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 December 31, 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
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(State or other jurisdiction of         (I.R.S. Employer
Incorporation or Organization)          Identification Number)

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

                          (718)318-0994
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       (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

                              10Q-1


















                      DAINE INDUSTRIES, INC.

                       FINANCIAL STATEMENTS

                        DECEMBER 31, 2001











                            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


                                      Dec. 31, 2001
                                       (Unaudited)     June 30, 2001
                                      -------------    -------------
                              A S S E T S
                              -----------

CURRENT ASSETS
  Cash and Cash Equivalents             $   40,284       $   56,042
                                         ---------        ---------
  Total Current Assets                      40,284           56,042
                                         ---------        ---------
FIXED ASSETS, At Cost
  Machinery and Equipment                   31,032           31,032
  Less:  Accumulated Depreciation          (31,032)         (31,032)
                                         ---------        ---------
                                               -0-              -0-
                                         ---------        ---------

TOTAL ASSETS                            $   40,284       $   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)           (1,408,298)      (1,392,540)
                                         ---------        ---------
TOTAL SHAREHOLDERS' EQUITY                  35,784           51,542
                                         ---------        ---------

TOTAL LIABILITIES AND
  SHAREHOLDERS' EQUITY                  $   40,284       $   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 December 31, 2001



                     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 six
months ended
Dec. 31, 2001                                        (15,758)  (15,758)
(Unaudited)     ---------   -------  ----------  -----------  --------


BALANCES AT
DEC. 31, 2001
(Unaudited)     1,242,374      $12   $1,444,070  $(1,408,298)  $35,784
                =========   =======  ==========  ===========  ========





















See Notes to the Financial Statements.

                                                         Page 2 of 8
                        DAINE INDUSTRIES, INC.
                       STATEMENTS OF OPERATIONS
                              (Unaudited)


                                      For The Three Months Ended
                                             December 31,
                                           2001       2000
                                         ----------------------

Interest Income                         $     195   $   1,075

General and Administrative Expenses       (10,145)     (4,773)
                                        ----------   ----------
Income (Loss) Before Income Taxes          (9,950)     (3,698)

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

NET INCOME (LOSS)                       $   (9,950)    (3,698)
                                        ==========   =========

Basic and Diluted Earnings (Loss)
  Per Share                                   (.01)        NIL
                                        ==========   ==========
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 Six Months Ended
                                                December 31,
                                              2001       2000
                                         -----------------------

Interest Income                          $     553   $    2,156

General and Administrative Expenses        (15,711)     (12,158)
                                        ----------   ----------
Income (Loss) Before Income Taxes          (15,158)     (10,002)

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

NET INCOME (LOSS)                          (15,758)  $  (10,457)
                                        ==========   ==========

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 4 of 8
                        DAINE INDUSTRIES, INC.
                       STATEMENTS OF CASH FLOWS
                              (Unaudited)


                                            For The Six Months Ended
                                                   December 31,
                                                 2001       2000
                                                -------    -------
CASH FLOWS FROM OPERATING ACTIVITIES
 Net Income (Loss)                             $(15,758)  $(10,457)
  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                                    (15,758)   (11,957)

Cash and Cash Equivalents at
  Beginning of Period                            56,042     86,766
                                                -------    -------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD                                    40,284   $ 74,809
                                                =======    =======

Supplemental Disclosures of Cash Flow Information:

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





















See Notes to the financial Statements.

                                                           Page 5 of 8
                        DAINE INDUSTRIES, INC.
                   NOTES TO THE FINANCIAL STATEMENTS
              FOR THE SIX MONTHS ENDED DECEMBER 31, 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 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 SIX MONTHS ENDED DECEMBER 31, 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 December 31, 2000 is principally
        due to state and local income taxes based upon capital.

                                            December 31,
                                           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:
                                   Dec 31  June 30
                                    2001     2001
                                  -------  -------
          Deferred tax asset:
            Operating loss
            carryback             $ 49,000  $ 44,000
            Valuation allowance    (49,000)  (44,000)
                                  --------  --------
          Net deferred tax asset  $    -0-  $    -0-
                                  ========  ========








                                                          Page 7 of 8
                        DAINE INDUSTRIES, INC.
                   NOTES TO THE FINANCIAL STATEMENTS
              FOR THE SIX MONTHS ENDED DECEMBER 31, 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 $113,000 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 December 31, 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.
        Accordingly, there has been no accrual for a contingent
        liability in these financial statements.




                                                          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 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.

     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 six months ended December 31, 2001, the Registrant's
only revenues consisted of interest income which amounted to $553.
Total expenses amounted to $16,311, consisting of general and
administrative expenses (primarily legal and accounting fees) of
$15,711, and income tax expense of $600, resulting in a net loss of
$15,758.

     For the six months ended December 31, 2000, the Registrant had a
net loss of $10,457.  The net loss of $10,457 was the result of
interest income of $2,156, general and administrative expenses
(primarily legal and accounting expenses) of $12,158, and income tax
expense of $455, resulting in a loss of $10,457.

     At December 31, 2001, the Registrant had total assets of $40,284,
consisting of current assets of 40,284 (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 December 31, 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 December
31, 2001 amounted to $35,784 as compared with $51,742 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 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: February 1, 2002