10QSB

                       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 the quarterly period ended December 31, 2000, or

[X]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR 15 (d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

     For the transaction period from October 1, 2000 tl December 31, 2000

                        Commission File Number 000-24877


                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                -------------------------------------------------
             (Exact name of registrant as specified in its charter)


         Delaware                                              77-0096608
      --------------                                           ----------
(State or other jurisdiction of                            (I.R.S. Employer
Incorporation or Organization)                            Identification No.)


                        5380 NORTH STERLING CENTER DRIVE
                           WESTLAKE VILLAGE, CA 91361
           (Address of principal executive offices including zip code)

                                 (818) 865-2205
              (Registrant's Telephone number, including area code)

                                 NOT APPLICABLE
(Former  Name,  Former  Address,  and Former  Fiscal Year, if changed Since Last
                                    Report)

indicate  by check  mark  whether  the  registrant:  (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
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

Yes [X]      No [ ]

The number of shares  outstanding of the issuer's common stock,  par value $.01
per share, as of December 31, 2000, was 9,202,437.

<PAGE>


                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                                   FORM 10-QSB
                FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2000

                                Table of Contents

                                                                       PAGE
                                                                       ====
Item 1  Financial Statements

        Balance sheet                                                    F-1

        Statement of stockholders' equity                                F-2

        Statement of operations                                          F-3

        Statement of comprehensive loss                                  F-4

        Statement of cash flows                                    F-5 - F-6

        Notes to financial statements                              F-7 - F-9


<PAGE>


                 ENVIROMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                         (A Development Stage Company)

                                 BALANCE SHEETS
<TABLE>
<CAPTION>

                                                      DECEMBER 31,  SEPTEMBER 30,
                                                          2000            2000
                                                      (Unaudited)      (Audited)
                                                      -----------    -----------
                                     ASSETS
<S>                                                   <C>            <C>
CURRENT ASSETS
     Cash                                             $    67,919    $   145,208
     Marketable securities                                  1,354         10,332
     Notes receivable, net of allowance of $200,000          --             --
     Current portion of notes receivable, related
          parties, net of allowance of $217,659            67,146         67,146
     Interest receivable                                   60,814         45,787
     Other                                                 23,437         27,063
                                                      -----------    -----------
          Total current assets                            220,670        295,536
                                                      -----------    -----------

EQUIPMENT                                                  28,865         26,274
                                                      -----------    -----------

OTHER ASSETS
     Notes receivable, related parties, net
          of current portion                                 --              415
     Deposits                                               3,220          3,220
     Mining rights                                          5,000          5,000
                                                      -----------    -----------
          Total other assets                                8,220          8,635
                                                      -----------    -----------

TOTAL ASSETS                                          $   257,755    $   330,445
                                                      ===========    ===========


                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Accounts payable                                 $   251,464    $   218,786
     Accrued salaries                                     388,542        370,542
     Accrued interest                                      20,834          6,667
     Due to officers                                       38,606         16,856
                                                      -----------    -----------
          Total current liabilities                       699,446        612,851
                                                      -----------    -----------

Convertible note payable                                  700,000        500,000
                                                      -----------    -----------

Total liabilities                                       1,399,446      1,112,851
                                                      -----------    -----------

STOCKHOLDERS' EQUITY
     Common stock, $.01 par value, authorized
      20,000,000 shares; issued and outstanding
      9,202,437 shares                                     92,024         92,024
     Preferred stock, $.01 par value,
      authorized 20,000,000 shares; issued
      and outstanding 3,000 shares                             20             20
     Additional paid-in capital                         8,951,833      8,951,833
     Deficit accumulated during
       development stage                               (9,367,173)    (9,016,866)
     Accumulated deficit prior to
       development stage                                 (695,452)      (695,452)
     Accumulated other comprehensive income (loss)       (122,943)      (113,965)
                                                      -----------    -----------
          Total stockholders' equity                   (1,141,691)      (782,406)
                                                      -----------    -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY            $   257,755    $   330,445
                                                      ===========    ===========
</TABLE>


                       See notes to financial statements


                                      F-1
<PAGE>


                 ENVIROMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                         (A Development Stage Company)

                       STATEMENTS OF STOCKHOLDERS' EQUITY

                      THREE MONTHS ENDED DECEMBER 31, 2000
                                  (Unaudited)
<TABLE>
<CAPTION>


                                                      Convertible
                            Common stock            Preferred stock        Additional
                         # of                     # of                      paid-in
                        Shares       Amount      Shares        Amount       Capital
                      ----------   ----------   ----------   ----------   ----------
<S>                    <C>         <C>               <C>     <C>          <C>
Balance at
 September 30, 2000    9,202,437   $   92,024        2,000   $       20   $8,951,833

Common stockholder
loss for the period         --           --           --           --           --

Unrealized loss on
marketable
securities                  --           --           --           --           --
                      ----------   ----------   ----------   ----------   ----------

Balance at
December 31, 2000      9,202,437   $   92,024        2,000   $       20   $8,951,833
                      ==========   ==========   ==========   ==========   ==========
</TABLE>


                        Deficit      Accumulated
                      accumulated      deficit      Accumulated
                      during the     prior to the      other           Total
                      development    development   comprehensive   stockholders'
                         stage          stage      income (loss)      equity
                      -----------    -----------    -----------    -----------
Balance at
 September 30, 2000   $(9,016,866)   $  (695,452)   $  (113,965)   $  (782,406)

Common stockholder
loss for the period      (350,307)          --             --         (350,307)

Unrealized loss on
marketable
securities                   --             --           (8,978)        (8,978)
                      -----------    -----------    -----------    -----------

Balance at
December 31, 2000     $(9,367,173)   $  (695,452)   $  (122,943)   $(1,141,691)
                      ===========    ===========    ===========    ===========


                       See notes to financial statements


                                      F-2
<PAGE>


                 ENVIROMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                         (A Development Stage Company)

                            STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>

                                                             FOR THE PERIODS
                                                               (Unauditied)
                                                   THREE MONTHS ENDED     OCT 1, 1995
                                                       DECEMBER 31,            to
                                                   2000          1999     DEC 31, 2000
                                               ----------    ----------    ----------
<S>                                               <C>           <C>         <C>
Operating expenses
      Selling, general, and administrative        309,203       238,572     4,181,243
      Research and development                     41,969        39,356     1,166,625
      Write-down of note receivable                  --            --         200,000
      Write-down of note receivable -                --            --         454,359
           related party                             --            --           --
      Write-down of investment                       --            --          58,887
                                               ----------    ----------    ----------

           Total operating expenses               351,172       277,928     6,061,114
                                               ----------    ----------    ----------

Loss from operations                             (351,172)     (277,928)   (6,061,114)
                                               ----------    ----------    ----------

Other income (expense)
      Interest income                              15,032        19,240       235,250
      Interest expense                            (14,167)         --         (44,147)
      Loss on sale of marketable securities          --            --        (200,961)
                                               ----------    ----------    ----------

           Total other income(expense)                865        19,240        (9,858)
                                               ----------    ----------    ----------

Net loss before provision for income taxes       (350,307)     (258,688)   (6,070,972)

Provision for taxes                                  --            --           4,799
                                               ----------    ----------    ----------

Loss before extraordinary item                   (350,307)     (258,688)   (6,075,771)

Extraordinary item
      Gain on extinguishment of debt                 --            --          64,208
                                               ----------    ----------    ----------

Net loss                                         (350,307)     (258,688)   (6,011,563)

Preferred stock premium                                 0             0    (3,355,610)
                                               ----------    ----------    ----------

Net loss attributable to common shareholders     (350,307)     (258,688)   (9,367,173)
                                               ==========    ==========    ==========

Net loss per common share                      $     0.04    $     0.03
                                               ==========    ==========

Weighted-average common shares
      outstanding                               9,202,437     8,894,959
</TABLE>


                       See notes to financial statements


                                      F-3
<PAGE>


                 ENVIROMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                         (A Development Stage Company)

                   STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)


                                                 FOR THE PERIODS
                                                   (Unaudited)
                                      THREE MONTHS ENDED       OCT 1, 1995
                                          DECEMBER 31,              to
                                      2000          1999       DEC 31, 2000
                                  -----------    -----------    -----------
Net loss attributable to
       common shareholders           (350,307)      (258,688)    (9,367,173)
Other comprehensive loss,
       Net of tax
       Unrealized holding loss
       on marketable securities        (8,978)          --         (122,943)
                                  -----------    -----------    -----------

Net unrealized gain (loss)             (8,978)          --         (122,943)
                                  -----------    -----------    -----------

Comprehensive loss                $  (359,285)   $  (258,688)   $(9,490,116)
                                  ===========    ===========    ===========


                       See notes to financial statements.


                                      F-4
<PAGE>


                 ENVIROMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                         (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>

                                                               FOR THE PERIODS
                                                                 (unaudited)
                                                    THREE MONTHS ENDED      OCT 1, 1995
                                                       DECEMBER 31,             to
                                                   2000          1999       DEC 31, 2000
                                               -----------    -----------    -----------
<S>                                            <C>            <C>            <C>
CASH FLOWS FROM
OPERATING ACTIVITIES

Net loss                                       $  (350,307)   $  (258,688)   $(6,011,563)
                                               -----------    -----------    -----------
Adjustments to reconcile net loss
       to net cash used in operating
       activities:
       Depreciation and amortization                 2,766          8,694         73,528
       Loss on sale of marketable securities          --             --          200,961
       Write-down of interest receivable              --             --          (45,037)
       Write-down of notes receivable                 --             --          200,000
       Write-down of notes receivable -               --             --             --
            related parties                           --             --          458,191
       Write-down of investment                       --             --           58,887
       Loss on abandonment property                   --             --             --
            and equipment                             --             --            1,093
       Write-down of mining rights                    --             --           35,000
       Gain of extinguishment of debt                 --             --          (64,208)
       Non-cash research & development                --             --          131,250
       Non-cash consulting fees                       --             --          536,306
       Non-cash executive compensation                --             --           23,460
       Stock issued for services rendered             --             --          236,866
       Stock issued fin connection with               --             --             --
            legal settlement                          --             --          105,000
       Stock issued for obtaining patent              --             --           45,000
(Increase) decrease in:                               --             --             --
       Interest receivable                         (15,027)       (18,521)       (60,814)
       Prepaid and other assets                       --             --          (23,438)
       Other assets                                 (3,626)          --           (3,220)
Increase (decrease) in                                --             --             --
       Accounts payable                             32,678         92,588        246,205
       Accrued salaries and benefits                18,000         24,000        445,430
       Accrued interest                             14,167           --           28,154
       Settlement payable                             --             --           10,000
       Due to officers                              21,750           --           25,328
                                               -----------    -----------    -----------
NET CASH USED IN                                      --             --             --
OPERATING ACTIVITIES                              (272,347)      (151,927)    (3,347,621)
                                               -----------    -----------    -----------
</TABLE>


                       See notes to financial statements.


                                      F-5
<PAGE>


                 ENVIROMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                         (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>

                                                                FOR THE PERIODS
                                                                  (unaudited)
                                                     THREE MONTHS ENDED      OCT 1, 1995
                                                        DECEMBER 31,             to
                                                    2000          1999       DEC 31, 2000
                                                -----------    -----------    -----------
<S>                                             <C>            <C>            <C>

CASH FLOWS FROM INVESTING ACTIVITIES
       Invstment in related party                      --             --          (16,077)
       Loans to related parties                        --             (900)      (554,631)
       Loans to unrelated parties                      --          (23,982)      (216,800)
       Purchase of equipment                         (5,357)          --         (103,473)
       Purchase of mining rights                       --             --          (40,000)
       Purchase of marketable securities               --             --         (604,785)
       Proceeds from sale of marketable                --             --             --
            securities                                 --             --          279,514
       Proceeds from loans                              415           --            1,411
                                                -----------    -----------    -----------
NET CASH USED IN
INVESTING ACTIVITIES                                 (4,942)       (24,882)    (1,254,841)
                                                -----------    -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES
       Proceeds from convertible note payable       200,000           --          700,000
       Proceeds from exercise of warrants              --             --          532,812
       Proceeds from sale of preferred stock           --             --        3,000,000
       Proceeds from sale of common stock              --           80,083        820,100
       Costs to raise capital                          --             --         (357,023)
       Common stock redeemed                           --             --           (5,700)
       Loan payments                                   --             --          (22,000)
                                                -----------    -----------    -----------
NET CASH PROVIDED BY FINANCING
       ACTIVITIES
                                                    200,000         80,083      4,668,189
                                                -----------    -----------    -----------

NET INCREASE/(DECREASE) IN CASH                     (77,289)       (96,726)        65,727

CASH, BEGINNING                                     145,208        105,058          2,192
                                                -----------    -----------    -----------

CASH, ENDING                                    $    67,919    $     8,332    $    67,919
                                                ===========    ===========    ===========
</TABLE>


                       See notes to financial statements.


                                       F-6
<PAGE>


                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                      THREE MONTHS ENDED DECEMBER 31, 2000
                                   (Unaudited)
1.       Nature of Business

The Company was  incorporated  in 1983 as CCRS,  III, Inc. In 1989,  the Company
changed  its name to Central  Corporate  Reports  Services,  Inc.,  merged  with
Information  Bureau Inc. and operated in the financial public relations business
until March 1990 when the Company became  inactive.  In 1990 the Company changed
its name back to  Combined  Assets,  Inc.  and in 1991  changed  its name to ACP
International,  Inc. and in 1994 changed its name back to Combined Assets,  Inc.
In January 1995,  the  Company's  name was changed to  Environmental  Products &
Technologies Corporation.  At the end of 1995, the Company commenced development
of a waste  management  system to control  odors and solid  stream  waste in the
farming  industry.  In  addition,   the  Company  is  developing  organic  based
insecticides  for  agricultural,  commercial and residential use. The Company is
currently in the development  stage of operations and, to this time, has devoted
its time to rising  capital,  product and  supplier  development  and  marketing
future products. No product has been assembled, manufactured or marketed at this
time other than prototypes assembled for demonstration and testing purposes.

2.       Summary of significant accounting policies

Financial statements

The balance  sheet as of  December  31,  2000,  and the  related  statements  of
stockholders'  equity,  operations  and cash  flows for the three  months  ended
December 31, 2000, and 1999, are unaudited.  Such unaudited financial statements
have been prepared in accordance with generally accepted  accounting  principles
for  interim  financial  reporting  and with the  instructions  to Form  10-QSB.
Accordingly, they do not include all of the information and disclosures required
by generally accepted accounting  principles for complete financial  statements.


                                      F-7
<PAGE>


In the opinion of management,  all  adjustments,  consisting of normal recurring
accruals  considered  necessary  for a fair  presentation,  have been  included.
Results for the three  months  ended  December  31,  2000,  are not  necessarily
indicative of the results that may be achieved for any other  interim  period or
for the fiscal year ending September 30, 2001.  These statements  should be read
in conjunction  with the financial  statements and related notes included in the
Company's Annual Report on Form 10-KSB for the year ended September 30, 2000.

Fair market value of financial instruments

The fair market value of the notes receivable  approximate cost based on current
borrowing  rates.  Equity  securities held by the Company include  available for
sale securities,  which are reported at fair value. Unrealized holding gains and
losses for available for sale securities are excluded from earnings and reported
net of any income tax affect as a component of stockholders'  equity.

Loss per share

The Company calculates loss per share in accordance with SFAS No. 128, "Earnings
per  Share".  Basic loss per share is computed by  dividing  loss  available  to
common shareholders by the weighted-average number of common shares outstanding.
Diluted  loss per share is computed  similar to basic loss per share except that
the  denominator is increased to include the number of additional  common shares
that would have been  outstanding if the potential common shares had been issued
and if the additional  common shares were  dilutive.  For the three months ended
December 31, 2000 and 1999,  the  following  potential  common  shares have been
excluded  from the  computation  of diluted  net loss per share for all  periods
presented because the effort would have been anti-dilutive:

                                                      2000             1999
                                                      ----             ----
Options outstanding under the Company's
         stock option plans                          50,000           50,000
Warrants issued for services rendered               325,000          325,000
Warrants issued with convertible note
         payable                                    350,000              ---


                                      F-8
<PAGE>


Comprehensive net loss

On October 1, 1998, the Company  adopted FASB No. 130,  Reporting  Comprehensive
Income. Statement No. 130 requires the reporting of comprehensive income/loss in
addition to net income/loss from operations.  Comprehensive income/loss requires
the inclusion of certain financial information not recognized in the calculation
of net income/loss,  including  unrealized holding gains and losses on available
for sale of securities.  Total  comprehensive  loss is shown in the Statement of
Comprehensive Loss.

Concentration of credit risk

The Company primarily  transactions its business with two financial institutions
and may maintain deposits in excess of federally insured limits. At December 31,
2000, the Company has not  experienced  any losses in such accounts and believes
it is not exposed to any significant credit risk on cash and cash equivalents.

3.       Property and equipment

Property and equipment at December 31, 2000, consisted of the following:

         Office equipment                   $  30,335
         Computer equipment                    70,313
         Leasehold improvements                 1,732
                                            ---------
                                              102,380

         Less accumulated depreciation
         And amortization                      73,515
                                            ---------

         Total                              $  28,865
                                            =========




                                      F-9
<PAGE>


Item 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

RESULTS OF OPERATION

COMPARISON OF THREE MONTHS ENDED DECEMBER 31, 2000, AND 1999.

         The Company  generated no revenue for the three  months ended  December
31,  2000,  and 1999.  During each such  quarter,  the  Company's  efforts  were
directed  at  researching,  designing,  developing  and  testing its Closed Loop
Management System.

         Research  and  development  expenses  primarily  consist of the cost of
personnel and equipment needed to conduct the Company's research and development
efforts.  Research and development  expenses for the three months ended December
31, 2000, increased by $2,613, or 7%, from $39,356 to $41,969.  This increase in
research  and  development   expenses  reflects  expenses  associated  with  the
research, design and development of the Company's Closed - Loop Waste Management
System.

         General and administrative expenses for the three months ended December
31, 2000, increased by $ 70,631, or approximately 30% to $309,203, from $238,572
for the three months  ended  December  31,  2000.  This  increase in general and
administrative  expenses was  primarily  the result of the increase in salaries,
travel, legal and professional expenses.

LIQUIDITY AND CAPITAL RESOURCES

         The  Company's  primary  capital needs have been to fund the design and
development of its prototype  Closed-Loop Waste Management System. The Company's
primary  sources of liquidity  have been private  placements  of equity and debt
securities and loans from officers/ stockholders on an as needed basis.

         Between  October and December  1995, the Company sold 100,000 shares of
Common Stock for an aggregate of $10,000, or $.10 per share. Between January and
December  1996, the Company sold 400,000 shares of Common Stock for an aggregate
of $189,650,  or approximately $.47 per share.  Between April and June 1996, the
Company sold 40,000 shares of Common Stock for an aggregate of $35,000,  or $.87
per share.  Between July and September  1996, the Company sold 480,000 shares of


                                       1
<PAGE>


Common  Stock for an aggregate of  $149,200,  or  approximately  $.31 per share.
Between June and September 1997, the Company sold 550,000 shares of Common Stock
for an aggregate of $337,925,  or approximately  $.614 per share. The figures in
the paragraph do not give effect to the two-for-one forward stock split that was
effected by the Company in May 1998.

         In April  1998,  the  Company  sold 3,000  shares of Series A preferred
Stock  together with warrants  (the  "Private  Placement  Warrants") to purchase
300,000 shares of Common Stock (the "1998 Private Placement") for gross proceeds
of $3,000,000.  The net proceeds to the Company of approximately $2,675,000 will
be used for  continue  research  and  development,  working  capital and general
corporate purpose. The Private Placement Warrants have an initial exercise price
of $3.875 per share and expire on March 31,2003.  The Private Placement Warrants
contain  provisions  for the  adjustment of the exercise price and the aggregate
number of shares issuable upon exercise under certain  circumstances,  including
without   limitation,    stock   dividends,   stock   splits,    reorganization,
reclassification, consolidations, certain dilutive sales of securities for which
the Private Placements Warrants are exercise able below the then existing Market
Price (as  defined) and failure to maintain a  sufficient  number of  authorized
shares of Common Stock for issuance  and delivery  upon  exercise of the Private
Placement Warrants.

         The Company also has commitments under (i) an employment agreement with
Marvin Mears, the Company's  President and Chief Executive Officer;  and (ii) an
office lease that expires December 31, 2001.

         Based on its  current  operating  plan,  the Company  anticipates  that
additional  financing  will be required to finance  its  operations  and capital
expenditures.  The Company's  currently  anticipated levels of revenues and cash
flow are  subject to many  uncertainties  and cannot be  assured.  Further,  the
Company's  business plan may change, or unforeseen  events may occur,  requiring
the  Company to raise  additional  funds.  The amount of funds  required  by the
Company will depend upon many factors, including without limitations, the extent
and timing of sales of the Company's  waste  management  system,  future product
cost, the timing and cost associated with the  establishment and / or expansion,
as appropriate,  of the Company's  manufacturing,  development,  engineering and


                                       2
<PAGE>


customer  support  capabilities,  the timing and cost of the  Company's  product
development  and  enhancement  activities and the Company's  operating  results.
Until the Company generates cash flow from operations,  which will be sufficient
to satisfy  its cash  requirements,  the Company  will need to seek  alternative
means for financing its operations and capital expenditures and / or postpone or
eliminate certain investments or expenditures.  Potential  alternative means for
financing may include leasing capital equipment,  obtaining a line of credit, or
obtaining additional,  or available on acceptable terms. The inability to obtain
additional  financing or generate  sufficient cash form operations could require
the Company to reduce or eliminate expenditures for capital equipment,  research
and development, production or marketing of its product, or otherwise curtail or
discontinue  its operations,  which could have a material  adverse effect on the
Company's business, financial condition and results of operations.  Furthermore,
if the Company  raises funds through the sale of additional  equity  securities,
the Common Stock currently outstanding may be further diluted.

INFLATION

         Although  certain  of the  Company's  expenses  increase  with  general
inflation  in the  economy,  inflation  has not  had a  material  impact  on the
Company's financial results to date.


                                        3
<PAGE>


                                    SIGNATURE

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

                                                   ENVIRONMENTAL PRODUCTS &
                                                   TECHNOLOGIES CORPORATION

Dated: February 14, 2000                   By: /s/ Marvin Mears
------------------------                   --------------------
                                                   Marvin Mears
                                                   Chief Executive Officer




                                        4