<Page>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)

/X/  Quarterly report under Section 13 or 15(d) of the Securities Exchange Act
     of 1934

For the quarterly period ended September 30, 2001

/ /  Transition report under Section 13 or 15(d) of the Exchange Act

For the transition period from _____________ to ________

Commission file number 333-43732


                        Industrialex Manufacturing Corp.
        (Exact Name of Small Business Issuer as Specified in Its Charter)


          Colorado                                               84-1454260
(State or Other Jurisdiction of                               (I.R.S. Employer
Incorporation or Organization)                               Identification No.)


                            63-A South Pratt Parkway
                               Longmont, CO 80501
                    (Address of Principal Executive Offices)


                                  303-651-6672
                (Issuer's Telephone Number, Including Area Code)


Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15 (d) of the Exchange Act during the past 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 / /

The number of shares of the issuer's Common Stock outstanding on October 31,
2001 was 10,121,548.

Transitional Small Business Disclosure Format (check one): Yes / /   No /X/

<Page>

                     INDUSTRIALEX MANUFACTURING CORPORATION

                                   FORM 10-QSB
                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2001

                                TABLE OF CONTENTS

<Table>
<S>                                                                             <C>
PART I. FINANCIAL INFORMATION:

     Item 1. Consolidated Financial Statements (Unaudited)

               Consolidated Balance Sheets
                 September 30, 2001 and December 31, 2000 ..................     3

               Consolidated Statements of Deficit
                 Three and Nine Months Ended September 30, 2001 and 2000 ...     4

               Consolidated Statements of Operations
                 Three and Nine Months Ended September 30, 2001 and 2000 ...     5

               Consolidated Statements of Cash Flows
                 Nine Months Ended September 30, 2001 and 2000 .............     6

               Notes to Unaudited Consolidated Financial Statements ........     7

     Item 2. Management' Discussion and Analysis of Financial
               Condition and Results of Operations .........................     9

PART II. OTHER INFORMATION:

     Item 1. Legal Proceedings .............................................    13
     Item 2. Changes in Securities .........................................    13
     Item 3. Defaults Upon Senior Securities ...............................    13
     Item 4. Submission of Matters to a Vote of Security Holders ...........    13
     Item 5. Other Information .............................................    13
     Item 6. Exhibits and Reports on Form 8-K ..............................    13

SIGNATURES .................................................................    14
</Table>

                                       2
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INDUSTRIALEX MANUFACTURING CORP.

CONSOLIDATED BALANCE SHEETS (Unaudited)

<Table>
<Caption>
                                                                    September 30,        December 31,
                                                                        2001                 2000
                                                                    -------------        ------------
<S>                                                                 <C>                  <C>
ASSETS
Current Assets:
  Cash and cash equivalents                                         $    45,765          $   129,519
  Accounts receivable, net of allowance
    for doubtful accounts of $13,500                                    452,412              662,742
  Prepaids and other current assets                                     141,958              130,044
                                                                    -----------          -----------
           Total current assets                                         640,135              922,305

Property, Plant and Equipment, net                                      408,840              361,814

Other Assets:
  Note receivable from related party                                         --              101,080
  Deferred initial public offering costs                                     --              421,621
  Goodwill, net                                                       2,482,474            2,619,274
  Other assets                                                            7,606                7,606
                                                                    -----------          -----------
           Other assets                                               2,490,080            3,149,581
                                                                    -----------          -----------
Total Assets                                                        $ 3,539,055          $ 4,433,700
                                                                    ===========          ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Bank line of credit                                               $   143,000          $   380,995
  Current portion of notes payable                                      184,141              667,180
  Accounts payable                                                      326,677              598,132
  Accrued liabilities                                                   110,991              226,646
  Current portion of capital lease obligation                            11,485               10,877
                                                                    -----------          -----------
           Total current liabilities                                    776,294            1,883,830

Notes Payable, less current portion                                      78,329              642,820


Capital Lease Obligation, less current portion                           19,782               28,474

Commitments and Contingencies

Stockholders' Equity:
  Common stock, $.01 par value - 50,000,000 authorized,
     10,121,548 and 4,450,000  issued and outstanding at
     September 30, 2001 and December 31, 2000, respectively             101,215               44,500
  Additional paid-in capital                                          3,659,026            2,457,374
  Accumulated deficit                                                (1,095,591)            (581,698)
  Deferred compensation                                                      --              (41,600)
                                                                    -----------          -----------
      Total equity                                                    2,664,650            1,878,576
                                                                    -----------          -----------
Total Liabilities and Stockholders' Equity:                         $ 3,539,055          $ 4,433,700
                                                                    ===========          ===========
</Table>

See notes to consolidated financial statements.

                                       3
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INDUSTRIALEX MANUFACTURING CORP.

CONSOLIDATED STATEMENTS OF DEFICIT (Unaudited)

<Table>
<Caption>
                                 Nine Months Ended September 30,
                                     2001              2000
                                 -----------       -----------
<S>                              <C>               <C>
Deficit - Beginning of Year      $  (581,698)      $        --
Net loss                            (513,893)         (358,256)
                                 -----------       -----------
Deficit - End of Period          $(1,095,591)      $  (358,256)
                                 ===========       ===========
</Table>

See notes to consolidated financial statements.

                                       4
<Page>

INDUSTRIALEX MANUFACTURING CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

<Table>
<Caption>
                                          Three Months Ended September 30,    Nine Months Ended September 30,
                                               2001              2000             2001               2000
                                           -----------       -----------       -----------       -----------
<S>                                       <C>               <C>               <C>               <C>
Revenues                                   $   928,358       $ 1,352,364       $ 3,284,297       $ 2,295,046

Cost of sales                                  692,687         1,044,263         2,544,707         1,786,525
General and administrative expense             235,217           322,657           940,750           696,372
Depreciation and amortization expense           76,878            74,057           230,634           113,527
                                           -----------       -----------       -----------       -----------
Operating loss                                 (76,424)          (88,613)         (431,794)         (301,378)
Interest expense                               (10,617)          (50,251)          (78,773)          (66,240)
Other income (expense), net                      3,072             3,084            (3,326)            9,362
                                           -----------       -----------       -----------       -----------
Net Loss                                   $   (83,969)      $  (135,780)      $  (513,893)      $  (358,256)
                                           ===========       ===========       ===========       ===========
Loss Per Share
 Basic and Diluted                         $     (0.01)      $     (0.02)      $     (0.06)      $     (0.05)
                                           ===========       ===========       ===========       ===========
Weighted Average Number of
 Common Shares Outstanding
 Basic and Diluted                           9,705,994         7,430,333         8,977,907         6,568,777
                                           ===========       ===========       ===========       ===========
</Table>

See notes to consolidated financial statements.


                                       5
<Page>

INDUSTRIALEX MANUFACTURING CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

<Table>
<Caption>
                                                                     Nine Months Ended September 30,
                                                                         2001              2000
                                                                     -----------       -----------
<S>                                                                  <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                                          $  (513,893)      $  (358,256)
   Adjustments to reconcile net loss to net cash
   used in operating activities:
     Depreciation and amortization                                       230,634           113,527
     Non-cash compensation                                               107,320            23,370
     Changes in operating assets and  liabilities:
       Accounts receivable                                               210,330            46,441
       Prepaids and other current assets                                 (11,914)            1,318
       Other assets                                                           --          (218,940)
       Accounts payable                                                 (271,455)          331,198
       Accrued liabilities                                              (115,655)           67,700
                                                                     -----------       -----------
          Net cash provided by (used in)
            operating activities                                        (364,633)            6,358
                                                                     -----------       -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Payments for acquisitions, net of cash acquired                            --        (1,113,036)
   Capital expenditures                                                 (140,860)          (63,118)
                                                                     -----------       -----------
          Net cash used in investing activities                         (140,860)       (1,176,154)
                                                                     -----------       -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Issuance of common stock and common stock warrants                  1,290,348         1,228,500
   Borrowings under (payments on) bank line of credit, net              (237,995)          376,398
   Payments on capital lease obligations                                  (8,084)           (8,377)
   Payments on notes payable                                            (622,530)         (262,851)
   Amounts collected from related parties under note receivable               --            11,449
   Amount loaned to related party under note receivable                       --          (130,000)
   Distributions to member                                                    --           (16,034)
                                                                     -----------       -----------
          Net cash provided by financing activities                      421,739         1,199,085
                                                                     -----------       -----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                         (83,754)           29,289

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                           129,519            39,930
                                                                     -----------       -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                             $    45,765       $    69,219
                                                                     ===========       ===========
SUPPLEMENTAL CASH FLOW INFORMATION:
   Cash paid for interest                                            $    78,773       $    66,240
                                                                     ===========       ===========
</Table>

See notes to consolidated financial statements

                                       6
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                        INDUSTRIALEX MANUFACTURING CORP.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Background.

     Industrialex Manufacturing Corp. (the "Company") is a provider of
protective coating services to a broad range of companies in the manufacturing
industry. The Company's services include the application of chemical adhesions,
conformal coating, shielding, powder coating, liquid painting and screen
printing, to four categories of general products: metal, plastic, glass and
printed circuit board assemblies. These various adhesion processes provide many
benefits including enhanced general aesthetics and protection from hostile
environments, corrosion and electrostatic discharge. The markets we serve
include high technology, medical, aerospace, defense, consumer electronics, data
storage, semiconductor, transportation and general manufactured goods.

Note 2. Basis of Presentation

     The accompanying unaudited financial statements have been prepared by the
Company in accordance with the instructions to Form 10-QSB and therefore do not
include all information and notes necessary for a fair presentation of financial
position, results of operations and cash flows in conformity with accounting
principles generally accepted in the United States of America. The statements
should be read in conjunction with the Notes to Consolidated Financial
Statements for the year ended December 31, 2000 in the Company's Annual Report
on Form 10-KSB as filed with the Securities and Exchange Commission.

In the opinion of management, the accompanying unaudited financial statements
contain all adjustments necessary to present fairly the financial position of
the Company as of September 30, 2001, and the results of operations and cash
flows for the periods presented. All such adjustments are of a normal recurring
nature.

The financial statements include the accounts of Industrialex Manufacturing
Corp. and its wholly owned subsidiaries, Broomfield Industrial Painting, Inc.
(Broomfield), Decorative and Coating Systems, Inc. (Decorative) and Screen Tech
Graphics, Inc. (Screen Tech.) All significant intercompany transactions have
been eliminated.

The results of operations for the three month and nine month periods ended
September 30, 2001 are not necessarily indicative of the results that ultimately
may be achieved for the entire year and cannot be used to indicate financial
performance for the entire year.

Certain prior year amounts have been reclassified to conform with current year
presentation.

Note 3. Initial Public Offering

     The Company's registration statement on Form SB-2 (SEC File No. 333-43732)
covering the Company's IPO of 2,666,667 units at $0.75 was declared effective on
February 9, 2001. Each unit consisted of one share of common stock and one
common stock purchase warrant. Each purchase warrant entitles the holder to
purchase one share of common stock for two years from the close of the IPO at a
price of $1.00 in the first year and $1.25 in the second year. Thomson Kernaghan
& Co. Limited acted as the Company's agent to sell 2,000,000 units in Canada
only. Industrialex sold 332,882 units in this IPO directly to investors in the
United States at a price of $0.75 per unit.

                                       7
<Page>

Thomson Kernaghan & Co. Limited is not licensed to sell securities in the United
States and was not involved in the sale of the units in the United States.

Note 4. Debt Restructuring

     On April 4, 2001, a $610,000 note issued in connection with the acquisition
of Screen Tech under a stock purchase agreement dated June 7, 2000 was retired
as follows:

     a)   $350,000 was paid in cash;

     b)   $160,000 was paid by delivery of 213,333 shares of the Company's
          common stock and;

     c)   $100,000 is being paid in 18 equal monthly installments of principal
          and interest which began on May 15, 2001. The note bears interest at
          8.0%.

On April 17, 2001, a $700,000 note issued in connection with the acquisition of
Decorative under a stock purchase agreement dated May 1, 2000 was retired as
follows:

     a)   $200,000 was paid in cash;

     b)   $265,000 was paid by delivery of 353,333 shares of the Company's
          common stock and;

     c)   $235,000 is being paid in 24 equal monthly installments of principal
          and interest which began on May 17, 2001. The note bears interest at
          8.0%.


CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

     We have made certain forward-looking statements in this document and in the
documents referred to in this document, which are subject to risks and
uncertainties. These statements are based on the beliefs and assumptions of
management and on the information currently available to such management.
Forward-looking statements include information concerning possible or assumed
future results of Industrialex. These statements may be preceded by, followed
by, or otherwise include the words "believes," "expects," "anticipates,"
"intends," "plans," "estimates" or similar expressions.

The Company intends that such forward-looking statements be subject to the safe
harbors for such statements. The Company wishes to caution readers not to place
undue reliance on any such forward-looking statements, which speak only as of
the date made. Any forward-looking statements represent management's best
judgment as to what may occur in the future. However, forward-looking statements
are not guarantees of performance. They involve risks, uncertainties and
assumptions. The future results and stockholder values of Industrialex may
differ materially from those expressed in these forward-looking statements. Many
of the factors that will determine these results and values are beyond our
ability to control or predict. Investors are cautioned not to put undue reliance
on any forward-looking statements. Except for our ongoing obligations to
disclose material information as required by the federal securities law, we do
not have any intention or obligation to update forward-looking statements after
the date of this Quarterly Report on Form 10-QSB, even if new information,
future events or other circumstances have made them incorrect or misleading.

You should understand that various factors, in addition to those discussed
elsewhere in this document and the risk factors set forth in Item 2,
"Management's Discussion and Analysis of Financial Condition and Results of
Operations," of the Company's Annual Report on Form 10-KSB for the

                                       8
<Page>

year ended December 31, 2000, and other factors as may be identified from time
to time in the Company's filings with the Securities and Exchange Commission or
in the Company's press releases, could affect the future results of the Company
and could cause results to differ materially from those expressed in such
forward-looking statements

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

     The following discussion should be read together with Industrialex's
financial statements and accompanying notes included elsewhere in this Quarterly
Report on Form 10-QSB.

The Company's consolidated financial statements include the results of
operations for the three companies acquired in business combinations in 2000
accounted for under the purchase method from their respective dates of
acquisition.

RESULTS OF OPERATIONS

     The following table sets forth various items as a percentage of revenues
for the three and nine months ended September 30, 2001 and 2000.

<Table>
<Caption>
                                             Three Months Ended      Nine Months Ended
                                               September 30,           September 30,
                                             ------------------      ------------------
                                              2001        2000        2001        2000
                                             ------      ------      ------      ------
<S>                                          <C>         <C>         <C>         <C>
Revenues                                     100.0%      100.0%      100.0%      100.0%
Cost of sales                                 74.6%       77.2%       77.5%       77.8%
General and administrative expenses           25.3%       23.8%       28.6%       30.3%
Depreciation and amortization expense          8.3%        5.5%        7.0%        5.0%
Operating loss                                -8.2%       -6.5%      -13.1%      -13.1%
Interest expense                              -1.1%       -3.7%       -2.4%       -2.9%
Other income (expense), net                    0.3%        0.2%       -0.1%        0.4%
Net loss                                      -9.0%      -10.0%      -15.6%      -15.6%
</Table>

COMPARISON OF THE COMPANY'S RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2001 AND
2000

     Revenues decreased $424,000, or 31.4%, to $928,000 for the quarter ended
September 30, 2001 from $1,352,000 for the quarter ended September 30, 2000.
This decrease was due primarily to a decrease in revenues from existing
customers, including a customer who closed its local manufacturing facility.

     Cost of sales decreased $351,000, or 33.6%, to $693,000 for the quarter
ended September 30, 2001 from $1,044,000 for the same period in 2000. As a
percentage of revenues, cost of sales decreased 2.6% to 74.6% in 2001, from
77.2% in 2000. This decrease is due primarily to a reduction in direct labor and
material costs of approximately $319,000, or 4.7%, as a percentage of revenues,
offset by an increase of approximately 2.1%, as a percentage of revenues, due to
fixed or semi-variable expenses such as rent, utilities and insurance which
increased, as a percentage of revenues, due to the decrease in revenues noted
above.

     General and administrative expenses decreased $88,000, or 27.2%, to
$235,000 for the quarter ended September 30, 2001 from $323,000 for the same
period in 2000. This decrease is due primarily to the elimination of certain
positions during 2001 and the transfer of an employee to

                                       9
<Page>

operations from administration, along with certain other expense reductions
related to the general operation of the Company.

     Depreciation and amortization expense increased $3,000, or 4.1%, to $77,000
for the quarter ended September 30, 2001 from $74,000 for the same period in
2000. This increase is due to depreciation on capital additions since October 1,
2000.

     Interest expense decreased $39,000, or 22.0%, to $11,000 for the quarter
ended September 30, 2001 from $50,000 for the same prior year period. This
decrease is due to a decrease of $33,000 in interest expense on notes payable
issued in connection with the acquisitions of Decorative and Screen Tech due to
the debt restructuring noted above and a decrease of $6,000 in interest expense
on the line of credit and capital lease obligation due to reductions in the
outstanding balances.

COMPARISON OF THE COMPANY'S RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001
AND 2000

     Revenues increased $989,000, or 43.1%, to $3,284,000 for the nine months
ended September 30, 2001 from $2,295,000 for the same period in 2000. We
acquired Broomfield, Decorative and Screen Tech in April, May and July of 2000,
respectively. These acquisitions represented an increase in revenues of
$1,249,000 during the nine months ended September 30, 2001. This increase was
offset by a decrease in revenues from existing customers.

     Cost of sales increased $758,000, or 42.4%, to $2,545,000 for the nine
months ended September 30, 2001 from $1,787,000 for the same period in 2000. The
acquisition of Broomfield, Decorative and Screen Tech, noted above, increased
cost of sales by approximately $1,002,000, or 80.2% as a percentage of revenues
acquired, as noted above. This increase was offset by a reduction in cost of
sales, not including the effect of acquisitions, of approximately $244,000. The
combined effect resulted in cost of sales decreasing slightly to 77.5% in 2001,
from 77.8% in 2000.

     General and administrative expenses increased $245,000, or 35.2%, to
$941,000 for the year-to-date ended September 30, 2001 from $696,000 for the
same period in 2000. The acquisition of Broomfield, Decorative and Screen Tech,
noted above, increased G&A by approximately $242,000. The remaining increase is
comprised primarily of an increase in salary expense due to the addition of two
executive officers in May of 2000 and a one-time charge of approximately $80,000
related to severance costs for an executive of the Company. These increases were
offset by the elimination of certain positions during 2001 and the transfer of
an employee to operations from administration, along with certain other expense
reductions related to the general operation of the Company.

     Depreciation and amortization expense increased $117,000, or 103%, to
$231,000 for the year-to-date ended September 30, 2001 from $114,000 for the
same period in 2000. This increase is due primarily to increases of $66,000 in
amortization of goodwill, $35,000 in depreciation expense related to the
acquisitions noted above and $16,000 in depreciation on capital additions
January 1, 2000.

     Interest expense increased $13,000, or 19.7%, to $79,000 for the nine
months ended September 30, 2001 from $66,000 for the prior year period. This
increase is due to an increase of $16,000 in interest expense on the line of
credit noted above, offset by a decrease of $3,000 in interest expense on the
notes payable issued in connection with the acquisitions of Decorative and
Screen Tech as a result of the debt restructuring noted above.

                                       10
<Page>

LIQUIDITY AND CAPITAL RESOURCES

     During the nine months ended September 30, 2001, the Company incurred a net
loss of approximately $514,000. The Company has a line of credit with a bank
with a balance of approximately $143,000 at September 30, 2001 that matured on
October 10, 2001. The Company is working with the bank and management believes
the line of credit will be extended. The line of credit is also personally
guaranteed by an officer and majority shareholder of the Company. In its
operating plan, the Company contemplates generating positive cash flows from
operations commencing in the fourth quarter of 2001, largely through a reduction
in payroll and payroll related costs. The most significant components of the
Company's cost structure are payroll, benefits and other related costs that vary
largely with headcount. If the Company's current cash management activities do
not alleviate the near-term liquidity issues, the Company has a contingency plan
that can further reduce operating and overhead costs quickly so as to remain a
going concern. The cost reductions included in the contingency plan could have
an impact on the timing and ultimate amount of future revenues.

At September 30, 2001, the Company had cash of $46,000, a working capital
deficit of $136,000, borrowings of $143,000 under a line of credit, notes
payable of $262,000 related to the acquisitions of Decorative and Screen Tech,
capital lease obligations of $31,000 and available capacity under the line of
credit of $107,000. The Company's capitalization, defined as the sum of
long-term debt and stockholders' equity at September 30, 2001, was approximately
$2,763,000.

The Company has financed its operational growth and acquisitions primarily from
internally generated cash flow from operations, borrowings under the line of
credit and the issuance of equity securities.

The Company anticipates that its cash flow from operations and borrowings under
the line of credit will provide sufficient cash to enable the Company to meet
its working capital needs and debt service requirements through 2001. In the
event that cash flow from operations, if any, together with the proceeds of any
future financings, are insufficient to meet the Company's working capital needs
and the expenditures for debt service and facility expansion, Industrialex will
be required to re-evaluate its planned expenditures and expansion plans.

Management believes Industrialex will require additional funding to execute any
future expansion plans.

During the nine months ended September 30, 2001, net cash used in operating
activities was $365,000. Cash used in investing activities was $141,000. Net
cash provided by financing activities was $422,000, consisting of $1,290,000
from the issuance of common stock and common stock warrants, offset by net
payments of $622,000, $238,000 and $8,000 on the Company's notes payable, line
of credit and capital lease obligation, respectively.

In March 2000, Industrialex undertook a private placement of 2,357,000 special
warrants at $0.50 per special warrant. Each special warrant was converted into
one share of common stock for no additional consideration upon the Company's IPO
as described below.

The Company's registration statement on Form SB-2 (SEC File No. 333-43732)
covering the Company's IPO of 2,666,667 units at $0.75 was declared effective on
February 9, 2001. Each unit consisted of one share of common stock and one
common stock purchase warrant. Each purchase warrant entitles the holder to
purchase one share of common stock for two years from the close of the

                                       11
<Page>

IPO at a price of $1.00 in the first year and $1.25 in the second year. Thomson
Kernaghan & Co. Limited acted as the Company's agent to sell 2,000,000 units in
Canada only. Industrialex sold 332,882 units in this IPO directly to investors
in the United States at a price of $0.75 per unit. Thomson Kernaghan & Co.
Limited is not licensed to sell securities in the United States and was not
involved in the sale of the units in the United States.

The net proceeds to us from the sale of units in this IPO at the initial public
offering price of $0.75 per unit, after deducting estimated expenses of
approximately $475,000 and underwriting discounts and commissions and fees, were
approximately $975,000.

Industrialex does not have any commitments for material capital expenditures for
either the near or long term and none are presently contemplated over normal
operating requirements. Industrialex intends to consolidate the Longmont,
Broomfield and Decorative facilities into a single leased facility. This action
is contemplated as part of Industrialex's consolidation of the conformal coating
companies in Colorado. The Company expects to fund this consolidation primarily
with cash flows from operations and borrowings, including borrowings under the
line of credit, as well as the issuance of additional equity or debt. To the
extent the Company funds a significant portion of the consideration for the
consolidation with cash, it may have to increase the amount available for
borrowing under the line of credit or obtain other sources of financing through
public or private sale of debt or equity securities.

There can be no assurance that the Company will be able to secure such financing
if and when it is needed or on terms the Company deems acceptable. If the
Company is unable to secure acceptable financing, its consolidation program
could be negatively affected.

SEASONALITY AND INFLATION

     The Company does not believe that seasonality affects its operations in a
materially adverse manner. Management does not believe that inflation has had a
material effect on its results of operations. Quarterly results could be
materially affected by increases in labor, materials or other operating costs.
Therefore, results for any quarter are not necessarily indicative of the results
that the Company may achieve for any subsequent quarter or for a full year.

NEW ACCOUNTING PRONOUNCEMENTS

     In July 2001, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 141 ("SFAS 141"), "Business
Combinations." SFAS No. 141 requires that the purchase method of accounting be
used for all business combinations initiated after September 30, 2001. Goodwill
and certain intangible assets will remain on the balance sheet and not be
amortized. The Company implemented SFAS No. 141 on July 1, 2001. Implementation
of this standard had no material impact to the Company's financial condition or
results of operations.

In July 2001, the FASB issued Statement No. 142, "Goodwill and Other Intangible
Assets" ("SFAS 142"). SFAS No. 142 changes the accounting for goodwill from an
amortization method to an impairment-only approach. Amortization of goodwill,
including goodwill recorded in past business combinations, will cease upon
adoption of this statement. The Company is required to implement SFAS No. 142 on
January 1, 2002 and it has not determined the impact that this statement will
have on its consolidated financial position or results of operations.

                                       12
<Page>

In October 2001, the FASB issued Statement of Financial Accounting Standards No.
144 ("SFAS 144"), "Accounting for the Impairment or Disposal of Long-Lived
Assets." The Company is required to implement SFAS No. 144 no later than January
1, 2002. SFAS No. 144 contains the fundamental provisions of existing generally
accepted accounting principles with respect to the recognition and measurement
of long-lived asset impairment contained in SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of."
However, SFAS No. 144 provides new guidance intended to address certain
significant implementation issues associated with SFAS No. 121, including
expanded guidance with respect to appropriate cash flows to be used to determine
whether recognition of any long-lived asset impairment is required, and if
required, how to measure the amount of the impairment. SFAS No. 144 also
requires that any net assets to be disposed of by sale be reported at the lower
of carrying value or fair value less cost to sell, and expands the reporting of
discontinued operations to include any component of an entity with operations
and cash flow that can be clearly distinguished from the rest of the entity. The
Company has not completed its evaluation of the potential impact of this
statement on the Company's consolidated financial position or results of
operations.

                                     PART II
                                OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

     On September 18, 2001, the Colorado Civil Rights Division ("the Division")
notified the Company that a former employee filed a charge of alleged
discrimination, based on physical disability, with the Division. The charge is
styled as "Renee Kilpatrick vs. Screen Tech Graphics."

ITEM 2. CHANGES IN SECURITIES.

     None.

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)  Exhibits.

          None

     (b)  Reports on Form 8-K

          None

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<Page>

                                   SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) 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.

Date: November 19, 2001


INDUSTRIALEX MANUFACTURING CORP.
A Colorado corporation

By  /s/ Stephen J. King
    -------------------------------
    Stephen J. King
     Chief Financial Officer
      (Principal Financial and Accounting Officer)




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