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

(Mark One)

      XX    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
      --    OF THE SECURITIES AND EXCHANGE ACT OF 1934
            For the quarterly period ended March 31, 2001
                                       OR
      --    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
            OF THE SECURITIES AND EXCHANGE ACT OF 1934

                         Commission File Number 0-22291


                     COMMODORE SEPARATION TECHNOLOGIES, INC.
                     ---------------------------------------
             (Exact name of Registrant as specified in its charter)


        DELAWARE                                         11-3299195
        --------                                         ----------
(State or other jurisdiction of               (I.R.S. Employer Identification
 incorporation or organization)                           Number)


   150 East 58th Street, Suite 3238                             10155
         New York, New York                                     -----
   ----------------------------                               (Zip Code)
(Address of Principal Executive Offices)


        Registrant's telephone number, including area code (212) 308-5800
                                                           --------------



         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 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
                                                  ----------      ---------


         Number of shares of common stock outstanding at April 30, 2001 (latest
practicable date):

                       Issued and Outstanding: 11,596,908
                                               ----------


<PAGE>



                      COMMODORE SEPARATION TECHNOLOGIES,INC

                                    FORM 10-Q


                                      INDEX


                                                                        PAGE
                                                                        ----



PART I.    FINANCIAL INFORMATION
-------    ---------------------


Item 1.    Financial Statements (Unaudited)


               Condensed Balance Sheets -
               March 31, 2001 and December 31, 2000..................     4

               Condensed Statement of Operations -
               Three months ended March 31, 2001 and 2000............     5

               Condensed Statement of Cash Flows -
               Three months ended March 31, 2001 and
               March 31, 2000........................................     6


               Notes to Condensed Financial Statements...............     7


Item 2.    Management's Discussion and Analysis of Financial
           Condition and Results of Operations.......................     8


PART II.   OTHER INFORMATION ........................................    11
--------   -----------------


SIGNATURES ..........................................................    12
----------










                                       2

<PAGE>



                         PART I - FINANCIAL INFORMATION


ITEM 1:  Financial Statements
         --------------------

                     COMMODORE SEPARATION TECHNOLOGIES, INC.

                            CONDENSED BALANCE SHEETS

                  (Dollars in Thousands, Except Per Share Data)


                                                     March 31,      December 31,
                                                       2001             2000
                                                     ---------      ------------
                                                    (unaudited)

ASSETS

Cash and cash equivalents                           $     1         $       1
Restricted cash                                         235               233
                                                    -------         ---------

         TOTAL CURRENT ASSETS                           236               234

Property and equipment, net                               -                 -
Intangible assets, net                                    -                 -
                                                    -------         ---------

         TOTAL ASSETS                               $   236         $     234
                                                    =======         =========



                                       3

<PAGE>



                     COMMODORE SEPARATION TECHNOLOGIES INC.

                            CONDENSED BALANCE SHEETS

                  (Dollars in Thousands, Except Per Share Data)





                                                     March 31,      December 31,
                                                       2001             2000
                                                     ---------      ------------
                                                    (unaudited)


LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Accounts payable                                  $   259         $     269
  Accrued expenses                                      134               134
  Deposits                                              263               263
  Due to related parties                              1,179             1,164
  Accrued dividends                                   1,662             1,515
                                                    -------         ---------

         TOTAL CURRENT LIABILITIES                    3,497             3,345

Commitments and contingencies                             -                 -

Stockholders' Equity:
  Preferred stock, Series A, $.001 par
    value, authorized 750,000, issued and
    outstanding 569,500 and 569,500                       1                 1
  Preferred stock, Series B, $.001 par
    value, authorized 4,000, issued and
    outstanding 3,570                                     -                 -
  Common stock, par value $.01 per share
    authorized 50,000,000 and shares
    issued and outstanding 11,596,908 and
    11,596,908                                           11                11
  Additional paid in capital                         10,058            10,205
  (Deficit)                                         (13,331)          (13,328)
                                                    -------         ---------

         TOTAL STOCKHOLDERS' EQUITY                  (3,261)           (3,111)
                                                    -------         ---------

         TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $   236         $     234
                                                    =======         =========



                  See notes to condensed financial statements.

                                        4

<PAGE>



                     COMMODORE SEPARATION TECHNOLOGIES, INC.

                       CONDENSED STATEMENTS OF OPERATIONS

                  (Dollars in Thousands, Except Per Share Data)

                                                         Three months ended
                                                              March 31,
                                                         ------------------
                                                         2001          2000
                                                         ----          ----
                                                            (unaudited)

REVENUES

  Contract revenues                                    $       -   $       8

COSTS AND EXPENSES
  Cost of sales                                                -          40
  Research and development                                     -          65
  General and administrative                                   5         146
  Depreciation and amortization                                -         114
  Sales and marketing expense                                  -           5
                                                       ---------   ---------
                                                               5         370
                                                       ---------   ---------
                                                              (5)       (362)

Interest income                                                2           -
                                                       ---------   ---------

NET LOSS                                               $     (3)   $    (362)
                                                       =========   =========


NET LOSS PER SHARE  (Based on
  weighted average shares of
  11,597,000 and 11,516,000)*                          $       -   $    (.03)



* Common stock equivalents are not included in the net loss per
share calculation since they are antidilutive.




                  See notes to condensed financial statements.

                                        5

<PAGE>




                     COMMODORE SEPARATION TECHNOLOGIES, INC.

                       CONDENSED STATEMENTS OF CASH FLOWS

                  (Dollars in Thousands, Except Per Share Data)



                                                         Three months ended
                                                              March 31,
                                                         ------------------
                                                         2001          2000
                                                         ----          ----
                                                             (unaudited)



OPERATING ACTIVITIES
   Net (loss)                                          $      (3)  $    (362)
   Adjustments to reconcile net (loss) to net
    cash provided by operating activities:
      Depreciation and amortization                            -         114
   Changes in assets and liabilities:
      Accounts payable                                       (10)        (45)
      Accrued liabilities                                      -          30
                                                       ---------   ---------
             NET CASH USED IN OPERATING ACTIVITIES           (13)       (263)
                                                       ---------   ---------

INVESTING ACTIVITIES
  Increase in restricted cash                                 (2)          -
  Acquisition of intangible assets                             -          (7)
                                                       ---------   ---------

            NET CASH USED IN INVESTING ACTIVITIES             (2)         (7)
                                                       ---------   ---------

FINANCING ACTIVITIES
  Borrowings from stockholder                                 15         257
                                                       ---------   ---------

            NET CASH USED IN FINANCING ACTIVITIES             15         257
                                                       ---------   ---------

INCREASE (DECREASE) IN CASH                                    -         (13)

  Cash at beginning of period                                  1          16
                                                       ---------   ---------

CASH AT END OF PERIOD                                  $       1   $       3
                                                       =========   =========

                  See notes to condensed financial statements.

                                        6

<PAGE>



                     COMMODORE SEPARATION TECHNOLOGIES, INC.

               NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

                                 March 31, 2001


Note A - Basis of Presentation

         The accompanying unaudited condensed financial statements for Commodore
Separation Technologies, Inc. (the "Company") have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The
financial statement information was derived from unaudited financial statements
unless indicated otherwise. Accordingly, they do not include all of the
information and footnotes 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. Operating results for the three month period ended March 31, 2001 are
not necessarily indicative of the results that may be expected for the year
ended December 31, 2001.

         The accompanying unaudited condensed consolidated financial statements
should be read in conjunction with the Company's audited financial statements
included in the Company's 10-K annual report dated December 31, 2000.

B - Contingencies

         The Company is currently in negotiation with the bonding company which
issued a performance bond for the Port of Baltimore project. The outcome of this
negotiation cannot be determined at this time.


                                        7

<PAGE>



ITEM 2. Management's Discussion and Analysis of Financial
        -------------------------------------------------
        Condition and Results of Operation
        ----------------------------------

General
-------

         The Company, organized in November 1995, has since its inception
developed a strategic operating plan, hired personnel to implement its operating
plan, engineered and built commercial scale supported liquid membrane processing
units, conducted on-site demonstrations for potential customers and commenced
operations at its first installations.

         During the period from November 15, 1995 (date of inception) to March
31, 2001, the Company has incurred a net loss of $13,331,000 and anticipates
that it may continue to incur losses for the foreseeable future. The Company
currently has no ongoing operations as of December 31, 2000.

         The Company had developed a limited operating history with the
commencement of its first commercial contracts. In April 2000, the Company was
notified by Maryland Environmental Services ("MES") requesting the removal of
the SLiM equipment from the Port of Baltimore Dundalk Marine Terminal and
Hawkins Point facilities. MES cited the fact that the Company had removed
Chromium VI as per the requirements in the contract, however there remained
trace amounts of Chromium III in the leachate which resulted in the total
chromium consentrations to exceed contract specified amounts. The Company had
made several attempts to remove the trace amounts of Chromium III, including the
use of alternate technologies, however was unable to satisfy MES requirements.
It should be noted that the original samples tested from the leachate solution
did not have Chromium III present and therefore this problem was not foreseen.
As a result, the Company has withdrawn its equipment from the Port of Baltimore
and transferred it, along with its inventory, to a storage facility in
Albuquerque, New Mexico.

         In June 2000, the Company closed its Kennesaw, Georgia facility. As a
result, the Company transferred approximately $228,000 of lab equipment and
furniture and fixtures to Commodore Environmental Services, Inc.
"Environmental", the owner of 87% of the issued and oustanding common stock of
the Company, in exchange for $228,000 of intercompany indebtedness. The
remainder of equipment and inventory was transferred to a storage facility in
Albuquerque, New Mexico. As a result of the closure, all of the employees in the
Georgia facility have found other employment or have been released. The Company
plans to continue to search for applications for its technology.

         As a result of the closure, the Company has recorded a reserve for
inventory obsolesence of $519,000, an impairment reserve on long lived assets of
$428,000 and a write off of leasehold improvements of $85,000 in 2000. The
write-offs include patents and completed technologies.

                                        8

<PAGE>




Results from Operations
-----------------------

         There were no revenues for the quarter ended March 31, 2001, as the
equipment is in storage. Revenues were $8,000 for the three months ended March
31, 2000. For the three months ended March 31, 2000, the Company had incurred
$38,000 in cost of sales relating to the Port of Baltimore Contracts. These
costs include labor, fringes, subcontractor costs, travel costs, material
purchases and cost of equipment sold to the customer.

         For the three months ended March 31, 2000, the Company incurred
research and development costs of $65,000. Research and development costs
included salaries, wages, and other related costs of personnel engaged in
research and development activities, contract services and materials, test
equipment and rent for facilities involved in research and development
activities. Research and development costs are expensed when incurred, except
those costs related to the design or construction of an asset having an economic
useful life, which are capitalized, and then depreciated over the estimated
useful life of the asset.

         For the three months ended March 31, 2001, the Company had
miscellaneous general and administrative expenses of $5,000. There were no other
expenses incurred by the Company. Genreal and admonstrative expenses were
$146,000 for the three months ended March 31, 2000.

         Depreciation and amortization was $114,000 for the three months ended
March 31, 2000. In June of 2000, the Company fully reserved for all of its fixed
assets.

         The Company had a net loss of $3,000 for the three-month period ended
March 31, 2001 as compared to a net loss of $362,000 for the three-month period
ended March 31, 2000. The decreased net loss is attributable to the various
revenue and expense items in the individual paragraphs above.

Liquidity and Capital Resources
-------------------------------

         The Company has a working capital deficit of $3,261,000 on March 31,
2001 as compared to a working capital deficit of $3,111,000 at the beginning of
the year. The decrease in working capital is primarily attributable to the net
loss incurred during the first quarter of 2001 and accrued dividends.

         The Company continues to be dependent upon financing through outside
sources. There can be no assurance that such financing will be available or, if
available, that it will be on terms satisfactory to the Company. In the event
such external financing is not available on terms acceptable to the Company, the
Company may be able to obtain interim financing from Environmental. There can be
no assurances, however, that the Company will be able to obtain any financing
from Environmental.

                                        9

<PAGE>


Net Operating Losses
--------------------

         At March 31, 2001, the Company had tax loss carryforwards of
approximately $13,300,000. The amount of and ultimate realization of benefit
from the net operating loss for income tax purposes is dependant, in part, upon
the tax laws in effect, future earnings of the Company, and other future events,
the effects of which cannot be determined. A change in ownership of the Company
may reduce the amount of loss allowable. These net operating carryforwards begin
to expire in 2011. A full valuation allowance has been established because of
the uncertainty about whether the Company will realize the benefit of net
operating losses.


Forward-Looking Statements
--------------------------

         Certain matters discussed in this Annual Report are "forward- looking
statements" intended to qualify for the safe harbors from liability established
by Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"). These forward-looking statements
can generally be identified as such because the context of the statement will
include words such as the Company "believes," "anticipates," "expects" or words
of similar import. Similarly, statements that describe the Company's future
plans, objectives or goals are also forward-looking statements. Such statements
may address future events and conditions concerning, among other things the
Company's results of operations and financial condition; the consummation of
acquisition and financing transactions and the effect thereof on the Company's
business; capital expenditures; litigation; regulatory matters; and the
Company's plans and objective for future operations and expansion. Any such
forward- looking statements would be subject to the risks and uncertainties that
could cause actual results of operations, financial condition, acquisitions,
financing transactions, operations, expenditures, expansion and other events to
differ materially from those expressed or implied in such forward-looking
statements. Any such forward- looking statements would be subject to a number of
assumptions regarding, among other things, future economic, competitive and
market conditions generally. Such assumptions would be based on facts and
conditions as they exist at the time such statements are made as well as
predictions as to future facts and conditions, the accurate prediction of which
may be difficult and involve the assessment of events beyond the Company's
control. Furthermore, the Company's business is subject to a number of risks
that would affect any such forward-looking statements. These risks and
uncertainties include, but are not limited to, the ability of the Company to
commercialize its technology; product demand and industry pricing; the ability
of the Company to commercialize its technology; product demand and industry

                                       10

<PAGE>

pricing; the ability of the Company to obtain patent protectionfor its
technology; developments in environmental legislation and regulation; the
ability of the Company to obtain future financing on favorable terms; and other
circumstances affecting anticipated revenue and costs. These risks and
uncertainties could cause actual results of the Company to differ materially
from those projected or implied by such forward-looking statements.


                           PART II - OTHER INFORMATION

ITEM 1.  Legal Proceedings

         There have been no material legal proceedings to which the Company is a
party which have not been disclosed in previous filings with the Securities and
Exchange Commission. There are no material developments to be reported in any
previously reported legal proceeding.

ITEM 6.  Exhibits and Reports on From 8-K

         Exhibits - None

         Reports on Form 8-K - None



                                       11

<PAGE>





                                   SIGNATURES


         Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.




                                  COMMODORE SEPARATION TECHNOLOGIES, INC.
                                  (Registrant)



                                  By /s/ Andrew P. Oddi
                                  ------------------------------------
                                  Andrew P. Oddi - Vice President

                                  (As both a duly authorized
                                  Officer of the Registrant
                                  and the Chief Accounting
                                  Officer of the Registrant)




Date:   May 14, 2001



                                       12

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