# U.S.
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 September 30, 2002

| | [     ] | TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | ------- | ----------------------------------------------------------------------------------------

For the transition period from

Commission File No. 000-30311

SEGWAY III CORP.(Exact name of small business issuer as specified in its charter)

|New Jersey                      | 22-3719165         
|------------------------------- | -------------------
|(State or other jurisdiction of | (I.R.S. Employer   
|incorporation or organization)  | Identification No.)

4400 Route 9 South,
2nd Floor, Freehold, NJ   07728
(Address of Principal Executive Offices)

(732) 409-1212
(Issuer's telephone number)

(Former name, address and fiscal year, if changed since last report)

Check whether the issuer
(1) has filed all reports required to be filed by Section 13 or 15(d) of the
Exchange Act during the preceding 12 months (or for such shorter period that the
issuer 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 number of shares outstanding
of each of the issuer's classes of common equity, as of November 18, 2002:  5,250,000 shares of
common stock outstanding, $0.0001 par value.

SEGWAY III CORP.
CONSOLIDATED FINANCIAL STATEMENTSINDEX

|                                                                          | 
|------------------------------------------------------------------------- | 
|Part
      I-- FINANCIAL INFORMATION                                      | 
|Item
      1. Financial Statements                                        | 
|Item
      2. Management's Discussion and Analysis of Financial Condition | 
|Part
      II-- OTHER INFORMATION                                         | 
|Item
      1. Legal Proceedings                                           | 
|Item
      2. Changes in Securities                                       | 
|Item
      3. Defaults Upon Senior Securities                             | 
|Item
      4. Submission of Matters to a Vote of Security Holders         | 
|Item
      5. Other Information                                           | 
|Item
      6. Exhibits and Reports on Form 8-K                            | 
|Signature                                                                 | 
|                                                                          | 

Item 1.     Financial
Information

## BASIS OF PRESENTATION

The accompanying
reviewed financial statements are presented in accordance with
generally accepted accounting principles for interim financial information and
the instructions to Form 10-QSB and item 310 under subpart A of Regulation S-B.
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 only of normal
occurring accruals) considered necessary in order to make the financial
statements not misleading, have been included. Operating results for the nine
months ended September 30, 2002 are not necessarily indicative of results that
may be expected for the year ending December 31, 2002. The financial statements
are presented on the accrual basis.

SEGWAY III CORP.
FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2002

TABLE OF CONTENTS

|                                             | Page(s)
|-------------------------------------------- | -------
|Balance sheets                               | 1      
|                                             |        
|Statement of Operations and Retained Deficit | 2      
|                                             |        
|Statement of Stockholders' Equity            | 3      
|                                             |        
|Statements of cash flows                     | 4      
|                                             |        
|Notes to financial statements                | 5-7    

`SEGWAY III CORP.
                                  BALANCE SHEET
                            As of September 30, 2002
                              and December 31, 2001


                                     ASSETS


CURRENT ASSETS                                      September 30, 2002   December 31, 2001

        Cash                                              $     0           $    21
                                                          -------           -------

                      TOTAL ASSETS                        $     0           $    21
                                                          =======           =======

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

    Accrued expenses                                      $ 1,225           $   925
                                                          -------           -------

                      TOTAL LIABILITIES                     1,225               925
                                                          -------           -------

STOCKHOLDERS' EQUITY

  Common Stock - par value $0.0001;
    100,000,000 shares authorized;
    5,250,000 issued and outstanding                          525               525

  Additional paid in capital                                  402               375

  Preferred Stock - Par value $0.0001;
    20,000,000 shares authorized;
    none issued and outstanding                                 0                 0

  Accumulated Deficit                                      (2,152)           (1,804)
                                                          -------           -------

  Total stockholders' equity                               (1,225)             (904)
                                                          -------           -------

      TOTAL LIABILITIES AND EQUITY                        $     0           $    21
                                                          =======           =======


   The accompanying notes are an integral part of these financial statements.




                                SEGWAY III CORP.
                             STATEMENT OF OPERATIONS
            For the six months ended September 30, 2002 and 2001, and
           from inception (March 31, 2000) through September 30, 2002




                                                      Nine Months          Nine Months        From Inception
                                                     Sep. 30, 2002        Sep. 30, 2001      To Sep. 30, 2002

REVENUE                    Sales                     $         0           $         0           $         0
                           Cost of sales                       0                     0                     0
                                                     -----------           -----------           -----------

     GROSS PROFIT                                              0                     0                     0

     GENERAL AND ADMINISTRATIVE EXPENSES                     348                   967                 2,152
                                                     -----------           -----------           -----------

     NET LOSS                                               (348)                 (967)               (2,152)

     ACCUMULATED DEFICIT, BEGINNING BALANCE               (1,804)                 (837)                    0
                                                     -----------           -----------           -----------

     ACCUMULATED DEFICIT, ENDING BALANCE             $    (2,152)          $    (1,804)          $    (2,152)
                                                     ===========           ===========           ===========

NET EARNINGS PER SHARE

         Basic and Diluted
         Net loss per share                       (Less than .01)

Basic and Diluted Weighted Average
    Number of Common Shares Outstanding                5,250,000


   The accompanying notes are an integral part of these financial statements.



                                SEGWAY III CORP.
                             STATEMENT OF OPERATIONS
              For the nine months ended September 30, 2002 and 2001


                                               Three Months       Three Months
                                            September 30, 2002  September 30, 2001

REVENUE                    Sales                  $   0           $   0
                           Cost of sales              0               0
                                                  -----           -----

     GROSS PROFIT                                     0               0

     GENERAL AND ADMINISTRATIVE EXPENSES            100             148
                                                  -----           -----

     NET LOSS                                     $(100)          $(148)
                                                  =====           =====

   The accompanying notes are an integral part of these financial statements.




                                SEGWAY III CORP.
                        STATEMENT OF STOCKHOLDERS' EQUITY
            From inception (March 31, 2000)through September 30, 2002


                               SHARES          COMMON STOCK     ACCUMULATED DEFICIT      TOTAL
                           -------------      -------------     -----------------     ------------

Stock issued for cash         5,250,000           $    750                              $      750

Net loss                                                            $       (837)             (837)
                            ------------       ------------      ----------------      ------------

Total at December 31, 2000    5,250,000                750                  (837)              (87)

Contributed capital
 by shareholders                                       150                                     150

Net loss                                                                    (967)             (967)
                            -------------      -------------      ---------------      ------------

Total at December 31, 2001   5,250,000                900                 (1,804)             (904)

Contributed capital
 by shareholders                                       27                                       27

Net loss                                                                    (348)            (348)
                            -------------      -------------      ---------------      ------------

Total at September 30, 2002  5,250,000          $     927          $      (2,152)      $   (1,225)
                            =============      =============      ===============      ============

   The accompanying notes are an integral part of these financial statements.



                                SEGWAY III CORP.
                             STATEMENT OF CASH FLOWS
            For the nine months ended September 30, 2002 and 2001, and
           from inception (March 31, 2000) through September 30, 2002



CASH FLOWS FROM OPERATING ACTIVITIES                   Sep. 30, 2001   Sep. 30, 2001  From Inception

        Net income (loss)                              $      (348)      $   (967)     $  (2,152)

             Increases (Decrease) in accrued expenses          300            750          1,225
                                                       -------------    ----------       ----------

    NET CASH PROVIDED OR (USED) IN OPERATIONS                  (48)          (217)          (927)


CASH FLOWS FROM INVESTING ACTIVITIES

        None                                                     0              0              0


CASH FLOWS FROM FINANCING ACTIVITIES

        Proceeds from issuance of common stock                   0              0            750
        Proceeds from capital contributions                     27            150            177
                                                        ------------     ---------       ---------
                                                                27            150            927
CASH RECONCILIATION

        Net increase (decrease) in cash                        (21)           (67)              0
        Beginning cash balance                                  21             88               0
                                                          -----------   -----------      ---------

CASH BALANCE AT END OF YEAR                                $     0       $     21        $      0
                                                          ===========   ===========      =========


   The accompanying notes are an integral part of these financial statements.`

## SEGWAY III CORP.
NOTES TO THE FINANCIAL STATEMENTS

1.     Summary
of significant accounting policies:

Industry - Segway
III Corp. (The Company), a Company incorporated in the state of New Jersey as of
March 31, 2000, plans to locate and negotiate with a business entity for the
combination of that target company with The Company. The combination will
normally take the form of a merger, stock-for-stock exchange or stock-
for-assets exchange. In most instances the target company will wish to structure
the business combination to be within the definition of a tax-free
reorganization under Section 351 or Section 368 of the Internal Revenue Code of 1986, as
amended. No assurances can be given that The Company will be successful in
locating or negotiating with any target company.

The Company has been formed
to provide a method for a foreign or domestic private company to become a
reporting (public) company whose securities are qualified for
trading in the United States secondary market.

Results of Operations
and Ongoing Entity-The Company is considered to be an
ongoing entity. The Companys shareholders fund any shortfalls in The
Companys cash flow on a day to day basis during the time period that The
Company is in the development stage.

Liquidity and Capital
Resources-In addition to the stockholder funding capital
shortfalls, The Company anticipates interested investors that intend to fund the
Companys growth once a business is located.

Cash and Cash
Equivalents - The Company considers cash on hand and amounts on deposit with
financial institutions which have original maturities of three months or less to
be cash and cash equivalents.

Basis of Accounting
- The Company's financial statements are prepared in accordance with generally
accepted accounting principles.

Income Taxes - The
Company utilizes the asset and liability method to measure and record deferred
income tax assets and liabilities. Deferred tax assets and liabilities reflect
the future income tax effects of temporary differences between the financial
statement carrying amounts of existing assets and liabilities and their
respective tax bases and are measured using enacted tax rates that apply to
taxable income in the years in which those temporary differences are expected to
be recovered or settled. Deferred tax assets are reduced by a valuation
allowance when in the opinion of management, it is more likely than not that
some portion or all of the deferred tax assets will not be realized. At this
time, The Company has set up an allowance for deferred taxes as there is no
company history to indicate the usage of deferred tax assets and liabilities.

Fair Value of Financial
Instruments - The Companys financial instruments may include cash and
cash equivalents, short-term investments, accounts receivable, accounts payable
and liabilities to banks and shareholders. The carrying amount of long-term debt
to banks approximates fair value based on interest rates that are currently
available to The Company for issuance of debt with similar terms and remaining
maturities. The carrying amounts of other financial instruments approximate
their fair value because of short-term maturities.

Concentrations of Credit
Risk - Financial instruments which potentially expose The Company to
concentrations of credit risk consist principally of operating demand deposit
accounts. The Company's policy is to place its operating demand deposit accounts
with high credit quality financial institutions. At this time The Company has no
deposits that are at risk.

2.     Related
Party Transactions and Going Concern:

The Company's financial
statements have been presented on the basis that it is a going concern in the
development stage, which contemplates the realization of assets and the
satisfaction of liabilities in the normal course of business. At this time The
Company has not identified the business that it wishes to engage in.

The Companys
shareholders fund The Companys activities while The Company takes steps to
locate and negotiate with a business entity for combination; however, there can
be no assurance these activities will be successful.

3.     Accounts
Receivable and Customer Deposits:

Accounts receivable and
Customer deposits do not exist at this time and therefore have no allowances
accounted for or disclosures made.

4.     Use
of Estimates:

Management uses estimates
and assumptions in preparing these financial statements in accordance with
generally accepted accounting principles. Those estimates and assumptions affect
the reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities, and the reported revenue and expenses. Management has no
reason to make estimates at this time.

5.     Revenue
and Cost Recognition:

The Company uses the
accrual basis of accounting in accordance with generally accepted accounting
principles for financial statement reporting.

6.     Accrued
Expenses:

Accrued expenses consist of accrued
legal, accounting and office costs during this stage of the business.

7.     Operating
Lease Agreements:

The Company has no agreements at this time.

8.     Stockholder's
Equity:

Common Stock includes
100,000,000 shares authorized at a par value of $0.0001, of which 5,250,000 have
been issued for the amount of $750. The shareholders contributed an additional
$150 to capital during the year 2001. The Company has also authorized 20,000,000
shares of preferred stock at a par value of $0.0001, none of which have been
issued.

9.     Required
Cash Flow Disclosure for Interest and Taxes Paid:

The Company has paid no amounts
for federal income taxes and interest.

10.     Earnings
Per Share:

Basic earnings per share
("EPS") is computed by dividing earnings available to common
shareholders by the weighted-average number of common shares outstanding for the
period as required by the Financial Accounting Standards Board (FASB) under
Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings per
Shares". Diluted EPS reflects the potential dilution of securities that
could share in the earnings.

---

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

Plan of Operation

We are
continuing its efforts to locate a merger Candidate for the purpose of a merger.
It is possible that we will be successful in locating such a merger
candidate and closing such merger. However, if we cannot effect a
non-cash acquisition, we may have to raise funds from a private
offering of our securities under Rule 506 of Regulation D. There is no assurance
we would obtain any such equity funding.

Results of Operation

We did not have
any operating income from inception (March 31, 2000) through September 30, 2002.
For the quarter ended September 30, 2002, we recognized a net loss
of $100. Some general and administrative expenses during the quarter were
accrued. Expenses for the quarter were comprised of costs mainly associated with
legal, accounting and office.

Liquidity and Capital Resources

At September 30, 2002, we
had no capital resources and will rely upon the issuance of common stock
and additional capital contributions from shareholders to fund administrative
expenses pending acquisition of an operating company.

## Item 3.     
Controls and Procedures

|(a) | Evaluation of disclosure controls and procedures.
|--- | -------------------------------------------------

| | Our Chief Executive Officer and Chief Financial Officer (collectively the "Certifying Officers")
maintain a system of disclosure controls and procedures that is designed to provide
reasonable assurance that information, which is required to be disclosed, is accumulated
and communicated to management timely. Under the supervision and with the participation
of management, the Certifying Officers evaluated the effectiveness of the design and operation of our
disclosure controls and procedures (as defined in Rule [13a-14(c)/15d-14(c)] under
the Exchange Act) within 90 days prior to the filing date of this report.  Based upon that
evaluation, the Certifying Officers concluded that our disclosure controls and procedures are
effective in timely alerting them to material information relative to our company required
to be disclosed in our periodic filings with the SEC.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Changes in internal controls.
|--- | -----------------------------

| | Our Certifying Officers have indicated that there were no significant changes in our
internal controls or other factors that could significantly affect such controls
subsequent to the date of their evaluation, and there were no such control
actions with regard to significant deficiencies and material weaknesses.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

## PART II - OTHER INFORMATION

|Item 1. | Legal Proceedings.                                      | Not Applicable
|------- | ------------------------------------------------------- | --------------
|        |                                                         |               
|Item 2. | Changes in Securities.                                  | None          
|        |                                                         |               
|Item 3. | Defaults Upon Senior Securities.                        | Not Applicable
|        |                                                         |               
|Item 4. | Submission of Matters
to a Vote of Security Holders.    | None          
|        |                                                         |               
|Item 5. | Other Information.                                      | None          
|        |                                                         |               
|Item 6. | Exhibits and Reports of Form 8-K.                       | None          
|        |                                                         |               
|        | (a)   
Exhibits required by Item 601 of Regulation S-B. | None          
|        |                                                         |               
|        | (b)   
Reports of Form 8-K.                             | None          
|        |                                                         |               

## 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 in its
behalf by the undersigned, thereunto duly authorized.

|                         | SEGWAY III CORP.                                                                                               
|------------------------ | ---------------------------------------------------------------------------------------------------------------
|                         |                                                                                                                
|Date:  November 18, 2002 | By:  
Richard I. Anslow
Richard I. AnslowPresident, Principal Executive Officer and
Principal Financial Officer
|                         |