UNITED STATES
                       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 September 30, 1996

                                       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 Number:  0-1665

                               EXTECH CORPORATION
        (Exact name of small business issuer as specified in its charter)

     Delaware                                        36-2476480
(State or other jurisdiction                      (I.R.S Employer
of incorporation or organization)                 Identification No.)

90 Merrick Avenue, East Meadow, New York                     11554
(Address of principal executive offices)                  (Zip Code)

                                 (516) 794-6300
              (Registrant's telephone number, including area code)

              (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.                 (X) Yes  ( ) No

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

         Indicate by check mark whether the registrant has filed all documents 
and reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.                                    (  )Yes  ( ) No

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

         Indicate  the  number of  shares  outstanding  of each of the  issuer's
classes of common stock, as of the latest practicable date.

         5,591,367 shares as of October 31, 1996

This document consists of 10 sequentially numbered pages.

                                      INDEX

                       EXTECH CORPORATION AND SUBSIDIARIES

PART I.   FINANCIAL INFORMATION

Item 1.   Financial Statements

          Condensed Consolidated Balance Sheet - September 30, 1996
          (Unaudited)

          Condensed  Consolidated  Statements  of Operations - Nine months ended
          September 30, 1996 and 1995 (Unaudited)

          Condensed Consolidated Statements of Operations - Three months
          ended September 30, 1996 and 1995 (Unaudited)

          Condensed  Consolidated  Statements  of Cash Flows - Nine months ended
          September 30, 1996 and 1995 (Unaudited)

          Notes to Condensed Consolidated Financial Statements Nine months ended
          September 30, 1996 and 1995 (Unaudited)

Item 2.   Management's Discussion and Analysis or Plan of Operation

PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings
Item 2.   Changes in Securities
Item 3.   Defaults upon Senior Securities
Item 4.   Submission of Matters to a Vote of Security Holders
Item 5.   Other Information
Item 6.   Exhibits and Reports on Form 8-K

SIGNATURES

                                        2

PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

                       EXTECH CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)

                                          September 30, 1996
                                          ------------------
ASSETS
- ------

CURRENT ASSETS:
  Cash and cash equivalents               $1,084,534
  Accounts receivable                         58,382
  Notes and other receivables                 67,706
  Inventories                                  4,728
  Prepaid expenses and
         other current assets                263,660
                                           ---------
            Total current assets           1,479,010
                                           =========

PROPERTY AND EQUIPMENT, net                 167,690
                                           --------- 

OTHER ASSETS:
  Operating equipment, net                    14,210
  Deposits                                    10,000
                                           --------- 

                  Total other assets          24,210
                                           ---------

                                          $1,670,910
                                          ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

  Accounts payable                        $    6,693
  Accrued expenses                           103,706
  Debentures payable                         154,200
  Accrued taxes payable                       10,711
                                           ---------

                                             275,310
                                           ---------

MINORITY INTEREST                                560
                                           ---------

STOCKHOLDERS' EQUITY:
  Common Stock, $.01 par value;
    authorized, 10,000,000 shares;
    issued and outstanding,
     5,591,367 shares                         55,914
  Capital in excess of par                 5,264,950
  Deficit                                 (3,925,824)
                                          ----------

                                           1,395,040
                                           ---------
                                          $1,670,910
                                          ==========

See notes to condensed consolidated financial statements.

                                        3

                       EXTECH CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

                                           Nine months ended      
                                             September 30,
                                            1996        1995
                                          ---------------------
Revenues:                      
    Rooms                                $ 735,275     $ 697,069
    Other                                   17,366        51,617
    Interest                                27,543        13,855
                                         ---------     ---------
         Total revenues                    780,184       762,541
                                         ---------     ---------

Costs and expenses:
    General, administrative
      and sundry                           382,863       274,944
    Departmental                           234,336       229,428
    Depreciation and amortization           38,676        38,312
    Energy costs                            12,157        14,303
    Lease rentals                          146,168       141,278
    Marketing                               18,582        18,815
    Property operation
      and maintenance                       17,872        11,583
    Provision for bad debt                   1,800         3,840
                                         ---------     ---------

                                           852,454       732,503
                                         ---------     ---------
Net (loss) income                      $   (72,270)    $  30,038
                                       ===========     =========

Income per common share:

    Net (loss) income                  $      (.02)    $      .01
                                       ===========     ==========

Weighted average number of common
  shares outstanding                     3,781,148     2,391,367
                                       ===========     ==========

See notes to condensed consolidated financial statements.

                                        4

                       EXTECH CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

                                           Three months ended
                                              September 30,
                                             1996         1995
                                          ----------------------
Revenues:
    Rooms                                $ 229,113     $ 244,398
    Other                                    4,975        25,985
    Interest                                12,502         5,703
                                         ---------     ---------
         Total revenues                    246,590       276,086
                                         ---------     ---------

Costs and expenses:
    General, administrative
      and sundry                           175,176        94,123
    Departmental                            82,829        80,728
    Depreciation and amortization           12,844        12,770
    Energy costs                             4,846         4,731
    Lease rentals                           44,937        48,502
    Marketing                                5,382         6,738
    Property operation
      and maintenance                        7,446         2,851
    Provision for bad debt                     600         1,740
                                         ---------     ---------

                                           334,060       252,183
                                         ---------     ---------
Net (loss) income                       $  (87,470)    $  23,903
                                        ==========     =========

Income per common share:

    Net (loss) income                  $   (   .02)    $     .01
                                        ===========    =========

Weighted average number of common
  shares outstanding                     5,591,367     2,391,367
                                        ==========    ==========

See notes to condensed consolidated financial statements.

                                        5

                       EXTECH CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

                                             Nine months ended
                                               September 30,
                                              1996        1995
                                            --------------------
Cash flows from operating activities:
  Net (loss) income                        $(72,270)   $  30,038
  Adjustments to reconcile net income
  to net cash provided by
  operating activities:
   Depreciation and amortization             38,676       38,312
   Provision for bad debts                    1,800        3,840
Decrease (increase) in assets:
    Accounts receivable                      (7,761)     (12,774)
    Inventories                               2,462        2,920
    Prepaid expenses and other
           current assets                  (256,773)      27,501
    Notes receivable                        (28,526)       4,168
    Other assets                             (1,407)      (3,961)
    Deposits                                (10,000)        -0-
Increase (decrease) in liabilities:
    Accounts payable                          3,137          107
    Accrued expenses                        (35,795)     (22,822)
    Accrued taxes payable                    10,711       11,072
                                          ----------   ---------
  Net cash(used in)provided by
  operating activities                     (355,746)      78,401
                                          ---------    ---------

Cash flows from investing activities:
  Purchases of property and equipment       ( 4,676)        (615)
                                          ----------   ---------
  Net cash (used in)
  investing activities:                     ( 4,676)        (615)
                                          ----------   ---------

Cash flows from financing activities:
 Proceeds from issuance of stock            800,000        -0-
                                          ----------   ---------
   Net cash provided by financing
   activities                               800,000        -0-
                                          ----------   ---------

Net increase in cash and cash
equivalents                                 439,578       77,786
Cash, beginning of period                   644,956      482,359
                                         -----------   ---------
Cash, end of period                      $1,084,534    $ 560,145
                                         ===========   =========

See notes to condensed consolidated financial statements.

                                        6

                       EXTECH CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
            NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 (UNAUDITED)

1.       The Condensed Consolidated Balance Sheet as of September
         30, 1996, the Condensed Consolidated Statements of
         Operations for the three and nine months ended September
         30, 1996 and 1995 and the Condensed Consolidated
         Statements of Cash Flows for the nine months ended
         September 30, 1996 and 1995 have been prepared by the
         Company without audit.  In the opinion of the Company,
         the accompanying unaudited condensed consolidated
         financial statements contain all adjustments necessary to
         present fairly its financial position as of September 30,
         1996, results of operations for the three and nine months
         ended September 30, 1996 and 1995 and cash flows for the
         nine months ended September 30, 1996 and 1995.  This
         report should be read in conjunction with the Company's
         Annual Report on Form 10-KSB for the year ended December
         31, 1995.

2.       The  results of  operations  and cash flows for the nine  months  ended
         September 30, 1996 are not necessarily  indicative of the results to be
         expected for the full year.

                                        7

                       EXTECH CORPORATION AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OR
                                PLAN OF OPERATION

                  NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995

Results of Operations:
- ----------------------

The Company's net loss for the nine months ended  September 30, 1996 was $72,270
as compared to a net income of $30,038 for the nine months ended  September  30,
1995.  Such loss was primarily the result of increased  general,  administrative
and  sundry  expenses  of  $107,919  (primarily  due to a  $54,810  increase  in
professional fees relating to, among other matters,  the transactions  discussed
below under "Recent  Developments",  a $24,375 increase in officers compensation
expense,  and a one-time  appraisal  fee of $10,000) as well as decreased  other
revenues  of $34,251  (primarily  due to the  receipt  during the 1995 period of
$19,214 in royalty  income with respect to the Company's  pipe harness clamp and
$13,468  as a final  distribution  of  proceeds  from  the  sale of the  Chicago
Executive  House  Hotel,  as compared to no revenue  from such sources in 1996).
Such  increased  expenses and decreased  other revenues were offset by increased
room revenues of $38,206 and increased interest income of $13,688.

Liquidity and Capital Resources:
- --------------------------------

As of  September  30,  1996,  the  Company  had  $1,084,534  in  cash  and  cash
equivalents  and a working  capital  surplus of  $1,203,700.  As of December 31,
1995,  the  Company  had  $644,956  in cash and cash  equivalents  and a working
capital  surplus of  $453,377.  The  increase in cash and cash  equivalents  and
working  capital  surplus  was  primarily  the  result  of  an  $800,000  equity
investment  made in June 1996 by the  President and Chairman of the Board of the
Company and another investor.

The Company did not have any material commitments for capital expenditures as of
September 30, 1996.

Recent Developments:
- --------------------

In  February  1996,  concurrently  with  the  execution  of a letter  of  intent
providing for the  acquisition  of Phone  America  International,  Inc.  ("Phone
America"),   the  Company  loaned  $50,000  to  Transcends  Telecom  Corporation
("Transcends"),  a wholly-owned subsidiary of Phone America. The note evidencing
the loan (the  "Note") was  payable in August  1996 and the payment  thereof was
secured by, among other things, a security  interest in the accounts  receivable
of  Transcends.  As a result of a default in payment by Transcends  (which,  the
Company has been advised,  has since discontinued  operations),  the Company has
foreclosed its security interest in such accounts  receivable which, the Company
believes,  exceed the amount due under the Note. No assurance can be given as to
the collectibility of such accounts receivable.

                                        8

In July 1996,  the  Company  entered  into an  agreement  for the  purchase of a
professional  sports team for a purchase price of $850,000.  The consummation of
the purchase was subject to, among other conditions, league approval of both the
transaction and the relocation of the team to Long Island. Upon execution of the
agreement,  the Company paid to the seller,  as a deposit,  the sum of $250,000,
which amount was  repayable  in the event the  transaction  was not  consummated
(other  than as a result  of a  material  default  by the  Company).  Due to the
inability to obtain  league  approval,  the  agreement  was  terminated  and, in
October 1996, the Company was repaid the $250,000 deposit.

                                        9

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
          ---------------------------------------------------

          None

Item 5.   OTHER INFORMATION
          -----------------
          None

Item 6.   EXHIBITS AND REPORTS ON FORM 8-K
          -------------------------------- 

          (a)  Exhibits
               --------

               3(a) Certificate of Incorporation, as amended 1
                    
               3(b) By-laws, as amended 2

               27   Financial Data Schedule

          (b)  Reports on Form 8-K
               -------------------

               None

- --------
         1 Denotes  document filed as an exhibit to the Company's  Annual Report
on Form 10-KSB for the year ended December 31, 1993 and  incorporated  herein by
reference.
         2 Denotes  document filed as an exhibit to the Company's  Annual Report
on Form 10-K for the year ended  December  31, 1989 and  incorporated  herein by
reference.

                                       10

                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                                            EXTECH CORPORATION

Dated:                                      By:/s/Morton L. Certilman
                                               -------------------------------
                                               MORTON L. CERTILMAN
                                               President (Chief
                                               Operating Officer and
                                               Principal Financial
                                               Officer)

                                       11

WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

                     5

                   9-mos
                              Dec-31-1996
                                 Jan-01-1996
                                   Sep-30-1996
                                0
                                         1,084,534
                                   0
                                  126,088
                                   0
                                    4,728
                               1,479,010
                                         263,660
                                 0
                                 1,670,910
                          275,310
                                        154,200
                          0
                                    0
                                       55,914
                                     1,339,126
                   1,670,910
                                        0
                               780,184
                                          0
                                  467,791
                               0
                               1,800
                             0
                                (72,270)
                                   0
                            (72,270)
                                 0
                                0
                                      0
                                   (72,270)
                                  (.02)
                                  0