U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                   FORM 10-QSB

                             Quarterly Report Under
                       the Securities Exchange Act of 1934

                        For Quarter Ended: March 31, 2000

                        Commission File Number: 000-28053



                           INVESTMENT ASSOCIATES, INC.
        (Exact name of small business issuer as specified in its charter)



                                     Nevada

         (State or other jurisdiction of incorporation or organization)

                                   98-0204280
                        (IRS Employer Identification No.)

                              1456 St. Paul Street
                                    Suite 104

                            Kelowna, British Columbia
                    (Address of principal executive offices)

                                     V1Y 2E6
                                   (Zip Code)

                                 (250) 868-8177
                           (Issuer's Telephone Number)

                              1460 Pandosy Street
                                   Suite 106
                       Kelowna, British Columbia V1Y 1P3
              (Former name, former address and former fiscal year,
                          if changed since last report)


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 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 90 days: Yes
__X__ No ____.

The number of shares of the  registrant's  only class of common stock issued and
outstanding, as of March 31, 2000, was 1,000,000 shares.


<PAGE>



                                     PART I

ITEM 1.           FINANCIAL STATEMENTS.

     The unaudited financial statements for the six month period ended March 31,
2000 are attached hereto.

ITEM 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     The following  discussion  should be read in conjunction with the Company's
unaudited financial  statements and notes thereto included herein. In connection
with, and because it desires to take advantage of, the "safe harbor"  provisions
of the Private  Securities  Litigation  Reform Act of 1995, the Company cautions
readers regarding certain forward looking statements in the following discussion
and  elsewhere  in this  report  and in any other  statement  made by, or on the
behalf of the Company,  whether or not in future filings with the Securities and
Exchange  Commission.  Forward  looking  statements  are statements not based on
historical  information  and  which  relate to  future  operations,  strategies,
financial  results  or  other  developments.   Forward  looking  statements  are
necessarily based upon estimates and assumptions that are inherently  subject to
significant business,  economic and competitive uncertainties and contingencies,
many of which are beyond the Company's  control and many of which,  with respect
to future business  decisions,  are subject to change.  These  uncertainties and
contingencies can affect actual results and could cause actual results to differ
materially from those expressed in any forward looking statements made by, or on
behalf of, the Company.  The Company  disclaims any obligation to update forward
looking statements.

Plan of Operation

     The  Company  intends  to seek to  acquire  assets  or  shares of an entity
actively engaged in business, in exchange for its securities.  As of the date of
this report,  management  of the Company has had  preliminary  discussions  with
potential merger or acquisition candidates, but there is no definitive agreement
between  the  Company and any third  party  relevant  thereto.  In the event the
Company  does  enter into an  agreement  with such a third  party,  the Board of
Directors does intend to obtain certain assurances of value of the target entity
assets prior to consummating such a transaction, with further assurances that an
audited financial statement would be provided within sixty days after closing of
such  a   transaction.   Closing   documents   relative   thereto  will  include
representations  that the  value  of the  assets  conveyed  to or  otherwise  so
transferred will not materially differ from the representations included in such
closing documents, or the transaction will be voidable.

                                        2


<PAGE>



     The  Company  has no full  time  employees.  The  Company's  President  and
Secretary  have agreed to allocate a portion of their time to the  activities of
the Company,  without compensation.  These officers anticipate that the business
plan of the Company can be implemented by their devoting  approximately 20 hours
per month to the business affairs of the Company and, consequently, conflicts of
interest may arise with respect to the limited time commitment by such officers.

     Because  the Company  presently  has  nominal  overhead  or other  material
financial  obligations,  management  of the Company  believes that the Company's
short term cash requirements can be satisfied by management  injecting  whatever
nominal  amounts of cash into the  Company to cover these  incidental  expenses.
There  are no  assurances  whatsoever  that  any  additional  cash  will be made
available to the Company through any means.

Liquidity and Capital Resources

     The Company  presently  has nominal cash or cash  equivalents.  Because the
Company  is not  required  to pay rent or  salaries  to any of its  officers  or
directors, management believes that the Company has sufficient funds to continue
operations through the foreseeable future.

     The Company's  securities  are  currently  not liquid.  There are no market
makers in the Company's  securities  and it is not  anticipated  that any market
will  develop  in the  Company's  securities  until  such  time  as the  Company
successfully implements its business plan of engaging in a business opportunity,
either by merger or acquisition of assets.  The Company  presently has no liquid
financial  resources to offer such a candidate and must rely upon an exchange of
its stock to complete such a merger or acquisition.

                           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 SECURITY HOLDERS -

                  NONE.

ITEM 5.           OTHER INFORMATION - NONE.



                                        3


<PAGE>



ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K -

                  (a)      Exhibits

                           EX-27            Financial Data Schedule

                  (b)      Reports on Form 8-K

                           None.

                                        4


<PAGE>


<TABLE>

                           INVESTMENT ASSOCIATES, INC.
                          (A Development Stage Company)

                             CONDENSED BALANCE SHEET
                                   (Unaudited)

                                 March 31, 2000

<CAPTION>
ASSETS
<S>                                                                 <C>
     TOTAL ASSETS                                                   $       -
                                                                    =========

LIABILITIES

     Accrued liabilities                                            $     250
                                                                    ---------

     TOTAL LIABILITIES                                              $     250
                                                                    =========

SHAREHOLDERS' (DEFICIT)

     Preferred stock, $.001 par value, 25,000,000 shares
       authorized, -0- shares issued and
       outstanding (See Note B)                                             -

     Common stock, $.001 par value, 75,000,000 shares
       authorized, 1,000,000 (restated) shares issued and
       outstanding (See Note B)                                         1,000

     Additional paid-in capital                                        12,420

     Deficit accumulated during the development stage                 (13,670)
                                                                    ---------

     TOTAL SHAREHOLDERS' (DEFICIT)                                  $    (250)
                                                                    ---------

     TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT)                  $       0
                                                                    =========


















            See accompanying notes to condensed financial statements
</TABLE>

                                        5


<PAGE>

<TABLE>


                           INVESTMENT ASSOCIATES, INC.
                          (A Development Stage Company)

                       CONDENSED STATEMENTS OF OPERATIONS
                                   (Unaudited)


<CAPTION>
                                                       Three Months Ended
                                                    ------------------------
                                                      March 31,    March 31,
                                                        2000         1999
                                                    -----------  -----------
<S>                                                 <C>          <C>
COSTS AND EXPENSES

  Legal fees                                        $       104  $         -
  Accounting fees                                           250            -
  Licenses and fees                                           -            -
  Stock-based compensation for
    organizational costs (Note B)                             -            -
                                                    -----------  -----------

          LOSS FROM OPERATIONS                             (354)           -
                                                    -----------  -----------

INCOME TAX BENEFIT (EXPENSE) (NOTE C)

  Current tax benefit                                        67            -
  Deferred tax expense                                      (67)           -
                                                    -----------  -----------

          NET LOSS                                  $      (354) $         -
                                                    ===========  ===========

  BASIC AND DILUTED
    LOSS PER COMMON SHARE                           $         *  $         *
                                                    ===========  ===========

  BASIC AND DILUTED WEIGHTED AVERAGE
    COMMON SHARES OUTSTANDING (Note D)                1,000,000    1,000,000
                                                    ===========  ===========



* Less than .01 per share


















            See accompanying notes to condensed financial statements
</TABLE>

                                        6


<PAGE>

<TABLE>


                           INVESTMENT ASSOCIATES, INC.
                          (A Development Stage Company)

                       CONDENSED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<CAPTION>
                                                                July 18, 1997
                                           Six Months Ended      (inception)
                                       ------------------------    Through
                                         March 31,    March 31,    March 31,
                                           2000         1999         2000
                                       -----------  -----------  -----------
<S>                                    <C>          <C>          <C>
COSTS AND EXPENSES

  Legal fees                           $    10,104  $         -  $    10,104
  Accounting fees                            2,231            -        2,231
  Licenses and fees                              -            -          335
  Stock-based compensation for
    organizational costs (Note B)                -            -        1,000
                                       -----------  -----------  -----------

          LOSS FROM OPERATIONS             (12,335)           -      (13,670)
                                       -----------  -----------  -----------

INCOME TAX BENEFIT (EXPENSE) (NOTE C)

  Current tax benefit                        2,348            -        2,602
  Deferred tax expense                      (2,348)           -       (2,602)
                                       -----------  -----------  -----------

          NET LOSS                     $   (12,335) $         -  $   (13,760)
                                       ===========  ===========  ===========

  BASIC AND DILUTED
    LOSS PER COMMON SHARE              $         *  $         *  $         *
                                       ===========  ===========  ===========

  BASIC AND DILUTED WEIGHTED AVERAGE
    COMMON SHARES OUTSTANDING (Note D)   1,000,000    1,000,000    1,000,000
                                       ===========  ===========  ===========



* Less than .01 per share


















            See accompanying notes to condensed financial statements
</TABLE>

                                        7


<PAGE>

<TABLE>


                           INVESTMENT ASSOCIATES, INC.
                          (A Development Stage Company)

                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<CAPTION>
                                                                July 18, 1997
                                           Six Months Ended      (inception)
                                       ------------------------    Through
                                         March 31,    March 31,    March 31,
                                           2000         1999         2000
                                       -----------  -----------  -----------
<S>                                    <C>          <C>          <C>
OPERATING ACTIVITIES

  Net Loss                             $   (12,335) $         -  $   (13,670)

  Non-cash transactions:
    Stock-based compensation for
      organizational costs (Note B)              -            -        1,000
  Changes in operating assets and
    liabilities:
      Accounts payable and

        accrued liabilities                    (85)           -          250
                                       -----------  -----------  -----------
         NET CASH (USED IN)

           OPERATING ACTIVITIES            (12,420)           -      (12,420)
                                       -----------  -----------  -----------

FINANCING ACTIVITIES
  Third party expenses paid by
    affiliate on behalf of the
    company, recorded as additional-
    paid-in capital                         12,420            -       12,420
                                       -----------  -----------  -----------

          NET CASH PROVIDED BY

            FINANCING ACTIVITIES            12,420            -       12,420
                                       -----------  -----------  -----------

          NET CHANGE IN CASH

  Cash, beginning of period                      -            -            -
                                       -----------  -----------  -----------
          CASH, END OF PERIOD          $         -  $         -  $         -
                                       ===========  ===========  ===========

SUPPLEMENTAL DISCLOSURE OF CASH
  FLOW INFORMATION:

Cash paid during the period for:

  Interest                             $         -  $         -  $         -
                                       ===========  ===========  ===========
  Income taxes                         $         -  $         -  $         -
                                       ===========  ===========  ===========

Non-cash financing activities:
  1,000,000 shares common stock
    issued for services                $         -  $         -  $     1,000
                                       ===========  ===========  ===========


            See accompanying notes to condensed financial statements
</TABLE>


                                        8


<PAGE>



                           INVESTMENT ASSOCIATES, INC.
                          (A Development Stage Company)

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)


NOTE A: BASIS OF PRESENTATION

The condensed  financial  statements  presented herein have been prepared by the
Company in  accordance  with the  accounting  policies in its audited  financial
statements  for the year  ended  September  30,  1999 as filed in its form 10-SB
filed  November  12,  1999 and  should  be read in  conjunction  with the  notes
thereto.  The Company entered the development stage in accordance with Statement
of Financial Accounting Standard ("SFAS") No. 7 on July 18, 1997 and is a "blank
check"  company  with the purpose to evaluate,  structure  and complete a merger
with, or acquisition of, a privately owned corporation.

In the  opinion  of  management,  all  adjustments  (consisting  only of  normal
recurring  adjustments)  which are necessary to provide a fair  presentation  of
operating  results for the interim period  presented have been made. The results
of operations for the periods  presented are not  necessarily  indicative of the
results to be expected for the year.

Interim financial data presented herein are unaudited.

NOTE B: RELATED PARTY TRANSACTIONS

The Company has issued an officer  1,000,000  shares of common stock in exchange
for services related to management and organization costs of $1,000. The officer
will provide  administrative  and marketing services as needed. The officer may,
from time to time,  advance to the Company any additional funds that the Company
needs for costs in connection with searching for or completing an acquisition or
merger.

The Company  does not maintain a checking  account and all expenses  incurred by
the Company are paid by an affiliate.  For the three months ended March 31, 2000
the Company  incurred legal expense of $104 and accounting  expense of $250. For
the six months  ended  March 31,  2000 the  Company  incurred  legal  expense of
$10,104 and  accounting  expense of $2,231.  The affiliate does not expect to be
repaid for the  expenses it pays on behalf of the Company.  Accordingly,  as the
expenses are paid, they are classified as additional paid-in capital.

NOTE C: INCOME TAXES

The Company  records its income taxes in accordance  with Statement of Financial
Accounting Standard No. 109, "Accounting for Income Taxes". The Company incurred
net  operating  losses  during  the  periods  shown on the  condensed  financial
statements  resulting  in a deferred  tax asset,  which was fully  allowed  for,
therefore the net benefit and expense result in $-0- income taxes.

                                        9


<PAGE>



                           INVESTMENT ASSOCIATES, INC.
                          (A Development Stage Company)

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE D: FORWARD STOCK SPLIT

Effective  October 6, 1999, the shareholders  approved a forward split of common
stock of one thousand  shares for each share of common stock (1,000:1) held. The
accompanying  financial  statements  have been  retroactively  restated  to give
effect to the forward stock split for all periods presented.

                                       10


<PAGE>



                                   SIGNATURES

     Pursuant to the  requirements  of Section 12 of the Securities and Exchange
Act of 1934,  the  Registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                       INVESTMENT ASSOCIATES, INC.
                                       (Registrant)

                                       Dated:  May 15, 2000



                                       By:  s/Robert Hemmerling
                                          ------------------------
                                          Robert Hemmerling,
                                          Secretary/Treasurer

                                       11


<PAGE>


                           INVESTMENT ASSOCIATES, INC.

                EXHIBIT INDEX TO QUARTERLY REPORT ON FORM 10-QSB
                      FOR THE QUARTER ENDED MARCH 31, 2000

EXHIBITS                                                                Page No.

  EX-27  Financial Data Schedule..............................................13



                                       12