SECURITIES AND EXCHANGE COMMISSION

                            Washington, D. C. 20549


                                   FORM 10-Q


                  QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

       For Quarter Ended September 30, 1997 Commission File Number 0-9998


                          THE METAL ARTS COMPANY, INC.
             (Exact name of registrant as specified in its charter)

          New York                                      06-0945588
          --------                                      ----------
 (State or other jurisdiction of                       (IRS Employer
 incorporation or organization)                        Identification No.)

1 American Center, Geneva, New York                     14456-1188
-----------------------------------                     ----------
(Address of principal executive offices)                (Zip 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 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 common stock, $.01 par value, outstanding at September
30, 1997 was 7,407,402.







                               Page 1 of 12 Pages
                           Exhibit Index is on Page 2




<PAGE>




                          THE METAL ARTS COMPANY, INC.
                          ----------------------------

                                   I N D E X
                                   ---------


Part I               Financial Information:

                     Consolidated Condensed Balance Sheets,
                     September 30, 1997 and June 30, 1997.           4 and 5

                     Consolidated condensed Statements of
                     Operations, three months ended September 30,
                     1997 and 1996.                                        6

                     Consolidated Condensed Statement of
                     Cash Flows, three months ended
                     September 30, 1997 and 1996.                          7

                     Notes to Consolidated Condensed
                     Financial Statements.                                 8

                     Management's Discussion and Analysis
                     of Financial Condition and Results
                     of Operations.                                        9

Part II              Other Information                                    10








                                       (2)





<PAGE>









                          PART I FINANCIAL INFORMATION
               ---------------------------------------------------



































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<PAGE>



<TABLE>
<CAPTION>



                          THE METAL ARTS COMPANY, INC.
                          ----------------------------

                     CONSOLIDATED CONDENSED BALANCE SHEETS
                     -------------------------------------

                                  (UNAUDITED)

ASSETS
                                                           9/30/97        06/30/97
                                                           -------        --------
Current Assets:
<S>                                                     <C>            <C>        
           Cash                                         $    73,766    $    53,241
           Trade accounts receivable - net                  246,626        223,791
           Current portion of due from NYSERDA               10,000         32,501
           Due from former subsidiary - net                   1,362          2,862
           Current portion of deferred tax asset             26,600         26,600
           Prepaid expenses and other current assets         19,525          8,364
                                                         -------------------------
                                                            377,879        347,359

PROPERTY, PLANT AND EQUIPMENT                               931,002        929,629
           Less accumulated depreciation                   (492,569)      (469,469)
                                                         -------------------------
                                                            438,433        460,160
OTHER ASSETS
           Due from shareholders                                  0         13,009
           Cash value of life insurance                       7,893          7,893
           Operating rights - net                            16,750         16,750
           Debt issuance costs - net                         10,622         10,622
           Deferred tax asset, net of current portion       178,300        178,300
           Other assets                                      52,696         30,543
                                                         -------------------------
                                                            266,261        257,117
                                                         -------------------------

TOTAL ASSETS                                            $ 1,082,573    $ 1,064,636
                                                         =========================


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<PAGE>



                          THE METAL ARTS COMPANY, INC.
                          ----------------------------

                     CONSOLIDATED CONDENSED BALANCE SHEETS
                     -------------------------------------

                                  (UNAUDITED)

                                  (CONTINUED)

               LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)


                                                      9/30/97           6/30/97
                                                      -------           -------
                                                                    
CURRENT LIABILITIES                                                 
                                                                    
           Current portion of long-term debt         $   56,613        $  56,613
           Accounts payable - trade                     204,552          220,809
           Accrued expenses                              18,268            8,207
           Accrued payroll and related taxes             17,250           21,702
           Accrued commissions                           33,933           34,401
             Deferred revenue                            12,500                0
                                                    ----------------------------
                                                        343,116          341,732
                                                                    
LONG-TERM LIABILITIES                                               
           Long-term debt, net of current portion       338,329          348,332
           Other long-term liability                    243,222          243,222
           Deferred tax liability                        14,800           14,800
                                                    ----------------------------
                                                        596,351          606,354
                                                                    
MINORITY INTEREST IN SUBSIDIARY                         153,831          142,181
                                                                    
STOCKHOLDERS' EQUITY                                                
Common stock- $.01 par value, 15,000,000 shares                     
authorized; issued and outstanding; 7,407,402 at                    
Sept. 30, 1997 and 7,407,402 at June 30, 1997            74,074           74,074
     Paid-in capital in excess of par value           2,407,188        2,407,188
     Accumulated deficit                             (2,491,987)      (2,506,893)
                                                    ----------------------------
                                                        (10,725)         (25,631)
                                                    ----------------------------
TOTAL LIABILITIES AND                                               
STOCKHOLDER'S EQUITY                                $ 1,082,573      $ 1,064,636
                                                    ============================
</TABLE>                                                             

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<PAGE>



                          THE METAL ARTS COMPANY, INC.
                CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

                                  (UNAUDITED)

                                           THREE MONTHS ENDED
                                             SEPTEMBER 30,
                                           1997           1996
                                           ----           ----

SALES - NET                            $   471,006    $   407,276

COST OF SALES                             (354,630)      (336,037)
                                        --------------------------
GROSS MARGIN                               116,376         71,239

SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES                    (81,846)       (59,748)
RESEARCH AND DEVELOPMENT                         0         12,517
                                        --------------------------

OPERATING INCOME (LOSS)                     34,530         24,008

INTEREST EXPENSE                            (8,054)        (9,658)
INTEREST INCOME                                 81            541
MINORITY INTEREST IN INCOME
OF SUBSIDIARY                              (11,650)        (9,936)
                                        --------------------------
                                           (19,623)       (19,053)
                                        --------------------------
NET INCOME (LOSS)
FOR THE PERIOD                         $    14,907    $     4,955
                                        ==========================
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES
OUTSTANDING                              7,407,402      7,307,402

EARNINGS PER SHARE OF
COMMON STOCK:
    Net income (loss) for the period   $      0.00    $      0.00
                                        ==========================








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<PAGE>
<TABLE>
<CAPTION>


                          THE METAL ARTS COMPANY, INC.
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                                              THREE MONTHS ENDED
                                                                SEPTEMBER 30,
                                                              1997           1996  
                                                              ----           ----  

CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                         <C>         <C>      
     Net income (loss) for the period                       $ 14,907    $   4,955
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS)
TO NET CASH PROVIDED BY OPERATING ACTIVITIES
     Rent expense offset against advances to 
       former subsidiary                                       1,500        1,500
     Depreciation and amortization                            23,100       23,100
     Minority interest in income of subsidiary                 1,650        9,936
     Change in operating accounts:
          Accounts receivable                                   (334)     (20,321)
          Prepaid expenses and other                         (33,315)       4,460
          Accounts payable                                   (16,257)     (21,123)
          Accrued expenses                                    10,061        9,605
          Accrued payroll and commissions                     (4,920)      (1,681)
            Deferred revenue                                  12,500            0
                                                            ---------------------
                                                              18,892       10,431
CASH FLOWS FROM INVESTING ACTIVITIES
     Capital expenditures                                     (1,373)      (8,417)
     Repayment of advance to shareholder                      13,009            0
                                                            ---------------------
                                                               1,636       (8,417)
CASH FLOWS FINANCING ACTIVITIES
     Payments on long term debt                              (10,003)     (10,003)
                                                            ---------------------

NET INCREASE IN CASH                                          20,525       (7,990)

CASH - BEGINNING                                              53,241      112,215
                                                            ---------------------

CASH ENDING                                                 $ 73,766    $ 104,225
                                                             ====================
SUPPLEMENTAL CASH FLOW INFORMATION
     Cash Paid for interest expense                         $  8,054    $   9,658
                                                             ====================

SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
     Accounts payable-trade staisfied                       $      0    $       0
     Common stock issued                                           0            0
     Cash paid                                              $      0    $       0
                                                             ====================

</TABLE>

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<PAGE>



                          THE METAL ARTS COMPANY, INC.

              Notes to Consolidated Condensed Financial Statements

1. These statements should be read in conjunction with the audited financial
statements and the notes thereto and with Management's Discussion and Analysis
of Financial Condition and Results of Operations included in the Company's Form
10-K for the fiscal year ended June 30, 1997. In the opinion of management, the
accompanying consolidated condensed financial statements contain all adjustments
of a normal recurring nature necessary for the fair presentation of the
Company's financial position as of Sept. 30, 1997 and the results of operations
for the three months ended Sept.
30, 1997and 1996

2. The results of operations for the three months ended Sept. 30, 1997 are not
necessarily indicative of the results to be expected for the full year.

3. Earnings (loss) per share of common stock is computed on the weighted average
number of shares outstanding during the three months ended Sept. 30, 1997 and
1996. The weighted average number of shares outstanding at the end of each
period is determined by totaling the number of shares outstanding at the end of
each month in the period and dividing the sum by the number of months in the
period.
















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<PAGE>



                          THE METAL ARTS COMPANY, INC.
                          ----------------------------
               Management's Discussion and Analysis of Financial
               -------------------------------------------------
                       Condition and Results of Operation
                       ----------------------------------

Certain  statements  contained in this filing are  "forward-looking  statements"
within the meaning of the Private Securities Litigation Reform Act of 1995, such
as  statements  relating  to  financial  results  and plans for future  business
development   activities,   and  are  thus  prospective.   Such  forward-looking
statements  are subject to risks,  uncertainties  and other  factors which could
cause  actual  results to differ  materially  from future  results  expressed or
implied by such  forward-looking  statements.  Potential risks and uncertainties
include,  but are not limited to,  economic  conditions,  competition  and other
uncertainties  detailed  from  time  to  time in the  Company's  Securities  and
Exchange Commission filings.

LIQUIDITY AND CAPITAL RESOURCES

PRIVATE PLACEMENT OF DEBENTURES

The company  sold, as of September 30, 1994,  eleven  debentures  for a total of
$275,000. The purpose of the private placement was to acquire the technology for
plating  electroless nickel on aluminum,  complete all research and development,
conduct test trials with potential customers leading up to commercialization .

NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY FUNDING

The company  signed an  agreement  with the New York State  Energy  Research and
Development  Authority (NYSERDA) dated June 22, 1995 for funding of $325,000 for
its new  technology.  This  was  done as a part of  NYSERDA's  Industrial  Waste
Minimization  Program.  The purpose of the  funding is to provide  money for the
completion of research and development,  test trials,  commercial demonstrations
and  commercialization  of the  technology.  To date, the company has received a
total of $315,000 on this contract.

OPERATING ACTIVITIES

Over the past three fiscal years Coating  Technology  has shown steady growth in
sales and  earnings.  Cash  flow,  along  with  term  loans  from the  company's
commercial  bank,  was  adequate  to  provide  for the  acquisition  of  capital
equipment  and provide the working  capital  necessary to run the  business.  In
addition,  all relevant  measures  relating to: Debt to Equity;  current  ratio;
working capital; and net worth increased.

Through  the first  quarter of fiscal  year 1997,  Coating  Technology  operated
profitably with sufficient resources to sustain operations.

MICROSMOOTH (TM)

The Company initially applied for a patent on  Microsmooth(TM),  its proprietary
activator  for  plating  electroless  nickel on aluminum  in March,  1994.  That
application  was then split  into  three  separate  applications;  the  chemical
formula; the process and; the resulting product.




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<PAGE>








Subsequently, and as a result of significant chemical formula modifications, the
original  formula  application  was abandoned and a new patent  application  was
filed in June, 1997.

On July 30, 1997 the Company  entered into an exclusive  license  agreement with
Alyn  Corporation,  Inc. for Alyn to use the  Microsmooth(TM)  process on Alyn's
Boralyn  alternate  computer  memory  disks.  The Company will receive  material
royalties from the Alyn Corporation to retain Alyn's excluseve  worldwide rights
to the Microsmooth(TM) technology on alternate computer memory disks.


If Metal Arts is successful  in  commercializing  its new  technology it will be
necessary  to raise  additional  capital.  The amount of capital  required  will
depend on how rapidly market acceptance might occur. If this does occur it could
result in growth in the  company's  sales and earnings  over the next few years.
The company will seek, if commercial sales commence, to raise additional capital
in the form of receivables  financing,  warrant  conversion or other  investment
mechanisms to sustain operations.


















                                      (10)




<PAGE>






                          The Metal Arts Company, Inc.
                          ----------------------------

                    Management's discussion and Analysis of
                    ---------------------------------------
                  financial Condition and Results of Operation
                  --------------------------------------------

B.  RESULTS OF OPERATIONS:
--------------------------

The following table illustrates the major components of consolidated net sales
and net income (loss).
                                         Three Months Ended
                                            September 30,
                                         1997         1996
                                         ----         ----

Consolidated Net Sales:
     Metal Arts                       $  37,500    $       0
     Coating Technology                 433,500      407,000
                                      ----------------------
                                      $ 471,000    $ 407,000
                                      ======================

Consolidated Net Income (Loss):
     Metal Arts                       ($ 12,250)   ($ 18,100)
     Coating Technology                  38,800       33,000
     Minority Interest                  (11,650)      (9,900)
                                      ----------------------
                                      $  14,900    $   5,000
                                      ======================


The Metal Arts Company, Inc.
----------------------------
The net sales for the Company for the three (3) months ended October 30,1997
were $37,500 compared with $0 in the previous year. The Company showed a loss of
$12,250 versus a loss of $18,100 the previous year.

Coating Technology, Inc.
------------------------
Coating Technology's sales for the three (3) months ended October 30, 1997 were
$433,505 as compared with $407,000 in the previous year. The Company showed a
profit of $38,800 as compared with a profit of $33,000 in the previous year.







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<PAGE>








                          THE METAL ARTS COMPANY, INC.
                          ----------------------------



Part II - Other Information:

          Item 6 - Exhibits and Reports on form 8-K

          A.  Exhibits - None

          B.  Reports on Form 8 - K - None





Signatures:

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.

                          THE METAL ARTS COMPANY, INC.
                          ----------------------------

Date: November 14, 1997
      -----------------                             /s/ Stanley J. Dahle 
                                                    -------------------- 
                                                    Stanley J. Dahle
                                                    President



Date: November 14, 1997
      -----------------                             /s/ Albert A. Cauwels
                                                    ---------------------
                                                    Albert A. Cauwels
                                                    Secretary








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