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                                       1

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

                          FORM 10-QSB

[x]  Quarterly Report Under Section 13 or 15(d) of the Securities Exchange  Act
of 1934
    For the quarterly period ended September 30, 1999

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.

                                   [x] Yes      [ ] No

Number of shares of Common Stock Outstanding at September 30, 1999

          Common Stock, No Par Value             348,665
                    (Class)               (Number of Shares)

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



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                        ZEON Corporation
                             INDEX



                                                            Page

Part I - Financial Information

Balance Sheet September 30, 1999 and December 31, 1998        3

Statement of Operations - Three Months Ended
          September 30, 1999 and 1998                         5

Statement of Operations - Nine Months Ended
          September 30, 1999 and 1998                         6

Statements of Cash Flows - Nine Months Ended
          September 30, 1999 and 1998                         7

Notes to Financial Statements                                 8

Management's Discussion and Analysis of Financial
     Condition and Results of Operations                     11
Part II - Other Information                                  13

Signature Page                                               14

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<TABLE>

                             ZEON Corporation
                              BALANCE SHEETS


                                        Sept.30, 1999       December 31, 1998
                                        (unaudited)
    <S>                                  <C>                 <C>
    CURRENT ASSETS
    Cash                                 $ 135,434           $  169,891
    Trade Receivables, Net of Allowance
     for Doubtful Accounts                  413,525             363,608
    Inventories                             261,427             224,326
    Prepaid Expenses and Other               26,732              62,480

     TOTAL CURRENT ASSETS                   837,118             820,305


    Property and Equipment (net of
     accumulated depreciation and
     amortization)                          157,774             173,390
    Other                                    40,108              25,806

     TOTAL NON-CURRENT ASSETS               197,882             199,196


     TOTAL ASSETS                       $ 1,035,000         $ 1,019,501
                                         -----------         ----------


</TABLE>
<PAGE>
<TABLE>
                             ZEON Corporation
                        BALANCE SHEETS (Continued)

                                        Sept.30, 1999  December 31, 1998
                                          (unaudited)
<S>                                     <C>                     <C>

CURRENT LIABILITIES
Accounts Payable                         $ 117,537              $ 95,910
Accrued Expenses                            57,383                65,835
Line of Credit                              21,700                  -0-
Current Portion of Long-Term Debt            6,528                 6,528
     TOTAL CURRENT LIABILITIES             203,148               168,273

Long-Term Debt (net of current
     portion)                               20,305                24,596

     TOTAL LIABILITIES                     223,453               192,869

Shareholders Equity:
Common stock, no par, $.10 stated
value; authorized 100,000,000;
issued 348,665 and 349,137
September 30, 1999 and December 31, 1998    34,862                34,913

Capital in Excess of Stated Value          936,776               938,297
Deficit                                   (160,091)             (146,578)

     TOTAL SHAREHOLDERS EQUITY             811,547               826,632

TOTAL LIABILITIES AND
     SHAREHOLDERS EQUITY               $ 1,035,000           $ 1,019,501
                                        -----------           -----------
</TABLE>
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<TABLE>


                             ZEON Corporation
                         STATEMENT OF OPERATIONS
                               (UNAUDITED)

                        Three Months Ended   Three Months Ended
                        September 30, 1999   September 30, 1998
<S>                         <C>                  <C>
Net Sales                   $   791,243          $ 645,813
Cost of Sales                   570,516            436,250

Gross Profit                    220,727            209,563

Operating Expenses:
  Selling                        91,631             83,207
  General                       115,702            124,385
  Research & Development         37,477             36,414


                                244,810            244,006

Income (Loss) From Operations   (24,083)           (34,443)


Other Income (Expenses):
     Interest Expense            (1,673)             1,689
     Interest Income                724               (924)
     Other Income (Expenses)      8,672              7,684
                                  7,723              6,919

Income Taxes                         92

Net(Loss)                      $(16,452)          $(27,524)
                               ---------          ---------


Earning per share:
  Net (Loss)                   $   (.05)          $   (.08)
                               ---------          ---------
Weighted Average Common
  Shares Outstanding             348,901           349,182


</TABLE>
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<TABLE>


                             ZEON Corporation
                         STATEMENT OF OPERATIONS
                               (UNAUDITED)

                       Nine Months Ended    Nine Months Ended
                       September 30, 1999   September 30, 1998
<S>                         <C>                <C>
Net Sales                   $ 2,200,843        $ 2,210,736
Cost of Sales                 1,549,416          1,465,506

Gross Profit                    651,427            745,230

Operating Expenses:
     Selling                    245,056            229,990
     General                    336,515            330,725
     Research & Development     109,794            104,392


                                691,365            665,107

Income (Loss) From Operations   (39,938)            80,123


Other Income (Expenses):
     Interest Expense            (3,207)            (1,731)
     Interest Income              3,031              2,585
     Other Income (Expenses)     27,313             30,066
                                 27,137             30,920

Income Taxes                        712                -0-

Net (Loss) Income            $  (13,513)          $ 111,043
                               ---------          ---------


Earning per share:
      Net (Loss) Income      $     (.04)          $     .32
                               ---------          ---------
Weighted Average Common
   Shares Outstanding            348,901            349,182


</TABLE>
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<TABLE>


                             ZEON Corporation
                         STATEMENTS OF CASH FLOWS
                               (UNAUDITED)

                                      Nine Months Ended   Nine Months Ended
                                     September 30, 1999    September 30, 1998
  <S>                                    <C>                 <C>
  Cash Flows From Operating Activities:
      Net  Income (Loss)                 $ (13,513)           $ 111,043
  Adjustments to Reconcile Net Income
     to Net Cash Provided By (Used
     In) Operating Activities:
    Depreciation & Amortization             27,136                30,295
    Provisions for Losses on
      Accounts Receivable                    6,750                 8,000
     Gain  from  the  Sale of Assets           -0-                (6,000)
  Change in Operating Assets & Liabilities:
    Decrease (Increase) in Accts Receivable(56,667)              (34,584)
    Decrease (Increase) in Inventory       (37,101)               27,225
    Decrease (Increase) in Prepaid Assets   35,748               (13,621)
       Increase (Decrease) in Accts Payable (3,994)              (28,438)
       Increase (Decrease) in Accrued Exps  17,169               (12,503)
  TOTAL ADJUSTMENTS:                       (10,959)              (29,626)

  Net Cash Provided By (Used In) Operating
    Activity:                              (24,472)               81,417

  Cash Flows From Investing Activities:
     Proceeds from sale of Fixed Assets      1,300                 6,000
     Purchase of Capital Assets            (27,122)              (65,866)

  Net Cash Provided by (Used In) Investing
    Activities:                            (25,822)              (59,866)

  Cash Flows From Financing Activities:
     Purchase of Common Stock               (1,572)                 (137)
     Debt for Capital Purchases                -0-                 6,169
     Proceeds from Line of Credit           72,000                   -0-
     Payments on line of Credit            (50,300)                  -0-
     Net Increase (Decrease) of
       Long-term Debt                       (4,291)               (3,495)

  Net Cash Provided By (Used In) Financing
    Activities:                             15,837                32,537

  Net Increase (Decrease) In Cash:         (34,457)               54,088

  Cash At Beginning of Period:             169,891               181,533

  Cash At End of Period:                 $ 135,434             $ 235,621
                                          ---------             ---------

</TABLE>
<PAGE>


                              ZEON Corporation
                       NOTES TO FINANCIAL STATEMENTS

1.   Summary of significant accounting policies:

     Inventories:
     Inventories are valued at the lower of cost or market.  Cost is determined
     at standard, which approximates first-in, first-out.

     Property, Equipment and Depreciation:
     Property  and  equipment  are  stated at cost.   For  financial  reporting
     purposes,  depreciation is calculated using the straight-line method  over
     the  related assets estimated useful lives, which approximates five years.
     For  income  tax  reporting  purposes, depreciation  is  calculated  using
     accelerated methods.

     Revenue Recognition:
     Sales are recorded in the periods that product is shipped.

     Taxes on Income:
     The  Company follows the provisions of Statement of Financial  Accounting
     Standards No.109 - Accounting for Income Taxes (SFAS No.109).  Under SFAS
     No.  109 the Company's policy is to provide deferred income taxes related
     primarily  to  depreciation and other items that  result  in  differences
     between the financial reporting and tax basis of assets and liabilities.

     Earnings (Loss) Per Share:
     Income  (loss) per common share is computed on the basis of the  weighted
     average  number  of common shares outstanding during  each  period.   The
     average number of shares outstanding was 348,901 and 349,182 during  each
     of the  periods  ended  September  30,  1999  and  December  31,  1998,
     respectively.

     Reclassifications:
     Certain  reclassifications have been made to the  accompanying  financial
     statements for comparative purposes.

2.   Inventories:

     Inventories consist of the following:

                                             September 30,  December 31,
                                                1999           1998
          Finished Goods                     $ 129,956      $  60,891
          Work-in-process                        7,798         19,017
          Raw Materials                        123,673        144,418
                                             $ 261,427      $ 224,326
                                              ---------      ---------


<PAGE>


                               ZEON Corporation
                 NOTES TO FINANCIAL STATEMENTS (CONTINUED)

3.   Notes payable and long-term debt:

     The  Company has a line-of-credit commitment from its bank for borrowings
     of  up to $100,000, with interest on any borrowing at 1% above the bank's
     reference rate to be paid monthly.  The loan commitment, if exercised, is
     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 September 30,  1999
     and  December 31, 1998, $21,700 and $ -0- amounts were outstanding  under
     the line of credit agreements, respectively.

     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.

4.   Commitments and related party transactions:

     In  December  1992,  the  Company entered  into  an  operating  lease  to
     consolidate its primary manufacturing and office facilities.  The property
     is leased through January 2003 from a partnership in which T.Bryan Alu,
     President and Chief Executive Officer of the Company, is a partner.  The
     lease contains an option to renew for two additional five-year periods and
     requires monthly payments of approximately $8,000 with the Company also
     responsible for maintenance and operating costs.

     The Company has an operating lease agreement with an unrelated party for
     additional manufacturing facilities which requires monthly  payments  of
     approximately $6,100 through December 31, 2000 including renewal options.
     The  Company  entered into a sublease agreement for this  space  with  an
     unrelated party through December 31, 2000 for an initial monthly rent  of
     $9,700 and increasing at 5% per year.

     On April 29, 1995, The board of directors of the Company adopted the ZEON
     Corporation Stock Option Plan (the "Plan").  The Plan was approved by the
     stockholders at the Company's annual shareholders' meeting held on June 21,
     1995.   The Plan allows the board of directors of the Company to grant
     both incentive stock options and options which do not qualify as
     incentive stock options to employees and directors of the Company.  Thirty-
     five thousand (35,000) shares of the Company's common stock are available
     for the grant of options pursuant to the Plan.  The exercise price for each
     incentive stock option granted shall be no less than 100% of the fair
     market value (110% of the fair market value for employees owning more
     than 10% of the Company's common stock) of the common stock on the day
     the option is granted.  The exercise price for each non-qualified stock
     option granted under the Plan will be the price established by the board
     of directors which normally is expected to be no less than 100% of the fair
     market value on the date the option is granted.  A total of 27,000  non-
     qualified options have been granted under the plan for officers and
     employees of the Company, which vest ratably over six years based on the
     Company achieving certain predetermined financial targets each fiscal year
     end.  These options were granted on February 27, 1998,at an exercise
     price of $2.00 per share.  In February 1999, 9,000 of these options had
     been terminated because certain predetermined financial targets were not
     met.

<PAGE>

                         ZEON Corporation
                 NOTES TO FINANCIAL STATEMENTS (CONTINUED)


      SFAS  No.  123, "Accounting for Stock-Based Compensation", requires  the
      Company to provide pro forma information regarding net income (loss)
      and net earnings (loss) per share as if compensation costs for the
      Company's stock option plans and other stock awards had been determined
      in accordance with fair value based method prescribed in SFAS No. 123.
      The Company estimates the fair value of each stock award by using the
      Black-Scholes option-pricing model with the following weighted-average
      assumptions used for grants in 1998: no expected dividend yields for
      all years; expected volatility of 1.0%; risk-free interest rates of 5.0%;
      and expected lives of three years.  The fair value of the options granted
      during the year ended December  31, 1998 was approximately $.28 per
      option.

      Effective  July  1991 the Company adopted a directors' compensation  plan
      to allow for the compensation of directors with restricted common stock of
      the Company in exchange for services provided.  Shares issued are valued
      based upon the market value of the stock as determined by the Company.  As
      of September 30, 1999, no shares had been issued under this plan.

5.   Income Taxes:

      Final  payment  of income taxes for 1998 was $10,200 versus  the  $6,200
      provided in the December 31, 1998 financials.  The difference of $4,000
      was recorded in 1999 as a prior year adjustment.

<PAGE>

                  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
4.1  to  1  as  of September 30, 1999, and 4.9 to 1 as of December  31,  1998.
While 1999's first nine months' sales approximated sales for same period  last
year,   collection  experiences  and  inventory  turnover  declined  slightly.
Inventory  levels  have increased by $37,000 to address the Company's  growing
backlog.   Capital  expenditures  were $26,000  for  manufacturing  equipment.
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 September 30, 1999 and 1998

                                THREE MONTHS ENDED SEPTEMBER 30,

                                 1999                  1998

          Sales:             $ 791,243             $ 645,813
          Income:              (16,452)              (27,524)


Orders  received for the quarter were $764,000 or $137,000 greater than  third
quarter  1998.  Although sales increased 22% over 1998's third quarter,  gross
profit percentage fell 4.5 points to 27.9%.  Significant product mix (2.9) and
higher  production  costs  (2.6)  accounted for  the  gross  profit  decrease.
Operating expenses increased by $1,000 over last year's third quarter.

Selling Expense increased from $83,000 to $91,000 from 1998's third quarter to
1999's   third  quarter.   All  of  this  increase  resulted  from  additional
convention and related travel expenses.

Current third quarter General and Administrative Expenses dropped by $8,000 to
$116,000  over  same  period last year. The decrease was salary  office  staff
reduction.

Research   and   Development   Expense  increase   approximately   $1,000   to
approximately $37,000, primarily as a result of salary adjustments.

<PAGE>

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



Results of operations for the Nine months ending September 30, 1999 and 1998

                                 NINE MONTHS ENDED SEPTEMBER 30,

                                 1999                       1998

          Sales:            $2,200,843            $2,210,736
          Income:              (13,513)              111,043


Sales for 1999 first nine months decreased by $10,000 from 1998's same period.
Despite  the Company having a soft year-end backlog for 1998, orders  for  the
first  nine  months  of 1999 were $2,2383,000 or 14% over  1998's  first  nine
months.  However, turnover in production assembly and capacity issues hampered
shipments in the 1999's first half.  Sales are recognized at the time of
shipment.  Shipments were hampered primarily due to the attrition of
production employees and the resulting loss of efficiency while training
replacement personnel.  Production capacities are expected to improve in the
beginning of the fourth quarter of 1999, as a result of improved efficiencies
of new production employees and the use of contract production sources.

Gross  profit  margin, as a percentage of sales in the first  nine  months  of
1999,  was  30% or down 4.1 points from 1998's first nine months.  This  point
drop was due to lower volume/product mix (1.7  points), additional
manufacturing manager/staff payroll (1.8), and significant non-recurring
freight(.6).  Gross profit fell $94,000.  Increased production capacities and
absence of non-recurring significant freight expense are expected to have a
positive impact on gross profit margins beginning in the fourth quarter.  While
the product mix is trending toward higher volume/lower margin accounts, the
gross profit percentageis anticipated to decline; however, the overall gross
margin dollars are expected to improve.

Selling expenses increased by 6.5 percent over first nine months of 1998.  The
$15,000 increase resulted from convention and related travel expenses.

General and Administrative expenses increased by $16,000 over same period last
year.  The additional expenses were salaries related to reinstatement of  full
time  Controller  and  the hiring of a manufacturing  manager  mid-1998.   The
increase was partially offset by reduced office staff. (In the first  half  of
1998, the Controller's salary was partially allocated to production costs.)

Research  and  development  increased by  $5,000  primarily  in  salaries  and
prototype supplies.


<PAGE>


                    PART II-OTHER INFORMATION

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

      The Company had its annual shareholders' meeting on July 30, 1999.  The
      following sets forth the matters acted upon at such meeting and the voting
      results with respect to each matter:

                                        For       Withheld
          1.) Election of Directors
                    T. Bryan Alu        284,285        77
                    Alan M. Bloom       284,285        77
                    Jay R. Beyer        284,285        77

Item 5.  Other information

     The Company recently was named as the national supplier of neon and other
     related illuminated signs for Heineken USA Inc. by the Ryan Partnership.
     The Ryan Partnership designs and coordinates the purchasing of Heineken's
     point of purchase merchandise program.  The exact annual value of the
     Heineken account is contractually confidential and subject to periodic
     adjustments and may be terminated by either party given short-term notice.
     However, historical annual volumes exceed $1,000,000-  potentially
     making this the Company's largest account.  Shipments to Heineken's
     distributors will begin in late 1999 or early 2000.

Item 6.  Exhibits and Reports on Form 8-K

     Part A.   None

     Part B.   Form  8-K  dated August 19,1999 was filed noting a change  in
               registrant's certifying accountant firm.  BDO Seidman,  the
               former  certifying accountant firm, was notified on August 19,
               1999 that their services were no longer required.

               Another form 8-K dated August 19, 1999 was filed noting the
               engagement of Hein + Associates to perform the registrant's
               audit services.


<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:  November   15,   1999                   /s/   T. Bryan  Alu
                                                   T. Bryan Alu
                                                   President



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