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

AND EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2001

[X]	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from                     to

Commission file no. 0-15303

UNICO, INC.

(Name of Small Business Issuer In Its Charter)

Delaware						73-1215433

(State of Other Jurisdiction				       (I.R.S. Employer

of Incorporation)						Identification No.)

24 Lakeside Avenue, Pompton Lakes, NJ			07442

(Address of Principal Executive Offices)			(Zip Code)

(973) 248-1177

(Issuer's Telephone Number, Including Area Code)

Check whether the issue: (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 practical date: As of November 21, 2001 the company had 16, 005,496 shares of common
stock outstanding, $0.01 par value.

UNICO, INC.

Form 10-QSB

Quarterly Report

For the Period Ended September 30, 2001

**TABLE OF CONTENTS**

PART I

ITEM 1. 	Financial Statements. 								2-4

ITEM 2.	Managements' Discussion and Analysis. 					   6

PART II

ITEM 1.	Legal Proceedings.								   8

ITEM 2.	Changes in Securities. 							   8

ITEM 3.	Defaults Upon Senior Securities.						   8

ITEM 4.	Submission of Matters to a Vote of Security Holders.			   8

ITEM 5. 	Other Information.								   8

ITEM 6.	Exhibits and Reports on Form 8-K.						   8

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

**UNICO, INC. AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET**

**AS OF SEPTEMBER 30, 2001**

**ASSETS**

Current assets

Cash and cash equivalents							$       -

Accounts and notes receivables							43,241

Total current assets								43,241

Fixed assets

Equipment - net									59,649

Total fixed assets								59,649

Other assets

Goodwill										61,572

Gas, oil and mineral lease								40,000

All other assets									-

Total other assets								$101,572

Total assets									$204,462

**LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)**

Current liabilities

Accounts payable									$   408,768

Other short term debt								     295,758

Due on Independent News acquisition						  156,000

Total current liabilities							  860,526

Long-term liabilities

Due to shareholders								     253,742

Accrual for litigation								  960,000

Total long-term liabilities							  1,213,742

Total liabilities								  2,074,268

Stockholders' equity (deficiency)

Common stock, $.01 par value, 20,000,000 shares

authorized, 16,005,496 shares issued and outstanding

at September 30, 2001								     160,055

Additional paid-in capital								  7,587,393

Retained earnings (deficit)								(9,617,254)

Total stockholders' equity (deficiency)					(1,869,806)



Total liabilities and stockholders' equity (deficiency)  			$    204,462

See Accompanying Notes To Financial Statements

**UNICO, INC. AND SUBSIDIARY**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**FOR THE THREE AND NINE MONTHS ENDING SEPTEMBER 30, 2001**

Three Months Ended	     Nine Months Ended

September 30,		          September 30,

2001      2000    	       2001      2000

Revenue

Advertising Income			$   128,175      $   538,000	$   1,167,102      $   538,000

Other Income			  1,792        31,568	  39,314        31,568

Gross Income			     129,967           569,568	     1,206,416           569,568

(Less): cost of production 		   128,274       157,697	  495,470        157,697

- Cross profit			  1,693       411,871 	  710,946        411,871

Expenses

Postage 				        26,675                 -         	        203,552	             -

Selling, general and

administrative expenses		      62,123	  361,342	       678,355	     922,481

Provision for litigation 		           -    	        -      	             -      	           -

Depreciation of equipment		      16,834	        -      	         48,000 	           -

Amortization of goodwill		      16,335	        -      	         28,999 	           -

Write off of goodwill 		843,210	        -	843,210 	           -

Total Expenses 			965,175	   361,342	    1,932,116 	922,481

Income (loss) from operations		   (963,482)	     50,529	  (1,221,170) 	     (510,610)

Provision for income taxes		40	        -       	           1,045 -

Net Income (loss) from operations	   (963,522)	     50,529	  (1,222,215) 	     (510,610)

Extraordinary items, net of taxes

Income from cancellation of debt	           -    	   245,000	             -      	      245,000

Net income (loss)			$  (963,522)	$ 295,592	$(1,222,415)	$   (285,610)

Basic and dilutive earnings (loss) per share

Income (loss) from

continuing operations		$       (0.06)	$       0.01	$         (0.08)	$         (0.06)

Extraordinary items

income (loss) 			-    	         0.03	             -      	            0.03

Net earnings (loss) per share

outstanding 			$       (0.06)	$0.04	$(0.08)	$(0.03)

Weighted average common shares

Basic and dilutive common

shares				16,005,496	8,777,667	  14,838,829	   8,777,667

See Accompanying Notes To Financial Statements

**UNICO, INC. AND SUBSIDIARY**

**UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 and 2000**

**2001        	        2000**

Cash flows from operating activities

Net income (loss)	 					$(1,222,415)		$(265,611)

Adjustments to reconcile net income to net cash

Provided by operating activities:

Depreciation						         48,200		          -

Amortization						         48,999		          -

Stock issued for services rendered				         70,000		          -

Accounts receivable					             -     		           4,595

Receivable from shareholder				             -     		         35,000

Accounts payable						             -     		       126,609

Accrued expense						             -     		         57,700

Write off of goodwill					       843,210		          -

Changes in assets and liabilities:

(Increase) decrease in accounts receivable, net		       138,705		          -

(Increase) decrease in other assets				         11,779		          -

Increase (decrease) in accounts payable			       114,145		          -

Increase (decrease) in other current liabilities		        (63,391)		          -

Increase (decrease) in due on Independent

News Acq.					-		-

Net cash provided (used) by operating activities		(10,768)		(41,707)

Cash flows from investing activities

Disposal (purchase) of computer equipment			18,540		          (74,637)

Net cash provided (used) by investing activities		18,540		          (74,637)

Cash flows from financing activities

Increase (decrease) in bank over draft			        (21,331)		          -

Increase (decrease) due to shareholder			         13,431		          -

Loan from shareholder					              -     		         112,842

Capital stock						              -     		           36,218

Proceeds from sale of stock and additional capital		              -     		          (41,557)

Proceeds from note payable				              -     		         200,000

Payment of note payable					-		(215,732)

Net cash provided (used) by financing activities		(7,900)		91,771

(Decrease) increase in cash and cash equivalents				 (128)		          (24,573)

Cash and cash equivalents-beginning of period			128 		           32,429

Cash and cash equivalents-end of period				$             -     		$              386

Supplemental cash flows disclosure

Cash paid for interest					$             -     		$          -

Non Cash items

Stock issued for services rendered				$       70,000 		$          -

Acquisition of investment in Independent News		              -     		        1,060,000

Goodwill						              -     		           986,681

See Accompanying Notes to Financial Statements

**UNICO, INC. AND SUBSIDIARIES**

**NOTES TO UNAUDITED INTERIM CONDENSED**

**FINANCIAL STATEMENTS**

**FOR THE PERIODS ENDED SEPTEMBER 30, 2001**

**NOTE 1** - BASIS OF PRESENTATION

The interim financial statements at September 30, 2001, and for the three and nine month
periods ended September 30, 2001 and 2000 are unaudited, but include all adjustments which the
Company considers necessary for a fair presentation.

The accompanying unaudited financial statements are for the interim periods and do not
include all disclosures normally provided in annual financial statements, and should be read in
conjunction with the Company's Form 10-KSB for the year ended December 31, 2000.  The
accompanying unaudited interim financial statements for the three and nine month periods ended
September 30, 2001 are not necessarily indicative of the results which can be expected for the
entire year.

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States pf America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period.
Actual result could differ from those estimates.

**NOTE 2** - CEASED OPERATIONS

On August 10, 2001, The Independent News ceased operations as an independent
newspaper, which was the most significant portion of its business.  Certain debts and assets were
either lost or canceled and the significant and the significant portion of goodwill became of no
value.  These amounts are all reflected in the unaudited financial statements.  This ceasing of
operations is reported in these unaudited financial statements as ongoing operations rather than as
discontinued operations.  Management is focusing on the operations of its other subsidiary,
TheLocalTimes.

**ITEM 2.	MANAGEMENT DISCUSSION AND ANALYSIS**

On July 1, 2000, the Company acquired all of the issued and outstanding stock of The
Independent News, Inc. for its common stock and other consideration.  The Independent News is
a freely distributed, independent newspaper servicing various communities in Northern New
Jersey.  Prior to that time, the Company was a publicly traded "shell" company.

The newspaper publishes several weekly editions in its region and two monthly editions.  The
weekly editions have a circulation of approximately 70,000 while the monthly circulation is
approximately 40,000.  The newspaper contains news content and advertisements for local
business establishments along with classified advertisements.  Revenues primarily come from
Advertising display advertisements (82%), classified advertisements (12%), and inserts sales and
other commissions (5%).

However, on August 10, 2001 The Independent News ceased operations and closed its doors.  In
the financial statements the reporting of The Independent News is reported as regular ongoing
operations and not as discontinued operations because management believes some of its
operations will continue, the extent of which is pending.

The year 2000 had no revenue through June 30, 2000.  Revenues were not generated until the
Company acquired The Independent News on July 1, 2000 and virtually stopped 13 months later
on August 2, 2001.  Consequently, income and expenses are not comparable between 2001 and
2000.  No reasonable analysis between periods are made by management as the financial
statements are not comparable between quarters.

Prior to the Company's acquisition of The Independent News, NexGen, the shareholder at the
time, advanced approximately $270,000 to the newspaper.  In connection with the acquisition by
the Company, NexGen agreed to convert its receivable from the Independent News into "trade
credits," which essentially entitles NexGen to receive $270,000 of free advertising.  The
Independent News adjusted this liability to an amount which it believes is the cost of providing
the free advertising, resulting in cancellation of debt in the amount of $245,000.

The Company's wholly owned subsidiary TheLocalTimes.com, Inc. has developed
TheLocalTimes.com, a fully integrated database driven web site that places newspaper and its
advertisers on line.  The Company is marketing TheLocalTimes.com to other newspapers without
charging any up-front fees or installation costs, and offers a formula that will increase the
newspapers revenue.  TheLocalTimes.com is collecting a fee based upon the newspapers added
revenue.  The Independent News and the Company have developed a web-site that places
advertisers' advertisements on the Internet permitting The Independent News to charge higher
than normal advertising rates.

The Company plans to vigorously market this product, as it believes that approximately 90% of
the nations 15,000 estimated newspapers in the U.S. should benefit from using TheLocalTimes.com.

Mr. Joe Nicastro is the Publisher of The Independent News and has 15 years in the Newspaper
business.  He is also a Past President of the Independent Free Papers of America, the largest trade
association of free papers in the U.S. and, as such, has numerous contacts in the industry.

The marketing efforts are largely conducted through personal contacts, attending trade shows at
various locations throughout the U.S., distribution of marketing materials, and other personal
approaches.

The Company has signed a definitive agreement to acquire the Merrimack Publisher, a software
company that produces and maintains software that is specific to the publishing industry.  It is the
Company's plan to integrate this software with TheLocalTimes.com and to convert the current
operating environment from its existing DOS based environment to a Windows operating
system.

The Company is actively negotiating a settlement with the prior owners of Silver Valley Energy
due to its acquisition of same and believes that it can reach an amicable non-monetary settlement.

The Company's officers and directors have waived all current payment of cash compensation,
and uses its stock as payment for services provided by outside consultants and advisors.

In addition, the Company is seeking financing from outside sources.

**PART II**

**ITEM 1.****LEGAL PROCEEDINGS**- None

**ITEM 2.	CHANGES IN SECURITIES** - None

**ITEM 3. 	DEFAULTS UPON SENIOR SECURITIES**

NexGen, the seller of The Independent News, is claiming that the Company is in default on its
$200,000 obligation to NexGen because of the Company's failure to pay interest and principle on
the appropriate date.  The Company believes it is not in default, because it has advanced monies
to outside third parties on NexGen's behalf, and that certain misrepresentations were made
concerning financial aspects of The Independent News.

**ITEM 4. 	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**-None

**ITEM 5.	OTHER INFORMATION -**None****

**ITEM 6.	EXHIBITS AND REPORTS ON FORM 8-K** - None

**Signatures**

Pursuant to the requirements of section 13 or 15(d) of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized, on November 23, 2001.

Unico, Inc.

Registrant

/s/ Joe Nicastro

Joe Nicastro

President