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 July 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  28012  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 filled 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 [X]   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
23,618,261 Shares Outstanding at August 31, 1999
<PAGE>
                     COX TECHNOLOGIES, INC. AND SUBSIDIARIES
                                      INDEX



FACE SHEET                                                                     1

INDEX                                                                          2

PART I.  FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS                                                  3
      Consolidated Balance Sheets
           July 31, 1999 and April 30, 1999                                    4

       Consolidated Statements of
           Operations and Accumulated Deficit
           Three Months Ended July 31, 1999 and 1998                           5

        Statement of Cash Flows
            Three Months Ended July 31, 1999 and 1998                      6 - 7

        Notes to Consolidated Financial Statements                             8

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF
                OPERATIONS                                                  9-11

PART II.   OTHER INFORMATION AND SIGNATURE                                    12

                                        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,  USA, 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 July 31, 1999 and April 30, 1999 and to a fair
statement of the results of operations  for the three months ended July 31, 1999
and 1998.

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

                                                   July 31, 1999  April 30, 1999
                                                   -------------  --------------
ASSETS
CURRENTS ASSETS:
  Cash and cash equivalents (Note A)               $  1,327,064    $  1,250,810
   Accounts receivable, less allowance for
     doubtful accounts of $28,664 at
     July 31,1999 and April 30, 1999                  1,514,112       1,599,079
   Inventory (Note B)                                 1,377,454       1,542,663
   Investment in securities                              25,997          51,211
   Notes receivable-current portion                      17,862          30,477

   Prepaid expenses                                      70,531          65,860
                                                   ------------    ------------
                                                      4,333,020       4,540,100

   Property and equipment (Net)                       7,094,350       7,109,762
   Investment in securities                             300,000         300,000
   Deposits                                              30,677          23,692
   Goodwill (Note A)                                    842,087         886,783

   Notes receivable - non-current portion                34,074          16,855
                                                   ------------    ------------

       TOTAL ASSETS                                $ 12,634,208    $ 12,877,192
                                                   ============    ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts payable and accrued expenses            $    557,798    $    582,542
  Income taxes payable (Note C)                           2,932          34,720
  Current portion of long-term debt (Note A)          1,295,034       1,651,949
                                                   ------------    ------------
      TOTAL CURRENT LIABILITIES                       1,855,764       2,269,211

  Long-term debt                                        722,710         581,374

  Minority interest payable                                 669             669
                                                   ------------    ------------

                                                      2,579,143       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 July 31, 1999
    and at April 30, 1999 (Note A)                   20,306,098      20,306,098
  Common stock subscribed                                58,100          58,100
  Contributed Capital                                   420,982         420,982
  Treasury stock                                        (45,920)        (45,920)
  Accumulated deficit                               (10,630,161)    (10,667,609)
  Notes receivable - common stock subscribed            (54,034)        (45,713)
                                                   ------------    ------------

TOTAL STOCKHOLDERS' EQUITY                           10,055,065      10,025,938
                                                   ------------    ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $ 12,634,208    $ 12,877,192
                                                   ============    ============

                        See Notes to Financial Statement

                                        4
<PAGE>
COX TECHNOLOGIES, INC. AND SUBSIDIARIES
(FORMERLY ENERGY RESERVE, INC. AND SUBSIDIARIES)
JULY 31, 1999 AND APRIL 30, 1999
--------------------------------------------------------------------------------

CONSOLIDATED STATEMENTS OF INCOME

                                                    Three Months Ended July 31
                                                  ------------------------------
                                                      1999             1998
                                                      ----             ----
REVENUE
   Sales                                          $  2,329,767     $  2,372,863
                                                  ------------     ------------
COSTS AND EXPENSES
   Cost of sales                                     1,267,561        1,178,226
  General and administrative expenses                  633,838          611,083
   Sales expense                                       335,020          372,747
   Interest expense                                     43,695           31,867
   Depreciation and depletion                           27,438           25,092
                                                  ------------     ------------
   TOTAL EXPENSE                                     2,307,552        2,219,015
                                                  ------------     ------------

          INCOME FROM OPERATIONS                        22,215          153,848
                                                  ------------     ------------

OTHER INCOME (EXPENSE)
   Other income (expense)                               15,233           19,421
                                                  ------------     ------------

Earnings income taxes                                   37,448          173,269

Provisions for income taxes (Note C)                        --               --

NET EARNINGS                                            37,448          173,269

ACCUMULATED DEFICIT, beginning of period           (10,667,609)     (10,598,719)
                                                  ------------     ------------
ACCUMULATED DEFICIT, end of period                ($10,630,161)    ($10,425,450)
                                                  ============     ============

EARNINGS PER SHARE:
   Net earnings                                   $       0.00     $       0.01
                                                  ------------     ------------

                        See Notes to Financial Statements

                                        5
<PAGE>
COX TECHNOLOGIES, INC. AND SUBSIDIARIES
(FORMERLY ENERGY RESERVE, INC. AND SUBSIDIARIES)
CONSOLIDATED STATEMENTS OF CASH FLOWS
JULY 31, 1999 AND APRIL 30, 1999
--------------------------------------------------------------------------------

                                                      Three Months Ended July 31
                                                      --------------------------
                                                          1999          1998
                                                       ---------    -----------

CASH FLOW FROM OPERATING ACTIVITIES
      Net earnings
      Adjustments to reconcile net earnings            $ 137,448    $   173.269
          to net cash used by operating activities:
      Depreciation, depletion and amortization            27,438         25,092

CHANGES IN CURRENT ASSETS AND CURRENT LIABILITIES
  (Increase) decrease in current assets:
      Accounts receivable                                 84,967       (161,850)
      Inventory                                          165,209        (52,269)
      Prepaid expenses                                    (4,671)       288,570
      Notes receivable and investments                    37,829         12,713

  (Increase) decrease in non-current assets
      Deposits                                            (6,985)         1,400
      Deferred taxes                                      30,000
      Notes receivable - long term                       (17,219)       (15,407)
      Goodwill                                            44,696             --

   Increase (decrease) in current liabilities:
      Accounts payable and accrued expenses              (24,744)       (89,513)
      Income Taxes payable                               (31,788)        (9,770)
                                                       ---------    -----------

CASH PROVIDED (USED) BY OPERATING ACTIVITIES             312,180        198,235
                                                       ---------    -----------

CASH FLOW FROM INVESTING ACTIVITIES
       Investment in securities                               --        300,000
       Issuance of common stock                               --        843,933
       Property                                          (12,026)    (2,562,898)
       Acquisition of goodwill                                --       (814,757)
                                                       ---------    -----------
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES         (12,026)    (2,233,722)
                                                       ---------    -----------

CASH FLOW FROM FINANCING ACTIVITIES
       Repayment on notes payable - Long term debt      (215,579)       (30,961)
       Subscriptions receivable                           (8,321)         1,428
       Minority interest                                      --           (669)
       Amounts borrowed under notes payable                   --      1,750,000


NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES       $(223,900)   $ 1,719,798
                                                       ---------    -----------

                        See Notes to Financial Statements

                                        6
<PAGE>
COX TECHNOLOGIES, INC. AND SUBSIDIARIES
(FORMERLY ENERGY RESERVE, INC. AND SUBSIDIARIES)
CONSOLIDATED STATEMENT OF CASH FLOWS - CONTINUED
JULY 31, 1999 AND APRIL 30, 1999
--------------------------------------------------------------------------------

                                                      Three Months Ended July 31
                                                      --------------------------
                                                          1999          1998
                                                       ---------    -----------

NET INCREASE (DECREASE) IN CASH                           76,254       (315,689)
CASH, beginning of period                              1,250,810      2,575,945
                                                      ----------    -----------
CASH, end of period                                   $1,327,064    $ 2,260,256
                                                      ==========    ===========

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
issued 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 a 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  one year  from  June  1998.  Under  the  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 June17,  1999. The bank extended the monthly  payments
through September 1999 and in September 1999 subsequent to the date of this July
31, 1999 Report the Company refinanced its' bank 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 to the bank with a
     maturity date of February 10, 2000 for the consolidated indebtedness with

d)   the  understanding  that the  consolidated  loan would be  reviewed  at the
     maturity  date for  conversion to a long-term  indebtedness  if not paid or
     assumed  through  a  pending  equity  financing  of  the  Vitsab  corporate
     structure independent of Cox Technologies, Inc.

                        See Notes to Financial Statement

                                        7
<PAGE>
COX TECHNOLOGIES, INC. AND SUBSIDIARIES
FORMERLY ENERGY RESERVE, INC. AND SUBSIDIARIES)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
QUARTER ENDED JULY 31, 1999
--------------------------------------------------------------------------------

NOTE B - INVENTORY

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

                                                                  1999
                                                        ------------------------
                                                          July 31      April 30
                                                        ----------    ----------
Raw materials                                           $  362,749    $  367,752
Work-in-progress                                           285,680       315,690
Finished goods                                             726,569       859,221
Crude oil                                                    2,456            --
                                                        ----------    ----------
                                                        $1,377,454    $1,542,663
                                                        ==========    ==========

NOTE C - INCOME TAXES

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

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.

                                        8
<PAGE>
COX TECHNOLOGIES, INC. AND SUBSIDIARIES
FORMERLY ENERGY RESERVE, INC. AND SUBSIDIARIES)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
QUARTER ENDED JULY 31, 1999
--------------------------------------------------------------------------------

                              FINANCIAL INFORMATION

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

LIQUIDITY AND CAPITAL RESOURCES

At July 31,  1999 the  Company had a working  capital of  $2,477,256.  This is a
increase of $206,367 for the first quarter  period May 1, 1999 to July 31, 1999.
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 debt incurred for the Vitsab,  AB acquisition and its continued
          operations.

     (b)  To repay outstanding liabilities.

Vitsab,  Inc.,  presently a: wholly owned subsidiary of the Company, has entered
into a letter of intent with an  investment  banker to structure and negotiate a
private placement financing of up to $7,500,000 of Vitsab, Inc. securities.  The
Company  anticipates a successful  conclusion of this financing by December 1999
or January 2000.

COMPARISON OF OPERATIONS FOR QUARTER ENDED JULY 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 3)
crude oil production (Oil).

The consolidated  earnings for the first fiscal quarter ended July 31, 1999 were
$32,448  which is a decrease of $135,821  from the $173,269 net earnings for the
same  period  last year.  Earnings  from  operations  for 1999 were  $22,215,  a
decrease  of  $131,633  from  the  1998  first  fiscal  quarter   earnings  from
operations.

                                        9
<PAGE>
COMPARISON OF OPERATIONS FOR QUARTER ENDED - CONTINUED

The following  schedule  reflects the operations of the two industry segments of
the Company  for the three  months  ended July 31, 1999 and 1998.  As the Vitsab
subsidiary was acquired on June 30, 1998,  the Vitsab  operations for 1998 cover
only the month of July 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                          2,327,767   2,372,863         0         0      2,000         0

Costs and Expenses
   Cost of sales                  1,164,593   1,165,387     2,250       839    100,718    12,000
   General and administrative       581,743     580,020    52,095    31,063          0         0
   Sales expense                    335,020     372,747         0         0          0         0
   Interest                           7,755       9,030         0     9,857     35,940    12,980
   Depreciation and amortization     15,438      21,092         0         0     12,000     4,000
                                    -------     -------   -------   -------   --------   -------

Income (loss) operations            223,218     225,587   (54,345)  (41,759)  (146,658)  (29,980)
Other income(expense)                14,914       3,678       319    15,743          0         0
                                    -------     -------   -------   -------   --------   -------
Earnings before income taxes        238,132     229,265   (54,026)  (26,016)  (323,740)  (29,980)
Income taxes                              0           0         0         0          0         0
                                    -------     -------   -------   -------   --------   -------

Net earnings (loss)                 238,132     229,265   (54,026)  (26,016)  (146,658)  (29,980)
                                    -------     -------   -------   -------   --------   -------
</TABLE>

TEMPERATURE RECORDER OPERATIONS

Sales  decreased  slightly  by  $45,000  for the 1999  first  quarter  period as
compared to the same 1998 period.

All categories of cost and expenses were virtually the same for 1999 as in 1998.
Cost of sales was 50.0% of sales for 1999 as compared to 49.1% for 1998.

General and  administrative  expense  increased $1,723 as compared to 1998. As a
percent of sales, such expenses were 25% in 1999 as compared to 24.4% in 1998.

Sales  expenses  decreased  $37,727 or 10.1% in 1999 as compared  to 1998.  As a
percent of sales,  such  expenses  were 14.4% for 1999 and 15.7% for 1998.  This
decrease was due primarily to fewer trade show and sales promotional expenses.+

Interest  expense  was $1,275  less for 1999 than 1998 due to  repayment  on the
interest bearing indebtedness of the recorder operations. Other income increased
by $11,236 due to interest earnings on investments.

                                       10
<PAGE>
COMPARISON OF OPERATIONS - CONTINUED


OIL PRODUCTION OPERATIONS

In April 1999, as fully  disclosed in Notes to Financial  Statements,  Note E of
the Company's Annual Report,  Form 10K for the fiscal year ended April 30, 1999,
the  Company  entered  into a  definitive  oil field  operating  agreement  (the
Agreement)  which  provides,  among other  things,  for  revenue  sharing by the
parties  and,  at  the  sole  funding  and  cost  to  the   Operator,   for  the
rehabilitation of the Leases and the restoration of crude oil production.

The  Company did not have any sales  during 1999 or 1998 for the fiscal  quarter
ended July 31. The  rehabilitation  and operation of the wells is proceeding and
in excess of 2,000 barrels have been produced at July 31, 1999. Capital costs by
the Operator were approximately $35,000 at July 31, 1999.

The increase in cost of sales represents  supervision expenses of the Company in
oversight activities in connection with oil field operations.

The increase of $21,032 in general and  administrative  expenses is attributable
to consulting, legal and executive expenses.

VITSAB OPERATIONS

The quarter ended July 31, 1999 cannot be meaningfully  compared with operations
ended July 31, 1998 because the 1998  operations  covered only one month whereas
the 1999 operations cover a full three-month period.

Cost of sales is  comprised of all the costs and  expenses  associated  with the
Vitsab  operations at the Malmo,  Sweden  plant.  The plant is fully staffed and
equipped  for  production  of the visual tag  indicators  developed by Vitsab to
provide visual proof of the progress of the biological  deterioration process of
a perishable food package.

As noted  elsewhere in this  Report,  the Company is  presently  undertaking  an
equity  financing of the Vitsab,  Inc.  subsidiary  wherein funds for marketing,
production and expansion activities of this product will be provided.

                                       11
<PAGE>
                               OTHER INFORMATION

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
          July 31, 1999

                                   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: 09-24-99                /s/ James L Cox
                              --------------------------------------------------
                              James L Cox, President and Chief Executive Officer


Date: 09-24-99                /s/ Robert W. Dupree
                              --------------------------------------------------
                              Robert W. Dupree, Chief Financial Officer

                                       12