SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

     (Mark One)

[ X ]QUARTERLY  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2002

                                       OR

[ ]TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT OF 1934

          From the transition period from ___________ to ____________.

                        Commission File Number 000-31631
                                               ---------


                          PERMA-TUNE ELECTRONICS, INC.
         ---------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

             Texas                                          75-2510791
--------------------------------                --------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)

                 111 SOUTH BIRMINGHAM STEET, WYLIE, TEXAS 75098
                 ----------------------------------------------
                    (Address of principal executive offices)

                                 (972) 442-6774
                                 --------------
                           (Issuer's telephone number)

                                       N/A
               --------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

     Indicate  by check  mark  whether  the  registrant  (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: __
                                 ---

As of August 14,  2002,  2,322,700  shares of Common  Stock of the  issuer  were
outstanding.


<PAGE>

PART I.  FINANCIAL INFORMATION

Item 1:  Financial Statements

                          PERMA-TUNE ELECTRONICS, INC.
                             CONDENSED BALANCE SHEET
<TABLE>

                                                                  June 30,          December 31,
                                                                    2002                2001
                                                              --------------       --------------
                                                                (Unaudited)
<S>                                                           <C>                  <C>

ASSETS

Current assets:
  Cash                                                           $    19,798            $     811
  Accounts receivable                                                 13,553               16,367
  Inventory                                                           36,368               33,813
  Other                                                                  529                  160
                                                             ------------------   -----------------
    Total current assets                                              70,248               51,151

Property and equipment, net                                            4,804                6,486
                                                             ------------------   -----------------
                                                                  $   75,052           $   57,637
                                                             ==================   =================


    LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities:
  Line of credit                                                  $   22,800           $   20,800
  Accounts payable                                                    66,102               39,055
  Accrued expenses                                                     5,806                5,744
  Due to stockholders                                                 40,000               40,000
                                                             ------------------   -----------------
    Total current liabilities                                        134,708              105,599
                                                             ------------------   -----------------

Notes payable - stockholders                                          20,000                    -

Stockholders' equity (deficit):
  Common stock, no par value, 10,000,000 shares
    authorized:  2,312,700 shares issued and outstanding:            263,945              263,945
  Accumulated deficit                                               (343,601)            (311,907)
                                                             ------------------   -----------------
    Total stockholders' equity (deficit)                             (79,656)             (47,962)
                                                             ------------------   -----------------
                                                                  $   75,052           $   57,637
                                                             ==================   =================
</TABLE>



              See accompanying notes to interim condensed financial
                                  statements.


<PAGE>

                          PERMA-TUNE ELECTRONICS, INC.
                        CONDENSED STATEMENT OF OPERATIONS
                                   (Unaudited)
<TABLE>

                                     Three months ended                    Six months ended
                                          June 30,                             June 30,
                                          --------                             --------
                                  2002               2001              2002                2001
                            ------------------  ---------------  -----------------   ------------------
<S>                            <C>                <C>              <C>                 <C>


Net sales                        $   64,538         $  74,023        $  127,101           $   127,342
Cost of goods sold                   28,499            26,501            50,822                52,331
                            ------------------  ---------------  -----------------   ------------------
Gross profit                         36,039           47,522             76,279               75,011

Operating expenses:
  General and administrative         29,212            37,631            65,949                88,027
  Legal and professional             31,074            29,746            36,262                60,036
  Research and development                -             2,951                 -                 4,510
  Depreciation                          841               841             1,682                 1,682
                            ------------------  ---------------  -----------------   ------------------
                                     61,127            71,163           103,893               154,255
                            ------------------  ---------------  -----------------   ------------------

Loss from operations                (25,088)          (23,641)          (27,614)              (79,244)

Other income (expense):
  Other                                   -                 5                 -                 5,006
  Interest expense                   (1,465)           (3,899)           (4,080)               (5,313)
                            ------------------  ---------------  -----------------   ------------------
                                     (1,465)            (3,587)          (4,080)                  (307)
                            ------------------  ---------------  -----------------   ------------------
                                                                 -----------------   ------------------

                            ------------------  ---------------  -----------------   ------------------
Net loss                         $   (26,553)       $  (27,535)      $   (31,694)          $   (79,551)
                            ==================  ===============  =================   ==================

Basic and diluted loss per
common share                          $(0.01)           $(0.01)           $(0.01)               $(0.03)
                            ==================  ===============  =================   ==================

Weighted average shares
outstanding                        2,312,700         2,292,700         2,312,700             2,292,700
                            ==================  ===============  =================   ==================
</TABLE>



              See accompanying notes to interim condensed financial
                                  statements.


<PAGE>

                           PERMA-TUNE ELECTRONIC, INC.
                        CONDENSED STATEMENT OF CASH FLOWS
                                   (Unaudited)


<TABLE>
                                                               Six months ended
                                                                   June 30,
                                                      -----------------------------------
                                                           2002                2001
                                                      ------------         --------------
<S>                                                   <C>                  <C>

Cash flows from operating activities:
  Net loss                                            $   (31,694)        $  (79,551)
    Adjustments to reconcile net income to net cash
      provided by (used in) operating activities:
    Depreciation and amortization                           1,682              1,682
  Changes in operating assets and liabilities
    Accounts receivable                                     2,446            (16,168)
    Inventory                                              (2,556)            17,785
    Prepaid expenses                                            -              3,414
    Accounts payable and accrued expenses                  27,109             39,402
                                                     -------------    ---------------
        Net cash provided by (used in) operating
        activities                                         (3,013)           (33,436)
                                                     -------------    ---------------

Cash flows from investing activities:
                                                     -------------    ---------------
  Capital expenditures                                         -                (244)
                                                     -------------    ---------------

Cash flows from financing activities:
  Proceeds from the sale of stock                              -               5,000
  Proceeds from stockholder advances                      20,000
  Net change in line of credit                             2,000              20,000
                                                     -------------    ---------------
        Net cash provided by financing activities         22,000              25,000
                                                     -------------    ---------------

Net increase (decrease) in cash and cash equivalents      18,987              (8,380)
Cash and cash equivalents at beginning of period             811              11,046
                                                     -------------    ---------------
Cash and cash equivalents at end of period            $   19,798          $    2,666
                                                     =============    ===============

Cash paid for:
  Interest                                            $    3,615          $    5,313

</TABLE>


              See accompanying notes to interim condensed financial
                                  statements.


<PAGE>

                          PERMA-TUNE ELECTRONICS, INC.
                 NOTES TO INTERIM CONDENSED FINANCIAL STATEMENTS
                                  June 30, 2002


Note 1: Presentation

The  condensed  balance  sheet of the Company as of June 30,  2002,  the related
condensed  statements of operations  for the three and six months ended June 30,
2002 and 2001 and the statements of cash flows for the six months ended June 30,
2002 and 2001 included in the condensed financial  statements have been prepared
by the Company  without audit.  In the opinion of management,  the  accompanying
condensed  financial  statements include all adjustments  (consisting of normal,
recurring  adjustments)  necessary to summarize  fairly the Company's  financial
position and results of operations.  The results of operations for the three and
six months ended June 30, 2002 are not necessarily  indicative of the results of
operations  for the full  year or any  other  interim  period.  The  information
included in this Form 10-QSB  should be read in  conjunction  with  Management's
Discussion and Analysis and Financial  Statements and notes thereto  included in
the Perma-Tune Electronics, Inc. December 31, 2001 Form 10-KSB.



<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS

This report contains  forward looking  statements  within the meaning of Section
27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act
of 1934.  These  forward  looking  statements  are subject to certain  risks and
uncertainties  that  could  cause  actual  results  to  differ  materially  from
historical  results or  anticipated  results,  including  those set forth  under
"Factors that may affect future  results" in this  Management's  Discussion  and
Analysis of Financial Condition and Results of Operations" and elsewhere in this
report. The following discussion and analysis should be read in conjunction with
"Selected  Financial  Data" and the  Company's  financial  statements  and notes
thereto included elsewhere in this report.

OVERVIEW

Since its  inception,  the Company has focused on the  production,  research and
development  of Porsche and  Ferrari  high  performance  ignition  systems.  The
Company's  principal  source of revenue has been from the Porsche  repair  parts
product  line.  In 1997 the Company  began  development  of new product lines to
supply many repair and performance  parts for a variety of cars and trucks.  The
Company cannot estimate the size of its marketplace.

The  Company  has  introduced  new  products,  has  updated its web page and has
reduced its  operating  losses.  The Company  has reduced  legal and  accounting
costs,  but still  carries a high debt load for services  related to these items
accrued in the last 39 months.

Management  believes it is beginning to see the benefits of taking  advantage of
the infrastructure  improvements it has made (implementation of fully integrated
manufacturing/data  base  accounting  software,  the dedication of an officer to
finance/SEC  compliance  and  marketing  planning,  and  outsourcing  of certain
manufacturing functions).

Since the Company has not yet raised  money from its  outstanding  warrants,  we
have  focused on  expanding  our  existing  product  lines to provide  operating
capital. The Company has concentrated its efforts on streamlining and increasing
the  production of its existing  product lines in order to eliminate  backorders
for Porsche products,  and on introducing a new line of spark plug wire sets for
Porsche cars, and on introducing a new product line for late model Porsche cars.

NEW PRODUCTS / RECENT DEVELOPMENTS

In the  second  quarter  of  2002,  the  Company  adapted  the  Plasma  Injector
technology for the Porsche 993 to increase its product  offerings for late model
Porsche cars.  The first  experimental  Plasma Drive for the 993 was tested on a
Porsche 908 at Texas Motor  Speedway  during the  Memorial  Day Porsche  Club of
America race. The 908 used in the testing has the same  twin-plug  engine design
as the street-legal 993, but the model 908 was built by Porsche for racing only.
Because it has the same basic engine design and a  well-documented  track record
against which to compare the Plasma Drive's  performance,  the Company  believes
that the 908 is an ideal platform for testing.
<PAGE>

The test indicated that the Plasma Drive ignition system improves the combustion
efficiency of a  high-compression  twin-plug engine. The increase in performance
demonstrated  by this test has  encouraged  the Company to plan more  scientific
testing  using a gas  analyzer to  quantify  and  document  the  improvement  in
combustion  efficiency.  The  Company  intends to  conduct  the  testing  with a
production  model  993  Plasma  Drive on a late  model  Porsche  993.  The first
production  model 993 Plasma Drive ignition  system is under  development and is
scheduled for testing in the third quarter of 2002.

Market  feedback the Company has received has indicated that mechanics using the
Company's  products  desire a simple,  one-kit  solution  to complex  electrical
problems  on the cars  they  repair.  Wholesale  distributors  gave the  Company
positive  feedback on the  packaging  and  pricing of these kits in  preliminary
discussions.  In the second  quarter of 2002,  the Company  designed  and set up
computer  infrastructure  for 87 new kits that  combine  its  ignition  systems,
coils, repair harnesses,  spark plug wire sets and spark plugs. These kits cover
all air-cooled  Porsche cars up to the 1992 model year.  The Company  intends to
create kits for 1993 and newer model year cars in the third quarter of 2002.

The Company sent information  packs and sample kits including compact disks with
downloadable  photographs,   technical  information,   installation  guides  and
troubleshooting  assistance for its  distributors in the second quarter of 2002.
The Company's website  (www.perma-tune.com)  has been updated to include many of
these new  products.  We plan to expand the  website  to include  all of our new
products in the third quarter of 2002, creating an online catalog.

MARKETING STRATEGY

Until it is financially  able to put a public  relations  firm on retainer,  the
Company  will  continue  its  current  marketing  strategy of  conducting  sales
training  missions  to its  wholesale  distributors,  continuing  to improve and
expand its website (a major revision was posted in mid-May), and making low-cost
postcard mailings to alert  distributors to new product  offerings.  The Company
now  provides  its  warehouse   distributors   with  compact  disks   containing
information on all of its product  offerings in a format that  distributors  can
use to promote the Company's products in their advertising and catalogs.

The Company continues its expansion of its distribution network and now sells to
12  wholesale  distributors  who supply an unknown  number of  distributors  and
retailers.  In June, 2002, the Company filled its first order for FVD Worldwide,
a large,  international mail-order distributor.  The products of the Company are
sold  throughout  the United  States and are now being sold in Germany,  France,
Australia,   Belgium,  Canada,  Netherlands,   Italy,  Israel,  Finland,  Japan,
Malaysia,  Norway, England, Spain, Sweden, Hong Kong, Taiwan and the United Arab
Emirates.
<PAGE>

The Company's  short-term  marketing strategy is to begin shipment of late-model
Porsche Plasma Injection systems that include the Plasma Drive, spark plug wires
and electrodes  (spark plugs).  Implementation of this strategy has continued in
the second  quarter of 2002.  The Company  already has some of these products in
inventory and is ready to produce more. A  distribution  network for these parts
has already been established.  The Company is working to expand  distribution of
these new offerings  domestically  by adding new warehouse  distributors  to its
network.

The interim  marketing  strategy is to develop the Honda and Toyota product line
in the third quarter of 2002, and then move on to the  development of the market
for  Perma-Tune  products for domestic  makes in 2003. The product lines require
that production tooling be made, for which funding is currently unavailable. The
Company may create new products  for  American  V-8 engines  based on its Plasma
Injection  technology  for the  models  of the V-8  that  may not  require  that
production tooling be made. Most of the Company's  distribution  network already
includes  Asian car parts.  There is interest in the  Perma-Tune  Toyota  repair
parts because there is currently no aftermarket  supply  available.  The Company
knows of no aftermarket  manufacturing  companies  making  replacement  ignition
modules for these automobiles.

All Perma-Tune  ignition systems  designed for street  vehicles,  except for the
recently  introduced  products  for the Porsche 944,  964, 993 and Carrera,  are
certified by California Air Resources Board Executive Order D-210.  There was no
testing required to obtain this certification  because,  in compliance with CARB
regulations,  the Company  was able to state that its  products do not alter the
ignition  timing of the engine.  Therefore,  if the vehicle  meets EPA standards
with its original  ignition system, it will meet EPA standards with a Perma-Tune
ignition system installed on it. The Company anticipates that its newer products
will be certified as well,  since they also do not alter the ignition  timing of
the engine.

MANUFACTURING OVERVIEW

Management has prepared for rapid growth. The Company's  manufacturing technique
is flexible  because of its modular design and it can respond easily to customer
demand.  Modules  can be  mass-produced  and  then  assembled  to meet  changing
purchase  orders.  Production  can be  increased  and  new  products  introduced
readily.  Currently  the  Company  is  operating  at a small  percentage  of its
manufacturing capacity.

COMPARISON OF OPERATING RESULTS

Quarter Ended June 30, 2002 Compared to the Quarter Ended June 30, 2001
-------------------------------------------------------------------------
<PAGE>

In the second quarter of 2002, the Company experienced a 12.8% sales decrease as
gross sales  decreased  from $74,023 in the second quarter of 2001 to $64,538 in
the second quarter of 2002.

Gross  profit in the second  quarter of 2002 was $36,039  compared to $47,522 in
the second quarter of 2001. As a percentage of sales,  gross profit decreased in
the second  quarter of 2002 to 56% from 64% in the second  quarter of 2001.  The
Company has begun  sub-contracting some  labor-intensive  operations to increase
its gross profit margin and to allow for rapid growth.  The Company  believes it
can  further  improve  its  profit  margin,   as  it  has  lined  up  additional
sub-contractors  to  use  in  this  expense-reducing   effort,  and  will  begin
outsourcing  additional segments of production once capital funding allows it to
take advantage of the economies of scale these  opportunities offer the Company.
The higher the  quantity of parts we can  subcontract  to outside  vendors,  the
better price per piece the Company  will be able to negotiate  with each vendor,
lowering our cost of goods sold and raising our profit margin.  Circuitry  which
is currently hand-made in-house,  can be outsourced for robotic manufacture with
an expected  increase in accuracy and reliability,  but the Company will need to
have the ability to make a large quantity purchase commitment and cover up-front
set-up costs to implement  these  plans.  In all cases,  the Company will retain
control over production of the Perma-Tune  product line and its trade secrets by
manufacturing the key components itself.

General  and  Administrative  (G & A) expenses  were  $29,212 and $37,631 in the
second quarters of 2002 and 2001, respectively.  As a percentage of sales, G & A
expenses  decreased  to 45% from  51%.  The  figures  for both 2002 and 2001 are
unusually high by percentage.  The major  components of this atypical result are
extra salaries and wages (with related  payroll taxes) for Company  personnel to
carry out research and development  work, and the internal costs associated with
being a fully reporting company. These expenses have been reigned in by changing
to a more  cost-effective  accounting firm, as well as having in-house personnel
author and edit SEC filings for review by the Company's attorney.

Research and development  expenses were $2,951 in the second quarter of 2001 and
$0 in the second quarter of 2002. This decrease in R&D  expenditures  was due to
the   deliberate   curtailment  of   expenditures   to  increase  the  Company's
profitability.

Interest expenses  decreased from $3,899 in the second quarter of 2001 to $1,465
in the second quarter of 2002.  This decrease  reflects  progress the Company is
making in satisfying its interest-bearing debt.

Since the Company  incurred net losses for both the first quarter 2001 and 2002,
there was no income tax liability for either quarter.

Six Months Ended June 30, 2002 Compared to the Six Months Ended June 30, 2001
-------------------------------------------------------------------------
<PAGE>

In the first  six  months  of 2002,  the  Company  experienced  a minimal  sales
decrease as gross sales  decreased from $127,342 in the first six months of 2001
to $127,101 in the first six months of 2002.

Gross profit in the first six months of 2002 was $76,279  compared to $75,011 in
the first six months of 2001. As a percentage of sales,  gross profit  increased
in the first six months of 2002 to 60% from 59% in the first six months of 2001.

General  and  Administrative  (G & A) expenses  were  $65,949 and $88,027 in the
first six months of 2002 and 2001, respectively. As a percentage of sales, G & A
expenses  decreased  to 52% from  69%.  The  figures  for both 2002 and 2001 are
unusually high by percentage.  The major  components of this atypical result are
extra salaries and wages (with related  payroll taxes) for Company  personnel to
carry out research and development  work, and the internal costs associated with
being a fully reporting company. These expenses have been reigned in by changing
to a more  cost-effective  accounting firm, as well as having in-house personnel
author and edit SEC filings for review by the Company's attorney.

Research and  development  expenses  were $4,510 in the first six months of 2001
and $0 in the first six months of 2002.  This decrease in R&D  expenditures  was
due to the  deliberate  curtailment  of  expenditures  to increase the Company's
profitability.

Interest  expenses  decreased  from  $5,313 in the  first six  months of 2001 to
$4,080 in the first six months of 2002.  This  decrease  reflects  progress  the
Company is making in satisfying its interest-bearing debt.

Since the Company  incurred net losses for both the first six months of 2001 and
2002,  there was no income tax liability for either  quarter.  The Company has a
net  operating  loss  carry-forward  available  in the amount of  $340,919 to be
offset against future income through years ended December 31, 2011 through 2021.
The majority of this net operating loss carry-forward, $286,250, has occurred in
the last five years.  This was the direct  result of increased  R&D expenses for
developing new products as well as the costs associated with the public offering
that will fund the mass production of all product lines.

As of June 30, 2002, the Company's accumulated losses were $343,601.

LIQUIDITY AND CAPITAL RESOURCES

For the quarter ended June 30, 2002 the Company has not generated  positive cash
flow from its own operations due to the preliminary  nature of such  operations,
ongoing  investment in research and  development,  and expenditures to build the
appropriate  infrastructure  to support its expected growth.  Consequently,  the
Company has been  dependent on private  placements of its equity  securities and
debt financing to fund its cash  requirements,  as well as revenues  provided by
the normal operations of Perma-Tune.
<PAGE>

On March 20, 2002 the  Company  entered  into a $25,000  line of credit with The
American National Bank of Texas in Wylie that is collateralized by the Company's
accounts receivable,  inventory and equipment,  with an initial interest rate of
7.75%.  Interest is variable,  based on the Prime Rate plus 3%. Accrued interest
is payable  monthly,  and the maturity  date is March 20,  2003.  For the period
ended  June 30,  2002,  the  principal  balance  owed on this line of credit was
$22,800, with an interest rate of 7.75%.

On June 28, 2002 the Company entered into a $20,000 loan with Lonnie  Lenarduzzi
and Linda Decker,  President and CFO, respectively,  of the Company. The loan is
unsecured,  and has an initial  interest  rate of 10%. The maturity date is June
28, 2004. For the period ended June 30, 2002, the principal balance owed on this
loan was $20,000, with an interest rate of 10%.

On December 8, 1997, the Company  issued an offering  circular for 125,000 units
priced at $2.00 per unit. Each unit entitled the investor to one share of common
stock and three stock  purchase  warrants.  Each warrant  entitled the holder to
purchase one share of stock for $2.00. The warrants expire on December 31, 2003.
At June 30, 2002, there are 348,000 warrants outstanding.

Proceeds  from the exercise of warrants are planned to fund  production  tooling
and start up costs of the Honda and Toyota products lines.  The Company plans to
manufacture the required  tooling  estimated at $35,000 in materials and 560 man
hours.  There may be other costs  associated  with  attaining the California Air
Resources  Board  certification  for the Honda,  Toyota and  Porsche 964 and 993
product lines.

As of June 30,  2002 the  Company's  cash  reserves  totaled  $19,798  and total
current  assets were  $70,248.  The Company is continuing  production  and sales
efforts as well as further research and development and has yet to break even in
terms of both cash flow and  profitability.  For the  remainder of 2002 and into
2003, the Company has no long-term  commitments but expects to incur  additional
costs for  research  and  development.  It also  expects to expand its sales and
marketing  effort.  These efforts could  significantly  increase  demand for the
Company's products beyond the Company's current production  capacity.  While the
Company  believes it can increase its production  capacity to meet sales demand,
significant additional capital could be required to meet expansion requirements.

Inventory at June 30, 2002 was $36,368. Inventory at June 30, 2001 was $33,813.

The Company presently has an outstanding loan payable on demand to Terry Taylor,
a stockholder.  Principal balance as of June 30, 2002 is $40,000. The loan bears
interest at a rate of 10%. Interest is payable quarterly. The loan is secured by
inventory.

The Company's  working  capital ratio  improved to 0.52 in the second quarter of
2002,  compared with 0.48 at December 31, 2001. The Company will retire accounts
payable from income generated by normal  operations.  It has agreements with its
former accounting firm to pay them as funding becomes available.
<PAGE>

The Company's inventory turnover ratios were 2.8 and 3.1 for second quarter 2002
and 2001, respectively.

The Company's accounts receivable ratios were 20 days and 28 days for the second
quarters of 2002 and 2001,  respectively.  The Company  continues  to manage its
accounts  receivable very  effectively,  collecting  monies due within the terms
offered to its customers.

The Company is taking steps to raise equity  capital.  There can be no assurance
that any new capital  would be available to the Company or that  adequate  funds
for the Company's  operations,  whether from the Company's  revenues,  financial
markets,  or  other  arrangements  will be  available  when  needed  or on terms
satisfactory  to the  Company.  The Company has no  commitments  from  officers,
directors or affiliates to provide funding. The failure of the Company to obtain
adequate additional financing may require the Company to delay, curtail or scale
back some or all of its research and development  programs,  sales and marketing
efforts,  and  manufacturing  operations.  Any additional  financing may involve
dilution to the Company's then-existing shareholders.

The  Company  is  seeking to acquire  complimentary  businesses  to further  its
prospects for  profitability.  However,  the Company's  Board of Directors  will
consider  businesses in other industries if it believes that  shareholder  value
will be enhanced by such transaction.

Without additional  capital funding,  the Company believes it can operate at its
current level of liquidity for  twenty-four to thirty-six  months.  However,  it
hopes to obtain short-term  funding until operations are ramped up, creating the
profitability that will improve its liquidity position.

SUBSEQUENT EVENTS

On July 24,  2002,  the Company  held its annual  meeting of  stockholders.  The
Company's majority  stockholders (1) elected the following  individuals to serve
as directors of the Company: Lonnie Lenarduzzi, Linda Decker, Larrie Lenarduzzi,
Wayne  Robertson,  and Harold  "Red" Smith;  (2)  approved the  amendment of the
Articles of Incorporation to increase the number of authorized  shares of common
stock to 50,000,000 shares; and (3) ratified the appointment of Malone & Bailey,
PLLC, as the Company's independent auditors for fiscal year 2002.

OTHER INFORMATION

ITEM 1: Legal Proceedings

None.
<PAGE>

PART II - OTHER INFORMATION

ITEM 6:  EXHIBITS AND REPORTS ON FORM 8-K

a)   Exhibits

     3.4 Articles of Amendment to Articles of Incorporation

     10.1 Promissory note between Perma-Tune and Lenarduzzi/Decker

     99.1 Certification of Chief Executive Officer and Chief Financial Officer

     b) Reports on Form 8-K

     None.


                                   SIGNATURES

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

PERMA-TUNE ELECTRONICS, INC.

Date: August 14, 2002

By: /s/ Linda Decker
-----------------------
Linda Decker

Chief Financial Officer