U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                                   (Mark One)
               [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 2001

               [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
                                THE EXCHANGE ACT

                       For the transition period from to

                          Commission File No. 000-30311

                                SEGWAY III CORP.
                 (Name of Small Business Issuer in Its Charter)

                                   New Jersey
                        (State of Other Jurisdiction of
                         Incorporation or Organization)

                                   22-3719165
                                (I.R.S. Employer
                              Identification No.)

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

                                 (732) 409-1212
                (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 Exchange Act 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

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of November 7, 2001 the Company
had 5,250,000 shares of Common Stock outstanding, $0.0001 par value.

<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements:

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, 2001 are not necessarily indicative of results that
may be expected for the year ending December 31, 2001. The financial statements
are presented on the accrual basis.

<PAGE>

                                 Segway III Corp.
                              Financial Statements

                                Table of Contents
<TABLE>
<CAPTION>
FINANCIAL STATEMENTS                                    Page #
<S>                                                     <C>
         Balance Sheet                                  1

         Statement of Operations                        2

         Statement of Stockholders' Equity              3

         Statement of Cash Flows                        4

         Notes to the Financial Statements              5-7

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

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

Signatures

</TABLE>

<PAGE>

                                SEGWAY III CORP.
                                  BALANCE SHEET

                            As of September 30, 2001

                              and December 31, 2000

                                     ASSETS
<TABLE>
<CAPTION>
CURRENT ASSETS                       September 30, 2001       December 31, 2000
                                     ------------------       -----------------
<S>                                     <C>                  <C>
        Cash                            $         19         $         88
                                        ------------         ------------
           TOTAL ASSETS                 $         19         $         88
                                        ============         ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

    Accrued expenses                    $        475         $       175
                                        ------------         -----------

           TOTAL LIABILITIES                     475                 175
                                        ------------         -----------

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                    325                  225

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

  Accumulated Deficit                        (1,306)                (837)
                                        ------------         -----------

  Total stockholders' equity                   (456)                 (87)
                                        ------------         -----------

      TOTAL LIABILITIES AND EQUITY      $         19          $       88
                                        ============          ==========
</TABLE>

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

<PAGE>

                                SEGWAY III CORP.
                             STATEMENT OF OPERATIONS

                  For the nine months ended September 30, 2001,
         from inception (March 31, 2000) through September 30, 2000, and
             from inception (March, 2000) through September 30, 2001
<TABLE>
<CAPTION>
                                                   Nine Months      From Inception to     From Inception
                                               September 30, 2001  September 30, 2000  To September 30, 2001
                                               ------------------  ------------------  ---------------------
<S>                                                 <C>                  <C>                   <C>
REVENUE                    Sales                    $     0              $     0               $     0
                           Cost of sales                  0                    0                     0
                                                   --------              -------               -------

     GROSS PROFIT                                         0                    0                     0

     GENERAL AND ADMINISTRATIVE EXPENSES                469                  704                 1,306
                                                   --------              -------               -------

     NET LOSS                                          (469)                (704)              $(1,306)
                                                                                               =======
     ACCUMULATED DEFICIT, BEGINNING BALANCE            (837)                   0
                                                   --------              -------

     ACCUMULATED DEFICIT, ENDING BALANCE           $ (1,306)             $  (704)
                                                   ========              =======

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
</TABLE>

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

<PAGE>

                                SEGWAY III CORP.
                             STATEMENT OF OPERATIONS

                 For the three months ended September 30, 2001,
                   and from inception (March 31, 2000) through
                               September 30, 2000
<TABLE>
<CAPTION>
                                                   September 30, 2001  September 30, 2000
                                                   ------------------  ------------------
<S>                                                   <C>                 <C>
REVENUE                    Sales                      $          0        $        0
                           Cost of sales                         0                 0
                                                      ------------        ----------
     GROSS PROFIT                                                0                 0

     GENERAL AND ADMINISTRATIVE EXPENSES                       148               173
                                                      ------------        ----------
     NET LOSS                                         $       (148)       $     (173)
                                                      ============        ==========
</TABLE>

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

<PAGE>

                                SEGWAY III CORP.
                     STATEMENT OF STOCKHOLDERS' EQUITY From
              inception (March 31, 2000)through September 30, 2001
<TABLE>
<CAPTION>
                               SHARES          COMMON STOCK     ACCUMULATED DEFICIT      TOTAL
                           -------------      -------------     -----------------     ------------
<S>                           <C>                 <C>               <C>                   <C>
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                                       100                                     100

Net loss                                                                    (469)             (469)
                            -------------      -------------      ---------------      ------------

Total at September 30, 2001   5,250,000         $      850           $    (1,306)        $    (456)
                            =============      =============      ===============      ============
</TABLE>

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

<PAGE>

                                SEGWAY III CORP.
                             STATEMENT OF CASH FLOWS

                  For the nine months ended September 30, 2001,
                   and from inception (March 31, 2000) through
                               September 30, 2001
<TABLE>
<CAPTION>
CASH FLOWS FROM OPERATING ACTIVITIES                September 30, 2001  From Inception
                                                    ------------------  --------------
<S>                                                    <C>               <C>
        Net income (loss)                              $      (469)      $ (1,306)

        Increases (Decrease) in accrued expenses               300            475
                                                       -------------    ----------

    NET CASH PROVIDED OR (USED) IN OPERATIONS                 (169)          (831)

CASH FLOWS FROM FINANCING ACTIVITIES

        None                                                     0              0

CASH FLOWS FROM INVESTING ACTIVITIES

        Proceeds from issuance of common stock                   0            750
        Proceeds from capital contributions                    100            100
                                                        ------------     ---------

                                                               100            850

CASH RECONCILIATION

        Net increase (decrease) in cash                       (69)             19
        Beginning cash balance                                 88               0
                                                          -----------   -----------
CASH BALANCE AT END OF YEAR                                    19              19
                                                          ===========   ===========
</TABLE>

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

<PAGE>

                                SEGWAY III CORP.

------------------------------------------------------------------------------

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.

<PAGE>

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.

<PAGE>

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 to Richard I. Anslow
and Gregg E. Jaclin. The shareholders contributed an additional $100 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.

<PAGE>

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

Plan of Operation

We are continuing our 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, 2001. For the quarter ended September 30, 2001, we recognized a
net loss of $148. 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, 2001, 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.

<PAGE>

                           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

<PAGE>

                                   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, on November 7, 2001.

     SEGWAY III CORP.

     By:/s/ Richard I. Anslow, President
     -----------------------------------
            Richard I. Anslow
            President