SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                            FORM 10-Q
(Mark One)
/X/ Quarterly report pursuant to Section 13 or 15(d) of the
Securities Act of 1934

For the quarterly period ended September 30, 1999 or

/ / Transition report pursuant to Section 13 or 15(d) of the
Securities Act of 1934

For the transition period from               to

Commission file number 0-17330

                     DAINE INDUSTRIES, INC.

     (Exact Name of Registrant as Specified in its Charter)

Delaware                                11-2881685

(State or other jurisdiction of         (I.R.S. Employer
Incorporation or Organization)            Identification Number)

          240 Clarkson Avenue  Brooklyn, New York 11226

(Address of Principal Executive Office)           (Zip Code)

                          (718)469-3132

      (Registrant's Telephone Number, Including 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 and Exchange Act of 1934 during the preceding twelve
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 ninety days.
Yes / X /  No /  /

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

     Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Section 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes /  /   No /  /

              APPLICABLE ONLY TO CORPORATE ISSUERS

     Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.  248,461,935

                              10Q-1


















                     DAINE INDUSTRIES, INC.

                      FINANCIAL STATEMENTS

                       SEPTEMBER 30, 1999









                            I N D E X





                                                            Page


REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT             1


BALANCE SHEET                                                 2


STATEMENTS OF SHAREHOLDERS' EQUITY                            3


STATEMENTS OF OPERATIONS                                      4


STATEMENTS OF CASH FLOWS                                      5


NOTES TO THE FINANCIAL STATEMENTS                            6-9














                   ACCOUNTANTS' REVIEW REPORT


To the Board of Directors and Shareholders
DAINE INDUSTRIES, INC.
Brooklyn, New York  11226

We have reviewed the accompanying balance sheet of DAINE INDUSTRIES,
INC. as of September 30, 1999 and the related statements of operations,
shareholders' equity and cash flows for the three month periods ended
September 31, 1999 and 1998, in accordance with standards established by
the American Institute of Certified Public Accountants.  All information
included in these financial statements is the representation of
management of DAINE INDUSTRIES, INC.

A review of interim financial information consists principally of
obtaining an understanding of the system for the preparation of interim
financial information, applying analytical review procedures to
financial data, and making inquiries of persons responsible for
financial and accounting matters.  It is substantially less in scope
than an examination in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole.  Accordingly, we do
not express such an opinion.

Based on our review, we are not aware of any material modifications that
should be made to the financial statements for them to be in conformity
with generally accepted accounting principles.

We have previously audited, in accordance with generally accepted
auditing standards, the balance sheet as of June 30, 1999, and the
related consolidated statements of operations, shareholders' equity and
cash flows for the year then ended (not presented herein); and in our
report dated August 6, 1999, we expressed an unqualified opinion on
those consolidated financial statements.  In our opinion, the
information set forth in the accompanying consolidated balance sheet as
of June 30, 1999 is fairly stated in all material respects in relation
to the consolidated balance sheet from which it has been derived.



                                   GREENBERG & COMPANY LLC

Springfield, New Jersey
October 29, 1999


                                                    Page 1 of 9
                         DAINE INDUSTRIES, INC.
                             BALANCE SHEET


                                      Sept. 30, 1999
                                       (Unaudited)     June 30, 1999

                              A S S E T S

CURRENT ASSETS
  Cash and Cash Equivalents             $  104,981       $  111,126
  Total Current Assets                     104,981          111,126

FIXED ASSETS, At Cost
  Machinery and Equipment                   31,032           31,032
  Less:  Accumulated Depreciation          (23,700)         (22,370)
                                             7,332            8,662


TOTAL ASSETS                            $  112,313       $  119,788


  L I A B I L I T I E S  A N D  S H A R E H O L D E R S'  E Q U I T Y


CURRENT LIABILITIES
  Accounts Payable & Accrued Expenses   $    6,500       $    6,500
  Total Current Liabilities                  6,500            6,500

TOTAL LIABILITIES                            6,500            6,500

SHAREHOLDERS' EQUITY
  Common Stock (Par Value
    $.00001) 350,000,000 shares
    authorized, 248,461,935
    shares issued and outstanding            2,485            2,485
  Paid-In Capital                        1,441,597        1,441,597
  Retained Earnings (Deficit)           (1,338,269)      (1,330,794)

TOTAL SHAREHOLDERS' EQUITY                 105,813          113,288


TOTAL LIABILITIES AND
  SHAREHOLDERS' EQUITY                  $  112,313       $  119,788









See Accountants' Review Report and notes to the financial statements.


                                                         Page 2 of 9

                       DAINE INDUSTRIES, INC.
                 STATEMENTS OF SHAREHOLDERS' EQUITY
           For The Period July 1, 1998 to September 30, 1999



                                                                   Total
                     Number     $.00001                 Retained   Share-
                       of         Par      Paid-In      Earnings   holders'
                     Shares      Value     Capital      (Deficit)  Equity

BALANCES AT
JULY 1, 1998      248,461,935   $2,485    $1,441,594  $   134,520  $1,578,602

Net Income(Loss)
for the Year Ended
June 30, 1999                                             (97,486)    (97,486)

Lite King Corp
spinoff to Daine
stockholders                                           (1,367,828) (1,367,828)

BALANCES AT
JUNE 30, 1999
(Audited)         248,461,935    2,485     1,441,594   (1,330,794)    113,288

Net Income (Loss)
for the three
months ended
Sept. 30, 1999                                             (7,475)     (7,475)


BALANCES AT
SEPT. 30, 1999
(Unaudited)       248,461,935   $2,485    $1,441,597  $(1,338,269) $  105,813


















See Accountants' Review Report and notes to the financial statements.


                                                                   Page 3 of 9
                        DAINE INDUSTRIES, INC.
                       STATEMENTS OF OPERATIONS
                              (Unaudited)


                                      For The Three Months Ended
                                             September 30,
                                          1999          1998


Interest Income                          $ 1,059      $ 1,765

General and Administrative Expenses       (6,703)      (5,025)

Depreciation and Amortization Expense     (1,330)      (1,330)

Income (Loss) Before Income Taxes         (6,974)      (4,590)

Income Tax Expense (Benefit)                 501        1,309

Income (Loss) from Continuing
  Operations                              (7,475)      (5,899)

Spun Off Operations
  Income (Loss) from operation of
  Lite King Corp subsidiary (net of
  applicable income tax expense of
  $28,198)                                   -0-       66,483


NET INCOME (LOSS)                        $(7,475)     $60,584


Basic and Diluted Earnings (Loss)
  Per Share                                NIL          NIL

Weighted Average Number of
  Shares Outstanding                  248,461,935  248,461,935















See Accountants' Review Report and notes to the financial statements.


                                                    Page 4 of 9
                        DAINE INDUSTRIES, INC.
                       STATEMENTS OF CASH FLOWS
                              (Unaudited)


                                           For The Three Months Ended
                                                   September 30,
                                                 1999       1998

CASH FLOWS FROM OPERATING ACTIVITIES
 Net Income (Loss)                             $ (7,475)  $ 60,584
  Adjustment to Reconcile Net Income to
  Net Cash Provided By (Used In)
  Operating Activities:
   Depreciation and Amortization Expense          1,330     10,945
   Change in Assets and Liabilities:
    Decrease (Increase) in Accounts
      Receivable                                    -0-   (232,476)
    Decrease (Increase) in Inventory                -0-     45,192
    Decrease (Increase) in Prepaid Expenses         -0-       (416)
    Increase (Decrease) in Accounts Payable
     & Accrued Expenses                             -0-     51,994
    Increase (Decrease) in Income Tax Payable       -0-     28,197

 Net Cash Provided By (Used In) Operating
  Activities                                     (6,145)   (35,980)

Cash and Cash Equivalents at
  Beginning of Period                           111,126    750,874

CASH AND CASH EQUIVALENTS AT
END OF PERIOD                                  $104,981   $714,894


Supplemental Disclosures of Cash Flow Information:

  Cash Paid During the Period for:
     Interest                                  $    -0-   $    -0-
     Taxes                                     $    501   $  1,309














See Accountants' Review Report and notes to the financial statements.


                                                      Page 5 of 9

                     DAINE INDUSTRIES, INC.
                NOTES TO THE FINANCIAL STATEMENTS
          FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
                           (Unaudited)


NOTE 1:  ORGANIZATION AND NATURE OF OPERATIONS

         Daine Industries, Inc. (Daine) is a Delaware corporation.
         Daine owned 100% of the stock of Lite King Corp. (LKC) a New
         York corporation through November 19, 1998.  Daine's principal
         purpose is to acquire and merge with an operating company.
         LKC's principal business is the manufacture and assembly of
         electrical wiring devices, cord sets and sockets.  LKC's
         customers consist of manufacturers of lamps, chandeliers,
         Christmas and Halloween illuminated decorations, novelties,
         point of purchase displays, signs, and other electrical
         specialties.  The customers are located throughout North
         America.

NOTE 2:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         BASIS OF PRESENTATION

         The accounts of the Company and its consolidated 100% owned
         subsidiary, Lite King Corporation, are included in the
         consolidated financial statements through March 31, 1999.  LKC
         incurred a loss of $36,841 through March 31, 1999.  (See
         spinoff)  All significant intercompany balances and
         transactions have been eliminated.

         CASH AND CASH EQUIVALENTS

         Cash equivalents consist of highly liquid, short-term
         investments with maturities of 90 days or less.  The carrying
         amount reported in the accompanying balance sheets approximates
         fair value.

         PROPERTY AND EQUIPMENT

         Renewals and betterments are capitalized; maintenance and
         repairs are expensed as incurred.

         Depreciation is calculated using the straight line method over
         the asset's estimated useful life, which generally approximates
         10 years.

         REVENUE RECOGNITION POLICY

         The company recognizes sales, for both financial statement
         purposes and for tax purposes, when the products are shipped to
         customers.




                                                       Page 6 of 9
                     DAINE INDUSTRIES, INC.
                NOTES TO THE FINANCIAL STATEMENTS
          FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
                       (Unaudited)
                       (Continued)


         ESTIMATES IN FINANCIAL STATEMENTS

         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 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.

         INCOME TAXES

         The Company accounts for income taxes in accordance with
         Statement of Financial Accounting Standards ("SFAS") No. 109,
         "Accounting for Income Taxes."  SFAS 109 has as its basic
         objective the recognition of current and deferred income tax
         assets and liabilities based upon all events that have been
         recognized in the financial statements as measured by the
         provisions of the enacted tax laws.

         Valuation allowances are established when necessary to reduce
         deferred tax assets to the estimated amount to be realized.
         Income tax expense represents the tax payable for the current
         period and the change during the period in the deferred tax
         assets and liabilities.

         SPINOFF

         In April of 1999, Daine Industries Inc. distributed all
         2,484,620 issued and outstanding shares of Lite King Corp. to
         the shareholders of Daine Industries Inc. on a pro rata basis.
         Daine did not recognize any gain or loss on the distribution
         and also relies on Internal Revenue Code section 355 to treat
         the distribution as a nontaxable stock dividend to Daine's
         shareholders.

         The following unaudited financial information relating to Lite
         King Corp is provided pursuant to APB 30 (the amounts provided
         for the year ended June 30, 1999 only included the operations
         of Lite King through March 31, 1999).

                              For the Three Months Ended
                                  September 30, 1999

          Sales                         $759,850
          Interest income                  5,092
          Depreciation expense             9,615


                                                       Page 7 of 9
DAINE INDUSTRIES, INC.
                NOTES TO THE FINANCIAL STATEMENTS
          FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
(Unaudited)
(Continued)


NOTE 3:   INCOME TAXES

          Income taxes are accrued at the statutory U.S. and state
          income tax rates.

                                                September 30,
                                               1999      1998
          Current tax expense:
          Income tax at statutory rates      $  501    $ 1,309

          Total Tax Expense                  $  501    $ 1,309

          The tax effect of significant temporary differences, which
          comprise the deferred tax assets and liabilities are as
          follows:
                                             9/30/99   6/30/99
          Deferred tax asset:
           Operating loss carryback          $22,360   $20,060
           Valuatin allowance                (22,360)  (20,060)
          Net deferred tax asset             $   -0-   $   -0-

          During the year ended June 30, 1999, Daine distributed the
          stock of its subsidiary Lite King to Daine shareholders in a
          tax free spinoff.  Therefore, Daine will not be filing a
          consolidated tax return with Lite King for the year ended June
          30, 1999 and the loss that Daine has generated for that year
          of approximately $59,000 must be carried forward for tax
          purposes until 2019.  The loss of $7,500 for the three months
          ended September 30, 1999 generates a tax benefit of
          approximately $2,300 and expires in 2020.  The tax benefits
          associated with the losses have been fully reserved in the
          valuation allowance due to Daine's lack of operating
          profitability.

NOTE 4:   POSTRETIREMENT EMPLOYEE BENEFITS

          The company does not have a policy to cover employees for any
          health care or other welfare benefits that are incurred after
          employment (postretirement).  Therefore, no provision is
          required under SFAS's 106 or 112.









                                                       Page 8 of 9

DAINE INDUSTRIES, INC.
                NOTES TO THE FINANCIAL STATEMENTS
          FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
                              (Unaudited)
                              (Continued)


NOTE 5:   INTERIM FINANCIAL REPORTING

          The unaudited financial statements of the company for the
          period July 1, 1999 to September 30, 1999 have been prepared
          by management from the books and records of the company, and
          reflect, in the opinion of management, all adjustments
          necessary for a fair presentation of the financial position
          and operations of the company as of the period indicated
          herein, and are of a normal recurring nature.








































                                                   Page 9 of 9

Part 1.  Financial Information


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

     Daine Industries, Inc. ("The Registrant") was incorporated on
September 24, 1987 and is currently seeking to acquire an operating
business.  From February 1990 until November 19, 1998 the Registrant
operated business of Lite King Corp. and currently is a public vehicle
to acquire an operating business.

     On February 26, 1990, the Registrant acquired substantially all of
the assets (with the exception of the cash) and the business of Lite
King Corporation ("Lite King"), a manufacturer and assembler of wiring
devices, cord sets and sockets.  On November 19, 1998, the Registrant
filed a Form 10-SB to spin-off Lite King Corp's shares of common stock
to its shareholders on a pro rata basis.  The Registrant owned all of
the 2,484,620 outstanding shares of Lite King which was distributed to
its shareholders as of November 30, 1998 on the basis of one share of
Lite King for each 100 shares of Daine held.  The distribution of stock
certificates of Lite King was made in May 1999.

     Management of the Registrant believe the two companies as separate
entities may create additional value for the shareholders.  There is no
assurance of any trading market developing.  Management will attempt to
use the Registrant as a "shell" vehicle to acquire an operating
business.

     During the three months ended September 30, 1999, the Registrant's
only revenues consisted of interest income which amounted to $1,059.
Total expenses amounted to $7,475, consisting of general and
administrative expenses (primarily legal and accounting fees) of $6,703,
depreciation and amortization expense of $1,330 and income tax expense
of $501.  For the quarter ended September 30, 1999, the Registrant had
an operating loss from continuing operations of $7,475.  For the quarter
ended September 30, 1998, the Registrant had net income of $60,584 which
was generated from the operations of Lite King Corp., a former wholly
owned subsidiary of the Registrant which was spun off to the
Registrant's shareholders during 1999.

     At September 30, 1999, the Registrant had total assets of $112,313,
consisting of current assets of $104,981 (cash and cash equivalents),
and fixed assets of $7,332.  At June 30, 1999, the Registrant had total
assets of $119,788, consisting of cash and cash equivalents (current
assets) of $111,126 and fixed assets of $8,662.

     At September 30, 1999, the Registrant's total liabilities consisted
of accounts payables and accrued expenses of $6,500 (the same amount at
June 30, 1999).  Shareholders equity at September 30, 1999 amounted to
$105,813 as compared with $113,288 as of June 30, 1999.

     The Registrant is actively seeking candidates for either
acquisition or merger.  No assurance can be given that such acquisition
or merger will occur in the near future.



Year 2000 Compliance

     The Registrant has evaluated the impact of the Year 2000 issue on
the business and does not expect to incur significant costs with Year
2000 compliance.  The Registrant believes that all software and hardware
requirements to enable it to cope with the Year 2000 issue have been or
are being currently implemented.  However, there can be no assurance
that unanticipated costs may arise in implementing these requirements.


                     PART II.  OTHER INFORMATION:


Item 1.  Legal Proceedings.  None.

Item 2.  Changes in Securities.  None.

Item 3.  Defaults upon Senior Securities.  None.

Item 4.  Submission of Matters To A Vote of Security Holders.  None.

Item 5.  Other Materially Important Events.  None.

Item 6.  Exhibits and Reports on Form 8-K.  None.



                           SIGNATURES


     Pursuant to the requirements of Section 13 or 15(d) of the
Securities Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.


                   By:  Arthur Seidenfeld
                            President
                    Dated:  November 9, 1999