===============================================================================

                                UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D. C. 20549
                                 FORM 10-QSB

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

                  for quarterly period ended September 30, 2001

        (   ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
              SECURITIES EXCHANGE OF 1934

        for the transition period from  ______________  to _________________

                        Commission File No. 33-55254-18

                      COMPOSITE INDUSTRIES OF AMERICA, INC.
             (exact name of Registrant as Specified in its charter)

           NEVADA                                      87-0434297

(State or other jurisdiction of                     (I.R.S. Employer
incorporation or organization)                    Identification Number)

4505 W. Hacienda Ave. Unit I-1
Las Vegas, Nevada                                         89118
Address of principal executive office)                 (Zip Code)

===============================================================================

Registrants telephone number, including area code (702) 579-4888

Securities registered pursuant to Section 12(b) of the Act: NONE
Securities registered pursuant to Section 12(g) of the Act: NONE

Indicate by check mark whether the registrant (1) has filed all reports
required to filed by Section 13 or 15(d) of the Securities Exchange A ct of
1934 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.

[x] yes [ ] no

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (229.405 of this chapter) is not contained herein, and will
not be contained, to the best of registrant's knowledge, in definitive proxy
or information statements incorporated by reference in Part III of the Form I
O-QSB or any amendment to this Form I O-QSB. [x)

Indicate the number of shares outstanding of each of the registrant's classes
of common stock, as of the latest practicable date.

Class                                                        Outstanding as of
                                                             September 30, 2001

$.001  PAR VALUE   CLASS A COMMON STOCK                          40,065,281
                   VALUE Class A Convertible Preferred Stock        428,572
                   VALUE Class B Convertible Preferred Stock              0


ITEM 1.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA



                COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                            (a development stage company)

                             CONSOLIDATED BALANCE SHEETS

                        SEPTEMBER 30, 2001 and JUNE 30, 2001

<table>
<caption>

                                                   <c>              <c>

                                                        (Unaudited)
ASSETS                                                   September         June
                                                           2001            2001
                                                        ----------     -----------
Cash                                                $      189,752     $   667,142
Land development costs                                      69,435          65,991
Prepaid consulting fees                                     33,000               -
Other receivables                                           18,089               -
Deferred tax asset                                       2,760,000       2,390,000
Machinery & equipment - net of
        accumulated depreciation of $44,308 and
        $40,232 as of September 30, 2001 and
        June 30, 2001, respectively                        166,547         164,805

Patent - net of accumulated amortization of
        $2,519,375 and $2,258,750 as of September 30,
   2001 and June 30, 2001, respectively                 14,678,724      14,939,349
                                                        ----------     -----------


        TOTAL ASSETS                                   $17,915,547     $18,227,287
                                                        ==========     ===========
</table>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS

F - 1

                  COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                              (a development stage company)
                         CONSOLIDATED BALANCE SHEETS (continued)
                          SEPTEMBER 30, 2001 and JUNE 30, 2001
<table>
<caption>

                                                                <c>              <c>
                                                                    (Unaudited)
                                                                     September          June
LIABILITIES AND STOCKHOLDERS' EQUITY                                    2001            2001
                                                                   ------------     -----------
LIABILITIES
        Accounts payable                                          $      24,683    $      3,530
        Accrued expenses                                                 31,357          20,000
        Accrued interest                                                 42,438          22,313
        Loans and notes payable                                         132,294         133,429
        Loans and advances from related parties                         125,301         325,301
   Convertible debenture - net of unamortized discount
         of $45,250 and $68,250 as of September 30, 2001
    and June 30, 2001, respectively                                     954,750         931,750
   Deferred tax liability                                             4,876,633       4,963,183
                                                                   ------------     -----------
        TOTAL LIABILITIES                                             6,187,456       6,399,506
                                                                   ------------     -----------
COMMITMENTS AND CONTINGENCIES (NOTE 15)

STOCKHOLDERS' EQUITY
        Convertible preferred stock class A, (5,000,000 shares
        authorized; 428,572 shares issued and outstanding
        at September 30, 2001 and June 30, 2001)                      1,511,086       1,511,086
   Convertible preferred stock class B (5,000,000 shares
   authorized: 0 shares issued and outstanding at
     September 30, 2001 and June 30, 2001)                                    -               -
   Common stock ($.001 par value, 100,000,000
        shares authorized, 40,065,281 shares issued
        and outstanding as of September 30, 2001; 22,761,396
        shares issued and outstanding as of June 30, 2001)               40,065          22,761
   Additional paid-in capital                                        22,959,598      17,347,521
        Prepaid officers' compensation                             (  4,834,375)              -
   (Deficit) accumulated during the development stage              (  7,948,283)     (7,053,587)
                                                                   ------------     -----------
        Total Stockholders' Equity                                   11,728,091      11,827,781
                                                                   ------------     -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                       $   17,915,547    $ 18,227,287
                                                                   ============     ===========
</table>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS

F - 2

                COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                            (a development stage company)

                        CONSOLIDATED STATEMENTS OF OPERATIONS

                FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 and 2000


                                                       2001            2000
                                                 ------------     -----------
        Operating expenses:
     General and administrative
         expenses                               $      75,525   $     101,127
     Depreciation and amortization                    264,701         274,044
     Officers' compensation                           816,242               -
     Consulting fees                                  153,685         142,904
                                                 ------------     -----------
        Total operating expenses                    1,310,153         518,075
                                                 ------------     -----------
        (Loss) from operations                    ( 1,310,153)    (   518,075)
                                                 ------------     -----------
  Other income and (expense):
        Interest and other income                       2,648           1,024
     (Loss) on sale of land                                 -     (   197,650)
        Interest (expense)                        (    43,741)    (     5,202)
                                                 ------------     -----------
  Total other (expense) - net                     (    41,093)    (   201,828)
                                                 ------------     -----------
  Net (loss) before income taxes                  ( 1,351,246)    (   719,903)
                                                 ------------     -----------
  Benefit for income taxes                            456,550         240,000
                                                 ------------     -----------
        Net (loss)                              $ (   894,696)  $ (   479,903)
                                                 ============     ===========
Net (loss) per common share                     $ (       .03)  $ (       .02)
                                                 ============     ===========
Weighted average number of
 common shares outstanding                         30,250,755      20,823,698
                                                 ============     ===========

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS

F - 3

                  COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                              (a development stage company)
                CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                      FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001
<table>
<caption>

                                            <c>          <c>            <c>           <c>            <c>



                                                   Convertible                    Common
                                                    Preferred                      Stock                  Additional
                                                     Stock A                   .001 Par Value              Paid-in
                                                Shares      Amount          Shares        Amount           Capital
                                                -------   ---------       ----------     ----------      -----------
Opening balance - July 1, 2001                  428,572  $1,511,086       22,761,396     $   22,761      $17,347,521

Issuance of common stock to officers
 in lieu of cash compensation                                             17,000,000         17,000        5,508,000

Amortization of officers' compensation

Issuance of common stock for
 consulting services                                                         150,000            150           65,850

Issuance of common stock                                                     149,385            149           37,197

Adjustment                                                                     4,500              5            1,030

Net (loss) for the three months ended
 September 30, 2001
                                                -------   ---------       ----------     ----------      -----------
Closing balance - September 30, 2001            428,572  $1,511,086       40,065,281     $   40,065     $ 22,959,598
                                                =======   =========       ==========     ==========      ===========

</table>

<table>
<caption>

                                            <c>                 <c>                   <c>
                                                                     (Deficit)
                                                                    Accumulated
                                                   Prepaid           During the              Total
                                                   Officers'        Development          Stockholders'
                                                 Compensation          Stage                 Equity
                                                -------------     ---------------         ------------
Opening balance - July 1, 2001                  $         -       $(    7,053,587)        $ 11,827,781

Issuance of common stock to officers
 in lieu of cash compensation                     ( 5,525,000)                                       -

Amortization of officers' compensation                690,625                                  690,625

Issuance of common stock for
 consulting services                                                                            66,000

Issuance of common stock                                                                        37,346

Adjustment                                                                                       1,035

Net (loss) for the three months ended
 September 30, 2001                                                   (   894,696)        (    894,696)
                                                -------------     ---------------         ------------
Closing balance - September 30, 2001            $ ( 4,834,375)    $   ( 7,948,283)        $ 11,728,091
                                                =============     ===============         ============
</table>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS

F - 4

                  COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                              (a development stage company)
          CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (continued)
                            FOR THE YEAR ENDED JUNE 30, 2001
<table>
<caption>

                                             <c>        <c>            <c>           <c>             <c>

                                                   Convertible                    Common
                                                    Preferred                      Stock                  Additional
                                                     Stock A                   .001 Par Value              Paid-in
                                                Shares      Amount          Shares        Amount           Capital
                                                -------   ---------       ----------     ----------      -----------



Opening balance - July 1, 2000                  428,572  $1,511,086       20,417,379     $   20,417      $16,195,761

Issuance of common stock for officer's
 compensation                                                              1,975,000          1,975          787,350

Issuance of common stock for legal and
 for consulting services rendered                                             90,000             90           44,910
Issuance of Common Stock through
 exercise of stock options                                                   500,000            500          199,500

Issuance of stock option to consultant                                                      120,000          120,000

Cancellation of restricted stock issued
  in the acquisition of Big Mountain
  Construction Company, Inc.                                              (  215,983)     (     216)

Adjustment                                                                (    5,000)     (       5)

Officer loans converted to compensation

Net (loss) for the year ended June 30, 2001
                                                -------   ---------       ----------     ----------      -----------
Closing balance - June 30, 2001                 428,572  $1,511,086       22,761,396     $   22,761     $ 17,347,521
                                                =======   =========       ==========     ==========      ===========
</table>

<table>
<caption>

                                            <c>                <c>                   <c>


                                                                     (Deficit)
                                                                    Accumulated
                                                                    During the              Total
                                                  Officers'         Development          Stockholders'
                                                    Loans              Stage                Equity
                                                -------------     ---------------      --------------



Opening balance - July 1, 2000                  $  (191,749)      $ (  4,312,689)       $  13,222,826

Issuance of common stock for officer's
 compensation                                       789,325

Issuance of common stock for legal and
 for consulting services rendered                    45,000
Issuance of Common Stock through
 exercise of stock options                          200,000

Issuance of stock option to consultant

Cancellation of restricted stock issued
  in the acquisition of Big Mountain
  Construction Company, Inc.                                                               (      216)

Adjustment                                                                                 (        5)

Officer loans converted to compensation             191,749                                   191,749

Net (loss) for the year ended June 30, 2001                         (  2,740,898)        (  2,740,898)
                                                -------------     ---------------      --------------
Closing balance - June 30, 2001                  $      -         $ (  7,053,587)        $ 11,827,781
                                                =============     ===============      ==============

</table>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS

F - 5

                 COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                             (a development stage company)

                          CONSOLIDATED STATEMENTS OF CASH FLOWS

                 FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

<table>
<caption>

                                                      <c>              <c>

                                                                2001          2000
                                                           ----------     -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)                                              $(    894,696)  $(    479,903)

ADJUSTMENTS TO RECONCILE NET (LOSS)
TO CASH (USED) IN OPERATING ACTIVITIES
Depreciation and amortization                                 264,701         274,044
Deferred tax benefit                                     (    456,550)   (    240,000)
Loss on sale of land                                                -         197,650
Stock issued for services                                     724,660         185,725
Reduction of officer loans as repayment for services                -          31,000
(Increase) decrease in assets:
 Employee advances                                                  -    (        788)
 Capitalized interest                                               -    (     48,142)
 Land development costs                                  (      3,444)              -
 Other assets                                                       -    (     45,000)
Increase (decrease) in liabilities:
 Accounts payable                                              21,153    (      9,212)
 Accrued expenses                                              11,356    (     84,798)
 Accrued interest                                              43,125               -
                                                           ----------     -----------
Total Adjustments                                             605,001         260,479
                                                           ----------     -----------
Net cash (used) by operating activities                  (    289,695)   (    219,424)

CASH FLOWS FROM INVESTING ACTIVITIES:
Machinery and equipment acquisitions                     (      5,818)              -
                                                           ----------     -----------
Net cash (used) by investing activities                  (      5,818)              -
                                                           ----------     -----------
        Subtotal                                         (    295,513)   (    219,424)
                                                           ==========     ===========
</table>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS

F - 6

                COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                            (a development stage company)

                   CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

                FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

<table>
<caption>

                                                       <c>             <c>
                                                                2001           2000
                                                           ----------     -----------
        Subtotal                                        $(    295,513)   $(   219,424)

CASH FLOWS FROM FINANCING ACTIVITIES:
Loans and advances from (to) related parties              (   200,000)         71,240
Repayment of officer loans                                          -         163,000
Issuance of common stock                                       19,258               -
Loans and notes payable - (repayments)                    (     1,135)    (     1,237)
                                                           ----------     -----------
Net cash (used) provided by financing activities          (   181,877)        233,003
                                                           ----------     -----------
Net (decrease) increase in cash                           (   477,390)         13,579
                                                           ----------     -----------
Cash  - beginning of period                                   667,142          18,516
                                                           ----------     -----------
Cash  - end of period                                   $     189,752    $     32,095
                                                           ==========     ===========
Supplemental Disclosure of cash flow information:

 Cash Paid During the Year for:

         Interest expense                               $          91    $      5,202
                                                           ==========     ===========
         Income taxes                                   $           -    $          -
                                                           ==========     ===========
</table>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS

F - 7

              COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                          (a development stage company)

                 CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

              FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000


NON-CASH INVESTING AND FINANCING TRANSACTIONS

On May 25, 2000, Composite issued 327,511 shares of common stock valued at
$191,749 to an officer of the Company to pay specific company expenses.
Accordingly, an officer loan receivable was recorded for $191,749 and was
reflected as a reduction of stockholders' equity at June 30, 2000.  An
additional 300,000 shares valued at $131,000 were issued to the officer during
the quarter ended September 30, 2000.  During this quarter, the $163,000 was
repaid to the Company.  The loan was also reduced by an additional $31,000 in
exchange for services.

During the three months ended September 30, 2000, Composite issued 425,000
shares of common stock valued at $185,725 for legal and consulting services
performed.

On July 2, 2001, the Company issued 150,000 shares of common stock to a
financial consulting firm as a "commencement bonus" under an agreement wherein
the financial consultant will perform certain evaluations and analyses for the
Company.  The agreement term is for six months effective July 1, 2001.  These
shares related to the commencement bonus have been valued at $.44 per share
for a total valuation of $66,000.  This will be recognized as consulting
expenses over six months commencing July, 2001.  For the three months ended
September 30, 2001, consulting expense amounted to 33,000.  The Company
recorded the remaining $33,000 as prepaid consulting fees as a current asset.
On July 11, 2001, a total of 149,385 shares of the Company's common stock were
issued to two individuals for $37,346 to be paid at a future date.  These
shares are restricted as to transferability under SEC Rule 144 for a period of
one year.  The shares have been valued at $.25 per share for a total valuation
of $37,346.  The portion that remained unpaid as of September 30, 2001
amounted to $18,089.   This was recorded as other receivables and is shown as
a current asset.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS

F - 8

                COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                            (a development stage company)

                   CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

                FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

NON-CASH INVESTING AND FINANCING TRANSACTIONS (continued) Composite issued
17,000,000 shares of common stock to senior corporate officers on August 23,
2001. The shares were issued for future services to be rendered to the Company
related to capital raising efforts, building alliances, and overall corporate
strategy development. These shares are restricted as to transferability under
SEC Rule 144.  The trading restrictions run for a two-year period. The shares
have been valued at $.33 per share for a total valuation of $5,525,000.  This
value reflects a discount of 50% for the two-year trading restriction as well
as a discount related to the volume of shares in this transaction compared to
the number of shares outstanding. Therefore, the unearned compensation of
$5,525,000 related to this transaction will be amortized to compensation
expense ratably over a two-year period.  For the three months ended September
30, 2001, compensation expense amounted to $690,625.  The remaining
compensation of $4,834,375 was recorded as prepaid officers' compensation as a
reduction of stockholders' equity.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS

F - 9

               COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                           (a development stage company)

                   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

               FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 and 2000


NOTE 1 - General and Summary of Significant Accounting Policies

(A)     - Nature of Business

Composite Industries of America, Inc. ("Composite"- formerly known as World
Homes, Inc./ Affordable Homes of America, Inc.), is a development stage
company primarily in the business of land development and the construction of
residential houses.  Composite owns the patent rights to a compound to be used
in the construction process referred to as Z-MIX.  The process is more fully
described in Note 2.

Composite's operations include its wholly owned subsidiary Big Mountain
Construction Company, Inc., which is a general building contractor.  During
the fiscal quarter ended March 31, 2001, operations of Big Mountain
terminated. Composite Industries' corporate headquarters are located in Las
Vegas, Nevada.

During the 2001 fiscal year, the Company underwent a name change to World
Homes, Inc.  The Company changed its name again to Composite Industries of
America, Inc. in August 2001.

(B)     - Consolidated Net (Loss) per Common Share

Consolidated net (loss) per common share is computed on the basis of the
weighted average number of common shares outstanding during the period.  Only
the weighted average number of shares of common stock outstanding was used to
compute basic loss per share for the three months ended September 30, 2001 and
2000 as the inclusion of stock options are anti-dilutive.  There were no stock
warrants, or other common stock equivalents outstanding during this period.

(C)     - Income Taxes

Income taxes are provided or a benefit is accrued on all revenue and expense
items included in the consolidated statements of operations, regardless of the
period in which such items are recognized for income tax purposes, except for
items representing a permanent difference between pretax accounting income and
taxable income. F - 10 COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
 (a development stage company)


                    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

                FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 and 2000

NOTE 1 - General and Summary of Significant Accounting Policies (continued)

(D)    - Depreciation

Composite depreciates equipment, vehicles, furniture and fixtures, and
machinery on a straight-line basis over five to ten years for financial
reporting purposes.

(E)    - Patents

Composite amortizes its patent rights from the date of acquisition on a
straight-line basis over its remaining life at acquisition of 16 years and 3
months.

(F)    - Use of Estimates

In preparing financial statements in conformity with accounting principles
generally accepted in the United States of America, management is required to
make estimates and assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date
of the financial statements, and the reported amounts of revenues and expenses
during the reporting period.  Actual results could differ from those
estimates.

(G)    - Basis of Presentation

The accompanying consolidated balance sheets and related consolidated
statements of operations, stockholders' equity and cash flows during the
development stage, includes the accounts of Composite Industries of America,
Inc. and Big Mountain Construction Company, Inc. as of September 30, 2000 and
for the three months then ended.  Significant inter-company transactions or
balances have been eliminated.  The financial statements include only the
operations of Composite Industries of America, Inc. for the three months ended
September 30, 2001 since Big Mountain was terminated in March, 2001.

F - 11


               COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                           (a development stage company)

                   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

               FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 and 2000


Note 2 -  Patent

Composite believes that it is appropriate to continue to carry the cost of its
Z-MIX patent at September 30, 2001 because the signing of these long-term
contracts demonstrates the patent's immediate commercial viability.
Furthermore, management believes that the expected future profits and cash
flows will support the carrying value of the patent.  The patent is being
amortized on a straight-line basis over the remaining life of the patent (195
months as of the acquisition date).  Patent amortization expense amounted to
$260,625 for the three months ended September 30, 2001 and 2000.

Note 3 -  Machinery and Equipment

Machinery and equipment consists of the following as of September 30, 2001 and
June 30, 2001:
                                               (Unaudited)
                                                September        June
                                                   2001          2001
                                               ----------     ----------
        Equipment and tools not
                   placed in service          $    80,060     $   80,060
        Machinery and equipment                    96,062         90,244
        Office equipment                            5,094          5,094
        Furniture and fixtures                      3,032          3,032
        Vehicles                                   26,607         26,607
                                                  210,855        205,037
        Less: accumulated
              depreciation                      (  44,308)     (  40,232)
                                               ----------     ----------
                 Total                          $ 166,547     $  164,805
                                               ==========     ==========

Depreciation expense was incurred in the amount of $4,076 and $8,316 for the
three months ended September 30, 2001 and 2000, respectively, and is included
in operating expenses.


F - 12

              COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                          (a development stage company)

                  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

              FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 and 2000

NOTE 4 - Income Taxes

Composite accounts for income taxes on the liability method, as provided by
Statement of Financial Accounting Standards 109, Accounting for Income Taxes
(SFAS 109).  For the three months ended September 30, 2001 and 2000, the
income tax (benefit) was comprised of the following components:

                                                   2001             2000
                                               ----------        ----------
        Current -  Federal                   $           -                -
                   State                                 -                -
                                                ----------       ----------
                   Total current                         -                -

        Deferred - Federal                    (    456,550)       ( 240,000)
                   State                                 -                -
                                                ----------       ----------
                   Total deferred             (    456,550)       ( 240,000)

                   Total                     $(    456,550)    $  ( 240,000)
                                                ==========       ==========

The only differing method of reporting income for tax purposes as compared to
financial reporting purposes was in connection with the deferred tax liability
resulting from the acquisition of patent rights described in Note 2.  In
addition, there is a deferred tax asset relating to the benefit provided by
the net operating loss carry forward.   As there are no state income taxes to
be considered, the income tax provision is computed at the federal statutory
rate of 34%.

Deferred tax assets and liabilities consist of the following:

                                               (Unaudited)
                                                September           June
                                                   2001             2001
                                                ----------       ----------
        Deferred tax assets-
        Tax benefit of net operating
         loss carryovers                      $  2,760,000      $ 2,390,000
        Valuation allowance                              -                -
                                                ----------       ----------
                                              $  2,760,000      $ 2,390,000
                                                ----------       ----------
        Deferred tax liabilities-
        Patent rights acquired                $  4,876,633      $ 4,963,183
                                                ==========       ==========

F -13

               COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                           (a development stage company)

                   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

               FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 and 2000


NOTE 4 - Income Taxes (continued)

No valuation allowance was required for the deferred tax asset for each of the
periods presented because management determined that there is a strong
likelihood of realization of the deferred tax asset.  The deferred tax asset
relates to the net operating loss carry forward.  Composite incurred net
operating losses for financial reporting purposes totaling $894,696 during the
three months ended September 30, 2001 available to offset future income for
financial reporting purposes expiring in 2020.

NOTE 5 - Loans and Notes Payable

The following schedule summarizes loans and notes payable as of September 30,
2001 and June 30, 2001:

<table>
<caption>

                                                        <c>              <c>
                                                           (Unaudited)
                                                            September           June
                                                               2001             2001
                                                            ----------       ----------

Note payable to Joseph Vozka dated January 30, 2001
secured by forms built by Precise Forms, Inc. due on
demand including interest at 15% per annum                     125,000          125,000

Automobile loan dated April 11, 2000 payable at $412
per month including interest at 5.12% per annum with
the final installment due on April 11, 2005                      7,294            8,429
                                                            ----------       ----------
                Total                                          132,294          133,429
                Less: current maturities                       129,685          129,627
                                                            ----------       ----------

                Long-term portion                         $      2,609      $     3,802
                                                            ==========       ==========
</table>

Interest expense related to these loans for the three months ended September
30, 2001 and 2000 amounted to $5,408 and $5,202, respectively. The carrying
value of the Company's borrowings approximate their fair values.

Additionally, included in interest expense for the three months ended
September 30, 2001 is interest on the convertible debenture and the
amortization of the related discount which total $38,333.

F - 14

              COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                          (a development stage company)

                  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

              FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 and 2000

NOTE 6 - Related Party Transactions

Composite has entered into consulting agreements with certain members of the
Company's Board of Directors and stockholders to provide services on various
strategic and business issues.  The agreements are renewable at the discretion
of management. Total fees paid for such services by the Company either in
stock or cash during the three months ended September 30, 2001 and 2000 were
$816,242 (including $125,617 cash) and $77,500 respectively and are included
in operating expenses in the consolidated statements of operations.

Management believes the transactions were at arm's length.

The President and Chief Executive Officer has from time to time advanced funds
to Composite or one of its subsidiaries to assist with working capital
requirements.  These transactions are short-term in nature.  The joint venture
construction project known as Heartland Homes advanced $53,101 to Big Mountain
Construction Company, Inc.  These advances are non-interest bearing and are
short-term in nature.  Funds advanced to the Company as of September 30, 2001
and June 30, 2001 amounted to $125,301 and $325,301, respectively, and are
carried in loans and advances from related parties.  No interest was charged
for the three months ended September 30, 2001 and 2000.

NOTE 7  - Concentration of Credit Risk - Cash

Composite maintains its cash balances at financial institutions located in
Nevada.  At times, the balance may exceed federally insured limits of
$100,000. The Company has not experienced any losses in such accounts and
believes it is not exposed to any significant credit risk on cash on deposit.
The fair market value of this financial instrument approximates cost.

F - 15

             COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                         (a development stage company)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

             FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 and 2000

NOTE 8 -   Industry Segment Information

Composite's operations are conducted in one industry segment.

NOTE 9 -   Other Receivables

On July 11, 2001, 149,385 restricted shares of the Company's common stock were
issued to two individuals for cash to be paid at a future date.  The shares
are valued at $37,346 or $.25 per share.  As of September 30, 2001, $18,089
remained unpaid.

NOTE 10 - Stock Issued For Services

During the three months ended September 30, 2000, Composite issued 425,000
shares of common stock valued at $185,725 for legal and consulting services
performed.

NOTE 11 - Rent

Composite rents office space for its Las Vegas, Nevada headquarters on a
month-to- month basis. Rent expense amounted to $1,920 for each of the three
months ended September 30, 2001 and 2000.

NOTE 12 - Prepaid Consulting Fees

On July 2, 2001, the Company issued 150,000 shares of common stock to a
financial consulting firm as a "commencement bonus" under an agreement wherein
the financial consultant will perform certain evaluations and analyses for the
Company.  The agreement term is for six months starting on May 23, 2001.
These shares related to the commencement bonus have been valued at $66,000 or
$.44 per share.  This will be recognized as consulting expenses ratably over
six months commencing July, 2001.  For the three months ended September 30,
2001, consulting expense amounted to $33,000 with $33,000 remaining as prepaid
consulting fees.

F - 16

                COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                             (a development stage company)

                    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

                FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 and 2000

NOTE 13 - Prepaid Officers' Compensation On August 23, 2001 Composite issued
17,000,000 shares of common stock to senior corporate officers. The shares
were issued for future services to be rendered to the Company related to
capital raising efforts, building alliances, and overall corporate strategy
development for the period from July 1, 2001 to June 30, 2003 and are
restricted as to transferability under SEC Rule 144 for two years.  The shares
have been valued at $5,525,000 or $.33 per share.  This value reflects a
discount for the restriction as well as the volume of shares.  Therefore, the
unearned compensation of $5,525,000 related to this transaction will be
amortized ratably over a two-year period.  For the three months ended
September 30, 2001, compensation expense amounted to $690,625.  The remaining
compensation of $4,834,375 was recorded as prepaid officers' compensation as a
reduction of stockholders' equity.

NOTE 14 - Going Concern Considerations

Composite Industries has operated as a development stage enterprise since
February 10, 1997, its inception and therefore has operated for over four
years without generating revenues.  Funds have been generated primarily by the
extension of loans and advances from officers and directors and the issuance
of common and preferred stock and debentures.  The failure to generate
revenues from operations has caused Composite to experience liquidity
shortfalls from time to time.

The Chairman, Merle Ferguson has pledged to continue to contribute money to
keep Composite solvent during the next twelve months.  Further, the Company
has contracts with joint venture partners and expects to commence construction
operations during fiscal year 2002.  It is for these reasons that management
believes that substantial doubt about Composite's ability to continue as a
going concern is alleviated.




F - 17

                COMPOSITE INDUSTRIES OF AMERICA, INC. and SUBSIDIARIES
                         (a development stage company)

                    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

                FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 and 2000

NOTE 15 -  Subsequent Events

Acquisitions:

On October 1, 2001, Composite acquired 100% of the common stock of MJB Towers,
Inc. a California corporation in the business of acquiring and leasing
telecommunication towers, in exchange for 1,000,000 shares of preferred stock.
In addition, the terms of the agreement specify a bonus payment first,
beginning with the first month of operations, and there is a provision for an
additional bonus based on future performance.

Stock Exchange Agreement:

On October 5, 2001, Composite has entered into a stock exchange agreement with
Tribal Electric Association-2000, a California corporation, ("TEA") in the
business of developing, constructing and operating power plants in the United
States and throughout the World, in exchange for 1,000,000 shares of Class C
convertible preferred non-voting shares at a strike price of $150 per share.
All of the shares owned by ("TEA") constitute 100% of all the issued and
outstanding capital stock of the Company.

F - 18

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION

The following discussion and analysis of financial condition and results of
operations of the Company should be read in conjunction with the Consolidated
Financial Statements, including the corresponding footnotes, which is included
within this report. The following discussion contains certain forward-looking
statements within the meaning of Securities Act of 1933 as amended, and
Section 21E of the Securities and Exchange Act of 1934, as amended, which are
not historical facts and involve risks and uncertainties that could cause
actual results to differ materially from the results anticipated in those
forward-looking statements. These risks and uncertainties include, but are not
limited to those set forth below and the risk factors described in the
Company's other filings with the Securities and Exchange Commission.

Composite Industries of America (Affordable Homes/World Homes) is a
homebuilding and development company in the development stage focusing on
building for low-income and first-time homebuyers. The Company has and will
continue to develop new building techniques and patented products that
significantly reduce the overall cost and time, while maintaining or
increasing the quality and integrity of new home construction. The Company's
plan is to develop and build its "World Home" for sale outside the United
States in developing nations where there is an immediate need for permanent
affordable shelter. The patented Z MIX material used in the "World Home'
provides protection from the elements; hurricanes, earthquakes, as well as
being fireproof.

Composite Industries of America's immediate focus is to enter into licensing
and/or joint venture affiliations in which it will supply its proprietary,
patent-protected Z MIX material to established companies for use outside the
United States in home construction and other applications such as railroad
ties, utility poles and environmental remediation. The Company believes this
approach to be the fastest route for the penetration into the global
marketplace.

The Company projects that the revenues received from licensing Z MIX
technology will be recognized by the Company without incurring the usual
development and labor expenses associated construction projects.

RESULTS OF OPERATIONS

Quarter ended September 30, 2001 vs. September 30, 2000

REVENUES. Composite Industries of America is presently a development stage
company. Accordingly, the Company has no revenues for the three months ended
September 30, 2001.

OPERATING EXPENSES. Operating expenses are comprised of General and
Administrative Expenses which consists primarily of amortization of patent
expense, professional fees, product development expense and office expense.
Amortization expense related to the patent amounted to $260,625 and $260,625
during each of the periods ended September 30, 2001 and 2000.  The patent is
being amortized on a straight-line basis over the remaining life of the patent
(195 months as of the acquisition date, April 28, 1999).  Operating expenses
increased from $257,450 for the three months ended September 30, 2000 to
$1,049,528 (or by $792,078) for the three months ended September 30, 2001. The
increase in operating expenses was primarily due to officers' compensation
which increased from $0 for the three months ended September 30, 2000 to
$816,242 (refer to Note 13 of the Financial Statement) for the three months
ended September 30, 2001.

NET LOSS. As a result, our net loss after the tax benefit increased from
$479,903 for the three months ended September 30, 2000 to $894,696 for the
three months ended September 30, 2001.

LIQUIDITY AND CAPITAL RESOURCES

Composite Industries of America is currently a development stage company,
however management projects that during the next twelve months revenue derived
from one or more of the signed joint ventures, or the proceeds from a private
placement which is under negotiations should be sufficient to finance the
Company's working capital and capital expenditures.

Although Composite Industries of America believes that the revenues projected
over the next twelve months will be significant, we are presently in
negotiations for a private placement for immediate funds. The Company is
confident that with its product and technology, signed joint ventures and
stronger balance sheet, that it will successfully complete a private
placement. In the event that the Company does not secure additional financing,
the Company has made provisions for working capital, for the next twelve
months.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company has no market risk sensitive instruments or market risk exposures.

PART II

OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

There is no pending or threatened litigation or other legal proceedings,
material or otherwise, nor any claims or assessments with respect to
Affordable Homes of America, Inc. at the present time.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

NONE

ITEM 3.  DEFAULTS UPON SENIOR INDEBTEDNESS

NONE

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

No matter was submitted to the Company security holders for a vote during the
period ending September 30, 2001.

ITEM 5.  OTHER INFORMATION

BUSINESS

On March 17, 1999, Kowtow, Inc. received 100% of the common stock of
Affordable Homes of America, Inc. in a merger.  Additionally, Kowtow, Inc.
issued 4,000,000 shares of common stock to SCS Enterprises, Inc. Trust, the
sole shareholder of Affordable Homes of America, Inc.  On the same date the
company accepted the resignation of Krista Nielson and Sasha Belliston as
Officers and Directors of the Company and elected Merle Ferguson as President,
CEO and Chairman of the Board of Directors.  The Company also elected Susan
Donohue as Secretary and as  a member of the Board of Directors.

The Company changed its name to Affordable Homes of America, Inc. on March 19,
1999 and obtained a new trading symbol -AHOA.  The Company restructured its
common stock with a two for one forward split effective March 31, 1999.  The
Company changed its name to World Homes, Inc.(WHME) on October 10, 2000 and to
Composite Industries of America, Inc. (CIAI) on August 23, 2001. Affordable
Homes of America, Inc. and World Homes, Inc. are fully owned subsidiaries of
the Company. Composite Industries of America maintains its principle offices
at 4505 W. Hacienda Ave., Unit I-1, Las Vegas, Nevada 89118.

Composite Industries of America is in the business of building homes for low
income and first time home buyers.  Founded in 1997, the focus of the Company
is to develop and build homes for sale in the United States and international
locations with little or no timber products.  The Company's methods are
patented.  There are three methods for new home construction.  These include:

* Z Mix - A cementitious product that combines diatomaceous earth and used
tires to create a lightweight building material that reduces the time and the
cost for constructing a house. The Company currently holds the patent on Z
Mix.

* In-line Framing - A new method of construction that reduces the amount of
wood used by one third. This reduces the cost of lumber used in construction,
and thereby reduces the overall cost of the home.

* Foam-Panelized Construction - This method of construction uses foam slabs
covered with panels and strengthened with internal trusses. This allows for
increased insulation and quick construction.

All three methods (i) reduce the time and cost needed to construct the average
home, and (ii) reduce the amount of wood used in building the average home.
Company research has shown that more Americans ages 25 to 45 would prefer to
purchase homes rather than rent. To make this option viable, the Company's
homes are financed 100% by lending institutions and the monthly payments are
comparable to the expense of renting. Additionally, older Americans are more
inclined to move into homes that are less expensive, due to their retirement
status and reduced monthly income.

The Company is finishing the certification procedures necessary to sell its Z
Mix products in the US. Once complete, the Company will begin sales and
distribution of its products in US. The Company has been approached by several
international entities to use Z Mix for construction.

To date, the Company has made two (2) acquisitions:

(a) On April 28, 1999, Affordable Homes acquired Composite Industries of
America, Inc. the owner of a patent covering a construction material known as
"Z Mix". Z Mix is a cementitious building material and can be used in a two
step construction method instead of cement, dry wall or lumber. Affordable
Homes believes Z Mix will enable it to build better quality homes at a lower
price than if other products were used.

(b) On June 28, 1999 Affordable Homes also acquired Big Mountain Construction
Company which holds the exclusive right to build all the houses for the
Heartland Homes development. The development is planned for the construction
of 136 homes, each on an individual site.  The inability to maintain the
operations of Big Mountain caused the Company to abandon its entire investment
in Big Mountain in March 2001.

Composite Industries of America, Inc.  The acquisition of Composite Industries
was accomplished by exchanging one share of Affordable's/World Homes' common
stock for two shares of the original Composite's common stock.  All stock
issued by Affordable/World Homes pursuant to this acquisition was restricted.
Affordable Homes/World Homes was the surviving entity and acquired the patents
owned by Composite. The patents cover a construction material called "Z MIX".
Z MIX is a building material lighter than cement that can be used in home
construction instead of cement, lumber or dry wall.  The patented
construction material is a lightweight cementitious insulating mixture with a
high compression strength and thermal resistance values up to 30 to 40 times
that of standard concrete.  It is fire proof, insect proof, has excellent
acoustical properties and is easy to clean up.  Z MIX can be used for wall and
roof panels and can easily be pumped for walls and floors.  Z MIX makes a well
insulated cost effective floor that has a slight give to it. Z MIX is
excellent for gymnasium floors.  This material is used for residential, light
commercial and agricultural building.  The composition has the unique property
of being able to absorb contaminated or hazardous materials, especially
petroleum based contaminants and is especially useful in cleaning up and
controlling contaminants in underground storage tanks, especially in abandoned
or closed service stations.

The Company also acquired the plans for a "World Home" and a "US Home" made
from this material.  These plans have been certified by Larson Engineering,
Inc.  as earthquake resistant in all four seismic regions in the world.
Larson Engineering, Inc. also certified that houses built from these materials
are able to withstand hurricane winds up to 150 mph.  Composite Industries of
America believes that use of Z MIX will permit it to construct lower cost
housing at substantial less that the present cost for such housing.  Z MIX can
also be used in the manufacturing of utility poles, railroad ties and pallets
with substantial savings in the manufacturing cost of these items.   The
Company believes that the use of Z MIX will broaden its market and increase
its profitability.

Big Mountain Construction Company, Inc. The Company acquired Big Mountain
Construction Company, Inc.  for $500,000 paid in restrictive common stock in
the amount of 215,983 shares.  Big Mountain maintains a general contractor
license and has the exclusive right to build out 136 homes for Heartland Homes
Estates, an affordable housing project near Tacoma, Washington.  Big
Mountain's master appraisals are generally  $10,000 - $12,000 higher than the
selling price.  This allows Big Mountain to feature 100% financing for their
buyers, including VA and FHA programs.  This feature will give the Company the
ability to qualify more homebuyers and close more loans than their
competition.  Big Mountain Construction has had a presence in the entry-level
and one step-up housing market for over 20 years in the State of Washington.

The Company's business is not seasonal although during some snow storms on-
site construction generally does not take place unless indoors. The Company
uses no special raw materials and the materials it does use are available from
numerous suppliers throughout the United States.

Composite Industries of America (Affordable Homes/World Homes)  has signed
Joint Venture Agreements or strategic alliance agreements with the following
companies:

(a) Tristar USA of LA, Inc. and Affordable Homes signed a five-year Joint
Venture Agreement on June 22, 2000. Tristar will act as the construction
company and Affordable Homes will supply its proprietary Z MIX material for
building affordable housing in Developing Nations, particularly in Nigeria.

(b) AL NASR Trading & Industrial Corporation L.L.C. and Affordable Homes
signed a three-year Joint Venture Agreement with a 25-year optional extension,
on August 17, 2000. AL NASR is to provide a proposal for the establishment of
a manufacturing plant for Z MIX in a Middle Eastern country and a working plan
for at least four other countries in the Middle Eastern / Northern Africa
area. Affordable Homes will provide its patented Z MIX material and its
technical expertise in building affordable housing.

DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The following table shows the positions held by the Company's officers and
directors. The directors were appointed and will serve until the next annual
meeting of the Company's stockholders, and until their successors have been
elected and have qualified. The officers were appointed to their positions,
and continue in such positions at the discretion of the directors.

NAME              AGE    POSITION
--------------    ---    -----------------------------------------
Merle Ferguson    54     President, CEO and Chairman of the Board
William Morris    63     Vice President of Finance, CFO, Treasurer
Susan Donohue     49     Vice President of Operations, Secretary
Randy Vozka       37     Vice President of R & D

Merle Ferguson, President, CEO and Chairman of the Board, founded Affordable
Homes of America, Inc. in 1997 after a successful career in the construction
industry. Mr. Ferguson's goal was to form a national construction company able
to create affordable, quality homes for first-time and low-income homebuyers.
Prior to starting the Company, Mr. Ferguson spent 24 years in the construction
industry as a builder and real estate developer in California, Oregon and
Washington States.

Mr. Ferguson attended Yakima Valley College from 1964-1966 with a major in
forestry and a minor in Business Management. In April of 1966, he enlisted in
the United States Marine Corps, serving two tours in Vietnam, and was
honorably discharged in 1970. For the past 7 years, Mr. Ferguson has been
researching new construction products used to reduce deforestation. Some of
the construction methods under development by the Company use no timber
products.

William Morris joined Composite Industries of America as Vice President of
Finance, Chief Financial Officer and Treasurer of the Board in May of 2001.
Mr. Morris brings over 30 years of financial and accounting experience to the
Company. The majority of the 30 years were performing the duties of Chief
Financial Officer. He was the CFO for (Sony) / Superscope, Inc. and Maranatz
Company, Inc., and at one time was the youngest CFO of a New York Stock
Exchange company.

Susan Donohue is the Vice President of Operations, and Secretary of the Board.
She was one of the two founders of Zawada Technologies, Inc. At Zawada
Technologies she worked directly with Joseph Zawada on the research of the Z
Mix product. Zawada Technologies merged with Composite Industries, Inc. Ms.
Donohue joined Affordable Homes/World Homes when the original Composite merged
with the Company. Ms. Donohue attended the University of Wisconsin at Stevens
Point with a focus in sociology and psychology. Ms. Donohue also attended
Cardinal Stritch College of Madison, where she majored in Business
Administration.

MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

The Company's common stock is currently trading on the NASD Over-the-Counter
Bulletin Board under the symbol "CIAI" since September 4, 2001, and traded
under the symbol "WHME" prior to that date. The stock has traded between
$3.125 per share and $0.14 per share. There are approximately 850 record
holders of the Company's common stock. The Company has not previously declared
or paid any dividends on its common stock and does not anticipate declaring
any dividends in the foreseeable future.


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

(a) Exhibits - No exhibits to report this quarter

(b) Reports on Form 8-K.

    (i)Form 8-K Filed on 08-31-2001.

        Item No. 5- Other Events.

The Company changed its name to Composite Industries
of America, Inc. on August 24, 2001.

Composite Industries of America, Inc. has a new
CUSIP number of 20461M101 and a new trading symbol of CIAI.

       Item No. 7-Financial statements proforma and Exhibits;

Company: Amendment to the Articles of Incorporation
changing name to Composite Industries of America, Inc.


SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.


COMPOSITE INDUSTRIES OF AMERICA, INC.


Date:  October 30, 2001    By: /s/ Merle Ferguson
                                   -----------------
                                   Merle Ferguson
                                   Chairman, President & CEO


Date:  October 30, 2001    By: /s/ William Morris
                                   -----------------
                                   William Morris
                                   VP of Finance, CFO & Treasurer