UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549

                                    FORM 10-Q

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

               For the quarterly period ended: September 30, 2001

                                       OR

[ ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
       SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________________to_________________________

                         Commission file number 0-26972

                          Swissray International, Inc.
             (Exact name of registrant as specified in its charter)

                New York                                 16-0950197
    (State or other jurisdiction of                    (I.R.S. Employer
     incorporation or organization)                 Identification Number)

100 Grasslands Road, Elmsford, New York                      10523
(Address of principal executive offices)                  (Zip Code)

   New York (914) 345-3700                 Switzerland  011 41 41 914 12 00
              (Registrant's telephone number, including area code)

                                       N/A

              (Former name, former address and former fiscal year,
                          if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. [X] Yes [ ] No

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

The number of shares outstanding of each of the issuer's class of common stock,
as of the latest practicable date.

The number of shares outstanding of each of the registrant's classes of common
stock, as of November 6, 2001 is 84,771,525 shares, all of one class of $.01 par
value common stock.

<PAGE>








                                TABLE OF CONTENTS

                                     PART I

Item 1.   Financial Statements                                           F1-F6

Item 2.   Management's Discussion and Analysis of Financial Condition
          and Results of Operations                                       3-5

Item 3.   Quantitative and Qualitative Disclosures About Market Risk       6

                                     PART II

Item 1.   Legal Proceedings                                                6

Item 2.   Changes in Securities and Use of Proceeds                        7

Item 3.   Defaults Upon Senior Securities                                  7

Item 4.   Submission of Matters to a Vote of Security Holders              7

Item 5.   Other Information                                                7

Item 6.   Exhibits and Reports on Form 8-K                                 7

Signatures                                                                 8

                                        2



<PAGE>
                           SWISSRAY INTERNATIONAL INC.
                           CONSOLIDATED BALANCE SHEET

                                     ASSETS

                                              September 30,          June 30,
                                                 2001                 2001
                                             --------------      ---------------
                                              (Unaudited)
CURRENT ASSETS
Cash and cash equivalents                   $    979,519         $   1,588,490
Accounts receivable, net of allowance
 for doubtfulaccounts of $ 145,762
 and $ 134,700                                 2,271,819             2,104,385
Inventories                                    4,799,299             4,278,360
Prepaid expenses and sundry receivables          991,889               786,425
                                             -------------        --------------
Total Current Assets                           9,042,526             8,757,660
                                             -------------        --------------

PROPERTY AND EQUIPMENT, at cost                6,268,467             6,417,753
                                             -------------        --------------

OTHER ASSETS
Loan receivable affiliiates                      994,005               963,249
Licensing agreement                            1,986,630             2,110,794
Patents and trademarks                           139,064               145,782
Software develompent costs                       254,902               161,099
Security deposits                                 46,550                33,546
Goodwill                                       1,168,019             1,216,352
                                             -------------        --------------
TOTAL OTHER ASSETS                             4,589,170             4,630,822
                                             -------------        --------------
Total Assets                                $ 19,900,163         $  19,806,235
                                             =============        ==============

                                         F 1

<PAGE>

                           SWISSRAY INTERNATIONAL INC.
                           CONSOLIDATED BALANCE SHEET


                      LIABILITIES AND STOCKHOLDERS' EQUITY


                                              September 30,          June 30,
                                                 2001                 2001
                                             --------------      ---------------
                                              (Unaudited)
CURRENT LIABILITIES
Current maturities of long-term debt        $     29,485         $      40,495
Notes payable - banks                          3,241,506             2,262,481
Notes payable - short-term                     3,000,000             3,045,226
Loan payable                                     122,093               110,634
Accounts payable                               5,737,286             4,995,528
Accrued expenses                               2,806,777             1,885,586
Customer deposits                              1,456,840             1,505,333
                                             --------------      ---------------
TOTAL CURRENT LIABILITIES                     16,393,987            13,845,283
                                             --------------      ---------------

LONG-TERM DEBT, less current maturities           10,511                10,511
                                             --------------      ---------------

COMMON STOCK SUBJECT TO PUT                      319,985               319,985
                                             --------------      ---------------

STOCKHOLDERS' EQUITY
Common stock                                     845,396               843,809
Additional paid-in capital                   112,143,754           112,088,028
Treasury stock                                (2,040,000)           (2,040,000)
Deferred compensation                            (10,540)              (16,291)
Accumulated deficit                         (105,253,166)         (103,590,902)
Accumulated other comprehensive loss          (2,189,779)           (1,334,203)
Common stock subject to put                     (319,985)             (319,985)
                                             --------------      ---------------
TOTAL STOCKHOLDERS' EQUITY                     3,175,680             5,630,456
                                             --------------      ---------------
TOTAL LIABILITIES AND
 STOCKHOLDERS' EQUITY                       $ 19,900,163         $  19,806,235
                                             ==============      ===============


                                         F 2
<PAGE>

                           SWISSRAY INTERNATIONAL INC.
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (Unaudited)

                                                   Three Months Ended
                                                     September 30,
                                              ----------------------------------
                                                  2001                2000
                                              -----------        ---------------
NET SALES                                   $  4,168,325         $   4,928,825
COST OF SALES                                  2,977,315             3,738,514
                                              -----------        ---------------
GROSS PROFIT                                   1,191,010             1,190,311
                                              -----------        ---------------

OPERATING EXPENSES
Officers and directors compensation              148,351               144,992
Salaries                                         917,728               991,353
Selling                                          687,986               840,963
Research and development                         549,191               611,647
General and administrative                       220,944               185,617
Other operating expenses                          90,741                78,864
Bad debts                                             54                  -
Depreciation and amortization                    317,285               329,267
                                              -----------        ---------------
TOTAL OPERATING EXPENSES                       2,932,280             3,182,703
                                              -----------        ---------------

LOSS BEFORE OTHER INCOME (EXPENSES)           (1,741,270)           (1,992,392)

Other income (expenses)                          284,134                77,282
Interest expense                                (205,128)           (1,145,589)
                                              -----------        ---------------
OTHER INCOME (EXPENSES)                           79,006           (1,068,307)
                                              -----------        ---------------

NET LOSS                                      (1,662,264)          (3,060,699)

Inputed Preffered Stock Dividend                    -                (107,450)
                                              -----------        ---------------
Loss available to common shareholders       $ (1,662,264)        $ (3,168,149)
                                              ===========        ===============


NET LOSS PER COMMON SHARE                   $      (0.02)        $      (0.12)
                                              ===========        ===============


WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING                            84,532,134           26,042,877
                                              ===========        ===============








                                       F 3
<PAGE>

                           SWISSRAY INTERNATIONAL INC.
                 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                   (Unaudited)


                                                   Three Months Ended
                                                     September 30,
                                              ----------------------------------
                                                  2001                2000
                                              -----------        ---------------
NET LOSS                                    $ (1,662,264)        $  (3,060,699)
Other comprehensive income (loss),
 net of tax
    Foreign translation adjustment              (855,576)              248,771
                                              -----------        ---------------
Comprehensive loss                          $ (2,517,840)        $  (2,811,928)
                                              ===========        ===============












                                       F 4

<PAGE>


                           SWISSRAY INTERNATIONAL INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                   Three Months Ended
                                                     September 30,
                                              ----------------------------------
                                                  2001                2000
                                              -----------        ---------------
CASH FLOWS FROM OPERATING ACTIVITES
Net loss                                    $ (1,662,264)        $  (3,060,699)
Adjustments to reconcile net loss to net
 cash used by operating activities
  Depreciation and amortization                  433,031               346,498
  Provision for bad debts                         11,062                (3,744)
  Operating expenses through issuance of
   stock options and common stock to be issued      -                   60,000
  Issuance of common stock in lieu of
   interest payments                                -                  954,688
  Amortization of deferred compensation            5,751               332,800

  (Increase) decrease in operating assets:
   Accounts receivable                          (178,496)            1,569,053
   Inventories                                  (520,939)             (114,118)
   Prepaid expenses and sundry receivables      (205,463)              588,163
  Increase (decrease) in operating liabilities:
   Accounts payable                              741,758              (976,200)
   Accrued expenses                              921,191               306,662
   Restructuring                                    -                  (70,170)
   Customers deposits                            (48,493)             (447,469)
                                              -----------        ---------------
NET CASH USED BY OPERATING ACTIVITIES           (502,862)             (514,536)
                                              -----------        ---------------

CASH FLOW FROM INVESTING ACTIVITIES
 Acquisition of property and equipment           (80,384)             (295,859)
 Capitalized computer software                  (117,950)                 -
 Security deposits                               (13,004)                  233
                                              -----------        ---------------
NET CASH USED BY INVESTING ACTIVITIES           (211,338)             (295,626)
                                              -----------        ---------------

CASH FLOWS FROM FINANCING ACTIVITIES
 Proceeds from short-term borrowings             979,025                (3,547)
 Costs related to debentures conversions            -                 (333,155)
 Principal payment of short-term borrowings      (44,777)              (71,078)
 Principal payment of long-term borrowings          -                  (32,106)
 Loan receivable affiliates                      (30,756)             (150,608)
 Issuance of stock options for cash               57,313                  -
                                              -----------        ---------------
NET CASH PROVIDED BY (USED IN)
 FINANCING ACTIVITIES                            960,805              (590,494)
                                              -----------        ---------------

EFFECT OF EXCHANGE RATE ON CASH                 (855,576)              248,771
                                              -----------        ---------------

NET DECREASE IN CASH                            (608,971)           (1,151,885)
CASH AND CASH EQUIVALENT
 - beginning of period                         1,588,490             3,011,183
                                              -----------        ---------------
CASH AND CASH EQUIVALENTS - end of period   $    979,519         $   1,859,298
                                              ===========        ===============




                                       F 5
<PAGE>



































NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2001

         (1)The accompanying financial statements are unaudited. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted, although the Registrant believes that the disclosures are
adequate to make the information presented not misleading. It is suggested that
these condensed consolidated financial statements be read in conjunction with
the financial statements and notes thereto included in the Registrant's annual
report on Form 10-K for the fiscal year ended June 30, 2001.

         (2)In the opinion of management, the accompanying unaudited
consolidated financial statements contain all adjustments, consisting of only a
normal and recurring nature, necessary to present fairly the financial position
of the Registrant as of September 30, 2001 and the results of operations and
cash flows for the interim period presented. Operating results for the three
months ended September 30, 2001 are not necessarily indicative of the results to
be expected for the full year ending June 30, 2002.

         (3)INVENTORIES

                  Inventories are summarized by major classification as follows:

                                                     September 30,      June 30,

                                                     ---------------------------
                                                        2001             2001
                                                     ----------       ----------

Raw materials, parts and supplies                    $3,249,231       $2,750,510
Work in process                                         807,924          749,938
Finished goods                                          742,144          777,912
                                                     ----------       ----------
                                                     $4,799,299       $4,278,360
                                                     ==========       ==========

Inventories are stated at lower of cost or market, with cost being determined on
the first-in, first-out (FIFO) method. Inventory cost includes material, labor,
and overhead.







                                       F 6


<PAGE>


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS

            All  references  herein  to  the  "Registrant"  refer  to   Swissray
International  Inc. All  references  herein to the  "Company"  refer to Swissray
International, Inc. and its subsidiaries.

CAUTIONARY  STATEMENT FOR PURPOSES OF THE SAFE HARBOR  PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995

            Statements in this discussion which are not historical facts may be
considered forward looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, including estimated cost savings to
be realized from restructuring activities and estimated proceeds from and timing
of facility sales. The words "believe," "expect," "anticipate," "estimate", and
similar expressions identify forward looking statements. Any forward looking
statements involve risks and uncertainties that could cause actual events or
results to differ, perhaps materially, from the events or results described in
the forward looking statements. Readers are cautioned not to place undue
reliance on these forward looking statements, which speak only as of their
dates. The Company undertakes no obligation to publicly update or revise any
forward looking statements, whether as a result of new information, future
events or otherwise. Risks associated with the Company's forward looking
statements include, but are not limited to, risks associated with the Company's
history of losses and uncertain profitability, need for market acceptance of the
ddR-Systems, reliance on a single product, reliance on large customers, risks
associated with the Company's international operations, currency fluctuations,
the risk of new and different legal and regulatory requirements, governmental
approvals, tariffs and trade barriers, risks associated with competition and
technological innovation by competitors, dependence on patents and proprietary
technology, general economic conditions and conditions in the healthcare
industry, reliance on key management, limited manufacturing history with respect
to the ddR-Systems, dependence on sole source suppliers, future capital needs
and uncertainty of additional financing, potential recalls and product
liability, dilution, effects of outstanding convertible debentures, limited
public market, liquidity, possible volatility of stock price, recently adopted
new listing standards for NASDAQ securities and environmental matters.

         The following discussion and analysis should be read in conjunction
with the Consolidated Financial Statements, related notes and other information
included in this quarterly report on Form 10-Q.



THREE-MONTH PERIOD ENDED SEPTEMBER 30, 2001 COMPARED TO THREE-MONTH PERIOD ENDED
SEPTEMBER 30, 2000

RESULTS OF OPERATIONS

         Net sales amounted to $4,168,325 for the three-month period ended
September 30, 2001, compared to $4,928,825 for the three-month period ended
September 30, 2001. Sales of ddR-Systems increased by 12.4% or $400,222 and
Service revenue increased by 18.2% or $56,116 whereas the 15.43% decrease in net
sales was mainly due to decrease in sale of Information Solution by 94.2% or
$638,986, conventional OEM-Business decreasing by 87.9% or $561,315 and
conventional x-ray by 19.7% or $16,532. The decrease in conventional x-ray and
conventional OEM-Business is due to the Company's conscious effort of promoting
sales of ddR-Systems with a corresponding decline of interest in sales of
conventional x-ray and conventional OEM-Business.

         Gross  profit  amounted  to  $1,191,010 or 28.6% of net  sales for the
three-month period ended September 30, 2001, compared to $1,190,311 or 24.2% of
net sales for the three-month period ended September 30, 2000. The increase in
gross profit as a percentage of net revenues is attributable to the fact that
the percentage of sales of ddR-Systems to total sales increased to 86.9% for the
three-month period ended September 30, 2001 from 65.3% for the three-month
period ended September 30, 2000.

         Operating expenses were $2,932,280, or 70.4% of net revenues, for the
three-month period ended September 30, 2001, compared to $3,182,703, or 64.6 of
net revenues for the three-month period ended September 30, 2000. The principal
items were salaries (net of officers and directors compensation) of $917,728 or
22% of net sales for the three-month period ended September 30, 2001 compared to
$991,353 or 20.1% of net sales for the three-month period ended September 30,
2000 and selling expenses of $687,986 or 16.5% of net sales for the three-month
period ended September 30, 2001 compared to $840,963 or 17.1% of net sales for
the three-month period ended September 30, 2000. Research and development
expenses were $549,191 or 13.2% of net sales for the three-month period ended
September 30, 2001 compared to $611,647 or 12.4% of net sales for the
three-month period ended September 30, 2000.

         Interest expense decreased to $205,128 for the three months ended
September 30, 2001 compared to $1,145,589 for the three months ended September
30, 2000. This decrease is primarily due to the decrease of interest expense for
accrual of penalty interest on periodic payments required by terms of financing
agreements and an decrease in amortization of debenture issuance cost and
conversion benefit.

FINANCIAL CONDITION

September 30, 2001 compared to June 30, 2001

         Total  assets  of the  Company  on  September  30,  2001  increased  by
$93,928 to $19,900,163 from  $19,806,235 on June 30, 2001,  primarily due to
the  increase  of  current  assets.   Current  assets  increased  $284,866  to
$9,042,526 on  September  30,  2001 from  $8,757,660 on June 30,  2001.  The
increase in current assets is attributable to the increase of accounts
receivable of $167,434, the increase of inventories of $520,939 and the increase
of prepaid expenses and sundry receivables of $205,464 offset by the decrease of
cash and cash equivalents of $608,971. Other assets decreased $41,652 to
$4,589,170 on September 30, 2001 from $4,630,822 on June 30, 2001. The decrease
is primarily attributable to the amortization of the licensing agreement,
patents & trademark, software development cost and the goodwill.

                                        4

<PAGE>

         On September 30, 2001, the Company had total liabilities of $16,404,498
compared to $13,855,794 on June 30, 2001. On September 30, 2001, current
liabilities were $16,393,987 compared to $13,845,283 on June 30, 2001. Working
capital at September 30, 2001 was $(7,351,461) compared to $(5,087,523) at June
30, 2001.

CASH FLOW AND CAPITAL EXPENDITURES THREE MONTH PERIOD ENDED SEPTEMBER 30, 2001
COMPARED TO THREE MONTH PERIOD ENDED SEPTEMBER 30, 2000.

         Cash used for operating activities for the three months ended September
30, 2001 was $502,862 compared to $514,536 for the three months ended September
30, 2000. Cash used for investing activities was $211,338 for the
three months ended September 30, 2001 compared to $295,626 for the three months
ended September 30, 2000. Cash provided from financing activities for the three
months ended September 30, 2001 was $960,805 compared to cash used of $590,494
for three months ended September 30, 2000.

LIQUIDITY

         The Company anticipates that its use of cash will be substantial for
the foreseeable future. In particular, management of the Company expects
substantial expenditures in connection with the production of the planned
increase of sales, the continuation of the strengthening and expansion of the
Company's marketing organization and, to a lesser degree, ongoing research and
development projects. The Company expects that funding for these expenditures
will be available out of the Company's, future cash flow and/or issuance of
equity and/or debt securities.

         However, the availability of a sufficient future cash flow will depend
to a significant extent on the marketability of the Company's ddR-Systems.
Accordingly, the Company may be required to issue additional convertible
debentures or equity securities to finance such capital expenditures and working
capital requirements. There can be no assurance whether or not such financing
will be available on terms satisfactory to management.

         Reference is herewith made to the Company's Form 10-K for fiscal year
ended June 30, 2001 and in particular to the Management's Discussion and
Analysis section thereof which summarizes most recent financing activities.

         The Company has not engaged in any additional financing activities
during the quarter ended September 30, 2001.

EFFECT OF CURRENCY ON RESULTS OF OPERATIONS

         The result of operations and the financial position of the Company's
subsidiaries outside of the United States is reported in the relevant foreign
currency (primarily in Swiss Francs) and then translated into US dollars at the
applicable foreign exchange rate for inclusion in the Company's consolidated
financial statements. Accordingly, the results of operations of such
subsidiaries as reported in US dollars can vary significantly as a result of
changes in currency exchange rates (in particular the exchange rate between the
Swiss Franc and the US dollar).

                                        5

<PAGE>

Item 3. Quantitative and Qualitative Disclosures About Market Risk

         Not Applicable




                                     PART II

                                OTHER INFORMATION

Item 1.  Legal Proceedings

A. DISPUTE WITH J. DOUGLAS MAXWELL. On or about July 1, 1999 an action was
commenced in the Supreme Court, State of New York, County of New York (Index No.
113099/99) entitled J. Douglas Maxwell ("Maxwell") against Swissray
International, Inc. ("Swissray"), whereby Maxwell is seeking judgment in the sum
of $380,000 based upon his interpretation of various terms and conditions
contained in an Exchange Agreement between the parties dated July 22, 1996 and a
subsequent Mutual Release and Settlement Agreement between the parties dated
June 1, 1998. Swissray has denied the material allegations of Maxwell's
complaint and has asserted three affirmative defenses and two separate
counterclaims seeking (amongst other matters) dismissal of the complaint and
recision of the settlement agreement. An order was made on July 24, 2000
granting to Maxwell partial summary judgement on portion of his claim for
approximately  $320,000  plus  interest.  Maxwell's  application  for judgement
on the balance of his claim and has been dismissed.

B. Dispute with Elscint Ltd. In August 1998 the Company entered into a global
distributorship agreement for its ddRMulti with Elscint Ltd. of Haifa to sell
and service such product in 14 countries in Europe, Canada, South America and
Africa. Soon thereafter almost all of the assets of Elscint Ltd. were sold to
Picker International and GE Medical Systems respectively. Neither Picker
International nor GE Medical Systems have executed or honored the
distributorship agreement as of the date hereof and therefore the Company was
unable to sell the anticipated 75 ddRMulti (partially anticipated to be sold
through Elscint Ltd.) within the fiscal year 98/99 as originally planned. The
Company is currently contemplating instituting legal proceedings against Elscint
Ltd. absent receipt of acceptable settlement offer.

C. Settlement of Dispute With Liviakis Financial Communications, Inc. ("LFC")
Those SRMI shares of common stock issued to LFC in accordance with two
consulting agreements heretofore entered into between the parties had been the
subject of dispute for quite some time. Summarized information with respect to
such consulting agreements appears in SRMI's 10-K for fiscal year ended June 30,
2001 at Item 1 thereto entitled "Business - Consulting Agreements with LFC" and
reference is made thereto with respect to the various terms and conditions
contained therein. These agreements have since terminated and there is no
present relationship between SRMI and LFC other than by virtue of LFC's
ownership of SRMI securities. In early November 2001 the parties negotiated a
settlement to this dispute whereby LFC waived its rights to 526,000 of the
3,526,000 shares previously issued to it in accordance with the aforesaid
consulting agreements and all claims between them are now resolved.

D. Commencement of Patent Infringement Suit In March 2000 Swissray filed (before
the Tribunal de Grande Instance de Marseille) a patent infringement suit against
a firm known as Apelem alleging that the French part of its European patent
number EP 862 748 was infringed by virtue of the production/offer/sale of x-ray
equipment by Apelem. Apelem has not as yet filed a material answer and the
period for filing opposition does not expire until January 2002.


                                        6

<PAGE>

Item 2. CHANGES IN SECURITIES

         None

Item 3. DEFAULTS UPON SENIOR SECURITIES

         None

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         The Company had established a tentative date of November 24, 2001 for
purposes of holding its Annual Meeting of Stockholders for fiscal year ended
June 30, 2001. This tentative date is no longer applicable due to requirements
to respond to certain SEC comments received as relates to pre-filing of the
Proxy Statement. Accordingly, specific plans with respect to exact date and
location for such meetimg are not yet finalized but once finalized all
stockholders of record, as of the newly chosen record date, shall be properly
notified.


Item 5. OTHER INFORMATION

         Not applicable

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

         None









                                        7

<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.

                                      SWISSRAY INTERNATIONAL, INC.

                                By:\S\Ruedi G. Laupper
                                   Ruedi G. Laupper, Chairman of the
                                   Board of Directors, President and
                                   Chief Executive Officer

Date:  November 12, 2001

                                        7