<PAGE>

                     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 Quarterly Period Ended: December 31, 2000
                                              ---------------------
/ / TRANSITION REPORT UNDER SECTION TO 13 OR 15(d) OF THE EXCHANGE ACT

              For the transition period from _________ to _________

                         Commission File Number O-16034
                                                -------

                                 VIKONICS, INC.
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


            New York                                       13-2759466
----------------------------------          ------------------------------------
(State  or other jurisdiction
of incorporation or organization)           (I.R.S. Employer Identification No.)

                  370 North Street Teterboro, New Jersey 07608
                  --------------------------------------------
                    (Address of principal executive offices)

                                (201) - 641-8077
                           ---------------------------
                           (Issuer's telephone number)

                                      NONE
       --------------------------------------------------------------------
      (Former name, former address and former fiscal year, if changed since
                                  last report)


Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past12 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
                                                                      ---   ---


State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practical date: Number of shares outstanding at March
13, 2001: 2,933,431 shares of common stock, par value $ .02 per share.


Transitional Small Business Disclosure Format (Check one):  Yes    No X
                                                               ---   ---


<PAGE>
                                 VIKONICS, INC.

                                      INDEX


PART I   Financial Statements                                          Page No.
                                                                       --------
         Item 1 - Financial Statements (Unaudited)
                  Balance Sheets:
                     December 31 and March 31, 2000                        3-4

                  Statements of Operations
                    For Three Months Ended December 31, 2000 and 1999        5
                    For Nine Months Ended December 31, 2000 and 1999         6

                  Statements of Cash Flows
                    For Nine Months Ended December 31, 2000 and 1999         7

                  Notes to Financial Statements                            8-9


         Item 2 - Management's Discussion and Analysis or Plan of
                    Operation                                            10-11

PART II: Other Information                                                  12

Signatures                                                                  13


                                       2
<PAGE>
                                 VIKONICS, INC.

                                 BALANCE SHEETS

                                     ASSETS

                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                               December 31, 2000         March 31, 2000
                                                               -----------------         --------------
<S>                                                                  <C>                     <C>
CURRENT ASSETS:

      Cash                                                            $    3,092              $   20,680
      Accounts receivable (less allowance for doubtful
         accounts of $10,000)                                            183,138                 170,498
      Inventories (Note 2)                                                71,060                  87,657
      Prepaid expenses and other current assets                            5,643                  18,497
                                                                      ----------              ----------

         TOTAL CURRENT ASSETS                                            262,933                 297,332
                                                                      ----------              ----------
EQUIPMENT AND FIXTURES - AT COST:

      Machinery and equipment                                            402,735                 402,735
      Furniture and fixtures                                              67,437                  67,437
                                                                      ----------              ----------
                                                                         470,172                 470,172
      Less, accumulated depreciation and amortization                   (452,706)               (448,116)
                                                                      ----------              ----------

         EQUIPMENT AND FIXTURES - NET
                                                                          17,466                  22,056
                                                                      ----------              ----------
OTHER ASSETS
                                                                           1,200                   1,200
                                                                      ----------              ----------

                                                                      $  281,599              $  320,588
                                                                      ==========              ==========
</TABLE>

                       See notes to financial statements.


                                       3
<PAGE>

                                 VIKONICS, INC.

                                 BALANCE SHEETS

                     LIABILITIES AND SHAREHOLDERS' (DEFICIT)

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                           December 31, 2000          March 31, 2000
                                                                           -----------------          --------------
<S>                                                                               <C>                     <C>
CURRENT LIABILITIES:

      Notes and loans payable (Note 3)                                            $  717,728              $  717,728
      Accounts payable                                                               294,311                 253,869
      Accrued expenses and other current liabilities (Note 4)                      1,536,055               1,359,203
      Deferred service income                                                         78,625                  46,423
                                                                                  ----------              ----------

      TOTAL CURRENT LIABILITIES                                                    2,626,719               2,377,223
                                                                                  ----------              ----------
SHAREHOLDERS' (DEFICIT):

      Preferred stock - $1 par value:
      Authorized - 2,000,000 shares
      Issued and outstanding - none

      Common stock - $.02 par value:
      Authorized - 10,000,000 shares
      Issued and outstanding - 2,933,431                                              58,669                  58,669
      Paid-in capital                                                              5,641,094               5,641,094
      Accumulated (deficit)                                                       (8,044,883)             (7,756,398)
                                                                                  ----------              ----------

TOTAL SHAREHOLDERS' (DEFICIT)                                                     (2,345,120)             (2,056,635)
                                                                                  ----------              ----------

                                                                                  $  281,599              $  320,588
                                                                                  ==========              ==========

</TABLE>

                       See notes to financial statements.

                                       4




<PAGE>


                                 VIKONICS, INC.

                            STATEMENTS OF OPERATIONS

              FOR THE THREE MONTHS ENDED DECEMBER 31, 2000 AND 1999

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                  2000                     1999
                                                                                  ----                     ----

<S>                                                                           <C>                       <C>
SALES - NET                                                                   $    214,431              $   310,943

COST OF GOODS SOLD                                                                 136,584                  188,718
                                                                              ------------              -----------

GROSS PROFIT                                                                        77,847                  122,225
                                                                              ------------              -----------
COSTS AND EXPENSES:

      Engineering, research and development                                         50,001                   58,334
      Marketing and sales                                                           32,814                   33,299
      General and administrative                                                    65,301                   95,628
      Depreciation and amortization                                                  1,530                      153
      Interest expense                                                              10,524                   10,524
                                                                              ------------              -----------
      TOTAL COSTS AND EXPENSES                                                     160,170                  197,938
                                                                              ------------              -----------
NET (LOSS)                                                                    $    (82,323)            $    (75,713)
                                                                              ============             ============

(LOSS) PER SHARE  (Note 6) -
Basic and Diluted                                                             $       (.03)            $       (.03)
                                                                              ============             ============
</TABLE>


                       See notes to financial statements.

                                       5






<PAGE>


                                 VIKONICS, INC.

                            STATEMENTS OF OPERATIONS

              FOR THE NINE MONTHS ENDED DECEMBER 31, 2000 AND 1999
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                  2000                     1999
                                                                                  ----                     ----
<S>                                                                           <C>                       <C>
SALES - NET                                                                   $   678,383               $1,227,640

COST OF GOODS SOLD                                                                437,773                  715,711
                                                                              -----------               ----------

GROSS PROFIT                                                                      240,610                  511,929
                                                                              -----------               ----------
COSTS AND EXPENSES:

      Engineering, research and development                                       157,771                  174,681
      Marketing and sales                                                         107,031                  105,201
      General and administrative                                                  228,131                  257,106
      Depreciation and amortization                                                 4,590                      459
      Interest expense                                                             31,572                   34,870
                                                                              -----------               ----------
      TOTAL COSTS AND EXPENSES                                                    529,095                  572,317
                                                                              -----------               ----------
NET (LOSS)                                                                    $  (288,485)              $  (60,388)
                                                                              ===========               ==========

(LOSS) PER SHARE  (Note 6) -
Basic and Diluted                                                             $      (.10)              $     (.02)
                                                                              ===========               ==========
</TABLE>
                       See notes to financial statements.

                                       6

<PAGE>



                                 VIKONICS, INC.

                            STATEMENTS OF CASH FLOWS

                FOR NINE MONTHS ENDED DECEMBER 31, 2000 AND 1999

                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                             2000                      1999
                                                                             ----                      ----
<S>                                                                     <C>                       <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

Net (loss)                                                              $   (288,485)             $    (60,388)
Adjustments to reconcile net (loss) to net
cash (used for) provided by operating activities:
      Depreciation and amortization
                                                                               4,590                       459

Changes in assets and liabilities:
    Decrease (increase) in:
      Accounts receivable                                                    (12,640)                   37,235
      Inventories                                                             16,597                    29,723
      Prepaid expenses and other current assets                               12,854                     2,244

    Increase (decrease) in:
      Accounts payable                                                        40,442                   (20,354)
      Accrued expenses and other liabilities                                 176,852                    34,271
      Deferred service income                                                 32,202                    13,127
                                                                        ------------              ------------

Net cash (used for) provided by operating activities                         (17,588)                   36,317
                                                                        ------------              ------------
CASH FLOWS FROM INVESTING ACTIVITIES:

    Purchase of equipment and fixtures - net                                     ---                   (23,089)
                                                                        ------------              ------------
(DECREASE) INCREASE IN CASH                                                  (17,588)                   13,228

CASH  - MARCH 31                                                              20,680                    30,219
                                                                        ------------              ------------
CASH  - DECEMBER 31                                                     $      3,092              $     43,447
                                                                        ============              ============


</TABLE>

                       See notes to financial statements.

                                       7
<PAGE>


                                 VIKONICS, INC.

                          NOTES TO FINANCIAL STATEMENTS


Note 1. - Financial Statements

The financial statements include the accounts of the Company and Vikonics Canada
Inc., its wholly-owned subsidiary, an entity without any activity during the
periods presented.

In the opinion of the Company, the accompanying unaudited financial statements
contain all necessary adjustments which are all of a normal recurring nature for
the fair presentation of its financial position as of December 31, 2000, the
results of operations for the three and nine months ended December 31, 2000 and
1999, and changes of cash flows for the nine months ended December 31, 2000 and
1999.

The results of operations for the three and nine months ended December 31, 2000
are not necessarily indicative of the results to be expected for the full year.

Note 2. - Inventories

Inventories consisted of the following:
                                          December 31, 2000       March 31, 2000
                                          -----------------       --------------

Raw materials                               $   33,190               $   44,962
Work-in-process                                  8,726                   12,275
Finished goods                                  29,144                   30,420
                                            ----------               ----------

TOTAL                                       $   71,060               $   87,657
                                            ==========               ==========


Note 3. - Notes and Loans Payable; Legal Proceeding

Notes and loans payable consists of:

                                              December 31, 2000   March 31, 2000
                                              -----------------   --------------
Amounts due to private investors, directors,
 and legal counsel.                             $  717,728          $  717,728
                                                ----------          ----------


On June 30, 1993, the Company entered into an amended agreement with private
investors that provided the Company with a loan in the amount of $200,000
repayable in one year together with an interest rate of 9% per annum. In
addition, the amended agreement granted the investors two-year options to
purchase an aggregate of 400,000 shares of common stock at an exercise price of
$4.75 per share. In July 1993, one of the private investors assigned $20,000 of
the loan along with options to purchase 40,000 shares of common stock to one of
the Company's directors, who has since resigned from the board.

Additionally, two of the former directors provided the Company with loans
aggregating $120,000 during the months of August and September 1993 payable on
demand with an interest rate of 9% per annum.

                                       8
<PAGE>


On June 24, 1994, the Company entered into an agreement with the above private
investors, former directors, and the Company's retained legal counsel. Pursuant
to the agreement the due date for the investors and former directors loans and
fees payable $(250,000) to legal counsel were extended until the first to occur
of (i) June 30, 1996, (ii) a public financing by the Company, or (iii) a private
financing of the Company of not less than $2,500,000. As June 30, 1996 date has
been reached, such amounts are now due. While the Company does not have the
ability to pay the amounts due to private investors, former directors and legal
counsel, it has attempted to renegotiate the terms of payment of these
obligations.

On September 17, 1998 the private investors filed a lawsuit in the Superior
Court of New Jersey for the total principal amount of $200,000 together with
accrued interest of $103,000. On June 15, 1999 a Judgment by Default against the
Company was entered in the Superior Court of New Jersey, Bergen County.

The Company will seek a satisfactory resolution of this judgment. There can be
no assurance, however, that the Company will be able to resolve the judgment.
The failure to do so will cause the Company to cease as a going concern.

Additionally, at December 31, 2000, the Company had a remaining balance of
$147,728 that was lent to the Company by two then directors during the Company's
second fiscal quarter of 1995. Both loans are payable on demand with interest at
9% per annum.


Note 4. - Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


                                       December 31, 2000       March 31, 2000
                                       -----------------       --------------
Accrued warranty expense                  $     38,000          $      38,000
Accrued salaries, wages, and taxes             562,380                457,328
Accrued professional fees                       32,500                 40,000
Accrued officers' salaries                     171,228                171,228
Accrued interest                               652,450                593,878
Other                                           79,497                 58,769
                                          ------------           ------------
                                          $  1,536,055           $  1,359,203
                                          ============           ============

Note 5. - Income Taxes

At December 31, 2000 the Company had net operating loss carryforwards available
amounting to approximately $7.5 million which will expire between 2001 and 2013.
There is a remote possibility that net operating loss carryforwards of
approximately $500,000 may not be available. There are no significant
differences in the recognition of income and expenses for tax and financial
reporting purposes.

Note 6. - (Loss) Per Share

Basic and diluted per share data is based on the weighted average number of
common shares outstanding. Common stock equivalents would be anti-dilutive and,
therefore, were not included in the diluted per share computations.


<PAGE>



Item 2:

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OR
                                PLAN OF OPERATION


Results of Operations
---------------------

The Company's net sales for the three months ended December 31, 2000 decreased $
97,000 (31%) compared to the same period a year ago. For the nine months ended
December 31, 2000 net sales decreased $549,000 (45%), compared to the
corresponding period last year. The decrease is primarily due to sales of
approximately $335,000 for a security system upgrade at a domestic United States
Air Force Base and $144,000 for security hardware purchased by the Architect of
the Capitol without corresponding revenues earned from these customers during
the first nine months of the current fiscal year.

Gross profit as a percentage of net sales for the three months ended December
31, 2000 was 36% compared to 39% during the same period a year ago. For the nine
months ended December 31, 2000, the gross profit percentage was 35% compared to
42% during the same period a year ago. The decrease in gross margin for the
three and nine months ended December 31, 2000 is due to the underabsorption of
manufacturing overhead costs caused by the lower sales volume.

Engineering, research and development expenses for three months ended December
31, 2000 were $ 50,000, a decrease of 14% ($8,000). Engineering, research and
development expenses for the nine months ended December 31, 2000 were $ 158,000,
a decrease of 10% ($17,000). These reductions were due to outside programming
costs incurred in the prior year periods with no corresponding costs incurred
during the current year.

Marketing and sales expenses for the three and nine months ended December 31,
2000 were $ 33,000 and $107,000, respectively. These amounts are essentially the
same as the expense levels of the same periods in the preceding year.

General and administrative expenses for the three and nine months ended December
31, 2000 were $ 65,000 and $ 228,000, respectively, a decrease of 32% ($ 30,000)
and 11% ($ 29,000) versus the expenses incurred during the same periods a year
ago. The variation is due to reductions in insurance, administrative payroll
costs and travel costs.

The net (loss) for the three months ended December 31, 2000 was ($82,000)
compared to net (loss) of ($76,000) a year ago. The net (loss) for the nine
months ended December 31, 2000 was ($288,000) compared to net (loss) of
($60,000) a year ago, due to the factors regarding revenue and expenses
described above.

The future viability of the Company will depend upon the Company's success in
raising revenue levels, maintaining low cost levels and, if necessary, raising
additional financing. In addition, the future viability of the Company depends
on the outcome of the legal proceeding described under Liquidity and Capital
Resources.


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

The Company's continued existence is dependent upon its ability to obtain
contract awards which, in the aggregate, will provide significant revenues in
the immediate future. While there can be no assurance of favorable results, the
Company remains optimistic about obtaining these potential contract awards.

To date, there has been no adverse effect on the Company's ability to perform on
any of its contracts due to its limited working capital. The Company has also
been able to maintain a satisfactory relationship with the majority of its
suppliers and has been able to substitute for dissatisfied vendors, when
necessary. For any large contract that the Company might be awarded in the
future where working capital might hamper its ability to perform, the Company
would attempt to negotiate adequate terms and delivery with the customer and/or,
if necessary, obtain required financing. There can be no assurance, however,
that the Company would be successful in these efforts.


                                       10
<PAGE>


The working capital deficit on December 31, 2000 was ($2,364,000) compared to
($2,080,000) on March 31, 2000. The increase in the working capital deficit is
primarily due to the loss incurred for the nine months ended December 31, 2000.
At December 31, 2000 the Company had $3,000 in cash, compared to $21,000 in cash
at March 31, 2000.

Accounts receivable increased by $13,000 during the nine months ended December
31, 2000 from the March 31, 2000 level due to a large majority of the fiscal
2001 third quarter shipments occurring during the month of December, 2000.

Notes and loans payable of $718,000 at December 31, 2000 consists of amounts due
to private investors, former directors, and legal counsel.

Pursuant to the agreement the due date for the investors and former directors
loans and fees payable $(250,000) to legal counsel were extended until the first
to occur of (i) June 30, 1996, (ii) a public financing by the Company, or (iii)
a private financing of the Company of not less than $2,500,000. As June 30, 1996
date has been reached, such amounts are now due. While the Company does not have
the ability to pay the amounts due to private investors, former directors and
legal counsel, it has attempted to renegotiate the terms of payment of these
obligations.

On September 17, 1998 the private investors filed a lawsuit in the Superior
Court of New Jersey for the total principal amount of $200,000 together with
accrued interest of $103,000. On June 15, 1999 a Judgment by Default against the
Company was entered in the Superior Court of New Jersey, Bergen County.

The Company will seek a satisfactory resolution of this judgment. There can be
no assurance, however, that the Company will be able to resolve the judgment.
The failure to do so will cause the Company to cease as a going concern.

Accounts payable of $294,000 at December 31, 2000 are $40,000 greater than the
balance of $254,000 at March 31, 2000 due simply to the timing of certain vendor
payments. Accrued expenses and other current liabilities at December 31, 2000 of
$1,536,000 are $177,000 higher than the $1,359,000 at March 31, 2000. The
variance is primarily due to an increase in accrued payroll tax non- payment
penalties and interest for the nine months ended December 31, 2000.

In total, the net cash (used for) operating activities was $ (18,000) for the
nine months ended December 31, 2000, as compared to $36,000 provided by
operating activities for the nine months ended December 31, 1999.

The Company has no significant capital expenditures plans at this time.




                                       11
<PAGE>




                           Part II - Other Information


Item 6 - Exhibits and Reports on Form 8-K

         None













                                       12




<PAGE>



                                   Signatures
                                   ----------

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


                                                     Vikonics, Inc.
                                            --------------------------------
                                                      (Registrant)



March 13, 2001                                     /s/ John J. Strong
                                            --------------------------------
                                                     John J. Strong
                                                        President
                                                (duly authorized officer
                                            and principal financial officer)



                                       13