UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB



(Mark One)

[X]     QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
        OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2001


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


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

     There were 1,925,784 shares of the registrant's common stock outstanding as
of October 26, 2001.


<PAGE>


                     POLYMER RESEARCH CORPORATION OF AMERICA


                             - FORM 10QSB - INDEX -



<TABLE>
<CAPTION>
                                                                                                 Page(s)
                                                                                                  -------
PART I.        FINANCIAL INFORMATION:
<S>                                                                                                   <C>
Item 1.        Financial Statements

               Balance Sheets at September 30, 2001 (unaudited)
                  and December 31, 2000                                                                1

               Statements of Operations for the Three
                  Month Periods Ended September 30, 2001 and 2000 (unaudited)                          2

               Statement of Operations for the Nine
                  Month Periods Ended September 30, 2001 and 2000 (unaudited)                          3

               Statements of Cash Flows for the Nine
                  Month Periods Ended September 30, 2001 and 2000 (unaudited)

               Notes to Financial Statements                                                         5-7

Item 2.        Management's Discussion and Analysis or Plan of Operation                             8-9

PART II.       OTHER INFORMATION                                                                      10

Item 1.        Legal Proceedings                                                                       9

Item 2.        Changes in Securities                                                                   9

Item 3.        Defaults Upon Senior Securities                                                        10

Item 4.        Submission of Matters to a Vote of Security Holders                                    10

Item 5.        Other Information                                                                      10

Item 6.        Exhibits and Reports on Form 8-K                                                       10

Signatures                                                                                            11



<PAGE>




PART I - Financial Information
------------------------------
Item 1- Financial Statements


                     POLYMER RESEARCH CORPORATION OF AMERICA
                                 BALANCE SHEETS
                                   - ASSETS -
                                                                                              September 30,        December 31,
                                                                                                  2001                2000
                                                                                               -----------         -----------
                                                                                               (Unaudited)
CURRENT ASSETS:
     Cash and cash equivalents                                                                 $   630,851         $   695,585
     Cash restricted-current                                                                        60,000              30,000
     Accounts receivable, less allowances of $0                                                    274,352             281,661
     Inventories                                                                                   108,273             124,719
     Deferred tax charge                                                                            33,600              33,600
     Prepaid and refundable income taxes                                                           131,772             203,405
                                                                                               -----------         -----------
TOTAL CURRENT ASSETS                                                                             1,238,848           1,368,970
                                                                                               -----------         -----------

Land, Property, and Equipment-net
  of accumulated depreciation of $ 1,157,626 and $1,107,628 respectively                         2,606,387           2,673,779
                                                                                               -----------         -----------

OTHER ASSETS:
Cash-restricted, non-current                                                                        90,000             120,000
Security deposits                                                                                    1,095               1,195
                                                                                               -----------         -----------
Total other assets                                                                                  91,095             121,195
                                                                                               -----------         -----------
TOTAL                                                                                          $ 3,936,330         $ 4,163,944
                                                                                               ===========         ===========

                                                - LIABILITIES AND STOCKHOLDERS' EQUITY -

CURRENT LIABILITIES:
     Note payable-bank                                                                         $    50,000         $    50,613
     Current portion of term loan                                                                  100,000             100,000
     Accounts payable                                                                               31,693              19,991
     Accrued expenses and other current liabilities                                                203,160             234,574
     Deferred revenue                                                                              144,674             290,000
                                                                                               -----------         -----------

TOTAL CURRENT LIABILITIES                                                                          529,527             695,178
                                                                                               -----------         -----------

LONG-TERM LIABILITIES:
Term loan, less current maturities                                                                 266,667             341,667
                                                                                               -----------         -----------

TOTAL LIABILITIES                                                                                  796,194           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                                                                          (366,338)           (379,375)
     Less:  Treasury stock, at cost 22,140 respectively                                            (17,761)            (17,761)
                                                                                               -----------         -----------

TOTAL STOCKHOLDERS' EQUITY                                                                       3,140,136           3,127,099
                                                                                               -----------         -----------

TOTAL                                                                                          $ 3,936,330         $ 4,163,944
                                                                                               ===========         ===========




                 See accompanying notes to financial statements.

                                      - 1 -

<PAGE>





                    POLYMER RESEARCH CORPORATION OF AMERICA
                            STATEMENTS OF OPERATIONS
                        FOR THE THREE MONTH PERIODS ENDED
                           SEPTEMBER 30, 2001 AND 2000
                                   (Unaudited)

                                                                                                    2001              2000

Net Revenue

    Product Sales                                                                            $      134,402    $     140,882

    Research                                                                                      1,061,683          997,736
                                                                                             --------------    -------------

    Total                                                                                         1,196,085        1,138,618
                                                                                             --------------    -------------

Cost of Revenues

    Product Sales                                                                                   111,336          149,692

    Research                                                                                        254,081          258,206
                                                                                             --------------    -------------
    Total                                                                                           365,417          407,898
                                                                                             --------------    -------------

Gross Profit on Revenues                                                                            830,668          730,720
                                                                                             --------------    -------------

Selling, General and Administrative Expenses                                                        813,428          582,246
                                                                                           ----------------    -------------

Income from Operations                                                                               17,240          148,474
                                                                                           ----------------    -------------

Other Revenue (Expenses):

    Investment income                                                                                 1,871            6,476

    Interest expense                                                                                 (7,957)         (11,405)
                                                                                             ---------------   --------------

Total other Revenues (Expenses)                                                                      (6,086)          (4,929)
                                                                                             ---------------   --------------

Income before income taxes                                                                           11,154          143,545

(Provision) benefit  for income taxes                                                                 1,600          (63,950)
                                                                                           -----------------   --------------

Net Income                                                                                   $       12,754    $      79,595
                                                                                             ==============    =============

Basic earnings per share                                                                                .01              .04
                                                                                             ==============    =============

Weighted average number of shares outstanding during the period                                   1,925,784        1,813,644
                                                                                             ==============    =============



                 See accompanying notes to financial statements.

                                      - 2-




<PAGE>





                     POLYMER RESEARCH CORPORATION OF AMERICA
                            STATEMENTS OF OPERATIONS
                        FOR THE NINE MONTH PERIODS ENDED
                           SEPTEMBER 30, 2001 AND 2000
                                   (Unaudited)

                                                                                                2001                 2000
                                                                                            -----------          -----------
Net Revenue

     Product Sales                                                                          $   530,359          $   528,264

     Research Revenue                                                                         3,592,451            3,520,500
                                                                                            -----------          -----------

     Total                                                                                    4,122,810            4,048,764
                                                                                            -----------          -----------

Cost of Revenues

     Product Sales                                                                              466,952
                                                                                                                     551,432

     Research                                                                                   829,086              742,860
                                                                                            -----------          -----------
     Total                                                                                    1,296,038            1,294,292
                                                                                            -----------          -----------
Gross Profit on Revenues                                                                      2,826,772            2,754,472
                                                                                            -----------          -----------
Selling, General and Administrative Expenses                                                  2,767,960            2,330,914
                                                                                            -----------          -----------

Income from Operations                                                                           58,812              423,558
                                                                                            -----------          -----------

Other Revenue (Expenses):

     Investment income                                                                           12,209               37,149

     Interest expense                                                                           (29,183)             (85,263)
                                                                                            -----------          -----------

Total other revenues (Expenses)                                                                 (16,974)             (48,114)
                                                                                            -----------          -----------

Income before income taxes                                                                       41,838              375,444
                                                                                            -----------          -----------

Provision for income taxes                                                                      (28,800)            (158,950)
                                                                                            -----------          -----------

Net Income                                                                                  $    13,038          $   216,494
                                                                                            ===========          ===========
Basic earnings per share                                                                            .01                  .12
                                                                                            ===========          ===========

Weighted average number of shares outstanding during the period                               1,925,784            1,813,644
                                                                                            ===========          ===========

                 See accompanying notes to financial statements.

                                      - 3 -



<PAGE>





                     POLYMER RESEARCH CORPORATION OF AMERICA
                            STATEMENTS OF CASH FLOWS
                        FOR THE NINE MONTH PERIODS ENDED
                           SEPTEMBER 30, 2001 AND 2000
                                   (Unaudited)



                                                                                             2001                   2000
                                                                                         -----------           -----------
OPERATIONS:

Net income                                                                                $  13,038              $ 216,494
Charge not affecting funds-
     Depreciation and amortization                                                           75,000                 74,996
                                                                                          ---------              ---------
Funds Provided by Operations                                                                 88,038                291,490
                                                                                          ---------              ---------
     Asset and liability management:
       Accounts receivable                                                                    7,309               (220,489)
     Inventories                                                                             16,446                  9,993
     Other current assets                                                                    71,733                  4,640
       Other assets                                                                          10,723
       Accounts payable                                                                      11,702                (34,090)
       Accrued expenses and other                                                           (31,414)              (111,154)
     Income taxes payable                                                                   159,169
     Deferred revenue                                                                      (145,326)               (91,332)
                                                                                          ---------              ---------
Increase(Decrease) in net operating assets                                                  (69,550)              (272,540)
                                                                                          ---------              ---------
Total                                                                                        18,488                 18,950
                                                                                          ---------              ---------

FUNDS USED BY FINANCING
Certificates of deposit                                                                                            115,246
Investment securities                                                                                              316,785
Proceeds of Note payable (Repayment)                                                           (614)                50,000
Payment of mortgage                                                                                               (967,082)
Payments of\receipts of long term debt                                                      (75,000)                 9,100
                                                                                          ---------              ---------
Total                                                                                       (75,614)              (475,951)
                                                                                          ---------              ---------

INVESTMENT IN LAND, PROPERTY, AND EQUIPMENT                                                  (7,608)                    --
                                                                                          ---------              ---------


INCREASE (DECREASE) IN CASH                                                               $ (64,734)             $(457,001)
                                                                                          =========              =========
</TABLE>


                 See accompanying notes to financial statements.

                                      - 4 -



<PAGE>



                    POLYMER RESEARCH CORPORATION OF AMERICA
                          NOTES TO FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2001 AND 2000
                                   (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.

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.

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.



                                     - 5 -
<PAGE>

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):

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 & Equipment                       5 years
Furniture & Fixtures                        5 to 10 years
Building and improvements                   40 years
Office equipment under Capital leases       5 years

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

The financial statements are presented in accordance with Statement of Financial
Accounting Standards No. 128 "Earnings Per Share". Basic earnings per share are
computed based upon the weighted average number of common shares outstanding
during each year. Diluted earnings per share incorporate the incremental shares
issuable upon the assumed exercise of stock options and warrants. In accordance
with SFAS 128, diluted earnings per share is not presented in years during which
the are no outstanding options or warrants.


                                     - 6 -
<PAGE>



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

                                                 2001               2000
                                                 -----              ----

Federal                                      $   13,300        $   99,000
State and local                                  15,500            59,950
                                                 ------            ------

Total                                        $   28,800        $  158,950
                                                 ------           -------

NOTE 4 - Contingencies

At September  30, 2001,  the Company was a defendant in various  lawsuits  which
arose in the ordinary course of business. At September 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.  Such  required  balance is
decreased proportionately as the term loan is reduced. 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 September 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.


NOTE 6 - Deferred Revenue

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





                                     - 7 -
<PAGE>


                    POLYMER RESEARCH CORPORATION OF AMERICA
                                OTHER INFORMATION
                           SEPTEMBER 30, 2001 AND 2000
                                   (Unaudited)


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS
            OR PLAN 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  estimates  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,  variation 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 decreased collectively by $64,734 since December
31, 2000. The decrease resulted principally from the repayment of long-term debt
of $75,000.

The ratio of current assets to current  liabilities  increased to 2.28 to 1.0 at
September  30, 2001 as compared to 1.91 to 1.0 at December 31, 2000  principally
as a result of the recognition of and therefore  reduction of deferred  revenue.
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 and at September 30, 2001 the balance was $366,667.  The
five-year term loan is repayable in monthly principal instalments 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 September 30,
2001 for use as working capital.

Based on the above, management believes the Company's cash position at September
30, 2001 is sufficient to meet its financial  needs and 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.




                                     - 8 -
<PAGE>



B. RESULTS OF OPERATIONS

Three months ended September 30, 2001 v. 2000.

Net  revenues  for the third  quarter of 2001 were  $1,196,085  an increase of $
57,467 (5%) compared with the third quarter of 2000.  Research  sales  increased
$63,947  (6%) in the third  quarter  of 2001  compared  to 2000.  Product  sales
decreased  $6,480 (5%)  compared to the third  quarter of 2000 due to  decreased
demand from research customers.

The cost of revenues in research  decreased to 24% from 26% in the third quarter
of 2001 compared to 2000 as a result of increased sales with similar payroll and
supply expenses.  The cost of revenues in production  decreased to 82% from 106%
in the third quarter of 2001  compared to 2000 as a result of decreased  payroll
expenses due to attrition of employees who were not replaced.

Selling, general, and administrative expenses increased as a percentage of sales
in the third quarter of 2001 as compared to the same quarter of 2000 from 51% to
68% as a result of increased legal settlement expenses. Net income for the third
quarter  decreased  from $79,595 (7% of sales) in 2000 to $ 754 (0% of sales) in
2001 principally as a result of increased selling,  general,  and administrative
expenses. Income before interest and taxes decreased by $132,391.

Nine months ended September 30, 2001 v. 2000.

Net revenues for the first nine months of 2001 were  $4,122,810,  an increase of
$74,046  (2%)  compared  with the  first  nine  months of 2000.  Research  sales
increased  $71,951  (2%) in the first nine  months of 2001 as  compared  to 2000
while product sales  increased  $2,095 (0%) compared to the first nine months of
2000.

The cost of  revenues in  research  increased  to 23% from 21% in the first nine
months of 2001 as compared to 2000 as a result of increased  payroll expenses in
the Arizona laboratory.

The cost of revenues in production  decreased to 88% from 104% in the first nine
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 67% in the first
nine  months of 2001 as  compared  to 57% in the first nine  months of 2000 as a
result of increased legal settlements.

Net income for the first nine months  decreased  from  $216,494 (5% of sales) in
2000 to $1,038 (0% of sales) in 2001 primarily due to increased  Arizona payroll
expenses and  increased  legal  settlements.  Income  before  interest and taxes
decreased by $364,746.



                                     - 9 -

<PAGE>


PART II

OTHER INFORMATION

ITEM  1 - Legal proceedings:

The  Company is party to various  lawsuits  arising  in the  ordinary  course of
business. The Company's financial statements include reserves for legal expenses
and any unfavorable outcomes in amounts management believes to be reasonable. In
the opinion of  management,  such  lawsuits  should not have a material  adverse
effect on the Company's financial condition


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:   NONE








                                     - 10 -
<PAGE>




                                   SIGNATURES

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

                                POLYMER RESEARCH CORPORATION OF AMERICA

November  8, 2001               by:   /s/ Carl Horowitz
                                      -----------------------------
                                      Carl Horowitz President and
                                      Chief Accounting Officer







                                     - 11 -