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 Six Months Ended June 30, 1999
                          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

                            107 The Executive Center
                    Hilton Head Island, South Carolina 29928

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 August 10, 1999
     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 - June 30, 1999
               and December 31, 1998                                       3

               Consolidated  statements of operations for
               the three and six months ended June 30, 1999 and 1998       4

               Consolidated statements of cash flows for the six months
               ended June 30, 1999 and 1998                                5

               Notes to consolidated financial statements                  6

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

PART II. OTHER INFORMATION
Item 1:                    Legal Proceedings                               8
Item 6.                    Reports of Form 8-K                             8

Signatures                                                                 8




<PAGE>




--------------------------------------------------------------------------------
Ethika Corporation and Subsidiaries
Consolidated Balance Sheet  June  30, 1999 and December 31,  1998
--------------------------------------------------------------------------------
(Unaudited)                                  June 30, 1999    Dec. 31, 1998
                                             -------------    -------------

ASSETS

 Current Assets:
 Cash and cash equivalents                        $ 86,453         $ 48,318
 Accounts receivable, net of allowance
    for doubtful accounts                            7,457            7,457
 Investment securities- Trading
 Note Receivable                                    84,482          135,000
                                                    80,802           74,683


Total Current Assets

                                                   268,194          265,458
                                                   -------          -------

Note Receivable - Non current                       23,664           69,515
                                                    ------           ------


Total Assets                                      $291,858        $ 334,973
                                                  ========        =========



--------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
--------------------------------------------------------------------------------
Current Liabilities:

  Accounts payable and accrued expenses          $ 400,344       $  233,343
                                                 ---------       ----------

Total Current Liabilities                          400,344          233,343
                                                   -------          -------




Stockholders' Equity

Common Stock, $1 par value authorized 50,000,000 shares;
 issued 23,387,658 shares and 20,387,658;
 outstanding 23,360,346 shares and
 20,387,658 shares;                             23,361,458       20,361,458

Discount on Common Stock                       ( 8,123,528)     ( 8,123,528)
Accumulated Deficit                            (12,345,306)     (12,135,188)
Less: 27,312 shares of Treasury stock at cost  (     1,112)     (     1,112)
                                               ------------     ------------


Total Stockholders' Equity                        (108,486)         101,630
                                                  --------          -------


Total Liabilities and Stockholders' Equity   $     291,858    $     334,973
                                             =============    =============





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<TABLE>
<CAPTION>


--------------------------------------------------------------------------------
Ethika Corporation and Subsidiaries
Consolidated Statement of Operations
For the six months ended June 30, 1999 and 1998
(Unaudited)
--------------------------------------------------------------------------------
                                             Three Months ended   Three Months ended  Six Months ended   Six Months ended

                                             June 30, 1999        June 30, 1998      June 30, 1999         June 30, 1998
                                             -------------        -------------      -------------         -------------

<S>                                                <C>                <C>                 <C>               <C>
  General and administrative expenses              $27,038            $136,005            $44,889           $329,127
  Lawsuit Settlement                               200,000                   -            200,000                  -
  Interest income                                    5,273              10,056              5,287             27,770
  Gain (loss) on disposal of fixed Assets                -             (35,397)                 -            (32,995)
  Gain (loss) from investment securities            29,484            (297,518)            29,484           (282,263)

Income tax benefit                                       -                   -                  -                  -


Net loss                                         ($192,281)          ($448,864)         ($210,118)         $(616,609)
                                                 =========           =========          =========          =========

Basic and diluted net loss per share                 $(.01)             $(.023)             $(.01)            $(.041
                                                     =====              ======              =====             ======
----------------------------------------------------------------------------------------------------------------------

</TABLE>


The  Accompanying  notes are an integral  part of these  Consolidated  Financial
Statements





<PAGE>





--------------------------------------------------------------------------------
                Ethika Corporation and Subsidiaries Consolidated
                   Statement of Cash Flows For the six months
                          ended June 30, 1999 and 1998
--------------------------------------------------------------------------------
                                               June 30, 1999     June 30, 1998
--------------------------------------------------------------------------------
Cash Flows from Operating Activities:

Net loss                                        ($ 210,118)        ($616,609)
 Adjustments to reconcile net (loss)
  to net cash provided by operating activities           -                 -
 Loss on Disposal of Fixed Assets                        -            35,397
 Realized and unrealized (gain)loss on
  investment securities                            (29,484)          282,263


Changes in balance sheet accounts:
 Decrease in Assets held for sale                         -           739,545
 Increase ( decrease) in accounts payable
  and other liabilities                             167,001          (233,901)
 Sales of investment securities - trading            80,000           171,847
 Net cash provided by (used from)
  Operating activities                                7,401           388,542
                                                     -----

Cash flows from investing activities:
 Payments received from leases                            -            54,199
 Disposal of fixed assets                                 -             9,700
 Note Receivable                                          -          (450,000)
 Net cash (used from) provided by
  Investing activities                               30,734          (421,368)


Cash flows from financing activities:
 Net cash used from financing activities                 0                0
 Increase (decrease) in cash and cash
  Equivalents                                        38,135          (473,631)
 Cash and cash equivalents - beginning of
  Period                                             48,318           535,651


Cash and cash equivalents - end of period         $ 86,453          $ 62,020


Supplemental Cash Flow Information:
  Cash payments for interest                             0                 0

  Cash payment for income taxes:                         0                 0

--------------------------------------------------------------------------------
The  accompanying  notes are an integral  part of these  Consolidated  Financial
Statements.





<PAGE>



                               ETHIKA CORPORATION
                    Notes to Unaudited Consolidated Financial
                    Statements For the six months ended June
                                    30, 1999.

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, 1998, the Company incurred a loss from operations of $1,599,461 and
had an accumulated deficit of $12,135,188 that raise substantial doubt about its
ability to continue as a going concern.




<PAGE>



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 for the remainder of the fiscal year 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 has settled the Kidztime TV
legal proceeding  described below and 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.

In order to fund the settlement of the legal  proceeding  described  below,  the
Registrant  sold 820,513  shares of its Ben Ezra  Weinstein  and Company,  Inc.,
common  stock for $80,000 in cash.  The  Registrant  paid a total of $100,000 to
settle  the  action.  The  Registrant  retains  866,487  shares  of its Ben Ezra
Weinstein and Company,  Inc., common stock and expects to continue to hold these
shares as a reserve against future needs.



<PAGE>




Part II Other Information:

Item 1.             Legal Proceedings

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.

Item 6 - Exhibits and Reports on 8K

       Exhibits:
          (27) Financial Data Schedule
          (b)  8-K  filed  July  12,  1999  regarding  settlement  of
               Kidztime  TV  legal proceeding.

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: August 10, 1999                       /s/Dennis Brovarone
                                            -------------------
                                            President

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