<PAGE>

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

                                  Form 10-QSB

(Mark One)

   [X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934
               For the quarterly period ended June 30, 2001

   [ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
               For the transition period from ________________ to ______________
               Commission file number:  33-11059-A

                     BBJ ENVIRONMENTAL TECHNOLOGIES, INC.
--------------------------------------------------------------------------------
       (Exact name of small business issuer as specified in it charter)

          Nevada                                          13-3476854
--------------------------------------------------------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
incorporation or organization)

             6802 Citicorp Blvd., Suite 500, Tampa, Florida  33619
--------------------------------------------------------------------------------
                   (Address of principal executive offices)

                                (813) 622-8550
                        -------------------------------
                          (issuer's telephone number)

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

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

               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the issuer filed all documents and reports required to be filed
by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.     Yes [ ]     No [ ]

                    APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:  As of August 10, 2001, of
                                                   -------------------------
the issuer's Common Stock, $.001 par value, there were 18,192,578 shares
------------------------------------------------------------------------
outstanding.
------------

Transitional Small Business Disclosure Format (Check one):    Yes [ ]  No [X]

                                       1
<PAGE>

                     BBJ ENVIRONMENTAL TECHNOLOGIES, INC.
                     ------------------------------------

                                     INDEX
                                     -----


PART I.   FINANCIAL INFORMATION                                             Page
                                                                            ----

  Item 1.  Financial Statements

           Consolidated Balance Sheets as of June 30, 2001 (Unaudited)
             and December 31, 2000                                            3

           Consolidated Statements of Operations (Unaudited) for the
             Three and Six Months ended June 30, 2001 and
             June 30, 2000                                                    4

           Consolidated Statements of Cash Flows (Unaudited) for the
             Six Months ended June 30, 2001 and June 30, 2000                 5

           Notes to Consolidated Financial Statements (Unaudited)            6-7

  Item 2.  Management's Discussion and Analysis of Financial
             Condition and Results of Operations                             8-9

PART II.  OTHER INFORMATION
  Item 1.  Legal Proceedings                                                 10

  Item 2.  Changes in Securities                                             10

  Item 3.  Defaults Upon Senior Securities                                   10

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

  Item 5.  Other Information                                                 10

  Item 6.  Exhibits and Reports on Form 8-K                                  11

SIGNATURE PAGE                                                               11

                                       2
<PAGE>

              BBJ ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARY

                          CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>


                                                               (Unaudited)
                                                              June 30, 2001         Dec. 31, 2000
                                                              -------------         -------------
<S>                                                           <C>                   <C>

ASSETS

Current assets:
  Cash                                                        $     778,591         $   1,318,272
  Accounts receivable                                                51,861                28,578
  Inventory                                                          39,393                25,045
                                                              -------------         -------------

     Total current assets                                           869,845             1,371,895

Property and equipment, net                                         101,578               113,823
Security deposits                                                    14,614                14,614
                                                              -------------         -------------

                                                              $     986,037         $   1,500,332
                                                              =============         =============

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
  Accounts payable and accrued expenses                       $      53,809         $      34,142
  Current portion of capital lease obligations                       21,664                21,664
                                                              -------------         -------------

          Total current liabilities                                  75,473                55,806

Capital lease obligations, less current portion                       6,215                15,261
                                                              -------------         -------------

          Total liabilities                                          81,688                71,067
                                                              -------------         -------------

Stockholders' deficit:
  Preferred stock, $1.00 par value; 5,000,000 shares
    authorized; none issued and  outstanding                              -                     -
  Common stock, $.001 par value; 50,000,000 shares
    authorized; 18,192,578 and 17,592,578 shares issued
    and outstanding, respectively                                     18,193               17,593
  Additional paid-in capital                                       4,147,167            3,927,767
  Accumulated deficit                                          (   3,261,011)        (  2,516,095)
                                                              -------------         -------------

     Net stockholders' equity                                       904,349             1,429,265
                                                              -------------         -------------

                                                              $     986,037         $   1,500,332
                                                              =============         =============
</TABLE>

                            See accompanying notes.

                                       3
<PAGE>

              BBJ ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                 Three Months Ended June 30,      Six Months Ended June 30,
                                    2001            2000             2001          2000
                                 -----------     -----------      -----------   -----------
<S>                              <C>             <C>              <C>           <C>
Sales, net                       $    84,258     $   133,791      $   140,262   $   205,096

Cost of sales                         28,445          25,855           54,481        50,140
                                 -----------     -----------      -----------   -----------

     Gross margin                     55,813         107,936           85,781       154,956
                                 -----------     -----------      -----------   -----------

Operating Expenses:
  Sales and marketing                226,672         156,305          490,469       278,289
  General and administrative         138,571         117,025          260,789       271,257
  Research and development            47,027          31,975           79,439        51,148
                                 -----------     -----------      -----------   -----------

     Total operating expenses        412,270         305,305          830,697       600,694
                                 -----------     -----------      -----------   -----------

Net loss                         $  (356,457)  $    (197,369)        (744,916)  $  (445,738)
                                 ===========   =============      ===========   ===========

Net loss per share               $     (0.02)  $       (0.02)     $     (0.04)  $     (0.04)
                                 ===========   =============      ===========   ===========
Weighted Average Shares
  Outstanding                     17,988,000      12,250,000       17,791,000    11,720,000
                                 ===========   =============      ===========   ===========
</TABLE>



                            See accompanying notes.

                                       4
<PAGE>

              BBJ ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                                 Six Months Ended June 30,
                                                                                    2001          2000
                                                                                 ----------    ----------
<S>                                                                              <C>           <C>
Cash flows from operating activities:
Net loss                                                                         $ (744,916)   $ (445,738)
Adjustments to reconcile net loss to net cash used in operating activities:
   Depreciation                                                                      19,954        16,593
   Changes in current assets and liabilities:
     Accounts receivable                                                            (23,283)      (34,226)
     Inventory                                                                      (14,348)      (14,784)
     Accounts payable and accrued expenses                                           19,667         9,056
                                                                                 ----------    ----------
             Net cash used in operating activities                                 (742,926)     (469,099)
                                                                                 ----------    ----------

Cash flows from investing activities:
  Purchase of property and equipment                                                 (7,709)      (46,451)
  Security deposits                                                                       -       (10,196)
                                                                                 ----------    ----------
             Net cash used in investing activities                                   (7,709)      (56,647)
                                                                                 ----------    ----------

Cash flows from financing activities:
  Principal payments on bank loans and capital leases                                (9,046)      (11,847)
  Proceeds from cash advances from stockholders                                           -       129,290
  Net proceeds from issuance of preferred and common stock                          220,000       397,554
                                                                                 ----------    ----------
             Net cash provided by financing activities                              210,954       514,997
                                                                                 ----------    ----------

Net decrease in cash                                                               (539,681)      (10,749)
Cash, beginning of period                                                         1,318,272        19,189
                                                                                 ----------    ----------
Cash, end of period                                                              $  778,591    $    8,440
                                                                                 ==========    ==========
Supplemental disclosures of cash flow information:
  Interest paid                                                                  $    3,696    $    6,172
Supplemental disclosures of non-cash financing activities:
  Conversion of convertible preferred stock into 1,044,000
   shares of common stock                                                                 -       543,750
  Recapitalization transactions accounted for similar to reverse acquisition                        1,535
</TABLE>

                            See accompanying notes.

                                       5

<PAGE>

              BBJ ENVIRONMENTAL TECHNOLOGIES, INC. AND SUBSIDIARY

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 June 30, 2001
                                  (Unaudited)

NOTE A - Basis of Presentation

  The accompanying unaudited consolidated financial statements at June 30, 2001
include the accounts of BBJ Environmental Technologies, Inc. and its subsidiary,
BBJ Environmental Solutions, Inc. (acquired on June 1, 2000); and have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and reflect all
adjustments which, in the opinion of management, are necessary for a fair
presentation of financial position as of June 30, 2001 and results of operations
and cash flows for the three and six months ended June 30, 2001 and 2000.  All
adjustments are of a normal recurring nature.  The results of operations for
interim periods are not necessarily indicative of the results to be expected for
a full year.  For further information and a current discussion of the Company's
financial condition as of December 31, 2000, references should be made to the
audited consolidated financial statements and footnotes thereto included in the
Company's annual report on Form 10-KSB for the year ended December 31, 2000,
which was previously filed in March 2001.  The consolidated companies are
collectively referred to herein as "BBJ" or the "Company".  All significant
inter-company accounts and transactions have been eliminated.

NOTE B - Organization and Description of Business

  BBJ Environmental Technologies, Inc., formerly known as Omega Development,
Inc., was a development stage enterprise formed under the laws of the State of
Nevada to evaluate, structure and complete a business combination in the form of
a merger with, or acquisition of, prospects consisting of private companies,
partnerships or sole proprietorships.  The Company had no business operations
and no intention of engaging in active business prior to a business combination
with another enterprise.  Prior to the reverse acquisition, the Company was a
shell company with no material assets, liabilities or operations.

  The Company is operating through its newly acquired subsidiary, BBJ
Environmental Solutions, Inc.  BBJ Environmental Solutions was formed under the
laws of the State of Florida in August 1993. BBJ Environmental Solutions
develops, manufactures, and markets products and devices that control
contamination and air pollution in heating, ventilation, air-conditioning, and
refrigeration ("HVAC/R") systems in homes, offices, health care facilities,
schools, food processing plants, and public buildings.  All references to "the
Company" include BBJ Environmental Technologies, Inc. and BBJ Environmental
Solutions, Inc. unless the context indicates otherwise.

NOTE C - Recapitalization

  On May 31, 2000, the Company's stockholders approved a reverse stock split of
one-for-three, which became effective on June 2, 2000.  Contemporaneously, the
Company issued 12,410,666 post-split shares of its common stock in exchange for
all the issued and outstanding shares of capital stock of BBJ Environmental
Solutions in a recapitalization transaction accounted for similar to a reverse
acquisition ("Recapitalization").  All share and per share amounts in this Form
10-QSB have been adjusted to give retroactive effect to the aforementioned
reverse stock split of one-for-three and the issuance of the 12,410,666 post-
split shares.  No change in per share value or authorized number of shares of
capital stock occurred as a result of the reverse stock split.  The Company was
formerly a non-operating public shell corporation with no significant assets and
was treated as the "acquired" company in the transaction, but remains the
surviving legal entity.  Accordingly, the transaction was treated as an issuance
of stock by BBJ Environmental Solutions for the net monetary assets of the
Company, accompanied by a recapitalization.

                                       6
<PAGE>

Since this transaction is in substance a recapitalization of BBJ and not a
business combination, a valuation was not performed and no goodwill was
recorded. In connection with the Recapitalization, the Company's name was
changed to BBJ Environmental Technologies, Inc.

  The assets acquired by the Company include all the assets of BBJ Environmental
Solutions, which it utilizes in its operations. These include primarily the
following: accounts receivable, inventory, furnishings, and equipment. The
nature of the business in which those assets were used by BBJ Environmental
Solutions were for the sale of its EPA registered products. The Company intends
to continue to use such accounts receivable, inventory, furnishings, and
equipment.

NOTE D - Computation of Net Loss Per Common Share

     Loss per common share is computed by dividing the net loss by the weighted
average number of common shares outstanding during the year.

                                       7
<PAGE>

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

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

  During the three and six months ended June 30, 2001, BBJ generated revenues
from product sales of $84,258 and $140,262, respectively, compared to $133,791
and $205,096 for the three and six months ended June 30, 2000, respectively.
The decreases were due primarily to the implementation of a sales and marketing
strategy to develop strategic channel partner relationships with national
companies to expand product distribution and promotion versus direct selling.
In June 2001, the Company hired a Director of Sales as well as Divisional
Managers for the residential and food industry markets to initiate this change
in the Company's sales and marketing strategy.  In addition, the current
slowdown in the economy, mild cooling season to date, and carry-over inventory
by HVAC distributors have also adversely effected the Company's revenues in
2001.

  Total operating expenses increased to $412,270 and $830,697 for the three and
six months ended June 30, 2001, respectively, from $305,305 and $600,694 for the
three and six months ended June 30, 2000, respectively. The increases were due
primarily to costs associated with the recapitalization of the Company,
development of product literature, creation of advertising and promotional
materials, consulting services and marketing and public relation expenses. For
the three and six months ended June 30, 2001, the Company incurred a net loss of
$356,457 and $744,916, respectively, compared to a net loss of $197,369 and
$445,738 for the same periods in 2000. Operating expenses are expected to
increase significantly in future periods as we develop a sales and marketing
organization and advertise our products to certain distribution channels to
increase sales in future periods.

  As a result of financing in November and December 2000, the Company began
developing last quarter its sales and marketing organization as well as its
marketing, advertising, and promotional materials.    As the Company moves
forward, management believes BBJ can fully implement its business plan by doing
the following: increase sales through the development of new sales and marketing
plan using strategic channel partners, distribute its promotional materials,
begin advertising and public relations campaign, participate in trade
shows/organization memberships, and complete current research, product
development and studies currently underway.

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

  As of June 30, 2001, the Company had net stockholders' equity of $904,349,
accumulated deficit of $3,261,011 and working capital of $794,372.  During the
six months ended June 30, 2001 and June 30, 2000, the net cash used in operating
activities was $742,926 and $469,099, respectively.  This was primarily a result
of losses incurred by the Company during those periods.  During the six months
ended June 30, 2001 and June 30, 2000, net cash used in investing activities was
$7,709 and $56,647, respectively.  During the six months ended June 30, 2001 and
June 30, 2000, net cash flows from financing activities amounted to $210,954 and
$514,997, respectively.  For the six months ended June 30, 2001, cash was
provided from the sale of capital stock through the exercise of a stock option.
During the six months ended June 30, 2000, cash was provided from the sale of
capital stock and cash advances from stockholders partially offset by payments
made to recapitalize the Company and payments on bank loans and capital leases.

     In November and December 2000, the Company received $2,103,000 in cash
through subscription agreements of our common stock from various overseas banks.
We sold 2,804,000 shares of our common stock at a cash purchase price of $.75
per share.  The investors in this private placement also received the right to
name two members of our board of directors.  In the event that our revenues for
the period November 1, 2000 through October 30, 2001 is less than $1,667,075,
the purchase price is subject to proportionate adjustment down to a minimum of
$.375 per share.  Management believes that the funds received from this
financing together with funds anticipated to be received from operations will be

                                       8
<PAGE>

sufficient to finance our liquidity and capital resource needs on a short term
and long term basis over a period of at least the next 12 months.

Certain Financing Transactions
------------------------------

  In May 2001, the Company received $225,000 through an option exercise of its
common stock.  The Company sold 600,000 shares of common stock, par value $.001
per share, at a cash purchase price of $.375 per share.  As a result of the
foregoing transactions, the Company currently has 18,192,578 shares issued and
outstanding.

                                       9
<PAGE>

                         PART  II - OTHER  INFORMATION

Item 1.  Legal Proceedings:  None
         ------------------

Item 2.  Changes in Securities:   None, except as described under certain
         ----------------------
financing transcations

Item 3.  Defaults Upon Senior Securities:  None
         -------------------------------

Item 4.  Submissions of Matters to a Vote of Security Holders:
         ----------------------------------------------------

  On May 15, 2001, the Company's stockholders, by majority consent at the annual
shareholder meeting, approved (a) the election of BBJ's appointed nominees,
namely Robert G. Baker, Chief Executive Officer of BBJ, Jerry V. Schinella,
President of BBJ, Michael J. Gordon, Vice President of BBJ, Frank P. Ragano,
Rebecca F. Walter, Olivier d'Auriol and Jean Caillet as directors of the Company
to serve in such capacity until their successors are elected and shall qualify;
(b) the selection of Kirkland, Russ, Murphy & Tapp as the Company's independent
auditors for the upcoming fiscal year; (c) a Restated and Amended Articles of
Incorporation to increase the authorized number of shares of Common Stock from
25,000,000 shares, $.001 par value, to 50,000,000 shares, $.001 par value; and
the filing of a certificate of restated and amended article of incorporation
with the Secretary of State of the State of Nevada; and (d) the Company's 2000
Employee Benefit and Consulting Services Compensation Plan, dated November 16,
2000, covering 8,000,000 shares of Common Stock, $.001 par value.

Item 5.  Other Information:
         -----------------

  On April 3, 2001, a Definitive Schedule 14A Proxy Statement was filed with the
SEC and subsequently proxy material was mailed on April 11, 2001 to stockholders
of record at the close of business on April 10, 2001.  The Annual Meetings of
Shareholders was held at the Radisson Hotel, Tampa at Sabal Park on May 15,
2001.

  In May 2001, the Company's Common Stock was approved for quotation of the
Company's Common Stock on the OTC Electronic Bulletin Board under the proposed
symbol "BBJE."

  On May 15, 2001, all seven members of the Board of Directors were each granted
40,000 options under the BBJ Plan eligible to purchase shares at an exercise
price of $1.25 per share.

  On May 15, 2001, the Board of Directors established a written charter for the
Audit Committee.  The Audit Committee currently consists of three directors of
the Board, a majority of whom are not employees of the Company.  The Board has
reviewed the members of the Audit Committee which currently consists of Rebecca
F. Walter, as its Chairman, and Jean Caillet and Jerry Schinella as its members
and the Board has determined a majority of the Audit Committee to be independent
as defined in Rule 4200(a)(14) of the NASD's Listing Standards.

  On June 5, 2001, BBJ Environmental Technologies filed a Registration Statement
on Form S-8 with the Securities and Exchange Commission to register the issuance
of up to 8,000,000 shares of BBJ Environmental Technologies Common Stock
pursuant to its 2000 Employee Benefit and Consulting Service Compensation Plan.

  On June 15, 2001, Robert G. Baker, Jerry V. Schinella and Michael J. Gordon
sold through private transactions 150,000 shares, 150,000 shares and 150,000
shares, respectively, at a purchase price of $1.00 per share to a private
company.

  On June 28, 2001, the option holders in BBJ Environmental Solutions, Inc.
exchanged and terminated their BBJ Environmental Solutions options totaling
1,928,744 shares and received in return

                                      10
<PAGE>

substantially the same options of BBJ Environmental Technologies, except that
the number of new options was twice the original number of options and the
expiration date was extended to May 15, 2006. The exercise price(s) remained
identical to the exercise price(s) contained in the original options of BBJ
Environmental Solutions, which range from $1.00 to $2.00. In addition, the
vesting schedule, if applicable, remained unchanged in the new options.

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

(a)      Exhibits

     Exhibit No.    Description
     -----------    -----------

         3.1        Amended and Restated Articles of Incorporation as filed with
                    the Secretary of State of the State of Nevada on June 19,
                    2001.*

         3.2        Amendment to Certification of Designation of Series C
                    Convertible Preferred Stock as filed with the Secretary of
                    State of the State of Nevada on June 20, 2001.*  Filed to
                    remove the designation of the Series C preferred stock.

         3.3        By-Laws of the Registrant (incorporated by reference to
                    Registration Statement on Form S-1, file Number 33-34200,
                    previously filed with the Commission).

         10.1       Facility lease and Amendment No.1 (incorporated by reference
                    to Form 10-KSB of the Registrant for the year ended December
                    31, 2000).

         11.1       Statement re: computation of per share earnings (See
                    Consolidated Statements of Operations and Note D in the
                    Notes to Consolidated Financial Statements).

         99.1       2000 Employee Benefit and Consulting Services Compensation
                    Plan.*

______________________
     * Filed herewith.

(b)      Reports on Form 8-K.

     No reports on Form 8-K were filed during the quarter ended June 30, 2001

                                  SIGNATURES

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


                                      BBJ ENVIRONMENTAL TECHNOLOGIES, INC.


Dated:  August 10, 2001               /s/ Robert G. Baker
                                      ------------------------------------------
                                      Robert G. Baker, Chairman and Director


                                      /s/ Jerry V. Schinella
                                      ------------------------------------------
                                      Jerry V. Schinella, President and Director

                                      11