U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

[]  Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of
    1934 For the quarterly period ended June 30, 2001

Commission File Number 33-6859-D

                                ZEON Corporation
                        --------------------------------
             (Exact name of registrant as specified in its charter)


        Colorado                                      84-0827610
--------------------------------                 ----------------------
(State or other jurisdiction of                      (I.R.S. Employer
 incorporation or organization)                 Identification Number)

 1500 Cherry Street           Louisville, CO      80027
-----------------------------------------------------------------
(Address of principal executive offices)      (Zip Code)

        (303) 666-9400
-----------------------------------------------------------------
(Registrant's telephone number including area code)

-----------------------------------------------------------------
(Former  name,  former  address  and former  fiscal  year if changed  since last
reported)


Check  whether the issuer (1) filed all reports  required to be filed by Section
12, 13 or 15(d) of the Securities Exchange Act of 1934 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      [ ] No

Number of shares of Common Stock Outstanding at June 30, 2001

                  Common Stock, No Par Value                 344,363
                  -------------------------------  ------------------------
                            (Class)                     (Number of Shares)

Transitional Small Business Disclosure Format (check one):
[ ]Yes      [] No



                                       1
<PAGE>


                                ZEON Corporation
                                      INDEX



                                                                      Page
                                                                      ----
Part I - Financial Information

Balance Sheet June 30, 2001 and December 31, 2000                       3

Statement of Operations - Three Months Ended
                  June 30, 2001 and 2000                                5

Statement of Operations - Six Months Ended
                  June 30, 2001 and 2000                                6

Statements of Cash Flows - Six Months Ended
              June 30, 2001 and 2000                                    7

Notes to Financial Statements                                           8

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

Part II - Other Information                                            13

Signature Page                                                         14





                                       2
<PAGE>



                         Part I - Financial Information


Item 1. Financial Statements

                         ZEON Corporation
                          BALANCE SHEETS
                            (UNAUDITED)

                                               June 30, 2001       Dec.31,2000
                                              ---------------  ----------------

  CURRENT ASSETS
  Cash                                           $ 226,008       $ 134,478
  Trade Receivables, Net of Allowance
           for Doubtful Accounts                   936,315         717,161
  Inventories                                      578,823       1,022,963
  Prepaid Inventory                                    -0-         106,648
  Prepaid Expenses and Other                       116,207         147,373
                                                  --------        --------

           TOTAL CURRENT ASSETS                  1,857,353       2,128,623


  Property and Equipment (net of
           accumulated depreciation and
           amortization)                           153,088         149,257
  Other                                             37,256          26,649
                                                   -------         -------

           TOTAL NON-CURRENT ASSETS                190,344         175,906


           TOTAL ASSETS                       $  2,047,697     $ 2,304,529
           ------------                        -----------      ----------




                                       3
<PAGE>







                                ZEON Corporation
                           BALANCE SHEETS (Continued)
                                   (UNAUDITED)
                                                June 30,2001         Dec.31,2000
                                                -----------          -----------


CURRENT LIABILITIES
Accounts Payable                                      $ 279,813        $ 648,181
Accrued Expenses                                        322,993          188,514
Customer Deposits                                        39,497           15,450
Line of Credit                                          147,845          344,211
Current Portion of Long-Term Debt                        20,967           20,967
                                                        -------          -------
         TOTAL CURRENT LIABILITIES                      811,115        1,217,323

Long-Term Debt (net of current
         portion)                                        53,911           64,406
                                                        -------          -------

         TOTAL LIABILITIES                              865,026        1,281,729
                                                      ---------        ---------

Shareholders Equity:
Common stock, no par, $.10 stated
value; authorized 100,000,000;
issued 344,363 and 344,523
June 30, 2001 and December 31, 2000                      34,433           34,452

Capital in Excess of Stated Value                       925,287          925,747
Retained Earnings                                       222,951           62,601
                                                        -------          -------

         TOTAL SHAREHOLDERS EQUITY                    1,182,671        1,022,800
                                                      ---------        ---------

TOTAL LIABILITIES AND
         SHAREHOLDERS EQUITY                        $ 2,047,697      $ 2,304,529
                                                    -----------      -----------



                                       4
<PAGE>




                                ZEON Corporation
                             STATEMENT OF OPERATIONS
                                   (UNAUDITED)

                                     Three Months Ended   Three Months Ended
                                      June 30, 2001         June 30, 2000
                                      -------------         -------------

Net Sales                               $ 2,158,352        $ 1,468,174
Cost of Sales                             1,529,114          1,137,126
                                          ---------          ---------

Gross Profit                                629,238            331,048

Operating Expenses:
         Selling                             38,543            145,856
         General                            324,826            169,088
         Research & Development              48,791             57,755
                                            -------            -------
                                            512,160            372,699
                                            -------            -------

Income (Loss) From Operations               117,078            (41,651)

Other Income (Expenses):
         Interest Expense                   (15,885)           (10,541)
     Interest Income                            794                905
         Other Income (Expenses)                -0-             10,081
                                            -------            -------
                                            (15,091)               445

Income Taxes                                 40,678                -0-
                                            -------            -------

Net Income (Loss)                         $  61,309           $(41,206)
                                          ---------           --------





Basic and Diluted
Earning per share:
  Net Income (Loss)                       $     .18          $  (.12)
Weighted Average Common                   ---------          ---------
  Shares Outstanding                        344,520            346,000





                                       5
<PAGE>




                                ZEON Corporation
                             STATEMENT OF OPERATIONS
                                   (UNAUDITED)

                                             Six Months Ended  Six Months Ended
                                               June 30, 2001     June 30, 2000

Net Sales                                      $ 4,310,387        $ 2,524,238
Cost of Sales                                    3,137,966          1,847,873
                                                 ---------          ---------

Gross Profit                                     1,172,421            676,365

Operating Expenses:
         Selling                                   329,986            238,612
         General                                   460,390            295,327
         Research & Development                    101,732            106,185
                                                   -------            -------
                                                   892,108            640,124
                                                   -------            -------

Income From Operations                             280,313             36,241

Other Income (Expenses):
         Interest Expense                          (32,676)           (15,805)
     Interest Income                                 1,297                943
         Other Income (Expenses)                       -0-             20,281
                                                   -------            -------
                                                   (31,379)             5,419

Income Taxes                                        88,584                -0-
                                                   -------           --------

Net Income                                       $ 160,350          $  41,660
                                                 ---------          ---------





Basic and Diluted
Earning per share:
  Net Income                                     $     .47          $     .12
                                                 ---------          ---------
Weighted Average Common
  Shares Outstanding                               344,520            346,000


                                       6
<PAGE>


                                ZEON Corporation
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                        Six Months Ended   Six Months Ended
                                                          June 30, 2001     June 30, 2000
                                                         ---------------   -----------------
  Cash Flows From Operating Activities:
<S>                                                           <C>            <C>
     Net Income                                               $   160,350    $    41,660
     Adjustments to Reconcile Net Income
     to Net Cash Provided By (Used
     In) Operating Activities:
           Depreciation & Amortization                             23,108         12,630
           Provisions for Losses on
             Accounts Receivable                                    9,000          6,500
Change in Operating Assets & Liabilities:
           Decrease (Increase) in Accts Receivable(228,154)      (395,629)
           Decrease (Increase) in Inventory                       444,140       (363,167)
           Decrease (Increase) in Prepaid Assets                  137,814        101,849
       Increase (Decrease) in Accts Payable                      (368,368)       (44,100)
       Increase (Decrease) in Customer Deposits 24,047            525,075
       Increase (Decrease) in Accrued Expenses 134,479            (45,455)
                                                              -----------    -----------
  TOTAL ADJUSTMENTS:                                              176,066       (202,297)

  Net Cash Provided By (Used In) Operating
    Activities:                                                   336,416       (160,637)

  Cash Flows From Investing Activities:
    Purchase of Capital Assets                                    (37,545)       (36,418)
                                                              -----------    -----------

  Net Cash Provided by (Used In) Investing
    Activities:                                                   (37,545)       (36,418)

  Cash Flows From Financing Activities:
        Purchase of Common Stock                                     (480)          (402)
        Proceeds from Equipment Loan                                  -0-         76,790
           Loan Payments                                          (10,495)        (6,286)
       Proceeds from Line of Credit                             1,708,167      1,202,039
           Line of Credit Payments                             (1,904,533)      (603,886)
                                                              -----------    -----------

  Net Cash Provided By (Used In) Financing
    Activities:                                                  (207,341)       668,255

  Net Increase (Decrease) In Cash:                                 91,530        471,200

  Cash At Beginning of Period:                                    134,478        145,521

  Cash At End of Period:                                      $   226,008    $   616,721
                                                              -----------    -----------
</TABLE>


                                       7
<PAGE>

                                ZEON Corporation
                          NOTES TO FINANCIAL STATEMENTS

1.       Summary of significant accounting policies:

         The financial  statements  included  herein are presented in accordance
         with the  requirements  of Form 10-QSB and  consequently do not include
         all of the disclosures  normally made in the  registrant's  annual Form
         10-KSB filing. These financial statements should be read in conjunction
         with the  financial  statements  and  notes  thereto  included  in ZEON
         Corporation's Annual Report and Form 10-KSB filed on March 26, 2001 for
         the fiscal year 2000.

         In the  opinion  of  management,  the  unaudited  financial  statements
         reflect all  adjustments  of a normal  recurring  nature  necessary  to
         present  a  fair  statement  of  the  results  of  operations  for  the
         respective interim periods. The year-end balance sheet data was derived
         from audited financial statements, but does not include all disclosures
         required by generally accepted accounting principles.

2.       Inventories:

         Inventories consist of the following:

                                      June 30,          December 31,
                                         2001              2000
                                      -------             --------
                  Finished Goods    $ 462,514          $   855,879
                  Work-in-process      14,246               13,007
                  Raw Materials       102,063              154,077
                                      -------              -------
                                    $ 578,823          $ 1,022,963
                                     --------            ---------

3.       Notes payable and long-term debt:

         The Company has a line-of-credit/letter-of-credit  commitments from its
         bank for borrowings of up to $2,000,000, with interest on any borrowing
         at 1% above the  bank's  reference  rate to be paid  monthly.  The loan
         commitments,  if exercised,  are  collateralized by trade  receivables,
         inventories, property and equipment and intangibles. Under the terms of
         the agreement,  the Company is subject to certain  restrictions,  which
         include,  among other things,  restrictions  on borrowings and dividend
         payments. At June 30, 2001 and December 31, 2000, $147,845 and $344,211
         were outstanding under the line of credit agreements, respectively.


                                       8
<PAGE>



                                ZEON Corporation
                          NOTES TO FINANCIAL STATEMENTS


         A Company vehicle was purchased and financed with a $36,000 loan. Terms
         of the debt are five years and an 8 1/4% interest rate.

         Newly  acquired  equipment  was  financed  in March 2000 with a $76,790
         loan.  Terms of the debt are five  years  and an  interest  rate at the
         bank's reference rate plus 1%.

4.       Commitments and related party transactions:

         The Company leases its primary manufacturing and office facilities from
         an entity in which the Company's president is a 50% partner.  The lease
         requires monthly payments of approximately $17,520 and expires February
         2010 with an option for one five-year  renewal  period.  The Company is
         responsible for maintenance and operating costs.



                                       9
<PAGE>

Item 2.

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS:

Factors That May Affect Operating Results

The statements  contained in this Form 10-QSB that are not purely historical are
forward  looking  statements  within the  meaning of  federal  securities  laws,
including statements regarding the Company's expectations,  hopes, intentions or
strategies regarding the future. All forward looking statements included in this
document are based on  information  available to the Company on the date hereof,
and the  Company  assumes  no  obligation  to update  any such  forward  looking
statements.  It is important to note that the  Company's  actual  results  could
differ materially from those in such forward-looking statements.

Financial Condition:

The liquidity of ZEON Corporation remains adequate,  with a current ratio of 2.3
to 1 as of June 30, 2001,  and 1.8 to 1 as of December  31,  2000.  With a sales
increase  of 71% over last  year's  first six  months,  trade  receivables  have
increased  by  $228,154.  During the first half of 2001,  the  Company  borrowed
$1,708,167 and repaid  $1,904,533 from its line of credit (LOC). The LOC is used
primarily  for  funding  payments to the  Company's  oversea  suppliers  who are
instrumental in supplying for the additional business.  The net reduction in LOC
came from funds from  operations,  including the collection of  receivables  and
concurrent  inventory reduction  (Inventory was reduced by $444,140 or 43% since
year-end in a planned effort to improve inventory management and turns.) Capital
expenditures  of $37,545  were  incurred  to enhance  the  Company  website  and
production tooling. Liquidity from on-going operations and the Company's line of
credit is considered adequate to meet the Company's immediate cash requirements.

Results of Operations:

Results of operations for the Three months ending June 30, 2001 and 2000
------------------------------------------------------------------------

                                            THREE MONTHS ENDED JUNE 30,
                                        2001                          2000
                                      --------                       --------

                  Sales:              $ 2,158,352                $ 1,468,174
                 Income (Loss):            61,309                    (41,206)


                                       10
<PAGE>


                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS:


With the sales  increase of 47% over 2000's second quarter and higher margins on
certain of the increased sales, gross profit percentage  increased 6.7 points to
29.2%. The 2001 second quarter additional sales primarily from beverage business
and resulting higher margin more than offset the additional building costs. (The
Company  expanded into additional  facilities in early second quarter of 2000 to
accommodate  the  additional  sales  volume.)  Operating  expenses  increased by
$139,500 over last year's second quarter.

Selling  Expense  decreased from $145,900 to $138,500 from 2000's second quarter
to 2001's second quarter. The primary contributors to this decrease were reduced
customer  service  costs  (43%)  and less  commissions  (57%) on the  additional
business.

Current second quarter General and  Administrative  Expenses  increased $156,000
over the same period last year. Salary changes and incentive accruals ($183,000)
were partially offset by a reduction in consulting expense  ($27,000).  In 2000,
consulting  was  incurred  to  address  special   information  and  coordination
requirements of the additional beverage business segment.

Research and  Development  Expense  declined  from  $57,800  last year's  second
quarter to $48,800  for  second  quarter  2001.  Lower  prototype  costs and the
absence of (2000) hiring costs of graphic designer accounted for the decrease.


Results of operations for the Six months ending June 30, 2001 and 2000
----------------------------------------------------------------------

                                    SIX MONTHS ENDED JUNE 30,

                                 2001                  2000
                              --------                 --------

                  Sales:       $4,310,387             $2,524,238
                  Income:         160,350                 41,660

Sales  for 2001  first  half  rose 71% from  2000's  first  half.  Gross  profit
increased  slightly to 27.2% for 2001 first half.  With slightly  higher margins
for the additional volume,  the fixed costs related to expanded  facilities were
more than offset.



                                       11
<PAGE>



                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS:

Selling  expenses  increased  by 38% percent  over first half 2000.  The $91,400
increase   resulted  from  commissions  on  additional   beverage  business  and
convention related costs.

General and  Administrative  expenses  increased  $165,000 over same period last
year.  The 2001  additional  expenses of salary  changes and incentive  accruals
($188,000)  were partially  offset by the absence of consulting  costs ($23,000)
that had been incurred in 2000.

Research  and  development  decreased by $4,000.  Last year's  hiring costs of a
graphic designer were not incurred in 2001.



                                       12
<PAGE>


             PART II-OTHER INFORMATION

Item 4.  Submission of matters to a vote of Security-Holders

         None.

Item 5.  Other information

         The Company will have its annual shareholders' meeting on September 7,
2001.

Item 6.  Exhibits and Reports on Form 8-K

         Part A.  None

         Part B. No reports on Form 8-K have been filed for the quarter ended
June 30, 2001.



                                       13
<PAGE>


                                   SIGNATURES


Pursuant to the requirements 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.




Date:        August 14, 2001                  /s/ T. Bryan Alu
             ---------------                 ------------------------
                                             T. Bryan Alu
                                             President



                                             /s/  R.G. Routt
                                             ------------------------
                                             R. G. Routt
                                             Corporate Controller




                                       14