U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                  FORM 10 - QSB


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

                For the Quarterly Period Ended November 30, 2001

                         Commission file number 0-10783


                             BSD MEDICAL CORPORATION


          DELAWARE                                       75-1590407
     -----------------------                ------------------------------------
     (State of Incorporation)               (IRS Employer Identification Number)

           2188 West 2200 South
           Salt Lake City, Utah                                    84119
    --------------------------------------                      -------------
   (Address of principal executive offices)                      (Zip Code)

Registrant's telephone number:  (801) 972-5555


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 for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes [X] No [ ]


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


        Class                               Outstanding as of  November 30, 2001
 -----------------------------              ------------------------------------
  Common stock, $.01 Par Value                          17,630,136



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

<PAGE>

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements
<TABLE>
<CAPTION>

                             BSD MEDICAL CORPORATION
                             Condensed Balance Sheet
                                   (Unaudited)
                              Assets                                            November 30,
                              ------
                                                                                    2001
                                                                             -------------------
<S>                                                                         <C>

Current assets:
    Cash and cash equivalents                                               $          467,294
    Current portion of restricted certificate of deposit                                16,687
    Receivables                                                                        254,531
    Related party receivables                                                          450,604
    Inventories                                                                        741,174
    Prepaid Expenses                                                                    14,578
    Deposits                                                                             7,968
                                                                             -------------------
           Total current assets                                                      1,952,836
                                                                             -------------------

Long-term portion of certificate of deposit                                             56,917
Property and equipment, net                                                            143,184
Patents, net                                                                            22,221
                                                                             -------------------
                                                                            $        2,175,158
                                                                             -------------------

               Liabilities and Stockholders' Equity
Current liabilities:
    Accounts payable                                                        $           94,908
    Accrued expenses                                                                   905,873
    Current portion of deferred revenue                                                 66,292
    Current portion on deferred gain on sale - leaseback                                61,337
                                                                             -------------------

           Total current liabilities                                                 1,128,410
                                                                             -------------------

Long term liabilities
    Deferred revenue                                                                   126,301
                                                                             -------------------

           Total liabilities                                                $        1,254,711
                                                                             -------------------

Stockholders' equity:
    Common stock, $.01 par value; authorized 20,000,000 shares;
      issued and outstanding 17,630,136, shares                                        176,302
    Additional paid-in capital                                                      20,834,737
    Deferred compensation                                                              (26,274)
    Accumulated deficit                                                            (20,064,084)
    Common stock in treasury 13,412 shares, at cost                                       (234)
                                                                             -------------------

           Net stockholders' equity                                                    920,447
                                                                             -------------------

                                                                            $        2,175,158
                                                                             ===================
</TABLE>

                                     Page 2

<PAGE>


                             BSD MEDICAL CORPORATION

                       Condensed Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>


                                                                      Three Months
                                                                         Ended:
                                                             -------------------------------
                                                                November       November 30,
                                                                30, 2001           2000
                                                             --------------   --------------

<S>                                                         <C>              <C>
Product sales                                               $     268,368    $       5,079
Sales to related parties                                          205,604           46,205
Grant and license revenue                                               -           28,110
                                                             --------------   --------------

           Total revenues                                         473,972           79,394
                                                             --------------   --------------
Costs and expenses:
    Cost of product sales                                          65,738           34,267
    Cost of sales to related parties                              149,125                -
    Research and development                                      153,588          153,264
    Selling, general, and administrative                          245,767          275,733
                                                             --------------   --------------

           Total costs and expenses                               614,218          463,264
                                                             --------------   --------------

           Operating loss                                        (140,246)        (383,870)

Other income (expense):
    Interest income                                                 1,629            9,016
    Interest expense                                                    -                -
                                                             --------------   --------------

           Total other income                                       1,629            9,016
                                                             --------------   --------------
     Income tax benefit                                                 -                -
                                                             --------------   --------------
           Net loss                                         $    (138,617)   $    (374,854)

Net loss per common and common equivalent
Basic and diluted                                           $       (.01)    $       (.02)
                                                             --------------   --------------

Weighted average number of shares outstanding                  17,625,800       17,489,000
     Primary
                                                             --------------   --------------
     Diluted                                                                             -
                                                             --------------   --------------

</TABLE>

See accompanying notes to financial statements.

                                     Page 3
<PAGE>


                             BSD MEDICAL CORPORATION

                 Condensed Statements of Cash Flows (Unaudited)
                  Three months ended November 30, 2001 and 2000
<TABLE>
<CAPTION>


Increase (Decrease) in Cash and Cash Equivalents                                   Nov. 30,              Nov. 30,
------------------------------------------------                                     2001                   2000
                                                                                 --------------------------------
<S>                                                                             <C>              <C>
Cash flows from operating activities:
    Net loss                                                                    $   (138,617)    $   (374,854)
    Adjustments to reconcile net loss to net cash provided by operating
      activities:
       Depreciation and amortization                                                  11,631            7,183
       Deferred gain on sale of building                                             (15,354)         (15,354)
       Stock compensation expense                                                     12,000           12,001
       Deferred compensation                                                           8,637            3,800
       (Increase) decrease in:
           Restricted certificate of deposit                                          15,313         (100,000)
           Receivables                                                                31,566          154,560
           Inventories                                                               (13,539)        (160,645)
           Prepaid expenses and deposits                                              12,558           17,927
       Increase (decrease) in:
           Accounts payable                                                          (18,834)         (16,464)
           Accrued expenses                                                          183,379          160,009
           Deferred Income                                                           (19,558)         184,632
                                                                                 ------------------------------
              Net cash by provided by operating activities                            69,182         (127,205)
                                                                                 ------------------------------

Cash flows from investing activities:
    Purchase of property and equipment                                                (2,344)         (24,649)
    Purchase of patent license                                                       (10,000)               -
                                                                                 ------------------------------
              Net cash used in investing activities                                  (12,344)         (24,649)

Cash flows from financing activities:
    Proceeds from issuance of common stock                                             2,426                -
                                                                                 ------------------------------
              Net cash provided by financing activities                                2,426                -
                                                                                 ------------------------------
Decrease in cash and cash equivalents                                           $      59,264         (151,854)
Cash and cash equivalents, beginning of period                                        408,030          731,494
                                                                                 --------------- --------------
Cash and cash equivalents, end of period                                        $     467,294    $     579,640
                                                                                 ==============================
</TABLE>

Supplemental Disclosure of Cash Flow Information


The Company paid no cash for interest or taxes during the period ended  November
30, 2001 and 2000.

                                     Page 4
<PAGE>

                             BSD MEDICAL CORPORATION
                     Notes to Condensed Financial Statements

Note 1.    Basis of Presentation

         The  Condensed  Balance Sheet as of November 30, 2001 and the Condensed
Statements of Operations and the Condensed Statements of Cash Flow for the three
months ended  November 30, 2001, and November 30, 2000 have been prepared by the
Company  without  audit.  In the opinion of management,  all  adjustments to the
books and accounts (which include only normal recurring  adjustments)  necessary
to present fairly the financial position,  results of operations, and changes in
financial position of the Company as of November 30, 2001, have been made.

         Certain  information  and  footnote  disclosures  normally  included in
financial  statements  prepared in accordance with generally accepted accounting
principles  have been  condensed or omitted.  The results of operations  for the
period ended November 30, 2001, are not necessarily indicative of the results to
be expected for the full year.

Note 2.    Net Loss Per Common Share

         Net income (loss) per common share for the quarters  ended November 30,
2001, and November 30, 2000, are based on the weighted  average number of shares
outstanding during the respective periods.  Diluted earnings per share are based
upon the weighted average share per common stock  equivalent.  When common stock
equivalents are anti dilutive they are not included.

Note 3.    Related Party Transactions

         During the  periods  ended  November  30, 2001 and 2000 the Company had
sales to an  unconsolidated  affiliate and an entity controlled by a significant
stockholder of approximately $205,604 and $46,205, respectively.

         At November 30, 2001, accrued expenses includes  approximately $488,000
consisting  of deposits on orders placed by an  unconsolidated  affiliate and an
entity controlled by a significant stockholder.

         At  November  30,  2001,  accounts  receivable  includes  approximately
$450,604 due from an  unconsolidated  affiliate  and an entity  controlled  by a
significant stockholder.


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

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

         Total  assets   increased  from  $2,161,079  at  August  31,  2001,  to
$2,175,158  at November 30, 2001, an increase of $14,079,  or .65%.  Receivables
decreased  by $31,566,  a decrease  of 4.28%,  due to normal  periodic  business
fluctuations while total inventories  increased by $13,539, an increase of 1.86%


                                     Page 5
<PAGE>

to purchase materials for future shipments. The current cash position,  accounts
receivables  and funds from  operations  were  sufficient  to meet the Company's
operating cash requirement.

         Total current  liabilities  increased by $159,538 an increase of 16.5%.
The increase was primarily due to increases in customer deposits on orders,  and
accrued expenses.


<PAGE>


     Fluctuations in Operating Results
     ---------------------------------

         The Company's sales and operating results historically have varied (and
will be likely to continue to vary) on a  quarter-to-quarter  and a year to year
basis due to  cyclical  needs  for  research  equipment  as the sales are as yet
principally  limited to research  centers  involved in clinical  trials with the
BSD-2000,  the relatively large per unit sales prices of the Company's products;
the typical  fluctuations in the mix of orders for different  systems and system
configurations;  and other factors.  For these and other reasons, the results of
operations  for a particular  fiscal period may not be indicative of results for
any other period.


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

Three Months ended November 30, 2001

         Sales  increased  from $79,394 in the three  months ended  November 30,
2000,  to $473,972 in the three months ended  November 30, 2001,  an increase of
$394,578  or 497.00%,  primarily  due to  increased  domestic  sales,  including
increased sales to the Company's unconsolidated subsidiary. Selling, General and
Administrative  Expenses  decreased  from  $275,733  in the three  months  ended
November  30, 2000,  to $245,767 in the three  months ended  November 30, 2001 a
decrease  of  $29,966 or  12.19%,  due to  changes  in the cycle of  promotional
expenses. Total Costs and Expenses increased by $150,954, an increase of 32.58%,
primarily  due to  increased  cost  of  goods  sold  as a  result  of  increased
manufacturing costs. The Net Loss for the three months ending November 30, 2001,
was  $138,617,  as  compared  with a Net Loss of $374,854  for the three  months
ending November 30, 2000.

         Research and  Development  Expenses  were $153,588 for the three months
ended  November  30,  2001,  as compared to $153,264 in the three  months  ended
November 30, 2000.

                                     Page 6
<PAGE>


         FORWARD  OUTLOOK AND RISKS.  From time to time, the Company may publish
forward-looking  statements  relating to such matters as  anticipated  financial
performance,  business  prospects,   technological  development,  new  products,
research and development  activities and similar matters. The Private Securities
Litigation  Reform  Act of  1995  provides  a safe  harbor  for  forward-looking
statements.  In order to comply with the terms of the safe  harbor,  the Company
notes that a variety of factors  could cause the  Company's  actual  results and
experience  to  differ   materially  from  the  anticipated   results  or  other
expectations expressed in any of the Company's forward-looking statements.

         This  form  10-QSB  contains  and  incorporates  by  reference  certain
"forward-looking statements" within the meaning of Section 27A of the Securities
Act and Section 21E of the Exchange  Act with  respect to results of  operations
and  businesses  of the  Company.  All  statements,  other  than  statements  of
historical facts, included in this Form 10-QSB, including those regarding market
trends, the Company's financial position, business strategy, projected costs and
plans, and objectives of management for future operations,  are  forward-looking
statements.  These forward-looking statements are based on the Company's current
expectations.  Although the Company believes that the expectations  reflected in
such forward-looking  statements are reasonable,  there can be no assurance that
such expectations will prove to be correct.

         CHANGING REGULATORY  ENVIRONMENT.  The Company's business is subject to
extensive  federal,  state  and  local  regulation.   Political,   economic  and
regulatory  influences  are  subjecting  the health care  industry in the United
States to  fundamental  change.  See  "Government  Regulation"  in the Company's
fiscal 1998 10-KSB.


PART II - OTHER INFORMATION

Item 6.       Exhibits and reports on Form 8-K

(a)   Exhibits

     The following exhibit is filed as part of this report:

    Exhibit
    Number                      Description
    -------                     -----------

     27                     Financial Data Schedule.

b) Reports  on Form 8-K - During the  quarter, no reports on Form 8-K were filed
by the Company.


                                     Page 7
<PAGE>

SIGNATURE

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
BSD  Medical  Corporation,  the  registrant,  has duly  caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.


                                       BSD MEDICAL CORPORATION



Date:   January 14, 2002                   /s/ Hyrum A. Mead
     ---------------------------       ----------------------------------
                                           President




                                     Page 8