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, 2000

          [ ] 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: 2-41015


                                    LBU, Inc.
        (Exact Name of Small Business Issuer as Specified in its Charter)


Nevada                                                                62-1203301
(State or Other Jurisdiction of             (I.R.S. Employer Identification No.)
Incorporation or Organization)


310 Paterson Plank Road, Carlstadt, N.J.                                   07072
(Address of Principal Executive Offices)                              (Zip code)

         Issuer's Telephone Number, Including Area Code: (201) 933-2800

Former Name, Former Address and Former Fiscal Year, if Changed Since Last
Report:

Check whether the issuer (1) filed all reports required to be filed by section
13 or 15 (d) of the Securities Exchange Act of 1934 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 [ ] No [X]

As of May 4, 2000, the Issuer had 1,814,334 shares of Common Stock, par value
$.001, outstanding.

Transitional Small Business Disclosure Format (check one): YES [_]  NO [X]


                                       1
<PAGE>

                                    LBU, Inc.
                                      INDEX


                                                                         Page No
Part I - Financial Information:

Item 1. Condensed Balance Sheets June 30, 2000 and December 31, 1999        3

         Condensed Statements of Operations for the Six Months
         Ended June 30, 2000 and 1999                                       5

         Condensed Statements of Cash Flows for the Six Months
         Ended June 31, 2000 and 1999                                       6

         Notes to Condensed Financial Statements (Unaudited)                7


Item 2. Management's Discussion and Analysis of Financial
         Condition and Results of Operations                               10

Part II - Other Information:

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


Signatures                                                                 15


                                       2
<PAGE>

PART I

Item 1. Financial Statements


                                    LBU, Inc.
                                 Balance Sheets

<TABLE>
<CAPTION>
                                                                    June 30,              December 31,
                                                                      2000                   1999
                                                                   ----------             ----------
<S>                                                                <C>                    <C>
Current assets:
  Cash and cash equivalents                                        $    9,760             $   20,546
  Accounts receivable (net of allowance for
     bad debts of  $ 0 and $53,135 respectively)                      310,109                222,813
  Inventory                                                           729,097                680,084
  Deferred Tax Asset                                                   15,718                  4,370
  Other current assets                                                 44,765                 32,431
                                                                   ----------             ----------
    Total current assets                                            1,109,449                960,244

Noncurrent assets:
  Fixed assets, net                                                   281,591                286,043
  Other assets                                                        137,912                 82,244
                                                                   ----------             ----------

       Total assets                                                $1,528,952             $1,328,531
                                                                   ==========             ==========


         LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
  Accounts payable                                                 $  320,704             $  113,647
  Accrued expenses                                                     12,282                 82,009
  Customer advances                                                     4,760                 91,438
  Taxes payable                                                             0                 15,613
   Loan Payable                                                       100,000                      0
  Accounts payable - Reorganization Settlement                         86,861                      0
                                                                   ----------             ----------
     Total current liabilities                                        524,607                302,707
                                                                   ----------             ----------
Pre-bankruptcy and long term liabilities:
  Accounts payable                                                          0                792,689
  Accrued expenses                                                          0                 73,030
  Notes payable                                                             0                739,139
  Taxes payable                                                             0                      0
                                                                   ----------             ----------
   Pre-bankruptcy liabilities                                               0              1,604,858
Long-term liabilities
  Deferred Income Tax                                                  27,240                 19,744
  Accounts Payable-Reorganization Settlement                           21,764                      0
                                                                   ----------             ----------
     Total long term liabilities                                       49,004              1,624,602
                                                                   ----------             ----------

         Total liabilities                                            573,611              1,927,309
                                                                   ----------             ----------
</TABLE>

          See accompanying notes to the condensed financial statements


                                       3
<PAGE>

                                    LBU, Inc.
                            Balance Sheets, continued

<TABLE>
<CAPTION>
                                                         June 30,        December 31,
                                                           2000              1999
                                                       -----------       -----------
<S>                                                    <C>               <C>
Stockholders' equity:
  Common stock ($.001 stated value)
50,000,000 shares authorized,
2,041,347 and 1,359,477, respectively,
issued and outstanding                                       1,544             1,544
Additional paid in capital                               1,148,378         1,148,379
Accumulated deficit                                       (194,581)       (1,748,701)
                                                       -----------       -----------
  Total stockholders' equity                               955,341          (598,778)
                                                       -----------       -----------

    Total liabilities and stockholder's equity         $ 1,528,952       $ 1,328,531
                                                       ===========       ===========
</TABLE>

          See accompanying notes to the condensed financial statements


                                       4
<PAGE>

                                    LBU, Inc.
                            Statements of Operations


                                                       Six              Six
                                                  months ended     months ended
                                                  June 30, 2000    June 30, 1999
                                                   -----------      -----------

Net sales                                          $ 2,116,766      $ 1,864,854
Costs of sales                                       1,202,950        1,120,605
                                                   -----------      -----------

    Gross profit                                       913,816          744,249
                                                   -----------      -----------

    Operating expenses:
Shipping and selling                                   269,840          168,577
General and administrative                             498,558          373,696
Factor fees and interest                                51,383           65,297
                                                   -----------      -----------
  Total operating expenses                             819,781          607,570
                                                   -----------      -----------

     Operating income (loss)                            94,035          136,679

  Other income (expense):
Interest income                                              0              161
Insurance proceeds in excess of replacement              8,349                0
State income tax                                          (100)            (825)
Chapter 11 legal expense                                (8,254)         (42,140)
                                                   -----------      -----------

  Total other income (expense)                              (5)         (42,804)
                                                   -----------      -----------

Income (loss) before income taxes                       94,030           93,875

Income taxes provision                                       0                0
                                                   -----------      -----------

Net income                                         $    94,030      $    93,875
                                                   ===========      ===========

Net income per share-Basic                         $      0.04      $      0.05
                                                   ===========      ===========

Net income per share-Fully diluted                 $      0.04      $      0.05
                                                   ===========      ===========

          See accompanying notes to the condensed financial statements


                                       5
<PAGE>

                                    LBU, Inc.
                            Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                      Six             Six
                                                                months ended     months ended
                                                                June 30, 2000    June 30, 1999
                                                                 -----------      -----------
<S>                                                              <C>                <C>
  Cash flow from operating activities:
Net income (loss)                                                $    94,030        $  93,875
                                                                 -----------      -----------
  Adjustments to reconcile net income to net
  cash provided (used) by operating activities
Depreciation and amortization                                         32,006           13,601
Non-cash compensation
  (Increase) decrease in
Accounts receivable                                                 (189,590)         (76,673)
Inventories                                                          (49,013)         226,461
Other Current assets                                                 (23,682)          80,876
  Increase (decrease) in
Accounts payable                                                     170,914         (168,198)
Accrued expenses                                                     (62,231)         (76,729)
Customer Advances                                                    (86,678)          18,466
Income Taxes Payable                                                 (15,613)               0
                                                                 -----------      -----------
  Total adjustments                                                 (223,887)          17,804
                                                                 -----------      -----------
   Net cash provided by (used in) operating activities              (129,857)         111,679
                                                                 -----------      -----------

   Cash flow from investing activities:
Capital expenditures                                                 (83,221)               0
                                                                 -----------      -----------
  Net cash used by investing activities                              (83,221)               0
                                                                 -----------      -----------
   Cash flow from financing activities:
Repayment of loans                                                (1,582,708)        (214,461)
Proceeds from loans and factor advances                            1,785,000           20,000
                                                                 -----------      -----------
  Net cash provided by  (used in) financing activities               202,292         (194,461)
                                                                 -----------      -----------
  Net (decrease) increase in cash                                    (10,786)         (82,782)
Cash at beginning of period                                           20,546          145,454
                                                                 -----------      -----------
Cash at end of period                                            $     9,760        $  62,672
                                                                 ===========      ===========

Supplemental disclosures:
  Cash paid during the period for
   Interest and factor fees                                      $    55,468        $  70,575
   Income Taxes                                                  $       100        $     825
</TABLE>

          See accompanying notes to the condensed financial statements


                                       6
<PAGE>

                                    LBU, Inc.
                     Notes to Condensed Financial Statements
                                   (Unaudited)

The accompanying unaudited financial statements have been prepared by the
Company pursuant to the rules and regulations of the Securities and Exchange
Commission regarding interim financial reporting. Accordingly, they do not
include all of the information and footnotes in accordance with generally
accepted accounting principals for complete financial statements and should be
read in conjunction with the audited financial statements included in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 1999. In
the opinion of management, the accompanying unaudited financial statements
contain all adjustments, consisting only of those of a normal recurring nature,
necessary for a fair presentation of the Company's financial position, results
of operations and cash flows at the dates and for the periods presented.

On March 23, 1999, the company filed petitions for relief under chapter 11 of
the federal bankruptcy laws. The action was precipitated by the decline in sales
and gross margin and an increase in expenses during the year ended December 31,
1999, resulting in the inability to pay approximately $725,000 due John P.
Holmes Co., Inc. that was due January 1, 1999 and other liabilities as they
became due.

A Trustee was appointed and a plan for recovery was been prepared. The factor
revised their factoring and lending agreement and such financing continues. A
consultant with industry experience was retained and cost cutting was put into
affect.

LBU continued to operate, and continued to factor its receivables with CIT
pursuant to an order of the Bankruptcy Court. LBU has filed a plan of
reorganization that provides for: (a) an extension and modification of the CIT
agreement, (b) payment to unsecured creditors of either: (i) one share of stock
for every $2.00 of debt, or (ii) 20 monthly payments equal to 22.5% of
creditor's claims, and (c) retention of stock by existing shareholders.

The Reorganization Plan was confirmed on January 13, 2000. JPHC elected a stock
distribution of 362,500 shares of Common Stock, under the Reorganization Plan in
satisfaction of its $700,000 claim. In addition, JPHC would no longer be
entitled to the 60,000 shares issuable upon the conversion of the $300,000
convertible note. Of the $904,858 balance of the $1,604,858 Liabilities Subject
to Compromise, a total of $146,140 is subject to payout under the 20-month cash
payment election and additional 87,370 shares are to be issued under the 1 share
for $2 of debt election. Management estimates that approximately, $30,000 of
Liabilities Subject to Compromise is subject to dispute. Accordingly, the total
debt reduction is $1,458,718 as a result of the Reorganization. The total
increase in shares issued and outstanding as a result of the Reorganization plan
is 681,870.

The operating results for the six months ended June 30, 2000 are not necessarily
indicative of the results to be expected for the full year.


                                       7
<PAGE>

                                    LBU, Inc.
               Notes to Condensed Financial Statements, continued
                                   (Unaudited)


Note 1 - Accounts Receivable And Factoring Arrangements

The Company entered into a factoring arrangement whereby a factor makes advances
to the Company based upon a percentage of certain eligible invoices. In
addition, the factor makes advances to the Company based upon its eligible
inventory levels. Interest of 2% per annum above the prime rate is charged on
outstanding advances. The advances are collateralized by the Company's accounts
receivable, inventories and certain other assets. In addition, the Company's
President and principal shareholder has personally guaranteed advances under
these agreements. The factor also charges a commission of 1 1/8% on the gross
face amount of all amounts factored, subject to a minimum commission per invoice
and other service fees.

Prior to the bankruptcy filing date, the Company and CIT revised their factoring
agreement whereby the Company repaid the $200,000 advanced during early 1999.


Note 2 - Notes and Capital Lease  Payable

Notes and capital lease payable consist of the following as of June 30, 2000 and
December 31, 1999:

                                                     2000            1999
                                                   --------        --------

Accounts Payable-Reorganization Settlement         $108,625        $      0
Promissory notes payable (a)                              0         200,000
Promissory note payable(b)                                0          30,000
Convertible notes payable (b)                             0         500,000
Capital lease (d)                                         0           9,139
                                                   --------        --------

Total                                               108,625         739,139
Less, current installments                           86,861               0
                                                   --------        --------
Notes and capital lease payable,
    Less current installments                      $ 21,764        $739,139
                                                   ========        ========

(a)  $200,000 of principal matured on January 1, 1999 and has become part of the
     bankruptcy proceedings.

(b)  Principal was due to mature on June 22, 2000. Interest accrues at 9.12%.
     This note has become part of the bankruptcy proceedings.

(c)  Principal of $500,000 matured on January 1, 1999. Notes are convertible
     into Common Stock of the Company at a fixed conversion price of $5.00 per
     share. This note has become part of the bankruptcy proceedings.

(d)  Lease payments are $3,812 for each year through December 31, 2000. Interest
     accrues at 12% per annum. This lease has become part of the bankruptcy
     proceedings.


                                       8
<PAGE>

                                    LBU, Inc.
               Notes to Condensed Financial Statements, continued
                                   (Unaudited)

Note 3 - Commitments and Contingencies

The Company entered into a ten-year lease agreement for its facilities in
Carlstadt, New Jersey, which commenced on July 1, 1995. The minimum future
rental payments under the non-cancelable operating leases as of June 30, 2000
are:

                           Year Ending
                           December 31     Amount
                           -----------     ------

                              2000       $ 77,483
                              2001        160,121
                              2002        167,465
                              2003        172,521
                              2004        179,368


                                       9
<PAGE>

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

Forward Looking Statements and Associated Risks

The discussion and analysis which follows in this Quarterly Report and in other
reports and documents of the Company and oral statements made on behalf of the
Company by its management and others may contain trend analysis and other
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934 which reflect the Company's current views with respect to
future events and financial results. These include statements regarding the
Company's earnings, projected growth and forecasts, and similar matters, which
are not historical facts. The Company reminds stockholders that forward-looking
statements are merely predictions and therefore are inherently subject to
uncertainties and other factors which could cause the actual future events or
results to differ materially from those described in the forward-looking
statements. These forward-looking statements involve risks and uncertainties
including the emerging of the Company from bankruptcy proceedings, availability
and terms of additional financing; changes which could affect customer payment
practices or customer spending; industry trends; the loss of major customers and
changes in demand for the Company's products; the timing of orders received from
customers; cost and availability of raw materials; increases in costs relating
to manufacturing and transportation of products; the outcome of litigation to
which the Company is a party and the seasonal nature of the Company's business.

The forward-looking statements contained in this Quarterly Report and made
elsewhere by or on behalf of the Company should be considered in light of these
factors.

The Company has attempted to identify additional significant uncertainties and
other factors affecting forward-looking statements in Exhibit 99 incorporated by
reference to this Quarterly Report ("Additional Information Regarding Forward
Looking Statements"). The Company will provide copies of Exhibit 99 to
stockholders free of charge upon receipt of a written request submitted to the
Company's Secretary at LBU, Inc., 310 Paterson Plank Road, Carlstadt, New Jersey
07072. Stockholders may also obtain copies of Exhibit 99 for a nominal charge
from the Public Reference Section of the Securities and Exchange Commission at
450 Fifth Street, N.W., Washington D.C. 20549 or at the Commission's website:
http://www.sec.gov.

Results of Operations

Six months ended June 30, 2000 versus six months ended June 30, 1999

The Company's net sales increased by $ 251,912 or 14% to $ 2,116,766 for the six
months ended June 30, 2000 from $ 1,864,854 for the six months ended June 30,
1999. This increase was due primarily to the addition of two new sales people.


                                       10
<PAGE>

Costs of sales increased by $ 82,345 to $ 1,202,950 (or 57% of net sales) for
the six months ended June 30, 2000 from $ 1,120,605 (or 60% of net sales) for
the six months ended June 30, 1999. This increase is primarily attributable to
the increase in sales in the 2000 six-month period.

As a result of the foregoing, gross profit increased by $169,567 to $ 913,816
for the six months ended June 30, 2000 from $ 744,249 for the six months ended
June 30, 1999.

Shipping and selling costs increased by $ 101,263 to $ 269,840 (or 13 % of net
sales) for the six months ended June 30, 2000 from $ 168,577 (or 9 % of net
sales) for the six months ended June 30, 1999. This increase is primarily due to
the hiring of additional salespeople and the implementation of an aggressive
commission schedule.

General and administrative expenses increased by $ 124,862 to $ 498,558 (or 24 %
of net sales) for the six months ended June 30, 2000 from $ 373,696 (or 20% of
sales) for the six months ended June 30, 1999. This increase primarily is due
the hiring of a data processing consultant to implement the new computer system
and an increase in insurance costs and administrative salaries.

Factor fees and interest decreased by $ 13,914 to $ 51,383 (or 3% of sales) for
the six months ended June 30, 2000 from $ 65,297 (or 4% of sales) for the six
months ended June 30, 1999. This decrease is a direct result of a decrease in
factoring activity and the repayment of debt to the factor at the end of March
1999.

As a result of the foregoing, total operating expenses increased by $ 212,211 to
$819,781 (or 39% of sales) for the six months ended June 30, 2000 from $607,570
(or 33% of sales) for the six months ended June 30, 1999.

As a result of the foregoing, the Company incurred a net income of $94,035 for
the six months ended June 30, 2000 as compared to net income of $136,679 for the
six months ended June 30, 1999.

Liquidity and Capital Resources

The Company's cash position as of June 30, 2000 and June 30, 1999 was $ 9,760
and $62,672, respectively. Net cash provided by (used in) operating activities
for the six months ended June 30, 2000 and 1999 was $ (129,857) and $ 111,679,
respectively, representing an decrease of $241,536 in the 2000 period.

During the six months ended June 30, 1999, cash used in investing activities
totaled $83,221, which consists primarily of capital expenditures for
manufacturing equipment in the Company's Carlstadt facility and a new officer
copier for administrative use. No cash was used for investing activities during
the six months ended June 30, 2000.

During the six months ended June 30, 1999, net cash used in financing activities
totaled $194,461 which includes a repayment of the loan from the company's
factor, CIT, in the


                                       11
<PAGE>

amount of $214,461 and the borrowing of $20,000 from its bank credit line prior
to the filing of bankruptcy. During the six months ended June 30, 2000, net cash
provided by financing activities was $202,292 which is a direct result of
advances from Company's factor, CIT, along with a short term capital loan from
an outside party.

Currently, LBU's primary source of financing is the CIT Group ("CIT"), which
provides factoring and accounts receivable financing. The Company pays a 1.125%
factor charge on its invoices for the guarantee of payment on eligible
receivables, which CIT then collects from the Company's customers. The Company
pays 2% above the prime-lending rate on borrowings up to 85% of an invoice
amount.

During April 1998, CIT agreed to make advances to the Company based upon a
percentage of its levels of eligible inventories. As of December 31, 1999,
$200,000 had been advanced to the Company under this arrangement. As of June 30,
2000, the company repaid the $200,000 advanced by CIT from accounts receivable
payments as part of the agreement with CIT to continue with its factoring
arrangement during the bankruptcy proceedings.

Income taxes

As of December 31, 1999 the Company had federal and state net operating loss
carry forwards of approximately $1,750,000 and $1,920,000 respectively, which
will begin to expire in 2018 and 2007, respectively. As a result of the debt
compromised by the final bankruptcy settlement, the federal and state operating
carry forward losses as of June 30, 2000 are $291,282 and $111.292,
respectively, which will begin to expire in 2019 and 2008, respectively.

New Financial Standards

In June 1997, the Financial Accounting Standards Board (the FASB) issued
Statement of Financial Accounting Standards ("SFAS") No. 131, "Disclosure about
Segments of an Enterprise and Related Information" ("SFAS 131"). SFAS 131
establishes standards for the way public business enterprises report information
about operating segments in annual financial statements and requires that those
enterprises report selected information about operating segments in financial
reports issued to shareholders. It also establishes standards for disclosures
about products and services, geographic areas and major customers. SFAS 131 is
effective for financial statements for fiscal years beginning after December 15,
1997. Financial statement disclosures for prior periods are required to be
restated.

The adoption of SFAS 131 has had no impact on the Company's results of
operations, financial position or cash flows. Management does not receive, nor
does the Company generate, discrete financial operating results for any portion
of the business other than for product sales.


                                       12
<PAGE>

                           PART II. Other Information

Item 6. Exhibits and Reports on Form 8-K

        Exhibit
(a)       No.       Description
        -------     -----------

          2.1       Plan of Reorganization dated February 17, 1995 by and
                    between New Century Media, Ltd. a Nevada Corporation, and
                    LBU, Inc. a Delaware Corporation.(1)

          3.1       Certificate of Incorporation of LBU, Inc. dated September 2,
                    1994. (2)

          3.2       By-laws of LBU, Inc. dated October 4, 1994. (2)

          3.3       Form of two-year stock purchase warrant.(3)

          3.4       Form of Three-year stock purchase warrant.(3)

          10.1      Factoring Agreement dated October 25, 1993 by and between
                    LBU, Inc. (Delaware) and The CIT Group/Commercial Services
                    Inc. (4)

          10.2      Guaranty dated October 25, 1993 by and between CIT and
                    Jeffrey and Isel Mayer, individually, relating to the above
                    Factoring Agreement.(4)

          10.3      Inventory Security Agreement dated January 4, 1995 by and
                    between LBU, Inc. and The CIT Group/Commercial Services,
                    Inc.(4)

          10.4      Lease agreement dated April 1, 1995 by and between Albert
                    Frassetto Enterprises, a sole proprietorship, and Bags of
                    Carlstadt, Inc. (4)

          10.5      Subscription Agreement dated March 27, 1997 by and between
                    JPHC and the Registrant.(4)

          10.6      Promissory note dated August 21, 1997, as amended on
                    February 21, 1998, by and between the Registrant and John P.
                    Holmes & Company, Inc. (4)

          10.7      Promissory note dated September 19, 1997, as amended on
                    November 21, 1997 and February 21, 1998, by and between the
                    Registrant and JPHC.(4)

          10.8      Consulting agreement dated February 19, 1998 by and between
                    JPO, LLC and the Registrant. (4)

          21.1      List of Subsidiaries

                    Subsidiary                   State of Incorporation
                    ----------                   ----------------------
                    LBU, Inc.                    Delaware
                    Bags of Carlstadt, Inc.      New Jersey

          27.1      Financial Data Schedule (filed via EDGAR only).

          99        Additional Information Regarding Forward Looking Statements

          (1)  Filed as an Exhibit to the New Century Media, Ltd. (a predecessor
               of the Registrant) Form 10-K/A for the year ended December 31,
               1994 dated March 10, 1995 and incorporated herein by reference
               thereto.


                                       13
<PAGE>

          (2)  Filed as an Exhibit to the New Century Media, Ltd. Form 10-Q for
               the quarter ended September 30, 1994 dated November 8, 1994 and
               incorporated herein by reference thereto.

          (3)  Filed as an exhibit to the Registrant's Form 10-QSB for the
               quarter ended March 31, 1998 and incorporated herein by reference
               thereto.

          (4)  Filed as an Exhibit to the Company's Form 10-QSB/a for the year
               ended December 31, 1997 (filed on April 22, 1998) and
               incorporated herein by reference thereto.

     (b)  Reports on Form 8K filed during the last quarter of the period covered
          by this report:

          None.


                                       14
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.

Date: January 31, 2001


                                        LBU, INC.

                                        By: /s/ Jeffrey Mayer
                                        -----------------------------------
                                           Jeffrey Mayer
                                        Chairman of the Board
                                        Chief Executive Officer, President
                                        (Principal executive and financial
                                        And accounting officer)
                                        Director


                                       15