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 September 30, 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 October 31, 2001
(latest practicable date):

         Issued and Outstanding: 11,732,640
                                 ----------
<PAGE>

                      COMMODORE SEPARATION TECHNOLOGIES,INC

                                    FORM 10-Q


                                      INDEX


                                                                          PAGE
                                                                          ----


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


Item 1. Financial Statements (Unaudited)


        Condensed Balance Sheets -
               September 30, 2001 and December 31, 2000...............       4


        Condensed Statement of Operations -
               Three and nine months ended September 30, 2001
               and 2000...............................................       5

        Condensed Statement of Cash Flows -
        Nine months ended September 30, 2001 and
               September 30, 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 ...........................................      12
-------- -----------------

SIGNATURES ...........................................................      13
----------


<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1:  Financial Statements


                     COMMODORE SEPARATION TECHNOLOGIES, INC.

                            CONDENSED BALANCE SHEETS

                  (Dollars in Thousands, Except Per Share Data)


                                                September 30,      December 31,
                                                    2001               2000
                                                -------------      ------------
                                                 (unaudited)

ASSETS

Cash and cash equivalents                        $        11       $          1
Restricted cash                                            -                233
                                                 -----------       -------------

           TOTAL CURRENT ASSETS                           11                234

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

           TOTAL ASSETS                          $        11       $        234
                                                 ===========       =============

<PAGE>

                                        3
<PAGE>

                     COMMODORE SEPARATION TECHNOLOGIES INC.

                            CONDENSED BALANCE SHEETS

                  (Dollars in Thousands, Except Per Share Data)



                                                September 30,      December 31,
                                                    2001               2000
                                                -------------      ------------
                                                 (unaudited)

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Accounts payable                               $       325       $        269
  Accrued expenses                                       134                134
  Deposits                                                53                263
  Due to related parties                               1,179              1,164
  Accrued dividends                                    1,943              1,515
                                                 -----------       -------------

           TOTAL CURRENT LIABILITIES                   3,634              3,345

Commitments and contingencies                              -                  -

Stockholders' Deficit:
  Preferred stock, Series A, $.001 par
    value, authorized 750,000, issued and
    outstanding 518,600 and 569,500, respectively          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 of 11,732,640 and
    11,596,908, respectively                              12                 12
  Additional paid in capital                           9,776             10,204
  Accumulated (Deficit)                              (13,412)           (13,328)
                                                 -----------       -------------

           TOTAL STOCKHOLDERS' DEFICIT                (3,623)            (3,111)
                                                 -----------       -------------

           TOTAL LIABILITIES AND STOCKHOLDERS'
           DEFICIT                               $        11       $        234
                                                 ===========       =============


                  See notes to condensed financial statements.

                                        4
<PAGE>

                     COMMODORE SEPARATION TECHNOLOGIES, INC.

                       CONDENSED STATEMENTS OF OPERATIONS

                  (Dollars in Thousands, Except Per Share Data)

<TABLE>
<CAPTION>

                                           Three months ended        Nine months ended
                                              September 30,             September 30,
                                           ------------------        ------------------
                                            2001         2000        2001          2000
                                            ----         ----        ----          ----
                                               (unaudited)              (unaudited)
<S>                                        <C>         <C>         <C>          <C>
REVENUES

  Contract revenues                        $      -    $       -   $        -   $      67

COSTS AND EXPENSES

  Cost of sales                                   -           13            -         107
  Research and development                        -            4            -         115
  General and administrative                     62           11           88         287
  Reserve for inventory obsolesence               -            -            -         519
  Impairment of long lived assets                 -            -            -         428
  Write off of leasehold improvements             -            -            -          85
  Depreciation and amortization                   -            3            -         232
  Sales and marketing expense                     -            4            -          18
                                           --------    ---------   ----------   ---------
                                                 62           35           88       1,791
                                           --------    ---------   ----------   ---------
                                                (62)         (35)         (88)     (1,724)

Interest income                                   -            -            4           -
                                           --------    ---------   ----------   ---------

NET LOSS                                   $    (62)   $     (35)  $      (84)  $  (1,724)
                                           ========    =========   ==========   =========


NET LOSS PER SHARE  (Based on
 weighted average shares of
 11,729,000 and 11,641,000 in
 2001 and 11,597,000 and
 11,563,000 in 2000) *                     $      -    $       -   $        -   $    (.15)

</TABLE>



 * 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)


                                                       Nine months ended
                                                         September 30,
                                                     ---------------------
                                                      2001             2000
                                                      ----             ----
                                                         (unaudited)

OPERATING ACTIVITIES
  Net loss                                         $       (84)  $     (1,724)
   Adjustments to reconcile net loss to net
    cash used in operating activities:
      Depreciation and amortization                          -            232
      Write off of leasehold improvements                    -             85
      Reserve for inventory obsolesence                      -            519
      Impairment of long lived assets                        -            428
   Changes in assets and liabilities:
      Accounts payable                                      56            (93)
      Accrued liabilities                                    -             62
      Deposits                                            (210)             -
      Accounts receivable                                    -             (6)
                                                   -----------   ------------

        NET CASH USED IN OPERATING ACTIVITIES             (238)          (497)

INVESTING ACTIVITIES
  Liquidation of certificates of deposit                   233              -
  Acquisition of intangible assets                           -             (8)
                                                   -----------   ------------

        NET CASH PROVIDED BY (USED IN)
       INVESTING ACTIVITIES                                233             (8)
                                                   -----------   ------------

FINANCING ACTIVITIES
  Borrowings from stockholder                               15            495
                                                   -----------   ------------
        NET CASH PROVIDED BY
        FINANCING ACTIVITIES                                15            495
                                                   -----------   ------------

INCREASE (DECREASE) IN CASH                                 10            (10)

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

CASH AT END OF PERIOD                              $        11   $          6
                                                   ===========   ============



                  See notes to condensed financial statements.

                                        6
<PAGE>

                     COMMODORE SEPARATION TECHNOLOGIES, INC.

               NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

                               September 30, 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 accounting principles generally accepted in the United States of America
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 accounting
principles generally accepted in the United States of America 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 and nine month periods ended
September 30, 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  regarding  the
asserted  claim  on  the  port  of  Baltimore  contract.  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
September 30, 2001, the Company has incurred a net loss of $13,412,000 and
anticipates that it may continue to incur losses for the foreseeable future. The
Company currently has no ongoing operations.

         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 concentrations 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.


                                       8
<PAGE>

         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 85% 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 in 2000, the Company 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. The write-offs
include patents and completed technologies.

         In the second quarter of 2001, the Port of Baltimore called the letters
of credit for $210,000. In order to satisfy the obligation, the Company
liquidated the certificates of deposit which collateralized the letters of
credit.

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

         Revenues were $0 for the three months ended September 30, 2001 and $0
for the three months ended September 30, 2000. Revenues for the nine months
ended September 30, 2001 were $0 as compared to $67,000 for the nine months
ended September 30, 2000. Such revenues for 2000 were primarily due to the
Company's commencement of operations at the Port of Baltimore Hawkins Point
project. Revenue under such contract was recorded as the contract has commenced
operations. At the request of the customer, in May 2000, the Company had
withdrawn its equipment from the Port of Baltimore. The Company currently has no
ongoing operations.

         For the three months ended September 30, 2001, the Company had incurred
no cost of sales as compared to $13,000 for the three months ended September 30,
2000. The $13,000 was a write down of inventory supplies. For the nine month
period ended September 30, 2001, cost of sales were $0 as compared to $107,000
for the nine month period ended September 30, 2000. 2000 cost of sales relate
primarily 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 September 30, 2001, the Company incurred no
research and development costs, as compared to $4,000 for the three months ended
September 30, 2000. For the nine months ended September 30, 2001, the Company
incurred $0 as compared to $115,000 for the nine month period ended September
30, 2000. Research and development costs include salaries, wages, and other


                                       9
<PAGE>

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.

         General and administrative expenses for the three months ended
September 30, 2001 were $62,000 as compared to $11,000 for the three month
period ended September 30, 2000. General and administrative expenses for the
nine month period ended September 30, 2001 were $88,000 as compared to $287,000
for the nine months ended September 30, 2000. General and administrative
expenses decreased for the three month and nine month periods ended September
30, 2001 as compared to the three and nine month periods ended September 30,
2000 primarily due to the Company ceasing operations.

         Depreciation and amortization decreased from $232,000 for the nine
months ended September 30, 2000 to $0 for the nine months ended September 30,
2001. This is a direct result of the Company ceasing operations and disposing of
its equipment.

         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. "Commodore" 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 been released.

         As a result of the closure of the Kennesaw facility and the transfer of
equipment and inventory to a storage facility, the Company 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 the
period ended June 30, 2000.

         The Company had a net loss of $84,000 for the nine month period ended
September 30, 2001 as compared to a net loss of $1,724,000 for the nine month
period ended September 30, 2000. The decrease in 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 $3,623,000 on September
30, 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 nine months of 2001 and accrued dividends.


                                       10
<PAGE>

         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 Commodore. There can be no
assurances, however, that the Company will be able to obtain any financing from
Commodore.

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

         At September 30, 2001, the Company had tax loss carryforwards of
approximately $11,700,000. 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 Quarterly 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



                                       11
<PAGE>

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 pricing; the ability of the Company
to obtain patent protection for 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


                                       12
<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:   November 14, 2001



                                       13
<PAGE>