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                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB


[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 ____________ to ____________

                         Commission file number 1-13412

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

                            Hudson Technologies, Inc.
           (Name of small business issuer as specified in its charter)

         New York                                                 13-3641539
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

275 North Middletown Road
Pearl River, New York                                               10965
(address of principal executive offices)                          (ZIP Code)

         Issuer's telephone number, including area code: (845) 735-6000

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

Check  whether  the issuer:  (1) has 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 X No .

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

Common stock, $0.01 par value                              5,098,820 shares
          Class                                      Outstanding at July 9, 2001

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                            Hudson Technologies, Inc.
                                      Index


                                                                           Page
Part I.     Financial Information                                         Number

            Item 1  - Consolidated Balance Sheets                            3
                        - Consolidated Statements of Operations              4
                        - Consolidated Statements of Cash Flows              5
                        - Notes to the Consolidated Financial Statements     6
            Item 2  - Management's Discussion and Analysis of Financial     10
                             Condition and Results of Operations

Part II.    Other Information

            Item 1  - Legal Proceedings                                     15
            Item 2  - Changes in Securities and Use of Proceeds             15
            Item 6  - Exhibits and Reports on Form 8-K                      16

Signatures                                                                  17


                                       2


                         Part I - FINANCIAL INFORMATION

                   Hudson Technologies, Inc. and subsidiaries
                           Consolidated Balance Sheets
         (Amounts in thousands, except for share and par value amounts)



                                                                         June 30,  December 31,
                                                                             2001          2000
                                                                             ----          ----
                                                                      (unaudited)
                                                                                 
Current assets:

     Cash and cash equivalents                                           $  1,933      $    863
     Trade accounts receivable - net of allowance for doubtful
         accounts of $185 and $154                                          4,008         2,588
     Inventories                                                            1,675         1,901
     Prepaid expenses and other current assets                                518           197
                                                                         --------      --------
          Total current assets                                              8,134         5,549

Property, plant and equipment, less accumulated depreciation                4,019         5,342
Other assets                                                                  121           105
                                                                         --------      --------
          Total Assets                                                   $ 12,274      $ 10,996
                                                                         ========      ========

Liabilities and Stockholders' Equity
Current liabilities:
    Accounts payable and accrued expenses                                $  3,511      $  3,836
    Short-term debt                                                         2,215         2,169
                                                                         --------      --------
           Total current liabilities                                        5,726         6,005
Deferred income                                                                --             6
Long-term debt, less current maturities                                     1,046         1,887
                                                                         --------      --------
           Total Liabilities                                                6,772         7,898
                                                                         --------      --------

Commitments and contingencies

Stockholders' equity:

     Preferred Stock, shares authorized 5,000,000: Series A
     Convertible Preferred Stock, $0.01 par value ($100
     liquidation preference value); shares authorized
     150,000; issued and outstanding 105,005 and 72,195                    10,500         7,219
    Common Stock, $0.01 par value; shares authorized
       20,000,000; issued outstanding 5,098,820 and 5,088,820                  51            51
    Additional paid-in capital                                             20,810        21,133
    Accumulated deficit                                                   (25,859)      (25,305)
                                                                         --------      --------
           Total Stockholders' Equity                                       5,502         3,098
                                                                         --------      --------

 Total Liabilities and Stockholders' Equity                              $ 12,274      $ 10,996
                                                                         ========      ========





See accompanying Notes to the Consolidated Financial Statements.


                                       3



                   Hudson Technologies, Inc. and subsidiaries
                      Consolidated Statements of Operations
                                   (unaudited)
         (Amounts in thousands, except for share and per share amounts)



                                                              Three month period           Six month period
                                                               ended June 30,                ended June 30,
                                                               --------------                --------------
                                                             2001           2000           2001           2000
                                                         -----------    -----------    -----------    -----------
                                                                                               
Revenues                                                      $6,867         $4,578        $11,897         $7,662
Cost of Sales                                                  4,582          2,693          8,450          4,799
                                                         -----------    -----------    -----------    -----------
Gross Profit                                                   2,285          1,885          3,447          2,863
                                                         -----------    -----------    -----------    -----------

Operating expenses:
     Selling and marketing                                       572            532          1,130          1,043
     General and administrative                                1,105          1,046          2,145          2,005
     Depreciation and amortization                               309            301            616            627
                                                         -----------    -----------    -----------    -----------
          Total operating expenses                             1,986          1,879          3,891          3,675
                                                         -----------    -----------    -----------    -----------

Operating income (loss)                                          299              6           (444)          (812)
                                                         -----------    -----------    -----------    -----------

Other income (expense):
     Interest expense                                           (126)          (129)          (251)          (246)
     Other income                                                 44            314            127            397
     Gain on sale of assets                                       --             --             14             --
                                                         -----------    -----------    -----------    -----------
        Total other income (expense)                             (82)           185           (110)           151
                                                         -----------    -----------    -----------    -----------

Income (loss) before income taxes                                217            191           (554)          (661)
Income taxes                                                      --             --             --             --
                                                         -----------    -----------    -----------    -----------
Net income (loss)                                                217            191           (554)          (661)
Preferred stock dividends                                       (187)          (122)          (346)          (244)
                                                         -----------    -----------    -----------    -----------
Income (loss) available for common shareholders                  $30            $69          $(900)         $(905)
                                                         ===========    ===========    ===========    ===========
Net income (loss) per common share - basic and diluted         $0.01          $0.01         $(0.18)        $(0.18)
                                                         ===========    ===========    ===========    ===========
Weighted average number of shares outstanding              5,097,153      5,088,820      5,092,987      5,088,320
                                                         ===========    ===========    ===========    ===========



See accompanying Notes to the Consolidated Financial Statements.



                                       4


                   Hudson Technologies, Inc. and subsidiaries
                      Consolidated Statements of Cash Flows
                Increase (Decrease) in Cash and Cash Equivalents
                                   (unaudited)
                             (Amounts in thousands)

                                                              Six month period
                                                                ended June 30,
                                                             ------------------
                                                               2001       2000
                                                             -------    -------
Cash flows from operating activities:
Net loss                                                       $(554)     $(661)
Adjustments to reconcile net loss
   to cash used by operating activities:
     Depreciation and amortization                               616        627
     Allowance for doubtful accounts                              55         15
     Gain on sale of assets                                      (14)        --
     Common stock issued for services                             --          7
     Changes in assets and liabilities:
        Trade accounts receivable                             (1,476)      (594)
        Inventories                                              226        759
        Prepaid expenses and other current assets               (320)      (204)
        Other assets                                             (16)         7
        Accounts payable and accrued expenses                   (325)      (228)
        Deferred income                                           (6)        (7)
                                                             -------    -------
          Cash used by operating activities                   (1,814)      (279)
                                                             -------    -------

Cash flows from investing activities:
Sale of property, plant and equipment                            938        (12)
Additions to property, plant and equipment                      (217)      (618)
                                                             -------    -------
          Cash provided (used) by investing activities           721       (630)
                                                             -------    -------

Cash flows from financing activities:
Proceeds from issuance of preferred stock - net                2,958         --
Proceeds from short-term debt - net                               53        246
Proceeds from long-term debt                                      --        317
Repayment of long-term debt                                     (848)      (364)
                                                             -------    -------
          Cash provided by financing activities                2,163        199
                                                             -------    -------

     Increase (decrease) in cash and cash equivalents          1,070       (710)
     Cash and equivalents at beginning of period                 863      2,483
                                                             -------    -------
          Cash and equivalents at end of period               $1,933     $1,773
                                                             =======    =======
Supplemental disclosure of cash flow information:
     Cash paid during period for interest                       $251       $246


See accompanying Notes to the Consolidated Financial Statements.


                                       5



                   Hudson Technologies, Inc. and subsidiaries
                   Notes to Consolidated Financial Statements

General

Hudson  Technologies,  Inc.,  incorporated under the laws of New York on January
11,  1991,  together  with  its  subsidiaries  (collectively,  "Hudson"  or  the
"Company"),  primarily (i) sells  refrigerants (ii) provides  RefrigerantSide(R)
Services performed at a customer's site, consisting of system decontamination to
remove moisture,  oils and other  contaminants  and (iii) provides  recovery and
reclamation of the refrigerants used in commercial air conditioning,  industrial
processing and  refrigeration  systems.  The Company operates through its wholly
owned subsidiary Hudson Technologies Company.

Note 1-  Summary of Significant Accounting Policies

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting  principles for interim financial  statements
and with the  instructions of Regulation S-B.  Accordingly,  they do not include
all the  information  and footnotes  required by generally  accepted  accounting
principles for complete financial statements. The financial information included
in the quarterly report should be read in conjunction with the Company's audited
financial  statements  and related notes thereto for the year ended December 31,
2000.  Operating results for the three and six month periods ended June 30, 2001
are not  necessarily  indicative  of the results  that may be  expected  for the
fiscal year ending December 31, 2001.

In the opinion of management, all estimates and adjustments considered necessary
for a fair  presentation have been included and all such adjustments were normal
and recurring.

Consolidation

The consolidated  financial  statements  represent all companies of which Hudson
directly or indirectly has majority ownership or otherwise controls. Significant
intercompany  accounts and  transactions  have been  eliminated.  The  Company's
consolidated   financial   statements   include  the  accounts  of  wholly-owned
subsidiaries Hudson Holdings, Inc. and Hudson Technologies Company.

Fair value of financial instruments

The  carrying  values  of  financial   instruments,   including  trade  accounts
receivable,  and accounts  payable  approximate  fair value at June 30, 2001 and
December  31,  2000,   because  of  the  relatively   short  maturity  of  these
instruments.  The carrying value of short-and  long-term debt  approximates fair
value,  based upon quoted  market rates of similar  debt issues,  as of June 30,
2001 and December 31, 2000.

Credit risk

Financial  instruments,  which potentially subject the Company to concentrations
of credit risk,  consist  principally  of temporary cash  investments  and trade
accounts  receivable.  The Company  maintains its temporary cash  investments in
highly-rated  financial  institutions.  The Company's trade accounts receivables
are due from companies  throughout the U.S. The Company  reviews each customer's
credit history before extending credit.

The Company  establishes  an allowance  for doubtful  accounts  based on factors
associated with the credit risk of specific  accounts,  historical  trends,  and
other information.

During the six months ended June 30, 2001, one customer accounted for 23% of the
Company's  revenues.  During the six months  ended June 30,  2000,  no  customer
accounted for more than 10% of the Company's  revenues.  The loss of a principal
customer or a decline in the economic  prospects  and purchases of the Company's
products or services by any such  customer  would have an adverse  effect on the
Company's financial position and results of operations.

Cash and cash equivalents

Temporary  investments  with  original  maturities  of  ninety  days or less are
included in cash and cash equivalents.


                                       6



Inventories

Inventories,  consisting  primarily of reclaimed  refrigerant products available
for sale,  are stated at the lower of cost, on a first-in  first-out  basis,  or
market.

Property, plant, and equipment

Property,  plant,  and  equipment  are  stated  at  cost;  including  internally
manufactured   equipment.   The  cost  to  complete   equipment  that  is  under
construction  is  not  considered  to be  material  to the  Company's  financial
position.  Provision  for  depreciation  is recorded  (for  financial  reporting
purposes) using the straight-line method over the useful lives of the respective
assets.  Leasehold  improvements are amortized on a straight-line basis over the
shorter of economic life or terms of the respective leases.

Due to the specialized nature of the Company's business, it is possible that the
Company's estimates of equipment useful life periods may change in the future.

Revenues and cost of sales

Revenues are recorded upon completion of service or product  shipment or passage
of title to customers in accordance  with  contractual  terms.  Cost of sales is
recorded based on the cost of products shipped or services performed and related
direct operating costs of the Company's facilities.

Income taxes

The Company  utilizes the assets and  liability  method for  recording  deferred
income  taxes,  which  provides for the  establishment  of deferred tax asset or
liability accounts based on the difference  between tax and financial  reporting
bases of certain assets and liabilities.

The Company  recognized a reserve allowance against the deferred tax benefit for
the  current  and prior  period  losses.  The tax  benefit  associated  with the
Company's net operating  loss carry  forwards  would be recognized to the extent
that the Company recognized net income in future periods.

Income (loss) per common and equivalent shares

Income (loss) per common  share,  Basic,  is calculated  based on the net income
(loss) for the period  less  dividends  on the  outstanding  Series A  Preferred
Stock,  $346,000 and $244,000 for the six month  periods ended June 30, 2001 and
2000,   respectively,   divided  by  the  weighted   average  number  of  shares
outstanding.  If dilutive,  common  equivalent  shares (common  shares  assuming
exercise of options and warrants or conversion of Preferred Stock) utilizing the
treasury stock method are considered in the  presentation  of dilutive  earnings
per share.  Diluted  loss per share was not  presented  since the effect was not
dilutive.

Estimates and Risks

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  reported  amounts of certain assets and  liabilities,  the disclosure of
contingent  assets and  liabilities,  and the results of  operations  during the
reporting period. Actual results could differ from these estimates.

The Company  participates  in an industry that is highly  regulated,  changes in
which could affect operating results. Currently the Company purchases virgin and
reclaimable  refrigerants  from  domestic  suppliers and its  customers.  To the
extent  that the  Company  is  unable  to obtain  refrigerants  on  commercially
reasonable  terms or  experiences  a decline  in demand  for  refrigerants,  the
Company could realize reductions in refrigerant  processing and possible loss of
revenues, which would have a material adverse affect on operating results.

The Company is subject to various legal  proceedings.  The Company  assesses the
merits and estimates the potential  liability,  if any,  associated with each of
these  proceedings.  To the extent that these  estimates  are not  accurate,  or
circumstances  change in the future, the Company could realize liabilities which
would have a material  adverse  affect on  operating  results and its  financial
position.


                                       7



Impairment of long-lived assets and long-lived assets to be disposed of

The Company  reviews for  impairment of  long-lived  assets  whenever  events or
changes in  circumstances  indicate that the carrying amount of an asset may not
be  recoverable.  Recoverability  of assets to be held and used is measured by a
comparison  of the  carrying  amount of the  assets to the future net cash flows
expected  to be  generated  by the asset.  If such assets are  considered  to be
impaired, the impairment to be recognized is measured by the amount by which the
carrying amount of the assets exceeds the fair value of the assets. Assets to be
disposed of are reported at the lower of the carrying  amount or fair value less
the cost to sell.

Note 2 -Stockholders Equity

On March 30, 1999, the Company completed the sale of 65,000 shares of its Series
A Preferred  Stock,  with a liquidation  value of $100 per share,  to Fleming US
Discovery  Fund III,  L.P. and Fleming US Discovery  Offshore Fund III, L.P. The
gross  proceeds from the sale of the Series A Preferred  Stock were  $6,500,000.
The Series A Preferred  Stock  converts to Common  Stock at a rate of $2.375 per
share, which was 27% above the closing market price of Common Stock on March 29,
1999.

On February 16, 2001,  the Company  completed  the sale of 30,000  shares of its
Series A Preferred Stock, with a liquidation value of $100 per share, to Fleming
US Discovery Fund III, L.P. and Fleming US Discovery Offshore Fund III, L.P. The
gross  proceeds from the sale of the Series A Preferred  Stock were  $3,000,000.
The Series A Preferred  Stock  converts to Common  Stock at a rate of $2.375 per
share,  which was 23% above the closing market price of Common Stock on February
15, 2001.

The Series A Preferred Stock has voting rights on an as-if converted  basis. The
number  of votes  applicable  to the  Series A  Preferred  Stock is equal to the
number of shares of Common Stock into which the Series A Preferred Stock is then
convertible.  However,  the holders of the Series A Preferred Stock will provide
the Chief Executive Officer and the Secretary of the Company a proxy to vote all
shares currently owned and subsequently acquired above 29% of the votes entitled
to be cast by all  shareholders  of the Company.  The Preferred  Stock carries a
dividend  rate  of  7%,  which  will  increase  to  16%,  if the  stock  remains
outstanding on or after March 31, 2004.  The  conversion  rate may be subject to
certain  antidilution  provisions.  The  Company  has  used and will use the net
proceeds  from the  issuance  of the  Series A  Preferred  Stock to  expand  its
RefrigerantSide(R) Services business and for working capital purposes.

The Company pays dividends,  in arrears,  on the Series A Preferred Stock,  semi
annually, either in cash or additional shares, at the Company's option. On March
30, 2001, the Company declared and paid, in-kind,  the dividends  outstanding on
the Series A Preferred  Stock and issued a total of 2,810  additional  shares of
its Series A Preferred  Stock in  satisfaction of the dividends due. The Company
may redeem  the Series A  Preferred  Stock on March 31,  2004  either in cash or
shares of Common Stock valued at 90% of the average  trading price of the Common
Stock for the 30 days  preceding  March 31, 2004.  In addition,  after March 30,
2001,  the Company may call the Series A Preferred  Stock if the market price of
its Common  Stock is equal to or greater than 250% of the  conversion  price and
the Common  Stock has traded  with an average  daily  volume in excess of 20,000
shares for a period of thirty consecutive days.

Note 3 - Dispositions

Effective  March  19,  1999,  the  Company  sold 75% of its stock  ownership  in
Environmental  Support  Solutions,  Inc.  ("ESS")  to one of its  founders.  The
consideration  for the Company's sale of its interest was $100,000 in cash and a
six-year  note in the amount of  $380,000.  The Company  recognized  a valuation
allowance for 100% of the note receivable.  The Company will recognize as income
the portion of the proceeds associated with the note receivable upon the receipt
of cash.  This sale did not have a material  effect on the  Company's  financial
condition or results of operations. Effective October 11, 1999, the Company sold
to three of ESS's  employees an  additional  5.4%  ownership in ESS. The Company
received $37,940 from the sale of the additional ESS stock.  Effective April 18,
2000,  ESS redeemed  the balance of the  Company's  stock  ownership in ESS. The
Company  received  cash in the amount of $188,000 from the  redemption  and such
amount was included as other income as of that date.


                                       8


Note 4 - Other Income

Other income consisted  primarily of interest  income,  lease rental income from
the Company's Ft.  Lauderdale  facility,  which was sold on March 22, 2001,  and
payments  received  from the note  receivable  from ESS. On March 22, 2001,  the
Company  sold  its Ft.  Lauderdale  property  and,  after  payment  of the  then
outstanding  mortgage and  transactional  expenses,  it received net proceeds of
approximately  $300,000.  The Company recognized a $14,000 gain from the sale of
this property.


                                       9


                   Hudson Technologies, Inc. and subsidiaries
           Management's Discussion and Analysis of Financial Condition
                            and Results of Operations


Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995

Certain  statements  contained in this section and elsewhere in this Form 10-QSB
constitute  "forward-looking  statements"  within  the  meaning  of the  Private
Securities  Litigation  Reform  Act of  1995.  Such  forward-looking  statements
involve a number of known and unknown  risks,  uncertainties  and other  factors
which may cause the actual  results,  performance or achievements of the Company
to be materially different from any future results,  performance or achievements
expressed or implied by such forward-looking  statements.  Such factors include,
but are not limited  to,  changes in the  markets  for  refrigerants  (including
unfavorable market conditions  adversely affecting the demand for, and the price
of  refrigerants),  regulatory and economic factors,  seasonality,  competition,
litigation,  the  nature of  supplier  or  customer  arrangements  which  become
available to the Company in the future,  adverse  weather  conditions,  possible
technological obsolescence of existing products and services, possible reduction
in the carrying value of long-lived assets,  estimates of the useful life of its
assets,  potential  environmental  liability,  customer  concentration and other
risks detailed in the Company's other periodic reports filed with the Securities
and Exchange Commission.  The words "believe",  "expect",  "anticipate",  "may",
"plan", and similar expressions identify forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date the statement was made.

Overview

Sales of  refrigerants  continue  to  represent  a  significant  portion  of the
Company's  revenues.  The Company believes that, in the  refrigeration  industry
overall,  there will be a trend  towards  lower sales  prices,  volume and gross
profit  margins  on  refrigerant  sales in the  foreseeable  future,  which will
continue to have an adverse effect on the Company's operating results.

The Company has changed its business  focus from sales of  refrigerants  towards
service  revenues  through  the  development  of a  service  offering  known  as
RefrigerantSide(R) Services. RefrigerantSide(R) Services are sold to contractors
and  end-users   relating  to  refrigeration   systems  in  the  commercial  air
conditioning  and  industrial  processing  industries.  These new  services  are
offered  in  addition  to  refrigerant  sales  and  the  Company's   traditional
refrigerant  management  services,  consisting  of recovery and  reclamation  of
refrigerants.  Pursuant  to this  change  in  business  focus,  the  Company  is
currently  implementing  a  strategic  business  plan,  which  provides  for the
creation of a network of service  depots and the  exiting of certain  operations
which may not support the growth of service sales.

During  1999 and 2001 the  Company  completed  sales of its  Series A  Preferred
Stock.  The net  proceeds  of these sales were used and are being used to expand
the Company's  service offering through a network of service depots that provide
a full range of the Company's on site RefrigerantSide(R) Services and to provide
working  capital.  Management  believes  that  its  RefrigerantSide(R)  Services
represent the Company's long term growth potential.  However,  while the Company
believes it will experience an increase in revenues from its  RefrigerantSide(R)
Services,  in the short term,  such an increase may not be  sufficient to offset
reductions in  refrigerant  revenue which may occur as a result of the Company's
shift in its business  focus  toward  RefrigerantSide(R)  Services.  The Company
expects  that it will  incur  additional  expenses  and  losses  during the year
related to the continued development of its depot network.

The change in business focus towards revenues generated from  RefrigerantSide(R)
Services  may cause a material  reduction  in revenues  derived from the sale of
refrigerants.  In  addition,  to the extent that the Company is unable to obtain
refrigerants on commercially reasonable terms or experiences a decline in demand
for   refrigerants,   the  Company  could  realize   reductions  in  refrigerant
processing,  and possible loss of revenues  which would have a material  adverse
effect on its operating results.

Results of Operations

Three  months ended June 30, 2001 as compared to the three months ended June 30,
2000

Revenues for the three months ended June 30, 2001 were  $6,867,000,  an increase
of $2,289,000 or 50% from the $4,578,000  reported  during the  comparable  2000
period.  The increase in revenues was primarily  attributable  to an increase in
refrigerant revenues and to an increase in RefrigerantSide(R) Services revenues.
The  increase  in  refrigerant  revenues  is related to an increase in the sales
price of certain  refrigerants  as compared to the 2000 period.  The increase in
RefrigerantSide(R)  Service revenues  reflects growth through the development of
the Company's services through its depot network.


                                       10



Cost of sales for the three  months  ended  June 30,  2001 were  $4,582,000,  an
increase of $1,889,000 or 70% from the $2,693,000 reported during the comparable
2000 period.  The increase in cost of sales was primarily due to a higher volume
of  refrigerant  sales.  As a  percentage  of sales,  cost of sales  were 67% of
revenues for the three month period  ended June 30, 2001,  an increase  from the
59% reported for the comparable 2000 period.  The increase in cost of sales as a
percentage of revenues was primarily  attributable  to an increase in the volume
of refrigerant  sales and associated  freight costs and supply costs  associated
with the RefrigerantSide(R) Service revenues.

Operating expenses for the three months ended June 30, 2001 were $1,986,000,  an
increase of $107,000 or 6% from the  $1,879,000  reported  during the comparable
2000 period.  The increase was primarily  attributable to an increase in selling
expenses  associated  with the  expansion  of the  Company's  RefrigerantSide(R)
Service offering and an increase in insurance costs.

Other income  (expense) for the three months ended June 30, 2001 was  ($82,000),
as compared to the $185,000  reported during the comparable  2000 period.  Other
income (expense) includes interest expense of $126,000 and $129,000 for 2001 and
2000, respectively,  offset by other income of $44,000 and $314,000 for 2001 and
2000, respectively.  The decrease in interest expense is primarily attributed to
an  interest  rate  reduction  during 2001 as  compared  to 2000.  Other  income
primarily relates to interest income and proceeds from the sale of Environmental
Support Solutions,  Inc. ("ESS"). During the 2000 period, the Company recognized
an additional  $188,000 of other income from the sale of its remaining ownership
interest in ESS.

No  income  taxes  for the  three  months  ended  June 30,  2001  and 2000  were
recognized.  The Company recognized a reserve allowance against the deferred tax
benefit  for the 2001 and 2000  losses.  The tax  benefits  associated  with the
Company's net operating  loss carry  forwards  would be recognized to the extent
that the  Company  recognizes  net  income in future  periods.  A portion of the
Company's net operating loss carry forwards are subject to annual limitations.

Net income for the three months ended June 30, 2001 was $217,000, as compared to
net income of $191,000 reported during the comparable 2000 period.  The increase
in the net  income  for the  2001  period  as  compared  to 2000  was  primarily
attributable to a higher volume of refrigerant revenues offset by an increase in
operating   expenses.   In  addition,   during  the  2000  period  there  was  a
non-recurring  gain  of  $188,000  from  the  Company's  sale  of its  remaining
ownership interest in ESS stock.

Six months ended June 30, 2001 as compared to the six months ended June 30, 2000

Revenues for the six months ended June 30, 2001 were $11,897,000, an increase of
$4,235,000  or 55% from the  $7,662,000  reported  during  the  comparable  2000
period.  The increase in revenues was primarily  attributable  to an increase in
refrigerant revenues and to an increase in RefrigerantSide(R) Services revenues.
The  increase  in  refrigerant  revenues  is related to an increase in the sales
price of certain  refrigerants  as compared to the 2000 period.  The increase in
RefrigerantSide(R)  Service revenues  reflects growth through the development of
the Company's services through its depot network.

Cost of sales for the six months ended June 30, 2001 was $8,450,000, an increase
of $3,651,000 or 76% from the $4,799,000  reported  during the  comparable  2000
period.  The  increase in cost of sales was  primarily  due to higher  volume of
refrigerant  sales. As a percentage of sales,  cost of sales was 71% of revenues
for the six-month  period ended June 30, 2001, an increase from the 63% reported
for the comparable 2000 period. The increase in cost of sales as a percentage of
revenues was primarily  attributable to an increase in the volume of refrigerant
sales and associated  freight costs and payroll and supply costs associated with
the RefrigerantSide(R) Service revenues.

Operating  expenses for the six months ended June 30, 2001 were  $3,891,000,  an
increase of $216,000 or 6% from the  $3,675,000  reported  during the comparable
2000 period.  The increase was primarily  attributable to an increase in selling
expense  associated  with  the  expansion  of the  Company's  RefrigerantSide(R)
Service offering, professional fees and travel expenses.

Other income (expense) for the six months ended June 30, 2001 was ($110,000),  a
decrease of $261,000  from the  $151,000  reported  during the  comparable  2000
period.  Other  income  (expense)  includes  interest  expense of  $251,000  and
$246,000 for 2001 and 2000 respectively,  offset by other income of $141,000 and
$397,000 for 2001 and 2000  respectively.  The  increase in interest  expense is
primarily  attributed to an increase in outstanding  indebtedness during 2001 as
compared to 2000. Other income primarily relates to interest income and proceeds
from  the sale of ESS.  During  the  2000  period,  the  Company  recognized  an
additional  $188,000 of other  income from the sale of its  remaining  ownership
interest in ESS.

No income taxes for the six months ended June 30, 2001 and 2000 were recognized.
The Company  recognized a reserve allowance against the deferred tax benefit for
the 2001 and 2000 losses.  The tax benefits  associated  with the  Company's net


                                       11



operating loss carry forwards would be recognized to the extent that the Company
recognizes  net  income  in  future  periods.  A portion  of the  Company's  net
operating loss carry forwards are subject to annual limitations.

Net loss for the six months ended June 30, 2001 was $554,000, as compared to the
net loss of $661,000  reported during the comparable 2000 period.  The reduction
in the net  loss  for  the  2001  period  as  compared  to  2000  was  primarily
attributable to a higher volume of refrigerant revenues offset by an increase in
operating   expenses.   In  addition,   during  the  2000  period  there  was  a
non-recurring  gain  of  $188,000  from  the  Company's  sale  of its  remaining
ownership interest in ESS stock.

Liquidity and Capital Resources

At June 30, 2001, the Company had working capital of  approximately  $2,408,000,
an  increase  of  $2,864,000  from the  working  capital  deficit of $456,000 at
December 31, 2000. The increase in working capital is primarily  attributable to
the sale of the  Company's  Series  A  Preferred  Stock  and the sale of its Ft.
Lauderdale  property offset by the net loss incurred during the six month period
ended June 30, 2001. A principal  component of current  assets is inventory.  At
June 30, 2001, the Company had inventories of $1,675,000, a decrease of $226,000
or 12% from the $1,901,000 at December 31, 2000.  The Company's  ability to sell
and replace its  inventory  and the prices at which it can be sold are  subject,
among  other  things,   to  current  market   conditions  (See  Seasonality  and
Fluctuations in Operating  Results).  The Company has historically  financed its
working capital requirements through cash flows from operations, the issuance of
debt and equity securities and bank borrowings.

Net cash used by  operating  activities  for the six months ended June 30, 2001,
was $1,814,000  compared with net cash used by operating  activities of $279,000
for the  comparable  2000  period.  Net cash used by  operating  activities  was
primarily attributable to the net loss for the 2001 period, an increase in trade
receivables and a reduction in accounts payable and accrued expenses.

Net cash  provided by  investing  activities  for the six months  ended June 30,
2001,  was  $721,000  compared  with net cash used by  investing  activities  of
$630,000  for the  prior  comparable  2000  period.  The net  cash  provided  by
investing  activities  was  due to the  Company's  sale  of its  Ft.  Lauderdale
property offset by equipment additions  primarily  associated with the expansion
of the Company's depot network.

Net cash  provided by  financing  activities  for the six months  ended June 30,
2001, was $2,163,000 compared with net cash provided by financing  activities of
$199,000  for the  comparable  2000 period.  The net cash  provided by financing
activities for the 2001 period primarily  consisted of the sale of the Company's
Series A Preferred Stock offset by the repayment of long- term debt.

At June 30, 2001, the Company had cash and equivalents of $1,933,000.

The Company had  property  and a building  located in Ft.  Lauderdale  which was
leased at $13,781 per month to an  unaffiliated  third party. On March 22, 2001,
the Company  completed the sale of the property to an unaffiliated  third party.
After  payment  of the  then  outstanding  mortgage  balance  and  transactional
expenses,  the Company  received  net  proceeds of  approximately  $300,000  and
recognized a $14,000 gain from the sale of this property.

The Company  has  entered  into a credit  facility  with The CIT  Group/Business
Credit,  Inc.  ("CIT"),  which  provides for  borrowings to the Company of up to
$6,500,000. The facility requires minimum borrowings of $1,250,000. The facility
provides  for a  revolving  line of credit and a term loan and  expires in April
2003.  Advances  under the  revolving  line of credit are  limited to (i) 80% of
eligible trade accounts  receivable  and (ii) 50% of eligible  inventory  (which
inventory amount shall not exceed 200% of eligible trade accounts  receivable or
$3,250,000).  As of June 30,  2001,  the  Company  had  availability  under  its
revolving line of credit of approximately $1,786,000.  Advances available to the
Company  under the term loan are based on existing  fixed asset  valuations  and
future advances under the term loan up to an additional  $1,000,000 are based on
future  capital  expenditures.  During 1999,  the Company  received  advances of
$166,000  based on capital  expenditures.  As of June 30, 2001,  the Company has
approximately   $582,000   outstanding  under  its  term  loans  and  $1,788,000
outstanding  under its revolving line of credit.  The facility bears interest at
the prime rate plus 1.5%, 8.25% at June 30, 2001, and  substantially  all of the
Company's  assets are pledged as collateral for obligations to CIT. In addition,
among other things, the agreements  restrict the Company's ability to declare or
pay any dividends on its capital  stock.  The Company has obtained a waiver from
CIT to permit the payment of dividends on its Series A Preferred Stock.

Effective  March 19, 1999, the Company sold 75% of its stock ownership in ESS to
one of ESS's founders.  The consideration for the Company's sale of its interest
was  $100,000 in cash and a six-year 6% interest  bearing  note in the amount of
$380,000.  The Company  will  recognize  as income the  portion of the  proceeds
associated  with the note receivable upon the receipt of cash. This sale did not
have a  material  effect on the  Company's  financial  condition  or  results of
operations. Effective


                                       12



October 11,  1999,  the Company sold to three of ESS's  employees an  additional
5.4%  ownership  in ESS.  The  Company  received  $37,940  from the sale of this
additional ESS stock.  Effective April 18, 2000, ESS redeemed the balance of the
Company's  stock  ownership in ESS. The Company  received  cash in the amount of
$188,000 from the redemption.

The Company is continuing to evaluate opportunities to rationalize its operating
facilities  based on its emphasis on the  expansion of its service  sales.  As a
result, the Company may discontinue  certain operations which it believes do not
support the growth of service  sales and, in doing so, may incur future  charges
to exit certain operations.

On March 30, 1999, the Company completed the sale of 65,000 shares of its Series
A Preferred  Stock,  with a liquidation  value of $100 per share,  to Fleming US
Discovery  Fund III,  L.P. and Fleming US Discovery  Offshore Fund III, L.P. The
gross  proceeds from the sale of the Series A Preferred  Stock were  $6,500,000.
The Series A Preferred  Stock  converts to Common  Stock at a rate of $2.375 per
share, which was 27% above the closing market price of Common Stock on March 29,
1999.

On February 16, 2001,  the Company  completed  the sale of 30,000  shares of its
Series A Preferred Stock, with a liquidation value of $100 per share, to Fleming
US Discovery Fund III, L.P. and Fleming US Discovery Offshore Fund III, L.P. The
gross  proceeds from the sale of the Series A Preferred  Stock were  $3,000,000.
The Series A Preferred  Stock  converts to Common  Stock at a rate of $2.375 per
share,  which was 23% above the closing market price of Common Stock on February
15, 2001.

The Series A Preferred Stock has voting rights on an as-if converted  basis. The
number  of votes  applicable  to the  Series A  Preferred  Stock is equal to the
number of shares of Common Stock into which the Series A Preferred Stock is then
convertible.  However,  the holders of the Series A Preferred Stock will provide
the Chief Executive Officer and the Secretary of the Company a proxy to vote all
shares currently owned and subsequently acquired above 29% of the votes entitled
to be cast by all  shareholders  of the  Company.  The Series A Preferred  Stock
carries a dividend  rate of 7%, which will increase to 16%, if the stock remains
outstanding on or after March 31, 2004.  The  conversion  rate may be subject to
certain  antidilution  provisions.  The  Company  has  used and will use the net
proceeds  from the  issuance  of the  Series A  Preferred  Stock to  expand  its
RefrigerantSide(R) Services business and for working capital purposes.

The Company pays dividends,  in arrears,  on the Series A Preferred Stock,  semi
annually, either in cash or additional shares, at the Company's option. On March
30, 2001, the Company declared and paid, in-kind,  the dividends  outstanding on
the Series A Preferred  Stock and issued a total of 2,810  additional  shares of
its Series A Preferred  Stock in  satisfaction of the dividends due. The Company
may redeem  the Series A  Preferred  Stock on March 31,  2004  either in cash or
shares of Common Stock valued at 90% of the average  trading price of the Common
Stock for the 30 days  preceding  March 31, 2004.  In addition,  after March 30,
2001 the Company may call the Series A  Preferred  Stock if the market  price of
its Common  Stock is equal to or greater than 250% of the  conversion  price and
the Common  Stock has traded  with an average  daily  volume in excess of 20,000
shares for a period of thirty consecutive days.

The Company has provided certain  registration,  preemptive and tag along rights
to the  holders of the Series A  Preferred  Stock.  The  holders of the Series A
Preferred Stock,  voting as a separate class,  have the right to elect up to two
members to the Company's Board of Directors or at their option,  to designate up
to two advisors to the  Company's  Board of Directors who will have the right to
attend and observe  meetings of the Board of Directors.  Currently,  the holders
have elected two members to the Board of Directors.

The Company believes that its anticipated  cash flow from  operations,  together
with the proceeds from the sale of its Preferred Stock, and its credit facility,
will be sufficient to satisfy the Company's  working  capital  requirements  and
proposed expansion of its service business for the foreseeable future.  However,
any  unanticipated  expenses  or  failure  to  obtain  revenues  expected  to be
generated from the Company's depots or additional expansion or acquisition costs
that may arise in the future would affect the Company's  future  capital  needs.
There can be no assurances  that the Company's  proposed or future plans will be
successful,  and as such, the Company may require additional capital sooner than
anticipated.

Reliance on Suppliers and Customers

The  Company's  financial  performance  is in part  dependent  on its ability to
obtain  sufficient  quantities  of  virgin  and  reclaimable  refrigerants  from
manufacturers,  wholesalers,  distributors,  bulk gas  brokers,  and from  other
sources within the air conditioning and refrigeration and automotive aftermarket
industries, and on corresponding demand for refrigerants. To the extent that the
Company is unable to obtain sufficient quantities of refrigerants in the future,
or resell reclaimed  refrigerants at a profit, the Company's financial condition
and results of operations would be materially adversely affected.


                                       13



During the six months ended June 30, 2001, one customer accounted for 23% of the
Company's  revenues.  During the six months  ended June 30,  2000,  no  customer
accounted for more than 10% of the Company's  revenues.  The loss of a principal
customer or a decline in the economic  prospects  and purchases of the Company's
products or services by any such customer  would have a material  adverse effect
on the Company's financial position and results of operations.

Seasonality and Fluctuations in Operating Results

The  Company's  operating  results  vary  from  period  to period as a result of
weather   conditions,   requirements  of  potential   customers,   non-recurring
refrigerant and service sales,  availability  and price of refrigerant  products
(virgin or  reclaimable),  changes in reclamation  technology  and  regulations,
timing in introduction and/or retrofit or replacement of CFC-based refrigeration
equipment  by  domestic  users of  refrigerants,  the rate of  expansion  of the
Company's  operations,   and  by  other  factors.  The  Company's  business  has
historically  been seasonal in nature with peak sales of refrigerants  occurring
in the first half of each year.  During past  years,  the  seasonal  decrease in
sales of refrigerants  have resulted in additional losses during the second half
of the year. Delays in securing adequate supplies of refrigerants at peak demand
periods, lack of refrigerant demand,  increased expenses,  declining refrigerant
prices and a loss of a principal  customer could result in  significant  losses.
There can be no assurance  that the foregoing  factors will not occur and result
in a material adverse effect on the Company's financial position and significant
losses. With respect to the Company's  RefrigerantSide(R) Services, to date, the
Company has not  identified  any seasonal  pattern.  However,  the Company could
experience a seasonal element to this portion of its business in the future.


                                       14



                           PART II - OTHER INFORMATION


Item 1. Legal Proceedings

In June  1998,  United  Water of New York Inc.  ("United")  commenced  an action
against  the  Company in the  Supreme  Court of the State of New York,  Rockland
County,  seeking damages in the amount of $1.2 million allegedly  sustained as a
result of the prior  contamination  of certain of United's  wells  within  close
proximity to the Company's Hillburn, New York facility.

On April 1, 1999, the Company reported a release at the Company's Hillburn,  New
York facility of approximately  7,800 lbs. of R-11, as a result of a failed hose
connection to one of the Company's outdoor storage tanks allowing liquid R-11 to
discharge from the tank into the concrete  secondary  containment  area in which
the subject tank was located.

Between  April  1999 and May  1999,  with  the  approval  of the New York  State
Department of Environmental  Conservation  ("DEC"),  the Company constructed and
put into operation a remediation system at the Company's facility to remove R-11
levels in the groundwater under and around the Company's  facility.  The cost of
this remediation system was $100,000.

In July 1999,  United  amended its  complaint in the Rockland  County  action to
allege facts relating to, and to seek damages allegedly resulting from the April
1, 1999 R-11 release.

In June 2000,  the Rockland  County  Supreme Court  approved a settlement of the
Rockland County action  commenced by United.  Under the Settlement,  the Company
paid to United the sum of $1,000,000 upon Court approval of the settlement,  and
has agreed to make monthly  payments in the amount of $5,000 for a minimum of 18
months, and up to a maximum of 42 months following the settlement.  The proceeds
of the  settlement  were  required  to be  used  to fund  the  construction  and
operation by United of a new remediation  tower, as well as for the continuation
of temporary remedial measures  implemented by United and that have successfully
contained the spread of R-11. The remediation  tower was completed in March 2001
and is designed to treat all of United's impacted wells and restore the water to
New York State  drinking water  standards for supply to the public.  The Company
carries  $1,000,000  of pollution  liability  insurance  per  occurrence  and in
connection with the settlement  exhausted all insurance proceeds available under
all applicable policies.

In June 2000,  the Company signed an Order on Consent with the DEC regarding all
past  contamination  of the United well field.  Under the Order on Consent,  the
Company  agreed to pay a $10,000  penalty  relating to the April 1, 1999 release
and agreed to continue operating the remediation system installed by the Company
at its Hillburn facility in May 1999 until remaining  groundwater  contamination
has been effectively abated. In May 2001, the Company signed an amendment to the
Order on  Consent  with the DEC,  pursuant  to which the  Company  has agreed to
install  one  additional  monitoring  well and  modify  the  Company's  existing
remediation  system to incorporate a second recovery well. During the six months
ended June 30, 2001, the Company  recognized  $75,000 in additional  remediation
costs in connection with this matter.

In May 2000, the Company's  Hillburn facility was nominated by the United States
Environmental  Protection Agency ("EPA") for listing on the National  Priorities
List ("NPL"), pursuant to the Comprehensive Environmental Response, Compensation
and Liability Act of 1980  ("CERCLA').  The Company believes that the agreements
reached  with the DEC and United  Water,  together  with the  reduced  levels of
contamination  present in the United Water wells, make such listing  unnecessary
and  counterproductive.  Hudson  submitted  opposition to the listing within the
sixty-day  comment  period.  To date, no final decision has been made by the EPA
regarding the proposed listing.

There can be no  assurance  that the  effects of the April 1, 1999 R-11  release
will not spread  beyond the United  Water well  system and impact the Village of
Suffern's wells or that the ultimate  outcome of such a spread of  contamination
will not have a material adverse effect on the Company's financial condition and
results of operations.  There is also no assurance that the Company's opposition
to the EPA's listing will be successful,  or that the ultimate outcome of such a
listing  will not have a  material  adverse  effect on the  Company's  financial
condition and results of operations.

Item 2. Changes in Securities and Use of Proceeds

During the three  months  ended June 30, 2001,  the Company  granted  options to
purchase 71,000 shares of common stock to certain employees pursuant to its 1997
Stock Option  Plan.  With  respect to these  grants and  issuances,  the Company
relied on the  exemption  from  registration  provided by Section 4(2) under the
Securities  Act of 1933 as  transactions  by an issuer  not  involving  a public
offering.



                                       15



Item 6. Exhibits and Reports on Form 8-K


     (a)  The following exhibits are attached to this report: None

     (b)  No report on Form 8-K was filed  during  the  quarter  ended  June 30,
          2001.

                                       16





                                   SIGNATURES

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


                                      HUDSON TECHNOLOGIES, INC.

                                      By: /s/ Kevin J. Zugibe    August 10, 2001
                                          --------------------------------------
                                              Kevin J. Zugibe         Date
                                              Chairman/President and
                                              Chief Executive Officer



                                      By: /s/ Brian F. Coleman   August 10, 2001
                                          --------------------------------------
                                              Brian F. Coleman        Date
                                              Vice President and
                                              Chief Financial Officer



                                       17