UNITED
STATESSECURITIES AND EXCHANGE
COMMISSIONWashington D. C.
20549



FORM 10-QSB



( X ) Quarterly report pursuant to
Section 13 or 15(d) of the Securitiesand
Exchange Act of 1934.



For the quarterly period ended March
31, 2001.



( ) Transition report pursuant to
Section 13 or 15(d) of the Exchange
Actfor the transition period from
_________________ to ____________ .





Commission File Number:
000-28061



URAG
CORPORATION(Exact name of registrant as
specified in charter)





DELAWARE(State of or other jurisdiction
ofincorporation or organization)
Pending(IRS Employer I.D.  No.)






1490 Blue Jay Circle, Weston, FL
33327(Address of Principle Executive
Offices)



(954)
385-2553(Registrant's telephone
number)



Check whether the registrant:  (1) has filed all reports
required to be filed by Section 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 (  )



Indicate the number of shares  outstanding  of each of
the  issuer's  classes of stock as of March 31, 2001.

5,000,000 Common Shares



Transitional Small Business Disclosure Format:



YES ( ) NO (X)



1







URAG CORPORATION



INDEX TO FORM 10-QSB



PART I. FINANCIAL INFORMATION
PageItem 1. Financial Statements (unaudited)Balance Sheets as of March 31, 2001 and December
31, 2000
3Statements of Operations for the three months ended
March 31, 2001 and 2000, and the period November 8, 1999 (date of incorporation)
to March 31, 2001
4Statement of Stockholder’s Equity (Deficit)
for the three months ended March 31, 2001
5Statements of Cash Flows for the three months ended
March 31, 2001 and 2000, and the period November 8, 1999 (date of incorporation)
to March 31, 2001
6Notes to Financial Statements
7Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (including cautionary
statement)
9PART II.	OTHER INFORMATIONItem 1. Legal Proceedings
10Item 2. Changes in Securities
10Item 3. Defaults Upon Senior Securities
10Item 4. Submission of Matters to a Vote of Securities
Holders
10Item 5. Other Information
10Item 6. Exhibits and Reports on Form 8-K
10Signatures
10




































2



URAG
CORPORATION(A Development Stage
Enterprise)



BALANCE SHEETS AS OF MARCH 31, 2001 AND
DECEMBER 31, 2000





ASSETS
March 31,
2001(Unaudited)

December 31, 2000CURRENT ASSETS-Cash and cash equivalents
$    500

$    500TOTAL
$    500

$    500LIABILITIES AND STOCKHOLDER’S
EQUITY (DEFICIT)CURRENT LIABILITIES - accrued liabilities
$         -

$  1,000STOCKHOLDER'S EQUITY (DEFICIT):Preferred stock - $0.0001 par value;
authorized 5,000,000 common shares; 0 shares issued and outstanding
-

-Common stock - $0.0001 par value;
authorized 20,000,000 common shares; 5,000,000 shares issued and
outstanding
500

500Additional paid-in capital
6,376

5,376Deficit accumulated during the
development stage
(6,376)

(6,376)Total
Stockholder's Equity (Deficit)
500

(500)TOTAL
$     500

$     500




SEE NOTES TO FINANCIAL STATEMENTS.











3







URAG
CORPORATION(A Development Stage
Enterprise)



STATEMENTS OF
OPERATIONS(Unaudited)

Three Months Ended March 31, 2001

Three Months Ended March 31, 2000

For the Period November 8, 1999 (date of incorporation) to
March 31, 2001EXPENSES:Professional and consulting
$                   -

$                 -

$              6,077Organization costs
-

-

299Total Expenses
-

-

6,376NET LOSS
$                   -

$                 -

$           (6,376)Net Loss Per Share-Basic and Diluted
$             (.00)

$             (.00)

$             (.00)Weighted Average Number of Shares
Outstanding
5,000,000

5,000,000

5,000,000






SEE NOTES TO FINANCIAL STATEMENTS.









4





URAG
CORPORATION(A Development Stage
Enterprise)



STATEMENT OF STOCKHOLDER'S EQUITY
(DEFICIT)For the three months ended March 31,
2001(Unaudited)

Common Stock


Additional Paid-In

Deficit Accumulated During the DevelopmentShares

Amount

Capital

Stage

TotalBalances, December 31, 2000

5,000,000

$        500

$      5,376

$        (6,376)

$       (500)Capital contribution





1,000



1,000Net loss for the three months endingMarch 31, 2001







-

-Balances, March 31, 2001

5,000,000

$        500

$      6,376

$        (6,376)

$        500


SEE NOTES TO FINANCIAL STATEMENTS.



















































5





URAG
CORPORATION(A Development Stage
Enterprise)



STATEMENT OF CASH
FLOWS(Unaudited)







For the three months ended March 31, 2001

For the three months ended March 31, 2000

For the period November 8, 1999 (date of incorporation) to
March 31, 2001Cash Flows From Operating Activities:Net loss

$                     -

$                       -

$              (6,376)Adjustment to reconcile net loss to net cash used by operatingactivities – (decrease) increase in accrued
liabilities

(1,000)

-

-Net Cash Used by Operating Activities

(1,000)

-

(6,376)Cash Flows From Financing Activities:Issuance of common stock

-

-

500Capital contributions

1,000

-

6,376Cash Provided by Financing Activities

1,000

-

6,876Net Increase In Cash and Cash Equivalents

-

-

500Cash and Cash Equivalents at Beginning of Period

500

500

-Cash and Cash Equivalents at End of Period

$                500

$                    500

$                   500Supplemental disclosure of cash flow information:Cash Paid For:Interest

$                    0

$                      0

$                    0Income Taxes

$                    0

$                      0

$                    0








SEE NOTES TO FINANCIAL STATEMENTS.











6

URAG
CORPORATION(A Development Stage
Enterprise)



NOTES TO FINANCIAL
STATEMENTS(Unaudited)



NOTE A - FORMATION AND OPERATIONS OF THE COMPANY



Urag Corporation  ("we",  "us",  "our") was incorporated
under the laws of the state  of  Delaware  on  November  8,  1999.  We  are
considered  to be in  the development stage, as defined in Financial  Accounting
Standards Board Statement No. 7, and intend to effect a merger, exchange of
capital stock, asset acquisition or other business combination with a domestic
or foreign private business.  Our planned  principal  operations  have not
commenced, therefore most of our accounting policies and procedures have not yet
been established.



#### USE OF
ESTIMATES



The preparation of financial statements in accordance
with accounting principles generally accepted in the United States of America
requires us to make estimates and assumptions that affect the reported  amounts
of assets and  liabilities  and the  disclosure  of contingent  assets and
liabilities at the date of the financial  statements.  The reported amounts of
revenues and expenses during the reporting  period may be affected by the
estimates we are required to make.  Actual results could differ from our
estimates.



#### BASIS OF
PRESENTATION



Our accompanying unaudited financial statements have
been prepared in accordance with  accounting  principles generally accepted in
the United States of America for interim financial information and the
instructions  to Form  10-QSB  and Rule 10-1 of  Regulation  S-X of the
Securities and Exchange  Commission  (the "SEC").  Accordingly,  these
financial statements  do not include all of the footnotes  required by generally
accepted accounting principles. In our opinion, all adjustments (consisting of
normal  and  recurring   adjustments)   considered   necessary  for  a  fair
presentation  have been included.  Operating  results for the three months ended
March  31,  2001  are not  necessarily  indicative  of the  results  that may be
expected for the year ended December 31, 2001.  The accompanying financial
statements and the notes thereto should be read in conjunction with our audited
financial statements as of and for the year ended December 31, 2000 contained in
our Form 10-KSB.





NOTE B - INCOME TAXES



During the period November 8, 1999 (date of
incorporation) to March 31, 2001, we recognized losses for both financial and
tax reporting purposes. Accordingly, no provision for income taxes and/or
deferred income taxes payable have been provided  for in the  accompanying
financial statements.



At March 31, 2001, we had a net operating loss
carryforward of approximately $6,400 for income tax purposes.  This carryforward
is available to offset future taxable income through the period ended March 31,
2021. The deferred income tax asset arising from this net operating loss
carryforward is not recorded in the accompanying balance sheet because we
established a valuation allowance to fully reserve such asset as its realization
did not meet the required asset recognition standard established by SFAS 109.



7





NOTE C - RELATED PARTY TRANSACTION



Our shareholder has funded, and agreed to continue
funding all of our expenses  until such time as a merger, asset acquisition or
other business combination transaction is effected.  None of these funds
expended on our behalf will be reimbursable to our shareholder; accordingly
payment of these amounts have been, and will continue to be, reflected in our
financial  statements  as contributed capital.



##### NOTE D – NET LOSS PER
SHARE



We compute net loss per share in accordance with SFAS
No. 128  "Earnings per Share"  ("SFAS No.  128") and SEC Staff Accounting
Bulletin No. 98 ("SAB 98"). Under the provisions of SFAS No. 128 and SAB 98,
basic net loss per share is computed by dividing the net loss available to
common stockholders for the period(s) by the weighted average number of common
shares outstanding during such period(s).  Diluted net loss per share is
computed by dividing the net loss for the period(s) by the number of common and
common equivalent shares outstanding during such period(s).  There were no
common equivalent shares outstanding at any time since our inception;
accordingly basic and diluted net loss per share are identical for each of the
periods in the accompanying statements of operations.





































































8





Item 2.



MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS



The  following  discussion  and  analysis  should  be
read in  conjunction  with the balance sheet as of December 31, 2000, and the
financial statements as of and for the three months ended March 31, 2001 and
2000 included with this Form 10-QSB.



We are considered to be in the development stage as
defined in Financial Accounting Standards Board Statement No. 7. We have no
assets and have not generated any revenues to date.  Our expenses from inception
through March 31, 2001, all funded by capital contributions from our
stockholder, are $6,376.



Substantially all of our expenses arise from our efforts
to identify a suitable merger, acquisition or other business combination
candidate.  Our stockholder has agreed to fund our cash requirements until such
a transaction is closed.  So long as this agreement is in effect, we anticipate
having sufficient funds to satisfy our cash requirements.  Accordingly, we do
not intend to seek additional financing or issue any additional securities
before the closing of a business combination.  This is primarily because we
anticipate incurring no significant expenditures; we anticipate our expenditures
will be limited to accounting fees, legal fees, telephone, mailing, filing fees
and occupational license fees.



Readers are referred to the cautionary statement, which
addresses forward- looking statements made



CAUTIONARY STATEMENT



This Form 10-QSB, press releases and certain information
provided periodically in writing or orally by our officer or agents contain
statements which constitute forward-looking statements within the meaning of
Section 27A of the Securities Act, as amended and Section 21E of the Securities
Exchange Act of 1934. The words expect, anticipate, believe, goal, plan, intend,
estimate and similar expressions and variations thereof if used are intended to
specifically identify forward-looking statements. Those statements may appear in
a number of places in this Form 10-QSB and in other places, particularly,
Management's Discussion and Analysis of Financial Condition and Results of
Operations, and include statements regarding the intent, belief or current
expectations of our directors or officers with respect to, among other things:
(i) our liquidity and capital resources; (ii) our financing opportunities and
plans and (iii) our future performance and operating results. Investors and
prospective investors are cautioned that any such forward-looking statements are
not guarantees of future performance and involve risks and uncertainties, and
that actual results may differ materially from those projected in the
forward-looking statements as a result of various factors. The factors that
might cause such differences include, among others, the following: (i) any
material inability to successfully identify, consummate and integrate a
potential business combination at reasonable and anticipated costs; (ii) any
material inability to successfully internally develop our products; (iii) any
adverse effect or limitations caused by Governmental regulations; (iv) any
adverse effect on our continued positive cash flow and abilities to obtain
acceptable financing in connection with our growth plans; (v) any increased
competition in business;  (vi) any inability  to successfully conduct our
business in new markets; and (vii) other risks including those identified in our
filings with the Securities and Exchange Commission. We undertake no obligation
to publicly update or revise the forward looking statements made in this Form
10-QSB to reflect events or circumstances after the date of this Form 10-QSB or
to reflect the occurrence of unanticipated events.







9

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 Securities
Holders



NONE



Item 5. Other Information



NONE



Item 6. Exhibits and Reports on Form 8-K



NONE









SIGNATURES



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



SIGNATURE
TITLE
DATE/s/ Alfred Arberman
Director, Chief Accounting Officer
May 14, 2001






















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