SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


     [X]  QUARTERLY  REPORT  PURSUANT  TO SECTON 13 OR 15(d) OF THE SECURITIES
          EXCHANGE  ACT  OF  1934

     For  the  quarterly  period  ended  March  31,  2001

     [ ]  TRANSITIONAL  REPORT  UNDER  SECTION  13  OR  15(d) OF THE SECURITIES
          EXCHANGE  ACT  OF  1934  (No  Fee  Required)

                           Commission File No. 0-27210


                          Tech Electro Industries, Inc.
              ----------------------------------------------------
                 (Name of Small Business Issuer in its Charter)


                Texas                                   75-2408297
     -------------------------------              --------------------------
     (State or other jurisdiction of                 (I.R.S. Employer
      incorporation of organization)                Identification No.)

            275 N Franklin Turnpike Suite #230  Ramsey, NJ  07446
        ----------------------------------------------------------------
                     (Address of principal executive office


                                 (201) 760-9900
                          ----------------------------
                           (Issuer's telephone number)

Check  whether  the issuer has (1) filed all  reports  required by Section 12 or
15(d) of the Exchange Act during the past 12 months, and 2) been subject to such
filing requirements for the past ninety (90) days. Yes [ X ] No [ ]

As of March 31, 2001, 8,235,820 shares of Common Stock were outstanding.














                                       1
<PAGE>

THIS DOCUMENT IS PREPARED AND FILED UNDER THE REQUIREMENTS OF REGULATIONS S-B OF
THE SECURITIES AND EXCHANGE COMMISSION, EFFECTIVE JULY 31, 1992.


                                      INDEX


                                                                      Page
                                                                      ----
PART I - Financial Information

Item 1.  Financial Statements

Consolidated Balance Sheets at March 31, 2001 (unaudited)
and December 31, 2000. . . . . . . . . . . . . . . . . . . . . . . .   F-3

Consolidated Statements of Operations for the three
months ended March 31, 2001 and 2000 (unaudited) . . . . . . . . . .   F-5

Consolidated Statements of Cash Flows for the three
months ended March 31, 2001 and 2000 (unaudited) . . . . . . . . . .   F-7

Notes to Consolidated Financial Statements . . . . . . . . . . . . .   F-9

Item 2.  Management's Discussion and Analysis or Plan of Operation..    10

PART II - Other Information. . . . . . . . . . . . . . . . . . . . .    13

Item 1.  Legal Proceedings.. . . . . . . . . . . . . . . . . . . . .    13

Item 2.  Changes in Securities.. . . . . . . . . . . . . . . . . . .    13

Item 3.  Defaults Upon Senior Securities.. . . . . . . . . . . . . .    13

Item 4.  Submission of Matters to a Vote of Securities Holders.. . .    13

Item 5.  Other Information.. . . . . . . . . . . . . . . . . . . . .    14

Item 6.  Exhibits and Reports on Form 8-K. . . . . . . . . . . . . .    14

Signature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    14














                                        2

<PAGE>

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

Item  1.  Financial  Statements

                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                                  ASSETS
                                                March 31,     December 31,
                                                  2001            2000
                                              (Unaudited)
                                              ------------   --------------
CURRENT ASSETS
  Cash and cash equivalents . . . . . . . .   $    723,621   $     839,060
  Certificate of deposit. . . . . . . . . .        155,632         153,519
  Accounts and notes receivable
    trade, net of allowance for doubtful
    accounts of $179,538 (unaudited) and
    $218,763  . . . . . . . . . . . . . . .      3,576,763       4,390,700
    Notes . . . . . . . . . . . . . . . . .          3,416               -
    Other . . . . . . . . . . . . . . . . .         33,460          40,280
  Inventories, net of allowance for
    obsolescence of $338,274 (unaudited)
    and $335,274  . . . . . . . . . . . . .      2,754,656       3,303,541
  Prepaid expenses and other current assets        777,873         814,864
                                              ------------   --------------

      Total current assets. . . . . . . . .      8,025,421       9,541,964
                                              ------------   --------------
PROPERTY AND EQUIPMENT
  Facsimile and business center equipment        4,190,900       4,252,306
  Machinery and equipment . . . . . . . . .        536,661         526,628
  Furniture and fixtures  . . . . . . . . .        243,214         241,388
  Computer equipment. . . . . . . . . . . .        210,894         210,706
  Leasehold improvements. . . . . . . . . .        181,276         181,276
  Vehicles. . . . . . . . . . . . . . . . .         46,262          46,262
                                              ------------   --------------
                                                 5,409,207       5,458,566
  Less accumulated depreciation and
    amortization. . . . . . . . . . . . . .     (2,148,419)     (1,996,169)
                                              ------------   --------------
      Net property and equipment. . . . . .      3,260,788       3,462,397
                                              ------------   --------------
OTHER ASSETS
  Deferred financing costs, net . . . . . .        200,475         274,231
  Other . . . . . . . . . . . . . . . . . .          9,146          18,436
                                              ------------   --------------
      Total other assets. . . . . . . . . .        209,621         292,667
                                              ------------   --------------
TOTAL ASSETS. . . . . . . . . . . . . . . .   $ 11,495,830   $  13,297,028
                                              ============   ==============
      The accompanying footnotes are an integral part of these consolidated
                             financial statements.

                            - Continued -

                                 F-3
<PAGE>

                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS - Continued


                            LIABILITIES AND STOCKHOLDERS' EQUITY

                                               March 31,     December 31,
                                                 2001            2000
                                              (Unaudited)
                                            --------------  --------------
CURRENT LIABILITIES
  Line of credit . . . . . . . . . . . .    $   2,388,477   $   2,617,720
  Current portion of long-term debt  . .        2,845,332       2,894,990
  Accounts payable . . . . . . . . . . .        1,323,846       2,426,417
  Accrued liabilities  . . . . . . . . .          361,733         629,276
  Other current liabilities  . . . . . .            9,200           9,200
                                            --------------  --------------
      Total current liabilities. . . . .        6,928,588       8,577,603
                                            --------------  --------------

LONG-TERM DEBT, less current portion . .           60,428          89,666
                                            --------------  --------------
      Total liabilities. . . . . . . . .        6,794,426       8,667,269

STOCKHOLDERS' EQUITY
  Preferred stock - $1.00 par value;
    1,000,000 shares authorized; 120,588
    Class A issued and outstanding;
    liquidation preference of $633,087 .          120,588         120,588
  Common stock - $0.01 par value;
    50,000,000  shares  authorized;
    8,235,820  (unaudited) and 8,198,197
    shares issued and outstanding at
    March 31, 2001 and December 31, 2000,
    respectively . . . . . . . . . . . .           82,358          81,982
  Additional paid-in capital . . . . . .       14,466,237      14,457,207
  Accumulated deficit  . . . . . . . . .      (10,162,369)    (10,030,018)
                                            --------------  --------------
      Total stockholders' equity . . . .        4,506,814       4,629,759
                                            --------------  --------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $  11,495,830   $  13,297,028
                                            ==============  ==============






      The accompanying footnotes are an integral part of these consolidated
                             financial statements.



                                      F-4


<PAGE>

                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
               For the Three Months Ended March 31, 2001 and 2000
                                   (Unaudited)

                                                          2001          2000
                                                    -------------  ------------
REVENUES
  Sales  . . . . . . . . . . . . . . . . . . . .    $  5,474,789   $ 3,689,554
  Service revenue. . . . . . . . . . . . . . . .       1,394,618     1,952,505
                                                   -------------  ------------
                                                       6,869,407     5,642,059
COST OF REVENUES
  Cost of goods sold . . . . . . . . . . . . . .       4,430,733     2,892,601
  Direct servicing costs . . . . . . . . . . . .         366,683       406,462
                                                   -------------  ------------
                                                       4,797,416     3,299,063
                                                   -------------  ------------

GROSS PROFIT . . . . . . . . . . . . . . . . . .       2,071,991     2,342,996

OPERATING EXPENSES
  Selling, general and administrative. . . . . .       1,660,819     1,772,708
  Depreciation and amortization of property
     and equipment . . . . . . . . . . . . . . .         212,885       260,523
                                                    ------------  ------------
                                                       1,873,704     2,033,231
                                                    ------------  ------------
INCOME FROM OPERATIONS . . . . . . . . . . . . .         198,287       309,765

OTHER INCOME (EXPENSES)
  Interest income  . . . . . . . . . . . . . . .           3,650         7,968
  Interest expense . . . . . . . . . . . . . . .        (249,253)     (283,981)
  Amortization of deferred financing costs . . .         (73,756)      (73,756)
  Lawsuit settlement . . . . . . . . . . . . . .               -      (400,086)
  Other, net . . . . . . . . . . . . . . . . . .          (1,873)        9,210
                                                   -------------  ------------
                                                        (321,232)     (740,645)
                                                   -------------  ------------
LOSS BEFORE PROVISION FOR INCOME TAXES AND
    EXTRAORDINARY GAIN . . . . . . . . . . . . .        (122,945)     (430,880)

PROVISION FOR INCOME TAXES . . . . . . . . . . .               -             -
                                                   -------------  ------------
LOSS BEFORE EXTRAORDINARY GAIN . . . . . . . . .        (122,945)     (430,880)

EXTRAORDINARY GAIN . . . . . . . . . . . . . . .               -       568,750
                                                   -------------  ------------
NET INCOME (LOSS). . . . . . . . . . . . . . . .    $   (122,945)  $   137,870
                                                   =============  ============

      The accompanying footnotes are an integral part of these consolidated
                             financial statements.

                                - Continued -

                                      F-5
<PAGE>

                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS - Continued
               For the Three Months Ended March 31, 2001 and 2000
                                   (Unaudited)

                                                          2001          2000
                                                     ------------   ------------

Net income (loss) attributable to common
  stockholders . . . . . . . . . . . . . . . . . .   $  (132,351)   $   125,435
                                                     ============   ============

Basic and diluted net loss before extraordinary
  gain per share attributable to common
  shareholders . . . . . . . . . . . . . . . . . .   $     (0.02)   $     (0.05)
                                                     ============   ============
Basic and diluted extraordinary gain attributable
   to common shareholders  . . . . . . . . . . . .   $         -    $      0.07
                                                     ============   ============
Basic and diluted net income (loss) per share
  attributable to common shareholders. . . . . . .   $     (0.02)   $      0.02
                                                     ============   ============

Number of weighted-average shares of common
  stock outstanding (basic and diluted). . . . . .     8,210,320      7,688,722
                                                     ============   ============
























      The accompanying footnotes are an integral part of these consolidated
                             financial statements.




                                       F-6


<PAGE>

                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
             For The Three Months Ended March 31, 2001 and 2000
                               (Unaudited)


                                                         2001            2000
CASH FLOWS FROM OPERATING ACTIVITIES                --------------  ------------
Net income (loss). . . . . . . . . . . . . . . . .  $    (122,945)  $   137,870
Adjustments  to  reconcile  net  income
   (loss) to net cash  provided  (used) by
   operating activities:
    Shares issued for compensation . . . . . . . .              -       (45,000)
    Depreciation of property and equipment . . . .        212,885       260,539
    Provision for bad debts. . . . . . . . . . . .          6,000         4,100
    Provision for obsolete inventory . . . . . . .          3,000         3,000
    Extraordinary gain on note retirement  . . . .              -      (568,750)
    Amortization of debt discount  . . . . . . . .         16,311        83,969
    Amortization of deferred financing costs . . .         73,756        73,756
    Change in operating assets and liabilities
      Accounts receivable - trade. . . . . . . . .        807,937       (75,810)
      Accounts receivable - other. . . . . . . . .          6,820        21,190
      Inventories. . . . . . . . . . . . . . . . .        545,885      (342,861)
      Prepaid expenses and other current assets. .         36,991       185,126
      Other assets . . . . . . . . . . . . . . . .          5,543         2,518
      Trade payable  . . . . . . . . . . . . . . .     (1,102,571)     (167,630)
      Accrued liabilities. . . . . . . . . . . . .       (267,543)      178,305
                                                    --------------  ------------
Net cash provided (used) by operating activities .        222,069      (249,678)
                                                    --------------  ------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchases of property and equipment. . . . . . .        (11,276)     (158,696)
  Proceeds on sale of property and equipment . . .              -        36,938
  Payments received on notes receivable. . . . . .            331           781
  Purchase of certificate of deposit . . . . . . .         (2,113)       (2,646)
                                                    --------------  ------------
Net cash used by investing activities  . . . . . .        (13,058)     (123,623)
                                                    --------------  ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Net activity on line of credit . . . . . . . . .       (229,243)      214,993
  Repayment of long-term debt. . . . . . . . . . .        (95,207)     (540,863)
  Proceeds from long-term debt.. . . . . . . . . .              -       500,000
                                                    --------------  ------------
Net cash (used) provided by financing activities .       (324,450)      174,130
                                                    --------------  ------------
NET DECREASE IN CASH AND CASH EQUIVALENTS. . . . .       (115,439)     (199,171)




      The accompanying footnotes are an integral part of these consolidated
                             financial statements.


                                      F-7


<PAGE>

             TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
          For The Three Months Ended March 31, 2001 and 2000
                              (Unaudited)


                                                      2001          2000
                                                 ------------   ------------
Cash and cash equivalents at beginning
  of period. . . . . . . . . . . . . . . . .         839,060        894,261
                                                 ------------   ------------
Cash and cash equivalents at end of period .     $   723,621    $   695,090
                                                 ============   ============
SUPPLEMENTAL SCHEDULE OF NONCASH
  INVESTING AND FINANCING ACTIVITIES

  Issuance of common stock for
    settlement of note payable . . . . . . .     $         -    $ 1,031,250
                                                 ============   ============
  Dividends paid through issuance
    of common stock  . . . . . . . . . . . .     $     9,406    $    12,435
                                                 ============   ============
  Fair value of warrants issued and recorded
    as deferred financing costs  . . . . . .     $         -    $   163,554
                                                 ============   ============

























      The accompanying footnotes are an integral part of these consolidated
                             financial statements.


                                      F-8


<PAGE>

                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting  principles for interim financial information
and in  accordance  with the  instructions  per Item  310(b) of  Regulation  SB.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting principles for complete financial statements.

In the opinion of management,  all adjustments  (consisting of normal  recurring
adjustments) considered necessary for a fair presentation have been included for
the three month  period  ended March 31,  2001.  The results for the three month
period ended March 31, 2001 are not  necessarily  indicative of the results that
may be expected for the year ended December 31, 2001.

NOTE B - ORGANIZATION

Tech Electro Industries,  Inc. ("TEI") was formed on January 10, 1992 as a Texas
corporation.  TEI's subsidiary,  Computer Components  Corporation ("CCC"), doing
business as Universal  Battery ("UBC"),  stocks and sells electronic  components
and batteries.  Within the battery sales  activity,  there is significant  value
added to the batteries in the assembly of batteries into "packs".  UBC's battery
and electronic  components sales are generated by in-house sales staff and sales
representatives  to customers  throughout the United States.  TEI's  subsidiary,
AlphaNet  Hospitality  Systems,  Inc.  ("AHS"),  provides in-room  facsimile and
business center services to the hotel industry through licensing agreements. AHS
generates  revenues  from  its  product  line  which  includes  InnFax(R),   The
Office (TM) ,  InnPhone  and  InnPhonePlus.  InnFax(R)  is  a  patented  in-room
facsimile  service  which offers guests a personal  facsimile  number and e-mail
address to send and receive correspondence during the duration of their stay, as
well as facsimile, printing and copying capabilities. The Office (TM), is a full
service, credit card activated business center for business travelers staying at
hotels.  InnPhone and InnPhonePlus are digital and analog phones  distributed by
AHS to the hospitality industry.

NOTE C - NET INCOME (LOSS) PER SHARE

Basic net income  (loss) per share is computed by  dividing  net income  (loss),
decreased or increased by the  preferred  stock  dividends of $9,406 and $12,435
for the three month periods ending March 31, 2001 and 2000,  respectively by the
weighted average number of common shares outstanding for the period. Diluted net
income  (loss)  per share is  computed  by  dividing  net  income  (loss) by the
weighted   average  number  of  common  shares  and  common  stock   equivalents
outstanding for the period.  TEI's common stock  equivalents are not included in
the diluted  income (loss) per share for the three month periods ended March 31,
2001 and 2000 as they are antidilutive.

NOTE D - RECLASSIFICATIONS

Certain 2000 amounts have been reclassified to conform with 2001 presentation.


                                       F-9


<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The following  discussion and analysis should be read in conjunction  with TEI's
Consolidated  Financial  Statements and notes thereto included elsewhere in this
Form  10-QSB.  Except  for the  historical  information  contained  herein,  the
discussion in this Form 10-QSB contains certain forward looking  statements that
involve risks and uncertainties,  such as statements of TEI's plans, objectives,
expectations and intentions.  The cautionary statements made in this Form 10-QSB
should be read as being  applicable  to all related  forward-looking  statements
wherever  they appear in this Form 10-QSB.  These  statements  include,  without
limitation,  statements  concerning the potential  operations and results of the
Company described below. TEI's actual results could differ materially from these
discussed  here.  Factors  that could cause or  contribute  to such  differences
include, without limitation,  those factors discussed herein and in TEI's Annual
Report on Form 10-KSB for the year ended December 31, 2000.

BACKGROUND AND RECENT DEVELOPMENTS

On April 18,  2001,  we launched a new  business  through  our new wholly  owned
subsidiary,  DomainGorilla.com,  Inc., a New Jersey  corporation.  We will offer
".com",  ".net" and ".org" top-level domain name  registration  services with an
emphasis on bulk  renewals,  transfers and  registrations.  We are accredited to
offer this service by The Internet  Corporation  for Assigned Names and Numbers,
a.k.a.  ICANN. This a new venture for us. We have no experience in this business
and we cannot assure any investor in our stock that we will be successful. As of
the date of this filing, we have had no revenues from this business.

On April 25, 2001,  AHS signed a License  Agreement with Trety Ltd. of Hong Kong
to market and sell The Office (TM)  through its wholly  owned  subsidiary  Trety
Hospitality UK Ltd. The License  Agreement  provides for royalty payments to AHS
on sales from Trety  Hospitality  UK Ltd. The markets  covered by this agreement
include continental Europe, United Kingdom and The Republic of Ireland.

RESULTS OF OPERATIONS

Currently,  Tech Electro  Industries,  Inc.'s  ("TEI")  operations are conducted
through its two  wholly-owned  subsidiaries,  Computer  Components  Corporation,
doing  business  as  Universal  Battery   Corporation   ("UBC"),   and  AlphaNet
Hospitality Systems Inc. ("AHS").

REVENUES

For the three month period ended March 31, 2001,  TEI had revenues of $6,869,407
compared to $5,642,059  for the similar period ended March 31, 2000, an increase
of $1,227,348 (21.75%).

UBC and AHS had revenues of $5,474,789 and $1,394,618 for the three month period
ended March 31,  2001,  respectively,  compared to  revenues of  $3,689,554  and
$1,952,505  for the  similar  period in 2000,  respectively.  UBC's  increase in
revenues  is  attributable  to the  continued  growth in the sale of battery and
related products to the consumer,  medical and security  industry in addition to
direct shipping to customers.



                                       10

<PAGE>


AHS's decrease in revenues of $557,887 is largely  attributable to the continued
decline in facsimile usage by hotel guests as well as the declining installation
base of InnFax  machines in North  America.  Revenues  generated  from AHS's The
Office  product  for the three  months  ended March 31,  2001  remained  flat in
comparison to the same period in 2000. However,  sales of AHS's InnPhone product
increased by 48.9% to $111,633 during the first quarter of 2001 in comparison to
$74,965 in revenues during the same period in 2000.

COST OF REVENUES

For the  three  month  period  ended  March 31,  2001,  TEI's  cost of  revenues
increased  to  $4,797,416  compared to cost of revenues  of  $3,299,063  for the
similar period in 2000, an increase of $1,498,353 (45.4%).

UBC's and AHS's cost of revenues  totaled  $4,430,733 and $366,683 for the three
month  period  ended March 31,  2001,  compared to  $2,892,601  and $406,462 the
similar period in 2000, respectively. Increased revenues at UBC during the three
month  period  ended  March 31, 2001  compared  to the  similar  period in 2000,
resulted in an increase  in the cost of revenues  during the three month  period
ended March 31, 2001 compared to the similar period in 2000. Cost of revenues as
a percentage of revenues for UBC increased to 80.90%  compared to 78.40% for the
similar period in 2000. This increase is attributable  mainly to lowering prices
to  Schumacher  Electric,  which is UBC's  largest  account,  as well as, a high
volume and direct shipping customer.

Direct  services costs as a percentage of service  revenues for AHS increased to
26.29%  compared to 20.82% for the three month period  ending March 31, 2001 and
2000,  respectively.  The  increase  is largely  attributable  to the decline in
InnFax usage by hotel  guests.  These costs are  relatively  fixed in nature and
thus have not decreased significantly as revenue has decreased.

GROSS PROFIT

For the three month period ended March 31, 2001,  TEI recorded a gross profit of
$2,071,991  compared to $2,342,996 for the similar period in 2000, a decrease of
$271,005 (11.6%).

UBC's and AHS's gross profit  totaled  $1,044,056  and  $1,027,935 for the three
month period ended March 31, 2001,  compared to $796,953 and  $1,546,043 for the
similar period in 2000, respectively.

Gross profit as a  percentage  of revenue for the three month period ended March
31, 2001 for UBC decreased to 19.07%  compared to 21.60% for the similar  period
in 2000.  The  decrease in UBC's gross  profit was largely  attributable  to UBC
lowering the price of the products being sold to Schumacher Electric.

Gross profit as a  percentage  of revenue for the three month period ended March
31, 2001 for AHS decreased to 73.10%  compared to 79.18% for the similar  period
in 2000.  The  decrease is mainly  attributable  to sale of used fax machines in
2000 at a  relatively  high  margin,  which  inflated  the  margin for the first
quarter of 2000.



                                       11

<PAGE>

OPERATING EXPENSES

For the three month  period  ended March 31,  2001,  TEI's  operating  expenses,
consisting of selling, general and administrative, depreciation and amortization
expenses  decreased to $1,873,704  compared to $2,033,231 for the similar period
in 2000, a decrease of $159,527 (7.80%).

UBC's,  AHS's, and TEI's selling,  general and  administrative  expenses totaled
$671,691,  $848,571 and $140,557,  respectively for the three month period ended
March 31, 2001,  compared to $621,101,  $1,007,072  and $144,535 for the similar
period  in 2000,  respectively.  The  increase  in UBC's  selling,  general  and
administrative expenses in 2001 is due to increases in advertising, travel costs
and wages. The decrease in AHS's selling, general and administrative expenses is
largely  attributable  to the decrease in personnel,  which  decreased wages and
bonuses.  A reduction in recruiting  expenses also  contributed to the decrease.
TEI's selling,  general and administrative  expenses remained virtually the same
for the three month period ending March 31, 2001 and 2000.

For the three month period ended March 31, 2001, TEI's depreciation  expense was
$212,885  compared to $260,523  for the  similar  period in 2000,  a decrease of
$47,638  (18.3%).  The  decrease  is  largely  due a  portion  of the  facsimile
equipment in hotels becoming fully depreciated.

INTEREST EXPENSE

For the three  month  period  ended March 31,  2001,  TEI  incurred  $249,253 in
interest expense compared to $283,981 for the similar period in 2000, a decrease
of $34,728  (12.23%).  The  decrease  is  primarily  related to the  decrease of
$67,658 in the  amortization of the debt discount for the period ended March 31,
2000 to 2001. This decrease is offset by the increased  interest expense related
to the increased borrowings under the line of credit.

LIQUIDITY

TEI had cash and cash equivalents of $723,621 and $695,090 at March 31, 2001 and
2000, respectively.

Net cash  provided by  operations was $222,069 for the three month  period ended
March 31, 2001 compared to cash used of $249,678 for the similar period in 2000.
The majority of the cash provided  during 2001 related to a decrease in accounts
receivable  of $807,937  and a decrease  in  inventory  of $545,885  offset by a
decrease in accounts  payable and accrued  liabilities of  $1,370,114.  The 2000
cash used by  operating  activities  was due to the  extraordinary  gain on note
retirement  of $568,750,  an increase in inventory of $342,861 and a decrease in
accounts  payable of $167,630  offset by an increase in accrued  liabilities  of
$178,305 and a decrease in prepaid expenses of $185,126.

Net cash used by investing activities for the three month period ended March 31,
2001,  was  $13,058  compared to $123,623  for the similar  period in 2000.  The
majority  of the  decrease  was  caused  by the  purchase  of new  property  and
equipment 2000.


                                       12


<PAGE>

Net cash used by financing activities for the three month period ended March 31,
2001 was $324,450  compared to cash provided of $174,130 for the similar  period
in 2000.  The net cash used by financing  activities  for the three months ended
March 31, 2001  comprised of payments on line of credit and long term debt.  The
net cash provided by financing  activities  for the three months ended March 31,
2000 was activity on the line of credit and  proceeds of $500,000  received on a
note payable.

UBC has a  $3,000,000  line of credit with a financial  institution,  payable on
demand, with interest payable monthly at prime plus 2%, maturing August 2002. At
March 31, 2001, $2,388,477 of the line of credit was outstanding,  while $46,939
remained available for borrowings under the line of credit.

TEI has a $500,000 note payable due on September 10, 2001,  with a 12% per annum
interest  rate.  TEI is currently  negotiating an extension of the maturity date
with Caspic International, Inc.

AHS has a  $2,205,200  note  payable due on October  2001 with a 20.5%  interest
rate. AHS is currently seeking alternative financing.

TEI believes that cash flows provided by its operations and cash flows available
under the line of credit will be sufficient  to meet its needs through  December
31, 2001.

INFLATION

TEI has not been materially effected by inflation. While TEI does not anticipate
inflation  affecting  TEI's  operations,  increases in labor and supplies  could
impact TEI's ability to compete.

INTERNATIONAL CURRENCY FLUCTUATION

Since the  majority  of goods  that UBC  purchases  are from  Asia,  it has been
subject, like its competitors,  to international  currency fluctuation since the
Company's inception. The management of UBC does not believe that the fluctuation
in currency presents a serious threat to its operations.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 2. Changes in Securities.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Submission of Matters to a Vote of Securities Holders.

None.
                                       13

<PAGE>

Item 5. Other Information.

None.

Item 6. Exhibits and Reports on Form 8-K.

None.








                                    Signature
                                    ---------

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                      Tech Electro Industries, Inc.
                                      -----------------------------


Date: May 15, 2001                     /s/  Julie  Sansom-Reese
                                       --------------------------------
                                       Chief Financial Officer
























                                       14