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 June 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 June 30, 2000, is 8, 533,
594.

         Transitional Small Business Disclosure Format. Yes [ ]  No [X]


                                                                               1
<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 six months  ended of June 30, 2000,  reviewed by Balukoff,  Lindstrom & Co.,
P.A., certified public accountants.

ITEM 2.   MANAGEMENT'S DISCUSSION AND PLAN OF OPERATION:

RESULTS OF OPERATIONS: Second quarter revenues of $392,330 and an operating loss
of $74,457 were  essentially  as expected by  Management  with the  contracts in
process. Management is of the opinion that the projected sales of $2,000,000 for
the year are on target with projected net income in excess of $150,000 expected.
The  projected  revenues and net income are based on the expected  completion of
contracts  in process,  and any delay in  obtaining  parts from other  suppliers
could delay completion of a contract into the first quarter of 2001, however, at
present  Management  expects all  contracts to be timely  completed.  Management
anticipates  that the third quarter will have revenues  essentially  the same as
the first two quarters,  and that the  operating  results will be close to break
even, with the fourth quarter completion of existing contracts  resulting in the
final revenues and profits from the existing contacts in process.

FUNDING AND CAPITAL  RESOURCES:  Management  is of the opinion that present cash
reserves,  together with  receivables will be sufficient to carry the Company at
its present  level of  operations  through the current  year.  During the second
quarter the  Company  received  $144,100 in  Preferred  Stock  subscriptions  to
supplement the cash of the Company.

PLAN OF OPERATION:  The Company  continues to emphasize its primary  business of
custom automation, which is continuing with the growth rate established in prior
years.  Management  recognizes the profit and growth  constraints  involved with
custom  contracts,  and  continues  to  develop  its  second  area of  focus  on
fabrication of products  developed in custom  engineering  contracts,  but which
will have appeal as standard items to several  customers.  Such shelf items will
have a greater profit potential and immediate revenue recognition when sold. The
third area of focus,  high-tech  interconnect devices, is continuing to develop,
but is being  delayed  because of the  involvement  and  complications  of other
supplier parties.

INTORCORP MOTOR: IntorCorp is in the process of completing the filing of patents
for its inventions in the IntorCorp Motor.  Management of IntorCorp is currently
evaluating  patent  documents,  and potential  conflicts with existing  patents,
which  evaluation  is expected to be  completed  during the third  quarter.  The
manner in which the development of the IntorCorp Motor will continue will depend
on the evaluation and strength of the patent position.


                                                                               2
<PAGE>


                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS. None

ITEM 2.   CHANGES IN SECURITIES.

     During the second  quarter the Company  received  additional  subscriptions
from Series "A"  Preferred  Stock sold to existing  shareholders  of such stock,
namely:

       DATE              SHARES      CASH CONSIDERATION        SHAREHOLDER
       ----              ------      ------------------        -----------

     04/04/00             42,668           $10,000           Robert Montgomery
     04/04/00            128,003           $30,000           Ronald J. Tolman
     04/04/00            197,764           $46,350           Rulon L. Tolman
     04/14/00             75,735           $17,750           Ronald J. Tolman
     06/26/00             85,335           $20,000           George W. Wadsworth
     06/26/00             85,335           $20,000           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.  None

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: August 14,  2000             By /s/
                                           -----------------------------------
                                        Douglas G. Hastings, President and CEO


                                                                               3
<PAGE>



                        CONSOLIDATED FINANCIAL STATEMENTS



                               R-TEC HOLDING, INC.
                                 AND SUBSIDIARY



                             JUNE 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 June 30, 2000
and the  related  statements  of income and cash flows for the  three-month  and
six-month  periods ended June 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.


July 28, 2000


                                      -1-
<PAGE>

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


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


                                                                   June 30, 2000
                                                                   -------------
Current assets
      Cash                                                            $  51,092
      Accounts receivable (net of $-- allowance
          for doubtful accounts)                                         96,382
      Costs and estimated earnings in excess
          of billings on uncompleted contracts                           32,777
      Prepaid expenses                                                    3,798
      Notes receivable, current portion                                   5,078
                                                                      ---------
                          Total current assets                          189,127

Equipment, at cost, net of accumulated depreciation                      80,371
Other assets                                                             11,254
Notes receivable, less current portion                                   21,035

                          Total assets                                $ 301,787
                                                                      =========

Current liabilities

      Accounts payable                                                $   1,579
      Accrued expenses                                                   27,289
      Accrued dividends payable                                          10,137
      Income taxes payable                                                4,761
      Billings in excess of costs and estimated
          earnings on uncompleted contracts                               8,394
      Notes payable                                                      39,137
      Notes payable, related parties                                    100,000
                                                                      ---------
                          Total current liabilities                     191,297


Shareholders' equity

      Series A cumulative convertible preferred stock, par value
          $0.23437 per share, 5,000,000 authorized, 1,679,609
          shares issued and outstanding                                 393,650
      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                                              (612,328)
                                                                      ---------
                          Total shareholders' equity                    110,490
                                                                      ---------
          Total liabilities and shareholders' equity                  $ 301,787
                                                                      =========


                 See accompanying notes and accountants' report


                                       -2-
<PAGE>


                          R-TEC HOLDING, INC. AND SUBSIDIARY
                         CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                                 Three Months Ended June 30,            Six Months Ended June 30,
                                                                   2000               1999               2000               1999
                                                               -----------        -----------        -----------        -----------
<S>                                                            <C>                <C>                <C>                <C>
Revenues                                                       $   392,330        $   207,759        $   751,667        $   757,187

Operating costs                                                    265,379            124,397            550,815            489,595
                                                               -----------        -----------        -----------        -----------
            Gross profit                                           126,951             83,362            200,852            267,592

Selling, general and administrative expenses                       201,408            127,779            379,111            243,683
                                                               -----------        -----------        -----------        -----------
            Operating income (loss)                                (74,457)           (44,417)          (178,259)            23,909

Interest expense                                                    (6,217)              (876)            (7,840)            (7,801)
Other                                                                  471             (2,958)             1,001                529
                                                               -----------        -----------        -----------        -----------
                                                                    (5,746)            (3,834)            (6,839)            (7,272)
                                                               -----------        -----------        -----------        -----------
Income (loss) before income taxes                                  (80,203)           (48,251)          (185,098)            16,637
Income taxes                                                            --            (10,519)                --             40,381
                                                               -----------        -----------        -----------        -----------
            Net income (loss)                                      (80,203)           (37,732)          (185,098)           (23,744)

Preferred stock dividends                                           10,137                 --             10,137                 --
                                                               -----------        -----------        -----------        -----------
            Net income (loss) available
            to common shareholders                             $   (90,340)       $   (37,732)       $  (195,235)       $   (23,744)

Net income (loss) per common share                             $     (0.01)       $        --        $     (0.02)       $        --
Weighted average shares outstanding                              8,533,594          8,533,594          8,533,594          8,533,594
</TABLE>


                 See accompanying notes and accountants' report


                                       -3-
<PAGE>

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

<TABLE>
<CAPTION>

                                                                                Six Months Ended June 30,
                                                                                2000                 1999
                                                                              ---------            --------
<S>                                                                           <C>                  <C>
Cash flows from operating activities
     Net income (loss)                                                        $(185,098)           $(23,744)
     Adjustments to reconcile net income (loss) to net
           cash provided (used) by operating activities
           Depreciation and amortization                                         11,437              21,731
           Sale refund through issuance of note payable                          58,706                  --
           Changes in assets and liabilities
               Accounts receivable                                                9,098              24,271
               Costs and estimated earnings in excess
                of billings on uncompleted contracts                             30,428              46,667
               Prepaid expenses                                                    (468)                184
               Accounts payable                                                 (86,260)            (81,460)
               Accrued expense                                                  (27,611)            (12,623)
               Billings in excess of costs and estimated
                earnings on uncompleted contracts                               (17,584)             51,109
               Income taxes payable                                              (7,640)             18,765
               Deferred income taxes                                                 --              18,048
                    Net cash provided (used) by operating activities           (214,992)             62,948
                                                                              ---------            --------
Cash flows from investing activities
     Purchase of equipment and other assets                                     (48,629)            (19,336)
     Purchase of investment                                                          --              (8,428)
                                                                              ---------            --------
                         Net cash used by investing activities                  (48,629)            (27,764)
                                                                              ---------            --------
Cash flows from financing activities
     Collections on loans                                                         1,023              70,130
     Proceeds from preferred stock                                              393,650                  --
     Borrowings on line of credit                                                36,000                  --
     Payments on debt                                                          (119,569)            (84,201)
                                                                              ---------            --------
                    Net cash provided (used) by financing activities            311,104             (14,071)
                                                                              ---------            --------
                              Net increase (decrease) in cash                    47,483              21,113
Beginning cash                                                                    3,609               3,338
                                                                              ---------            --------
                                   Ending cash                                $  51,092            $ 24,451
                                                                              =========            ========


Supplemental disclosures of cash flow information
     Interest paid                                                            $   2,633            $  6,310
     Noncash investing and financing activities
          Sale refund through issuance of note payable                        $  58,706            $     --
</TABLE>


                 See accompanying notes and accountants' report


                                       -4-
<PAGE>


                       R-TEC HOLDING, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             June 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                                                             $  43,933
Vehicles                                                                 31,171
Office equipment and furnishings                                         60,630
                                                                      ---------
                                                                        135,734

Accumulated depreciation and amortization                               (55,363)
                                                                      ---------

                                                                      $  80,371
                                                                      =========

NOTE C - NOTES PAYABLE

The Company  entered into a $58,706  note  payable with a customer  during March
2000.  The note was created as a result of a product  return.  Terms of the note
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 note
payable at June 30, 2000 is $39,137.

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 - INCOME TAXES

The  Company is in a net  operating  loss  carryforward  position as of June 30,
2000. The net


                                      -5-
<PAGE>


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

operating  loss  approximates  $176,000.  A full  valuation  allowance  has been
provided to offset the deferred  tax assets  related to the net  operating  loss
carryforward.

NOTE F - PREFERRED STOCK

The Company has issued $500,000 of stock  subscriptions for preferred stock. 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.  At the  option of each  holder of Series A
Preferred stock, the Company shall redeem,  on the redemption date starting with
the year 2006 and continuing  thereafter,  the number of shares requested by the
holder, by paying cash at the rate of $.23437 per share.

The remaining preferred shares outstanding,  2,866,601,  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.


                                      -6-