UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 10549

                                   FORM 10-QSB

                 QUARTERLY REPORT UNDER SECTION 11 OR 15 (d) of
                              EXCHANGE ACT OF 1934
                FOR THE QUARTER PERIOD ENDING SEPTEMBER 30, 2001

                         Diapulse Corporation of America
                         -------------------------------
             (Exact Name of registrant as specified on its charter)

         Delaware                                           135671991
---------------------------                        --------------------------
(State or other jurisdiction of)                         (I.R.S. Employer
incorporation of organization                         Identification Number)

321 East Shore Road
Great Neck, New York                                        11023
--------------------                               --------------------------
(Address of principal offices)                            (Zip Code)

Registrant's telephone number,
including area code                                        516-466-3030
                                                      --------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by section 12 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days.

                            Yes X                No

As of September 30, 2001 there were 3,960,730 shares of common stock
outstanding.



Transitional Small Business Disclosure Format:

Yes [  ]                                          No [ X ]



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<PAGE>
                         DIAPULSE CORPORATION OF AMERICA

                              INDEX TO FORM 10-QSB

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

       ITEM 1.     FINANCIAL STATEMENTS

                   BALANCE SHEETS (UNAUDITED)
                     September 30, 2001                                    3-4

                   STATEMENTS OF CASH FLOWS (UNAUDITED)
                     Nine Months ended September 30, 2001                   5

                   STATEMENTS OF OPERATIONS (UNAUDITED)
                     Nine Months ended September 30, 2001                   6

                   NOTES TO UNAUDITED FINANCIAL STATEMENTS                  7

       ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS                     8


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

       ITEM 1.  LEGAL PROCEEDINGS                                          9-10

       ITEM 2.  CHANGES IN SECURITIES                                      11

       ITEM 3.  DEFAULTS UPON SENIOR SECURITIES                            11

       ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS        11

       ITEM 5.  OTHER INFORMATION                                          11

       ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                           11


SIGNATURES
-------------------------------------------------------------------------------
       SIGNATURE PAGE 12



                                       2
<PAGE>

                         DIAPULSE CORPORATION OF AMERICA
                                 BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                      Sept. 30,2001       Dec. 31, 2000
                                                                        Unaudited            Audited
                                                                        ----------         ----------
                                   Assets
<S>                                                                     <C>                <C>
Current Assets:
  Cash and cash equivalents                                             $  302,283         $  416,738
  Current portion of accounts receivable, net of
    Allowance for doubtful accounts of  $1,449,942 at
    September 30, 2001 and $652,040 at December 31, 2000                   366,819            279,624
  Inventories                                                               21,735             15,467
  Commission advances, less allowance for doubtful accounts
    of $17,145 at September 30,2001 and 2000                               163,593            110,389
  Other current assets                                                      22,611              4,829
                                                                        ----------         ----------

      Total current assets                                                 877,041            827,047
                                                                        ----------         ----------

Property and equipment, net                                                 53,621             49,847
                                                                        ----------         ----------

Other assets:
  Accounts receivable, net of current portion                              420,347            320,963
  Commission advances to related parties                                   277,789            256,004
  Security deposits                                                         19,030             19,030
                                                                        ----------         ----------

           Total other assets                                              717,166            595,997
                                                                        ----------         ----------

          Total Assets                                                  $1,647,828         $1,472,891
                                                                        ==========         ==========
</TABLE>



                        See Notes to Financial Statements

                                       3
<PAGE>

                         DIAPULSE CORPORATION OF AMERICA
                                 BALANCE SHEETS

                Liabilities and Stockholder's Equity (Deficiency)

<TABLE>
<CAPTION>
                                                             Sept. 30, 2001       Dec. 31, 2000
                                                                Unaudited            Audited
                                                               -----------         -----------
<S>                                                            <C>                 <C>
Current Liabilities:
  Current portion of  amounts due to officer                   $   133,576         $   100,000
  Accounts payable and accrued liabilities including
    $121,254 and $168,516 to related parties in
    2001 and 2000                                                  482,328             426,229
  Accrued income taxes                                                   0
                                                                                        91,320

         Total current liabilities                                 615,904             617,549

Long-term portion of amounts due to officer                      2,233,107           2,089,791
                                                               -----------         -----------

          Total Liabilities                                      2,849,011           2,707,340
                                                               -----------         -----------

Stockholders' equity:
  Common stock - $.025 par value:
    Authorized 15,000,000 shares, issued 3,962,058
    Shares in 2001 and 2000                                         99,051              99,051
  Additional paid-in capital                                     2,293,272           2,293,272
  Accumulated deficit                                           (3,591,178)         (3,624,444)
                                                               -----------         -----------
                                                                (1,198,855)         (1,232,121)

Less treasury stock 1,328 shares in 2001 and 2000 at cost           (2,328)             (2,328)
                                                               -----------         -----------

          Total stockholders' equity (Deficiency)               (1,201,183)         (1,234,449)
                                                               -----------         -----------

Total liabilities and stockholders' equity (Deficiency)        $ 1,647,828         $ 1,472,891
                                                               ===========         ===========
</TABLE>

                        See Notes to Financial Statements

                                       4
<PAGE>

                         DIAPULSE CORPORTION OF AMERICA
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                              NINE MONTHS ENDED
                                                                SEPTEMBER 30
                                                        ---------------------------
                                                           2001              2000
                                                        ---------         ---------
<S>                                                     <C>               <C>
Cash Flows From Operating Activities:
  Net income                                            $  33,266         $ 489,127
                                                        ---------         ---------
Adjustments to reconcile net income to net cash
  Provided by operating activities:
  Depreciation and amortization                             3,789             3,593
  Changes in operating assets and liabilities:
  (Increase) in accounts receivable                      (186,579)         (424,607)
  (Increase) decrease in commission advances              (74,989)           36,072
  (Increase) decrease in inventories                       (6,268)           18,291
  (Increase) in other assets                              (17,782)             (918)
  Increase in accounts payable and
    Accrued liabilities                                    56,099            37,696
  Increase (Decrease) in income taxes payable             (91,320)           61.320
                                                        ---------         ---------

         Total adjustments                               (317,050)         (268,553)
                                                        ---------         ---------
         Net cash (used) in operating
          Activities                                     (283,784)          220,574
                                                        ---------         ---------
Net cash (used) in investing activities, capital
   Expenditures                                            (7,563)          (11,772)
                                                        ---------         ---------
Cash flow from financing activities:
 Net increase in due to officer                            33,576          (141,959)
Increase in long term portion of amounts
   due to officer                                         143,316            83,891
                                                        ---------         ---------
     Net cash provided by
       Financing activities                               176,892           (58,068)
                                                        ---------         ---------
     Net (decrease) increase in cash
       And cash equivalents                              (114,455)          150,734
Cash and cash equivalents -
  Beginning of Period                                     416,738           258,383
                                                        ---------         ---------
Cash and cash equivalents -
  End of Period                                         $ 302,283         $ 409,117
                                                        =========         =========
</TABLE>

                        See Notes to Financial Statements

                                       5
<PAGE>

                         DIAPULSE CORPORATION OF AMERICA
                              STATEMENTS OF INCOME
                                    UNAUDITED
<TABLE>
<CAPTION>
                                                                    NINE MONTHS ENDED
                                                                       SEPTEMBER 30
                                                               ----------------------------
                                                                  2001              2000
                                                               ----------        ----------

<S>                                                            <C>               <C>
Net Sales and rentals                                          $1,312,562        $1,542,088

Cost of sales and rentals                                          61,595            60,740
                                                               ----------        ----------

          Gross Margin                                          1,250,967         1,481,348


Operating Expenses:
  Selling, general and administrative                           1,027,586           869,081
  Interest expense (principally to related parties)               172,576            57,525
                                                               ----------        ----------

          Total Operating Expenses                              1,200,162           926,606
                                                               ----------        ----------

         Net Operating Income (Loss)                               50,805           554,742
Interest and other income                                          11,291            25,465
                                                               ----------        ----------

          Income before Provision for Income Taxes                 62,096           580,207
Provision for Income Taxes                                         28,830            91,080
                                                               ----------        ----------
          Net Income                                           $   33,266        $  489,127
                                                               ==========        ==========

          Basic Earnings Per Share                             $     0.01        $     0.12
                                                               ==========        ==========

          Weighted Average Number of Common
          Shares Outstanding                                    3,960,730         3,960,730
                                                               ==========        ==========
</TABLE>



                        See Notes to Financial Statements

                                       6

<PAGE>

                         DAPULSE CORPORATION OF AMERICA
                          NOTES TO FINANCIAL STATEMENTS

1.       BASIS OF PRESENTATION

         The balance sheets of Diapulse Corporation of America as of September
30, 2001, and the related statements of income and cash flows for the nine
months ended September 30, 2001 and 2000 have been prepared by the Company
without audit. In the opinion of management, all adjustments necessary to
present fairly the financial position, results of operations and changes in cash
flows for the nine months ended September 30, 2001and 2000 and for all periods
presented have been made. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been omitted. It is suggested that these financial
statements be read in conjunction with the financial statements and notes
thereto included in the Company's December 31, 2000 annual report to
shareholders. There have been no changes of significant accounting policies
since December 31, 2000. Results of operations for the nine month period ended
are not necessarily indicative of the results that may be expected for the year
ending December 31, 2001.


2.  INCOME TAXES

         The Company accounts for income taxes under the asset and liability
method.

3.  INVENTORIES

         Inventories as of September 30, 2001 and December 31, 2000 consisted of
the following:

                                           Sept. 30          December. 31
                                             2001                2000
                                           --------            --------
Parts, components and subassemblies        $ 11,248            $      0
Finished goods                               10,487              15,467
                                           --------            --------
    Total Inventory                        $ 21,735            $ 15,467
                                           --------            --------

4.  PROVISION FOR BAD DEBTS

         Recent rejections by an ALJ of substantial Medicare claims has forced
         management to provide additional reserves for doubtful accounts. The
         Company has requested a review and is currently appealing the
         rejections.



                                       7

<PAGE>
                         DIAPULSE CORPORATION OF AMERICA
                           PART II - OTHER INFORMATION
              For the Nine Months Ended September 30, 2001 and 2000


RESULTS OF OPERATIONS

         Net sales for the current nine months decreased by $229,526 to $
1,312,562 from last year's comparable nine month period of $1,542,088. This was
due primarily to increased reserves set up for Medicare doubtful accounts.

         Operating expenses for the current nine months increased to $1,200,162
from last year's comparable nine month period of $926,606. This was due
primarily to a reserve for doubtful accounts set up in the second quarter.

LIQUIDITY AND CAPITAL RESOURCES

         As of September 30, 2001, the Company had working capital of $261,137
and a current ratio of 1.42 to 1. This represents an increase in working capital
since December 31, 2000 of $51,639.

         The Company intends to fund its future operations, pursue research and
development of current and future products and expand operations through product
rental and sales.

IMPACT OF INFLATION

         Although the Company has not attempted to calculate the effect of
inflation, management does not believe inflation has had a material effect on
its results of operations. Material increases in costs and expenses in the
future could have a significant impact on the Company's operating results to the
extent that the effect of such increases cannot be transferred to its customers.

FORWARD-LOOKING INFORMATION

         The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for certain forward-looking statements made by the Company in its
disclosures to the public. There is certain information contained herein in the
Company's press releases and in oral statements made by authorized officers of
the Company which are forward-looking statements, as defined by such Act. When
used herein, in the Company's press releases and in such oral statements, the
words "estimate", "project", "anticipate", "expect", "intend", "believe",
"plans", and similar expressions are intended to identify forward-looking
statements. Because such forward-looking statements involve risks and
uncertainties, there are important factors that could cause actual results to
differ materially from those expressed or implied by such forward-looking
statements



                                       8

<PAGE>

                         DIAPULSE CORPORATION OF AMERICA
                           PART II - OTHER INFORMATION
                  For the Nine Months Ended September 30, 2001

ITEM 1.  LEGAL PROCEEDINGS

The Company was involved as plaintiff in litigation filed in August 1994,
alleging deceptive acts and practices, false advertising, unfair competition,
breach of fiduciary duty under New York Law and under Federal Law. The complaint
demands damages in an unspecified amount for compensatory, punitive and treble
damages, profits and attorneys' fees.

In early 2000, a settlement agreement was reached whereby all claims against the
Company were dismissed with prejudice, and the defendant agreed to pay the
Company the sum of $50,000 with interest rate of 9% per year, in 30 level
monthly installment payments of $1,867.41. The agreement further provided that
in the event of failure to make the installment payments when due, the entire
balance would immediately become due and payable, and the Company would be
entitled to enter a judgement for the balance. The agreement also provides for
the defendants to refrain from engaging in certain marketing practices in the
future. The defendant failed to make the required payments due since January
2001. A Summary Judgement has been entered with the Court to recover the unpaid
balance. As of September 30, 2001, the summary judgement is still pending.

A former employee sued the Company in 1997 for certain unpaid deferred salary. A
settlement was reached in the sum of $95,000, whereby the Company agreed to pay
the former employee seven (7) installments of $13,571 payable every six months
beginning March 2000. The first four payments have been made, and the balance
due him is $40,714 as of this date.

A former employee of the Company , who was terminated in May 1999, filed five
small claim actions against the Company and other employees and an
officer-shareholder of the Company . Each action seeks $3,000 in damages. The
former employee's son also filed one small claim action against the Company and
an employee and an officer-shareholder of the Company. Most of the cases allege
various employment contract and/or labor violations; some allege liability for
property allegedly held or used by the Company. All actions were instituted
after the employee was terminated from employment . It is the opinion of counsel
that the actions filed by the former employee and his son are either meritless
or frivolous. The action is now on the nonjury trial calendar for 2001.




                                       9

<PAGE>

                         DIAPULSE CORPORATION OF AMERICA
                           PART II - OTHER INFORMATION
                  For the Nine Months Ended September 30, 2001


An independent sales representative of the Company sued the Company for an
amount in excess of $75,000 pursuant to a Commission Sales Agreement. The
Company denies that it owes the former independent sales representative this
amount and asserts that the former independent sales representative claims must
be arbitrated pursuant to the agreement. A Motion for arbitration has been
accepted and an arbitration date is set for November, 2001.












                                       10

<PAGE>


ITEM 2.  CHANGES IN SECURITIES

None


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.


ITEM 5.  OTHER INFORMATION

Not applicable.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)  Exhibits Filed:  None

         (b)  Reports on Form 8-K:  None.





                                       11

<PAGE>

                                   SIGNATURES

Pursuant to the requirements of Section 11 or 15 (d) 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.



                                            DIAPULSE CORPORATION OF AMERICA

                                                     Registrant



                                            By   /s/   Jesse Ross
                                                ---------------------------
                                                    Jesse Ross, President


                                            Date:   November 9, 2001






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