SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-QSB

                                   (Mark one)

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

                  For the quarterly period ended March 31, 2001

                                       OR

[ ]      TRANSITION  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE  SECURITIES
         EXCHANGE ACT OF 1934

               For the transition period from ________to________.

                          Commission File No. 000-26631

                        Safe Transportation Systems, Inc.
               --------------------------------------------------
             (Exact name of registrant as specified in its charter)

          Florida                                          59-3567558
          -------                                          ----------
(State or other jurisdiction                   (IRS Employer Identification No.)
of incorporation or organization)

                     3871 Airport Way, Bellingham, WA 98226
       ------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (561) 989-9955
                     ---------------------------------------
              (Registrant's telephone number, including area code)

                                       N/A
              ----------------------------------------------------
              (Former name, former address and formal 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  Exchange  Act 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
[ ]

         As of April 1, 2001,  the issuer  had a total of  17,098,750  shares of
Common Stock outstanding.

<PAGE>

                        SAFE TRANSPORTATION SYSTEMS, INC.

INDEX                                                                      Page
                                                                         Number
                                                                      ---------

PART I - FINANCIAL INFORMATION

 Item 1.  Financial Statements
          Balance Sheets -  March 31, 2001  ..................................1

          Statements of Operations - For the three
          months ended March 31, 2001 and March 21, 2000 .....................2

          Statements of Cash Flows - For the three
          months ended March 31, 2001 and March 31, 2000......................3

          Notes to Financial Statements.......................................4

 Item 2.  Management's Discussion and Analysis of Financial Condition
            and Results of Operations.........................................5

PART II - OTHER INFORMATION

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

SIGNATURES....................................................................7

<PAGE>




                   PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements


                        Safe Transportation Systems, Inc.
                          (A Development Stage Company)
                                  Balance Sheet
                                 March 31, 2001

                                   (unaudited)
Assets

Current Assets
  Cash and cash equivalents                                $       580
  Inventory                                                     26,705
                                                           -----------
                             Total current assets               27,285
                                                           -----------

Property and equipment, net                                    263,814
                                                           -----------
Other assets
  Patent pending costs                                          11,469
  Bond                                                          62,646
                                                           -----------

                             Total other assets                 74,115
                                                           -----------

                                                           $   365,214
                                                           ===========

Liabilities and Stockholders' Equity

Current Liabilities
  Accounts payable and accrued expenses                    $   666,354
  Loans                                                         23,450
                                                           -----------

                            Total current liabilities          689,804
                                                           -----------

Stockholders' deficit
  Preferred stock, no par value, 5,000,000 shares
    authorized, no shares issued and outstanding
  Common Stock,$ .001 par value, 50,000,000 shares              17,148
    authorized, 17,147,500 shares issued and outstanding
  Additional paid-in capital                                 7,924,669
  Accumulated other comprehensive expense                       (6,794)
  Deficit accumulated during the development stage          (8,259,613)
                                                           -----------

                            Total Stockholders, deficit       (324,590)
                                                           -----------

                                                           $   365,214
                                                           ===========


                 See accompanying notes to financial statements.

                                       1
<PAGE>

                        Safe Transportation Systems, Inc.
                          (A Development Stage Company)
                            Statements of Operations
                                   (unaudited)
<TABLE>
<CAPTION>
                                                                                   Inception
                                                       Three Months Ended             to
                                                            March 31,               March 31,
                                                  ------------    ------------    ------------
                                                      2001            2000            2001
<S>                                               <C>             <C>           <C>
Sales                                             $       --      $       --    $         --

Operating Expenses:
  Selling, general and administrative:
    Non-cash compensation and services                    --              --         6,861,340
    Other selling, general and administrative          265,736          36,213       1,061,483
  Research and development                                --              --           336,790
                                                  ------------    ------------    ------------

Total operating expenses                               265,736          36,213       8,259,613
                                                  ------------    ------------    ------------

Loss from operations                                  (265,736)        (36,213)     (8,259,613)
                                                  ------------    ------------    ------------

Net Loss                                          $   (265,736)   $    (36,213)   $ (8,259,613)
                                                  ============    ============    ============

Basic and diluted loss per share                  $       --      $       --
  Weighted average number of shares outstanding           --        11,467,076
</TABLE>


                 See accompanying notes to financial statements.

                                       2
<PAGE>

                 See accompanying notes to financial statements.
                        Safe Transportation Systems, Inc.
                          (A Development Stage Company)
                            Statements of Cash Flows
<TABLE>
<CAPTION>
                                             (unaudited)                                      Inception
                                                                   Three Months Ended             to
                                                                        March 31,              March 31,
                                                               -----------    -----------    -----------
                                                                  2001            2000           2001
<S>                                                            <C>            <C>            <C>
Cash flows from operating activities:
  Net loss                                                     $  (265,736)   $   (36,213)   $(8,259,613)
  Adjustments to reconcile net loss to
    net cash provided by (used in) operating activities:
     Depreciation                                                    5,762            289          8,851
     Issuance of stock for services and compensation                  --             --        5,719,690
     Issuance of stock options for services and compensation          --             --        1,141,650
     Changes in operating assets and liabilities
        (Increase) in inventory                                    (26,705)          --          (26,705)
        (Increase) in patent pending costs                            --           (5,389)       (11,469)
        (Increase) in bond                                         (62,646)          --          (62,646)
        Increase in accounts payable and accrued expenses
                                                                   481,988          1,477        659,388
                                                               -----------    -----------    -----------
  Net cash provided by (used in) operating activities              132,663        (39,836)      (830,854)
                                                               -----------    -----------    -----------
Cash flows from investing activities:
  Purchase of property and equipment                              (241,660)        (8,673)      (272,665)
                                                               -----------    -----------    -----------
  Net cash used in investing activities                           (241,660)        (8,673)      (272,665)
                                                               -----------    -----------    -----------
Cash flows from financing activities:
  Increase in loans                                                 23,450           --           23,450
  Net advances from stockholders                                      --         (180,945)       194,261
  Proceeds from sale of stock                                       85,230        229,276        886,216
                                                               -----------    -----------    -----------
  Net cash provided by financing activities                        108,680         48,331      1,103,927
                                                               -----------    -----------    -----------
Effect of exchange rate changes on cash and cash equivalents           172            256            172
                                                               -----------    -----------    -----------
Net increase (decrease) in cash and cash equivalents                  (145)            79            580

Cash and cash equivalents, beginning of period                         725            397           --
                                                               -----------    -----------    -----------
Cash and cash equivalents, end of period                       $       580    $       477    $       580
                                                               ===========    ===========    ===========

Supplemental disclosure of cash flow information:
  Cash paid for interest during the period                     $      --      $      --      $      --
  Cash paid for income taxes during the period                 $      --      $      --      $      --
</TABLE>


                 See accompanying notes to financial statements.

                                       3
<PAGE>

   The accompanying notes are an integral part of these financial statements.

1.       Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting  principles for interim financial information
and with the instructions incorporated in Regulation 10-SB of the Securities and
Exchange Commission. 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 and accruals)  considered  necessary for a fair
presentation have been included.

The  results  of  operations  for the  periods  presented  are  not  necessarily
indicative  of the results to be expected  for the full year.  The  accompanying
financial  statements should be read in conjunction with the Company's financial
statements for the year ended December 31, 2000.

2.       Corporate History

The Company was  incorporated in the state of Florida on December 6, 1994 as Big
Daddy's  Auto Sales,  Inc.  On April 19,  2000 the  Company  changed its name to
Sweets & Eats,  Inc. On December  18, 2000,  the Company  entered into a reverse
merger with Safe  Transportation  Systems,  Inc.  (STS), a Wyoming  corporation,
whereby the Company  issued to STS 12,000,000  shares of its  restricted  Common
Stock in exchange for 100% of the issued and outstanding shares of STS.

Safe  Transportation  Systems,  Inc. was incorporated  under the laws of British
Columbia,  Canada on July 7,  1998.   On October 17,  2000 STS  domesticated  to
Wyoming by a unanimous consent of the shareholders.

Subsequent to the reverse  merger,  the Company changed its name from Sweats and
Eats, Inc. to Safe Transportation Systems, Inc. and began trading its securities
on the NASDAQ  OTCBB  under the symbol  SFTS in January of 2001.  The Company is
authorized to issue up to  50,000,000  shares of Common Stock having a par value
of $0.001 per share, and 5,000,000 Preferred shares.

3.       Description of Business

The Company is in transition from a research and development  based company to a
product  manufacturer,  and as such,  has had no revenues or income.  Since July
1998 the Company has  developed  and tested  safety  products  for the  trucking
industry. In this respect approximately $8.0 million has been spent on research,
development,  and patenting of the  Company's  proprietary  technology,  the STS
Accident Control and  Anti-Jackknife  System,  which prevents a  tractor-trailer
from losing  control and  jackknifing.  Of this,  $995,000  represented  capital
contributed and $6,995,000 represented issuance of stock for services.

4.       Significant Business Risks

The Company is subject to all of the risks that are inherent in a small  company
seeking to introduce, manufacture, market and distribute new products to retail,
wholesale,  and government  customers.  The likelihood of the Company's  success
must  be   considered  in  view  of  the   problems,   expenses,   difficulties,
complications  and  delays   frequently   encountered  in  connection  with  the
introduction, manufacture, marketing and distributions of new products.

5.       Loss Per Share

Basic loss per share was computed  using the weighted  average  number of Common
shares outstanding.

6.       Stock Subscriptions

On January 10, 2001 the Company  commenced  an offering of  securities  which it
believes  is  exempt  from  registration  as per  Rule 506 of  Regulation  D. As
amended,  the Company is seeking to raise up to  $5,700,000  (before  payment of
selling  commissions and associated  expenses) by selling up to 4,700,000 shares
of its Common Stock in two tranches as follows: 3,700,000 shares at the price of
$1 per share in the First Tranche;  and 1,000,000  shares at the price of $2 per
share in the Second Tranche.

The Company has sold 97,500 shares of the offering  resulting in gross  proceeds
of $97,500.

                                       4
<PAGE>

Item 2.  Management's Discussion and Analysis

During the reporting  period  Management  continued its efforts in transitioning
the Company from the  development  stage to a  manufacturer  and marketer of its
proprietary Accident Control and Anti-Jacknife System (ACS).

1.       Results  of Operations

The Company did not receive any revenues  during this  period.  The Company did,
however, sign agreements with three trucking fleet operators for the purchase of
ACS. The agreement with Northwest Tank Lines of Langley,  British Columbia (BC),
Canada  specifies  that NTL's  purchases of new  trailers  will include ACS. The
agreements with Lode Runner Transport of Surrey, BC and Bellingham,  Washington,
and  Autogas  Propane,  Ltd.  of  Burnaby,  BC call for their  purchases  of new
trailers as well as the retrofitting of existing trailers to include ACS.

Operating expenses increased to $265,736 for the three-month period ending March
31, 2001,  representing an increase of $229,523 from $36,213 for the same period
of year  2000.  Accounts  Payable  increased  from  $1,477 to  $481,988  for the
three-month period ending March 31, 2000 and March 31, 2001, respectively.
These  increases are  principally  due to general and  administrative  expenses,
marketing  expenses and the cost of  outfitting  the  manufacturing  facility in
Bellingham.  The Company has  successfully  completed  tooling  development  for
components to its product and is on schedule to begin shipping  systems from the
Bellingham plant by the end of August 2001.

There has been no  significant  change in  liquidity  or  capital  resources  or
stockholder's equity during this period.

2.       Liquidity and Capital Requirements

Since its inception,  the Company has incurred significant operating losses. The
Company's  continued  existence  is  dependent  upon its  ability to resolve its
liquidity  problems,  principally  by  funding  obtained  through  the  Rule 506
Regulation D Offering,  commencing sales, and generating  sufficient revenues to
become profitable.  During the interim,  the Company will continue to operate on
cash flows generated from loans,  raising capital and internally  generated cash
flow.  Additionally,  the  Company  possesses  an  inducement  from  the Port of
Bellingham,  Washington in the form of a $5 million Industrial Revenue Bond. The
Company will use $3.8 million of the proceeds to acquire the equipment necessary
for production.  The balance will be utilized for purchase of the  manufacturing
facility.  Management anticipates the transaction will be executed in the second
Quarter of 2001.

3.       Qualified Report of Independent Certified Public Accountants

Our independent  accountants  issued an unqualified  audit report for the fiscal
year 2000,  ending December 31, 2000.  They note that the significant  losses of
our company from operations and a net capital deficiency as of December 31, 2000
raise substantial  doubt about our ability to continue as a going concern.  They
state that the audited financial statements of Safe Transportation Systems, Inc.
for the year ended  December  31, 2000 have been  prepared  assuming the company
will continue as a going concern.

                                       5
<PAGE>

                          PART II -- OTHER INFORMATION

Item 1.  Legal Proceedings.

There are no  pending  legal  proceedings,  and the  Company is not aware of any
threatened  legal  proceedings,  to which the Company is a party or to which its
property is subject.

Item 2.  Changes in Securities.

There have been no material modifications in any of the instruments defining the
rights of the holders of any of the Company's securities.

None of the rights evidenced by any class of the Company's  securities have been
materially  limited or qualified by the  issuance or  modification  of any other
class of the Company's securities.

Item 3.  Defaults Upon Senior Securities.

         Not applicable.

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

         Not applicable.

Item 5.  Other Information.

         Not Applicable

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

         (a) Exhibits

         No exhibits as set forth in Regulation SB are considered  necessary for
         this filing.

         (b)  Reports on Form 8-K

         No  reports  on Form 8-K were  filed  during  the period for which this
         report is filed.

                                       6
<PAGE>

                                   Signature

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


By: /s/ James B. Long
---------------------
        James B. Long,
        President


Date: May 21, 2001


                                       7
<PAGE>