UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

[X]  Quarterly  report under Section 13 or 15(d) of the Securities  Exchange Act
     of 1934 For the quarterly period year ended March 31, 2000

[ ]  Transition report under Section 13 or 15(d) of the Securities  Exchange Act
     of 1934

                  For the transition period from _____ to _____

                        Commission file number 000-26095


                              ENVIROKARE TECH, INC.
        (Exact name of small business issuer as specified in its charter)


            Nevada                                               88-0412549
 (State or other jurisdiction                                 (I.R.S. Employer
of incorporation or organization)                            Identification No.)

             2470 Chandler Avenue, Suite 5, Las Vegas, Nevada 89120
                    (Address of principal executive offices)

                                 (702) 262-1999
                           (Issuer's telephone number)

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

Check whether the issuer filed all documents and reports required to be filed by
Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities
under a plan confirmed by a court. Yes [ ] No [ ]

                                 NOT APPLICABLE

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest  practicable date: The total number of shares of Common
Stock,  par value  $.001  per  share,  outstanding  as of April  27,  2000,  was
11,089,478.

Transitional Small Business Disclosure Format (Check one):  Yes [ ]  No [X]



<PAGE>


                                TABLE OF CONTENTS

Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements..................................................1

           Accountant's Review Report..........................................2

           Statements of Financial Position....................................3

           Statements of Operations and Comprehensive Loss.....................4

           Statement of Stockholders' Equity...................................5

           Statements of Cash Flows............................................6

           Notes to the Financial Statements...................................7

Item 2.  Plan of Operation....................................................14



Part II - OTHER INFORMATION

Item 1.  Legal Proceedings....................................................18

Item 2.  Changes in Securities................................................18

Item 3.  Defaults Upon Senior Securities......................................18

Item 4.  Submission of Matters to a Vote of Security Holders..................19

Item 5   Other Information....................................................19

Item 6.  Exhibits and Reports on Form 8-K.....................................19





<PAGE>



                         PART I - FINANCIAL INFORMATION


Item 1. Financial Statements





                              ENVIROKARE TECH, INC.
                              Financial Statements
                      March 31, 2000 and December 31, 1999







                              WILLIAMS & WEBSTER PS
                          Certified Public Accountants
                            Seafirst Financial Center
                           W 601 Riverside, Suite 1940
                                Spokane, WA 99201
                                 (509) 838-5111






                                       1

<PAGE>


Board of Directors
Envirokare Tech, Inc.
2470 Chandler, Suite 5
Las Vegas, Nevada  89120

Accountant's Review Report

We have reviewed the accompanying  statement of financial position of Envirokare
Tech,  Inc. (a  development  stage company) as of March 31, 2000 and the related
statements of operations and  comprehensive  loss, cash flows, and stockholders'
equity for the three months  ended March 31, 2000,  and for the period from June
15, 1998 (inception) through March 31, 2000. These financial  statements are the
responsibility of the Company's management.

We conducted our review 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 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 review, we are not aware of any material  modifications that should
be made to the  accompanying  financial  statements  in order  for them to be in
conformity with generally accepted accounting principles.

The financial statements for the year ended December 31, 1999 were audited by us
and we  expressed an  unqualified  opinion on them in our report dated March 31,
2000, but we have not performed any auditing procedures since that date.

As discussed in Note 2, the Company has been in the development  stage since its
inception and has no revenues.  The Company's  continued  viability is dependent
upon the Company's  ability to meet its future  financing  requirements  and the
success of future  operations.  These factors raise  substantial doubt about the
Company's ability to continue as a going concern.  Management's  plans regarding
those matters are  described in Note 2. The financial  statements do not include
any adjustments that might result from the outcome of this uncertainty.


/s/ Williams & Webster, P.S.

Williams & Webster, P.S.
Certified Public Accountants
Spokane, Washington
April 25, 2000


                                       2

<PAGE>


                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
                        STATEMENTS OF FINANCIAL POSITION

<TABLE>
<CAPTION>
                                                                         March 31,      December 31,
                                                                           2000             1999
                                                                        (unaudited)
                                                                       ------------     ------------
<S>                                                                    <C>              <C>
ASSETS
       CURRENT ASSETS
            Cash                                                       $   321,898      $   148,046
            Prepaid expenses                                                91,290           76,291
                                                                       -----------      -----------
                 TOTAL CURRENT ASSETS                                      413,188          224,337
                                                                       -----------      -----------

       PROPERTY AND EQUIPMENT
            Furniture and fixtures                                           1,893            1,593
            Office equipment                                                 6,661            6,661
                 Less accumulated depreciation                              (1,789)          (1,385)
                                                                       -----------      -----------
                 TOTAL PROPERTY AND EQUIPMENT                                6,765            6,869
                                                                       -----------      -----------

       OTHER ASSETS
            Deposits and retainers                                          21,289           18,789
            Patent costs                                                    33,939           33,939
                                                                       -----------      -----------
                 TOTAL OTHER ASSETS                                         55,228           52,728
                                                                       -----------      -----------

            TOTAL ASSETS                                               $   475,181      $   283,934
                                                                       ===========      ===========

LIABILITIES & STOCKHOLDERS' EQUITY
       CURRENT LIABILITIES
            Accounts payable                                           $    16,198      $    88,155
            Notes payable                                                   61,965           61,965
            Accrued interest                                                 8,321            6,770
            Reimbursement due                                                 --             12,200
                                                                       -----------      -----------
                 TOTAL CURRENT LIABILITIES                                  86,484          169,090
                                                                       -----------      -----------

       COMMITMENTS AND CONTINGENCIES                                          --               --
                                                                       -----------      -----------
       STOCKHOLDERS' EQUITY
            Preferred stock, 10,000,000 shares authorized,
                 $.001 par value; 500,000 and no shares issued and
                 outstanding, respectively                                     500              500
            Common stock, 200,000,000 shares authorized,
                 $.001 par value; 11,089,478 and 10,746,140 shares
                 issued and outstanding, respectively                       11,089           10,746
            Stock subscriptions receivable                                    --           (105,000)
            Additional paid-in-capital                                     842,557          585,400
            Stock options                                                  552,000          552,000
            Accumulated deficit during developmental stage              (1,015,089)        (927,600)
            Other comprehensive loss                                        (2,360)          (1,202)
                                                                       -----------      -----------
            TOTAL STOCKHOLDERS' EQUITY (DEFICIT)                           388,697          114,844
                                                                       -----------      -----------

            TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                 $   475,181      $   283,934
                                                                       ===========      ===========
</TABLE>

       See accountant's review report and notes to financial statements.

                                       3

<PAGE>




                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
                 STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

<TABLE>
<CAPTION>
                                                          For the            For the         Period from
                                                        Three Months      Three Months      June 15, 1998
                                                           Ended              Ended         (Inception) to
                                                         March 31,          March 31,         March 31,
                                                            2000              1999               2000
                                                        (unaudited)        (unaudited)       (unaudited)
                                                        ------------      ------------      ------------
<S>                                                     <C>               <C>               <C>
REVENUES                                                $       --        $       --        $       --
                                                        ------------      ------------      ------------
EXPENSES

       Consulting fees: related parties                       15,170            15,000           307,886
       Other consulting fees                                  32,500             7,500           417,550
       Rent                                                    2,292             2,190            16,111
       General and administrative                             20,722             1,281           121,428
       Transfer agent fees                                       679              --               2,032
       Depreciation                                              404               163             1,788
       Interest on notes payable                               1,551             1,689             8,363
       Listing expenses and filing fees                        3,485            12,371            12,132
       Legal and accounting                                   10,686            11,500            56,649
       Research and development                                 --                --              71,150
                                                        ------------      ------------      ------------
            TOTAL EXPENSES                                    87,489            51,694         1,015,089
                                                        ------------      ------------      ------------

LOSS FROM OPERATIONS                                         (87,489)          (51,694)       (1,015,089)

INCOME TAX                                                      --                --                --
                                                        ------------      ------------      ------------

NET LOSS                                                     (87,489)          (51,694)       (1,015,089)

OTHER COMPREHENSIVE LOSS
       Foreign currency translation loss                      (1,158)             --              (2,360)
                                                        ------------      ------------      ------------

COMPREHENSIVE LOSS                                           (88,647)          (51,694)       (1,017,449)
                                                        ============      ============      ============

       BASIC AND DILUTED NET LOSS PER COMMON SHARE      $      (0.01)     $      (0.01)     $      (0.10)
                                                        ============      ============      ============

       WEIGHTED AVERAGE NUMBER OF BASIC AND DILUTED
            COMMON STOCK SHARES OUTSTANDING               10,917,809        10,150,000        10,254,047
                                                        ============      ============      ============
</TABLE>

       See accountant's review report and notes to financial statements.

                                       4

<PAGE>


ENVIROKARE TECH, INC.
(A Development Stage Company)
STATEMENT OF STOCKHOLDERS' EQUITY


<TABLE>
<CAPTION>
                                                             Preferred Stock                   Common Stock
                                                       ---------------------------     ---------------------------      Additional
                                                         Number                           Number                         Paid-In
                                                        of Shares        Amount          of Shares        Amount         Capital
                                                       -----------     -----------     -----------     -----------     -----------
<S>                                                        <C>         <C>              <C>            <C>             <C>
Issuance of common stock in June, 1998:
      For cash at $.001 per share                             --       $      --        10,000,000     $    10,000     $      --

Net loss for period ended December 31, 1998                   --              --              --              --              --
                                                       -----------     -----------     -----------     -----------     -----------
Balance
      December 31, 1998                                       --              --        10,000,000          10,000            --

Issuance of common stock at $.50 - $1.00 per share            --              --           746,140             746         334,053
      for cash

Issuance of  preferred stock at $.50 per share             500,000             500            --              --           249,500
      for cash

Issuance of stock options                                     --              --              --              --              --

Forgiveness of debt                                           --              --              --              --             1,847

Net loss for year ended December 31, 1999                     --              --              --              --              --

Foreign currency translation loss                             --              --              --              --              --
                                                       -----------     -----------     -----------     -----------     -----------
Balance, December 31, 1999                                 500,000             500      10,746,140          10,746         585,400

Cash received for subscriptions receivable                    --              --              --              --              --

Issuance of common stock at $0.75 per share                   --              --           343,338             343         257,157

Net loss for the three months ended March 31, 2000            --              --              --              --              --

Foreign currency translation loss                             --              --              --              --              --
                                                       -----------     -----------     -----------     -----------     -----------
Balance, March 31, 2000 (unaudited)                        500,000             500      11,089,478          11,089         842,557
                                                       ===========     ===========     ===========     ===========     ===========

<CAPTION>

                                                                                                          Other            Total
                                                        Stock       Subscriptions      Accumulated    Comprehensive    Stockholders'
                                                       Options       Receivable          Deficit          Loss            Equity
                                                     -----------     -----------      -----------      -----------      -----------
<S>                                                  <C>             <C>              <C>              <C>              <C>
Issuance of common stock in June, 1998:
      For cash at $.001 per share                    $      --       $      --        $      --        $      --        $    10,000

Net loss for period ended December 31, 1998                 --              --            (34,427)            --            (34,427)
                                                     -----------     -----------      -----------      -----------      -----------
Balance
      December 31, 1998                                     --              --            (34,427)            --            (24,427)

Issuance of common stock at $.50 - $1.00 per share          --          (105,000)            --               --            229,799
      for cash

Issuance of  preferred stock at $.50 per share              --              --               --               --            250,000
      for cash

Issuance of stock options                                552,000            --               --               --            552,000

Forgiveness of debt                                         --              --               --               --              1,847

Net loss for year ended December 31, 1999                   --              --           (893,173)            --           (893,173)

Foreign currency translation loss                           --              --               --             (1,202)          (1,202)
                                                     -----------     -----------      -----------      -----------      -----------
Balance, December 31, 1999                               552,000        (105,000)        (927,600)          (1,202)         114,844

Cash received for subscriptions receivable                  --           105,000             --               --            105,000

Issuance of common stock at $0.75 per share                 --              --               --               --            257,500

Net loss for the three months ended March 31, 2000          --              --            (87,489)            --            (87,489)

Foreign currency translation loss                           --              --               --             (1,158)          (1,158)
                                                     -----------     -----------      -----------      -----------      -----------
Balance, March 31, 2000 (unaudited)                      552,000            --         (1,015,089)          (2,360)         388,697
                                                     ===========     ===========      ===========      ===========      ===========
</TABLE>

        See accountant's review report and notes to financial statements.

                                       5

<PAGE>

                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                    For the          For the         Period from
                                                                                  Three Months     Three Months     June 15, 1998
                                                                                     Ended            Ended         (Inception) to
                                                                                   March 31,        March 31,         March 31,
                                                                                      2000             1999              2000
                                                                                   (unaudited)      (unaudited)      (unaudited)
                                                                                  -------------    ------------     -------------
<S>                                                                               <C>              <C>              <C>
Cash flows from operating activities:
       Net loss                                                                   $   (87,489)     $   (51,694)     $(1,015,089)
       Adjustments to reconcile net loss
            to net cash used by operating activities:
       Depreciation                                                                       404              163            1,788
       Stock options issued for consulting fees                                          --               --            552,000
       Increase (decrease)  in prepaid expenses                                       (17,499)          10,500         (112,579)
       Increase (decrease) in accounts payable                                        (84,157)            --             16,199
       Increase in accrued interest                                                     1,551            1,549            8,321
       Expenses paid by note payable                                                     --               --              2,870
                                                                                  -----------      -----------      -----------
       Net cash used by operating activities                                         (187,190)         (39,482)        (546,490)
                                                                                  -----------      -----------      -----------
Cash flows from investing activities:
       Patent costs                                                                      --               --               (609)
       Purchase of equipment                                                             (300)            --             (5,942)
                                                                                  -----------      -----------      -----------
       Net cash used in investing activities                                             (300)            --             (6,551)
                                                                                  -----------      -----------      -----------
Cash flows from financing activities:
       Proceeds from sale of preferred stock                                             --               --            250,000
       Proceeds from sale of common stock                                             362,500           37,500          602,299
       Proceeds from issuance of notes payable                                           --             12,000           25,000
                                                                                  -----------      -----------      -----------
       Net cash provided by financing activities                                      362,500           49,500          877,299
                                                                                  -----------      -----------      -----------
Increase in cash                                                                      175,010           10,018          324,258

Adjustment for foreign currency                                                        (1,158)            --             (2,360)

Cash, beginning of period                                                             148,046            2,388             --
                                                                                  -----------      -----------      -----------
Cash, end of period                                                               $   321,898      $    12,406          321,898
                                                                                  ===========      ===========      ===========

SUPPLEMENTAL INFORMATION:

       Interest paid                                                              $      --        $      --        $      --
                                                                                  ===========      ===========      ===========
       Income taxes paid                                                          $      --        $      --        $      --
                                                                                  ===========      ===========      ===========
NON-CASH TRANSACTIONS:
       Note issued for purchase of property, equipment and operating expenses     $      --        $      --        $     3,635
       Note issued for pending patent to related party                            $      --        $      --        $    33,330
       Reimbursement due for purchase of equipment                                $      --        $      --        $     1,847
       Stock options issued for consulting fees                                   $      --        $      --        $   552,000
       Stockholder's contribution for equipment                                   $      --        $      --        $     1,847
</TABLE>

       See accountant's review report and notes to financial statements.

                                       6

<PAGE>

                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
                        Notes to the Financial Statements
                                 March 31, 2000



NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Envirokare Tech,  Inc.,  (hereinafter  "the Company"),  was incorporated in June
1998  under the laws of the State of  Nevada.  In  December  1998,  the  Company
acquired the property,  assets and undertakings of a business  manufacturing and
developing a rubber mold technology and patent rights potentially  applicable to
future  development  of a pallet  made of  recycled  materials.  The  Company is
currently  developing  marketing and manufacturing  plans for the products under
development. The Company maintains an office in Las Vegas, Nevada.

The  Company  is in the  development  stage,  and as of March  31,  2000 had not
realized any significant revenues from its planned operations.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of  significant  accounting  policies of Envirokare  Tech,  Inc. is
presented to assist in understanding  the Company's  financial  statements.  The
financial  statements and notes are representations of the Company's  management
which is  responsible  for their  integrity and  objectivity.  These  accounting
policies  conform to  generally  accepted  accounting  principles  and have been
consistently applied in the preparation of the financial statements.

Development Stage Activities

The Company has been in the development  stage since its formation in June 1998.
It is primarily  engaged in the refinement of a  manufacturing  process which is
based on  research  findings  for the  development  of pallets  made of recycled
materials.

Going Concern

The  accompanying  financial  statements  have been  prepared  assuming that the
Company will continue as a going concern.

As shown in the accompanying  financial statements,  the Company has incurred an
accumulated  deficit of $1,015,089  which includes a net loss of $87,489 for the
three  months  ended  March 31,  2000 and has a  working  capital  deficit.  The
Company, being a developmental stage enterprise, is currently putting technology
in  place  which  will,  if  successful,  mitigate  these  factors  which  raise
substantial doubt about the Company's ability to continue as a going concern.

The  financial  statements  do  not  include  any  adjustments  relating  to the
recoverability  and  classification  of  recorded  assets,  or the  amounts  and
classification  of liabilities  that might be necessary in the event the Company
cannot continue in existence.

                                       7

<PAGE>

                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
                        Notes to the Financial Statements
                                 March 31, 2000

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Going Concern (continued)

The Company has raised equity  capital  through the sale of common and preferred
stock.  Management  has  proceeded  as planned in the ongoing  development  of a
recycled plastic and rubber composite  pallet.  In-depth  analysis of compounds,
extrusion method and equipment  modifications have been studied and refined,  as
have initial  prototypes.  During the year ending December 31, 1999, the Company
has  contracted  with  Thermoplastic  Composite  Designs Inc. and  Thermoplastic
Flowforming Technologies Corp. for professional and technical services. Finished
product should be available for  distribution to potential  customers for in-use
evaluation during the second quarter of year 2000.

Accounting Method

The Company's  financial  statements  are prepared  using the accrual  method of
accounting.

Loss Per share

Loss per share was  computed by dividing  the net loss by the  weighted  average
number of shares  outstanding  during the period. The weighted average number of
shares was calculated by taking the number of shares  outstanding  and weighting
them by the amount of time that they were outstanding.  Basic and diluted shares
outstanding are the same, as the inclusion of common stock  equivalents would be
anti-dilutive.

Cash and Cash Equivalents

For  purposes  of the  Statement  of  Cash  Flows,  the  Company  considers  all
short-term debt securities  purchased with a maturity of three months or less to
be cash equivalents.

Provision for Taxes

At March 31, 2000 and December 31, 1999, the Company had net operating losses of
approximately $87,489 and $927,600,  respectively. No provision for taxes or tax
benefit  has  been  reported  in the  financial  statements,  as  there is not a
measurable means of assessing future profits or losses.

Use of Estimates

The process of preparing  financial  statements  in  conformity  with  generally
accepted  accounting  principles  requires the use of estimates and  assumptions
regarding certain types of assets,  liabilities,  revenues,  and expenses.  Such
estimates  primarily relate to unsettled  transactions and events as of the date
of the financial statements.  Accordingly,  upon settlement,  actual results may
differ from estimated amounts.

Reclassification

The  reclassification  in the  financial  statements  have  resulted  in certain
changes in presentation  which have no effect on the net losses or shareholders'
equity for March 31, 1999 and December 31, 1999, or the periods then ended.

                                       8

<PAGE>

                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
                        Notes to the Financial Statements
                                 March 31, 2000

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Impaired Asset Policy

In March 1995,  the  Financial  Accounting  Standards  Board  issued a statement
titled "Accounting for Impairment of Long-lived  Assets." In complying with this
standard,  the Company will review its long-lived  assets quarterly to determine
if any events or changes in  circumstances  have transpired  which indicate that
the carrying  value of its assets may not be  recoverable.  The Company does not
believe any  adjustments are needed to the carrying value of its assets at March
31, 2000.

Year 2000 Issues

Like other companies,  Envirokare Tech, Inc. could be adversely  affected if the
computer  systems the Company,  its  suppliers or customers  use do not properly
process  and  calculate  date-related  information  and  data  from  the  period
surrounding  and including  January 1, 2000. This is commonly known as the "Year
2000"  issue.  Additionally,  this issue could impact  non-computer  systems and
devices such as  production  equipment  and  elevators,  etc. At this time,  the
Company  does not have any  evidence of problems  associated  with the year 2000
issue.

Interim Financial Statements

The interim financial  statements as of and for the three months ended March 31,
2000 included  herein have been prepared for the Company,  without  audit.  They
reflect all  adjustments  which are, in the opinion of management,  necessary to
present fairly the results of operations for these periods. All such adjustments
are normal  recurring  adjustments.  The results of  operations  for the periods
presented are not  necessarily  indicative of the results to be expected for the
full fiscal year.

NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment are stated at cost.  Depreciation  is provided  using the
straight line method over the estimated  useful lives of the assets.  The useful
lives of property,  plant and equipment  for purposes of computing  depreciation
are five and seven years. The following is a summary of property,  equipment and
accumulated depreciation.

                                             March 31,   December 31,
                                               2000          1999
                                             ---------   ------------
          Furniture and Fixtures              $1,893       $1,593
          Less Accumulated Depreciation          348          269
                                              ------       ------
          Net Furniture & Fixtures            $1,545       $1,324
                                              ======       ======

          Office Equipment                    $6,661       $6,661
          Less Accumulated Depreciation        1,441        1,116
                                              ------       ------
          Net Office Equipment                $5,220       $5,545
                                              ======       ======

                                       9

<PAGE>


                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
                        Notes to the Financial Statements
                                 March 31, 2000

NOTE 4 - INTANGIBLE ASSETS

In December 1998, the Company acquired technology rights from Real Morel and his
affiliated companies of International Pallet Control Systems Inc. and The Pallet
Company.  The  Company is  currently  investigating  the patent  process on this
technology.  During the year ended December 31, 1999, attorney fees of $609 were
added to patent cost. The amortization of patent costs will begin when the final
patents are  granted.  If the Company  does not obtain the patent,  the costs of
acquiring the patent rights from its originator will be charged to operations.

NOTE 5 - DETAILS OF SHORT-TERM DEBT

Reimbursement  due, in the amount of $1,847,  are monies owing  Timothy Zuch for
gift  certificates  provided to the Company in fiscal year ending  December  31,
1998,  which were deducted from the purchase price of computer  equipment.  This
debt was  forgiven  during the year  ending  December  31,  1999 and  applied to
additional paid in capital.

Refunds of $12,200 were due to potential  investors from the stock  subscription
offering.  The potential investors did not meet the accredited investor criteria
that was a prerequisite for inclusion in the offering.  The refunds were paid in
February 2000.

Short-term  notes  payable at March 31, 2000 and  December  31, 1999  consist of
unsecured  notes bearing 10% interest and are dated between  August 18, 1998 and
December 16, 1998. The short-term notes are payable to Real Morel and are due on
demand. The principal amount on the notes is $63,965.  Interest expense recorded
on the notes  payable at March 31,  2000 and  December  31,  1999 was $1,551 and
$6,239, respectively.

NOTE 6 - COMMON STOCK

Upon  incorporation,  10,000,000  shares of common  stock were sold at $.001 per
share,  under  Regulation  D, Rule 504. At year's end,  the stock was held by 30
shareholders, none of whom held in excess of ten percent of the stock.

On February 22, 1999, the Board of Directors  authorized a 2-for-1 reverse stock
split of the Company's  $.001 par value common stock. As a result of the reverse
split,  5,000,000  shares were  cancelled  and  additional  paid-in  capital was
increased by $5,000. All references in the accompanying  financial statements to
the number of common  shares and  per-share  amounts  for 1998 were  restated to
reflect the reverse stock split.

During the year ending  December 31,  1999,  common stock shares of 373,070 were
issued for cash.  At December  31, 1999 the balance of stock  subscriptions  was
$105,000. Stock subscriptions were paid, and stock issued February 16, 2000, for
these common stock shares.

                                       10

<PAGE>

                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
                        Notes to the Financial Statements
                                 March 31, 2000

NOTE 6 - COMMON STOCK (Continued)

During the month of February 2000, common stock shares of 343,338 were issued at
$0.75 per share.  A common stock split,  two for one,  took place for holders of
record  as of  March 1,  2000.  All  references  in the  accompanying  financial
statements  to the number of common  shares and per share  amounts for the first
three  months  ended March 31, 2000 and year ended  December  31, 1999 have been
restated to reflect the stock split.

NOTE 7 - PREFERRED STOCK

During the year ending December 31, 1999, preferred stock shares of 500,000 were
issued for $250,000 cash. The preferred  stock has no rights for dividends,  but
is  convertible  to common  stock at the rate of ten  shares of common  for each
preferred  share.  This conversion  feature was modified to twenty to one by the
subsequent stock split effective March 1, 2000.

NOTE 8 - STOCK OPTIONS

In September  1999,  the Company  adopted the 1999 Stock Plan,  a  non-qualified
plan. The plan was registered with the Securities Exchange Commission.  The 1999
Stock Plan authorizes  2,000,000  stock options.  The purposes of the 1999 Stock
Plan are to attract, retain and motivate employees, directors and consultants of
the Company.  In accordance with Statement on Financial  Accounting Standard No.
123,  the  fair  value  of  the  options   granted  were  estimated   using  the
Black-Scholes Option Price Calculation.  The following  assumptions were made to
value the stock  options:  risk-free  interest  rate at 5%,  expected life at 10
years, and management's  expected volatility at 30%. For the year ended December
31, 1999, the company recorded $552,000 ($.48 per option) in consulting fees for
the value of the options based upon these Black Scholes assumptions. These stock
options will expire September 29, 2009. (See Note 9).

                                              Fixed Plan
                                       Number of   Weighted Average
                                        Shares      Exercise Price

Outstanding at December 31, 1998            --           --
Granted                                1,150,000     $   1.15
                                       ---------     --------
Outstanding at December 31, 1999       1,150,000     $   1.15
Granted                                     --           --
                                       ---------     --------
Outstanding at March 31, 2000          1,150,000     $   1.15
                                       =========     ========

Options Exercisable March 31, 2000       287,500     $   1.15
                                       =========     ========

Common stock when issued for the above  options  will have  certain  contractual
restrictions  upon  subsequent  sale.  All holders  cannot sell more than 25% of
their granted  amounts per year held,  nor exceed total annual sales of $100,000
per year.

                                       11

<PAGE>

                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
                        Notes to the Financial Statements
                                 March 31, 2000

NOTE 9 - RELATED PARTIES

Jeannie M. Runnalls, who was appointed President, Secretary, and director of the
Company on January 24, 2000, received $15,170 in cash for consulting fees during
the first three months of 2000.

Jeannie M. Runnalls, who serves as a director,  received cash in consulting fees
during the year ending December 31, 1999 of $22,715.

Stock  options of 1,150,000  were issued for common stock shares during the year
ending December 31, 1999. Of these stock options, 500,000 were issued to related
parties. (See Note 8).

Madelyn  Thomas,  who received  $10,000 in consulting fees under the terms of an
ongoing  contract  as of  December  31,  1998 and an  additional  $20,000  as of
December 31, 1999, is the wife of the past president of the Company,  Charles W.
Thomas. On June 1, 1999,  Madelyn Thomas served the company thirty-day notice to
terminate her consulting contract to be effective at month's end.

NOTE 10 - COMMITMENTS AND CONTINGENCIES

The Company  entered into  consulting  contracts with Susan Westfall and Madelyn
Thomas on November 1, 1998 for the purpose of establishing  corporate offices on
behalf of the Company.  The terms of Ms.  Westfall's  contract  specify that she
will  receive  $2,500 per month for the term of the  contract,  which  commenced
November  1, 1998 and  terminated  April 30,  1999.  The terms of Mrs.  Thomas's
contract  specify  that she will  receive  $5,000  per month for the term of the
contract,  which  commenced  November 1, 1998 and terminated June 30, 1999. Both
contracts provide  indemnification against any and all liability and provide for
reimbursement of expenses up to a specified amount.  They may be terminated upon
thirty days written notice by either party.

On April 1, 1999,  the Company  entered into a lease for office space in British
Columbia  for the  period of twelve  months  beginning  April 1,  1999.  Monthly
payments  for the  initial  year of the  lease  are  $800(CDN)  per  month,  not
including  utilities.  This  lease was  cancelled  as of July 31,  1999  without
penalty.

The Company  entered  into a lease for office  space in Nevada for the period of
thirty-six  months beginning  October 1, 1998.  Monthly payments for the initial
year of the lease are $730 per month, including $40 for utilities. In compliance
with the terms of the lease,  the Company  has  purchased  comprehensive  public
liability  insurance.  Future annual  minimum lease payments for the term of the
lease are as follows for the years ending December 31:

          2000                                 $6,957
          2001                                 $7,200

                                       12

<PAGE>

                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
                        Notes to the Financial Statements
                                 March 31, 2000

NOTE 10 - COMMITMENTS AND CONTINGENCIES (Continued)

In  November  1999  the  Company  entered  into a  contract  with  Thermoplastic
Composite Designs (TCD), Inc. and Thermoplastic  Flowforming  Technologies Corp.
(TPF) for  professional  and technical  services.  These  services  included the
design and material specs, mold fabrication, prototype and demo units. The total
contract amount is $133,800. During the year ended December 31, 1999, the amount
paid was  $50,800  leaving a balance  owing of  $83,000.  On January  24, 2000 a
payment of $35,000 was made. An additional  payment of $35,000 was made on March
15, 2000. The Company recorded  $70,000 of these research and development  costs
to prepaid expenses as of December 31, 1999. This amount represents the value of
the molds derived from this contract,  which may become depreciable  property if
no  further  development  is  necessary.  Upon  execution  of a  TPF  Technology
Licensing Agreement, the Company will receive a credit of $61,600;  representing
46% of the  payments  made to TCD under the  development  contract,  toward  the
license fee payable to TPF Technologies.



                                       13

<PAGE>


Item 2. Plan of Operation

     This Form 10-QSB  contains some  statements  that the Company  believes are
"forward-looking  statements."  These include statements about the future of the
pallet industry, statements about future business plans and strategies, and most
other statements that are not historical in nature.  Forward-looking  statements
involve  risks and  uncertainties,  including  changing  market  conditions  and
competitive,  regulatory and other matters discussed in the disclosure contained
in this Form  10-QSB and the other  filings  with the  Securities  and  Exchange
Commission made by the Company from time to time.  These and other factors could
cause  actual  results  to be  materially  different  from any  future  results,
performance  or  achievements  expressed  or  implied.  The  discussion  of  the
Company's plan of operation, including forward-looking statements, does not take
into  account  the effect of any  changes  to the  Company's  operations  or any
external  factors.  Accordingly,  readers  should not place  undue  reliance  on
forward-looking  statements.  Also,  the Company has no  obligation  to publicly
update forward-looking statements it makes in this Form 10-QSB.

     Overview

     The Company is currently in the development stage and has not yet generated
any  operating  revenues.  Since its  inception  in June 1998,  the  Company has
developed a single piece molded  pallet (the  "Pallet")  manufactured  primarily
from  recycled  plastics and  granulated  rubber  derived from  discarded  tires
(commonly referred to as "crumb rubber").  The Company is currently in the final
stages of  testing  this  product,  and  expects to begin  generating  licensing
revenues  during the third  quarter of 2000, as the  Company's  licensees  begin
production of the Pallet.

     The Company had originally  planned to have its licensees  begin  producing
the  Pallet in June 2000 but  decided  to conduct  additional  tests,  which has
delayed  the  previously  planned  start  date  by  approximately  four  months.
Significantly  improved substrate technology caused the Company to rethink their
initial production start-up dates. Consequently,  additional product testing was
required that would be specific to the improved substrate composition,  prior to
initiating  the launch of  production  operations  for  licensees.  Although the
Company's decision to further test the Pallet has set back production dates, the
Company  believes that this additional  testing has  substantially  minimized or
eliminated  any concerns as to the Pallet's  design and ability to perform.  The
Company's testing program has included in-depth analysis of substrate compounds,
extrusion methods and equipment modifications.  Initial prototypes of the Pallet
have been developed and refined. The Company expects to have potential customers
evaluate the Pallet through  in-use  testing  beginning in the second quarter of
2000. The Company  believes that after a final  engineering  analysis  report is
completed,  Company licensees will commence  production of the Pallet during the
third quarter of 2000.

                                       14

<PAGE>


     Liquidity and Capital Resources

     The Company is not yet generating revenues.  For the period ended March 31,
2000, the Company had a net loss of $87,489.  The Company's net loss accumulated
for the period from June 15, 1998  (inception) to March 31, 2000 was $1,015,089.
The Company  anticipates that it will begin to generate revenue during the third
quarter  of 2000  upon the  planned  start of  production  of the  Pallet by the
Company's  licensees.  At March  31,  2000 the  Company  had  current  assets of
$413,188, consisting of $321,898 in cash and $91,290 in prepaid expenses. During
the first quarter of 2000, the Company's cash resources  increased primarily due
to issuance of the Company's common stock for aggregate  proceeds to the Company
of $257,500.  At March 31, 2000 the Company had current  liabilities of $86,484.
At March 31, 2000 current assets exceeded current liabilities by $326,704. Other
than as  discussed  above,  the  Company  is not aware of any  trends,  demands,
commitments  or  uncertainties,  other than  those  affecting  business  and the
economy in general,  that could result in the Company's liquidity  decreasing or
increasing in a material way within the next 12 months.

     To date,  the Company has raised  capital  through  private  placements  of
common  stock  and  convertible   preferred  stock.  The  Company  has  budgeted
expenditures  in 2000 of  $504,282,  and  plans  to raise  $550,000  in the next
several  months to cover its  proposed  expenditures.  These funds may be raised
through additional equity financings, as well as borrowings and other resources.
The Company is currently holding discussions with potential investors.  With the
capital it has raised to date, and the additional  $550,000 it plans to raise in
the next several months,  the Company now believes that it is at the point where
it can move forward with its production and marketing plans,  which in the short
term  include  the  start-up  of  Pallet  manufacturing  operations  by  Company
licensees,  and in the longer  term  include  adding  additional  licensees  and
expanding  the product line mix.  Management  of the Company  believes  that its
financing plans described above will enable it to meet its obligations including
cash requirements for at least the next twelve months to March 31, 2001.

     To achieve and  maintain  competitiveness  of its  products  and to conduct
further  testing and  development  that will allow the Company to enter into the
production stage of operations, the Company may be required to raise substantial
funds in addition to funds already  raised through the issuance of the Company's
shares.  There can be no  assurance  that  additional  funding will be available
under  favorable  terms,  if at all. If adequate  funds are not  available,  the
Company may be required to curtail operations  significantly.  For example,  the
Company's longer-term plans include setting up its own production operations, in
addition to its shorter-term  focus of having licensees  produce the Pallet.  If
the Company cannot raise enough funds,  it may not be able to carry out its plan
to set up its own  operations.  The  Company  might  also have to  obtain  funds
through entering into arrangements with collaborative  partners or others.  That
could require the Company to relinquish rights to certain products,  which could
impair future sources of revenues for the Company.

                                       15

<PAGE>


     Product Testing and Development

     The Company has been actively involved in extensive testing and development
of the Pallet. The Company contracted with substrate component testing engineers
in the Akron,  Ohio area who performed the primary series of component  testing.
The  Company's  development  focus is to ensure that the Pallet meets or exceeds
current market standards and that the Pallet will be superior in performance and
will be cost  effective  to  produce  and sell.  In  particular,  the  Company's
development focuses on the safety, structural integrity,  reliability,  and cost
effectiveness of the Pallet,  involving  in-depth analysis of compound variables
and  strengths,  extrusion  methods  and  equipment  modifications.  The Company
believes  that after  extensive  studies and  refinement,  it has  minimized  or
eliminated  any concerns as to the Pallet's  design and ability to perform.  The
Company  plans to  conduct  further  testing  which  it  believes  will  provide
information  as to the longevity of the Pallet  compared to other  materials and
provide  marketing  strategies for the Company.  Analysis to date indicates that
the Company's  standard  48-inch by 40-inch Pallet will surpass current hardwood
and plastic  pallet  performance  and will be a strong  competitor in the pallet
industry worldwide.

     On November 16, 1999, the Company and Thermoplastic Composite Designs, Inc.
("TCD"),  entered into a  product/technology  development contract in connection
with TCD's  assisting  the Company in modifying  earlier  versions of the Pallet
design.  TCD is a composite  systems  engineering  and design  corporation.  The
contract required TCD to deliver a Pallet that would meet design  specifications
including:  48-inch by 40-inch dimension;  a maximum weight  requirement;  and a
target substrate  composition.  The contract also provided that TCD would supply
the appropriate  engineered mold for the Company's  first  production  facility.
This first  generation mold was available to produce  finished  product in April
2000. The Company's  payments under this contract  totaled  $50,800 in 1999, and
$70,000  in 2000  to  date,  with  another  $13,000  remaining  to be paid  upon
completion  of the  contract.  The  Company is in the  completion  stage on this
contract.  Finished  Pallet product is scheduled for  distribution  to potential
customers for in-use evaluation during the second quarter of 2000.

                                       16

<PAGE>



     Anticipated Revenue Sources; Marketing and Distribution

     The Company  plans to generate  revenues  from  national and  international
licensing  agreements and royalty  agreements  based on units of production.  As
opportunities present themselves,  the Company will also consider developing and
operating  its own  manufacturing  facilities.  In  December  1999,  the Company
announced  that it had  received a letter of intent from  Cultech  International
Corporation to  manufacture  and market the Pallet in Asia.  Cultech  intends to
obtain  exclusive  manufacturing  and marketing  rights to the Pallet for all of
Asia. The terms of the letter of intent provide that the Company will deliver to
Cultech a  manufacturing  system that will enable Cultech to produce one million
Pallets  per  year.  The  parties  have  also  agreed in  principle  that,  once
engineering studies are satisfactorily completed, the parties will enter into an
agreement whereby Cultech will make payments to the Company including  licensing
fees and royalty payments based on units of Pallet production.

     In March 2000, the Company  announced that it had received a production and
marketing  letter of intent  from  Bryan  Container  Company,  located in Bryan,
Texas.  Bryan  intends to become  the first  U.S.-based  licensee  to market the
Company's Pallet.  Bryan,  which  manufactures  large container lids among other
container  products,  plans to modify its  production  site to  accommodate  the
necessary  changes to incorporate  the Pallet  manufacturing  system,  using the
Company's custom Pallet molds. Also in March 2000, the Company announced that it
had  received a production  and  marketing  letter of intent from  International
Pallets of  California.  The letter of intent  provides for the parties to enter
into a formal agreement that will allow International Pallets to produce, market
and sell the Pallet in California and Nevada. The formal agreement would include
provisions providing for International  Pallets to pay a license fee and royalty
payments to the Company.

     Employees

     The Company  currently  has four  full-time  employees.  Management  of the
Company  anticipates using consultants for business,  accounting and engineering
services on an as-needed basis.  Management does not currently anticipate making
any significant changes to the Company's employee headcount.

                                       17

<PAGE>



                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

         None.


Item 2.  Changes in Securities

         Recent Sales of Unregistered Securities

     Since January 1, 2000,  the Company sold the following  securities  without
registration under the Securities Act of 1933 in reliance on the exemptions from
registration  requirements  cited.  The share  amounts and prices shown have not
been adjusted to take into account the Company's  2-for-1 stock split,  effected
in the form of a 100% stock  dividend,  payable March 6, 2000 to shareholders of
record as of the close of business on March 1, 2000.

     On or about February 18, 2000, the Company sold 154,669 shares of its $.001
par value common  stock for $1.50 per share.  The shares were issued in reliance
upon the exemption  from the  registration  requirements  of the  Securities Act
specified  by  the   provisions   of   Regulation  S   promulgated   thereunder.
Specifically,  the  offer and sale was made to  "non-U.S.  persons  outside  the
United States of America" as set forth in  Regulation S. The offering  price for
the shares was arbitrarily established by the Company and had no relationship to
assets, book value, revenues or other established criteria of value. The Company
realized proceeds of $232,000. The proceeds of the offering were used to pay for
operating costs and provide working  capital.  There were no commissions paid on
this transaction.

     On or about  February 18, 2000, the Company sold 17,000 shares of its $.001
par value common stock for $1.50 per share. These shares were sold to accredited
investors  in reliance on Section  4(2) of the  Securities  Act. The shares were
issued in a private  placement  and are  therefore  restricted  securities  that
cannot be resold unless they are  registered or unless a further  exemption from
registration  is available for their resale.  The offering  price for the shares
was  arbitrarily  established by the Company and had no  relationship to assets,
book  value,  revenues  or other  established  criteria  of value.  The  Company
realized proceeds of $25,500.  The proceeds of the offering were used to pay for
operating costs and provide working  capital.  There were no commissions paid on
this transaction.


Item 3.  Defaults Upon Senior Securities

         None.

                                       18

<PAGE>


Item 4.  Submission of Matters to Vote of Security Holders

         None.


Item 5.  Other Information

     On March 6, 2000, the Company  effected a 2-for-1 stock split,  in the form
of a 100% stock  dividend,  payable to shareholders of record as of the close of
business  on  March  1,  2000.  This  increased  the  number  of  common  shares
outstanding as of March 7, 2000, from 5,544,739 shares to 11,089,478 shares.


Item 6.  Exhibits and Reports on Form 8-K

     (a)  Exhibits

     3.1  Company's  Articles  of  Incorporation,  as amended  October  12, 1999
          (incorporated  herein by  reference  to Exhibit  3.1 to the  Company's
          Annual  Report on Form 10-KSB for the year ended  December  31,  1999,
          filed with the Commission on April 7, 2000).

     3.2  Company's  By-laws  (incorporated  herein by reference to Exhibit 3 to
          the  Company's  Registration  Statement  on Form 10-SB  filed with the
          Commission on May 14, 1999,  Registration  No.  000-26095  ("Company's
          Form 10-SB")).

     10.1 General  Assignment of Assets of the Rubber Mold Technology,  dated as
          of December  15,  1998,  between  Real  Morel,  as  Assignor,  and the
          Company, as Assignee (incorporated herein by reference to Exhibit 4 to
          Company's Form 10-SB).

     10.2 Promissory Notes Executed by the Company in Favor of Real Morel, dated
          as of December 15, 1998, December 15, 1998, August 18, 1998, September
          24, 1998 and  November 16, 1998  (incorporated  herein by reference to
          Exhibit 5 to Company's Form 10-SB).

     10.3 Management Services  Agreement,  dated as of November 1, 1998, between
          Susan Westfall, as Contractor, and the Company (incorporated herein by
          reference to Exhibit 6 to Company's Form 10-SB).

     10.4 Management Services  Agreement,  dated as of November 1, 1998, between
          Madelyn Thomas, as Contractor, and the Company (incorporated herein by
          reference to Exhibit 7 to Company's Form 10-SB).

     27   Financial Data Schedule

                                       19

<PAGE>


     (b)  Reports on Form 8-K

     No reports on Form 8-K were filed by the  Company  during the three  months
ended March 31, 2000.

                                       20

<PAGE>



                                   SIGNATURES

     In accordance with the requirements of the Exchange Act, the Registrant has
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Henderson, Nevada, on May 10, 2000.


                                        ENVIROKARE TECH, INC.
                                        Registrant

                                        By: /s/ JEANNIE M. RUNNALLS
                                            ------------------------------------
                                            Name:  Jeannie M. Runnalls
                                            Title: President and Director
                                                   (Principal Executive Officer
                                                   and Principal Financial and
                                                   Accounting Officer)

                                       21

<PAGE>


Exhibit
Number       Description of Document

3.1          Company's  Articles of  Incorporation,  as amended October 12, 1999
             (incorporated  herein by reference to Exhibit 3.1 to the  Company's
             Annual Report on Form 10-KSB for the year ended  December 31, 1999,
             filed with the Commission on April 7, 2000).

3.2          Company's By-laws (incorporated herein by reference to Exhibit 3 to
             the Company's  Registration  Statement on Form 10-SB filed with the
             Commission on May 14, 1999,  Registration No. 000-26095 ("Company's
             Form 10-SB")).

10.5         General  Assignment of Assets of the Rubber Mold Technology,  dated
             as of December 15, 1998,  between Real Morel, as Assignor,  and the
             Company, as Assignee (incorporated herein by reference to Exhibit 4
             to Company's Form 10-SB).

10.6         Promissory  Notes  Executed  by the Company in Favor of Real Morel,
             dated as of December 15, 1998,  December 15, 1998, August 18, 1998,
             September  24, 1998 and November 16, 1998  (incorporated  herein by
             reference to Exhibit 5 to Company's Form 10-SB).

10.7         Management  Services  Agreement,  dated  as of  November  1,  1998,
             between   Susan   Westfall,   as   Contractor,   and  the   Company
             (incorporated  herein by reference  to Exhibit 6 to Company's  Form
             10-SB).

10.8         Management  Services  Agreement,  dated  as of  November  1,  1998,
             between   Madelyn   Thomas,   as   Contractor,   and  the   Company
             (incorporated  herein by reference  to Exhibit 7 to Company's  Form
             10-SB).

27           Financial Data Schedule