<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549



                                   FORM 10-QSB

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




For Quarter Ended      June 30, 2001     Commission file number       2-29987
                  ----------------------                        ----------------



                          UPWARD TECHNOLOGY CORPORATION
--------------------------------------------------------------------------------



             NEW YORK                                          11-1714403
--------------------------------------------------------------------------------
  (State or other jurisdiction of                           (I.R.S. Employer
   incorporation or organization)                          Identification No.)


  301 CITY AVENUE                         BALA CYNWYD, PA            19004
--------------------------------------------------------------------------------
(Address of principal executive offices)                           (Zip Code)



Registrant's telephone number, including area code          610-667-8225
                                                   -----------------------------




--------------------------------------------------------------------------------
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 and (2) has been subject to such filing requirements for
the past 90 days.


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



Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the close of the period covered by this report.


Class: COMMON, PAR VALUE $.02 PER SHARE
       --------------------------------
OUTSTANDING at June 30, 2001   8,100,000


<PAGE>



                          UPWARD TECHNOLOGY CORPORATION

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                                  JUNE 30, 2001
--------------------------------------------------------------------------------








                                      INDEX


Part I - Financial Information (unaudited):
              Condensed balance sheet as of
                 June 30, 2001 and December 31,2000                          2

              Condensed statement of operations
                 for the three-month and six-month periods ended
                 June 30, 2001 and 2000                                      3

              Condensed statement of cash flows
                 for the six-month periods ended
                 June 30, 2001 and 2000                                      4

              Notes to condensed financial statements                        5

              Report of independent accountants                              6

              Management's discussion and analysis of the
                 financial condition and results of operations               7


Part II - Other Information

              Item 1.  Legal Proceedings                                     8
              Item 2.  Changes in Securities                                 8
              Item 3.  Defaults Upon Senior Securities                       8
              Item 4.  Submission of Matters to a Vote of Security Holders   8
              Item 5.  Other Information                                     8
              Item 6.  Exhibits and Reports on Form 8-K                      8

Signature                                                                    9



 1

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                          UPWARD TECHNOLOGY CORPORATION

                             CONDENSED BALANCE SHEET
                                   (unaudited)
-------------------------------------------------------------------------------




<TABLE>
<CAPTION>



                                                              JUNE 30,    DECEMBER 31,
                                                                2001         2000
                                                             ----------   ----------

                                     ASSETS


<S>                                                          <C>          <C>
Cash and cash equivalents                                    $      185   $      191
Due from affiliate                                              194,775      189,210
                                                             ----------   ----------
                                                             $  194,960   $  189,401
                                                             ==========   ==========




                      LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
  Accrued expenses                                           $    7,650   $      346
  Due to affiliate                                                8,751        5,930
                                                             ----------   ----------

                                                                 16,401        6,276
                                                             ----------   ----------

Shareholders' equity:
  Common stock, $.02 par value; 24,000,000 shares
     authorized, 8,100,000 shares issued
     and outstanding                                            162,000      162,000
  Additional paid-in capital                                  1,983,208    1,983,208
  Accumulated deficit                                        (1,966,649)  (1,962,083)
                                                             ----------   ----------

           Net shareholders' equity                             178,559      183,125
                                                             ----------   ----------

                                                             $  194,960   $  189,401
                                                             ==========   ==========





</TABLE>








See accompanying notes to condensed financial statements.

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<PAGE>



                          UPWARD TECHNOLOGY CORPORATION

                        CONDENSED STATEMENT OF OPERATIONS
                                   (unaudited)
--------------------------------------------------------------------------------













<TABLE>
<CAPTION>


                                                      THREE MONTHS ENDED            SIX MONTHS ENDED
                                                           JUNE 30,                     JUNE 30,
                                                     2001           2000           2001           2000
                                                 -----------    -----------    -----------    -----------

<S>                                              <C>            <C>            <C>            <C>
Revenue, interest income                         $     2,785    $     2,671    $     5,569    $     4,738



General and administrative expenses                    6,301          3,676         10,135          4,601
                                                 -----------    -----------    -----------    -----------



Net income (loss)                                ($    3,516)   ($    1,005)   ($    4,566)           137
                                                 ===========    ===========    ===========    ===========



Net income (loss) per share, basic and diluted   $      --      $      --             --             --
                                                 ===========    ===========    ===========    ===========



Weighted average number of outstanding
  shares for basic and diluted                     8,100,000      8,100,000      8,100,000      8,100,000
                                                 ===========    ===========    ===========    ===========


</TABLE>




See accompanying notes to condensed financial statements.

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<PAGE>



                          UPWARD TECHNOLOGY CORPORATION

                        CONDENSED STATEMENT OF CASH FLOWS
                                   (unaudited)
--------------------------------------------------------------------------------






<TABLE>
<CAPTION>




                                                                               SIX MONTHS ENDED
                                                                                   JUNE 30,
                                                                           2001              2000
                                                                         --------          --------


                           INCREASE (DECREASE) IN CASH

Cash flows from operating activities:
<S>                                                                     <C>                <C>
  Net income (loss)                                                     ($  4,566)         $    137
  Accrued interest income                                               (   5,565)             --
  Adjustments to reconcile net income (loss) to net
       cash provided by (used in) operating activities:
     Increase in due to affiliate                                           2,821              --
     Increase (decrease) in accrued expenses                                7,304             1,251
                                                                         --------          --------

           Net cash provided by (used in) operating activities          (       6)            1,388


Cash and cash equivalents at beginning of period                              191           200,938
                                                                         --------          --------


Cash and cash equivalents at end of period                               $    185          $202,326
                                                                         ========          ========





</TABLE>






See accompanying notes to condensed financial statements.

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<PAGE>



                          UPWARD TECHNOLOGY CORPORATION

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (unaudited)
--------------------------------------------------------------------------------







1.       In the opinion of management, the accompanying unaudited condensed
         financial statements contain all adjustments necessary to present
         fairly the financial position as of June 30, 2001 and the results of
         operations for the three-month and six-month periods ended June 30,
         2001 and 2000. The results of operations for the six-month periods
         ended June 30, 2001 are not necessarily indicative of the results to be
         expected for the full year.

2.       Margolis & Company P.C., the Company's auditors, has performed a
         limited review of the financial information included herein. Their
         report on such review accompanies this filing.



 5

<PAGE>












                        REPORT OF INDEPENDENT ACCOUNTANTS



To the Board of Directors
Upward Technology, Inc.
Bala Cynwyd, PA


We have reviewed the accompanying condensed balance sheet of Upward Technology,
Inc. as of June 30, 2001 and the related condensed statements of operations for
the three-month and six- month periods ended June 30, 2001 and 2000, and cash
flows for the six-month periods ended June 30, 2001 and 2000. These financial
statements are the responsibility of the Company's management.

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

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

We have previously audited, in accordance with generally accepted auditing
standards, the balance sheet as of December 31, 2000 and the related statements
of operations, shareholders' equity, and cash flows for the year then ended (not
presented herein); and in our report dated March 12, 2001, we expressed an
unqualified opinion on those financial statements. In our opinion, the
information set forth in the accompanying condensed balance sheet as of December
31, 2000 is fairly stated, in all material respects, in relation to the balance
sheet from which it has been derived.




                                         Certified Public Accountants


Bala Cynwyd, Pennsylvania
August 13, 2001

 6

<PAGE>



                          UPWARD TECHNOLOGY CORPORATION

         MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                                   (unaudited)
--------------------------------------------------------------------------------





General

In May, 1989, the Company suspended all operations except for necessary
administrative matters and ceased to be an operating company. As such, for the
three months and six-months ended June 30, 2001 and 2000, the Company had no
revenues from operations. Given the virtual suspension of the Company's
operations, except for necessary administrative matters, the Company's officers
have waived further compensation.


Results of Operations

During the six months ended June 30, 2001, the Company earned interest of $5,569
as compared to $4,738 of interest earned in the six months ended June 30, 2000,
an increase of $831. During the six months ended June 30, 2001, the Company
incurred general and administrative expenses of $10,135, an increase of $5,534
as compared with the six months ended June 30, 2000 expenses of $4,601.


Liquidity and Capital Resources

During the six months ended June 30, 2001, the Company satisfied its working
capital needs from cash on hand at the beginning of the year, cash generated
from interest income during the period and additional funding of $2,821 from
affiliate. As of June 30, 2001, the Company had working capital of $178,559.
This working capital and funding from the affiliate is expected to provide the
Company with sufficient capital while it seeks a merger, acquisition or other
arrangement by and between the Company and a viable operating entity, although
there is no assurance that this will occur.








 7

<PAGE>



                          UPWARD TECHNOLOGY CORPORATION









Part II - Other Information

         Item 1.      Legal Proceedings
                      None

         Item 2.      Changes in Securities
                      None

         Item 3.      Defaults Upon Senior Securities
                      None

         Item 4.      Submission of Matters to a Vote of Security Holders
                      None

         Item 5.      Other Information
                      None

         Item 6.      Exhibits and Reports on Form 8-K
                      None




 8

<PAGE>



                          UPWARD TECHNOLOGY CORPORATION

                                    SIGNATURE
--------------------------------------------------------------------------------












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


                                   UPWARD TECHNOLOGY
                                     CORPORATION



                                   /s/Albert M. Zlotnick
                                   -----------------------------------------
                                   Albert M. Zlotnick, President and
                                     Chief Executive Officer



Date: August 13, 2001


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