UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

        Date of Report (Date of earliest event reported) December 1, 2001


                             UNIDYN, CORP (UNDY.OB)
             (Exact name of registrant as specified in its charter)

     NEVADA                        33-55254-31                    87-0438639
State of other jurisdiction   (Commission file  number)      (IRS  Employer
of incorporation)                                           Identification No.)

1433 North Tech Blvd., Suite F104
Gilbert, Arizona                          85233-1005
(Address of principal executive offices)   (Zip Code)

Registrant's telephone number, including area code:  (480) 507-8333
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Item 2. Acquisition or Disposition of Assets

     Pursuant to the  directions of the UniDyn Board,  we have accepted an offer
from  Emerging  Power,  Inc.  (EPI),  a privately  held Florida  Corporation  to
purchase most of the assets of our Derritron  Vibration Products Division (DVPD)
which are held by our Belize Corporation, Derritron Vibration Products, Inc. All
ongoing  operation  debts of DVPD and the Derritron  Vibration  Product's  trade
name/s are  included in the sale,  with the  exception  of the  following:  DVPD
retains the Intellectual Property Rights to the NorthStar,  MorningStar, Pegasus
Product Lines and the assets of our Sandy, Utah facility.

     EPI  assumes  the  lease  and  all   responsibilities  for  our  Riverside,
California  location,  including any and all payroll  obligations to the current
employees of DVPD. EPI is given  non-exclusive  rights to the current  NorthStar
Product lines,  these rights are free from any licensing fees and/or  royalties.
The terms of the sale to EPI are:  $400,000 plus the assumption of approximately
$350,000 in DVPD debts.

     We are pleased to announce that the asset sale of DVPD, as described above,
was signed on 1 December  2001 pending  approval of UniDyn  Corp's  Board.  On 6
December 2001,  UniDyn Corp's board reviewed the sale and  unanimously  approved
the transaction. The sale's effective date is 1 December 2001.

     The  remaining  assets  of  DVPD  that  were  not  sold  to EPI  have  been
transferred to UniDyn Corp.  The Derritron  Vibration  Products,  Inc., a Belize
Corporation, will be dissolved and closed on 31 December 2001.

     It is management's expectation that with the completion of the DVPD sale to
EPI and the UniDyn/Avalon  Manufacturing  facility move from Phoenix to Gilbert,
that UniDyn Corp will be able to stem the  negative  cash flow that has hindered
UniDyn Corp's operations since the May 2001 events.


ITEM 5. Other Events

     Due to the current market value of the company,  which is directly  related
to the incidents that were reported at the May 2001 Board  meeting,  it has been
decided to seek approval from the Nevada Office of  Corporations to do a reverse
10:1 stock split.  This would bring the total number of outstanding  shares down
to a  level  more  appropriate  for  our  current  financial  model,  force  the
re-registration of all the outstanding UniDyn Corp Shares and enable UniDyn Corp
to proceed with a stockholders' meeting as soon as possible.

     We are now turning our attention to the following three items:

1.   Seeking  a joint  venture  for the  Sterling  Project.
2.   The sale and/or  licensing of the NorthStar,  MorningStar  Pegasus  Product
     Lines.
3.   The  development  of  additional   revenue  streams  for  both  the  Avalon
     Manufacturing Division and the UniDyn Corp.

     In November  2001,  we became  involved in a legal  dispute  regarding  the
termination of our facility lease in Phoenix, Arizona. On 21st December 2001, we
filed an Arizona  Civil  Lawsuit  against our previous  landlord.  We reasonably
expect to be  counter-sued.  We feel confident that we will prevail in this case
and do not expect this case to have an adverse effect on our ongoing operations.

FORWARD-LOOKING STATEMENTS

     Safe Harbor statement under the Private Securities Litigation Reform Act of
1995: Except for historical  information contained herein, the matters discussed
in  this  filing  are   forward-looking   statements   that  involve  risks  and
uncertainties,  including but not limited to economic, competitive, governmental
and technological factors affecting the Company's operations,  markets, products
and prices and other factors discussed in the Company's various filings with the
Securities and Exchange Commission.


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Signatures

Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

December 28, 2001          By: /s/ Jeffrey Garman
                              Jeffrey Garman, President
                              Unidyn, Corp.