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

(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 June 30, 2004
                                       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 August 13, 2004 (latest
practicable date):

                                 Issued and Outstanding: 11,732,640
                                                         ----------

<PAGE>
                       PART I - FINANCIAL INFORMATION

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


                     COMMODORE SEPARATION TECHNOLOGIES, INC.
                        UNAUDITED CONDENSED BALANCE SHEET
                  (Dollars in Thousands, Except Per Share Data)

                                                                      June 30,
                                                                        2004
                                                                      --------

ASSETS
Cash and cash equivalents                                             $      1
                                                                      --------

          TOTAL ASSETS                                                $      1
                                                                      ========

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:
  Accounts payable                                                    $    283
  Accrued expenses                                                         134
  Deposits                                                                  53
  Due to related parties                                                 1,282
  Accrued dividends                                                      3,421
                                                                      --------

          TOTAL CURRENT LIABILITIES                                      5,173

Commitments and contingencies

Stockholders' Deficit:
  Preferred stock, Series A, $.001 par value,
  10% cumulative, 5,000,000 shares authorized,
  518,600 issued and outstanding                                             1
  Preferred stock, Series B, $.001 par value,
  6% cumulative, 4,000 shares authorized,
  3,570 issued and outstanding                                               -
  Common stock, par value $.001 per share,
  50,000,000 shares authorized, 11,732,640
  issued and outstanding                                                    12
Additional paid in capital                                               8,299
  Deficit accumulated during development
    stage                                                              (13,484)
                                                                      --------

          TOTAL STOCKHOLDERS' DEFICIT                                   (5,172)
                                                                      --------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                           $      1
                                                                      ========

                  See notes to condensed financial statements.


                                       2
<PAGE>


                     COMMODORE SEPARATION TECHNOLOGIES, INC.
                  UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
                  (Dollars in Thousands, Except Per Share Data)

<TABLE>
<CAPTION>

                                                                        Cumulative
                                                                       Amounts From
                                                                       Nov 15, 1995
                                       Three months       Six months     (Date of
                                          ended             ended       Inception)
                                         June 30,          June 30,     to June 30,
                                      2004     2003     2004     2003      2004
                                    -------  -------   ------  -------   ---------
                                                     (unaudited)
<S>                                 <C>      <C>       <C>     <C>       <C>
REVENUES

  Contract revenues                 $     -  $     -   $    -  $     -   $     403

COSTS AND EXPENSES

  Cost of sales                           -        -        -        -         648
  Research and development                -        -        -        -       3,603
  General and administrative              4       11        6       20       4,547
  Impairment of inventory                 -        -        -        -         519
  Impairment of property
   and equipment                          -        -        -        -         513
  Impairment of intangibles               -        -        -        -         175
  Depreciation and amortization           -        -        -        -       1,402
  Corporate overhead expenses             -        -        -        -       2,145
  Licensing fee                           -        -        -        -          50
  Sales and marketing expense             -        -        -        -         728
                                    -------  -------   ------  -------   ---------
                                          4       11        6       20      14,330
                                    -------  -------   ------  -------   ---------
                                         (4)     (11)      (6)     (20)    (13,927)
Other income                              -        -        -        -          27
Interest income                           -        -        -        -         430
Interest expense                          -        -        -        -         (14)
                                    -------  -------   ------  -------   ---------

NET LOSS                            $    (4) $   (11)  $   (6) $   (20)  $ (13,484)
                                    =======  =======   ======  =======   =========

Dividends on Series A and B
  Preferred Stock                      (135)    (135)    (270)    (270)
                                    -------  -------   ------  -------

Net loss applicable to common
  shareholders                         (139)    (146)    (276)    (290)
                                    -------  -------   ------  -------

NET LOSS PER SHARE  (Based on
 weighted average shares of
 11,733,000 *                       $  (.01) $  (.01)  $ (.02) $  (.02)

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

</TABLE>

                  See notes to condensed financial statements.


                                       3
<PAGE>

                     COMMODORE SEPARATION TECHNOLOGIES, INC.
                       CONDENSED STATEMENTS OF CASH FLOWS
                  (Dollars in Thousands, Except Per Share Data)


                                                                     Cumulative
                                                                    Amounts From
                                                                    Nov 15, 1995
                                                                      (Date of
                                                 Six months ended    Inception)
                                                      June 30,      to June 30,
                                                  2004     2003         2004
                                                --------  -------  ------------
                                                    (unaudited)
OPERATING ACTIVITIES
  Net loss                                      $     (6) $   (20)  $   (13,484)
  Adjustments to reconcile net loss to net
    cash used in operating activities:
      Impairment of inventory                          -        -           519
      Impairment of intangibles                        -        -           175
      Impairment of property and equipment             -        -           513
      Depreciation and amortization                    -        -         1,402
      Issuance of common stock for services            -        -            35
      Loss on troubled debt restructuring              -        -           214
   Changes in assets and liabilities:
      Inventory, net                                   -        -          (519)
      Accounts payable                                 4        -           284
      Accrued expenses                                 -        -           134
      Deposits                                         -        -            53
                                                --------  -------   -----------
          NET CASH USED IN OPERATING ACTIVITIES       (2)     (20)      (10,674)
                                                --------  -------   -----------

INVESTING ACTIVITIES
  Acquisition of intangible assets                     -        -          (213)
  Purchase of property and equipment                   -        -          (403)
  Acquisition of leasehold improvements                -        -          (210)
  Construction of technical equipment                  -        -        (1,491)
                                                --------  -------   -----------

          NET CASH USED IN INVESTING ACTIVITIES        -        -        (2,317)
                                                --------  -------   -----------

FINANCING ACTIVITIES
  Borrowings from stockholder                          2       20         2,628
  Proceeds from sale of common stock
    and warrants                                       -        -         6,109
  Proceeds from sale of preferred stock
    and warrants                                       -        -         4,978
  Preferred stock dividends                            -        -          (738)
  Collection of subscription receivable                -        -            15
                                                --------  -------   -----------
          NET CASH PROVIDED BY
          FINANCING ACTIVITIES                         2       20        12,992
                                                --------  -------   -----------
INCREASE (DECREASE) IN CASH                            -        -             1
Cash at beginning of period                            1        1             -
                                                --------  -------   -----------
CASH AT END OF PERIOD                           $      1  $     1   $         1
                                                ========  =======   ===========

                  See notes to condensed financial statements.



                                       4
<PAGE>


                     COMMODORE SEPARATION TECHNOLOGIES, INC.

               NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

                                  June 30, 2004

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 for interim
financial information and with the instructions to Form 10-QSB and Regulation
SB. 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 six month periods ended June
30, 2004 are not necessarily indicative of the results that may be expected for
the year ending December 31, 2004.

         The accompanying unaudited condensed financial statements should be
read in conjunction with the Company's audited financial statements included in
the Company's 10-KSB annual report dated December 31, 2003.

Note B - Stock-Based Compensation

         The Company accounts for stock-based compensation under the recognition
and measurement principles of APB Opinion No.25, Accounting for Stock Issued to
Employees, and Related Interpretations. No stock-based employee compensation
cost is reflected in the net income (loss), as all options vested had an
exercise price equal to or greater than the market value of the underlying
common stock on the date of grant. No options were issued or vested during the
quarters or six months ended June 30, 2004 or June 30, 2003, therefore, there
would be no effect on the net income and earnings per share if the Company had
applied the fair value recognition provisions of FASB Statement No. 123,
Accounting for Stock-Based Compensation, to stock- based employee compensation.

Note C - Contingencies

         The Company has a matter of possible litigation arising out of the Port
of Baltimore contract. It is not known what amount, if any, that the Company may

                                       5
<PAGE>

be required to pay. The financial statements reflect $53,000 as a liability
related to the contract. It is not known if any additional amounts will be
incurred.

Note D - Going Concern

         The accompanying financial statements have been prepared under the
assumption that the Company will continue as a going concern. Such assunption
contemplates the realization of assets and the satisfaction of liabilities in
the normal course of business. As shown in the financial statements, the Company
has a working capital deficit, a deficit in equity, has incurred substantial
losses from operations and has not generated cash from operating activities. The
Company has never had significant revenue from operations and has not had any
operating activities during the past two fiscal years. Presently, the Company
does not have sufficient cash resources to meet its requirements in 2004 or the
necessary working capital to develop profitable operations from using its
patented technology. The financial statements do not include any adjustments
that might be necessary should the Company be unable to continue as a going
concern.

         The Company's continuation as a going concern is dependent upon its
ability to obtain additional financing as may be required, and ultimately to
attain profitability. Potential sources of cash include new contracts, the
issuance of external debt, the sale of new shares of Company stock or
alternative methods such as mergers or sale transactions. No assurances can be
given, however, that the Company will be able to obtain any of these potential
sources of cash.

Note E - Net Loss Per Common Share

         Basic net loss per common share ("Basic EPS") excludes dilution and is
computed by dividing net loss available to common shareholders by the weighted
average number of common shares outstanding during the period. Diluted net loss
per common share ("Diluted EPS") reflects the potential dilution that could
occur if stock options or other contracts to issue common stock were exercised
or converted into common stock. The computation of Diluted EPS does not assume
exercise or conversion of securities that would have an anti-dilutive effect on
net loss per common share.

         Options and warrants to purchase 823,750 shares of common stock as of
June 30, 2004 and June 30, 2003 were not included in the computation of Diluted
EPS. The inclusion of the options would have been anti- dilutive, thereby
decreasing net loss per common share.

Note F - Supplemental Disclosure of Cash Flow Information

         During the six months ended June 30, 2004 and June 30, 2003, the
Company accrued $270,000 and $270,000 of preferred stock dividends, which
increased accrued dividends and decreased additional paid in capital.

                                       6
<PAGE>

ITEM 2. Management's Discussion and Analysis of Financial
        -------------------------------------------------
        Condition and Plan 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 performed
services at its first installations.

         During the period from November 15, 1995 (date of inception) to June
30, 2004, the Company has incurred a net loss of $13,484,000 and anticipates
that it will continue to incur losses for the foreseeable future as it develops
a new strategy. The Company currently has no ongoing operations since December
31, 2001.

         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 withdrew its equipment from the Port of Baltimore
and transferred it, along with its inventory, to a storage facility in
Albuquerque, New Mexico. All equipment was disposed of in 2003.

Plan of Operation
-----------------

         Without any operating business or material assets, the Company will
remain inactive until such time management identifies strategic opportunities,
finds additional funding, or completes an acquisition of or merger with an
operating company. No assurances can be given as to the Company's ability to
identify and complete a transaction by any given date or as to the nature of the
business or profitability of the company if a transaction is completed.

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

         The Company has a working capital deficit of $5,172,000 on June 30,
2004 as compared to a working capital deficit of $4,895,000 at December 31,

                                       7
<PAGE>

2003. The decrease in working capital is primarily attributable to the net loss
incurred during the first six months of 2004 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 Commodore Environmental
Services, Inc. ("Environmental") which owns 85% of the Company. There can be no
assurances, however, that the Company will be able to obtain any financing from
Environmental.

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

         At June 30, 2004, the Company had tax loss carryforwards of
approximately $13,400,000. 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
has occured in previous years which may reduce the amount of loss allowable.
These net operating loss 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

                                       8
<PAGE>

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 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.


ITEM 3.  Controls and Procedures
         -----------------------

         1. Evaluation of disclosure controls and procedures.

         Paul Hannesson who serves as Commodore Separation Technologies, Inc.'s
Chief Executive Officer and Andrew P. Oddi who serves as Commodore Separation
Technologies, Inc.'s Chief Financial Officer, after evaluating the effectiveness
of Commodore Separation Technologies, Inc.'s internal controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) as of June 30, 2004
(the Evaluation Date) concluded that as of the Evaluation Date, Commodore
Separation Technologies, Inc.'s internal controls and procedures were adequate
and effective to ensure that material information relating to Commodore
Separation Technologies, Inc. would be made known to them by others within those
entities, particularly during the period in which this quarterly report was
being prepared.

         2. Changes in internal controls.

         There were no significant changes in Commodore Separation Technologies,
Inc.'s internal controls or in other factors that could significantly affect
Commodore Separation Technologies, Inc.'s disclosure controls and procedures
subsequent to the Evaluation Date, nor any significant deficiencies or material
weaknesses in such disclosure controls and procedures requiring corrective
actions. As a result, no corrective actions were taken.


                                       9
<PAGE>

                           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 Form 8-K

         (a) Exhibits -

          Exhibit 31.1 - Certification Pursuant to Section 302 of the Sarbanes -
          Oxley Act of 2002.

          Exhibit 31.2 - Certification Pursuant to Section 302 of the Sarbanes -
          Oxley Act of 2002.

          Exhibit 32 - Certification Pursuant to 18 U.S.C. Section 1350 as
          adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002.


         (b) Reports on Form 8-K - None



                                       10
<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:   August 13, 2004


                                       11