U.S. Securities and Exchange Commission
Washington, DC 20549

FORM 10-QSB


[X]  QUARTERLY REPORT UNDER TO SECTION 13 0R 15(d) OF THE 
SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 1997.

[  ]  TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE 
SECURITIES AND EXCHANGE ACT OF 1934 
For the transition period from ________ to _______ .

Commission File No. 2-90328

SLS Industries, Inc.
(Name of small business issuer in its charter)

	Nevada							77-0002526
(State of incorporation)			(IRS Employer Id No.)
				

7223 Parkway Drive Suite 103, Hanover, MD 21076             
	(Address of Principal Executive Offices)	(Zip Code)

 (410) 712-4155
Issuer's Telephone Number

Securities registered under 12(b) of the Exchange Act:  None	
Securities registered under 12(g) of the Exchange Act:  Common 
Stock, with par value $0.001 per share

Check whether the issuer (1) filed all reports to be filed by 
Section 13 or 15(d) of the Exchange Act during the past 12 months 
(or for such shorter period of that the Registrant was required 
to file such report(s), and (2) has been subject to such filing 
requirement for the past 90 days.	Yes        No   X 

Check if there is no disclosure of delinquent filers in response 
to Item 405 of Regulation S-B is not contained in this form, and 
no disclosure will be contained, to the best of Registrant's 
knowledge, in definitive proxy or information statements 
incorporated by reference in Part III of this Form 10-KSB or any 
amendment to this Form 10-KSB.	 Yes        No   X	
								

As of March 13, 1998, number of shares of Common Stock, 
outstanding was 15,589,760


PART I - FINANCIAL INFORMATION

Item 1. Financial Statements
	
	Balance Sheets
October 31, 1997 (unaudited) and January 31, 1997

 
	Statement of Operations
Three months ended October 31, 1997 (unaudited) and 
July 31, 1996 (unaudited)

	Statement of Cash Flows
Three and nine Months ended October 31, 1997 
(unaudited)


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

During the quarter ended October 31, 1997 there was sufficient 
cash on hand to meet the company's ongoing operational needs.  

The Company had no sales revenues for the period ended October 
31, 1997 as all efforts are focused on developing future product 
for sales.  All efforts are concentrated on research and 
development of products.

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings


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

Item 6	Exhibits and Reports on Form 8-K


SLS INDUSTRIES, INC
BALANCE SHEET

                    Oct. 31, 1997    Jan. 31, 1997
ASSESTS
  Current Assets
    Cash                      $  9,792         $331,163
    Accounts Receivable         63,908           63,908
    Other Current Assets
      Loans Receivable          17,513           24,994
   Total Current Assets       $ 91,213         $421,065

  Fixed Assets
    Property and Equipment      25,954            6,941
  Total Fixed Assets            25.954            6,941
  

  Other Assets
    Intangibles                  3,107            4,368
  

TOTAL ASSETS                  $120,274         $432,374

LIABILITIES & EQUITY
  Liabilities           
    Current Liabilities
       Notes Payable          $ 33,300         $ 33,300
       Due to Officer          125,666          163,286
       Due to stockholder        4,900            4,900
       Accounts Payable         95,030           22,900
    Total Current Liabilities $258,896         $224,484

  Equity
    Common Stock, par value
    $.001 per share,
    150,000,000 authorized
    14,962,509 outstanding      14,963           14,963
    Additional paid in 
    capital                  1,459,852        1,335,652
    Accumulated Deficit     (1,613,437)      (1,142,725)
  Total Equity               $(138,622)        $207,890


TOTAL LIABILITIES & EQUITY    $120,274         $491,824

SEE NOTES TO FINANCIAL STATEMENTS

SLS INDUSTRIES, INC
Statement of operations

                                   3 Months Ended
						Oct 31, 1997    Oct 31, 1996

Revenues                      
  Sales                        $      0        $    0
  Other Income                      185             0
Total Revenues                 $    185             0

Costs
  Cost of Goods Sold             41,174             0
  G&A                           130,098        27,752
  Research & Development          8,427        10,000
  Selling Expenses                    0         5,483
Total Costs                     179,699        43,235

INCOME (LOSS) before taxes     (179,514)      (43,235)
 and extraordinary items

PROVISION FOR INCOME TAXES       ------         ------

INCOME (LOSS) before 
extraordinary item             (179,514)      (43,235)

Reduction of Income Taxes
from carry forward of 
operating losses                 ------         ------

NET INCOME (LOSS)              (179,514)      (43,235)

INCOME (LOSS) PER SHARE
  Before Extraordinary Item    $(  0.01)     $(  0.01)

  Extraordinary Item
  Net Income (Loss): Note C    $(  0.01)     $(  0.01)

Number of Shares used 
in computation of 
NET INCOME (LOSS) PER SHARE   14,962,509      14,962,509

SEE NOTES TO FINANCIAL STATEMENTS

SLS INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)

					             3 Mos. Ended   9 Mos. Ended
                                             July 31, 1997


Cash flows from operating activities
  Loss from continuing operations       $(179,514)     $(470,713)
  Adjustments to reconcile loss
  from continuing operations to
  net cash used in operations
    Depreciation and amortization           1,903          5,709
    Change in operating assets and
    liabilities
      Increase in accounts receivable
      - other                                   0           (144)
      Increase in accounts payable         38,262         72,031
                                        _________         _______ 
        Net cash used in continuing
        operations                       (139,349)      (393,117)

Cash flows from investing activities
  Purchase of fixed assets                      0        (23,460)
                                           ______       ________
        Net cash used in investing
        activities                              0        (23,460)

Cash flows from financing activities
  Proceeds from issuance of stock         124,200        124,200
  Repayment of amounts due officer           (152)       (37,621)
  Repayment of loans from officer           2,112          7,626
  
                                         _________       ________
        Net cash used in financing
        activities                        126,160         94,205

        NET DECREASE IN CASH              (13,189)      (323,372) 

Cash, beginning of period                  22,980        332,163

Cash, end of period                         9,791         9,791
                
SEE NOTES TO FINANCIAL STATMENTS

NOTE A - FINANCIAL STATMENETS (UNAUDITED)

     The accompanying unaudited financial statements have been 
prepared in accordance with generally accepted accounting 
principles for interim financial information and with the 
instructions to Form 10QSB and Rule 10-01 of Regulation S-X.  
Accordingly, they do not include all of the information and 
footnotes required by generally accepted accounting principles 
for complete financial statements.  It is suggested that these 
financial statements should be read in conjunction with the 
financial statements and notes thereto included in the Company's 
January 31, 1997 Audited Financial Report included in the 
Company's January 31, 1997 10KSB submission to he SEC.  In the 
opinion of management, all adjustments (consisting of normal 
recurring accruals) considered necessary for a fair presentation 
have been included.  Operating results for the three months ended 
April 30, 1997 are not necessarily indicative of the results that 
may be expected for the current fiscal year ending January 31, 
1998.

     STATEMENT OF CASHFLOWS - For purposes of this statement of 
cash flows, the company considers all highly liquid debt 
instruments with a maturity of three months or less to be cash 
equivalents.

NOTE B -  
    Commitments the company's operating lease for  its facility 
expires in February , 1999.  Current monthly rental is $1,150.

NOTE C - INCOME (LOSS) PER SHARE
     Per Share information is based on the weighted average 
number of shares of common Stock and Common Stock equivalents 
outstanding during the period.

PART II OTHER INFORMATION

Items 1-6 NOT APPLICABLE

SIGNATURES

Pursuant to the requirements of the Securities Exchanges Act of 
1934, the registrant has duly caused this report to be signed on 
its behalf by  the undersigned thereunto duly authorized.


							SLS INDUSTIRES, INC>
                                       (Registrant)



Date:                             RICAHRD B. PAZORNIK, President