SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                   FORM 10-QSB

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

                      For Three Months Ended March 31, 2000
                          Commission File Number 0-3296

                               ETHIKA CORPORATION
             (Exact name of registrant as specified in its charter)


                     MISSISSIPPI                  64-0440887
           (State of other jurisdiction of      (IRS Employer
            incorporation or organization)       Identification No.)

                              11249 W. 103rd Drive
                           Westminster, Colorado 80021
                     (Address of Principal Executive Office)

        Registrant's telephone number including area code: (303) 637 2351

Former name, former address, and former fiscal year, if changed since last
report: NONE.

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes [ X ] No [ ]

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock as of the latest practicable date.

    CLASS                                       Outstanding at May 10, 2000
    Common Stock, $1.00 par value                        28,360,346



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                               ETHIKA CORPORATION

                                      INDEX

PART I:  FINANCIAL INFORMATION

           Item 1.            Financial Statements

    Consolidated balance sheets - March 31, 2000 and December 31, 1999        3

           Consolidated statements of operations for the three months
             ended March 31, 2000 and  1999                                   4

           Consolidated statements of cash flows for the three months
             ended March 31, 2000 and  1999                                   5

           Notes to consolidated financial statements                         6

Item 2. Management's Discussion and Analysis of Financial Condition
           and Results of Operations                                          7

PART II. OTHER INFORMATION

Item 6. Exhibits and Reports of Form 8-K                                      8

Signatures                                                                    8


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                               Ethika Corporation
                                 Balance Sheet
                                  (Unaudited)



                                            March 31,          December 31,
                                              2000                 1999
                                           --------------     ----------------

Cash and cash equivalents                       $ 26,761             $ 21,922
Note receivable                                   46,832               69,515
Investment securities - trading                  17,330                48,523

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

Total current assets                              90,923              139,960

Note receivable                                        -                    -
                                           --------------     ----------------
                                           --------------     ----------------

Total assets                                    $ 90,923            $ 139,960
                                           ==============     ================


Accounts payable and Accrued expenses           $ 28,771             $ 30,793
                                           --------------     ----------------


Common stock                                  28,511,458           28,511,458
Discount on common stock                     (16,166,028)         (16,166,028)
Accumulated deficit                          (12,282,121)         (12,235,151)
                                           --------------     ----------------

                                                  63,309              110,279
Less : treasury stock                             (1,157)              (1,112)
                                           --------------     ----------------

Total stockholders' equity                        62,152              109,167
                                           --------------     ----------------

Total liabilities and stockholders' equity      $ 90,923            $ 139,960
                                           ==============     ================

   The accompanying notes are an integral part of these financial statements
                                       3

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                               Ethika Corporation
                            Statement of Operations
                                  (Unaudited)



                                        Three Months ended March 31,
                                         2000                 1999
                                      --------------     ----------------

General and administrative expenses       $ (17,093)           $ (17,849)

Interest income                               1,317                   14
Unrealized loss on investments              (31,194)                   -
                                      --------------     ----------------

Loss from operations                        (46,970)             (17,835)

Income taxes                                      0                    0
                                      --------------     ----------------

Net (loss)                                $ (46,970)           $ (17,835)
                                      ==============     ================


Basic and diluted earnings per share:      $ (0.002)            $ (0.001)
                                      ==============     ================


 The accompanying notes are an integral part of these financial statements

                                       4

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                               Ethika Corporation
                            Statement of Cash Flows
                                  (Unaudited)


                                                  Three Months ended March 31,
                                                     2000           1999
                                                ---------------- ---------------

Cash Flows from Operating activities
Net Loss                                              $ (46,970)      $ (17,835)

Adjustments to reconcile net (loss) to
net cash provided by operating activities
(Gain) loss on investments                               31,194               -
Decrease in accounts payable                             (2,025)         (6,000)
                                                ---------------- ---------------

Net cash (used by) operating activities                 (17,801)        (23,835)
                                                ---------------- ---------------

Cash flows from investing activities
Payment received on notes receivable                     22,685          12,000
                                                ---------------- ---------------

Net cash provided by investing activities                22,685          12,000
                                                ---------------- ---------------

Cash flows from financing activities
Purchase of treasury stock                                  (45)              -
                                                ---------------- ---------------

Net cash (used by) financing activities                     (45)              -
                                                ---------------- ---------------

Net (decrease) in cash and cash equivalents               4,839         (11,835)

Cash and cash equivalents-beginning of period            21,922          48,318
                                                ---------------- ---------------

Cash and cash equivalents-end of period                $ 26,761        $ 36,483
                                                ================ ===============


Supplemental Cash Flow Information
Cash paid for interest                                      $ -             $ -
                                                ================ ===============


Schedule of Non-Cash Investing and
Financing  Activities                                None           None
                                                ================ ===============

   The accompanying notes are an integral part of these financial statements

                                       5
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                               ETHIKA CORPORATION
              Notes to Unaudited Consolidated Financial Statements
                   For the three months ended March 31, 2000.

NATURE OF OPERATIONS

Ethika Corporation (the  "Corporation") has no present operations other than the
holding of certain assets.  The Corporation is seeking a privately held business
with whom it can reorganize so as to take advantage of the Corporation's  status
as publicly held corporation.

BASIS OF PRESENTATION

The un-audited financial statements contain all adjustments considered necessary
by Management to make the financial statements not misleading.

NOTE RECEIVABLE

During 1995, the Corporation  entered into leasing  activities  which consist of
the leasing of fry cook units to be placed in various  locations and operated by
the lessee.  On March 12, 1999, the  Corporation  entered into an agreement with
the Parent  Corporation  of the lessee,  whereby the  Corporation  assigned  its
leases to the Parent  Corporation for a non interest bearing  promissory note in
the amount of  $128,000  plus a $12,000  cash  payment.  The note  provides  for
sixteen  monthly  installments  of  $8,000  beginning  on April  15,  1999.  The
Corporation  recorded the note at present value of $144,198 imputing interest at
8.00%. The Corporation recognized a loss of $27,292 on this transaction.

LAWSUIT SETTLEMENT

         On September 20, 1998, the Registrant was served with the Third Amended
Complaint in an action entitled  Jeffrey Allard,  et al v. Kidztime TV, Inc., et
al in Colorado District Court, Jefferson County,  Colorado. On July 6, 1999, the
Registrant  entered  into and closed a settlement  agreement  on its  previously
disclosed Legal Proceedings of Jeffrey Allard, et al v. Kidztime TV, Inc., et al
in Colorado District Court, Jefferson County,  Colorado. The settlement releases
all of the plaintiffs  claims  against the  Registrant and any potential  claims
against the Registrant's management.  The terms of the offer were the payment of
$100,000 and the issuance of 5,000,000  shares of restricted  common stock.  The
legal proceedings are to be dismissed with prejudice.

GOING CONCERN

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue as a going  concern.  For the twelve  month period ended
December 31, 1999 the Company incurred a loss from operations of $99,963 and had
an accumulated  deficit of $12,235,151  that raise  substantial  doubt about its
ability to continue as a going concern.

                                       6


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Item 2 - Management's Plan of Operations

The Registrant did not have any revenue from  operations  during the fiscal year
ended  December 31, 1998 nor during the current  fiscal year.  The  accompanying
financial  statements have been prepared assuming that the Company will continue
as a going  concern.  Having  investment  income as its only  source of  income,
raises substantial doubt about the ability of the Company to continue as a going
concern.

The  Registrant's  plan of operations is seek out a privately held business with
whom the Registrant  can reorganize so as to take advantage of the  Registrant's
status as a publicly held  corporation.  In order to facilitate  this objective,
the Registrant  held a  Shareholder's  Meeting in June 1999 and adopted  certain
measures  to  facilitate  a   reorganization.   The  measures  approved  by  the
Shareholders  authorized  the Board of Directors to take the  following  actions
pursuant to a reorganization of the Registrant:

     1.   Increase the size of the Board of Directors to seven members
     2.   Amend  the  Articles  of  Incorporation  to  Change  the  Name  of the
          Corporation
     3.   Declare a reverse split of up to 50 to 1.

As of the  date of this  report,  Management  has  evaluated  several  potential
reorganizations.  However  as of the  date of this  report,  there  has  been no
decision to proceed on any  reorganization nor has any agreement been reached on
even principal terms of such a reorganization.

Liquidity and Capital Resources

The Registrant  has reduced its overhead  expenses to  approximately  $6,000 per
month and is paying $1,000 per month  against its account  payable to its former
auditor.  The  Registrant  receives  $8,000  per  month in  payment  of its note
receivable from Alanco Environmental  Resources Corporation and from these funds
the  Registrant  expects  to have  sufficient  cash  resources  for its  reduced
operations through July 2000.

In September, 1999 the Registrant received a royalty payment of $7,244 from Text
Retrieval Systems, Inc., pursuant to the Registrant's February, 1998 sale of its
former subsidiary. The royalty payment is on each subscription of Text Retrieval
Systems,  Inc.'s HR Comply  product and will  continue  until such time that the
Registrant has been paid a total of $1,500,000.


                                       7
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Part II Other Information:

Item 6 - Exhibits and Reports on 8K

(a)     Exhibits:    (27) Financial Data Schedule
(b)     none

SIGNATURES

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

                                            Ethika Corporation
                                            ------------------
                                            (Registrant)

Date: May 10, 2000                          /s/Dennis Brovarone
                                            -------------------
                                            President



                                       8

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