SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549


                                    FORM 10-Q


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

         FOR QUARTER ENDED MARCH 31, 1999 COMMISSION FILE NUMBER 0-9998


                          THE METAL ARTS COMPANY, INC.
              -----------------------------------------------------
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


            NEW YORK                                         06-0945588
-------------------------------                         --------------------
(STATE OR OTHER JURISDICTION OF                            (IRS EMPLOYER
INCORPORATION OR ORGANIZATION)                           IDENTIFICATION NO.)

  1 AMERICAN CENTER GENEVA, NEW YORK                       14456 - 1188
---------------------------------------                    ------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                    (ZIP CODE)


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 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, $.01PAR VALUE, OUTSTANDING AT MARCH 31,
1999 WAS 7,407,402.











                               PAGE 1 OF 12 PAGES
                           EXHIBIT INDEX IS ON PAGE 2


<PAGE>


                          THE METAL ARTS COMPANY, INC.
                          ----------------------------

                                      INDEX
                                      -----




PART I   FINANCIAL INFORMATION:

         Consolidated Condensed Balance Sheets,
         March 31,1999 and June 30,1998.                                 4 and 5

         Consolidated Condensed Statements of Operations,
         Three months and nine months ended March 31,1999 and 1998.            6

         Consolidated Condensed Statement of Cash Flows, and
         Three months and nine months ended March 31, 1999 and 1998.           7

         Notes to Consolidated Condensed Financial
         Statements.                                                           8

         Management's Discussion and Analysis of Financial
         Condition and Results of Operations.                                  9



PART II  OTHER INFORMATION                                                    10





<PAGE>

                                      2








                          PART I FINANCIAL INFORMATION












                                       4


<PAGE>





                          THE METAL ARTS COMPANY, INC.
                      CONSOLIDATED CONDENSED BALANCE SHEETS

                                   (UNAUDITED)

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


                                     ASSETS
                                     ------

                                                        3/31/99        6/30/98
                                                     --------------------------
CURRENT ASSETS
<S>                                                 <C>             <C>
Cash                                                ($    8,724)    $    35,374
Trade accounts receivable - net                         168,813         262,683
Current portion of due from NYSERDA                      32,806               0
Current portion of deferred tax asset                    35,000          35,000
Prepaid expenses and other current assets                 6,998          34,474
                                                    ---------------------------
                                                        234,893         367,531


PROPERTY, PLANT and EQUIPMENT                         1,385,810       1,251,623
Less accumulated depreciation                          (646,182)       (576,918)
                                                    ---------------------------
                                                        739,592         674,705


OTHER ASSETS
Due from shareholder                                          0          19,734
Due from NYSERDA, net of current portion                 11,571               0
Cash value of life insurance                              7,893           7,893
Operating rights - net                                   15,410          15,410
Debt issuance costs - net                                 5,311           5,311
Deferred tax asset, net of current portion              147,800         147,800
Other assets                                             68,468          37,677
                                                    ---------------------------
                                                        256,453         233,825
                                                    ---------------------------



TOTAL ASSETS                                         $1,230,938      $1,276,061
                                                    ===========================
</TABLE>



                                       4


<PAGE>




                          THE METAL ARTS COMPANY, INC.
                     CONSOLIDATED CONDENSED BALANCED SHEETS

                                   (UNAUDITED)

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


                LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)

                                                                 3/31/99          6/30/98
                                                               --------------------------
CURRENT LIABILITIES
<S>                                                            <C>                <C>
Accounts payable - trade                                       $   278,482        329,114
Accrued expenses                                                    47,221         10,049
Accrued payroll and related taxes                                   78,878         47,377
Accrued commissions                                                 34,590         34,590
Due to shareholder                                                  23,500         13,000
Current portion of long - term debt                                402,012        402,012
                                                               --------------------------
                                                                   864,683        836,142

LONG - TERM LIABILITIES
Long - term debt, net of current portion                           153,817        183,784
Other long - term liability                                        243,222        243,222
Deferred tax liability                                               6,700          6,700
                                                               --------------------------
                                                                   403,739        433,706

MINORITY INTEREST IN SUBSIDIARY                                    148,401        135,901

STOCKHOLDERS' EQUITY
Common stock - $.01 par value, 15,000,000 shares authorized;
Issued and outstanding: 7,520,802 at September 30, 1998 and
June 30, 1998, respectively                                         75,208         75,208
Paid - in capital in excess of par value                         2,458,984      2,458,984
Accumulated deficit                                             (2,720,077)
                                                               --------------------------
                                                                               (2,663,880)
                                                                  (185,885)      (129,688)
                                                               --------------------------




TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                     $ 1,230,938    $ 1,276,061
                                                              ===========================

</TABLE>

                                       5


<PAGE>


                          THE METAL ARTS COMPANY, INC.
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

                                   (UNAUDITED)

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

                                                  THREE MONTHS ENDED           NINE MONTHS ENDED
                                                       MARCH 31,                    MARCH 31,
                                                 1999           1998          1999          1998
                                            --------------------------------------------------------

<S>                                         <C>            <C>            <C>            <C>
SALES - Net                                 $   326,002    $   479,698    $ 1,023,028    $ 1,419,077

COST OF SALES                                  (234,469)      (430,435)      (853,100)    (1,130,081)
                                            --------------------------------------------------------

GROSS MARGIN                                     91,533         49,263        169,928        288,996
SELLING, GENERAL AND
   ADMINISTRATIVE EXPENSES                       46,744         72,018       (162,661)      (239,803)
RESEARCH AND DEVELOPMENT                              0           (562)             0           (562)
                                            --------------------------------------------------------

OPERATING INCOME (LOSS)                          44,789        (23,317)         7,267         48,631

INTEREST EXPENSE                                (17,937)        (8,223)       (51,040)       (24,213)
INTEREST INCOME                                       1            489             76            639
MINORITY INTEREST IN INCOME
   OF SUBSIDIARY                                (15,500)           700        (12,500)       (22,000)
                                            --------------------------------------------------------
                                                (33,436)        (7,034)    (63,464)          (45,574)
                                            --------------------------------------------------------


NET INCOME (LOSS) FOR THE PERIOD            $    11,353    ($   30,351)   ($   56,197)   ($    3,057)
                                            --------------------------------------------------------

WEIGHTED AVERAGE NUMBER OF
   COMMON SHARES OUTSTANDING                  7,520,802      7,464,102      7,520,802      7,426,302

EARNINGS PER SHARE OF
   COMMON STOCK:
         Net income (loss) for the period   $      0.00     $     0.00    ($     0.01)    $    0.00
                                            --------------------------------------------------------


</TABLE>



                                       6


<PAGE>



                          THE METAL ARTS COMPANY, INC.
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

                                   (UNAUDITED)

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


                                                                          NINE  MONTHS ENDED
                                                                               MARCH 31,
                                                                         1999              1998
                                                                      --------------------------

CASH FLOWS FROM OPERATING ACTIVITIES

<S>                                                                   <C>              <C>
  Net income (loss) for the period                                    ($ 56,197)       $   3,057

ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
  Stock issued in payment of expenses                                         0            9,010
  Rent expense offset against advances to unconsolidated subsidiary           0            3,000
  Depreciation and amortization                                          69,300           69,300
  Minority interest in income of subsidiary                              12,500           22,000
  Change in operating accounts:
    Accounts receivable                                                  49,493          (47,958)
    Prepaid expenses and other                                           (3,315)         (54,196)
    Accounts payable                                                    (50,632)          47,347
    Accrued expenses                                                     37,172            7,269
Accrued payroll and commissions                                          31,501           11,086
                                                                      --------------------------
    Deferred revenue                                                     89,822           69,915


CASH FLOWS FROM INVESTING ACTIVITIES
  Capital expenditures                                                 (134,188)
  Repayment of advances to shareholder                                        0           13,009
  Advances from shareholder                                              10,500           20,000
  Repayment of advances from shareholder                                 19,734            (7000)
                                                                      --------------------------
                                                                       (103,954)         (45,739)

CASH FLOWS FINANCING ACTIVITIES - Payments on long - term debt                0           50,000
                                                                        (29,966)         (51,612)
                                                                                         (29,966)
                                                                                          (1,612)
NET INCREASE IN CASH                                                    (44,098)          22,564
                                                                      --------------------------

CASH - BEGINNING                                                         35,374           53,241
                                                                      --------------------------
CASH - ENDING                                                         ($  8,724)       $  75,805
                                                                      --------------------------
</TABLE>


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<PAGE>






                          THE METAL ARTS COMPANY, INC.
                          ----------------------------
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
              ----------------------------------------------------









1.   These statements should be read in conjunction with the audited financial
     statements and the notes thereto and with Management's Discussion and
     Analysis of Financial Condition and Results of Operations included in the
     Company's Form 10-K for the fiscal year ended June 30,1998. In the opinion
     of management, the accompanying consolidated condensed financial statements
     contain all adjustments of a normal recurring nature necessary for the fair
     presentation of the Company's financial position as of March 31, 1999 and
     the results of operations for the nine months ended March 31,1999 and 1998.



2.   The results of operations for the nine months ended March 31,1999 are not
     necessarily indicative of the results to be expected for the full year.



3.   Earnings (loss) per share of common stock are computed on the weighed
     average number of shares outstanding during the nine months ended March
     31,1999 and 1998. The weighted average number of shares outstanding at the
     end of each period is determined by totaling the number of shares
     outstanding at the end of each month in the period and dividing the sum by
     the number of months in the period.




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<PAGE>




                          THE METAL ARTS COMPANY, INC.
                          ----------------------------
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                -------------------------------------------------
                       CONDITION AND RESULTS OF OPERATION
                       ----------------------------------

Certain statements contained in this filing are "forward-looking statements"
within the meaning of the Private Securities Litigation reform Act of 1995, such
as statements relating to financial results and plans for future business
development activities, and are thus prospective. Such forward-looking
statements are subject to risks, uncertainties, and other factors, which could
cause actual results to differ materially from future results expressed or
implied by such forward-looking statements. Potential risks and uncertainties
include, but are not limited to, economic conditions, competition and other
uncertainties detailed from time to time in the Company's Securities and
Exchange Commission filings.

LIQUIDITY AND CAPITAL RESOURCES

PRIVATE PLACEMENT OF DEBENTURES

The company sold, as of September 30, 1994, eleven debentures for a total of
$275,000. The purpose of the private placement was to acquire the technology for
plating electroless nickel on aluminum, complete all research and development,
conduct test trials with potential customers leading up to commercialization.

NEW YORK STATE ENERGY AND DEVELOPMENT AUTHORITY FUNDING

The company signed an agreement with the New York State Energy Research and
Development Authority (NYSERDA) dated June 22, 1995 for funding of $325,000 for
its new technology. This was done as part of NYSERDA's Industrial Waste
Minimization Program. The purpose of the funding is to provide money for the
completion of research and development, test trials, commercial demonstrations
and commercialization of the technology. To date, the company has received a
total of $325,000 on this contract.

On June 30, 1998, the company signed a new agreement with NYSERDA to demonstrate
the use of Microsmooth(R) for hard anodizing in the amount of $55,000.

On August 12, 1998, the company signed an additional agreement with NYSERDA to
demonstrate the Microsmooth(R) process on aluminum automobile wheels. This
contract also includes funding from the US Department of Energy with the
Aluminum Company of America (ALCOA) as a strategic partner in the effort. The
funding from NYSERDA and US DOE totals $640,000. In addition, ALCOA has pledged
$100,00 of in-kind material, services and cash.

OPERATING ACTIVITIES

Over the past three fiscal years, Coating Technology has shown steady growth in
sales and operating earnings. Cash flow, along with capital leases, was adequate
to provide for the acquisition of capital equipment and provide the working
capital necessary to run the business. In addition, all relevant measures
relating to: debt to Equity; current ratio; working capital; and net worth
increased. Through the first nine months of fiscal year 1999, Coating
Technology's sales have dropped but has operated profitably and with sufficient
resources to sustain operations.



                                       9


<PAGE>











MICROSMOOTH(R)


The Company initially applied for a patent on Microsmooth(R), its proprietary
activator for plating electroless nickel on aluminum in March, 1994. That
application was then split into three separate applications; the chemical
formula; the process and; the resulting product.

Subsequently, and as a result of significant chemical formula modifications, the
original formula application was abandoned and a new patent application was
filed in June, 1997. On May 19, 1998, the United States Patent office issued
patent number 5,753,304 covering the Microsmooth(R) formula and the
Microsmooth(R) process. A trademark was issued on the name, Microsmooth(R), on
June 30, 1998.

On July 30, 1997 the Company entered into an exclusive license agreement with
Alyn Corporation, Inc. for Alyn to use the Microsmooth(R) process on Alyn's
Boralyn(R) alternate computer memory disks. The Company will receive material
royalties from the Alyn Corporation to retain Alyn's exclusive worldwide rights
to the Microsmooth(R) technology on alternate computer memory disks.

If Metal Arts is successful in commercializing its new technology it will be
necessary to raise additional capital. The amount of capital required will
depend on how rapidly market acceptance might occur. If this does occur, it
could result in growth in the company's sales and earnings over the next few
years. The company will seek, if commercial sales commence, to raise additional
capital in the form of receivables financing, warrant conversion or other
investment mechanisms to sustain operations.





                                       10


<PAGE>






                          THE METAL ARTS COMPANY, INC.
                          ----------------------------
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                -------------------------------------------------
                       CONDITION AND RESULTS OF OPERATION
                       ----------------------------------

B.  RESULTS OF OPERATIONS:
    The following table illustrates the major components of consolidated net
    sales and net income (loss).


                                                        NINE MONTHS ENDED
                                                             MARCH 31,
                                                      1999              1998
                                                 ------------------------------

CONSOLIDATED NET SALES
Metal Arts                                       $         0        $    81,500
Coating Technology                                 1,023,000          1,337,500
                                                 ------------------------------
                                                 $ 1,023,000        $ 1,419,000
                                                 ------------------------------
CONSOLIDATED NET INCOME (LOSS)
Metal Arts                                       ($   85,200)       ($   48,000)
Minority Interest                                    (12,500)           (22,000)
Coating Technology                                    41,500             73,000
                                                 ------------------------------
                                                 ($   56,200)       $     3,000
                                                 ==============================

THE METAL ARTS COMPANY, INC.
----------------------------

The net sales for the Company for the nine (9) months ended March 31, 1999 were
$0 compared with $81,500 in the previous year. The Company showed a loss of
$85,200 versus a loss of $48,000 in the previous year.

COATING TECHNOLOGY, INC.
------------------------

Coating Technology's sales for the nine (9) months ended March 31, 1999 were
$1,023,000 as compared with $1,337,500 in the previous year. The Company showed
a profit of $41,500 as compared with a profit of $73,000 in the previous year.


                                       11

<PAGE>






                          THE METAL ARTS COMPANY, INC.
                          ----------------------------


Part II - Other Information

         Item 6 - Exhibits and Reports on Form 8 - K

         A.       Exhibits - None

         B.       Reports on Form 8 - K - None


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.


                          THE METAL ARTS COMPANY, INC.
                          ----------------------------


Date: MAY 15, 1999                                      /S/   STANLEY J. DAHLE
      --------------                                    ----------------------
                                                           Stanley J. Dahle
                                                              President

Date: MAY 15, 1999                                      /S/   ALBERT A. CAUWELS
      -------------                                     -----------------------
                                                            Albert A. Cauwels
                                                              Secretary


                                       12