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|United States



SECURITIES
AND EXCHANGE COMMISSION



Washington,
DC 20549



FORM 10-QSB



Quarterly
Report Pursuant to Section 13 or 15(d)



of the
Securities Exchange Act of 1934
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|For Quarter Ended November 30, 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. EmployerIdentification 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 November 30, 2000.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|INOTEK
Technologies Corp.



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

|                                                                      | PageNo.
|--------------------------------------------------------------------- | -------
|Part I. Financial Information                                         |        
|Item 1. Financial Statements:                                         |        
|Balance Sheets as of November 30, 2000 (unaudited) and May 31, 2000   |        
|Statements of Operations for the Three Months Ended November 30, 2000 |        
|and November 30, 1999 (unaudited)                                     |        
|Statements of Operations for the Six Months Ended November 30, 2000   |        
|and November 30, 1999 (unaudited)                                     |        
|Statements of Cash Flows for the Six Months Ended November 30, 2000   |        
|and November 30, 1999 (unaudited)                                     |        
|Notes to Financial Statements                                         |        
|Item 2. Managements Discussion and Analysis of Financial             |        
|Condition and Results of Operations                                   |        
|Part II. Other Information                                            |        
|Item 1. Legal Proceedings                                             |        
|Item 4. Submission of Matters to a Vote of Security Holders           |        
|Item 6. Exhibits and Reports on Form 8-K                              |        
|Signatures                                                            |        
|Index to Exhibits                                                     |        
|Exhibit (20)-Report Furnished to Security Holders                     |        

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|INOTEK Technologies
Corp.



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

|                                                                | November 302000(unaudited) | May 312000  
|--------------------------------------------------------------- | -------------------------- | ------------
|                                                               
|ASSETS                                                          |                            |             
|Current assets:                                                 |                           
|Cash and cash equivalents                                       |                            | $    485,469
|Trade receivables, net of allowance for doubtful accounts       |                           
|of $116,341 at November 30 and $111,837 at May 31               |                            | 2,209,122   
|Inventories                                                     |                            | 1,237,450   
|Deferred taxes                                                  |                            | 75,241      
|Income tax receivable                                           |                            | 118,771     
|Prepaid expenses and other assets                               |                            | 156,479     
|                                                               
|Total current assets                                            |                            | 4,282,532   
|Property and equipment, net                                     |                            | 805,657     
|Goodwill, net of accumulated amortization of $749,114 at        |                           
|November 30 and $716,157 at May 31                              |                            | 1,892,839   
|Other assets                                                    |                            | 46,343      
|                                                               
|Total assets                                                    |                            | $ 7,027,371 
|                                                               
|LIABILITIES AND SHAREHOLDERS EQUITY                            |                           
|Current liabilities:                                            |                           
|Accounts payable                                                |                            | $ 1,212,197 
|Accrued expenses                                                |                            | 281,522     
|                                                               
|Total current liabilities                                       |                            | 1,493,719   
|Deferred tax liability                                          |                            | 25,704      
|Shareholders equity:                                           |                           
|Common shares, $.01 par value:                                  |                           
|Authorized shares, 10,000,000                                   |                           
|Issued and Outstanding shares                                   |                           
|4,854,088 at November 30 and  4,604,088 May 31                  |                            | 48,541      
|Additional paid-in-capital                                      |                            | 3,434,547   
|Retained earnings                                               |                            | 2,064,240   
|                                                               
|Total shareholders equity                                      |                            | 5,547,328   
|Less:  Common stock in treasury at cost, 100,000 shares in 1999 |                            | (39,380     
|                                                               
|Total Shareholders equity                                      |                            | $ 5,507,948 
|                                                               
|Total Liabilities and Shareholders Equity                      |                            | $ 7,027,371 
|                                                               

|See accompanying notes1
|-----------------------

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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 notes2
|-----------------------

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|INOTEK
Technologies Corp.




Statements
of Operation



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

|                                       | Six 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 notes3
|-----------------------

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|INOTEK
Technologies Corp.



Statements
of Cash Flows


(unaudited)
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|                                                        | Six Months EndedNovember 30
|------------------------------------------------------- | ---------------------------
|
|                                                       
|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 receivable                                   |                            
|Increase in other assets                                |                            
|                                                       
|Net cash provided by (used in) operating activities     |                            
|Investing Activities                                    |                            
|Purchase of property and equipment                      |                            
|Purchase of other assets                                |                            
|                                                       
|Net cash used in investing activities                   |                            
|Financing Activities                                    |                            
|Exercise of warrants                                    |                            
|                                                       
|Net cash used in 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                                                |                            

|See accompanying notes4
|-----------------------

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|INOTEK Technologies
Corp.Notes to Financial StatementsSix Months Ended November 30, 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 applicable SEC Rules and Regulations. 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 $500,000. 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.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5
|-

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|Item 2.


Managements
Discussion and Analysis of Financial Condition and Results of Operations


Results of Operations


Six Months ended
November 30, 2000 Compared to Six Months ended November 30, 1999


The Companys total sales decreased
3.3% or $312,753 to $9,173,415 for the six months ended November 30, 2000 from $9,486,168
for the same period of the prior year.


The oil and gas industry is
beginning to show signs of a turnaround as the price if oil 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
six months of fiscal year 2001 decreased 3.3% or $47,129 compared with the same period of
the previous year. General and administrative costs increased 4.4% or $50,926 during the
six months ending November 30, 2000 as compared with the same period of fiscal year 2000.



Financial Condition,
Liquidity and Capital Resources


Cash and cash equivalents were
$485,469 and $632,970 at November 30, 2000 and May 31, 2000, respectively. At November
30, 2000 the maximum available borrowings under the revolving credit facility amounted to
$500,000. The Companys current assets exceeded its current liabilities at November 30,
2000 and May 31, 2000 by $2,788,813 and $2,948,024, respectively.


The Companys funding requirements
during the quarter were met through cash on hand and exercise of warrants by a major
shareholder of the Company. On September 23, 1999, the Company secured a new agreement
with Bank One, Texas, N.A. for a one-year revolving credit facility of up to $500,000.
The credit line provides for borrowings based on the value of the Companys receivables,
at the banks prime rate plus one per cent and is secured by receivables and inventory.
The Company has no material commitment for capital expenditures as of November 30, 2000.
6
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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) |  | Exhibits:
|--- |  | ---------

| | 1.
Exhibit (20)-Report furnished to security holders.
| | -----------------------------------------------------

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

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

|7
|-

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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:  January 15, 2001 |  | /s/ Neal E. Young
(Officer)Neal  E. YoungChairman of the board
|----------------------- |  | ----------------------------------------------------------------------------

|Date:  January 15, 2001 |  | /s/ Dennis W. Stone 
(Officer)Dennis W. StoneChief Executive Officer
|----------------------- |  | ----------------------------------------------------------------------------------

|8
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