U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-QSB

(Mark One)
{X}       Quarterly Report under Section 13 or 15(d) of the Securities  Exchange
          Act of 1934.

For the Quarterly Period ended June 30, 1999

{ }       Transition  Report  pursuant to Section 13 or 15(d) of the  Securities
          Exchange Act

For the Transition Period from __________ to __________

Commission file Number  0-14266

                      POLLUTION RESEARCH AND CONTROL CORP.
                      ------------------------------------
        (Exact Name of Small Business Issuer as Specified in its Charter)

         California                                       95-2746949
         ----------                                       ----------
(State or other jurisdiction of                           (IRS Employer
incorporation or organization)                            Identification Number)

                  506 Paula Avenue, Glendale, California 91201
                  --------------------------------------------
                    (Address of Principal Executive Offices)

                                 (818) 247-7601
                                 --------------
                (Issuer's telephone number, including area code)

Check whether the Small Business Issuer (1) has filed all reports required to be
filed by  Section  13 or 15(d) of the  Exchange  Act of 1934  during the past 12
months (or such  shorter  period that the  registrant  was required to file such
reports),  and (2) has been subject to such filing  requirements  of 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                       Date            No. of Shares Outstanding
         -----                       ----            -------------------------
         Common                 August 10, 1999              3,726,770

Traditional Small Business Disclosure Format (check one):
YES   X           No ___

                                        1
<PAGE>

                      POLLUTION RESEARCH AND CONTROL CORP.
                                   Form 10-QSB
                  For the Six-Month Period Ended June 30, 1999


                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

Part I  Financial Information

     Item 1.   Financial Statements:

               Consolidated Balance Sheet                                     3
               Consolidated Statements of Operations                          5
               Consolidated Statement of Shareholders Equity                  7
               Consolidated Statement  of Cash Flows                          8
               Notes to Financial Statements                                  9

     Item 2.   Management's Discussion and Analysis of Financial
               Condition and Results of Operations                           10

Part II  Other Information                                                   13

     Item 1    Legal Proceedings
     Item 6(b) Reports on Form 8-K                                           13

                                        2

<PAGE>

                         PART 1 - FINANCIAL INFORMATION
                          Item 1. FINANCIAL STATEMENTS
                           CONSOLIDATED BALANCE SHEET
                                     ASSETS
                                   (Unaudited)

                                                                         As Of
                                                                       06/30/99
                                                                       --------
CURRENT ASSETS

         Cash                                                         $  147,452

         Accounts receivable, trade, less allowance for doubtful       2,207,520
         accounts of $4,734

         Inventories (Note 2)                                          1,587,900

         Other current assets                                             14,319
                                                                      ----------

         TOTAL CURRENT ASSETS                                          3,957,191
                                                                      ----------

PROPERTY, EQUIPMENT AND LEASEHOLD
IMPROVEMENTS, less accumulated depreciation of $196,428                   99,046
                                                                      ----------

OTHER ASSETS

         Advances to joint venture                                       203,938

         Technical service center                                        600,000

         Other intangible assets                                          75,176

         Other assets                                                     12,140
                                                                      ----------

TOTAL OTHER ASSETS                                                       891,254
                                                                      ----------

TOTAL ASSETS                                                          $4,947,491
                                                                      ==========


See notes to financial statements

                                        3
<PAGE>

                           CONSOLIDATED BALANCE SHEET
                      LIABILITIES AND SHAREHOLDERS' EQUITY
                                   (Unaudited)

                                                                        As of
                                                                       6/30/99
                                                                       -------
CURRENT LIABILITIES

         Notes payable                                              $   892,177

         Accounts payable                                               319,886

         Accrued expenses (Note 3)                                      496,303
                                                                    -----------

TOTAL CURRENT LIABILITIES                                             1,708,366
                                                                    -----------


DEFERRED RENT                                                            50,869
                                                                    -----------

LONG TERM DEBT                                                          300,000
                                                                    -----------

SHAREHOLDERS' EQUITY : (Note 4)

         Preferred Stock, no par value; 20,000,000
             shares authorized, none issued and outstanding
         Common Stock, no par value; 30,000,000 shares
            authorized,  3,726,770 issued and outstanding             7,311,520
         Other paid in capital                                          952,081
         Accumulated deficit                                         (5,375,345)
                                                                    -----------


         TOTAL SHAREHOLDERS' EQUITY                                 $ 2,888,256
                                                                    -----------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                          $ 4,947,491
                                                                    ===========


See notes to financial statements

                                        4
<PAGE>
<TABLE>
<CAPTION>

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                                               Three Months
                                                              Ended June 30,
                                                            -------------------
                                                            1999           1998
                                                            ----           ----
<S>                                                     <C>            <C>
Net Revenues                                            $2 ,292,976    $   652,887

Cost of goods sold                                        1,166,147        578,585
                                                        -----------    -----------
         Gross profit                                     1,126,829         74,302
                                                        -----------    -----------

Operating expenses:
         Selling, general and administrative expenses       426,007        313,924
         Research and development                             4,230          8,168
                                                        -----------    -----------
                  Total operating expenses                  430,237        322,092
                                                        -----------    -----------
         Income (loss)  from operations                     696,592       (247,790)

Other Income (Expense)
         Interest Expense                                  (134,381)        (9,530)
         Other income (expense)                            (109,000)            10
                                                        -----------    -----------

Income (loss) from continuing operations
         Before Income Taxes                                453,211       (257,310)
Provision for income taxes                                     --             --
                                                        -----------    -----------

Income (loss) from continuing operations                    453,211       (257,310)

Discontinued operations (Note 5)
         Income (loss) from discontinued operations            --          (84,844)
         Loss on disposal                                      --         (668,989)
                                                        -----------    -----------
                                                               --         (753,833)
                                                        -----------    -----------

Net Income                                              $   453,211    $(1,011,143)
                                                        ===========    ===========

Earnings per share
         Net Income (loss) per share - basic
                  Continuing operations                 $       .13    $      (.12)
                                                        ===========    ===========
                  Discontinued operations               $      --      $      (.35)
                                                        ===========    ===========
         Net Income (loss) per share - diluted
                  Continuing operations                 $       .12    $      (.12)
                                                        ===========    ===========
                  Discontinued operations               $      --      $      (.35)
                                                        ===========    ===========
Weighted Average Shares
         Basic                                            3,467,881      2,169,711
                                                        ===========    ===========
         Diluted                                          3,834,931      2,169,711
                                                        ===========    ===========


See notes to financial statements

                                        5
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                                                 Six Months
                                                               Ended June 30,
                                                            -------------------
                                                            1999           1998
                                                            ----           ----
<S>                                                     <C>            <C>
Net Revenues                                            $2 ,941,897    $ 1,229,918

Cost of goods sold                                        1,708,922        794,683
                                                        -----------    -----------
         Gross profit                                     1,232,975        435,235
                                                        -----------    -----------

Operating expenses:
         Selling, general and administrative expenses       754,674        676,190
         Research and development                             5,710          9,128
                                                        -----------    -----------
                  Total operating expenses                  760,384        685,318
                                                        -----------    -----------
         Income (loss)  from operations                     472,591       (250,083)

Other Income (Expense)
         Interest Expense                                  (160,482)       (11,944)
         Other income (expense)                            (101,000)            39
                                                        -----------    -----------

Income (loss) from continuing operations
         Before Income Taxes                                211,109       (261,988)
Provision for income taxes                                     --             --
                                                        -----------    -----------

Income (loss) from continuing operations                    211,109       (261,988)

Discontinued operations (Note 5)
         Income (loss) from discontinued operations            --         (111,262)
         Loss on disposal                                      --         (514,414)
                                                        -----------    -----------
                                                               --         (625,676)
                                                        -----------    -----------

Net Income                                              $   211,109    $  (887,664)
                                                        ===========    ===========

Earnings per share
         Net Income (loss) per share - basic
                  Continuing operations                 $       .06    $      (.12)
                                                        ===========    ===========
                  Discontinued operations               $      --      $      (.29)
                                                        ===========    ===========
         Net Income (loss) per share - diluted
                  Continuing operations                 $       .06    $      (.12)
                                                        ===========    ===========
                  Discontinued operations               $      --      $      (.29)
                                                        ===========    ===========

Weighted Average Shares
         Basic                                            3,302,587      2,169,711
                                                        ===========    ===========
         Diluted                                          3,621,177      2,169,711
                                                        ===========    ===========

See notes to financial statements

                                        6
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                                       POLLUTION RESEARCH AND CONTROL CORP. AND SUBSIDIARIES
                                          CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                                              For the Six Months Ended June 30, 1999


                                                                                                Other                      Total
                 Series A Preferred Stock  Series B Preferred Stock     Common Stock           Paid In    Accumulated  Shareholders'
                    Shares     Amount         Shares     Amount       Shares      Amount       Capital      Deficit       Equity
                    ------     ------         ------     ------       ------      ------       -------      -------       ------
<S>                 <C>      <C>            <C>      <C>            <C>        <C>           <C>          <C>           <C>
BALANCE
12/31/98            220,000  $     2,200    450,000  $     4,500    2,368,439  $ 6,704,195   $   928,831  $(5,586,454)  $ 2,053,272

Issuance of
warrants with
note payable                                                                                      13,250                     13,250

Issuance of
common
stock &
warrants under
compromise
agreement                                                             100,000      175,000        10,000                    185,000

Conversion of
Series A and
Series B
preferred stock
to common
stock              (220,000)      (2,200)  (450,000)      (4,500)     670,000        6,700

Issuance of
common
stock net
of issuance
costs of
$45,625                                                               588,331      425,625                                  425,625


Net Income for
the six
months                 --           --         --           --           --           --            --        211,109       211,109
                -----------  -----------  ---------  -----------  -----------  -----------   -----------  -----------   -----------

Balance
June 30,1999            -0-          -0-        -0-          -0-    3,726,770  $ 7,311,520   $   952,081  $(5,375,345)  $ 2,888,256
                ===========  ===========  =========  ===========  ===========  ===========   ===========  ===========   ===========



See notes to financial statements

                                        7
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                                            Six Months
                                                                          Ended June 30
                                                                       -------------------
                                                                       1999           1998
                                                                       ----           ----
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                <C>            <C>
Net Income (Loss)                                                  $   211,109    $  (887,664)
Adjustments to reconcile net income to net cash
         used for operating activities:
         Loss on disposal of subsidiary                                   --          514,415
         Losses on disposed subsidiary                                    --           26,418
         Depreciation and amortization                                  44,032         75,500
         Deferred rent                                                  15,746         18,745
    Changes in operating assets and liabilities:
         Accounts receivable, trade, net                            (1,910,487)      (142,184)
         Inventories                                                    39,255        244,587
         Other current assets                                             (240)         7,436
         Other assets                                                  (12,140)           987
         Accounts payable                                               63,194         (7,765)
         Accrued liabilities                                           254,626        (61,977)
         Unearned revenue                                                 --         (143,695)
                                                                   -----------    -----------
Net cash used for operating activities                              (1,294,905)      (355,197)
                                                                   -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
         Loan fees                                                     (60,000)          --
         Acquisition of property, equipment and leasehold
             improvements                                                 --           (1,922)
                                                                   -----------    -----------
         Net cash used for investing activities                        (60,000)        (1,922)
                                                                   -----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
         Proceeds from private placements of stock                     425,625        362,070

         Advances on notes payable and line of credit                  599,177        (70,000)
         Increase in amount due under Nutek settlement agreement       118,604       (104,086)
         Borrowings under long-term debt                               300,000           --
         Advances to related parties                                    (5,000)       (30,082)
                                                                   -----------    -----------
         Net cash provided by financing activities                   1,438,406        157,902
                                                                   -----------    -----------
NET INCREASE (DECREASE) IN CASH                                         83,501       (199,217)
CASH AT BEGINNING OF PERIOD                                             63,951        514,895
                                                                   -----------    -----------
CASH AT END OF PERIOD                                              $   147,452    $   315,678
                                                                   ===========    ===========
Supplemental Disclosure:
         Cash paid for:
                                    Interest                       $    36,712    $    27,782
                                    Taxes                          $      --      $      --



See notes to financial statements

                                        8
</TABLE>
<PAGE>

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

1. Basis of Presentation
------------------------

The information  furnished herein reflects all  adjustments,  consisting only of
normal recurring adjustments, which are, in the opinion of management, necessary
to a fair  presentation  of the financial  statements for the period  presented.
Interim results are not necessarily indicative of results for a full year.

The  financial  statements  should  be read in  conjunction  with the  financial
statements  and notes thereto  included in the  Company's  annual report on Form
10-KSB for the year ended December 31, 1998.

2. Inventories:
---------------

Inventories at June 30, 1999 consisted of the following:

                         Raw Materials      $  821,890
                         Work-in-Progress      414,227
                         Finished Goods        351,783
                                            ----------
                                            $1,587,900
                                            ==========


3. Accrued Expenses:
--------------------

Accrued expenses at June 30 , 1999 consisted of the following:

             Accrued facility fees under China Contract   $225,000
             Accrued payroll and related taxes             209,548
             Accrued vacation                               25,013
             Current portion of deferred rent               23,012
             Other                                          13,730
                                                          --------
                                                          $496,303
                                                          ========


4. Shareholders' Equity:
------------------------

During the second quarter of 1999, the Company received $229,500, net of $25,500
of issuance  costs,  from the issuance of 300,000 shares of common stock under a
private placement.

During the first quarter of 1999, the Company received $196,125,  net of $20,125
of issuance  costs,  from the issuance of 288,331 shares of common stock under a
private  placement.  As  part  of the  private  placement,  the  Company  issued
three-year  warrants  to  purchase  288,331  shares of common  stock at $.75 per
share.

During the first  quarter of 1999 all of the  holders of the Series A & Series B
preferred  stock  converted  their  shares to 670,000  shares of common stock in
accordance with the original conversion terms.

5. Discontinued Operations:
---------------------------

In April, 1998 and February, 1998 the Company discontinued the operations of two
of its subsidiaries, Nutek, Inc. and Logan Research Limited.

                                        9

<PAGE>


6. Long Term Debt:
------------------

During  the  first  quarter  of 1999,  the  Company  borrowed  $100,000  under a
four-month  note,  bearing  interest at 11% per annum. In conjunction  with this
loan, the Company issued the note holder three-year  warrants to purchase 48,000
shares of common stock at $.75 per share.  The Company paid loan fees of $10,000
plus warrants to purchase an additional 5,000 shares of common stock at $.75 per
share. This note was subsequently increased to $300,000 with interest at 12% per
annum and is due in June, 2000.

7. Notes Payable:
-----------------

In June,  1999 the Company entered into a compromise  settlement  agreement with
Fidelity Federal,  the major secured lender of Nutek. Under this agreement,  the
Company  agreed to repay $468,000  through  issuance of 100,000 shares of common
stock  (valued at $1.75 per share on date of  issuance)  and payment on December
26, 1999 of the  remaining  balance due,  including  interest  accruing from the
settlement  date at 12% per annum.  The  Company is  required  to  register  the
100,000  shares and sell them on behalf of Fidelity  Federal.  The net  proceeds
from the sale of these shares will be used to reduce the balance  owed  Fidelity
Federal under the settlement agreement. In addition, the Company issued warrants
to purchase  20,000  shares of the  Company's  common stock at $.75 per share to
Fidelity Federal as an inducement to enter into this settlement agreement.

On May  28,  1999  the  Company  entered  into an 18%  subordinated  convertible
debenture  agreement  for  $500,000  due  December  1, 1999.  The  debenture  is
convertible  into the  Company's  common  stock at any time at the option of the
holder.  The  conversion  price is the lesser of 80% of the market  price of the
common stock on the date of conversion or 115% of the market price of the common
stock on May 28, 1999. As part of this agreement, the Company agreed to to repay
$101,000 received from the debenture holder in 1998 that was previously reported
as income in 1998. In addition,  the Company paid $50,000 and issued warrants to
purchase 105,000 shares of the Company's common stock at $1.50 per share as loan
fees.

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULT OF OPERATIONS

General
-------

The Company designs,  manufactures and markets automated  continuous  monitoring
instruments  used to detect and measure  various types of air pollution  through
its wholly-owned subsidiary, Dasibi Environmental Corp.

The Company experienced  operating losses during the three quarters ending March
31,  1999 as it geared up  operations  to  manufacture  and ship  product to the
People's  Republic  of China  pursuant  to a  contract  signed in June 1998 (The
"China  Contract").  The Company  shipped  the first such  product in June 1999,
however,complete  performance  under  the China  Contract  is  dependent  on the
Company obtaining additional financing.  If such financing is not obtained,  the
Company may not be able to perform under such  contract  which,  in turn,  could
adversely impact the Company's business.

The  Company's  future  operating  results  also may be  affected by a number of
important  factors,  including:  but not  limited to  uncertainties  relative to
global economic  conditions;  industry  factors;  the  availability  and cost of
components; the Company's ability to develop,  manufacture and sell its products
profitably;  the Company's ability to successfully  increase its market share in
its core business  while  expanding its products  base into other  markets;  the
strength of its distribution  channels, and the Company's ability to effectively
manage expense growth  relative to revenue growth in  anticipation  of continued
pressure on gross margins.

                                       10

<PAGE>


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

Three Months Ended June 30, 1999, versus Three Months Ended June 30, 1998
-------------------------------------------------------------------------

Net revenues  increased 251% from $652,887  during the second quarter of 1998 to
$2,292,976  during the second quarter of 1999. The increase was primarily due to
shipment  of the first  product  under the China  Contract  which  substantially
exceeded domestic and other international shipments.

Gross  profit  margin was 49% for the second  quarter of 1999 versus 11% for the
second  quarter of 1998,  primarily  because of  negotiated,  fair product sales
prices allowed until the terms of the China contract. The higher margin has been
considered normal for the Company's business.

Selling,  general and administrative  expenses increased $112,083, or 35% during
the second quarter of 1999, versus the same period in 1998, principally due to a
larger  workforce  required  to  perform  the  increased  manufacturing  demands
required by the China contract.

As a result of the foregoing factors,  net operating income increased from a net
operating  loss of  ($257,310)  during the three months ended June 30, 1998 to a
net operating income of $453,211 during the three months ended June 30, 1999.

Six Months Ended June 30, 1999, versus Six Months Ended June 30, 1998
---------------------------------------------------------------------

Net revenues  increased  139% from  $1,229,918  during the first half of 1998 to
$2,941,897  during the first half of 1999.  The  increase was  primarily  due to
product shipment under the China Contract which substantially  exceeded domestic
and other international shipments.

Gross profit  margin was 42% for the first half of 1999 versus 35% for the first
half of 1998,  primarily  because of  negotiated,  fair,  product  sales  prices
allowed  under the  terms of the China  Contract,  based on  historical  Company
margins.

Selling,  general and administrative  expenses increased $78,484,  or 12% during
the first half of 1999,  versus the same  period in 1998,  principally  due to a
larger  workforce  required  to  perform  the  increased  manufacturing  demands
required by the China Contract.

As a result of the foregoing factors,  net operating income increased from a net
operating loss of ($261,988)  during the six months ended June 30, 1998 to a net
operating income of $211,109 during the six months ended June 30, 1999.

Liquidity and Capital Resources
-------------------------------

The  Company  has  historically  financed  its growth  and cash needs  primarily
through borrowings,  and the public and private sales of its securities. The low
market value of the Company's securities and its unstable operating  performance
has severely restricted access to capital.

Net cash used in  operating  activities  in the six months  ended June 30, 1999,
amounted to $1,294,905,  due to the increase in receivables  (primarily from the
shipment of products  to China).  The  Company's  cash level  increased  131% as
compared  to the end of the last  quarter  of 1998,  primarily  due to a private
placement of common stock amounting to $425,000 and additional borrowings of net
$953,000 resulting in a net increase of $83,500.

                                       11

<PAGE>



Working capital was $2,248,825 at June 30, 1999.

The Company has no material  commitments for capital expenditures as of June 30,
1999. The Company believes it will be able to meet its current  obligations with
funds generated from operations during the next twelve months, however, expanded
operations will require  additional working capital to be provided by additional
financing.

Inflation
---------

The  Company  believes  that  inflation  has not had a  material  impact  on its
business.

Seasonality
-----------

The Company does not believe that its business is seasonal.

Year 2000 Compliance
--------------------

General. The Company believes it has completed all internal efforts to avoid the
adverse effects of the Year 2000 issue.

State of Readiness.  The Company received  certifications of compliance from all
vendors deemed material to its business  operations  during the first quarter of
1999.

Contingency  Plans.  The Company  believes it should not rely  completely on key
vendor  compliance  certification.  Therefore costs are being incurred to enable
the Company to utilize  alternative  design procedures to allow alternate vendor
supply.  These design  changes are on-going and the costs are not expected to be
material.

Risks.  The  Company   presently  does  not  anticipate  any  material  business
disruption  will occur as a result of Year 2000 issues.  The greatest  potential
risk appears to be with federal, state and local governments.



                                       12
<PAGE>



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

ITEM 1. LEGAL PROCEEDINGS

None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     (a)  Not applicable

     (b)  The  Company  did not file any  reports  on Form 8-K  during the three
          months ended June 30 , 1999.


                                       13

<PAGE>


                                   Signatures


In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                                         POLLUTION RESEARCH AND CONTROL CORP.
                                         ------------------------------------
                                                    (Registrant)


Date: August 10, 1999                    By: /s/ Albert E. Gosselin, Jr
---------------------                    ------------------------------
                                         Albert E. Gosselin, Jr., President and
                                         Chief Executive Officer


Date: August 10, 1999                    By: /s/ Donald Ford
---------------------                    -------------------
                                         Donald Ford
                                         Chief Financial Officer




                                       14