FORM 10-QSB

                 SECURITIES AND EXCHANGE COMMISSION
                                             WASHINGTON, D.C. 20549

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


For Quarter Ended          June  30, 2001
                  -----------------------------------------

Commission file number         0-14119-NY
                      ---------------------------------------

               Polymer Research Corp. of America
-------------------------------------------------------------
(Exact name of small business issuer as specified in its  charter)

     New York                                    11-2023495
--------------------------------------------------------------
 (State or
other jurisdiction of                  (I.R.S Employer incorporation or
organization)                              Identification No.)

                   2186 Mill Avenue, Brooklyn, New York 11234
        ---------------------------------------------------------------
               (Address of principal executive offices) (Zip code)

                                 (718) 444-4300
         --------------------------------------------------------------
                            Issuers telephone number

Not Applicable  (Former name,  former address and former fiscal year, if changed
since last report)



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

      July 31, 2001                     1,925,784
--------------------------------------------------------------


<PAGE>





                        POLYMER RESEARCH CORP. OF AMERICA

                               INDEX


                                                           Page
                                                         Number
                                                         ------
Part I - FINANCIAL INFORMATION:


               ITEM 1 - FINANCIAL STATEMENTS

               Balance Sheets:
               June 30, 2001 (Unaudited) and
                  December 31, 2000                          2

               Statements of Operations:
               Three months and six months ended
               June 30, 2001 and 2000 (Unaudited)            4

               Statements of Cash Flows:
               Three months and six months ended
               June 30, 2001 and 2000 (Unaudited)            5

               Notes to Financial Statements                6-9

               ITEM  2 -  MANAGEMENT'S  DISCUSSION  AND
                          ANALYSIS  OF  FINANCIAL
                          CONDITION AND RESULTS
                          OF OPERATIONS                   10-11


PART II - OTHER INFORMATION

              ITEM 4 - Submission of Matters to a Vote of   12

                       Security Holders
              ITEM 6 - Exhibits and Reports on Form 8-k     12
<PAGE>




PART I - FINANCIAL INFORMATION  POLYMER RESEARCH CORP. OF AMERICA

BALANCE SHEETS
JUNE 30, 2001 AND DECEMBER 31, 2000



                                        June 30,    December 31,
ASSETS                                    2001          2000
------                                ----------     ---------
                                     (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents             $1,011,538   $  695,585

Cash -
Restricted cash                           45,000       30,000
Accounts receivable,less allowances
  of $0                                  130,244      281,661
Inventories                              133,941      124,719
Deferred
tax charge                                33,600       33,600
Prepaid and refundable income taxes       82,446      203,405
                                      ----------   ----------
Total current assets                   1,436,769    1,368,970
                                      ----------   ----------

Land, Property, and Equipment-net
 of accumulated depreciation of
 $ 1,157,626 and $1,107,628
 respectively                          2,631,386    2,673,779
                                      ----------   ----------

OTHER ASSETS:

Cash - restricted, non-curent            105,000      120,000
Security deposits                          1,195        1,195
                                      ----------   ----------
Total other assets                       106,195      121,195
                                      ----------   ----------

TOTAL                                $ 4,174,350   $ 4,163,944
                                      ==========    =========



See notes to financial statements

2

<PAGE>


PART I - FINANCIAL INFORMATION  POLYMER RESEARCH CORP. OF AMERICA

BALANCE SHEETS -(CONTINUED)
JUNE 30, 2001 AND DECEMBER 31, 2000
                                            June 30,    December 31,
                                              2001           2000
                                          ----------      ---------
                                          (Unaudited)


LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Note payable-bank                       $    50,000    $    50,613
Current portion of term loan                100,000        100,000
Accounts
payable                                      44,212         19,991
Accrued expenses and other
  current liabilities                       293,812        234,574
Deferred
revenue                                     267,277        290,000
                                        -----------    -----------
Total current liabilities                   755,301        695,178
                                        -----------    -----------
LONG-TERM LIABILITIES:
Term loan, less current maturities          291,666        341,667
                                        -----------    -----------
Total liabilities                         1,046,967      1,036,845
                                        -----------    -----------
STOCKHOLDERS' EQUITY:
Common stock, par value $.01 per
  share, authorized 4,000,000 shares,
  issued 1,925,784 shares                    19,257         19,257
Capital
in excess of par value                    3,504,978      3,504,978
Accumulated deficit                        (379,091)      (379,375)
Less:
Treasury stock, at cost
  22,140 respectively                       (17,761)       (17,761)
Total
                                        -----------    -----------
Stockholders' Equity                      3,127,383      3,127,099
                                        -----------    -----------
TOTAL                                   $ 4,174,350    $ 4,163,944
                                        ===========    ===========

See notes to financial statements

3

<PAGE>

POLYMER RESEARCH CORP. OF AMERICA
STATEMENTS OF OPERATIONS FOR THE
THREE MONTHS ENDED JUNE 30, 2001 AND 2000 (UNAUDITED) AND
THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000 (UNAUDITED)


<TABLE>
<CAPTION>

                                          Three Months Ended             Six Months Ended
                                               June  30,                    June  30,
                                    --------------------------   ----------------------------
                                        2001           2000            2,001           2000
Net revenues:
<S>                                 <C>            <C>            <C>            <C>
  Product sales                     $   169,284    $   202,166    $   395,957    $   387,382
  Research                            1,131,195      1,231,000      2,530,768      2,522,764
                                    -----------    -----------    -----------    -----------
  Total                               1,300,479      1,433,166      2,926,725      2,910,146
                                    -----------    -----------    -----------    -----------
Cost of Revenues
  Product sales                         154,897        244,132        355,616        401,740
  Research                              276,562        230,411        575,005        484,654
                                    -----------    -----------    -----------    -----------
  Total                                 431,459        474,543        930,621        886,394
                                    -----------    -----------    -----------    -----------
Gross Profit on Revenues                869,020        958,623      1,996,104      2,023,752

Selling, General, and
 Administrative Expenses                937,599        941,096      1,954,532      1,748,668
                                    -----------    -----------    -----------    -----------
Income from Operations                  (68,579)        17,527         41,572        275,084
                                    -----------    -----------    -----------    -----------
Other Revenues (Expenses):
  Investment income                       5,558         15,909         10,338         30,673
  Interest expense                      (10,320)       (36,740)       (21,226)       (73,858)
                                    -----------    -----------    -----------    -----------
  Total Other Revenues (Expenses)        (4,762)       (20,831)       (10,888)       (43,185)
                                    -----------    -----------    -----------    -----------
Income before income taxes              (73,341)        (3,304)        30,684        231,899
Provision for income taxes               24,100          5,000        (30,400)       (95,000)
                                    -----------    -----------    -----------    -----------
Net Income                          $   (49,241)   $     1,696    $       284    $   136,899
                                    ===========    ===========    ===========    ===========
Basic earnings per Share            $     (0.03)   $      0.00    $      0.00    $      0.07
                                    ===========    ===========    ===========    ===========
Weighted average number of shares
  outstanding during the period       1,925,784      1,825,784      1,925,784      1,825,784
                                    ===========    ===========    ===========    ===========
</TABLE>

See notes to financial statements

4

<PAGE>

POLYMER RESEARCH CORP. OF AMERICA
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(UNAUDITED)
                                                          2001         2000
                                                   -----------    -----------
 Cash flows from operating activities:
 Net Income                                        $       284    $   136,899

Adjustments
to reconcile net income
to cash provided from operating
activities  Depreciation and amortization               50,000         49,997
                                                   -----------    -----------
Subtotal                                                50,284        186,896
Asset and
                                                   -----------    -----------
liability management: Accounts receivable              151,417        (44,462)
Inventories                                             (9,222)         5,404
Other
current assets                                                         24,427
Accounts payable                                        24,221        (39,189)
  Accrued expenses and other current liabilities
                                                        59,238       (150,291)
Income taxes payable                                   120,959         95,000
Deferred revenue                                       (22,723)       (51,332)
  Other assets                                              --         10,723
                                                   -----------    -----------
Increase (Decrease) in net operating assets            323,890       (149,729)

Netcash provided by operating
  activities                                           374,174         37,167
                                                   -----------    -----------

Cash flows from financing activities:
Proceeds from certificates of deposit                                  65,094
Proceeds from Investment securities                                   316,785
Payment of Note Payable                                   (613)        50,000
Payment of Mortgage                                                   (967,082)
Changes in long term debt                              (50,001)        34,102
Total
                                                   -----------    -----------
                                                       (50,614)      (501,101)
                                                   -----------    -----------

Cash flows from investing activities:

ADDITIONS TO LAND, PROPERTY,
 AND EQUIPMENT                                          (7,607)            --
                                                   -----------    -----------

INCREASE (DECREASE) IN CASH                            315,953       (463,934)

CASH AND CASH EQUIVALENTS-
  beginning of period                                  695,585      1,156,778
                                                   -----------    -----------
  end of period                                    $ 1,011,538    $   692,844
                                                   ===========    ===========


See notes to financial statements

5

<PAGE>

                       POLYMER RESEARCH CORP. OF AMERICA
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1- Basis of Presentation

The interim  financial  statements  included  herein have been prepared  without
audit,  pursuant to the rules and  regulations  of the  Securities  and Exchange
Commission  ("SEC").  Certain  information  and footnote  disclosures,  normally
included in the  financial  statements  prepared in  accordance  with  generally
accepted accounting  principles,  have been condensed or omitted pursuant to SEC
rules and regulations; nevertheless, management of the Company believes that the
disclosures   herein  are  adequate  to  make  the  information   presented  not
misleading.  The financial  statements  and notes should be read in  conjunction
with the audited financial  statements and notes thereto as of December 31, 2000
included in the Company's Form 10-KSB filed with SEC.
<PAGE>

In the  opinion  of  management,  all  adjustments  consisting  only  of  normal
recurring  adjustments necessary to present fairly the financial position of the
Company with respect to the interim  financial  statements  have been made.  The
results of operations for the interim periods are not necessarily  indicative of
the results to be expected for the full year.

NOTE 2 - Summary of Significant Accounting Policies

Business Activity

The Company is engaged in the research and  development of the  applications  of
chemical grafting and sells products resulting from such research.

Credit Risk

Financial  Instruments  that  potentially  subject  the  Company to credit  risk
include   investments  in  United  States  Treasury   bills,   notes  and  other
certificates of deposit, government agencies' securities and U.S. Government and
New York State mutual bond funds. Future changes in economic conditions may make
the investment less valuable.

In  addition,  financial  instruments  that  potentially  subject the Company to
credit risk also include accounts receivable. Accounts receivable resulting from
research or product sales are not collateralized.

The Company maintains deposits with financial  institutions in excess of amounts
insured by the FDIC.

6

<PAGE>

Pervasiveness of Estimates

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  reported  amounts of 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.

Revenue Recognition

Revenue from  research  contracts is  recognized  upon the  satisfaction  of the
following two criteria:  first,  client  approval of  performance  of a specific
stage of the contract and, second,  when collection of the resulting  revenue is
assured.  Revenue from  production is  recognized  when products are shipped for
sale to customers.
Inventories

Inventories  are  valued at the lower of cost or  market,  with cost  determined
using the  first-in,  first-out  method and with market  defined as the lower of
replacement cost or realizable value.

Property and Equipment

Property and equipment is stated at cost. The costs of additions and betterments
are capitalized and expenditures for repairs and maintenance are expensed in the
period incurred.  When items of property and equipment are sold or retired,  the
related costs and accumulated depreciation are removed from the accounts and any
gain or loss is included in income.

The Company  capitalizes leased equipment where the terms of the lease result in
the  transfer to the Company of  substantially  all of the benefits and risks of
ownership of the equipment.

Depreciation  and  amortization of property and equipment is provided  utilizing
the  straight-line  method over the  estimated  useful  lives of the  respective
assets as follows:
Transportation equipment               3 to 5 years
Machinery and equipment                    5 years
Furniture and fixtures               5 to 10 years
Building and improvements                 40 years
Office equipment under capital leases      5 years

7

<PAGE>

Income Taxes

The Company  accounts  for its income  taxes  utilizing  Statement  of Financial
Accounting  Standards  ("SFAS")  No. 109  "Accounting  for Income  Taxes"  which
requires that the Company  follow the liability  method of accounting for income
taxes.
The  liability  method  provides that  deferred tax assets and  liabilities  are
recorded based on the difference between the tax bases of assets and liabilities
and their  carrying  amounts for financial  reporting  purposes,  referred to as
"temporary differences." Net Earnings Per Share

Earnings per share are computed based upon the weighted average number of common
shares outstanding during each year.

NOTE 3 - Provision for Income Taxes  (First six months)

                    2001       2000
                   ------     ------
Federal           $ 12,500   $ 60,000
State and local     17,900     40,000
                  --------   --------
Total             $ 30,400   $100,000
                  ========   ========
NOTE 4 - Contingencies

At June 30, 2001 the Company was a defendant in various  lawsuits which arose in
the ordinary  course of business.  At June 30, 2001,  the Company has included a
reserve  in  current  liabilities  in an  amount  that  management  believes  is
reasonable for legal expenses and potential  unfavorable  rulings or settlements
of these cases. It is management's opinion that the ultimate liability,  if any,
which might result from the  remainder of such actions would not have a material
effect on the Company's financial position.

NOTE 5 -  Long Term Debt

On March 15, 2000, the Company entered into a borrowing  arrangement with a bank
whereby the bank agreed to extend a $500,000  term loan facility to the Company.
The  Company  utilized  the  facility  in full in  connection  with the  balloon
mortgage  payment  on June 1,  2000.  The five year term  loan is  repayable  in
monthly  principal  installments of $8,333 plus interest at 8.5% per annum.  The
loan  requires the Company to comply with  certain  financial  covenants  and to
maintain on deposit with the lender no less than $150,000.  Simultaneously,  the
bank  extended a $250,000  line of credit  facility to the  Company,  $50,000 of
which was drawn upon and is  outstanding  at June 30,  2001.  To secure the term
loan and line of credit,  the Company granted the lender a security  interest in
all of the Company's personal property.

8

<PAGE>



NOTE 6 - Deferred Revenue

Deferred  revenue  represents  cash  received  from  customers  prior  to and in
anticipation of research services performed by the Company. As such services are
performed, such deferred amount is recognized as revenue.


9

<PAGE>


POLYMER
RESEARCH CORP. OF AMERICA

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

The  following  discussion  and analysis of financial  condition  and results of
operations should be read in conjunction with the Company's financial statements
and the accompanying notes thereto included herein, and the financial statements
included in its 2000 annual report on Form 10-KSB. This Quarterly Report on Form
10-QSB includes forward-looking  statements within the meaning of Section 27A of
the  Securities  Act of 1933,  as  amended  and  Section  21E of the  Securities
Exchange Act of 1934, as amended.

Forward-looking  statements  involve known and unknown risks,  uncertainties and
other factors which could cause the actual  results,  performance  (financial or
operating)  or  achievements   expressed  or  implied  by  such  forward-looking
statements  not  to  occur  or  be  realized.  Such  forward-looking  statements
generally  are based  upon the  Company's  best  estimated  of  future  results,
performance or achievement,  based upon current  conditions,  and based upon the
most recent results of operations. There can be no assurance that actual results
will not differ  materially  from  those  expressed  or  implied in the  forward
looking statements.

Forward-looking  statements  may be  identified  by the  use of  forward-looking
terminology   such  as   "may,"   "will,"   "expect,"   "believe,"   "estimate,"
"anticipate,"  "continue"  or similar  terms,  variations  of those terms or the
negative of those terms.  Potential risks and uncertainties include, among other
things,  such factors as the ability to attract and retain qualified  personnel,
the effect on our financial  condition of delays in payments received from third
parties,  economic  conditions,  and other factors which may be set forth in our
other filings with the Securities and Exchange Commission.

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.

CAPITAL RESOURCES AND LIQUIDITY

Cash and  cash  equivalents  have  increased  collectively  by $  315,953  since
December  31,  2000.  The increase  resulted  principally  from the receipt of a
$90,000 tax  refund,  reduction  in other  prepaid  expenses  and  reduction  of
accounts receivable.

Prepaid  taxes  decreased  as  a  result  of  application  of  payments  against
liabilities created during the year.

10

<PAGE>

The ratio of current assets to current liabilities  remained the same at 1.90 to
1.0 at June 30, 2001 as compared to 1.91 to 1.0 at December 31, 2000.
On March 20, 2000, the Company entered into a borrowing  arrangement with a bank
whereby the bank agreed to extend a $500,000  term loan facility to the Company.
The Company  utilized  the  facility  in  connection  with the balloon  mortgage
payment  on June 1,  2000.  The five  year  term loan is  repayable  in  monthly
principal  installments  of $8,333  plus  interest  at 8.5% per annum.  The loan
requires the Company to comply with certain financial  covenants and to maintain
on  deposit  with the  lender  $150,000.  Simultaneously,  the bank  extended  a
$250,000 line of credit facility to the Company, $50,000 of which was drawn upon
and was outstanding at June 30, 2001.

Based on the above,  management believes the Company's cash position at June 30,
2001 is sufficient  to cover any  unforeseen  sales  downturn in the short term.
Over both the long and short term,  liquidity  will be a direct  result of sales
and related net earnings. No significant capital expenditures are anticipated.

B.  RESULTS OF OPERATIONS

Three months ended June 30, 2001 v. 2000

Net  revenues for the second  quarter of 2001 were $ 1,300,479,  a decrease of $
132,687 (9%) compared with the second quarter of 2000.  Research sales decreased
$ 99,805 (8%) in the second  quarter of 2001  compared to 2000.  The decrease is
due to  decreased  demand for  research  services  related to a slowdown  in the
economy. Product sales decreased $32,882 (16%) compared to the second quarter of
2000 due to decreased demand from research customers.

The cost of revenues in research increased to 24% from 18% in the second quarter
of 2001 compared to 2000 as a result of increased payroll and supply expenses in
the Arizona laboratory. The cost of revenues in production decreased to 91% from
120% in the second  quarter of 2001  compared  to 2000 as a result of  decreased
payroll expenses due to attrition of employees that were not replaced.


Selling, general, and administrative expenses increased as a percentage of sales
in the second  quarter of 2001 as compared to the same  quarter of 2000 from 65%
to 72% as a result of increased reserves for contingent liabilities.  Net income
for the second  quarter  decreased from $ 1,696 (.1% of sales) in 2000 to a loss
of $ 49,241 in 2001 principally as a result of increased reserves for contingent
liabilities. Income before interest and taxes decreased by $86,106.

11

<PAGE>

Six months ended June 30, 2001 v. 2000

Net revenues for the first six months of 2001 were $2,926,725,  an increase of $
16,579  (.5%)  compared  with the  first  six  months  of 2000.  Research  sales
increased  $ 8,004  (.3%) in the first six  months of 2001 as  compared  to 2000
while  product sales  increased  $8,575 (2%) compared to the first six months of
2000.

The cost of  revenues  in  research  increased  to 23% from 19% in the first six
months of 2001 as compared to 2000 as a result of increased  expenses in payroll
in the Arizona laboratory.

The cost of revenues in  production  decreased to 90% from 104% in the first six
months of 2001 as compared to 2000 as a result of decreased payroll expenses due
to  attrition  of  employees  that  were not  replaced.  Selling,  general,  and
administrative  expenses  increased as a percentage of sales to 60% in the first
six  months of 2001 as  compared  to 51% in the  first  six  months of 2000 as a
result of increased reserves for contingent liabilities.

Net income for the first six months  decreased from $ 136,899 (4.7% of sales) in
2001 to $ 284 (0% of sales) in 2001 primarily due to increased  Arizona  payroll
expenses and increased reserves for contingent liabilities.

12

<PAGE>


PART II -
OTHER INFORMATION


ITEM 4 - Submission of Matters to a Vote of Security Holders:

The  company  held its  annual  meeting on May 25,  2001.  At such  meeting  the
following persons were elected directors:

         Director
                            votes for:       withheld:

         Carl Horowitz      1,283,363
         Irene Horowitz     1,283,363
         John Ryan          1,283,363
         Alice Horowitz     1,283,363
         Boris Jody         1,283,363
         Mohan Sanduja      1,283,363
         Terry J. Wolfgang  1,283,363

ITEM 6 - Exhibits and Reports on Form 8-K:

          The  Company  filed a Report  on Form  8-K/A-1  dated  April  2,  2001
reporting under item 4. Changes in Registrant's Certifying Accountants.

13

<PAGE>

                                  FORM 10-QSB

                                   SIGNATURES



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


                              POLYMER RESEARCH CORP. OF AMERICA,
                              ----------------------------------
                                         (REGISTRANT)


Date    August 13, 2001        /s/  Carl Horowitz
      -------------------     ------------------------------------
                               Carl Horowitz, President and Chief
                               Accounting Officer


14