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, 1997

                                       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, 1997

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, 1997 (Unaudited)

          Condensed  Consolidated  Statements  of Operations - Nine months ended
          September 30, 1997 and 1996 (Unaudited)

          Condensed  Consolidated  Statements of Operations - Three months ended
          September 30, 1997 and 1996 (Unaudited)

          Condensed  Consolidated  Statements  of Cash Flows - Nine months ended
          September 30, 1997 and 1996 (Unaudited)

          Notes to Condensed Consolidated Financial Statements Nine months ended
          September 30, 1997 and 1996 (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, 1997
                                          ------------------
ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                   $1,416,996
  Accounts receivable                             36,472
  Notes and other receivables                     27,058
  Inventories                                      3,561
  Prepaid expenses and
    other current assets                          14,018
                                              ----------
            Total current assets               1,498,105
                                              ----------

PROPERTY AND EQUIPMENT, net                      132,220
                                              ==========

OTHER ASSETS:
  Operating equipment, net                        10,053
  Deposits                                         5,000
                                              ----------

            Total other assets                    15,053
                                              ----------

                                              $1,645,378
                                              ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                            $    6,272
  Accrued expenses                                36,991
  Debentures payable                             154,200
  Accrued taxes payable                           12,049
                                              ----------

            Total current liabilities            209,512
                                              ----------

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

LONG TERM LIABILITIES:                            59,883
                                              ----------

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                                     (3,945,441)
                                              ---------- 
                                               1,375,423
                                              ----------
                                              $1,645,378
                                              ==========

See notes to condensed consolidated financial statements.

                                        3

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

                                           Nine months ended
                                              September 30,
                                            1997         1996
Revenues:
    Rooms                               $  697,702    $  735,275
    Other                                   16,237        17,366
    Interest                                47,580        27,543
                                        ----------    ----------

         Total revenues                    761,519       780,184
                                        ----------    ----------

Costs and expenses:
    General, administrative
      and sundry                           379,824       382,863
    Departmental                           222,286       234,336
    Depreciation and amortization           39,209        38,676
    Energy costs                            18,142        12,157
    Lease rentals                          139,986       146,168
    Marketing                               15,765        18,582
    Property operation
      and maintenance                       19,973        17,872
    Provision for bad debt                  13,122         1,800
                                        ----------    ----------

                                           848,307       852,454

Net (loss)                              $  (86,788)   $  (72,270)
                                        ==========    ==========

Income per common share:

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

Weighted average number of common
  shares outstanding                     5,591,367     3,781,148
                                        ==========    ==========

See notes to condensed consolidated financial statements.

                                        4

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

                                           Three months ended
                                              September 30,
                                            1997         1996
Revenues:
    Rooms                               $  185,067    $  229,113
    Other                                    6,964         4,975
    Interest                                17,380        12,502
                                        ----------    ----------

         Total revenues                    209,411       246,590
                                        ----------    ----------

Costs and expenses:
    General, administrative
      and sundry                           120,212       175,176
    Departmental                            73,030        82,829
    Depreciation and amortization           13,283        12,844
    Energy costs                             6,776         4,846
    Lease rentals                           39,291        44,937
    Marketing                                4,155         5,382
    Property operation
      and maintenance                        7,490         7,446
    Provision for bad debt                  12,522           600
                                        ----------    ----------

                                           276,759       334,060
                                        ----------    ----------

Net (loss)                              $  (67,348)   $  (87,470)
                                        ==========    ==========

Income per common share:

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

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

See notes to condensed consolidated financial statements.

                                        5

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

                                                  Nine months ended
                                                    September 30,
                                                   1997          1996

Cash flows from operating activities:
  Net (loss)                                  $  (86,788)    $  (72,270)
  Adjustments to reconcile net (loss)
  to net cash provided by (used in)
  operating activities:
   Depreciation and amortization                  39,209         38,676
   Provision for bad debts                        13,122          1,800
Decrease (increase) in assets:
    Accounts receivable                              997         (7,761)
    Inventories                                    2,839          2,462
    Prepaid expenses and other
           current assets                        108,461         (6,773)
    Notes receivable                              54,798        (28,526)
    Other assets                                    (524)        (1,407)
    Deposits                                      (5,000)      (260,000)
Increase (decrease) in liabilities:
    Accounts payable                               4,298          3,137
    Accrued expenses                             (26,752)       (35,795)
    Accrued taxes payable                         12,049         10,711
                                              ----------     ----------
    Net cash provided by (used in)
    operating activities                         116,709       (355,746)
                                              ----------     ----------

Cash flows from investing activities:
  Purchases of property and equipment            (17,834)        (4,676)
                                              ----------     ----------
  Net cash (used in)
  investing activities:                          (17,834)        (4,476)
                                              ----------     ----------

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

Net increase in cash and cash
equivalents                                       98,875        439,578
Cash, beginning of period                      1,318,121        644,956
                                              ----------     ----------
Cash, end of period                           $1,416,996     $1,084,534
                                              ==========     ==========

See notes to condensed consolidated financial statements.

                                        6

                       EXTECH CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
            NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996 (UNAUDITED)

1.   The Condensed  Consolidated  Balance  Sheet as of September  30, 1997,  the
     Condensed  Consolidated  Statements  of  Operations  for the three and nine
     months ended  September  30, 1997 and 1996 and the  Condensed  Consolidated
     Statements  of Cash Flows for the nine months ended  September 30, 1997 and
     1996 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, 1997, results of operations for the
     three and nine months ended  September 30, 1997 and 1996 and cash flows for
     the nine months ended  September  30, 1997 and 1996.  This report should be
     read in conjunction with the Company's Annual Report on Form 10-KSB for the
     year ended December 31, 1996.

2.   The  results  of  operations  and  cash  flows  for the nine  months  ended
     September  30,  1997 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, 1997 AND 1996

Results of Operations:

The Company's net loss for the nine months ended  September 30, 1997 was $86,788
as compared to a net loss of $72,270 for the nine  months  ended  September  30,
1996.  The total  revenues  for the nine  months  ended  September  30, 1997 was
$18,665  lower than the total  revenues for the nine months ended  September 30,
1996.  The increased  loss for 1997 as compared to 1996 was primarily the result
of the lower revenues for the current year as well as the Company's write off of
its loan receivable from Transcends Telecom Corporation.

Liquidity and Capital Resources:

As of  September  30,  1997,  the  Company  had  $1,416,996  in  cash  and  cash
equivalents  and a working  capital  surplus of  $1,288,593.  As of December 31,
1996,  the Company had  $1,318,121  in cash and cash  equivalents  and a working
capital  surplus of $1,263,038.  The increase in cash and cash  equivalents  was
primarily  the result of cash  generated  from  operating  activities  for 1997,
including the receipt of $77,652 in royalty payments during the first quarter of
1997  (which  royalty  payments  were  recognized  as revenue in 1996),  and the
receipt of $33,308 in  payments  from  Robeson  Industries  Corp.  pursuant to a
certain promissory note.

The increase in working capital was primarily the result of the increase in cash
and cash  equivalents and the  reclassification  of $59,883 of certain  disputed
rental obligations of the Company's wholly-owned subsidiary,  IAH, Inc., as long
term liabilities, rather than as accrued expenses.

The Company did not have any material commitments for capital expenditures as of
September  30,  1997;  however,  the Company is  continuing  to explore  various
business opportunities. No definitive arrangements are currently in place and no
assurances can be given that any such transaction will be entered into.

                                        8

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 amended1

               3(b) By-laws, as amended2

               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  Quarterly Report
on Form 10-QSB for the quarter  ended June 30, 1997 and  incorporated  herein by
reference.

                                        9

                                   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: November 12, 1997                    By:/s/ Morton L. Certilman
                                              -----------------------
                                              MORTON L. CERTILMAN
                                              President (Chief Operating Officer
                                              and Principal Financial Officer)

                                       10

  

                     5
I
     The schedule  contains  summary  financial  information  extracted from the
financial  Statements  and is  qualified  in its  entirety by  reference to such
financial statements.

                                   1
                                     1

                   9-MOS
                              Dec-31-1997
                                 Jan-01-1997
                                   Sep-30-1997
                                1
                                         1,416,996
                                   0
                                  63,530
                                   0
                                    3,561
                               1,498,105
                                         132,220
                                 39,209
                                 1,645,378
                          209,512
                                        0
                          0
                                    0
                                       55,914
                                     5,264,950
                   1,645,378
                                        0
                               761,519
                                          0
                                  848,307
                               0
                               0
                             0
                                (86,788)
                                   0
                            (86,788)
                                 0
                                0
                                      0
                                   (86,788)
                                  (.02)
                                  (.02)