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:  September  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 1-15497

                             RecycleNet Corporation
                             ----------------------
              (Exact name of small business issuer in its charter)


               Utah                                   87-0301924
               ----                                   ----------
 (State  or other jurisdiction of        (IRS  Employer Identification No.)
  incorporation or organization)

                   7 Darren Place, Guelph, ON N1H 6J2, CANADA
                   ------------------------------------------
          (Address of principal executive offices, including Zip Code)

                                  519-767-2913
                                  ------------
                        (Registrant's telephone number,)

Check whether the issuer (1) filed all reports required to be filed by Sections
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 [ ]

The number of common shares outstanding at October 31, 2001: 72,305,691
The number of class N shares outstanding at October 31, 2001: 66,291,781





                     RECYCLENET CORPORATION AND SUBSIDIARIES
                                   FORM 10-QSB
                        QUARTER ENDED SEPTEMBER 30, 2001

                                TABLE OF CONTENTS

                                                                       Page
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

 Condensed Consolidated Balance Sheets - September 30, 2001 and
 December 31, 2000 (Unaudited)                                            3

 Condensed Consolidated Statements of Operations for the Three
 and Nine Months Ended September 30, 2001 and 2000 (Unaudited)            4

 Condensed Consolidated Statements of Cash Flows for the Nine
 Months Ended September 30, 2001 and 2000 (Unaudited)                      5

 Notes to Condensed Consolidated Financial Statements (Unaudited)          6

Item 2.   Management's Discussion and Analysis of Financial Condition
          and Results of Operation                                         9

PART II - OTHER INFORMATION

Item 6.   Exhibits and Reports on Form 8-K                                13

Signatures                                                                14





                         PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

                     RECYCLENET CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)

                                           September 30, December 31,
                                               2001          2000
                                             ----------  ----------
                                     ASSETS
Current Assets
  Cash                                       $  249,125  $  117,505
  Trade accounts receivable, net of $6,317
   and $6,022 allowance for bad debt,
   respectively                                  17,374      72,117
  Inventory                                      61,452           -
      Prepaid expenses                            7,852           -
                                             ----------  ----------
      Total Current Assets                      335,803     189,622
                                             ----------  ----------
Computer Equipment                               21,372      21,372
   Less accumulated depreciation                (15,663)     (9,490)
                                             ----------  ----------
      Net Computer Equipment                      5,709      11,882
                                             ----------  ----------
Advances to related party supplier               17,500      17,500
                                             ----------  ----------
Total Assets                                 $  359,012  $  219,004
                                             ==========  ==========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
   Trade accounts payable                    $        -  $    1,569
   Accrued liabilities                            3,897      10,400
   Deferred revenue                             106,033      59,239
                                             ----------  ----------
      Total Current Liabilities                 109,930      71,208
                                             ----------  ----------
Stockholders' Equity
   Class N convertible shares (and Class X
     shares of Amalco) - $0.01 par value;
     70,896,789 shares authorized;
     66,291,781 shares and 66,441,781
     shares issued and outstanding,
     respectively                               662,918     664,418
   Common shares - $0.01 par value;
     79,103,211 shares authorized;
     72,305,692 shares and 39,655,042
     shares issued and outstanding,
     respectively                               723,056     396,550
   Additional paid-in capital (Discount
     on common shares)                          (21,435)    196,745
   Accumulated deficit                       (1,115,457) (1,109,917)
                                             ----------  ----------
      Total Stockholders' Equity                249,082     147,796
                                             ----------  ----------
Total Liabilities and Stockholders' Equity   $  359,012  $  219,004
                                             ==========  ==========

See the accompanying notes to condensed consolidated financial statements.

                                3


                     RECYCLENET CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)


                               For the Three Months     For the Nine Months
                                Ended September 30,     Ended September 30,
                               ----------------------  ----------------------
                                  2000        2001       2000        2001
                               ----------  ----------  ----------  ----------
Sales                          $  183,820  $  783,475  $  920,877  $1,685,814
Cost of Sales                      99,845     645,021     475,392   1,291,356
                               ----------  ----------  ----------  ----------
Gross Profit                       83,975     138,454     445,485     394,458
                               ----------  ----------  ----------  ----------
Operating Expenses
 General and administrative
  expenses                        128,640     108,334     444,650     342,517
Exchange (gain)loss                 8,874        (218)      6,375      (1,969)
                               ----------  ----------  ----------  ----------
Total Operating Expenses          137,514     108,116     451,025     340,548
                               ----------  ----------  ----------  ----------
Net Income (Loss)              $  (53,539) $   30,338  $   (5,540) $   53,910
                               ==========  ==========  ==========  ==========
Basic Income (Loss) Per
 Common Share                  $        -  $        -  $        -  $        -
                               ==========  ==========  ==========  ==========
Diluted Income (Loss) Per
 Common Share                  $        -  $        -  $        -  $        -
                               ==========  ==========  ==========  ==========

See the accompanying notes to condensed consolidated financial statements.

                                4


                     RECYCLENET CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)


                                                      For the Nine Months
                                                       Ended September 30
                                                         2001       2000
                                                      ----------  ----------
Cash Flows From Operating Activities
  Net income (loss)                                   $   (5,540) $   53,910
  Adjustments to reconcile net income (loss)
   to net cash provided by operating activities:
     Depreciation                                          6,173       5,254
     Exchange gain/loss                                    6,375      (1,969)
  Changes in assets and liabilities:
     Accounts receivable                                  54,743     (34,375)
     Inventory                                           (61,452)
     Receivable from related party supplier                   --      (2,500)
     Prepaid expenses                                     (7,852)         --
     Accounts payable                                     (1,569)      3,372
     Accrued liabilities                                  (6,503)      3,350
     Deferred revenue                                     46,794      17,778
                                                      ----------  ----------
      Net Cash Provided By Operating Activities           31,169      44,820
                                                      ----------  ----------
Cash Flows From Investing Activities
  Cash received in acquisition of fiberglass.com,inc.      2,059          --
  Cash received in Acquisition of Metalworld.com              --      22,045
  Purchase of Equipment                                       --      (7,679)
                                                      ----------  ----------
      Net Cash Provided by Investing Activities            2,059      14,366
                                                      ----------  ----------
Cash Flows From Financing Activities
  Collection of receivable from shareholders
   received in acquisition of fiberglass.com,inc.        104,767          --
                                                      ----------  ----------
      Net Cash Provided by Financing Activities          104,767          --
                                                      ----------  ----------
Effect of Exchange Rate Changes on Cash                   (6,375)      1,969
                                                      ----------  ----------
Increase in Cash                                         131,620      61,155

Cash at Beginning of Period                              117,505      61,167
                                                      ----------  ----------
Cash at End of Period                                 $  249,125  $  122,322
                                                      ==========  ==========

See the accompanying notes to condensed consolidated financial statements.

                               5



                     RECYCLENET CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


NOTE 1-ORGANIZATION AND NATURE OF OPERATIONS

Condensed   Financial  Statements  -  The  accompanying  condensed  consolidated
financial  statements  have  been  prepared by RecycleNet  Corporation  and  are
unaudited. In the opinion of management, the accompanying consolidated financial
statements  contain  all  adjustments  (consisting  of  only  normal   recurring
adjustments)  necessary  for  fair presentation in  accordance  with  accounting
principles generally accepted in the United States of America.

The  accompanying interim consolidated financial statements have been  condensed
pursuant to the rules and regulations of the Securities and Exchange Commission;
therefore,   certain   information  and  disclosures   generally   included   in
consolidated  financial  statements  have  been  condensed  or  omitted.   These
consolidated  financial  statements should  be  read  in  conjunction  with  the
Company's  annual  consolidated financial statements included in  the  Company's
annual report on Form 10-KSB as of December 31, 2000. The financial position and
results  of  operations  of the interim periods presented  are  not  necessarily
indicative of the results to be expected for the year ended December 31, 2001.

Advances  to  Related Party Supplier - At September 30, 2001,  the  Company  had
loaned  a  total  of  $17,500 to Andela Tool & Machine, from which  the  Company
purchased  Andela  Products Ltd. and purchases equipment for  resale.  Prior  to
acquisition  of Andela Products Ltd., Andela Tool and Machine was  an  unrelated
third-party. The owners of Andela Tool & Machine became minority shareholders as
a  result  of  the Company's acquisition of Andela Products Ltd.   The  loan  is
unsecured.  The  loan is non-interest bearing and payment terms  have  not  been
established.

NOTE 2-BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE

Basic income (loss) per common share is calculated by dividing net income (loss)
by  the  weighted-average  number of common shares outstanding.  Diluted  income
(loss)  per  common  share is calculated by dividing net income  (loss)  by  the
weighted-average  number  of  Class N (and Class X)  shares  and  common  shares
outstanding  to give effect to potentially issuable common shares except  during
loss periods when those potentially issuable shares are anti-dilutive.

                                For the Three Months     For the Nine Months
                                       Ended                  Ended
                                   September 30,           September 30,
                               -----------------------  ----------------------
                                  2001        2000        2001        2000
                               ----------  -----------  ----------  ----------
Net income (loss)              $  (53,539) $    30,339  $   (5,540) $   53,910
                               ==========  ===========  ==========  ==========
Weighted-average number of
 common shares used in basic
 income (loss) per common
 share calculation             72,305,692   35,184,349  72,058,251  18,920,084

Incremental potentially
 issuable dilutive common
 shares from assumed
 conversion of Class N
 common shares                          -   66,754,687           -  67,632,101
                               ----------  -----------  ----------  ----------
Weighted-average number of
 common shares and dilutive
 potential common shares used
 in diluted income (loss) per
 common share calculation      72,305,692  101,939,036  72,305,692  86,552,185
                               ==========  ===========  ==========  ==========

Basic Income (Loss) Per
 Common Share                  $        -  $         -  $        -  $        -
Diluted Income (Loss) Per
 Common Share                  $        -  $         -  $        -  $        -



                                6

For  the  three  and  nine  months ended September 30,  2001,  the  Company  had
66,291,781  potentially  issuable common shares  that  were  excluded  from  the
calculation of diluted loss per share due to their anti-dilutive effects.

NOTE 3-ACQUISITION OF FIBERGLASS.COM, INC.

On  January  2,  2001, RecycleNet Corporation acquired all  of  the  outstanding
capital  stock  of fiberglass.com, Inc., a Utah Corporation. The  fiberglass.com
Inc.  shares were acquired primarily from current holders of Class N  shares  of
the  Company.  The  consideration for the acquisition was 32,500,650  shares  of
common  stock.   Due  to the fact that the Company and fiberglass.com  Inc.  are
entities  under common ownership, the purchase of fiberglass.com Inc.  has  been
accounted  for under the purchase method of accounting at historical cost  in  a
method similar to a pooling of interests. The common stock issued was valued  at
$106,826. The assets of fiberglass.com Inc. included  $2,059 in cash,   $104,767
in  receivables  from  shareholders  (which were  collected  subsequent  to  the
acquisition),  the  Internet portal, "Fiberglass World,"  the  Internet  portal,
"House  of  Glass,"  as  the  domain names fiberglass.com,  glasschange.com  and
glasschange.net  and  other intangible assets relating to customers'  access  to
these  Internet  portals.  There were no outstanding  liabilities  or  debts  in
fiberglass.com Inc.  The operation of fiberglass.com Inc. have been included  in
the operation of the Company from January 2, 2001.

The  following  unaudited  pro  forma operating data  presents  the  results  of
operations of the Company for the three and nine months ended September 30, 2000
as  if  the acquisition of fiberglass.com Inc. had occurred at the beginning  of
those  periods. The unaudited pro forma results of operations have been prepared
for  illustrative  purposes  only  and do not  purport  to  represent  what  the
Company's  results  of operations actually would have been had  the  acquisition
been  made  when  assumed, nor is it indicative of actual  or  future  operating
results that may occur.

                                        For the Three  For the Nine
                                        Months Ended   Months Ended
                                        September 30,  September 30,
                                             2000          2000
                                         -----------    -----------

Sales                                    $  784,647    $ 1,687,702
Net income (loss)                            29,156         44,874
Basic income per common share                    --             --
Diluted income per common share                  --             --

NOTE 4-STOCKHOLDERS' EQUITY

On  January 17, 2001, a shareholder converted 150,000 Class N common shares (and
Class  X shares of Amalco) into 150,000 common shares. The Class N common shares
are  convertible  into common stock at the ratio of one common  share  for  each
Class  N  share and the number of shares of Class N shares that can be converted
are limited to the number of unissued authorized common shares.

As  discussed  in  Note  3  above,  on January 2,  2001,  the  Company  acquired
fiberglass.com, Inc. in exchange for the issuance of 32,500,650 shares of common
stock.

                                7



                     RECYCLENET CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


NOTE 5-SEGMENT INFORMATION

The  Company  has  operations in two segments of its Internet business,  namely:
Internet  Portal Services and Internet Sales of Equipment. Information regarding
the operations and assets of these reportable business segments follows:

                                             Portal    Equipment
                                            Services     Sales        Total
                                            ---------  ----------  ----------
For the Nine Months Ended Sept 30, 2001
   Sales                                    $ 445,427  $  475,450  $  920,877
   Net income (loss)                           (4,877)       (663)     (5,540)
   Assets                                     266,948      92,064     359,012
For the Nine Months Ended Sept 30, 2000
   Sales                                    $ 399,009  $1,286,805  $1,685,814
   Net income (loss)                           54,551        (641)     53,910
   Assets                                     168,483      50,521     219,004

During the quarter ended June 30, 2000, the Company internally changed the basis
of segmentation from operating in only one segment to the two segments presented
above. Segment information for the nine months ended September 30, 2000 has been
restated to conform to the 2001 presentation.

                                8

ITEM  2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION

Cautionary Statement Regarding Forward_Looking Statements

Certain  statements contained in this Section and elsewhere in this Form  10-QSB
regarding  matters that are not historical facts are forward-looking  statements
(as  such  term  is defined in the Private Securities Litigation Reform  Act  of
1995).  Because such forward-looking statements include risks and uncertainties,
actual  results  may differ materially from those expressed or implied  by  such
forward-looking  statements. All statements that address operating  performance,
events  or developments  that  management  expects  or anticipates to  incur  in
the  future,  including statements relating to sales and  earnings   growth   or
statements   expressing  general optimism about  future operating  results,  are
forward-looking  statements.  The  forward-looking  statements  are   based   on
management's current views and assumptions regarding future events and operating
performance.  Many factors could cause actual results to differ materially  from
estimates contained in management's forward-looking statements.  The differences
may  be  caused  by a variety of factors, including but not limited  to  adverse
economic   conditions,  competitive pressures,  inadequate  capital,  unexpected
costs, lower revenues, net income and  forecasts, the possibility of fluctuation
and  volatility of our operating results  and financial condition, inability  to
carry  out  marketing  and  sales plans and loss of key executives, among  other
things.

Overview

The following discussion of the financial condition and results of operations of
the  Company  should  be read in conjunction with the financial  statements  and
notes related thereto, included elsewhere in this report.

RecycleNet  Corporation  provides "Global Access to  Recycling  Markets"  (GARM)
through Internet portals that facilitate e-commerce trading.

Results of Operations

RecycleNet  Corporation  (an Ontario Private Corporation)  was  incorporated  on
December 22, 1997 and purchased the ongoing business proprietorship of Mr.  Paul
Roszel. The Company operated its business activities and continued to expand its
operations throughout the following period.

On  March  19,  1999,  RecycleNet Corporation (an Ontario  Private  Corporation)
completed a reverse share acquisition with the Garbalizer Machinery Corporation,
a  Utah Corporation.  RecycleNet Corporation (Ontario) since its inception,  has
provided Internet services and has received all of its sales revenue from  these
activities.   All  of  the previous business activities of Garbalizer  Machinery
Corporation have not continued on in the new parent. Consequently,  all  of  the
following  financial  data  being  discussed will  not  compare  any  Garbalizer
Machinery Corporation figures with its relevant comparisons.

Throughout  the reporting periods shown hereafter, common stock was  issued  for
various  items  (ie. business & start-up costs; merger costs; professional  fees
and  marketing expenses). Accounting principles generally accepted in the United
States  require  that  we value these shares at reasonable current  values  when
issued. Consequently, the paid-in-capital of the Company recorded has received a
substantial  paid-in  capital  and  the consolidated  statement  of  Accumulated
Deficit recorded a correspondingly large deficit.


                                9


Sales Revenues

                            For the Three           For the Nine
                            Months Ended            Months Ended
                            September 30,           September 30,
                         ----------------------  ----------------------
                            2001        2000        2001       2000
                         ----------  ----------  ----------  ----------
     Sales Revenues      $  183,800  $  783,500  $  920,900  $1,685,800

Sales  revenues  recorded  for  the three months ended  September  30,  2001  of
$183,800  have  decreased $599,700 from $783,500 during the  similar  period  of
2000. Revenues from our web site services of
$72,831 were $70,169 less than the $143,000 recorded in 2000, which reflects the
economic  slow down in our web site business during the last quarter.  Sales  in
Andela  Products of $100,600 were $539,900 lower than the $640,500  recorded  in
2000  which reflects the more difficult business conditions continuing  in  2001
for capital equipment commitments from our customers.

Sales  revenue of $920,900 for the first nine months of 2001 were $764,900  less
than  the  same  period  of  2000.  However, revenues  in  our  Portal  business
increased from $399,000 in 2000 to $445,400 in 2001 reflecting a $46,400 or  12%
increase. Of this amount RecycleNet sold a license in March 2001 for the use  of
our  Rhodium  WebWeaver ASP Business Package for a one-time fee of $35,000.  The
remaining  $24,400  reflects our improvement in our portal  business  over  last
year's  level of business activity.  However revenue in Andela Products declined
from  $1,286,800  in 2000 to $475,500 in 2001 reflecting a  $811,300  or  a  63%
erosion  in  business.   Business conditions in the North American  economy  for
capital  equipment  purchases are proving to be difficult and  we  do  not  know
whether they will improve appreciably in the coming months.

Gross Profit

                            For the Three           For the Nine
                            Months Ended            Months Ended
                            September 30,           September 30,
                         ----------------------  ----------------------
                            2001        2000        2001       2000
                         ----------  ----------  ----------  ----------

     Gross Profit        $   84,000  $  138,500  $  445,500  $  394,500

Gross profit of $84,000 in the third quarter of 2001 was $54,500 lower than  the
$138,500 recorded in the similar period of 2000. The Company's gross profit is a
direct result of our revenue associated with our web site activities.  From  the
sales  revenue  discussion above, our portal sales have decreased this  quarter,
and consequently our gross profit has also decreased.

Gross  profit of $445,500 for the first nine months of 2001 was  $51,000 or  11%
above  the  $394,500 level  in the same period of 2000.  First quarter  results,
including the Rhodium WebWeaver license sale of $35,000 led the company off to a
strong start. However, second quarter and third quarter results have not been as
strong,  reflecting  the unfavorable business climate that we  are  experiencing
now.

In regards to the Rhodium WebWeaver license, there were no cost of sales and the
$35,000  sale  contributed  directly  to a $35,000  increase  in  gross  profit.
However, the Company incurred sales commission of $8,500 and royalties of $1,000
associated  with this sale. Our gross profit related to the Andela business  has
not matured and this business as yet, is not contributing to our gross profit.

                                10


Operating Expenses

                                  For the Three           For the Nine
                                  Months Ended            Months Ended
                                  September 30,           September 30,
                               ----------------------  ----------------------
                                  2001        2000        2001       2000
                               ----------  ----------  ----------  ----------

     General and Administrative
      Expenses                 $  128,600  $  108,300  $  444,700  $  342,500

General  and  administrative expenses of $128,600 in  the  third  quarter  ended
September 30, 2001 were $20,300 higher than the same period of 2000. The Company
experienced increases in ISP expenses of $3,600, commissions expense of  $5,800,
office expense of $5,900, salaries and benefits expense of $3,900, bad debts  of
$3,700  and  professional fees of $500. Our general business activities  in  our
portal  area were higher in the first two quarters of 2001 than in 2000  and  we
are  responding  by increasing our commitments to support this  business  level.
However,  with the revenue levels falling in the third quarter, we  will  adjust
our expense levels accordingly.

General and administrative expenses recorded for nine months ended September 30,
2001  of $444,700 were higher by $102,200 than the $342,500 recorded in the same
period  of  2000. ISP expenses have increased by $15,300 as the company  is  now
paying  costs to support Metalworld and Fiberglass websites.  Sales  commissions
paid  of  $14,800 and royalties of $1,000 associated with the sale of our  first
Rhodium  WebWeaver in March of 2001 increased this expense category  this  year.
Office  and  administrative expenses have increased by  $25,300  reflecting  two
additional people in 2001 that were not employed during the first half of  2000.
Higher  costs recorded for professional fees of $45,400 reflected the  continued
efforts  of  our  accountants and lawyers to answer the  questions  for  the  US
Securities and Exchange Commission which we have now completed. Additional costs
in  advertising  and  promotion  of  $12,900  reflects  our  increased  expenses
associated with RecycleNet attending industry specific trade shows.

  Our  intention  is  to increase our company profile by attending  trade  shows
throughout  the  year  to exhibit our products and to increase  our  advertising
profile in those areas that we think will be beneficial for the Company. We feel
we  received  good  value and an improved perception from many people  attending
these  events  as  to  the successful progress in our business.  However,  these
efforts  have had only an increase in sales from web services. Otherwise,  these
efforts have not shown any results.

Net Income (Loss)
                            For the Three           For the Nine
                            Months Ended            Months Ended
                            September 30,           September 30,
                         ----------------------  ----------------------
                            2001        2000        2001       2000
                         ----------  ----------  ----------  ----------


     Net Income          $  (53,500) $   30,300  $   (5,500) $   53,900

The  net  loss  of  $53,500 reported in the third quarter of  2001  reflected  a
$83,800  profit  erosion compared to the same period of  2000.   Sales  revenues
surprisingly  declined,  in  July and August this  year  and  continued  through
September.  Consequently, we did not adjust our expenditure levels in  the  last
quarter  as  we  did not expect our sales revenue erosion to continue.   We  are
monitoring  our  sales  revenues  more closely  this  month  in  order  to  take
appropriate action to protect our profitability.

Net  income  for  the first nine months ended September 30,  2001  decreased  by
$59,400  over  the same period of 2000 to a loss of $5,500. As discussed  above,
the  sale  in  March  2001  of  our first Rhodium  WebWeaver  license  less  our
commissions  and  royalty  contributed $25,500 of the  profit  while  the  third
quarter  results  as  explained  above has eroded  our  position  substantially.
Management will be reassessing our expenditure commitments compared to our sales
revenues  and  will  be  taking  the necessary steps  to  improve  our  business
position.

                                11

Liquidity and Capital Resources

The  Company's  cash  position recorded at September 30, 2001  of  $249,100  has
increased  $131,600  from the December 31, 2000 cash position  of  $117,500.  In
January  of  2001  RecycleNet Corporation purchased  Fiberglass.com,inc  by  the
issuance  of  common  shares  capturing the  cash  balance  of  $2,060  in  this
acquisition as noted previously in this report.  Cash generated from  operations
in  the  first  nine  months of 2001 of $31,200 was a reduction  over  the  cash
generated of  $44,800 in the same period of 2000.  We purchased our first  glass
pulverizing machine from Andela Tool & Machinery for the purpose of resale or to
lease  to  a customer, resulting in an inventory position of $61,500.  Also,  as
per  our  discussions  in  the deferred revenue segment following,  the  company
improved  its cash position by $57,800 with the prepayment of Internet  services
by  our  customers.  This prepayment of services will reduce our  administrative
efforts  in  accounts  receivable and also reduce our bad debt  experience  thus
freeing up our staff members to concentrate on sales revenue activities.

The Company's financial position has strengthened further in the quarter but the
Company  is  concerned about the level of sales revenues recorded in  this  last
quarter.   Management  will  continue  to  focus  on  improving  this  operating
performance and also look at opportunities to invest our cash, either internally
or externally to improve shareholder value.

Deferred Revenue

Deferred  revenue  results from RecycleNet customers who pay for  their  service
purchases  in  advance,  such as quarterly, half year, or  annually.  RecycleNet
records  the  initial payment in deferred revenue and then  recognizes  in  each
subsequent month that proportion which is provided in services.  Although  sales
revenues have decreased in the quarter, we have adopted a sales policy that  our
service  will be a fully prepaid service. During the last quarter, some  of  our
customers  have  continued  to be tardy in paying  for  their  portal  services,
resulting in RecycleNet having to suspended them from our sites for non-payment.
This has resulted in the serious customer base providing us with timely payments
to  have  their  accounts brought into a current position  or  their  suspension
reversed.  This has contributed directly to our increased cash position.  As  at
September  30,  2001, deferred revenue of $106,000 increased  $46,800  over  the
December 31, 2000 balance of $59,200 which reflects directly the change  in  our
sales policy.

Quantitative And Qualitative Disclosures About Market Risk

Competition  for Internet products and services, advertising and  e-commerce  is
intense.   The  Company  expects that competition will  continue  to  intensify.
Barriers  to entry are minimal, and competitors can launch new Web  sites  at  a
relatively   low   cost.    It   competes  for   a   share   of   a   customer's
advertising/promotional  budget with online services  and  traditional  off-line
media, such as print and trade associations.

Competitors  may develop Internet products or services that are superior  to  or
have greater market acceptance than the Company's solutions.  If it is unable to
compete  successfully  against  its competitors, business  condition,  financial
condition, and operating results will be adversely affected.

Many  of  the  Company's  competitors have much greater  brand  recognition  and
greater  financial,  marketing and other resources.  This  may  place  it  at  a
disadvantage in responding to its competitors' pricing strategies, technological
advances, advertising campaigns, strategic partnerships and other initiatives.


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                           PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

None. Not applicable.



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                                   SIGNATURES


Pursuant to the requirements of the Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.


                                     RecycleNet Corporation


November 13, 2001        /s/  Paul Roszel
                       -------------------------------------
                       Paul Roszel, President and Chairman of
                         the Board of Directors


November 13, 2001        /s/ Richard Ivanovick
                       ---------------------------------------
                       Richard Ivanovick, C.A., Chief Financial
                        and Accounting Officer


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