FORM 10-QSB

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


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

                For the Quarterly period ended September 30, 2000


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

                           Commission File No. 0-25548

                            ORBIT TECHNOLOGIES, INC.

        DELAWARE                                       841 00 1269
-----------------------------                          -----------
  (State of Jurisdiction of               (I. R. S. Employer Identification No.)
Incorporation or Organization)



           5950 LA PLACE COURT, SUITE 140, CARLSBAD, CALIFORNIA 92008
           ----------------------------------------------------------
                    (Address of Principal Executive Offices)



                                 (760) 918-9168
--------------------------------------------------------------------------------
                (Issuer's Telephone Number, Including Area Code)



Check whether the registrant (1) has 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    No X
                                                                      ---   ---
The number of outstanding shares of the registrant's only class of common stock
as of June 30, 2000: 32,799,702.

         Transitional  Small  Business  Disclosure  Format:  Yes    No X
                                                                ---   ---


<PAGE>

                    ORBIT TECHNOLOGIES INC. AND SUBSIDIARIES
                              INDEX TO FORM 10-QSB

                               SEPTEMBER 30, 2000


PART I  -  FINANCIAL INFORMATION

    ITEM 1  -  FINANCIAL STATEMENTS

        CONSOLIDATED BALANCE SHEETS                                         1
            At December 31, 1999 and September 30, 2000

        CONSOLIDATED STATEMENTS OF OPERATIONS                               2
            For the Nine Months Ended September 30, 1999 and 2000

        CONSOLIDATED STATEMENTS OF OPERATIONS                               3
            For the Three Months Ended September 30, 1999 and 2000

        CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY                 4
            For the Nine Months Ended September 30, 1999 and 2000

        CONSOLIDATED STATEMENTS OF CASH FLOWS                               5
            For the Nine Months Ended September 30, 1999 and 2000

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                        6 - 9

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

PART II - OTHER INFORMATION


<PAGE>

                 PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL  STATEMENTS.   (See  accompanying  Financial Report for the
        period ended June 30, 2000.)

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

FORWARD LOOKING STATEMENTS

This Form 10-QSB contains forward-looking statements that involve risks and
uncertainties. The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of certain factors,
including those set forth under "Risk Factors" in Exhibit 99 and elsewhere in
this Form 10-QSB.

PLAN OF OPERATION

Since 1996, the Company has focused on the development and use of its
polydimethalsiloxane-based Polymer Encapsulation Technology (PET) as a method
for stabilizing and encapsulating various radioactive and toxic waste materials
leading to a final waste form for disposal.

Significant progress has been attained as evidenced by the success achieved on
test and evaluation contracts completed for Lockheed Martin Idaho Technologies
Company (LMITCO) and Bechtel BWXT Idaho in conjunction with the U. S. Department
of Energy, Idaho Operations Office, at their Idaho Falls waste site. The
Company's business plan and near term strategy will focus the Company's human
resources and funding on developing the Polymer Encapsulation Technology (PET)
as a modern technological solution to various forms of radioactive and hazardous
waste materials identified for environmentally safe remediation and disposal.

In February 2000, an Orbit funded study was highlighted in the American Chemical
Society's publication ENVIRONMENTAL SCIENCE & TECHNOLOGY. The article, entitled
"CHROMIUM LEACHING FROM SILICONE FOAM-ENCAPSULATED MIXED WASTE SURROGATE" by
Christopher M. Miller, Ph.D., Stephen E. Duirk, and Kevin H. Gardner, Ph.D.,
discusses polymer encapsulation of waste and chromium leaching kinetics under
Toxicity Characteristic Leach Procedure and Accelerated Leach Test conditions at
variable waste loadings.

In March 2000, Orbit's Polymer Encapsulation Technology was selected for the
second consecutive year for presentation at the international waste symposium
Waste Management 2000 in Tucson, Arizona. Sponsors include the American Nuclear
Society, the American Society of Mechanical Engineers, New Mexico State
University, and the Waste Management Education and Research Consortium.

The paper, which was submitted for consideration by Bechtel BWXT Idaho, was
judged by the conference's Technical Review Board and chosen for presentation
based on the results of the most recent test and evaluation project completed
for the Bechtel Group. In that evaluation, Orbit's Polymer Encapsulation
Technology (PET) showed a positive proof-of-concept to encapsulate calcine waste
for both disposal at a permanent high-level waste repository and for
transportation to an offsite melter. Orbit's presentation, entitled
"POLYSILOXANE ENCAPSULATION OF CALCINE WASTE," was presented in the Nuclear
Materials Stabilization and Disposition technical session.

In the most recent evaluation, the Company demonstrated that with the addition
of certain surfactant additives and binding agents, the PET system will
encapsulate and stabilize waste material which may include soluble chromium
compounds, sodium nitrate, potassium nitrate, plutonium 238 and 239, uranium
238, and other harmful contaminants.


<PAGE>

Building on the successes achieved under the Lockheed Martin and Bechtel BWXT
contracts, the Company's marketing strategy is to build a substantial government
and private sector business in which Orbit's system will be used in the
containment of various radioactive and heavy metal wastes. Work has begun with
initial contacts being made with industry leaders in the waste management and
waste remediation sectors and potential end-users of the technology. Ultimately,
the Company plans to develop strategic relationships with prime contractors
throughout the waste management industry.

Until completion of the final development and evaluation of the technology and
the commencement of sales, the Company will have no operating revenues but will
continue to incur substantial expenses. No assurances can be given that the
Company can complete development of any technology or that, if any technology is
fully developed, that it can be manufactured on a large-scale basis or at a
feasible cost. Further, no assurance can be given that any technology will
receive market acceptance. Being a start-up stage entity, the Company is subject
to all the risks inherent in the establishment of a new enterprise and the
marketing and manufacturing of a new product, many of which risks are beyond the
control of the Company.

Background

In March 1998, the Company was awarded a contract by Lockheed Martin Idaho
Technologies Company to evaluate encapsulation of both surrogate and actual WERF
(Waste Experimental Reduction Facility) low-level waste with its Polymer
Encapsulation Technology (PET).

In July 1998, the Statement of Work was modified and redirected the Company to
focus on a low-level calcine material. These new tests included mixing studies
and enhanced treatment methodologies. Test reports by Lockheed Martin indicated
that encapsulation of the low-level mixed waste fraction from INTEC calcined
waste has potential as an encapsulating media for final disposal and the report
recommended exploration of further treatment formulations.

In August 1998, a paper detailing the Company's mixed waste encapsulation
technology, entitled "Encapsulation of Nitrate Salt Waste Using Polysiloxane,"
was selected for presentation at the 216th Annual American Chemical Society
National Meeting. The paper examined the use of a new waste management solution
to encapsulate the U.S. Department of Energy's approximately 250 million-kg of
dry nitrate salt waste which is laden with heavy metals and radioactive
isotopes.

In October 1998, the Company filed a new patent application for its Polymer
Encapsulation Technology (PET). The new patent was the result of rigorous test
and evaluation over the last year and included the results of enhanced
formulations and improved process applications. The Company's system involves a
method for stabilizing granular salts generated by solidifying neutralized
acidic solutions used to recover and reformulate weapons material.

Also in October 1998, Orbit's Polymer Encapsulation Technology (PET) was
selected for presentation at the 19th U. S. Department of Energy Low-Level
Radioactive Waste Management Conference. The goal of the conference was to
provide an opportunity for information exchange between representatives of the
commercial and defense related low-level radioactive waste management
communities.

In May 1999, Orbit was awarded a contract by Bechtel BWXT, Idaho Falls, to
evaluate Orbit's PET for disposal of actual pilot scale calcine waste. In
September 1999, the contract was expanded and directed that PET be examined at
maximum waste loading scenarios as a means for transporting certain high-level
wastes out of Idaho to an off-site melter. Orbit's material was loaded at 40%


<PAGE>

waste for final disposal evaluation and at 80% waste loading for the
transportation evaluation. The actual pilot scale calcine waste (minus
radionuclides) is processed at the Idaho Nuclear Technology and Engineering
Center (INTEC) and contained heavy metals - chromium, cadmium, lead, barium, and
arsenic.

In November 1999, Orbit reported significant results for the transportation,
storage, and disposal of radioactive waste.

In addition to the initial reductions in heavy metals provided by Orbit's
polymer formulation, the introduction of proprietary additives further reduced
the concentrations of cadmium and chromium by 77% and 71%, respectively. The PET
sample, at 40% waste loading passed all Resource Conservation and Recovery Act
(RCRA) criteria and the Universal Treatment Standards (UTS) for heavy metals.

Bechtel BWXT recommended to the DOE that a pilot plant demonstration be
conducted to test and evaluate engineering parameters and product throughput.
Other recommendations included encapsulation and mixing studies utilizing actual
radioactive materials.

As part of the transportation option of the contract, PET was mixed at a loading
factor of 85% waste to 15% polymer. The final formulation passed the Department
of Transportation Oxidizer (DOT) Test and a Drop Test from a height of 10
meters. Of particular significance was a 20% reduction in the final product's
total volume after treatment.

Orbit's encapsulation system is designed to form a cohesive material suitable
for transportation and final disposal, featuring a low leaching index as well as
the ability to perform at increased waste loading factors. The system has been
developed for the treatment of waste material to prevent environmental damage
because certain wastes that cannot be easily or economically rendered harmless
still pose significant environmental problems.

In June 2000, Orbit held its annual shareholder meeting in which shareholders
approved all proposals recommended by the Board of Directors including a
re-organization plan that was initiated and implemented in 1997 and is nearing
completion.

Orbit continues to examine the suitability of Orbit's Polymer Encapsulation
Technology with the Korean Electric Power Corporation (KEPCO) and is providing
additional technical information as requested by KEPCO.

Until completion of the final development of a technology and the commencement
of sales, the Company will have no operating revenues but will continue to incur
substantial expenses. No assurances can be given that the Company can complete
development of any technology or that, if any technology is fully developed,
that it can be manufactured on a large-scale basis or at a feasible cost.
Further, no assurance can be given that any technology will receive market
acceptance. Being a start-up stage entity, the Company is subject to all the
risks inherent in the establishment of a new enterprise and the marketing and
manufacturing of a new product, many of which risks are beyond the control of
the Company. (See Exhibit 99, Risk Factors.)

In July 2000, Orbit was awarded a competitive bid by Bechtel BWXT Idaho to
perform a Bench Testing In-Situ Grout Treatability Study for the Bechtel
Environmental Restoration Department. The Treatability Study will focus on the
encapsulation and stabilization of radioactive and radiologically contaminated
waste and intermixed soils that were disposed in the Subsurface Disposal Area
(SDA). The study calls for Orbit to examine and test a minimum of six grout
materials in order to minimize the number of grouts that will be tested during
the second phase of the study, Phase 2, Implimentability Testing.

OTHER MATTERS.   None.
-------------


<PAGE>

                    ORBIT TECHNOLOGIES INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS



                                     ASSETS
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------

                                                                                         At                  At
                                                                                    December 31,         September 30,
                                                                                        1999                2000
                                                                                    ------------         -------------
                                                                                                          (Unaudited)
----------------------------------------------------------------------------------------------------------------------
<S>                                                                                 <C>                  <C>
Current Assets:
   Cash                                                                             $     81,587         $     21,308
                                                                                     -----------          -----------

      Total Current Assets                                                                81,587               21,308

Property and Equipment  - At cost, net of accumulated
   depreciation and allowance against equipment expenditures                              19,867                6,321

Intangible Assets, Net of accumulated amortization                                        62,677               58,829

Other Assets                                                                               4,800                4,800
                                                                                     -----------          -----------
      Total Assets                                                                  $    168,931         $     91,258
                                                                                     ===========          ===========
----------------------------------------------------------------------------------------------------------------------

                    LIABILITIES AND STOCKHOLDERS' DEFICIENCY
----------------------------------------------------------------------------------------------------------------------
Current Liabilities:
  Accounts payable and accrued liabilities                                          $  1,967,349         $  1,641,914
  Notes payable                                                                        1,522,091              942,091
                                                                                     -----------          -----------

      Total Current Liabilities                                                        3,489,440            2,584,005
                                                                                     -----------          -----------

Commitments, Contingencies and Other Matters
   (Notes 1, 2 and 3)

Stockholders' Deficiency:
  Preferred stock - par value: $.01 per share; shares authorized:
    1,000,000; shares issued and outstanding: none                                             -                    -
  Common stock - par value: $.01 per share; shares authorized:
    50,000,000;  shares issued and outstanding: 36,822,805 and
    39,750,132 as of December 31, 1999 and June 30, 2000,
    respectively                                                                         368,228              397,501
  Additional paid-in capital                                                          11,842,088           12,960,208
  Accumulated deficit                                                                (15,530,825)         (15,850,456)
                                                                                     -----------          -----------

      Total Stockholders' Deficiency                                                  (3,320,509)          (2,492,747)
                                                                                     -----------          -----------

      Total Liabilities and Stockholders' Deficiency                                $    168,931         $     91,258
                                                                                     ===========          ===========
----------------------------------------------------------------------------------------------------------------------
</TABLE>


See notes to consolidated financial statements.


                                       2
<PAGE>

                    ORBIT TECHNOLOGIES INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 2000

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------

                                                                                           1999               2000
                                                                                        ------------      -----------
<S>                                                                                     <C>               <C>
Revenue                                                                                 $          -      $          -
                                                                                        ------------       -----------
Costs and Expenses:
  Research and development                                                                         -               689
  General and administrative                                                                 286,138           461,432
  Debt conversion expense                                                                     96,343                 -
  Compensatory element of common stock and options                                           405,000                 -
  Interest expense                                                                           120,884            91,663
  Other income                                                                               (47,696)         (234,153)
                                                                                        ------------        ---------

        Total Costs and Expenses                                                             860,669           319,631
                                                                                        ------------       -----------

Net Loss                                                                                $   (860,669)     $   (319,631)
                                                                                        ============       ===========

Per Share Data:
--------------

Basic and Diluted Loss Per Share                                                              $(.03)      $       (.01)
                                                                                        ============       ===========

Weighted Average Common Shares                                                            33,518,177        37,139,055
                                                                                        ============       ===========
----------------------------------------------------------------------------------------------------------------------
</TABLE>





See notes to consolidated financial statements.


                                       3
<PAGE>

                    ORBIT TECHNOLOGIES INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
             FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 2000

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                                                           1999               2000
                                                                                        ------------      ------------

<S>                                                                                     <C>               <C>
Revenue                                                                                 $          -      $          -
                                                                                        ------------      ------------

Costs and Expenses:
  General and administrative                                                                  69,561           241,533
  Debt conversion expense                                                                        750                -
  Compensatory element of common stock and options                                           405,000                -
  Interest expense                                                                            40,748            19,027
                                                                                                   -          (116,659)
                                                                                        ------------      ------------
        Total Costs and Expenses
                                                                                             516,059          (143,901)
                                                                                        ------------      ------------
Net Loss

                                                                                        $   (516,059)     $   (143,901)
                                                                                        ============      ============
Per Share Data:
--------------

Basic and Diluted Loss Per Share                                                               $(.01)            $(.01)
                                                                                        ============      ============
Weighted Average Common Shares                                                            34,907,430        39,247,218
                                                                                        ============      ============
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

See notes to consolidated financial statements.


                                       4
<PAGE>

                    ORBIT TECHNOLOGIES INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY
                                   (UNAUDITED)
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 2000

<TABLE>
<CAPTION>
                                                              Common Stock         Additional       Accumulated
                                                         Shares       Amount     Paid-in Capital      Deficit           Total
                                                         ------       ------     ---------------    ------------        -----

<S>                                                    <C>           <C>            <C>             <C>              <C>
Balances at December 31, 1998                          32,484,716    $ 324,848      $11,093,727     $ (14,895,616)   $ (3,477,041)

Issuance of stock                                         256,573        2,566           42,434                 -          45,000
Issuance of stock for conversion of notes
  payable and accrued interest                            393,903        3,938           89,705                 -          93,643
Issuance of stock for accrued interest                      2,500           25              475                 -             500
Debt conversion expense                                         -            -           96,343                 -          96,343
Issuance of stock for accrued expenses                     19,318          193            3,307                 -           3,500
Exercised stock options                                   300,000        3,000                -                 -           3,000
Stock awarded to directors and officers                 2,400,000       24,000          360,000                 -         384,000
Stock awarded to employee                                 125,000        1,250           18,750                 -          20,000
Net loss                                                        -            -                -          (860,669)       (860,669)
                                                       ----------    ---------      -----------     -------------    ------------

Balances at September 30, 1999                         35,982,010    $ 359,820      $11,704,741     $ (15,756,285)   $ (3,691,724)
                                                       ==========    =========      ===========     =============    ============


Balances at December 31, 1999                          36,822,805    $ 368,228      $11,842,088     $(15,530,825)    $ (3,320,509)

Issuance of stock for cash                                229,680        2,297           35,203                 -          37,500
Cancellation of stock                                  (3,703,823)     (37,038)               -                 -         (37,038)
Issuance of stock and stock options in exchange
  for notes payable and accrued interest                5,845,090       58,451          950,942                 -       1,009,393
Issuance of stock for conversion of notes payable
  and accrued interest                                    210,147        2,101           22,899                 -          25,000
Issuance of stock for accrued expenses                    346,233        3,462          109,076                 -         112,538
Net loss                                                        -            -               -           (319,631)       (319,631)
                                                       ----------    ---------      -----------     -------------    ------------
Balances at September 30, 2000                         39,750,132    $ 397,501      $12,960,208     $ (15,850,456)   $ (2,492,747)
                                                       ==========    =========      ===========     =============    ============
</TABLE>

See notes to consolidated financial statements.


                                       5
<PAGE>

                    ORBIT TECHNOLOGIES INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 2000

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                                                                               1999                    2000
                                                                                               ----                    ----
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                          <C>                     <C>
Cash Flows from Operating Activities
  Net loss                                                                                   $ (860,669)             $ (319,631)
  Adjustments to reconcile net loss to net cash used in operating activities:
          Depreciation and amortization                                                          18,750                  18,988
          Compensatory element of common stock and options                                      405,000                       -
          Debt conversion expense                                                                96,343                       -
          Issuance of stock for services                                                          3,500                       -

  Cash provided by (used for) the change in assets and
        liabilities:
           Increase in other assets                                                                (500)                      -
           Increase in accounts payable and  accrued liabilities                                155,563                 159,458
                                                                                             ----------              ----------

           Net Cash Used in Operating Activities                                               (182,013)               (141,185)
                                                                                             ----------              ----------

Cash Used in Investing Activities
   Capital expenditures                                                                               -                  (1,594)
                                                                                             ----------              ----------

Cash Flows from Financing Activities
   Proceeds from sale of stock                                                                   45,000                  37,500
   Proceeds from exercise of stock options                                                        2,000                       -
   Proceeds from loans                                                                          134,500                  45,000
                                                                                             ----------              ----------

          Net Cash Provided by Financing Activities                                             181,500                  82,500
                                                                                             ----------              ----------

Decrease in Cash                                                                                   (513)                (60,279)

Cash - Beginning                                                                                 20,367                  81,587
                                                                                             ----------              ----------

Cash - Ending                                                                                $   19,854              $   21,308
                                                                                             ==========              ==========

SCHEDULE OF NON-CASH INVESTING AND FINANCING  ACTIVITIES:
       Issuance of 393,903 shares of common stock for conversion  of $93,643 of
          notes payable and related accrued interest of $18,643                              $   93,643              $        -
                                                                                             ==========              ==========
       Issuance of 2,500 shares of common stock for payment of  accrued interest             $      500              $        -
                                                                                             ==========              ==========
       Issuance of 2,400,000 shares of common stock to directors and officers                $  384,000              $        -
                                                                                             ==========              ==========
        Issuance of 125,000 shares of common stock to employee as additional
          compensation for services                                                          $   20,000              $        -
                                                                                             ==========              ==========
       Non-qualified stock options exercised by a company director at $.01 per
          share for 100,000 shares of common stock                                           $    1,000              $        -
                                                                                             ==========              ==========
       Issuance of 19,318 shares of common stock for payment of accrued
          expenses                                                                           $      750              $        -
                                                                                             ==========              ==========
       Issuance of 5,845,090 shares of common stock and 1,100,000 of stock
          options for cancellation of 3,703,823 shares of common stock, $600,000
          of notes payable and related accrued interest of $372,355                          $        -              $  972,355
                                                                                             ==========              ==========
       Issuance of 346,233 shares of common stock for payment of accrued
          expenses                                                                           $        -                $112,538
                                                                                             ==========              ==========
       Issuance of 210,147 shares of common stock for conversion of $25,000
          of notes payable                                                                   $        -              $   25,000
                                                                                             ==========              ==========
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

See notes to consolidated financial statements.


                                       6
<PAGE>

                    ORBIT TECHNOLOGIES INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE  1 -       BUSINESS AND CONTINUED OPERATIONS

                Orbit Technologies Inc. (the "Company") was incorporated in the
                State of Delaware on April 29, 1985. The Company is a technology
                portal for new and innovative technologies, engineering ideas,
                methods and processes. The Company's business plan is to develop
                or acquire new or innovative technologies that hold the
                potential to become commercially viable products or processes.
                Once a product or process receives commercial validation through
                an outside or third party, it is the Company's intention to
                either spin it off as a separate business entity, or license or
                sell to an affiliated or unaffiliated entity that, at that time,
                becomes responsible for the production, marketing and sales of
                such products or services. The Company's technologies are
                undergoing certain feasibility studies and/or actual tests and
                evaluations. To date, the Company has not financially benefitted
                from the commercialization of any of its technologies.

                The accompanying financial statements have been prepared in
                conformity with generally accepted accounting principles, which
                contemplate continuation of the Company as a going concern.
                However, for the years ended December 31, 1999 and the nine
                months ended September 30, 2000, the Company incurred net losses
                of approximately $635,000 and $320,000, respectively, and as of
                September 30, 2000, had a stockholders' deficiency and a working
                capital deficiency of approximately $2,493,000 and $2,563,000,
                respectively. The Company requires additional funds to continue
                research and development efforts and complete the necessary work
                to commercialize its technologies. Until completion of the
                development of a technology and the commencement of sales, the
                Company will have no operating revenues, but will continue to
                incur substantial expenses and operating losses. No assurances
                can be given that the Company can complete development of any
                technology or that, if any technology is fully developed, it can
                be manufactured on a large scale basis or at a feasible cost.
                Further, no assurance can be given that any technology will
                receive market acceptance. These factors raise substantial doubt
                about the Company's ability to continue as a going concern.

                The Company is exploring additional sources of working capital
                including private borrowings, sales of its securities, joint
                ventures and licensing of technologies. While no assurance can
                be given, management believes the Company can raise adequate
                capital to keep the Company functioning at a minimum level of
                operation in 2000. For the nine months ended September 30, 2000,
                the Company's proceeds from all financing activities amounted to
                $82,500.


                                       7
<PAGE>

                    ORBIT TECHNOLOGIES INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE  1 -       BUSINESS AND CONTINUED OPERATIONS (Continued)

                The Company is exploring ways to reduce its existing
                liabilities, including exchanging certain of its liabilities for
                shares of its common stock.

                During the quarter ended June 30, 2000, as part of a settlement
                agreement, the Company converted to equity $600,000 of principal
                and $372,355 of accrued interest relating to various promissory
                notes (Note 2).

                The Company's ability to continue as a going concern is
                dependent upon obtaining the additional financing, restructuring
                and/or curing the defaults on its debt, completion of research
                and development and the successful marketing of its
                technologies. These financial statements do not include any
                adjustments relating to the recoverability of recorded asset
                amounts that might be necessary as a result of the above
                uncertainty.

NOTE  2 -       CAPITALIZATION

                COMMON STOCK

                During the third quarter of 2000, the Company issued 346,233
                shares of common stock for accrued expenses totalling $113,000.

                During the first quarter of 2000, the Company sold 229,680
                shares of common stock for $37,500.

                During the second quarter of 1999, the Company sold 256,573
                shares of common stock for $45,000 in cash and paid related
                interest expense of $500 by the issuance of 2,500 common shares.

                CONVERSION OF DEBT TO EQUITY AND SETTLEMENT AGREEMENT

                On June 15, 2000, the Company's shareholders voted to ratify an
                agreement to settle a dispute (see Note 3b). Pursuant to the
                agreement, the Company cancelled 3,703,823 shares of previously
                issued common stock and exchanged $600,000 of notes payable and
                $372,355 of related accrued interest for 5,845,090 new shares of
                the Company's common stock and stock options to purchase
                1,100,000 shares of common stock at $0.23 for nine months. The
                options were valued at $0.09 per share on the grant date using
                the Black-Scholes option-pricing model with the following
                assumptions:

                        Risk-free interest rate           9.5%
                        Expected life                       9 months
                        Expected volatility                80%
                        Dividend yield                      0%


                                       8
<PAGE>

                    ORBIT TECHNOLOGIES INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE  2 -       CAPITALIZATION (Continued)

                CONVERSION OF DEBT TO EQUITY AND SETTLEMENT AGREEMENT
                (Continued)

                During the third quarter of 2000, the Company converted $25,000
                of principal relating to a note payable outstanding at December
                31, 1999, into 210,147 shares of Company's common stock.

                During the first quarter of 1999, the Company converted $25,000
                of principal and $362 of accrued interest, relating to a note
                payable outstanding at December 31, 1998, into 120,771 shares of
                the Company's common stock.

                As part of a settlement agreement with a noteholder, during the
                first quarter of 1999, the Company agreed to convert principal
                of $50,000 and accrued interest of $18,281, relating to a note
                payable outstanding at December 31, 1998, into 273,132 shares of
                the Company's common stock. Under the original loan agreement,
                the debt was convertible, at the option of the noteholder, at
                $0.60 per share. The difference between the original conversion
                rate of $0.60 and the actual conversion rate of $0.25 was
                reflected in the accompanying financial statement as a debt
                conversion expense of $95,593.

                NOTES PAYABLE

                During the third quarter of 2000, the Company received a loan
                from an officer of the Company for $15,000 at a 10% interest
                rate.

                During the second quarter of 2000, the Company received a loan
                from an officer of the Company for $30,000 at a 10% interest
                rate.

                During the first quarter of 1999, the Company received the
                proceeds of a $50,000 from loans from two unrelated individuals.
                The loans were due in one year, bear interest at 8% per annum,
                and are convertible into common stock at a 20% discount to the
                average 5-day market price at the conversion date.


                                       9
<PAGE>

                    ORBIT TECHNOLOGIES INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE  2 -       CAPITALIZATION (Continued)

                NOTES PAYABLE (Continued)

                During the second quarter of 1999, the Company received the
                proceeds of a $25,000 loan from an individual. The loan was due
                in one year, bears interest at 8% per annum, and is convertible
                into common stock at a 20% discount to the average five-day
                market price at the conversion date.

                During the second quarter of 1999, the Company received the
                proceeds of a $7,500 loan from two individuals. The terms of the
                loans have not yet been determined.

                During the second quarter of 1999, the Company received the
                proceeds of a $65,000 loan from four of the Company's principal
                shareholders. The proceeds were used to pay Jeffer, Mangels,
                Butler & Marmaro, LLP under a court judgement for past due
                services.

NOTE  3 -       COMMITMENTS, CONTINGENCIES AND OTHER MATTERS

                LITIGATION/DISPUTES

                a)  BENVENISTE, ET. AL. VS. ORBIT AND ITS OFFICERS. The action
                    was filed on March 6, 1997 in the Los Angeles Superior
                    Court. The action is to collect principal, interest and
                    other fees and damages relating to various promissory notes
                    executed between the plaintiffs and Orbit during 1992
                    totalling $197,000 and additional loans made during 1995
                    totalling $600,000.

                    In June of 1998, a tentative comprehensive settlement was
                    reached by all parties and in June of 2000, the shareholders
                    of the Company ratified the settlement agreement (see Note
                    2).

                b)  BENVENISTE, ET AL. VS. LAHEY, ET AL. On June 2, 1997,
                    Richard Benveniste and Edgar Benveniste filed suit in the
                    Delaware Court of Chancery on behalf of themselves and
                    purportedly on behalf of the Company against James B. Lahey,
                    James A. Giansiracusa, Stephen V. Prewett, Ian C. Gent and
                    William N. Whelen. The complaint sought a determination by
                    the Court of Chancery for: (i) as to who constituted the
                    valid directors of the Company in connection with a written
                    consent action initiated by the plaintiffs or, (ii) in the
                    alternative, that the Company be required to hold an annual
                    meeting of shareholders.

                    On September 2, 1997, the Court of Chancery decided to defer
                    a decision on the defendants motion to dismiss until such
                    time as an annual meeting of the Company's shareholders was
                    held. The Court thereafter ordered that the Company hold its
                    annual meeting. The Company held its annual shareholders'
                    meeting on June 15, 2000.


                                       10
<PAGE>

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.  No change.

ITEM 2. CHANGES IN SECURITIES.   No change.

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)               LIST OF DOCUMENTS FILED AS PART OF THIS REPORT:

                           (1)      Financial Statements.

                           (2)      Exhibits - See (C) below.

         (B)               REPORTS ON FORM 8-K.  None.

         (C)   EXHIBITS

         Exhibit
         Number            Exhibit

         (10)     Bechtel BWXT Idaho, Contract No. Koo-584514,
                  In-Situ Grout Treatability Study.

         (11)     Computation of per share earnings.(1)

         (15)     Letter on unaudited interim financial information.(1)

         (18)     Letter on change in accounting principles.(1)

         (27)     Financial Data Schedule.(1)

         (99-1)   Risk Factors.(1)

(1)  See Orbit Technologies Inc. and Subsidiaries Financial Report for the
     period ended December 31, 1999, which is hereby incorporated by reference.


<PAGE>

                                   SIGNATURES

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


ORBIT TECHNOLOGIES INC.
-----------------------
      Registrant



Date:    NOVEMBER 14, 2000          By:     /s/James B. Lahey
---------------------------------        ---------------------------------------
                                         James B. Lahey, Chief Executive Officer
                                         Chairman of the Board of Directors



Date:    NOVEMBER 14, 2000          By:    /s/James A. Giansiracusa
---------------------------------        ---------------------------------------
                                         James A. Giansiracusa, Secretary/Chief
                                         Financial Officer