable fuel cell
power  systems.  These  30-watt  systems,  enclosed in robust casings for remote
field  operation,  will  provide  electricity on demand to air and water quality
sampling equipment, as well as communications equipment providing real-time data
feedback  to  the TNRCC. In conjunction with the TNRCC contract, we successfully
completed  development  of  a  portable  fuel cell with an operating temperature
range  of up to 50 C, expanding the previous temperature range of the fuel cell.

     Two  low-temperature portable fuel cells were delivered to Shell Iceland as
part  of  an  ongoing  market study in the nation of Iceland. The fuel cells can
operate  at  temperatures  down  to  -20  C,  a critical parameter for practical
implementation  of  portable  fuel  cell  power.

     Daido  Metal,  Ltd.  of Nagoya, Japan - DCH's joint venture partner for the
manufacture and sale of fuel cells in the Asian markets - sold its first 12W/12V
portable  fuel  cells  to  targeted  customers  in  the  Japanese  automotive,
electronics manufacturing, and highway sign industries. The fuel cells were sold
through  NeWave(TM)  Fuel  Cell  Corporation,  the  DCH-Daido  joint  venture.

     Nearly  200  representatives  from  business, the investment community, and
environmental  agencies  rode  the DCH Fuel Cell Water Taxi -- an emissions-free
concept  vehicle  fully  powered  by DCH Enable(TM) PEM fuel cells -- during its
tour  of  major  California  coastal  cities  and Lake Tahoe. The California Air
Resources  Board  (CARB)  funded  the demonstrations. Duffy Electric Boat Co., a
world  leader  in luxury and commercial electric powered boats, hosted the first
demonstration  at  its  corporate  docks  in  San  Diego.

     In  the  third  quarter  of  2001,  we  changed  our internal materials and
procurement  system for fuel cells to accommodate future manufacturing needs. We
have also negotiated significant price reductions for stack materials and are in
negotiation  with  contract  manufacturers  for  the  balance of plant fuel cell
system  fabrication  services.

DCH Center for Hydrogen Safety (TM) (CHS)
-----------------------------------------

     In  June  2001  DCH formally established the DCH Center For Hydrogen Safety
(CHS)(TM).  The  CHS  provides  consulting  and  training  services  to  OEMs of
hydrogen-power  products,  as well as generators and users of hydrogen and their
suppliers. Response to the CHS has been excellent. To date the CHS has submitted
six  proposals  for  services  and  has  received  awards  on  all  six.

     Under  a  contract  from  a major domestic automobile manufacturer, the CHS
developed  and conducted a seminar on hydrogen safety at the manufacturer's fuel
cell  development  center. The course is based upon the NASA Safety Standard for
Hydrogen  and  Hydrogen  Systems. More than 60 employees attended the class, and
the  customer  indicated  that  it  was very pleased with the program. With this
validation  in hand, the CHS is now aggressively promoting this course. Industry
and  government  have  expressed  growing  interest.

     The CHS is concurrently promoting its services for assessing hydrogen risks
at  existing  facilities.  This  activity  resulted  in  a  contract  for a Risk
Assessment  Report to General Dynamics that analyzed the hydrogen risk exposures
due  to  hydrogen  emissions  from  batteries  in  a communication shelter under
design.  The  Report's recommendations included the need for hydrogen sensors to
control  the  shelter  environment.

     In the third quarter of 2001, the CHS also completed a Safety Review of the
University  of  Nevada,  Las  Vegas  Hydrogen-Electric  Hybrid  Bus.  The Report
assessed  the  functional  design  of  the bus's operational and safety systems.


<PAGE>
     CHS senior consultant Dr. Addison Bain authored a white paper for the South
Coast  Air  Quality  Management  District  (SCAQMD)  of California on compressed
natural gas (CNG) and compressed hydrogen gas (CHG), addressing "Best Industrial
Practices  Involving CNG, CHG and CNG/CHG Blends As Automotive Fuels." The paper
clarified  the  evolving  consensus-building  process  for  codes  and standards
dealing  for  hydrogen and built a strong case for employing prudent engineering
judgment  based  upon applying existing related specifications and adapting them
to  hydrogen  specific  properties.


Results of Operations
---------------------

Three  and  Nine  Months  Ended September 30, 2001, Compared With Three and Nine
--------------------------------------------------------------------------------
Months Ended September 30, 2000
-------------------------------

     In  the  three  months  ended  September 30, 2001, we had sales of $251,078
compared  to sales of $150,578 for the three months ended September 30, 2000. In
the  nine  months ended September 30, 2001, we had sales of $671,354 compared to
sales of $727,009 for the nine months ended September 30, 2000. The higher sales
for  the  three-month  period  ended  September 30, 2001 reflected the continued
market acceptance of our new sensor products. The lower sales for the nine-month
period  ended  September  30, 2001 resulted primarily from a large non-recurring
sensor  revenue  realized  during  the  first  quarter  of  2000.

     During  the  three months ended September 30, 2001, we received commitments
for  three  5kW fuel cells and two 3kW fuel cells. We have received deposits and
advance  payments  on  specific units. These units are all under construction at
our  Enable subsidiary in Wisconsin. While revenues from sales of our fuel cells
were lower in the first nine months of 2001 as compared to the first nine months
of  2000,  our  sales  backlog  for fuel cells was $1.1 million at September 30,
2001.  Delivery of these units, and recognition of the corresponding revenue, is
scheduled  to  take  place  over  the  next  ten  months.

     The  cost of products sold increased to $176,967 for the three months ended
September  30,  2001 from $97,046 for the three months ended September 30, 2000,
reflecting a higher number of units sold during the 2001 period. On a percentage
basis,  costs of sales were 70.5% for the three-month period ended September 30,
2001,  and  64% for the same period in 2000. The cost of products sold decreased
to  $401,387  for the nine months ended September 30, 2001 from $578,157 for the
nine  months  ended  September 30, 2000. In percentage terms, cost of goods sold
represented  59.7%  of  total sales for the nine months ended September 30, 2001
versus  79.5%  for  the  same period in 2000. These cost reductions in 2001 were
achieved  primarily  as  a  result  of  the  introduction  of our new H2SCAN(TM)
hydrogen  sensor  product  line.  The  components for these new sensors are more
easily  integrated,  thus  resulting  in lower manufacturing and assembly costs.

     We  incurred $1,755,784 in selling, general and administrative expenses for
the  three months ended September 30, 2001, compared to $1,716,897 for the three
months  ended September 30, 2000. We incurred $5,824,834 in selling, general and
administrative  expenses  for the nine months ended September 30, 2001, compared
to $4,219,611 for the nine months ended September 30, 2000. Included in selling,
general  and  administrative  expenses  for the three months ended September 30,
2001  was $939,521 of expense related to the issuance of fully vested options to
purchase approximately 1,341,352 shares of stock to employees and consultants in
lieu  of  cash compensation. For the nine months ended September 30, 2001, these
expenses  equaled $3,535,713 and related to the issuance of approximately 70,500
shares  of  stock  and  fully vested options to purchase approximately 3,053,261
shares  of  stock.  We  issued  the  stock  and fully vested options in order to
conserve  cash  for  our  operations,  in  accordance  with  an  ongoing plan we
implemented  in the first quarter of 2001. Employees receiving stock and options
have agreed to receive these securities, in lieu of cash, for a portion of their
salaries.  We  conserved  approximately $1,400,000 of cash during the first nine
months  of 2001 under this program. In the three and nine months ended September
30,  2000,  similar  non-cash  compensation  equaled  $208,000  and  $1,056,000,
respectively.


<PAGE>
     Depreciation  and  amortization  increased to $122,103 for the three months
ended  September  30,  2001  compared  to  $95,161  for  the  three months ended
September  30,  2000,  and  increased  to  $325,191  for  the  nine months ended
September  30, 2001 compared to $164,930 for the nine months ended September 30,
2000,  reflecting  the  purchase  in  May  2000 of the building located at 24832
Avenue  Rockefeller  in Valencia, California and additional equipment to support
our  operations.

     During  the  three months ended September 30, 2001, we sold the Rockefeller
building  and  related land and entered into a ten-year operating lease with the
buyer  for  the  continued use of the facility. The total consideration for this
transaction  was  $1,425,000, of which $1,252,000 was received at the completion
of  the  sale  with the balance being applied to reduced lease payments over the
life  of  the  lease.

     We  expended  a  total  of  $439,914 on research and development during the
three  months ended September 30, 2001, compared to expenditures of $517,566 for
the  three  months  ended  September 30, 2000. Research and development expenses
totaled  $1,816,507  for  the  nine months ended September 30, 2001, compared to
$1,202,276  for  the  nine  months ended September 30, 2000. The majority of the
increases  in  2001  in  research and development expenses were due to a greater
focus  on  the commercialization and development of products, especially for our
fuel  cell  operation.

     Due  primarily  to  these  factors,  we  incurred a loss from operations of
$2,243,690  for  the  three  months  ended  September  30,  2001, compared to an
operating  loss  of $2,276,092 for the three months ended September 30, 2000. We
also  had  a  foreign  currency  translation  adjustment  of $1,228 in the third
quarter  of  2001,  resulting  in  a  comprehensive  loss of $2,259,328 for that
period.  DCH  had  29,750,317 weighted average common shares outstanding for the
three  months  ended  September  30,  2001,  as  compared to 25,416,995 weighted
average common shares outstanding for the comparable period in 2000. As a result
of  the increase in outstanding shares in 2001, the net loss per share decreased
to $0.08 per share for the three months ended September 30, 2001, as compared to
a  loss  of  $0.09  per  share  for  the  comparable  period  in  2000.

     We  incurred  a  net loss of $7,701,845 for the nine months ended September
30,  2001,  compared  to  a  net  loss  of  $5,331,528 for the nine months ended
September  30,  2000.  We  also had a foreign currency translation adjustment of
$4,664 in 2001, resulting in a comprehensive loss of $7,706,509 for that period.
DCH  had  28,747,772  weighted  average  common  shares outstanding for the nine
months  ended  September  30,  2001,  as compared to 23,757,397 weighted average
common  shares  outstanding  for  the  comparable  period  in 2000. Despite this
increase  in  outstanding  shares  in  2001, the net loss per share increased to
$0.27  per  share for the nine months ended September 30, 2001, as compared to a
loss  of  $0.22  per  share  for  the  comparable  period  in  2000.


<PAGE>
Liquidity  and  Capital  Resources
----------------------------------

     DCH  generated  a total of $3,385,540 in net cash from financing activities
for  the  nine months ended September 30, 2001, as compared to $6,671,199 during
the  comparable  nine  months  in  2000.  Substantially  all  of  the  financing
activities  for  the  nine  months  ended September 30, 2001 consisted of equity
financings,  supplemented by proceeds from the exercise of options and warrants.

     We  utilized  $4,347,975  of  net cash for operating activities in the nine
months  ended  September  30,  2001,  compared  to $4,201,857 for the comparable
period  in  2000.  The  increase  in  net cash used for operating activities was
primarily  related  to the growth of our product sales and operations during the
period,  including an increase in inventory and accounts receivable. We received
$1,829,951  of  net  cash  from  investing  activities  in the nine months ended
September  30,  2001,  compared to the expenditure of $1,999,033 of net cash for
investing  activities  in the nine months ended September 30, 2000. The majority
of the funds received during 2001 represent the sale of our Rockefeller property
during  the  third  quarter  of  2001.  The majority of the expenditures in 2000
represent  the  purchase  of  the  Rockefeller property in the second quarter of
2000,  and  the purchase of production equipment during the first nine months of
2000.

     At  September  30,  2001, we had $942,816 in unrestricted cash, compared to
$75,300  in  cash  at December 31, 2000. We also had accounts receivable (net of
allowance) of $223,154 at September 30, 2001, compared to accounts receivable of
$175,047  at  December  31,  2000.  Investment  in inventory totaled $840,415 at
September  30,  2001  compared to $528,816 at December 31, 2000. The increase in
inventory  is  a  combination of additional inventory requirements in our sensor
operations,  and  work  in  process  on  the  backlog of orders at our fuel cell
operation.

     At  September  30,  2001, DCH had accounts payable of $616,195, compared to
accounts payable of $659,053 at December 31, 2000. The decrease is due primarily
to  our  efforts  to  pay  down existing liabilities and reduce additional costs
during  the  first nine months of 2001. We also reduced our accrued compensation
to  $259,373  at  September 30, 2001, from $728,805 at December 31, 2000. We had
unearned  revenue  of  $260,000  at September 30, 2001. A portion of these funds
represent  deposits  and advance payments received from customers for fuel cells
currently being manufactured and due to be delivered to customers before the end
of  2001.

     On  August  24,  2001,  we  entered  into  a purchase agreement with Swartz
Private  Equity,  LLC (Swartz). Under the terms of the agreement with Swartz, we
may offer through a series of puts, and Swartz must purchase, from time to time,
up  to a maximum of 2,000,000 shares of our common stock. In addition, under the
agreement  with  Swartz,  we will provide Swartz with warrants to purchase up to
200,000  shares  of  our  common  stock.  We  anticipate the need for funding in
addition to that which we expect to raise pursuant to the Swartz agreement.

     DCH  is  dependent  upon  outside  sources  for  equity capital to fund our
operating requirements. We anticipate that a portion of our capital requirements
for  the  balance  of  the period ending December 31, 2001 will be provided from
external  funding  sources.  We  are actively pursuing and negotiating financing
arrangements  with potential strategic investors. However, there is no assurance
that  we  will  be  able to generate capital sufficient to meet our needs. If we
cannot  meet these capital requirements, we may be able to extend the period for
which  available  resources  would prove adequate by not proceeding with planned
major  operation  expansions  and  deferring  planned  staff  increases.


Forward-Looking  Statements
---------------------------

     The  forward-looking  statements contained in this Quarterly Report on Form
10-QSB  are subject to various risks, uncertainties and other factors that could
cause  actual  results to differ materially from the results anticipated in such


<PAGE>
forward-looking  statements.  Included  among the important risks, uncertainties
and  other  factors  are  those  discussed  below.

RISKS  RELATED  TO  DCH'S  OPERATIONS

WE  MAY  BE UNABLE TO MEET OUR FUTURE CAPITAL REQUIREMENTS, WHICH MAY PREVENT US
FROM  IMPLEMENTING  OUR  BUSINESS  PLAN.

     Based on our current operating plan, we anticipate that our available funds
will  be  sufficient  to  satisfy  our  anticipated  needs  for working capital,
including  our  increased  marketing expenses, capital expenditures and business
expansion,  for  the  balance  of 2001. After that time, we will need additional
capital.  Although  we currently have an agreement with Swartz pursuant to which
we plan to raise capital, we anticipate the need for additional funding sources.
We  may  also  need  to  raise  additional  funds  in  order  to fund more rapid
expansion, to increase brand development and market awareness, to develop new or
enhanced  technology,  to  respond  to  competitive  pressures  or  to establish
strategic  relationships.  If  we  raise  additional  funds by issuing equity or
convertible  debt  securities, the percentage ownership of our shareholders will
be  diluted.  Any  new  securities could have rights, preferences and privileges
senior  to  those  of  our  common  stock.  We cannot be certain that additional
financing  will  be  available  when  and  to  the  extent  required or that, if
available,  it  will  be on acceptable terms. Recently, certain companies with a
history  of  generating  losses  apparently have been unable to raise additional
financing  to fund such continued losses. If adequate funds are not available on
acceptable  terms,  we  may  not  be  able to fund our expansion, increase brand
development  and  market  awareness,  develop  or enhance our service offerings,
respond  to  competitive  pressures  or  establish  strategic  relationships.

WE HAVE A HISTORY OF LOSSES, AND WE EXPECT LOSSES FOR THE FORESEEABLE FUTURE.

     Since  our inception in November 1994, we have incurred substantial losses.
Our  comprehensive  net  loss  equaled  $7,706,509  for  the  nine  months ended
September 30, 2001. For the year ended December 31, 2000, we had a comprehensive
net  loss  of  $7,657,413.  We  had  an  accumulated  deficit  of $23,974,341 at
September  30,  2001.

     We  anticipate  that  our  expenses  relating  to developing, marketing and
supporting  our  current  and future products will increase substantially in the
future.  Accordingly,  for  the  foreseeable  future  we  expect  to  experience
additional  losses  as these increased expenses exceed our total revenues. These
additional  losses  will  increase  our  accumulated  deficit.

OUR  REVENUES  LARGELY  DEPEND  ON  ONE PRODUCT LINE, THE ROBUST HYDROGEN SENSOR
LINE. WE ANTICIPATE THAT THE MAJORITY OF OUR REVENUES WILL BE DERIVED FROM SALES
OF OUR HYDROGEN  SENSOR  PRODUCTS.

     To  date,  most  of  our  2001  revenue has come from sales of our hydrogen
sensor  products, with lesser revenues from sales of our fuel cells and hydrogen
safety  services,  respectively. We expect that this trend will continue for the
balance  of  2001.  In the event that 2001 sales of our hydrogen sensor products
fail  to  meet  our  expectations, our business and financial condition could be
impaired.

     We  currently  have  other  technologies  under  development, including two
sensors  and  two  hydrogen  fuel  cells.  Our  future  financial performance is
dependent,  in  significant  part, upon the successful development, introduction
and  customer  acceptance  of  new  and enhanced versions of the Robust Hydrogen
Sensor,  other hydrogen sensors, our hydrogen fuel cell technologies and related
new  products  that  we  may  develop.  We  cannot  assure  you  that we will be
successful  in upgrading the Robust Hydrogen Sensor or that we will successfully
develop  new  products,  or that any new product will achieve market acceptance.


<PAGE>
ECONOMIC, POLITICAL OR MARKET CONDITIONS COULD IMPACT OUR BUSINESS AND CAUSE OUR
REVENUE TO BE LOWER THAN ANTICIPATED.

     Our  business  may  be  sensitive  to global economic conditions. A reduced
level  of  economic  and  manufacturing  activity  due  to  the current economic
slowdown,  terrorist  activity  or the threat of such activity, or otherwise may
significantly  and  adversely  affect  the  demand  for  hydrogen  sensors  and
alternative  energy  sources  such  as  fuel  cells. A recession could cause our
customers  to  reduce or postpone their purchases, which could cause our revenue
to  be  lower  than  anticipated  and  negatively  affect  our  business.

FUEL CELL TECHNOLOGIES ARE NEW AND EVOLVING TECHNOLOGIES, COMPETE WITH OTHER
METHODS OF ENERGY GENERATION, AND MAY NOT RECEIVE WIDESPREAD ACCEPTANCE.

     Fuel cell technologies are in their very early stages of commercialization.
Like  many  new  technologies,  they  are  characterized  by  rapidly  evolving
technological  developments,  quickly  changing  marketing and sales strategies,
multiple  and  aggressive  market participants, fluctuating demand and uncertain
market  acceptance  for  products  and  services.

     Businesses  and  consumers  remain  uneducated  about  the  benefits  of
alternative  fuel  sources.  This lack of knowledge may delay the acceptance and
penetration  of  our fuel cell products into markets that have historically been
served  by  traditional  fuel  sources.  Businesses  and consumers also have the
option  of  using  other  methods  of  alternative  fuel  generation,  including
carbonate,  phosphoric  acid,  polymer  electrolyte  or  solid  oxide  fuel cell
systems,  as  well  as  traditional fossil fuels such as oil and gasoline. These
methods  may maintain or even increase their acceptance, to the detriment of our
hydrogen  fuel  cell  technology.

WE MAY NOT BE ABLE TO COMPETE EFFECTIVELY IN THE HYDROGEN SENSOR AND FUEL CELL
MARKETS.

     We compete in both the hydrogen sensor and fuel cell markets. We may not be
able  to  compete  successfully  against  current  and future competitors in our
markets.  The  markets  in  which  we  are engaged are new, rapidly evolving and
intensely  competitive,  and  we  expect competition to intensify further in the
future  both  from existing competitors and new market entrants. We believe that
our  ability  to  compete  depends  on  many  factors both within and beyond our
control,  including:

     -    the  ease  of use, performance, features, price and reliability of our
          solutions  as  compared  to  those  of  our  competitors;
     -    the  timing and market acceptance of new solutions and enhancements to
          existing  solutions  developed  by  us  and  our  competitors;
     -    the  quality  of  our  customer  service  and  support;  and
     -    the  effectiveness  of  our  sales  and  marketing  efforts.

     Many  of  our  current  and  potential  competitors  are  likely  to  enjoy
substantial  competitive  advantages,  including:

     -    longer  operating  histories;
     -    greater  name  recognition;
     -    more  extensive  customer  bases;  and
     -    cooperative  relationships  among  themselves or with third parties to
          enhance  their  products.

     Increased  competition  is  likely  to  result in price reductions, reduced
gross  margins  and  loss  of  market  share,  any one of which could impair our
finances  and  business  prospects. We cannot assure you that we will be able to
compete  successfully  against  existing  or  potential  competitors  or  that


<PAGE>
competitive  pressures  will  not  materially  impair  our  finances or business
prospects.  We  cannot  assure  you that we will be able to compete successfully
against existing or potential competitors or that competitive pressures will not
materially  impair  our  finances  or  business  prospects.

     The  markets  for  our  products  are  at  a  very  early  stage  of
commercialization,  are  rapidly changing and are characterized by an increasing
number  of  market  entrants.  As  is  typical  for  a  new and rapidly evolving
industry,  demand  for and market acceptance of recently introduced products are
subject  to  a  high  level of uncertainty and risk. Acceptance and usage of our
fuel cells is dependent on continued growth in use of alternative energy sources
by  businesses  and consumers. Businesses that already have invested substantial
resources  in  traditional or other energy sources may be reluctant to adopt new
alternative  sources.  Businesses  with established patterns of purchasing goods
and  services may be reluctant to alter those patterns. Accordingly, there is no
assurance  that  sufficient  demand for our products will develop to sustain our
business.

THE LOSS OF THE SERVICES OF ONE OR MORE OF OUR KEY PERSONNEL OR OUR FAILURE TO
HIRE, INTEGRATE OR RETAIN OTHER QUALIFIED PERSONNEL COULD DISRUPT OUR BUSINESS.

     We  depend  upon  the  continued  services and performance of our executive
officers  and  certain  key  technical  employees,  including  John Donohue, our
President  and  Chief  Executive  Officer,  Ronald  Ilsley,  our Chief Financial
Officer, and Dr. Johan (Hans) Friedericy, our Chief Operating Officer. We do not
currently carry "key person" insurance on any of our executives. Competition for
qualified  personnel  in  technology, particularly in the fuel cell industry, is
intense and we may not be able to retain or hire necessary personnel as a result
of the highly specialized nature of our products. In addition, the amount of our
limited  working capital may impose compensation restrictions on us that make it
difficult  to  attract  and  hire  necessary  employees.

WE MAY NOT BE ABLE TO PROTECT OUR INTELLECTUAL PROPERTY.

     We  regard  the  protection  of  our copyrights, service marks, trademarks,
trade  dress  and  trade secrets as critical to our future success and rely on a
combination  of  copyright,  trademark,  service  mark and trade secret laws and
contractual  restrictions  to  establish  and  protect our proprietary rights in
products  and  services.  If  the  protection  of our trademarks and proprietary
rights  is  inadequate,  our brand and reputation could be impaired and we could
lose  customers.

     We  have  entered  into confidentiality and invention assignment agreements
with  our  employees  and  contractors,  and  nondisclosure  agreements with our
suppliers  and  strategic partners in order to limit access to and disclosure of
our  proprietary  information.  There can be no assurance that these contractual
arrangements or the other steps taken by us to protect our intellectual property
will  prove sufficient to prevent misappropriation of our technology or to deter
independent  third-party  development  of  similar  technologies.

     In  addition,  litigation  may  be  necessary  in the future to enforce our
intellectual  property  rights,  to  protect our trade secrets, to determine the
validity  and  scope  of  the proprietary rights of others, or to defend against
claims  of infringement or invalidity. Because laws protecting certain ownership
rights  in  hydrogen  sensor  and  hydrogen fuel cell products are uncertain and
still  evolving,  we cannot give you any assurance about the future viability or
value  of  any  of  our  current  technology  ownership rights. Such litigation,
whether  successful or unsuccessful, could have a material and adverse effect on
our  business,  results  of  operations  or  financial  condition.

     While  we intend to pursue registration of our trademarks and service marks
in  the  U.S.  and internationally, effective trademark, service mark, copyright
and  trade  secret protection may not be available in every country in which our


<PAGE>
services  are  made  available  online.  We  do  not  currently own any patented
technology  registered  with  the  United  States  Patent  and Trademark Office.

     Although we do not believe that we infringe the proprietary rights of third
parties,  there  can  be  no  assurance  that  third  parties  will  not  claim
infringement  by  us  with  respect  to past, current or future technologies. We
expect  that  participants  in  our  markets  will  be  increasingly  subject to
infringement  claims  as  the number of services and competitors in our industry
segments  grow.  Any  such  claim,  whether  meritorious  or  not,  could  be
time-consuming,  result  in  costly  litigation, cause service upgrade delays or
require  us  to  enter  into  royalty  or  licensing agreements. Such royalty or
licensing agreements might not be available on terms acceptable to us or at all.
As  a  result,  any  such  claim  could  have a material adverse effect upon our
business,  results  of  operations  and  financial  condition.

GOVERNMENTAL REGULATION OF HYDROGEN FUEL CELL AND HYDROGEN SENSOR TECHNOLOGY
MAY RESTRICT OUR BUSINESS.

     Government  regulation  of  the use of hydrogen for industrial applications
and  fuel  cell generation varies greatly from country to country. There is some
risk  that  the United States and other countries will increase their regulation
of  these  technologies  in  the  future. As our products are utilized solely in
connection with hydrogen, any new law or regulation pertaining to the commercial
use  of  hydrogen,  or the application or interpretation of existing laws, could
adversely  impact  our  sales,  increase our cost of doing business or otherwise
have  a  material  and adverse effect on our business, results of operations and
financial  condition.

     We will be subject to various federal, state and local laws and regulations
relating  to  land  use,  safe  working  conditions,  handling  and  disposal of
hazardous  and potentially hazardous substances and emissions of pollutants into
the  atmosphere.  We  believe  that  we  have  obtained all necessary government
permits  and  have  been  in substantial compliance with all of these applicable
laws  and  regulations.

     Since  1991,  the National Environmental Protection Act (NEPA) has required
that  each  local Department of Energy procurement office file and have approved
by  the  Department  of  Energy in Washington, DC, appropriate documentation for
environmental,  safety  and health impacts with respect to procurement contracts
entered  into  by  that  local office. The costs associated with compliance with
environmental  regulations  may or may not be recovered under existing or future
contracts  to  which  we  are a party. In addition, contract work may be delayed
until  such  approval  is  received.

PRODUCT DEFECTS AND PRODUCT LIABILITY CLAIMS RELATED TO OUR HYDROGEN SENSORS AND
HYDROGEN  FUEL  CELL  PRODUCTS  COULD  EXPOSE  US  TO  SIGNIFICANT  LIABILITY.

     Although  we test our products extensively prior to introduction, we cannot
assure  you  that  our  testing  will  detect  all  serious  defects, errors and
performance  problems  prior to commercial release of our future sensor and fuel
cell  products.  Any  future  defects, errors or performance problems discovered
after  commercial release could result in the diversion of scarce resources away
from  customer  service  and  product  development,  lost  revenues or delays in
customer acceptance of our products and damage to our reputation, which, in each
case,  could  have  a  material  and  adverse effect on our business, results of
operations  or  financial  condition.

     In  addition to the potential for product defects, hydrogen itself can be a
dangerous  gas  under  certain  circumstances.  For  example, hydrogen is highly
explosive  when  it  reaches  concentrations  in  the  air  of greater than four
percent,  provided  an  ignition  source  is  present.  The  buoyant  and highly
dispersive  nature  of  hydrogen  gas  provides  challenges  in  the appropriate
location  of  our  sensors  for  effective hydrogen detection, but by its nature


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makes  it  difficult  to  accumulate levels from leaks which reach this critical
four percent level. However, an accidental explosion or fire from mishandling of
our  products or due to unforeseen circumstances cause damage to our reputation,
result  in lost sales and revenues or have other material and adverse effects on
our  business.

     We have not experienced any product liability claims to date, but we may be
subject to such claims in the future.  A product liability claim brought against
us  could  have  a  material  and  adverse  effect  on  our business, results of
operations  or  financial  condition.

WE  ARE  HEAVILY RELIANT ON THIRD PARTIES FOR CERTAIN COMPONENTS AND ANY DELAYS,
DEFECTS  OR  OTHER PROBLEMS IN SUPPLYING THESE COMPONENTS COULD ADVERSELY AFFECT
OUR  BUSINESS.

     Our  CMOS wafer process for the hydrogen sensor line, including development
of  the  FET,  is currently accomplished at Silicon Valley Sensors, Inc., in San
Jose,  California. We have purchased equipment from Honeywell, Inc. that enables
us  to  process  the  new  wafers  in-house.  There can be no assurance that our
manufacturing  efforts  will  be successful or cost-effective. Our manufacturing
partner  International  Circuits  and  Components,  Inc.  fabricates  electronic
circuit  boards for the Robust Hydrogen Sensor. Sensor casing and other hardware
are  fabricated  by various small manufacturers. Although delays in the shipment
and  receipt  of our component parts may occur, historically we have experienced
only  those  delays  that  tend  to  occur  in  the  normal  course of business.

     Growth  in the volume of orders for our products may strain the capacity of
these component suppliers, and delays or other problems with component suppliers
could  have  a material and adverse effect on our business. Although we test the
component  parts  that  we receive from our suppliers, we cannot be assured that
our  components  will  be  completely  free  of  all  defects.


<PAGE>
THE  MARKETS  FOR  OUR  FUEL  CELL  PRODUCTS  ARE  AT  A  VERY  EARLY  STAGE  OF
COMMERCIALIZATION,  ARE  RAPIDLY CHANGING AND ARE CHARACTERIZED BY AN INCREASING
NUMBER  OF  MARKET  ENTRANTS.

     Fuel cell technologies are in their very early stages of commercialization.
Like  many  new  technologies,  they  are  characterized  by  rapidly  evolving
technological  developments;  quickly  changing  marketing and sales strategies,
multiple  and  aggressive market participants, fluctuating demand, and uncertain
market  acceptance  for  products  and  services.



ITEM  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK.

     Not  applicable.


PART  II.  OTHER  INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS.

     Not applicable.

ITEM  2.  CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS.

     Not  applicable.

ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES.

     Not  applicable.

ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS.

     Not applicable.


<PAGE>
ITEM  5.  OTHER  INFORMATION.

     Not  applicable.

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K.

     (a)  Exhibits.

     (b)  Reports  on  Form  8-K.

          Not  applicable.


                                   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.

                                   DCH  TECHNOLOGY,  INC.


Date: November 13, 2001            By:  /s/  John Donohue
                                       -----------------------
                                   John  Donohue,
                                   President  and  CEO

                                   By:  /s/  Ronald Ilsley
                                       -----------------------
                                   Ronald  Ilsley,
                                   Chief  Financial  Officer
                                   (Principal Accounting and
                                   Financial  Officer)


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