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: December 31, 1999

                        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.)

                               1460 Pandosy Street
                                    Suite 106
                            Kelowna, British Columbia
                    (Address of principal executive offices)

                                     V1Y 1P3
                                   (Zip Code)

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


              (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 December 31, 1999, was 1,000,000 shares.



<PAGE>



                                     PART I

ITEM 1.           FINANCIAL STATEMENTS.

                  The unaudited financial  statements for the three month period
ended December 31, 1999 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)

                                December 31, 1999

<CAPTION>
ASSETS

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

LIABILITIES

     Accrued liabilities                                            $   5,483
                                                                    ---------

     TOTAL LIABILITIES                                              $   5,483
                                                                    =========

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                                         2,083

     Deficit accumulated during the development stage                  (8,566)
                                                                    ---------

     TOTAL SHAREHOLDERS' (DEFICIT)                                  $  (5,483)
                                                                    ---------

     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>
                                                                July 18, 1997
                                          Three Months Ended     (inception)
                                       ------------------------    Through
                                       December 31  December 31  December 31
                                           1999         1998         1999
                                       -----------  -----------  -----------
<S>                                    <C>          <C>          <C>
COSTS AND EXPENSES
  Legal fees                           $     5,000  $         -  $     5,000
  Accounting fees                            2,231            -        2,231
  Licenses and fees                              -            -          335
  Stock-based compensation for
    organizational costs (Note B)                -            -        1,000
                                       -----------  -----------  -----------

          LOSS FROM OPERATIONS              (7,231)           -       (8,566)
                                       -----------  -----------  -----------

INCOME TAX BENEFIT (EXPENSE) (NOTE C)
  Current tax benefit                        1,377            -        1,631
  Deferred tax expense                      (1,377)           -       (1,631)
                                       -----------  -----------  -----------

          NET LOSS                     $    (7,231) $         -  $    (8,566)
                                       ===========  ===========  ===========

  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>

                                        6

<PAGE>

<TABLE>


                           INVESTMENT ASSOCIATES, INC.
                          (A Development Stage Company)

                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<CAPTION>
                                                                July 18, 1997
                                          Three Months Ended     (inception)
                                       ------------------------    Through
                                       December 31  December 31  December 31
                                           1999         1998         1999
                                       -----------  -----------  -----------
<S>                                    <C>          <C>          <C>
OPERATING ACTIVITIES
  Net Loss                             $    (7,231) $         -  $    (8,566)

  Non-cash transactions:
    Stock-based compensation for
      organizational costs (Note B)              -            -        1,000
  Changes in operating assets and
    liabilities:
      Accounts payable and
        accrued liabilities                  5,148            -        5,483
                                       -----------  -----------  -----------
         NET CASH (USED IN)
           OPERATING ACTIVITIES             (2,083)           -       (2,083)
                                       -----------  -----------  -----------

FINANCING ACTIVITIES
  Third party expenses paid by
    affiliate on behalf of the
    company, recorded as additional-
    paid-in capital                          2,083            -        2,083
                                       -----------  -----------  -----------

          NET CASH PROVIDED BY
            FINANCING ACTIVITIES             2,083            -        2,083
                                       -----------  -----------  -----------

          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>


                                        7

<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  December 31,
1999 the Company  incurred  legal  expense of $5,000 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.




                                        8

<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.



                                        9

<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:  February 22, 2000



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




                                       10

<PAGE>


                           INVESTMENT ASSOCIATES, INC.

                EXHIBIT INDEX TO QUARTERLY REPORT ON FORM 10-QSB
                     FOR THE QUARTER ENDED DECEMBER 31, 1999

EXHIBITS                                                                Page No.

  EX-27           Financial Data Schedule.....................................12



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