U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                             ----------------------

                                   FORM 10-QSB

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

         For the quarterly period ended June 30, 1997

         [_]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
               OF THE SECURITIES EXCHANGE ACT

         For the transition period from _____________ to _______________

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

                         Commission File Number 0-22169

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


                        SOY ENVIRONMENTAL PRODUCTS, INC.
        (Exact name of small business issuer as specified in its charter)

          Delaware                                        48-1192445
(State or other jurisdiction of                (IRS Employer Identification No.)
incorporation or organization)

                               9135 Barton Street
                           Overland Park, Kansas 66214
                    (Address of principal executive offices)

                                 (913) 599-0800
                           (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 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  outstanding  of each of the  issuer's  classes of
common equity was 4,980,400  shares of common stock, par value $.001, as of June
30, 1997.

           Transitional Small Business Disclosure Format (check one):

Yes                   No      X
    -----------          -----------

================================================================================
<PAGE>
                        SOY ENVIRONMENTAL PRODUCTS, INC.
                           INDEX TO FORM 10-QSB FILING
                       FOR THE QUARTER ENDED JUNE 30, 1997

<TABLE>
<CAPTION>
                                TABLE OF CONTENTS                                            PAGE NUMBER

                                     PART I
                              FINANCIAL INFORMATION

<S>               <C>                                                                                  <C>
Item 1.  Financial Statement........................................................................   3
                  Consolidated Balance Sheet
                           June 30, 1997 (unaudited)................................................   3
                  Consolidated Statements of Operations
                           Three Months and Nine Months Ended June 30, 1997 (unaudited).............   4
                  Consolidated Statement of Cash Flows
                           Nine Months Ended June 30, 1997 (unaudited)..............................   5
                  Notes to Consolidated Financial Statements........................................   6

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

                                    PART II.
                                OTHER INFORMATION

None................................................................................................  10

                                   SIGNATURES
</TABLE>
                                       -2-
<PAGE>
                          PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                        SOY ENVIRONMENTAL PRODUCTS, INC.
                                 AND SUBSIDIARY

                           CONSOLIDATED BALANCE SHEET
                                  JUNE 30, 1997
                                   (UNAUDITED)

                                     ASSETS

Current Assets:

     Cash                                                             $  33,362
     Accounts Receivable                                                 16,076
     Inventory                                                           15,647
                                                                      ---------

              Total Current Assets                                       65,085

Furniture and Equipment                                                   4,748

Investment (Note 5)                                                     190,000

Organization costs, net (Note 1)                                          7,537
Licenses                                                                  5,000
                                                                      ---------

              Total Assets                                            $ 272,370
                                                                      =========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

     Accounts Payable (Note 5)                                        $  66,800
     Accrued Expenses                                                    69,028
     Notes Payable                                                      150,000
                                                                      ---------

              Total Current Liabilities                                 285,828
                                                                      ---------

Commitments (Note 9)

Stockholders' Equity:
     Common Stock, $.001 Par Value, 20,000,000 Shares
          Authorized, 4,980,400 Shares Issued and Outstanding             4,980
     Additional Paid in Capital                                         412,562
     Accumulated Deficit                                               (431,000)
                                                                      ---------

              Total Stockholders' Equity                                (13,458)
                                                                      ---------

              Total Liabilities and Stockholders' Equity              $ 272,370
                                                                      =========


                   The Accompanying Notes are an Integral Part
                           of the Financial Statements
                                       -3-
<PAGE>
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)


                                                Three Months       Nine Months
                                                   Ended              Ended
                                               June 30, 1997      June 30, 1997
                                               =============      =============
                                                                
Sales                                          $      23,991      $      32,170
                                                                
Cost of Sales                                         17,262             21,168
                                               -------------      -------------
                                                                
Gross Profit                                           6,729             11,002
                                                                
General and Administrative Expenses                  179,712            377,466
                                               -------------      -------------
                                                                
Loss from Operations                                (172,983)          (366,464)
                                                                
Miscellaneous Income                                     126                371
                                               -------------      -------------
                                                                
Net Loss                                       $    (172,837)     $    (366,093)
                                               =============      =============
                                                                
Loss Per Share (Note 1)                                 (.03)              (.07)
                                               =============      =============
                                                                
Weighted Average Shares Outstanding                4,980,400          4,980,400
                                               =============      =============
                                                                
                                                               

                   The Accompanying Notes are an Integral Part
                           of the Financial Statements
                                       -4-
<PAGE>
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                  For the Nine Month Period Ended June 30, 1997
                                   (Unaudited)

Reconciliation of Net Loss to Net Cash
         Provided by Operating Activities:

Net Loss                                                              $(366,093)
                                                                      ---------

Adjustments to reconcile net loss to net cash
         provided by operating activities:
                  Amortization                                            1,330

Changes in Assets and Liabilities:
         Accounts receivable                                            (12,726)
         Inventory                                                      (15,647)
         Deposit                                                          5,003
         Accounts payable                                                66,760
         Accrued expenses                                                69,028
                                                                      ---------

                                                                        113,748
                                                                      ---------

Net cash used by operating activities                                  (252,345)
                                                                      ---------

Cash flows for investing activities:
         Increase in furniture and equipment                             (4,748)
         Increase in investment                                         (40,000)
         Increase in organization costs                                  (8,867)
                                                                      ---------

Net cash used by investing activities                                   (53,615)

Cash flows from financing activities:
         Proceeds from issuance of stock                                164,642
         Proceeds from notes payable                                    150,000
                                                                      ---------

         Net cash provided by financing activities                      314,642
                                                                      ---------

Net increase in cash                                                      8,682

Cash at the beginning of period                                          24,680
                                                                      ---------

Cash at end of period                                                 $  33,362
                                                                      =========


                   The Accompanying Notes are an Integral Part
                           of the Financial Statements
                                       -5-
<PAGE>
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.       SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND NATURE OF OPERATIONS:

         Nature of Corporation.  Soy Environmental Products, Inc. and Subsidiary
(formerly Denom Acquisition  Corp.) (the "Company") was organized under the laws
of the State of  Delaware on January 10,  1996.  The Company was in  development
stage and had no  activity  from its  inception  through  October 21,  1996.  On
October 21, 1996, the Company acquired Delta Environmental,  Inc., through which
all  operations  are  conducted.  See Note 2 below.  On November 14,  1996,  the
Company  changed  its name from Denom  Acquisition  Corp.  to Soy  Environmental
Products, Inc. The principal business purpose of the Company is to engage in the
development  of,  ownership of interests in, and  operation of  facilities  that
produce  biodegradable  chemical  products,  and to establish national sales and
distribution networks for these products.

         Principles of Consolidation.  The consolidated  financial statements of
the Company  include the accounts of Soy  Environmental  Products,  Inc. and its
wholly-owned subsidiary,  Delta Environmental Inc. All significant inter-company
balances and transactions have been eliminated in consolidation.

         Revenue  Recognition.  Revenues are  recognized on the accrual basis of
accounting with revenue from product sales recognized at the time of shipment.

         Organization Costs.  Organization costs consist of costs incurred prior
to commencing operations. These costs consist primarily of professional fees and
administrative costs, and are amortized ratably over a five year period. For the
nine month  period ended June 30,  1997,  amortization  expense in the amount of
$1,330 was charged to operations.

         Interim Financial Information. The interim financial statements for the
nine  month  period  ended  June  30,  1997 are  unaudited.  In the  opinion  of
management,  such statements reflect all adjustments  (consisting only of normal
recurring  adjustments)  necessary for a fair presentation of the results of the
interim  period.  The results of operations for the nine month period ended June
30,  1997 are not  necessarily  indicative  of the  results  for the year ending
September 30, 1997. No financial statements for the three and nine month periods
ended  June  30,  1996  are  presented  for  comparative   purposes  because  no
significant operations occurred in these periods.

         Loss Per Common  Share.  The  computation  of loss per common  share is
based on the net loss  attributable  to  common  stockholders  and the  weighted
average  number  of common  shares  outstanding  for the  period.  Common  share
equivalents are not included,  as they are  anti-dilutive  in the calculation of
loss per share.

2.       REVERSE ACQUISITION:

         On September 3, 1996, the Company entered into an agreement to purchase
all of the outstanding common stock of Delta Environmental, Inc. The acquisition
was effective as of October 21, 1996. The  acquisition  of Delta  Environmental,
Inc. was accounted for using the purchase  method of accounting and as a reverse
merger  since  the   stockholders   of  Delta   Environmental,   Inc.   received
approximately 90% of the outstanding common stock of Soy Environmental Products,
Inc. In addition, pursuant to the merger agreement, 3,030,500 shares transferred
in the merger were specifically  excluded from the reverse stock split. See Note
12 below.

3.       PERVASIVENESS OF ESTIMATES.

         The  preparation of financial  statements in conformity  with generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that  affect the  reported  amounts of assets and  liabilities  and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. Actual results could differ from those estimates.
                                       -6-
<PAGE>
4.       RELATED PARTY TRANSACTIONS:

         Leasing   Arrangements.   The  Company  leases  office  space  under  a
month-to-month  operating lease  agreement with a related entity.  For the three
and nine month period ended June 30, 1997,  rental  expense for the office lease
was $10,694 and $35,202, respectively.

5.       INVESTMENT

         The  investment  consists of an approximate  25% ownership  interest in
Interwest, L.L.C., an Iowa limited liability company, which owns a facility that
will produce  products for the Company.  The  investment  will be accounted  for
under the equity method,  however, as of June 30, 1997, no material activity had
occurred with respect to the facility.

6.       STATEMENT OF CASH FLOWS:

         Non-Cash Financing Activities. For the nine month period ended June 30,
1997, the Company recognized  financing  activities that affected  stockholders'
equity, but did not result in cash receipts.

         As of  June  30,  1997,  these  non-cash  activities  consisted  of the
following:

                  Reverse acquisition of Delta Environmental,  Inc.'s net assets
                  in exchange for 3,760,600  shares of the Company's  restricted
                  common stock.

7.       ECONOMIC DEPENDENCY:

         The Company  purchases  substantially  all of its supply  methyl esters
from Interwest Cooperative, a non-related entity.

8.       COMPENSATION FROM OPTIONS:

         The  Company  has  issued  stock  options  pursuant  to  an  employment
agreement.  The options are  exercisable  at $.33 per share for a period of five
years from the grant date. At June 30, 1997,  there were 500,000 options granted
with no options exercised.

         The stock options  issued to the employees  have an exercise  price not
less than the fair market  value of the  Company's  common  stock on the date of
grant. In accordance  with  accounting for such options  utilizing the intrinsic
value method, there is no related compensation expense recorded in the Company's
financial  statements.  Had compensation cost for stock-based  compensation been
determined  based on fair  market  value at the grant date  consistent  with the
method of SFAS 123, the Company's net loss and loss per share for the nine month
period  ended June 30, 1997,  would have been  reduced to the pro forma  amounts
presented below:

         Net loss
                  As reported                                 $366,093
                  Pro forma                                   $436,093

         Loss per share
                  As reported                                 $    .07
                  Pro forma                                   $    .08

         The fair value of option  grants is  estimated  as of the date of grant
utilizing the  Black-Scholes  option-pricing  model with the following  weighted
average  assumptions  for grants in 1997:  expected life - two years,  risk-free
interest rates of eight percent and a zero percent dividend yield.

9.       COMMITMENTS:

         License  Agreement.  On September 15, 1996, Delta  Environmental,  Inc.
entered into a licensing agreement with Interchem Environmental,  Inc. for sales
of various Interchem  Environmental,  Inc.  products.  The contract provides for
royalties at a rate of one-
                                       -7-
<PAGE>
half of one percent of gross  sales.  In exchange for the  licensing  agreement,
Interchem Environmental, Inc. received 500,000 shares of Company common stock.

10.      NOTE PAYABLE:

         As of June 30, 1997, the note payable  consists of a 90-day  promissory
note payable to two  individuals  with  interest at the rate of nine percent per
annum, unsecured.

11.      SUBSEQUENT EVENT:

         Subsequent to the balance sheet date,  the Company  commenced a private
placement  pursuant to Regulation D promulgated  by the  Securities and Exchange
Commission.  The Company is  offering  for sale 15 units  consisting  of $60,000
Senior Convertible Notes and 60,000 three year warrants to purchase common stock
at an exercise price of $1.00 per share. Each $60,000 Senior Convertible Note is
convertible into 60,000 shares of common stock.

12.      REVERSE STOCK SPLIT:

         On November 8, 1996,  the  Company's  Board of  Directors  authorized a
one-for-six  reverse  split of the shares of the Company's  common  stock.  As a
result of the reverse split 4,621,500  shares were outstanding as of November 8,
1996.

13.      PROFORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS:

         The following  unaudited Proforma Condensed  Consolidated  Statement of
Operations  of Soy  Environmental  Products,  Inc.  gives  effect to the reverse
merger with Delta  Environmental,  Inc. as though such merger had occurred as of
October  1, 1996.  This  proforma  information  has been  prepared  based on the
estimates and assumptions set forth herein and in the notes to such  statements.
The unaudited  Proforma  Condensed  Consolidated  Statement of Operations do not
purport to be indicative of the results which  actually would have been obtained
had the purchase  been  effected on October 1, 1996, or of the results which may
be obtained in the future.

         The unaudited Proforma Condensed  Consolidated  Statement of Operations
is based on the purchase method of accounting and treated as a reverse merger.

             PROFORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                  For the Nine Month Period Ended June 30, 1997
                                   (Unaudited)


                                                    Historical        Proforma
                                Historical Soy       Delta(1)       Consolidated
                                --------------       --------       ------------

Sales                             $  32,170              --          $  32,170

Cost of Sales                        21,168              --             21,168

Gross Profit                         11,602              --             11,602

General and Administrative
         Expenses                   377,466            29,181         (406,647)
                                  ---------         ---------        ---------

Loss from Operations               (366,464)          (29,181)        (395,645)

Miscellaneous Income                    371              --                371

Net Loss                          $(366,093)        $ (29,181)       $(395,274)
                                  =========         =========        =========


(1)  Represents the operations of Delta Environmental,  Inc. for the period from
     October 1, 1996 through October 21, 1996, the date of the reverse merger.
                                       -8-
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

         The following  discussion  of the results of  operations  and financial
condition should be read in conjunction with the financial  statements and notes
thereto appearing elsewhere in this Form 10-QSB.  Prior to October 21, 1996, the
Company  had no  operating  history.  Subsequent  to October 21, 1996 all of the
Company's  operations are being carried out by its wholly owned subsidiary Delta
Environmental,  Inc.  ("DEI").  Therefore,  all discussions below concerning the
Company prior to the  acquisition of DEI relate to and reflect the operations of
DEI only.

RESULTS OF OPERATIONS

         The Company was a  development  stage  company at June 30,  1997,  with
nominal  revenues  generated  for the three and nine month  periods  then ended.
Additionally,  prior to October 21, 1996, the date DEI was acquired, no activity
had occurred with respect to the Company resulting in no prior year's operations
to compare to the Company's current operations.

         For the nine month period ended June 30, 1997, the Company had sales of
$32,170  with cost of sales  equal to  $21,168  resulting  in a gross  profit of
$11,002.  Cost of sales as a  percentage  of sales was 65.80%  for this  period.
General and administrative expenses were $377,466 for the nine months ended June
30, 1997 which resulted in a loss from  operations of $366,093 for the period or
$(.07) per share.

         For the three month period  ended June 30, 1997,  the Company had sales
of $23,991  with cost of sales equal to $17,262  resulting  in a gross profit of
$6,729.  Cost of sales as a  percentage  of sales was  71.95%  for this  period.
General and  administrative  expenses  were  $179,712 for the three months ended
June 30, 1997 which  resulted  in a loss from  operations  of  $172,983  for the
period or $(.03) per share.

         The Company  anticipates that its operating expenses will be increasing
so  that  the  Company's  future  profitability  will  depend  upon  significant
increases  in revenue from  operations.  While the Company  believes  that sales
revenue will increase due to the Company's marketing activities and distribution
agreements  recently entered into, there can be no assurance as to the amount of
income which the Company may be able to generate  from  distributions  and sales
operations.  Losses  have  primarily  resulted  from high  start-up  and general
administrative  costs compared to the Company's initial low sales volume.  Given
the  Company's  financial  resources,  its  anticipated  expenses and the highly
competitive environment in which it will operate, there can be no assurance that
the Company will be able to generate  sufficient  revenue to fund its current or
future  operations or that the Company's future operations will be profitable in
the near future or at all.

LIQUIDITY AND CAPITAL RESOURCES

         From the date of formation to the date of the  acquisition  of DEI, the
Company had no revenues or  operating  income.  For the nine month  period ended
June 30, 1997, the Company had nominal revenues of $32,170, primarily from sales
of samples and trial products. As of the date of acquisition of DEI, the Company
had no tangible  assets.  As a result of the acquisition of DEI on September 30,
1996, the Company had total assets of $181,515 and total stockholders' equity of
$124,774 compared to $272,370 and $(13,458),  respectively, as of June 30, 1997.
As of September 30, 1996,  the Company had current assets of $21,512 in the form
of cash and current  liabilities  of $56,799.  At June 30, 1997, the Company had
current  assets  of  $65,085,   comprised  of  $33,362  cash,  $16,076  accounts
receivable and $15,647 inventory, and current liabilities of $285,828.

         Since  inception,   the  Company's  working  capital  needs  have  been
satisfied by financing  activities primarily consisting of the private placement
of common stock and debt. The Company is currently  privately placing discounted
notes with a total face amount of $900,000.  As of  September 9, 1997,  $325,000
face amount of such notes had been sold resulting in net proceeds to the Company
of $263,855.  The Company  anticipates  meeting its working capital needs during
the current  fiscal year primarily with proceeds from the sale of securities and
secondarily  with revenues from sales and distribution  operations,  if any. The
Company believes that it will require substantial  additional funds to cover the
costs of  manufacturing  its  products,  general  and  administrative  overhead,
meeting its  reporting  obligations  under the  Securities  Exchange Act, and in
order to effect the  acquisition  of any entity or asset the Board of  Directors
deems  necessary for the growth or well being of the Company.  If such funds are
necessary,  the Company  will seek to borrow such funds  and/or raise such funds
through the private or public sale of its common stock or other  securities.  No
assurances can be given that such financing,  if required, will be available, or
that it can be obtained on terms satisfactory to the Company.  In the opinion of
management,  inflation  has not had a material  affect on the  operations of the
Company.
                                       -9-
<PAGE>
         During  the  next  12  months,  the  Company  anticipates  that it will
establish  a  manufacturer's   representative   organization  to  represent  the
Company's  products  throughout  the  U.S.  as  well  as  internationally.   The
organization will be responsible for contacting and developing target markets as
determined by the Company's segments involving large hardware/home center retail
chains and the light industrial and automotive users.  Management  believes that
the proceeds from its  financing  activities  as currently  anticipated  will be
sufficient  to provide for the  Company's  planned  expansion of its  marketing,
distribution and sales activities.

                           PART II. OTHER INFORMATION

None.

                                   SIGNATURES


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

                                            SOY ENVIRONMENTAL PRODUCTS, INC.
                                            (Registrant)



Dated:   October 15, 1997                   By      /s/ Lee E. Derr
         ----------------                     ----------------------------------
                                                        Lee E. Derr, Director
                                      -10-