<PAGE>

                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549



                                  FORM 10-QSB


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

                                   For the quarterly period ended June 30, 2001
                                                                  -------------

                                   Commission file number 0-30351
                                                          ---------------------


                               TRUE HEALTH, INC.
--------------------------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)


<TABLE>
<S>                                                     <C>
                      Utah                                          75-2263732
--------------------------------------------------------------------------------------------
(State or other jurisdiction of incorporation or        (IRS Employer Identification No.)
                  organization)
</TABLE>

5 Tansey Circle, Mesquite, Texas  75149
--------------------------------------------------------------------------------
                   (Address of principal executive offices)

(972) 644-1200
--------------------------------------------------------------------------------
                         (Issuer's  telephone number)

Securities registered pursuant to Section 12(g) of the Act:
                    Common Stock, Par Value $0.01 Per Share
--------------------------------------------------------------------------------

     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 ___
                                               ---

     As of June 30, 2001, there were outstanding 60,709,774 shares of True
Health, Inc., Common Stock, par value $.01.

     Transitional Small Business Disclosure Format (Check one):  Yes ___ No  x
                                                                            ---
<PAGE>

                                  FORM 10-QSB

                               TRUE HEALTH, INC.
                             Index to Form 10-QSB


                                    PART I



FINANCIAL INFORMATION (UNAUDITED)

ITEM 1.  FINANCIAL STATEMENTS

Balance Sheets as of June 30, 2001 and December 31, 2000

Statements of Loss for the Three and Six Months Ended June 30, 2001 and 2000

Statements of Cash flows for the Three and Six Months Ended June 30, 2001 and
2000

Notes to Financial Statements


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


                                    PART II


OTHER INFORMATION

         Item 1

SIGNATURES
<PAGE>

                                                               TRUE HEALTH, INC.
                                                                  Balance Sheets
                                 June 30, 2001 (Unaudited) and December 31, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                      June 30,
                                                                          2001       December 31,
ASSETS                                                              (Unaudited)              2000
                                                                 -----------       ------------
<S>                                                              <C>               <C>
  Current assets:
    Cash                                                         $      872        $     1,280
    Accounts receivable, trade                                          294                  -
    Inventory                                                        11,679              8,691
                                                                 ----------        -----------
      Total current assets                                           12,845              9,971
                                                                 ----------        -----------

   Office and computer equipment, net of
      accumulated depreciation of $1,644 and $1,520                     491                615
                                                                 ----------        -----------
      Total other assets                                                491                615
                                                                 ----------        -----------

      Total assets                                               $   13,336        $    10,586
                                                                 ==========        ===========


LIABILITIES
  Current liabilities:
    Accounts payable and accrued expenses                        $   24,158        $    17,896
    Due to related parties                                           83,865             79,056
                                                                 ----------        -----------
      Total current liabilities                                     108,023             96,952
                                                                 ----------        -----------

      Total liabilities                                             108,023             96,952
                                                                 ----------        -----------

  Commitments and contingencies                                           -                  -

STOCKHOLDERS' EQUITY
  Common stock, $.01 par value, 100,000,000 shares authorized,
     60,709,774 and 60,709,774 shares issued and outstanding        607,098            607,098
  Capital in excess of par value                                    277,621            277,621
  Deficit accumulated during the development stage                 (979,406)          (971,085)
                                                                 ----------        -----------
      Total stockholders' equity                                    (94,687)           (86,366)
                                                                 ----------        -----------
      Total liabilities and stockholders' equity                 $   13,336        $    10,586
                                                                 ==========        ===========
</TABLE>

The accompanying notes are an integral part of these statements.
<PAGE>

                                                               TRUE HEALTH, INC.
                                        Statements of Loss For The Periods Ended
                                                          June 30, 2001 and 2000
                                                                     (Unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                    Quarter Ended June 30,             Six Months Ended June 30,
                                                              ---------------------------------     -------------------------------
                                                                     2001              2000              2001              2000
                                                              --------------     --------------     -------------     -------------
<S>                                                           <C>                <C>                <C>               <C>
Sales                                                               $ 7,723            $ 5,999          $ 17,737          $ 12,563
Cost of sales                                                         1,377              1,157             3,342             2,765
                                                              --------------     --------------     -------------     -------------
  Gross profit                                                        6,346              4,842            14,395             9,798
                                                              --------------     --------------     -------------     -------------

Selling, general, and administrative expenses:
  Salaries and sales commissions                                      2,707              3,179             5,722             3,950
  Research and development                                                -                447                29               615
  Depreciation                                                           62                101               124               205
  Advertising and promotion                                              51              1,981               368             2,850
  Professional fees                                                   4,820              7,050             6,626             7,505
  Other                                                               5,887              4,116             9,847             8,121
                                                              --------------     --------------     -------------     -------------
    Total selling, general, and administrative expenses              13,527             16,874            22,716            23,246
                                                              --------------     --------------     -------------     -------------
    Loss from operations                                             (7,181)           (12,032)           (8,321)          (13,448)
                                                              --------------     --------------     -------------     -------------

Other income (expense):
  Interest expense                                                        -                (41)                -               (97)
                                                              --------------     --------------     -------------     -------------
    Total other income (expense)                                          -                (41)                -               (97)
                                                              --------------     --------------     -------------     -------------

Income (loss) before taxes on income                                 (7,181)           (12,073)           (8,321)          (13,545)
Provision (credit) for taxes on income                                    -                  -                 -                 -
                                                              --------------     --------------     -------------     -------------
    Net income (loss)                                              $ (7,181)         $ (12,073)         $ (8,321)        $ (13,545)
                                                              ==============     ==============     =============     =============


Income (Loss) per common share, basic                            $ (0.00012)         $(0.00020)       $ (0.00014)       $ (0.00022)
                                                              ==============     ==============     =============     =============
Weighted average number of shares outstanding                    60,709,774         60,609,774        60,709,774        60,609,774
                                                              ==============     ==============     =============     =============
</TABLE>

The accompanying notes are an integral part of these statements.
<PAGE>

                                                               TRUE HEALTH, INC.
                                  Statements of Cash Flows For The Periods Ended
                                                          June 30, 2001 and 2000
                                                                     (Unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                             Quarter Ended June 30,   Six Months Ended June 30,
                                                                             ----------------------   -------------------------
                                                                                2001        2000         2001           2000
                                                                             ---------    ---------   ---------       ---------
<S>                                                                          <C>          <C>         <C>             <C>
Cash flows from operating activities:
   Net income (loss)                                                         $ (7,181)    $(12,073)   $ (8,321)       $(13,545)

  Adjustments to reconcile net income to cash provided (used) by operating
    activities:
      Depreciation                                                                 62          101         124             205
      Decrease (increase) in accounts receivable                                 (294)          89        (294)            438
      Decrease (increase) in inventory                                           (883)         500      (2,988)           (126)
      Increase (decrease) in accounts payable and accrued expenses              7,363        7,490       6,262           3,365
                                                                             --------     --------    --------        --------
        Net cash provided (used) by operating activities                         (933)      (3,893)     (5,217)         (9,663)
                                                                             --------     --------    --------        --------

Cash flows from investing activities:
                                                                             --------     --------    --------        --------
        Net cash provided (used) by investing activities                            -            -           -               -
                                                                             --------     --------    --------        --------

Cash flows from financing activities:
  Advances from related parties                                                 1,226        1,111       4,809           8,882
  Repayments of short term notes payable                                            -            -           -             (90)
                                                                             --------     --------    --------        --------
        Net cash provided (used) by financing activities                        1,226        1,111       4,809           8,792
                                                                             --------     --------    --------        --------

        Net increase (decrease) in cash and cash equivalents                      293       (2,782)       (408)           (871)

Cash and cash equivalents:
  Beginning of year                                                               579        3,996       1,280           2,085
                                                                             --------     --------    --------        --------
  End of year                                                                $    872     $  1,214    $    872        $  1,214
                                                                             --------     --------    --------        --------


Supplemental cash flow disclosures:
  Cash paid for interest                                                     $      -     $     41    $      -        $     97
</TABLE>

The accompanying notes are an integral part of these statements.
<PAGE>

                               TRUE HEALTH, INC.
                    NOTES TO UNAUDITED FINANCIAL STATEMENTS

Note 1 - Basis of presentation:

The financial statements include the accounts of True Health, Inc.  The Balance
Sheets as of June 30, 2001 and December 31, 2000, the Statements of Loss for the
three and six months ended June 30, 2001 and 2000, and the Statements of Cash
Flows for the three and six months ended June 30, 2001 and 2000 have been
prepared by the Company without audit.  In the opinion of management, these
financial statements include all adjustments necessary to present fairly the
financial position, results of operations and cash flows for the period ended
June 30, 2001, and for all periods presented.  All adjustments made have been of
a normal recurring nature.  Certain information and footnote disclosures
normally included in the financial statements prepared in accordance with U.S.
generally accepted accounting principles have been condensed or omitted.  The
Company believes that the disclosures included are adequate and provide a fair
presentation of interim period results.  Interim financial statements are not
necessarily indicative of financial position of operating results for an entire
year.  It is suggested that these interim financial statements be read in
conjunction with the audited financial statements and the notes thereto included
in the Company's Form 10-KSB for the year ended December 31, 2000 filed with the
United States Securities and Exchange Commission (SEC) on or about May 10, 2001.

Note 2 - The Company, nature of operations:

True Health, Inc. (the Company) is a Utah corporation engaged in the marketing
of nutrition supplement/meal replacement products under the brand name True
Health.  Substantially all of its revenues are derived from these products.  The
products are distributed from the Company's facilities in Texas to customers
throughout the world.  The accompanying financial statements have been prepared
on the basis of U.S. generally accepted accounting principles.

Note 3 - Related party transactions:

At June 30, 2001, certain shareholders had advanced the Company $83,865, of
which the entire amount is currently due.  The Company and the
shareholder/creditors have stipulated the amount of $3,000 as accrued interest
owing on the balance.

The Company occupies approximately 500 square feet of office space under a
month-to-month lease with a company owned by the president of True Health, Inc.
that requires monthly rentals of approximately $300. Rent expense charged to
operations was $900 for the three months ended June 30, 2001 and $1,800 for the
six months ended June 30, 2001.

Note 4 - Going concern:

The Company has experienced losses in eight of the previous ten years.  Losses
amount to more than $970,000 on a cumulative basis.  At June 30, 2001, current
liabilities exceeded current assets by approximately $95,000, resulting in a
working capital deficiency; there is also a capital deficit of the same
approximate amount.  Management is currently investigating alternative marketing
strategies, methods, and markets, and is seeking additional outside financing
and/or equity investors, but there is no assurance that management's efforts in
this regard will be successful.  Moreover, substantially all revenues are
derived from a single product or line of products, creating a concentration of
business; should the Company be unable for any reason to continue sales of the
products, it would have a severe impact on the Company's business.  All of the
above factors create substantial doubt about the Company's ability to continue
as a going concern.
<PAGE>

                               TRUE HEALTH, INC.

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

RESULTS OF OPERATIONS

The Company had sales of $17,737 during the first six months of 2001, versus
$12,563 in the first six months of 2000.  The increase in sales during the first
six months of 2001 is due primarily to an increase in sales and marketing
efforts in 2001, as well as the fact that during the first few months of 2000,
the Company was focusing more on the testing of new products.  Selling, general,
and administrative expenses decreased to $22,716 from $23,246.

The Company had total assets of $13,336 on June 30, 2001, compared to $10,586 on
December 31, 2000.

The company is currently negotiating with various companies interested in
promoting True Health products.  The Company expects that seeking investment
capital and the sale of stock will provide cash requirements for operations.
However, there can be no assurance that these activities will, in fact, provide
the necessary working capital for operations.  An annual shareholders' meeting
for True Health, Inc. has been called for August 1, 2001.

OTHER MATTERS

This form 10-QSB includes or may include certain forward-looking statements
concerning the Company's financial position, business strategy, budgets,
projected costs and plans and objectives of management for future operations as
well as other statements including words such as "anticipate," "believe,"
"plan," "estimate," "expect," "intend," and other similar expressions.  Although
the Company believes its expectations reflected in such forward-looking
statements are based on reasonable assumptions, readers are cautioned that no
assurance can be given that such expectations will prove correct and that actual
results and developments may differ materially from those conveyed in such
forward-looking statements.  Important factors that could cause actual results
to differ materially from the expectations reflected in the forward-looking
statements in the Form 10-SB include, among others, the pace of technological
change, the Company's ability to manage growth, general business and economic
conditions in the Company's operating regions, and competitive and other
factors, all as more fully described in the Company's Report on Form 10-SB for
the period ended December 31, 2000, under Management's Discussion and Analysis
of Financial Condition and Results of Operations.  "Assumptions Underlying
Certain Forward-Looking Statements and Factors that May Affect Future Results"
and elsewhere from time to time in the Company's other SEC reports.  Such
forward-looking statements speak only as of the date on which they are made and
the Company does not undertake any obligation to update any forward-looking
statement to reflect events or circumstances after the date of this Form 10-QSB.
If the Company does update or correct one or more forward-looking statements,
investors and others should not conclude that the Company would make additional
updates or corrections with respect thereto or with respect to other forward-
looking statements.  Actual results may vary materially.
<PAGE>

ITEM 1.  EXHIBITS AND REPORTS ON FORM 8-K

None.

     All other items in PART II are either not applicable to the Company during
     the current quarter, the answer is negative, or a response has been
     previously reported and an additional report of the information is not
     required, pursuant to the instructions to PART II.


                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.


                                          TRUE HEALTH, INC.
                              _________________________________________
                                            (Registrant)


Date: 8/21/2001               By:      /s/ RICHARD M. STOKLEY
                              ___________________________________________
                                             (Signature)
                                             Richard M. Stokley
                                             President