United States

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-QSB

Quarterly Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

INOTEK Technologies Corp.
(Exact name of registrant as specified in its charter)

Registrant’s telephone number including area code, 972-243-7000.

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

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 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 ___

4,854,088 shares of common stock, $.01 par value (the issuer’s only class of common stock), were outstanding as of November 30, 2000.

INOTEK Technologies Corp.

INDEX

INOTEK Technologies Corp.

Balance Sheets

See accompanying notes

1

INOTEK Technologies Corp.

Statements of Operations

(unaudited)

See accompanying notes

2

INOTEK Technologies Corp.

Statements of Operation

(unaudited)

See accompanying notes

3

INOTEK Technologies Corp.

Statements of Cash Flows

(unaudited)

See accompanying notes

4

INOTEK Technologies Corp.
Notes to Financial Statements
Six Months Ended November 30, 2000
(UNAUDITED)

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Six Months ended November 30, 2000 Compared to Six Months ended November 30, 1999

The Company’s total sales decreased 3.3% or $312,753 to $9,173,415 for the six months ended November 30, 2000 from $9,486,168 for the same period of the prior year.

The oil and gas industry is beginning to show signs of a turnaround as the price if oil stabilized at higher levels. Improvement is most evident in the upstream process segment of this industry, which is defined as drilling, exploration and pipeline. This segment is beginning to increase its expenditures on our type of products. The downstream process segment, which is defined as the petrochemical processing plants, while operating at full capacity, is negatively affected in its profitability by the higher price of oil. Once oil stabilizes in the mid $20’s/barrel range, the downstream processing segment should begin to increase its MRO (maintenance, repair and operation) spending and some plant expansion. As the upstream and downstream business climate improves, so should that of their supply chain, which is one of our primary customer categories.

Areas of concern and of which we should be cautious are the impact of e-commerce, vendor consolidation, integrated supplier contracts and margin pressure created by a low inflation economy. We are in the process of developing our Internet strategy, expanding our product lines to compete in the integrated supply market and reducing our exposure to vendor consolidation. As for margin pressure, we are continually monitoring our costs and improving our productivity in order to compete effectively.

Sales and marketing costs during the six months of fiscal year 2001 decreased 3.3% or $47,129 compared with the same period of the previous year. General and administrative costs increased 4.4% or $50,926 during the six months ending November 30, 2000 as compared with the same period of fiscal year 2000.

Financial Condition, Liquidity and Capital Resources

Cash and cash equivalents were $485,469 and $632,970 at November 30, 2000 and May 31, 2000, respectively. At November 30, 2000 the maximum available borrowings under the revolving credit facility amounted to $500,000. The Company’s current assets exceeded its current liabilities at November 30, 2000 and May 31, 2000 by $2,788,813 and $2,948,024, respectively.

The Company’s funding requirements during the quarter were met through cash on hand and exercise of warrants by a major shareholder of the Company. On September 23, 1999, the Company secured a new agreement with Bank One, Texas, N.A. for a one-year revolving credit facility of up to $500,000. The credit line provides for borrowings based on the value of the Company’s receivables, at the bank’s prime rate plus one per cent and is secured by receivables and inventory. The Company has no material commitment for capital expenditures as of November 30, 2000.

6

Part II - Other Information

Item 1. Legal Proceedings

None pending

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

None

Item 6. Exhibits and Reports on Form 8-K

7

Signatures

Pursuant to the requirements 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.

8