SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q
(Mark One)

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

                 For the quarterly period ending  June 30, 2002
                                                 --------------

                                       OR

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

                       For the transition period from to
                         Commission file number 1-4719
                                                ------

                            THE DELTONA CORPORATION
                            ------------------------
             (Exact name of registrant as specified in its charter)


            DELAWARE                                   59-0997584
--------------------------------------------------------------------------------
(State of other jurisdiction of                    (I.R.S. Employer
incorporation or organization)                  Identification Number)

8014 SW 135 STREET ROAD, OCALA, FLORIDA                  34473
--------------------------------------------------------------------------------
(Address of principal executive office)                (Zip Code)

Registrant's telephone number, including area code           (352)307-8100
                                                   -----------------------------

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of  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 ___

     Indicate the number of shares outstanding of the issuer's classes of common
stock, as of the latest practicable date: 13,544,277 shares of common stock, $1
par value, excluding treasury stock, as of June 30, 2002.
<PAGE>


                          PART I- FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS
<TABLE>
<CAPTION>

                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
                 UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
                 -----------------------------------------------
                       JUNE 30, 2002 AND DECEMBER 31, 2001
                       -----------------------------------
                                 ($000 Omitted)


                                                        June 30,    December 31,
                                                          2002         2001
                                                        ---------   ------------
<S>                                                     <C>         <C>
                     ASSETS
                     ------


Cash and cash equivalents, including escrow deposits
 and restricted cash of $432 in 2002 and $561 in 2001.. $     847   $     923
                                                        ---------   ---------
Contracts receivable for land sales - net..............     1,048       1,213
                                                        ---------   ---------
Mortgages and other receivables - net..................       225         248
                                                        ---------   ---------

Inventories (b):
 Land and land improvements............................     7,607       7,941
 Other.................................................     1,414       1,261
                                                        ---------   ---------
       Total inventories...............................     9,021       9,202
                                                        ---------   ---------

Property, plant, and equipment at cost - net...........       621         623
Investment in Venture..................................        64          53
Prepaid expenses and other (g).........................       899       1,168
                                                        ---------   ---------
       Total........................................... $  12,725   $  13,430
                                                        =========   =========

                LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
                -------------------------------------------------

Mortgages and similar debt(c):
 Mortgage notes payable................................ $   3,600   $   4,200
 Other loans ..........................................     6,959       6,077
                                                        ---------   ---------
       Total mortgages and similar debt................    10,559      10,277

Accounts payable, accrued expenses,
 customers' deposits...................................     6,707       7,045
Deferred revenue.......................................     3,641       4,425
                                                        ---------   ---------
Total liabilities......................................    20,907      21,747
                                                        ---------   ---------

Commitments and contingencies (d):

Stockholders' equity (deficiency):
  Common stock, $1 par value - authorized
  15,000,000 shares; outstanding: 13,544,277 shares
  (excluding 12,228 shares held in treasury............    13,544      13,544
 Capital surplus.......................................    52,489      52,440
 Accumulated deficit...................................   (74,215)    (74,301)
                                                        ---------   ---------
       Total stockholders' equity (deficiency).........    (8,182)     (8,317)
                                                        ---------   ---------
             Total..................................... $  12,725   $  13,430
                                                        =========   =========
</TABLE>

See accompanying notes.

                                        2

<PAGE>



<TABLE>
<CAPTION>
                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
            ---------------------------------------------------------
                            FOR THE PERIODS INDICATED
                            -------------------------
                     ($000 Omitted Except Per Share Amounts)


                                          Six Months Ended             Three Months Ended
                                     --------------------------    --------------------------
                                       June 30,       June 30,        June 30,      June 30,
                                         2002           2001            2002          2001
                                     ------------   -----------    -------------   -----------
<S>                                  <C>            <C>             <C>            <C>
Revenues (a):
 Net land sales ..................   $      3,038   $     4,092     $      1,394   $    2,198
 House ...........................          2,335         1,941            1,362          959
 Recognized improvement revenue /
  prior period sales .............            129            42               88           12
 Gain on recovery of bad debt ....              0           178                0            0
 Interest income .................            226           230              157           56
 Other revenues ..................            418           419              215          270
                                     ------------   -----------     ------------   ----------
     Total .......................          6,146         6,902            3,216        3,495
                                     ------------   -----------     ------------   ----------

Costs and expenses (a):
 Cost of sales and improvements ..          2,844         2,744            1,594        1,411
 Selling, general, administrative
  and other expenses .............          2,995         3,512            1,544        1,775
 Loss in Joint Venture ...........              4             0                0            0
 Interest expense (c)(e) .........            217           540              125          265
                                     ------------   -----------     ------------   ----------
     Total .......................          6,060         6,796            3,263        3,451
                                     ------------   -----------     ------------   ----------

Net Income (Loss).................   $         86           106     $        (47)  $       44
                                     ============   ===========     ============   ==========

Net Income (Loss) per common share   $       (.01)  $       .01     $       (.00)  $      .00
                                     ============   ===========     ============   ==========

Number of common and common
 equivalent shares ...............     13,544,277    13,544,277       13,544,277   13,544,277
                                     ============   ===========     ============   ==========

</TABLE>


See accompanying notes.



                                        3

<PAGE>

<TABLE>
<CAPTION>


                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
            ---------------------------------------------------------
                            FOR THE SIX MONTHS ENDED
                            ------------------------
                         JUNE 30, 2002 AND JUNE 30, 2001
                         -------------------------------
                                 ($000 Omitted)


                                                        Six Months Ended
                                                     ------------------------
                                                      June 30,       June 30,
                                                        2002           2001
                                                     ----------     ---------
<S>                                                  <C>            <C>

Cash flows from operating activities ............... $(1,676)       $(3,086)
                                                     -------        -------

Cash flows from investing activities:
 Payment for acquisition of equipment ..............     (44)           (47)
                                                     -------        -------
Cash flows from financing activities:
 New borrowings ....................................   1,644          3,239
                                                     -------        -------

Net increase (decrease) in cash and cash equivalents
 (including escrow deposits and restricted cash) ...     (76)           106

Cash and cash equivalents beginning of period ......     923            680
                                                     -------        -------

Cash and cash equivalents end of period ............ $   847        $   786
                                                     =======        =======



See accompanying notes.
</TABLE>


                                        4

<PAGE>

<TABLE>
<CAPTION>


                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
            ---------------------------------------------------------
                            FOR THE SIX MONTHS ENDED
                            ------------------------
                         JUNE 30, 2002 AND JUNE 30, 2001
                         -------------------------------
                                 ($000 Omitted)

                                                       Six Months Ended
                                                     ------------------------
                                                      June 30,       June 30,
                                                        2002           2001
                                                     ----------     ---------
<S>                                                  <C>            <C>

Reconciliation of net income to net cash
 provided by (used in) operating activities:

  Net income ....................................... $     86       $   106
                                                     --------       -------

Adjustments to reconcile net income to net cash
 provided by (used in) operating activities:

  Depreciation and amortization ....................       46            30
  Provision for estimated uncollectible sales-net ..      646         1,247
  Contract valuation discount, net of amortization .      (25)          (48)
  Imputed Interest on debt with related party ......       86           113
  Loss on Joint Venture ............................        4             0
  Net change in assets and liabilities .............   (2,519)       (4,534)
                                                     --------       -------
               Total adjustments ................... $ (1,762)      $(3,192)
                                                     --------       -------

  Net cash provided by (used in) operating
   activities....................................... $ (1,676)      $(3,086)
                                                     ========       =======

  Supplemental disclosure of non cash investing
               and financing activities:

  Reduction of debt as a result of the conveyance
               of contracts receivable ............. $  1,336       $ 3,167
                                                     ========       =======



See accompanying notes.

</TABLE>

                                        5

<PAGE>



                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
         --------------------------------------------------------------
                                  JUNE 30, 2002
                                  -------------

THE INFORMATION PRESENTED HEREIN AS OF JUNE 30, 2002 FOR THE THREE AND SIX
MONTHS ENDED JUNE 30, 2002 AND 2001 IS UNAUDITED.

(a)  BASIS OF PRESENTATION

     The condensed unaudited financial statements of The Deltona Corporation and
     subsidiaries  ("The Company") have been prepared  pursuant to the rules and
     regulations of the Securities and Exchange  Commission (the  "Commission").
     Certain information and footnote disclosures normally included in financial
     statements  prepared in accordance  with  accounting  principles  generally
     accepted in the United  States of America  have been  condensed  or omitted
     pursuant to Commission  rules and  regulations.  The information  furnished
     reflects, in the opinion of management, all adjustments (consisting only of
     normal recurring adjustments) necessary for a fair statement of the results
     for the interim periods  presented.  Operating results for the threeand six
     months ended June 30, 2002 are not  necessarily  indicative  of the results
     that may be expected for the year ending December 31, 2002. These condensed
     consolidated  financial  statements  should be read in conjunction with the
     financial statements and the notes thereto included in the Company's latest
     Annual Report on Form 10-K.

     Certain amounts have been reclassified for comparative purposes.

     The accompanying  financial statements of the Company have been prepared on
     a going concern basis,  which  contemplates  the  realization of assets and
     satisfaction  of  liabilities  in  the  normal  course  of  business.   The
     consolidated  financial  statements do not include any adjustments relating
     to the recoverability of asset amounts or the amounts of liabilities should
     the Company be unable to continue as a going concern.

     The Company has been dependent on its ability to sell or otherwise  finance
     contracts receivable and/or secure other financing sources to meet its cash
     requirements.  Additional financing was required in the three and six month
     periods ended June 30, 2002 and was funded  through  additional  loans from
     Swan.  Additional  financing will be required in the future.  Although Swan
     has  loaned the  Company  additional  funds to be paid back with  contracts
     receivable  at the rate of 90% of face  value,  with  recourse  since 1999,
     there  can be no  guarantee  that  the  Company  will be  able to  generate
     sufficient receivables to obtain sufficient financing in the future or that
     Yasawa,  Scafholding,  Swan and other related parties will continue to make
     loans to the Company.

(b)  INVENTORIES

     Information  with  respect to the  classification  of inventory of land and
     improvements  including  land held for sale or  transfer  is as follows (in
     thousands):

                              Land and Improvements
                              ---------------------

                                                        June 30,    December 31,
                                                          2002         2001
                                                        --------    ------------
           Unimproved land............................. $   420     $    420
           Land in various stages of development.......   2,592        2,147
           Fully improved land.........................   4,595        5,374
                                                        --------    --------
                  Total................................ $ 7,607     $  7,941
                                                        ========    ========


                                        6

<PAGE>



(c)  MORTGAGES AND SIMILAR DEBT

     The  following  table  presents  information  with respect to mortgages and
     similar debt (in thousands):

                                                        June 30,    December 31,
                                                          2002         2001
                                                        --------    ------------
           Mortgage Notes Payable ..................... $  3,600    $  4,200
           Other Loans.................................    6,959       6,077
                                                        --------    --------
               Total mortgages and similar debt........ $ 10,559    $ 10,277
                                                        ========    ========

     From June 19, 1992  through  March 1999,  the Company had entered into loan
     agreements  with  Selex  International  B.V.,  a  Netherlands   corporation
     ("Selex"),  Yasawa  Holdings,  N.V.,  a  Netherlands  Antilles  corporation
     ("Yasawa"),  Swan  Development  Corporation  ("Swan") and related  parties,
     including  Scafholding  B.V.  ("Scafholding").  Since  December  1992,  the
     Company has been dependent on loans and advances from Selex,  Yasawa,  Swan
     and their affiliates in order to meet its working capital requirements.

     Included in Mortgage  Notes Payable is the Yasawa loan  ($3,600,000 at June
     30, 2002);  included in Other Loans is the Swan loan ($6,837,000 as of June
     30, 2002).

     Indebtedness  under various purchase money mortgages and loan agreements is
     collateralized  by  substantially  all of the Company's  assets,  including
     stock of certain wholly-owned subsidiaries.  The Company's outstanding debt
     to Yasawa is  secured by a first lien on the  Company's  receivables  and a
     mortgage on all of the Company's  property;  and the Company's  outstanding
     debt to Swan is secured by a second lien on the Company's receivables.

     The  Company's  outstanding  debt  to  Yasawa  as  of  June  30,  2002  was
     $3,600,000.  The terms of repayment of the restructured Yasawa loan provide
     for monthly payments of principal in the amount of $100,000 payable monthly
     in cash or with contracts  receivable at 100% of face value, with recourse.
     Interest  accrues  on the  declining  balance at the prime  rate,  adjusted
     semi-annually to equal the prime rate then in effect.  From January 2002 to
     June 30, 2002, the interest rate on the outstanding  debt was 4.75%,  which
     was prime.  Yasawa and  Scafholding  have not  required the Company to make
     interest  payments since  September 1, 1998. As of June 30, 2002, the total
     amount of interest accrued is approximately  $2,245,000,  which is included
     in accrued expenses.

     From  October 9, 1998  through  the  present,  Swan  continued  to loan the
     Company  funds to meet its  working  capital  requirements.  The  Company's
     outstanding  debt to Swan was  $6,837,000 as of June 30, 2002.  The Company
     signed a promissory  note to Swan in March 1999,  which provides that funds
     advanced  by Swan will be paid back by the  Company  monthly  in  contracts
     receivables at 90% of face value,  with recourse.  There is no interest for
     the first six months  after the  Company  receives an advance of money from
     Swan.   Currently,   the  interest   rate  is  the  prime  rate,   adjusted
     semi-annually  to equal the prime rate then in effect (4.75% as of June 30,
     2002).  Each time an advance is made, a  supplemental  note is signed.  The
     amount of each monthly  payment  will vary and will be  dependent  upon the
     amount  of  contracts  receivable  in the  Company's  portfolio,  excluding
     contracts  receivable  held  as  collateral  for  prior  receivable  sales.
     Pursuant to the terms of the  promissory  note,  the Company is required to
     transfer to Swan monthly as debt repayment all current contracts receivable
     in the  Company's  portfolio  in excess of the  aggregate  sum of $500,000.
     Funds  advanced  by Swan were  used by the  Company  to meet the  Company's
     working  capital  requirements.  From January  2002 to June 30,  2002,  the
     interest rate on the  outstanding  debt was 4.75%,  which was prime.  As of
     June 30,  2002,  the total  amount of  interest  accrued  is  approximately
     $696,000 , which is included in accrued expenses.

     For 2002 and 2001 , the Company recorded interest expense for the first six
     months of each loan advance from Swan that is non- interest  bearing at the
     prime rate.  Since the interest is not paid to Swan, the amount  calculated
     is recorded as a capital contribution  increase to capital surplus. For the
     first six months of 2002,  the  Company  recorded  interest  expense  and a
     capital contribution in the amount of approximately $49,000.

     In the future,  if the Company elects to do so, Yasawa and Scafholding have
     agreed  to  purchase  contracts  receivable  at 65%  of  face  value,  with
     recourse.  The Company has an agreement with Swan whereby Swan may loan the
     Company funds to be repaid with contracts  receivable at 90% of face value,
     with recourse.

                                        7

<PAGE>



(d)  COMMITMENTS AND CONTINGENCIES

     Homesite  sales  contracts  provide  for the return of all  monies  paid in
     (including  paid-in  interest)  should  the  Company  be unable to meet its
     contractual  obligations after the use of reasonable diligence. If a refund
     is made, the Company will recover the related  homesite and any improvement
     thereto.

(e)  CAPITALIZED INTEREST

     The  Company   capitalizes   interest  cost  incurred  during  a  project's
     construction period.  Interest expense incurred prior to capitalization was
     $254,000  and  $639,000 for the six months ended June 30, 2002 and June 30,
     2001,  respectively.  Interest  in the amount of $37,000  and  $99,000  was
     capitalized for the six months ended June 30, 2002 and 2001, respectively.

(f)  EARNINGS OR LOSS PER SHARE

     Basic earnings (loss) per common and common  equivalent share were computed
     by dividing net income (loss) by the weighted  average  number of shares of
     Common Stock and common stock equivalents outstanding during each period.

(g)  CAPITAL TRANSACTION

     On  December  13,  2001,  the Board of  Directors  approved a 1 for 500,000
     reverse split of the Company's common stock and a related  amendment to the
     Company's  Articles  of  Incorporation  reducing  the number of  authorized
     shares to 30. Both actions are subject to stockholder approval. The Company
     has filed a Form 13E(3) and a preliminary  proxy  statement  related to the
     proposals.  The effect of the reverse split will be to reduce the number of
     the Company's stockholders to two stockholders: Selex International,  B.V.,
     a  Netherlands   corporation   ("Selex")  and  Yasawa  Holdings,   N.V.,  a
     Netherlands  Antilles  corporation  ("Yasawa").  The date of the meeting of
     stockholders   to  consider  both  matters  will  be  determined  upon  the
     conclusion of SEC review.

(h)  RELATED PARTY TRANSACTION

     During  2001,  the Company  entered  into a joint  venture  agreement  (the
     "Venture") with Scafholding for the purchase of property tax  certificates,
     application of tax deeds,  administration  and the  acquisition and sale of
     land. The Company provides administrative,  managerial, sales and marketing
     services to the Venture.  The Company is  reimbursed by the Venture for all
     commissions  and marketing costs plus an  administrative  fee of 10% of all
     sales  consummated.  Scafholding  provides financing to the Venture and has
     loaned the Venture approximately $1,325,000 as of June 30, 2002. There were
     no  reimbursements  for the six months ended June 30, 2002.  Administrative
     fees in the amount of $1,960 were earned for the six months  ended June 30,
     2002;  no  administrative  fees  were  earned  in  2001.  Interest  on  the
     outstanding  debt  accrues at the fixed rate of 7.75%.  Net income is to be
     distributed  equally  between  the  Company  and  Scafholding.  The Company
     records its investment in the Venture using the equity method of accounting
     as control of the Venture rests with  Scafholding as specified in the joint
     venture agreement.


                                        8

<PAGE>



ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS

This report on Form 10-Q of the Company for the three and six months  ended June
30,  2002  contains  certain  forward-looking  statements  within the meaning of
Section 27A of the  Securities  Act of 1933, as amended,  and Section 21E of the
Securities Exchange Act of 1934, as amended, which are intended to be covered by
the safe harbors  created  thereby.  To the extent that such  statements are not
recitations  of historical  fact,  such  statements  constitute  forward-looking
statements which, by definition, involve risks and uncertainties. In particular,
statements  under Item 2,  Management's  Discussion  and  Analysis of  Financial
Condition and Results of Operation,  contain forward-looking statements.  Where,
in any forward-looking statement, the Company has an expectation or belief as to
future results or events,  such expectation or belief is expressed in good faith
and believed to have  reasonable  basis,  but there can be no assurance that the
statement of expectation or belief will result or be achieved or accomplished.

RESULTS OF OPERATIONS
---------------------

For the six months ended June 30, 2002 and June 30, 2001.

Revenues
--------

Total revenues  were $6,146,000 for the first six months of 2002 ($3,216,000 for
the quarter ending June 30, 2002) compared to $6,902,000 for the comparable 2001
period ($3,495,000 for the quarter ending June 30, 2001).

Gross land sales were $3,792,000 for the first six months of 2002($1,728,000 for
the quarter  ending June 30,  2002)  compared  to  $5,453,000  for the first six
months of 2001 ($2,937,000 for the quarter ending June 30, 2001). Net land sales
(gross land sales less estimated  uncollectible  installment  sales and contract
valuation   discount)   decreased  to   $3,038,000   the  first  six  months  of
2002($1,394,000 for the quarter ending June 30, 2002) compared to $4,092,000 for
the first six months of 2001  ($2,198,000 for the quarter ending June 30, 2001).
The decrease in sales  reflects  lower land sales by the  Company's  independent
dealers.

New retail land sales contracts  entered into,  including deposit sales on which
the Company has received less than 20% of the sales price, net of cancellations,
for the six months  ended June 30,  2002 and June 30, 2001 were  $3,387,000  and
$5,715,000,  respectively  and  $1,783,000  and  $3,320,000 for the three months
ended  June 30,  2002 and 2001,  respectively.  The  Company  had a  backlog  of
approximately  $2,655,000  in  unrecognized  sales  as of June  30,  2002.  Such
contracts are not included in retail land sales until the applicable  rescission
period has expired and the Company has  received  payments  totaling  20% of the
contract sales price.

Housing  revenues  were  $2,335,000  for the  first six  months  of 2002  versus
$1,941,000 for the  comparable  2001 period.  Revenues are not  recognized  from
housing sales until the completion of construction and passage of title. Housing
revenues  increased as of result of more homes being  closed in the period.  The
backlog of houses under contract , including both houses under  construction and
to be  constructed,  was  $7,077,000 and $4,627,000 as of June 30, 2002 and June
30, 2001, respectively.

The  following  table  reflects the  Company's  real estate  product mix for the
periods indicated (in thousands):

                                Six Months Ended           Three Months Ended
                            -----------------------     ------------------------
                            June 30,       June 30,     June 30,        June 30,
                              2002           2001         2002            2001
                            --------       --------     --------        --------
     Gross Land Sales:
     Retail Sales:          $ 3,792        $  5,453    $ 1,728         $ 2,937
                            -------        --------    -------          ------

     Housing Sales:           2,335           1,941      1,362             959
                            -------        --------    -------          ------

       Total Real Estate    $ 6,127        $  7,394    $ 3,090         $ 3,896
                            =======        ========    =======         =======

Improvement  revenues  result from  recognition of revenues  deferred from prior
period sales.  Recognition occurs as development work proceeds on the previously
sold  property  or  customers  are  exchanged  to a developed  lot.  Improvement
revenues  totaled  $130,000  for the first six  months of 2002  ($88,000 for the
second quarter of 2002) versus $41,000 for the comparable  2001 period  ($12,000
for the second quarter of 2001).


                                        9

<PAGE>



Interest  income was $226,000 for the first six months of 2002 ($157,000 for the
second quarter of 2002) versus  $230,000 for the comparable 2001 period ($56,000
for the  second  quarter of 2001).

Other  revenues were $418,000 for the first six months of 2002 ($215,000 for the
second quarter of 2002) versus $419,000 for the comparable 2001 period ($270,000
for the second quarter of 2001). Other revenues are principally generated by the
Company's title insurance and real estate brokerage subsidiaries.

Costs and Expenses
------------------

Costs and expenses were $6,060,000 for the first six months of 2002  ($3,263,000
for the second quarter of 2002) versus $6,796,000 for the comparable 2001 period
($3,451,000 for the second quarter of 2001).

Cost of sales were  $2,844,000 for the first six months of 2002  ($1,593,000 for
the second quarter of 2002) versus  $2,744,000  for the  comparable  2001 period
($1,411,000 for the second quarter of 2001). Commissions,  advertising and other
selling expenses  totaled  $1,893,000 for the first six months of 2002 ($934,000
for the second quarter of 2002) versus $2,495,000 for the comparable 2001 period
($1,283,000 for the second quarter of 2001). Lower retail land sales resulted in
decreased  commission expense.  Other selling expenses decreased to $596,000 for
the first six months of 2002  ($347,000  for the second  quarter of 2002) versus
$630,000 for the  comparable  2001 period  ($354,000  for the second  quarter of
2001) as a result of decreased  jobsite  expenses.  Advertising  and promotional
expenses  decreased to $63,000 for the first six months of 2002 ($29,000 for the
second quarter of 2002) versus  $135,000 for the comparable 2001 period ($47,000
for the second quarter of 2001).

General and  administrative  expenses  were $815,000 for the first six months of
2002  ($468,000  for  the  second  quarter  of  2002)  versus  $729,000  for the
comparable  2001 period  ($348,000 for the second quarter of 2001).  General and
administrative expenses increased primarily due to increased overhead expenses.

Real  estate  tax  expenses  were  $287,000  for the  first  six  months of 2002
($143,000  for the second  quarter of 2002) versus  $288,000 for the  comparable
2001 period ($144,000 for the second quarter of 2001).

Interest expense was $217,000 for the first six months of 2002 ($125,000 for the
second  quarter of 2002) versus  $540,000  ($265,000  for the second  quarter of
2001).  The decrease in interest  expense is a result of debt balances  accruing
interest at a lower interest rate.

Net Income
----------

The Company  reported  net income of $86,000 for the first six months of 2002 (a
net loss of  ($47,000)  for the second  quarter of 2002)  versus a net income of
$106,000  for the  comparable  2001  period (an income of $44,000 for the second
quarter of 2001).

Regulatory Developments which may affect Future Operations
----------------------------------------------------------

In Florida,  as in many growth areas,  local governments have sought to limit or
control  population  growth in their  communities  through  restrictive  zoning,
density reduction,  the imposition of impact fees and more stringent development
requirements.  Although the Company has taken such factors into consideration in
its master  plans by  agreeing,  for example,  to make  improvements,  construct
public  facilities and dedicate  certain  property for public use, the increased
regulation  has  lengthened  the  development  process and added to  development
costs.

The  implementation  of the Florida  Growth  Management  Act of 1985 (the "Act")
precludes  the issuance of  development  orders or permits if public  facilities
such  as  transportation,  water  and  sewer  services  will  not  be  available
concurrent  with  development.  Development  orders have been  issued  for,  and
development  has  commenced  in,  the  Company's   existing   communities  (with
development  being  completed  in  certain  of  these  communities).  Thus,  the
Company's  communities  are  less  likely  to be  affected  by  the  new  growth
management policies than future communities. Any future communities developed by
the Company will be strongly impacted by new growth management  policies.  Since
the Act and its implications are consistently being re-

                                       10

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examined by the State,  together  with local  governments  and various state and
local  governmental  agencies,  the Company cannot further predict the timing or
the effect of new growth management policies, but anticipates that such policies
may increase the Company's permitting and development costs.

The Company's  real estate  business is subject to regulation by various  local,
state  and  federal  agencies.  The  communities  are  increasingly  subject  to
substantial regulation as they are planned, designed and constructed, the nature
of such regulation extending to improvements,  zoning, building,  environmental,
health and related matters. Although the Company has been able to operate within
the  regulatory  environment  in the past,  there can be no assurance  that such
regulations  could not be made more restrictive and thereby adversely affect the
Company's operations.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

    MORTGAGES AND SIMILAR DEBT

From June 19,  1992  through  March 1999,  the  Company  had  entered  into loan
agreements with Selex International B.V., a Netherlands  corporation  ("Selex"),
Yasawa  Holdings,  N.V., a Netherlands  Antilles  Corporation  ("Yasawa"),  Swan
Development Corporation ("Swan") and related parties, including Scafholding B.V.
("Scafholding").  Since December,  1992, the Company has been dependent on loans
and advances from Selex,  Yasawa, Swan and their affiliates in order to meet its
working capital requirements.

Indebtedness  under various  purchase  money  mortgages  and loan  agreements is
collateralized by substantially all of the Company's assets,  including stock of
certain wholly-owned  subsidiaries.  The Company's outstanding debt to Yasawa is
secured by a first lien on the  Company's  receivables  and a mortgage on all of
the Company's property; and the Company's outstanding debt to Swan is secured by
a second lien on the Company's receivables.

The Company's outstanding debt to Yasawa as of June 30, 2002 was $3,600,000. The
terms of repayment of the restructured  Yasawa loan provide for monthly payments
of principal in the amount of $100,000 payable monthly in cash or with contracts
receivable  at  100% of face  value,  with  recourse.  Interest  accrues  on the
declining balance at the prime rate,  adjusted semi- annually to equal the prime
rate then in effect.  From January 2002 to June 30, 2002,  the interest  rate on
the outstanding debt was 4.75%, which was prime. Yasawa and Scafholding have not
required the Company to make interest  payments  since  September 1, 1998. As of
June 30, 2002, the total amount of interest  accrued is  approximately $ , which
is included in accrued expenses.

From  October 9, 1998 through the  present,  Swan  continued to loan the Company
funds to meet its working capital  requirements.  The Company's outstanding debt
to Swan was $6,837,000 as of June 30, 2002. The Company signed a promissory note
to Swan in March 1999,  which  provides that funds advanced by Swan will be paid
back by the Company monthly in contracts  receivables at 90% of face value, with
recourse.  There is no  interest  for the first  six  months  after the  Company
receives  an advance of money from Swan.  Currently,  the  interest  rate is the
prime rate, adjusted semi-annually to equal the prime rate then in effect (4.75%
as of June 30,  2002).  Each time an advance  is made,  a  supplemental  note is
signed.  The amount of each monthly payment will vary and will be dependent upon
the  amount  of  contracts  receivable  in the  Company's  portfolio,  excluding
contracts receivable held as collateral for prior receivable sales.  Pursuant to
the terms of the  promissory  note,  the Company is required to transfer to Swan
monthly as debt  repayment  all current  contracts  receivable  in the Company's
portfolio in excess of the  aggregate  sum of $500,000.  Funds  advanced by Swan
were used by the Company to meet the  Company's  working  capital  requirements.
From January 2002 to June 30, 2002,  the interest rate on the  outstanding  debt
was 4.75%,  which was prime.  As of June 30, 2002,  the total amount of interest
accrued is approximately $696,000, which is included in accrued expenses.

The following table presents information with respect to mortgages and similar
debt (in thousands):

                                                        June 30,    December 31,
                                                          2002         2001
                                                        --------    ------------
           Mortgage Notes Payable ..................... $  3,600    $  4,200
           Other Loans.................................    6,959       6,077
                                                        --------    --------
               Total mortgages and similar debt........ $ 10,559    $ 10,277
                                                        ========    ========
---------
          Included in Mortgage  Notes Payable is the Yasawa loan  ($3,600,000 at
          June 30, 2002);  included in Other Loans is the Swan loan  ($6,837,000
          as of June 30, 2002).



                                       11

<PAGE>


    CONTRACTS AND MORTGAGES RECEIVABLE SALES

In 1990 and 1992, the Company sold  contracts and mortgages  receivable to third
parties. These transactions, among other things require that the Company replace
or repurchase any receivable that becomes 90 days delinquent upon the request of
the  purchaser.  Such  requirement  can be satisfied from contracts in which the
purchaser  holds a  security  interest  (approximately  $983,000  as of June 30,
2002). The Company has reserved for the estimated future  cancellations based on
the Company's  historical  experience for receivables  the Company  services and
believes  these  reserves  to be  adequate.  The  Company  did not  replace  any
delinquent  receivables  in 2001 or 2002.  As of June 30, 2002 and  December 31,
2001, $1,043,000 and $1,060,000 in receivables were delinquent, respectively.

Since 1997,  the Company sold or transferred  for debt  repayment  contracts and
mortgages  receivable  to related third  parties,  Scafholding  and Swan.  These
transactions,   among  other  things,  require  that  the  Company  replace  any
receivable that becomes  eligible to be canceled.  Such requirement is satisfied
monthly from  contracts in the  Company's  receivable  portfolio  not  otherwise
secured to unrelated  third parties.  The Company has reserved for the estimated
future  cancellations  of  these  contracts  based on the  Company's  historical
experience for receivables  the Company  services and believes these reserves to
be adequate.

The  Company  is  the  guarantor  of  approximately   $19,787,000  of  contracts
receivable  sold  or  transferred  as of June  30,  2002,  for the  transactions
described  above.  There  are  no  funds  on  deposit  with  purchasers  of  the
receivables  as security to assure  collectibility  as of such date. A provision
has been established for the Company's  obligation under the recourse provisions
of which approximately $2,929,000 remains at June 30, 2002. The Company has been
in  compliance  with all  receivable  transactions  since  the  consummation  of
receivable sales.

The Company has an agreement with Scafholding and Citony Development Corporation
for  the  servicing  of  their  receivable  portfolios.   The  Company  received
approximately $37,000 for the six months ended June 30, 2002 and $73,000 for the
year 2001, respectively, in revenue pursuant to these agreements.

In the  future,  if the Company  elects to do so,  Yasawa and  Scafholding  have
agreed to purchase contracts receivable at 65% of face value, with recourse. The
Company has an agreement with Swan whereby Swan may loan the Company funds to be
repaid with contracts receivable at 90% of face value, with recourse.

    LIQUIDITY

Retail land sales have  traditionally  produced  negative  cash flow through the
point of sale as a result of a regulatory  requirement  to sell fully  developed
lots and the additional  requirement to pay marketing and selling expenses prior
to or shortly  after the point of sale. In an effort to offset the negative cash
flow  effects of  installment  land sales,  the  Company is  directing a greater
portion  of its  marketing  efforts  to the sale of lots  with  homes and is now
offering lots for sale in compulsory  building  areas where a lot purchaser must
complete  payments for the lot and  construct a home within a limited  period of
time.

The Company has been  dependent on its ability to sell or otherwise  finance its
contracts   receivable   and/or   secure  other   financing  to  meet  its  cash
requirements.  Since 1992,  the Company has been  largely  dependent  on Yasawa,
Scafholding  and Swan and related  parties for the financing of its  operations.
Although  Scafholding has purchased contracts  receivables at the rate of 65% of
face value, with recourse,  and Swan has loaned the Company  additional funds to
be paid back with  contracts  receivable at the rate of 90% of face value,  with
recourse,  there can be no  guarantee  that the Company will be able to generate
sufficient  receivables  to obtain  sufficient  financing  in the future nor can
there be any guarantee that Yasawa, Scafholding,  Swan and other related parties
will continue to make loans to the Company.


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                           PART II - OTHER INFORMATION
                           ---------------------------


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K.

            (a)  Exhibits

                    See attached Exhibit 99.1 for  Certification  pursuant to 18
                    U.S.C.  Section 1350, as adopted  pursuant to Section 906 of
                    the  Sarbanes  - Oxley  Act of 2002  (CEO  Certification  by
                    Antony Gram).

                    See attached Exhibit 99.2 for  Certification  pursuant to 18
                    U.S.C.  Section 1350, as adopted  pursuant to Section 906 of
                    the  Sarbanes  - Oxley  Act of 2002  (CFO  Certification  by
                    Robert O. Moore).


            (b)  Reports on Form 8-K

                    None.





                                    SIGNATURE
                                    ---------



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.

                                          THE DELTONA CORPORATION



Date: August 14, 2002                     By: /s/Sharon Hummerhielm
                                              ---------------------------------
                                              Sharon Hummerhielm
                                              Executive Vice President



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