|United States
SECURITIES AND EXCHANGE COMMISSIONWashington, DC 20549


FORM 10-QSB


Quarterly Report
Pursuant to Section 13 or 15(d)of the Securities Exchange Act of 1934
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|For Quarter Ended August 31, 2000 | Commission FileNumber 0-16101
|--------------------------------- | -----------------------------

|INOTEK Technologies
Corp.(Exact name of registrant as specified in its charter)
|-------------------------------------------------------------------------------

|Delaware(State or other jurisdiction ofincorporation or organization) | 75-1986151
(I.R.S. Employer
Identification No.)
|--------------------------------------------------------------------- | -----------------------------------------------

|11212 Indian
Trail, Dallas, Texas 
(Address of principal executive offices) | 75229(Zip Code)
|--------------------------------------------------------------------------- | ---------------

|Registrants
telephone number including area code, 972-243-7000.


Not Applicable(Former
name, former address and former fiscal year, if changed since last report)


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 ___


4,854,088 shares of common stock,
$.01 par value (the issuers only class of common stock), were outstanding as of
August 31, 2000.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|INOTEK Technologies
Corp.



INDEX
|----------------------------------

|                                                                    | PageNo. |  
|------------------------------------------------------------------- | ------- | -
|Part I.  Financial information                                      |         |  
|                                                                    |        
|Item 1.  Financial Statements:                                      |        
|                                                                    |        
|Balance Sheets as of August 31, 2000 (unaudited) and May 31, 2000   |         | 1
|                                                                    |        
|Statements of Operation for the Three Months Ended August 31, 2000  |        
|and August 31, 1999  (unaudited)                                    |         | 2
|                                                                    |        
|Statements of Cash Flows for the Three Months Ended August 31, 2000 |        
|and August 31, 1999 (unaudited)                                     |         | 3
|                                                                    |        
|Notes to Financial Statements                                       |         | 4
|                                                                    |        
|Item 2.  Managements Discussion and Analysis of Financial          |        
|                                                                    |        
|Condition and Results of Operations                                 |         | 5
|                                                                    |        
|Part II.   Other Information                                        |        
|                                                                    |        
|Item 1.  Legal Proceedings                                          |         | 6
|                                                                    |        
|Item 4.  Submission of Matters to a Vote of Security Holders        |         | 6
|                                                                    |        
|Item 6.  Exhibits and Reports on Form 8-K                           |         | 6
|                                                                    |        
|Signatures                                                          |         | 7

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|INOTEK Technologies
Corp.


Balance Sheets
|------------------------------------------

|                                                                | August 312000(unaudited) | May 312000
|--------------------------------------------------------------- | ------------------------ | ----------
|                                                               
|ASSETS                                                          |                          |           
|Current assets:                                                 |                         
|Cash and cash equivalents                                       |                          | $363,628  
|Trade receivables, net of allowance for doubtful accounts       |                         
|of $117,952 at August 31 and $111,837 at May 31                 |                          | 2,467,412 
|Inventories                                                     |                          | 1,185,001 
|Deferred taxes                                                  |                          | 80,789    
|Income tax receivable                                           |                          | 86,628    
|Prepaid expenses and other assets                               |                          | 171,948   
|                                                               
|Total current assets                                            |                          | 4,355,406 
|Property and equipment, net                                     |                          | 786,476   
|Goodwill, net of accumulated amortization of  $732,636 at       |                         
|August 31 and $716,157 at May 31                                |                          | 1,909,316 
|Other assets                                                    |                          | 131,808   
|                                                               
|Total assets                                                    |                          | $7,183,006
|                                                               
|                                                               
|LIABILITIES AND SHAREHOLDERS EQUITY                            |                         
|Current liabilities:                                            |                         
|Accounts payable                                                |                          | $1,147,326
|Accrued expenses                                                |                          | 266,601   
|                                                               
|Total current liabilities                                       |                          | 1,413,927 
|Deferred Tax Liability                                          |                          | 30,230    
|Shareholders equity:                                           |                         
|Common shares, $.01 par value:                                  |                         
|Authorized shares, 10,000,000                                   |                         
|Issued and Outstanding shares                                   |                         
|4,854,088 at August 31 and 4,604,088 at May 31                  |                          | 48,541    
|Additional paid-in-capital                                      |                          | 3,434,547 
|Retained earnings                                               |                          | 2,295,141 
|                                                               
|Total shareholders equity                                      |                          | 5,778,229 
|Less:  Common stock in treasury at cost, 100,000 shares in 1999 |                          | (39,380   
|                                                               
|Total  Shareholders equity                                     |                          | 5,738,849 
|                                                               
|Total liabilities and shareholders equity                      |                          | $7,183,006
|                                                               

|See accompanying notes 1
|------------------------

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|INOTEK Technologies
Corp.


Statements of
Operations


(unaudited)
|------------------------------------------------------------------

|                                       | Three Months Ended
|-------------------------------------- | ------------------
|
|                                      
|Net sales                              |                   
|                                      
|Cost of goods sold                     |                   
|                                      
|Gross margin                           |                   
|                                      
|Operating expenses:                    |                   
|Sales and marketing                    |                   
|General and administrative             |                   
|                                      
|                                       |                   
|                                      
|Operating loss                         |                   
|Interest  income                       |                   
|                                      
|Loss before income taxes               |                   
|Income tax benefit                     |                   
|                                      
|Net loss                               |                   
|                                      
|Net loss per share  basic and diluted |                   
|                                      
|Weighted average shares outstanding    |                   
|                                      

|See accompanying notes 2
|------------------------

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|INOTEK Technologies
Corp.


Statements of Cash
Flows


(unaudited)
|------------------------------------------------------------------

|                                                        | Three Months Ended August 31
|------------------------------------------------------- | ----------------------------
|
|                                                       
|Operating Activities                                    |                             
|Net loss                                                |                             
|Adjustments to reconcile net loss                       |                             
|to net cash provided by (used in) operating activities: |                             
|Depreciation and amortization                           |                             
|Deferred taxes                                          |                             
|Provision for losses on accounts receivable             |                             
|Net changes in operating assets and liabilities:        |                             
|Accounts receivable                                     |                             
|Inventories                                             |                             
|Prepaid expenses and other assets                       |                             
|Accounts payable                                        |                             
|Accrued expenses                                        |                             
|Income Tax Payable                                      |                             
|                                                       
|Net cash provided by (used in) operating activities     |                             
|                                                        |                             
|Investing Activities                                    |                             
|Purchase of property and equipment                      |                             
|Increase in other assets                                |                             
|                                                       
|Net cash used in investing activities                   |                             
|                                                        |                             
|Financing Activities                                    |                             
|Exercise of warrants                                    |                             
|                                                       
|Net cash provided by financing activities               |                             
|                                                       
|Change in cash and cash equivalents                     |                             
|Cash and cash equivalents, beginning of period          |                             
|                                                       
|Cash and cash equivalents, end of period                |                             
|                                                       
|                                                        |                             
|Supplemental Disclosures of Cash Flow Information:      |                             
|Cash received during the period for:                    |                             
|Interest                                                |                             

|3
|-

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|INOTEK Technologies
Corp.Notes to Financial StatementsThree Months Ended August 31, 2000(UNAUDITED)
|---------------------------------------------------------------------------------------------------

|1. |  | Basis
of Presentation
|-- |  | ---------------------

| | The
accompanying unaudited financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information and with the
instructions to Form 10-QSB and Rule 10-01 of Regulation S-X. 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 (which include only normal recurring adjustments) necessary for a fair
presentation of the results for the interim periods presented have been made. The results
of operations for such interim periods are not necessarily indicative of the results of
operations for a full year. The interim unaudited financial statements should be read in
conjunction with the financial statements and notes thereto included in the Companys
Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year
ended May 31, 2000.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. |  | Long-term
debt
|-- |  | --------------

| | On
September 15, 2000, the Company secured a new agreement with Bank One, Texas, N.A. for a
one-year revolving credit arrangement of up to .5 million. The credit arrangement
provides for borrowings based on the Companys trade receivables, at the banks prime
rate plus one percent and is collateralized by trade receivables and inventories.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4
|-

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|Item 2.   Managements
Discussion and Analysis of Financial Condition and Results of Operations


Results of Operations


First Quarter 2001
Compared to First Quarter 2000


The Companys total sales increased
12.4% to $4,819,624 for the first quarter ended August 31, 2000 from $4,288,119 for the
first quarter of the prior year, while gross margins increased 18.5% to $1,219,532 from
$1,029,386 for the same period.


The oil and gas industry is
beginning to show signs of a turnaround as the price of oil has stabilized at higher
levels. Improvement is most evident in the upstream process segment of this industry,
which is defined as drilling, exploration and pipeline. This segment is beginning to
increase its expenditures on our type of products. The downstream process segment, which
is defined as the petrochemical processing plants, while operating at full capacity, is
negatively affected in its profitability by the higher price of oil. Once oil stabilizes
in the mid $20s/barrel range, the downstream processing segment should begin to increase
its MRO (maintenance, repair and operation) spending and some plant expansion. As the
upstream and downstream business climate improves, so should that of their supply chain,
which is one of our primary customer categories.


Areas of concern and of which we
should be cautious are the impact of e-commerce, vendor consolidation, integrated
supplier contracts and margin pressure created by a low inflation economy. We are in the
process of developing our Internet strategy, expanding our product lines to compete in
the integrated supply market and reducing our exposure to vendor consolidation. As for
margin pressure, we are continually monitoring our costs and improving our productivity
in order to compete effectively.


Sales and marketing costs during the
first quarter of fiscal year 2000 remained the same when compared with the first quarter
of the previous year. General and administrative costs decreased 4.5% or $25,344 for the
first quarter ending August 31, 2000 when compared with the first quarter of fiscal year
2000.



Financial Condition,
Liquidity and Capital Resources


Cash and cash equivalents were
$363,628 and $632,970 at August 31, 2000 and May 31, 2000, respectively. The Companys
current assets exceeded its current liabilities at August 31, 2000 and May 31, 2000 by
$2,941,479 and $2,948,024 respectively.


The Companys funding requirements
during the quarter were met through cash on hand and the sale of common stock. On
September 15, 2000, the company secured a new credit arrangement with Bank One, Texas,
N.A. for a one-year revolving credit facility of up to .5 million. Their were no
outstanding borrowings under the Companys revolving credit agreement at August 31, 2000
or May 31,2000. The Company has no material commitment for capital expenditures as of
August 31, 2000.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5
|-

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|Part II - Other
Information




Item 1.  Legal Proceedings


None pending


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


None


Item 6.  Exhibits and
Reports on Form 8-K
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (a) | Reports
on 8-K:
| |  | --- | ---------------

| | No
reports on Form 8-K were filed in the quarter for which this report is filed.
| | --------------------------------------------------------------------------------

|6
|-

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|Signatures



Pursuant to the requirements of the
Securities and Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | INOTEK
Technologies Corp.(Registrant)
| | -------------------------------------

|Date:  August 15, 2000 | /s/ Neal E. Young 
                                                             (Officer)Neal E. YoungChairman of the board
|---------------------- | ---------------------------------------------------------------------------------------------------------------------------------------

|Date:  August 15, 2000 | /s/ Dennis W. Stone 
                                                             (Officer)Dennis W. StoneChief Executive Office
|---------------------- | --------------------------------------------------------------------------------------------------------------------------------------------

|7
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