United States Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)

     [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934

          For the quarterly period ended September 30, 2000.

     [ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
          ACT OF 1934

          For the transition period from ____________ to ___________

                        Commission file number : 0-30463

                               R-Tec Holding, Inc.
                 (Exact name of business issuer in its charter)

         Idaho                                              82-0515707
State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                              Identification No.)

1471 E. Commercial Ave., Meridian, Idaho                       83642
(Address of principal executive offices)                    (Zip Code)

Issuer's telephone number:          (208)-887-0953          Fax: (208) 888-1757


--------------------------------------------------------------------------------
                                (Former Address)

The number of shares of common stock outstanding as of September 30, 2000, is 8,
533, 594.


         Transitional Small Business Disclosure Format. Yes ___, No _X_.



<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements:

     The following financial statements are filed as part of this report:

     The Consolidated Financial Statements of the Company for the three months
and nine months ended September 30, 2000, reviewed by Balukoff, Lindstrom & Co.,
P.A., certified public accountants.

Item 2. Management's Discussion and Plan of Operation:

     Third quarter revenues of $129,201 are substantially less than Management
projected due to delays in receiving expected purchase orders for confirmed
sales, resulting in a corresponding operating loss of ($204,607) for the same
period. The purchase orders have now been received, accounting for booked
revenues of $2,183,155, which is slightly above Management's original revenue
projections. Due to the delay in receiving the purchase orders, they will not be
completed until the 1st quarter of 2001. Therefore, Management has revised it's
year end projections for accounting purposes to reflect projected revenues of
$1,523,485 and a corresponding projected year end loss of ($245,000).

Changes in Financial Condition:

     The following discussion and analysis should be read in conjunction with
the financial statements and notes thereto appearing elsewhere herein for
September 30, 2000, and December 31, 1999.

     The balance of current assets at September 30, 2000 was $195,194 compared
to a balance of $181,715 at December 31, 1999. The balance of current
liabilities was $264,445 and $247,847 for the same periods respectively. The
resulting current ratio at September 30 is .74. The current ratio was .73 for
December 31, 1999.

     The increase of current assets at September 30, 2000, over December 31,
1999, is due primarily to an increase in cash accounts to $97,826 from $3,608
respectively, with a decrease in receivables from $105,416 to $58,200
respectively. Cash infusions from the sale of preferred stock accounted for
augmented cash accounts in lieu of expected revenues from pending purchase
orders. See "Funding and Capital Resources" below.

     The balance of current liabilities at September 30, 2000, is $264,445 and
at December 31, 1999, is $247,847. The increase of $16,598 or 7% is due
primarily to an increase in expenses from direct costs of operations.

                                                                               2

<PAGE>

     At September 30, 2000, the Company had insufficient cash flow from
operations to meet its current cash obligations.

Financial Results of Operations:

For the nine months ended September 30, 2000, and September 30, 1999.

     Sales for the nine months ended September 30, 2000, were $880,868 compared
to $1,139,561 for the period ending September 30, 1999, resulting in a decrease
of ($258,693) or (23)%.

     Operating expenses include primarily direct costs comprised of materials
and supplies and direct labor from production, and indirect costs comprised
primarily of depreciation and amortization. Depreciation and amortization for
the nine months ended September 30, 2000, were $19,744.

     Selling, general and administrative expenses were $375,741 or 43% of sales
for the nine months ended September 30, 2000, and $164,430 or 14% of sales for
the same period in 1999, resulting in an increase of $211,311 or 129%. The
increase is due primarily to additional payroll costs in preparation for
expanding operations as discussed in "Plan of Operation" below and a reduction
in sales from non-booked purchase orders as previously explained in "Results of
Operations." Included in expanded operations is the addition of payroll costs
for a satellite office based in Utah for Software Programming and Design to
augment ongoing production requirements for software integration in custom
automation jobs.

For the three months ended September 30, 2000, and September 30, 1999.

     Sales for the three months ended September 30, 2000, were $129,201 compared
to $382,374 for the period ending December 30, 1999, resulting in a decrease of
($253,173) or (66)%.

     Operating expenses include primarily direct costs comprised of materials
and supplies and direct labor from production, and indirect costs comprised
primarily of depreciation and amortization. Operating expenses for the three
months ending September 30, 2000 were $188,812, compared to $192,555 for the
three months ending September 30, 1999.

     Selling, general and administrative expenses were $135,578 or 105% of sales
for the three months ended September 30, 2000, and $52,727 for the three months
ended December 30, 1999. The increase in selling, general and administrative
expenses is due primarily to an increase in expenses for expanding operations as
previously discussed in year-to-date selling, general and administrative
expenses.


                                                                               3

<PAGE>

Funding and Capital Resources:

     Management is of the opinion that present current assets, comprised
primarily of cash and receivables is insufficient to carry the Company through
its current and projected levels of operation through year end. During the third
quarter the Company received $169,100 in Preferred Stock subscriptions to
supplement the cash of the Company.

Plan of Operation:

     Presently, the Company is continuing to expand its revenues from it's core
business of custom automation. During the last three years, 1997 thru 1999,
custom automation has recognized a revenue growth of $849,176 or 200%, an
annualized growth rate of 67% annualized. The customer base in custom automation
continues to expand with a significant repeat order business from existing
customers. Management is also expanding its strategic alliances with other
companies to develop its market share.

     With it's expertise in custom engineering, the Company has successfully
developed a new line of "socket" products and "interconnect devices" for the
hi-tech IC chip and IC board testing industry. The Company is currently
beginning to receive purchase orders from this new product line with anticipated
growth in revenues coming in the first quarter of 2001.

     Along with the successful marketing and production development of the
testing industry devices, the Company has now received successful test results
from a new, proprietary technology aimed at a vertical marketing plan to augment
the current product line. This new proprietary technology called "GCI" is
expected to generate new revenue streams beginning in the first quarter of 2001.

     In order to facilitate the rapid growth of its IC testing products, the
Company will initially outsource the production of the "GCI" but will continue
to produce its current testing products, i.e., sockets and interconnect devices
within existing plant facilities. As revenues expand within the first quarter of
2001, the Company anticipates it will need to address the opportunity of
expanding current plant facilities to establish its own production capabilities
of the "GCI" as well as support staff. Currently, the Company is negotiating to
acquire a marketing company, in order to establish a nationwide marketing
network to facilitate the growth in its IC testing product lines, as well as
continuing development of its existing custom automation products. As reflected
in the increase in operational costs, the Company has already hired additional
personnel to handle financial, software design, and production needs in
anticipation of revenue growth.

IntorCorp Motor:

     IntorCorp has filed the updated patents for the inventions in the IntorCorp
Motor. Management is currently evaluating the method of continuing the
development and the marketing of the IntorCorp Motor. It is anticipated that a
new business plan will be created and executed to advance the progress of the
IntorCorp Motor. This will be based on the patent position.

                                                                               4

<PAGE>

                           PART II - OTHER INFORMATION

Item 1. Legal Proceedings. None

Item 2. Changes in Securities. During the third quarter the Company received
additional subscriptions from Series "A" Preferred Stock sold to existing
shareholders of such stock, namely:

     Date           Shares        Cash Consideration         Shareholder
     ----           ------        ------------------         -----------

     07/19/00       106,669            $25,000             John E. Smith
     07/19/00       273,499            $64,100             George W. Wadsworth
     07/24/00       234,672            $55,000             William  Glacier
     08/08/00       106,669            $25,000             John E. Smith

The described stock transactions were exempt from registration under the
provisions of Section 4(2) of the Securities Act of 1933, as amended.

Item 3. Defaults Upon Senior Securities. None

Item 4. Submission of Matters to a Vote of Security Holders. None

Item 5. Other Information.

     During the third quarter the Company purchased approximately $10,000 in
assets and employed two software technicians to develop the software division of
R-Tec Corporation, which is located in the Salt Lake City area of Utah. This new
division will eliminate the need to contract for software development when
required by Company contracts and products, and will also enable an opportunity
to develop revenues from contracting software development for other customers.

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

     (a)  No exhibits

     (b)  No Form 8K filings

                                   SIGNATURES

     In accordance with requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                       R-Tec Holding, Inc.
                                       (Registrant)


Date: November 17,  2000               By /s/ Douglas G. Hastings
                                          ---------------------------------
                                          Douglas G. Hastings, President and CEO


                                                                               5


<PAGE>

                        Consolidated Financial Statements





                               R-TEC HOLDING, INC.
                                 AND SUBSIDIARY




                           September 30, 2000 and 1999


<PAGE>

TABLE OF CONTENTS

                                                                        Page No.
                                                                        --------



INDEPENDENT ACCOUNTANTS' REVIEW REPORT ..............................      1

FINANCIAL STATEMENTS

   Consolidated Balance Sheet .......................................      2

   Consolidated Statements of Operations ............................      3

   Consolidated Statements of Cash Flows.............................      4

   Notes to Consolidated Financial Statements .......................      5



<PAGE>

                     INDEPENDENT ACCOUNTANT'S REVIEW REPORT


To the Shareholders and Board of Directors
R-Tec Holdings, Inc.
Boise, Idaho

We have reviewed the balance sheet of R-Tec  Holdings,  Inc. as of September 30,
2000 and the related statements of operations and cash flows for the three-month
and  six-month  periods  ended  September  30,  2000 and 1999.  These  financial
statements are the responsibility of the Company's management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A review  of  interim  financial
information consists principally of applying analytical  procedures to financial
data and making  inquiries of persons  responsible  for financial and accounting
matters.  It is  substantially  less in scope than an audit in  accordance  with
generally accepted auditing standards,  the objective of which is the expression
of an opinion regarding the financial statements taken as a whole.  Accordingly,
we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the  accompanying  financial  statements  in order  for them to be in
conformity with generally accepted accounting principles.

BALUKOFF, LINDSTROM & CO., P.A.


October 25, 2000

                                      -1-

<PAGE>

                       R-TEC HOLDING, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET


                                                                   September 30,
                                                                       2000
                                                                     ---------

Current assets
     Cash                                                            $  97,826
     Accounts receivable (net of $-- allowance
         for doubtful accounts)                                         58,200
     Costs and estimated earnings in excess
         of billings on uncompleted contracts                           37,306
     Prepaid expenses                                                     --
     Notes receivable, current portion                                   1,862
                                                                     ---------
                                           Total current assets        195,194

Equipment, at cost, net of accumulated depreciation                    115,020
Other assets                                                            19,742
Notes receivable, less current portion                                  23,809
                                                                     ---------

                                                   Total assets      $ 353,765
                                                                     =========

Current liabilities
     Accounts payable                                                $  47,805
     Accrued expenses                                                   70,817
     Accrued dividends payable                                          21,954
     Income taxes payable                                                4,761
     Billings in excess of costs and estimated
         earnings on uncompleted contracts                               7,296
     Lease payable, current portion                                     11,812
     Notes payable, related parties                                    100,000
                                                                     ---------
                                      Total current liabilities        264,445

Lease payable, less current portion                                     28,244
                                                                     ---------
                                              Total liabilities        292,689

Shareholders' equity
     Series A cumulative convertible preferred stock, par value
         $0.23437 per share, 5,000,000 authorized, 2,401,118
         shares issued and outstanding                                 562,750
     Common stock, no par value per share,
         30,000,000 authorized, 8,533,594 shares
         issued and outstanding                                        221,729
     Additional paid-in capital                                        107,439
     Accumulated deficit                                              (830,842)
                                                                     ---------
                                     Total shareholders' equity         61,076
                                                                     ---------

                     Total liabilities and shareholders' equity      $ 353,765
                                                                     =========

                             See accompanying notes

                                      -2-

<PAGE>

                       R-TEC HOLDING, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                    Three Months Ended September 30,        Nine Months Ended September 30,
                                                        2000                1999                2000               1999
                                                    -----------         -----------         -----------         -----------

<S>                                                 <C>                 <C>                 <C>                 <C>
Revenues                                            $   129,201         $   382,374         $   880,868         $ 1,139,561

Operating costs                                         188,812             192,555             870,877             814,130
                                                    -----------         -----------         -----------         -----------

                                Gross profit            (59,611)            387,789               9,991             523,401

Selling, general and administrative expenses            135,578              52,727             375,741             164,430
Research and development                                  9,418              17,116
                                                    -----------         -----------         -----------         -----------

                     Operating income (loss)           (204,607)            137,092            (382,866)            161,001

Interest expense                                        (18,256)             (7,468)            (10,416)            (15,269)
Other                                                       486               3,890               1,487               4,419
                                                    -----------         -----------         -----------         -----------
                                                         (2,090)             (3,578)             (8,929)            (10,850)
                                                    -----------         -----------         -----------         -----------

Income (loss) before income taxes                      (206,697)            133,514            (391,795)            150,151
Income taxes                                                 --              29,107                  --              69,488
                                                    -----------         -----------         -----------         -----------

                           Net income (loss)           (206,697)            104,407            (391,795)             80,663

Preferred stock dividends                                11,817                  --              21,954                  --
                                                    -----------         -----------         -----------         -----------

                 Net income (loss) available
                      to common shareholders        $  (218,514)        $   104,407         $  (413,749)        $    80,663
                                                    ===========         ===========         ===========         ===========

Net income (loss) per common share                  $     (0.03)        $      0.01         $     (0.05)        $      0.01
Weighted average shares outstanding                   8,533,594           8,533,594           8,533,594           8,533,594
</TABLE>

                             See accompanying notes

                                      -3-

<PAGE>

                       R-TEC HOLDING, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                              Nine Months Ended September 30,
                                                                   2000              1999
                                                                ---------         ---------
<S>                                                             <C>               <C>
Cash flows from operating activities
  Net income (loss)                                             $(391,795)        $  80,663
  Adjustments to reconcile net income (loss) to net
    cash provided (used) by operating activities
    Depreciation and amortization                                  19,744            27,014
    Sale refund through issuance of note payable                       --
    Changes in assets and liabilities
      Accounts receivable                                          47,280            34,331
      Costs and estimated earnings in excess
        of billings on uncompleted contracts                       25,899            44,553
      Prepaid expenses                                              3,331               276
      Accounts payable                                            (40,034)          (87,000)
      Accrued expense                                               5,917           (21,678)
      Billings in excess of costs and estimated
        earnings on uncompleted contracts                         (18,682)          (52,977)
      Income taxes payable                                            557            52,581
      Deferred income taxes                                        (8,197)           16,905
                                                                ---------         ---------
        Net cash provided (used) by operating activities         (355,980)           94,668

Cash flows from investing activities
  Purchase of equipment and other assets                          (50,018)          (15,668)
  Purchase of investment                                               --            (8,428)
                                                                ---------         ---------
        Net cash provided (used) by investing activities          (50,018)          (24,096)
                                                                ---------         ---------

Cash flows from financing activities
  Collections on loans                                              1,465            70,555
  Proceeds from preferred stock                                   562,750                --
  Net payments on line of credit                                  (64,000)               --
  Payments on debt                                                     --           (84,201)
                                                                ---------         ---------
        Net cash provided (used) by financing activities          500,215           (13,646)
                                                                ---------         ---------

                         Net increase (decrease) in cash           94,217            56,926
Beginning cash                                                      3,609             3,338
                                                                ---------         ---------

                                             Ending cash        $  97,826         $  60,264
                                                                =========         =========

Supplemental disclosures of cash flow information
  Interest paid                                                 $   8,029         $   6,310
  Noncash investing and financing activities
    Preferred stock dividends payable                           $  21,954         $      --
    Equipment acquired through capital leases                   $  40,056         $      --
    Sale of equipment with debt assumption                      $      --         $ 138,675
</TABLE>

                             See accompanying notes

                                      -4-

<PAGE>

                       R-TEC HOLDING, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           September 30, 2000 and 1999

NOTE A - UNAUDITED INTERIM FINANCIAL STATEMENTS

In the opinion of management,  the accompanying  unaudited financial  statements
contain all  adjustments  (consisting  solely of normal  recurring  adjustments)
necessary to present fairly the financial position of R-Tec Holdings,  Inc. (the
Company) and the results of operations and cash flows. Certain reclassifications
of prior quarter amounts were made to conform with current quarter presentation,
none of which affect previously recorded net income.

NOTE B - EQUIPMENT

Equipment consists of:


       Equipment                                                $   85,378
       Vehicles                                                     31,171
       Office equipment and furnishings                             60,630
                                                                ----------
                                                                   177,179
       Accumulated depreciation and amortization                   (62,159)
                                                                ----------

                                                                $  115,020
                                                                ==========

NOTE C - CUSTOMER AGREEMENT

The Company entered into a $58,706  agreement with a customer during March 2000.
The  agreement  was  created  as a  result  of a  product  return.  Terms of the
agreement  require twelve monthly payments of $4,892,  commencing in April 2000.
The  Company  does not  allow  for  product  returns  within  the terms of their
contracts.  However, to satisfy this customer, the product was repurchased.  The
balance of the  agreement  at  September  30,  2000 is $24,461 and the amount is
included in accrued expenses.

NOTE D - NOTES PAYABLE, RELATED PARTIES

The Company  redeemed stock from the shareholders on November 4, 1999 by issuing
a note for $100,000.  The redemption represented the 20% minority interest as of
that date. The note is payable only from available  earnings of R-Tec and is not
scheduled  to  commence  until  January 1, 2001.  Interest  accrues at the prime
lending rate.

NOTE E - CAPITAL LEASE PAYABLE

The Company entered into a capital lease payable for $40,056 during August 2000.
Terms of the lease require thirty-six monthly payments of $1,389,  commencing in
September 2000.

                                      -5-

<PAGE>

NOTE F - INCOME TAXES

The Company is in a net operating loss carryforward position as of September 30,
2000. The net operating loss approximates  $367,000.  A full valuation allowance
has been provided to offset the deferred tax assets related to the net operating
loss carryforward.

NOTE G - PREFERRED STOCK AND SUBSEQUENT EVENTS

The Board of Directors  adopted an amendment to the Articles of Incorporation in
January  2000 to provide for the  original  preferred  stock to be divided  into
series, with the first series, Series A Preferred Stock, consisting of 2,133,399
shares of cumulative  convertible  preferred  stock with a par value of $.23437.
Dividends on this preferred  stock are  cumulative  from the date of issuance at
the rate of $.0222 per share, per annum, payable out of funds legally available.
Such  dividends  are  payable  only when,  as, and if  declared  by the Board of
Directors, and shall accumulate from the date of issue, payable annually. Unpaid
dividends  are not interest  bearing.  Dividends on Common Stock can not be paid
until all dividends on the Series A Preferred  Stock have been paid. Each Series
A Preferred stock is convertible, at the option of the holder, at any time on or
before the fifth day before any  redemption  date  (January 31 each year) to the
Company's  Common  Stock.  The  conversion  price is $.23437 per share of Common
Stock.  The Series A Preferred  Stock shall be  automatically  converted  on the
earlier of the date  specified  by vote or written  consent or  agreement  of at
least two-thirds of the outstanding  shares of such series or immediately on the
closing of the sale of public  offering  of Common  Stock in excess of $5.00 per
share and $1,000,000 in proceeds.

On October 17, 2000, the Board of Directors  approved a revision to the Series A
Preferred  Stock.  The  revision  no longer  allows  the  holder  the  option of
redeeming Series A Preferred Stock into cash. Previous to this change,  Series A
Preferred Stock was redeemable into cash at the option of the holder. The Series
A Preferred  Stock has been presented in the equity section of the  consolidated
balance sheet as a result of this change.

The remaining preferred shares outstanding shall be designated,  as the Board of
Directors shall determine into classes,  series,  and preferences,  limitations,
restrictions and relative rights of each class or series of preferred stock.

The Board of  Directors  approved a stock  dividend of one share of Common Stock
for each share of Common  Stock  held as of  October  18,  2000.  The  financial
statements as of September 30, 2000, do not include this stock dividend.

                                      -6-

<PAGE>

NOTE H - ACQUISTION AND EMPLOYMENT AGREEMENTS

On September  13, 2000,  the Company  acquired  certain  assets of Creative Test
Solutions,  L.L.C.  for $10,000.  The Company entered into five-year  employment
agreements with two of the members of Creative Test Solutions,  L.L.C. on August
28, 2000.  As part of the  employment  agreement  the Company  provided  signing
bonuses in the form of Common Stock totaling  100,000  shares.  The Common Stock
has not been issued as of  September  31, 2000.  Accordingly,  the amount of the
bonus, $15,400, is included as accrued expenses in the financial statements.

                                      -7-

<PAGE>