SECURITIES AND EXCHANGE COMMISSION

                      Washington, D.C. 20549

                           FORM 10-QSB
            Quarterly Report Under Section 13 or 15(d)
              of the Securities Exchange Act of 1934

              For the quarterly period ended 8/31/03
                 Commission file number 000-30239

                       UNICO, INCORPORATED
 ________________________________________________________________
(Exact name of small business issuer as specified in its charter)


         Arizona                                86-0205130
_____________________________        __________________________________
State or other jurisdiction of      (IRS Employer Identification Number)
incorporation or organization


                      6475 Grandview Avenue
                           P.O. Box 777
                    Magalia, California  95954
             ________________________________________
             (Address of principal executive offices)


                          (530) 873-4394
         ________________________________________________
         (Issuer's telephone number, including area code)


     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   [X]     No [ ]

              APPLICABLE ONLY TO CORPORATE ISSUERS:

     State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:

     As of October 15, 2003, the issuer had outstanding 85,852,974 shares of
its Common Stock, $0.10 par value per share.








<PAGE>


PART I - FINANCIAL INFORMATION

Item 1.     Financial Statements.

     The unaudited consolidated balance sheet of Unico, Incorporated, an
Arizona corporation, as of August 31, 2003, the related audited consolidated
balance sheet of Unico, Incorporated as of February 28, 2003, the unaudited
related consolidated statements of operations for the three and six month
periods ended August 31, 2003 and August 31, 2002 and from inception of the
exploration stage on March 1, 1997 through August 31, 2003, the unaudited
related consolidated statements of stockholders' equity for the period from
February 28, 2003 through August 31, 2003, the unaudited related consolidated
statements of cash flows for the six month periods ended August 31, 2003 and
2002 and from inception of the exploration stage on March 1, 1997 through
August 31, 2003, and the notes to the consolidated financial statements are
attached hereto as Appendix "A" and incorporated herein by reference.

     The accompanying financial statements reflect all adjustments which are,
in the opinion of management, necessary to present fairly the financial
position of Unico, Incorporated consolidated with HydroClear, Ltd. and Silver
Bell Mining Company, Incorporated, its wholly-owned subsidiaries.  The names
"Unico", "we", "our" and "us" used in this report refer to Unico, Incorporated
and its subsidiaries.

     Unico was formed as an Arizona corporation on May 27, 1966.  It was
incorporated under the name of Red Rock Mining Co., Incorporated.  It was
later known as Industries International, Incorporated and I.I. Incorporated
before the name was eventually changed to Unico, Incorporated in 1979.

Deer Trail Mine.

     On March 30, 1992, Unico entered into a Mining Lease and Option to
Purchase agreement with Deer Trail Development Corporation, with headquarters
in Dallas, Texas.  Deer Trail Development Corporation is now known as Crown
Mines, L.L.C.  The lease was to run for a period of 10 years, and cover 28
patented claims, 5 patented mill sites and 171 unpatented claims located
approximately 5 miles South of Marysvale, Utah.  It includes mine workings
known as the Deer Trail Mine, the PTH Tunnel and the Carisa and Lucky Boy
mines.  There are no known, proven or probable reserves on the property.

     Effective December 1, 2001, a new lease agreement was entered


                                2


<PAGE>

into between the parties covering the same property for a period of thirty
(30) months.  It expires in May 2004.  The new lease agreement is referred to
in this report as the "Deer Trail Lease". The Deer Trail Lease requires Unico
to make monthly lease payments and pay a 3% net smelter return on ore removed
from the Deer Trail Mine.

     Unico acquired the necessary permits to commence mining activities,
provided that the surface disturbance from the mining activities does not
exceed 10 acres for both mine and mill.  Unico plans to seek a permit for
large scale mining operations.

     Unico worked for more than two years to reopen the Deer Trail Mine.
Unico commenced mining activities in late March or early April 2001 on the
Deer Trail Mine.  To date, the mining activities have been fairly limited.
Unico presently has eight full time employees.  There have been between 2 and
5 miners at various times working at the Deer Trail Mine.  Some of the
employees have worked on mine maintenance.

     Unico has completed a mill on site at the Deer Trail Mine.  In November
2001 Unico began milling activities.

     Unico has started screening ore dumps on the upper Deer Trail Mine and
moving the screened materials to its ball mill.

Silver Bell Mine.

     In September and December 2000, Unico acquired all of the issued and
outstanding shares of stock of Silver Bell Mining Company, Incorporated, a
Utah corporation, in consideration for the issuance of 3,000,000 restricted
shares of Unico common stock.  Of the 3,000,000 shares of Unico common stock
issued in the acquisition, approximately 2,300,000 shares were issued to W.
Dan Proctor.  W. Dan Proctor is the President and a director of Silver Bell
Mining Company, Incorporated. Mr. Proctor also serves as a business consultant
to Unico and project manager.

     Silver Bell Mining Company, Incorporated was incorporated in the State of
Utah on April 26, 1993.  It has acquired 26 patented mining claims located in
American Fork Canyon, Utah County, Utah, which is organized into three
separate parcels.  The claims contain mining properties which have not been
mined for production since 1983.  The properties were mined primarily for
silver, lead and zinc.  There are no known, proven or probable reserves on the
property.

     Unico has conducted some additional exploration work on the




                                3
<PAGE>


Silver Bell Mine in Summer, 2003, but it is not presently known when Unico
will commence mining activities at the Silver Bell Mine.

Bromide Basin Mines.

     On July 20, 2001, Unico entered into a Mining Lease and Option to
Purchase with Kaibab Industries, Inc., an Arizona corporation.  The parties
then entered into a Revised Mining Lease and Option to Purchase effective
April 1, 2003 (the "Revised Kaibab Mining Lease").  Under the Revised Kaibab
Mining Lease, Kaibab Industries, Inc. has leased to Unico certain mining
claims located in the Henry Mountain Mining District in Garfield County, Utah
containing approximately 400 acres, which includes the Bromide Basin Mines.
The Revised Kaibab Mining Lease runs until March 31, 2005, and grants to Unico
the option to purchase all of the property being leased.  The option is
exercisable during the two year term of the Revised Kaibab Mining Lease.
There are no known, proven or probable reserves on the property.

     Under the Revised Kaibab Mining Lease, Unico has agreed to pay to Kaibab
Industries, Inc. a 5% net smelter return upon all ore taken from the property
during the term of the Revised Kaibab Mining Lease.  The Revised Kaibab Mining
Lease requires Unico to produce a minimum of 2,500 ounces of gold (or to pay
to Kaibab Industries, Inc. a net smelter return equivalent to the amount that
would have been paid if Unico had produced 2,500 ounces of gold) during the
first year ending March 31, 2004, and to produce a minimum of 5,000 ounces of
gold during the second year ending March 31, 2005.  In the event that Unico is
unable to meet the minimum production requirements, then Kaibab Industries,
Inc. may terminate the Revised Kaibab Mining Lease.

     Unico commenced mining efforts on the Bromide Basin Mines in September
2001 with five full time miners.  Because of the Bromide Basin Mine's high
elevation, mining activities are seasonal and generally occur only from June
through November.  Unico is working to extend the El Padre Tunnel
approximately 200 feet to get under the Bromide Vein in order to reach higher
grade ore and make the mining efforts more efficient.  Unico transports the
mined ore to the Deer Trail Mine for further milling and testing.

Item 2.     Management's Discussion and Analysis or Plan of Operation.

     Plan of Operation.

     During the next 12 months, our plan of operation consists of the
following:



                                4
<PAGE>


..    Increase mining activities at the Deer Trail Mine and the Bromide Basin
     Mine;
..    Increase milling activities at the Deer Trail Mine;
..    Continue to screen and process the ore dumps on the upper Deer Trail
     Mine;
..    Ship concentrates to smelters for smelting and refining;
..    Evaluate how best to proceed with mining activities at the Silver Bell
     Mine;
..    Increase the number of full-time employees from 8 to approximately 35;
..    Explore the possibility of obtaining a joint-venture partner to more
     fully develop Unico's mining operations;
..    Explore the possibility of building a small portable gold processing
     plant to be located at the Deer Trail Mine and/or the Bromide Basin Mine
     to recover gold by gravity or flotation means; and
..    Raise a minimum of $250,000 in additional equity capital, loans and/or
     other financing transactions.

     Accomplishing our 12-month plan of operations is dependent on the Company
raising approximately $250,000 in equity or debt financing during the next 2
to 3 months.  The Company's current cash will sustain operations for
approximately 60 days.

Results of Operations.

     During the three months ended August 31, 2003, Unico experienced a net
loss in the amount of $520,775, or approximately ($0.01) per share, compared
to the net loss of $303,244, or approximately ($0.00) per share, for the three
months ended August 31, 2002.  For the six months ended August 31, 2003, Unico
incurred a net loss of $932,699, or approximately ($0.01) per share.  This was
$476,928 more than the net loss of $455,771, or approximately $0.01 per share,
incurred by Unico for the six months ended August 31, 2002.

     For the three months ended August 31, 2003, Unico reported revenues of
$15,450 which is $15,450 greater than the revenues of $0 reported for the
three months ended August 31, 2002. For the six months ended August 31, 2003,
Unico reported revenues of $15,450 which is $15,450 greater than the revenues
of $0 reported


                                5
<PAGE>

for the six months ended August 31, 2002.  The $15,450 of revenues earned in
the three months ended August 31, 2003 was generated from the sale of
concentrates to a smelter in Mexico.  Costs of goods sold for the three and
six month periods ended August 31, 2003 were both $12,180.

    Unico attributes the $217,531 increase in net loss for the three month
period ended August 31, 2003 primarily to a $214,433 increase in general and
administrative expenses, a $1,073 increase in interest expense and a $5,243
increase in depreciation and amortization.  Unico attributes the $476,928
increase in net loss for the six month period ended August 31, 2003 primarily
to a $457,034 increase in general and administrative expenses, a $10,787
increase in interest expense and an $11,883 increase in depreciation and
amortization.

    The substantial increase in general and administrative expenses for the
three and six month periods ended August 31, 2003 is largely attributable to
the issuance of shares of Unico's common stock for services. In the three
months ended August 31, 2003, Unico issued 3,350,000 shares of its common
stock for $335,000 of services compared to the issuance of 10,000 shares of
Unico's common stock for $1,000 of services which occurred during the three
months ended August 31, 2002.  In the six months ended August 31, 2003, Unico
issued 5,050,000 shares of its common stock for $505,000 of services compared
to the issuance of 35,000 shares of Unico's common stock for $3,500 of
services and 150,000 shares for $15,000 of a combination of cash and services
which occurred during the six months ended August 31, 2002.  Unico anticipates
that general and administrative expenses will remain high, and possibly
increase as additional employees are hired in order to increase Unico's mining
operations.

Liquidity and Capital Resources.

     Unico's stockholders' deficit increased $400,143 in the six months ended
August 31, 2003, from a deficit of ($1,208,695) as of February 28, 2003 to a
deficit of ($1,608,838) as of August 31, 2003. Cash and cash equivalents
increased $612 to $34,169 at August 31, 2003 from $33,557 at February 28,
2003.  Cash used in operating activities for the six months ended August 31,
2003 reflects a net loss of $932,699 partially offset by non-cash expenses of
$505,000 for stock issued for services, $49,754 for depreciation expense,
$26,868 increase in accounts payable and other liabilities, and $24,556 for
warrants issued below market value.  Cash used in investing activities
includes $10,350 for the purchase of fixed assets.

     Presently our liquid resources are sufficient to support

                                6
<PAGE>


operations for approximately 60 days.  We are dependent on raising
approximately $250,000 to successfully implement our 12 month business plan
described above.

     Our auditors have issued a "going concern" opinion in note 2 of our
audited financial statements, indicating we do not have established revenues
sufficient to cover our operating costs and to allow us to continue as a going
concern. If we are successful in raising an additional $250,000 in equity or
debt capital or through other financing transactions in the next 2 to 3
months, we believe that Unico will have sufficient funds to meet operating
expenses until income from mining operations should be sufficient to cover
operating expenses.

     We intend to seek additional capital from private sales of Unico's common
stock and, if necessary, from loans from our management and/or others. In the
event income from mining operations is delayed or is insufficient to cover
operating expenses, then Unico will need to seek additional funds from equity
or debt financing, for which we have no commitments.

     ANY FORWARD-LOOKING STATEMENTS INCLUDED IN THIS FORM 10-QSB REFLECT
MANAGEMENT'S BEST JUDGMENT BASED ON FACTORS CURRENTLY KNOWN AND INVOLVE RISKS
AND UNCERTAINTIES.  ACTUAL RESULTS MAY VARY MATERIALLY.

Item 3.     Controls and Procedures.

    (a)     Evaluation of disclosure controls and procedures.

    Ray Brown who serves as both Unico's chief executive officer and its chief
financial officer, after evaluating the effectiveness of Unico's disclosure
controls and procedures (as defined in Exchange Act Rules 13a-14(c) and
15d-14(c) as of a date within 90 days of the filing date of the quarterly
report (the "Evaluation Date") concluded that as of the Evaluation Date,
Unico's disclosure controls and procedures were adequate and effective to
ensure that material information relating to Unico and its consolidated
subsidiaries would be made known to him by others within those entities,
particularly during the period in which this quarterly report was being
prepared.

    (b)     Changes in internal controls.

There were no significant changes in Unico's internal controls or in other
factors that could significantly affect Unico's disclosure controls and
procedures subsequent to the Evaluation

                                7
<PAGE>

Date, nor any significant deficiencies or material weaknesses in such
disclosure controls and procedures requiring corrective actions.  As a result,
no corrective actions were taken.

PART II - OTHER INFORMATION

Item 1.     Legal Proceedings.

     No legal proceedings involving Unico as a defendant were commenced during
the three month period ended August 31, 2003.  No material developments
occurred in any legal proceedings involving Unico as a defendant during the
same period.

Item 2.     Changes in Securities.

     During the three month period ended August 31, 2003, Unico did not make
any sales of shares of Unico's common stock which were not registered under
the Securities Act of 1933.


Item 3.     Defaults Upon Senior Securities.

            None

Item 4.     Submission of Matters to a vote of Security Holders.

            None

Item 5.     Other Information.

            None

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

    (a)     Exhibits

    Exhibit
    Number      Description
    --------    ----------

    31.1        Certification of Chief Executive Officer pursuant to Section
                302 of the Sarbanes-Oxley Act of 2002

    31.2        Certification of Chief Financial Officer pursuant to Section
                302 of the Sarbanes-Oxley Act of 2002

    32.1        Certification of Chief Executive Officer pursuant to Section
                906 of the Sarbanes-Oxley Act of 2002


                                8
<PAGE>


    32.2        Certification of Chief Financial Officer pursuant to Section
                906 of the Sarbanes-Oxley Act of 2002

    (b)         No Current Reports on Form 8-K were filed by Unico during the
quarter ended August 31, 2003.



                                9
<PAGE>

                            SIGNATURES

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

                                      UNICO, INCORPORATED
                                     (Registrant)

                                          /s/ Ray C. Brown
Date: October 17, 2003                By:___________________________________
                                         Ray C. Brown, Chief Executive
                                         Officer and Principal Financial
                                         and Accounting Officer

                                10

<PAGE>


                           APPENDIX "A"


                   UNICO, INC. AND SUBSIDIARIES

                CONSOLIDATED FINANCIAL STATEMENTS

              August 31, 2003 and February 28, 2003

<PAGE> 11

                   UNICO, INC. AND SUBSIDIARIES
                   Consolidated Balance Sheets


                              ASSETS

                                                    August 31,   February 28,
                                                       2003         2003
                                                  ------------- -------------
                                                   (Unaudited)
CURRENT ASSETS

  Cash and cash equivalents                       $     34,169  $     33,557
  Certificate of deposit                                 5,293         5,293
  Employee advances                                        650           650
                                                  ------------- -------------

    Total Current Assets                                40,112        39,500
                                                  ------------- -------------
PROPERTY AND EQUIPMENT

  Property and equipment, net                          887,954       767,203
                                                  ------------- -------------
OTHER ASSETS

  Refundable deposit                                       500           500
  Reclamation bond                                      38,401        38,401
                                                  ------------- -------------

    Total Other Assets                                  38,901        38,901
                                                  ------------- -------------

      TOTAL ASSETS                                $    966,967  $    845,604
                                                  ============= =============








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

                                2
<PAGE> 12

                   UNICO, INC. AND SUBSIDIARIES
             Consolidated Balance Sheets (Continued)


          LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)


                                                    August 31,  February 28,
                                                       2003          2003
                                                  ------------- -------------
                                                   (Unaudited)

CURRENT LIABILITIES

  Bank overdraft                                  $          -  $        411
  Accounts payable                                      42,252        30,271
  Stock subscription payable                            11,000             -
  Accrued expenses                                      12,528         9,778
  Notes payable - related party                        952,417       697,716
  Notes payable - current                              392,000       319,000
  Accrued interest payable                             242,907       216,655
  Accrued interest payable - related party              95,772        69,387
  Commitments and contingencies                        122,115       162,615
                                                  ------------- -------------

    Total Current Liabilities                        1,870,991     1,505,833
                                                  ------------- -------------
LONG-TERM LIABILITIES

  Notes payable - non current                          704,814       548,466
                                                  ------------- -------------

    Total Long-Term Liabilities                        704,814       548,466
                                                  ------------- -------------

    Total Liabilities                                2,575,805     2,054,299
                                                  ------------- -------------
STOCKHOLDERS' EQUITY (DEFICIT)

  Common stock, 100,000,000 shares authorized at
   $0.10 par value; 79,507,974 and 74,427,974
   shares issued and outstanding, respectively       7,950,799     7,442,799
  Additional paid-in capital                           795,437       770,881
  Deficit accumulated prior to exploration stage    (3,788,522)   (3,788,522)
  Deficit accumulated during the exploration stage  (6,566,552)   (5,633,853)
                                                  ------------- -------------

    Total Stockholders' Equity (Deficit)            (1,608,838)   (1,208,695)
                                                  ------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS'
 EQUITY (DEFICIT)                                 $    966,967  $    845,604
                                                  ============= =============


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

                                3
<PAGE> 13
<TABLE>
<CAPTION>


                      UNICO, INC. AND SUBSIDIARIES
                  Consolidated Statements of Operations
                               (Unaudited)

                                                                                   From
                                                                                   Inception
                                                                                   of the
                                                                                   Exploration
                                                                                   Stage on
                           For the Three Months Ended   For the Six Months Ended   March 1,
                                    August 31,                 August 31,          1997 Through
                           --------------------------- --------------------------- August 31,
                               2003          2002          2003          2002      2003
                           ------------- ------------- ------------- ------------- -------------

                        <c>           <c>           <c>           <c>           <c>
REVENUES                   $     15,450  $          -  $     15,450  $          -  $     15,450

COST OF SALES                    12,180             -        12,180             -        12,180
                           ------------- ------------- ------------- ------------- -------------

  Gross Margin                    3,270             -         3,270             -         3,270
                           ------------- ------------- ------------- ------------- -------------
EXPENSES

  Bad debt expense                    -             -             -             -       279,260
  General and administrative    452,004       237,571       795,516       338,482     4,571,839
  Depreciation and
   amortization                  24,999        19,756        49,754        37,871       351,897
                           ------------- ------------- ------------- ------------- -------------

    Total Expenses              477,003       257,327       845,270       376,353     5,202,996
                           ------------- ------------- ------------- ------------- -------------

      Loss from Operations     (473,733)     (257,327)     (842,000)     (376,353)   (5,199,726)
                           ------------- ------------- ------------- ------------- -------------
OTHER INCOME (EXPENSES)

  Interest income                   106           158           106           600        14,063
  Interest expense              (47,148)      (46,075)      (90,805)      (80,018)     (990,359)
  Decline in value of assets          -             -             -             -      (651,810)
  Settlement of debt                  -             -             -             -       (91,000)
  Loss on valuation of assets         -             -             -             -      (309,817)
  Gain on expiration of debt          -             -             -             -       638,025
  Gain on gold contract               -             -             -             -        24,072
                           ------------- ------------- ------------- ------------- -------------
    Total Other Income
    (Expenses)                  (47,042)      (45,917)      (90,699)      (79,418)   (1,366,826)
                           ------------- ------------- ------------- ------------- -------------

NET LOSS                   $   (520,775) $   (303,244) $   (932,699) $   (455,771) $ (6,566,552)
                           ============= ============= ============= ============= =============

NET LOSS PER SHARE         $      (0.01) $      (0.00) $      (0.01) $      (0.01)
                           ============= ============= ============= =============
WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING       78,051,930    74,026,711    76,703,137    72,985,528
                           ============= ============= ============= =============





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

                                    4
</TABLE>
<PAGE> 14
<TABLE>
<CAPTION>


                      UNICO, INC. AND SUBSIDIARIES
        Consolidated Statements of Stockholders' Equity (Deficit)


                                              Common Stock          Additional
                                        --------------------------- Paid-In       Accumulated
                                           Shares        Amount     Capital       Deficit
                                        ------------- ------------- ------------- -------------

                                     <c>           <c>           <c>           <c>
Balance, February 28, 2003                74,427,974  $  7,442,799  $    770,881  $ (9,422,375)

March 6, 2003, common stock issued
 for services at $0.10 per share
 (unaudited)                                  50,000         5,000             -             -

March 14, 2003 common stock issued
  for services at $0.10 per share
 (unaudited)                                 350,000        35,000             -             -

April 1, 2003 common stock issued
 for services at $0.10 per share
 (unaudited)                                 300,000        30,000             -             -

April 4, 2003 common stock issued
 for services at $0.10 per share
 (unaudited)                                 300,000        30,000             -             -

April 14, 2003 common stock issued
 for services at $0.10 per share
 (unaudited)                                 350,000        35,000             -             -

April 22, 2003 common stock issued
 for cash at $0.10 per share
 (unaudited)                                  30,000         3,000             -             -

April 23, 2003 common stock issued
 for services at $0.10 per share
 (unaudited)                                 350,000        35,000             -             -

June 3, 2003, common stock issued
 for services at $0.10 per share
 (unaudited)                                 350,000        35,000             -             -

June 16, 2003, common stock issued
 for services at $0.10 per share
 (unaudited)                                 350,000        35,000             -             -

June 23, 2003, common stock issued
 for services at $0.10 per share
 (unaudited)                                 500,000        50,000             -             -

June 23, 2003, common stock issued
 for services at $0.10 per share
 (unaudited)                                 350,000        35,000             -             -
                                        ------------- ------------- ------------- -------------

Balance forward                           78,057,974  $  7,805,799  $    770,881  $ (9,422,375)
                                        ------------- ------------- ------------- -------------

The accompanying notes are an integral part of these consolidated financials statements.

                                    5



</TABLE>
<PAGE> 15
<TABLE>
<CAPTION>

                      UNICO, INC. AND SUBSIDIARIES
  Consolidated Statements of Stockholders' Equity (Deficit)(Continued)


                                              Common Stock          Additional
                                        --------------------------- Paid-In       Accumulated
                                           Shares        Amount     Capital       Deficit
                                        ------------- ------------- ------------- -------------

                                     <c>           <c>           <c>           <c>
Balance forward                           78,057,974  $  7,805,799  $    770,881  $ (9,422,375)

July 1, 2003, common stock issued
 for services at $0.10 per share
 (unaudited)                                 350,000        35,000             -             -

July 8, 2003, common stock issued
 for services at $0.10 per share
 (unaudited)                                 200,000        20,000             -             -

July 28, 2003, common stock issued
 for services at $0.10 per share
 (unaudited)                                 350,000        35,000             -             -

August 1, 2003, common stock issued
 for services at $0.10 per share
 (unaudited)                                 200,000        20,000             -             -

August 11, 2003, common stock issued
 for services at $0.10 per share
 (unaudited)                                 250,000        25,000             -             -

August 29,2003, common stock issued
 for services at $0.10 per share
 (unaudited)                                 450,000        45,000             -             -

Additional expense recognized on
 stock warrants granted (unaudited)                -             -        24,556             -

Net loss for the six months
 ended  August 31, 2003
 (unaudited)                                       -             -             -      (932,699)
                                        ------------- ------------- ------------- -------------
Balance, August 31, 2003
 (unaudited)                              79,507,974  $  7,950,799  $    795,437  $(10,355,074)
                                        ============= ============= ============= =============

Deficit accumulated prior to the exploration stage                                $ (3,788,522)
Deficit accumulated during the exploration stage                                    (6,566,552)
                                                                                  -------------

Total accumulated deficit                                                         $(10,355,074)
                                                                                  =============



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

                                    6
</TABLE>
<PAGE> 16
<TABLE>
<CAPTION>

                       UNICO, INC. AND SUBSIDIARIES
                  Consolidated Statements of Cash Flows
                               (Unaudited)

                                                                                        From
                                                                                      Inception
                                                                                       of the
                                                                                     Exploration
                                                                                      Stage on
                                                         For the Six Months Ended      March 1,
                                                                 August 31,         1997 Through
                                                        ---------------------------   August 31,
                                                            2003          2002          2003
                                                        ------------- ------------- -------------

                                                     <c>           <c>           <c>
CASH FLOWS FROM OPERATING ACTIVITIES

  Net loss                                              $   (932,699) $   (455,771) $ (6,566,552)
  Adjustments to reconcile net loss to
   net cash and cash equivalents used
   by operating activities:
     Stock issued for services                               505,000         8,500     1,831,099
     Bad debt expense                                              -             -       279,260
     Warrants issued below market value                       24,556             -       179,556
     Pre-paid services expensed                                    -         3,460             -
     Depreciation expense                                     49,754        37,871       351,897
     Loss on disposition of asset                                  -             -       (21,055)
     Settlement of debt                                            -             -        19,000
     Gain on expiration of debt                                    -             -      (638,025)
     Gain on gold contract                                         -             -       (24,072)
     Decline in value of assets                                    -             -       960,960
  Changes in operating assets and liabilities:
     Decrease in accounts receivable
      and related receivables                                      -          (650)          (65)
     (Increase) in other assets                                    -             -        (6,192)
     Decrease in prepaid expenses                                  -             -         3,460
     Increase in accounts payable and
      other liabilities                                       26,868         6,764     1,002,561
                                                        ------------- ------------- -------------

       Net Cash Used by Operating Activities                (326,521)     (399,826)   (2,628,168)
                                                        ------------- ------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES

  Increase in receivable-related party                             -       (20,000)            -
  Purchase of land                                                 -             -       (50,000)
  Decrease in investment                                           -             -        95,068
  Purchase of fixed assets                                   (10,350)      (64,307)     (572,765)
                                                        ------------- ------------- -------------

       Net Cash Used by Investing Activities                 (10,350)      (84,307)     (527,697)
                                                        ------------- ------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES

  Increase (decrease) in bank overdraft                         (411)       (4,055)            -
  Proceeds from notes payable - related party                254,701        63,795     1,365,613
  Proceeds from notes payable                                 80,000       595,000       698,000
  Payments on notes payable                                  (10,807)      (15,792)     (162,341)
  Issuance of stock for cash                                   3,000        30,000     1,231,750
  Increase in stock subscription payable                      11,000             -        11,000
  Receipt of stock subscription receivable                         -             -        41,990
                                                        ------------- ------------- -------------

       Net Cash Provided by Financing Activities        $    337,483  $    668,948  $  3,186,012
                                                        ------------- ------------- -------------

The accompanying notes are an integral part of these consolidated financial statements.
                                    7
</TABLE>
<PAGE> 17
<TABLE>
<CAPTION>


                       UNICO, INC. AND SUBSIDIARIES
            Consolidated Statements of Cash Flows (Continued)
                               (Unaudited)

                                                                                       From
                                                                                 Inception of the
                                                                                    Exploration
                                                                                     Stage on
                                                         For the Six Months Ended      March 1,
                                                                 August 31,         1997 Through
                                                        ---------------------------  August 31,
                                                            2003          2002          2003
                                                        ------------- ------------- -------------

                                                     <c>           <c>           <c>
NET INCREASE IN CASH AND CASH EQUIVALENTS               $        612  $    184,815  $     30,147

CASH AND CASH EQUIVALENTS AT  BEGINNING OF PERIOD             33,557        33,009         4,022
                                                        ------------- ------------- -------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD              $     34,169  $    217,824  $     34,169
                                                        ============= ============= =============
CASH PAID DURING THE PERIOD FOR:

  Interest                                              $     38,168  $     31,876  $     58,980
  Income taxes                                          $          -  $          -  $          -

NON-CASH INVESTING AND FINANCING ACTIVITIES:

  Issuance of stock for services                        $    505,000  $      8,500  $  1,831,099
  Issuance of stock for debt                            $          -  $     33,000  $  1,384,069
  Issuance of stock for subsidiary acquisition          $          -  $          -  $    309,150
  Issuance of stock for fixed assets                    $          -  $          -  $     58,400
  Issuance of stock for prepaid services                $          -  $          -  $      3,460
  Acquisition of assets with note payable               $    160,155  $          -  $    160,155





















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

                                    8
</TABLE>
<PAGE> 18


                   UNICO, INC. AND SUBSIDIARIES
          Notes to the Consolidated Financial statements
              August 31, 2003 and February 28, 2003


NOTE 1 - CONDENSED FINANCIAL STATEMENTS

The accompanying unaudited consolidated financial statements have been
prepared by the Company pursuant to the rules and regulations of the
Securities and Exchange Commission.  Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with accounting principles generally accepted in the United States of America
have been condensed or omitted in accordance with such rules and regulations.
The information furnished in the interim consolidated financial statements
include normal recurring adjustments and reflects all adjustments, which, in
the opinion of management, are necessary for a fair presentation of such
financial statements.  Although management believes the disclosures and
information presented are adequate to make the information not misleading, it
is suggested that these interim consolidated financial statements be read in
conjunction with the Company's most recent audited consolidated financial
statements and notes thereto included in its February 28, 2003 Annual Report
on Form 10-KSB.  Operating results for the six months ended August 31, 2003
are not necessarily indicative of the results that can be expected for the
year ending February 28, 2004.

NOTE 2 - GOING CONCERN

The Company's consolidated financial statements are prepared using accounting
principles generally accepted in the United States of America applicable to a
going concern which contemplates the realization of assets and liquidation of
liabilities in the normal course of business.  The Company has incurred losses
from its inception through August 31, 2003.   It has not established revenues
sufficient to cover its operating costs and to allow it to continue as a going
concern.  During the next 12 months, the Company's plan of operation consists
of the following:

..    Increase mining activities at the Deer Trail and Bromide Basin Mines;
..    Increase milling activities at the Deer Trail Mine;
..    Continue to screen and process the ore dumps on the upper Deer Trail
     Mine;
..    Ship concentrates to smelters for smelting and refining;
..    Evaluate how best to proceed with mining activities at the Silver Bell
     Mine;
..    Increase the number of full-time employees from 8 to approximately 35;
..    Explore the possibility of obtaining a joint-venture partner to more
     fully develop the Company's operations;
..    Explore the possibility of building a small portable gold processing
     plant to be located at the Deer Trail Mine and/or the Bromide Basin Mine
     to recover gold by gravity or floatation means; and
..    Raise a minimum of $250,000 in additional equity capital, loans, and/or
     other financing transactions.







                                9
<PAGE> 19


                   UNICO, INC. AND SUBSIDIARIES
          Notes to the Consolidated Financial statements
              August 31, 2003 and February 28, 2003


NOTE 2 - GOING CONCERN (Continued)

Management believes the Company's current cash as of August 31, 2003, will
sustain operations for approximately two additional months.  In the event
income from mining operations is delayed or is insufficient to cover operating
expenses, the Company will need to seek additional funds from equity or debt
financing, for which the Company has
no current commitments.  In the interim, management is committed to meeting
the minimum operating needs of the Company.

NOTE 3 -  MATERIAL EVENTS

During the six months ended August 31, 2003, the Company borrowed an
additional $254,701 from a related party.  At August 31, 2003, the total
balance on this related party note was $926,698, plus an additional $91,627 in
accrued interest.  Additionally, the Company borrowed $75,000 from an
unaffiliated individual.  This note bears interest at a rate of 10.0% per
annum, and has no formal payment terms.

During the six months ended August 31, 2003, the Company issued 5,050,000
shares of common stock to various consultants for services rendered.  These
shares were valued by the Company at $0.10 per share.  Additionally, the
Company issued 30,000 shares of common stock for cash at $0.10 per share to an
unaffiliated individual.

On April 1, 2003, the Company elected to purchase certain fixed assets from an
unaffiliated entity for $165,000.  As a part of this purchase, certain of
these fixed assets were expensed as minor supplies, while capitalizing a total
of $160,155.  Per the terms of the asset purchase agreement, the seller agreed
to finance the purchase price of $165,000 for the Company, such that the
Company is to make 24 monthly installment payments of $2,000, with the
remaining outstanding balance due on April 1, 2005.  The note bears interest
at a rate of 10.0% per annum.  The principal balance on this note at August
31, 2003 was $154,348, with $3,859 in accrued interest.

NOTE 4 - OUTSTANDING STOCK OPTIONS AND WARRANTS

During the six months ended August 31, 2003, the Company granted 2,030,000
common stock warrants to purchase the Company's common stock.  Each option and
warrant is convertible into one share of common stock at an exercise price of
$0.10 per share.  The options and warrants have been granted as compensation
for consulting services and as incentives for the purchase of common stock for
cash, and generally have a life of two to three years.









                                10
<PAGE> 20



                   UNICO, INC. AND SUBSIDIARIES
          Notes to the Consolidated Financial statements
              August 31, 2003 and February 28, 2003


NOTE 4 - OUTSTANDING STOCK OPTIONS AND WARRANTS (Continued)

A summary of the Company's outstanding stock options as of August 31, 2003,
including all changes during the six months ended August 31, 2003

                                                                 Weighted
                                                                 Average
                                                    Shares     Exercise Price
                                                 ------------- -------------
   Options outstanding at August 31, 2003:

     Options issued in 2002                         2,493,890          0.11
     Options issued in 2003                         2,030,000          0.10
                                                 ------------- -------------

      Total options outstanding, August 31, 2003    4,523,890        $ 0.11
                                                 ============= =============

    Exercisable, August 31, 2003                    4,523,890        $ 0.10
                                                 ============= =============

 Summary of activity for the six months ended August 31, 2003:

     Granted                                        2,030,000        $ 0.10
     Canceled                                               -             -
     Exercised                                              -             -
     Expired                                        2,134,151

NOTE 5 - SUBSEQUENT EVENTS

On September 5, 2003, the company issued 545,000 shares of common stock for
cash of $54,500 valued at $0.10 per share. Each share of common stock was
issued with one stock warrant with an exercise price of $0.10 per warrant for
a total of 545,000 warrants expiring on September 5, 2005.

On September 5, 2003, the company issued 200,000 shares of common stock for
the purchase of fixed assets valued at $0.10 per share or $20,000.



                                11
<PAGE> 21