SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10QSB


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

         For the quarterly period ended June 30, 1999 or

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

         For the transition period from ________ to _________


                        Commission File Number 000-24877

                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 $0.01
per share, as of June 30, 1999, was 8,602,697.


<PAGE>




                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                              FINANCIAL STATEMENTS

                    THREE AND NINE MONTHS ENDED JUNE 30, 1999




<PAGE>

                ENVIRONMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                         (A Development Stage Company)

                        NINE MONTHS ENDED JUNE 30, 1999


                                    CONTENTS

                                                                           Page
Financial statements:

       Balance sheet                                                          1

       Statement of stockholders' equity                                      2

       Statement of operations                                                3

       Statement of comprehensive loss                                        4

       Statement of cash flows                                              5-6

       Notes to financial statements                                        7-9




<PAGE>

<TABLE>
                ENVIRONMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                         (A Development Stage Company)

                                 BALANCE SHEETS

                                     ASSETS
<CAPTION>

                                                       June 30,      September 30,
                                                         1999             1998
                                                     -----------      -----------
                                                     (Unaudited)       (Audited)
CURRENT ASSETS
<S>                                                  <C>              <C>
     Cash                                            $   449,312      $ 1,447,444
     Marketable securities                               163,860          385,012
     Notes receivable                                    300,000             --
     Notes receivable, related parties                   350,338          135,000
     Interest receivable                                  49,104            1,446
     Other                                                 9,821             --
                                                     -----------      -----------
          Total current assets                         1,322,435        1,968,902
                                                     -----------      -----------

EQUIPMENT                                                 88,321           77,581
                                                     -----------      -----------

OTHER ASSETS
     Notes receivable, related parties                    24,515           31,631
     Prepaid expenses                                     51,110             --
     Deposits                                              3,220           13,220
     Mining rights                                         5,000            5,000
                                                     -----------      -----------
          Total other assets                              83,845           49,851
                                                     -----------      -----------

TOTAL ASSETS                                         $ 1,494,601      $ 2,096,334
                                                     ===========      ===========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Accounts payable                                $      --        $    11,450
     Accrued salaries                                    116,000           44,000
                                                     -----------      -----------
          Total current liabilities                      116,000           55,450
                                                     -----------      -----------

STOCKHOLDERS' EQUITY
     Common stock, $.01 par value, authorized
      20,000,000 shares; issued and outstanding
      8,602,697 shares                                    43,090           42,735
     Preferred stock, $.01 par value,
     authorized 20,000,000 shares; issued
     and outstanding 2,000 shares                             20               30
     Additional paid-in capital                        8,910,924        8,335,647
     Deficit accumulated during
       development stage                              (6,906,556)      (5,627,088)
     Accumulated deficit prior to
       development stage                                (695,452)        (695,452)
     Accumulated other comprehensive gain/(loss)          26,575          (14,988)
                                                     -----------      -----------
          Total stockholders' equity                   1,378,601        2,040,884
                                                     -----------      -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY           $ 1,494,601      $ 2,096,334
                                                     ===========      ===========
</TABLE>


                       See notes to financial statements


                                       1

<PAGE>

<TABLE>
                ENVIRONMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                         (A Development Stage Company)
                       STATEMENTS OF STOCKHOLDERS' EQUITY
                        NINE MONTHS ENDED JUNE 30, 1999
                                  (Unaudited)
<CAPTION>


                                                                                 Deficit     Accumulated
                              Common stock     Preferred stock                 accumulated     deficit     Accumulated
                          -------------------  ---------------    Additional   during the   prior to the      other         Total
                             # of               # of               paid-in     development   development  comprehensive stockholders
                            shares    Amount   shares   Amount     capital        stage         stage         loss         equity
                            ------    ------   ------   ------     -------        -----         -----         ----         ------
<S>                       <C>        <C>        <C>     <C>      <C>          <C>           <C>          <C>           <C>
Balance at
 September 30, 1998       8,567,148  $ 42,735   3,000   $  30    $ 8,335,647  $(5,627,088)  $ (695,452)  $  (14,988)   $ 2,040,884

Common stockholder
loss for the period                                                              (376,494)                                (376,494)

Unrealized loss on
marketable
securities                                                                                                 (133,896)      (133,896)
Balance at
December 31, 1998         8,567,148    42,735   3,000      30      8,335,647   (6,003,582)    (695,452)    (148,884)     1,530,494

Common stockholder
loss for the period                                                              (420,289)                                (420,289)


Unrealized gain on
marketable securities                                                                                       336,756        336,756
Balance at
March 31, 1999            8,567,148  $ 42,735   3,000   $  30    $ 8,335,647  $(6,423,871)  $ (695,452)  $  187,872    $ 1,446,961

 Conversion of preferred
 stock to common            273,549     2,735  (1,000)    (10)       530,087         --                                    532,812

 Cancellation of common
 stock per court decree    (248,000)   (2,480)                         2,480                                                  --

Common stockholder
loss for the period                                                              (482,685)                                (482,685)

Unrealized loss on
marketable
securities                                                                                                 (161,297)      (161,297)

 Issuance of common stock
 for Acquisition             10,000       100                         42,710                                                42,810
Balance at
June 30, 1999             8,602,697  $ 43,090   2,000   $  20    $ 8,910,924  $(6,906,556)  $ (695,452)  $   26,575    $ 1,378,601
</TABLE>


<PAGE>

<TABLE>
                ENVIRONMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                         (A Development Stage Company)

                            STATEMENTS OF OPERATIONS

                                FOR THE PERIODS
<CAPTION>

                                                   THREE MONTHS ENDED             NINE MONTHS ENDED      October 1, 1995
                                               --------------------------    --------------------------
                                                        JUNE 30,                      JUNE 30,                  to
                                               --------------------------    --------------------------
                                                   1999           1998           1999           1998      June 30, 1999
                                               -----------    -----------    -----------    -----------    -----------
<S>                                            <C>            <C>            <C>            <C>            <C>
SALES                                          $      --      $      --      $      --      $      --      $      --
                                               -----------    -----------    -----------    -----------    -----------

EXPENSES
       Consulting                                   47,455         29,188        105,787        275,602        823,542
       Depreciation                                  8,694          4,682         26,082          5,478         44,539
       Legal and professional                       90,527         38,554        274,720         74,707        530,450
       Liability insurance                             933          2,400            933          2,492         14,434
       Miscellaneous                               (13,135)        (1,894)            45          3,470         52,275
       Office supplies and expenses                 11,596          6,114         77,924         21,300        116,300
       Other expenses                               16,263           --           26,173           --           70,397
       Rent                                          9,010          5,339         28,961         15,747        124,524
       Repairs and maintenance                         320          2,250          2,231          2,250          6,911
       Research and development                     33,209         73,494        241,356        321,490        695,956
       Salaries and payroll taxes                   98,498         80,052        248,301        118,667        487,915
       Telephone and utilities                       5,127          1,263         14,313          2,539         30,393
       Travel                                       15,082         13,449         89,067         20,773        175,374
       Writedown of mining rights                     --             --             --             --           35,000
                                               -----------    -----------    -----------    -----------    -----------

                        Total expenses             323,579        254,891      1,135,893        864,515      3,208,010
                                               -----------    -----------    -----------    -----------    -----------

LOSS FROM OPERATIONS                              (323,579)      (254,891)    (1,135,893)      (864,515)    (3,208,010)

OTHER INCOME (EXPENSE)
       Interest income                              18,960         29,751         63,349         32,334        120,116
       Interest expense                               --           (3,090)        (9,270)       (23,313)
       Loss on sale of marketable securities      (178,066)          --         (206,924)      (206,924)
                                               -----------    -----------    -----------    -----------    -----------

                        Total other income        (159,106)        26,661       (143,575)        23,064       (110,121)

LOSS BEFORE EXTRAORDINARY ITEM                    (482,685)      (228,230)    (1,279,468)      (841,451)    (3,318,131)

EXTRAORDINARY ITEM
       Gain on extinguishment of debt                 --           64,208

NET LOSS                                          (482,685)      (228,230)    (1,279,468)      (841,451)    (3,253,923)

PREFERRED STOCK DIVIDEND                              --             --       (3,295,610)

NET LOSS ATTRIBUTABLE TO
       COMMON SHAREHOLDERS                     $  (482,685)   $  (228,230)   $(1,279,468)   $  (841,451)   $(6,549,533)
                                               ===========    ===========    ===========    ===========    ===========

NET LOSS PER COMMON SHARE                      $     (0.06)   $     (0.05)   $     (0.15)   $     (0.10)   $     (0.87)
                                               ===========    ===========    ===========    ===========    ===========
</TABLE>


                       See notes to financial statements.


                                       3

<PAGE>

<TABLE>
                ENVIRONMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                         (A Development Stage Company)

                        STATEMENTS OF COMPREHENSIVE LOSS

                                FOR THE PERIODS
<CAPTION>

                                       THREE MONTHS ENDED                 NINE MONTHS ENDED         October 1, 1995
                                 -----------------------------      ----------------------------
                                            JUNE 30,                          JUNE 30,                    to
                                 -----------------------------      ----------------------------
                                      1999             1998             1999             1998        June 30, 1999
                                  -----------      -----------      -----------      -----------      -----------
<S>                               <C>              <C>              <C>              <C>              <C>
Net loss                          $  (482,685)     $  (228,230)     $(1,279,468)     $  (841,451)     $(6,549,533)

Other comprehensive loss:
       Unrealized holding
       gains/(losses) arising        (161,297)            --             12,705             --             26,575
       during the period

       Add:  Reclassification
       adjustment for losses
       included in net loss              --               --             28,858             --             28,858
                                  -----------      -----------      -----------      -----------      -----------

Net unrealized loss                  (161,297)            --             41,563             --             55,433
                                  -----------      -----------      -----------      -----------      -----------

Comprehensive loss                $  (643,982)     $  (228,230)     $(1,237,905)     $  (841,451)     $(6,494,100)
                                  ===========      ===========      ===========      ===========      ===========
</TABLE>


                       See notes to financial statements.

                                       4

<PAGE>

<TABLE>
              ENVIRONMENTAL PRODUCTS AND TECHNOLOGIES CORPORATION
                         (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS

                                FOR THE PERIODS
                                  (Unaudited)
<CAPTION>

                                                             THREE MONTHS ENDED             NINE MONTHS ENDED      October 1, 1995
                                                         --------------------------    --------------------------
                                                                  JUNE 30,                      JUNE 30,                  to
                                                         --------------------------    --------------------------
                                                             1999           1998           1999           1998      June 30, 1999
                                                         -----------    -----------    -----------    -----------    -----------
<S>                                                      <C>            <C>            <C>            <C>            <C>
CASH FLOWS FROM
OPERATING ACTIVITIES

Net loss                                                 $  (482,685)   $  (228,230)   $(1,279,468)   $  (841,451)   $(3,253,923)
                                                         -----------    -----------    -----------    -----------    -----------
Adjustments to reconcile net loss
       to net cash used in operating
       activities:
       Depreciation and amortization                           8,694          4,682         26,082          5,478         44,539
       Loss on sale of marketable securities                 178,066           --          206,924           --           28,858
       Loss on disposal of equipment
       Loss on abandoned equipment                              --            1,093           --            1,093          1,093
       Write down of mining rights                              --             --             --             --           35,000
       Gain on extinguishment of debt                           --             --             --             --          (64,208)
       Noncash research & development                           --             --             --          131,250        131,250
       Noncash consulting fees                                  --           (6,854)          --          178,428        536,306
       Other noncash expenses                                   --           10,000           --           10,000           --
       Noncash executive compensation                           --          (20,383)          --            5,000         23,460
        (Increase) decrease in operating assets:                --             --             --             --             --
            Prepaid expenses                                 (29,921)        (2,520)       (40,035)        (2,520)       (40,035)
            Interest receivable                              (18,575)          (784)       (47,658)        (2,352)       (52,313)
            Deposits                                            --          (42,058)        10,000        (44,578)        (3,220)
            Other                                                697           --           (9,821)          --           (6,612)
       Increase (decrease) in operating liabilities: -          --             --             --             --
            Accounts payable                                    --          (11,305)       (11,450)       (17,383)        (5,258)
            Accrued salaries                                  24,000         34,692         72,000         71,000        172,888
            Accrued interest                                    --            6,179           --            4,269          7,320
            Settlement payable                                  --          (10,000)          --          (27,005)        10,000
                                                         -----------    -----------    -----------    -----------    -----------
                Total adjustments                            162,961        (37,258)       206,042        312,680        819,068

NET CASH USED IN
                                                         -----------    -----------    -----------    -----------    -----------
OPERATING ACTIVITIES                                        (319,724)      (265,488)    (1,073,426)      (528,771)    (2,434,855)
                                                         -----------    -----------    -----------    -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES
       Loans to related parties                                 --             --         (485,900)       (12,116)      (755,531)
       Loans to unrelated parties                             (9,023)          --          (23,982)          --          (23,982)
       Purchase of equipment                                    --          (59,593)       (25,049)       (59,593)      (122,180)
       Purchase of mining rights                                --           (5,000)          --          (40,000)       (40,000)
       Purchase of marketable securities                        --             --         (204,785)          --         (604,785)
       Proceeds from sale of marketable                         --             --             --             --             --
            securities                                        55,791           --          260,576           --          157,164

NET CASH USED IN
                                                         -----------    -----------    -----------    -----------    -----------
INVESTING ACTIVITIES                                          46,768        (64,593)      (479,140)      (111,709)    (1,389,314)
                                                         -----------    -----------    -----------    -----------    -----------
</TABLE>


                       See notes to financial statements.


                                       5

<PAGE>

<TABLE>
              ENVIRONMENTAL PRODUCTS AND TECHNOLOGIES CORPORATION
                         (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS

                                FOR THE PERIODS
                                  (Unaudited)
<CAPTION>

                                                             THREE MONTHS ENDED             NINE MONTHS ENDED      October 1, 1995
                                                         --------------------------    --------------------------
                                                                  JUNE 30,                      JUNE 30,                  to
                                                         --------------------------    --------------------------
                                                             1999           1998           1999           1998      June 30, 1999
                                                         -----------    -----------    -----------    -----------    -----------
<S>                                                          <C>          <C>              <C>             <C>         <C>
CASH FLOWS FROM FINANCING ACTIVITIES
       Sale of common stock                                  554,434           --          554,434         90,625      1,374,534
       Sale of preferred stock                                  --        3,000,000           --        3,000,000      3,000,000
       Costs to raise capital                                   --         (324,800)          --         (349,800)      (357,023)
       Loan payments                                            --             (500)          --             --          (22,000)
       Common stock redeemed                                    --             --             --             --           (5,700)

NET CASH PROVIDED BY FINANCING
                                                         -----------    -----------    -----------    -----------    -----------
       ACTIVITIES                                            554,434      2,674,700        554,434      2,740,825      3,989,811
                                                         -----------    -----------    -----------    -----------    -----------

NET INCREASE/(DECREASE) IN CASH                              281,478      2,344,619       (998,132)     2,100,345        447,120

CASH, BEGINNING                                              167,834         27,086      1,447,444        271,360          2,192
                                                         -----------    -----------    -----------    -----------    -----------

CASH, ENDING                                             $   449,312    $ 2,371,705    $   449,312    $ 2,371,705    $   449,312
                                                         ===========    ===========    ===========    ===========    ===========

</TABLE>


                       See notes to financial statements.


                                       6

<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                    THREE AND NINE MONTHS ENDED JUNE 30, 1999
                                   (Unaudited)

               1   Summary of significant accounting policies

Financial statements

The  balance  sheet  as  of  June  30,  1999,  and  the  related  statements  of
stockholders'  equity,  operations  and cash flows for the three and nine months
ended June 30, 1999 and 1998, 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.
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 and nine months ended June 30, 1999,  are not  necessarily
indicative of the results that may be achieved for any other  interim  period or
for the fiscal year ending September 30, 1999.  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, 1998.

Fair market value of financial instruments

The fair market value of the notes receivable approximates cost bases 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 affected as a component of stockholders's equity.

Loss per share

The  computations  of loss per share of  common  stock on the  weighted  average
number of shares outstanding of 8,575,048 (1999), 7,949,648 (1998) and 7,561,478
(cumulative period).

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 securities.


                                       7

<PAGE>

Concentration of credit risk

The Company primarily transacts its business with two financial institutions and
may maintain  deposits in excess of federally  insured limits. At June 30, 1999,
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.

               2            Notes receivable

At June 30, 1999, notes receivable consisted assets of the following:


                 Note receivable, collateralized
                 by equipment and common stock,
                 Interest at 12% per year, due
                         August 25, 1999                           100,000

                 Note receivable, uncollaterized,
                 interest at 10% per year, due by
                      September 15, 1999                           200,000
                                                             --------------

                                                                 $ 300,000
                                                             ==============

               3            Stock options and warrants outstanding
<TABLE>
<CAPTION>
                                          Options      Exercise
                                         Warrants        Price       Exercise date
                                      -------------  ------------  ------------------
<S>              <C>                      <C>         <C>          <C>
                 Options granted          280,000     $ 0.1875     July 16, 1999 to
                                                                   September 30, 2006

                 Options granted           50,000       0.1875     Up to
                                                                   September 30, 2006

                 Warrants issued          300,000       2.000      Up to
                                                                   January 21, 2001

                 Warrants issued          300,000       3.875      Up to April, 2003
                                      -------------

                 Options/warrants
                 Outstanding at
                  June 30, 1999           930,000
                                      =============

                 Options/warrants
                 Exercisable at
                  June 30, 1999           650,000
                                      =============
</TABLE>


                                       8

<PAGE>

Item 2   Management's Discussion and Analysis or Plan of Operations

         The  following  discussion  should  be read  in  conjunction  with  the
financial  statements  and notes thereto  appearing  elsewhere in this quarterly
report on Form 10-QSB for the  quarter and nine months  ended June 30, 1999 (the
"Form 10-QSB"). In addition to historical information, this Form 10-QSB contains
forward- looking statements. The forward-looking statements contained herein are
subject to certain risks and  uncertainties  that could cause actual  results to
differ  materially from those in the  forward-looking  statements.  Factors that
might cause such differences include, but are not limited, to those discussed in
the  section  entitled   "management's   Discussion  and  Analysis  or  Plan  of
Operations."  Readers  are  cautioned  not to  place  undue  reliance  on  these
forward-looking  comments,  which reflect  management's  analysis only as of the
date hereof.  Environmental Products & Technologies  Corporation (the "Company")
undertakes no obligation to publicly revise these  forward-looking  comments, or
to reflect events or  circumstances  that arise after the date thereof.  Readers
should carefully  review the risk factors  described in the other documents that
the  Company  has  filed  and will  continue  to file from time to time with the
Securities and Exchange Commission.

GENERAL

         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 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 to Combined  Assets,  Inc.  and in 1991 changed its name to ACP
International,  Inc., and in 1994 changed its name 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.  The Company is currently in the development  stage of operations and,
to this time,  has devoted  its time to raising  capital,  product and  supplier
development,  and marketing  future  products.  No products have been assembled,
manufactured or marketed at this time, except that the Company has assembled one
prototype  Closed-Loop Waste Management  System for  demonstration  purposes and
three prototype  systems for operation by various  universities.  As of June 30,
1999,  the Company had a deficit  accumulated  during the  development  stage of
$6,906,556  and an  accumulated  deficit  prior  to  the  development  stage  of
$695,452.

         The Company intends to continue  product  development  with the test of
three  full-scale  systems  to  be  operated  at  Utah  State  University,   Cal
Poly-Pomona  and the  University of Wisconsin.  These units will be employed for
continued  demonstrations  and  sales  activity.  While  the  development  or an
input/feed conveyor system has been completed, a variable discharge mechanism to
load and unload the  Bioreactor  needs to be completed.  In addition,  a liquids
waste process has been developed but needs to have its testing completed.


                                       9

<PAGE>
RESULTS OF OPERATIONS

COMPARISON OF THE THREE AND NINE MONTHS ENDED JUNE 30, 1999 AND 1998

         The Company  recognized  no revenue for the three and nine months ended
June 30, 1999,  and for the three and nine months  ended June 30,  1998.  During
each such period, the Company's efforts were directed at researching, designing,
developing and testing its Closed-Loop Waste 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 June 30,
1999, decreased 55% percent or $ 40,285, to $33,209, compared to $73,494 for the
three month period ended June 30, 1998. For the nine-month period ended June 30,
1999 and 1998, the Company's research and development expenses were $241,356 and
$321,490,  respectively  which  represents a decrease of $80,134 or 25%.  During
each such period the Company  continued  research  and  development  work on the
Closed-Loop Waste Management System.

         General and  administrative  expenses  primarily consist of general and
administrative  costs  related to the salaries of the  Company's  administrative
personnel and associated costs, including legal and consulting fees. General and
administrative  expenses for the three months ended June 30, 1999,  increased by
$108,973 or 60% to $290,370,  from $181,397,  for the  three-month  period ended
June  30,  1998.  For  the  nine  months  ended  June  30,  1999,   general  and
administrative expenses increased by $351,512, or 65% to $894,537 from $543,025,
for the nine-month period ended June 30, 1998. This is due to increased spending
for legal and professional fees, salaries and travel.

         The Company's loss from  operations for the three months ended June 30,
1999,  increased  by by  $68,688,  or 27% to  $323,579  from  $254,891  for  the
three-month  period ended June 30, 1998. The Company's loss from  operations for
the nine months ended June 30, 1999,  increased $271,378,  or 31%. to $1,130,295
from $864,515 for the  nine-month  period ended June 30, 1998.  This increase in
loss from  operations  is mainly  attributed  to increased  salaries,  legal and
professional fees, and travel, partially offset by reduced consulting fees.

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
March 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
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 $337,926 or approximately  $.614 per share. The figures in this
paragraph  do not give  effect to the  two-or-one  forward  stock split that was
effected by the Company in May 1998.

         Based on its current  operating plan, the Company  foresees the need to
raise  additional  capital in order to continue to pursue its business  strategy
and is currently seeking external funding.  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


                                       10

<PAGE>

limitation,  the extent and timing of sales of the  Company's  waste  management
system,  future  product  costs,  the  timing  and  costs  associated  with  the
establishment and/or expansion, as appropriate,  of the Company's manufacturing,
development,  engineering and 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 that 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 debt or equity  financing.
There can be no assurance that, if and when needed, additional financing will be
available,  or available on acceptable terms. The inability to obtain additional
financing or generate  sufficient cash from operations could require the Company
to  reduce  or  eliminate  expenditures  for  capital  equipment,  research  and
development,  production or marketing of its products,  or otherwise  curtail or
discontinue  its operations,  which could have a material  adverse affect 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.


                  PART II. OTHER INFORMATION

Item 1.           Legal Proceedings.
                  ------------------
                  On March  16,  1999,  EPTC  and its  management  was  named as
                  defendant in a civil  complaint filed in Los Angeles County by
                  John Bird, former EPTC employee, and sons David Bird and Derek
                  Bird,  alleging,  among other  things,  the  existence  of two
                  separate  stock  option  plans for the  company,  one written,
                  approved  by the  shareholders  and  the  company's  Board  of
                  Directors   and  filed  with  the   Securities   and  Exchange
                  Commission,  and a  second  "oral"  stock  option  plan.  EPTC
                  considers  this  complaint  to be  totally  without  merit and
                  intends to defend vigorously  against the allegations  therein
                  contained.

Item 2.           Changes in Securities.
                  ----------------------
                  None.

Item 3.           Defaults Upon Senior Securities.
                  --------------------------------
                  None.

Item 4.           Submission of Matters to a Vote of Security Holders.
                  ----------------------------------------------------
                  ANNUAL STOCKHOLDERS' MEETING

                  The annual stockholders'  meeting was held April 19, 1999. The
                  stockholders elected three directors, R. Marvin Mears, Charles
                  M. Vance,  and Gerald G.  Nordstrom.  The proposals to adopt a
                  1999 stock incentive plan, 1999 incentive  compensation  plan,
                  and 1999 non-employee  director restricted stock plan, as well
                  as appointment of the auditors, were all approved.

Item 5.           Other Information.
                  ------------------
                  None.

Item 6.           Exhibits and Reports on Form 8-K.
                  ---------------------------------
                  (a)   Exhibits:
                      27.   Financial Data Schedule
                  (b) Reports on Form 8-K.
                        None.


                                       11

<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:    August 12, 1999                          By: /s/Marvin Mears
      -----------------------                          -------------------------
                                                       Marvin Mears
                                                       Chief Executive Officer