U. S. Securities and Exchange Commission
                            Washington, D. C.  20549

                                   FORM 10-QSB


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

        For  the  quarterly  period  ended June 30,  2001

[ ]     TRANSITION  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT  OF  1934

         For  the  transition  period  from                to
                                            --------------    ------------------


                           Commission File No. 0-31927


                          LASERLOCK TECHNOLOGIES, INC.
              -----------------------------------------------------
             (Exact name of Registrant as specified in its charter)

           NEVADA                                   23-3023677
      -------------------------------             -------------------
      (State or other jurisdiction of               (IRS Employer
       Incorporation or Organization)             Identification No.)


                      837 Lindy Lane, Bala Cynwyd, PA 19004
          ------------------------------------------------------------
                    (Address of Principal Executive offices)


                                (610) 909 - 1000
                                 --------------
                           (Issuer's telephone number)


     Check  whether  the  issuer  (1)  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
                               -------                   -------

State the number of shares outstanding of each of the issuer's classes of common
equity,  as  of  the  latest  practicable  date:


 Class                                 Outstanding at June 30, 2001
 -----                                 ----------------------------

Common  Stock,  no  par  value                  14,446,249

<PAGE>
Transitional  Small  Business  Disclosure  Form  (check  one):

                          Yes     X                 No
                              --------                 --------


                          LASERLOCK TECHNOLOGIES, INC.


                                TABLE OF CONTENTS
                                   FORM 10-QSB


                                     PART I
                              FINANCIAL INFORMATION


Item  1.           Financial  Statements,  Unaudited

                  Unaudited    Balance  Sheet
                    at  June 30, 2001

                  Unaudited   Statement  of  Operations
                    for  the  three  months  ended
                        June 30, 2000  and  2001

                  Unaudited   Statement  of  Cash  Flow  for  the
                    three  months  ended      June 30, 2000  and  2001

                  Unaudited    Statement  of  Shareholders Equity
                   for  the three  months  ended    June 30, 2001


                  Notes  to  Unaudited  Financial  Statements


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


                                     PART II
                                OTHER INFORMATION

Item  1.           Legal Proceedings

Item  2.           Changes  in  Securities  and  Use  of  Proceeds

Item  6.           Exhibits  and  Reports  on  Form  8-K

Signatures

Exhibits

<PAGE>
                         PART I - FINANCIAL INFORMATION


Item  1.  Financial  Statements

<PAGE>

                          LASERLOCK TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                              FINANCIAL STATEMENTS

                                 JUNE 30, 2001


<PAGE>




                     INDEPENDENT ACCOUNTANT'S REVIEW REPORT




To the Board of Directors and Stockholders
Laserlock Technologies, Inc.


We have reviewed the accompanying balance sheet,  statements of operations,  and
statements of cash flows of Laserlock Technologies, Inc. as of June 30, 2001 and
for the three-month and six-month periods then ended. These financial statements
are the responsibility of the Company's management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A review  of  interim  financial
information consists principally of applying analytical  procedures to financial
data and making  inquiries of persons  responsible  for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with auditing standards generally accepted in the United States of America,  the
objective  of which is the  expression  of an opinion  regarding  the  financial
statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the  accompanying  financial  statements for them to be in conformity
with accounting principles generally accepted in the United States of America.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note 2 to the
financial  statements,  the Company's losses from  development  stage activities
raise  substantial  doubt  about its  ability to  continue  as a going  concern.
Management's  actions in regard to this matter are also described in Note 2. The
financial  statements do not include any adjustments  that might result from the
outcome of this uncertainty.




                                          LARSON, ALLEN, WEISHAIR & CO., LLP

Blue Bell, Pennsylvania
July 25, 2001




<PAGE>
<TABLE>
<CAPTION>
                          LASERLOCK TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                                 BALANCE SHEETS




                                     ASSETS


                                                                          June 30,           December 31,
                                                                            2001                    2000
                                                                        ------------         -----------------
                                                                       (Unaudited)

Current assets:
<S>                                                                       <C>                    <C>
   Cash and cash equivalents                                              $  592,608             $  656,803
   Interest receivable                                                         1,773                  4,725
   Prepaid expenses                                                            4,250                  4,250
                                                                        -------------          -------------
          Total assets                                                    $  598,631             $  665,778
                                                                          ===========            ===========




                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Accounts payable and accrued expenses
    and total liabilities                                                $     1,343          $         245
                                                                         ------------         --------------

Commitments

Stockholders' equity:
   Preferred stock, $.001 par value; 10,000,000 shares
    authorized,  no shares issued and outstanding
   Common  stock,  $.001 par value;  40,000,000  shares  authorized,  14,446,249
    shares outstanding at June 30, 2001 and 13,289,999 shares outstanding
    at December 31, 2000                                                      14,447                 13,290
   Deferred consulting fees                                                        -                (20,683)
   Additional paid-in capital                                              1,616,961              1,094,868
   Deficit accumulated during the development stage                       (1,034,120)              (421,942)
                                                                          -----------            -----------

Total stockholders' equity                                                   597,288                665,533
                                                                          -----------            -----------
Total liabilities and stockholders' equity                                $  598,631             $  665,778
                                                                          ===========            ===========

                 See accompanying notes to financial statements
</TABLE>


<PAGE>
<TABLE>
<CAPTION>


                          LASERLOCK TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF OPERATIONS
            FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2001 AND 2000
      AND THE PERIOD NOVEMBER 10, 1999 (DATE OF INCEPTION) TO JUNE 30, 2001
                                   (Unaudited)




                                                                     Three Months               Six Months
                                                 Cumulative                Ended                     Ended
                                                      Since               June 30                   June 30
                                                   Inception      2001        2000           2001         2000
                                                 ------------     ----        ----           ----         ----

<S>                                        <C>              <C>          <C>          <C>           <C>
Revenues                                   $        -       $     -      $     -      $     -       $     -
                                           -----------------------------------------------------------------------

Costs and expenses:
    Research and development                         129,306       32,780                    68,588
    Legal and accounting                              90,091       40,156          395       53,156        8,700
    Selling, general and administrative              827,870       97,952       90,166      504,634      107,845
                                                  -----------    ---------     --------    ---------    --------

      Total costs and expenses                     1,072,267      170,888       90,561      626,378      116,545

Loss before other income                          (1,072,267)    (170,888)     (90,561)    (626,378)    (116,545)

Other income:
    Interest income                                   38,147        5,149        6,570       14,200        6,570
                                                  -----------    ---------     --------    ---------    --------

Net loss                                         $(1,034,120)   $(165,739)    $(83,991)   $(612,178)   $(109,975)
                                                 ============   ==========    =========   ==========   ==========

Basic and diluted weighted average
 common shares outstanding                                     13,679,906   11,234,705   13,546,983    8,778,283

Basic and diluted net loss per common share                       $(.01)      $(.01)       $(.05)       $(.01)
                                                                  ======      ======       ======       ======

</TABLE>
                 See accompanying notes to financial statements




<PAGE>
<TABLE>
<CAPTION>
                          LASERLOCK TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                  STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
      FOR THE PERIOD NOVEMBER 10, 1999 (DATE OF INCEPTION) TO JUNE 30, 2001




                                                                                                         Deficit
                                                      Common Stock                                       Accumulated
                                                 -----------------------                   Additional    during the
                                                  Number                     Consulting    Paid-In       Development
                                                 of Shares    Amount              Fees     Capital       Stage          Total
                                                 ---------    ------         ------------ -----------  -------------  ----------


<S>                                               <C>           <C>          <c>            <C>            <C>           <C>
Issuance of 4,278,000 shares on November 10, 1999  4,278,000  $    4,278                  $   16,595     $ ---         $  20,873

Issuance of shares of common stock
  in exchange for services                         1,232,000       1,232                      35,728       ---            36,960

Issuance of shares of common stock                 2,090,000       2,090                      60,610                      62,700

Stock issuance costs                               ---            ---                        (13,690)      ---           (13,690)

Net loss                                           ---            ---                        ---           (54,113)      (54,113)
                                                 -----------  ----------                 -----------   ------------   -----------

Balance December 31, 1999                          7,600,000       7,600                      99,243       (54,113)       52,730

Issuance of shares of common stock                 5,449,999       5,450                     921,050       ---           926,500

Issuance of 240,000 shares of common stock
 in exchange for services                            240,000         240      $(40,800)       40,560

Stock issuance costs                                ---           ---                        (16,335)      ---           (16,335)

Fair value of non-employee stock options grants                                               50,350                      50,350

Amortization of deferred consulting fees                                        20,117                                    20,117

Net loss                                                          ---         ---            ---          (367,829)     (367,829)
                                                 -----------  ----------     ---------  ------------    -----------   -----------
Balance, December 31, 2000                        13,289,999      13,290       (20,683)    1,094,868      (421,942)      665,533

Issuance of shares of common stock                 1,156,250       1,157                     183,843                     185,000
Issuance of 1,500,000 stock options                                                           15,000                      15,000
Fair value of non-employee stock options grants                                              323,500                     323,500
Amortization of deferred consulting fees                                        20,683                                    20,683
Net loss                                                                                                  (612,178)     (612,178)
                                                 -----------  -------------- ----------  -----------   ------------   -----------

Balance, June 30, 2001 (unaudited)                14,446,249   $  14,447$      -       .  $1,616,961   $(1,034,120)   $  597,288
                                                  ==========   ============= ===========  ==========   ============   ===========


                 See accompanying notes to financial statements
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
                          LASERLOCK TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF CASH FLOWS
                 FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
      AND THE PERIOD NOVEMBER 10, 1999 (DATE OF INCEPTION) TO JUNE 30, 2001
                                   (Unaudited)




                                                                       Cumulative
                                                                            Since
                                                                         Inception           2001             2000
                                                                         ---------           ----             ----

Cash flows from operating activities:
<S>                                                                     <C>                 <C>               <C>
    Net loss                                                            $(1,034,120)        $(612,178)        $(109,975)
    Adjustments to reconcile net loss to net
     cash used in operating activities:
       Fair value of options issued in exchange for service                 373,600           323,250
       Stock issued in exchange for services                                 36,960
       Amortization of deferred consulting fees                              40,800            20,683
       Changes in assets and liabilities:
         (Increase) decrease in interest receivable                          (1,773)            2,952
         Increase in prepaid expenses                                        (4,250)                             (4,424)
         Increase in accounts payable                                         1,343             1,098            12,786
                                                                      --------------      ------------       -----------
Net cash used in operating activities                                      (587,440)         (264,195)         (101,613)
                                                                        ------------        ----------        ----------

Cash flows from financing activities:
    Proceeds from issuance of stock options                                  15,000            15,000
    Proceeds from issuance of common stock                                1,195,073           185,000           617,900
    Stock issuance costs                                                    (30,025)                            (16,335)
                                                                        ------------  ---------------        -----------
Net cash provided by financing activities                                 1,180,048           200,000           601,565
                                                                         -----------        ----------        ----------

Net increase (decrease) in cash                                             592,608           (64,195)          499,952

Cash at beginning of period                                                                   656,803            55,230
                                                                   ----------------        -----------       -----------

Cash at end of period                                                    $  592,608         $ 592,608         $ 555,182
                                                                         ===========        ==========        ==========

Supplemental disclosures for non-cash financing activities:
      Common stock issued for services                                   $   77,760
                                                                         ===========

</TABLE>

                 See accompanying notes to financial statements


<PAGE>



                          LASERLOCK TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                             JUNE 30, 2001 AND 2000



NOTE 1        BASIS OF PRESENTATIONS

               The  accompanying   unaudited  financial   statements  have  been
               prepared  in  accordance  with  generally   accepted   accounting
               principles  for  interim  financial   information  and  with  the
               instructions  for Form 10-QSB and Item 310(b) of Regulation  S-B.
               Accordingly,  they  do not  include  all of the  information  and
               footnotes  required by generally accepted  accounting  principles
               for complete financial statements.  In the opinion of management,
               all  adjustments   (consisting  of  normal  recurring   accruals)
               considered  necessary for a fair presentation have been included.
               Operating  results for the six months ended June 30, 2001 are not
               necessarily  indicative  of the results  that may be expected for
               the  year  ended  December  31,  2001.  The  unaudited  financial
               statements  should  be read in  conjunction  with  the  financial
               statements  and  footnotes  thereto  included  in  the  Company's
               quarterly report on Form 10-QSB for the six months ended June 30,
               2001.


NOTE 2        REALIZATION OF ASSETS

              The accompanying  financial statements have been prepared assuming
              that the Company will continue as a going concern. The Company has
              incurred losses from activities during the development stage. This
              condition raises  substantial doubt about the Company's ability to
              continue  as a going  concern.  The  financial  statements  do not
              include any adjustments that might result from the outcome of this
              uncertainty.

NOTE 3        STOCK OPTIONS

              On February 20, 2001, the Company entered into an agreement,  with
              a non-related third party,  which sold 1,500,000 stock options for
              a price of $.01 per option. The agreement provides each option the
              right to  purchase  one share of common  stock at $.16 per  share;
              immediate  vesting  of  options  and  expiration  of  options  was
              mutually  extended by both parties to July 31, 2001. In accordance
              with the fair value method as described in the optional accounting
              requirements of SFAS No. 123 and  recognition  policies of APB No.
              25, the Company recognized an expense of $300,000 during the first
              quarter of 2001.

               On April 7, 2001,  the Company  entered  into an  agreement  with
               legal counsel for 150,000 stock options.  The agreement  provides
               each  option the right to purchase  one share of common  stock at
               $.155 per share;  immediate  vesting of options and expiration of
               options on  ________________.  In accordance  with the fair value
               method as described in the optional  accounting  requirements  of
               SFAS No. 123 and recognition  policies of APP No. 25, the Company
               recognized an expense of $23,250 during the second quarter 2001.





<PAGE>


                          LASERLOCK TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                             JUNE 30, 2001 AND 2000

NOTE 4        ISSUANCE OF COMMON STOCK

               In April 2000, the owner of the 1,500,000 stock options exercised
               1,156,250 of the options and purchased 1,156,250 shares of common
               stock  for  $185,000.  On July 1,  2001,  the  remaining  343,750
               options  were  exercised  and the  Company  received  $55,000 for
               343,750 shares of its common stock.

NOTE 5        INCOME TAXES



              The Company has $518,000 in Federal and State net  operating  loss
              carryovers, which can be used to offset future taxable income. The
              net operating loss carryforwards expire in the year 2030.

              The  components  of  the  Company's  deferred  tax  assets  are as
              follows:

              Net operating loss carryforwards                    $ 230,000
              Valuation allowance                                  (230,000)
                                                                   ---------

              Deferred tax asset                            $     -       .
                                                            ===============





<PAGE>


Item 2. Management Discussion and Analysis of Plan of Operation

Three Months Ending June 30, 2001 Compared
to the Three Months Ending June 30, 2000

The Company had no sales for the  six-month  periods ending June 30, 2001 and
June 30,  2000.  We  are   negotiating   several   contracts  in  the  gaming,
anti-counterfeiting,  and  anti-diversion  industries which management  believes
will be  consummated  during the third  quarter of fiscal 2001.  We have applied
internationally   for  patents  for  our  technology  for  laser  activated  ink
technologies  which  may be used as  part of an  anti-counterfeiting  protection
process.  We believe that our laser and ink  combination  products are ready for
commercial  production  and we have  been  soliciting  orders  for our  products
although we have not yet entered into any contracts.  We intend to have made our
first commercial sales of our products by the end of the third quarter of 2001.

The Company's net loss increased  97.3% from $83,991 for the three months ending
June,  2000 to $165,739 for the three months ending June 30, 2001.  The increase
was  primarily  caused by an increase in research  and  development  costs which
totaled  $32,780 in the three months  ending June 30, 2001,  as opposed to $0 in
the three months ending June 30, 2000;  and an increase in selling,  general and
administrative  costs which totaled  $97,952 in the three months ending June 30,
2001,  as opposed to $90,166 in the Three Months  Ending June 30 , 2000;  and an
increase in legal and  accounting  expenses  which totaled  $40,156 in the three
months  ending June 30, 2001, as opposed to $395 in the Three Months Ending June
30 , 2000.  The increase in these  expenses was the result both of the Company's
active solicitation of orders for our products, participation in gaming industry
trade shows, the development of an administrative  infrastructure to handle such
sales when they are  consummated,  and the increased legal and accounting  costs
affilliated  with  the  Company's  becoming  a  "Reporting  Company"  under  the
Securities Exchange Act of 1934, and with pursuing its patent applications.

Other income for the six-month period totaled $14,200.  This income was interest
received on the Company's cash reserve.

Liquidity and Capital Resources

During the first six months of 2001,  the Company was able to meet its financial
needs by continuing to utilize its cash  reserves.  The Company's  cash reserves
decreased from $656,803 at the beginning of the period to $592,608 at the end of
the period,  as opposed to an  increase  from  $55,230 to $640,327  for the same
period in 2000.  The  increase  during  the six months  ended June 30,  2000 was
attributed to the sale of our common stock.

Plan Of Operation

     Management  believes that the Company will be entering into the  commercial
production of its products in the next twelve months. The Company has met with a
number of large potential customers for the Company's products and services, and
contracts are being  negotiated  which,  if  consummated,  could bring quarterly
revenues of approximately  two to three hundred thousand dollars to the Company.
If no  agreements  are  consummated,  at its current  level of  operations,  the
Company should be able to meet its cash requirements over the next twelve months
by relying on cash  reserves,  and should be able to meet any  current  business
obligations  without hiring  additional staff or purchasing any major equipment.
If however the Company does consummate agreements with potential customers, then
the  Company  believes  that it will  have to  hire at  least  three  additional
employees - to cover finance,  administration,  and technical support;  and will
need to raise  additional  funds in order to have the working  capital needed to
begin to expand its marketing  activities.  Even after the  consummation  of any
potential  agreements,  the Company does not envision  making any major plant or
equipment purchases for the next twelve months. The Company plans to continue to
designate  significant  amounts to its research and  development in the field of
applying its  technologies  to other fields and product  lines which the Company
believes will benefit from its anti-counterfeit  systems. The Company intends to
concentrate  its  development  efforts  on the  gaming  and  anti-counterfeiting
industries in the next twelve months.


As indicated in the Company's most recent financial statements available herein,
the Company continues to be cash flow negative.  There can be no assurances that
the Company's ongoing  operations will begin to generate a positive cash flow or
that  unforeseen  events may  require  more  working  capital  than the  Company
currently has at its disposal.  At the current time the Company  intends to fund
its capital  requirements  by  continuing to utilize its cash  reserves.  As the
Company completes the development and  commercialization of its products,  sales
are expected to be generated in this upcoming quarter.  If the Company is unable
to meet all of its cash flow  requirements  through the  utilization of its cash
reserves, additional funds may be borrowed or raised through sales of its common
or preferred stock. If the Company cannot cover its negative cash flows with its
current  cash  reserves,  or is  unable  to  consummate  any of  these  sales or
borrowings, it will realize significant adverse impacts on its operations.




<PAGE>


                           PART II - OTHER INFORMATION

Item  1.  Legal Proceedings

     None.


Item  2.  Changes  in  Securities  and  Use  of  Proceeds

     None.
<PAGE>



Item 6. Exhibits  and  Reports  on  Form  8-K

(A)     Exhibits
        --------

None

(B)     Reports  on  Form  8-K
        ----------------------

None


SIGNATURES

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

                                          LaserLock Technologies, Inc.
                                          (Registrant)



Dated:   August 8,  2001              By: /s/
                                          ---------------------------
                                          Norman Gardner
                                          President  and  CEO



<PAGE>