<PAGE> 1
                    SECURITIES AND EXCHANGE COMMISSION
                           Washington D.C.  20549

                                 FORM 10-QSB


[X]     Quarterly Report Under Section 13 or 15(d) of the Securities Exchange
Act of 1934

     For the Quarter Ended:    March 31, 2002

[ ]     Transition Report Under Section 13 or 15(d) of the Securities Exchange
Act of 1934

        For the Transition Period from _____________ to ____________

                    Commission File Number   0-29838
                                             -------

                        INDUSTRIAL ECOSYSTEMS, INC.
               ----------------------------------------------
               (Name of Small Business Issuer in its charter)

         Utah                                             94-3200034
-------------------------------                    --------------------------
(State or other jurisdiction of                    (I.R.S. Employer I.D. No.)
 incorporation or organization)

               2040 West Broadway, Bloomfield, New Mexico  87413
              -----------------------------------------------------
              (Address of principal executive offices and Zip Code)

                              505-632-1786
              ----------------------------------------------------
              (Registrant's telephone number, including area code)


     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.

(1)  Yes X    No     (2)  Yes X    No
        ---     ---          ---     ---

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

Common Stock, Par Value $0.001                        73,208,947
--------------------------------                ----------------------------
       Title of Class                           Number of Shares Outstanding
                                                as of April 29, 2002

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                        PART I FINANCIAL INFORMATION

                        ITEM 1.  FINANCIAL STATEMENTS

                         INDUSTRIAL ECOSYSTEMS, INC.
                             FINANCIAL STATEMENTS
                                 (UNAUDITED)


     The accompanying financial statements have been prepared by the
Company, without audit, in accordance with the instructions to Form 10-QSB
pursuant to the rules and regulations of the Securities and Exchange
Commission and, therefore may not include all information and footnotes
necessary for a complete presentation of the financial position, results of
operations, cash flows, and stockholders' equity in conformity with generally
accepted accounting principles.  In the opinion of management, all adjustments
(which include only normal recurring accruals) necessary to present fairly the
financial position and results of operations for the periods presented have
been made.  These financial statements should be read in conjunction with the
accompanying notes, and with the historical financial information of the
Company.


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INDUSTRIAL ECOSYSTEMS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets

ASSETS

                                                   March 31,    December 31,
                                                      2002          2001
                                                 ------------   ------------
                                           (Unaudited)
CURRENT ASSETS

 Cash                                           $      30,725  $     142,785
 Accounts receivable, net                              46,269         77,321
 Prepaid expenses                                      12,012         12,012
                                                 ------------   ------------
   Total Current Assets                                89,006        232,118
                                                 ------------   ------------
PROPERTY AND EQUIPMENT (Net)                           88,756         60,753
                                                 ------------   ------------
OTHER ASSETS

 Restricted cash                                       39,219         39,187
                                                 ------------   ------------
   Total Other Assets                                  39,219         39,187
                                                 ------------   ------------
TOTAL ASSETS                                    $     216,981  $     332,058
                                                 ============   ============



















The accompanying notes are an integral part these consolidated financial
statements.

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INDUSTRIAL ECOSYSTEMS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Continued)


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                                                   March 31,    December 31,
                                                     2002           2001
                                                 ------------   ------------
                                                  (Unaudited)
CURRENT LIABILITIES

 Accounts payable                               $      59,983  $      62,464
 Accrued expenses                                     245,648        258,871
 Notes payable, related party                         153,000        153,000
 Notes payable, current portion                        44,708         32,042
                                                 ------------   ------------
   Total Current Liabilities                          503,339        506,377
                                                 ------------   ------------
LONG-TERM DEBT

 Notes payable                                         58,828         58,781
                                                 ------------   ------------
   Total Long-Term Debt                                58,828         58,781
                                                 ------------   ------------
   Total Liabilities                                  562,167        565,158
                                                 ------------   ------------
COMMITMENTS AND CONTINGENCIES                         542,290        554,936
                                                 ------------   ------------
STOCKHOLDERS' EQUITY (DEFICIT)

 Common stock; 100,000,000 shares authorized of
  $0.001 par value, 73,208,947 shares issued
  and outstanding                                      73,209         73,209
 Class A-special shares; 4,000,000 authorized of
  no par value, 40,549 shares issued and
  outstanding                                               -              -
 Additional paid-in capital                        23,757,090     23,757,090
 Other comprehensive income (loss)                      2,686          1,766
 Accumulated deficit                              (24,720,461)   (24,620,101)
                                                 ------------   ------------
   Total Stockholders' Equity (Deficit)              (887,476)      (788,036)
                                                 ------------   ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
 EQUITY (DEFICIT)                               $     216,981  $     332,058
                                                 ============   ============







The accompanying notes are an integral part of these consolidated financial
statements.

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INDUSTRIAL ECOSYSTEMS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
And Other Comprehensive Income (Loss)
(Unaudited)
                                                 For the Three Months Ended
                                                           March 31
                                                      2002         2001
                                                 ------------   ------------
REVENUES                                        $      63,516  $     304,548

EXPENSES

 Direct costs                                          93,254        148,524
 General and administrative                            68,392         65,505
 Depreciation and amortization                          1,492         43,074
                                                 ------------   ------------
   Total Expenses                                     163,138        257,103
                                                 ------------   ------------
   Income (Loss) from Operations                      (99,622)        47,445
                                                 ------------   ------------
OTHER INCOME (EXPENSE)

 Interest expense                                      (5,738)       (18,083)
 Gain on sale of fixed assets                           5,000              -
                                                 ------------   ------------
   Total Other Income (Expense)                          (738)       (18,083)
                                                 ------------   ------------
INCOME (LOSS) BEFORE INCOME TAX (BENEFIT)            (100,360)        29,362
                                                 ------------   ------------
INCOME TAX EXPENSE (BENEFIT)                                -              -
                                                 ------------   ------------
NET INCOME (LOSS)                                    (100,360)        29,362
                                                 ------------   ------------
OTHER COMPREHENSIVE INCOME (LOSS)

 Income (loss) on foreign currency adjustments            920            977
                                                 ------------   ------------
NET COMPREHENSIVE INCOME (LOSS)                 $     (99,439) $      30,339
                                                 ============   ============
BASIC EARNINGS (LOSS) PER SHARE

 Net Income (Loss)                                      (0.00)          0.00
                                                 ------------   ------------
 Basic Earnings (Loss) Per Share                $       (0.00) $        0.00
                                                 ============   ============
WEIGHTED AVERAGE NUMBER OF SHARES
 OUTSTANDING                                       73,208,947     73,708,947
                                                 ============   ============





The accompanying notes are an integral part of these consolidated financial
statements.

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INDUSTRIAL ECOSYSTEMS, INC. AND SUBSIDIARIES
Consolidated Statements of Stockholders' Equity (Deficit)

<TABLE>
<CAPTION>


                                                                    Additional       Other
                                             Common Stock            Paid-In      Comprehensive    Accumulated
                                         Shares        Amount        Capital         Income          Deficit
                                       ----------     --------     ------------     --------     -------------
<S>                                 <C>            <C>          <C>              <C>          <C>
Balance, December 31, 2000             73,208,947    $  73,209    $  23,757,090    $   6,493    $  (23,945,901)

Currency translation adjustment                 -            -                -       (4,727)                -

Net loss for the year ended
 December 31, 2001                              -            -                -            -          (674,200)
                                       ----------     --------     ------------     --------     -------------
Balance, December 31, 2001             73,208,947       73,209       23,757,090        1,766       (24,620,101)

Currency translation
adjustment (Unaudited)                          -            -                -          920                 -

Net loss for the three months
ended March 31, 2002
(Unaudited)                                     -            -                -            -          (100,360)
                                       ----------     --------     ------------     --------     -------------
Balance, March 31, 2002
(Unaudited)                            73,208,947    $  73,209    $  23,757,090    $   2,686    $  (24,720,461)
                                       ==========     ========     ============     ========     =============


</TABLE>
















The accompanying notes are an integral part of these consolidated finanial
statements.

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INDUSTRIAL ECOSYSTEMS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
                                                 For the Three Months Ended
                                                           March 31
                                                      2002         2001
                                                 ------------   ------------
CASH FLOWS FROM OPERATING ACTIVITIES
 Net income (loss)                              $    (100,360) $      29,362
 Adjustments to reconcile net income (loss)
  to net cash provided (used) by operating
  activities:
  Depreciation and amortization                         1,492         43,074
  Impairment of goodwill                                    -              -
  Gain on sale of fixed assets                         (5,000)             -
  Currency translation adjustments                     (7,865)             -
 Changes in assets and liabilities
  (Increase) decrease in accounts receivable           31,053       (164,497)
  (Increase) decrease in deposits and prepaid
   expenses                                                 -          4,437
  (Increase) decrease in restricted cash                  (32)             -
  Increase (decrease) in accounts payable              (2,482)         1,128
  Increase (decrease) in accrued expenses              (4,371)         9,578
  Increase (decrease) in contingent liabilities             -              -
                                                 ------------   ------------
   Net Cash Provided (Used) by Operating
    Activities                                        (87,565)       (76,918)
                                                 ------------   ------------
CASH FLOWS FROM INVESTING ACTIVITIES
 Purchase of fixed assets                             (29,495)
 Sale of fixed assets                                   5,000              -
                                                 ------------   ------------
   Net Cash Provided (Used) by Investing
    Activities                                        (24,495)             -
                                                 ------------   ------------
CASH FLOWS FROM FINANCING ACTIVITIES
 Principal payments on notes payable                        -        (10,364)
 Cash received from notes payable - related                 -         50,000
                                                 ------------   ------------
   Net Cash Provided (Used) by Financing
    Activities                                              -         39,636
                                                 ------------   ------------
NET (DECREASE) IN CASH                               (112,060)       (37,282)

CASH AT BEGINNING OF PERIOD                           142,785         42,964
                                                 ------------   ------------
CASH AT END OF PERIOD                           $      30,725  $       5,682
                                                 ============   ============

SUPPLEMENTAL CASH FLOW INFORMATION

CASH PAID FOR:
Interest                                        $           -  $      30,328
Income taxes                                    $           -  $           -


The accompanying notes are an integral part of these consolidated financial
statements.

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INDUSTRIAL ECOSYSTEMS, INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements have been prepared by the Company
without audit.  In the opinion of management, all adjustments (which include
only normal recurring adjustments) necessary to present fairly the financial
position, results of operations and cash flows at March 31, 2002 and 2001 and
for all periods presented have been made.

Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted.  It is suggested that these
condensed financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's December 31, 2001
audited financial statements.  The results of operations for the periods ended
March 31, 2002 and 2001 are not necessarily indicative of the operating
results for the full years.


NOTE 2 - GOING CONCERN

The Company's consolidated financial statements are prepared using generally
accepted accounting principles applicable to a going concern which
contemplates the realization of assets and liquidation of liabilities in the
normal course of business.  The Company has historically incurred significant
losses which have resulted in an accumulated deficit of $24,720,461 at March
31, 2002, a working capital deficit and limited internal financial resources.
These factors combined, raise substantial doubt about the Company's ability to
continue as a going concern.  The accompanying consolidated financial
statements do not include any adjustments relating to the recoverability and
classification of asset carrying amounts or the amount and classification of
liabilities that might result from the outcome of this uncertainty. The
Company has begun to effect measures to reduce cash outflows and increase
working capital through the issuance of additional shares of common stock for
cash, services and conversion of debt.  It is the intent of management to
conduct a 1 for 40,000 reverse stock split to terminate the Company's
Securities and Exchange Commission ("SEC") registration and reporting
requirements.  Doing so will reduce ongoing legal and accounting fees
associated with such reporting requirements.

NOTE 3 - SUBSEQUENT EVENT

On April 18, 2002, the Company filed a preliminary information statement with
the Security and Exchange Commission proposing to amend its Articles of
Incorporation to conduct a 1 for 40,000 reverse stock split. The main purpose
of the reverse stock split is to terminate the Company's Securities and
Exchange Commission ("SEC") registration and reporting requirements in
conformity with Section 12(g)(4) of the Securities and Exchange Act of 1934
(the "1934 Act").  Fractional shares resulting from the split are being
purchased for fair value, $0.0175 per share.  It is anticipated that the
reverse stock split will take place once it has gained full approval.

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

Cautionary Statement Regarding Forward-looking Statements
---------------------------------------------------------
This report may contain "forward-looking" statements.  Examples of forward-
looking statements include, but are not limited to: (a) projections of
revenues, capital expenditures, growth, prospects, dividends, capital
structure and other financial matters; (b) statements of plans and objectives
of our management or our Board of Directors; (c) statements of future economic
performance; (d) statements of assumptions underlying other statements and
statements about us and our business relating to the future; and (e) any
statements using the words "anticipate," "expect," "may," "project," "intend"
or similar expressions.

Results of Operations
---------------------
General
-------
Our revenues are generated primarily by our business operations in the United
States through our subsidiary EPC.  Since March, 1998, we have pursued the
operational development of our subsidiary ROP, however, at December 31, 2001,
our management decided to cease development efforts and write off the assets
of ROP which are no longer in use.  Our results of operations include the
costs of our investment in ROP.

For the quarter ended March 31, 2002, the functional currency for our foreign
subsidiaries has been determined to be the Canadian Dollar.  Any applicable
assets and liabilities have been translated at period end exchange rates and
operating statement items are translated at average exchange rates prevailing
during the period.  For the period ended March 31, 2002, we had a gain of $920
as a result of foreign currency translation adjustment.

Quarter ended March 31, 2002 compared to March 31, 2001
-------------------------------------------------------
During the quarter ended March 31, 2002, total revenues were $63,516 and
direct costs associated therewith were $93,254 or approximately 146.8% of
revenues.  Total revenues for the quarter ended March 31, 2001 were $304,548
and direct costs associated therewith were $148,524, or approximately 48.8% of
revenue.  The substantial decrease in revenues for the current period as
compared to the prior period can be attributed to an unexpected decrease in
the remediation business during the quarter.  The increase in direct costs as
a percent of revenues for the current period as compared to the prior period
is due to a larger percentage of lower margin hauling and roustabout work.
Although remediation work contracts have increased since the end of the
quarter, there is no guarantee that our revenues will be sustained and we
cannot predict what events or uncertainties may be reasonably expected to have
a material impact on the net sales revenues or income from continuing
operations.

Corporate Expense.  For the quarter ended March 31, 2002 total operating
expenses were $163,138, consisting of the direct costs listed above, general
and administrative expenses of $68,392 and depreciation and amortization
expenses of $1,492, resulting in a loss from operations of $99,622. For the
quarter ended March 31, 2001 total operating expenses were $257,103,
consisting of the direct costs listed above, general and administrative
expenses of $65,505 and depreciation and amortization expenses of $43,074,
resulting in income from operations of $47,445.

<PAGE>
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Our operating expenses for the quarter ended March 31, 2002 are lower than our
operating expenses incurred for the quarter ended March 31, 2001 due to the
lower direct costs associated with lower revenues, and the considerable drop
in depreciation and amortization due to the write off of our ROP assets at
December 31, 2001.  We anticipate that operating expenses will remain at
approximately the same level for the balance of its fiscal year unless
significant new contracts require additions to the workforce.

Other Income and Expense.  Other expense for the quarter ended March 31, 2002
was $738, consisting of interest expense of $5,738 offset by gain of $5,000
from the sale of fixed assets, compared to other expense for the prior year
period for interest of $18,083 attributed to notes payable.

Including the foreign currency adjustment gain of $920, we had net
comprehensive loss of $99,439 for the quarter ended March 31, 2002, compared
to net comprehensive income of $30,339 for same quarter the prior year. The
basic loss per share was $0.00 compared to $0.00 earnings per share for the
quarter ended March 31, 2001.  Our loss in the first quarter of 2002 was
primarily due to the decrease in orders for remediation work in the last month
and a half of the quarter.


Liquidity and Capital Resources
-------------------------------
Historically, we have relied on the issuance of common stock and borrowing
against assets for working capital, conversion of debt, payment of
professional services, and for continued development activities.  However
because we had some cash at the beginning of the first quarter of 2002 and
because we received payments on work we completed prior to the beginning of
the quarter, we did not have to borrow additional funds for operations despite
the fact that expenses exceeded revenues.  However, our cash reserves have
been depleted, our revenues have fluctuated significantly in recent years, and
we have no guaranteed contracts for future work, so we cannot accurately
predict what our potential revenues will be for the balance of fiscal 2002.

We had a working capital deficit of $414,333 with cash of $30,725, accounts
receivable, net, of $46,269,and prepaid expenses of $12,012 at March 31, 2002.
Cash used in operations for the quarter was $87,565 and was derived primarily
from cash on hand at the beginning of the quarter and payments received for
accounts receivable.  Our investing activities used $29,495 for the purchase
of equipment, offset by $5,000 received from the sale of fixed assets.  We had
no financing activities in the quarter ended March 31, 2002.

Because we have an accumulated deficit of $24,720,461, have a working capital
deficit and limited internal financial resources, the notes to our financial
statements include a going concern modification as to our ability to continue.
We have implemented measures to reduce cash outflows and increase working
capital and we are aware of our ongoing cash requirements and intend to
control our general and administrative expenses until increased revenues
justify increased expenditures.  We may also rely on additional equity and/or
debt financing if necessary.

It is the intent of our management to conduct a 1 for 40,000 reverse stock
split to terminate our registration and reporting requirements.  Doing so will
reduce ongoing legal and accounting fees associated with such reporting
requirements.

<PAGE>
<PAGE> 11

We have signed agreements with a number of sales consultants who are supposed
to be actively seeking opportunities to market our products and services.
However, at March 31, 2002, no firm commitments or contracts for remediation
work had been signed and we cannot predict how soon any agreements may be
reached or how soon revenues, if any, from prospective contracts will be
generated.

At March 31, 2002, we recorded $245,648 in accrued expenses consisting
primarily of accrued interest and unpaid payroll taxes, unemployment taxes,
sales taxes and gross receipts taxes due both the federal and state taxing
authorities, including reasonable interest and penalties for delinquent
filings.

We have received an informal offer from the IRS for a total adequate payment
of $166,697.61.  We have responded with an offer of $82,412.81.  At this time
we are waiting for a further response.

We have reserved and recorded possible contingent liabilities to individuals
who claim they are still owed money by us although we have issued shares of
our common stock to such individuals as payment of such debts or because we
are uncertain as the whether the creditors are holding us responsible for
certain debts incurred by our former officers and directors.  At March 31,
2002, we have recorded total contingent liabilities of $542,290.

Impact of Inflation
-------------------
We do not anticipate that inflation will have a material impact on our current
or proposed operations.

Seasonality
-----------
Our bioremediation business operations tend to have varying degrees of
seasonality.  A majority of our bioremediation jobs are done on sites in and
around Farmington, New Mexico, during the warm weather months.  Since many of
the clean-up sites are located in rural areas and accessible only over dirt or
unimproved roads, our ability to excavate and remove contaminated soil can be
restricted during inclement weather.  In addition, soil is difficult or
impracticable to dig and turn when the ground is frozen, the bioremediation
process requires above freezing temperatures to be effective.


SUBSEQUENT EVENT
----------------
On April 18, 2002, we filed a preliminary information statement with the
Security and Exchange Commission proposing to conduct a 1-for-40,000 reverse
stock split.  The main purpose of the reverse stock split is to terminate our
reporting obligations with the Securities and Exchange Commission ("SEC") in
order to reduce ongoing legal and accounting fees associated with such
reporting.  At the date of this filing we have received comments from the SEC
on the proposed action and are in the process of preparing our responses.

<PAGE>
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                        PART II - OTHER INFORMATION

                        ITEM 1.  LEGAL PROCEEDINGS

We are involved in litigation with Middlemarch Farms, Ltd. (Middlemarch), a
Canadian company, whereby Middlemarch is claiming a security interest in
certain property transferred to our joint venture during March 1998.
Middlemarch is claiming that there is an outstanding balance due of $230,300
plus interest.  The property subject to the security interest is comprised of
the assets and liabilities which were transferred to the joint venture in
March 1998.

We claim that the amount has been paid but have recorded a contingent
liability for the claimed amount.  If Middlemarch proceeds with its claim, we
may be involved in litigation with regard to the circumstances surrounding the
creation of the claimed interest and the payment of the debt.  Our management
is currently working on settlement arrangements but finalization is contingent
on the agreement of certain third parties.

On March 17, 1999, we received a letter from Canadian counsel threatening
litigation on behalf of Diamond Measure, Inc., a Canadian corporation with
which we engaged in discussions about a possible acquisition during 1994.  We
claim that negotiations were never consummated, and no contract was ever
signed.  On August 6, 1999, our Canadian counsel was served with a statement
of Claim filed in the Superior Court of Justice in Windsor Ontario on August
4, 1999, by Diamond Measure, Inc. and Ronald McGuire, against the Company.
The claim is for a total of $1.5 million Canadian for breach of contract and
detrimental reliance, $1 million to Diamond Measure, Inc., and $500,000 to
Ronald McGuire.  We claim no agreement was ever reached and no written
contract was signed.  We believe that the action is without merit.

On November 13, 2000, a complaint was filed against us by the Worthington
Company and Paul Parshall in the Franklin County Common Pleas Court in
Columbus, Ohio alleging breach of contract in connection with a 1994 merger
agreement, and asking damages of $22,500 plus court costs, attorney's fees and
interest.  Mr. Parshall is one of our former officers, directors and
promoters.  In August 2001, we negotiated a settlement in this action for a
total of $17,000, to be paid as a one time payment of $5,000, with monthly
payments of $1,000 for twelve months.  At the date of this filing, we are
current on our monthly payments.
<PAGE>
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                      ITEM 2.  CHANGES IN SECURITIES

     None.

                 ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

     None.

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

     None.

                       ITEM 5.  OTHER INFORMATION

     None.


                ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)     Exhibits.
        ---------

     None.

(b)     Reports on Form 8-K.
        --------------------

     None.

                                  SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, this report has been signed below by the following persons on behalf
of the Registrant and in the capacities and on the dates indicated:

                                      INDUSTRIAL ECOSYSTEMS, INC.


Date: May 28, 2002                    By /S/ John Kiely, President (Chief
                                       Executive Officer and Chief Accounting
                                       Officer) and Director

Date: May 28, 2002                    By /S/ Magaly Bianchini, Director


Date: May 28, 2002                    By /S/ John P. Crowe, Director