SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, D.C. 20549
                                FORM 10-QSB


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

               FOR THE QUARTERLY PERIOD ENDED: June 30, 2001
                                    OR

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

          FOR THE TRANSITION PERIOD FROM                TO __________

                      Commission File Number 1-15497

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


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

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

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

Check whether the issuer (1) filed all reports required to be filed by
Sections 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.

YES  [X]   NO [ ]

The number of common shares outstanding at July 10, 2001: 72,305,691
The number of class N shares outstanding at July 10, 2001: 66,291,781





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

                             TABLE OF CONTENTS


PART I - FINANCIAL INFORMATION                                        Page

Item 1.   Financial Statements

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

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

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

          Notes to Condensed Consolidated Financial Statements
          (Unaudited)                                                 6

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

Item 3.   Quantitive and Qualitative Disclosures About Market Risk    12

PART II - OTHER INFORMATION

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

          Signatures                                                  14





                      PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

                  RECYCLENET CORPORATION AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                                (UNAUDITED)

                                                    June 30,   December 31,
                                                        2001          2000
                                                 -----------     ----------
                                  ASSETS
Current Assets
  Cash                                            $  269,694     $   17,505
  Trade accounts receivable, net of $3,661 and
  $6,022 allowance for bad debt, respectively         74,976         72,117
  Inventory                                           61,452              -
      Advances to related party                            -         17,500
                                                  ----------     ----------

      Total Current Assets                           406,122        207,122
                                                  ----------     ----------
Computer Equipment                                    21,372         21,372
   Less accumulated depreciation                     (13,615)        (9,490)
                                                  ----------     ----------
      Net Computer Equipment                           7,757         11,882
                                                  ----------     ----------
Advances to Related Party                             17,500              -

Total Assets                                      $  431,379     $  219,004
                                                  ==========     ==========

                   LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
     Trade accounts payable                       $        -     $    1,569
     Accrued liabilities                               4,500         10,400
     Deferred revenue                                124,258         59,239
                                                  ----------     ----------

      Total Current Liabilities                      128,758         71,208
                                                  ----------     ----------
Stockholders' Equity
   Class N convertible shares (and Class X
     shares of Amalco) - $0.01 par value;
     70,896,789 shares authorized; 66,291,781
     shares and 66,441,781 shares issued and
     outstanding, respectively                        662,918         664,418
   Common shares - $0.01 par value; 79,103,211
     shares authorized; 72,305,692 shares and
     39,655,042 shares issued and outstanding,
     respectively                                     723,056         396,550
   Additional paid-in capital (Discount on
     common shares)                                   (21,435)        196,745
   Accumulated deficit                             (1,061,918)     (1,109,917)
                                                  -----------    ------------
      Total Stockholders' Equity                      302,621         147,796
                                                  -----------    ------------

      Total Liabilities and Stockholders' Equity  $   431,379    $    219,004
                                                  ===========    ============

See the accompanying notes to condensed consolidated financial statements.

                              3



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


<TABLE>
<CAPTION>
                                    For the Three Months           For the Six Months
                                        Ended June 30,                Ended June 30,
                                   ------------------------      ------------------------
                                         2001          2000           2001           2000
                                   ----------     ---------      ---------      ---------
<S>                                <C>            <C>            <C>            <C>
Sales                              $  346,316     $ 607,734      $ 737,057      $ 902,339
Cost of Sales                         181,531       472,767        375,547        646,335
                                   ----------     ---------      ---------      ---------

Gross Profit                          164,785       134,967        361,510        256,004
                                   ----------     ---------      ---------      ---------

Operating Expenses
General and administrative
  expenses                            170,149       117,832        316,010        234,183
Exchange gain                          (8,378)          (76)        (2,499)        (1,751)
                                   ----------     ---------      ---------      ---------
Total Operating Expenses              161,771       117,756        313,511        232,432
                                   ----------     ---------      ---------      ---------

Net Income                         $    3,014     $  17,211      $  47,999      $  23,572
                                   ==========     =========      =========      =========

Basic Income Per Common Share      $        -     $       -      $       -      $       -
                                   ==========     =========      =========      =========

Diluted Income Per Common Share    $        -     $       -      $        -     $       -
                                   ==========     =========      ==========     =========

</TABLE>

See the accompanying notes to condensed consolidated financial statements.

                              4



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


                                             For the Six Months Ended
                                                    June 30,
                                             ------------------------
                                                   2001          2000
                                             ---------      ---------

Cash Flows From Operating Activities
  Net income                                 $  47,999      $  23,572
  Adjustments to reconcile net loss
      to net cash used by operating
      activities:
     Depreciation                                4,125          3,118
     Exchange gain                              (2,499)        (1,675)
  Changes in assets and liabilities:
     Accounts receivable                        (2,859)       (23,823)
             Inventory                         (61,452)             -
     Accounts payable                           (1,569)       (13,124)
     Accrued liabilities                        (5,900)        10,040
     Deferred revenue                           65,019          6,585
                                             ---------      ---------

  Net Cash Provided By (Used in)
    Operating Activities                        42,864          4,693
                                             ---------      ---------

Cash Flows From Investing Activities
  Cash received in acquisition of
    fiberglass.com,inc.                          2,059              -
  Advances to related party                          -         (7,500)
                                             ---------      ---------
   Net Cash Provided by Investing
     Activities                                  2,059         (7,500)
                                             ---------      ---------
Cash Flows From Financing Activities
  Collection of receivable from shareholders
    received in acquisition of
    fiberglass.com,inc.                        104,767              -
                                             ---------      ---------

    Net Cash Provided by Financing
      Activities                               104,767              -
                                             ---------      ---------

Effect of Exchange Rate Changes on Cash         2,499           1,675
                                             --------       ---------

Increase (Decrease) in Cash                   152,189          (1,132)

Cash at Beginning of Period                   117,505           61,167
                                             --------       ----------

Cash at End of Period                        $269,694       $   60,035
                                             ========       ==========

See the accompanying notes to condensed consolidated financial statements.

                              5


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


NOTE 1-ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

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

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

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

NOTE 2-BASIC AND DILUTED INCOME PER COMMON SHARE

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

The  following data shows the amounts used in computing basic  and  diluted
income per share for the three and six months ended June 30, 2001 and  2000
and  the  effect  on  the  weighted-average number of  shares  of  dilutive
potential common stock:


                              6

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

<TABLE>
<CAPTION>
                               For the three Months Ended     For the Six Months Ended
                                      June 30,                   June 30,
                              ---------------------------   ---------------------------
                                      2001           2000           2001           2000
                              ------------   ------------   ------------   ------------
<S>                           <C>            <C>            <C>            <C>
Net income                    $      3,014   $     17,211   $     47,999   $     23,572

Basic Income Per Common Share $          -   $          -   $          -   $          -

Diluted Income Per Common
 Share                        $          -   $          -   $          -   $          -

Weighted-average number of
  common shares used in
  basic income per common
  share calculation             72,305,691     10,753,228     71,932,479     10,698,588

Incremental potentially
  issuable common shares
  from assumed conversion of
  Class N common shares         66,291,781     68,020,988     66,305,870     68,075,628
                              ------------   ------------   ------------   ------------

Weighted-average number of
  common shares and dilutive
  potential common shares used
  in diluted income per
  common share calculation     138,597,472     78,774,216    138,238,349     78,774,216
                              ============   ============   ============   ============
</TABLE>


NOTE 3-ACQUISITION OF FIBERGLASS.COM,INC.

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

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

                              7

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


                                       For the Three        For the Six
                                       Months Ended        Months Ended
                                               2000               2000
                                        -----------         ----------
Sales                                   $   608,906         $  902,227
Net income                                   16,028             14,536
Basic income per common share                     -                  -
Diluted income per common share                   -                  -

NOTE 4-STOCKHOLDERS' EQUITY

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

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

NOTE 5-SEGMENT INFORMATION

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

                                         Portal       Equipment
                                        Services        Sales          Total
                                        --------       --------       -------
For the Six Months Ended June 30, 2001
   Sales                                $362,223       $374,834       $737,057
   Net income (loss)                      48,389           (390)        47,999
   Assets                                356,309         75,070        431,379
For the Six Months Ended June 30, 2000
   Sales                                $256,004       $646,335       $902,339
   Net income (loss)                      24,132           (560)        23,572
   Assets                                114,912         28,790        143,702

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

                              8

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

Cautionary Statement Regarding Forward_Looking Statements
---------------------------------------------------------

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

Overview
--------

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

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

Results of Operations
---------------------

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

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

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


Sales Revenues
                      For the Three Months Ended  For the Six Months Ended
                               June 30,                  June 30,
                      --------------------------  ------------------------
                            2001            2000         2001         2000
                      ----------       ---------    ---------    ---------
     Sales Revenues   $  346,300       $ 607,700    $ 737,100    $ 902,300


Sales  revenues  recorded  for the three months  ended  June  30,  2001  of
$346,300 have decreased $261,400 from $607,700 during the similar period of
2000. Revenues from our web site services of $165,800 were $8,800 over  the
$135,000 recorded in 2000, which shows the slight increase in our web  site
business during the last quarter. Sales in Andela Products of $180,500 were
$292,300  lower than the $472,800 recorded in 2000 which reflects the  more
difficult  business  conditions in 2001 for capital  equipment  commitments
from our customers.

Sales  revenue  of $737,100 for the first six months of 2001 were  $165,200
less  than  the  same  period of 2000.  However,  revenues  in  our  Portal
business increased from $256,000 in 2000 to $362,200  in 2001 reflecting  a
$107,200 or 42% increase. Of this amount RecycleNet sold a license in March
2001  to use our Rhodium WebWeaver ASP Business Package for a one-time  fee
of  $35,000. The remaining $42,200 reflects our continuing  improvement  in
our  portal business over last year's level of business activity.   However
revenue  in  Andela Products declined from $646,300 in 2000 to $374,900  in
2001  reflecting  a  $271,500  or  a 42%  erosion  in  business.   Business
conditions  in  the North American economy for capital equipment  purchases
are  proving  to be difficult and we do not know whether they will  improve
appreciably  in  the coming months.  Our business activity  in  our  portal
business is increasing every month and we hope it will continue during  the
remainder of 2001.

Gross Profit

                      For the Three Months Ended  For the Six Months Ended
                               June 30,                  June 30,
                      --------------------------  ------------------------
                            2001            2000         2001         2000
                      ----------       ---------    ---------    ---------


        Gross Profit  $  164,800       $ 135,000    $  361,500   $ 256,000

Gross  profit of $164,800 in the second quarter of 2001 was $26,800  higher
than  the  $135,000 recorded in the similar period of 2000.  The  company's
gross profit is a direct result of our revenue associated with our web site
activities.  From the sales revenue discussion above, our portal sales have
increased  this  quarter,  and  consequently  our  gross  profit  has  also
increased.

Gross  profit of $361,500 for  the first  six months of 2001 was   $105,500
or 42% above the $256,000 level  in the same period of 2000.  First quarter
results, including the Rhodium WebWeaver license sale of $35,000  led   the
company  off  to a strong start. However, second quarter results  have  not
been  as  strong, reflecting the unfavorable business climate that  we  are
experiencing now.

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

                              10



Operating Expenses

                      For the Three Months Ended  For the Six Months Ended
                               June 30,                  June 30,
                      --------------------------  ------------------------
                            2001            2000         2001         2000
                      ----------       ---------    ---------    ---------


General and
 Administrative
 Expenses             $  170,100       $ 117,800    $ 316,000    $  234,000

General and administrative expenses of $170,100 in the second quarter ended
June30,  2001 were $52,300 over the same period of 2000. Increases  in  ISP
expenses  of  $5,700,  commissions expense of  $1,900,  office  expense  of
$5,600,  professional  fees  of $26,400 and advertising  and  promotion  of
$7,900  accounted for the majority of this increase.  Our general  business
activities  in our portal area are higher in 2001 than in 2000 and  we  are
responding by increasing our commitments to support this business level.

General  and administrative expenses recorded for six months ended  June30,
2001  of $316,000 were higher by $81,800 than the $234,200 recorded in  the
same  period of 2000. ISP expenses have increased by $11,700 as the company
is  now paying costs to support Metalworld and Fiberglass websites.   Sales
commissions paid of $8,500 and royalties of $1,000 associated with the sale
of  our  first  Rhodium WebWeaver in March of 2001 increased  this  expense
category  this year. Office and administrative expenses have  increased  by
$19,400  reflecting two additional people in 2001 that  were  not  employed
during the first half of 2000. Higher costs recorded for professional  fees
of  $51,500 reflected the continued efforts of our accountants and  lawyers
to  answer  the  questions  for the US Securities and  Exchange  Commission
which  we have now completed. Additional costs in advertising and promotion
of  $13,700  reflects  our  increased expenses associated  with  RecycleNet
attending  industry specific trade shows amounted to over  $10,000  in  the
first quarter of 2001 and $8,900 in the second.

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

Net Income

                      For the Three Months Ended  For the Six Months Ended
                               June 30,                  June 30,
                      --------------------------  ------------------------
                            2001            2000         2001         2000
                      ----------       ---------    ---------    ---------

Net Income            $    3,000       $  17,200    $  48,000    $  23,600

Net  income  of $3,000 reported in the second quarter of 2001  reflected  a
$14,000  profit  erosion compared to the similar period of  2000.  Although
gross  profit  has  improved by  $7,800, this increase was  offset  by  the
increase in expenses of $30,300 reflecting our increased commitment to  our
portal business. Business conditions in North America have deteriorated  in
the  second quarter and RecycleNet is also experiencing this effect on  our
business.

Net  income  for  the  first six months ended June 30,  2001  increased  by
$24,400  over the same period of 2000 to $48,000.  As discussed above,  the
sale  in  March  2001  of  our  first Rhodium WebWeaver  license  less  our
commissions  and royalty contributed $25,500 of the net profit  improvement
this  year.  Management  will  be reassessing our  expenditure  commitments
compared  to our sales revenues and will be taking the necessary  steps  to
improve our business position.

                              11

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

The  Company's  cash  position recorded at June 30, 2001  of  $269,700  has
increased $152,200 from the December 31, 2000 cash position of $117,500. In
January of 2001 RecycleNet Corporation purchased Fiberglass.com, inc by the
issuance  of common shares capturing the cash balance of $106,800  in  this
acquisition  as  noted  previously in this  report.   Cash  generated  from
operations  in  the first six months of 2001 of $42,900 was  a  significant
improvement over the cash loss of  $2,900 in the same period of  2000.   We
purchased  our first glass pulverizing machine from Andela Tool & Machinery
for  the  purpose  of  resale or to lease to a customer,  resulting  in  an
inventory  position  of  $61,500.  Also, as  per  our  discussions  in  the
deferred  revenue segment following, the company improved its cash position
by  $64,000 with the prepayment of Internet services by our customers. This
prepayment  of services will reduce our administrative efforts in  accounts
receivable  and  also reduce our bad debt experience thus  freeing  up  our
staff members to concentrate on  sales revenue activities.

The  Company's financial position has strengthened further and the  Company
is  now providing positive cash flows from operating activities. Management
will continue to focus on improving this operating performance and also  to
look  at  opportunities to invest our cash, either internally or externally
to improve shareholder value.

Deferred Revenue

Deferred  revenue  results  from RecycleNet customers  who  pay  for  their
service  purchases in advance, such as quarterly, half year,  or  annually.
RecycleNet  records  the  initial payment  in  deferred  revenue  and  then
recognizes  in each subsequent month that proportion which is  provided  in
services.  Although sales revenues have decreased  in the quarter, we  have
adopted  a sales  policy  that our service will be a fully prepaid service.
During  the last quarter, some of our customers have continued to be  tardy
in  paying  for  their portal services, resulting in RecycleNet  having  to
suspended  them  from our sites for non-payment. This has resulted  in  the
serious  customer  base  providing us with timely payments  to  have  their
accounts brought into a current position or their suspension reversed. This
has  contributed directly to our increased cash position. As  at  June  30,
2001, deferred revenue of $124,258 increased $65,019 over the December  31,
2000  balance  of $59,239 which reflects directly the change in  our  sales
policy.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

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

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

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                        PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

None. Not applicable.



                              13

                                SIGNATURES


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


                                     RecycleNet Corporation


                       By: /s/ Paul Roszel
August 14, 2001        --------------------------------------------------
                       Paul Roszel, President and Chairman of the Board of
                           Directors



                       By: /s/ Richard Ivanovick
August 14, 2001        ---------------------------------------------------
                       Richard Ivanovick, C.A., Chief Financial and
                            Accounting Officer

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