SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB


         (Mark One)

[X]  Quarterly  report under Section 13 or 15(d) of the Securities  Exchange Act
     of 1934

         For the quarterly period ended August 31, 2001
                                        ---------------

[]   Transition report under Section 13 or 15(d) of the Exchange Act

         For the transition period from _________ to ___________

         Commission file number 33-55254-15
                                -----------

                              delSECUR Corporation
        (Exact Name of Small Business Issuer as Specified in Its Charter)


         NEVADA                                    87-0438451
------------------------------------             -----------------
(State or Other Jurisdiction of                  (IRS Employer
Incorporation or Organization)                   Identification No.)


1801 McGill College, Suite 1330,
Montreal, Quebec Canada                                     H3A 2N4
(Address of Principal Executive Offices)                  (Zip Code)


(Issuer's Telephone Number, Including Area Code) (514) 282-9000
                                                ---------------

Indicate by a check mark  whether the issuer (1) has filed all reports  required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the issuer was required
to file such reports),  and (2) has been subject to such filing requirements for
the past 90 days.[X] Yes [ ] No

                      APPLICABLE ONLY TO CORPORATE ISSUERS

     State  the  number  of shares  of each of the  issuer's  classes  of common
equity, as of the latest practicable date:

         Class                   Outstanding as of August 31, 2001
------------------------         ---------------------------------
$.001 PAR VALUE CLASS A                    14,809,304 Shares
COMMON STOCK

                                        1

<PAGE>



                                     PART I
                              FINANCIAL INFORMATION

Certain statements contained in this Quarterly Report on Form 10-QSB ("Report"),
including,  without limitation,  statements  containing the words "anticipates",
"expects,  "hopeful" and words of similar  import,  constitute  "forward-looking
statements.  "Readers  should not place undue reliance on these  forward-looking
statements.  delSECUR's  actual  results  could  differ  materially  from  those
anticipated  in these  forward-looking  statements  for many reasons,  including
risks faced by the Company  described  in this report,  and the other  documents
delSECUR files with the Securities and Exchange  Commission  ("SEC"),  including
its most recent reports on Form 8-K and Form 10-QSB, and amendments thereto."

ITEM 1.           Financial Statements.

     The  accompanying  unaudited  financial  statements  have been  prepared in
accordance with the instructions to Form 10-QSB and,  therefore,  do not include
all information and footnotes necessary for a complete presentation of financial
position,  results  of  operations,  cash  flows and  stockholders'  deficit  in
conformity  with generally  accepted  accounting  principles.  In the opinion of
management,  all adjustments considered necessary for a fair presentation of the
results of operation  and  financial  position  have been  included and all such
adjustments are of a normal recurring  nature.  Operating  results for the three
months ended August 31, 2001 are not necessarily  indicative of the results that
can be expected for the year ending May 31, 2002.


                                        2

<PAGE>



                       delSECUR CORPORATION AND SUBSIDIARY
                          (A Development Stage Company)
                           CONSOLIDATED BALANCE SHEETS
                         (expressed in Canadian dollars)

<TABLE>
<CAPTION>
                                                                        August 31,                  May 31,
                                                                           2001                      2001
                                                                  ----------------------     ---------------------
ASSETS                                                                  (Unaudited)                (Audited)
   CURRENT ASSETS
<S>                                                               <C>                        <C>
     Cash                                                         $                    0     $                   0
     Subscription receivable                                                     410,270                         0
     Sales taxes receivable                                                       50,640                    44,806
     Prepaid expenses                                                             32,293                    37,239
     Receivable-related party                                                    185,000                   185,000
                                                                  ----------------------     ---------------------

                                      TOTAL CURRENT ASSETS                       678,203                   267,045

OTHER ASSETS
   Property and equipment                                                        149,785                   161,539
   License from related party                                                          1                         1
                                                                  ----------------------     ---------------------
                                                                                 149,786                   161,540
                                                                  ----------------------     ---------------------

                                                                  $              827,989     $             428,585
                                                                  ======================     =====================

LIABILITIES & DEFICIT
   CURRENT LIABILITIES
     Bank overdraft                                               $               69,587     $               1,083
     Accounts payable                                                            183,987                   218,029
     Accrued liabilities                                                          39,493                   108,073
     Payable-related party                                                       184,907                   184,907
     Payable - officer                                                         1,550,800                 1,545,700
     Payable - director                                                          255,607                   235,000
     Loans payable                                                               190,000                   190,000
     Deposit on shares not yet issued                                                  0                   375,000
                                                                  ----------------------     ---------------------

                                 TOTAL CURRENT LIABILITIES                     2,474,381                 2,857,792

     Deferred credit                                                               3,449                     3,832

   STOCKHOLDERS' DEFICIT
     Common Stock $.001 par value:
       Authorized - 100,000,000 shares
       Issued and outstanding 14,809,304
                       shares (14,509,304 at May 31, 2001)                        21,154                    20,698
     Additional paid-in capital                                                7,456,814                 6,414,414
     Deficit accumulated during the development
       stage                                                                  (9,127,809)               (8,868,151)
                                                                  ----------------------     ---------------------

                               TOTAL STOCKHOLDERS' DEFICIT                    (1,649,841)               (2,433,039)
                                                                  ----------------------     ---------------------

                                                                  $              827,989     $             428,585
                                                                  ======================     =====================
</TABLE>


                                        3

<PAGE>

                       delSECUR CORPORATION AND SUBSIDIARY
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                         (expressed in Canadian dollars)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                              Three Months Ended                  From Date of
                                                                  August 31,                      inception to
                                                          2001                  2000                8/31/2001
                                                 -----------------     -------------------     -----------------
<S>                                              <C>                   <C>                     <C>
Net sales                                        $               0     $                 0     $               0
Cost of sales                                                    0                       0                     0
                                                 -----------------     -------------------     -----------------

                                GROSS PROFIT                     0                       0                     0

Other income                                                     0                       0                 8,000

Depreciation and amortization                               11,754                   9,863               261,596
Interest expense                                             5,700                   7,250               104,026
Research and development                                    28,741                  43,900               952,718
Loss on settlement of shares                                     0                 232,841               426,486
General and administrative expenses                        213,463               1,323,288             7,347,717
                                                 -----------------     -------------------     -----------------
                                                           259,658               1,617,142             9,092,543
                                                 -----------------     -------------------     -----------------

                                    NET LOSS     $        (259,658)    $        (1,617,142)    $      (9,084,543)
                                                 =================     ===================     =================
Net income (loss) per weighted
   average share                                 $            (.02)    $              (.11)
                                                 =================     ===================

Weighted average number of common
   shares used to compute net income
   (loss) per weighted average share                    14,763,652              14,316,548
                                                 =================     ===================
</TABLE>



                                        4

<PAGE>

                       delSECUR CORPORATION AND SUBSIDIARY
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                         (expressed in Canadian dollars)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                       Three Months Ended             From Date of
                                                                           August 31,                 inception to
                                                                     2001              2000             8/31/2001
                                                               ---------------    ---------------  ------------------
OPERATING ACTIVITIES
<S>                                                            <C>                <C>              <C>
  Net (loss)                                                   $      (259,658)   $    (1,617,142) $       (9,084,543)
  Adjustments to reconcile net (loss) to cash
     provided (used) by operating activities:
       Depreciation                                                     11,754              9,863             261,596
       Amortization of deferred credit                                    (383)              (383)             (4,217)
       Free rent                                                             0                  0               7,666
       Stock issued for services                                             0          1,836,376           3,969,292
       Related party advances                                                0                  0             310,402
       Foreign exchange fluctuation                                      5,100            (26,300)            137,500
       Changes in assets and liabilities:
         Subscription receivable                                      (410,270)                 0            (410,270)
         Sales tax receivable                                           (5,834)           (14,015)            (50,640)
         Prepaid expenses                                                4,946             11,378             (32,293)
         Officer loan                                                   20,607           (144,709)            255,607
         Receivable - related party                                          0               (600)           (495,402)
         Accounts payable                                              (34,042)           (19,839)            183,987
         Accrued liabilities                                           (68,580)           (30,741)             39,493
         Payable - related party                                             0                  0             184,907
                                                               ---------------    ---------------  ------------------
                                    NET CASH PROVIDED (USED)
                                     BY OPERATING ACTIVITIES          (736,360)             3,888          (4,726,915)

INVESTING ACTIVITIES
  Purchase of property & equipment                                           0               (917)           (411,381)
                                                               ---------------    ---------------  ------------------

                                    NET CASH PROVIDED (USED)
                                     BY INVESTING ACTIVITIES                 0               (917)           (411,381)

FINANCING ACTIVITIES
  Loan                                                                       0                  0             601,850
  Repayment of loan                                                          0                  0            (411,850)
  Loan from director                                                         0                  0           2,085,250
  Increase in Bank overdraft                                            68,504                  0              69,587
  Stock sold                                                               456                160               1,165
  Contribution by director                                            (100,000)                 0           1,649,894
  Deposit on shares                                                   (375,000)                 0                   0
  Increase in paid-in capital                                        1,142,400                  0           1,142,400
                                                               ---------------    ---------------  ------------------

                                        NET CASH PROVIDED BY
                                        FINANCING ACTIVITIES           736,360                160           5,138,296
                                                               ---------------    ---------------  ------------------

                           INCREASE (DECREASE) IN CASH
                                        AND CASH EQUIVALENTS                 0              3,131                   0

Cash and cash equivalents at beginning of year                               0              8,755                   0
                                                               ---------------    ---------------  ------------------

                                   CASH AND CASH EQUIVALENTS
                                            AT END OF PERIOD   $             0    $        11,886  $                0
                                                               ===============    ===============  ==================

NON-CASH FINANCING
  & INVESTING ACTIVITIES
  Repayment of a loan to a shareholder                         $             0    $             0  $       (2,085,350)
  Acquisition of license                                                     0                  0          (1,413,299)

Cash paid for interest                                         $         5,700    $         7,250  $          104,026
                                                               ===============    ===============  ==================
</TABLE>

During 2001, the Company issued 300,000 shares of common stock for $1,142,400,
of which $410,270 is receivable at August 31, 2001.

During 2000, the Company issued 108,130 shares of common stock for services of
$1,603,535 and to settle liabilities of $232,841.

                                        5

<PAGE>



ITEM 2.           Management's Plan of Operation.

     Pursuant to an Agreement  made and entered  into on February  25th 1998 the
Company  issued and  delivered on February 26,  1998,  12,848,300  shares of its
Common Stock bearing a restrictive  legend to 3127575  Canada Inc. (now delSECUR
Inc.), a Canadian  Corporation,  in exchange for which issuance, it acquired all
of the  outstanding  shares of 3127575 Canada Inc.  Through 3127575 Canada Inc.,
the  Company has become the  exclusive  licensee  of the del-ID  technology  for
personal   identification   by   means  of   electronic   scanning   of   finger
characteristics.  3127575 Canada Inc.,  obtained these  exclusive  rights by the
Exclusive  License  Agreement  dated  November 12, 1997 between it and Pierre de
Lanauze, inventor of the del-ID technology.

     The  transaction  was  exempt  from the  registration  requirements  of the
Securities  Act of 1933 by virtue of Section  4(2)  thereof.  Also,  because the
12,848,300  shares  were  issued  solely to non-U.S.  persons,  the  transaction
qualified for exemption under Rules 901 et seq. of Regulation S.

     Following the above  transaction  the former  shareholders of delSECUR Inc.
owned 92.5% of the outstanding shares of the Company.

     The   del-ID(Registered)    technology   permits   precise   and   positive
authentication  of the identity of any living  individual and is applicable to a
wide range of financial  transactions where  authentication of the individual is
necessary  to  eliminate   fraud  and  other  improper  use  of  services.   The
del-ID(Registered)  system collects biological data from the finger image of the
individual and transfers the image to a unique  electronic  signature called the
"del-gram".  The del-gram is not a digitized  bitmap image of the finger,  but a
synthesized subset of biological data sufficient to identify the individual.

     Commercial  applications of the del-ID(Registered)  technology are numerous
and  include  access  to the  information  highway/internet,  identification  of
employees  working from a home office and requiring access to certain  databases
or  information,  health  cards,  social  insurance  cards,  drivers'  licenses,
passport control encryption and access to confidential files, control of payment
by  debit  or  credit  payment   systems  such  as  credit  cards,   smartcards,
authentication  of oral telephone  ordering,  access control to sensitive areas,
hotel room access, cellular and digital telephone controls, automobile entry and
protection,  census and election control,  door locks, vault locks,  residential
alarm system controls,  timesheet  management,  student file management and many
others.

     Patent  protection  was pending for the del-ID system in the United States.
Since June 26, 2001, The United States Patent  application  has been allowed for
issuance by the U.S. Department of Commerce Patent and Trademark Office.

     We improved the  technology  from a proof of concept to totally  functional
devices that we called "the first generation".  Those del-ID(Registered) devices
will be implemented for dedicated  applications with leading  corporations.  The
secondary done in parallel covers the

                                        6

<PAGE>



implementation  of a study in a controlled  laboratory  environment.  During the
last two years,  an amount of  $446,521  was spent for  Research &  Development,
$184,569  for the year ending May 31, 2000 and  $261,952 for the year ending May
31, 2001.  Research and  development  expenses  were $28,741 and $43,900 for the
three months ended August 31, 2000 and 2001 respectively.

     Moreover,  culminating  several months of discussions with various agencies
and senior levels of the United States Government,  the Company is involved with
National Security Agency who has signed a Confidential Agreement. The signing of
the agreement will permit delSECUR Inc. to disclose its core  del-ID(Registered)
technology  to NSA for testing and  evaluation  as a national and  international
means of protection against computer hacking.  They have to make recommendations
to the US Federal  Government.  The  signing of this  Confidentiality  Agreement
confirmed  the  uniqueness  and  innovative  aspects of the del-  ID(Registered)
technology,  as mentioned on the Press Release  issued on April 5th,  2000.  The
next step will be the implementation of the totally functional del-ID technology
within their laboratory as agreed with their representatives.

     The Company expects to encounter substantial competition in the business in
which it proposes to engage. It is likely that the competing  entities will have
significantly greater experience, resources, facilities, contacts and managerial
expertise than the Company and will, consequently,  be in a better position than
the  Company to obtain  access to and to engage in the  proposed  business.  The
Company  may not be in a position to compete  with  larger and more  experienced
entities. Business opportunities in which the Company may ultimately participate
are likely to be very risky and extremely speculative.

     The Company will not manufacture del-ID  (Registered) cards or card readers
directly.  This will tend to minimize the capital  requirements  of the Company,
its  principal  activities  being  limited to  marketing  the  del-ID  system to
manufacturers and/or users  internationally.  Anticipated sources of revenue are
license fees payable by government agencies and corporate entities for the right
to  manufacture,  use or sell cards and card  readers  incorporating  the del-ID
system,  as well as royalty  payments by such  entities for each card and reader
employed  in a  del-ID  system.  We  anticipate  the  first  commercial  revenue
following  the  issuance  of  first  application  results  from  our  technology
showcases.

     delSECUR  Corporation  announced July 1st 1999 the creation of a new wholly
owned  subsidiary,  delSECUR  USA Inc.,  incorporated  in Delaware  and with its
principal  offices  located at 555, 11th Street NW, 6th Floor,  Lincoln  Square,
Washington D.C. 20004.

     This  subsidiary  has been  created  specifically  to manage  all  delSECUR
operations  in the  United  States.  The  decision  to  locate  the  offices  in
Washington  D.C. was made  following the recent  expressions  of interest in the
del-ID  (Registered)  technology  by  several  U.S.  Government  agencies.  This
subsidiary has no employees and does not have any operations.

     The  corporation's  Canadian  subsidiary  has  currently 5 employees of its
officers of the Company.

                                        7

<PAGE>



     The Agreement dated February 25, 1998 and the Exclusive  License  Agreement
dated  November  12, 1997 were  attached  as  Exhibits A and B to the  Company's
electronic filing of Form 8-K on March 10, 1998.

     In December 2000, the Company adopted the delSECUR Corporation Stock Option
Plan for the granting of stock  options to  directors,  officers,  employees and
consultants of the Company.  The Company has reserved 1,400,000 shares of common
stock for issuance  under the Plan,  in order to enable  certain key  employees,
officers,  directors and  consultants  of the  Corporation to participate in the
growth of the  Corporation  and thereby  provide  effective  incentives for such
individuals. The Plan shall be managed by the Board of Directors.

     In accordance with the terms of the Plan, the  beneficiaries may be granted
options  to  purchase  ordinary  shares  at a price  determined  by the Board of
Directors.  The price may not be below the market price in  accordance  with the
regulations  established by the regulatory  bodies having  jurisdiction over the
securities  of the  Corporation.  The  total  amount  of  common  shares  of the
Corporation that may be subscribed under the Plan is 1,400,000 shares.

     The financing of current operations will be provided in part by the Balance
to be received of USD $410,270 of the Private  placements in the initial  amount
of USD $1,750,000.  We are hopeful to close the transaction  before  mid-October
2001.

     If needed, the controlling shareholder, Mr. Pierre de Lanauze, will provide
the  appropriate  funding to meet the company's  operations.  This funding arise
from the sales of shares  from his  personal  portfolio.  Mr. de  Lanauze  holds
6,975,797  ordinary shares carrying  shares  certificate  number 2010. The total
number of shares issued and outstanding of delSECUR CORPORATION is 14,809,304.

     Management is of the opinion that the Company's del-ID  technology,while as
yet untested in the marketplace,  represents a viable business  opportunity in a
number of different fields of government and business  activity.  Given the well
publicized worldwide  requirement for ID authentication  systems and the paucity
of suitable alternatives available, it is the intention of management to proceed
by way  of  co-ventures,  joint  ventures,  sublicense  agreements  and  similar
arrangements with major entities,  including governments at all levels, that can
benefit from  implementing  the  technology in their  existing  operations.  The
Company  has no present  intention  to  manufacture  del-ID  products;  instead,
products will be manufactured by licensed outside suppliers/users.

     The last twelve  months have been  dedicated to finalizing  the  technology
del- ID(registered)  advancing from a concept version all the way to pre-commer-
cialization  edition devices. We actually have a functional reader to create the
abstract image from a living finger with the enrolment  software and diagnostics
both operational. We have also developed an application for a smart card.

     We are now in the process to implement  technologies  showcases with banks,
government and industries. We have already letter of intent to this effect.

                                        8

<PAGE>


     We have gained much  intelligence  and credibility when the patent has been
allowed  to Mr. De  Lanauze  on the  del-ID(registered)  technology  by the U.S.
Patent Office. delSECUR can confirm to hold the exclusive, world-wide license of
a unique technology of which the intellectual  property is official  recognized.
For a  potential  licensee  this is a factor  in their  decision  to  commit  to
commercialisation and legally with delSECUR.

     There is a momentum to replace  personal  identification  number  (PIN) and
passwords by a more secure  technology.  We are in relation with potential users
and their  interest in the del-  ID(registered)  technology  make the management
team confident to generate incomes in the actual fiscal year.

     As of August 31, 2001,  the Company's  balance sheet showed an  accumulated
deficit  of  $9,127,809,  an  increase  of  $259,658  during  the three  months.
Operations  to  date  have  been  financed  principally  by  loans  from  senior
management  and  others and sales of common  stock.  Additional  unsecured  loan
facilities  continue  to be  available  and are  believed  by  management  to be
sufficient  to finance  operations  over the next  several  months,  pending the
anticipated  initial receipt of contract  revenues during the second half of the
current fiscal year.

     The Company had a net loss of $259,658  for the three  months  ended August
31, 2001 compared  with a loss of  $1,617,142  for the same period for the prior
year. The main decrease from 2000 was reducing promotion expenses by about $1.16
million.

     The Company  will  continue  to seek  marketing  opportunities  for product
licensing  with  governmental  agencies and  corporate  entities on a world-wide
basis.

     As the Company will be engaged in securing  licensing  contracts for use of
its existing  del-ID(R)  technology,  no  significant  expansion of the physical
plant,  equipment  or number of employees is foreseen for the period of the next
twelve months.

                                   SIGNATURES

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                            delSECUR Corporation


Date:    October 22, 2001          By:  /s/ Pierre de Lanauze
     --------------------             -----------------------------------------
                                            Pierre de Lanauze, President,
                                            Chairman of the Board and Director


                                        9