U. S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                  FORM 10 - QSB

(Mark One)

(X)  Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange
     Act of 1934.

               For the quarterly period ended September 30, 1999.

                                       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 0-7441

                           SIERRA MONITOR CORPORATION

        (Exact name of small business issuer as specified in its charter)

              California                                    95-2481914
    (State or other jurisdiction of                     (I.R.S. Employer
     incorporation or organization)                   Identification Number)

                                1991 Tarob Court
                           Milpitas, California 95035
              (address and zip code of principal executive offices)

                                 (408) 262-6611
              (Registrant's telephone number, including area code)

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the  Securities and Exchange Act
of 1934  during the  preceding  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 shares of the issuer's common stock  outstanding,  as of September
30, 1999 was: 10,967,588.

Transitional Small Business Disclosure Format: Yes____ No __ X ___

                                                                    Page 1 of 10

<PAGE>



                          PART I: FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

<TABLE>
                                                     SIERRA MONITOR CORPORATION

                                                           Balance Sheets
                                                             (Unaudited)

<CAPTION>
                                                                                                September 30,           December 31,
                                Assets                                                               1999                  1998
                                                                                                 -----------            -----------
<S>                                                                                              <C>                        <C>
Current assets
        Cash and cash equivalents                                                                $   178,201                393,667
        Short-term investments                                                                          --                  245,522
        Trade receivables, less allowance for doubtful accounts                                    1,329,328              1,123,073
           of $133,236 in 1999 and $125,488 in 1998
        Notes receivable                                                                              28,956                 35,002
        Inventories                                                                                1,108,463                945,189
        Prepaid expenses                                                                             122,838                 94,107
        Deferred income taxes                                                                        205,372                179,636
                                                                                                 -----------            -----------
                            Total current assets                                                   2,973,158              3,016,196
Property and equipment, net                                                                          206,204                232,600
Deferred income taxes                                                                                113,216                113,635
Other assets                                                                                         435,792                345,776
                                                                                                 -----------            -----------
                                                                                                 $ 3,728,370              3,708,207
                                                                                                 ===========            ===========

               Liabilities and Shareholders' Equity
Current liabilities
        Accounts payable                                                                         $   551,601                295,274
        Accrued expenses                                                                             301,814                281,426
        Other current liabilities                                                                     30,766                 56,522
        Income taxes payable                                                                            --                  105,052
                                                                                                 -----------            -----------
                            Total current liabilities                                                884,181                738,274
                                                                                                 -----------            -----------
Shareholders' equity

        Common stock                                                                               3,159,944              3,159,944
        Accumulated deficit                                                                         (272,420)              (136,771)
        Notes receivable from shareholders                                                           (43,335)               (53,240)
                                                                                                 -----------            -----------
                            Total shareholders' equity                                             2,844,189              2,969,933
                                                                                                 -----------            -----------
                                                                                                 $ 3,728,370              3,708,207
                                                                                                 ===========            ===========
<FN>

See the accompanying notes to the financial statements.
</FN>
                                                                                                                        Page 2 of 10
</TABLE>


<PAGE>

<TABLE>

                                                     SIERRA MONITOR CORPORATION

                                                      Statements of Operations
                                                             (Unaudited)
<CAPTION>

                                                                       Three months ended                   Nine months ended
                                                                           September 30,                       September 30,
                                                                      1999              1998              1999               1998
                                                                  -----------       -----------       -----------        -----------
<S>                                                               <C>                <C>               <C>                <C>
Net sales                                                         $ 1,814,432         1,732,956         4,985,171          5,330,495

Cost of goods sold                                                    718,637           655,452         1,941,429          2,191,764
                                                                  -----------       -----------        ----------         ----------

        Gross profit                                                1,095,795         1,077,504         3,043,742          3,138,731
                                                                  -----------       -----------        ----------         ----------

Operating expenses

    Research and development                                          188,508           187,117           591,788            476,948
    Selling and marketing                                             565,888           525,859         1,704,989          1,472,365
    General and administrative                                        321,205           260,351           941,892            816,687
                                                                  -----------       -----------        ----------         ----------
                                                                    1,075,601           973,327         3,238,669          2,766,000
                                                                  -----------       -----------        ----------         ----------
        Income (loss) from operations                                  20,194           104,177          (194,927)           372,731

Other Income                                                             --                --                --               38,349
Interest income                                                         2,641            10,209            15,289             26,103
                                                                  -----------       -----------        ----------         ----------

        Income (loss) before income taxes                              22,835           114,386          (179,638)           437,183

Income tax expense (benefit)                                             --              35,459           (43,989)           135,526
                                                                  -----------       -----------        ----------         ----------

        Net income (loss)                                         $    22,835            78,927          (135,649)           301,657
                                                                  ===========       ===========       ===========        ===========

Net income (loss) per share - basic                               $      0.00              0.01             (0.01)              0.03
Net income (loss) per share - diluted                             $      0.00              0.01             (0.01)              0.03
                                                                  ===========       ===========       ===========        ===========
Weighted average number of shares
used in per share computations

                                                        Basic:     10,967,588        10,690,038        10,967,588         10,700,038
                                                      Diluted:     10,025,745        11,124,810        10,976,588         11,099,772
                                                                  ===========       ===========       ===========        ===========

<FN>
See the accompanying notes to the financial statements.
</FN>
                                                                                                                        Page 3 of 10
</TABLE>


<PAGE>

<TABLE>

                                                     SIERRA MONITOR CORPORATION

                                                      Statements of Cash Flows
                                                             (Unaudited)

<CAPTION>
                                                                          Three months ended                 Nine months ended
                                                                              September 30,                      September 30
                                                                          1999            1998             1999              1998
                                                                       ---------        ---------        ---------        ---------
<S>                                                                    <C>                 <C>            <C>               <C>
Cash flows from operating activities:
  Net income (loss)                                                    $  22,835           78,927         (135,649)         301,657
  Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:
        Depreciation & amortization                                       63,380           40,253          189,269           96,427
        Allowance for doubtful accounts                                    3,210           (2,938)           7,748            1,268
        Deferred income taxes                                               --               --            (25,317)            --
        Changes in operating assets and liabilities:
          Trade receivables and notes receivable                        (353,842)          52,125         (207,957)        (272,757)
          Inventories                                                    (99,509)         (46,635)        (163,274)        (192,494)
          Prepaid expenses                                                 3,779          122,763          (28,731)          28,871
          Accounts payable                                               277,191          (38,331)         256,327          207,536
          Accrued expenses                                               (14,031)         (12,634)          20,388           26,947
          Other current liabilities                                        4,748          (12,354)         (25,756)           3,669
          Income taxes payable                                              --             35,747         (105,052)          91,958
                                                                       ---------        ---------        ---------        ---------
              Net cash provided (used in) by
                operating activities                                     (92,239)         216,923         (218,004)         293,082
                                                                       ---------        ---------        ---------        ---------
Cash flows from investing activities:
  Capital expenditures                                                   (15,519)        (160,071)         (80,252)        (324,363)
  Short term investments                                                    --                 (4)         245,522           (4,607)
  Acquisition of business assets                                            --               --           (171,282)            --
  Other assets                                                              (500)            (457)            (789)            (757)
                                                                       ---------        ---------        ---------        ---------
              Net cash used in investing activities                      (16,019)        (160,532)          (7,367)        (329,727)
                                                                       ---------        ---------        ---------        ---------
Cash flows from financing activities:
 Repayment of shareholder notes receivable                                 3,519            3,343            9,905            6,262
                                                                       ---------        ---------        ---------        ---------
              Net cash provided by financing activities                    3,519            3,343            9,905            6,262
                                                                       ---------        ---------        ---------        ---------
Net increase (decrease) in
  cash and cash equivalents                                             (104,739)          59,734         (215,466)         (30,383)
Cash and cash equivalents at beginning of period                         282,940          207,369          393,667          297,485
                                                                       ---------        ---------        ---------        ---------
Cash and cash equivalents at end of period                             $ 178,201          267,103          178,201          267,103
                                                                       =========        =========        =========        =========
Supplemental disclosure of cash flow information:
        Cash paid during the period - income taxes                     $    --               --            122,488           27,737

<FN>
See the accompanying notes to the financial statements
</FN>
                                                                                                                        Page 4 of 10
</TABLE>


<PAGE>


                           SIERRA MONITOR CORPORATION

                        Notes to the Financial Statements

                               September 30, 1999

Basis of Presentation

The unaudited financial statements have been prepared by the Company pursuant to
the rules and  regulations of the Securities  and Exchange  Commission.  Certain
information and footnote  disclosures  normally included in financial statements
prepared in accordance with generally accepted  accounting  principles have been
omitted  pursuant to such SEC rules and regulations;  nevertheless,  the Company
believes that the disclosures are adequate to make the information presented not
misleading.  These  financial  statements and the notes hereto should be read in
conjunction  with the financial  statements  and notes  thereto  included in the
Company's  Annual  Report on Form  10-KSB for the year ended  December  31, 1998
which was filed March 30, 1999. In the opinion of the Company,  all adjustments,
consisting  of normal  recurring  adjustments  necessary  to present  fairly the
financial  position of Sierra  Monitor  Corporation as of September 30, 1999 and
the results of its  operations  and cash flows for the quarter then ended,  have
been  included.  The  results  of  operations  for the  interim  period  are not
necessarily indicative of the results for the full year.

Accounting Policies

There have been no changes in accounting policies used by the Company during the
quarter ended September 30, 1999.

Summary of Business

      Sierra Monitor Corporation ("SMC" or the "Company") was founded in 1978 to
design and develop hazardous gas monitoring  devices for protection of personnel
and facilities in industrial work places. In addition to gas monitoring systems,
the Company also manufactures  microprocessor  based systems used to monitor and
control environmental conditions in small, remote,  structures used for cellular
and hard wire telephone equipment. The Company also manufactures a product known
as a Communications Bridge. The Communications Bridge enables electronic control
systems to communicate with each other,  generally over Ethernet,  even when the
systems use non-compatible data storage and transfer protocols.

      Products  manufactured  by the Company are sold  primarily  to oil and gas
drilling and refining companies,  chemical plants, waste-water treatment plants,
telecommunications  companies,  building  control systems  integrators,  parking
garages and landfill rehabilitation projects.

Inventories

A summary of inventories follows:

                                          September 30,          December 31,
                                             1999                   1998
                                         -----------             ---------
                  Raw materials            $ 417,224             $ 348,032
                  Work-in-process            468,801               411,846
                  Finished goods             222,438               185,311
                                         -----------             ---------
                                         $ 1,108,463             $ 945,189
                                         ===========             =========

                                                                    Page 5 of 10
<PAGE>

<TABLE>
Net Income (Loss) per share

      In accordance with SFAS No. 128, Earnings Per Share, basic EPS is computed
using the  weighted  average  number of common  shares  outstanding  during  the
period. Diluted EPS is computed using the weighted-average  number of common and
dilutive common equivalent shares outstanding during the period. Dilutive common
equivalent  shares  consist of common  stock  issuable  upon  exercise  of stock
options using the treasury  stock method.  No  adjustments  to earnings / (loss)
were made for purposes of per share calculations. The Company has reported a net
loss for the nine month period ended  September 30, 1999. As a result 97,656 and
101,040 shares have been excluded from the calculation of diluted loss per share
for the three month  period  ended June 30, 1999 and the six month  period ended
June 30, 1999,  respectively.  The following is a  reconciliation  of the shares
used in the  computation  of basic and  diluted  EPS for the nine  month  period
ending September 30, 1999 and 1998, respectively:
<CAPTION>

                                                      3 months ended    9 months ended    3 months ended    9 months ended
                                                         9/30/99           9/30/99          9/30/98           9/30/98

<S>                                                       <C>              <C>             <C>               <C>
Basic EPS - weighted-average number of common
    shares outstanding                                    10,967,588       10,967,588      10,690,038        10,700,038

Dilutive stock options                                        57,887               -          434,772           399,734
                                                     ----------------- ---------------- ----------------- -----------------

Diluted EPS - dilutive potential common shares            11,025,745      10,967,588       11,124,810        11,099,772
                                                     ================= ================ ================= ==================
</TABLE>

      For the three month  period ended  September  30, 1999 options to purchase
300,000  shares  of  common  stock  were  outstanding  but not  included  in the
computation  of diluted EPS because the option  exercise  price was greater than
the average market price of common shares.

                                                                    Page 6 of 10
<PAGE>


This report contains  forward-looking  statements  within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934.  Actual  results could differ  materially  from those  projected in the
forward-looking  statements  as a result of the risk factors set forth below and
elsewhere in this report. The Company's future operating results may be affected
by a number of factors,  including  general economic  conditions in both foreign
and domestic markets, cyclical factors affecting the Company's industry, lack of
growth in the  Company's  end-markets,  and the  Company's  ability to  develop,
manufacture,  and sell  both  new and  existing  products  at a  profitable  yet
competitive price.

The industry in which the Company competes is highly competitive and the Company
expects  such  competition  to  continue in the  future.  Most of the  Company's
competitors  are  larger  than  the  Company  and  have  substantially   greater
financial,  technical,  marketing and manufacturing resources. While the Company
has invested in new products,  there can be no assurance that it can continue to
introduce  new products on a timely  basis or that certain of its products  will
not be rendered non competitive or obsolete by its competitors.

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

Results of Operations

      For the three months ended September 30, 1999, Sierra Monitor  Corporation
(the "Company")  reported net sales of $1,814,432 compared to $1,732,956 for the
three months ended September 30, 1998. For the nine-month period ended September
30, 1999, net sales were  $4,985,171  compared with $5,330,495 in the prior year
nine-month  period.  The  results for the third  quarter of 1999  represent a 5%
increase  from the same period in the prior year.  The increase is primarily due
to an increase  in sales of  microprocessor  based  environment  controllers  to
telephone company applications. The increase in sales of environment controllers
more than offset slower sales of the Company's gas monitoring systems. The lower
sales for the nine month year to date period,  compared to the prior year is due
to lower sales of gas  monitoring  systems and lower sales of spare parts to the
U. S. Navy.

      Gross profit of $1,095,795 for the three-month  period ended September 30,
1999 was 60% of sales compared to $1,077,504 or 62% of sales, in the same period
in the previous year. The gross profit for the nine-month period ended September
30, 1999 was $3,043,742 or 61% of sales, compared to $3,138,731 or 59% of sales,
in the same period in the previous year. The gross margin for the three and nine
month periods in 1999 are consistent  with historical  levels.  The gross margin
for the nine month period in the 1998 was lower than historical levels primarily
due to a discount applied to a single large  international  order shipped in the
second quarter of that year.

      Expenses  for  research  and   development,   which  include  new  product
development and engineering to sustain existing  products,  were $188,508 or 10%
of sales,  for the  three-month  period  ending  September  30, 1999 compared to
$187,117,  or 11% of sales, in the comparable  period in 1998. In the nine-month
periods  ending  September  30,  1999  and  September  30,  1998,  research  and
development  expenses  were  $591,788 or 12% of sales,  and  $476,948,  or 9% of
sales, respectively. The Company intends to continue development of an extensive
library  of  software  products  known as  Protocol  Drivers  which  are sold in
conjunction with the hardware product known as the Communications Bridge. Due to
the demand for new  drivers and the cost of their  development,  the Company has
begun a program  to charge  customers

                                                                    Page 7 of 10
<PAGE>

for some of the cost of the  development.  Fees  paid for the  development  will
offset some of the Company's current respective engineering costs.

       Selling and marketing expenses for the three-month period ended September
30, 1999 were $565,888 or 31% of sales,  compared to $525,859,  or 30% of sales,
in the comparable  period in the prior year.  For the nine-month  periods ending
September 30, 1999 and September 30, 1998,  selling and marketing  expenses were
$1,704,989 or 34% of sales, and $1,472,365, or 28% of sales,  respectively.  The
increase in selling  costs in the current nine month period is, in part,  due to
the  addition,  since June 1998,  of two sales  professionals  to allow  focused
selling efforts in the telephone industry. Commissions paid to independent sales
representatives  were also  higher in both  periods in 1999.  Commissions,  as a
percentage  of  sales,  vary  periodically   based  on  product  mix,  level  of
discounting and channels of distribution.

      General and administrative expenses increased to $321,205 or 18% of sales,
for the  three-month  period ended  September 30, 1999 from $260,351,  or 15% of
sales,  in  the  three-month  period  ended  September  30,  1998.  General  and
administrative  expenses  increased  to  $941,892  or  19%  of  sales,  for  the
nine-month  period ended  September 30, 1999 from $816,687,  or 15% of sales, in
the nine-month period ended September 30, 1998.  Increases in salary and benefit
expenses contributed to the higher general and administrative expenses.

      Net income,  after interest and provision for income taxes,  for the three
months ended  September  30, 1999 was $22,835 or 1% of net sales,  compared with
$78,927,  or 5% of net sales,  in the three months ended September 30, 1998. Net
loss for the  nine-month  period ended  September 30, 1999 was $135,649 or 3% of
net sales, compared with net income of $301,657, or 6% of net sales, in the same
period in the prior  year.  The lower net  income in the third  quarter  of 1999
compared with the same period in 1998 is due,  primarily,  to higher fixed costs
including  certain selling and marketing and  administrative  expenses.  The net
loss in the nine month period,  compared with a net profit in the same period in
the  previous  year is due to lower sales  levels  combined  with  higher  fixed
expenses.  In the first half of 1998 the Company had  experienced  a significant
increase  in  net  sales  without  substantial  offsetting  increases  in  fixed
expenses. Subsequent additions of new employees, resulting in higher expenses in
the nine  months of 1999,  were  directed  toward  efforts  to  generate  future
increases in sales. The increase in sales in the third quarter of 1999, compared
with the same period of 1998 is partially a result of those actions.

      In August 1999,  the Company  occupied a newly  renovated  three  thousand
square foot  leased  office and  manufacturing  facility  located in Ft.  Myers,
Florida under a three year lease. The Company had previously  occupied a smaller
facility  under a month to month  lease.  All interior  improvements  to the new
facility were paid by the owner and all costs of the relocation were expensed in
the third quarter.  This manufacturing  facility is presently  underutilized and
will  provide  the company  with  future  additional  factory  capacity  for the
manufacture of products for telephone company market.

Liquidity and Capital Resources

      During the period ended September 30, 1999, the Company's  working capital
decreased by $188,945  from  December 31, 1998.  At September  30, 1999 cash and
cash  equivalents  and  short-term  investments,  totaled  $178,201  compared to
$639,189 at December 31, 1998.  Net trade  accounts  receivable  have  increased
$206,255  since  the  beginning  of the year,  and  inventories  have  increased
$163,274.  Working  capital  also  decreased  due  to  the  previously  reported
acquisition of specified assets

                                                                    Page 8 of 10

<PAGE>

of Montech  Holdings  Inc. for $171,828  completed in the first half of 1999 and
due to other capital equipment purchases.

      The Company  currently has no current or long term balance due on its line
of credit  with its  commercial  bank.  The  Company  believes  that its current
capital  resources,  which include  cash,  accounts  receivable  and the line of
credit are sufficient to support existing and anticipated levels of business for
at least the next twelve months.

Year 2000 Planning

      Management  implemented an enterprise-wide  program in 1997 to prepare for
the year 2000 "date change". The program includes  verification of the Company's
Information  Technology (IT) systems, all microprocessor based products,  vendor
capabilities and various internal systems.

       The Company's  entire IT system was replaced in September  1998.  Because
the  replacement  of the  Company's IT system was a planned  event,  and was not
accelerated,  the Company is not  considering  that cost as a separate year 2000
expense.  The cost of  validation  of the  year  2000  compliance  of the new IT
system, was a year 2000 expense.

      Microprocessor based products manufactured by the Company have been tested
for  operation  through the data change  period.  Also,  clock chips and related
circuits have been verified by design engineering.  As a result of testing,  the
Company anticipates that none of its products will cause a year 2000 problem for
users.  Since the Company's  products are  frequently  employed as components in
larger monitoring and control systems it is not possible for the Company to test
customer systems for  compatibility.  The Company has advised its customers that
system level testing is beyond the scope of the Company's  verification and that
customers should perform independent verification testing.

      All  materials  vendors have been  surveyed  for their  ability to provide
materials  and to continue  their  operations  beyond the date  change.  Vendors
received a  questionnaire  which was  evaluated to  determine if further  action
should be taken by the Company.  The Company presently  believes that all of its
materials  and  services  vendors  will be able to operate and supply  materials
beyond the date change.

      Internal systems generally include planning and tracking systems developed
using software  packages  supplied by third parties.  All essential systems have
been tested to insure that they operate and calculate  correctly beyond the date
change.

      The total cost of the preparation and  implementation  of the verification
program and corrective actions, all of which are now substantially  complete, is
estimated  to be less than  $100,000 and has been funded  through the  Company's
operating cash flow. A significant  portion of these costs were not  incremental
costs to the Company, but rather represented  redeployment of existing technical
and  personnel  resources.  The costs of any  remaining  corrective  actions  is
estimated  to be less than  $5,000  which  will,  likewise,  be  funded  through
operating cash flows.

      Although there are presently no known year 2000 events which would have an
impact on the Company's  ability to continue its current  operations,  there are
unknown  factors,  such as loss of utility supplies or banking  problems,  which
could  have a broad  impact  on the  Company  and  its  customers.  The  Company
currently does not believe it practical to develop  contingency plans related to
these risks.

                                                                    Page 9 of 10
<PAGE>



                           PART II: OTHER INFORMATION

Item 1.    Legal Proceedings - N/A

Item 2.    Changes in Securities - N/A

Item 3.    Defaults Upon Senior Securities - N/A

Item 4.    Submission of Matters to a Vote of Security Holders - N/A

Item 5.    Other Information - N/A

Item 6.    Exhibits and Reports on Form 8-K

           a.     Exhibits.

                           27.0     Financial Data Schedule

           b.     Reports on Form 8-K - None

                                    SIGNATURE

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.

                                             SIERRA MONITOR CORPORATION

                                             Registrant

Date:      November 12, 1999        By:      /S/ GORDON R. ARNOLD
                                           -------------------------------------
                                                 Gordon R. Arnold
                                                 President
                                                 Chief Financial Officer


                                                                   Page 10 of 10