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 March 31, 2002 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)

-------------------------------------------------------------------------------
           (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

                                           10Q-1


















                            DAINE INDUSTRIES, INC.
                            ----------------------

                             FINANCIAL STATEMENTS
                             --------------------

                                MARCH 31, 2002
                                --------------






















































                                   I N D E X





                                                                   Page
                                                                   ----

BALANCE SHEETS                                                       1


STATEMENTS OF SHAREHOLDERS' EQUITY                                   2


STATEMENTS OF OPERATIONS                                            3-4


STATEMENTS OF CASH FLOWS                                             5


NOTES TO THE FINANCIAL STATEMENTS                                   6-8






















                               DAINE INDUSTRIES, INC.
                                   BALANCE SHEETS

                                          March 31, 2002
                                           (Unaudited)       June 30,2001
                                          --------------     ------------

                                    A S S E T S
                                    -----------
CURRENT ASSETS
     Cash and Cash Equivalents              $   33,588         $   56,042
                                            ----------         ----------
     Total Current Assets                       33,588             56,042
                                            ----------         ----------

FIXED ASSETS, At Cost
     Machinery and Equipment                    31,032             31,032
     Less:  Accumulated Depreciation           (31,032)           (31,032)
                                            ----------         ----------
                                                   -0-                -0-
                                            ----------         ----------

TOTAL ASSETS                                $   33,588         $   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
                                            ----------         ----------

TOTAL 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)            (1,414,994)        (1,392,540)
                                            ----------         ----------

TOTAL SHAREHOLDERS' EQUITY                      29,088             51,542
                                            ----------         ----------

TOTAL LIABILITIES AND
     SHAREHOLDERS' EQUITY                   $   33,588         $   56,042
                                            ----------         ----------


See Notes to the Financial Statements.

                                                                   Page 1 of 8


                               DAINE INDUSTRIES, INC.
                         STATEMENTS OF SHAREHOLDERS' EQUITY
                   For The Period July 1, 2000 to March  31, 2002



                        Common Stock
                        ------------                                  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 nine
months ended
March 31, 2002                                             (22,454)   (22,454)
(Unaudited)         ---------       ---   ----------   -----------    -------

BALANCES AT
MARCH 31, 2002
(Unaudited)         1,242,374       $12   $1,444,070   $(1,414,994)   $29,088
                    =========       ===   ==========   ===========    =======






















See Notes to the Financial Statements.

                                                                   Page 2 of 8


                               DAINE INDUSTRIES, INC.
                              STATEMENTS OF OPERATIONS
                                     (Unaudited)


                                                   For The Three Months Ended
                                                           March  31,
                                                   --------------------------
                                                       2002            2001
                                                    ---------       ---------

Interest Income                                    $       87      $      809

General and Administrative Expenses                    (6,783)         (7,138)
                                                    ---------       ---------
Income (Loss) Before Income Taxes                      (6,696)         (6,329)

Income Tax Expense                                        -0-             100
                                                    ---------       ---------

NET INCOME (LOSS)                                  $   (6,696)         (6,429)
-----------------                                   =========       =========

Basic and Diluted Earnings (Loss)
  Per Share                                              (.01)           (.01)
                                                    ---------       ---------
Weighted Average Number of Shares of
  Common Stock Outstanding - Basic
  and Diluted                                       1,242,374       1,242,374
                                                    =========       =========


























See Notes to the Financial Statements.

                                                                   Page 3 of 8


                               DAINE INDUSTRIES, INC.
                              STATEMENTS OF OPERATIONS
                                    (Unaudited)


                                                    For The Nine Months Ended
                                                             March 31,
                                                    -------------------------
                                                       2002            2001
                                                    ---------       ---------

Interest Income                                     $     640       $   2,965

General and Administrative Expenses                   (22,494)        (19,296)
                                                    ---------       ---------

Income (Loss) Before Income Taxes                     (21,854)        (16,331)

Income Tax Expense                                        600             555
                                                    ---------       ---------

NET INCOME (LOSS)                                     (22,454)      $ (16,886)
-----------------                                   =========       =========

Basic and Diluted Earnings (Loss)
  Per Share                                         $    (.02)      $    (.01)
                                                    =========       =========

Weighted Average Number of Shares of
  Common Stock Outstanding - Basic
  and Diluted                                       1,242,374       1,242,374
                                                    =========       =========
























See Notes to the financial Statements.

                                                                   Page 4 of 8


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


                                                    For The Nine Months Ended
                                                             March 31,
                                                    -------------------------
                                                       2002            2001
                                                    ---------       ---------

CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)                                   $ (22,454)      $ (16,886)
  Adjustment to Reconcile Net Income to
  Net Cash Provided By (Used In)
  Operating Activities:
    Change in Assets and Liabilities:
      Increase (Decrease) in Accounts
      Payable & Accrued Expenses                          -0-          (1,500)
                                                    ---------       ---------

  Net Cash Provided By (Used In) Operating
    Activities                                        (22,454)        (18,386)

Cash and Cash Equivalents at
Beginning of Period                                    56,042          86,766
                                                    ---------       ---------

CASH AND CASH EQUIVALENTS AT
END OF PERIOD                                          33,588       $  68,380
                                                    =========       =========

Supplemental Disclosures of Cash Flow Information:

Cash Paid During the Period for:
  Interest                                          $     -0-       $     -0-
  Taxes                                             $     600       $     555



















See Notes to the financial Statements.

                                                                   Page 5 of 8


                               DAINE INDUSTRIES, INC.
                         NOTES TO THE FINANCIAL STATEMENTS
                     FOR THE NINE MONTHS ENDED MARCH 31, 2002
                                   (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 was the manufacture and assembly of electrical
            wiring devices, cord sets and sockets.  LKC's customers consisted
            of manufacturers of lamps, chandeliers, Christmas and Halloween
            illuminated decorations, novelties, point of purchase displays,
            signs, and other electrical specialties.

            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.











                                                                   Page 6 of 8


                               DAINE INDUSTRIES, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                    FOR THE NINE MONTHS ENDED MARCH 31, 2002
                                  (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 March 31, 2002 is principally due
            to state and local income taxes based upon capital.

                                                       March 31,
                                                    ---------------
                                                     2002     2001
                                                    ------   ------
            Current tax expense:
              Income tax at statutory rates         $  600   $  555
                                                    ------   ------
            Total Tax Expense                       $  600   $  555
                                                    ======   ======
            The tax effect of significant temporary differences, which
            comprise the deferred tax assets and liabilities are as follows:

                                                  March 31     June 30
                                                    2002        2001
                                                  --------    --------
            Deferred tax asset:
            Operating loss                        $ 51,000    $ 44,000
            Valuation allowance                    (51,000)    (44,000)
                                                  --------    --------
            Net deferred tax asset                $    -0-    $    -0-
                                                  ========    ========






                                                                   Page 7 of 8


                               DAINE INDUSTRIES, INC.
                         NOTES TO THE FINANCIAL STATEMENTS
                     FOR THE NINE MONTHS ENDED MARCH 31, 2002
                                   (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 $136,000 which expire between 2019 and 2021.  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 March 31, 2002 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.  Accordingly, there has been no accrual
            for a contingent liability in these financial statements.







                                                                   Page 8 of 8


                      PART I.  FINANCIAL INFORMATION
                               ---------------------


Item 1.     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 the
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.  Lite King Corp. merged with National Cabling services in
March 2001.

     During the nine months ended March 31, 2002, the Registrant's only
revenues consisted of interest income which amounted to $640.  Total expenses
amounted to $23,094, consisting of general and administrative expenses
(primarily legal and accounting fees) of $22,494, and income tax expense of
$600, resulting in a net loss of $22,454.

     For the nine months ended March 31, 2001, the Registrant had a net loss
of $16,886.  The net loss of $16,886 was the result of interest income of
$2,965, general and administrative expenses (primarily legal and accounting
expenses) of $19,296, and income tax expense of $555, resulting in a loss of
$16,886.

     At March 31, 2002, the Registrant had total assets of $33,588, consisting
of current assets of 33,588 (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 March 31, 2002, 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 March 31, 2002
amounted to $29,088 as compared with $51,541 as of June 30, 2001.

     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.










                               PART II.  OTHER INFORMATION
                                         -----------------


Item 1.     Legal Proceedings.

     The Registrant 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 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: May 1, 2002