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, 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

                            SEPTEMBER 30, 2002















































                               I N D E X





                                                        Page


BALANCE SHEETS                                           1


STATEMENTS OF SHAREHOLDERS' EQUITY                       2


STATEMENTS OF OPERATIONS                                 3


STATEMENTS OF CASH FLOWS                                 4


NOTES TO THE FINANCIAL STATEMENTS                       5-7




















                          DAINE INDUSTRIES, INC.
                              BALANCE SHEETS

                                              Sept. 30, 2002    June 30,
                                               (Unaudited)        2002
                                              --------------   ----------
                               A S S E T S

CURRENT ASSETS
  Cash and Cash Equivalents                     $   23,816     $   28,936
                                                ----------     ----------
  Total Current Assets                              23,816         28,936
                                                ----------     ----------

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

TOTAL ASSETS                                    $   23,816     $   28,936
                                                ==========     ==========


    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)                   (1,424,766)    (1,419,646)
                                                ----------     ----------

TOTAL SHAREHOLDERS' EQUITY                          19,316         24,436
                                                ----------     ----------

TOTAL LIABILITIES AND
     SHAREHOLDERS' EQUITY                       $   23,816     $   28,936
                                                ==========     ==========


See notes to financial statements.
                                                               Page 1 of 7


                          DAINE INDUSTRIES, INC.
                   STATEMENTS OF SHAREHOLDERS' EQUITY
            For The Period July 1, 2001 to September 30, 2002



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


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


Net Income (Loss)
for the year
ended June 30,
2002                                                  (27,106)    (27,106)
                  ---------   ----   ----------   -----------    --------

BALANCES AT
JUNE 30, 2002     1,242,374     12    1,444,070    (1,419,646)     24,436


Net Income (Loss)
for the three
months ended
Sept. 30, 2002
(Unaudited)                                            (5,120)     (5,120)
                  ---------   ----   ----------   -----------    --------

BALANCES AT
SEPT. 30, 2001
(UNAUDITED)       1,242,374   $ 12   $1,444,070   $(1,424,766)   $ 19,316
                  =========   ====   ==========   ===========    ========










See notes to financial statements.
                                                               Page 2 of 7


                         DAINE INDUSTRIES, INC.
                        STATEMENTS OF OPERATIONS
                              (Unaudited)



                                             For The Three Months Ended
                                                      Sept. 30,
                                             --------------------------
                                                  2002         2001
                                               ----------   ----------

Interest Income                                $       61   $      358

General and Administrative Expenses                (4,581)      (5,566)
                                               ----------   ----------

Income (Loss) Before Income Taxes                  (4,520)      (5,208)

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

NET INCOME (LOSS)                              $   (5,120)  $   (5,808)
                                               ----------   ----------
Earnings (Loss) Per Share - Basic
  and Diluted                                         NIL          NIL
                                               ==========   ==========
Weighted Average Number of
 Common Stock Outstanding - Basic
  and Diluted                                   1,242,374    1,242,374
                                               ==========   ==========

















See notes to financial statements.
                                                               Page 3 of 7


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


                                             For The Three Months Ended
                                                      Sept. 30,
                                             --------------------------
                                                  2002         2001
                                               ----------   ----------
CASH FLOWS FROM OPERATING ACTIVITIES
  Net Income (Loss)                            $   (5,120)  $   (5,808)
                                               ----------   ----------

Net Cash Provided By (Used In)
    Operations Activities                          (5,120)      (5,808)


Cash and Cash Equivalents at
    Beginning of Period                            28,936       56,042
                                               ----------   ----------

CASH AND CASH EQUIVALENTS AT
END OF PERIOD                                  $   23,816   $   50,234
                                               ----------   ----------

Supplemental Disclosures of Cash Flow
  Information:

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


















See notes to financial statements.
                                                               Page 4 of 7


                           DAINE INDUSTRIES, INC.
                     NOTES TO THE FINANCIAL STATEMENTS
              FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002
                                (Unaudited)

NOTE 1:  ORGANIZATION AND NATURE OF OPERATIONS

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

         On February 26, 1990, Daine 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,
         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.  Daine
         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.

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 U.S.
         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 5 of 7


                         DAINE INDUSTRIES, INC.
                    NOTES TO THE FINANCIAL STATEMENTS
              FOR THE THREE MONTHS ENDED SEPTEMBER 30, 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 September 30, 2002 and 2001 is
         principally due to state and local income taxes based upon
         capital.  Deferred tax liabilities relate to depreciation timing
         differences.
                                               September 30,
                                             2002        2001
                                            ------      ------
         Current tax expense
           Income tax at statutory rates    $  600      $  600
                                            ------      ------
         Total Tax Expense                  $  600      $  600
                                            ======      ======

         The tax effect of significant temporary differences, which
         comprise the deferred tax assets and liabilities are as follows:

                                           Sept. 30,    June 30,
                                             2002         2002
                                           ---------    --------
         Deferred tax asset:
           Operating loss carryback        $ 53,700     $ 52,200
           Valuation allowance              (53,700)     (52,200)
                                           --------     --------
         Net deferred tax asset            $    -0-     $    -0-
                                           ========     ========

                                                               Page 6 of 7


                            DAINE INDUSTRIES, INC.
                     NOTES TO THE FINANCIAL STATEMENTS
              FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002
                                 (Unaudited)
                                 (Continued)

         The Company has net operating loss (NOL) carryforwards for income
         tax purposes of approximately $145,100.  This loss is allowed to
         be offset against future income until the year 2022 when the
         NOL's will expire.  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, 2002 through September 30, 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 7 of 7


                      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 three months ended September 30, 2002, the Registrant's
only revenues consisted of interest income which amounted to $61.  Total
expenses (excluding income tax expense) amounted to $4,581, consisting of
general and administrative expenses (primarily legal and accounting fees).
Income tax expense amounted to $600. The two expense items offset by
interest income resulted in a net loss of $5,120.

     For the three months ended September 30, 2001, the Registrant had a
net loss of $5,808.  The net loss of $5,808 was the result of interest
income of $358, general and administrative expenses (primarily legal and
accounting expenses) of $5,566, and income tax expense of $600, resulting
in a loss of $5,808.

     At September 30, 2002, the Registrant had total assets of $23,816,
consisting of current assets of 23,816 (cash and cash equivalents), and
fixed assets of $-0-.  At June 30, 2002, the Registrant had total assets
of $28,936, consisting of cash and cash equivalents (current assets) of
$28,936 and fixed assets of $-0-.

     At September 30, 2002, the Registrant's total liabilities consisted
of accounts payable and accrued expenses of $4,500.  At June 30, 2002
total liabilities amounted to $4,500.  Shareholders equity at September
30, 2002 amounted to $19,316 as compared with $24,436 as of June 30, 2002.

     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: October 18, 2002