SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

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

                                   FORM 10-QSB

                   Quarterly Report under Section 13 or 15 (d)
                     of the Securities Exchange Act of 1934

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

For the Quarter Ended:                             Commission File Number
   March 31, 2001                                         0 - 9574

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


                         UNITED SYSTEMS TECHNOLOGY, INC.

        Iowa                                           42-1102759
(State of Incorporation)                             (I.R.S. Employer
                                                   Identification Number)

                           1850 Crown Road, Suite 1109
                               Dallas, Texas 75234

                                 (972) 402-8600

          (Address of principal executive offices and telephone number)

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

     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 ______

     As of March 31,  2001  there  were  56,178,663  shares of the  registrant's
Common Stock, par value $0.10 per share, outstanding.


<PAGE>



                UNITED SYSTEMS TECHNOLOGY, INC. AND SUBSIDIARIES
                              INDEX TO FORM 10-QSB

PART I - FINANCIAL INFORMATION (UNAUDITED)                  PAGE
------------------------------------------

Item 1.  Consolidated Financial Statements

           Balance Sheets                                    3

           Statements of Operations                          4

           Statements of Cash Flows                          5

           Notes to Consolidated Financial Statements        6

Item 2.  Management's Discussion and Analysis or
         Plan of Operation                                   8




PART II - OTHER INFORMATION                                 11
---------------------------


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


     The consolidated financial information reflects all adjustments, which are,
in the opinion of  management,  necessary  to a fair  presentation  of financial
position  and of the  statements  of  operations  and cash flows for the periods
presented.

     These consolidated  financial statements should be read in conjunction with
the notes to the  consolidated  financial  statements  which are included in the
annual report on Form 10-KSB for the fiscal year ended December 31, 2000.


<PAGE>



                 United Systems Technology, Inc. and Subsidiary
                           Consolidated Balance Sheets
<TABLE>
<S>                                                 <C>              <C>

                                                  March 31,
                                                    2001         December 31,
                                                (Unaudited)          2000
                                                ===========      ===========
Current Assets
 Cash and cash equivalents                     $  769,426        $  814,240
 Trade accounts receivable, less allowance
  for doubtful accounts of $34,500 at March
  31, 2001 and $32,000 at December 31, 2000       416,189           574,073
                                                ---------         ---------
 Total Current Assets                           1,185,615         1,388,313
                                                ---------         ---------

Property and equipment, net                       122,587           119,295
Goodwill, net                                     492,050           457,731
Purchased software, net                           782,702           453,967
Deposits and other                                 63,694            45,702
                                                ---------         ---------
                                                1,461,033         1,076,695
                                                ---------         ---------

 Total Assets                                  $2,646,648        $2,465,008
                                                =========         =========

Liabilites and Stockholders' Equity

Current Liabilities
 Notes payable - related party                 $   12,499        $   12,499
 Trade accounts payable                            74,459            47,597
 Accrued payroll                                   63,023            92,381
 Accrued interest - related party                  22,469            22,127
 Other accrued expenses                           121,088           100,018
 Deferred revenue                               1,140,614         1,038,908
                                                ---------         ---------
 Total Current Liabilities                      1,434,152         1,313,530

 Total Liabilities                              1,434,152         1,313,530
                                                ---------         ---------

Commitments and contingencies                        -                 -

Stockholders' Equity

Preferred stock, convertible, voting,
 cumulative, par value $.10 per share;
 authorized 5,000,000 shares; issued and
 outstanding, 500,000 shares of Series B
 and 300,000 shares of Series E,aggregate
 liquidating preference of $1,300,000
 ($1.00 per share)                                 80,000            80,000
Common stock, par value $.10 per share;
 authorized 100,000,000 shares; issued
 and outstanding 56,178,663 at March 31,
 2001 and December 31, 2000                     5,617,866         5,617,866
Additional paid-in capital                      2,816,554         2,816,554
Accumulated deficit                            (7,233,376)       (7,318,462)
Currency translation adjustments                  (28,548)           (4,480)
                                                ---------         ---------
                                                1,252,496         1,191,478
Less stock purchase note receivable                40,000            40,000
                                                ---------         ---------
 Total Stockholders' Equity                     1,212,496         1,151,478
                                                ---------         ---------

 Total Liabilities and Stockholders' Equity    $2,646,648        $2,465,008
                                                =========         =========
</TABLE>

    The accompanying notes are an integral part of the financail statements.

<PAGE>

                 United Systems Technology, Inc. and Subsidiary
                      Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<S>                                                  <C>            <C>

                                                     Three Months Ended
                                                          March 31,
                                                    2001            2000
                                                ===========      ===========

Revenue
 Software packages                             $   39,054        $   60,408
 Installation, training and customer support      101,540            28,411
 Maintenance                                      440,126           193,633
 Equipment and supplies sales                      45,158            70,981
 Other                                              4,875             2,094
                                                ---------         ---------
                                                  630,753           355,527
                                                ---------         ---------
Costs and expenses
 Salaries                                         327,744           195,645
 Other general, administrative and
  selling expense                                 148,546           105,987
 Depreciation and amortization                     57,730            29,272
 Commissions                                        1,364             2,725
 Cost of equipment and supplies sold               21,404            36,967
                                                ---------         ---------
                                                  556,788           370,596
                                                ---------         ---------
Income (loss) from operations                      73,965           (15,069)
                                                ---------         ---------

Nonoperating income (expense)
 Interest expense                                    (257)             (471)
 Interest income                                    9,994            10,803
                                                ---------         ---------
                                                    9,737            10,332
                                                ---------         ---------
Net income (loss)                                  83,702            (4,737)
                                                ---------         ---------

Preferred stock dividend requirements             (13,771)          (13,961)
                                                ---------         ---------
Income (loss) available for common
 stockholders                                  $   69,931        $  (18,698)
                                                =========         =========

Net income (loss) per common share             $    NIL          $    NIL
                                                =========         =========

Weighted average number of common shares
 oustanding                                    56,178,633        52,091,057
                                               ==========        ==========
</TABLE>


   The accompanying notes are an integral part of the financail statements.

<PAGE>

                 United Systems Technology, Inc. and Subsidiary
                      Consolidated Statements of Cash Flows
            For the Three Month Period Ended March 31, 2001 and 2000
                                   (Unaudited)
<TABLE>
<S>                                                 <C>             <C>

                                                    2001            2000
                                                ===========      ===========

Cash flows in operating activities:
 Net income (loss)                             $   83,702        $   (4,737)

 Adjustments to reconcile net income (loss)
  to net cash (used in) provided by operating
  activities:
   Depreciation and amortization                   57,730            29,272
   Recognition of deferred compensation costs
    on employee stock purchase                      4,500             4,500

  Change in operating assets and liabilities,
   net of effect of acquisitions:
    Accounts receivable                           226,160            67,931
    Deposits and other                            (41,991)          (30,598)
    Accounts payable                               31,079             1,991
    Accrued expenses                              (75,627)         (133,697)
    Deferred revenue                             (195,231)          (49,617)
                                                ---------         ---------
Net cash (used in) provided by operating
 activities                                    $   90,322        $ (114,955)
                                                ---------         ---------

Cash flows from inventing activities:
 Property and equipment additions                 (16,195)           (5,418)
 Acquisition of businesses                       (132,065)         (169,500)
                                                ---------         ---------
Net cash used in investing activities            (148,260)         (174,918)
                                                ---------         ---------
Cash flows from financing activities:
 Exercise of common stock options                    -               87,500
                                                ---------         ---------
Nst cash provided by financing activities            -               87,500
                                                ---------         ---------

Effect of exchange rate changes on cash            13,124              -
                                                ---------         ---------

Decrease in cash and cash equivalents             (44,814)         (202,373)
Cash and cash equivalents, beginning of year      814,240           922,838
                                                ---------         ---------

Cash and cash equivalents, end of period       $  769,426        $  720,465
                                                =========         =========
</TABLE>

  The accompanying notes are an integral part of the financail statements.

<PAGE>
                UNITED SYSTEMS TECHNOLOGY, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1.  BASIS OF PRESENTATION:

     In the  opinion of  management,  the  accompanying  unaudited  consolidated
statements  contain  all  adjustments   (consisting  of  only  normal  recurring
accruals)  necessary to present fairly the  consolidated  financial  position of
United Systems  Technology,  Inc. ("USTI") as of March 31, 2001 and December 31,
2000 and the results of  operations  and cash flows of USTI for the three months
ended March 31, 2001 and 2000.  The  consolidated  results of operations for the
three months ended March 31, 2001 are not necessarily  indicative of the results
to be expected for the full year.

NOTE 2.  PROPERTY AND EQUIPMENT:

         Property  and  equipment  at March  31,  2001  and  December  31,  2000
consisted of the following:
<TABLE>
<S>                                       <C>                     <C>

                                        March 31,             December 31,
                                          2001                    2000
                                          ----                    ----

Leasehold improvements              $      75,027             $    75,431
Furniture and fixtures                     57,088                  54,080
Equipment                               1,034,493               1,024,107
                                        ---------               ---------
                                        1,166,608                1,153,618
Less Accumulated depreciation
  Aand amortization                    (1,044,021)              (1,034,323)
                                        ---------                ---------

                                    $     122,587             $    119,295
                                        ---------                ---------
</TABLE>

NOTE 3.  OTHER ASSETS:

         Other assets at March 31, 2001 and  December 31, 2000  consisted of the
following:
<TABLE>
<S>                                  <C>             <C>              <C>

                                                 Accumulated
March 31, 2001                      COST         Amortization          Net
--------------                      ----         ------------          ---

Goodwill                        $ 1,937,793      $(1,445,743)      $  492,050
Purchased Software                1,438,404         (655,702)         782,702

December 31, 2000
-----------------
Goodwill                        $ 1,881,396       (1,423,665)      $  457,731
Purchased Software                1,086,977         (633,010)         453,967

</TABLE>


<PAGE>


                UNITED SYSTEMS TECHNOLOGY, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 4.  PREFERRED STOCK:

     The  company is in arrears in the  payment of  dividends  to holders of its
Series B and E Preferred Stock. Holders of Series B Preferred Stock are entitled
to annual  dividends of $.07 per share,  payable  quarterly and, as of March 31,
2001, are entitled to the payment of approximately $437,405 in dividends,  which
are  currently in arrears.  Holders of Series E Preferred  Stock are entitled to
annual dividends of $.07 per share, payable quarterly and, as of March 31, 2001,
are entitled to the payment of  approximately  $205,900 in dividends,  which are
currently in arrears.

NOTE 5.  ACQUISITION OF ASSETS:

     On March 2, 2001,  USTI Canada,  Inc, a wholly owned  subsidiary  of United
Systems  Technology,  Inc (USTI) acquired the Municipal  Application Suite (MAS)
software  from Ever America  Corporation,  doing  business as JPH  International
(JPHI). This transaction  includes all rights to the MAS software owned by JPHI,
contracts for Software Support,  and all accounts  receivable related to the MAS
business  unit.  The purchase  price was $132,065 plus the assumption of certain
Customer Support obligations for the remainder of 2001.

NOTE 6.  COMPREHENSIVE INCOME (LOSS):

         Comprehensive income (loss) is as follows:
<TABLE>
<S>                                                <C>            <C>

                                                 March 31,      March 31,
                                                   2001           2000
                                                   ----           ----

    Net income (loss)                            $ 83,702       $(4,737)
    Currency translation adjustments              (24,068)          -
                                                   ------         -----
    Comprehensive income (loss))                 $ 59,634       $(4,737)
                                                   ------         -----
</TABLE>


<PAGE>


           UNITED SYSTEMS TECHNOLOGY, INC. AND SUBSIDIARIES

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

RESULTS OF OPERATIONS

     The  Company  derives  its  revenue  from  the  licensing  of its  software
packages,   installation,   training  and  custom   modifications,   maintenance
agreements and equipment  sales and  commissions.  Results of operations for the
period  ended March 31,  2001  include  revenues  of $630,753  and net income of
$83,702 as compared  to  revenues  of $355,527  and a net loss of $4,737 for the
same period in 2000.

     The Company has completed the development of several new software products,
which significantly  enhance the  competitiveness of its comprehensive  software
pffering.  These  products  are  marketed  under the asystTM  brand  name,  were
developed as Windows  applications to "look and work like Microsoft Office", and
include a Fund  Accounting  product  line,  a Utility  Billing  product  line, a
General  Government  product line and a Public  Safety  product  line.  The Fund
Accounting product line includes General Ledger,  Budget XLence,  Report XLence,
Accounts  Payable,  Accounts  Receivable,  Purchase  Orders,  Cash  Receipts and
Payroll  modules.  The Utility  Billing product line includes  Utility  Billing,
Service Orders, Meter Reader Interface,  Bank Drafts and Budget Billing modules.
The  General  Government  product  line  includes  Master and Land  Directories,
Business and Animal Licenses, Code Enforcement and Building Permits modules. The
Public  Safety  product  line  includes  Master Name Index,  Calls for  Service,
Offense  Reports,  Citations,  State  Interface,  Computer Aided Dispatch,  Jail
Management,  Alarm  Billing and UCR Reports  modules.  The Company is  currently
developing  ADDITIONAL  MODULES  FOR ITS ASYSTTM  product  line,  including  Tax
Billing  and  Collection  and  Fixed  Assets,  to add to  its  existing  asystTM
offerings and anticipates that these packages will be released during the second
half of 2001.

THREE MONTH PERIOD ENDED MARCH 31, 2001 AND 2000

     The Company's  total revenue  increased 77% from $355,527  during the first
quarter in 2000 to $630,753 in 2001. Software license fees decreased 35% in 2001
due to a continued less than normal demand for the Company's  software  products
that was experienced  throughout 2000.  Installation  and training  increased to
$101,540 in 2001 from  $28,411 in 2000 due, in part,  to an increase in services
provided to its Canadian  customers.  Maintenance  revenue increased 127% during
2001,  due  primarily to an increase in revenue from the CPS, Auto Admin and MAS
customers acquired by the Company. Equipment and supplies sales decreased 36% in
2001 as a result of decreased sales of computer equipment during the year.

<PAGE>

     Total costs and expenses increased 50% from $370,596 in 2000 to $556,788 in
2001.  Salary expense  increased 68% in 2001, due in part,  from the addition of
employees  related to recent  acquisitions.  Other general,  administrative  and
selling  expenses  increased  40% in 2001 as  compared  to 2000 as a  result  of
increased costs related to acquisitions.  Depreciation and amortization  expense
increased 97% from the addition of assets related to the CPS, Auto Admin and MAS
acquisitions.  Cost of equipment and supplies sold decreased in 2001 as a result
of decreased sales of computer equipment.

LIQUIDITY AND CAPITAL RESOURCES

     The Company had net cash  provided  from  operating  activities  of $90,322
during the three months  ended March 31,  2001,  as compared to net cash used in
operations  of  $114,955  for the same  period in 2000.  This  increase  in cash
provided in 2001 was primarily the result of the  improvement  in the results of
operations  in the first  quarter of 2001.  Net cash of $132,065 was utilized in
2001 for the purchase the Municipal  Application  Suite (MAS) software from Ever
America   Corporation,   doing  business  as  JPH  International   (JPHI).  This
transaction includes all rights to the MAS software owned by JPHI, contracts for
Software Support, and all accounts receivable related to the MAS business unit.

     Management  believes that its ability to generate  positive cash flows from
operations,  in addition to its existing cash balances, will be adequate to meet
its working capital requirements in the near future.  However, if the Company is
not able to continue to generate  positive cash flows in the future by achieving
a level of sales  adequate to support the Company's cost  structure,  additional
financing may be required, of which there can be no assurance.

     The Company is  currently in arrears in the payment of dividends to holders
of its preferred  stock. As of March 31, 2000,  dividends were in arrears on the
Series B  preferred  stock in the amount of  $437,405  and on Series E preferred
stock in the amount of $205,900.

FORWARD-LOOKING STATEMENTS

     This report  contains  forward-looking  statements,  other than  historical
facts,  which  reflect the view of Company's  management  with respect to future
events.  Such  forward-looking  statements are based on assumptions  made by and
information currently available to the Company's management. Although management
believes that the expectations reflected in such forward-looking  statements are
reasonable,  it can give no assurance that such  expectations will prove to have
been  correct.  Important  factors  that could  cause  actual  results to differ
materially from such expectations  include,  without limitation,  the ability of
the Company i) to generate  levels of revenue and  adequate  cash flows from its
operations to support and maintain its current cost structure and ii) to develop
and deliver products that are  competitive,  accepted by its markets and are not
rendered  obsolete  by  changing  technology.   The  forward-looking  statements
contained  herein  reflect the current  views of the Company's  management  with
respect to future  events  and are  subject to these  factors  and other  risks,
uncertainties and assumptions relating to the operations,  results of operations
and  financial  position of the Company.  The Company  assumes no  obligation to
update the  forward-looking  statements or to update the reasons  actual results
could differ from those contemplated by such forward-looking statements.

<PAGE>

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

     The Company is a defendant in various legal actions, which arose out of the
normal course of business.  In the opinion of management,  none of these actions
are expected to have a material effect on the consolidated results of operations
or financial position of the Company.

ITEM 2.  CHANGE IN SECURITIES

         Not Applicable

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

     The  Company is in arrears in the  payment of  dividends  to holders of its
Series B and E Preferred Stock. Holders of Series B Preferred Stock are entitled
to annual  dividends of $.07 per share,  payable  quarterly and, as of March 31,
2001, are entitled to the payment of approximately $437,405 in dividends,  which
are  currently in arrears.  Holders of Series E Preferred  Stock are entitled to
annual dividends of $.07 per share, payable quarterly and, as of March 31, 2001,
are entitled to the payment of  approximately  $205,900 in dividends,  which are
currently in arrears.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         Not Applicable

ITEM 5.  OTHER INFORMATION

         Not Applicable

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a) Exhibits - No exhibits are required to be filed with this report.

         (b) The Company filed an 8-K dated March 2, 2001 related to the
             acquisition of the Municipal Application Suite (MAS) assets.

<PAGE>
                                   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.

                                   UNITED SYSTEMS TECHNOLOGY, INC.

DATE:  May 14, 2001                BY: /S/ THOMAS E. GIBBS
                                       ----------------------
                                       Thomas E. Gibbs, President
                                       and Chairman of the Board
                                      (Principal Executive Officer)

DATE:  MAY 14, 2001                 BY: /S/ RANDALL L. MCGEE
                                       ----------------------
                                       Randall L. McGee, Secretary
                                       and Treasurer
                                      (Principal Financial and
                                        Accounting Officer)

<PAGE>