SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

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

                 For the quarterly period ended August 31, 2001

                                       OR

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

          From the transition period from ___________ to ____________.

                         Commission File Number 0-29439


                            TWISTEE TREAT CORPORATION
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

          Delaware                                         43-1796315
------------------------------                  --------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)


           228 West 4th Street, Suite 227, Kansas City, Missouri 64105
           ------------------------------------------------------------
                    (Address of principal executive offices)

                                 (816) 842-1116
                            --------------------------
                           (Issuer's telephone number)

                                       N/A
               ---------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

         Indicate  by check mark  whether the  registrant  (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
                                   ---    ----

As of October  15,  2001  19,519,950  shares of Common  Stock of the issuer were
outstanding.

<PAGE>

                            TWISTEE TREAT CORPORATION
                                   FORM 10-QSB

                                      INDEX

                                     PART I

Item 1.    Financial Statements                                           F-3


Item 2.    Management's Discussion and Analysis of Financial Condition
           and Results of Operations                                      F-7

                                     PART II

Item 1.    Legal Proceedings                                              F-9

Item 6.    Exhibits and Reports on Form 8-K                              F-10

           Signatures                                                    F-10


<PAGE>
                          PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

                            TWISTEE TREAT CORPORATION
                             CONDENSED BALANCE SHEET
<TABLE>


                                                                           August 31,        November 30,
                                                                              2001               2000
                                                                         ------------       --------------
<S>                                                                      <C>                 <C>
                                                                           (Unaudited)
ASSETS

Current assets:
  Cash                                                                        $  2,448
  Notes receivable - trade                                                      21,234           $  7,500
  Inventory                                                                     28,947             26,375
                                                                         ----------------   ---------------
    Total current assets                                                        52,629             33,875

Property and equipment, net                                                    214,935            228,008
Inventory - long-term                                                          149,670            149,670
Funds advanced with letter of intent                                            50,000             50,000
Other receivable                                                                28,766             50,000
Other                                                                            1,150              1,150
                                                                         ----------------   ---------------
                                                                              $497,150           $512,703
                                                                         ================   ===============


                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities:
  Accounts payable and accrued liabilities                                    $226,729           $172,031
  Notes payable                                                                240,554            156,659
  Compensation payable                                                          75,125             68,596
  Deferred revenue                                                              20,000             20,000
                                                                         ----------------   ---------------
    Total current liabilities                                                  562,408            417,286
                                                                         ----------------   ---------------

Stockholders' equity (deficit):
  Preferred stock, $.0001 par value, 10,000,000 shares authorized:
    none issued and outstanding                                                      -                  -
  Common stock, $.0001 par value, 50,000,000 shares
    authorized:  19,723,200 and 19,519,950 shares issued and outstanding:        1,972              1,959
  Additional paid-in capital                                                 3,545,052          3,480,737
  Accumulated deficit                                                      (3,437,282)        (3,162,279)
                                                                         ----------------   ---------------
                                                                               109,742            320,417
  Less: subscriptions receivable                                             (175,000)          (225,000)
                                                                         ----------------   ---------------
    Total stockholders' equity (deficit)                                      (65,258)             95,417
                                                                         ----------------   ---------------
                                                                              $497,150           $512,703
                                                                         ================   ===============
</TABLE>

              See accompanying notes to interim condensed financial
                                  statements.
<PAGE>
--------------------------------------------------------------------------------
                            TWISTEE TREAT CORPORATION
                        CONDENSED STATEMENT OF OPERATIONS
                                   (Unaudited)
<TABLE>


                                                     Three months ended
                                                         August 31,                     Nine months ended August 31,
                                                   2001               2000                2001                2000
                                                -------------    ---------------    ------------------   ----------------
<S>                                             <C>              <C>                <C>                  <C>

Net sales                                           $    -            $  3,651               $ 8,690           $ 104,945
Cost of sales                                            -              10,738                 9,532              42,901
                                                -------------    ---------------    ------------------   -----------------
Gross profit (loss)                                      -             (7,087)                 (842)              62,044

Operating expenses:
  Payroll and contractual expense                        -              40,170                81,198             112,835
  Depreciation and amortization expense                  -              20,852                13,072              59,773
  Consulting expense                                     -               6,000                20,627              22,200
  Legal and professional fees                            -              42,202                70,792             197,296
  Other general and administrative                   3,494              61,694                80,845             168,240
                                                -------------    ---------------    ------------------   -----------------
                                                     3,494             170,918               266,534             560,344
                                                -------------    ---------------    ------------------   -----------------

Loss from operations                                (3,494)           (178,005)             (267,376)           (498,300)

Other income (expense):
  Interest income                                       19                 836                   166               2,086
  Interest expense                                    (291)             (4,000)               (7,791)            (23,350)
  Other income (expense)                                 -                   -                     -                 794
                                                -------------    ---------------    ------------------   -----------------
                                                      (272)             (3,164)               (7,625)            (20,470)
                                                -------------    ---------------    ------------------   -----------------
                                                -------------    ---------------    ------------------   -----------------

                                                -------------    ---------------    ------------------   -----------------
Net loss                                         $  (3,766)         $ (181,169)           $ (275,001)         $ (518,770)
                                                =============    ===============    ==================   =================

Basic and diluted loss per common share             $(0.00)             $(0.01)               $(0.01)             $(0.05)
                                                =============    ===============    ==================   =================

Weighted average shares outstanding             19,519,950           6,350,810            19,519,950          11,418,847
                                                =============    ===============    ==================   =================
</TABLE>


              See accompanying notes to interim condensed financial
                                  statements.

<PAGE>
                            TWISTEE TREAT CORPORATION
                        CONDENSED STATEMENT OF CASH FLOWS
                                   (Unaudited)
<TABLE>

                                                                Nine months ended August 31,
                                                            -------------------------------------
                                                                  2001                2000
                                                            -------------------------------------
<S>                                                         <C>                  <C>

Cash flows from operating activities:
  Net loss                                                    $(275,001)          $(518,770)
    Adjustments to reconcile net income to net cash
      provided by (used in) operating activities:
    Depreciation and amortization                                 13,073              59,773
    Stock issued to consultants                                    9,315              12,250
  Changes in operating assets and liabilities
    Accounts receivable                                                -             (6,000)
    Notes and other receivable                                     7,500                   -
    Inventory                                                    (2,572)           (118,167)
    Accounts payable and accrued expenses                         61,225            (34,893)
                                                            --------------   -----------------
        Net cash provided by (used in) operating activities    (186,460)           (605,807)
                                                            --------------   -----------------

Cash flows from investing activities:
                                                            --------------   -----------------
  Purchase of equipment                                                -            (73,927)
                                                            --------------   -----------------

Cash flows from financing activities:
  Increase (decrease) on notes payable                            83,895           (205,187)
  Proceeds from sale of common stock                             105,013             800,000
                                                            --------------   -----------------
        Net cash provided by financing activities                188,908             594,813
                                                            --------------   -----------------

Net increase (decrease) in cash and cash equivalents               2,448            (84,921)
Cash and cash equivalents at beginning of period                       -              84,921
                                                            --------------   -----------------
Cash and cash equivalents at end of period                      $  2,448             $76,515
                                                            ==============   =================

Cash paid for:
  Interest                                                      $      -            $ 11,350

</TABLE>


              See accompanying notes to interim condensed financial
                                  statements.

<PAGE>

                            TWISTEE TREAT CORPORATION
                 NOTES TO INTERIM CONDENSED FINANCIAL STATEMENTS
                                 August 31, 2001


Note 1:Presentation

The condensed  balance  sheet of the Company as of August 31, 2001,  the related
condensed  statements of  operations  for the three and nine months ended August
31, 2001 and 2000 and the  statements  of cash flows for the nine  months  ended
August 31, 2001 and 2000 included in the  condensed  financial  statements  have
been prepared by the Company  without audit.  In the opinion of management,  the
accompanying condensed financial statements include all adjustments  (consisting
of normal,  recurring  adjustments)  necessary to summarize fairly the Company's
financial position and results of operations.  The results of operations for the
nine months ended August 31, 2001 are not necessarily  indicative of the results
of operations  for the full year or any other interim  period.  The  information
included in this Form 10-QSB  should be read in  conjunction  with  Management's
Discussion and Analysis and Financial  Statements and notes thereto  included in
the Twistee Treat Corporation's November 30, 2000 Form 10-KSB.

<PAGE>

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS

This report contains  forward looking  statements  within the meaning of Section
27A of the  Securities Act of 1933, as amended and Section 21E of the Securities
Exchange Act of 1934,  as amended.  The  Company's  actual  results could differ
materially from those set forth on the forward looking statements as a result of
the risks set forth in the Company's  filings with the  Securities  and Exchange
Commission,  general economic conditions, and changes in the assumptions used in
making such forward looking statements.

GENERAL OVERVIEW

Twistee Treat Corporation ("we" or, the "Company"), was incorporated in Missouri
on April 27, 1995 and  re-domiciled  in  Delaware  in June 1997.  We operate and
franchise  soft-serve  ice cream  desserts and an  assortment of other foods and
beverages in our  proprietary  cone-shaped  buildings  and kiosks.  Incorporated
under the laws of Missouri in 1997,  the Company  re-domiciled  by merger into a
Delaware corporation in June of 1999 with the name Twistee Treat Corporation.

Twistee Treat offers specialty ice cream and food products through company owned
stores,  franchised  stores,  in-line  stores,  kiosk units,  mobile  concession
trailers and "Express Grills." We are designed to be a high profile,  soft-serve
ice cream retail merchant.

In  1998,  Stephen  Wells,  formerly  the  President  of the  Company's  largest
franchisee  (Twistee  Treat of the  Southeast,  Inc.),  became the President and
Chief Executive Officer of the Company. Mr. Wells continued the testing program,
begun in 1999, of the Company's "Express Grill" unit, a full-service  restaurant
loosely  based on the design of the Brazier  units  operating by "Dairy  Queen."
Management  still  believes that the "Express  Grill" unit will help the Company
expand its business,  offering a broader menu and inside seating  capability.  A
more detailed description of the Company's history may be found in the Company's
latest  annual  report  (10-KSB),  which  was filed on March  15,  2001,  and is
accessible on the Internet at: www.edgar-online.com.

RESULTS OF OPERATIONS

THREE MONTHS AND NINE MONTHS ENDED AUGUST 31, 2001  COMPARED TO THE THREE MONTHS
AND NINE MONTHS ENDED AUGUST 31, 2000

Net sales for the three months  ended August 31, 2001  decreased by $3,651 to $0
from $3,651 for the corresponding  period of the prior year due to the Company's
lack of  emphasis  on the sale of its  current  products.  The Company is in the
process of  re-determining  its product  line and has not focused on the sale of
franchises or its current line of ice cream products.  For the nine months ended
August 31, 2001  revenues  decreased  $96,255 or 92% to $8,690 from $104,945 for
the nine months ended August 31, 2000.

The Company  experienced  a decrease  in the cost of sales for the three  months
ended  August 31,  2001,  which was $0 as  compared to the cost of sales for the
same period ended August 31, 2000, which was $10,738.  Management attributes the
decrease in cost of sales for the three months  ended  August 31,  2001,  to the
reason  discussed above. For the nine months ended August 31, 2001 cost of sales
decreased  $33,369 to $9,532 from  $42,901 for the nine months  ended August 31,
2000.

Operating  expenses  for the three  months  ended  August 31, 2001  decreased by
$167,424  or 98% to $3,494 from  $170,918  for the  corresponding  period of the
prior year. The decrease is attributable to the Company  significantly  reducing
operations.  For the nine month period ending August 31, 2001 operating expenses
decreased $293,810 or 52% to $266,534 from $560,344 for the corresponding period
of the prior year.  The decrease is  attributable  to a decrease in  operations,
professional fees and other general expenses.

<PAGE>

Net loss for the three months  ended August 31, 2001  decreased by $177,403 to a
loss of $3,766 from a loss of $181,169 for the corresponding period of the prior
year.  For the three  months  ended August 31, 2001 and 2000 the Company did not
record a tax benefit.  For the nine months  ended August 31, 2001,  the net loss
decreased  $243,769  to a loss of $275,001  from a net loss of $518,770  for the
corresponding  period of the  previous  year.  The  Company did not record a tax
benefit for the nine months ended August 31, 2001 and 2000.

Liquidity and Capital Resources

At August 31, 2001 the Company had negative  working  capital of $509,779.  This
compares with working capital of $21,428 including a cash overdraft of $(19,107)
for the corresponding period of the prior year.

For the nine months ended August 31, 2001 cash used in  operations  decreased to
$186,460 from cash used in operations of $605,807 for the  corresponding  period
of the prior  year,  principally  due to the  decreased  net loss,  decrease  in
depreciation and amortization and the reduction in purchasing inventory.

For the nine months  ended  August 31, 2001 there was no cash used in  investing
activities compared to $73,927 for the corresponding period of the prior year as
the Company reduced its operations and correspondingly its purchases of property
and equipment.

Net cash provided by financing  activities  decreased to $188,908 from $594,813.
The Company  received  $105,000  from the sale of its common  stock for the nine
months ended August 31, 2001. The Company received $800,000 from the sale of its
common stock for the nine months ended August 31, 2000. The Company used part of
those proceeds to pay down notes payable.

The Company has no credit line or other bank debt,  and has  generated  its cash
for operations  from  internally  generated  revenues and the sale of its common
stock. At August 31, 2001, the Company had a stockholders' deficit of $65,258, a
decrease of approximately 168% from the $95,417 of stockholders' equity existing
at November 30, 2000.

As reflected in the  accompanying  financial  statements and at August 31, 2001,
the  Company  has a working  capital  deficit  of  $509,779  and a net loss from
operations of $267,376 for the nine months ended August 31, 2001.  The Company's
operations are not sufficient to finance its growth.  The ability of the Company
to continue as a going concern is dependent upon its ability to raise additional
capital  and  implement  its  business  plan.  The Company  anticipates  issuing
additional  debt  and  equity  securities  and  reducing   operating   overhead.
Management   believes  that  actions  presently  taken  to  improve  its  future
operations and obtain additional funding provide the opportunity for the Company
to continue as a going concern.

Factors That May Affect Future Results

Dependence on  Independent  Franchisees  and Licensors:  The Company  receives a
significant amount of its total revenues from the sale of franchise, license and
regional development rights to independent persons who desire to operate Twistee
Treat franchises in the United States and in Canada.  The ability of the Company
to  continue  to  generate  revenue  from  these  activities,  and to  grow  its
franchising  and  licensing  business  in the  future,  is  dependent  upon  the
willingness of independent  persons to become  franchisees  and licensees of the
Company.  The decision  whether or not to become a franchisee or licensee of the
Company can be effected by a number of  variables,  many of which are outside of
the  Company's   control.   Some  of  these  variables  include  general  market
conditions,  regulatory burdens, the cost of raw supplies and materials, and the
receptiveness  of the general  public to the Company's  particular  products and
proprietary  buildings and retail unit. If the Company is unable successfully to
market  and  sell  its  franchise  and  license  rights  to  persons  who  would
independently  own and  operate  Twistee  Treat  franchises,  the ability of the
Company to continue  will be severely  impacted.  While the Company does own and
operate certain retail sales outlets of its own, the majority of its business is
accounted for through the sale of franchise,  regional  development  and license
rights to independent third parties.

<PAGE>

Competition:  The frozen desert market is highly  competitive,  and distinctions
between  categories of frozen deserts  (particularly with respect to the premium
or quality  nature of various  frozen  desert  products)  are becoming much less
marked than in the past. The success of the Company  depends upon its ability to
continue  to  create  and  market  innovative  products,  flavors,  distribution
channels and retail  units  through  which it can sell its products  directly or
through the  independent  franchisees  and licensees  who operate  Twistee Treat
locations.  If the Company is unable to compete  effectively  against  other ice
cream and frozen desert  manufacturers,  as well as other food  specialty  shops
which compete for space at malls and other venues, it will be unable to continue
marketing its  franchises and license  rights,  or to maintain its own corporate
locations,  for the sale of Twistee  Treat  products.  The inability to sell its
products  effectively  would have a materially  adverse effect upon the business
and operations of the Company.

Dairy commodity costs are volatile: It is possible that at some future date both
gross  margins  and  earnings  may  not  be  adequately   protected  by  pricing
adjustments,  cost control programs and  productivity  gains. To the extent that
the  Company  is unable to  effectively  predict,  and take  actions  to protect
against,  significant  increases  in the raw  materials  it uses to produce  its
frozen desert products, it could have a materially adverse impact on its ability
to  sell  such  products  to its  franchisees  and  licensees,  or to  recognize
sufficient margins from sales to make the business economically viable.

Dependence Upon External  Financing:  The Company has been building its business
through  revenues  generated from  operations,  supplemented  by the sale of its
capital common stock.  The ability of the Company to continue to grow and expand
its business is highly  dependent upon the ability of the Company to continue to
raise external financing, from the sale of equity and/or the incurrence of debt.
If the Company  were unable to obtain debt and/or  equity  financing  upon terms
that were  sufficiently  favorable  to the  Company,  or at all, it would have a
materially  adverse impact upon the ability of the Company to continue to expand
its  business  and  operations,  or  to  implement  its  business  plan  as  now
contemplated by the Company.

Reliance on Key Management:  The success of the Company is highly dependent upon
the continued services of Stephen Wells, its President and CEO, who has been the
primary  person  responsible  for  building  the  Company's  renewed  franchise,
regional  development  and  licensing  business.  If Mr. Wells were to leave the
Company,  it could  have a  materially  adverse  effect  upon the  business  and
operations of the Company.

PART II - OTHER INFORMATION

ITEM 1: Legal Proceedings

We are not  involved  in any  material  pending  legal  proceedings,  other than
routine  litigation  incidental to our  business,  to which we are a party or of
which any of our property is subject.

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

         a)  Exhibits
         None

         b) Reports on Form 8-K

         (i) Report on Form 8-K dated July 11, 2001,  announcing the appointment
             of Malone & Bailey, PLLC as the Company's  independent  accountants
             for the year ending November 30, 2001.

<PAGE>

                                   SIGNATURES

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


                                                 TWISTEE TREAT CORPORATION

Date: October 15, 2001                      By:/s/ Stephen Wells
                                               ---------------------------------
                                                  Stephen Wells
                                                  President