U.S. SECURITIES AND EXCHANGE COMMISSION

                         Washington, D.C. 20549



                              FORM  10-QSB



               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

                     THE SECURITIES EXCHANGE ACT OF 1934



For quarter ended September 30, 1996          Commission File No. 33-30476-D




                       ISO BLOCK PRODUCTS USA, INC.

            (Exact name of registrant as specified in its charter)

		

             COLORADO                                84-1026503 

(State or other jurisdiction of           (I.R.S. Employer Identification No.)
 incorporation or organization) 	

   8037 South Datura Street                        (303) 795-9729 
  Littleton, Colorado 80120                (Registrant's Telephone No.  incl.
                                                    area code)  
(Address of Principal's Executive
             Offices)  		


  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 such shorter period that the
registrant was required to file such reports), and (2) has been subject
to such filing requirements for at least the past 90 days.

 Yes ___          No   X  


  The number of shares outstanding of each of the Registrant's classes
of common equity, as of February 28, 1997 are as follows:


         Class of Securities                 	Shares Outstanding 
         -------------------                  ------------------
     Common Stock, No Par Value                    3,185,821 
   Preferred Stock, No Par Value                   1,448,610 





                      ISO BLOCK PRODUCTS USA, INC. 

		

             	  TABLE OF CONTENTS                              	PAGE 

                     	PART 1 	
		

Item 1.  FINANCIAL STATEMENTS 	 

         Consolidated  Balance Sheet as of September 30, 1996........ 	3 

         Consolidated Statement of Operations for the three month 
           period ended September 30, 1996...........................  4 

         Consolidated Statement of Cash Flows for the three month
           period ended September 30, 1996........................... 	5 

 
Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS   	7 

                      PART 2 	 


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

		
         Signatures................................................. 	12 





                      ISO BLOCK PRODUCTS USA, INC.

                 CONSOLIDATED COMPARATIVE BALANCE SHEET


	 

                   ASSETS                    March 31, 1996   Sept. 30, 1996 
                   ------                    --------------   --------------
Current Assets 			
--------------
  Cash                                              10,296          589,499 
  Note Receivable - Officer                          2,000            2,000 
  Mortgages Receivable                           1,335,624        1,331,060 
  Accounts Receivable                                   -           121,887 
  Prepaid Expenses                                      -                -   
                                             --------------   --------------
    Total Current Assets                         1,347,920        2,044,446 
			

Property & Equipment 			
--------------------
  Office Equipment                                   2,660            2,660 
  Less: Accumulated Depreciation                      (532)            (976) 
                                             --------------   --------------
    Net Property & Equipment                         2,128            1,684 
                                             --------------   --------------
    TOTAL ASSETS                                 1,350,048        2,046,130 
                                             --------------   --------------
			

         LIABILITIES & STOCKHOLDERS' EQUITY 			
         ----------------------------------

Current Liabilities 			
-------------------
  Accounts Payable                                   6,682         163,842 
                                               ------------   -------------
			
Stockholders' Equity 			
--------------------
  Preferred Stock, No Par Value,
10,000,000 Shares Authorized,
728,610 and 1,448,610 Shares Outstand-
ing, Respectively.                                 739,200        1,427,700 

  Common Stock, 50,000,000 Shares
Authorized, 3,185,821 and 3,185,821
Shares Outstanding, Respectively.                1,436,055        1,436,055 
                                              -------------   --------------
  Accumulated Deficit                             (831,889)        (981,467) 

                                              -------------   --------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY         1,350,048        2,046,130 
                                              -------------   --------------
			 

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




                      ISO BLOCK PRODUCTS USA, INC.

             CONSOLIDATED COMPARATIVE STATEMENT OF OPERATIONS

     
            For the Periods Ended September 30, 1995 and 1996

	 

                      Six Months Ended Sept. 30,  Three Months Ended Sept. 30,
                           1995         1996            1995          1996  
                           ----         ----            ----          ----
Income 							
------
  Construction Sales     309,210      123,133          154,605           -   
  Interest Income          1,158       11,516              579        5,574 
                       ----------   ----------       ----------   ----------
    Total Income         310,368      134,649          155,184        5,574 

	 	 	 		 		 

Cost Of Sales  							
-------------
  Cost of Materials      474,962      162,128          237,481           -   
  Labor                   47,156       62,621           23,578       39,931 
                       ----------   ----------       ----------   ----------
    Total Cost of Sales  522,118      224,749          261,059       39,931 

	
  Gross Profit (Loss)   (211,750)     (90,100)        (105,875)     (34,357) 


Operating Expenses 							
------------------
  General and Admin.     129,318       59,478           64,659       25,956 
                       ----------   ----------       ----------   ---------- 
    Net Loss           	(341,068)    (149,578)        (170,534)     (60,313) 

					

Loss Per Common Share       (.11)        (.05)            (.05)        (.02) 

				
Weighted Average
  Shares Outstanding   3,185,821    3,185,821        3,185,821    3,185,821 




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




                        ISO BLOCK PRODUCTS USA, INC.

                CONSOLIDATED COMPARATIVE STATEMENT OF CASH FLOWS


              For the Three Months Ended September 30, 1995 and 1996


                               	                 Three Months Ended Sept. 30, 
                                                        1995          1996    
                                                        ----          ----
			
Cash Flows From Operating Activities 			
------------------------------------
  Net Income (Loss)                                  (170,534)      (60,313) 
    Depreciation                                           -            222 
    Note Receivable - Officer                              -             -   
    Mortgages Receivable                                   -          3,558 
    Account Receivable                                     -            241 
    Prepaid Expenses                                      601            -   
    Accounts Payable                                  (11,645)       (2,538) 
                                                    ----------    ----------
  Net Cash Used in Operating Activities              (181,578)      (58,830) 


Cash Flow From Investing Activities 			
-----------------------------------
  Purchase From Preferred Stock                            -             -   

  	 		 
Cash Flow From Financing Activities 	 		 
-----------------------------------
  Proceeds From Preferred Stock                       130,400       576,500 
  Proceeds From Common Stock                               -             -   
  Write-down of Mortgage Receivable                        -             -   
  Foreign Exchange Gains (Losses)                       1,437            -   
                                                    ----------    ----------
    Net Cash Provided by (Used in)
      Financing Activities                            131,837       576,500 

	 		 

Net Increase (Decrease) In Cash                       (49,741)      517,670 
-------------------------------
	 	 	 

Cash - Beginning of the Period                        159,521        71,829 
------------------------------                      ----------    ----------
 	 		 

Cash - End of the Period                              109,780       589,499 
------------------------                            ----------    ----------



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





                       ISO BLOCK PRODUCTS USA, INC.

                  NOTES TO UNAUDITED  FINANCIAL STATEMENTS



Note  1.  Company Description. 
------------------------------

            ISO Block Products USA, Inc. ("Company") was incorporated in
          the State of Colorado on April 28, 1986 under the name Champion
          Computer Rentals, Inc.  The Company was formed to obtain funding
          from a public offering in order to engage in the sale and
          leasing of computers and related equipment.  As March 31, 1992,
          the Company ceased those sale and leasing operations.


            A change of control of the Company occurred effective March 31,
          1994, in which the former officers and directors resigned and
          were replaced by the current  officers  and directors.  In
          connection with this change in the members of the board, an
          aggregate of 2,000,000 common shares of the Company were issued
          to previously unaffiliated persons pursuant to the Company's
          acquisition of all of the equity interest in  and to, and all
          profits of, R-S ISO-Block Produktions GmbH, a German limited
          liability company ("ISO-Block GmbH").



          Legal Proceedings.
          ------------------

            The Company and its President, Egin Bresnig, have been named as
          defendants in Texas Finance Incorporated Vs ISO Block Products
          USA, Inc. et al, filed in the United States District Court for
          the District of Colorado, Civil Action No. 96WM-1961. The suit
          alleges among other things that the plaintiff purchased
          securities of the Company in reliance upon misleading statements
          knowingly made by the Company, Mr. Bresnig and others, and seeks
          return of the price paid for the securities plus damages under
          various federal and state securities laws. The Company has not
          answered the lawsuit but has instead filed a motion to dismiss
          the complaint upon various grounds, including among others that
          the plaintiff has sustained no damages and lacks standing to
          bring the action. The Company intends to vigorously defend the
          action if it does not prevail on its motion to dismiss.
          Management believes that, should the action go to trial the
          Company will prevail on the merits. Otherwise, the Company is
          not subject to any pending or threatened legal proceedings.



Note 2.   Summary of Significant Accounting Policies. 
-----------------------------------------------------

           The accompanying unaudited financial statements of the Company
          have  been prepared on the accrual basis and in accordance with
          the instructions to Form 10-QSB and do not include all of the
          information and footnotes required by generally accepted
          accounting principles for complete financial statements.  In the
          opinion of management, all adjustments (considered necessary for
          a for a fair presentation have been included. These financial
          statements should be read in conjunction with the financial
          statements and notes thereto included in the Company's annual
          report on Form 10-KSB for the fiscal year ended March 31, 1996. 
          Following is a summary of significant accounting policies.




                         ISO BLOCK PRODUCTS USA, INC.

                    NOTES TO UNAUDITED FINANCIAL STATEMENTS

                                (continued)


          Organization costs.
          -------------------

            Certain costs incurred to set up the Company are capitalized
          and were amortized over five years.  These costs were fully
          amortized at March 31, 1994.



          Income taxes.  
          -------------

            The Company accounts for income taxes under SFAS No. 109. 
          Deferred income taxes result from temporary differences. 
          Temporary differences are differences between the tax basis of
          assets and liabilities and their reported amounts in the
          financial statements that will result in taxable or deductible
          amounts in future years.


          Foreign Currency Translation. 
          -----------------------------

            The functional currency for the Company's operations is the
          applicable local currency.  The translation of the applicable
          foreign currency into U.S. dollars is performed for balance
          sheet accounts using current exchange rates in effect at the
          balance sheet date and for revenue and expense accounts using a
          weighted average rate during the period.  The gains or losses
          resulting from such translation are included in stockholder's
          equity.



          Consolidation.
          --------------

            The financial statements include the accounts of the Company
          and its wholly owned German subsidiary, ISO-Block GmbH.  All
          significant intercompany balances and transactions have been
          eliminated in consolidation.



          Income (Loss) Per Common Share. 
          --------------------------------

            Income (loss) per common share is based upon the weighted
          average number of common  shares outstanding during each period.
          Options and warrants outstanding to purchase common stock are
          included as common stock equivalents when dilutive.



          Concentrations of Credit Risk. 
          ------------------------------

            The Company's financial instruments that are exposed  to
          concentrations of credit risk consist primarily of mortgages
          receivable. 


Note 3. 
-------

            During the fiscal year ended March 31, 1996, the Company
          incurred a net loss of $682,136, and as of that date had
          accumulated a deficit of $831,889.  The Company had slight
          operations during the second fiscal quarter covered by  these
          statements but incurred  a loss for the quarter of $60,313.     
          


Note 4.  
-------

            Future working capital requirements are dependent on the
          Company's ability to attain profitable operations and to obtain
          financing or new capital  as required.  It is not possible at
          this time to predict the outcome of future operations or whether
          the necessary financing or investment can be arranged.          
    



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

          Background. 
          ----------- 

            ISO Block Products USA, Inc., is a Colorado  corporation
          ("Company").  The Company originally was operational from
          inception through March 31, 1992, and was not operational from
          such date until the Company's acquisition on March 31,  1994 of
          R-S ISO-Block Producktions GmbH, a German limited liability
          company located in Frankenstein, Germany ("ISO-Block GmbH'). 
          The Company has, since March 31, 1994, engaged in operations in
          Germany through ISO-Block GmbH, as described below. On March 28,
          1994, the Company entered into an 


            Agreement and Plan of Reorganization("Reorganization Agreement")
          with ISO-Block GmbH, Josef Ratey, an individual, Helge Seidel,
          an individual, and R-S Plus Investment Corp., A Florida
          corporation  ("R-S Plus").  Pursuant to the Reorganization
          Agreement, on March 31, 1994, the Company purchased from Ratey
          and Seidel all of the equity interest in Iso-Block GmbH, and
          purchased from R-S Plus property (mortgages receivable)
          heretofore contributed to ISO-Block GmbH and all R-S Plus'
          rights to ISO-Block GmbH profits, all in exchange for the
          issuance of an aggregate of 2,000,000 shares of the Company's
          authorized but heretofore unissued stock, no par value.


            In connection with these transactions under the Reorganization
          Agreement, the interest owners of ISO-Block GmbH (Ratey and
          Seidel) and R-S Plus (Ratey) acquired ownership of a majority of
          the Company's common stock.  As a result, the transaction has
          been accounted for as a purchase by the Company.



          Business. 
          ---------

            The first half of the business year of 1994 was occupied in
          establishing the infra structure to gear up for the planned
          operational activities of the German subsidiary, Iso-Block GmbH.
          The Company had a very difficult time trying to raise capital to
          start single-family and multi-family developmental projects as a
          general contractor. The Company decided to begin building single
          family custom homes at first, using the Company's proprietary
          building system, before attempting larger and more aggressive
          project. Not until the first fiscal quarter of 1995 was the
          Company able to raise sufficient additional capital to begin
          operations.


            The Company had a difficult but promising start, and the wholly
          owned subsidiary Iso-Block GmbH began custom home construction
          in Germany in the first fiscal quarter of 1995. A
          proof-of-concept home was built to demonstrate the Company's
          proprietary building system, several homes were completed for
          customers and others were initiated. Bigger projects were
          planned, some with partial financing from local governments.


            During the first fiscal quarter, 1996 the Company decided to
          discontinue its European operations because of the continuing
          recession in Germany and the difficulty in managing its European
          subsidiaries from Denver, Colorado. Iso-Block GmbH has cease
          operations in July 1996. The Company will incur dissolution
          expenses in ceasing operations of its two European subsidiaries
          of $166,000. 



          Current Business of the Company 
          -------------------------------

            The Company will function entirely as an US company planning to
          engage in the business of residential home construction as
          general contractor in the State of Colorado.  Additionally, the
          Company will pursue investment opportunities subject to
          availability of capital.



          Results of Operations.
          ----------------------

          During the quarter ended September 30, 1996 (the second fiscal
          quarter of this year), the Company had revenues of $5,574 and
          engaged in limited operations primarily those of winding down
          its European operations compared to the second fiscal quarter of
          1995 in  which the Company had revenues of $155,184. The Company
          realized a loss of  $60,313 as of September 30, 1996, in
          comparison to a loss of $170,534 in the second fiscal quarter of
          1995. The loss realized in the second quarter of 1996 was
          primarily due to $39,931 spent for labor and $25,956 for general
          and administrative expenses incurred in completing all
          construction projects in progress and the dissolution of its
          European operations.


            As of September 30, 1996, the Company had raised $571,500 from
          the sale of 580,000 shares of its Series B, Non-Voting
          Convertible Preferred Stock, stated value $0.95, $1.05 for
          325,000, and  255,000 respectively.



          Liquidity and Capital Resources. 
          ---------------------------------

            The Company has total assets at the end of the second fiscal
          quarter, 1996 of $2,046,130 including cash of $589,499.  


          Changes in and Disagreements with Accountants or Accounting and
          ---------------------------------------------------------------
            Financial Disclosure.
            ---------------------
	                           
            On April 29, 1996, the Company engaged R. Scott Hall, CPA, as
          its independent auditor, replacing BDO Seidman L.L.P, who were
          dismissed as the Company's auditors effective May 8, 1996, as
          reported on Form 8-K dated such date.



                                      PART IV



Item 13. Exhibits and Reports on Form 8-K.
--------------------------------------------

           (a)  Exhibits.  The following exhibits are filed with this
         report, except those indicated as having previously been filed
         with the Securities and Exchange Commission and which are
         incorporated by reference to another report, registration
         statement or form. As to any shareholder of record requesting a
         copy of this report, the Company will furnish any exhibit
         indicated in the list below as filed with this report (not
         incorporated by reference) upon payment to the Company of its
         expenses in furnishing the information. References to the
         "Company" mean ISO-BLOCK PRODUCTS USA, INC. (formerly named
         Champion Computer Rentals, Inc.).


2.0  Plan of Acquisition, Reorganization, Arrangement, Liquidation or
----------------------------------------------------------------------
       Succession
       -----------

2.1  Agreement and Plan of Reorganization dated March 28, 1994 
     (incorporated by reference to Exhibit 2.1 to Form 8-K dated
     March 28, 1994)...................................................   *


3.0  Articles and Bylaws  
------------------------

3.1  Articles of Incorporation of the Company (incorporated by
     reference to Exhibit 3.1 to registration statement on Form S-18
     of Champion Computer Rentals, Inc., file no. 33-23257-D)..........   *

3.3  Bylaws of the Company (incorporated by reference to Exhibit
     on Form 10-KSB for fiscal year ended 1993)........................   *

3.4  Certificate of Amendment and Restatement to Articles of
     Incorporation (incorporated by reference to Exhibit 3.4 to Form
     8-K dated February 10, 1994)......................................   *

3.5  Certificate of Amendment to Articles of Incorporation,
     changing the Company's name to Iso-Block Products USA, Inc.
     (incorporated by reference to Exhibit 2(c) to registration
     statement on Form 8-A, file no. 0-25810)..........................   *

3.6  Certificate of Designation Establishing Series A, Non-Voting
     Convertible Preferred Stock, as filed with the Colorado
     Secretary of State on May 19, 1995................................   *

3.7  Certificate of Designation Establishing Series B, Non-Voting
     Convertible Preferred Stock, as filed with the Colorado
     Secretary of State on May 26, 1995................................   *

3.8  Certificate of Amendment to Certificate of Designation
     Establishing Series C, Non-Voting Convertible Preferred Stock,
     as filed with the Colorado Secretary of State on June 26, 1995....   *

3.9  Certificate of Designation Establishing Series 1996,
     Non-Voting Convertible Preferred Stock (incorporated by reference
     to Exhibit 3.1 to Form 8-K dated January 24, 1997)................   *



4.0  Instruments Establishing Rights of Security Holders     
--------------------------------------------------------

4.1  Specimen common stock certificate of the Company
     (incorporated by reference to Exhibit 4.1 to registration
     statement on Form S-18 of Champion Computer Rentals, Inc.,
     file no. 33-23257-D)..............................................   *

4.2  Specimen Series A, Non-Voting Convertible Preferred Stock
     certificate.......................................................   *

4.3  Specimen Series B, Non-Voting Convertible Preferred Stock
     certificate ......................................................   *

4.4  Specimen Series C, Non-Voting Convertible Preferred Stock
     certificate ......................................................   * 

4.5  Specimen Series 1996, Non-Voting Convertible Preferred Stock
     certificate ......................................................   * 


10.0 Material Exhibits
----------------------
 
10.1 1993 Compensatory Stock Option Plan (incorporated by
     reference to Exhibit 10.1 to Form 8-K dated February 10,
     1994).............................................................   *

10.2 1993 Employee Stock Compensation Plan (incorporated by
     reference to Exhibit 10.2 to Form 8-K dated February 10,
     1994).............................................................   *

10.3 Settlement Agreement dated November 19, 1996 (incorporated
     by reference to Exhibit 10 to Form 8-K dated November 22,
     1996).............................................................   * 

10.4 Stock Option dated November 19, 1996 (incorporated by
     reference to Exhibit 4 to Form 8-K dated November 22,
     1996).............................................................   *

10.5 Exchange Agreement and Plan of Reorganization dated
     December 27, 1996 (incorporated by reference to Exhibit 2.1
     to Form 8-K dated January 24, 1997)...............................   *
 
10.6 Employment Agreement dated December 27, 1996 (incorporated
     by reference to Exhibit 10.1 to Form 8-K dated January 24,
     1997).............................................................   *



     * - Incorporated by reference to another registration
         statement, report or document.

     1 - Includes Exhibits filed as part of this Report.



    (b)  Reports on Form 8-K.  

         None.

         EX-27   Financial Data Schedule 



		



                                   SIGNATURES



            In accordance with section 13 or 15(d) of the Securities
          Exchange Act of 1934, the Registrant caused this Annual Report
          on Form 10-KSB to be signed on its behalf by the undersigned,
          thereto duly authorized individual.



            		

          Date: April 7, 1997          ISO BLOCK PRODUCTS USA, INC. 	

  	
                                  /s/  Egin Bresnig 	

                                       Egin Bresnig, Chief Executive Officer
	



            In accordance with the Securities Exchange Act of 1934, this
          report has been signed below by the following persons on behalf
          of the Registrant and in the capacities and on the dates
          indicated.

  		

        Name                       	Title                          	Date   

/s/  Egin Bresnig             	Director, President,             April 7, 1997 
     Egin Bresnig             	Chief Executive Officer 	 

/s/  Dean Wicker              	Director, Secretary              April 7, 1997 
     Dean Wicker 		 

/s/  Johnny M. Wilson         	Director                         April 7, 1997 
     Johnny M. Wilson