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 September 30, 2002
                               ------------------

[ ] 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 October 26,
2002 was 5,290,821.

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 September 30, 2002 and December 31, 2001.          2

     Statements of Operations for the three and nine months ended
     September 30, 2002 and 2001.                                            3

     Statements of Cash Flows for the nine months ended September 30,
     2002 and 2001.                                                          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


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

ITEM 1. FINANCIAL STATEMENTS

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

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


                                                              September 30    December 31
                                                                  2002           2001
                                                             --------------  -------------
<S>                                                          <C>             <C>
                                                              (unaudited)
                                    ASSETS
                                    ------

Current assets:
  Cash                                                       $       8,040   $     94,375
  Employee advance                                                  19,655         19,655
                                                             --------------  -------------
    Total current assets                                            27,695        114,030

  Equipment, net                                                     3,548          4,670
  Other                                                              1,388          1,388
                                                             --------------  -------------
                                                             $      32,631   $    120,088
                                                             ==============  =============

                   LIABILITIES AND STOCKHOLDERS' DEFICIT
                   -------------------------------------

Current liabilities:
  Accounts payable and accrued liabilities                   $      58,454   $     23,634
  Accrued officer's compensation                                   195,000        136,500
  Loans from officers                                               10,000              -
  Other payable                                                      5,000          5,000
                                                             --------------  -------------
    Total current liabilities                                      268,454        165,134
                                                             --------------  -------------

Stockholders' deficit:
  Preferred stock, no par value:
    Authorized 10 million shares; 39,714 and 33,314
    issued and outstanding at September 30, 2002
    and December 31, 2001                                          232,420        196,381
  Common stock, no par value:
    Authorized 20 million shares; 5,294,281 and
    5,186,886 issued and outstanding (including
    4,800 treasury shares) at September 30, 2002
    and December 31, 2001, respectively                          2,732,282      2,341,088
  Less: Treasury stock at cost; 4,800 shares at September 30,
    2002 and December 31, 2001, respectively                       (28,800)       (28,800)
  Accumulated deficit                                           (3,171,725)    (2,553,715)
                                                             --------------  -------------
                                                                  (235,823)       (45,046)
                                                             --------------  -------------
                                                             $      32,631   $    120,088
                                                             ==============  =============
</TABLE>

                See accompanying notes to financial statements.


                                      -2-
<PAGE>
<TABLE>
<CAPTION>
                                              CALIFORNIA MOLECULAR ELECTRONICS CORP.
                                              --------------------------------------

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

                                                           (UNAUDITED)


                                                         Nine months ended September 30       Three months ended September 30
                                                      -----------------------------------   -------------------------------------
                                                            2002               2001                2002               2001
                                                      ----------------  ------------------  ------------------  -----------------
<S>                                                   <C>               <C>                 <C>                 <C>
Revenue:
  Interest income                                     $           158   $           3,153   $              11   $            996
                                                      ----------------  ------------------  ------------------  -----------------
                                                                  158               3,153                  11                996
                                                      ----------------  ------------------  ------------------  -----------------

Expenses:
  Research and development expenses                           312,659             175,772             204,099             62,042

  Officer's compensation donated to the Company                30,000              30,000              10,000             10,000

  Selling, general and administrative expenses                274,659             294,201              85,047            103,787
                                                      ----------------  ------------------  ------------------  -----------------

      Total expenses                                          617,318             499,973             299,146            175,829
                                                      ----------------  ------------------  ------------------  -----------------

Loss before state income taxes                               (617,160)           (496,820)           (299,135)          (174,833)

Provision for state income taxes                                  850                 877                   -                827
                                                      ----------------  ------------------  ------------------  -----------------

Net loss                                              $      (618,010)  $        (497,697)  $        (299,135)  $       (175,660)
                                                      ================  ==================  ==================  =================


Basic and diluted loss per common share               $         (0.12)  $           (0.10)  $           (0.06)  $          (0.03)
                                                      ================  ==================  ==================  =================

Weighted average number of common shares outstanding        5,224,158           5,127,101           5,255,974          5,140,602
                                                      ================  ==================  ==================  =================
</TABLE>

                See accompanying notes to financial statements.


                                      -3-
<PAGE>
<TABLE>
<CAPTION>
                                   CALIFORNIA MOLECULAR ELECTRONICS CORP.
                                   --------------------------------------

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

                                                (UNAUDITED)


                                                                          Nine months ended September 30
                                                                       ------------------------------------
                                                                             2002               2001
                                                                       -----------------  -----------------
<S>                                                                    <C>                <C>
Operations:
  Net loss                                                             $       (618,010)  $       (497,697)
  Items not requiring current use of cash:
    Officers' compensation, donated to the Company                               30,000             71,550
    Depreciation                                                                  1,122              1,483
    License fees in exchange for stock                                          150,000                  -
    Professional fees in exchange for stock                                      38,970             15,966
    Other fees in exchange for option                                                 -                570
    Compensation paid in stock                                                        -              6,000
    Changes in other operating items:
      Prepaid expenses                                                                -              8,247
      Accounts payable and accrued liabilities                                   34,820             (4,542)
      Accrued officer's compensation                                             58,500                  -
                                                                       -----------------  -----------------
Cash used for operating activities                                             (304,598)          (398,423)
                                                                       -----------------  -----------------

Investments:
  Furniture and fixtures                                                              -             (1,960)
  Other investment                                                                    -               (388)
                                                                       -----------------  -----------------
      Cash used for investing activities                                              -             (2,348)
                                                                       -----------------  -----------------

Financing:
  Issuance of common and preferred stock, net of stock issuance expense         208,263            453,698
  Loans from officers                                                            10,000                  -
                                                                       -----------------  -----------------
      Cash provided by financing activities                                     218,263            453,698
                                                                       -----------------  -----------------

Increase (decrease) in cash                                                     (86,335)            52,927

Cash at beginning of period                                                      94,375            120,606
                                                                       -----------------  -----------------
Cash at end of period                                                  $          8,040   $        173,533
                                                                       =================  =================

Supplemental cash flow disclosures:
  Taxes paid                                                           $            850   $            877
                                                                       =================  =================
  Interest paid                                                        $            354   $            292
                                                                       =================  =================
</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 accounting principles generally accepted in the United States of
America  have  been condensed or omitted pursuant to such rules and regulations.

     The  results of operations for the nine months ended September 30, 2002 are
not  necessarily  indicative  of  the  operating results expected for the entire
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,  2001.

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 - Equipment:

     Equipment is summarized as follows:
                                                  September 30   December 31
                                                      2002           2001
                                                  -------------  ------------
     Computer equipment                           $     9,469    $     9,469
     Less - accumulated depreciation                    5,921          4,799
                                                  -------------  ------------
                                                  $     3,548    $     4,670
                                                  =============  ============


                                      -5-
<PAGE>
NOTE 4 - 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
nine  months ended September 30, 2002 and 2001, dilutive loss per share excludes
the  effect  of  unexercised  options and warrants because the effect would have
been  antidilutive.

NOTE 5 - Agreements:

     On  April  17,  2002,  CALMEC  entered  into  a sublicense agreement with a
company  which  allows the company to use certain technology licensed by CALMEC.
Under  the  agreement,  the  company  shall  use  its  best efforts to introduce
products  and  processes to the commercial market using the licensed technology,
and  CALMEC will receive royalty payments of 10% of the net sales, as defined by
the  agreement,  of  any  product  or process sold by the company which uses the
licensed  technology.

     On  September  4,  2002,  CALMEC  entered  into  a license agreement with a
university  which  provides  the  Company with an exclusive worldwide license to
make,  use  or  sell  products  using  technology  owned by the university.  The
Company  issued  25,000  shares  of  common  stock  to  the  university  and two
individuals,  the  inventors  of  the  technology.  The  Company  reflected  the
issuance  of  common stock in the amount of $150,000 as research and development
costs.

NOTE 6 - Loans from officers:

     In  July  2002,  two  officers  of  the  Company  each loaned $5,000 to the
Company. These loans are interest free and the officers have agreed to waive any
repayment  until  the  Company  has  sufficient  funds  to  repay  the  loans.

NOTE 7 - Stockholders' deficit:

     During  the  first  nine  months  of 2002, warrant holders converted 53,900
warrants  to  shares  of  common  stock  for  net proceeds, after stock issuance
expenses, of $165,334. Of these 53,900 warrants converted to shares, 18,500 were
converted  at  $3.00  per  share  and  35,400 were converted at $3.50 per share.

     On  July 1, 2002, the Company commenced a private placement offering of its
stock.  The  offering  allows  for the sale of up to 100 "Blocks" at $10,000 per
Block.  A  Block  consists  of  1,600 shares of Series B Preferred Stock and one
Rights  Package. A Rights Package consists of (1) Right A, expiring 15 days from
the purchase of the Block, to purchase 3,000 shares of CALMEC's common stock for
$10,000, (2) Right B, expiring 15 days from the exercise of Right A, to purchase
6,000  shares of CALMEC's common stock for $10,000  (available only to those who
have  exercised Right A), and (3) Right C, expiring 15 days from the exercise of
Right  B,  to  purchase  10,000  shares  of  CALMEC's  common  stock for $10,000
(available  only to those who have exercised Right B).  The maximum value of the
offering  is  $4  million, before commissions of 10 percent to be paid to broker
dealers and other offering expenses.  This offering terminated effective October
31,  2002.


                                      -6-
<PAGE>
     On  July  1, 2002, the Company's Board of Directors authorized the issuance
of  up  to  160,000  shares  of  Series B Preferred Stock in connection with the
aforementioned offering.  The Series B Preferred Stock has a conversion price of
$6.25 per share and is convertible at the option of the holder into one share of
CALMEC's  common  stock.  Except  for  the  conversion  price,  the  rights  and
preferences  of  the Series B Preferred Stock are identical to CALMEC's Series A
Preferred  Stock.

     During  the  quarter  ended September 30, 2002, four Blocks were sold. As a
result,  the  Company  issued  6,400 Series B preferred shares and 22,000 common
shares  for  proceeds  of  $80,000.


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.


                                      -7-
<PAGE>
The  Company  continues  to  be  in the initial phase of its existence, and 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, those executive officers currently not receiving their full salaries
will begin receiving full remuneration, 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.


Operations
----------

     Research  and  development  ("R&D") costs were $312,659 for the nine months
ended  September  30,  2002  as  compared  to $175,772 for the nine months ended
September  30, 2001, an increase of $136,887 or 78%. R&D costs were $204,099 for
the  three  months ended September 30, 2002, as compared to $62,042 for the same
period  in  the  prior  year, an increase of $142,057 or 229%.  The increase was
primarily  related to a license agreement entered into by the Company during the
third quarter of 2002, in which the Company issued 25,000 shares of common stock
($150,000),  partially  offset  by  a  decrease  in  R&D related salary and wage
expense.

     Officer's  compensation  donated to the Company was $30,000 for each of the
nine  month  periods  ended September 30, 2002 and 2001, and $10,000 for each of
the  three  month  periods  ended  September  30,  2002  and  2001.

     Selling,  general  and  administrative  costs  consist  primarily  of rent,
travel,  salaries and wages and other administrative expenses, and were $274,659
for  the  nine  months  ended September 30, 2002 as compared to $294,201 for the
nine  months  ended  September  30, 2001, a decrease of $19,542 or 7%.  Selling,
general  and  administrative  costs  were  $85,047  for  the  three months ended
September  30,  2002,  as  compared to $103,787 for the same period in the prior
year,  a  decrease  of  $18,740  or 18%. The decrease was primarily related to a
reduction  in  travel  expense.

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.  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 July 1, 2002, allows for
the  sale of up to 100 "Blocks" at $10,000 per Block.  A Block consists of 1,600
shares  of  Series  B  Preferred Stock and one Rights Package.  A Rights Package
consists  of  (1)  Right  A, expiring 15 days from the purchase of the Block, to
purchase  3,000  shares  of  CALMEC's  common  stock  for  $10,000, (2) Right B,
expiring  15  days  from  the  exercise  of Right A, to purchase 6,000 shares of
CALMEC's  common  stock for $10,000  (available only to those who have exercised
Right  A),  and  (3)  Right C, expiring 15 days from the exercise of Right B, to
purchase  10,000  shares of CALMEC's common stock for $10,000 (available only to
those  who  have  exercised  Right  B).  The maximum value of the offering is $4
million, before commissions of 10 percent to be paid to broker dealers and other
offering  expenses.  This  offering  was  terminated effective October 31, 2002.


                                      -8-
<PAGE>
     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 existing 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

99.1 Certification of James Marek, Jr. Pursuant to 18 U.S.C. Section 1350 as
     Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(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:  November 12, 2002
------------------------

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

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


                                      -11-
<PAGE>