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, 2001 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)

      P.O. Box 940007, Belle Harbor, New York 11694
-------------------------------------------------------------
(Address of Principal Executive Office)             (Zip Code)

                      (718)318-0994
-------------------------------------------------------------
      (Registrant's Telephone Number, Including Area Code)

         240 Clarkson Avenue, Brooklyn, New York 11226
-------------------------------------------------------------
               (Registrant's Former Address)

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.  1,242,374






















                    DAINE INDUSTRIES, INC.

                     FINANCIAL STATEMENTS

                      SEPTEMBER 30, 2001
























                         I N D E X





                                                       Page


REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT       1


BALANCE SHEETS                                          2


STATEMENTS OF SHAREHOLDERS' EQUITY                      3


STATEMENTS OF OPERATIONS                                4


STATEMENTS OF CASH FLOWS                                5


NOTES TO THE FINANCIAL STATEMENTS                      6-8










                 ACCOUNTANTS' REVIEW REPORT


To the Board of Directors and Shareholders
DAINE INDUSTRIES, INC.
Belle Harbor, New York


We have reviewed the accompanying balance sheets of DAINE
INDUSTRIES, INC. as of September 30, 2001 and the related
statements of operations, shareholders' equity and cash flows for
the three month periods ended September 30, 2001 and 2000, 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, 2001, and the
related statements of operations, shareholders? equity and cash
flows for the year then ended (not presented herein); and in our
report dated July 20, 2001, we expressed an unqualified opinion on
those financial statements.  In our opinion, the information set
forth in the accompanying balance sheet as of June 30, 2001 is
fairly stated in all material respects in relation to the balance
sheet from which it has been derived.



                                      GREENBERG & COMPANY LLC

Springfield, New Jersey
October 31, 2001

                                                  Page 1 of 8






                           DAINE INDUSTRIES, INC.
                              BALANCE SHEETS


                                     Sept. 30, 2001      June 30,
                                      (Unaudited)          2001
                                     --------------     ----------
A S S E T S

CURRENT ASSETS
Cash and Cash Equivalents              $   50,234      $   56,042
                                       ----------      ----------
      Total Current Assets                 50,234          56,042
                                       ----------      ----------
FIXED ASSETS, At Cost
Machinery and Equipment                    31,032          31,032
Less:  Accumulated Depreciation           (31,032)        (31,032)
                                       ----------      ----------
                                             -0-             -0-
                                       ----------      ----------

TOTAL ASSETS                           $   50,234      $   56,042
                                       ==========      ==========

      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    $    4,500      $    4,500
                                       ----------      ----------
      Total Current Liabilities             4,500           4,500
                                       ----------      ----------
SHAREHOLDERS' EQUITY
Common Stock (Par Value
  $.00001) 50,000,000 shares
  authorized, 1,242,374
  shares issued and outstanding                12              12
Paid-In Capital                         1,444,070       1,444,070
Retained Earnings (Deficit)            (1,398,348)     (1,392,540)
                                        ---------       ---------
TOTAL SHAREHOLDERS' EQUITY                 45,734          51,542
                                        ---------       ---------

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY                   $   50,234      $   56,042
                                       ==========      ==========




See accompanying summary of accounting policies, notes to financial
statements and independent accountants' review report.

                                                    Page 2 of 8





                     DAINE INDUSTRIES, INC.
                STATEMENTS OF SHAREHOLDERS' EQUITY
          For The Period July 1, 2000 to September 30, 2001



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

BALANCES AT
JULY 1, 2000      1,242,374      $12    $1,444,070  $(1,363,316) $ 80,766


Net Income (Loss)
for the Year Ended
June 30, 2001                                           (29,224)  (29,224)
                  ---------       --     ---------    ---------    ------

BALANCES AT
JUNE 30, 2001     1,242,374       12     1,444,070   (1,392,540)   51,542


Net Income (Loss)
for the three
months ended
Sept. 30, 2001                                           (5,808)   (5,808)
                  ---------       --     ---------    ---------    ------

BALANCES AT
SEPT. 30, 2001
(Unaudited)       1,242,374      $12    $1,444,070  $(1,398,348) $ 45,734
                  =========       ==     =========   ==========    ======















See accompanying summary of accounting policies, notes to financial
statements and independent accountants' review report.

                                                           Page 3 of 8










                         DAINE INDUSTRIES, INC.
                        STATEMENTS OF OPERATIONS
                               (Unaudited)



                                       For The Three Months Ended
                                              Sept. 30,
                                         2001                2000
                                        -----                ----

Interest Income                      $     358           $   1,081

General and Administrative Expenses     (5,566)             (7,385)
                                         -----               -----

Income (Loss) Before Income Taxes       (5,208)             (6,304)

Income Tax Expense                         600                 455
                                         -----               -----

NET INCOME (LOSS)                   $   (5,808)          $  (6,759)
                                         =====               =====
Earnings (Loss) Per Share - Basic
  and Diluted                             NIL            $   (.01)
                                         =====               =====
Weighted Average Number of
 Common Stock Outstanding              1,242,374          1,242,374
                                       =========          =========



















See accompanying summary of accounting policies, notes to financial
statements and independent accountants' review report.

                                                         Page 4 of 8





                         DAINE INDUSTRIES, INC.
                       STATEMENTS OF CASH FLOWS
                             (Unaudited)


                                               For The Three Months Ended
                                                        Sept. 30
                                                  2001           2000
                                                 -----          -----
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)                              $ (5,808)       $(6,759)
Adjustment to Reconcile Net Income
  to Net Cash Provided By (Used In)
  Operating Activities:
Change in Assets and Liabilities:
 Increase (Decrease) in Accounts
  Payable and Accrued Expenses                      -0-         (1,500)
                                                 ------         ------
Net Cash Provided By (Used In)
  Operations Activities                          (5,808)        (8,259)

Cash and Cash Equivalents at
  Beginning of Period                            56,042         86,766
                                                 ------         ------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD                                  $ 50,234       $ 78,507
                                                 ======         ======

Supplemental Disclosures of Cash Flow
  Information:

  Cash Paid During the Year for:
      Interest                               $    -0-         $   -0-
      Income Taxes                           $   600          $   455

















See accompanying summary of accounting policies, notes to financial
statements and independent accountants' review report.

                                                            Page 5 of 8







                                DAINE INDUSTRIES, INC.
                          NOTES TO THE FINANCIAL STATEMENTS
                    FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001
                                    (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 was
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.

On November 19, 1998, Daine 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.

NOTE 2:      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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, At Cost

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

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.






See accompanying independent accountants' review report.

                                                     Page 6 of 8






                        DAINE INDUSTRIES, INC.
                 NOTES TO THE FINANCIAL STATEMENTS
              FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001
                             (Unaudited)
                             (Continued)

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.

NOTE 3:      INCOME TAXES

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

Current income tax expense for September 30, 2001 is principally due
to state and local income taxes based upon capital.  Deferred tax
liabilities relate to depreciation timing differences.

                                       September 30,
                                     2001          2000
                                    -----         -----
Current tax expense
Income tax at statutory rates        $600         $455
                                    -----        -----
Total Tax Expense                    $600         $455
                                    =====        =====


The tax effect of significant temporary differences, which comprise
the deferred tax assets and liabilities are as follows:
                               Sept. 30      June 30
                                 2001         2001
                                -----        ------
  Deferred tax asset:
    Operating loss
    carryback                  $45,700      $44,000
  Valuation allowance          (45,700)     (44,700)
                               -------      -------
  Net deferred tax asset       $   -0-      $   -0-
                               =======      =======




See accompanying independent accountants' review report.

                                                     Page 7 of 8




                       DAINE INDUSTRIES, INC.
                 NOTES TO THE FINANCIAL STATEMENTS
            FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001
                            (Unaudited)
                            (Continued)

During the year ended June 30, 1999, Daine distributed the stock of
its subsidiary Lite King to Daine shareholders in a tax free spinoff.
 Daine has generated operating loss carryforwards of approximately
$96,000 which must be carried forward for tax purposes until 2020.
The tax benefits associated with these 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.

NOTE 5:      INTERIM FINANCIAL REPORTING

The unaudited financial statements of the Company for the period July
1, 2001 through September 30, 2001 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.

NOTE 6:      COMMON STOCK

On July 24, 2000 the Company effected a one (1) for two hundred (200)
reverse split of the Company?s common stock and reduced the number of
authorized shares from 350,000,000 to 50,000,000.  The effective date
of the reverse split is July 24, 2000 and all share and per share
amounts are retroactively restated to give effect for the reverse
split within these financial statements.

NOTE 7:      CONTINGENCIES

The Company as owner of a vehicle and the Company?s president, as
driver are defendants in a lawsuit in the County of Brooklyn, New
York State seeking damages of $1,100,000 as a result of an accident.
 The Company has liability insurance in the amount of $1,000,000. The
Company and its president have denied any and all liability and are
being defended by the insurance company.  The Company expects the
lawsuit to be dismissed or to be settled within the policy limits.









See accompanying independent accountants' review report.
                                                Page 8 of 8






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 pre-
reverse split 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, 2001, the Registrant's only
revenues consisted of interest income which amounted to $358.  Total expenses
amounted to $6,166, consisting of general and administrative expenses
(primarily legal and accounting fees) of $5,566 and income tax expense of
$600, resulting in a net loss of $5,808.

For the three months ended September 30, 2000, the Registrant had a net
loss of $6,759.  The net loss of $6,759 was the result of interest income of
$l,081, general and administrative expenses (primarily legal and accounting
expenses) of $7,385 resulting in a loss of $6,759.

At September 30, 2001, the Registrant had total assets of $50,234,
consisting of current assets of $50,234 (cash and cash equivalents), and fixed
assets of $-0-.  At June 30, 2001, the Registrant had total assets of $56,042,
consisting of cash and cash equivalents (current assets) of $56,042 and fixed
assets of $-0-.

At September 30, 2001, the Registrant's total liabilities consisted of
accounts payable and accrued expenses of $4,500.  At June 30, 2001 total
liabilities amounted to $4,500.  Shareholders equity at September 30, 2001
amounted to $45,734 as compared with $51,542 as of June 30, 2001.
















     The Registrant is actively seeking candidates for either acquisition or
merger.  Presently, management is in discussions for a potential merger.  No
assurance can be given that such acquisition or merger will occur in the
near future.
      PART II.  OTHER INFORMATION:


Item 1.      Legal Proceedings.

The Registrant as owner of a vehicle and the Registrant?s president, as
driver are defendants in a lawsuit in the County of Brooklyn, New York State
seeking damages of $1,100,000 as a result of an accident.  The Registrant
has liability insurance in the amount of $1,000,000.  The Registrant and its
president have denied any and all liability and are being defended by the
insurance company.  The Registrant expects the lawsuit to be dismissed or to
be settled within the policy limits.

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 7, 2001