UNITED  STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM  10-QSB

(Mark  One)
[X]QUARTERLY  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
   1934

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

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

For the transition  period  from  __________  to  _________

Commission  file  number  333-82493
                          ---------

California  Molecular  Electronics  Corp.
-----------------------------------------
(Exact  name  of  small  business  is  here  as  specified  in  its  charter)

Arizona
-------
(State  or  other  jurisdiction  of  incorporation  or
organization)

86-0888087
----------
(IRS  Employer  Identification  No.)

50  Airport  Parkway,  San  Jose,  CA  95110
--------------------------------------------
(Address  of  principal  executive  offices)

(408)  451-8404
---------------
(Issuer's  telephone  number)

Check  whether  the  registrant  (1)  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  report(s),  and  (2)  has been subject to such filing requirements for the
past  90  days.

Yes[X]     No[_]

The  number  of shares outstanding of the issuer's common stock on July 24, 2001
was  5,139,250.


<PAGE>
CALIFORNIA  MOLECULAR  ELECTRONICS  CORP.

INDEX

PART  I.  FINANCIAL  INFORMATION

                                                                            Page
                                                                            ----
     ITEM 1.  FINANCIAL  STATEMENTS

     Balance Sheets as of December 31, 2000 and June 30, 2001                  2

     Statements of Operations for the three and six months ended June
     30, 2001 and 2000                                                         3

     Statement of Stockholders' Equity for the three and six months ended
     June 30, 2001                                                             4

     Statements of Cash Flows for the six months ended June 30, 2001 and
     2000                                                                      5

     Notes to Financial Statements                                             6


     ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
     FINANCIAL CONDITION AND RESULTS OF OPERATIONS.                            9


PART II.  OTHER INFORMATION                                                   12

     SIGNATURES                                                               13


<PAGE>
<TABLE>
<CAPTION>
PART  I.  FINANCIAL  INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS

                       CALIFORNIA MOLECULAR ELECTRONICS CORP.
                       --------------------------------------

                                    BALANCE SHEET

                                                          June 30,     December 31,
                                                            2001           2000
                                                        ------------  -------------
                                                         (unaudited)
<S>                                                     <C>           <C>
                                     ASSETS
                                     ------

Current assets:
  Cash                                                  $   224,319   $     120,606
  Employee advance                                           10,000          10,000
  Prepaid expenses                                                -           8,247
                                                        ------------  --------------
     Total current assets                                   234,319         138,853

Equipment, net                                                4,464           5,167
Other                                                         1,000           1,406
                                                        ------------  --------------
                                                        $   239,783   $     145,426
                                                        ============  ==============

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

Current liabilities:
  Accounts payable and accrued liabilities              $    15,228   $      23,175
  Other payable                                               5,000           5,000
                                                        ------------  --------------
     Total current liabilities                               20,228          28,175
                                                        ------------  --------------

Stockholders' equity:
  Common stock, no par value:
     Authorized 20 million shares; 5,144,050 and
     5,090,123 issued and outstanding (including
     4,800 treasury shares) at June 30, 2001
     and December 31, 2000, respectively                  2,253,528       1,937,413
  Paid-in capital                                               570
  Preferred stock, no par value:
     Authorized 10 million shares; 18,250 and               107,658               -
     none issued and outstanding at June 30, 2001
     and December 31, 2000, respectively
                                                                                  -
  Less: Treasury stock at cost; 4,800 shares at June 30,
     2001 and December 31, 2000, respectively               (28,800)        (28,800)
  Accumulated deficit                                    (2,113,401)     (1,791,362)
                                                        ------------  --------------
                                                            219,555         117,251
                                                        ------------  --------------
                                                        $   239,783   $     145,426
                                                        ============  ==============
</TABLE>


                See accompanying notes to financial statements.
                                      -2-
<PAGE>
<TABLE>
<CAPTION>
                                  CALIFORNIA MOLECULAR ELECTRONICS CORP.
                                  --------------------------------------

                                         STATEMENT OF OPERATIONS
                                         -----------------------

                                               (UNAUDITED)

                                                     Six months ended June 30  Three months ended June 30
                                                     ------------------------  --------------------------
                                                         2001         2000          2001         2000
                                                     -----------  -----------  -----------  ------------
<S>                                                    <C>          <C>          <C>          <C>
Revenue:
  Grant income                                         $        -   $   66,666   $       -    $   33,333
  Interest income                                           2,157        5,256        1,362        3,360
                                                       -----------  -----------  -----------  -----------
                                                            2,157       71,922        1,362       36,693
                                                       -----------  -----------  -----------  -----------

Expenses:
  Research and development expenses                       141,032      155,145       70,625       95,474

  Officers' compensation donated to the Company (Note 5)   47,700       78,700       23,850       31,200

  Selling, general and administrative expenses            135,413      158,275       83,881      111,351
                                                       -----------  -----------  -----------  -----------

      Total expenses                                      324,145      392,120      178,356      238,025
                                                       -----------  -----------  -----------  -----------

Loss before state income taxes                           (321,988)    (320,198)    (176,994)    (201,332)

Provision for state income taxes                               50           50            -            -
                                                       -----------  -----------  -----------  -----------

Net loss                                               $ (322,038)  $ (320,248)  $ (176,994)  $ (201,332)
                                                       ===========  ===========  ===========  ===========


Basic and diluted loss per common share                $    (0.06)  $    (0.06)  $    (0.03)  $    (0.04)
                                                       ===========  ===========  ===========  ===========
Weighted average number of common shares outstanding    5,120,239    5,004,602    5,138,085    5,064,789
                                                       ===========  ===========  ===========  ===========
</TABLE>


                See accompanying notes to financial statements.
                                      -3-
<PAGE>
<TABLE>
<CAPTION>
                                             CALIFORNIA MOLECULAR ELECTRONICS CORP.
                                             --------------------------------------

                                               STATEMENT OF STOCKHOLDERS' EQUITY
                                               ---------------------------------

                                                         Common stock              Preferred stock
                                               ---------------------------------  ------------------
                                                                       Paid -in                        Treasury    Accumulated
                                                Shares      Amount      Capital   Shares    Amount      Stock        Deficit
                                               ---------  -----------  ---------  -------  ---------  ----------  -------------
<S>                                            <C>        <C>          <C>        <C>      <C>        <C>         <C>
Balance at December 31, 2000                   5,085,323  $1,937,413   $       -        -  $      -   $ (28,800)  $ (1,791,362)

     Stock issued in public offering              31,232     187,392           -        -         -           -              -

     Exercise of warrants                         15,120      52,920           -        -         -           -              -

     Stock issuance costs                              -      (2,582)          -        -         -           -              -

     Officers' compensation donated to the             -      23,850           -        -         -           -              -
          Company (Note 5)

     Net loss                                          -           -           -        -         -           -       (145,045)
                                               ---------  -----------  ---------  -------  ---------  ----------  -------------

Balance at March 31, 2001                      5,131,675   2,198,993           -        -         -     (28,800)    (1,936,407)

    Series A Preferred stock issued in                             -               18,250   109,500           -              -
          private placement offering

    Exercise of warrants                           7,000      28,000           -        -         -           -              -

    Stock issued in exchange for services            575       3,450           -        -         -           -

    Grant of option in exchange for services           -           -         570        -         -           -              -

    Stock issuance costs                               -        (765)          -        -    (1,842)          -              -

    Officers' compensation donated to the              -      23,850           -        -         -           -              -
          Company (Note 5)

    Net loss                                           -           -           -        -         -           -       (176,994)
                                               ---------  -----------  ---------  -------  ---------  ----------  -------------

Balance at June 30, 2001                       5,139,250  $2,253,528   $     570   18,250  $107,658   $ (28,800)  $ (2,113,401)
                                               =========  ===========  =========  =======  =========  ==========  =============

                                                 Total
                                               ----------
<S>                                            <C>
Balance at December 31, 2000                   $ 117,251

     Stock issued in public offering             187,392

     Exercise of warrants                         52,920

     Stock issuance costs                         (2,582)

     Officers' compensation donated to the        23,850
          Company (Note 5)

     Net loss                                   (145,045)
                                               ----------

Balance at March 31, 2001                        233,786

    Series A Preferred stock issued in           109,500
          private placement offering

    Exercise of warrants                          28,000

    Stock issued in exchange for services          3,450

    Grant of option in exchange for services         570

    Stock issuance costs                          (2,607)

    Officers' compensation donated to the         23,850
          Company (Note 5)

     Net loss                                   (176,994)
                                               ----------

Balance at June 30, 2001                       $ 219,555
                                               ==========
</TABLE>


                See accompanying notes to financial statements.
                                      -4-
<PAGE>
<TABLE>
<CAPTION>
                            CALIFORNIA MOLECULAR ELECTRONICS CORP.
                            --------------------------------------

                                    STATEMENT OF CASH FLOWS
                                    -----------------------

                                          (UNAUDITED)
                                          -----------

                                                                       Six months ended June 30,
                                                                      --------------------------
                                                                           2001        2000
                                                                        ----------  ----------
<S>                                                                     <C>         <C>
Operations:
  Net loss                                                              $(322,038)  $(320,248)
  Items not requiring current use of cash:
  Officers' compensation, donated to the Company (Note 5)                  47,700      78,700
  Depreciation and amortization                                             1,109         263
  Legal fees in exchange for stock                                          3,450      18,258
  Other fees in exchange for option                                           570           -
  Changes in other operating items:
     Shareholder advances                                                       -     (10,000)
     Prepaid expenses                                                       8,247        (954)
     Accounts payable and accrued liabilities                              (7,948)      3,512
                                                                        ----------  ----------
     Cash used for operating activities                                  (268,910)   (230,469)
                                                                        ----------  ----------

Investments:
  Furniture and fixtures                                                        -      (4,458)
                                                                        ----------  ----------
     Cash used by financing activities                                          -      (4,458)
                                                                        ----------  ----------

Financing:
Issuance of common and preferred stock, net of stock issuance expense     291,703     467,126
Exercise of common stock warrants                                          80,920           -
                                                                        ----------  ----------
     Cash provided by financing activities                                372,623     467,126
                                                                        ----------  ----------

Increase in cash                                                          103,713     232,199

Cash at beginning of period                                               120,606      91,993
                                                                        ----------  ----------
Cash at end of period                                                   $ 224,319   $ 324,192
                                                                        ==========  ==========

Supplemental cash flow disclosures:
  Taxes paid                                                            $      50   $       -
                                                                        ==========  ==========
  Interest paid                                                         $     190   $       -
                                                                        ==========  ==========
</TABLE>


                See accompanying notes to financial statements.
                                      -5-
<PAGE>
                     CALIFORNIA MOLECULAR ELECTRONICS CORP.
                     --------------------------------------

                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------


NOTE  1  -  Basis  of  presentation:

     The  financial  statements  included  herein  for  California  Molecular
Electronics Corp. ("CALMEC" or the "Company") have been prepared by the Company,
without  audit  pursuant  to  the  rules  and  regulations of the Securities and
Exchange  Commission.  In  management's  opinion,  the  interim  financial  data
presented  includes  all  adjustments  (which  include  only  normal  recurring
adjustments) necessary for a fair presentation. Certain information and footnote
disclosures  normally  included  in  financial statements prepared in accordance
with  generally  accepted  accounting  principles have been condensed or omitted
pursuant  to  such  rules  and  regulations.

     The  results  of  operations for the six months ended June 30, 2001 are not
necessarily  indicative  of the operating results expected for the entire fiscal
year.  The  financial  statements  included herein should be read in conjunction
with other documents the Company files from time to time with the Securities and
Exchange  Commission,  including  the  Company's Form 10-KSB for the fiscal year
ended  December  31,  2000.

NOTE  2  -  Use  of  estimates  and  reclassifications:

     The  preparation  of  financial  statements  requires  management  to  make
estimates  and  assumptions  that  affect  the amounts reported in the financial
statements  and  accompanying  notes.  Actual  results  could  differ from those
estimates.

     Certain  reclassifications  have  been  made  to  the  prior year financial
statements  to  conform  with the current year financial statement presentation.
Such  reclassifications  had  no  effect  on  net income as previously reported.

NOTE  3  -  Loss  per  share:

     Basic  and dilutive loss per common share is calculated by dividing the net
loss for the period by the average number of common shares outstanding.  For the
six  months  ended  June 30, 2001 and 2000, dilutive loss per share excludes the
effect of convertible preferred stock and options, because the effect would have
been  antidilutive.

NOTE  4  -  Leases:

     The  Company  had  entered  into a cost reimbursable contract with San Jose
State  University  Foundation  ("Foundation")  for the period from April 1, 2000
through  March  31,  2001,  which has been extended through March 31, 2002.  The
contract  includes  advisory  services  to  be  provided  by  the San Jose State
University Department of Chemistry, facilities, supplies and equipment use.  The
Foundation  shall  be  reimbursed  for  costs  incurred  in  providing  the
aforementioned  items  not to exceed a maximum amount of $90,658 over the period
of  the  contract.  The  Company  also  leases  office  space  in  Arizona.


                                      -6-
<PAGE>
NOTE  5  -  Related  party  transactions:

     CALMEC's  three officers have devoted 100% of their time to the business of
the  Company since their hire in 1997. Planned annual remuneration for the three
officers  is as follows:  $40,000 - Chairman and Treasurer; $110,000 - President
and  Chief  Executive  Officer;  and  $120,000  -  Executive  Vice President and
Secretary.  The  officers  had elected to forego their salaries through December
31,  1999,  and  certain  officers  have continued to forego all or a portion of
their salaries through June 30, 2001. As required by the Securities and Exchange
Commission  accounting  rules,  in  the  accompanying  financial  statements the
officers'  unpaid  salaries  totaling $23,850 and $31,200 for the quarters ended
June  30, 2001 and 2000, respectively, are reflected as compensation expense and
a credit to common stock, as the Company does not intend to repay such forfeited
salaries  in  the  future. Effective February 2000, the Executive Vice President
and  Secretary  began  to receive a salary for his services. Effective May 2000,
the  President and Chief Executive Officer ("CEO") began to receive a portion of
his  salary  in  cash  ($1,050  per week) and 250 stock options per week with an
exercise  price  of  $6.00  per  share  ("Rolling  Option").  When  the Board of
Directors determines at some point in the future that the Company is able to pay
full  cash compensation to the CEO, the CEO has a right to no longer receive 250
stock  options  per  week  and require the Company to issue him shares of common
stock  or  pay  him  $6.00  per share, or a combination of the two, based on the
number  of  unexercised  shares  under  the  Rolling  Option.

NOTE  6-  Grant:

     During  the  first  quarter  of 2000, the Company received a grant from The
National Science Foundation in the amount of $100,000, to be paid in three equal
installments.  The  grant  was  made  in  support of research to demonstrate the
feasibility  of  the  unique  Chiropticene  (TM)  molecular  switch.  The  first
installment of $33,333 was received in January 2000, and was recognized as grant
income  during  the  quarter  ended  March  31,  2000. The second installment of
$33,333  was  received  in April 2000, and was recognized as grant income during
the  quarter ended June 30, 2000. The third and final installment of $33,334 was
received  in  the  fourth  quarter  of  2000.  The  grant has been recognized in
earnings  in  the  period in which the related expenditures were incurred by the
Company.

NOTE  7  -  Stockholders'  Equity

     Commencing  January  26,  2001,  as  an  inducement  for warrant holders to
exercise  their  warrants,  existing warrant holders were able to exercise their
warrants  at  a  price  of  $3.50 a share before March 1, 2001 and at a price of
$4.00  a  share  after March 1, 2001, but before April 30, 2001. After April 30,
2001, the exercise price of the warrants returned to $5.00 a share. If a warrant
holder  exercised  all  of  their  warrants prior to April 30, 2001, the Company
issued  the  warrant  holder  new  warrants  in the same number of shares as the
original  warrant at an exercise price of $3.25 a share and expiring on November
30,  2001.  Warrant holders who obtained these warrants expiring on November 30,
2001  and  exercise  them  will  be issued another and final warrant in the same
number of shares as the original warrant with an exercise price of $3.00 a share
and  expiring  on  May  31,  2002.


                                      -7-
<PAGE>
     On  March  25,  2001,  the Company commenced a private placement which will
attempt  to  sell 200,000 units at $6.00 per unit.  A unit would be comprised of
one  share  of  Series  A  Preferred  Stock,  one  warrant  for one common share
exercisable  through  October  31,  2001  at $2.50 per share, and one warrant to
purchase  an additional common share at $3.50 per share, through April 30, 2002.
During  the  quarter  ended  June  30,  2001,  the Company sold 18,250 units for
$109,500.

     The  Series A Preferred Stock has a conversion price of $6.00 per share and
is  convertible at the option of the holder into one share of common stock.  The
conversion  price  of the Series A Preferred Stock is subject to adjustment from
time  to time upon certain events, such as common stock dividends.  The Series A
Preferred Stock outstanding will automatically be converted into common stock at
the  then  effective  conversion  price  (a)  immediately upon the closing of an
underwritten  public  offering  pursuant  to an effective registration statement
under  the  Securities  Act  of 1933, as amended, covering the offer and sale of
capital  stock of the Company in which the proceeds received by the Company, net
of  underwriting  discounts and commissions, equal or exceed $15 million, or (b)
immediately  upon the vote of a majority of the shares of the Series A Preferred
Stock  outstanding  on  the date of such vote.  In the event of any voluntary or
involuntary  liquidation,  dissolution  or winding up of the Company, holders of
the  Series  A  Preferred Stock then outstanding are entitled to be paid, out of
the assets of the Company available for distribution to its stockholders, before
any  payments  are  to  be  made  to  holders  of  the  Company's  common stock.

      On  May 1, 2001 the Company granted to a non-employee an option, under the
CALMEC's  1997 Stock Option Plan, to purchase 634 shares of the Company's common
stock  at an exercise price of $5.10 per share, which represents 85% of the fair
market  value  of  a share of common stock at the date of grant as determined by
the Company's Board of Directors.  The fair value of the option at date of grant
totaled  $570, which is reflected in selling, general and administrative expense
and  additional  paid-in  capital  on  the  accompanying  financial  statements.


                                      -8-
<PAGE>
CALIFORNIA  MOLECULAR  ELECTRONICS  CORP.

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


FORWARD-LOOKING  STATEMENTS

From  time  to time, statements made by California Molecular Electronics Corp.'s
("CALMEC"  or  the  "Company")  employees  or  information  included in CALMEC's
filings with the Securities and Exchange Commission (including this Form 10-QSB)
may contain statements that are not historical facts, so called "forward-looking
statements,"  which  are  subject  to  risks  and uncertainties that could cause
actual  results  to  differ  materially.  Forward-looking  statements  are  made
pursuant  to  the  safe  harbor  provisions of the Private Securities Litigation
Reform  Act  of  1995.  When  used in this Form 10-QSB, the terms "anticipates,"
"expects,"  "estimates,"  "believes,"  and other similar terms as they relate to
CALMEC  or  its  management  are  intended  to  identify  such  forward-looking
statements.  For  example,  statements  made  herein  relating  to  acquiring
intellectual  property,  marketing intellectual property to potential customers,
maintaining commercial acceptance of our products, and anticipated growth of our
target  markets  are  forward-looking  statements. Because these forward-looking
statements  involve  risk  and  uncertainties,  actual  results  could  differ
materially  from  those expressed or implied by these forward-looking statements
for a number of reasons, including those discussed in the section entitled "Risk
Factors" of CALMEC's Form SB-2 filed with the Securities and Exchange Commission
on  January 31, 2000. Readers are cautioned not to place undue reliance on these
forward-looking  statements,  which  speak  only  as  of the date hereof. CALMEC
undertakes  no  obligation  to  update  or  revise  these  statements.


OVERVIEW

CALMEC  was  formed to engage primarily in the business of producing and selling
products  and  services  related  to  the  new  technological field of molecular
electronics.  Molecular  electronics is the technology of using single molecules
to  form  components  of  electronic  devices.

The  Company  continues to be in the initial phase of its existence, and through
December 31, 1999, CALMEC's three officers had elected to forego their salaries.
Commencing  February  2000,  the  Executive  Vice  President and Secretary began
receiving  remuneration  for  his services and the President and Chief Executive
Officer  began  to  receive  a  portion  of his salary commencing May 2000.  The
Company will transition from the initial phase to the operational phase when the
Board  of Directors has determined sufficient capital has been accumulated to do
so.  At  that  time, all employees and executive officers will receive salaries,
additional  space will be leased, capital equipment will be purchased, and other
operating  expenses  will  be  incurred.  Prior to that time, activities will be
restricted  to  low  cost  activities that will keep the Company within its cash
resources.


                                      -9-
<PAGE>
In  the  second  quarter  of  1999,  the  Company started paying salaries to two
chemists  to  perform research. Also in the second quarter of 1999, CALMEC began
leasing  lab  space  from  San  Jose State University for the purpose of housing
these  chemists  and  developing  Chiropticene (TM) demonstration chemistry. The
lease ran through March 31, 2000, and the Company has renegotiated with San Jose
State  University to extend the lease until March 31, 2001, and then again until
March  31,  2002.

On  January 31, 2000, CALMEC filed a Form SB-2, Registration Statement under the
Securities Act of 1933, with the Securities and Exchange Commission ("SEC").  On
February  7,  2000,  the  Registration  Statement  became  effective  and CALMEC
commenced its sale of up to 1,000,000 shares of common stock at $6.00 per share.
CALMEC  planned  to  raise  $6  million  with  this  offering, before payment of
estimated offering expenses of $50,000.  Subsequent to the effective date of the
Registration  Statement through February 28, 2001, CALMEC sold 120,239 shares of
its  common  stock,  for  a  total  aggregate  price  of  $721,434.  The Company
terminated  the  sale  of  its  common stock under the Registration Statement on
February  28,  2001.

Operations
----------

     The  Company  was in the development stage during 1999, and had no revenues
from  operations. During the first quarter of 2000, the Company received a grant
from  The  National Science Foundation in the amount of $100,000, which was paid
in  three  equal  installments.  The grant supported research to demonstrate the
feasibility  of  the  unique  Chiropticene  (TM)  molecular  switch.  The  first
installment of $33,333 was received in January 2000, and was recognized as grant
income  during  the  quarter  ended  March  31,  2000. The second installment of
$33,333  was  received  in April 2000, and was recognized as grant income during
the  quarter ended June 30, 2000. The third and final installment of $33,334 was
recognized  during  the fourth quarter of 2000. The grant has been recognized in
earnings  in  the  period in which the related expenditures were incurred by the
Company.  No  income  other  than  interest income was recorded in the first and
second  quarters  of  2001.

     Research  and  development  ("R&D")  costs were $141,032 for the six months
ended  June  30,  2001 as compared to $155,145 for the six months ended June 30,
2000,  a  decrease of $14,113 or 9%. R&D costs were $70,625 for the three months
ended  June  30,  2001,  as compared to $95,474 for the same period in the prior
year,  a  decrease  of  $24,849 or 26%.  The decrease was primarily related to a
decrease  in  R&D  related  salary  and  wage  expense.

     Officers'  compensation  donated to the Company was $47,700 and $78,700 for
the six months ended June 30, 2001 and 2000, respectively, a decrease of $31,000
or  39%. Officers' compensation donated to the Company was $23,850 for the three
months  ended  June  30, 2001, as compared to $47,500 for the same period in the
prior  year,  a  decrease  of  $23,650 or 50%, entirely related to the fact that
certain  of  the  officers began receiving payment for all or a portion of their
salary  during  the  course  of  2000.


                                      -10-
<PAGE>
     In  1999,  the Company was still considered to be in the development stage,
and  costs other than R&D and Officers' compensation donated to the Company were
considered to be preoperating expenses.  During the year 2000 the Company earned
revenue,  and  therefore is no longer considered to be in the development stage,
and  costs  other than R&D and Officers' compensation donated to the Company are
recorded  as  selling,  general  and administrative costs.  Selling, general and
administrative  costs consist primarily of rent, travel and other administrative
expenses,  and were $131,963 and $158,275 for the six months ended June 30, 2001
and  2000,  respectively,  a  decrease  of  $26,312 or 17%. Selling, general and
administrative  costs  were $80,431 and $111,351 for the three months ended June
30, 2001 and 2000, respectively, a decrease of $30,920 or 28%.  The decrease was
primarily  related  to  decreases  in advertising expense and professional fees.

Liquidity  and  Capital  Resources
----------------------------------

     The full extent of CALMEC's future capital requirements and the adequacy of
its  available  funds  will  depend  on  many  factors,  not all of which can be
accurately  predicted.  Although no assurance can be given, the Company believes
it  can  continue  to operate in its present status for at least the next twelve
months.  After  terminating its sale of common stock effective February 28, 2001
under  its  public  offering  which  became  effective  on February 7, 2000, the
Company has undertaken additional and new activities to develop certain products
using the Company's technology.  The Company is aggressively pursuing industrial
and  venture capital funds, as well as a private placement offering, in order to
develop  this  technology.  The  private placement, which commenced on March 25,
2001,  will  attempt  to  sell 200,000 units at $6.00 per unit.  A unit would be
comprised  of  one share of Series A Preferred Stock, one warrant for one common
share  exercisable  through October 31, 2001 at $2.50 per share, and one warrant
to  purchase  an  additional  common share at $3.50 per share, through April 30,
2002.  As  of  June  30,  2001,  the Company has sold 18,250 units for $109,500.

     In  the event that additional capital is required, CALMEC may seek to raise
that  capital  through  public  or  private  equity  or debt financings.  Future
capital  funding  transactions  may  result  in  dilution  to  stockholders.

     There  can  be  no  assurance  that additional capital will be available on
favorable  terms, if at all.  CALMEC's inability to obtain additional capital on
acceptable  terms  could  limit  its  ability  to  meet  its  plan of operation.

Hiring  of  employees
---------------------

     CALMEC will transition from its initial phase to its operational phase when
its  accumulated  cash  balances  permit  it  to do so according to the business
judgment of management. At that time, employees currently working without pay or
for partial pay will begin receiving full compensation.  Regardless of when that
time  occurs,  the Company has already hired and is supporting the lab work of a
chemist,  and  is  paying  one  of the executive officers full compensation, and
another  executive  officer  a  portion  of  his  compensation.


                                      -11-
<PAGE>
CALIFORNIA  MOLECULAR  ELECTRONICS  CORP.

PART  II.  OTHER  INFORMATION

Item  4.  Submission  of  Matters  to  a  Vote  of  Security  Holders

     On  March  25,  2001, the Company held a Special Meeting of Shareholders to
vote  on  a proposed amendment to the Articles of Incorporation that would allow
the  Company to issue preferred shares of stock.  Present at the Special Meeting
were  4,395,257  of  the  5,131,675  outstanding  shares  of  common stock.  All
4,395,257  shares  present  voted  in  favor  of  the  proposed  amendment.

Item  6.  Exhibits  and  Reports  on  Form  8-K

(a)  Exhibits

None.

(b)  Reports  on  Form  8-K.

None.


                                      -12-
<PAGE>
CALIFORNIA  MOLECULAR  ELECTRONICS  CORP.

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

Date:  August  14,  2001
------------------------

California  Molecular  Electronics  Corp.
-----------------------------------------
(Registrant)


James  Marek,  Jr.
President  and  Chief  Executive  Officer


                                      -13-
<PAGE>