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

                                   Form 1O-QSB

                                   (check 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, 2001

            |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                            THE EXCHANGE ACT OF 1934

                        Commission File Number 333-72405

                            R-TEC TECHNOLOGIES, INC.
        (Exact name of small business issuer as specified in its charter)

            New Jersey                                    22-3615979
  (State or other jurisdiction                 (IRS Employer Identification No.)
of incorporation or organization)

                       37 Ironica Road, Flanders, NJ 07836
                    (Address of principal executive offices)

                                 (973) 252-5233
                         (Registrant's telephone number)

Check  whether  the  registrant  (1) filed all  reports  required to be filed by
Section  13 or 15(d) of the  Exchange  Act during the past 3 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 |_|

State the share  outstanding of each of the issuer's class of common equity,  as
of the latest practicable date:

                  Class                 Outstanding as of June 30, 2001
               Common Stock                        3,501,279

            Transmittal Small Business Disclosure Format (check one):

                                 Yes |_| No |X|

<PAGE>

PART I.

ITEM I. FINANCIAL STATEMENTS

                            R-TEC TECHNOLOGIES, INC.
                           CONSOLIDATED BALANCE SHEET
                                   (Unaudited)
                                                                   September 30,
                                                                        2001
                                                                   -------------
                                     ASSETS

Current assets
  Cash and cash equivalents                                         $     1,704
  Accounts receivable                                                     2,648
  Stockholder loan receivable                                            15,000
  Prepaid expenses                                                        1,591
                                                                    -----------
         Total current assets                                            20,943
                                                                    -----------

Equipment, net                                                           13,632
                                                                    -----------

Other assets
  Patent, net                                                           738,026
  Deposits                                                                5,500
                                                                    -----------
         Total other assets                                             743,526

                                                                    -----------
Total Assets                                                        $   778,101
                                                                    ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued expenses                             $   154,384
  Notes payable                                                         274,285
                                                                    -----------
         Total current liabilities                                      428,669
                                                                    -----------

Commitments and contingencies (Note 3)

Stockholders' equity
  Common stock, par value $.00001 per
    share, 50,000,000 shares authorized,
    3,501,279 shares issued and outstanding                                  35
  Additional paid-in capital                                          2,273,714
  Accumulated deficit                                                (1,924,317)
                                                                    -----------
         Total stockholders' equity                                     349,432

                                                                    -----------
Total Liabilities and Stockholders' Equity                          $   778,101
                                                                    ===========

                 See accompanying notes to financial statements.


                                       2
<PAGE>

                            R-TEC TECHNOLOGIES, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                     Nine Months Ended                    Three Months Ended
                                                                       September 30,                         September 30,
                                                                  2001               2000               2001               2000
                                                               -----------        -----------        -----------        -----------
<S>                                                            <C>                <C>                <C>                <C>
Revenue                                                        $    39,848        $    57,476        $        72        $    38,515

Cost of revenues                                                    42,070             20,914               --                9,881
                                                               -----------        -----------        -----------        -----------

Gross profit (loss)                                                 (2,222)            36,562                 72             28,634

Selling, general and administrative expenses                       448,925            515,984            155,255            170,323
                                                               -----------        -----------        -----------        -----------

Loss from operations                                              (451,147)          (479,422)          (155,183)          (141,689)
                                                               -----------        -----------        -----------        -----------

Other income (expenses)
  Other income                                                        --               20,332               --               15,161
  Interest expense                                                 (13,161)            (7,779)            (3,642)              (744)
                                                               -----------        -----------        -----------        -----------
     Total other income (expenses)                                 (13,161)            12,553             (3,642)            14,417

Net loss                                                       $  (464,308)       $  (466,869)       $  (158,825)       $  (127,272)
                                                               ===========        ===========        ===========        ===========

Net loss per common share                                      $      (.14)       $      (.19)       $      (.05)       $      (.04)
                                                               ===========        ===========        ===========        ===========

Weighted average common shares outstanding                       3,341,250          2,502,876          3,419,340          3,198,360
                                                               ===========        ===========        ===========        ===========
</TABLE>


                                       3
<PAGE>

                            R-TEC TECHNOLOGIES, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                Increase (Decrease) In Cash and Cash Equivalents
                                   (Unaudited)

                                                         Nine Months Ended
                                                   ----------------------------
                                                          September 30,
                                                      2001              2000
                                                   -----------      -----------
Cash flows from operating activities
  Net loss                                         $  (464,308)     $  (466,869)
                                                   -----------      -----------
  Adjustments to reconcile net loss
    to net cash used in operating
    activities:
    Unreimbursed expenses contributed
      to capital by stockholders                          --              1,584
    Stock issued for services                             --              3,000
    Salaries contributed by stockholders                  --             26,001
    Depreciation and amortization                       50,722           44,038
    Decrease (increase) in accounts
      receivable                                         3,728          (20,617)
    Decrease (increase) in inventory                    30,882          (53,005)
    Decrease (increase) in prepaid
      expenses                                           5,981          (12,083)
    Increase in other assets                              --             (3,500)
    Increase (decrease) in accounts
      payable and accrued expenses                      78,986         (110,649)
                                                   -----------      -----------
          Total adjustments                            170,299         (125,231)
                                                   -----------      -----------
      Net cash used in operating
        activities                                    (294,009)        (592,100)
                                                   -----------      -----------
Cash flows from investing activities
  Patent costs                                            --             (3,700)
  Purchase of equipment                                   --             (6,706)
                                                   -----------      -----------
      Net cash used in investing
        activities                                        --            (10,406)
                                                   -----------      -----------
Cash flows from financing activities
  Decrease in deferred offering costs                     --             25,526
  Proceeds from notes payable                          214,885             --
  Repayments of notes payable                          (66,600)        (465,000)
  Decrease in due to stockholders                      (15,000)        (252,416)
  Proceeds from sale of stock                          150,889        1,334,555
                                                   -----------      -----------
      Net cash provided by financing
        activities                                     284,174          642,665
                                                   -----------      -----------
Net decrease in cash and cash
  equivalents                                           (9,835)          40,159
Cash and cash equivalents, beginning
  of period                                             11,539              448
                                                   -----------      -----------
Cash and cash equivalents, end
  of period                                        $     1,704      $    40,607
                                                   ===========      ===========
Supplemental disclosures of cash
  flow information
  Cash paid during the period
    for interest                                   $      --        $     4,750
Supplemental disclosures of noncash
  investing and financing activities
  Issuance of common stock for
    repayment of debt                                     --             30,000
  Issuance of common stock in
    satisfaction of obligation                            --            428,000
  Issuance of common stock for
    offering costs                                        --               --

                 See accompanying notes to financial statements.


                                       4
<PAGE>

                            R-TEC TECHNOLOGIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2001

The information  presented herein as of September 30, 2001, and for the nine and
three months ended September 30, 2001 and 2000, is unaudited.

(1) Basis of Presentation:

The accompanying financial statements of R-Tec Technologies, Inc. and subsidiary
(the  Company)  have  been  prepared  in  accordance  with  generally   accepted
accounting   principles  for  interim   financial   information   and  with  the
instructions to Form 10-QSB and Rule 10-01 of Regulation S-X. Accordingly,  they
do not include  all of the  information  and  footnotes  required  by  generally
accepted accounting principles for complete financial statements. In the opinion
of  management,  all  adjustments  (consisting of normal  required  adjustments)
considered necessary for a fair presentation have been included.

Operating  results  for the  nine  months  ended  September  30,  2001,  are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 2001. For further  information,  refer to the financial  statements
and  footnotes  included in the  Company's  annual report of Form 10-KSB for the
year ended December 31, 2000.

(2) Going Concern:

As shown in the accompanying  financial  statements,  the Company incurred a net
loss of $464,308 during the nine months ended September 30, 2001, and as of that
date, the Company's current liabilities exceeded its current assets by $407,726.
Those factors create an uncertainty about the Company's ability to continue as a
going concern.  Management of the Company is reducing expenses and attempting to
increase revenues to return the Company to a profitable position.  Additionally,
the Company continues to pursue  relationships  with strategic  partners who can
assist the Company with marketing,  sales and financing  issues.  The ability of
the Company to continue as going  concern is dependent on the Company  achieving
these plans. The financial  statements do not include any adjustments that might
be necessary if the Company is unable to continue as a going concern.

(3) Commitments and Contingencies:

The Company is the  defendant  and  plaintiff  in a lawsuit  with a vendor.  The
vendor  alleges  unpaid  amounts due by the Company for services  rendered.  The
Company has countersued for breach of contract and damages. The Company believes
the vendor's  suit is without  merit and is  vigorously  defending its position,
however  there is no  guarantee  of a  favorable  outcome.  The  Company has not
recorded any potential liability from this matter in the accompanying  financial
statements.

(4) Net Loss Per Common Share:

Net loss per common share is computed in  accordance  with the  requirements  of
Statement  of  Financial  Accounting  Standards  No.  128 (SFAS  128).  SFAS 128
requires net loss per share  information to be computed using a simple  weighted
average of common shares outstanding during the periods presented.


                                       5
<PAGE>

                            R-TEC TECHNOLOGIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2001

(5) Segments:

The Company has two segments,  gas-detecting paints and household products.  The
following  reflects  financial  information about the segments as of and for the
nine months ended September 30, 2001 and 2000:

                                        2001                     2000
                               ----------------------    ----------------------
                                 Paints     Household                 Household
                                 Paints      Products      Paints      Products
                               ---------    ---------    ---------    ---------
Total assets                   $ 750,651    $  19,450    $ 855,333    $  94,450
                               ---------    ---------    ---------    ---------
Revenues                       $     450    $  39,398    $    --      $  57,476
                               ---------    ---------    ---------    ---------
Loss from operations           $(444,491)   $ (19,817)   $(448,180)   $ (18,689)
                               ---------    ---------    ---------    ---------

(6) Stock Transactions:

During March 2001,  the Company sold 150,000  shares of  restricted  stock to an
individual  for $75,000.  Related to this sale, the Company issued 15,000 shares
of restricted stock valued at $7,500 as a finder's fee to an investment company.

The Company entered into an agreement to sell up to 1,750,000  restricted shares
of common stock under Regulation S promulgated under the Securities Act of 1933,
as amended,  to persons  located in Pacific  Rim  countries.  The  Company  will
receive 35% to 45% of the closing  "asked" price as reported on the OTC Bulletin
Board on the date each share is sold. During May and June 2001, the Company sold
127,544  shares of restricted  stock for $46,225.  During  September  2001,  the
Company sold 37,080 shares of restricted stock for $29,664.

Item 2. Management Discussion and Analysis of Financial Statements

OVERVIEW  Since  inception,  R-Tec  has  been  engaged  in the  acquisition  and
development  of patented  technology,  arranging  for  potential  suppliers  and
distribution  channels and raising capital.  From inception through December 31,
1999,  the  Company  issued  2,916,666  shares  of  stock to its  founders.  The
Company's  registration  statement  was effective  November 12, 1999,  and sales
commenced on January 7, 2000.  R-Tec's initial public offering was for 1,250,000
shares of common  stock to raise a maximum  of  $10,000,000.  The  Company  sold
164,480 shares and raised $1,315,840.

The Company entered into an agreement to sell up to 1,750,000  restricted shares
of common stock under Regulation S promulgated under the Securities Act of 1933,
as amended,  to persons  located in Pacific  Rim  countries.  The  Company  will
receive  35% to 45% of the closing  asked price as reported on the OTC  Bulletin
Board on the date each share is sold. During May and June 2001, the Company sold
127,544  shares of  restricted  stock for  $46,225.  During  September  2001 the
Company sold 37,080 shares of restricted stock for $29,664.  In order to achieve
profitable operations, we will have to successfully manufacture,  distribute and
commercialize our initial products. We will also have to secure all intellectual
property  rights.  For these  reasons it is difficult  for R-Tec to forecast our
revenue or earnings accurately. We believe that period-to-period  comparisons of
our  operating  results  may not be  meaningful.  As a result  of our  extremely
limited  operating  history,  we do not  have  historical  financial  data for a
significant number of periods on which to base planned operating  expenses.  Our
expense levels are based upon our expectations


                                       6
<PAGE>

concerning future revenue.  Thus, quarterly revenue and results of operation are
difficult to project.

PLAN OF OPERATION

Two-Phase  Business Plan Our business plan is based on implementing our strategy
in two phases:

o Phase 1 - Establish  Manufacturing  and Distribution  Relationships  and Begin
Distribution of Three Initial Products, and

o Phase 2 - Expand Product Lines.

The key elements of each phase of our strategy are described below:

Phase 1 -  Establish  Manufacturing  and  Distribution  Relationships  and Begin
Distribution  of the  Three  Initial  Products  Manufacturing  and  Distribution
Relationships.

One of  R-Tec's  Phase 1 goals is to  establish  beneficial  relationships  with
strategic  manufacturing and distribution partners.  With this strategy, we hope
to  eliminate  the  need to  build a  large  and  costly  production  and  sales
infrastructure  and  to  benefit  from  the  inclusion  of our  products  in our
partners' marketing efforts.

In June,  2000, we began sales of our Ripefully Yours product,  which delays the
decay of refrigerated  fruits and vegetables.  We received minimal revenues from
the sale of Ripefully  Yours in the third  quarter of this year.  We  anticipate
that the majority of the  Company's  revenues will be from the sale of Ripefully
Yours.  We  continue  to  develop a  anti-microbial  filter and have filed for a
patent on its chemical composition.

FORWARD-LOOKING  STATEMENTS All statements  other than  statements of historical
fact in this report are  "forward-looking  statements" as defined in the Private
Securities  Litigation Reform Act of 1995, and are based on management's current
expectations  of the Company's near term results,  based on current  information
available and  pertaining to the Company.  The Company  assumes no obligation to
update  publicly  any  forward-looking  statement.  Actual  results  may  differ
materially  from  those  projected  in  the  forward-looking  statements.  These
forward-looking  statements involve risks and uncertainties,  including, but not
limited to, the  following:  demand for the  Company's  protective  coatings and
preservative product;  production and pricing levels of important raw materials;
difficulties or delays in the development,  production, testing and marketing of
products; and product margins and customer product acceptance.

Part II - OTHER INFORMATION

Item 2. Changes in Securities and Use of Proceeds

None

Item 6. Exhibits and Reports on Form 8-K

None


                                       7
<PAGE>

                                   SIGNATURES

In accordance with the requirements of the Securities  Exchange Act of 1934, the
Registrant  caused  this  report to be signed on its behalf by the  undersigned,
thereunto duly authorized.

                                       R-TEC TECHNOLOGIES, INC.

Date: November 14, 2001                By: /s/ Philip Lacqua
                                           ------------------------
                                           Philip Lacqua, President


                                       8