U.S. 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: 333-52418
                       ---------------------------------

                            BAYLOR INDUSTRIES, INC.
                  --------------------------------------------
                 (Name of small business issuer in its charter)

      Nevada                                              76-0639842
------------------------                                --------------
(State or other jurisdiction of                         (IRS Employer
incorporation  or  organization)                        Identification No.)

    14601 Bellaire Blvd. Suite 338, Houston, TX                   77083
------------------------------------------------------          ---------
    (Address of principal executive offices)                    (Zip Code)

                                 (281) 564-6418
                             ----------------------
                           (Issuer's telephone number)

----------------------------------------------------------------------------

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the  Exchange  Act of 1934 during the past 12 months
(or 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 [ ]  No [X]

             APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                 PROCEEDING DURING THE PRECEDING FIVE YEARS

Check whether the Registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by a court.

                                   Yes [ ]  No [ ]

                                        1
<PAGE>

The Registrant has 20,000,000 Common Stock, authorized, 2,000,000 shares
of common stock issued and outstanding, par value $0.001 per share as of
September 30, 2001.  Preferred stock, $0.001 par value per share, 5,000,000
shares authorized, no preferred stock issued nor outstanding as of
September 30, 2001.

Traditional Small Business Disclosure Format (check one) Yes [  ] No [X]

                                       2
<PAGE>

PART I.  FINANCIAL INFORMATION

Item 1.   Financial Statements.................................   4
          CPA Review Letter....................................   5
          Balance Sheet (unaudited)............................   6
          Statements of Operations (unaudited).................   7
          Statements of Cash Flows (unaudited).................   8
          Notes to Financial Statements........................  9-10

Item 2.  Management's Discussion and Analysis of Plan
         of Operation..........................................  11


PART II. OTHER INFORMATION

Item 1.   Legal Proceedings....................................  14
Item 2.   Changes in Securities and Use of Proceeds............  14
Item 3.   Defaults upon Senior Securities......................  14
Item 4.   Submission of Matters to a Vote
          of Security Holders..................................  14
Item 5.   Other Information..................................... 14
Item 6.   Exhibits and Reports on Form 8-K...................... 14
Signatures...................................................... 15

                                      3

PART I. FINANCIAL INFORMATION

ITEM 1.  Financial Statements

The unaudited financial statements of registrant for the nine months ended
September 30, 2001, follow.  The financial statements reflect all adjustments
which are, in the opinion of management, necessary to a fair statement of
the results for the interim period presented.

                                     4
<PAGE>

G. BRAD BECKSTEAD
---------------------------
Certified Public Accountant

                                                      330 E. Warm Springs
                                                     Las Vegas, NV  89119
                                                             702.528.1984
                                                      425.928.2877 (efax)

                    INDEPENDENT ACCOUNTANT'S REVIEW REPORT

Board of Directors
Baylor Industries, Inc.
(a Development Stage Company)
Las Vegas, NV

I have reviewed the accompanying balance sheet of Baylor Industries, Inc.
(a Nevada corporation) (a development stage company) as of September 30,
2001 and the related statements of operations for the three and nine
months ended September 30, 2001 and 2000 and for the period March 29,
2000 (Inception) to September 30, 2001, and statements of cash flows for
the nine month period ending September 30, 2001 and 2000 and for the
period March 29, 2000 to September 30, 2001.  These financial statements
are the responsibility of the Company's management.

I conducted my reviews 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
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements taken as a whole.  Accordingly,
I do not express such an opinion.

Based on my reviews, I am not aware of any material modifications that
should be made to the accompanying financial statements referred to above
for them to be in conformity with generally accepted accounting principles.

The accompanying financial statements have been prepared assuming the
Company will continue as a going concern.  As discussed in Note 2 to the
financial statements, the Company has had limited operations and has not
commenced planned principal operations.  This raises substantial doubt
about its ability to continue as a going concern.  Management's plans in
regard to these matters are also described in Note 2.  The financial
statements do not include any adjustments that might result from the
outcome of this uncertainty.

I have previously audited, in accordance with generally accepted auditing
standards, the balance sheet of Baylor Industries, Inc. (a development
stage company) as of December 31, 2000, and the related statements of
operations, stockholders' equity, and cash flows for the year then ended
(not presented herein) and in my report dated February 28, 2001, I
expressed an unqualified opinion on those financial statements.

October 29, 2001

/s/ G.Brad Beckstead
------------------------------
G. Brad Beckstead,CPA

                                     5
<PAGE>


                             Baylor Industries, Inc.
                         (a Development Stage Company)
                                  Balance Sheet

<TABLE>
<CAPTION>

BALANCE SHEET

                                       (unaudited)
                                       September 30,      December 31,
                                           2001              2000
                                         ----------      -----------
<S>                                      <C>               <C>

Assets

Current assets:
       Cash                              $  3,508          $  504
                                         --------          ------
       Total current assets                 3,508             504
                                         --------          ------
                                         $  3,508          $  504
                                         ========          ======

Liabilities and Stockholders' Equity

Current liabilities:
      Loan from shareholder              $  1,000          $    -
      Other current liability                  85              85
                                         --------          ------
          Total current liabilities         1,085              85
                                         --------          ------
                                            1,085              85

Stockholders' (Deficit):

Common stock, $0.001 par value, 20,000,000
  shares authorized, 2,000,000 shares
  issued and outstanding                    2,000            2,000
Additional paid-in capital                  3,750                -
Deficit accumulated during
  development stage                        (3,327)     v    (1,581)
                                           -------          -------
                                            2,423              419
                                           -------          -------
                                         $  3,508          $   504
                                         =========          =======

</TABLE>

The accompanying Notes are an integral part of these financial statements.


                                   6
<PAGE>

                            Baylor Industries, Inc.
                        (a Development Stage Company)
                           Statement of Operations
                                 (unaudited)
       For the Three and Nine Months Ending September 30, 2001 and 2000
    and For the Period March 29, 2000 (Inception) to September 30, 2001

<TABLE>
<CAPTION>

STATEMENT OF OPERATIONS

                     Three Months Ending  Nine Months Ending   Mar 29, 2000
                         September 30,       September 30,    (Inception) to
                     -------------------  ------------------   September 30,
                          2001      2000      2001     2000        2001
                       ----------  -------  -------- --------  -------------
<S>                     <C>        <C>       <C>       <C>       <C>
Revenue                 $      -   $      -  $      -  $      -  $      -
                        --------   --------  --------  --------  --------
Expenses:
  General
  administrative
  expenses                    675         -     1,746         -     3,327
                        --------   --------  --------  --------  --------
     Total expenses           675         -     1,746         -     3,327
                        --------   --------  --------  --------  --------
Net (loss)              $    (675) $      -  $ (1,746) $      -  $ (3,327)
                        ========   ========  ========  ========  =========

Weighted average
  number of common
  shares outstanding   2,000,000   2,000,000  2,000,000  2,000,000  2,000,000
                       =========   =========  =========  =========  =========
Net (loss) per share   $  (0.00)   $       -  $  (0.00)  $       -  $  (0.00)
                       =========   =========  =========  =========  =========
</TABLE>

The accompanying Notes are an integral part of these financial statements.

                                   7
<PAGE>

                            Baylor Industries, Inc.
                        (a Development Stage Company)
                           Statement of Cash Flows
                                 (unaudited)
         For the Nine Months Ending September 30, 2001 and 2000
    and For the Period March 29, 2000 (Inception) to September 30, 2001

<TABLE>
<CAPTION>

STATEMENT OF CASH FLOWS

                                                                March 29,
                                      Nine Months Ending          2000
                                        September 30,        (Inception) to
                                    ---------------------      September 30,
                                       2001        2000            2001
                                    ---------    --------    -----------
<S>                                  <C>           <C>          <C>
Net (loss)                           $ (1,746)     $      -     $ (3,327)
Adjustments to reconcile net
(loss) to net cash (used) by
operating activities
Increase in other
  current liabilities                       -             -           85
                                     --------      --------     ---------
Net cash (used) by
   operating activities              $ (1,746)     $      -     $ (3,242)
                                     --------      --------     ---------

Cash flows from
   investing activities                     -             -             -
                                     --------      --------     ---------
Net cash used by
   investing activities                     -             -             -
                                     --------      --------     ---------

Cash flows from
   financing activities
      Loan from shareholder            1,000              -        1,000
      Contributed capital              3,750              -        3,750
      Issuance of common stock             -           2,000       2,000
                                     --------      --------     ---------
Net cash provided by
   financing activities                4,750           2,000       6,750
                                     --------      --------     ---------
Net increase in cash                   3,004           2,000       4,183
Cash - beginning                         504               -           -
                                     --------      --------     ---------
Cash - ending                        $ 3,508       $   2,000    $  3,508

Supplemental disclosures:

     Interest paid                   $     -       $       -    $      -
                                     =======       =========    ========
     Income taxes paid               $     -       $       -    $      -
                                     =======       =========    ========

</TABLE>

The accompanying Notes are an integral part of these financial statements.


                                   8
<PAGE>

                         Baylor Industries, Inc.
                      (a Development Stage Company)
                                  Notes


Note 1 - Basis of Presentation

The consolidated interim financial statements included herein, presented
in accordance with United States generally accepted accounting principles
 and stated in US dollars, have been prepared by the Company, without
audit, pursuant to the rules and regulations of the Securities and Exchange
Commission.  Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules
and regulations, although the Company believes that the disclosures are
adequate to make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring
adjustments, which, in the opinion of management, are necessary for fair
presentation of the information contained therein.  It is suggested that
these consolidated interim financial statements be read in conjunction w
ith the financial statements of the Company for the year ended December 31,
2000 and notes thereto included in the Company's 10-KSB annual report.
The Company follows the same accounting policies in the preparation of
interim reports.

Results of operations for the interim periods are not indicative of annual
results.

Note 2 - Going concern

These consolidated financial statements have been prepared in accordance
with generally accepted accounting principles applicable to a going concern
which contemplates the realization of assets and the satisfaction of
liabilities and commitments in the normal course of business.  As at
September 30, 2001, the Company has not recognized revenue to date and
has accumulated operating losses of approximately $3,300 since inception.
The Company's ability to continue as a going concern is contingent upon the
successful completion of additional financing arrangements and its ability
to achieve and maintain profitable operations.  Management plans to raise
equity capital to finance the operating and capital requirements of the
Company.  Amounts raised will be used to further development of the
Company's products, to provide financing for marketing and promotion, to
secure additional property and equipment, and for other working capital
purposes.  While the Company is expending its best efforts to achieve the
above plans, there is no assurance that any such activity will generate
funds that will be available for operations.

These conditions raise substantial doubt about the Company's ability to
continue as a going concern.  These financial statements do not include
any adjustments that might arise from this uncertainty.


                                    9

<PAGE>


                         Baylor Industries, Inc.
                      (a Development Stage Company)
                                  Notes


Note 3 - Related party transactions

A shareholder contributed $3,750 to the Company as additional paid-in
capital.

The Company does not lease or rent any property.  Office services are
provided without charge by a director.  Such costs are immaterial to the
financial statements and, accordingly, have not been reflected therein.
The officers and directors of the Company are involved in other business
activities and may, in the future, become involved in other business
opportunities.  If a specific business opportunity becomes available,
such persons may face a conflict in selecting between the Company and
their other business interests.  The Company has not formulated a policy
for the resolution of such conflicts.

Note 4 - Shareholders equity

A shareholder contributed $3,750 to the Company as additional paid-in
capital.


                                   10
<PAGE>


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATIONS

The current core business of Baylor Industries, Inc. is to develop
and contract manufacture generic prescription pharmaceutical products.
The Company hopes to develop a generic pharmaceutical product, utilizing an
FDA approved contract laboratory and contract manufacturing facilities. The
Company hopes to obtain an Abbreviated New Drug Application (ANDA) for its
generic pharmaceutical product.  The Company has limited itself to the
development of one product; however, this does not preclude the company from
seeking other product opportunities.  At this time, it does not have the
resources to pursue multiple products.  The Company plans to target a low
volume pharmaceuticals product, in which its U.S. patent recently expired.
Generally speaking, low volume pharmaceutical products are not quickly
brought to the market as generic products by the larger generic
pharmaceutical drug facilities, since the cost to produce a low volume
generic product outweighs its return on investment.   Barrington
Laboratories, Inc., believes it can minimize the cost of producing generic
pharmaceutical products by out-sourcing the steps necessary to obtain Food
and Drug Administration (FDA) approval.

The goal of Baylor Industries, Inc. is to obtain an ANDA (Abbreviated
New Drug Application) from the FDA to produce and market a pharmaceutical
product where the patent on the brand name product has expired, and then
market its generic version.  The FDA requires one holder (a primary contact)
of the ANDA.  The Company needs to consider where or not the contract
manufacturer will submit the submission package to the FDA, and be the
holder of the ANDA for this product.  If this becomes the case, the Company
would need to enter into a contract with the contract manufacturer to be the
exclusive distributor of this product.

The Company is seeking a contract manufacturer to produce a generic
pharmaceutical product.  Management needs to conduct further work to
determine whether the work will be subcontracted to a particular contract
pharmaceutical manufacturer.  Since this is a lengthy process, the Company
believes it is too premature to determine the actual holder of the ANDA for
this product.

Going Concern - The Company experienced operating losses for the period
ended September 30, 2001.  The financial statements have been prepared
assuming the Company will continue to operate as a going concern which
contemplates the realization of assets and the settlement of liabilities
in the normal course of business.  No adjustment has been made to the
recorded amount of assets or the recorded amount or classification of
liabilities which would be required if the Company were unable to
continue its operations.  (See Financial Note 2.)

                                  11
<PAGE>

Loss Per Share - The Company adopted the provisions of Statement of
Financial Accounting Standards ("SFAS") No. 128, "Earnings Per Share" that
established standards for the computation, presentation and disclosure of
earnings per share ("EPS"), replacing the presentation of Primary EPS with
a presentation of Basic EPS.  It also requires dual presentation of Basic
EPS and Diluted EPS on the face of the income statement for entities with
complex capital structures.  The Company did not present Diluted EPS since
it has a simple capital structure.

The Company has not pursued or explored any opportunities for an acquisition
or merger.  This does not preclude that the Company may not explore any
opportunities in the future.

Results of Operations
---------------------

As a research and development Company, the Company has yet to generate any
revenues.  In addition, the Company does not expect to generate any revenues
over the next approximately to eighteen (18) months.  During the quarter
ended September 30, 2001, the Company experienced net losses $675.  Since the
Company's inception on March 29, 2000 the Company has lost $3,327.  These
expenses included general and administrative fees.  The Company does not
have any material commitments for capital expenditures.

Liquidity and Capital Resources
-------------------------------

The Company is authorized to issue 20,000,000 shares of its $0.001 par
value common stock and 5,000,000 shares of its $0.001 par value preferred
stock.

On March 14, 2000, the Company issued 2,000,000 shares of its $.001 par
value common stock for cash of $2,000.

On December 21, 2000, the Company filed with the U. S. Securities and
Exchange Commission for their review and approval a SB-2 Registration to
further capitalize the Company by offering for sale 3,000,000 shares of
common stock, at a purchase price of $0.025 per share.  The completion
of this offering would further capitalize the Company by $75,000, less
$6,000 in offering costs for a net to the Company of $69,000.  Without
this funding, the Company will be unable to move its business plan further.

To further capitalize the Company's sole shareholder contributed $3,750 to
the Company as additional paid-in capital.   See Financial "Note 3 "Related
party transactions" and "Note 4 - Shareholders equity."

Financial Footnote 2, states: " The Company's ability to continue as a
going concern is contingent upon the successful completion of additional
financing arrangements and its ability to achieve and maintain profitable
operations."  These conditions raise substantial doubt about the Company's
ability to continue as a going concern.

Market For Company's Common Stock

The common stock of the Company is currently not traded on the NASDAQ OTC
Bulletin Board or any other formal or national securities exchange.  There
is no trading market for the Company's Common Stock at present and there has
been no trading market to date.



                                     12
<PAGE>

There is currently no Common Stock which is subject to outstanding options
or warrants to purchase, or securities convertible into, the Company's
common stock.

Dividend Policy

The Company has not yet adopted any policy regarding payment of dividends.
No dividends have been paid since inception.

Forward-Looking Statements

This Form 10-QSB includes "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended.  All statements, other than
statements of historical facts, included or incorporated by reference in
this Form 10-QSB which address activities, events or developments which the
Company expects or anticipates will or may occur in the future, including
such things as future capital expenditures (including the amount and nature
thereof), finding suitable merger or acquisition candidates, expansion and
growth of the Company's business and operations, and other such matters are
forward-looking statements.  These statements are based on certain
assumptions and analyses made by the Company in light of its experience and
its perception of historical trends, current conditions and expected future
developments as well as other factors it believes are appropriate in the
circumstances.  However, whether actual results or developments will conform
with the Company's expectations and predictions is subject to a number of
risks and uncertainties, general economic market and business conditions;
the business opportunities (or lack thereof) that may be presented to and
pursued by the Company; changes in laws or regulation; and other factors,
most of which are beyond the control of the Company.

Consequently, all of the forward-looking statements made in this Form 10-QSB
are qualified by these cautionary statements and there can be no assurance
that the actual results or developments anticipated by the Company will be
realized or, even if substantially realized, that they will have the
expected consequence to or effects on the Company or its business or
operations.  The Company assumes no obligations to update any such forward-
looking statements.

                                       13
<PAGE>

                           PART II OTHER INFORMATION

ITEM 1.  Legal Proceedings

The Company is not a party to any legal proceedings.

ITEM 2.  Changes in Securities and Use of Proceeds

None.

ITEM 3.  Defaults upon Senior Securities

None.

ITEM 4.  Submission of Matters to a Vote of Security Holders

During the quarter ended September 30, 2001, no matters were submitted to the
Company's security holders.

ITEM 5.  Other Information

None.

ITEM 6.  Exhibits and Reports on Form 8-K

  3     Articles of Incorporation & By-Laws

               (a)Articles of Incorporation of the Company filed March
               29, 2000.  Incorporated by reference to the exhibits to
               the Company's General Form For Registration Of Securities
               Of Small Business Issuers on Form SB-2, previously filed
               with the Commission on December 21, 2000.

               (b)By-Laws of the Company adopted March 29, 2000.
               Incorporated by reference to the exhibits to the Company's
               General Form For Registration Of Securities Of Small
               Business Issuers on Form SB-2, previously filed with the
               Commission on December 21, 2000.

  13    Annual or Quarterly Reports

               (a) Form 10-KSB for the year ended December 31, 2000.
               Incorporated by reference to the Company's Annual
               Report for Small Business Issuers on Form 10-KSB,
               previously filed with the Commission on March 19, 2001.

               (b) Form 10-QSB for the quarters ended March 31, 2001
               and June 30, 2001.  Incorporated by reference to the
               Company's Quarterly Report for Small Business Issuers
               on Form 10-QSB, previously filed with the Commission.

  23    Consent of Experts and Counsel

               Consent of Independent Public Accountant


                                       14
<PAGE>

                                   SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.

                                          BAYLOR INDUSTRIES, INC.
                                          -----------------------
                                              (Registrant)

Date:  November 8, 2001                By: /s/ Candace J. Sherman
                                       -----------------------
                                               Candace J. Sherman
                                               President/
                                               principal executive officer/
                                               principal accounting officer
                                               and sole director


                                       15
<PAGE>