FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     of the Securities Exchange Act of 1934

For Quarter ended October 31, 1999
Commission file number 0-8006


                             COX TECHNOLOGIES, INC.
                            FKA: Energy Reserve, Inc.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


        ARIZONA                                                  86-0220617
------------------------------                               -------------------
(State or other jurisdiction of                                (IRS Employer
incorporation or organization)                               Identification No.)


               69 McAdenville Road, Belmont, North Carolina 28912
               --------------------------------------------------

       Registrant's telephone number, including area code (704) 825-8146

               Former name, former address and former fiscal year,
                          if changed since last report

Indicated  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 [ ]

                       APPLICABLE ONLY TO ISSUERS INVOLVED
                        IN BANKRUPTCY PROCEEDINGS DURING
                            THE PRECEDING FIVE YEARS:

Indicated  by check mark  whether the  registrant  has filed all  documents  and
reports  required  to by filed by  Sections  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by a court.  Yes [ ]  No [ ]

                       APPLICABLE ONLY TO CORPORATE USERS:

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

Class - Common Stock, without Par Value
23,280,922 Shares Outstanding at December 7, 1999
<PAGE>
                     COX TECHNOLOGIES, INC. AND SUBSIDIARIES
                                      INDEX

                                                                       Page
                                                                       ----

FACE SHEET                                                               1

INDEX                                                                    2

PART I. - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS                                             3

     Consolidated Balance Sheets at
       October 31, 1999 and July 31, 1999                                4

     Consolidated Statements of
       Operations and Accumulated Deficit
       Three Months Ended October 31, 1999 & 1998                        5
       Six Months Ended October 31, 1999 & 1998                          6

     Statement of Cash Flows

     Six Months Ended October 31, 1999 and 1998                          7

     Notes to Consolidated Financial Statements                        8-9

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS                         10-14

PART II. OTHER INFORMATION AND SIGNATURES                            15-16



                                        2
<PAGE>
                                                                       FINANCIAL
                                                                     INFORMATION

                     COX TECHNOLOGIES, INC. AND SUBSIDIARIES


PART I  - FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS

Cox Technologies,  Inc. and its subsidiaries,  Twin Chart,  Inc., its subsidiary
Transit  Services,  Inc.,  Vitsab,  AB,  Sweden,  Vitsab,  Inc.,  Energy Reserve
Holdings,  Inc.,  and Energy Reserve  Financial  Corporation  (collectively  the
Company),   engage  in  the  business  of  producing  and  distributing  transit
temperature  recording  instruments,  both  domestically  in United  States  and
internationally.  The  Company  also  engages  in  the  business  of  acquiring,
developing and selling oil properties and of producing and selling crude oil for
its own  account  in United  States.  As such the  Company  has not and does not
engage in petroleum refining or retail marketing.

The Consolidated  Financial Statements included herein have been prepared by the
Company,  without audit, pursuant to the rules and regulations of the Securities
and Exchange  Commission.  Certain information and footnote disclosures normally
included in financial  statements prepared in accordance with generally accepted
accounting  principles have been condensed or omitted pursuant to such rules and
regulations,  although the Company believes that the disclosures are adequate to
make the  information  presented  not  misleading.  It is  suggested  that these
condensed  financial  statements  be  read in  conjunction  with  the  financial
statements  and data notes thereto  included in the  Company's  annual report on
Form 10-K, for the year ended April 30, 1999.

In the opinion of the Company,  all  adjustments  have been  included  which are
necessary for the  preparation of the balance sheets of Cox  Technologies,  Inc.
and  consolidated  subsidiaries  at October 31, 1999 and April 30, 1999 and to a
fair  statement of the results of operations  for the three months ended October
31, 1999 and 1998 and for the six months ended October 31, 1999 and 1998.

                                        3
<PAGE>
COX TECHNOLOGIES, INC., AND SUBSIDIARIES
FORMERLY ENERGY RESERVE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
OCTOBER 31, 1999 AND APRIL 30, 1999

                                                  October 31,       April 30,
                                                     1999             1999
                                                 ------------     ------------
ASSETS
CURRENTS ASSETS:
  Cash and cash equivalents (Note A)             $  1,605,169     $  1,250,810
  Accounts receivable, less allowance for
   doubtful accounts of $29,527 at
   October 31, 1999 and April 30, 1999              1,749,890        1,599,079
  Inventory (Note B)                                1,348,053        1,542,663
  Investment in securities                             51,211
  Notes receivable-current portion                     17,882           30,477
  Prepaid expenses                                     62,703           65,860
                                                 ------------     ------------
        TOTAL CURRENT ASSETS                        4,783,677        4,540,100

  Property and equipment (net)                      7,428,783        7,109,762
  Investments in securities                           375,671          300,000
  Deposits                                             21,268           23,692
  Goodwill (Note A)                                   829,526          886,783
  Notes receivable - non-current portion               97.890           16,855
                                                 ------------     ------------

        TOTAL ASSESTS                            $ 13,536,815     $ 12,877,192
                                                 ============     ============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts payable and accrued expenses          $    465,833     $    582,542
  Income taxes payable (Note C)                         2,932           34,720
  Current portion of long-term debt (Note A)        1,809,234        1,651,949
                                                 ------------     ------------
        TOTAL CURRENT LIABILITIES                   2,277,999        2,269,211

  Long-term debt                                    1,150,977          581,374
  Minority Interest                                       -0-              669
                                                 ------------     ------------
                                                    3,428,976        2,851,254
                                                 ------------     ------------
COMMITMENTS AND CONTINGENCIES (Note D)

STOCKHOLDERS' EQUITY
  Common stock, no par value: authorized
   100,000,000 shares; issued and outstanding
   23,618,261, shares at October 31, 1999
   and at April 30, 1999                           20,306,099       20,306,098
  Common stock subscribed                              58,100           58,100
  Contributed Capital                                 420,982          420,982
  Treasury stock                                      (45,920)         (45,920)
  Accumulated deficit                             (10,577,388)     (10,667,609)
  Less - notes receivable for common stock:
     Subscribed                                       (54,034)         (45,713)
                                                 ------------     ------------
TOTAL STOCKHOLDERS' EQUITY                         10,107,839       10,025,938
                                                 ------------     ------------

TAL LIABILITIES AND STOCKHOLDERS' EQUITY         $ 13,536,815     $ 12,877,192
                                                 ============     ============

                        See notes to Financial Statements

                                        4
<PAGE>
                     COX TECHNOLOGIES, INC. AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT


                                                  Three Months Ended October 31,
                                                 ------------------------------
                                                     1999              1998
                                                 ------------      ------------
REVENUE
  Sales                                          $  2,342,379      $  2,248,525
                                                 ------------      ------------

COSTS AND EXPENSES
  Cost of sales                                     1,173,300         1,129,310
  General and administrative expenses                 686,247           585,226
  Sales expense                                       372,173           337,366
  Interest expense                                     44,855            35,796
  Depreciation and depletion                           28,487            50,230
                                                 ------------      ------------

  TOTAL EXPENSE                                     2,305,062         2,137,928
                                                 ------------      ------------

       INCOME FROM OPERATIONS                          37,317           110,597
                                                 ------------      ------------
OTHER INCOME (expense)
  Other income (expense)                               18,456           186,640
                                                 ------------      ------------
  Earnings before income taxes                         55,773           297,237

  Provisions for income taxes (note c)                  3,000            40,900
                                                 ------------      ------------

NET EARNINGS                                           52,773           256,337

ACCUMULATED DEFICIT, beginning of period          (10,630,161)      (10,425,450)
                                                 ------------      ------------
ACCUMULATED DEFICIT, end of period               ($10,577,388)     $(10,169,113)
                                                 ============      ============
EARNINGS PER SHARE:
  Net earnings (loss)                            $      0.002      $       0.01
                                                 ============      ============

                        See notes to Financial Statements

                                        5
<PAGE>
                     COX TECHNOLOGIES, INC. AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT


                                                   Six Months Ended October 31,
                                                 ------------------------------
                                                     1999             1998
                                                 ------------      ------------
REVENUE
  0Sales                                         $  4,672,146      $  4,621,388
                                                 ------------      ------------

COSTS AND EXPENSES
  Cost of sales                                     2,440,861         2,307,536
  General and administrative expenses               1,320,085         1,186,452
  Sales expense                                       707,193           710,113
  Interest expense                                     88,550            77,520
  Depreciation and depletion                           55,925            75,322
                                                 ------------      ------------
  TOTAL EXPENSES                                    4,612,614         4,356,943
                                                 ------------      ------------

       INCOME FROM OPERATIONS                          59,532           264,445
                                                 ------------      ------------
OTHER INCOME (EXPENSE)
 Other income (expense)                                33,689           206,061
                                                 ------------      ------------
 Earnings before income taxes                          93,221           470,506

 Provisions for income taxes (note C)                   3,000            40,900
                                                 ------------      ------------

NET EARNINGS                                           90,221           429,606

ACCUMULATED DEFICIT, beginning of period          (10,667,609)      (10,598,719)
                                                 ------------      ------------
ACCUMULATED DEFICIT, end of period               $(10,577,388)     $(10,169,113)
                                                 ============      ============
EARNINGS PER SHARE:
  Net earnings (loss)                            $      0.004      $       0.02
                                                 ============      ============

                        See notes to Financial Statements

                                        6
<PAGE>
                     COX TECHNOLOGIES, INC. AND SUBSIDIARIES
                             STATEMENT OF CASH FLOWS

                                                    Six Months Ended October 31,
                                                    ----------------------------
                                                        1999            1998
                                                     -----------    -----------
CASH FLOW FROM OPERATING ACTIVITIES
 Net earnings                                        $    90,221    $   429,606
 Adjustments to reconcile net earnings
  to net used by operating activities:
   Depreciation and depletion                             55,925         75,322
   Loss on securities                                        -0-        180,500
   Allowance for doubtful accounts                           863            -0-
   (Acquisition) disposition of Goodwill                  32,696       (803,184)

CHANGES IN CURRENT ASSETS AND CURRENT LIABILITIES
 (Increase) decrease in current assets:
   Inventory                                             194,610       (342,459)
   Accounts receivable                                  (151,674)      (262,188)
   Prepaid expenses                                        3,157        264,742
   Notes receivable and investments                       (6,959)

 (Increase) decrease in non-current assets:
   Deposits                                                2,424          2,193
   Deferred taxes                                         30,000
   Notes receivable - long term                          (22,734)
   Increase (decrease) in current liabilities:
   Accounts payable and accrued expenses                (117,377)         5,784
   Income Taxes Payable                                  (31,788)       (25,568)
                                                     -----------    -----------

NET CASH FROM OPERATING ACTIVITIES                        79,057       (474,945)
                                                     -----------    -----------
CASH FLOW FROM INVESTING ACTIVITIES
  Investment in securities                               (24,460)       300,000
  Issuance of common stock                               843,933
  Purchase of property and equipment                    (350,385)    (2,780,356)
                                                     -----------    -----------

NET CASH FROM INVESTING ACTIVITIES                      (374,845)    (1,636,423)
                                                     -----------    -----------
CASH FLOW FROM FINANCING ACTIVITIES
  Repayment on notes payable                            (437,844)
  Amounts borrowed under notes payable                   726,888      1,750,000
  Repayment (additions) to subscriptions receivable       (8,321)           -0-
                                                     -----------    -----------

NET CASH FROM INVESTING ACTIVITIES                       650,147      1,312,156
                                                     -----------    -----------

NET INCREASE (DECREASE) IN CASH                          354,359       (799,212)

CASH, beginning of year                                1,250,810      2,575,945
                                                     -----------    -----------

CASH, end of year                                    $ 1,605,169    $ 1,776,733
                                                     ===========    ===========

                        See notes to Financial Statements

                                        7
<PAGE>
                     COX TECHNOLOGIES, INC AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         Quarter Ended October 31, 1999



SUPPLEMENTAL DISCLOSURE:                        Six Months Ended October 31,
                                                ----------------------------
                                                 1999                  1998
                                                -------               -------
   Interest paid                                $88,550               $35,796
   Income taxes paid                            $ 8,950               $   -0-

NOTE A - CASH, NOTES PAYABLE AND COMMON STOCK

In June 1998, the Company acquired Vitsab, AB, a Swedish corporation in exchange
for  3,375,734  shares of the  Company's  unregistered  common  stock  valued at
$843,933  or $0.25 per share and 950,000  shares of the common  stock of VITSAB,
USA,  Inc., a previously  wholly-owned  subsidiary of the Company with 4,750,000
shares of common stock  outstanding  and the  assumption  of certain debt in the
amount of $2,300,000  owed by VITSAB,  AB to an unrelated  company.  The Company
borrowed  $1,750,000  from the bank under two notes and security  agreements and
liquidated the referenced $2,300,000 debt for the discounted sum of $1,750,000.

The Company has pledged a  $1,000,000  certificate  of deposit  with the lending
bank as collateral for the  $1,750,000  borrowed  funds.  The loans were due and
payable  within on year from June 1998.  Under  terms of the notes and  security
agreements  the Company was  obligated to make eleven (11)  monthly  payments of
$19,258.01  and one (1) final payment of all  outstanding  principal and accrued
interest  due June 17, 1999.  The bank  extended  the monthly  payments  through
September 1999 and in September 1999  subsequent to the date of this October 31,
1999 Report the Company refinanced its' indebtedness as follows:

     a)   consolidated the unpaid balance on the $1,750,000 loan with,
     b)   an additional loan of $500,000 and,
     c)   arranged for monthly  interest  only payments of $4,479.00 to the bank
          with a  maturity  date of  February  10,  2000  for  the  consolidated
          indebtedness with,
     d)   the  understanding  the  consolidated  loan would be  reviewed  at the
          maturity date for conversion to a long-term  indebtedness  if not paid
          or  assumed  through  an  equity  financing  of the  Vitsab  corporate
          structure independent of Cox Technologies, Inc.

                                        8
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)


NOTE B - INVENTORY

Inventory at October 31, 1999 and April 30, 1999 consists of the following:

                                                        1999
                                           -------------------------------
                                           October 31,           April 30,
                                           ----------           ----------
      Raw materials                        $  297,662           $  367,752
      Work-in-progress                        255,743              315,690
      Finished goods                          792,192              859,221
      Crude oil                                 2,456                  -0-
                                           ----------           ----------

                                           $1,348,053           $1,542,663
                                           ==========           ==========
NOTE C - INCOME TAXES

The Company and its subsidiaries  file  consolidated  Federal income tax returns
and separate State income tax returns.

The Company's  provision for income taxes is determined  after  application of a
portion of its net  operating  loss carry  forward.  As of October  31, 1999 the
Company's unused net operating loss carry forward was approximately $9,581,886.

NOTE D - COMMITMENTS AND CONTINGENCIES

There have been no changes in the disclosures of commitments,  contingencies and
litigation  as contained in the  Company's  annual report Form 10-K for the year
ended April 30, 1999.

                                       9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

At October 31, 1999 the Company had a working capital of $2,505,678.  This is an
increase of $234,789 for the six months period May 1, 1999 to October 31, 1999.

The  Company  did not incur any  long-term  debt  during  this  period,  however
investment in property and equipment increased  significantly by the acquisition
of Vitsab,  AB. At present,  cash flow from  operations  is adequate to meet the
cash requirements and commitments of the Company.  However, the Company plans to
enter  into  equity,  debt or other  financing  arrangements  to meet its future
financial needs for expansion and:

     (a)  To provide for general  working  capital needs including the servicing
          of the Vitsab, AB acquisition debt

     (b)  To repay outstanding liabilities

As previously  disclosed,  Vitsab, Inc. a wholly owned subsidiary of the Company
entered  into a letter of intent  with an  investment  broker to  structure  and
negotiate a private  placement  financing of up to  $7,500,000  of Vitsab,  Inc.
securities.  The  Company has  terminated  this  agreement  and is seeking a new
source of financing for Vitsab, Inc.

COMPARISON OF OPERATIONS FOR SECOND FISCAL QUARTER ENDED OCTOBER 31, 1999
AND 1998

As more fully described in its annual report,  Form 10K for the year ended April
30,  1999,  the  Company  has three (3)  industry  operating  segments;  a) time
temperature recorders (Recorders), b visual tag indicators (Vitsab) and c) crude
oil production (Oil).

Net earnings for the second fiscal  quarter ended October 31, 1999 were $52,773,
which is a decrease of $203,564  from  $256,337 net earnings for the same period
last year.  This  decrease was primarily due to a reduction of $168,936 in other
non-operating  income in 1999 as compared to 1998.  Earnings from operations for
1999 were  $38,069,  a decrease of $72,528 from the 1998 second  fiscal  quarter
earnings from operations.

                                       10
<PAGE>
COMPARISON OF OPERATIONS FOR QUARTER ENDED  (Continued)

The following schedule reflects the operations of the three industry segments of
the Company for the three months ended October 31, 1999 and 1998.

<TABLE>
<CAPTION>
                                                          Three Months Ended July 31
                              ---------------------------------------------------------------------------
                                 1999         1998         1999         1998         1999         1998
                               Recorders    Recorders       Oil          Oil        Vitsab       Vitsab
                              ----------   ----------   ----------   ----------   ----------   ----------
<S>                           <C>          <C>          <C>          <C>          <C>         <C>
Revenue:
 Sales                         2,342,379    2,245,525            0            0            0        3,000
Costs and Expenses
 Cost of sales                   993,926      935,863        2,250        2,447      177,124      191,000
 General & administrative        556,191      539,233       49,324       36,136       80,732            0
 Sales expense                   372,173      337,366            0            0            0            0
 Interest                          4,855        4,921            0            0       40,000       40,732
 Depreciation & depletion         15,926       29,230            0            0       12,561       21,000
                              ----------   ----------   ----------   ----------   ----------   ----------

Income (loss) operations         399,308      398,912      (51,574)     (38,583)    (310,417)    (249,732)
Other income (expense)            18,023      (36,321)         433      222,961            0            0
                              ----------   ----------   ----------   ----------   ----------   ----------
Earnings before income taxes     417,331      362,591      (51,141)     184,378     (310,517)    (249,732)
Income taxes                       3,000       27,134            0       13,766            0            0
                              ----------   ----------   ----------   ----------   ----------   ----------

Net earnings (loss)              414,331      335,457      (51,141)     170,612     (310,417)    (249,732)
                              ==========   ==========   ==========   ==========   ==========   ==========
</TABLE>

TEMPERATURE RECORDER OPERATIONS

Sales  increased  by $96,854 or 4.3% for the second  quarter 1999 fiscal year as
compared to the same period of 1998 fiscal year.

All  categories  of cost and expenses  remained  fairly  static with only slight
increases in cost of sales, general administrative and sales expenses.

The Company is currently developing a new temperature logger that is expected to
be more functional and complete than presently available logger technology.

Management  anticipates the initial  marketing of this product before the end of
the current fiscal year ending April 30, 2000.

                                       11
<PAGE>
OIL PRODUCTION OPERATIONS

As discussed in the Company's annual report,  Form 10-K for the year-ended April
30,  1999,  the oil  field  operations  are  being  operated  under  a  farm-out
arrangement  with an experienced  operator.  The costs to the Company for direct
oil field  operations  consisted  primarily of property  taxes for both 1999 and
1998.  The Company  expects  revenue from its oil  production  operations in the
third and fourth fiscal quarters of the current fiscal year.

The  increase  in  general  and  administrative  expenses  of $13,188 in 1999 as
compared to 1998 was due to costs and expenses  associated with the Company's CT
Telecom division which is being operated from the Phoenix office and is included
under the oil  production  operations.  The CT Telecom  division is developing a
computer  software  operating  system that is expected to be a separate  revenue
center for the Company by the fourth fiscal quarter of the fiscal year.

Other  income  of  $222,961  for  1998  was  realized  from  the  settlement  of
indebtedness at less than the recorded liability.

VITSAB OPERATIONS

This business segment was acquired in June 1998 and operations consist mainly of
marketing,  production and product  development.  The Vitsab operations are more
fully disclosed in the Company's Form 10-K for the year-ended April 30, 1999.

Cost of sales expenditures  represent costs of operations for both Malmo, Sweden
and Belmont,  North Carolina  operations.  The net loss of the operation for the
three  months  periods of both 1999 and 1998 were  virtually  the same.  Cost of
sales,  which represents  production  costs, were down.  General  administrative
expenses represent organizational expenses and salaries incurred by both Belmont
and Malmo operations.

Cost of sales  decreased  $13,876 or 0.7% in 1999 as compared to the same period
for 1998.  This was the result of  executive  and staff  salaries  with  related
expenses in  establishing a new management team to develop and market the Vitsab
product.

Management anticipates  significant Vitsab sales prior to the end of the current
fiscal year ending April 30, 2000.

                                       12
<PAGE>
COMPARISON OF OPERATIONS FOR SIX MONTHS PERIOD

The following schedule reflects the operations of the three industry segments of
the Company for the six months ended October 31, 1999 and 1998.

<TABLE>
<CAPTION>
                                                         Six Months Ended October 31
                              ---------------------------------------------------------------------------
                                 1999         1998         1999         1998         1999         1998
                               Recorders    Recorders       Oil          Oil        Vitsab       Vitsab
                              ----------   ----------   ----------   ----------   ----------   ----------
<S>                           <C>          <C>          <C>          <C>          <C>         <C>

 Revenue:
   Sales                       4,670,146    4,618,388            0            0        2,000        3,000
Costs and Expenses
  Cost of sales                2,158,519    2,101,250        4,500        3,286      277,842      203,000
  General & administrative     1,137,934    1,119,253      101,419       67,199       80,732            0
  Sales expense                  707,193      710,113            0            0            0            0
  Interest                        12,610       13,951            0        9,857       75,940       53,712
  Depreciation & depletion        31,364       50,322            0            0       24,561       25,000
                              ----------   ----------   ----------   ----------   ----------   ----------

Income (loss) operations         622,526      623,499     (105,919)     (80,342)     457,075     (278,212)
Other income (expense)            32,937      (32,643)         752      238,704            0            0
                              ----------   ----------   ----------   ----------   ----------   ----------
Earnings before income taxes     655,463      590,856     (105,167)     158,362      457,075     (278,712)
Income taxes                       3,000       27,134            0       13,766            0            0
                              ----------   ----------   ----------   ----------   ----------   ----------

Net earnings (loss)              652,463      563,722     (105,167)     144,596     (457,075)    (278,712)
                              ==========   ==========   ==========   ==========   ==========   ==========
</TABLE>

* Vitsab operations for 1998 cover only four months.

TEMPERATURE RECORDER OPERATIONS

Sales increased slightly by $51,758 for the 1999 six-month period as compared to
the same 1998 period.

Cost of sales was 46.0% of sales for 1999 as compared to 45% for 1998.

General and  administrative  expense increased $18,681 as compared to 1998. As a
percent of sales, such expenses were 24.4% in 1999 as compared to 24.2% in 1998.

Sales  expenses  decreased  $2,920 in 1999 as compared to 1998.  As a percent of
sales,  such expenses were 15.1% for 1999 and 15.4% for 1998.  This decrease was
due primarily to fewer trade show and sales promotional expenses.

Interest  expense was $1,341 less for 1999 than 1998 due to  increased  interest
bearing  indebtedness  of the recorder  operations.  Other  income  increased by
$65,580 due to interest  earnings on investments in 1999 combined with a loss on
securities in 1998.

                                       13
<PAGE>
COMPARISON OF SIX MONTHS (CONTINUED)

OIL PRODUCTION OPERATIONS

As discussed in the Company's annual report,  Form 10-K for the year-ended April
30,  1999,  the oil  field  operations  are  being  operated  under  a  farm-out
arrangement  with an experienced  operator.  The costs to the Company for direct
oil field  operations  consisted  primarily of property  taxes for both 1999 and
1998.  The Company  expects  revenue from its oil  production  operations in the
third and fourth fiscal quarters of the current fiscal year.

The  increase  in  general  and  administrative  expenses  of $34,220 in 1999 as
compared to 1998 was due to costs and expenses  associated with the Company's CT
Telecom division which is being operated from the Phoenix office and is included
under the oil  production  operations.  The CT Telecom  division is developing a
computer  software  operating  system that is expected to be a separate  revenue
center for the Company by the fourth fiscal quarter of the fiscal year.

VITSAB OPERATIONS

This business segment was acquired in June 1998 and operations consist mainly of
marketing,  production and product  development.  The Vitsab operations are more
fully disclosed in the Company's Form 10-K for the year-ended April 30, 1999.

Cost of sales expenditures  represent costs of operations for both Malmo, Sweden
and Belmont,  North Carolina  operations.  The net loss of the operation for the
three  months  periods of both 1999 and 1998 were  virtually  the same.  Cost of
sales,  which represents  production  costs, were down.  General  administrative
expenses represent organizational expenses and salaries incurred by both Belmont
and Malmo operations.

A comparative  analysis of the 1999 and 1998 operations  would not be meaningful
as the 1998 operations  cover only four months while the 1999  operations  cover
six months.

Management anticipates  significant Vitsab sales prior to the end of the current
fiscal year ending April 30, 2000.

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<PAGE>
PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Reference  is made to the annual  report  Form 10-K of the  Company for the year
ended April 30, 1999,  relative to legal proceedings and litigation.  No charges
or determinations  have occurred on such proceedings  during the quarter covered
by this report.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

     (a)  No exhibits are filed as a part of this report.

     (b)  There were no Form 8-K's filed by the Company during the quarter ended
          October 31, 1999.

YEAR 2000 DISCLOSURE

1. COMPANY'S STATE OF READINESS

Management  began  addressing the Company's Year 2000 issues over two years ago,
at which  time it was  determined  the  accounting  software  was not Year  2000
compliant.  New software was purchased  and  installed.  The Company  obtained a
written  statement  from the  software  vendor  who  attested  to the Year  2000
readiness of this software. To accommodate this new software the Company updated
its network software with Novell 4.0 to interact with the accounting software in
a manner that will not interfere  with its Year 2000  readiness.  Management has
also reviewed all  electronically  based product software  programs sourced from
third party vendors and have determined they are all Year 2000 compliant.

The  Company  has  mailed  questionnaire  forms  to  all  its  mission  critical
vendor/suppliers of parts for its assembly line. There has been virtually a 100%
return of these  informational  requests.  Concurrently,  the  Company  has been
qualifying  alternate   vendors/suppliers  for  potential  replacement  for  any
non-compliant vendors.

2. COST TO ADDRESS THE COMPANY'S YEAR 2000 ISSUES

The Company has expended  approximately  $15,000 to date in addressing  its Year
2000  readiness.  By management  analysis,  the future outlay for addressing any
perceived Year 2000 issues will not exceed $25,000 including assembly line parts
and supplies under its contingency plan.

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<PAGE>
3. RISKS OF THE COMPANY'S YEAR 2000 ISSUES

Management's analysis of its Year 2000 readiness indicate there are no Year 2000
issues that will have a material  effect on its business,  results of operations
or financial.  This opinion is based upon the Company's  accounting readiness is
now  complete  and all of the  vendors  of parts and  supplies  critical  to its
operations have acknowledged Year 2000 readiness and compliance.

4. COMPANY'S CONTINGENCY PLANS

If  management's  analysis of its third  party  vendor  capability  had not been
achieved  by  June  1999,  a  contingency  plan  was  developed   providing  for
stockpiling of assembly line parts and  continuing  new vendor  sourcing of Year
2000 compliance vendors.


SIGNATURES

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.


                                 COX TECHNOLOGIES, INC


Date January 3, 2000             /s/ James L Cox
                                 -----------------------------------------------
                                 James L Cox, President Chief Executive Officer,
                                 Director and Chairman



Date January 3, 2000             /s/ Robert W. Dupree
                                 -----------------------------------------------
                                 Robert W. Dupree, Chief Financial Officer


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