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                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB



               Quarterly Report Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934


For the Quarter Ended March 31, 2001                Commission File No. 0-28073


                         GALLAGHER RESEARCH CORPORATION
              ----------------------------------------------------
             (Exact name of Registrant as specified in its charter)


                  NEVADA                                     84-0920934
       -------------------------------                -----------------------
       (State or other jurisdiction of                (I.R.S. Empl. Ident. No.)
       incorporation or organization)


          12373 E. Cornell Avenue
             Aurora, Colorado                                    80014
---------------------------------------                         --------
(Address of Principal Executive Offices)                       (Zip Code)


                                 (303) 337-3384
               --------------------------------------------------
              (Registrant's Telephone Number, including Area Code)


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 such shorter period that the Registrant was required
to file such reports), and (2) has been subject to such filing requirements for
at least the past 90 days.

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

The number of shares outstanding of each of the Registrant's classes of common
equity, as of March 31, 2001 are as follows:


     Class of Securities                                 Shares Outstanding
-----------------------------                            ------------------
Common Stock, $.001 par value                                4,768,000


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                                TABLE OF CONTENTS

                                                                       Page of
                                                                        Report
                                                                        ------

            PART I.        FINANCIAL INFORMATION


Item 1.     Financial Statements.

            Balance Sheets:

            As of March 31, 2001 (Unaudited) and December 31, 2000 .....    3

            Statements of Operations (Unaudited):

            For the three months ended March 31, 2001 and 2000..........    4

            Statements of Cash Flows (Unaudited):

            For the three months ended March 31, 2001 and 2000..........    5

            Notes to Financial Statements (Unaudited) ..................    6

Item 2.     Management's Discussion and Analysis or Plan of Operation ..    7


            PART II.       OTHER INFORMATION


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

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



                                       2
<PAGE>


                          GALLAGHER RESEARCH CORPORATION
                                 Balance Sheets


                                     ASSETS

                                                      March 31,     December 31,
                                                        2001            2000
                                                      ---------     ------------
                                                     (Unaudited)

Total assets                                          $    --         $    --
                                                      =========       =========


                     LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
    Accounts payable                                  $   1,337       $    --
    Due to officers/stockholders                          7,203           7,203
                                                      ---------       ---------
                                                          8,540           7,203
                                                      ---------       ---------

Stockholders' deficit:
    Preferred stock; $.001 par value; authorized -
      5,000,000 shares; issued - none                      --              --
    Common stock; $.001 par value; authorized -
      50,000,000 shares; issued and outstanding -
      4,768,000 shares                                      477             477
    Additional paid-in capital                              835             835
    Retained earnings (deficit)                          (9,852)         (8,515)
                                                      ---------       ---------
        Total stockholders' deficit                      (8,540)         (7,203)
                                                      ---------       ---------

                                                      $    --         $    --
                                                      =========       =========


                 The accompanying notes are an integral part of
                           the financial statements.

                                       3

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                         GALLAGHER RESEARCH CORPORATION
                      Statements of Operations (Unaudited)


                                                        Three Months Ended
                                                             March 31,
                                                    ---------------------------
                                                        2001            2000
                                                    -----------     -----------

Costs and expenses:
   General and administrative                       $     1,337     $     1,345
                                                    -----------     -----------

Net loss                                            $    (1,337)    $    (1,345)
                                                    ===========     ===========

Loss per common share                               $     (.000)    $     (.000)
                                                    ===========     ===========

Weighted average shares outstanding                   4,768,000       4,768,000
                                                    ===========     ===========


                 The accompanying notes are an integral part of
                            the financial statements.

                                       4


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                         GALLAGHER RESEARCH CORPORATION
                      Statements of Cash Flows (Unaudited)


                                                            Three Months Ended
                                                                 March 31,
                                                           --------------------
                                                             2001        2000
                                                           --------     -------

Cash flows from operating activities:
    Net loss                                               $(1,337)     $(1,345)
    Adjustments to reconcile net loss to net
     cash provided by operating activities:
     Changes in assets and liabilities:
       Increase (decrease) in accounts payable               1,337        1,345
       Increase (decrease) in amounts due
         to officers/stockholders                             --           --
                                                           -------      -------
       Net cash used in operating activities                  --           --
                                                           -------      -------

Cash flows from investing activities:
     Organization costs                                       --           --
                                                           -------      -------
       Net cash used in investing activities                  --           --
                                                           -------      -------

Cash flows from financing activities:
     Proceeds from sale of common stock                       --           --
                                                           -------      -------
       Net cash provided by financing activities              --           --
                                                           -------      -------

Net increase (decrease) in cash                               --           --
Cash at beginning of year                                     --           --
                                                           -------      -------

Cash at end of period                                      $  --        $  --
                                                           =======      =======


                  The accompanying ntoes are an integral part
                          of the financial statements.

                                       5


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                         GALLAGHER RESEARCH CORPORATION
                    Notes to Financial Statements (Unaudited)


Note 1 - Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance
with the instructions to Form 10-QSB and do not include all of the information
and disclosures required by generally accepted accounting principles for
complete financial statements. All adjustments which are, in the opinion of
management, necessary for a fair presentation of the results of operations for
the interim periods have been made and are of recurring nature unless otherwise
disclosed herein. The results of operations for such interim periods are not
necessarily indicative of operations for a full year.

                                       6

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                           FORWARD-LOOKING STATEMENTS

     This report contains certain forward-looking statements and information
relating to Gallagher Research Corporation ("GRC" or "Company") that are based
on the beliefs of its management as well as assumptions made by and information
currently available to its management. When used in this report, the words
"anticipate", "believe", "estimate", "expect", "intend", "plan" and similar
expressions, as they relate to GRC or its management, are intended to identify
forward-looking statements. These statements reflect management's current view
of GRC concerning future events and are subject to certain risks, uncertainties
and assumptions, including among many others: a general economic downturn; a
downturn in the securities markets; a general lack of interest for any reason in
going public by means of transactions involving public blank check companies;
federal or state laws or regulations having an adverse effect on blank check
companies, Securities and Exchange Commission regulations which affect trading
in the securities of "penny stocks," and other risks and uncertainties. Should
any of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those
described in this report as anticipated, estimated or expected. Readers should
realize that GRC has only very limited assets, and that for GRC to succeed
requires that it either originate a successful business (for which it lacks the
funds) or acquire a successful business. GRC's realization of its business aims
as stated herein will depend in the near future principally on the successful
completion of its acquisition of a business, as discussed below.

Item 2. Management's Discussion and Analysis or Plan of Operation.

     BACKGROUND. GRC was incorporated on April 2, 1999, for the purpose of
entering into a merger with and reincorporating its predecessor, Gallagher
Research and Development Company ("Gallagher Colorado"), a Colorado corporation
organized on July 27, 1983 under the name Gallagher Research and Development
Company, Inc. Prior to the October 1998, Gallagher Colorado was an independent
oil and gas service firm that provided geological, geophysical and geochemical
consulting services. Gallagher Colorado has performed consulting projects in
every major producing area within the United States and most of Canada.
Gallagher Colorado has also completed projects in Australia and Pakistan. After
October 1998, Gallagher Colorado determined upon a new business plan to
either acquire a small to medium-size business (or its assets) actively engaged
in a business generating revenues or having immediate prospects of generating
revenues, or to originate a business. GRC has no significant assets and only
modest liabilities.

     GRC owns no real estate and has had no full time employees. GRC has not had
any operations since October 1998 and will not have any operations of its
own unless and until it engages in one or more of the activities described
below. GRC is a "blank check" company which intends to enter into a business
combination with one or more as yet unidentified privately held businesses.

PLAN of OPERATION

     GRC is a blank check company whose plan of operation over the next twelve
months is to seek and, if possible, acquire an operating business or valuable
assets by entering into a business combination. GRC will not be restricted in
its search for business combination candidates to any particular geographical
area, industry or industry segment, and may enter into a combination with a
private business engaged in any line of business, including service, finance,
mining, manufacturing, real estate, oil and gas, distribution, transportation,
medical, communications, high technology, biotechnology or any other.
Management's discretion is, as a practical matter, unlimited in the selection of
a combination candidate. Management of GRC will seek combination candidates in
the United States and other countries, as available time and resources permit,
through existing associations and by word of mouth. This plan of operation has
been adopted in order to attempt to create value for GRC's shareholders. For
further information on GRC's plan of operation and business, please consult
GRC's 10KSB available on the EDGAR system of the U.S. Securities and Exchange
Commission.

     GRC does not intend to do any product research or development. GRC does not
expect to buy or sell any real estate, plant or equipment except as such a
purchase might occur by way of a business combination that is structured as an
asset purchase, and no such asset purchase currently is anticipated. Similarly,
GRC does not expect to add additional employees or any full-time employees
except as a result of completing a business combination, and any such employees
likely will be persons already then employed by the company acquired.

                                       7

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     COMPETITION. GRC will be in direct competition with many entities in its
efforts to locate suitable business opportunities. Included in the competition
will be business development companies, venture capital partnerships and
corporations, small business investment companies, venture capital affiliates of
industrial and financial companies, broker-dealers and investment bankers,
management and management consultant firms and private individual investors.
Most of these entities will possess greater financial resources and will be able
to assume greater risks than those which GRC, with its limited capital, could
consider. Many of these competing entities will also possess significantly
greater experience and contacts than GRC's Management. Moreover, GRC also will
be competing with numerous other blank check companies for such opportunities.

     EMPLOYEES. GRC has no full-time employees, and its only employees currently
are its officers. It is not expected that GRC will have additional full-time or
other employees except as a result of completing a combination.

RESULTS OF OPERATIONS

     FIRST QUARTER 2001 - During the first fiscal quarter ended March 31, 2001,
GRC incurred a net loss of $1,337. Expenses in the quarter related primarily to
miscellaneous filing fees and accounting costs. The Company paid no rent or
salaries and had no operations.

     FIRST QUARTER 2000 - During the first fiscal quarter ended March 31, 2000,
GRC incurred a net loss of $1,345. Expenses in the quarter related primarily to
miscellaneous filing fees. The Company paid no rent or salaries and had no
operations during the quarter.

LIQUIDITY and CAPITAL RESOURCES

     GRC had $-0- cash on hand at the end of the quarter and had no other assets
to meet ongoing expenses or debts that may accumulate. Since inception, GRC has
accumulated a deficit (net loss) of $9,852.

     GRC has no commitment for any capital expenditure and foresees none.
However, GRC will incur routine fees and expenses incident to its reporting
duties as a public company, and it will incur expenses in finding and
investigating possible acquisitions and other fees and expenses in the event it
makes an acquisition or attempts but is unable to complete an acquisition. GRC's
cash requirements for the next twelve months are relatively modest, principally
accounting expenses and other expenses relating to making filings required under
the Securities Exchange Act of 1934 (the "Exchange Act"), which should not
exceed $7,500 in the fiscal year ending December 31, 2001. Any travel, lodging
or other expenses which may arise related to finding, investigating and
attempting to complete a combination with one or more potential acquisitions
could also amount to thousands of dollars.

     GRC's current management and its counsel have informally agreed to continue
rendering services to GRC and to not demand payment of sums owed unless and
until GRC completes an acquisition. The terms of any such payment will have to
be negotiated with the principals of any business acquired. The existence and
amounts of GRC debt may make it more difficult to complete, or prevent
completion of, a desirable acquisition. In addition, offices are provided to GRC
without charge.

                                        8

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     GRC will only be able to pay its future debts and meet operating expenses
by raising additional funds, acquiring a profitable company or otherwise
generating positive cash flow. As a practical matter, GRC is unlikely to
generate positive cash flow by any means other than acquiring a company with
such cash flow. GRC believes that management members or shareholders will loan
funds to GRC as needed for operations prior to completion of an acquisition.
Management and the shareholders are not obligated to provide funds to GRC,
however, and it is not certain they will always want or be financially able to
do so. GRC shareholders and management members who advance money to GRC to cover
operating expenses will expect to be reimbursed, either by GRC or by the company
acquired, prior to or at the time of completing a combination. GRC has no
intention of borrowing money to reimburse or pay salaries to any GRC officer,
director or shareholder or their affiliates. There currently are no plans to
sell additional securities of GRC to raise capital, although sales of securities
may be necessary to obtain needed funds. GRC's current management and its
counsel have agreed to continue their services to GRC and to accrue sums owed
them for services and expenses and expect payment reimbursement only.

     Should existing management or shareholders refuse to advance needed funds,
however, GRC would be forced to turn to outside parties to either loan money to
GRC or buy GRC securities. There is no assurance whatever that GRC will be able
at need to raise necessary funds from outside sources. Such a lack of funds
could result in severe consequences to GRC, including among others:

     (1)  failure to make timely filings with the SEC as required by the
          Exchange Act, which also probably would result in suspension of
          trading or quotation in GRC's stock and could result in fines and
          penalties to GRC under the Exchange Act;

     (2)  curtailing or eliminating GRC's ability to locate and perform suitable
          investigations of potential acquisitions; or

     (3)  inability to complete a desirable acquisition due to lack of funds to
          pay legal and accounting fees and acquisition-related expenses.

     GRC hopes to require potential candidate companies to deposit funds with
GRC that it can use to defray professional fees and travel, lodging and other
due diligence expenses incurred by GRC's management related to finding and
investigating a candidate company and negotiating and consummating a business
combination. There is no assurance that any potential candidate will agree to
make such a deposit.

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

             (a)      EXHIBITS.  None

             (b)      REPORTS ON FORM 8-K.  None

                                       9

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                                   SIGNATURES

     In accordance with the requirements of the Exchange Act, the Registrant
caused this Report on Form 10-QSB to be signed on its behalf by the undersigned,
thereunto duly authorized.


DATED:  April 3, 2001

                                    GALLAGHER RESEARCH CORPORATION


                                           /s/ Stephen M. Siedow
                                    By..........................................
                                           Stephen M. Siedow, Chief Executive
                                           Officer and Chief Financial Officer


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