UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


For Quarter Ended: July 31, 2001          Commission File Number:   0-30783
                   -------------                                  -----------

                             ACT INTERNATIONAL, INC.
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)

        Nevada                                            87-06263223
-------------------------------                      -------------------
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                       Identification No.)


4035 South 300 West, #6, Salt Lake City, UT                 84107
-------------------------------------------               ----------
(Address of principal executive offices)                  (Zip Code)

                                 (801) 281-3073
              ---------------------------------------------------
              (Registrant's telephone number, including area code)


         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the proceeding 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.
[ X ] Yes         [    ] No

         Indicate the number of shares outstanding of each of the issuer/s
classes of common stock as of the last practicable date:

                                                  Number of Shares Outstanding
           Date                                        At July 31, 2001
           ----                                   ----------------------------

         Common Stock                                    16,899,960

<PAGE>


                             ACT INTERNATIONAL, INC.

                                      INDEX

 PART I   FINANCIAL INFORMATION

       Item 1.  Financial Statements

             Balance Sheets....................................................

             Statements of Operations..........................................

             Statements of Cash Flows..........................................

             Notes of Consolidated Financial Statements (Unaudited)............

       Item 2.  Managements Discussion and Analysis of Financial
                Condition and Results of Operations............................

PART II OTHER INFORMATION

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

             Signature Page....................................................

<PAGE>


PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

                             ACT INTERNATIONAL, INC.
                          (A Development Stage Company)
                            Balance Sheet (Unaudited)



                                                                  July 31, 2001
                                                                  -------------

                           Assets
                           ------
Current assets - cash                                              $       121

Technology, net of accumulated amortization of $210,416                294,584
Deposit                                                                 25,000
                                                                   -----------
                                    Total assets                   $   319,705
                                                                   -----------

                           Liabilities and Stockholders' Equity
                           ------------------------------------

Current liabilities - related party payable                        $   102,550
                                                                   -----------

Commitments                                                                  -

Stockholders' equity:
         Preferred stock, $.001 par value; 5,000,000 shares
           authorized, no shares issued or outstanding                       -

         Common stock, $.001 par value; 100,000,000 shares
           authorized, 16,899,960 shares issued and outstanding         16,900

         Additional paid-in capital                                  2,384,095

         Deficit accumulated during the development stage           (2,183,840)
                                                                   -----------

                                   Total stockholders' equity          217,155
                                                                   -----------
                                   Total liabilities and
                                     stockholders' equity          $   319,705
                                                                   -----------

The accompanying notes are an integral part of these Consolidated
Financial Statements

<PAGE>

                             ACT INTERNATIONAL, INC.
                          (A Development Stage Company)
                       Statement of Operations (Unaudited)


<TABLE>
<CAPTION>


                                          Three Months Ended        Nine Months Ended       Cumulative
                                          July 31,                  July 31,                  Amounts
                                          ---------------------------------------------        Since
                                          2001         2000         2001        2000         Inception
                                          -----------------------------------------------------------------

<S>                                       <C>          <C>         <C>          <C>          <C>
Revenue                                   $        -   $        -  $         -  $        -   $          -

General and administrative expenses          110,445      180,508      671,007     639,322      2,183,840
                                          -----------------------------------------------------------------
Loss before income taxes                    (110,445)    (180,508)    (671,007)   (639,322)    (2,183,840)

Income tax benefit                                 -            -            -           -              -
                                          -----------------------------------------------------------------
                           Net loss       $ (110,445)  $ (180,508) $  (671,007) $ (639,322)  $ (2,183,840)
                                          -----------------------------------------------------------------
Loss per share - basic and diluted        $     (.01)  $     (.01) $      (.04) $     (.04)
                                          ----------------------------------------------------

Weighted average common shares -
  basic and diluted                       16,900,000   16,117,000   16,900,000  16,214,000
                                          ----------------------------------------------------
</TABLE>


The accompanying notes are an integral part of these consolidated
financial statements

<PAGE>


                             ACT INTERNATIONAL, INC.
                          (A Development Stage Company)
                       Statement of Cash Flows (Unaudited)
<TABLE>
<CAPTION>


                                                           Nine Months Ended
                                                           July 31,                      Cumulative
                                                           -------------------------     Amounts Since
                                                           2001           2000           Inception
                                                           --------------------------------------------
<S>                                                        <C>          <C>            <C>

Cash flows from operating activities:
         Net loss                                          $  (671,007) $  (639,322)   $    (2,183,840)
         Adjustments to reconcile net loss to net
         cash used in operating activities:
                  Amortization expense                          75,750       75,753            210,417
                  Issuance of common stock for services              -      250,000            409,804
                  Recognition of prepaid expense acquired
                    through the issuance of common stock       539,583            -            925,000
         Increase in deposits                                  (15,000)           -            (25,000)
         (Decrease) increase in accounts payable                (6,615)     (12,480)                 -
         Increase in related party payables                     66,550            -            102,550
                                                           -------------------------------------------
                                    Net cash used in
                                    operating activities       (10,739)    (326,049)          (561,069)
                                                           -------------------------------------------
Cash flows from investing activities:                                -            -                  -
                                                           -------------------------------------------
Cash flows from financing activities:
         issuance of common stock                                    -      339,000            561,190
                                                           -------------------------------------------
Net (decrease) increase in cash                                (10,739)      12,951                121

Cash, beginning of period                                       10,860        1,122                  -
                                                           -------------------------------------------
Cash, end of period                                        $       121  $    14,073    $           121
                                                           -------------------------------------------
</TABLE>
<TABLE>
<CAPTION>

                                                     Nine Months Ended
                                                     July 31,                         Cumulative Amounts
                                                     ----------------------------     From
                                                     2001             2000            Inception
                                                     ---------------------------------------------------
<S>                                                  <C>           <C>                 <C>

Supplemental disclosure of
  cash flow information:
         Interest paid                               $    -        $      -            $         -

         Income taxes paid                           $    -        $      -            $         -
</TABLE>

The accompanying notes are an integral part of these consolidated
financial statements
<PAGE>

                             ACT INTERNATIONAL, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements

                                                                   July 31, 2001


1.       Basis of Presentation

         Unaudited Financial Statements
         In the opinion of the Company's management,  the accompanying unaudited
         financial statements contain all normal recurring adjustments necessary
         to present  fairly the  Company's  financial  position  for the interim
         period.  Results of operations  for the nine months ended July 31, 2001
         are not  necessarily  indicative of results to be expected for the full
         fiscal year ending October 31, 2001.

         The accompanying  unaudited financial  statements have been prepared in
         accordance  with generally  accepted  accounting  principles for annual
         financial   statements.   Although  the  Company   believes   that  the
         disclosures  in these  unaudited  financial  statements are adequate to
         make the information  presented for the interim periods not misleading,
         certain  information  and  footnote  information  normally  included in
         annual  financial  statements  prepared in  accordance  with  generally
         accepted accounting  principles have been condensed or omitted pursuant
         to the rules and regulations of the Securities and Exchange Commission,
         and these financial  statements  should be read in conjunction with the
         Company's audited annual financial statements included in the Company's
         October 31, 2000 Annual Report on Form 10-KSB.

         Going Concern
         The  accompanying   financial   statements  have  been  prepared  on  a
         going-concern basis, which contemplates  profitable  operations and the
         satisfaction of liabilities in the normal course of business.  As shown
         in the  statement of  operations,  the Company has had no revenues from
         operations  and reported a net loss for the period ended July 31, 2001.
         These  uncertainties  raise  substantial doubt about the ability of the
         Company to continue as a going concern.

         The Company's  continuation  as a going  concern is dependent  upon its
         ability to  satisfactorily  meet its debt  obligations and commence and
         obtain profitable operations.  In order to accomplish this, the Company
         will need to secure adequate new financing through the issuance of debt
         or equity instruments.  There can be no assurance that the Company will
         be successful in obtaining such funds. If the Company is not successful
         in these efforts,  it will be unable to continue in the  development of
         its technology and commence operations. The financial statements do not
         include  any  adjustments  that might  result from the outcome of these
         uncertainties.

         Net Loss Per Common Share
         Net loss per common share for the quarters ended July 31, 2001 and 2000
         is based on the weighted  average number of shares  outstanding  during
         the period.


<PAGE>



Item 2.  Management's Discussion and Analysis or Plan of Operation.

The Company includes certain  estimates,  projections and other  forward-looking
statements  in its  reports,  presentations  to  analysts  and  others and other
material  disseminated  to the public.  There can be no  assurance  as to future
performance  and  actual  results  may  differ  materially  from  those  in  the
forward-looking  statements.  Factors that could cause actual  results to differ
materially from estimates or projections contained in forward-looking statements
include:  (i) the  effects of vigorous  competition  in the markets in which The
Company  operates;  (ii) the cost of entering  new markets  necessary to provide
products and  services;  (iii) the impact of any unusual  items  resulting  from
ongoing  evaluations  of the  Company's  business  strategies;  (iv)  unexpected
results  of  litigation  filed  against  the  Company:  and (v) such  risks  and
uncertainties as are detailed from time to time in the Company's public reports,
including this Report.

Plan of Operation

Management of ACT focused its activity  through the quarter ending July 31, 2001
on developing a dynamic business plan to provide the shareholders of the Company
an improved return on investment,  and establishing a market for its securities.
Management also determined  that certain  acquisitions of small  businesses that
would benefit from the use of the Company's diamond coating  technology,  should
be pursued.  With a view towards  improving  the  Company's  revenue  potential,
management  determined it would be in the best interest of the Company,  and its
shareholders,  to shift from its dependence on "royalty for license" strategy as
the sole source of Company  revenues,  to an operating  plan that would not only
receive  revenues  from license fees and  royalties,  but also from  acquired or
constructed  diamond  coating  centers  owned and  operated  by ACT,  performing
services in selected application fields. As a result of Management's decision to
develop  Company-owned  diamond  coating  facilities,  ACT has  acquired a small
coating  chamber,  and has almost  completed  the purchase of a large,  30 inch,
chamber, which will be modified to meet the operating standards of the Company's
Plasma Arc  Deposition  Patent.  The small  chamber will be used  primarily  for
research  and  development,  whereas  the  larger  chamber  can be used for both
research and  development  and for  production of coated  products.  The Company
believes that these chambers,  plus the mass  spectrometer  technology  acquired
from Frederick Haydock and his affiliated  corporations,  will be the foundation
for  the  Company's  technology  and  commercial  product  development  efforts.
Management  is  continuing  to  refine  its  business  plan   incorporating  the
acquisition and  construction of Company-owned  facilities,  while continuing to
license its Plasma Arc Diamond  Coating  Process to domestic  and  international
companies

In note 2 to its  financial  statements  as of October 31, 2000 set forth in the
Company's most recent 10-KSB,  its auditors state that the financial  statements
are presented on a going concern basis which  contemplates  the  realization  of
assets  and  satisfaction  of  liabilities  in the  normal  course of  business.
However,  the Company has  sustained  recurring  losses since  inception and has
negative  working  capital for the nine months ended July 31, 2000 and 2001. The
Company  experienced  operating  losses of $671,007 and  $639,322,  respectively
during those  periods,  with a cumulative  loss of $2,183,840  since the date of
inception.  Its ability to continue as a going  concern is  contingent  upon its
ability to secure additional  equity  financing,  initiate sales of its products
and  services,  and  thereby  attain  profitable  operations.  There  can  be no
assurance that the Company will succeed in obtaining such equity financing,  and
thereby  continue as a going concern.  The Company is pursuing  financing by the
<PAGE>

issuance of common stock  shares.  The Company  also plans to pursue  additional
financing on terms beneficial to the Company and its stockholders.  Without such
funds,  however,  the  Company  will  be  unable  to  comply  with  its  payment
obligations to vendors, employees and consultants.

The Company  anticipates  that it will require at least $2,000,000 in additional
debt or equity financing in order to continue as a going concern during the next
twelve  months  of  operation.  The  Company  plans to  attempt  to  enter  into
arrangements  to raise these funds  through the private or public sale of common
shares, and by initiating profitable operations.  No assurance can be given that
either of these plans will be realized and thus,  no assurance can be given that
the  Company  will be able to  continue  as a going  concern in the  foreseeable
future.

Results of Operations

For the period from inception to July 31, 2001, ACT had no revenues. The Company
had a cumulative net loss of $2,183,840 since inception. ACT had general and
administrative  expenses of $2,183,840,  which consisted of mainly  professional
fees related to public  relations and  promotion of the Company's  common stock,
compensation  expenses,   consulting  expenses,  research  and  development  and
amortization of technology.

For the  nine-month  periods ended July 31, 2001 and 2000,  ACT had no revenues.
The  Company  had a net loss of  $671,007  and  $639,322  for the same  periods,
respectively.  The Company's general and administrative expenses of $671,007 for
the  nine-months  ended July 31, 2001,  consisted  mainly of the  recognition of
prepaid expense in the amount of $539,583.  This expense related to an agreement
for public relation  services and promotion of the Company's  common stock.  The
Company  also  recognized   amortization  expense  of  $75,749  related  to  the
amortization of technology.  General and administrative expenses of $639,322 for
the nine months ended July 31, 2000, consisted mainly of compensation expense of
$270,925  which was mainly the result of 150,000  shares issued to an officer of
the Company,  amortization  expense of $75,753  related to the  amortization  of
technology, and research and development expenses of $147,980.

For the three-month period ended July 31, 2001, ACT had no revenues. The Company
had a net loss of  $110,445  for the same  period.  The  Company's  general  and
administrative  expenses  related to the operations for the  three-month  period
ended July 31, 2001 was  $110,445  which  consisted  mainly of  amortization  of
technology of $25,249 and recognition of prepaid expense of $77,084.

Liquidity and Capital Resources

ACT has in the  past and is  currently  experiencing  negative  cash  flow  from
operations.  The funding of future  operations will require further infusions of
capital.

If  additional  funds are raised by the Company  through the  issuance of equity
securities, securities convertible into or exercisable for equity securities, or
an equity  securities  exchange,  the  percentage  ownership of the then current
stockholders  of the Company  will be reduced.  The Company may issue  preferred
stock  with  rights,  preferences  or  privileges  senior to those of the Common
Stock.  Although  discussions  are on-going  with various  potential  sources of
additional  capital,  there  can  be no  assurance  that  the  Company  will  be
successful in its efforts to obtain adequate  capital nor if any such additional
capital is made available to the Company that it will be on terms and conditions
that are not extremely  dilutive to the present holders of the Common Stock. ACT
is  currently  applying  for listing on the NASDAQ  Over the Counter  Electronic
Bulletin  Board.  The  failure  of  the  Company  to  establish  trading  of its
securities  may  adversely  impact  the  Company's   ability  to  obtain  future
financing.

ACT's future revenues will be difficult to predict. Accordingly, any significant
shortfall of revenues in relation to  management's  expectations or any material
delay of  revenue  activities  would  have an  immediate  adverse  effect on its
business,  operating results and financial condition.  As a result of all of the
foregoing  factors,  management  believes that  period-to-period  comparisons of
ACT's results of operations  are not and will not  necessarily be meaningful and
should not be relied upon as any indication of future performance.

<PAGE>

Management of Growth; Dependence on Key Personnel.

In the future,  ACT will be required  to continue to improve its  financial  and
management  controls,  reporting systems and procedures on a timely basis and to
expand, train and manage its employee work force. There can be no assurance that
ACT will be able to effectively  manage such growth.  Its failure to do so would
have a material adverse effect on its business,  operating results and financial
condition.  Competition for qualified technical and other qualified personnel is
intense  and  there  can be no  assurance  that  ACT  will be  able to  attract,
assimilate or retain additional highly qualified employees in the future. If ACT
is  unable  to  hire  and  retain  such  personnel,  particularly  those  in key
positions,  its business,  operating  results and financial  condition  would be
materially adversely affected.  ACT's future success also depends in significant
part upon the  continued  service of its key  technical  and  senior  management
personnel.  The loss of the services of one or more of these key employees could
have a material adverse effect on its business,  operating results and financial
condition.  Additions of new and departures of existing personnel,  particularly
in key  positions,  can be  disruptive  and can result in departures of existing
personnel,  which  could  have a  material  adverse  effect  on ACT's  business,
operating results and financial condition.

On July 21, 2001,  the Company's  President  and  Director,  Fredrick J. Haydock
resigned. The Company was relying upon the expertise of Mr. Haydock in providing
engineering support for proprietary coating technology, laboratory and equipment
design and  implementation,  research and  development  for  improvement  of the
technology and development of coatings for specific  applications.  Although the
loss of Mr.  Haydock  could  have a  material  adverse  effect on the  Company's
business,  operating results and financial condition,  the Company believes that
such  effect  will be minimal  due to the  continued  support  of the  Company's
Chairman of the Board of  Directors  and inventor of the  Company's  proprietary
technology,  Alvin  Snapper.  In addition,  Mr. Haydock has indicated that he is
willing to provide the Company with consulting services.

David Taylor has been appointed acting president.


Dependence on Proprietary Technology; Risks of Infringement.

ACT's  success  depends  upon its  proprietary  technology.  ACT will  rely on a
combination  of  Patent,  trademark  and  trade  secret  laws,   confidentiality
procedures and licensing  arrangements  to establish and protect its proprietary
rights. As part of its confidentiality procedures, ACT will generally enter into
non-disclosure   agreements  with  its  employees,   consultants  and  corporate
partners,   and  license  agreements  with  respect  to  its  patent  and  other
proprietary  information.  Despite these  precautions,  it may be possible for a
third party to copy or  otherwise  obtain and use ACT's  products or  technology
without authorization, or to develop similar technology independently.  Policing
unauthorized  use of ACT's  products is difficult and  expensive.  ACT will make
proprietary  data available for licensees,  but the provision of information may
increase  the  likelihood  of   misappropriation   or  other  misuses  of  ACT's
intellectual  property.  There can be no assurance that ACT's  protection of its
patent and  proprietary  technology  will be adequate or that ACT's  competitors
<PAGE>

will not independently  develop similar technology,  duplicate ACT's products or
services,  or design  around  the ACT  patent,  or other  intellectual  property
rights.

ACT is not aware that any of its products  infringes the  proprietary  rights of
third parties.  There can be no assurance,  however, that third parties will not
claim such infringement by ACT with respect to current or future technology. Any
such claims, with or without merit, could result in costly litigation that could
absorb  significant  management time, which could have a material adverse effect
on ACT's business,  operating results and financial condition. Such claims might
require ACT to enter into royalty or license agreements. Such royalty or license
agreements,  if required,  may not be available on terms acceptable to ACT or at
all.  If such  agreements  are entered  into they could have a material  adverse
effect upon ACT's business, operating results and financial condition.

Part II - Other Information

    Item 1 - Legal Proceedings.

    The Company is party to the following Legal Proceedings:

(a).   Brockbank v. American Coating Technologies, Inc.

     (1) Name of Court: Third District Court for Salt Lake County, State of Utah
     (2) Date Proceedings Began: December 10, 1999
     (3) Principal Parties: Stephen W. Brockbank and ACT International, Inc.
     (4) Description of Facts: Plaintiff is the former president of ACT and sued
the Company seeking certain stock payments. The Company denied any liability and
asserted  counterclaims  for breach of fiduciary  duty,  conversion of corporate
property, embezzlement, fraud and breach of contract.
     (5) Relief  Sought:  Plaintiff  seeks  issuance of 300,000 shares of common
stock;  Defendant-Counterclaimant  seeks  damages  to be proven  at  trial,  but
believed to be in excess of $150,000.
     (6) Current Status: The Company is vigorously defending the claims asserted
against it and pursuing its counterclaims against the plaintiff.

    Item 6 - Exhibits and reports in Form 8-K

(a) None.
(b) On July 31, 2001,  the Company  filed a report on Form 8-K,  disclosing  the
resignation  of the Company's  President and Director,  Frederick J. Haydock and
the Company's response to Mr. Haydock's letter of resignation.

                                   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.

<PAGE>


                                        ACT INTERNATIONAL, INC.
                                        (Registrant)


                                        By       /s/ David Taylor
                                        ----------------------------------------
                                        Acting President, and Director
                                        Acting President, Secretary and Director

<PAGE>