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                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                  FORM 10-QSB

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


                  For the quarterly period ended June 30, 2001
                                                      --------


                                       OR

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

                  For the transition period from _____to _____


                         Commission file number: 0-30536

                     ______________________________________

                                 FONECASH, INC.
             (Exact name of registrant as specified in its charter)

                     ______________________________________


          Delaware                                       22-3530573
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)


90 Park Avenue, 1700, New York, New York                 10016-1301
(Address of principal executive offices)                 (Zip-Code)

Registrant's telephone number, including area code:     (212)984-0641

     Indicate  by  check  mark  whether the registrant (1) has filed all reports
required  to  be  filed by Section 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding  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
                                    ---       ---

     Indicate  by  check mark whether the registrant has filed all documents and
reports  required  to  be  filed  by  Sections  12,13,or 15(d) of the Securities
Exchange  Act  of 1934 subsequent to the distribution of securities under a plan
confirmed  by  a  court.
                                 Yes X      No
                                    ---       ---

     The  number  of  outstanding  shares  of the registrant's Common Stock, par
value $.001 per share, was 6,651,372 on June 30, 2001.

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<PAGE>
                                 Fonecash, Inc.
                        Quarterly Report on Form 10-QSB
                     For the Quarter Ended on JUNE 30, 2001

                                Table of Contents

Part  I.       FINANCIAL  INFORMATION

Item  1        Consolidated  Financial  Statements  (Unaudited)

               Balance Sheets as of June 30, 2001 and December 31, 2000

               Statement of Operations for Six Month Period Ending June 30, 2001

               Statement of Cash Flow for Six Month Period Ending June 30, 2001

               Notes  to  Consolidated  Financial  Statements

Item  2        Management's  Discussion  and  Analysis  of Financial Condition
               and  Results  of  Operations

Part  II       OTHER  INFORMATION

               Incorporated  by reference in the Company's Form 10-SB, Amendment
               3  registration  statement, along with all exhibits, submitted on
               May  , 2000


                                        2
<PAGE>
<TABLE>
<CAPTION>
                                  FONECASH, INC
                          (A Development Stage Company)
                                 Balance Sheets

                                     ASSETS
                                     ------

                                                       June 30      December 31
                                                         2001          2000
<S>                                                  <C>           <C>
Current assets:
   Cash                                              $       464   $      1,822
    Accounts receivable                                    6,020            ---
   Inventory                                             207,200         35,000
   Prepaid expenses                                       25,000         25,000
                                                     ------------  -------------
                                                         238,684         61,822
                                                     ------------  -------------

Property and equipment, net                               85,355        103,700
                                                     ------------  -------------
Other assets:
   Patent rights, net                                      2,750          3,000
   Other                                                      98            116
                                                     ------------  -------------
                                                           2,848          3,116
                                                     ------------  -------------
                                                     $   326,887   $    168,638
                                                     ============  =============


                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                 ----------------------------------------------


Current liabilities:
   Accounts payable                                  $   158,715   $     83,513
   Due to an officer/stockholder                         128,571            683
   Note payable                                          120,479        122,953
                                                         407,765        207,149

Stockholders' equity(deficit): (Note 2)
   Preferred stock; $.0001 par value; authorized -
   5,000,000 shares; issued - none                            --             --
   Common stock; $.0001 par value; authorized -
   20,000,000 shares; issued and outstanding -
   6,651,372 shares in 2001 and 5,951,372 in 2000            665            595
Additional paid-in capital                             2,067,673      1,801,743
Treasury stock, 500 shares at cost                        (1,500)        (1,500)
Deficit accumulated during the development stage      (2,147,716)    (1,839,349)
                                                     ------------  -------------
          Total stockholders' equity                     (80,878)       (38,511)
                                                     ------------  -------------

                                                     $   326,887   $    168,638
                                                     ============  =============
</TABLE>

See accompanying notes and accountant's review report


                                        3
<PAGE>
<TABLE>
<CAPTION>
                                       FONECASH,  INC.
                               (A  Development  Stage  Company)
                                    STATEMENTS OF OPERATION

                                                   Six             Six           Aug.7,1997
                                               Months Ended    Months Ended    (Inception) to
                                                 June 30,        June 30,         June 30,
                                                   2001            2000             2001
                                              --------------  --------------  ----------------
<S>                                           <C>             <C>             <C>
Revenue:
    Sales                                                     $          --   $         6,020
    Cost of sales                                                        --             2,800
                                              --------------  --------------  ----------------
        Gross profit                                                     --             3,220
Interest Income                                                       4,154             5,199
                                              --------------  --------------  ----------------
        Total revenue                                                 4,154             8,419
                                              --------------  --------------  ----------------

                                              --------------  --------------  ----------------
Cost and expenses
   Depreciation                               $      18,345   $      22,464   $       135,270
   Amortization                                         268             536             2,520
   Research and development, related party            9,700          24,090           383,756
   Officer's compensation                                            28,129           271,429
   Impairment of investment in related party                                           50,000
   General and administrative                        82,080         115,734         1,313,160
                                              --------------  --------------  ----------------
                                                    110,393         190,953         2,156,135
                                              --------------  --------------  ----------------

Net loss                                      $    (110,393)  $    (186,799)  $    (2,147,716)
                                              ==============  ==============  ================

Basic and diluted loss per common share       $        (.05)  $        (.05)  $          (.56)
                                              ==============  ==============  ================

Weighted average common shares outstanding    $   6,234,705   $   3,836,338   $     3,820,358
                                              ==============  ==============  ================
</TABLE>

              See accompanying notes and accountant's review report


                                        4
<PAGE>
<TABLE>
<CAPTION>
                                                    FONECASH,  INC.
                                           (A  Development  Stage  Company)
                                     STATEMENTS OF CHANGE IN STOCKHOLDERS' EQUITY
                              FOR THE PERIOD AUGUST 7,1997 (INCEPTION) TO JUNE 30, 2001

                                                                                                           Deficit
                                                                       Additional  Treasury    stock     Accumulated
                                             Common         Stock       Paid-in    ---------  --------      from
                                             Shares        Amount       Capital     Shares     Amount     Inception
                                          ------------  -------------  ----------  ---------  --------  -------------
<S>                                       <C>           <C>            <C>         <C>        <C>       <C>
Balances, August 7,1997 (Inception)                                    $                                $
   Common stock issued for services
   and costs advanced, valued at $.0001
   per share                                2,000,000            200           --                                 --
   Common stock issued for services
      Valued at $.15 per share                200,000             20       29,980
   Net loss for the period                         --             --           --                            (61,404)
                                          ------------  -------------  ----------  ---------  --------  -------------

Balances, December 31,1997                  2,200,000            220     29,980--                            (61,404)

   Sale of common stock ($.4156 per           204,500             20       84,965                                 --
share)
   Net Loss                                        --             --           --                            (95,211)
                                          ------------  -------------  ----------  ---------  --------  -------------

Balances, December 31,1998                  2,404,500            240      114,945                           (156,615)
   Sale of common stock($.7622 per          1,098,505            110      837,160                                 --
share)
   Capital contributed for services                --             --       60,000                                 --
   Common stock issued for services
       Valued at $.81 per share               333,333             33      269,967
   Net loss                                                       --           --                           (785,366
                                          ------------  -------------  ----------  ---------  --------  -------------

   Balances, December 31, 1999              3,836,338            383    1,282,072                           (941,981)
     Sale of common stock ($1.25 per           25,000              3       31,247
share)
     Common stock issued for services
valued at $.5312 per share                    623,367             62      331,071
     Purchase of treasury stock                                                         500    (1,500)
      Net Loss for the period                                                                               (897,368)
                                          ------------  -------------  ----------  ---------  --------  -------------
Balances, December 31,2000                  5,951,372            595    1,801,743       500    (1,500)    (1,839,349)
                                          ------------  -------------  ----------  ---------  --------  -------------
     Common stock issued for services         700,000             70      265.930
valued at $.38 per share
                                          ------------  -------------  ----------  ---------  --------  -------------
     Net loss for the period                                                                                (308,367)
                                          ------------  -------------  ----------  ---------  --------  -------------
Balances, June 30, 2001                     6,651,372   $        665   $2,067,873       500   $(1,500)  $(2,147,716))
                                          ============  =============  ==========  =========  ========  =============
</TABLE>

                          See accompanying notes and accountant's review report.


                                        5
<PAGE>
<TABLE>
<CAPTION>
                                          FONECASH,  INC
                                   (A Development Stage Company)
                                      STATEMENTS OF CASH FLOW

                                                       Six             Six          Aug. 7,1997
                                                   Months Ended    Months Ended    (Inception) to
                                                     June 30,        June 30,         June 30,
                                                       2001            2000             2001
                                                  --------------  --------------  ----------------
<S>                                               <C>             <C>             <C>
Cash flows from operating activities
   Net loss                                       $    (110,393)  $    (186,799)  $    (2,147,716)
   Adjustments to reconcile net loss to net
     cash used in operating activities:
     Depreciation                                        18,345          22,464           135,270
     Amortization                                           268             536             2,520
     Cash surrender value of life insurance                 ---           6,838               ---
     Common stock issued for services                       ---              --         1,114,833

     Changes in assets and liabilities:
       (Increase in accounts receivable                     ---             ---            (6,020)
       (Increase) in inventory                              ---         (28,311)         (207,200)
       (Increase) in prepaid expenses                                        --           (25,000)
       Increase (decrease) in accounts payable           45,202          (1,306)          158,715
       Increase (decrease) in amounts due to an
                officer/stockholder                                      (5,660)
                                                  --------------  --------------  ----------------
       Net cash used in operating activities            (45,578)       (192,238)         (974,598)
                                                  --------------  --------------  ----------------

Cash flows from investing activities:
   Organization costs                                        --              --              (368)
   Purchase of property and equipment                       ---          (9,788)         (220,625)
   Acquisition of patent rights                             ---             ---            (5,000)
                                                  --------------  --------------  ----------------
       Net cash used in investing activities                ---          (9,788)         (225,993)
                                                  --------------  --------------  ----------------

Cash flow from financing activities:
   Proceeds from short-term debt                          1,000          42,500           150,265
   Repayment of short term debt                          (5,565)         (4,956)         (29,786))
   Increase (decrease) in amounts due to
             officer/stockholder                         51,567             ---           128,571
    Purchase of treasury stock                              ---             ---            (1,500)
   Proceeds from sale of common stock                       ---             ---           953,505
                                                  --------------  --------------  ----------------
       Net cash provided by financing activities         44,002          37,544         1,201,055
                                                  --------------  --------------  ----------------

Net increase (decrease) in cash                          (1,576)       (164,482)              464
Cash at beginning of  period                                464         208.702                --
                                                  --------------  --------------  ----------------

Cash at end of period                             $         464   $      44,220   $           464
                                                  ==============  ==============  ================
</TABLE>

                      See accompanying notes and accountant's review report.


                                        6
<PAGE>
Item  2.     Management's  Discussion  and  Analysis

This  Quarterly Report on Form 10-QSB, including the information incorporated by
reference  herein,  includes  "forward  looking statement" within the meaning of
Section  27A  of  the Securities Act of 1933, as amended (the "Act") and Section
21E  of  the  Securities  Act  of  1934,  as  amended  ("Act of 34"). All of the
statements  contained  in  this  Quarterly  Report  on  Form  10-QSB, other than
statements  of historical fact, should be considered forward looking statements,
including,  but  not  limited  to,  those  concerning  the Company's strategies,
objectives  and  plans for expansion of its operation, products and services and
growth in demand for it's products and services. There can be no assurances that
these  expectations  will  prove to have been correct. Certain important factors
that  could  cause  actual  results  to  differ  materially  from  the Company's
expectations  (the  "Cautionary  Statements")  are  disclosed  in this Quarterly
report  on  Form  10-QSB.  All  subsequent  written  and  oral  forward  looking
statements  by  or  attributable  to the Company or persons acting on behalf are
expressly  qualified  in their entirety by such Cautionary Statements. Investors
are  cautioned  not  to place undue reliance on these forward looking statements
which  speak  only  as  of  the  date  hereof  and  are not intended to give any
assurance as to future results. The Company undertakes no obligation to publicly
release  any  revisions to these forward-looking statements to reflect events or
reflect  the  occurrence  of  unanticipated  events.

Fonecash,  Inc.  (the "Company") was incorporated under the laws of the State of
Delaware on August 7,1997 and is in its development stage. The first sale of its
products  was  made  in  during  this  period.

The  Company  incurred operating losses of $2,147,716 from Inception to June 30,
2001.  The  Company  expects its accumulated deficit to grow for the foreseeable
future  as  total  costs  and  expenses  increases  due principally to increased
marketing expenses associated with its plans to undertake trials of its products
and  services.  There  can  be  no  assurances  that  the  Company will complete
successful  trials  of  its  products and services, nor that sufficient revenues
will be generated from the possible sales of such products and services to allow
the  Company  to  operate  profitably.

General

The Company has developed, under an exclusive license agreement with a holder of
a U.S. Patent, a system of processing credit cards for an under served community
of  low volume merchants and in-home salespersons consisting of a terminal and a
system  of  computers, utilizing established communications networks, both wired
and  wireless,  for  processing  the  data  from  credit  and  debit  cards.

Terminals  are  electronic collectors of credit and debit data from the magnetic
stripe  on  cards.  In  the  case  of debit and credit cards the Fonecash system
collects  the data from the magnetic stripe when a merchant accepts the card for
payment  of  goods or services. This data is transmitted to processors where the
validity  of  the  card  number  is  confirmed and the amount of the purchase is
authorized  to  the  cardholder's account.  Settlement occurs when the collected
and  stored  data  is sent to the card issuing bank which charges the customer's
account  and  electronically  deposits  payment  in the merchant's bank account,
usually  within  24  -  48  hours.


                                        7
<PAGE>
The  Company  intends  to market a product line and a complete processing system
that  is  high  quality  and simple to operate, because the Company, and not the
individual merchant, takes the responsibility for closing the day's receipts and
uploading  the  data  to  a  third party payment processor, such as Paymenttech,
Visanet, or First Data Resources, for settlement which results in payments being
deposited  in the merchants' bank account within 48 hours.  Because the Company,
not  only provides a terminal, but also, provides a service that facilitates the
collection  of  daily  payment receipts, and transmits these electronic receipts
for  payment and deposit of funds to each merchant, the Company believes that it
will  be  able  to  compete  with the current makers of terminals, who only sell
terminals,  but  also,  able to compete with payment processors who only support
terminals  which transmit credit card data to their computers after the merchant
has  manually  closed  out  the  day's electronic receipts and  transmitted  the
totals  to  the  payment  processor.

The  Company  intends to establish up to three master distributors in the United
States  with  the  most  likely  candidates  being  current  Independent  Sales
Organizations  (ISO's)  who  are already engaged in the business of distributing
automated  credit  card  processing  terminals to established merchants who have
been  approved  by their sponsoring banks. These ISO's have trained commissioned
sales  persons  and  have an interest in placement of any terminal in the market
regardless  of  manufacturer.

The  Company  has  never  operated  under  any  other name, nor has it ever been
involved  with  any bankruptcy, receivership or similar proceeding or engaged in
any  material  reclassification,  merger,  consolidation, or purchase or sale of
assets.

Results  of  Operation

General  and  administrative expenses during the six months ending June 30, 2001
were  $82,080  as compared to $115,734 for the same period in 2000, representing
an  decrease  of $33,654. The increase during the three month period ending June
30,  2001  was  primarily  due  to an expansion of the general operations of the
Company,  including legal, accounting and printing associated with the filing of
various  documents  with the Securities and Exchange Commission, as well as cost
associated  with  the  manufacture,  shipping  and storage of products for sale.

Compensation  and  related  benefits  during  this  three  months  was  $0  and
represented  compensation  to  its president; this compares with compensation to
its  president  of  $28,129  for  the  six  months  ended  June  30,  2000.

Balance  Sheet  Data

The Company's combined cash and cash equivalents totaled $238,684 for the period
ending June 30,2001. This is an increase of $96,010 from $142,674 for the period
ending  June  30,  2000

The  Company  does  not  expect to generate a positive internal cash flow for at
least the next nine months due to expected increase in spending for salaries and
the  expected  costs  of  marketing  and  sales  activtiies.


                                        8
<PAGE>
Property and equipment was valued at $85,355 for the period ending June 30, 2001
and this represents an increase of $3,466 for purchases of additional molds used
the  manufacturing  of its products in Taiwan. The molds have a useful life of 3
years  and  are  depreciated  on  a  straight-line  basis.

Part  II         Other  Information

Item  1          Legal  Proceedings

                 None

Item  2          Changes  in  Securities

                 None

Items  3         Defaults  upon  Senior  Securities

                 None

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

                 a.   Exhibit  Index

                 b.   Reports  of  Form  8-K

                 The Company did  not  file  any  reports on Form 8-K during the
                 quarter  ended  June  30,  2001.


Signatures

In  accordance  with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned who is duly authorized
to  sign  as  an  officer  and  as  the  principal  officer  of  the  Company.

Fonecash,  Inc

By:  /s/  Daniel  E.  Charboneau
     ----------------------------------------
     Daniel  E.  Charboneau,  Chairman/CEO

Date:  August  20,  2001


                                        9
<PAGE>