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

                                   FORM 10-QSB

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

                  For the quarterly period ended June 30, 2001

          ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                         Commission File Number 0-12746

                              Hart Industries, Inc.
                       (Name of registrant in its charter)

                    Nevada                              33-0661675
            (State of incorporation)       (I.R.S. Employer Identification No.)


                          21031 Ventura Blvd. Suite 520
                        Woodland Hills, California 91364
                                 (818) 702-7900
   (Address and telephone number of principal executive offices and principal
                               place of business)
                                ----------------

           Securities registered pursuant to Section 12(b) of the Act:

                                      None
                                ----------------

           Securities registered pursuant to Section 12(g) of the Act:
                          Common Stock, par value $0.01

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes  X          No

As of June 30, 2001, there were 31,875,990 shares of the registrant's Common
Stock issued and outstanding.


<PAGE>


                      HART INDUSTRIES, INC. AND SUBSIDIARY
                                      INDEX

                                                                            Page
                                     PART I

Item 1.   Financial Statements

          Consolidated Balance Sheets as of June 30, 2001 (Unaudited)
          and December 31, 2000 ...............................................1

          Consolidated Statements of Operations for the three and
          six months ended June 30, 2001 and June 30, 2000
          (unaudited)......................................................... 2

          Consolidated Statements of Cash Flows for the three and
          six months ended June 30, 2001 and June 30, 2000
          (unaudited)......................................................... 3

          Notes to Consolidated Financial Statements ......................... 4

Item 2.   Managements Discussion and Analysis of Financial Condition
          And Results of Operations .......................................... 6

                                     PART II

Item 1.  Legal Proceedings ................................................... 8

Item 2.  Changes In Securities ............................................... 8

Item 3.  Defaults Upon Senior Securities 1 ................................... 8

Item 4.  Submission Of Matters To A vote Of Security Holders ................. 8

Item 5.  Other Information ................................................... 8

Item 6.  Exhibits and Reports on Form 8-K .................................... 9

         Signatures ......................................................... 10







                                        i


<PAGE>
                  HART INDUSTRIES, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>

                                     ASSETS
                                                    June 30, 2001  December 31,
                                                     (Unaudited)      2000
                                                    -------------  ------------
<S>                                                  <C>            <C>
CURRENT ASSETS
   Cash                                              $     48,028   $    16,857
   Short-term investments                                  53,262        51,786
   Accounts receivable                                      8,625        22,775
   Inventory                                               35,215        31,076
   Prepaid expenses                                        11,856             -
                                                     -------------  ------------
     Total Current Assets                                 156,986       122,494
                                                     -------------  ------------

PROPERTY AND EQUIPMENT, NET                             3,825,971     3,925,127
                                                     -------------  ------------

OTHER ASSETS
   Restricted cash                                              -         8,122
   Loans receivable - related parties                     166,783       165,809
   Security deposits                                      265,950       265,950
                                                     -------------  ------------
     Total Other Assets                                   432,733       439,881
                                                     -------------  ------------

TOTAL ASSETS                                         $  4,415,690   $ 4,487,502
------------                                         =============  ============

                LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)

CURRENT LIABILITIES
   Cash overdraft                                    $    130,264   $    53,467
   Accounts payable and accrued expenses                  856,143     1,040,737
   Lines of credit                                         94,812        45,370
   Notes and loans payable                                 65,462        99,765
   Loans payable - related company                              -     3,130,388
   Loan payable - stockholders                          1,350,526             -
   Capital lease obligations - current portion             75,891        61,816
                                                     -------------  ------------
     Total Current Liabilities                          2,573,098     4,431,543

LONG TERM LIABILITIES
   Capital lease obligations                              176,168       194,811
                                                     -------------  ------------

TOTAL LIABILITIES                                       2,749,266     4,626,354
-----------------                                    -------------  ------------

STOCKHOLDERS' EQUITY (DEFICIENCY)
  Common stock, $.01 par value, 50,000,000
    shares authorized, 31,875,990 and 24,892,500
    shares issued and outstanding, respectively           318,760       248,925
  Treasury stock, at cost 21,864 shares                   (28,270)            -
  Additional paid in capital                           12,983,701     9,547,225
  Accumulated deficit                                 (11,591,167)   (9,918,402)
                                                     -------------  ------------
                                                        1,683,024      (122,252)
  Less subscriptions receivable                           (16,600)      (16,600)
                                                     -------------  ------------

     Total Stockholders' Equity (Deficiency)            1,666,424      (138,852)
                                                     -------------  ------------

TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY (DEFICIENCY)                             $  4,415,690   $ 4,487,502
------------------------------------------------     =============  ============
</TABLE>


          See accompanying notes to consolidated financial statements.

                                       1

<PAGE>


                      HART INDUSTRIES, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF operations
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                           For           For           For           For
                                         the Three     the Three     the Six       the Six
                                       Months Ended  Months Ended  Months Ended  Months Ended
                                         June 30,      June 30,      June 30,      June 30,
                                           2001          2000         2001          2000
                                       ------------  ------------  ------------  ------------
<S>                                    <C>           <C>           <C>           <C>
NET SALES                              $   388,552   $    42,387   $   992,460   $   161,491

COST OF SALES                              507,535        36,533       678,278        77,236
                                       ------------  ------------  ------------  ------------

GROSS (LOSS) PROFIT                       (118,983)        5,854       314,182        84,255

SELLING, GENERAL AND ADMINISTRATIVE      1,323,798       730,917     2,370,440     1,106,702
                                       ------------   -----------  ------------  ------------

LOSS FROM OPERATIONS                    (1,442,781)     (725,063)   (2,056,258)   (1,022,447)
                                       ------------  ------------  ------------  ------------

OTHER INCOME (EXPENSE)
  Interest income                              721             -         1,519           540
  Interest expense                          (4,469)       (1,165)      (25,065)         (318)
  Loss on disposal of assets                     -             -        (5,000)            -
  Proceeds from sale of investments,
    net of cost and expenses                96,567             -       693,249             -
                                       ------------  ------------  ------------  ------------
    Total Other Income (Expense)            92,819        (1,165)      664,703           222
                                       ------------  ------------  ------------  ------------

NET LOSS                               $(1,349,962)  $  (726,228)  $(1,391,555)   (1,022,225)
--------                               ============  ============  ============  ============

Net loss per common share and
  equivalents - basic and diluted      $     (0.04)  $     (0.03)  $     (0.04)        (0.04)
                                       ============  ============  ============  ============

Weighted average number of shares
  outstanding during period -
  basic and diluted                     31,875,990    24,522,437    31,850,198    24,020,860
                                       ============  ============  ============  ============
</TABLE>

          See accompanying notes to consolidated financial statements.

                                        2

<PAGE>

                      HART INDUSTRIES, INC. AND SUBSIDIARY
                            STATEMENTS OF cash flows
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                    For the Six    For the Six
                                                   Months Ended   Months Ended
                                                   June 30, 2001  June 30, 2000
                                                   -------------  -------------
<S>                                                 <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                          $(1,391,555)   $(1,022,225)
  Adjustments to reconcile net (loss)
   to net cash (used in) operating activities:
     Depreciation                                       151,758         60,330
     Gain on sale of investments                       (693,249)             -
     Loss on asset disposal                               5,000              -
  Changes in assets and liabilities
    (Increase) decrease in:
      Accounts receivable                                14,150              -
      Prepaid expenses                                    2,588              -
      Inventory                                          (4,139)             -
     Increase (decrease) in:
      Accounts payable and accrued expenses            (129,744)       465,291
      Cash overdraft                                     76,797         (4,799)
                                                    ------------  -------------
        Net Cash (Used In) Operating Activities      (1,968,394)      (501,403)
                                                    ------------  -------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property and equipment                    (60,639)    (1,722,102)
  Deposits                                                    -        (33,000)
  Sale costs of investments                            (216,383)             -
  Proceeds from sale of investments                     908,156              -
  Due from officers                                        (974)        54,875
  Restricted cash                                         8,122              -
                                                    ------------  -------------
        Net Cash Provided By (Used In)
          Investing Activities                          638,282     (1,700,227)
                                                    ------------  -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Due from stockholders                               1,350,526              -
  Payments on lines of credit                            (8,002)             -
  Purchase of treasury stock                            (28,270)             -
  Payments on notes payable                             (34,303)        (3,924)
  Payments on capital lease                              (4,568)        (1,770)
  Loan from related company                                   -        791,427
  Purchase of treasury stock                                  -              -
  Proceeds from line of credit                           43,000              -
  Proceeds from stock sale, net                          42,900      1,498,116
                                                    ------------  -------------
        Net Cash Provided By Financing Activities     1,361,283      2,283,849
                                                    ------------  -------------

INCREASE IN CASH AND CASH EQUIVALENTS                    31,171         82,219

 CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD         16,857         71,693
                                                    ------------   ------------

CASH AND CASH EQUIVALENTS - END OF PERIOD           $    48,028    $   153,912
-----------------------------------------           ============   ============

Cash paid during the year for:
  Interest                                          $    25,065    $         -
                                                    ============   ============
</TABLE>

          See accompanying notes to consolidated financial statements.

                                        3
<PAGE>


                      HART INDUSTRIES, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               AS OF JUNE 30, 2001


NOTE 1  BASIS OF PRESENTATION

        The accompanying unaudited consolidated financial statements have been
        prepared in accordance with generally accepted accounting principles and
        the rules and regulations of the Securities and Exchange Commission for
        interim financial information. Accordingly, they do not include all the
        information necessary for a comprehensive presentation of financial
        position and results of operations.

        It is management's opinion, however that all material adjustments
        (consisting of normal recurring adjustments) have been made which are
        necessary for a fair financial statements presentation. The results for
        the interim period are not necessarily indicative of the results to be
        expected for the year.

        For further information, refer to the financial statements and footnotes
        for the year ended December 31, 2000 included in the Company's Form
        10-KSB filed March 15, 2001.

NOTE 2  INVESTMENTS

        The Company accounts for investments in accordance with Statement of
        Financial Accounting Standards No. 115 "Accounting for Certain
        Investments in Debt and Equity Securities." The Company classifies
        investments as available-for-sale securities which are carried at their
        fair value based upon the quoted market prices for those investments.

        In the fourth quarter of 2000 Holoworld, Inc. pursuant to an investment
        strategy, entered into agreements to purchase shares of Hart industries
        from seven shareholders of Hart Industries. Pursuant to those
        agreements, Holoworld ultimately purchased 231,248 shares of Hart
        Industries common stock. During the first Quarter of 2001 Holoworld
        resold 209,384 Hart Industries shares for a total amount of $908,156.
        After costs and expenses Holoworld realized a net gain on these
        investment transactions of $693,249. Holoworld completed all such
        transactions prior to the acquisition of Holoworld assets by Hart
        Industries.

NOTE 3  LINE OF CREDIT

        During the three months ended June 30, 2001, the Company entered into a
        line of credit agreement for $57,333. The Company has pledged 11% of all
        future accounts receivable earned as repayment of the line of credit
        until the balance is paid in full. The loan has a fixed interest fee
        of $14,333 that is being amortized over the length of the repayments on
        the line of credit.

NOTE 4  INVENTORIES

        Inventories consist of food products and items used in the store's
        prize counters.  Inventories are started out at the lower of cost or
        market value, as determined using the first in, first out method.


                                       4
<PAGE>

                      HART INDUSTRIES, INC. AND SUBSIDIARY
              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
                               AS OF JUNE 30, 2001


NOTE 5  GOING CONCERN

        As reflected in the accompanying financial statements, the Company's
        recurring losses aggregating $11,591,167 and working capital deficiency
        of $2,416,112 raise substantial doubt about its ability to continue as a
        going concern. The ability of the Company to continue as a going concern
        is dependent on the Company's ability to raise additional capital and
        implement its business plan. The financial statements do not include any
        adjustments that might be necessary if the Company is unable to continue
        as a going concern.

        The Company has continued to develop new locations with the intent to
        open additional restaurants and to increase the marketability of its
        products. The Company also intends to raise additional equity capital
        during 2001. Management believes that actions presently taken to obtain
        additional funding provide the opportunity for the Company to continue
        as a going concern.

NOTE 6  SUBSEQUENT EVENT

        During July 2001, the Board of Directors authorized a 5 for 1 stock
        split. All capital stock shares and amounts and per share data have been
        retroactively restated to reflect the stock split.

        During July 2001, the Board of Directors approved the change in the
        Company's name from Hart Industries, Inc. to H-Entertainment, Inc. to
        more accurately reflect the current operations of the Company. The name
        change will be effective on August 24, 2001.


                                       5
<PAGE>


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

General:

CAUTIONARY STATEMENT REGARDING "FORWARD LOOKING STATEMENTS". Statements
contained in this quarterly report that are not based on historical fact,
including without limitation statements containing the words "believe," "may,"
"will," "estimate," "continue," "anticipate," "intend," "expect" and similar
words, constitute "forward-looking statements". These forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause
the actual results, events or developments to be materially different from any
future results, events or developments expressed or implied by such
forward-looking statements. These factors include, among others, the following:
general economic and business conditions, both nationally and in the regions in
which we operate; technology changes; the competition we face; changes in our
business strategy or development plans; the high leverage of HRII; our ability
to attract and retain qualified personnel; existing governmental regulations and
changes in, or our failure to comply with, governmental regulations; liability
and other claims asserted against us; it's our ability or the ability of our
third-party suppliers to take corrective action in a timely manner with respect
to changing government regulations; and other factors referenced in our filings
with the Securities and Exchange Commission.

GIVEN THESE UNCERTAINTIES, READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON
FORWARD-LOOKING STATEMENTS. Other than as required by law, we disclaim any
obligation to update information concerning the factors mentioned above or to
publicly announce the result of any revisions to any of the forward-looking
statements contained herein to reflect future results, events or developments.

Pursuant to an Asset Purchase Agreement (the "Agreement") and its contemplated
transaction that closed March 9, 2001 (the "Closing"), Company, through its
wholly-owned subsidiary Holoworld Acquisition Corporation, a Nevada corporation
("HAC"), acquired all of the assets and properties of Holoworld, Inc., a
Delaware corporation ("Holoworld, Inc.") and Alisocor, LLC, a California limited
liability company ("Alisocor" and, together with Holoworld, Inc., referred to
collectively as "Holoworld") currently used or useful in the conduct of the
Holoworld business (the "Business") in exchange for the delivery by HAC of
twenty-five million (25,000,000) shares of common stock, as adjusted for the
stock split of the Company (the "Acquisition Shares"). As a result, Holoworld
gained control of HRII, and will continue to have control until such time as the
Acquisition Shares are registered by the Company with the SEC for delivery to
the individual entity owners of Holoworld through a liquidating distribution,
after which Holoworld, Inc. and Alisocor will be dissolved. The Agreement was
designed to effect the reorganization of Holoworld into a publicly reporting
company through the exchange of not less than ninety percent (90%) of the total
issued and outstanding shares of HRII's Common Stock as of the date of the
Closing of the transaction, before giving effect to the exercise of any HRII
options after the effective date of the Asset Purchase Agreement but prior to
the Closing, for all of the combined business and assets of Holoworld.


                                        6


<PAGE>


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

Consequently, the presentation of the Company's consolidated financial
statements for the period ended June 30, 2001 reflects the combined financial
statements of the Company and Holoworld.  The transaction was treated as a
recapitalization of the Company for accounting purposes and reflects the
historical financial statements of Holoworld.

Results of Operations:

Results of Operations: The Company is a holding company, and we expect to cause
our restaurant operations to be conducted by one or more wholly owned
subsidiaries, including HAC. The business of HAC is that which Holoworld had
previously conducted, and currently we are operating a Holoworld Cafe in Denver,
Colorado. Total revenues for the 2nd quarter ending June 30,2001 were $388,552
compared to $42,387 revenues for the quarter ended June 30, 2000. The revenues
were attributable to opening of its new location in Denver and its operations
in Denver, Colorado in the year 2001 compared to the company's R&D
site in Pasadena, California in year 2000. The Denver Entertainment District is
still in the development stage and has not developed more than 50% of its space.
The theater has been reporting more than 600,000 ticket sales for the year and
the rest of the mall generates 2.5 million customers. Holoworld Cafe in Denver
is now attracting approximately 8,000 customers every month that averages out to
96,000 customers a year. As Holoworld Cafe is a new name, it is important to
develop a brand name. The declines in sales for the second quarter were due to
the lack of advertising in the first quarter all through to June 30, 2001 and
due to the construction all around the area, which limits the customers from
coming to the area. The Company believes that revenues can show significant
growth with a combination of aggressive advertising and the winter season. It is
also important that advertising is considered as an important source of delivery
of message for Holoworld Cafe until the mall has developed a bigger customer
base. Cost of sales for the period ending June 30, 2001 were $507,535
representing 130.6% compared to $36,533 representing 86.2% for the period ending
June 30, 2000. The comparison is between the operations in Pasadena, California
for the period of 2000 and Denver, CO for the period of 2001. General and
Administrative expenses for the quarter ended June 30, 2001 were $1,323,798
compared to $730,917 for the quarter ended June 30, 2000. The company
experienced significant expenses for its merger and acquisition with Holoworld.
Secondly, the development and construction for the Denver location took longer
than projected due to financial constraints causing extra debt, which was also a
factor during this quarter. During the quarter the company realized nonrecurring
income as a result of investing activity in the purchase and sale of investment
securities. Proceeds from such activities were $96,567 which represented 20% of
total income for the Quarter, and a net loss of approximately $1,349,962 which
represented 280.4% of sales for the Quarter. Income from these sources are
nonrecurring and management does not anticipate significant cash flow from such
activities in future periods. Without the nonrecurring income the operations
would have recorded a net loss of approximately $1,446,529. Loss per share for
the quarter was ($.04).

                                       7
<PAGE>

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

Liquidity and Capital Resources

As of June 30, 2001, the Company had a working capital deficit of approximately
$2.4 million, which decreased approximately $1.9 million from year end due
primarily to a conversion of loans payable into common stock. The Company
utilized its equity securities for its working capital needs in the first six
months of 2001. The Company had approximately $48,000 and $17,000
of cash on hand at June 30, 2001 and December 31, 2000, respectively. The
Company received $43,000 from a line of credit and received $1,350,000 from its
stockholders as loan. The limited cash balance is a direct result of the Company
having limited operations during the periods and cost of development stage for
its future additional locations. Currently, the Company has only one location in
Denver, Colorado open. The Company has an immediate need for $1.4 million of
cash to meet its working capital and capital commitment requirements through
December 31, 2001.


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

Going Concern

The Company has experienced recurring net losses, has limited liquid resources,
and negative working capital. The Company's plan is to keep searching for
additional sources of capital, continue development of its other locations and
seek additional potential sites for future locations. Furthermore, the Company
intends to utilize its common stock for future financial support to finance its
needs, primarily through private placements of equity securities. Such
conditions raise substantial doubt about the Company's ability to continue as a
going concern. As such, the Company's independent accountants have modified
their report for the Company's latest fiscal year ended December 31, 2000 to
include an explanatory paragraph with respect to the uncertainty. The Company
has no current commitment for additional equity or debt financing and no
assurances can be made that its working capital needs can be met. Additionally,
as of June 30, 2001, the Company had approximately 100 employees including
officers and directors. Substantially all these employees were located at the
Holoworld Cafe facility in Denver, Colorado.





                                        8



<PAGE>


PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

None.

ITEM 2 - CHANGES IN SECURITIES

None

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

ITEM 5 - OTHER INFORMATION

None

ITEM 6:  EXHIBITS AND REPORTS ON FORM 8-K

         Reports on Form 8-K.       None

         Exhibits                   None

















                                        9


<PAGE>




                                    SIGNATURE

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

                                                    HART INDUSTRIES, INC.


Date:  August 21, 2001                              by: /s/ Sidney Haider
                                                        -----------------
                                                        Sidney Haider
                                                        President and
                                                        Chief Executive Officer















                                       10