SECURITIES & EXCHANGE COMMISSION
                             WASHINGTON, D.C., 20459


                                    FORM 10-Q
                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999

                            COMMISSION FILE # 1-06855


                            WORKSAFE INDUSTRIES INC.
             (Exact name of registrant as specified in its charter)

           NEW YORK                                               11-1874010
(State or other jurisdiction of                                (Employer I.D.#)
incorporation or organization)

              130 West 10th Street, Huntington Station, N.Y. 11746
              (Address of principal executive offices and zip code)

                                 (631) 427-1802
                           (Issuer's telephone number)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 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

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.

Class                                        Outstanding at September 31, 1999
Common Stock, par value                               1,686,579
$.12 per share


<PAGE>



                         PART I - FINANCIAL INFORMATION

                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS


                                                    September 30,      June 30,
                                                        1999             1999
                  ASSETS                             (Unaudited)

CURRENT ASSETS:
   Cash and cash equivalents                         $    33,884     $   129,352
   Accounts receivable - (less allowance
     for doubtful accounts of $75,000 at
     September 30, 1999, and $72,500 at
     June 30, 1999)                                    3,450,760       3,485,813

   Inventories                                         6,195,336       4,582,581

   Other current assets                                  633,117         812,868

   Net assets of discontinued operations                 109,998         205,142
                                                     -----------     -----------

     Total current assets                             10,423,095       9,215,756

Property, plant and equipment, net                     2,103,590       2,112,886

Excess of cost over net assets acquired                  397,847         403,547
Other assets                                              67,618          73,832
                                                     -----------     -----------

                  Total assets                       $12,992,150     $11,806,021
                                                     ===========     ===========


See accompanying notes.



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<PAGE>




                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS




                                                  September 30,       June 30,
                                                      1999             1999
                                                  (Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
   Loans payable                                  $  5,995,823     $  5,698,642
   Current maturities of long-term debt                 94,334          151,411
   Accounts payable                                  3,281,431        2,289,220
   Accrued expenses and other liabilities              292,735          226,580
                                                  ------------     ------------

     Total current liabilities                       9,664,323        8,365,853


LONG-TERM DEBT                                         382,099          396,447
                                                  ------------     ------------

     Total liabilities                              10,046,422        8,762,300

SHAREHOLDERS' EQUITY
   Preferred stock, $.01 par value;
     authorized 1,000,000 shares;
     no shares issued and outstanding
   Common stock, $.12 par value;
     authorized 20,000,000 shares;
     issued and outstanding 1,686,579
     shares                                            202,390          202,390

   Additional paid-in capital                        9,844,338        9,844,338
   Accumulated deficit                              (7,101,000)      (7,003,007)
                                                  ------------     ------------

     Total shareholders' equity                      2,945,728        3,043,721
                                                  ------------     ------------

     Total liabilities
      and shareholders' equity                    $ 12,992,150     $ 11,806,021
                                                  ============     ============


See accompanying notes.


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<PAGE>



                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                Three Months Ended September 30,
                                                      1999            1998
                                                  (Unaudited)     (Unaudited)

NET SALES                                         $ 5,787,162     $ 5,667,936

COST OF GOODS SOLD                                  4,798,138       4,780,754
                                                  -----------     -----------

  Gross profit                                        989,024         887,182

SELLING, GENERAL & ADMINISTRATIVE EXPENSES            953,315         799,537
                                                  -----------     -----------

INCOME FROM OPERATIONS                                 35,709          87,645

OTHER INCOME, net                                     (12,127)        (12,651)

INTEREST EXPENSE                                      145,829         130,724
                                                  -----------     -----------

LOSS FROM CONTINUING OPERATIONS                       (97,993)        (30,428)

LOSS FROM DISCONTINUED OPERATIONS                         -0-        (253,395)
                                                  -----------     -----------

  Net loss                                        $   (97,993)    $  (283,823)
                                                  ===========     ===========

BASIC AND DILUTED NET LOSS PER SHARE:

  Loss from continuing operations                 $      (.06)    $      (.02)
  Loss from discontinued operations                       -0-            (.15)
                                                  -----------     -----------
  Net loss                                        $      (.06)    $      (.17)
                                                  ===========     ===========

  Weighted average number of
   common shares outstanding
  Basic and diluted                                 1,686,579       1,683,079
                                                  ===========     ===========



See accompanying notes.


                                       4
<PAGE>



                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                          Three Months Ended
                                                             September 30
                                                          1999           1998
                                                      (Unaudited)    (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss from continuing operations                $   (97,993)   $   (30,428)
  Adjustment to reconcile net loss from
   continuing operations to net cash (used
   in) provided by operating activities:
       Depreciation and amortization                      75,200         60,922
       Provision for losses on accounts receivable           216            600
           Net changes in assets and liabilities:
             Accounts receivable                          34,837        102,784
             Inventories                              (1,612,755)       517,828
             Other current assets                        179,751         88,784
             Other assets                                  6,214          9,367
             Accounts payable                            992,211       (475,630)
             Accrued expenses and other liabilities       66,155        (68,508)
                                                     -----------    -----------
  Net cash (used in) provided by
        operating activities                            (356,164)       205,719
                                                     -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
         Acquisition of property and equipment           (60,204)       (28,400)

CASH FLOWS FROM FINANCING ACTIVITIES:
         Repayments of long-term debt                    (71,425)       (69,102)
         Borrowings under line of credit agreement     6,481,886      8,392,395
         Repayments under line of credit agreement    (6,184,705)    (8,554,983)
                                                     -----------    -----------
Net cash provided by (used in) financing
         activities                                      225,756       (231,690)
                                                     -----------    -----------

Net cash used in continuing operations                  (190,612)       (54,371)
Net cash provided by (used in)
         discontinued operations                          95,144       (110,359)
                                                     -----------    -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS                (95,468)      (164,730)
CASH AND CASH EQUIVALENTS, beginning of period           129,352        223,125
                                                     -----------    -----------
CASH AND CASH EQUIVALENTS, end of period             $    33,884    $    58,395
                                                     ===========    ===========

SUPPLEMENTAL CASH FLOW INFORMATION:
   Cash paid during the period for:
     Interest                                        $   150,483    $   151,223
                                                     ===========    ===========
     Income taxes                                    $     1,405    $     5,680
                                                     ===========    ===========

See accompanying notes.





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<PAGE>



                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation

In the opinion of management,  the accompanying unaudited condensed consolidated
financial  statements of Worksafe Industries Inc. and subsidiaries  ("Worksafe")
contain all adjustments (consisting of only normal recurring accruals) necessary
to present  fairly the  consolidated  balance sheet as of September 30, 1999 and
the related  statements of operations  and cash flows for the three months ended
September 30, 1999 and 1998.

The results of operations for the three months ended September 30, 1999 and 1998
are not necessarily indicative of the results for the entire year.

The summarized  financial  information does not include all disclosures required
to be included in a complete set of financial  statements prepared in conformity
with generally accepted  accounting  principles.  Such disclosures were included
with the  consolidated  financial  statements of Worksafe at June 30, 1999,  and
included in its annual report on Form 10-K.  Such  statements  should be read in
conjunction with the data herein.

2. Inventories

                                    September 30,       June 30,
                                        1999             1999
     Raw material                    $2,036,500       $1,571,734
     Work-in-process                    750,069        1,040,826
     Finished goods                   3,408,767        1,970,021
                                     ----------       ----------
     Total                           $6,195,336       $4,582,581
                                     ==========       ==========


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<PAGE>

3. Litigation

Worksafe is a party to various asbestos  lawsuits alleging damages from exposure
to  asbestos  products  previously  sold by  Worksafe.  Refer to Part II,  Other
Information,  Item I "Legal Proceedings" in this form 10-Q as well as Note 11 to
the June 30, 1999,  Audited  Consolidated  Financial  Statements  regarding  the
asbestos litigation.

4. Net Loss Per Share

In accordance with Statement of Financial Accounting Standards ("SFAS") No. 128,
"Earnings Per Share",  basic  earnings per common share amounts were computed by
dividing  net  earnings  by  the  weighted   average  number  of  common  shares
outstanding, excluding any potential dilution. Diluted earnings per common share
amounts are computed by reflecting potential dilution from the exercise of stock
options.  As there were no dilutive  securities for the quarters ended September
30, 1999 or 1998, no reconciliation is presented herein.

5. Comprehensive Income

SFAS No. 130, "Reporting  Comprehensive Income" requires companies to report all
changes in equity during a period,  except those  resulting  from  investment by
owners and distributions to owners,  in a financial  statement for the period in
which they are recognized.  Comprehensive  income is the total of net income and
all non-owner changes in equity (or other comprehensive  income).  Comprehensive
income must be reported on the face of the annual financial statements or in the
case of interim reporting, in the footnotes to the financial statements. For the
quarters ended September 30, 1999 and 1998,  Worksafe's  operations did not give
rise to items included in  comprehensive  income which were not already included
in net income. Therefore, Worksafe's comprehensive income is the same as its net
income for all periods presented.

6. Discontinued Operations

During  fiscal 1999,  Worksafe  sold certain  assets  (including  inventory  and
certain fixed assets) of its distribution  division to Arbill  Industries,  Inc.
("Arbill").  As a result of this  transaction,  the  operating  results  of this
division have been  classified as discontinued  operations,  with the prior year
restated.

Summarized financial information for the discontinued operation is as follows:

                                      Three Months Ended
                                         September 30,

                                    1999                1998

Net Sales                            --             $2,332,327
Cost of Sales                        --              1,933,964
Gross Profit                         --                398,363
Expenses                             --                651,758
Net Loss                             --             $ (253,395)




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<PAGE>


                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Risks and Other Consideration

From time to time,  information  provided by Worksafe or statements  made by its
employees,  or  information  provided in its  filings  with the  Securities  and
Exchange Commission may contain forward-looking  information. Any statements may
be deemed to be forward-looking statements.  Without limiting the foregoing, the
words "believes", "expects", "anticipates",  "plans" and similar expressions are
intended  to  identify  forward-looking  statements.  Worksafe's  actual  future
results may differ  materially from those projections or statements made in such
forward-looking  information  as a result of  various  risks and  uncertainties,
including, but not limited to, the following:

Worksafe, since its fiscal year ended June 30, 1991 with the exception of fiscal
years 1996 and 1995,  has had a history of significant  losses.  There can be no
assurances  that  Worksafe  will be  profitable  or will not incur losses in the
future.

Worksafe is dependent upon its revolving line of credit with Congress  Financial
Corporation  ("Congress").  In the event that  Worksafe is unable to comply with
its  obligations  to  Congress,   Worksafe's   indebtedness  could  be  declared
immediately  due and payable and in certain  cases  Worksafe's  assets  could be
foreclosed  upon. There can be no assurances that there will be other sources of
financing for Worksafe, if required.

Worksafe is a party to numerous  cases with respect to asbestos  litigation  and
additional  asbestos  actions which continue to be brought  against it. To date,
Worksafe  believes  that its  insurance  coverage  has been  adequate  for those
actions previously terminated, but there can be no assurances that such coverage
will  continue to be adequate in the  future.  There can be no  assurances  that
asbestos litigation will not have an adverse affect upon Worksafe. See Item 1 of
Part II of this Form 10-Q.

Worksafe has  competitors  that have greater  financial,  management,  sales and
technical  resources  than  Worksafe.  Worksafe's  success  also  depends  to  a
significant  degree  on the  contributions  of its key  management.  The loss of
services of one or more key members of management  could have an adverse  affect
upon Worksafe.  Worksafe is also  dependent upon Dupont which supplies  Worksafe
with  Tyvek  (R)  which is used for  various  lines  of  Worksafe's  limited-use
products.  Management  believes  that its  current  relationship  with Dupont is
satisfactory.  Worksafe is a party to a Garment  Manufacturer  & Seller  License
Agreement with Dupont, pursuant to which Dupont provides Worksafe with



                                        8

<PAGE>



nonwoven  fabric  under its  trademark.  This  agreement,  subject to its terms,
continues in effect until January 31, 2000.  Management  expects that based upon
its past  relationship  with Dupont,  although there can be no assurances,  that
this agreement will be extended. Loss of Dupont as a supplier of Tyvek (R) would
have a material  adverse  effect  on  Worksafe's  operations.  Worksafe  is also
required  to  maintain  substantial  inventory  for its  customers  who  require
products on short notice.  There can be no assurances that Worksafe will be able
to maintain  sufficient  inventory or that  Worksafe  will not return to periods
where there is not sufficient  working capital to maintain its inventory to meet
the needs of its customers.

Worksafe also enjoys the benefits of various tax incentives  with respect to its
operations  in Puerto  Rico.  As Puerto  Rico's tax  exemptions  are  reduced or
expire,  Worksafe may be required to pay taxes on income  earned in Puerto Rico.
Worksafe is unable to predict the amount of such  impact  after such  exemptions
are reduced or expire.

Due to the  foregoing,  the  market  price of  Worksafe's  Common  Stock  may be
volatile at times in response to fluctuations of Worksafe's  operating  results,
changes in  analyst  earnings  estimate,  market  conditions  as well as general
conditions and other factors general to Worksafe.

Continuing Operations

Worksafe's  continuing  operations  now consist  entirely  of its  manufacturing
segment  which  produces   limited-use  and  reusable   industrial  apparel  and
protective  knit gloves.  Worksafe  maintains  facilities  for  warehousing  and
production in Puerto Rico, Alabama,  Mexico (a contractor),  Texas,  California,
Louisiana and Minnesota.

The accompanying  financial  statements have been restated to reflect the former
distribution  division as a discontinued  operation and Management's  Discussion
and Analysis addresses only the continuing operations.

Results of Operations

Net sales for the three  months  ended  September  30, 1999 were  $5,787,000  as
compared to  $5,668,000  for the three  months  ended  September  30,  1998,  an
increase  of 2.1%.  This  increase  was due to  increased  levels  of  available
inventory and  additional  sales of more  profitable  items sold along with core
products.

Worksafe's  gross margin increased to 17.1% for the first quarter of fiscal 2000
from 15.7% for the same quarter in fiscal 1999. This increase is also due to the
increased  production  levels in Mexico at lower costs for  products  previously
produced in Alabama and Puerto Rico.

Selling, general and administrative expenses for the quarter ended September 30,
1999 were  $953,000  (or 16.5% of sales) as compared  to  $800,000  (or 14.1% of
sales) for the same period in the prior year. This increase,  both in amount and
as a percentage of sales,  was due to increased  freight rates which took effect
in January 1999, increased  advertising  programs and increased  commissions and
salaries during the period.

Interest  expense was $146,000 for the first quarter of fiscal 2000, an increase
of $15,000 when  compared to the same quarter of fiscal 1999.  This increase was
principally due to higher average borrowings from Congress



                                        9

<PAGE>



Financial Corporation.

Liquidity and Capital Resource

Worksafe  had  working  capital   inclusive  of  net  assets  from  discontinued
operations  as of  September  30, 1999 of $759,000 as compared to $850,000 as of
June 30, 1999. A substantial  portion of Worksafe's  working capital consists of
inventory, which was $6,195,000 and $4,583,000 as of September 30, 1999 and June
30, 1999,  respectively.  The  increase in  inventory at September  30, 1999 was
needed to meet the demands of Worksafe's  customers for continuing  sales growth
opportunities.  Worksafe believes that its current working capital position will
be sufficient to satisfy its needs for the next twelve months.

The amounts  outstanding under Worksafe's loan agreement with Congress Financial
Corporation at September 30 and June 30, 1999,  were  $5,996,000 and $5,699,000,
respectively.  As of  September  30,  1999,  the Company had $29,000  available,
including  additional  borrowings of $175,000  allowed until  December 31, 1999,
based on its formula with Congress.

Net cash used in operating activities was principally a result of an increase in
inventories, which was partially offset by an increase in accounts payable and a
decrease in other current  assets.  Cash flows used in investing  activities was
for the  purchase  of  property,  plant and  equipment.  Cash flows  provided by
financing  activities  were  principally  from  Worksafe's  loan  agreement with
Congress Financial Corporation.

At the present time, Worksafe,  together with a variety of defendants,  is party
to various  asbestos-related  lawsuits involving a number of plaintiffs alleging
damages from exposure to asbestos products  previously sold. Worksafe may become
a party to additional  asbestos-related  actions in the future. Worksafe is also
party to other non-asbestos-related  litigation.  Worksafe cannot, at this time,
determine  the  outcome  of this  uncertainty.  To  date,  Worksafe's  insurance
coverage has been adequate and Worksafe's costs relative to asbestos  litigation
against it has not been material.

Year 2000

The Year 2000 issue  results  from the  inability of some  computer  programs to
identify  the year  2000  properly,  potentially  leading  to  errors  or system
failure.  A company's  business may be  adversely  affected if it, or any of its
suppliers,  customers or other third  parties  with whom it  transacts  business
(including  banks and  governmental  agencies),  have not resolved the Year 2000
issue in a timely manner.

Worksafe's  internal  computing  systems are  primarily  limited to hardware and
software for its financial systems, such as general ledger,  accounts receivable
and accounts payable systems,  and word  processing.  Worksafe  believes that it
could  replace any of its software or systems,  if  necessary,  quickly and at a
reasonable expense.

Worksafe has  completed  its  internal  review with respect to Year 2000 issues.
Worksafe  does not believe  Year 2000 issues,  within its  internal  information
systems,  will  have  a  material  adverse  effect  on the  Company's  business,
financial  condition  or  results  of  operations.  Worksafe  believes  that its
internal computer systems used are currently Year 2000 compliant.

Worksafe has completed its review of the Year 2000 readiness of its customers



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<PAGE>





and vendors and believes,  based upon such review,  that such parties should not
cause a material disruption in the Company's business due to Year 2000 issues.

To date, the cost of the Company's Year 2000  assessment and compliance  efforts
has not been  material to Worksafe's  results of  operations  or liquidity.  The
Company is not aware,  at this time, of any Year 2000  non-compliance  that will
materially affect the Company.


                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

During the quarter ended September 30, 1999  approximately  872 asbestos actions
involving  approximately  2015 plaintiffs were instituted  against  Worksafe and
Puerto Rico  Safety  Equipment  Corporation.  The actions are all pending in the
Supreme Court of the State of New York within the City of New York and involve a
multitude  of  defendants.   They  are  either  actions,  pursuant  to  standard
complaints,  for personal  injury or wrongful  death  setting  forth a number of
causes of action in amounts of up to $10,000,000  for  compensatory  damages and
$10,000,000  for  punitive  damages.  All of the  foregoing  actions  have  been
submitted to Worksafe's and Puerto Rico Safety Equipment Corporation's insurance
carriers  for  defense.  A schedule of these cases is annexed  hereto as Exhibit
99.13.  Reference  is also made to Item 3 of  Worksafe's  Form 10-K for June 30,
1999 regarding asbestos actions against Worksafe and its insurance coverage.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(A)  Exhibits

     99.13     Schedule of asbestos actions filed against the Company and Puerto
               Rico  Safety  Equipment  Corporation  during  the  quarter  ended
               September 30, 1999.




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<PAGE>





                                   SIGNATURES

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

Dated: November 15, 1999

                                        WORKSAFE INDUSTRIES INC.

                                        By: /s/ LAWRENCE DENSEN
                                            -------------------
                                            LAWRENCE DENSEN, PRESIDENT
                                            & CHIEF EXECUTIVE OFFICER

                                        By: /s/ ARTHUR J. WASSERSPRING
                                            --------------------------
                                            ARTHUR J. WASSERSPRING,
                                            VICE PRESIDENT OF FINANCE/
                                            CHIEF FINANCIAL OFFICER



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