SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB


  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
          Act of 1934 for the Quarterly Period Ended September 30, 2001


                         Commission File Number 0-25853


                             SCIENTIFIC ENERGY, INC.
        (Exact name of small business issuer as specified in its charter)


                Nevada                                        87-0570975

    (State or other jurisdiction of                        (I.R.S. Employer
    Incorporation or organization)                        Identification No.)


          630 North 400 West                                     84103
         Salt Lake City, Utah
(Address of principal executive offices)                       (Zip Code)


                                 (801) 359-2410
                           (Issuer's telephone number)


          Quazon Corp., 135 West 900 South, Salt Lake City, Utah 84101
  (Former name, former address and fiscal year, if changed since last report)



Check mark  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act of 1934  during the past 12 months (or
for such shorter period that the issuer 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  practicable date. As of September 30, 2001, issuer had
27,000,000 shares of issued and outstanding common stock, par value $0.001.

Transitional Small Business Disclosure Format:  Yes    No X


<PAGE>


                         PART I - FINANCIAL INFORMATION


                          Item 1. Financial Statements


                         INDEPENDENT ACCOUNTANT'S REPORT


Scientific Energy, Inc. (Formerly Quazon Corp.)
(A Development Stage Company)


        We  have  reviewed  the  accompanying  consolidated  balance  sheets  of
Scientific Energy, Inc. (Formerly Quazon Corp.) (a development stage company) as
of  September  30,  2001 and  December  31,  2000 and the  related  consolidated
statements  of operations  for the three and nine month periods ended  September
30, 2001 and 2000 and  consolidated  cash flows for the nine month periods ended
September 30, 2001 and 2000. These financial  statements are the  responsibility
of the Company's management.

        We conducted our review in accordance with standards  established by the
American  Institute  of  Certified  Public  Accountants.  A  review  of  interim
financial  information consists principally of applying analytical procedures to
financial  data and making  inquiries of persons  responsible  for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statement taken as a whole.
Accordingly, we do not express such an opinion.

        Based on our review, we are not aware of any material modifications that
should be made to the accompanying consolidated financial statements for them to
be in conformity with generally accepted accounting principles.

                                                   Respectfully submitted



                                                   /S/ ROBISON, HILL & CO.
                                                   Certified Public Accountants

Salt Lake City, Utah
November 12, 2001


<PAGE>

                 SCIENTIFIC ENERGY, INC. (FORMERLY QUAZON CORP.)
                          (A Development Stage Company)
                           CONSOLIDATED BALANCE SHEETS



                                                      September 30, December 31,
                                                          2001          2000
                                                       -----------  -----------
ASSETS
Current Assets:
Cash & Cash Equivalents ............................   $       622  $     6,951
Prepaid Expenses ...................................        43,475         --
                                                       -----------  -----------

Other Assets:
Technology .........................................       250,040         --


     Total Assets ..................................   $   294,137  $     6,951
                                                       ===========  ===========

LIABILITIES
Current Liabilities:
Accounts Payable & Accrued Expenses ................   $    50,914  $       500
Note Payable Shareholder ...........................       103,905         --
                                                       -----------  -----------

     Total Current Liabilities .....................       154,819          500
                                                       -----------  -----------

STOCKHOLDERS' EQUITY
  Common Stock, Par value $.001
    Authorized 100,000,000 shares,
    Issued 27,000,000 & 3,991,180 Shares
     at September 30, 2001 and December 31, 2000 ...        27,000        3,991
  Paid-In Capital ..................................       218,472    1,888,240
  Retained Deficit, Since June 6, 2001 .............          --     (1,826,092)
  Deficit Accumulated During the
    Development Stage, Since June 6, 2001 ..........      (106,154)     (59,688)
                                                       -----------  -----------

     Total Stockholders' Equity ....................       139,318        6,451
                                                       -----------  -----------

     Total Liabilities and
       Stockholders' Equity ........................   $   294,137  $     6,951
                                                       ===========  ===========









                       See accompanying notes and accountants' report.


<PAGE>

                 SCIENTIFIC ENERGY, INC. (FORMERLY QUAZON CORP.)
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                                                        Cumulative
                                                                                          since
                                                                                         June 6,
                                                                                           2001
                                                                                         Inception
                           For the Three Months Ended     For the Nine Months Ended         of
                                  September 30,                  September 30,          Development
                               2001            2000           2001          2000           Stage
                            -----------    -----------    -----------    -----------    -----------
<S>                         <C>            <C>            <C>            <C>            <C>
Revenues: ...............   $      --      $      --      $      --      $      --      $      --

Expenses:
Research & Development ..        29,201           --           29,201           --           29,201
General & Administrative         18,398          4,557         75,752          8,642         75,752
                            -----------    -----------    -----------    -----------    -----------

     Loss from Operations       (47,599)        (4,557)      (104,953)        (8,642)      (104,953)

Other Income (Expense)
Interest, Net ...........        (1,119)          (200)        (1,201)          (400)        (1,201)
                            -----------    -----------    -----------    -----------    -----------

     Net Loss ...........   $   (48,718)   $    (4,757)   $  (106,154)   $    (9,042)   $  (106,154)
                            ===========    ===========    ===========    ===========    ===========

Basic & Diluted Loss
Per Share ...............   $      --      $      --      $      --      $      --
                            ===========    ===========    ===========    ===========

</TABLE>



                       See accompanying notes and accountants' report.


<PAGE>

                 SCIENTIFIC ENERGY, INC. (FORMERLY QUAZON CORP.)
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                                            Cumulative
                                                                                              since
                                                                                              June 6,
                                                                                               2001
                                                               For the Nine Months Ended    Inception of
                                                                     September 30,           Development
                                                              --------------------------
                                                                  2001            2000          Stage
                                                              -----------    -----------    -----------
CASH FLOWS FROM OPERATING
ACTIVITIES:
<S>                                                           <C>            <C>            <C>
Net Loss ..................................................   $  (106,154)   $    (9,042)   $  (106,154)
Quasi-Reorganization Adjustments ..........................       (11,018)          --          (11,018)
(Increase) Decrease in Prepaid Expenses ...................       (43,475)          --          (43,475)
Increase (Decrease) in Accounts Payable ...................        50,414            893         50,414
Increase (Decrease) in Bank Overdraft .....................          --             --             --
Increase (Decrease) in Accrued Interest ...................           931           --              931
                                                              -----------    -----------    -----------
  Net Cash Used in operating activities ...................      (109,302)        (8,149)      (109,302)
                                                              -----------    -----------    -----------

CASH FLOWS FROM INVESTING
ACTIVITIES:
Net cash provided by investing activities .................          --             --             --
                                                              -----------    -----------    -----------

CASH FLOWS FROM FINANCING
ACTIVITIES:
Note Payable Shareholder ..................................       102,973          8,000        102,973
                                                              -----------    -----------    -----------
  Net Cash Provided by Financing Activities ...............       102,973          8,000        102,973
                                                              -----------    -----------    -----------

Net (Decrease) Increase in
  Cash and Cash Equivalents ...............................        (6,329)          (149)        (6,329)
Cash and Cash Equivalents
  at Beginning of Period ..................................         6,951          2,474          6,951
                                                              -----------    -----------    -----------
Cash and Cash Equivalents
  at End of Period ........................................   $       622    $     2,325    $       622
                                                              ===========    ===========    ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
  Interest ................................................   $       268    $      --      $       268
  Income taxes ............................................   $      --      $      --      $      --

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES:
Common Stock Exchanged for Technology .....................       250,040           --          250,040
</TABLE>

                 See accompanying notes and accountants' report.

<PAGE>

                 SCIENTIFIC ENERGY, INC. (FORMERLY QUAZON CORP.)
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

        This  summary  of  accounting   policies  for  Scientific  Energy,  Inc.
(Formerly Quazon Corp.) (a development  stage company) is presented to assist in
understanding  the  Company's  financial  statements.  The  accounting  policies
conform to generally accepted  accounting  principles and have been consistently
applied in the preparation of the financial statements.

Interim Reporting

        The unaudited financial  statements as of September 30, 2001 and for the
nine month  period  then  ended  reflect,  in the  opinion  of  management,  all
adjustments  (which  include  only normal  recurring  adjustments)  necessary to
fairly  state the  financial  position  and results of  operations  for the nine
months.  Operating results for interim periods are not necessarily indicative of
the results which can be expected for full years.

Organization and Basis of Presentation

        The Company was originally  incorporated  under the laws of the State of
Utah on June 26, 1981, under the name of The Fence Post, Inc.

         On November 7, 1997,  the name was changed to Quazon Corp.  On November
19, 1997,  Quazon Corp. of Utah merged with Quazon Corp., a Nevada  corporation,
with the Nevada corporation as the surviving company.

        On July 16, 2001, the Board of Directors  resolved to change the name of
the Company to Scientific Energy, Inc.

        Since June 6, 2001, the Company is in the development stage, and has not
commenced planned principal operations.

Quasi-Reorganization and Acquisition of Subsidiaries

        On June 6, 2001,  the  Company  entered  into an  agreement  and plan of
reorganization with Scientific Energy, Inc., a Utah Corporation  ("Scientific").
Pursuant to the agreement,  the Company issued 20,000,000 shares in exchange for
100% of the issued and outstanding shares of Scientific.

        This reorganization has been accounted for as a quasi-reorganization. In
connection with the quasi-reorganization the companies retained deficit prior to
June 6, 2001 of $1,937,012 has been eliminated against Paid-In Capital.


<PAGE>

                 SCIENTIFIC ENERGY, INC. (FORMERLY QUAZON CORP.)
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                   (Continued)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Principles of Consolidation

         The  consolidated   financial   statements   include  the  accounts  of
Scientific Energy,  Inc.  (formerly Quazon,  Corp.) a Nevada corporation and its
wholly-owned subsidiary Scientific Energy, Inc., a Utah corporation.

        The results of subsidiaries  acquired  during the year are  consolidated
from their effective dates of acquisition.

        All  significant  inter-company  accounts  and  transactions  have  been
eliminated.

Nature of Business

         The  Company  develops  small  electricity  generation  devices  to  be
incorporated into existing portable electronic devices including portable laptop
computers,  handheld devices, cellular phones, and a variety of other electronic
devices. In addition, the Company is developing technology that will assist both
industrial  concerns and consumers in a variety of applications to significantly
reduce energy consumption.

Cash and Cash Equivalents

        For purposes of the statement of cash flows,  the Company  considers all
highly liquid debt instruments purchased with a maturity of three months or less
to be cash equivalents to the extent the funds are not being held for investment
purposes.

Pervasiveness of Estimates

        The  preparation  of financial  statements in conformity  with generally
accepted  accounting  principles  required  management  to  make  estimates  and
assumptions  that  affect the  reported  amounts of assets and  liabilities  and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. Actual results could differ from those estimates.


<PAGE>

                 SCIENTIFIC ENERGY, INC. (FORMERLY QUAZON CORP.)
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                   (Continued)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Loss per Share

        The reconciliations of the numerators and denominators of the basic loss
per share computations are as follows:
<TABLE>
<CAPTION>
                                                                                  Per-Share
                                                  Income           Shares           Amount
                                                  ------           ------           ------
                                                (Numerator)     (Denominator)

                                               For the Three Months Ended September 30, 2001
Basic Loss per Share
<S>                                           <C>                   <C>         <C>
Loss to common shareholders                   $       (48,718)      27,000,000  $            -
                                              ===============  ===============  ==============

                                               For the Three Months Ended September 30, 2000
Basic Loss per Share
Loss to common shareholders                   $        (4,757)       3,991,180  $            -
                                              ===============  ===============  ==============

                                                For the Nine Months Ended September 30, 2001
Basic Loss per Share
Loss to common shareholders                   $      (106,154)      18,152,482  $            -
                                              ===============  ===============  ==============

                                                For the Nine Months Ended September 30, 2000
Basic Loss per Share
Loss to common shareholders                   $        (9,042)       3,991,180  $            -
                                              ===============  ===============  ==============
</TABLE>

        The  effect  of   outstanding   common   stock   equivalents   would  be
anti-dilutive for September 30, 2001 and 2000 and are thus not considered.

Concentration of Credit Risk

        The  Company  has no  significant  off-balance-sheet  concentrations  of
credit  risk such as foreign  exchange  contracts,  options  contracts  or other
foreign hedging arrangements.

Reclassification

        Certain   reclassifications   have  been  made  in  the  2000  financial
statements to conform with the September 30, 2001 presentation.

<PAGE>

                 SCIENTIFIC ENERGY, INC. (FORMERLY QUAZON CORP.)
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                   (Continued)

NOTE 2 - INCOME TAXES

        As  of  September  30,  2001,  the  Company  had a  net  operating  loss
carryforward for income tax reporting  purposes of  approximately  $106,000 that
may be offset against future taxable income through 2021. Current tax laws limit
the amount of loss  available to be offset  against future taxable income when a
substantial  change in  ownership  occurs.  Therefore,  the amount  available to
offset future taxable income may be limited. No tax benefit has been reported in
the financial statements, because the Company believes there is a 50% or greater
chance the  carry-forwards  will expire unused.  Accordingly,  the potential tax
benefits of the loss  carry-forwards are offset by a valuation  allowance of the
same amount.

NOTE 3 - DEVELOPMENT STAGE COMPANY

        The Company has not begun  principal  operations and as is common with a
development  stage  company,  the Company has had  recurring  losses  during its
development  stage.  The  Company's  financial  statements  are  prepared  using
generally  accepted  accounting  principles  applicable to a going concern which
contemplates  the  realization  of assets and  liquidation of liabilities in the
normal course of business.  However,  the Company does not have significant cash
or other material  assets,  nor does it have an  established  source of revenues
sufficient to cover its  operating  costs and to allow it to continue as a going
concern.  In the interim,  shareholders of the Company have committed to meeting
its minimal operating expenses.

NOTE 4 - COMMITMENTS

        As of  September  30,  2001 all  activities  of the  Company  have  been
conducted by corporate  officers from their business offices.  Currently,  there
are no outstanding debts owed by the company for the use of these facilities and
there are no commitments for future use of the facilities.

        The Company  leases  office space for a research lab in New Mexico.  The
lease is month to month with payments of $2,000 per month.

NOTE 5 - REVERSE STOCK SPLIT

        On October 24, 1997,  the board of  directors of the Company  approved a
1-for-250 reverse stock split and on October 30, 1998, the board of directors of
the  Company  approved  a 1-for-15  reverse  stock  split  while  retaining  the
authorized  shares at 100,000,000  and retaining the par value at $0.001.  These
changes have been applied to the financial  statements  on a  retroactive  basis
back to  inception  of the  development  stage.  The  Company  provided  that no
shareholder  would be reduced below 100 shares,  accordingly,  18,984 post-split
fractional shares were issued.


<PAGE>

                 SCIENTIFIC ENERGY, INC. (FORMERLY QUAZON CORP.)
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                   (Continued)


NOTE 6 - EMPLOYMENT CONTRACTS / ROYALTY AGREEMENT

        The Company  signed a royalty  agreement and  employment  contracts with
Paul  Thomas,  Daryl  Conley,  David  Sanders and Otis H.  Sanders.  The royalty
agreement  provides for a royalty of 5% of the gross  manufacturing  cost of the
product invented by such inventor.  Payment of royalties is due on or before the
30th day after each calendar  quarter for the previous  quarter's  manufacturing
costs.  The  royalty   agreement  also  provides  for  advances  against  future
royalties.  The  annual  salaries  and  royalty  advances  resulting  from these
agreements for each of these individuals are as follows:


                                                     Annual          Annual
                         Name                       Salaries        Advances
----------------------------------------------  --------------- ---------------

Paul Thomas                                     $         8,000 $        15,996
Daryl Conley                                    $        14,000 $        27,996
David Sanders                                   $         8,000 $        15,996
Otis H. Sanders                                 $        20,000 $        39,966
                                                --------------- ---------------

     Total                                      $        50,000 $        99,954
                                                =============== ===============

NOTE 7 - LINE OF CREDIT / NOTE PAYABLE - SHAREHOLDER

        On August15, 2001, the president of the Company has given the Company an
unsecured line of credit for up to $350,000. The Line carries interest at Prime.
As of September 30, 2001 the Company has borrowed  $103,905 against this line of
credit and has been  reported  along with accrued  interest in the  accompanying
financial statements as "Note Payable Shareholder".

NOTE 8 - RELATED PARTY TRANSACTIONS

        On  November  11,  1997,  the  Company  issued  466,667  shares  of  its
restricted common stock to officers of the Company for cash of $5,000.

        On  November  12,  1997,  the  Company  issued  499,999  shares  of  its
restricted common stock for $8,000 cash.

        On October 30, 1998, the Company issued 1,500,000  post-split  shares of
restricted common stock to officers of the Company for services valued at $5,000
and 1,500,000 to Company officers for $5,000 cash.

        In 1999, an officer of the Company contributed $15,000 to the Company in
expenses incurred on the Company's  behalf.  The officer  contributed  $1,753 in
1998.

<PAGE>

                 SCIENTIFIC ENERGY, INC. (FORMERLY QUAZON CORP.)
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                   (Continued)

NOTE 8 - RELATED PARTY TRANSACTIONS (Continued)

        In 1999, an officer of the Company contributed a $10,000 note payable to
the capital of the Company.

        In 2000, an officer of the Company contributed $15,500 to the Company in
expenses incurred on the Company's behalf.

        On January 8, 2001,  the Company issued 750,000 shares of its restricted
common stock to officers of the Company for  services  valued at $7,500 or $0.01
per share.

        On  February  6,  2001,  the  Company  issued  2,258,820  shares  of its
restricted  common  stock to an officer of the  Company for  services  valued at
$22,588 or $0.01 per share.





<PAGE>

        ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

        The  following  information  should  be read  in  conjunction  with  the
consolidated  financial statements and notes thereto appearing elsewhere in this
Form 10-QSB.

Introduction

        Scientific Energy, Inc. (formerly known as Quazon Corp.) (the "Company")
is a development  stage  company that has not engaged in material  operations or
realized revenues for several years. An officer of the Company has, in the past,
advanced  funds for  payment of certain  expenses  incurred  by the  Company.  A
portion of these  advances has been subject to a note  payable,  and the Company
has issued shares of Company common stock for other advances.

        For the immediate future,  necessary funds, including funds for expenses
related to the Company's reporting obligations under the Securities Exchange Act
of 1934,  will be provided by Todd Crosland,  president,  director and principal
stockholder of the Company, under a $350,000 loan agreement. As of September 30,
2001,  the  Company  owes  $103,905  on this note.  Until the Company is able to
generate revenues or is able to obtain significant  outside financing,  there is
substantial doubt about its ability to continue as a going concern.

        At  September  30,  2001,  the  Company  had total  assets of  $294,137,
consisting  primarily of technology of $250,040,  as compared to total assets as
of December  31, 2000,  of $6,951 in cash.  The  technology  was acquired by the
Company as part of a plan of reorganization with Scientific Energy, Inc., a Utah
Corporation  ("Scientific").  Pursuant  to the  agreement,  the  Company  issued
20,000,000  shares in exchange for 100% of the issued and outstanding  shares of
Scientific. The technology is the sole asset of Scientific. Total liabilities at
September 30, 2001,  were $154,819,  consisting of accounts  payable and accrued
expenses of $50,914 and note payable shareholder of $103,905.  Total liabilities
at December 31, 2000, were $500 in accounts payable and accrued expenses.

Results of Operations

        For  the  three  months   ended   September   30,   2001,   general  and
administrative expenses were $57,354, as compared to $852 for the same period in
2000. For the nine months ended September 30, 2001,  general and  administrative
expenses  were  $57,354,  as  compared  to $4,085  for the same  period in 2000.
General and  administrative  expenses  are  primarily  for legal and  accounting
services.

        The  Company  does not  anticipate  any  material  revenues  during  the
succeeding 12 months.  During this interim period, the Company  anticipates that
its expenses will be stable.

        In the  opinion  of  management,  inflation  has not and will not have a
material effect on the operations of the Company.

Plan of Operation

        As of  September  30, 2001,  the  president of the Company has agreed to
loan to the  Company  up to  $350,000.  The loan is  repayable  on  demand  with
interest  at prime rate.  As of  September  30,  2001 the  Company has  borrowed
$103,905 against this line of credit and has been reported along


<PAGE>

with accrued interest in the accompanying  financial statements as "Note Payable
Shareholder".  The  Company  estimates  that this loan  agreement  will  provide
sufficient cash for its operating needs for general and administrative expenses,
research and development, minimum royalty payments and marketing efforts for the
next 12 months.

        Because the Company  lacks funds,  it may be necessary  for the officers
and  directors  either to advance  additional  funds to the Company or to accrue
expenses  until such time as  revenues  are  generated  sufficient  to cover the
expenses of the Company. Management intends to hold expenses to a minimum and to
obtain  services on a contingency  basis when possible.  Further,  the Company's
directors will defer any compensation  until such time as revenues are generated
sufficient to cover the expenses of the Company. However, if the Company engages
outside  advisors or consultants in its  development of the business,  it may be
necessary for the Company to attempt to raise  additional  funds. As of the date
hereof,  the Company has not made any  arrangements or definitive  agreements to
use outside advisors or consultants or to raise any capital.

        In the event the Company needs additional capital,  most likely the only
method  available  will be the private  sale of its  securities.  Because of the
nature of the Company as a  development  stage  company,  it is unlikely that it
could make a public sale of securities or be able to borrow any  significant sum
from either a commercial or private  lender.  There can be no assurance that the
Company will be able to obtain  additional  funding when and if needed,  or that
such funding, if available, can be obtained on terms acceptable to the Company.

        The Company does not expect to purchase or sell any plant or significant
equipment and does not expect significant  changes in the number of employees in
the next 12 months.

Net Operating Loss

        As  of  September  30,  2001,  the  Company  had a  net  operating  loss
carry-forward for income tax reporting  purposes of approximately  $106,000 that
may be offset against future taxable income through 2021. Current tax laws limit
the amount of loss  available to be offset  against future taxable income when a
substantial  change in  ownership  occurs.  Therefore,  the amount  available to
offset future taxable income may be limited. No tax benefit has been reported in
the financial statements, because the Company believes there is a 50% or greater
chance the  carry-forwards  will expire unused.  Accordingly,  the potential tax
benefits of the loss  carry-forwards are offset by a valuation  allowance of the
same amount.

Forward-Looking Information

        This report includes  forward-looking  statements  because we believe it
may  be  helpful  to  investors  to  communicate  our  plans  and  expectations.
Forward-looking  statements  about  what may  happen in the  future are based on
management's  beliefs,   assumptions  and  plans  for  the  future,  information
currently available to management,  and other statements that are not historical
in nature.  Forward-looking statements include statements in which words such as
"expect,"  "anticipate,"  "intend," "plan," "believe,"  estimate," "consider" or
similar  expressions  are  used.  These   forward-looking   statements  are  not
guarantees  of  future   performance  and  involve  risks,   uncertainties   and
assumptions, including among others:

*        We may not be able to develop commercially viable products based on our
         technologies.

*        We have not obtained any  third-party  independent  verification of our
         test results or of the efficacy of our product designs.

*        We cannot  assure that our  intellectual  properties do not infringe on
         the intellectual properties of others.

*        We  may  not  be  able  to  prevent  others  from   infringing  on  our
         intellectual properties.

<PAGE>

*        We may not be able to obtain required additional capital.

*        Our  technologies  may not  lead to  commercial  products  that  can be
         manufactured readily or economically in large numbers that will operate
         efficiently or economically.

*        We may not be able to market any products we develop.

    Although  we believe  our plans and  expectations  stated,  reflected  in or
suggested by our forward- looking statements are reasonable,  our future results
and  stockholder  values may differ  materially  from those  expressed  in these
forward-looking  statements.  Many of the  factors  that  will  determine  these
results  and  values  are beyond  our  ability  to  control  or  predict.  These
statements  reflect  management's  current  view of our  future  events  and are
subject to  certain  risks,  uncertainties,  assumptions  and risks.  Any of the
factors noted above or elsewhere in this document, as well as in other materials
filed with the Securities and Exchange  Commission,  should be considered before
any investor  decides to purchase or retain any of our  securities.  Any of such
factors  could have a material  adverse  effect on our  business  and  financial
condition and prospects,  results of operations and trading price for our common
stock.

    Our  forward-looking  statements speak only as of the date they are made and
should not be relied upon as representing  our plans and  expectations as of any
subsequent  date.  We  do  not  undertake  to  update,  correct  or  revise  any
forward-looking  statements, even if our plans and expectations change. However,
from time to time,  we may  voluntarily  update,  correct or revise our previous
forward- looking statements.


<PAGE>

                           PART II--OTHER INFORMATION


                            ITEM 1. LEGAL PROCEEDINGS

    There are  presently  no material  pending  legal  proceedings  to which the
Company or any of its subsidiaries is a party or to which any of its property is
subject and, to the best of its knowledge,  no such actions  against the Company
are contemplated or threatened.


                ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

    None.

                     ITEM 3. DEFAULTS UPON SENIOR SECURITIES

    None.


           ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

    None.

                            ITEM 5. OTHER INFORMATION

    None.





<PAGE>



                    ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

    (a) Exhibits:
        --------


             SEC
Exhibit   Reference
Number     Number                   Title of Document

--------------------------------------------------------------------------------

Item     2. Plan of  Acquisition,  Reorganization,  Arrangement,  Liquidation or
         Succession

         2.012    Agreement  and  Plan of  Reorganization  among  Quazon  Corp.,
                  Scientific  Energy,  Inc., and the  stockholders of Scientific
                  Energy Inc. dated June 6, 2001 (1)


Item     33 Articles of Incorporation and Bylaws

--------------------------------------------------------------------------------

         3.013    Amendment to Articles of  Incorporation  to change the name of
                  the Company to Scientific Energy, Inc. (2)

Item     10. Material Contracts

--------------------------------------------------------------------------------

         10.0110  Royalty  Agreement  dated May 31, 2001, by and between Otis H.
                  by  Sanders,  David  Sanders,  Daryl  Conley,  Paul Thomas and
                  Scientific Energy, Inc. (2)

         10.0210  Form  of  Employment  Agreement  dated  May 31,  2001,  by and
                  between  Scientific  Energy,  Inc.  and  related  schedule  of
                  employees and compensation (2)

         10.0310  Loan Agreement dated as of June 15, 2001,  between  Scientific
                  by Energy,  Inc.  and Todd B.  Crosland  with  related form of
                  Promisory Note (2)


(1)      Incorporated  by reference from the current report on Form 8-K, June 6,
         2001.

(2)      Incorporated by reference from the Form 10-QSB, June 30, 2001.

        (b)  Reports on Form 8-K.  The  Company did not file any reports on Form
8-K during the quarter ended September 30, 2001.

<PAGE>

                                   SIGNATURES

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

                                            SCIENTIFIC ENERGY, INC.


Date:  November 12, 2001                    By    /S/ TODD B. CROSLAND
                                                  Todd B. Crosland
                                                  President and
                                                  Chief Financial Officer