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, 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)


              (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, 2000, was 1,000,000 shares.


<PAGE>



                                     PART I

ITEM 1.           FINANCIAL STATEMENTS.

     The  unaudited  financial  statements  for the  three  month  period  ended
December 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 -

     On September 18, 2000, the Company held its Annual Meeting of Shareholders.
At the  meeting,  the  Company's  Board of  Directors  were  re-elected  and the
Company's independent  accountants,  Cordovano & Harvey, P.C., were appointed to
audit the Company's financial statements for the fiscal year ended September 30,
2000.

                                                                               3


<PAGE>



ITEM 5.           OTHER INFORMATION - NONE.

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>




                           INVESTMENT ASSOCIATES, INC.
                          (A Development Stage Company)

                          Index to Financial Statements

                                                                         Page
                                                                        ------

Condensed balance sheet, December 31, 2000 (unaudited) ................    2

Condensed statements of operations for the three months ended
   December 31, 2000 and 1999, and from July 18, 1997 (inception)
   through December 31, 2000 (unaudited) ..............................    3

Condensed statements of cash flows for the three months ended
   December 31, 2000 and 1999, and from July 18, 1997 (inception)
   through December 31, 2000 (unaudited) ..............................    4

Notes to condensed financial statements ...............................   5-6


*The accompanying condensed financial statements are not covered by an
   Independent Certified Public Accountant's report































                                        1

                                                                               5


<PAGE>




                           INVESTMENT ASSOCIATES, INC.
                          (A Development Stage Company)

                             CONDENSED BALANCE SHEET

                                December 31, 2000

                                     ASSETS

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

                     LIABILITIES AND SHAREHOLDERS' (DEFICIT)

CURRENT LIABILITIES

  Accounts payable .....................................   $                -
  Accrued liabilities ..................................   $            1,750
                                                           ------------------
                               TOTAL CURRENT LIABILITIES                1,750
                                                           ------------------

SHAREHOLDERS' EQUITY

  Preferred stock, $.001 par value,
   25,000,000 shares authorized,
   -0- shares issued and
   outstanding (See Note D)............................                    -
  Common stock, $.001 par value,
   50,000,000 shares authorized,
   1,000,000 shares issued and
   outstanding (See Note D)............................                1,000
  Additional paid-in capital ..........................               14,975
  Deficit accumulated during the
   development stage ..................................              (17,725)
                                                          ------------------
                             TOTAL SHAREHOLDERS' EQUITY               (1,750)
                                                          ------------------

                                                          $                -
                                                          ==================














            See accompanying notes to condensed financial statements

                                        2

                                                                               6


<PAGE>



                           INVESTMENT ASSOCIATES, INC.
                          (A Development Stage Company)

                       CONDENSED STATEMENTS OF OPERATIONS


                                                                 July 18, 1997
                                        Three Months Ended        (inception)
                                    ----------------------------    Through
                                     December 31,   December 31,   December 31,
                                        2000           1999           2000
                                   -------------  -------------  -------------

COSTS AND EXPENSES

  Legal fees .....................  $         770  $      10,000  $      11,960
  Accounting fees ................            250          1,948          3,980
  Printing .......................              -              -              -
  Licenses and fees ..............              -              -            535
  Stock-based compensation for
     organizational costs (Note B)              -              -          1,000
                                    -------------  -------------  -------------
              LOSS FROM OPERATIONS         (1,020)       (11,948)       (17,475)
                                    -------------  -------------  -------------

INCOME TAX BENEFIT (EXPENSE) (NOTE C)

  Current tax benefit ............            194          2,275          3,327
  Deferred tax expense ...........           (194)        (2,275)        (3,327)
                                    -------------  -------------  -------------
                          NET LOSS  $      (1,020) $     (11,948) $     (17,475)
                                    =============  =============  =============

  BASIC AND DILUTED
    LOSS PER COMMON SHARE ........  $           *  $       (0.01) $       (0.02)
                                    =============  =============  =============

  BASIC WEIGHTED AVERAGE COMMON
    SHARES OUTSTANDING ...........      1,000,000      1,000,000      1,000,000
                                    =============  =============  =============



* Less than .01 per share
















            See accompanying notes to condensed financial statements

                                        3

                                                                               7


<PAGE>



                           INVESTMENT ASSOCIATES, INC.
                          (A Development Stage Company)

                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                                 July 18, 1997
                                         Three Months Ended       (inception)
                                    ----------------------------    Through
                                     December 31,   December 31,   December 31,
                                        2000           1999           2000
                                    -------------  -------------  -------------

Net cash used in operating
    activities ...................  $           -  $           -  $     (14,975)
                                    -------------  -------------  -------------

Cash flows from financing activities:

     Third party expenses paid by
       affiliate on behalf of the
       company, recorded as
       additional paid-in capital.              -              -         14,975
                                    -------------  -------------  -------------
Net cash provided by financing
     activities ..................              -              -         14,975
                                    -------------  -------------  -------------

                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

                                        4

                                                                               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, 2000 as filed in its form 10-KSB on
January 11, 2001 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 maintains a mailing address at an affiliate's address.  This address
is Suite 104, 1456 St. Paul Street, Kelowna, B.C., Canada V1Y 2E6.  At this time
the Company has no need for an office.

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,
2000 the Company incurred legal expense of $770 and accounting  expense of $250.
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.

                                        5

                                                                               9


<PAGE>



                           INVESTMENT ASSOCIATES, INC.
                          (A Development Stage Company)

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE D: SHAREHOLDERS' EQUITY

Common Stock

The Company initially  authorized 25,000 shares of no par value common stock. On
July 23, 1999 the Board of Directors  approved an increase in authorized  shares
to 50,000,000  and changed the par value to $.001.  On July 20, 1997 the Company
issued 1,000 shares of common stock for services  valued at $1.00 per share,  or
$1000.

On October 5, 1999 the Company filed  amended  articles with the state of Nevada
to change the authorized shares of common stock originally approved by the Board
of Directors to 50,000,000,  $.001 par and 25,000,000  shares of preferred stock
$.001 par.

Effective  October 6, 1999, the shareholders  approved a forward split of common
stock of one  thousand  shares  in  exchange  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.

                                        6

                                                                              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:  February 13, 2001



                                        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 DECEMBER 31, 2000

EXHIBITS                                                                Page No.

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



                                                                              12