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  March  31,  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 May 4, 2001 was
5,132,000.

Transitional  Small  Business  Disclosure  Format:  Yes  [ ]      No[X]


<PAGE>
                     CALIFORNIA MOLECULAR ELECTRONICS CORP.

                                      INDEX

PART  I.  FINANCIAL  INFORMATION


ITEM 1.  FINANCIAL STATEMENTS                                        Page
                                                                     ----

Balance Sheets as of March 31, 2001 and December 31, 2000.             2

Statements of Operations for the three months ended March 31, 2001
and 2000.                                                              3

Statements of Cash Flows for the three months ended March 31, 2001
and 2000.                                                              4

Notes to Financial Statements.                                         5

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.                         7

PART II.  OTHER INFORMATION                                           10

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                             10

SIGNATURES                                                            11


                                      -1-
<PAGE>
<TABLE>
<CAPTION>
PART  I.  FINANCIAL  INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS

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

                                    BALANCE SHEET
                                    -------------

                                                          March 31,     December 31,
                                                             2001           2000
                                                         ------------  --------------
                                                         (unaudited)
<S>                                                      <C>           <C>
                                     ASSETS
                                     ------
Current assets:
    Cash                                                 $   242,099   $     120,606
    Employee advance                                          10,000          10,000
    Prepaid expenses                                               -           8,247
                                                         ------------  --------------
      Total current assets                                   252,099         138,853

Equipment, net                                                 4,713           5,167
Other                                                          1,000           1,406
                                                         ------------  --------------
                                                         $   257,812   $     145,426
                                                         ============  ==============

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

Current liabilities:
  Accounts payable and accrued liabilities               $    19,026   $      23,175
  Other payable                                                5,000           5,000
                                                         ------------  --------------
    Total current liabilities                                 24,026          28,175
                                                         ------------  --------------

Stockholders' equity:
  Common stock, no par value:
    Authorized 20 million shares; 5,136,475 and
    5,090,123 issued and outstanding (including
    4,800 treasury shares) at March 31, 2001
    and December 31, 2000, respectively                    2,198,993       1,937,413

  Less: Treasury stock at cost; 4,800 shares at March 31,
    2001 and December 31, 2000, respectively                 (28,800)        (28,800)
  Accumulated deficit                                     (1,936,407)     (1,791,362)
                                                         ------------  --------------
                                                             233,786         117,251
                                                         ------------  --------------
                                                         $   257,812   $     145,426
                                                         ============  ==============
</TABLE>


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

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

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

                                                     Three months ended March 31
                                                     ---------------------------
                                                          2001         2000
                                                       -----------  -----------
<S>                                                    <C>          <C>
Revenue:
   Grant income                                        $        -   $   33,333
   Interest income                                            796        1,896
                                                       -----------  -----------
                                                              796       35,229
                                                       -----------  -----------

Expenses:
   Research and development expenses                       70,405       59,671

   Officers compensation donated to the Company (Note 5)   23,850       47,500

   Selling, general and administrative expenses            51,536       46,924
                                                       -----------  -----------

      Total expenses                                      145,791      154,095
                                                       -----------  -----------

Loss before state income taxes                           (144,995)    (118,866)

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

Net loss                                               $ (145,045)  $ (118,916)
                                                       ===========  ===========



Basic and diluted loss per common share                $    (0.03)  $    (0.02)
                                                       ===========  ===========

Weighted average number of common shares outstanding    5,102,194    5,000,196
                                                       ===========  ===========
</TABLE>


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

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

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

                                                       Three months ended March 31,
                                                       ----------------------------
                                                             2001        2000
                                                          ----------  ----------
<S>                                                       <C>         <C>
Operations:
  Net loss                                                $(145,045)  $(118,916)
  Items not requiring current use of cash:
   Officers compensation, donated to the Company (Note 5)    23,850      47,500
   Depreciation and amortization                                860         131
   Changes in other operating items:
    Employee advances                                             -      (9,605)
    Prepaid expenses                                          8,247       6,493
    Accounts payable and accrued liabilities                 (4,149)      1,329
                                                          ----------  ----------
    Cash used for operating activities                     (116,237)    (73,068)
                                                          ----------  ----------

Financing:
  Issuance of common stock, net of stock issuance expense   184,810     306,418
  Issuance of common stock warrants                          52,920           -
                                                          ----------  ----------
      Cash provided by financing activities                 237,730     306,418
                                                          ----------  ----------

Increase in cash                                            121,493     233,350

Cash at beginning of period                                 120,606      91,993
                                                          ----------  ----------
Cash at end of period                                     $ 242,099   $ 325,343
                                                          ==========  ==========

Supplemental cash flow disclosures:
  Taxes paid                                              $      50   $       -
                                                          ==========  ==========
  Interest paid                                           $      79   $       -
                                                          ==========  ==========
</TABLE>


                 See accompanying notes to financial statements
                                      -4-
<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 three months ended March 31, 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
three months ended March 31, 2001 and 2000, dilutive loss per share excludes the
effect  of  unexercised  options and warrants 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.


                                      -5-
<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  March  31,  2001.  As  required  by the Securities and
Exchange  Commission  accounting rules, in the accompanying financial statements
the  officers'  unpaid  salaries  totaling  $23,850 and $47,500 for the quarters
ended  March  31,  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 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:

     During  the  first quarter of 2001, the Company has issued 46,352 shares of
common  stock  for  net  proceeds after stock issuance expenses of $237,730. The
Company  sold  31,232  shares  under  the public offering at $6.00 per share and
issued 15,120 shares as a result of the exercise of warrants at $3.50 per share.


                                      -6-
<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 out
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.


                                      -7-
<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  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  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 quarter of 2001.

     Research  and  development  ("R&D")  costs were $70,405 and $59,671 for the
quarters  ended March 31, 2001 and 2000, respectively, an increase of $10,734 or
18%.  The  increase  was  primarily related to an increase in R&D related salary
and  wage  expense.

     Officers'  compensation  donated to the Company was $23,850 and $47,500 for
the  quarters ended March 31, 2001 and 2000, respectively, a decrease of $23,650
or  50%,  primarily  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.

     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  preoperating  expenses.  In  the  year  2000,  as the Company earned
revenue,  it  is  no longer considered 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  $51,536  and  $46,924  for  the  quarters  ended  March 31, 2001 and 2000,
respectively,  an  increase  of $4,612 or 10%, primarily related to increases in
rent  and  travel  expenses.


                                      -8-
<PAGE>
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.

     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.


                                      -9-
<PAGE>
CALIFORNIA  MOLECULAR  ELECTRONICS  CORP.

PART  II.  OTHER  INFORMATION

Item  6.  Exhibits  and  Reports  on  Form  8-K

(a)  Exhibits

None.

(b)  Reports  on  Form  8-K.

None.


                                      -10-
<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:  May  11,  2001
---------------------

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

/s/  James  Marek,  Jr.
-----------------------
James  Marek,  Jr.
President  and  Chief  Executive  Officer


                                      -11-
<PAGE>