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 June 30, 2001

                                       OR

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

              For the transition period from March 31, 2001 to June
                                   30, 2001.

                          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)

                                 (360)527-1112
                     ---------------------------------------
              (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 [ ] No [X]


                                       1
<PAGE>

A Form 8-K,  required to be filed  indicating  a change in  accountants  for the
Company,  is currently  late. The Company intends to file as soon as the consent
of a named expert can be obtained from a previous accountant.

         As of July 1,  2001,  the issuer  had a total of  17,346,250  shares of
Common Stock outstanding.


                        SAFE TRANSPORTATION SYSTEMS, INC.

INDEX                                                                      Page
                                                                          Number
                                                                          ------
PART I - FINANCIAL INFORMATION

 Item 1.  Financial Statements
          Balance Sheets -  June 30, 2001  ................................... 3

          Statements of Operations - For the three
          months ended June 30, 2001 and June 30, 2000 ....................... 4

          Statements of Cash Flows - For the three
          months ended June 30, 2001 and June 30, 2000........................ 6

          Notes to Financial Statements....................................... 7

 Item 2.  Management's Discussion and Analysis of Financial Condition
            and Results of Operations......................................... 9

PART II - OTHER INFORMATION

 Item 6.  Exhibits and Reports on Form 8-K....................................10

SIGNATURES....................................................................11



                                       2
<PAGE>

                   PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements

<TABLE>
<CAPTION>

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

                                     Assets
                                     ------
                                                                   June 30,
                                                                     2001               December 31,
                                                                  (unaudited)              2000
                                                                  -----------           -----------
<S>                                                               <C>                   <C>
Current assets
  Cash and cash equivalents                                       $    52,033           $       725
  Inventory                                                            28,401                  --
                                                                  -----------           -----------

                 Total current assets                                  80,434                   725
                                                                  -----------           -----------

Property and equipment, net                                           212,635                27,916
                                                                  -----------           -----------

Other assets
  Patent pending costs                                                 11,469                11,469
  Bond                                                                 62,646                  --
                                                                  -----------           -----------

                 Total other assets                                    74,115                11,469
                                                                  -----------           -----------

                                                                  $   367,184           $    40,110
                                                                  ===========           ===========

           Liabilities and Stockholders' Equity

Current liabilities
  Accounts payable and accrued expenses                           $   637,228           $   184,366
  Loans                                                               215,950                  --
                                                                  -----------           -----------

                 Total current liabilities                            853,178               184,366
                                                                  -----------           -----------

Stockholders' deficit
  Preferred stock, no par value, 5,000,000 shares
    authorized, no shares issued and outstanding
  Common Stock, 1$.001,par value, 50,000,000 sharesnding
    authorized, 17,346,250 and 17,050,000
    shares issued and outstanding repectiv                             17,346                17,050
  Additional paid-in capital                                        7,945,470             7,839,537
  Accumulated other comprehensive expense                              (6,794)               (6,966)
  Deficit accumulated during the development stage                 (8,442,016)           (7,993,877)
                                                                  -----------           -----------

                 Total Stockholders' deficit                         (485,994)             (144,256)
                                                                  -----------           -----------

                                                                  $   367,184           $    40,110
                                                                  ===========           ===========
</TABLE>
                See accompanying notes to financial statements.
                                       3
<PAGE>

<TABLE>
<CAPTION>

                 See accompanying notes to financial statements.
                        Safe Transportation Systems, Inc.
                          (A Development Stage Company)
                            Statements of Operations

                                                                Three Months Ended             Six Months Ended
                                                           ----------------------------   ----------------------------
                                                               2001            2000           2001            2000
                                                           ------------    ------------   ------------    ------------
<S>                                                       <C>             <C>             <C>             <C>
Sales                                                     $       --      $       --      $       --      $       --

Operating expenses:
  Selling, general and administrative:
    Non-cash compensation and services                            --              --              --              --
    Other selling, general and administrative                  182,404          75,268         448,139         111,481
  Research and development                                        --              --              --              --
                                                           ------------    ------------   ------------    ------------

Total operating expenses                                       182,404          75,268         448,139         111,481
                                                           ------------    ------------   ------------    ------------

Loss from operations                                          (182,404)        (75,268)       (448,139)       (111,481)
                                                           ------------    ------------   ------------    ------------

Net loss                                                  $   (182,404)   $    (75,268)   $   (448,139)   $   (111,481)
                                                          ============    ============    ============    ============

Basic and diluted loss per share                          $      (0.01)   $       --      $      (0.02)   $       --
  Weighted average number of shares outstanding             19,958,201      11,467,076      19,958,201      11,467,076
</TABLE>

                See accompanying notes to financial statements.
                                       4
<PAGE>


                          Safe Transportation Systems
                               Earnings Per Share

Q1 - June 30, 2001
Issued Shares
-------------------
<TABLE>
<CAPTION>

                        Shares            Cumulative         Days           Weighted        Average                          Per
        Date            Issued              Shares        Outstanding       Average        for Period         Profit        Share
    -----------       -----------         -----------     -----------     -----------      -----------      ----------- -----------
<S>                   <C>                 <C>             <C>             <C>              <C>              <C>         <C>
      12/31/00         17,050,000         17,050,000             0                  -
       1/23/01             60,000         17,110,000             0                  -
       1/24/01             37,500         17,147,500             0                  -
       1/25/01             37,500         17,185,000             0                  -
       1/31/01             30,000         17,215,000             0                  -
        2/1/01             52,500         17,267,500             0                  -
        2/5/01             15,000         17,282,500             0                  -
        2/6/01             11,250         17,293,750            39        674,456,250
        5/9/01              7,500         17,301,250             6        103,807,500
       5/15/01              7,500         17,308,750            42        726,967,500
       6/26/01             12,500         17,321,250             1         17,321,250
       6/27/01             25,000         17,346,250             3         52,038,750

                       17,346,250                               91      1,574,591,250      17,303,201       $ (182,404)     $ (0.01)
                                                                                                            $ (448,139)       (0.03)
Option Shares - issued October 19, 2000              (Anti diluitive - do not show)
               nonqualified                                                                 2,655,000
               To personnel                                                                 2,105,000
               To consultant                                                                  500,000
               To attorney                                                                     50,000

               Total                                                                       22,613,201       $ (182,404)     $ (0.01)
                                                                                                            $ (448,139)       (0.02)


</TABLE>

Note: All shares under 506 were converted as if sold at $.40 each (5/1 Ratio)

                See accompanying notes to financial statements.
                                       5
<PAGE>

<TABLE>
<CAPTION>

     See accompanying notes to financial statements.
            Safe Transportation Systems, Inc.
              (A Development Stage Company)
                 Statements of Cash Flows

                                                                           Six Months Ended
                                                                               June 30,
                                                                     ---------------------------
                                                                         2001              2000
                                                                     ---------         ---------
<S>                                                                  <C>                <C>
Cash flows from operating activities:
  Net loss                                                           $(448,139)         $(111,481)
  Adjustments to reconcile net loss to
    net cash provided by (used in) operating activities:
     Depreciation                                                       10,418                794
     Issuance of stock for services and compensation                      --                 --
     Issuance of stock options for services and compensation              --                 --
     Changes in operating assets and liabilities
        (Increase) in inventory                                        (28,401)              --
        (Increase) in patent pending costs                                --              (10,804)
        (Increase) in bond                                             (62,646)              --
        Increase in accounts payable and accrued expenses              452,862               --
                                                                     ---------         ---------

  Net cash provided by (used in) operating activities                  (75,906)          (121,491)
                                                                     ---------         ---------

Cash flows from investing activities:
  Purchase of property and equipment                                  (195,137)           (14,750)
                                                                     ---------         ---------

  Net cash used in investing activities                               (195,137)           (14,750)
                                                                     ---------         ---------

Cash flows from financing activities:
  Increase in loans                                                    215,950               --
  Net advances from stockholders                                          --             (180,945)
  Proceeds from sale of stock                                          106,229            314,124
                                                                     ---------         ---------

  Net cash provided by financing activities                            322,179            133,179
                                                                     ---------         ---------

Effect of exchange rate changes on cash and cash equivalents               172              2,859
                                                                     ---------         ---------

Net increase (decrease) in cash and cash equivalents                    51,308               (203)

Cash and cash equivalents, beginning of period                             725                397
                                                                     ---------         ---------

Cash and cash equivalents, end of period                             $  52,033          $     194
                                                                                        =========

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.
                                       6
<PAGE>



                        Safe Transportation Systems, Inc.
                          (A Development Stage Company)
                              Notes to Financials

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.

                                       7
<PAGE>

                        Safe Transportation Systems, Inc.
                          (A Development Stage Company)
                              Notes to Financials

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.

In the second  quarter of 2001,  the Company  repriced  the Rule 506 offering to
$.40 per share.

The Company has sold 296,250 shares of the offering  resulting in gross proceeds
of $118,500.
                                       8
<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.

Operating  expenses increased to $182,404 for the three-month period ending June
30, 2001,  representing an increase of $107,136 from $75,268 for the same period
of year 2000.  Accounts  Payable  increased  from  $481,988 to $637,228  for the
three-month period ending June 30, 2001 and March 31, 2001, respectively.  These
increases  are  principally  due  to  general,  administrative,   and  marketing
expenses.  The  Company  has  successfully  completed  tooling  development  for
components  to its product and is on schedule to begin  shipping  systems by the
end of September 2001.

There  has  been  a  negative  change  in  liquidity,   capital  resources,  and
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.

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.


                                        9
<PAGE>

                                PART II -- OTHER
                                   INFORMATION

Item 1.  Legal Proceedings.

The  Company is subject to  litigation  surrounding  the  non-payment  of former
accountants,  Sweeney & Gates,  Co. The Company is in default of lease  payments
for rent.

In the 2nd quarter of 2001,  a judgment  was entered  against the company in the
amount of approximately $31,000 to a former employee.

Higher Plane, Ltd. has filed an action against the Company seeking approximately
$23,000 in connections with leasehold improvements.

Science Plus, Ltd. has filed an action against the Company seeking approximately
$9,000 in connection with development expenses.

Science Plus, Ltd. has

The Company

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

A Form 8-K,  required to be filed  indicating  a change in  accountants  for the
Company,  is currently  late. The Company intends to file as soon as the consent
of a named expert can be obtained from a previous accountant.


                                       10
<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/ Ian Pallett
-------------------
        Ian Pallett, President



Date:   August 20, 2001



                                       11
<PAGE>