UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington D. C. 20549

                                   FORM 10-QSB

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

                     For the quarterly period ended September 30, 2000.

           ( )Transition  report  pursuant  to  Section  13 or 15(d) of the
              Exchange  Act  for  the  transition  period  from  _________  to
              _________ .

                             Commission File Number:

                                URAG CORPORATION

                     (Exact name of registrant as specified in charter)

                                Delaware Pending

                     (State of Incorporation) (I.R.S. Employer I.D. No)

                     1490 Blue Jay Circle, Weston, FL 33327

                    (Address of Principal Executive Offices)

                                 (954) 385-2553

                    (Registrant's Telephone Number, Including Area Code)

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 September 30, 2000.

                             5,000,000 Common Shares

Transitional Small Business Disclosure Format:

                                 YES ( ) NO (X)

                                        1

<PAGE>






                                URAG CORPORATION

                              INDEX TO FORM 10-QSB

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

    Balance Sheets as of September 30, 2000 and December 31, 1999 .............3

    Statements of Operations  for the three and nine months ended
    September 30, 2000 and the period November 8, 1999 (date of
    incorporation) to September 30, 2000 ......................................4

    Statement of Stockholders' Equity (Deficit) for the nine months ended
    September 30, 2000.........................................................5

    Statements of Cash Flows for the three and nine months ended
    September  30, 2000 and the period November 8, 1999 (date of
    incorporation) to September 30, 2000.......................................6

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

Item 2. Management's Discussion and Analysis of Financial Condition and
      Results of Operations or Plan of Operations..............................8


PART II.    OTHER INFORMATION

Item 1. Legal Proceedings......................................................9
Item 2. Changes in Securities..................................................9
Item 3. Defaults Upon Senior Securities........................................9
Item 4. Submission of Matters to a Vote of Securities Holders..................9
Item 5. Other Information......................................................9
Item 6. Exhibits and Reports on Form 8-K.......................................9

Signatures.....................................................................9

                                        2


<PAGE>




                                URAG CORPORATION
                        (A Development Stage Enterprise)

                                 BALANCE SHEETS

<TABLE>
                                                        September 30,
                                                           2000               December
                                                       (Unaudited)            31, 1999
                                                       -----------            --------
<S>                                                    <C>                    <C>

 ASSETS

 TOTAL ASSETS - CASH                                    $   500               $   500
                                                        =======               =======



LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

LIABILITIES -Accrued liabilities                        $     0               $ 1,500

STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock - $.0001 par value:5,000,000 shares
authorized; zero shares issued and outstanding

Common stock - $.0001 par value;  20,000,000 shares
authorized; 5,000,000 shares issued and outstanding         500                   500

Additional  paid-in capital                               4,253                 2,057

Deficit accumulated during the development stage         (4,253)               (3,557)
                                                        -----------           ----------


     Total stockholders' equity (deficit)                   500                (1,000)
                                                        -----------           ----------


TOTAL                                                   $   500               $   500
                                                        ==========            ==========

</TABLE>

   SEE NOTES TO FINANCIAL STATEMENTS.

                                        3


<PAGE>




                                URAG CORPORATION
                        (A Development Stage Enterprise)

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>

                         Nine Months        Three Months        November 8,1999
                        Ended September,   Ended September,  (date of incorporation)
                          30, 2000           30, 2000         to September 30, 2000
                       -------------      -------------         ------------------
<S>                    <C>               <C>                 <C>

   EXPENSES:

    Professional
     and consulting        $  696               $  0              $  3,954
    Organization costs          0                  0                   299
                           ----------           ------            --------


   NET LOSS                $ (696)              $ (0)             $ (4,253)
                           =======              =======           =========



   NET LOSS PER SHARE       $ 0.00              $ 0.00            $ 0.00
                            ======              ======            ======

</TABLE>

   SEE NOTES TO FINANCIAL STATEMENTS.

                                        4


<PAGE>



                                URAG CORPORATION
                        (A Development Stage Enterprise)

                    STATEMENT OF STOCKHOLDERS' EQUITY (DEEFICIT)
                    For the nine months ended September 30, 2000
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                         Deficit
                                                                      Accumulated
                                                         Additional   During the
                                   Common Stock          Paid in      Development
                                Shares       Value       Capital      Stage         Total
                               ---------   --------    -----------    ----------   ---------
<S>                            <C>         <C>         <C>            <C>          <C>

Balances, December 31,1999     5,000,000    $   500     $   2,057     $ (3,557)    $(1,000)

Capital contribution                  -          -          2,196            -       2,196
Net loss for the nine months
ended September 30, 2000              -          -             -          (696)       (696)
                                --------   ---------   ----------     ---------   ----------
Balances, September 30, 2000   5,000,000    $   500     $   4,253      $(4,253)    $   500
                               =========   =========   ==========     =========   ==========


</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

                                        5


<PAGE>



                                URAG CORPORATION
                        (A Development Stage Enterprise)

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                     Nine Months          Three Months            November 8,1999
                                                    Ended September,   Ended September 30,   (date of incorporation)
                                                      30, 2000              2000              to September 30, 2000
                                                   -----------------   -----------------     -----------------------
<S>                                                <C>                 <C>                   <C>

CASH FLOWS FROM OPERATING ACTIVITIES-Net loss           $(696)              $(0)                  $(4,253)

   Adjustments to reconcile net loss to net cash
   used by operating activities

     Decrease in accrued liabilities                   (1,500)               (0)                        -
                                                       -------          --------                  --------
NET CASH USED IN OPERATING ACTIVITIES                  (2,196)               (0)                   (4,253)
                                                       -------          --------                  --------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from the issuance of common stock               0                 0                       500
   Capital contributions                                2,196                 0                     4,253
                                                       -------          --------                  --------

CASH PROVIDED BY FINANCING ACTIVITIES                   2,196                 -                     4,753
                                                       -------          --------                  --------

NET INCREASE IN CASH AND CASH EQUIVALENTS                   -                 -                       500
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD            500               500                         0
                                                       -------          --------                  --------
CASH AND CASH EQUIVALENTS, END OF PERIOD                 $500              $500                      $500
                                                       =======          ========                  ========


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

   Interest paid                                           $0                $0                        $0
                                                           ==                ==                        ==

   Taxes paid                                              $0                $0                        $0
                                                           ==                ==                        ==




</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

                                        6


<PAGE>



                                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. We intend to investigate and, if such investigation  warrants,  engage in
business  combinations.  Our planned  principal  operations  have not commenced,
therefore accounting policies and procedures have not yet been established.

The preparation of financial  statements in accordance  with generally  accepted
accounting principles requires management 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 and
revenues and expenses during the reporting  period.  Actual results could differ
from those estimates.

Our accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting  principals 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 principals. In the opinion of management, all adjustments (consisting
of  normal  and  recurring   adjustments)   considered   necessary  for  a  fair
presentation have been included. Operating results for the three and nine months
ended September 30, 2000 are not necessarily  indicative of the results that may
be expected for the year ended December 31, 2000.

NOTE B - GOING CONCERN

The  accompanying  financial  statements  have been  prepared on a going concern
basis,  which  contemplates  the  realization of assets and the  satisfaction of
liabilities in the normal course of business.  We have an accumulated deficit of
$4,253  as of  September  30,  2000.  We do not  currently  engage  in  business
activities that provide any cash flow,  accordingly our ability to continue as a
going  concern  is  dependent  on our  management's  ability  to fund  our  cash
requirements until a business  combination is closed. These factors among others
may  indicate  that we will be  unable  to  continue  as a going  concern  for a
reasonable period of time.

The financial  statements do not include any adjustments that might be necessary
if we are unable to continue as a going concern.

NOTE C - INCOME TAXES

During the period November 8, 1999 (date of incorporation) to December 31, 1999,
we recognized losses for both financial and tax reporting purposes. Accordingly,
no  deferred  taxes have been  provided  for in the  accompanying  statement  of
operations.

                                        7


<PAGE>



NOTE D - RELATED PARTY TRANSACTION

Our President, who is also a shareholder, has agreed, in writing, to fund all of
our expenses  until such time as an acquisition  transaction is closed.  None of
these  funds  expended  on our behalf  will be  reimbursable  to our  President,
accordingly  these  amounts  will be reflected in our  financial  statements  as
contributed capital.

Item 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

The  following  discussion  and  analysis  should  be read in  conjunction  with
financial  statements as of and for the period ended September 30, 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, and have neither  engaged in any
operations  nor  generated  any  revenues to date.  We have $500 in assets.  Our
expenses from  inception  through  September  30, 2000,  all funded by a capital
contribution from management, are $4,253.

Substantially all of our expenses that must be funded by management will be from
our  efforts  to  identify  a  suitable  acquisition  candidate  and  close  the
acquisition.  Management  has agreed in  writing  to fund our cash  requirements
until an  acquisition  is closed.  So long as  management  does so, we will have
sufficient funds to satisfy our cash requirements as we anticipate  incurring no
significant expenditures before the closing of an acquisition.  During this time
we  anticipate  our  expenses  to be limited to  accounting  fees,  legal  fees,
telephone, mailing, filing fees and occupational license fees.

We do not intend to seek additional financing.  At this time we believe that the
funds to be provided by management will be sufficient for funding our operations
until we find an acquisition and therefore do not expect to issue any additional
securities before the closing of a business combination.

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

                                        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 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.

  October 25, 2000      /s/ Alfred Arberman

   Date.....Alfred Arberman, President

                                        9