Document is copied.
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 1O-QSB


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

For Quarter ended September 30, 2000               Commission File No.33-30476-D


                                  CRYOCON, INC.
             (Exact name of registrant as specified in its charter)


                                    COLORADO
                         (State or other jurisdiction of
                         incorporation or organization)

                              2250 North 1500 West
                                Ogden, Utah 84401
                   (Address of Principal's Executive Offices)

                                   84-1O26503
                      (I.R.S. Employer Identification No.)



                                 (801) 395-2796
                  (Registrant's Telephone No. Incl. area code)



              Indicate by check mark whether the registrant (1) has
          filed all reports required to be filed by Section 13 or 15(d)
                        of the Securities Exchange Act of
              1934 during the preceding 12 months (or 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 _X_ No ___

                 The number of shares outstanding of each of the
                  Registrant's classes of common equity, as of
                        November 1, 2000, are as follows:

         Class of Securities                           Shares Outstanding
         -------------------                           ------------------
         Common Stock, no par value                    18, 061,811






<PAGE>




                                      INDEX

                                                                       Page of
                                                                        Report

PART I          FINANCIAL INFORMATION


Item 1.  Financial Statements

         Consolidated Balance Sheets
         (September 30, 2000 and March 31, 2000........................      3

         Consolidated Statement of Operations..........................      4

         Consolidated Statement of Stockholder's Equity................      5

         Consolidated Statement of Cash Flows .........................      7

         Notes to Unaudited Financial Statements.......................      8


Item  2. Management's Discussion and Analysis and
         Plan of Operation.............................................      15


                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings.............................................      18

Item 2.  Changes in Securities and Use of Proceeds.....................      18

Item 3.  Defaults Upon Senior Securities...............................      19

Item 4.  Submission of Matters to a Vote of Security Holders. .........      19

Item 5.  Other Information.............................................      19

Item 6.  Exhibits and Reports on Form 8-K..............................      19



         Signatures....................................................      20


                                       2

<PAGE>

                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                          (A Development Stage Company)

                        CONSOLIDATED FINANCIAL STATEMENTS

                      September 30, 2000 and March 31, 2000



<PAGE>



                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                          (A Development Stage Company)
                           Consolidated Balance Sheets

                                     ASSETS
                                     ------
<TABLE>
<CAPTION>


                                                                                September 30,      March 31,
                                                                                  2000                2000
                                                                                -------------      ---------
                                                                               (Unaudited)
<S>                                                                        <C>                 <C>

CURRENT ASSETS

   Cash                                                                    $          124,257  $          71,771
   Accounts receivable, net                                                            33,245             12,611
   Prepaid expenses                                                                     5,144             -
                                                                           ------------------  -----------------

     Total Current Assets                                                             162,646             84,382
                                                                           ------------------  -----------------

PROPERTY AND EQUIPMENT, NET (Note 2)                                                2,380,246          2,260,585
                                                                           ------------------  -----------------

OTHER ASSETS

   Other assets                                                                         9,133             -
   Patents, trademarks and licenses, net (Note 1)                                     404,100            419,067
                                                                           ------------------  -----------------

     Total Other Assets                                                               413,233            419,067
                                                                           ------------------  -----------------

     TOTAL ASSETS                                                          $        2,956,125  $       2,764,034
                                                                           ==================  =================

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                 ----------------------------------------------

CURRENT LIABILITIES

   Accounts payable                                                        $          157,261  $          75,705
   Accrued expenses                                                                   267,405             80,320
   Current portion long-term debt (Note 4)                                          2,900,000          2,863,149
                                                                           ------------------  -----------------

     Total Current Liabilities                                                      3,324,666          3,019,174
                                                                           ------------------  -----------------

LONG-TERM LIABILITIES

   Note payable, related party (Note 3)                                                50,000             50,000
   Long-term debt (Note 4)                                                          1,636,727            187,291
                                                                           ------------------  -----------------

     Total Long-Term Liabilities                                                    1,686,727            237,291
                                                                           ------------------  -----------------

     TOTAL LIABILITIES                                                              5,011,393          3,256,465
                                                                           ------------------  -----------------

STOCKHOLDERS' EQUITY (DEFICIT)

   Common stock: 50,000,000 shares authorized of no
    par value, 12,263,974 and 11,000,000 shares issued
    and outstanding, respectively                                                     513,708            577,500
   Deficit accumulated during the development stage                                (2,568,976)        (1,069,931)
                                                                           ------------------  -----------------

     Total Stockholders' Equity (Deficit)                                          (2,055,268)          (492,431)
                                                                           ------------------  -----------------

     TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY (DEFICIT)                                                     $        2,956,125  $       2,764,034
                                                                           ==================  =================
</TABLE>



<PAGE>



                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                      Consolidated Statement of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>



                                                                                                                      From
                                                                                                                   Inception on
                                                          For the                           For the                 October 20,
                                                     Six Months Ended                   Three Months Ended         1999 Through
                                                      September 30,                       September 30,            September 30,
                                                  2000             1999              2000            1999              2000
                                             ----------------  ---------------   --------------  --------------   ----------------

<S>                                          <C>               <C>              <C>              <C>              <C>

REVENUES

   Sales                                     $         81,411  $        -        $       40,996  $       -        $        103,916
                                             ----------------  ---------------   --------------  --------------   ----------------

COST OF SALES

   Supplies and materials                              14,641           -                 7,300          -                  21,620
                                             ----------------  ---------------   --------------  --------------   ----------------

GROSS MARGIN                                           66,770           -                33,696          -                  82,296
                                             ----------------  ---------------   --------------  --------------   ----------------

EXPENSES

   Advertising                                        199,547           -               133,691          -                 253,071
   Depreciation and amortization                       76,085           -                37,159          -                 118,384
   General and administrative                       1,075,050           -               705,933          -               2,038,540
                                             ----------------  ---------------   --------------  --------------   ----------------

     Total Expenses                                 1,350,682           -               876,783          -               2,409,995
                                             ----------------  ---------------   --------------  --------------   ----------------

OPERATING LOSS                                     (1,283,912)          -              (843,087)         -              (2,327,699)
                                             ----------------  ---------------   --------------  --------------   ----------------

OTHER (EXPENSE)

   Interest expense                                  (215,133)          -              (107,566)         -                (241,277)
                                             ----------------  ---------------   --------------  --------------   ----------------

     Total Other (Expense)                           (215,133)          -              (107,566)         -                (241,277)
                                             ----------------  ---------------   --------------  --------------   ----------------

NET LOSS                                     $     (1,499,045) $        -        $     (950,653) $       -        $     (2,568,976)
                                             ================  ===============   ==============  ==============   ================

BASIC LOSS PER SHARE                         $          (0.14) $        -        $        (0.09) $       -
                                             ================  ===============   ==============  ==============

WEIGHTED AVERAGE NUMBER OF
 SHARES OUTSTANDING                                11,035,110           -            11,070,221          -
                                             ================  ===============   ==============  ==============
</TABLE>


<PAGE>



                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                          (A Development Stage Company)
            Consolidated Statement of Stockholders' Equity (Deficit)
<TABLE>
<CAPTION>


                                                                                                    Deficit
                                                                                                 Accumulated
                                                                                                  During the
                                                                    Common Stock                 Development
                                                             Shares               Amount            Stage
                                                             ------               ------        ------------

<S>                                                    <C>                 <C>                 <C>

Balance at inception on
 October 20, 1999                                                  -       $           -       $          -

October 30, 1999, issuance of common
 stock to founders for services at $0.00
 per share                                                          1,000              -                  -

November 10, 1999, issuance of common
 stock to founders for services at $0.00
 per share                                                        524,000              -                  -

December 10, 1999, issuance of common
 stock to founders for services and
 intangible assets at $0.00 per share                           9,700,000              -                  -

November 10, 1999, issuance of common
 stock for services at $0.75 per share                            100,000              75,000             -

November 10, 1999, issuance of common
 stock for cash at $0.50 per share                                 10,000               5,000             -

November 10, 1999, issuance of common
 stock for services at $0.50 per share                              5,000               2,500             -

November 10, 1999, issuance of common
 stock for cash at $0.50 per share                                 10,000               5,000             -

November 10, 1999, issuance of common
 stock for cash at $0.50 per share                                  4,000               2,000             -

November 10, 1999, issuance of common
 stock for services at $0.50 per share                             16,000               8,000             -

November 10, 1999, issuance of common
 stock for services at $0.75 per share                            100,000              75,000             -

November 10, 1999, issuance of common
 stock for services at $0.75 per share                            500,000             375,000             -

November 10, 1999, Issuance of common
 stock for cash at $1.00 per share                                 10,000              10,000             -
                                                       ------------------  ------------------  -----------------

Balance forward                                                10,980,000  $          557,500  $          -
                                                       ------------------  ------------------  -----------------


</TABLE>


<PAGE>



                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                          (A Development Stage Company)
      Consolidated Statement of Stockholders' Equity (Deficit) (Continued)
<TABLE>
<CAPTION>


                                                                                                    Deficit
                                                                                                 Accumulated
                                                                                                  During the
                                                                    Common Stock                 Development
                                                             Shares               Amount            Stage
                                                             ------               ------        ------------

<S>                                                    <C>                 <C>                 <C>

Balance forward                                                10,980,000  $          557,500  $          -

November 11, 1999, issuance of common
 stock for cash at $1.00 per share                                 10,000              10,000             -

November 10, 1999, issuance of common
 stock for cash at $1.00 per share                                 10,000              10,000             -

Net loss from inception on
 October 20, 1999 through
 March 31, 2000                                                    -                   -              (1,069,931)
                                                       ------------------  ------------------  -----------------

Balance, March 31, 2000                                        11,000,000             577,500         (1,069,931)

September 21, 2000, recapitalization
 (unaudited)                                                    1,248,974             (71,292)            -

September 21, 2000, common stock
 issued for cast at $0.50 per share
 (unaudited)                                                       15,000               7,500             -

Net loss for the six months ended
 September 30, 2000 (unaudited)                                    -                   -              (1,499,045)
                                                       ------------------  ------------------  -----------------

Balance, September 30, 2000 (unaudited)                        12,263,974  $          513,708  $      (2,568,976)
                                                       ==================  ==================  =================
</TABLE>





<PAGE>



                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                          (A Development Stage Company)
                      Consolidated Statement of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                                                       From
                                                                                                                    Inception on
                                                         For the                          For the                    October 20,
                                                    Six Months Ended                  Three Months Ended            1999 Through
                                                      September 30,                     September 30,              September 30,
                                                  2000             1999              2000            1999              2000
                                             ----------------  ---------------   --------------  --------------   ----------------


<S>                                          <C>               <C>               <C>             <C>              <C>

CASH FLOWS FROM OPERATING
 ACTIVITIES

   Net (loss)                                $     (1,499,045) $        -        $     (950,653) $       -        $     (2,568,976)
   Adjustments to reconcile net loss to
    net cash used by operating activities:
     (Increase) decrease in accounts
      receivable                                      (20,635)          -                (5,718)         -                 (33,246
     Amortization and depreciation                     76,085           -                37,159          -                 118,584
     (Increase) decrease in other assets              (14,277)          -                21,677          -                 (14,277)
     Common stock issued for service                   -                -                -               -                 535,500
   Changes in operating assets and liabilities:
     Increase (decrease) in accounts
      Payable and accrued expenses                    197,349           -               167,557          -                 353,374
                                             ----------------  ---------------   --------------  --------------   ----------------

       Net Cash Used by Operating
        Activities                                 (1,260,523)          -              (729,978)         -              (1,609,241)
                                             ----------------  ---------------   --------------  --------------   ----------------

CASH FLOWS FROM INVESTING
 ACTIVITIES

   Purchase or development of
    intangibles                                        -                -                -               -                (449,000)
   Equipment purchases                               (180,778)          -               (21,436)         -                (403,729)
   Purchase of building                                -                -                -               -              (2,050,000)
                                             ----------------  ---------------   --------------  --------------   ----------------

       Net Cash (Used) by Investing
        Activities                                   (180,778)          -               (21,436)         -              (2,902,729)
                                             ----------------  ---------------   --------------  --------------   ----------------

CASH FLOWS FROM FINANCING
 ACTIVITIES

   Issuance of common stock for cash                    7,500           -                 7,500          -                  49,500
   Issuance of notes payable                        1,848,626           -               853,640          -               4,954,472
   Payments made on notes payable                    (362,339)          -              (106,824)         -                (367,745)
                                             ----------------  ---------------   --------------  --------------   ----------------

       Net Cash Provided by Financing
        Activities                                  1,493,787           -               754,316          -               4,636,227
                                             ----------------  ---------------   --------------  --------------   ----------------

NET INCREASE IN CASH AND
 CASH EQUIVALENTS                                      52,486           -                 2,902          -                 124,257

CASH AT BEGINNING OF PERIOD                            71,771           -               121,355          -                  -
                                             ----------------  ---------------   --------------  --------------   ----------------

CASH AT END OF PERIOD                        $        124,257  $        -        $      124,257  $       -        $        124,257
                                             ================  ===============   ==============  ==============   ================

</TABLE>



<PAGE>



                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                          (A Development Stage Company)
                Consolidated Statement of Cash Flows (Continued)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                                                       From
                                                                                                                    Inception on
                                                         For the                          For the                    October 20,
                                                    Six Months Ended                  Three Months Ended            1999 Through
                                                      September 30,                     September 30,              September 30,
                                                  2000             1999              2000            1999              2000
                                             ----------------  ---------------   --------------  --------------   ----------------

<S>                                          <C>               <C>               <C>             <C>              <C>

CASH PAID FOR:

   Interest                                  $         55,832  $        -        $       16,002  $       -        $         59,776
   Income taxes                              $         -       $        -        $       -       $       -        $         -

Schedule of Non-Cash Financing Activities:

   Common stock issued for services          $         -       $        -        $       -       $       -        $        535,500

</TABLE>

<PAGE>



                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                               September 30, 2000


NOTE 1 -      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

              General Information
              -------------------

              Cryocon,  Inc.  (the  Company)  is a  privately  held  corporation
              organized under the laws of the State of Utah in October 1999. The
              Company is engaged in the study of extremely low  temperatures and
              how materials  react to those  temperatures  and treating  various
              materials    with   those    temperatures    to   improve    their
              characteristics.

              The  financial  statements  presented  are those of Cryocon,  Inc.
              (Company).  The company was  incorporated  in the State of Utah on
              October 20, 1999. On September 21, 2000, ISO Block Products,  USA,
              Inc. (ISO) changed its name to Cryocon,  Inc. in conjunction  with
              the merger with  Cryocon,  Inc.  Prior to the  acquisition  of the
              Company, ISO had been seeking to merge with an existing, operating
              company.

              On August 16, 2000,  ISO and the Company  completed  an  Agreement
              and Plan of Reorganization whereby ISO issued 11,000,000 shares of
              its common  stock in exchange  for all of the  outstanding  common
              stock of Cryocon.  Immediately  prior to the Agreement and Plan or
              Reorganization,  the Company had 1,248,974  shares of common stock
              issued and outstanding.

              The acquisition was accounted for as a recapitalization of Cryocon
              because the  shareholders of Cryocon  controlled the Company after
              the  acquisition.  Therefore,  Cryocon is treated as the acquiring
              entity.  There  was no  adjustment  to the  carrying  value of the
              assets or  liabilities  of  Cryocon  in the  exchange.  ISO is the
              acquiring  entity for legal  purposes and Cryocon is the surviving
              entity  for  accounting  purposes.  On  September  21,  2000,  the
              shareholders  of the Company  authorized a reverse  stock split of
              1-for-4.  All  references  to  shares of  common  stock  have been
              retroactively restated.

              Revenue Recognition
              -------------------

              Revenue  is  recognized  on an accrual  basis when the  product is
              shipped.

              Property and Equipment
              ----------------------

              Property and  equipment are stated at cost with  depreciation  and
              amortization  computed on the straight-line  method.  Property and
              equipment  are  depreciated  over the following  estimated  useful
              lives:

                                                                         Years
                                                                         -----

                           Office furniture                               5-10
                           Machinery and equipment                        5
                           Building                                       39.5
                           Shop equipment                                 10


               Patents, Trademarks and Licenses
               --------------------------------
<TABLE>
<CAPTION>

                                                                                                       Net Book
                                                                                                        Value
                                                 Term              Cost              Amortization       2000
                                            ----------------  ------------------  ---------------  ----------------
               <S>                              <C>           <C>                 <C>              <C>

               Product rights                   5 years       $          100,000  $        16,666  $         83,334
               Customer lists, patents
                  and trademarks                5 years                  349,000           28,234           320,766
                                            ----------------  ------------------  ---------------  ----------------

                                                              $          449,000  $        44,900  $        404,100
                                                              ==================  ===============  ================
</TABLE>


<PAGE>



                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                               September 30, 2000


NOTE 1 -      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

               Patents, Trademarks and Licenses (Continued)
               --------------------------------------------

              Product rights,  customer lists,  patents and trademarks have been
              capitalized  and  amortized  over five years using a straight line
              method.  The total  amortization  of production  costs for the six
              months ended September 30, 2000 amounted to $44,900

              The  Company  evaluates  the  recoverability  of  intangibles  and
              reviews  the  amortization  period  on an  annual  basis.  Several
              factors  are  used to  evaluate  intangibles,  including,  but not
              limited  to,  management's  plans for  future  operations,  recent
              operating results and projected, undiscounted cash flows.

              Basic Loss Per Share
              --------------------
<TABLE>
<CAPTION>



                                                                                For the            For the
                                                                               Three Months        Six Months
                                                                                 Ended               Ended
                                                                                September 30,      September 30,
                                                                                  2000               2000
                                                                           ------------------   ------------------

              <S>                                                          <C>                  <C>
              Numerator - loss                                             $         (950,653)  $       (1,499,045)
              Denominator - weighted
               average number of
                shares outstanding                                                 11,070,221           11,035,110
                                                                           ------------------   ------------------

              Loss per share                                               $            (0.09)  $            (0.14)
                                                                           ==================   ==================
</TABLE>

              Cash Flows
              ----------

              For purposes of reporting  cash flows,  cash and cash  equivalents
              include cash on hand and cash on deposit with banks.

              Income Taxes
              ------------

              The  Company's  tax basis is the same as the  Company's  financial
              statement basis. The Company has net operating loss  carryforwards
              of approximately $2,568,976 available to offset future federal and
              state income tax through 2021.  The Company has not recorded a tax
              benefit  attributable to the carryforwards  because realization of
              such has been offset by a valuation allowance for the same amount.

              Production Costs
              ----------------

              The  Company  classifies  the  costs of  planning,  designing  and
              establishing the  technological  feasibility of development  costs
              and  charges  those  costs  to  expense  when  incurred.  Costs of
              maintenance and customer support are charged to expense when costs
              are incurred.

              Advertising
              -----------

              The  Company   follows  the  policy  of  charging   the  costs  of
              advertising to expense as incurred.
<PAGE>



                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                               September 30, 2000


NOTE 1 -      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

              Estimates
              ---------

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

              Unaudited Financial Statements
              ------------------------------

              The accompanying unaudited financial statements include all of the
              adjustments which, in the opinion of management, are necessary for
              a fair  presentation.  Such  adjustments are of a normal recurring
              nature.

              Change in Accounting Principles
              -------------------------------

              The Company adopted  Statement of Financial  Accounting  Standards
              (SFAS) No. 128,  "Earnings  Per Share" during the year ended March
              31, 2000. In accordance  with SFAS No. 128,  diluted  earnings per
              share  must  be   calculated   when  an  entity  has   convertible
              securities, warrants, options, and other securities that represent
              potential  common  shares.  The  purpose  of  calculating  diluted
              earnings  (loss)  per share is to show (on a  proforma  basis) per
              share  earnings or losses  assuming the exercise or  conversion of
              all securities  that are  exercisable  or convertible  into common
              stock and that would either dilute or not affect basis of EPS.

NOTE 2 -      PROPERTY AND EQUIPMENT

              Property and  equipment  as of September  30, 2000 are detailed in
              the following summary:
<TABLE>
<CAPTION>

                                                                                                     Net Book
                                                                                 Accumulated          Value
                                                              Cost              Depreciation           2000
                                                            -----------         ------------         -----------
                                                            (Unaudited)         (Unaudited)          (Unaudited)


              <S>                                       <C>                 <C>                 <C>
              Office furniture and fixtures             $          200,718  $           10,140  $          190,578
              Machinery and equipment                              177,872              11,463             166,409
              Building improvements                                 25,139                 367              24,772
              Building                                           2,050,000              51,514           1,998,486
                                                        ------------------  ------------------  ------------------

                       Total                            $        2,453,729  $           73,484  $        2,380,245
                                                        ==================  ==================  ==================
</TABLE>

              Depreciation  expense is computed principally on the straight-line
              method in amounts  sufficient to write off the cost of depreciable
              assets over their estimated useful lives. Depreciation expense for
              the six months  ended  September  30,  2000 and 1999,  amounted to
              $61,118 and $-0-, respectively.




<PAGE>



                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                               September 30, 2000


NOTE 3 -      NOTE PAYABLE - RELATED PARTY

              Note  payable  to a  related  party as of  September  30,  2000 is
              detailed in the following summary:
<TABLE>
<CAPTION>


                                                                                                        2000
                                                                                                     -----------
                                                                                                     (Unaudited)
              <S>                                                                               <C>

              Note payable to CEO; with an interest rate of 10%;
               unsecured; is due January 3, 2003.                                               $           50,000

                     Total related party notes payable                                                      -

                     Less: current portion                                                                  -
                                                                                                ------------------

                     Long-term portion                                                          $           50,000
                                                                                                ==================

              Maturities of the related party debenture payable are as follows:

                                                    Period ending March 31, 2001                $           -
                                                                            2002                            -
                                                                            2003                            50,000
                                                                                                ------------------

                                                                            Total               $           50,000
                                                                                                ==================
</TABLE>

NOTE 4 -      LONG-TERM DEBT

              Notes  payable  as of  September  30,  2000  are  detailed  in the
              following summary:
<TABLE>
<CAPTION>


                                                                                                       2000
                                                                                                       ----
              <S>                                                                               <C>

              Note payable to a company; which includes
               interest at 9.5%; due September 2004, secured by vehicle.                        $           21,717

              Note payable to a company; which includes
               interest at 21%; due March 2005, secured by vehicle.                                         39,555

              Notes payable to a company; due
               December 2006, which includes interest at 8%.                                               182,455

              Convertible debentures to a company; due
               on demand, which includes interest at 10%.                                                2,843,000

              Note payable to a company due September 9, 2000,
               interest at 8%, secured by property.                                                      1,450,000
                                                                                                ------------------

                   Total long-term debt                                                                  4,536,727

                   Less: current portion                                                                 2,900,000
                                                                                                ------------------

                   Long-term portion                                                            $        1,636,727
                                                                                                ==================


</TABLE>


<PAGE>



                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                               September 30, 2000


NOTE 4 -      LONG-TERM DEBT (Continued)

              Maturities of long-term debt are summarized below:

                      Period ending March 31,           2001  $        2,900,000
                                                        2002             327,000
                                                        2003             327,000
                                                        2004             327,000
                                                        2005             327,000
                                                        2006             328,727
                                                              ------------------

                                                       Total  $        4,536,727
                                                              ==================

NOTE 5 -      COMMON STOCK

              On October 30, 1999, the Company issued 1,000 shares of its common
              stock, valued at $0.00 per share for cash of $-0-.

              On November 10, 1999,  the Company  issued  524,000  shares of its
              common stock, valued at $0.00 per share for services of $-0-.

              On December 10, 1999, the Company issued  9,700,000  shares of its
              common  stock,   valued  at  $0.00  per  share  for  services  and
              intangible assets of $-0-.

              On November 10, 1999,  the Company  issued  100,000  shares of its
              common stock, valued at $0.75 per share for services of $75,000.

              On November  10, 1999,  the Company  issued  10,000  shares of its
              common stock, valued at $0.50 per share for cash of $5,000.

              On November  10,  1999,  the Company  issued  5,000  shares of its
              common stock, valued at $0.50 per share for services of $2,500.

              On November  10, 1999,  the Company  issued  10,000  shares of its
              common stock, valued at $0.50 per share for cash of $5,000.

              On November  10,  1999,  the Company  issued  4,000  shares of its
              common stock, valued at $0500 per share for cash of $2,000.

              On November  10, 1999,  the Company  issued  16,000  shares of its
              common stock, valued at $0.50 per share for services of $8,000.

              On November 10, 1999,  the Company  issued  100,000  shares of its
              common stock, valued at $0.75 per share for services of $75,000.

              On November 10, 1999,  the Company  issued  500,000  shares of its
              common stock, valued at $0.75 per share for services of $375,000.

              On November  10, 1999,  the Company  issued  10,000  shares of its
              common stock, valued at $1.00 per share for cash of $10,000.






<PAGE>



                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                               September 30, 2000


NOTE 5 -      COMMON STOCK (Continued)

              On November  11, 1999,  the Company  issued  10,000  shares of its
              common stock, valued at $1.00 per share for cash of $10,000.

              On November  10, 1999,  the Company  issued  10,000  shares of its
              common stock, valued at $1.00 per share for cash of $10,000.

              On September 21, 2000, the Company issued  1,248,974 shares of its
              common stock for recapitalization.

              On September  21, 2000,  the Company  issued  15,000 shares of its
              common stock, valued at $0.50 per share for cash of $7,500.

NOTE 6 -      GOING CONCERN

              The Company's  financial  statements are prepared using  generally
              accepted accounting principles applicable to a going concern which
              contemplates   the   realization  of  assets  and  liquidation  of
              liabilities in the normal course of business. However, the Company
              does not have significant cash or other material assets,  nor does
              it have an established source of revenues  sufficient to cover its
              operating costs and to allow it to continue as a going concern. It
              is the intent of the Company to used the acquired  publicly traded
              shell to  facilitate  the  raising of equity  capital.  Until that
              time,  the  stockholders  have committed to covering the operating
              costs of the Company.

NOTE 7 -      OPTIONS

              On July 17, 2000, the Corporate officers of the Company registered
              shares available under an Options which were part of the Agreement
              and Plan of  Reorganization,  executed  on April  25,  2000.  Egin
              Bresnig,  Edward Dean  Wicker and John D.  Brasher  each  received
              under the Agreement options of 500,000 shares of the common stock.
              All the terms and  conditions  precedent  under the  Agreement and
              Plan of  Reorganization  were  fulfilled  and closing  occurred on
              August 16, 2000.  The  Exercise  price of the shares on August 16,
              2000 was $0.125.  The market value of said shares on that date was
              $0.875.  Between  August 16, 2000, and the date of the four to one
              reverse split on September 21, 2000,  15,000 shares were issued to
              Edward Dean Wicker. After the reverse split on September 21, 2000,
              the total  number of shares  available  under these  options  were
              reduced to 125,000 shares each (less 3,750 to Mr. Wicker) at $0.50
              a share.  Since  September 21, 2000,  Mr. Wicker has exercised his
              options  for a total of 6,500  shares  of  common  stock  and John
              Brasher has not exercised his options.

              On May 31, 2000,  the Board of  Directors of the Company  voted to
              authorize the issuance of 1,000,000 shares of common stock for use
              as compensation to consultants,  advisors, and various parties our
              market makers believed could provide a value to the  establishment
              of and  generation  of funds for the  corporation.  On August  15,
              2000, the authorized  shares were extended to Mr. Todd Moore as an
              option  for  use  in  the  manner  anticipated  by  the  Board  of
              Directors.  The exercise price of said shares was set at $0.10 per
              share. On August 15, 2000, the closing price of ISO Block's common
              stock was $0.875 per share.  No shares have been issued under this
              option as of the date of this statement.




<PAGE>


                                  CRYOCON, INC.
                     (Formerly ISO Block Products USA, Inc.)
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                               September 30, 2000


NOTE 8 -      SUBSEQUENT EVENTS

              On October 27, 2000,  Paragon  provided  Notices of Conversion for
              Paragon Venture Funds I-IV.  Notice was  subsequently  provided to
              the Company's transfer agent to issue four certificates to Paragon
              Venture  Funds  I-IV  in  the  amounts  of  2,880,000;  1,294,000;
              1,355,437; and, 237,500,  respectively. The certificates have been
              issued and  Paragon  is in the  process of  dividing  the  current
              shares among the various investors in the Venture Funds.


<PAGE>



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


FORWARD LOOKING STATEMENTS:

This Management's Discussion and Analysis of Financial Condition and Plan of
Operation and the documents incorporated in this document by reference include
forward-looking statements under the Securities Act. In addition, from time to
time, we have made or may make forward-looking statements orally or in writing.
The words "may," "will," "expect," "anticipate," "believe," "estimate," "plan,"
"intend" and similar expressions have been used in this document and the
documents incorporated in this prospectus by reference to identify
forward-looking statements. We have based these forward-looking statements on
our current views with respect to future events and financial performance.
Actual results could differ materially from those projected in the
forward-looking statements. These forward-looking statements are subject to
risks, uncertainties and assumptions, including,

  -    risks associated with managing and maintaining internal growth
  -    competition, including market competition,
  -    changes in coverage or reimbursement practices of health maintenance
       organizations and private insurers
  -    adverse results in regulatory matters, the adoption of adverse
       legislation or regulations, more aggressive enforcement of existing
       legislation or regulations or a change in the interpretation of existing
       legislation or regulations
  -    dependence on key members of management
  -    other risks described in this "Risk Factors" section
  -    other risks described from time to time in our filings with the SEC

We are not obligated to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. All subsequent
written and oral forward-looking statements attributable to us or persons acting
on our behalf are expressly qualified in their entirety by the cautionary
statements contained throughout this document and the documents incorporated in
this document by reference. Because of these risks, uncertainties and
assumptions, you should not place undue reliance on these forward-looking
statements.

Overview

         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 obtained funding from a public offering in order to engage in the
sale and leasing of computers and related equipment. The Company's principal
business operations through March 31, 1992 consisted of leasing out computers,
peripheral products and software. The Company realized only nominal revenues
through March 31, 1992. As March 31, 1992, the Company ceased its computer sale
and leasing operation.

         On March 28, 1994, the Company entered into an Agreement and Plan of
Reorganization with R-S Iso-Block Produktions GmbH, a German limited liability
company ("Iso-Block GmbH"), Josef Ratey, an individual ("Ratey"), Helge Seidel,
an individual ("Seidel"), and R-S Plus Investment Corp., a Florida corporation
("R-S PLUS"). Pursuant to the Reorganization Agreement, on March 31, 1995 the
Company purchased from Ratey and Seidel all of the equity interest in Iso-Block
GmbH, and purchased from R-S Plus all of its right, title and interest in and to
Iso-Block GmbH, including all R-S Plus property heretofore contributed to
Iso-Block GmbH and all R-S Plus's rights to Iso-Block profits, in exchange for
the issuance of an aggregate of 2,000,000 shares of the Company's authorized but
heretofore unissued common stock, no par value. In 1995, Iso-Block GmbH changed
its name to R-S ISO-Block Produktions und Bautrager GmbH, which permitted it to
engage in the business of constructing buildings as well as manufacture and
production of building materials.

         In fiscal years ended 1995 and 1996, Iso-Block GmbH had certain
operations in Germany. The Company wound down such operations in the closing
months of 1996. Beginning 1996, the Company functioned entirely as a US company
engaged in the business of residential home construction as general contractor.


<PAGE>

         On January 24, 1997, the Company acquired 100% of the stock of
Franchise Connection, Inc. and its wholly owned subsidiary Brilliant Marketing,
Inc., ("Franchise Connection") a strategic conglomerate of new and emerging
franchise companies and a team of franchise experts that work together to match
the aspirations of entrepreneurs with viable analogous franchise concepts.

         Franchise Connection, Inc. was incorporated in Colorado in 1996 with
headquarters in Denver, Colorado. The Company attempted to form strategic
partnerships with prospective or existing franchise operations ("Franchisers")
under which the Company planned to provide marketing and sales services plus
business and legal services in return for an equity interest in, and/or a
portion of their royalties. The Company targeted private companies that sought
to franchise expertise or financial capacity to successfully engage in
franchising. The Company offered comprehensive franchise marketing and
consulting services to its franchisers companies including operations,
personnel, management, training, legal and financial advice. In addition,
Franchise Connection assumed total responsibility for the recruitment of
franchisees, including national media advertising, trade show attendance, and
other forms of promotion supported by a commissioned sales staff.

         Franchise Connection, Inc. developed Magna Dry LLC. Franchise
Connection, Inc. formed a Colorado Limited Liability Company "Magna-Dry USA,
LLC" of which was the sole member. Magna -Dry USA purchased the exclusive
license to operate and franchise the Magna-Dry concept in total cleaning
throughout the United States. Franchise Connections, Inc. executed a five-year
license agreement with renewal options and paid a master franchise fee. The
principal business was manufacturing, re-packaging, distribution and licensing
of leading edge environmentally safe-cleaning services developed by an
Australian formulator Charles C. Borg. Franchise Connection, Inc. had exclusive
territorial rights to manufacture and distribute Magna-Dry products in the
United States.

         On August 31, 1999 the Company, Franchise Connection, Magna Dry,
Brilliant Marketing and certain individuals entered into a Unwinding Agreement
due to the lack of cash on hand and lack of operating income. The discontinued
operations resulted in $86,232 of liabilities that are no longer a
responsibility of the Company.

         The Company entered into an Agreement and Plan of Reorganization, dated
July 20, 1999, with MedScan Technologies, Inc., an Oklahoma corporation
("MedScan"), and the shareholders of MedScan (the "MedScan Holders"). In that
agreement, the Company agreed to issue, at closing, 10 million shares of its
common stock in exchange for all of the outstanding common stock of MedScan, all
of the issued Class A common stock of American Capital Corporation, a Nevada
corporation ("AMCAP"), and all of the common stock of Star Insurance Company,
Ltd., an insurance company domiciled and licensed in the Federation of St. Kitts
and Nevis, British West Indies ("STAR"). The Company terminated the agreement,
based on failure of the closing to take place by the time required in the
agreement, based on the fact that the selling holder of the STAR common stock
repudiated the Exchange Agreement and announced its refusal to consummate the
Exchange, and based on the failure or untruth of certain representations and
warranties of MedScan made in the Exchange Agreement. The Company, by letter
faxed to MedScan , notified MedScan of the termination. No person associated
with MedScan, AMCAP or STAR ever become an officer or director of the Company.

         Until December 31, 1999, the Company's principal operations consisted
of residential home construction as general contractor.

Current Business of the Company

         On August 16, 2000, the Company acquired 100% of the stock of Cryocon,
Inc., a Utah Corporation (Hereinafter, "Cryocon"). Cryocon is the only operation
subsidiary of the Company. Cryocon, was organized to provide deep cryogenic
tempering of materials to relieve stress and enhance durability and wear. Deep
<PAGE>

cryogenic tempering is a process that includes the application of extremely low
temperatures (approximately, -300F) utilizing a computer controlled process. On
November 10, 1999, Mr. Brunson executed an agreement to purchase Cryo-Accurizing
Division and the Tri-Lax Process from 300 Below Inc. for approximately $449,000
in cash, of which a portion was paid as a down payment and the balance evidenced
by a promissory note. On December 10, 1999, Cryocon acquired Cryo-Accurizing
Division and the Tri-Lax Process from Robert W. Brunson along with Mr. Brunson's
interests in a patent on the Cryo-Accurizing Division, for a combination of cash
and a debenture for Cryocon stock, and Cryocon also assumed the obligation to
pay the remaining balance of approximately $180,000.00 under the note to 300
Below Inc. Mr. Brunson developed both the Cryo-Accurizing Division and the
Tri-Lax Process while president of 300 Below, Inc. and was a co-holder of the
patent on the Cryo-Accurizing Division, which was awarded on February 2, 1999.

         The Cryo-Accurizing is the patented process that Cryocon uses to
perform deep cryogenic tempering, material stabilization and stress relief to
firearms to improve accuracy, longevity and increase ease of cleaning. The
Tri-Lax Process is a combination of cryogenic, electromagnetic and sonic
treatment. The Cryo-Accurizing Division is one of many projects and divisions of
Cryocon.

         Cryocon currently has the capability to provide its customers with Deep
Cryogenic Processing in its facilities in Utah. The process can be used for
treating tooling (drill bits, dies, and punches), wear parts (forming dies,
extrusion equipment, and hammer mills), and many other items including motor
parts, razor blades, firearms, pantyhose, musical instruments, and softball
bats. Cryocon's process has numerous applications in the aerospace, mining,
energy, electronic, medical and manufacturing industries.

         In addition, Cryocon intends to manufacture cryogenic processors, which
are machines used to cryogenically treat materials. The cryogenic processors can
be custom designed to the purchasers' specifications. Cryocon also intends to
manufacture a tabletop cryogenic processor.

Plan of Operations

         Cryocon's plan of operation is to develop it's research and development
program while focusing on sales and strategic alliances. There are many testing
programs ongoing with major manufacturers in the mining, aerospace, automotive,
military/weapons, and electronics industries. It is anticipated that these
testing programs and strategic alliances will result in contracts which will
generate significant revenues in the future.

         Specific research and development goals include extensive analytical
testing of deep cryogenic effects on synthetic materials and electronics in
addition to obtaining specific data concerning the beneficial effects of
Cryocon's proprietary Deep Cryogenic Tempering process on various metals and
alloys.

         Cryocon has also begun the development of proto-types of Cryogenic
Processors that it is anticipated will find wide acceptance in a broad variety
of professions and industries. It is anticipated that at least one proto-type
will be unveiled at a major trade show early in 2001.

         Cryocon has also begun and plans to continue in a program of obtaining
patent protection for it's proprietary process as well as specific applications.
Cryocon anticipates having several patent grants, and/or applications pending
prior to the end of the fiscal year 2000.

Liquidity and Capital Resources.

         Cryocon Inc., a Utah Corporation, commenced operations On January 3,
2000. As noted above, Cryocon was organized to provide Deep Cryogenic Tempering
services and equipment to various industries. Also as noted above, Cryocon Inc,
a Utah Corporation, was acquired by the Company on August 16, 2000. All
discussions concerning finances, business operations, revenues and forward
looking statements are referencing the business operations of Cryocon, Inc., a
Utah Corporation which has been merged into the Company and provides the only
basis of business for the Company.

<PAGE>

         Since inception on October 20, 1999, Cryocon (Utah) realized $103,916
in gross sales and had $33,245 in accounts receivable. Since inception,
Cryocon's cumulative operating loss through September 30, 2000 is $2,568,976.
The loss is attributable to pre-organizational, start-up and operating costs,
and costs incurred in financing efforts.

         Cryocon's operation to date consumed substantial amounts of cash. The
negative cash flow from operations is expected to continue and may accelerate in
the foreseeable future. The rate at which the Company expends its resources is
variable and may accelerate, depending on many factors, many of which are
outside the control of the Company, including the continued progress of the
Company's research and development of new process applications; the cost, the
timing, and outcome of further regulatory approvals; the expenses of
establishing a sales and marketing force, the timing and cost of establishing or
procuring additional requisite production and other manufacturing capacities,
the cost; if any, the cost of preparing, filing, prosecuting, maintaining,
defending and enforcing patent claims; and the status of competitive products
and the availability of other financing.

         Because Cryocon is still in the development stage, it has limited
working capital and limited internal financial resources. Cryocon's limited cash
flows have prevented the company from borrowing funds from conventional lending
institutions. Since the Cryocon has not been able to secure funding from
commercial lenders, Cryocon has relied on private investments from
third-parties, including the Company's management, to meet its current
obligations. As of November 14, 2000, Cryocon will have sufficient cash on hand
to fund approximately an additional two months of operations at the current run
rate; however, Management is confident of being able to obtain operational funds
through various means. Management believes that it should obtain profitability
by the end of fiscal year 2001.

         Cryocon's administrative offices and facilities are located at 2250
North 1500 West Ogden, Utah 84404 and consist of 39,828 square feet. On March 9,
2000, Cryocon entered into a purchase agreement for this building for a price of
$2,050,296.00. As of March 31, 2000, $250,000 was placed down on the building
with an additional payment of $244,740.14 being made in June of 2000. An
additional payment on the principal of $100,000 being made on September 29, 2000
reducing the total outstanding principal on the building to $1,455,556.
Permanent financing is being arranged and closing on the building is set for on
or before November 30, 2000.

         While there is no anticipated significant changes in the number of
employees, Management anticipates that it will need to hire additional sales and
administrative staff and personnel specifically in the research and development
program.

         Cryocon's financial information is prepared using generally accepted
accounting principles applicable to a going concern that contemplates the
realization of assets and liquidation of liabilities in the normal course of
business.

PART II  OTHER INFORMATION

Item 1.  Legal Proceedings

None.

Item 2. Changes in Securities and Use of Proceeds

None

Item 3.  Defaults Upon Senior Securities

None

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

<PAGE>

A Special Shareholder's Meeting was properly noticed and held on September 21,
2000. The purpose of the meeting was to obtain shareholder approval on four
proposed Resolutions of the Board of Directors. The purpose of the resolutions
was to complete the final steps necessary to fully execute those matter agreed
to in the Agreement and Plan of Reorganization, which was executed on April 25,
2000.

At the meeting, sufficient affirmative votes were obtained to approve all the
proposed Resolutions: (1) approval of the four to one reverse split of the
shares of the Corporation: for: 42,140,000; against: 10,000; abstain: 6,845,732;
(2) Increase the capital stock of the Corporation to 50,000,000 shares of Common
Stock: for: 42,140,000; against 25,000; abstain: 6,830,732; (3) Amending the
name of the Corporation from ISO Block Products USA, Inc. to Cryocon, Inc.: for:
42,140,000; against: 19,000; abstain: 6,826,732; (4) Ratification of the change
of Auditor to HJ & Associates of Salt Lake City: for: 42,140,000; against 4375;
abstained: 6,851,357.

Item 5.  Other Information

None.

Item 6.   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. 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 upon the
request of any Shareholder of Record.

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

         2.1     Agreement and Plan of Reorganization dated April 25, 2000
                 (incorporated by reference to Exhibit
                  2.1 to Form 8-K dated August 18, 2000


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-8
                 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 Amendment to Articles of Incorporation, changing
                 the Company's name to Cryocon, Inc., authorizing a four to one
                 reverse split, authorizing the increase of capital stock to
                 50,000,000 shares of Common Stock, and ratifying the change of
                 auditors to HJ & Associates of Salt Lake City, Utah........ 21

<PAGE>

27.      Financial Data Schedule  .........................................  23


         (b) Reports on Form 8-K.

The following 8-Ks were filed between June 30, 2000 and September 30, 2000:

         (1)     8-K filed August 18, 2000, reporting on the closing of the
                 Agreement and Plan of Reorganization, the Changes in Control of
                 the Registrant and the Acquisition or Disposition of Assets.

         (2)     8-K filed September 25, 2000, reporting on the Special
                 Shareholder's Meeting resulting in the Company Name Change,
                 four to one reverse split, increase in capital stock to
                 50,000,000 and the ratification of the new auditor, HJ &
                 Associates of Salt Lake City, Utah. Also reported on the change
                 of trading symbol from ISOB to CRYQ.

         (3)     8-K filed September 25, 2000, reporting on the Change of the
                 Registrant's certifying accountant.

         (4)     8-K/A filed September 29, 2000, providing the pro forma
                 required under the 8-K filed August 18, 2000.



                                   SIGNATURES
--------------------------------------------------------------------------------

  In accordance with the requirements of the Exchange Act, the Registrant caused
this  Report  on Form  10-QSB to be  signed  on its  behalf  by the  undersigned
thereunto duly authorized.


Dated: November 13, 2000

                                     CRYOCON, INC.


                                     By: ____________/s/________________________
                                               Robert W. Brunson,
                                               President/Chief Executive Officer




                                     By: ___________/s/_________________________
                                                Robert W. Brunson
                                                Acting Chief Financial Officer