SECURITIES & EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended                 June 30, 2001

Commission file number               0-17165

                                SUNSTYLE CORPORATION
             (Exact name of Registrant as specified in its charter)

          Florida                                              59-2905386
(State or other jurisdiction of                            (I.R.S. Employer

incorporation or organization)                             Identification No.)

          4900 Creekside Drive, Clearwater, Florida                  33760
          (Address of principal executive offices)                 (Zip Code)

Registrant's telephone number, including area            (727) 592-0299

Securities registered pursuant to Section 12(b) of the Act:

                                                       Name of each exchange
Title of each class                                    on which registered
      None                                                    None

Securities registered pursuant to Section 12(g) of the Act:

                           Common Stock (par value $.10)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or 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

Number of Common shares outstanding (June 30, 2001):            1,096,014

SUNSTYLE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

                                                  June 30,       December 31,
                                                    2001            2000
                                                -----------      -----------
                                                (Unaudited)       (Audited)

ASSETS

Cash                                            $   211,770      $   213,172
                                                ------------      -----------
                                                $   211,770      $   213,172
                                                ============     ============

LIABILITIES AND STOCKHOLDERS' DEFICIT

Note Payable to Former Parent                   $   255,000      $   255,000
Interest Payable to Former Parent                    93,452           93,452
Accounts Payable and Accrued Expenses                 1,270            3,270
                                                ------------     ------------
                                                    349,722          351,722
                                                 ------------     ------------

Stockholders' Deficit:
  Common Stock; $.10 Par Value;
    Authorized 10,000,000 Shares;
    Issued and Outstanding
    1,096,014 Shares                                109,601          109,601
  Additional Paid-In Capital                      1,341,221        1,341,221
  Accumulated Deficit                            (1,588,774)      (1,589,372)
                                                 ----------       ----------
                                                   (137,952)        (138,550)
                                                 -----------      -----------
                                                 $  211,770       $  213,172
                                                 ==========       ===========

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

SUNSTYLE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

FOR THE SIX MONTHS ENDED June 30,

                                                 2001           2000
                                              ---------       --------
Revenues:
  Interest Income                             $  4,542        $  5,512
                                              ---------       ---------
    Total Revenues                               4,542           5,512
                                              ---------       ---------
Cost and Expense:
  General and Administrative                     3,944           4,102
                                              ---------       ---------
    Total Expenses                               3,944           4,102
                                              ---------       ---------

Net Income                                    $    598        $  1,410
                                              =========        =========

Net Income Per Share                          $   .001        $   .001
                                              =========        =========
Number of Common Shares
  Outstanding                                1,096,014       1,096,014
                                             ==========      ==========

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

SUNSTYLE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

FOR THE THREE MONTHS ENDED June 30,

                                                2001           2000
                                             ---------       --------
Revenues:
  Interest Income                            $  1,990        $  2,881
                                             ---------       ---------
    Total Revenues                              1,990           2,881
                                             ---------       ---------
Cost and Expense:
  General and Administrative                      300           3,538
                                             ---------       ---------
    Total Expenses                                300           3,538
                                             ---------       ---------

Net Income (Loss)                            $  1,690        $   (657)
                                             =========       =========

Net Income (Loss) Per Share                  $   .001        $  (.001)
                                             =========       =========
Number of Common Shares
  Outstanding                               1,096,014       1,096,014
                                            ==========      ==========

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

SUNSTYLE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

FOR THE SIX MONTHS ENDED June 30,

                                                     2001       2000
                                                   -------    -------
Cash Flow from Operating Activities:
  Net Income                                      $    598    $ 1,410
  Adjustments to Reconcile Net Income              --------    -------
    to Net Cash Provided by (Used In)
    Operating Activities:
    Decrease in Operating
      Liabilities:
        Accounts Payable and Accrued
        Expenses
                                                    (2,000)         0
                                                    -------     -------
            Total Adjustments                       (2,000)         0
                                                    -------     -------
Net Cash Provided by (Used in)
  Operating Activities                              (1,402)     1,410
                                                    -------     -------

Net Increase (Decrease) in Cash                     (1,402)     1,410

Cash at Beginning of Period                        213,172    207,696
                                                   --------   --------

Cash at End of Period                            $ 211,770  $ 209,106
                                                 =========   =========

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

SUNSTYLE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2001

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES:

  Basis of Preparation

  The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. These statements should be read in conjunction with the financial statements and notes thereto included in the Company's Form 10-K for the year ended December 31, 2000. In the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to summarize fairly the Company's financial position and results of operations. The results of operations for the period may not be indicative of results to be expected for the year.

  Reclassification

  Certain items in the 2000 financial statements have been reclassified for comparative purposes to conform with the financial statement presentation used in the 2001 statements.

  Federal and State Income Taxes

  Substantial losses have been sustained by the Company, which raises considerable doubt as to its ability to continue operations. As a result of the above, it is unlikely that the Company will be able to benefit from the approximately $2,879,000 in tax loss carry forwards available as of December 31, 2000. Therefore, no provision has been made in these statements for any deferred tax benefit.

NOTE 2 - CONTINGENCIES AND OTHER EVENTS:

The Company is currently negotiating the settlement of its outstanding debt to its former Parent. Although it is possible a settlement could result in the transfer of essentially all remaining assets to its former Parent, the effect of a final settlement cannot be determined at this time.

In addition to the uncertainty discussed above, the Company has sustained substantial net losses and has a deficit net worth at June 30, 2001 of $137,952. These issues raise considerable doubt as to the Company's ability to continue operations. Management has not adopted a plan of liquidation and is currently exploring several possibilities including selling a majority interest in the Company. The consolidated financial statements do not include any adjustments that may result from any of the above events.

SUNSTYLE CORPORATION AND SUBSIDIARIES

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

June 30, 2001

Results of Operations

  For the Six Months Ended June 30, 2001 and 2000:

  Interest income decreased from $5,512 for the six months ended June 30, 2000, to $4,542 for the six months ended June 30, 2001. General and administrative expenses decreased from $4,102 for the six months ended June 30, 2000, to $3,944 for the six months ended June 30, 2001. As a result of the above, the Company had net income of $598 in 2001 compared to net income of $1,410 in 2000.

  For the Three Months Ended June 30, 2001 and 2000:

  Interest income decreased from $2,881 for the three months ended June 30, 2000, to $1,990 for the three months ended June 30, 2001. General and administrative expenses decreased from $3,538 for the three months ended June 30, 2000, to $300 for the three months ended June 30, 2001. As a result of the above, the Company had net income of $1,690 in 2001 compared to a net loss of $657 in 2000.

Liquidity and Capital Resources

  Due to continuing losses in a depressed market, the Company ceased construction activities and terminated all employees during May of 1991. All remaining real estate assets were sold.

  The Company's liabilities are primarily to its former Parent in the form of an unsecured note ($255,000), interest on the note and other payables. The Company is currently negotiating the settlement of its outstanding debt to its former Parent.

  In addition to the uncertainty discussed above, the Company has sustained substantial net losses and has a deficit net worth at June 30, 2001, of $137,952. These issues raise considerable doubt as to the Company's ability to continue operations. Management has not adopted a plan of liquidation. The consolidated financial statements do not include any adjustments that may result from any of the above events.

SIGNATURES

  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.

                                   SUNSTYLE CORPORATION
                                      (Registrant)

Date: September 25, 2002           By:/s/Ralph W. Quartetti
                                   Ralph W. Quartetti, President
                                   Chief Executive Officer and
                                   Chief Financial Officer

SUNSTYLE CORP 10-Q