**UNITEDSTATES****SECURITIES AND EXCHANGECOMMISSION****Washington D. C.20549**

**FORM 10-QSB**

**( X ) Quarterly report pursuant toSection 13 or 15(d) of the Securities****andExchange Act of 1934.**

**For the quarterly period ended June30, 2001.**

**( ) Transition report pursuant toSection 13 or 15(d) of the ExchangeAct****for the transition period from_________________ to ____________ .**

**Commission File Number:000-28061**

**URAGCORPORATION****(Exact name of registrant asspecified in charter)**

| **DELAWARE****(State of or other jurisdictionof****incorporation or organization)** | **pending****(IRS Employer I.D.  No.)** |
|-------------------------------------------------------------------------------------|-----------------------------------------|

**1490 Blue Jay Circle, Weston, FL33327****(Address of Principal ExecutiveOffices)**

**(954)385-2553****(Registrant's Telephone Number,Including Area Code)**

Check whether the registrant:  (1) has filed all reportsrequired to be filed by Section by Section 13 or 15(d) of the SecuritiesExchange Act of 1934 during the preceding 12 months (or for such shorter periodthat the registrant was required to file such reports),  and (2) has beensubject to such filing requirements for the past 90 days. 

**YES ( X ) NO (  )**

Indicate the number of shares  outstanding  of each ofthe  issuer's  classes of stock as of June 30, 2001. 

5,000,000 Common Shares

Transitional Small Business Disclosure Format:

**YES ( ) NO (X)**

1

URG CORPORATION

**INDEX TO FORM 10-QSB**

| **PART I. FINANCIAL INFORMATION**                                                                                                                          | **Page** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| Item 1. Financial Statements (unaudited)                                                                                                                   |          |
| Balance Sheets as of June 30, 2001 and December 31,2000                                                                                                    | 3        |
| Statements of Operations for the three and sixmonths ended June 30, 2001 and 2000, and the period November 8, 1999 (date ofincorporation) to June 30, 2001 | 4        |
| Statement of Stockholder’s Equity (Deficit)for the six months ended June 30, 2001                                                                    | 5        |
| Statements of Cash Flows for the three and sixmonths ended June 30, 2001 and 2000, and the period November 8, 1999 (date ofincorporation) to June 30, 2001 | 6        |
| Notes to Financial Statements                                                                                                                              | 7        |
| Item 2. Management's Discussion and Analysis ofFinancial Condition and Results of Operations (including cautionarystatement)                               | 9        |
| **PART II.	OTHER INFORMATION**                                                                                                                             |          |
| Item 1. Legal Proceedings                                                                                                                                  | 10       |
| Item 2. Changes in Securities                                                                                                                              | 10       |
| Item 3. Defaults Upon Senior Securities                                                                                                                    | 10       |
| Item 4. Submission of Matters to a Vote of SecuritiesHolders                                                                                               | 10       |
| Item 5. Other Information                                                                                                                                  | 10       |
| Item 6. Exhibits and Reports on Form 8-K                                                                                                                   | 10       |
| Signatures                                                                                                                                                 | 10       |

**2**

URAGCORPORATION(A Development StageEnterprise)

BALANCE SHEETS 

| ASSETS                                                                                                                   | June 30,2001(unaudited) |  | December31, 2000 |
|--------------------------------------------------------------------------------------------------------------------------|-------------------------|--|------------------|
| CURRENT ASSETS-                                                                                                          |                         |  |                  |
|    Cash and cash equivalents                                                                              | $     500               |  | $     500        |
|                                                                                                                          |                         |  |                  |
| TOTAL                                                                                                                    | $    500                |  | $     500        |
|                                                                                                                          |                         |  |                  |
|                                                                                                                          |                         |  |                  |
| LIABILITIES AND STOCKHOLDER’SEQUITY (DEFICIT)                                                                      |                         |  |                  |
|                                                                                                                          |                         |  |                  |
| CURRENT LIABILITIES - accrued liabilities                                                                                | $    -                  |  | $    1,000       |
|                                                                                                                          |                         |  |                  |
| STOCKHOLDERS' EQUITY (DEFICIT):                                                                                          |                    |  |                  |
| Preferred stock - $0.0001 par value; 5,000,000 sharesauthorized;       0 shares issued and outstanding                   | -                       |  | -                |
|    Common stock - $0.0001 par value;20,000,000 shares authorized; 5,000,000 shares issued and outstanding | 500                     |  | 500         |
| Additional paid-in capital                                                                                               | 6,376                   |  | 5,376       |
|    Deficit accumulated during thedevelopment stage                                                        | (6,376)                 |  | (6,376)          |
|           Totalstockholders' equity (deficit)                          | 500                     |  | (500)            |
|                                                                                                                          |                         |  |                  |
| TOTAL                                                                                                                    | $     500               |  | $    500    |

SEE NOTES TO FINANCIAL STATEMENTS. 

3

URAG CORPORATION(A Development StageEnterprise)

STATEMENTS OFOPERATIONS(Unaudited)

|                                                |   | For the three months ended June30, 2001 |   | For the six months ended June30, 2001 |   | For the  three months ended June30, 2000 |   | For the  six months ended June30, 2000 |   | For the Period November 8, 1999(date of incorporation) to June 30, 2001 |
|------------------------------------------------|---|-----------------------------------------|---|---------------------------------------|---|------------------------------------------|---|----------------------------------------|---|-------------------------------------------------------------------------|
|                                                |   |                                         |   |                                       |   |                                          |   |                                        |   |                                                                         |
| **EXPENSES:**                                  |   |                                         |   |                                       |   |                                          |   |                                        |   |                                                                         |
| Professional and consulting  fees              | $ | -                                       | $ | -                                     | $ | 696                                      | $ | 696                                    | $ | 6,077                                                                   |
| Organization costs                             |   | -                                       |   | -                                     |   | -                                        |   | -                                      |   | 299                                                                     |
|                                                |   |                                         |   |                                       |   |                                          |   |                                        |   |                                                                         |
| Total expenses                                 |   | -                                       |   | -                                     |   | 696                                      |   | 696                                    |   | 6,376                                                                   |
|                                                |   |                                         |   |                                       |   |                                          |   |                                        |   |                                                                         |
| **NET LOSS**                                   | $ | -                                       | $ | -                                     | $ | (696)                                    | $ | (696)                                  | $ | (6,376)                                                                 |
|                                                |   |                                         |   |                                       |   |                                          |   |                                        |   |                                                                         |
| Net Loss Per Share –    Basic andDiluted | $ | (0.00)                                  | $ | (0.00)                                | $ | (0.00)                                   | $ | (0.00)                                 | $ | (0.00)                                                                  |
|                                                |   |                                         |   |                                       |   |                                          |   |                                        |   |                                                                         |
| Weighted Average Number of Shares Outstanding  |   | 5,000,000                               |   | 5,000,000                             |   | 5,000,000                                |   | 5,000,000                              |   | 5,000,000                                                               |
| SEE NOTES TO FINANCIAL STATEMENTS.             |

 4

URAG CORPORATION(A Development Stage Enterprise)

STATEMENT OF STOCKHOLDERS' EQUITY(DEFICIT)For the six months ended June 30,2001(Unaudited)

|                                    |  |              |  |                    |  |                                            |  |             |  |          |
|------------------------------------|--|--------------|--|--------------------|--|--------------------------------------------|--|-------------|--|----------|
|                                    |  | Common Stock |  | Additional Paid-In |  | Deficit Accumulated During the Development |  |             |
|                                    |  | Shares       |  | Amount             |  | Capital                                    |  | Stage       |  | Total    |
|                                    |  |              |  |                    |  |                                            |  |             |  |          |
| Balances, December 31, 2000        |  | 5,000,000    |  | $ 500              |  | $  5,376                                   |  | $   (6,376) |  | $  (500) |
|                                    |  |              |  |                    |  |                                            |  |             |  |          |
| Capital contribution               |  |              |  |                    |  | 1,000                                      |  |             |  | 1,000    |
|                                    |  |              |  |                    |  |                                            |  |             |  |          |
| Net Loss                           |  |              |  |                    |  |                                            |  | -           |  | -        |
|                                    |  |              |  |                    |  |                                            |  |             |  |          |
| Balances, June 30, 2001            |  | 5,000,000    |  | $  500             |  | $  6,376                                   |  | $   (6,376) |  | $ 500    |
|                                    |  |              |  |                    |  |                                            |  |             |  |          |
|                                    |  |              |  |                    |  |                                            |  |             |  |          |
| SEE NOTES TO FINANCIAL STATEMENTS. |

       . 

5

URAGCORPORATION (A Development StageEnterprise)

STATEMENTS OF CASHFLOWS(Unaudited)

|                                                                                   |   | For the three months ended June30, 2001 |   | For the six months ended June30, 2001 |   | For the three months ended June30, 2000 |   | For the six months ended June30, 2000 |   | For the period November 8, 1999(date of in- corporation) to June 30, 2001 |
|-----------------------------------------------------------------------------------|---|-----------------------------------------|---|---------------------------------------|---|-----------------------------------------|---|---------------------------------------|---|---------------------------------------------------------------------------|
| Cash Flows From OperatingActivities:                                              |   |                                         |   |                                       |   |                                         |   |                                       |   |                                                                           |
|    Net loss                                                        | $ | -                                       | $ | -                                     | $ | (696)                                   | $ | (696)                                 | $ | (6,376)                                                                   |
| Adjustments to reconcile net loss to netcash       used by operating activities - |   |                                         |   |                                       |   |                                         |   |                                       |   |                                                                           |
| (Decrease) increase in accruedliabilities                                         |   | -                                       |   | (1,000)                               |   | (1,500)                                 |   | (1,500)                               |   | -                                                                         |
| Net Cash Used By OperatingActivities                                              |   | -                                       |   | (1,000)                               |   | (2,196)                                 |   | (2,196)                               |   | (6,376)                                                                   |
|                                                                                   |   |                                         |   |                                       |   |                                         |   |                                       |   |                                                                           |
| Cash Flows From FinancingActivities:                                              |   |                                         |   |                                       |   |                                         |   |                                       |   |                                                                           |
|    Issuance of commonstock                                         |   | -                                       |   | -                                     |   | -                                       |   | -                                     |   | 500                                                                       |
|    Capitalcontributions                                            |   | -                                       |   | 1,000                                 |   | 2,196                                   |   | 2,196                                 |   | 6,376                                                                     |
| Cash Provided by FinancingActivities                                              |   | -                                       |   | 1,000                                 |   | 2,196                                   |   | 2,196                                 |   | 6,876                                                                     |
|                                                                                   |   |                                         |   |                                       |   |                                         |   |                                       |   |                                                                           |
| Net Increase (decrease) In Cash and CashEquivalents                               |   | -                                       |   | -                                     |   | -                                       |   | -                                     |   | 500                                                                       |
|                                                                                   |   |                                         |   |                                       |   |                                         |   |                                       |   |                                                                           |
| Cash and Cash Equivalents at Beginning ofPeriod                                   |   | 500                                     |   | 500                                   |   | 500                                     |   | 500                                   |   | -                                                                         |
|                                                                                   |   |                                         |   |                                       |   |                                         |   |                                       |   |                                                                           |
| Cash and Cash Equivalents at End ofPeriod                                         | $ | 500                                     | $ | 500                                   | $ | 500                                     | $ | 500                                   | $ | 500                                                                       |
|                                                                                   |   |                                         |   |                                       |   |                                         |   |                                       |   |                                                                           |
| Supplemental disclosure of cash flowinformation:                                  |   |                                         |   |                                       |   |                                         |   |                                       |   |                                                                           |
| Cash paid for interest                                                            | $ | -                                       | $ | -                                     | $ | -                                       | $ | -                                     | $ | -                                                                         |
| Cash paid for interest                                                            | $ | -                                       | $ | -                                     | $ | -                                       | $ | -                                     | $ | -                                                                         |
|                                                                                   |   |                                         |   |                                       |   |                                         |   |                                       |   |                                                                           |
| SEE NOTES TO FINANCIAL STATEMENTS.                                                |   |                                         |   |                                       |   |                                         |   |                                       |   |                                                                           |

       . 

6

URAG CORPORATIONA Development Stage Enterprise)

NOTES TO FINANCIALSTATEMENTS(Unaudited)

**NOTE A - FORMATION AND OPERATIONS OF THE COMPANY**

Urag Corporation ("we",  "us",  "our") was incorporatedunder the laws of the state  of  Delaware  on  November  8,  1999.  We  areconsidered  to be in  the development stage, as defined in Financial  AccountingStandards Board Statement No. 7, and intend to effect a merger, exchange ofcapital stock, asset acquisition or other business combination with a domesticor foreign private business.  Our planned  principal  operations  have notcommenced, therefore most of our accounting policies and procedures have not yetbeen established. 

#### USE OFESTIMATES

The preparation of financial statements in accordancewith accounting principles generally accepted in the United States of Americarequires us to make estimates and assumptions that affect the reported  amountsof assets and  liabilities  and the  disclosure  of contingent  assets andliabilities at the date of the financial  statements.  The reported amounts ofrevenues and expenses during the reporting  period may be affected by theestimates we are required to make.  Actual results could differ from ourestimates. 

#### BASIS OFPRESENTATION

Our accompanying unaudited financial statements havebeen prepared in accordance with  accounting  principles generally accepted inthe United States of America for interim financial information and theinstructions  to Form  10-QSB  and Rule 10-1 of  Regulation  S-X of theSecurities and Exchange  Commission  (the "SEC").  Accordingly,  thesefinancial statements  do not include all of the footnotes  required by generallyaccepted accounting principles. In our opinion, all adjustments (consisting ofnormal  and  recurring   adjustments)   considered   necessary  for  a  fairpresentation  have been included.  Operating  results for the six months endedJune 30,  2001  are not  necessarily  indicative  of the  results  that may beexpected for the year ended December 31, 2001.  The accompanying financialstatements and the notes should be read in conjunction with our auditedfinancial statements as of and for the year ended December 31, 2000 contained inour Form 10-KSB.

**NOTE B - INCOME TAXES**

During the period November 8, 1999 (date ofincorporation) to June 30, 2001, we recognized losses for both financial and taxreporting purposes. Accordingly, no provision for income taxes and/or deferredincome taxes payable have been  provided  for in the  accompanying  financialstatements. 

At June 30, 2001, we had a net operating losscarryforward of approximately $6,400 for income tax purposes.  This carryforwardis available to offset future taxable income through the period ended June  30,2021. The deferred income tax asset arising from this net operating losscarryforward is not recorded in the accompanying balance sheet because weestablished a valuation allowance to fully reserve such asset as its realizationdid not meet the required asset recognition standard established by SFAS 109.

**7**

**NOTE C - RELATED PARTY TRANSACTION**

Our shareholder has funded, and has agreed to continuefunding all of our expenses until such time as a merger, asset acquisition orother business combination transaction is effected.  None of these fundsexpended on our behalf will be reimbursable to our shareholder; accordinglypayment of these  amounts have been, and will continue to be, reflected in ourfinancial  statements  as contributed capital. 

##### 

##### **NOTE D – NET LOSS PERSHARE**

We compute net loss per share in accordance with SFASNo. 128  "Earnings per Share"  ("SFAS No.  128") and SEC Staff AccountingBulletin 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 tocommon stockholders for the period(s) by the weighted average number of commonshares outstanding during such period(s).  Diluted net loss per share iscomputed by dividing the net loss for the period(s) by the number of common andcommon equivalent shares outstanding during such period(s).  There were nocommon equivalent shares outstanding at any time since our inception;accordingly basic and diluted net loss per share are identical for each of theperiods in the accompanying statements of operations.

8

Item 2. 

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS**

The  following  discussion  and  analysis  should  beread in  conjunction  with the balance sheet as of December 31, 2000, and thefinancial statements as of and for the three and six months ended June 30, 2001and 2000 included with this Form 10-QSB. 

We are considered to be in the development stage asdefined in Financial Accounting Standards Board Statement No. 7. With theexception of $500 in cash, we have no assets and have not generated any revenuesto date.  Our expenses from inception through June 30, 2001, all funded bycapital contributions from our stockholder, are $6,376. 

Substantially all of our expenses arise from our effortsto identify a suitable merger, acquisition or other business combinationcandidate.  Our stockholder has agreed to fund our cash requirements until sucha transaction is closed.  So long as this agreement is in effect, we anticipatehaving sufficient funds to satisfy our cash requirements.  Accordingly, we donot intend to seek additional financing or issue any additional securitiesbefore the closing of a business combination.  This is primarily because weanticipate incurring no significant expenditures; we anticipate our expenditureswill be limited to accounting fees, legal fees, telephone, mailing, filing feesand occupational license fees. 

Readers are referred to the cautionary statement, whichaddresses forward- looking statements.

**CAUTIONARY STATEMENT**

This Form 10-QSB, press releases and certain informationprovided periodically in writing or orally by our officer or agents containstatements which constitute forward-looking statements within the meaning ofSection 27A of the Securities Act, as amended and Section 21E of the SecuritiesExchange Act of 1934. The words expect, anticipate, believe, goal, plan, intend,estimate and similar expressions and variations thereof if used are intended tospecifically identify forward-looking statements. Those statements may appear ina number of places in this Form 10-QSB and in other places, particularly,Management's Discussion and Analysis of Financial Condition and Results ofOperations, and include statements regarding the intent, belief or currentexpectations of our directors or officers with respect to, among other things:(i) our liquidity and capital resources; (ii) our financing opportunities andplans and (iii) our future performance and operating results. Investors andprospective investors are cautioned that any such forward-looking statements arenot guarantees of future performance and involve risks and uncertainties, andthat actual results may differ materially from those projected in theforward-looking statements as a result of various factors. The factors thatmight cause such differences include, among others, the following: (i) anymaterial inability to successfully identify, consummate and integrate apotential business combination at reasonable and anticipated costs; (ii) anymaterial inability to successfully internally develop our products; (iii) anyadverse effect or limitations caused by Governmental regulations; (iv) anyadverse effect on our continued positive cash flow and abilities to obtainacceptable financing in connection with our growth plans; (v) any increasedcompetition in business;  (vi) any inability  to successfully conduct ourbusiness in new markets; and (vii) other risks including those identified in ourfilings with the Securities and Exchange Commission. We undertake no obligationto publicly update or revise the forward looking statements made in this Form10-QSB to reflect events or circumstances after the date of this Form 10-QSB orto reflect the occurrence of unanticipated events.

**9**

**PART II. - OTHERINFORMATION**

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 SecuritiesHolders 

**NONE**

Item 5. Other Information 

**NONE**

Item 6. Exhibits and Reports on Form 8-K 

**NONE**

**SIGNATURES**

Pursuant  to the  requirements  of the  SecuritiesExchange  Act of  1934,  the registrant  has duly  caused  this  report  to besigned  on its  behalf by the undersigned, thereunto duly authorized.

| **SIGNATURE**       | **TITLE**                          | **DATE**        |
|---------------------|------------------------------------|-----------------|
| /s/ Alfred Arberman | Director, Chief Accounting Officer | August 14, 2001 |

10