U.S. SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549 FORM 10-QSB (Mark One) x
  QUARTERLY REPORT
  UNDER SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE
  ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2001 o
  TRANSITION REPORT
  UNDER SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE
  ACT OF 1934 FOR THE TRANSITION PERIOD FROM ___________ TO
___________ Commission
File No. 0-26682 TECHNOLOGY
  FLAVORS & FRAGRANCES, INC.(Name of Small
  Business Issuer in its Charter)Delaware
  11-3199437(State or other
  Jurisdiction of Incorporation
  (IRS Employer
  Identification No.)or Organization)10 Edison Street East, Amityville, New York
  11701(Address of Principal
  Executive Offices)(631) 842-7600(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 APPLICABLE
ONLY TO CORPORATE ISSUERS The number of outstanding shares of the
issuer's common stock, par value $.01 per share, as of April  17, 2001, was 13,024,473. Transitional Small Business Disclosure
Format (check one): YES
                NO X TECHNOLOGY FLAVORS & FRAGRANCES, INC.

INDEX
TO FORM 10-QSB

March
31, 2001

PART I - FINANCIAL INFORMATIONItem
  1. -
  Financial Statements
  (Unaudited)Consolidated Balance Sheets at March 31,
  2001
  and December 31, 2000Consolidated Statements of
  Operations 
  for the Three Months Ended March 31, 2001and March 31, 2000.Consolidated Statements of Cash
  Flows
  for the Three Months Ended March 31, 2001and March 31, 2000Notes to Consolidated
  Financial StatementsItem 2. -
  Management's Discussion and
  Analysis ofFinancial Condition and Results of OperationsPART II - OTHER INFORMATIONSIGNATURES

PART I

ITEM 1. - FINANCIAL STATEMENTS

TECHNOLOGY FLAVORS & FRAGRANCES, INC.CONSOLIDATED BALANCE SHEETS
(in U.S. Dollars)

AT
  MARCH 31,
  2001
  (Unaudited)
  AT
  DECEMBER 31,
  2000
  (Note)ASSETSCurrent
  assets:Cash
  and cash equivalents
  $134,382
  $195,387Receivables,
  net
  3,622,475
  2,953,620Inventories
  2,895,939
  2,829,974Prepaid
  expenses and other current assets
  104,979
  92,750Total
  current assets
  6,757,775
  6,071,731Fixed
  assets, net
  554,485
  547,441Intangible
  assets, net
  729,697
  770,235Other
  assets
  138,614
  145,346Notes
  receivable from related parties
  125,035
  125,035Total
  assets
  $8,305,606
  $7,659,788LIABILITIESCurrent liabilities:Accounts
  payable
  $1,647,315
  $1,180,905Accrued
  expenses
  76,955
  77,053Revolving
  credit facility
  1,293,550
  1,340,499Current
  portion of capital lease obligations
  23,642
  22,066Total
  current liabilities
  3,041,462
  2,620,523Capital
  lease obligations
  70,951
  58,107Deferred
  credits
  74,537
  71,4473,186,950
  2,750,077STOCKHOLDERS'
  EQUITYCommon
  stock:$.01
  par value, authorized 20,000 shares, issuedand outstanding
  13,024,473 shares
  130,245
  130,193Paid-in
  capital
  10,366,472
  10,363,542Accumulated
  deficit
  (5,378,061)
  (5,584,024)Total
  stockholders' equity
  5,118,656
  4,909,711Total
  liabilities and stockholders' equity
  $8,305,606
  $7,659,788Note:
  The
  balance sheet at December 31, 2000 has been derived from the audited
  financial statements at that date but does not include all of the information
  and footnotes required by generally accepted accounting principles for
  complete financial statements.See
accompanying notes.



TECHNOLOGY FLAVORS & FRAGRANCES,
INC.CONSOLIDATED
STATEMENTS OF OPERATIONS(in U.S. Dollars) (Unaudited)



For the three months ended March 31,2001
  2000Net
  sales
  $4,186,995
  $4,216,215Cost
  of sales
  2,356,748
  2,462,940Gross
  profit
  1,830,247
  1,753,275Operating
  expenses:Selling
  682,883
  611,936General
  and administrative
  491,142
  442,685Research
  and development
  349,193
  337,016Amortization
  49,322
  48,714Total
  operating expenses
  1,572,540
  1,440,351Income
  from operations
  257,707
  312,924Interest
  expense, net
  (34,998)
  (42,019)Income
  before provision for income taxes
  222,709
  270,905Provision
  for income taxes
  (16,746)
  (10,355)Net
  income
  $205,963
  $260,550Net
  income per common share - basic and diluted
  $.02
  $.02Weighted
  average common shares outstanding
  13,021,056
  12,549,787See
accompanying notes.

TECHNOLOGY FLAVORS & FRAGRANCES,
INC.CONSOLIDATED
STATEMENTS OF CASH FLOWS(in U.S. Dollars) (Unaudited)

For the three months ended March 31,2001
  2000Cash
  flows from operating activities:Net income
  $205,963
  $260,
  550Adjustments to
  reconcile net income to net cash
       provided by (used in) operating activities:Depreciation
  and amortization
  92,418
  90,252Deferred
  rent
  3,090
  3,090Accrued
  interest on notes receivable
  -
  (5,355)Changes
  in assets and liabilities:Accounts
  receivable
  (668,855)
  (658,703)Inventories
  (65,965)
  (314,394)Prepaid
  expenses and other current assets
  (12,229)
  (29,714)Other
  assets
  (2,052)
  (50,000)Accounts
  payable
  466,410
  772,764Accrued
  expenses
  (98)
  (49,171)Net
  cash provided by operating activities
  18,682
  19,339Cash
  flows from investing activities:Purchase
  of fixed assets
  (29,065)
  (47,362)Net
  cash used in investing activities
  (29,065)
  (47,362)Cash
  flows from financing activities:Proceeds
  from revolving credit facility
  3,415,000
  3,485,000Repayment
  of revolving credit facility
  (3,461,949)
  (3,496,851)Repayment
  of capital leases
  (6,655)
  (10,510)Proceeds
  from exercise of stock options
  2,982
  25,833Purchase
  and retirement of treasury stock
  -
  (25,833)Net
  cash used in financing activities
  (50,622)
  (22,361)Decrease
  in cash
  (61,005)
  (50,384)Cash
  - beginning of period
  195,387
  154,535Cash
  - end of period
  $134,382
  $104,151See
accompanying notes.

TECHNOLOGY
FLAVORS & FRAGRANCES, INC.NOTES
TO CONSOLIDATED FINANCIAL STATEMENTSMarch 31, 2001

(Unaudited)

1.  BASIS OF PRESENTATION

Technology Flavors & Fragrances, Inc.(the
"company," "us," "we" or "our")
develops and manufactures flavor and fragrance products used to provide or
enhance flavors or fragrances in a wide variety of consumer and industrial
products.

The accompanying unaudited
consolidated financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB. 
Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements.  In the opinion of our management,
all adjustments (consisting of normal recurring accruals) considered necessary
for a fair presentation have been included. 
Operating results for the three month period ended March 31, 2001 are
not necessarily indicative of the results that may be expected for the full
year ending December 31, 2001.  These
unaudited consolidated financial statements should be read in conjunction with
the consolidated financial statements and footnotes thereto included in our
Annual Report on Form 10-KSB for the year ended December 31, 2000.

2.  INVENTORIES

Components of
inventories are summarized as follows:March 31, 2001
  December 31, 2000Raw
  Materials
  $1,847,460
  $1,582,272Finished
  Goods
  1,048,479
  1,247,702$2,895,939
  $2,829,9743.  EARNINGS PER SHARE

Basic net  income per share is calculated using the weighted average number
of shares of our common stock outstanding during the period.   Diluted net income per share for the three
month periods ended March 31, 2001 and 2000 was calculated using the weighted
average common stock and common stock equivalents that were outstanding during
the period.  The effect of common stock
equivalents for the three month periods ended March 31, 2001 and 2000 was not
material and, thus, diluted net income per share was not presented.

ITEM 2.



MANAGEMENTS DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations

The
following information for the three month periods ended March 31, 2001  and March 31, 2000 has been derived from our
unaudited consolidated financial statements and should be read in conjunction
with our Annual Report on Form 10-KSB for the year ended December 31, 2000.

Three months ended
  March 31,2001
  2000(dollar amounts in
  thousands)Net
  sales
  $4,187
  100.0%
  $4,216
  100.0%Gross
  profit
  1,830
  43.7
  1,753
  41.6Operating
  expenses:Selling
  683
  16.3
  612
  14.5General
  and administrative
  491
  11.7
  442
  10.5Research
  and development
  349
  8.3
  337
  8.0Amortization
  49
  1.2
  49
  1.2Income
  from operations
  258
  6.2
  313
  7.4Interest
  expense, net
  35
  0.9
  42
  1.0Provision
  for income taxes
  17
  0.4
  10
  0.2Net
  income
  206
  4.9
  261
  6.2Net sales.  Net sales for the three month period ended
March 31, 2001 was $4,187,000 as compared to net sales of $4,216,000 for the
three month period ended March 31, 2000.

Gross profit.  Gross profit, as a percentage of sales,
increased 2.1% to 43.7% on net sales of $4,187,000 for the first quarter of
2001 from 41.6%  on net sales of
$4,216,000 for the first quarter of 2000. 
The increase is due principally to increased sales of high gross margin
flavor products.

Operating expenses:

Selling
expenses.  Selling expenses increased by $71,000, or
12%, to $683,000 for the first quarter of 2001 from $612,000 for the comparable
2000 period due principally to the hiring of an additional sales person during
the latter part of 2000 and increases in sales promotion expenses.

General and
administrative expenses. 
General and administrative expenses increased by $49,000, or 11%, to
$491,000 for the first quarter of 2001 from $442,000 for the first quarter of
2000 due principally to the hiring of our new President, and to a lesser
extent, increases in professional fees.



Research
and development expenses.  Research and development expenses for the
three month period ended March 31, 2001 of $349,000 remained relatively
unchanged from $337,000 in the comparable 2000 period.

Amortization
expense.  Amortization expense for the three months
ended March 31, 2001 and March 31, 2000 was $49,000 for both periods.

Total operating expenses.Total operating expenses increased by
$132,000, or 9%, to $1,572,000 for the first quarter of 2001 from $1,440,000
for the first quarter of 2000 as a result of the factors described above.

Interest expense, net.  Interest expense decreased by $7,000, or
17%, to $35,000 for the first quarter of 2001 from $42,000 for the comparable
2000 quarter due principally to lower interest rates in 2001 on outstanding
borrowings under our revolving credit facility.

Provision for income taxes.Provision for income taxes represents state
franchise taxes and federal alternative minimum tax.  There were no federal income tax provisions for 2001 and 2000
since we had available net operating loss carryforwards.

Net income.Net income for the first quarter of 2001 was
$206,000 as compared to net income of $261,000 for the first quarter of 2000.

Liquidity and Capital Resources

Historically,
our financing needs have been met through issuances of equity and debt
securities and commercial bank loans. 
In June 1999, we entered into a Loan and Security Agreement with a
lender which provided for a three year $3,000,000 revolving credit
facility.  We call this revolving credit
facility the 1999 Credit Facility. 
Outstanding borrowings under the 1999 Credit Facility initially bore
interest at a rate of three quarters of one percent (0.75%) in excess of a
prime lending rate, and is subject to certain adjustments based upon our
financial performance.  Effective January
1, 2000, the interest rate was reduced to one quarter of one percent (0.25%) in
excess of a prime lending rate. 
Borrowings under the 1999 Credit Facility are subject to certain
eligibility requirements relating to our receivables and inventories and the
discretion of the lender.  Outstanding
borrowings are secured by substantially all of our assets, including our
product formulations.  We must comply
with certain financial and other covenants contained in the Loan and Security
Agreement, including maintaining tangible net worth of at least $1,750,000,
achieving not less than 75% of our projected pre-tax income for the upcoming
year, and incurring expenditures for capital assets of not more than $450,000
for the year.  Our subsidiaries have
guaranteed our obligations under the 1999 Credit Facility.  Borrowings under the 1999 Credit Facility at
March 31, 2001 and at December 31, 2000 were $1,294,000 and $1,340,000,
respectively.  At March 31, 2001,
$1,706,000 was available for additional borrowings in accordance with the terms
of the 1999 Credit Facility. The outstanding borrowings under the 1999 Credit
Facility were classified as a current liability.  At March 31, 2001, outstanding borrowings bore interest at 8.25%
per annum.

At
March 31, 2001, working capital increased by $265,000, or 8%, to $3,716,000
from $3,451,000 at December 31, 2000.

PART II - OTHER INFORMATION





Item
  1.
  Legal
  ProceedingsNoneItem
  2.
  Changes
  in SecuritiesNoneItem 3.
  Defaults upon Senior
  SecuritiesNoneItem 4.
  Submission of Matters
  to a Vote of Security HoldersNoneItem 5.
  Other InformationNoneItem 6.
  Exhibits and Reports
  on Form 8-Ka) ExhibitNoneb) Reports on Form 8-KNone

SIGNATURES



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

Dated:  
April 18, 2001

TECHNOLOGY FLAVORS & FRAGRANCES,
  INC.By
  /s/  Joseph A. GemmoJoseph
  A. GemmoVice
  President and Chief Financial Officer
  (Principal Financial Officer and Officer Duly
  Authorized to Sign on Behalf of Registrant)