10QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10 QSB

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

For the quarterly period ended June 30, 2000, or

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

For the transition period from October 1, 1999 to June 30, 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 $0.01
per share, as of June 30, 2000, was 9,186,437.

<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                                   FORM 10-QSB
                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2000

                                Table of Contents

                                                                       PAGE
                                                                       ====
Item 1  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

Item 2  Management's Discussion and Analysis of Plan of Operations      10

General                                                                 10

Results of Operations                                                   11

Liquidity and Capital Resources                                         11

Inflation                                                               13

Year 2000 Compliance                                                    13

Signatures                                                              15

Exhibit 27 (attached to end of document)


<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                              FINANCIAL STATEMENTS

                    THREE AND NINE MONTHS ENDED JUNE 30, 2000


<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)


                         NINE MONTHS ENDED JUNE 30, 2000


                                                            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>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                                 BALANCE SHEET
                    THREE AND NINE MONTHS ENDED JUNE 30, 2000
<TABLE>
<CAPTION>

                                                           JUNE 30,     SEPTEMBER 30,
                                                             2000           1999
                                                         (Unaudited)     (Audited)
                                                         -----------    -----------
<S>                                                      <C>            <C>
CURRENT ASSETS
         Cash                                            $     6,108    $   105,058
         Marketable securities                                19,794         69,343
         Notes receivable                                      3,056         14,296
         Notes receivable, related parties                      --          187,401
         Interest receivable                                  45,005         16,575
         Other                                                19,131         19,131
                                                         -----------    -----------
                     Total current assets                     93,094        411,804
                                                         -----------    -----------

EQUIPMENT                                                     12,708         43,790
                                                         -----------    -----------
OTHER ASSETS
         Notes receivable                                       --            1,508
         Notes receivable, related parties                    24,015         32,798
         Investment in related party                         186,621           --
         Deposits                                              3,220          3,220
         Mining rights                                         5,000          5,000
                                                         -----------    -----------
                     Total other assets                      218,856         42,526
                                                         -----------    -----------
TOTAL ASSETS                                             $   324,658    $   498,120
                                                         ===========    ===========

                  LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
         Accounts payable                                $   301,650    $    16,297
         Due to Officer                                        8,950          8,950
         Accrued salaries                                    223,000        151,000
                                                         -----------    -----------
                     Total current liabilities               533,600        176,247
                                                         -----------    -----------
STOCKHOLDERS' EQUITY
         Common stock, $.01 par value, authorized
          20,000,000 shares; issued and outstanding
         9,186,437 shares                                     91,863         88,149
         Preferred stock, $.01 par value,
         authorized 20,000,000 shares; issued
         and outstanding 3,000 shares                             20             20
         Additional paid-in capital                        8,568,842      8,568,842
         Deficit accumulated during
           development stage                              (8,119,207)    (7,584,718)
         Accumulated deficit prior to
           development stage                                (695,452)      (695,452)
         Accumulated other comprehensive income (loss)       (54,968)       (54,968)
                                                         -----------    -----------
                     Total stockholders' equity             (208,902)       321,873
                                                         -----------    -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY               $   324,698    $   498,120
                                                         ===========    ===========
</TABLE>


                       See notes to financial statements


                                       1
<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                       STATEMENTS OF STOCKHOLDERS' EQUITY
                         NINE MONTHS ENDED JUNE 30, 2000
<TABLE>
<CAPTION>


                                                                                               Deficit      Accumulated
                                                                                             accumulated      deficit
                             Common stock               Preferred stock        Additional    during the     prior to the
                          # of                        # of                      paid-in      development    development
                         Shares        Amount        Shares        Amount       capital        stage          stage
                       -----------   -----------   -----------   -----------   -----------   -----------    -----------
<S>                      <C>         <C>                 <C>     <C>           <C>           <C>            <C>
Balance at
 September 30,
 1999                    8,814,921   $    88,149         2,000   $        20   $ 8,568,842   $(7,584,718)   $  (695,452)

Common stockholder
loss for the period           --            --            --            --            --        (258,688)          --

Stock issued
duirng period               80,038           800          --            --            --            --             --

                       -----------   -----------   -----------   -----------   -----------   -----------    -----------
Balance at
December 31, 1999        8,894,959        88,949         2,000            20     8,568,842    (7,843,406)      (695,452)
                       -----------   -----------   -----------   -----------   -----------   -----------    -----------
Common stockholder
loss for the period           --            --            --            --            --        (246,396)          --

Stock issued in lieu
of services
during period               10,638           106          --            --            --            --             --
                       -----------   -----------   -----------   -----------   -----------   -----------    -----------
Balance at
March 31, 2000           8,905,597        89,055         2,000            20     8,568,842    (8,089,802)      (695,452)
                       -----------   -----------   -----------   -----------   -----------   -----------    -----------
Common stockholder
loss for the period           --            --            --            --            --         (29,405)          --

Stock issued
during period              280,840         2,808          --            --            --            --             --
                       -----------   -----------   -----------   -----------   -----------   -----------    -----------

Balance at
 June 30, 2000           9,186,437   $    91,863         2,000   $        20   $ 8,568,842   $(8,119,207)   $  (695,452)
                       ===========   ===========   ===========   ===========   ===========   ===========    ===========
</TABLE>

                       See notes to financial statements


                                        2
<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                       STATEMENTS OF STOCKHOLDERS' EQUITY
                         NINE MONTHS ENDED JUNE 30, 2000
                                   (CONTINUED)

                      Accumulated
                         other          Total
                      comprehensive  stockholders'
                      income (loss)     equity
                      -----------    -----------
Balance at
 September 30,        $   (54,968)   $   321,873
                1999

Common stockholder           --         (258,688)
loss for the period

Stock issued                 --              800
duirng period
                      -----------    -----------

Balance at                (54,968)        63,985
December 31, 1999     -----------    -----------

Common stockholder           --         (246,396)
loss for the period

Stock issued in lieu
of services                  --              106
during period         -----------    -----------

Balance at                (54,968)      (182,305)
March 31, 2000        -----------    -----------

Common stockholder           --          (29,405)
loss for the period

Stock issued                 --            2,808
during period         -----------    -----------


Balance at            $   (54,968)   $  (208,902)
 June 30, 2000        ===========    ===========



                       See notes to financial statements



                                       2A
<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                             STATEMENT OF OPERATIONS

                                 FOR THE PERIODS


<TABLE>
<CAPTION>

                                                  THREE MONTHS ENDED           NINE MONTHS ENDED       October 1, 1995
                                                       JUNE 30,                      JUNE 30,                 to
                                                 2000           1999           2000           1999       June 30, 2000
                                             -----------    -----------    -----------    -----------    -----------
<S>                                          <C>            <C>            <C>            <C>            <C>
SALES                                        $      --      $      --      $      --      $      --      $      --
                                             -----------    -----------    -----------    -----------    -----------
EXPENSES
     Consulting                                     --           47,455        117,589        105,787      1,175,126
     Depreciation                                  8,694          8,694         26,082         26,082         79,315
     Legal and professional                         --           90,527         64,294        274,720        824,744
     Liability insurance                            --              933           --              933         14,434
     Miscellaneous                                  --          (13,135)           115             45         52,390
     Office supplies and expenses                  3,728         11,596          8,788         77,924        140,088
     Other expenses                                 --           16,263         26,038         26,173        118,435
     Rent                                          9,080          9,010         27,260         28,961        175,784
     Repairs and maintenance                          95            320            574          2,231          7,805
     Research and development                       --           33,209        176,044        241,356        986,224
     Salaries and payroll taxes                   23,998         98,498        112,546        248,301        788,461
     Telephone and utilities                       3,078          5,127         11,248         14,313         46,641
     Travel                                         --           15,082         21,448         89,067        356,822
     Writedown of mining rights                     --             --             --             --           35,000
                                             -----------    -----------    -----------    -----------    -----------
               Total expenses                     48,673        323,579        592,026      1,135,893      4,801,269
                                             -----------    -----------    -----------    -----------    -----------

LOSS FROM OPERATIONS                             (48,673)      (323,579)      (592,026)    (1,135,893)    (4,801,269)

OTHER INCOME (EXPENSE)
     Interest income                              19,268         18,960         57,537         63,349        198,538
     Interest expense                               --             --             --             --          (23,313)
     Loss on sale of marketable securities          --         (178,066)          --         (206,924)       (28,858)
                                             -----------    -----------    -----------    -----------    -----------
  Total other income (expenses)                   19,268       (159,106)        57,537       (143,575)       146,367

LOSS BEFORE EXTRAORDINARY ITEM                   (29,405)      (482,685)      (534,489)    (1,279,468)    (4,654,902)

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

NET LOSS                                         (29,405)      (482,685)      (534,489)    (1,279,468)    (4,590,694)

PREFERRED STOCK DIVIDEND                            --             --             --             --       (3,295,610)
                                             -----------    -----------    -----------    -----------    -----------
NET LOSS ATTRIBUTABLE TO
     COMMON SHAREHOLDERS                     $   (29,405)   $  (482,685)   $  (534,489)   $(1,279,468)   $(7,886,304)
                                             ===========    ===========    ===========    ===========    ===========
NET LOSS PER COMMON SHARE                    $     (0.00)   $     (0.06)   $     (0.06)   $     (0.15)   $     (1.04)
                                             ===========    ===========    ===========    ===========    ===========
</TABLE>

                       See notes to financial statements



                                       3
<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                        STATEMENTS OF COMPREHENSIVE LOSS

                                 FOR THE PERIODS
<TABLE>
<CAPTION>


                                       THREE MONTHS ENDED          NINE MONTHS ENDED      October 1, 1995
                                          JUNE 30,                      JUNE 30,                to
                                     2000          1999           2000           1999     June 30, 2000
                                -----------    -----------    -----------    -----------    -----------
<S>                             <C>            <C>            <C>            <C>            <C>
Net loss                        $   (29,405)   $  (482,685)   $  (534,489)   $(1,279,468)   $(7,886,304)

Other comprehensive loss:
       Unrealized holding
       gains/(losses) arising       (49,535)      (161,297)       (49,535)        12,705        (22,960)
       during the period

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

Net unrealized loss                 (49,535)      (161,297)       (49,535)        41,563          5,898
                                -----------    -----------    -----------    -----------    -----------

Comprehensive loss              $   (78,940)   $  (643,982)   $  (584,024)   $(1,237,905)   $(7,880,406)
                                ===========    ===========    ===========    ===========    ===========
</TABLE>

                       See notes to financial statements



                                       4
<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS

                                 FOR THE PERIODS
<TABLE>
<CAPTION>


                                                THREE MONTHS ENDED            NINE MONTHS ENDED       October 1, 1995
                                                     JUNE 30,                      JUNE 30,                 to
                                               2000            1999          2000           1999       June 30, 2000
                                            -----------    -----------    -----------    -----------    -----------
<S>                                         <C>            <C>            <C>            <C>            <C>
CASH FLOWS FROM
OPERATING ACTIVITIES

Net loss                                    $   (29,405)   $  (482,685)   $  (534,489)   $(1,279,468)   $(4,590,694)
                                            -----------    -----------    -----------    -----------    -----------
Adjustments to reconcile net loss
to net cash used in operating activities:
       Depreciation and amortization              8,694          8,694         26,082         26,082         79,315
       Loss on sale of marketable
        securities                                 --          178,066           --          206,924        200,961
       Loss on abandoned equipment                 --             --             --             --            1,093
       Write down of mining rights                 --             --             --             --           35,000
       Write down of notes receivable              --             --             --             --          200,000
       Write-down of notes receivable
        related party                              --             --             --             --          289,753
       Writedown of investment                     --             --             --             --           58,887
       Gain on extinguishment of debt              --             --             --             --          (64,208)
       Noncash research & development              --             --             --             --          131,250
       Noncash consulting fees                     --             --             --             --          536,306
       Noncash executive compensation              --             --           23,460
        (Increase) decrease in operating
             assets:
            Prepaid expenses                       --          (40,035)          --          (40,035)       (40,035)
            Interest receivable                  (8,257)       (15,366)       (46,526)       (47,658)      (108,139)
            Deposits                               --             --             --           10,000         (3,220)
            Other                                  --           (1,421)          --           (9,821)        (8,400)
       Increase (decrease) in operating
             liabilities:
            Accounts payable                     (6,846)          --          380,269        (11,450)       253,287
            Accrued salaries                     24,000         24,000         72,000         72,000        279,888
            Accrued interest                       --             --             --             --            7,320
            Settlement payable                     --             --             --             --           10,000
                                            -----------    -----------    -----------    -----------    -----------
                Total adjustments                17,591        153,938        431,825        206,042      1,882,518

NET CASH USED IN
OPERATING ACTIVITIES                            (11,814)      (328,747)      (102,664)    (1,073,426)    (2,708,176)
                                            -----------    -----------    -----------    -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES
       Loans to related parties                    --             --             --         (485,900)      (554,631)
       Loans to unrelated parties                  --             --             --          (23,982)      (216,800)
       Investment in related party              (16,077)
       Purchase of equipment                       --             --             --          (25,049)       (98,116)
       Purchase of mining rights                   --             --             --             --          (40,000)
       Purchase of marketable securities           --             --             --         (204,785)      (604,785)
       Proceeds from loans                         --             --             --             --              996
       Proceeds from sale of marketable
            securities                             --           55,791           --          260,576        279,514

NET CASH USED IN
INVESTING ACTIVITIES                               --           55,791           --         (479,140)    (1,249,899)
                                            -----------    -----------    -----------    -----------    -----------
</TABLE>


                       See notes to financial statements



                                       5
<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS
                                  (CONTINUED)
                                 FOR THE PERIODS
<TABLE>
<CAPTION>


                                                THREE MONTHS ENDED            NINE MONTHS ENDED       October 1, 1995
                                                     JUNE 30,                      JUNE 30,                 to
                                               2000            1999          2000           1999       June 30, 2000
                                           -----------    -----------   -----------    -----------    -----------
<S>                                        <C>            <C>           <C>            <C>            <C>
CASH FLOWS FROM FINANCING ACTIVITIES
       Sale of common stock                      2,808        494,434         3,714        494,434        822,908
       Sale of preferred stock                    --             --            --             --        3,000,000
       Proceeds from execise of warrants       532,812
       Costs to raise capital                     --           60,000          --           60,000       (357,023)
       Loan payments                              --             --            --             --          (22,000)
       Common stock redeemed                      --             --            --             --           (5,700)

NET CASH PROVIDED BY FINANCING
       ACTIVITIES                                2,808        554,434         3,714        554,434      3,970,997
                                           -----------    -----------   -----------    -----------    -----------

NET INCREASE/(DECREASE) IN CASH                 (9,006)       281,478       (98,950)      (998,132)         3,916

CASH, BEGINNING                                 15,114        167,834       105,058      1,447,444          2,192
                                           -----------    -----------   -----------    -----------    -----------

CASH, ENDING                               $     6,108    $   449,312   $     6,108    $   449,312    $     6,108
                                           ===========    ===========   ===========    ===========    ===========
</TABLE>



                                       6
<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                    THREE AND NINE MONTHS ENDED JUNE 30, 2000
                                   (Unaudited)

1.       Summary of significant accounting policies

Financial statements

The  balance  sheet  as  of  June  30,  2000,  and  the  related  statements  of
stockholders'  equity,  operations and cash flows for the nine months ended June
30, 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. 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, 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, 2000.  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, 1999.

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. See Note 4
for further discussion.


                                       7
<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                    THREE AND NINE MONTHS ENDED JUNE 30, 2000
                                   (Unaudited)


Loss per share

The  computations  of loss per share of common  stock are based on the  weighted
average number of shares  outstanding of 9,186,437 (2000),  8,567,148 (1999) and
7,699,484 (cumulative period).

1.       Summary of significant accounting policies (continued)

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.

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 March 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.


                                       8
<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                    THREE AND NINE MONTHS ENDED JUNE 30, 2000
                                   (Unaudited)


2.       Stock options and warrants outstanding
<TABLE>
<CAPTION>


                                    Options         Exercise
                                    Warrants         Price              Exercise date
                              ---------------      ---------      ------------------------
<S>                                  <C>             <C>          <C>
Options granted                      330,000         0.1875       Up to September 30, 2006
Warrants issued                      300,000         2.0000         Up to January 21, 2001
Warrants issued                       25,000         3.8750               Up to April 2003
                              ---------------

Options/warrants
Outstanding/
Exercisable at
 June 30, 2000                       655,000
                              ===============
</TABLE>


                                       9
<PAGE>


Item 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS


         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,  except that the Company has assembled a
prototype  Closed- Loop Waste  Management  System or  demonstration  purpose and
three prototype systems for operation by various universities.

         The Company has projected expense of $ 250,000 through June 2000. As of
September  30,1999,  the  Company had  approximately  $ 105,000 of cash and cash
equivalents.  The  Company is in the process of raising  additional  funds which
will allow the  Company  to operate  even if the  Company  generates  no revenue
during this period.

         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.  The portable units will be employed for
continued demonstrations and sales activity. The goal of such tests is to refine
the process from a batch load to a continuous feed system.  At the same time the
development  of an input/ feed  conveyor  system and a variable  discharge  rate
screw  mechanism to load the bioreactor  needs to be completed.  In addition,  a
solid waste process will also need to be developed.


                                       10
<PAGE>

RESULTS OF OPERATION

COMPARISON OF THREE AND NINE MONTHS ENDED JUNE 30, 2000, AND 1999.

         The Company  generated  no revenue for the three and nine months  ended
June 30, 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 three months ended June 30, 2000,
decreased to nothing from  $33,209.  This  decrease in research and  development
expenses  reflects the  suspension  in further  testing and  development  of the
Company's Closed -Loop Waste Management  System.  For the nine months ended June
30, 2000,  research and development  expenses decreased by $65,312, or 27%, from
$241,356 to $176,044.

         General and  administrative  expenses  for three  months ended June 30,
2000, decreased by $ 241,697, or approximately 83% to $48,673, from $290,370 for
the  three  months  ended  June  30,   2000.   This   decrease  in  general  and
administrative  expenses was  primarily  the result of the decrease in salaries,
travel,  legal and  professional  expenses.  For the nine months  ended June 30,
2000,  general and administrative  expenses decreased by $478,555,  or 53%, from
$894,537 to $415,982.

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
March1996,  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


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<PAGE>


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 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.  Private  Placement  Warrants 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  anticipates levels of revenues and cash
flow are  subject to any  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


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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
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.

YEAR 2000 COMPLIANCE

         We have  completed a  comprehensive  review of our computer  systems to
identify all software  applications  that could be affected by the  inability of
many existing computer systems to process  time-sensitive data accurately beyond
the year 1999 (referred to as the "Year 2000" issue).  We are also continuing to



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monitor our computer systems and we are monitoring the adequacy of the processes
and progress of third-party  vendors of systems that may be affected by the Year
2000 issue.  We are  dependent on  third-party  computer  systems  applications,
particularly  with respect to such  critical  tasks as  accounting,  billing and
buying. We also rely on our own computer  systems.  EPTC expects to its complete
its Year 2000  compliance  program by mid-1999  and  anticipates  that its total
expenditures  on  such  programs  will  not  exceed  $20,000.  However,  we  may
experience  cost overturns or delays,  in the future,  which could have material
adverse effect on our business,  results of operations and financial  condition.
While we believe our procedures  are designed to be  successful,  because of the
complexity of the Year 2000 issue and the interdependence of organizations using
computer systems,  our efforts, or those of third-parties with whom we interact,
may  not  be  satisfactorily  completed  in a  timely  fashion.  If we  fail  to
satisfactorily  address  the Year 2000  issue,  then our  business,  results  of
operations and financial condition could be materially adversely affected.


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                                    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 10, 2000                   By: /s/ Marvin Mears
                                                    --------------------
                                                    Marvin Mears
                                                    Chief Executive Officer



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