UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


[xx] QUARTERLY  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2001

                         Commission file Number: 0-28053

                           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
                     (I.R.S. Employer Identification Number)

                           104 - 1456 St. Paul Street
                       Kelowna, British Columbia, V1Y 2E6
                    (Address of principal executive offices)

                                  (250)868-8177
                           (Issuer's telephone number)


State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:     1,000,000 common shares as at
                                               December 31, 2001

Transitional Small Business Disclosure Format (check one):  Yes [ ]    No [ X ]



<PAGE>


                           INVESTMENT ASSOCIATES, INC.

                                      INDEX

PART 1.  FINANCIAL INFORMATION

         Item 1.   Financial Statements

                   Balance Sheet as of December 31, 2001                F-1

                   Statement of Operations for the period ended
                   December 31, 2001                                    F-2

                   Statements of Cash Flows for the period ended
                   December 31, 2001                                    F-3

                   Notes to Consolidated Financial Statements           F-4

         Item 2    Plan of Operation                                      5

PART II. OTHER INFORMATION

         Item 1    Legal Proceedings                                      6

         Item 2    Changes in Securities                                  6

         Item 3    Defaults Upon Senior Securities                        6

         Item 4    Submission of Matters to a Vote of Security Holders    6

         Item 5    Other Information                                      6

         Item 6    Exhibits and Reports on Form 8K                        6


         SIGNATURES                                                       6


<PAGE>

                           INVESTMENT ASSOCIATES, INC.

                             Condensed Balance Sheet

                                December 31, 2001
                                   (Unaudited)

                                     ASSETS


                                                        TOTAL ASSETS   $   --
                                                                       ========

                      LIABILITIES AND SHAREHOLDERS' DEFICIT

Liabilities:
      Accounts payable .............................................   $    193
      Indebtedness to related party (Note B) .......................      2,720
      Accrued liabilities ..........................................      1,750
                                                                       --------
                                                   Total liabilities      4,663
                                                                       --------

Shareholders' deficit:
      Preferred stock ..............................................       --
      Common stock .................................................      1,000
      Additional paid-in capital (Note B) ..........................     20,651
      Retained deficit .............................................    (26,314)
                                                                       --------
                                         Total shareholders' deficit     (4,663)
                                                                       --------

                         TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT   $   --
                                                                       ========

On Behalf of the Board of Directors:

/s/Bob Hemmerling
------------------------
Bob Hemmerling, Director

            See accompanying notes to condensed financial statements

                                       F-1

<PAGE>

                           INVESTMENT ASSOCIATES, INC.

                       Condensed Statements of Operations
                                   (Unaudited)

                                                         Three Months Ended
                                                             December 31,
                                                      -------------------------
                                                         2001         2000
                                                      -----------   -----------
          Total general and administrative expenses   $     1,991   $     1,020
                                                      -----------   -----------
                                     Operating loss        (1,991)       (1,020)
                                                      -----------   -----------

Income taxes (Note C) .............................        --            --
                                                      -----------   -----------

                                           Net loss   $    (1,991)  $    (1,020)
                                                      ===========   ===========


Basic and diluted loss per common share ...........   $     (0.00)  $     (0.00)
                                                      ===========   ===========

Basic and diluted weighted average common
     shares outstanding ...........................     1,000,000     1,000,000
                                                      ===========   ===========

            See accompanying notes to condensed financial statements

                                       F-2
<PAGE>

                           INVESTMENT ASSOCIATES, INC.

                       Condensed Statements of Cash Flows
                                   (Unaudited)

                                                        Three Months Ended
                                                           December 31,
                                                        ------------------
                                                         2001       2000
                                                        ------------------
                Net cash used in operating activities   $(1,548)   $  (770)
                                                        -------    -------

Cash flows from financing activities:
      Third party expenses paid by affiliate on
         behalf of the company, recorded as
         additional-paid-in capital (Note B) ........     1,548        770
                                                        -------    -------
            Net cash provided by financing activities     1,548        770
                                                        -------    -------

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 ...............................   $  --      $  --
                                                        =======    =======

            See accompanying notes to condensed financial statements

                                       F-3
<PAGE>


                           INVESTMENT ASSOCIATES, INC.
                     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, 2001 as filed in its Form 10-KSB and
should be read in conjunction  with the notes  thereto.  The Company 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

On July 13, 2001,  Strathmore  Minerals  Corp,  an affiliate  corporation  under
common control,  loaned the Company $2,720.  The loan does not carry an interest
and  is due  on  demand.  The  loan  principal  was  included  in the  financial
statements as indebtedness to related party at September 30, 2001.  There was no
change to the loan during the three months ended December 31, 2001.

The Company has no cash operating account. An affiliate, R.D. Capital, Inc., has
assumed the responsibility to pay certain  obligations on behalf of the Company.
The  payments  are  accounted  for as  contributed  capital in the  accompanying
condensed financial statements.  During the three months ended December 31, 2001
and 2000,  R.D.  Capital  made  payments  to vendors  totaling  $1,548 and $770,
respectively,  on behalf of the Company. Through December 31, 2001, R.D. Capital
has contributed capital totaling $20,651.


NOTE C: INCOME TAXES

The  Company  records  its  income  taxes  in  accordance  with  SFAS  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.

                                       F-4
<PAGE>

                                        5

                               PLAN 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.

Investment  Associates,  Inc. ("we," "our," or "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,  our  management  has had
preliminary  discussions  with potential merger or acquisition  candidates,  but
there is no definitive  agreement with any third party relevant thereto.  In the
event we do enter  into an  agreement  with  such a third  party,  our  Board of
Directors  intends 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.

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

Because  we  presently  have  nominal  overhead  or  other  material   financial
obligations,  we believe that our short term cash  requirements can be satisfied
by our management  injecting  whatever amounts of cash to cover these incidental
expenses.  There are no assurances  whatsoever  that any additional cash will be
made available to us through any means.

Liquidity and Capital Resources

We presently have nominal cash or cash equivalents.  Because we are not required
to pay rent or salaries to any of our officers or directors,  we believe that we
have sufficient funds to continue operations through the foreseeable future.

Our  securities  are  currently  not liquid.  There are no market  makers in our
securities  and it is not  anticipated  that  any  market  will  develop  in our
securities  until such time as we  successfully  implement  our business plan of
engaging in a business  opportunity,  either by merger or acquisition of assets.
We presently  have no liquid  financial  resources to offer such a candidate and
must  rely  upon  an  exchange  of  our  stock  to  complete  such a  merger  or
acquisition.

<PAGE>

                                        6

"CAUTIONARY  STATEMENT  FOR  PURPOSES  OF THE "SAFE  HARBOR"  PROVISIONS  OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Except for historical matters,
the matters discussed in this Form 10-QSB are  forward-looking  statements based
on current  expectations  and involve risks and  uncertainties.  Forward-looking
statements  include,  but are not limited  to,  statements  under the  following
heading:  "Managements Discussion And Analysis Or Plan Of Operations" the timing
and  expected  profitable  results  of  sales  and the  need  for no  additional
financing.

                                     PART II
                                OTHER INFORMATION

Item 1.  LEGAL PROCEEDINGS

         None

Item 2   CHANGES IN SECURITIES AND USE OF PROCEEDS

         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

Item 6   EXHIBITS AND REPORTS ON FORM 8-K

         (a)   Exhibits

               None

         (b)   Reports on Form 8-K

                      None

                                   SIGNATURES

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.

                                            INVESTMENT ASSOCIATES, INC.


Dated:  February 11, 2002           Per:    /s/Bob Hemmerling
                                            --------------------------
                                            Bob Hemmerling, Secretary,
                                            Treasurer and Director