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
   June 30, 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 June 30, 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                                              9




PART II - OTHER INFORMATION                                            12



            _________________________________________________________



     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>

                                                   June 30,
                                                     2001         December 31,
                                                 (Unaudited)         2000
                                                  =========        =========
Current Assets
 Cash and cash equivalents                      $ 1,068,943      $   814,240
 Trade accounts receivable, less allowance for
  doubtful accounts of $34,500 at June 30, 2001
  and $32,000 at December 31, 2000                  422,689          574,073
                                                  ---------        ---------
    Total current assets                          1,491,632        1,388,313
                                                  ---------        ---------

Property and equipment, net                         116,760          119,295
Goodwill, net                                       474,391          457,731
Purchased software, net                             774,726          453,967
Deposits and other                                   79,825           45,702
                                                  ---------        ---------
                                                  1,445,702        1,076,695
                                                  ---------        ---------

    Total assets                                $ 2,937,334      $ 2,465,008
                                                  =========        =========

Liabilities and Stockholders' Equity
Current Liabilities
 Notes payable - related party                  $    12,499      $    12,499
 Trade accounts payable                              79,096           47,597
 Accrued payroll                                    114,061           92,381
 Accrued interest - related party                    22,642           22,127
 Other accrued expenses                             199,671          100,018
 Deferred revenue                                 1,090,421        1,038,908
                                                  ---------        ---------
     Total current liabilities                    1,518,390        1,313,530

     Total liabilities                            1,518,390        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 June 30, 2001
  and December 31, 2000                           5,617,866        5,617,866
 Additional paid-in capital                       2,816,554        2,816,554
 Accumulated deficit                             (7,046,570)      (7,318,462)
 Currency translation adjustments                    (8,906)          (4,480)
                                                  ---------        ---------
                                                  1,458,944        1,191,478

 Less stock purchase note receivable                 40,000           40,000
                                                  ---------        ---------
    Total stockholders' equity                    1,418,944        1,151,478
                                                  ---------        ---------
    Total liabilities and stockholders' equity  $ 2,937,334      $ 2,465,008
                                                  =========        =========

</TABLE>


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

<PAGE>

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

                                      Three Months Ended     Six Months Ended
                                           June 30,              June 30,
                                        2001      2000       2001       2000
                                        ====      ====       ====       ====
Revenue
 Software packages                  $ 113,073  $  47,334  $ 152,127  $ 107,742
 Installation, training and
  customer support                    170,876     12,667    272,417     41,077
 Maintenance                          481,979    286,735    922,104    480,368
 Equipment and supplies sales          51,997     47,224     97,155    118,206
 Other                                  3,989      1,968      8,865      4,062
                                    ---------  ---------  ---------  ---------
                                      821,914    395,928  1,452,668    751,455
                                    ---------  ---------  ---------  ---------
Costs and expenses
 Salaries                             361,976    217,756    689,719    413,401
 Other general, administrative
  and selling expense                 179,438    105,770    327,984    211,757
 Depreciation and amortization         72,085     34,659    129,814     63,931
 Commissions                            1,440      2,525      2,804      5,250
 Cost of equipment and supplies sold   27,393     24,352     48,798     61,319
                                    ---------  ---------  ---------  ---------
                                      642,332    385,062  1,199,119    755,658
                                    ---------  ---------  ---------  ---------
 Income (loss) from operations        179,582     10,866    253,549     (4,203)
                                    ---------  ---------  ---------  ---------

Nonoperating income (expense)
 Interest expense                        (257)      (472)      (514)      (943)
 Interest income                        8,864      8,325     18,857     19,128
                                    ---------  ---------  ---------  ---------
                                        8,607      7,853     18,343     18,185
                                    ---------  ---------  ---------  ---------

Net income                            188,189     18,719    271,892     13,982

Preferred stock dividend
 requirements                         (13,960)   (13,960)   (27,920)   (27,920)
                                    ---------  ---------  ---------  ---------
Income (loss) available for
 common stockholders                $ 174,229  $   4,759  $ 243,972  $ (13,938)
                                    =========  =========  =========  =========

Net income per common share         $   NIL    $   NIL    $   NIL    $   NIL
                                    =========  =========  =========  =========

Weighted average number of common
 shares outstanding                 56,178,663 54,069,078 56,178,663 53,080,067
                                    ========== ========== ========== ==========
</TABLE>


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

<PAGE>

                 United Systems Technology, Inc. and Subsidiary
                      Consolidated Statements of Cash Flows
              For the Six Month Period Ended June 30, 2001 and 2000
                                   (Unaudited)

<TABLE>
<S>                                                 <C>              <C>

                                                    2001             2000
                                                  ========         ========
Cash flows in operating activities:
 Net income                                      $  271,892       $   13,982
                                                  ---------        ---------
Adjustments to reconcile net income to net cash
 provided by (used in) operating activities:
  Depreciation and amortization                     129,814           63,931
  Recognition of deferred compensation costs on
   employee stock purchase                            9,000            9,000
  Change in operating assets and liabilities:
   Accounts receivable                              231,054          130,889
   Deposits and other                               (36,844)         (38,130)
   Accounts payable                                  32,015           (4,170)
   Accrued expenses                                  49,360         (118,598)
   Deferred revenue                                (282,832)        (136,202)
                                                  ---------        ---------
                                                    131,567          (93,280)
                                                  ---------        ---------
Net cash provided from (used in) operating
 activities                                         403,459          (79,298)
                                                  ---------        ---------
Cash flows from investing activities:
 Property and equipment additions                   (17,747)         (10,397)
 Acquisition of businesses                         (132,065)        (425,200)
                                                  ---------        ---------
Net cash used in investing activities              (149,812)        (435,597)
                                                  ---------        ---------

Cash flows from financing activities:
 Exercise of common stock options                     -               87,500
                                                  ---------        ---------
Net cash provided by financing activities             -               87,500
                                                  ---------        ---------

Effect of exchange rate changes on cash               1,056             -
                                                  ---------        ---------

Increase (decrease) in cash and cash equivalents    254,703         (427,395)
Cash and cash equivalents, beginning of period      814,240          922,838
                                                  ---------        ---------

Cash and cash equivalents, end of period         $1,068,943       $  495,443
                                                  =========        =========

</TABLE>


    The accompanying notes are an integral part of the financial 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 June 30, 2001 and December 31,
2000 and the  results  of  operations  and cash flows of USTI for the six months
ended June 30, 2001 and 2000. The consolidated results of operations for the six
months ended June 30, 2001 are not  necessarily  indicative of the results to be
expected for the full year.


Note 2.  Property and Equipment:

     Property and equipment at June 30, 2001 and December 31, 2000  consisted of
the following:
<TABLE>
<S>                                                 <C>              <C>

                                                  June 30,       December 31,
                                                    2001             2000
                                                  ========         ========
Leasehold improvements                          $   75,184       $   75,431
Furniture and fixtures                              57,349           54,080
Equipment                                        1,038,672        1,024,107
                                                 ---------        ---------
                                                 1,171,205        1,153,618
Less Accumulated depreciation
  and amortization                              (1,054,445)      (1,034,323)
                                                 ---------        ---------
                                                $  116,760       $  119,295
</TABLE>

Note 3.  Other Assets:

     Other  assets at June 30,  2001 and  December  31,  2000  consisted  of the
following:
<TABLE>
<S>                                <C>               <C>             <C>

                                                 Accumulated
June 30, 2001                     Cost           Amortization        Net
=============                    ========        ============      ========
Goodwill                      $ 1,945,604        $(1,471,213)     $  474,391
Purchased Software              1,470,576           (695,850)        774,726

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 June 30,
2001, are entitled to the payment of approximately $446,105 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 June 30, 2001,
are entitled to the payment of  approximately  $211,125 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:

     Comprehensive income is as follows:
<TABLE>
<S>                                 <C>        <C>       <C>         <C>

                                 Three Months Ended      Six Months Ended
                                     June 30,                June 30,
                                   2001        2000      2001        2000
                                   ----        ----      ----        ----
  Net income                     $188,189    $18,719   $271,892     $13,982
  Currency translation
   adjustments                     (2,050)      -        (4,426)       -
                                  -------    -------    -------     -------
  Comprehensive income           $186,139    $18,719   $267,466     $13,982
                                  =======    =======    =======     =======
</TABLE>

Note 7.  Recent Accounting Pronouncements:

     In June  2001,  the  Financial  Accounting  Standards  Board  approved  for
issuance  Statement  of  Financial  Accounting  Standards  No.  141 (SFAS  141),
Business Combinations. This standard eliminates the pooling method of accounting
for business combinations  initiated after June 30, 2001. In addition,  SFAS 141
addresses  the  accounting  for  intangible  assets and  goodwill  acquired in a
business  combination.  This  portion  of SFAS  141 is  effective  for  business
combinations completed after June 30, 2001. The Company does not expect SFAS 141
to have a material  effect on the  Companys  financial  position  or results of
operations.

     In June  2001,  the  Financial  Accounting  Standards  Board  approved  for
issuance  Statement  of  Financial  Accounting  Standards  No.  142 (SFAS  142),
Goodwill and  Intangible  Assets,  which  revises the  accounting  for purchased
goodwill and intangible  assets.  Under SFAS 142, goodwill and intangible assets
with  indefinite  lives  will no longer  be  amortized,  but will be tested  for
impairment annually, and also in the event of an impairment indicator.  SFAS 142
is effective  for fiscal years  beginning  after  December 15, 2001,  with early
adoption permitted for companies with fiscal years beginning after March 15,2001
if their first quarter financial statements have not previously been issued. The
Company  has not yet  determined  when it will  adopt  SFAS 142 or its effect on
annual income.

<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
three month  period  ended June 30, 2001  include  revenues of $821,914  and net
income of $188,189 as compared to revenues of $395,928 and net income of $18,719
for the same  period in 2000.  Results of  operations  for the six month  period
ended June 30, 2001 include revenues of $1,452,668 and net income of $271,892 as
compared to  revenues of $751,455  and net income of $13,982 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
offering.  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,  Fixed  Assets  and  Inventory  Control  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 June 30, 2001 and 2000
-----------------------------------------------
     The Companys total revenue  increased 108% from $395,928 during the second
quarter in 2000 to  $821,914  in 2001.  Software  license  fees  increased  from
$47,334 in 2000 to  $113,073  in 2001 due,  in part,  to an increase in sales of
products to existing  customers  during the quarter.  Installation  and training
increased to $170,876 in 2001 from $12,667 in 2000 due, in a  significant  part,
to services provided to the Companys  Canadian  customers related to regulatory
changes that were implemented during the quarter.  Maintenance revenue increased
from $286,735 in 2000 to $481,979  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 remained relatively constant from 2000 to 2001.

<PAGE>

     Total costs and expenses increased 67% from $385,062 in 2000 to $642,332 in
2001. Salary expense increased from $217,756 in 2000 to $361,976 in 2001, due in
part,  from the  addition  of  employees  related  to  recent  acquisitions  and
increased  incentives  resulting  from  improved  results of  operations.  Other
general,  administrative and selling expenses increased from $105,770 in 2000 to
$179,438 in 2001 as a result of increased  costs related to acquisitions in 2001
including  software and  maintenance  costs for 3rd party  products  utilized at
these customer locations.  Depreciation and amortization  expense increased from
$34,359 in 2000 to $72,085 in 2001 due to the addition of assets  related to the
CPS,  Auto Admin and MAS  acquisitions.  Cost of  equipment  and  supplies  sold
remained relatively constant from 2000 to 2001.

Six Month Period Ended June 30, 2001 and 2000
---------------------------------------------
     The Companys  total revenue  increased 93% from $751,455  during the first
six  months of 2000 to  $1,452,668  during  the same  period  in 2001.  Software
license fees  increased  from $107,742 in 2000 to $152,127 in 2001 due, in part,
to an increase in sales of products to existing  customers  during the  quarter.
Installation  and  training  increased  to $272,417 in 2001 from $41,077 in 2000
due,  in a  significant  part,  to  services  provided  the  Companys  Canadian
customers related to regulatory changes that were implemented during the quarter
and an  increase  in  training  services  provided  to its  Canadian  customers.
Maintenance revenue increased from $480,368 in 2000 to $922,104 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 from $118,206 in
2000 to $97,155 as a result of decreased sales of computer  equipment during the
year.

     Total costs and expenses  increased 59% from $755,658 in 2000 to $1,199,119
in 2001. Salary expense increased from $413,401 in 2000 to $689,719 in 2001, due
in part,  from the  addition of  employees  related to recent  acquisitions  and
increased  incentives  resulting  from  improved  results of  operations.  Other
general,  administrative and selling expenses increased from $211,757 in 2000 to
$327,984 in 2001 as a result of increased  costs related to acquisitions in 2001
including  software and  maintenance  costs for 3rd party  products  utilized at
these customer locations.  Depreciation and amortization  expense increased from
$63,931 in 2000 to $129,814 in 2001 due to the addition of assets related to the
CPS,  Auto Admin and MAS  acquisitions.  Cost of  equipment  and  supplies  sold
decreased  from  $61,319 in 2000 to $48,798  as a result of  decreased  sales of
computer equipment during the year.

Liquidity and Capital Resources
-------------------------------

     The Company had net cash  provided  from  operating  activities of $403,459
during  the six months  ended June 30,  2001,  as  compared  to net cash used in
operations  of  $79,298  for the same  period  in 2000.  This  increase  in cash
provided  in 2001 was  due,  in  part,  to the  improvement  in the  results  of
operations  during  the  first  six  months of 2001.  Net cash of  $132,065  was
utilized  in 2001 for the  purchase  of 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. Net cash of $17,747 was utilized for the purchase of equipment.

<PAGE>

     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.

     The Company is  currently in arrears in the payment of dividends to holders
of its preferred  stock.  As of June 30, 2000,  dividends were in arrears on the
Series B  preferred  stock in the amount of  $446,105  and on Series E preferred
stock in the amount of $211,125.

Forward-Looking Statements
--------------------------

     This report  contains  forward-looking  statements,  other than  historical
facts,  which  reflect the view of Companys  management  with respect to future
events.  Such  forward-looking  statements are based on assumptions  made by and
information currently available to the Companys 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 Companys  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 June 30,
2001, are entitled to the payment of approximately $446,105 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 June 30, 2001,
are entitled to the payment of  approximately  $211,125 in dividends,  which are
currently in arrears.

Item 4.  Submission of Matters to a Vote of Security Holders

     On June 27, 2001, the Company held its Annual Meeting of  Shareholders.  At
the meeting, the shareholders approved the following items:

     The following persons were elected as Directors of the Company:

           Thomas E. Gibbs
           Randall L. McGee
           Earl H. Cohen
           Scott Burri

     The  accounting  firm of Grant  Thornton  LLP was  selected as  independent
accountants for the Company.

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)  No reports on Form 8-K were filed during the quarter for which
              this report is filed.
<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:  August 14, 2001               By: /s/  Thomas E. Gibbs
                                         Thomas E. Gibbs, President
                                          and Chairman of the Board
                                         (Principal Executive Officer)



Date:  August 14, 2001               By: /s/  Randall L. McGee
                                         Randall L. McGee, Secretary
                                          and Treasurer
                                         (Principal Financial and
                                          Accounting Officer)




<PAGE>