SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   ----------

                                   FORM 10-QSB

[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934 For the Quarterly Period Ended June 30, 2001.

                                       or

[_]  Transition  Report  Pursuant  to  Section  13 or  15(d)  of the  Securities
     Exchange  Act of 1934  for  the  transition  period  from  ____________  to
     ____________

                         Commission File Number 000-27592

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

                             TECH LABORATORIES, INC.
             (Exact name of registrant as specified in its charter)

             New Jersey                                         22-1436279
  (State or other jurisdiction of                            (I.R.S. Employer
   incorporation or organization)                           Identification No.)

         955 Belmont Avenue
          North Haledon, NJ
                                                                        07508
      (Address of Registrant's                                        (Zip Code)
     principal executive office)

       Registrant's telephone number, including area code: (973) 427-5333

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                                 Yes [X]       No [_]

     The number of shares of Common Stock, par value $.01 per share, outstanding
as of the latest  practicable  date: As of August 10, 2001 there were  4,717,827
shares outstanding.



<PAGE>


                             Tech Laboratories, Inc.

                                    FORM 10-QSB

                                Table of Contents


PART I. FINANCIAL INFORMATION
Item 1.  Financial Statements...............................................   1
         Balance  Sheets as of June 30, 2000
         And 2001 (unaudited)...............................................   1
         Statements of Operations -- For the Second Quarter
           And Six Months Ended June 30, 2000 and 2001......................   3
         Statements of Cash Flows -- For the Six
           Months Ended June 30, 2000 and 2001 (unaudited)..................   4
         Notes to Consolidated Financial Statements.........................   5
Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations................................   7
Item 5.  Other Information..................................................   7
Item 6.  Exhibits and Reports on Form 8-K...................................   7


         Signature..........................................................   8


                                      -i-

<PAGE>


                                     PART I

                              FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS


                             TECH LABORATORIES, INC.
                                  BALANCE SHEET
                             JUNE 30, 2000 AND 2001

                                   (UNAUDITED)


                                     ASSETS

                                                              FOR THE
                                                             SIX MONTHS
                                                           ENDED JUNE 30,
                                                          2000         2001
                                                       ----------   ----------
Current Assets:
     Cash                                              $1,858,874   $2,016,546
     Marketable Securities, at the Lower of
          Cost or Market                                   61,453       79,116
     Accounts Recievable, net of Allowance
          for Doubtful Accounts of $10,000                173,123      154,467
     Inventories                                          951,362    1,532,319
     Prepaid Expenses                                       4,055        4,055
                                                       ----------   ----------

               Total Current Assets                    $3,048,867   $3,786,503
                                                       ----------   ----------

Property, Plant and Equipment, at Cost
     Leasehold Improvements                                 2,247        2,247
     Machinery, Equipment and Instruments                 410,425      534,440
     Furniture and Fixtures                                76,594       91,851
                                                       ----------   ----------
          Total Property, Plant & Equipment            $  489,266   $  628,538
     Less: Accumulated Depreciation & Amortization        314,162      358,670
                                                       ----------   ----------
          Net, Property, Plant and Equipment           $  175,104   $  269,868
                                                       ----------   ----------

Other Assets                                           $   11,541   $   12,059
                                                       ----------   ----------

          Total Assets                                 $3,235,512   $4,068,430
                                                       ----------   ----------


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


                                     - 1 -

<PAGE>


                             TECH LABORATORIES, INC.
                                  BALANCE SHEET
                             JUNE 30, 2000 AND 2001

                                   (UNAUDITED)


                    LIABILITIES AND STOCKHOLDERS' INVESTMENTS

                                                             FOR THE
                                                            SIX MONTHS
                                                          ENDED JUNE 30,

                                                          2000          2001
                                                      -----------   -----------

Current Liabilities:
     Current Portion of Long Term Debt                $    27,790   $    34,444
     Short-Term Loans Payable                              79,956        73,593
     Accounts Payable                                      26,793        57,100
     Other Liabilities                                     25,684        71,077
                                                      -----------   -----------
                 Total Current Liabilities            $   160,223   $   236,214
                                                      ===========   ===========

     Long Term Convertible Notes                                0   $ 1,228,774

Stockholders; Investment:
     Common Stock $.01 Par Value;
     10,000,000 Shares Authorized:
        3,949,039 shares outstanding in 2000
          and 4,663,919 in 2001                       $    39,492   $    47,060
     Less: 11,316 Shares Reacquired and
          Held in Treasury                                   (113)         (113)
                                                      -----------   -----------
                                                      $    39,379   $    46,947

     Capital Contributed in Excess of Par Value         4,076,972     4,351,268
     Retained Earnings/ (Accum. Deficit)               (1,041,062)   (1,794,773)
                                                      -----------   -----------
                                                        3,035,910     2,603,442
                                                      -----------   -----------
          Total Liabilities and Stockholders'
                 Equity                               $ 3,235,512   $ 4,068,430
                                                      -----------   -----------


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


                                     - 2 -

<PAGE>


                             TECH LABORATORIES, INC.
                             STATEMENT OF OPERATIONS
                             JUNE 30, 2000 AND 2001


                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                          FOR THE                              FOR THE
                                                                       THREE MONTHS                           SIX MONTHS
                                                                       ENDED JUNE 30,                       ENDED JUNE 30,


                                                                  2000              2001               2000               2001
                                                               -----------      -----------        -----------        -----------

<S>                                                            <C>              <C>                <C>                <C>
Sales                                                          $   264,410      $   154,278        $   583,653        $   360,478
                                                               -----------      -----------        -----------        -----------

Costs and Expenses:
     Cost of Sales                                                  96,505           65,914            237,127            226,864
     Selling, General and Administrative
          Expenses                                                 136,982          132,950            265,504            379,035
                                                               -----------      -----------        -----------        -----------
                                                                   233,487          198,864            502,631            605,899
                                                               -----------      -----------        -----------        -----------

Income/(loss) from Operations                                  $    30,923      $   (44,586)       $    81,022        $  (245,421)
                                                               -----------      -----------        -----------        -----------

Other Income (Expenses):
     Interest Income                                                13,786           21,317             13,786             50,212
     Interest Expense                                               (5,465)         (26,129)            (5,465)           (50,504)
                                                               -----------      -----------        -----------        -----------
                                                                     8,321           (4,812)             8,321               (292)

Income/(Loss) Before Income Taxes                              $    39,244      $   (49,398)       $    89,343        $  (245,713)
Provision for Income Taxes                                               0                0                  0                  0
                                                               -----------      -----------        -----------        -----------
Net Income/(Loss)                                              $    39,244      $   (49,398)       $    89,343        $  (245,713)

Retained Earnings/(Accum. Deficit), Beg. Yr                     (1,080,306)      (1,745,375)        (1,130,405)        (1,549,060)
                                                               -----------      -----------        -----------        -----------
Retained Earnings/(Accum. Deficit), End. Yr                    $(1,041,062)     $(1,794,773)       $(1,041,062)       $(1,794,773)
                                                               -----------      -----------        -----------        -----------

Primary Earnings
     Per Share                                                 $      0.01      $     (0.01)       $      0.02        $     (0.06)

Fully Diluted Earnings
     Per Share                                                 $      0.01      $     (0.01)       $      0.01        $     (0.03)
</TABLE>


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


                                     - 3 -
<PAGE>


                             TECH LABORATORIES, INC.
                             STATEMENTS OF CASH FLOW
                 FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 2001

                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                            2000                        2001
                                                         -----------                -----------
<S>                                                      <C>                        <C>
Cash Flow From (for) Operating Activities:
    Net Income/ (Loss) From Operations                   $    89,343                $  (245,713)

    ADD/(Deduct) Items Not Affecting Cash:
          Depreciation/Amortization                              -0-                     15,906
          Unrealized (Gain)/Loss on Valuation of
              Marketable Securities                              -0-                        213

    Changes in Operating Assets and Liabilities:
          Marketable Securities                                  -0-                    (14,783)
          Accounts Receivable                               (115,426)                   (60,515)

          Inventories                                       (134,659)                  (245,481)
          Accounts Payable                                  (233,952)                    24,139
          Other Assets/Liabilities                            22,494                     89,918
                                                         -----------                -----------
Net Cash Flow For Operating Activities                   $  (372,200)               $  (436,316)
                                                         -----------                -----------
Cash Flows From (For) Investing Activities
    Addition of Machinery and Equipment                      (31,306)                   (77,588)
                                                         -----------                -----------
Net Cash Flows From Investing Activities                 $   (31,306)               $   (77,588)
                                                         -----------                -----------

Cash Flows From (For) Financing Activities:

     Acquisition/(Repayment) of Short/Long Term Debt        (164,186)                  (291,544)
     Issuance of Common Stock                              2,263,641                    298,548
                                                         -----------                -----------
Net Cash Flows From (For) Financing Activities           $ 2,099,455                $     7,004
                                                         -----------                -----------
Net Increase/(Decrease) in Cash                          $ 1,695,949                $  (506,900)
Cash Balance Beginning of Year                               162,925                  2,523,446
                                                         -----------                -----------
Cash Balance End of First Quarter                        $ 1,858,874                $ 2,016,546
                                                         -----------                -----------
</TABLE>


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


                                     - 4 -
<PAGE>

                             TECH LABORATORIES, INC.
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2001
                                  (UNAUDITED)


(1)  Summary of Significant Accounting Policies

CASH - Includes  Tech Labs'  checking  account at Hudson  United  Bank and money
market  accounts at Prudential  Securities  and Bear Stearns.  There are no Cash
Equivalents.

     ACCOUNTS RECEIVABLE - Tech Labs recognizes sales when orders are shipped to
customers.  The allowance for bad debts is accrued based on a review of customer
accounts receivables aging.

     INVENTORIES - Inventories are valued at cost or market, whichever is lower.
The FIFO cost method is generally used to determine the cost of the inventories.
At December 31, 1998, 1999, and 2000 physical inventories were taken and tested.
No physical inventory was taken on June 30, 2001.

PROPERTY AND  DEPRECIATION - Additions to property and equipment are recorded at
cost. Depreciation is computed using the straight-line method over the estimated
useful lives of the assets as follows:

                           ASSETS                ESTIMATED USEFUL LIVES

                           Machinery                 5 to 7 years
                           Furniture & Fixtures      5 to 7 years

Maintenance  and  repairs  are  charged to  expenses  as  incurred.  The cost of
betterments is capitalized and depreciated at appropriate rates. Upon retirement
or other  disposition of property items,  cost and accumulated  depreciation are
removed from the accounts and any gain or loss is reflected in the  statement of
income.

INCOME  TAXES - Income tax expense is based on reported  income and deferred tax
credit is provided for temporary differences between book and taxable income.

MARKETABLE  SECURITIES - The marketable  securities are recorded at the lower of
cost or market.  The cost of  securities  was $64,333 at  December  31, 2000 and
$79,116 at June 30, 2001.

(2)  Inventories:

Inventories at December 31, 2000 and June 30, 2001 were as follows:

                                           December 31,
                                              2000       June 30, 2001
                                           ----------    --------------
     Raw Materials & Finished Components   $  912,358    $      717,693
     Work in Process & Finished Goods         374,480           814,626
                                           ----------    --------------
                                           $1,286,838    $    1,532,319
                                           ----------    --------------

(3)  Income/(loss) Per Share:

Primary  Income/(loss)  per share was calculated on the weighted  average shares
outstanding.  As of June 30, 2001,  weighted  average shares  outstanding  were
4,663,919.

Fully Diluted  Income/(loss)  per share was  calculated on the weighted  average
shares above plus 2,737,909 shares from the assumed  conversion of the remaining
balance of the convertible notes issued in October, 2000.


                                     - 5 -

<PAGE>


(4)  Income Taxes:

Since the  Company  has an  operating  loss carry  forward of  $2,292,591  as of
December 31, 2000, no interperiod tax allocation was made.

(5)  Current Portion of Long-Term Debt:

Loans payable to banks were as follows for the periods indicated:

                                                       CURRENT       NON-CURRENT
PERIOD ENDED      PAYEE               INTEREST RATE     AMOUNT          AMOUNT
--------------    -----               -------------     ------          ------

June 30, 2000     Hudson United Bank  Prime +1.5%      $27,790            --
June 30, 2001     Hudson United Bank  Prime +1.5%      $34,444            --

Certain marketable securities are pledged as collateral on the above loan.

(6)  Short-Term Loans Payable

Demand loans payable include loans from stockholders,  officers,  members of the
Board of Directors and third parties.  The  outstanding  loan balances due as of
December   31,  2000  and  as  of  June  30,  2001  were  $73,759  and  $73,583,
respectively.  The annual  interest rate for these loans ranged between six (6%)
percent  and ten (10%)  percent.  One loan in the  principal  amount of  $11,500
together with accrued interest of $7,267 at December 31, 2000, is secured by the
assets of Tech Labs. In October of 1999,  three  short-term loans for a total of
$200,000  at  ten  (10%)  percent  annual  interest  were   completed.   Certain
contractural  revenues  were pledged to secure  these loans.  As of December 31,
2000,  $150,000  of  such  loans  were  repaid  and  $50,000  presently  remains
outstanding and is due by December 31, 2001.

(7)  Common Stock

In 1999,  Tech Labs  commenced  a public  offering to raise  between  $2,000,000
(minimum) and $3,500,000 (maximum).  The Company's  registration statement filed
on Form SB-2 was  declared  effective  on February  3, 2000.  The  offering  was
completed on May 3, 2000 and a total of $2,273,723 was raised.

(8)  Long-Term Convertible Debt

On  October  13,  2000 Tech Labs  completed  a $1.5  million  financing  of 6.5%
convertible promissory notes due October 13, 2002. Interest is payable quarterly
in cash or in shares of common stock at the option of the noteholders. Tech Labs
disclosed all terms of this  financing on Form 8-K filed on October 18, 2000. As
of June 30,  2001  $271,226  of  principal  on the  convertible  notes  has been
converted into shares of the Company's common stock.


                                     - 6 -

<PAGE>


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

The information contained in this section should be read in conjunction with the
consolidated  Financial  Statements  and Notes thereto  appearing in this report
Form 10QSB and the Company's Annual Report for the year ended December 31, 2000.

     Quarter ending June 30, 2001, Compared to Quarter Ending June 30, 2000.

     Sales were $154,278 for the second  quarter of 2001 as compared to $264,410
for the similar  period of 2000.  This  decrease  was due to slower sales of our
DynaTrax (TM) products,  which we believe is the result of the current  downturn
in telecommunications capital spending.

Cost of sales of $65,914  for the second  quarter of 2001  decreased  by $30,591
compared to the same period of 2000, primarily due to lower sales.

     Selling,  general, and administrative expenses decreased by $4,032 compared
to the same period in 2000.  Selling  expense still remains  significant  as the
Company  continues  efforts  to  expand  markets  for its high  margin  DynaTrax
products.

     Income from  operations  of  ($49,398)  decreased  ($88,642)  compared to a
profit of $39,244  for the prior  period as a direct  result of the  reasons set
forth above.

     Six Months Ending June 30, 2001, Compared to Year Ending December 31, 2000.

SIGNIFICANT CHANGES

     In the  first  half of  2001,  the  Company  made a  significant  operating
investment in expanding DynaTrax (TM) markets.

     Cash Flow for the first half of 2001 was negative ($506,900) as a result
of the operating investment.

ITEM 5. OTHER INFORMATION

     The Company  filed a  Registration  Statement  on Form SB-2 on November 17,
2000 to register  shares of its common stock for the benefit of certain  selling
security  holders,  including the shares  underlying the $1,500,000  convertible
notes issued October 13, 2000. The Registration Statement was declared effective
by the Securities and Exchange Commission on January 22, 2001. On April 24, 2001
the Company filed Post-Effective  Amendment No. 1 to the Registration  Statement
to update the Company's  financial  and other  information.  The  Post-Effective
Amendment was declared  effective on May 7, 2001 by the  Securities and Exchange
Commission.  As of June 30, 2001 $271,226 of principal on the convertible  notes
has been converted into shares of the Company's common stock.

     On April 30,  2001 the  Company  announced a plan to buy back up to 200,000
shares of its common stock.  The "buyback"  plan provides that the purchases may
be made  from  time to time at  prevailing  prices  in the open  market by block
purchases or in private  transactions  and may be discountinued at any time. The
repurchases will be funded through available cash. As of the date of this report
the Company has not repurchased any shares.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits

10.1 Second Amendment,  dated February 21, 2001, to Employment Agreement entered
     into between the Company and Bernard M.  Ciongoli as of October 1, 1998 and
     previously amended June 16, 1999.

There were no reports on Form 8-K filed during the fiscal quarter ended June 30,
2001.


                                      - 7 -

<PAGE>

                             TECH LABORATORIES, INC.

                                   SIGNATURES

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

                             TECH LABORATORIES, INC.

Date: August 14, 2001                     By:   /s/ Bernard M. Ciongoli
                                                -----------------------
                                                Bernard Ciongoli
                                                Chief Financial Officer
                                                (Principal Financial Officer and
                                                Chief Accounting Officer)


                                     - 8 -