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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 June 30, 2003



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: 000-30230



INTERACTIVE MULTIMEDIA NETWORK, INC.

(Exact name of registrant as specified in its charter)



DELAWARE

65-0488983

(State or other jurisdiction of

(IRS Employer

incorporation or organization)

Identification No.)



3163 KENNEDY BOULEVARD, JERSEY CITY, NEW JERSEY 07306

(Address, including zip code, of principal executive offices)



(201) 217-4137

(Registrant's telephone number, including area code)



Indicate by check mark whether the registrant  (1) has filed all  documents and reports required to be filed by Sections 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 filings for the past 90 days.   YES  (X)     NO   ( )



APPLICABLE ONLY TO CORPORATE ISSUERS:



As of June 30, 2003 the number of the Company's shares of par value $.001 common stock outstanding was 9,850,211.









Transitional Small Business Disclosure format (check one):  Yes [  ]  No [X]







SEC 2334 (3-03)

Potential persons who are to respond to the collection of information contained in this form are not

required  to  respond unless the  form displays a currently valid OMB control number.



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INTERACTIVE MULTIMEDIA NETWORK, INC.

FORM 10-QSB

June 30, 2003





INDEX







|Part I  Financial Information                                                                    |    
|------------------------------------------------------------------------------------------------- | ---
|                                                                                                  |    
|Item 1. Consolidated Financial Statements (Unaudited)                                             | 3  
|                                                                                                  |    
|Item 2. Managements Discussion and Analysis of Financial Condition and                           | 8  
|Results of Operations                                                                             |    
|                                                                                                  |    
|Item 3.  Controls and Procedures                                                                  | 8  
|                                                                                                  |    
|Part II  Other Information                                                                       |    
|                                                                                                  |    
|Item 1.  Legal Proceedings                                                                        | 9  
|                                                                                                  |    
|Item 2.  Changes in Securities and Use of Proceeds                                                | 9  
|                                                                                                  |    
|Item 3. Defaults Upon Senior Securities                                                           | (a)
|                                                                                                  |    
|Item 4. Submission of Matters to a Vote of Security Holders                                       | (a)
|                                                                                                  |    
|Item 5. Other Information                                                                         | (a)
|                                                                                                  |    
|Item 6. Exhibits and Reports on Form 8-K                                                          | 9  
|                                                                                                  |    
|Signature Page                                                                                    | 10 
|                                                                                                  |    
|Index to Exhibits                                                                                 | 11 
|                                                                                                  |    
|                                                                                                  |    
|(a) There are no issues requiring disclosure for these items and they have therefore been omitted























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INTERACTIVE MULTIMEDIA NETWORK, INC.

FORM 10-QSB

June 30, 2003



Part I - FINANCIAL INFORMATION



Item 1 - Financial Statements



|INTERACTIVE MULTIMEDIA NETWORK INC.
CONSOLIDATED BALANCE SHEET
|--------------------------------------------------------------
|                                                              
|                                                              
|                                                              
|                                                              
|Current Assets                                                
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|Property and equipment, net                                   
|                                                              
|                                                              
|                                                              
|                                                              
|Liabilities and Shareholder's Equity                          
|                                                              
|Current Liabilities                                           
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|Shareholder's Equity                                          
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              
|                                                              



Read the accompanying significant accounting notes to financial statements, which are an integral part of this financial statement.

---



|INTERACTIVE MULTIMEDIA NETWORK INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2003
|-----------------------------------------------------------------------------------------------------------------
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|                                                                                                                 
|Revenue                                                                                                          
|                                                                                                                 
|Cost of Revenue                                                                                                  
|                                                                                                                 
|Gross Profit                                                                                                     
|                                                                                                                 
|Operating expenses:                                                                                              
|Marketing                                                                                                        
|Research & Development                                                                                           
|Consulting services                                                                                              
|Rent                                                                                                             
|Selling, general and administrative expenses                                                                     
|Total operating expenses                                                                                         
|                                                                                                                 
|Loss before other income (expense)                                                                               
|                                                                                                                 
|Other income (expense):                                                                                          
|                                                                                                                 
|Interest expense                                                                                                 
|Total other income (expense)                                                                                     
|                                                                                                                 
|                                                                                                                 
|Net income before minority interest                                                                              
|                                                                                                                 
|                                                                                                                 
|Minority interest in net income/(loss) of subsidiary                                                             
|                                                                                                                 
|Net Loss                                                                                                         
|                                                                                                                 
|Basic weighted average common shares outstanding                                                                 
|                                                                                                                 
|Basic and diluted Loss per common share                                                                          



















Read the accompanying significant accounting notes to financial statements, which are an integral part of this financial statement.

---



|INTERACTIVE MULTIMEDIA NETWORK INC.
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2003
|----------------------------------------------------------------------------------------------------------------
|                                                                                                                
|                                                                                                                
|                                                                                                                
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                                           
|                                                                                                                
|Net Income (Loss)                                                                                               
|Adjustments to reconcile net income (loss) to net cash                                                          
|used in operating activities:                                                                                   
|                                                                                                                
|                                                                                                                
|                                                                                                                
|                                                                                                                
|                                                                                                                
|Changes in Operating assets and liabilities:                                                                    
|                                                                                                                
|                                                                                                                
|Net cash provided by/(used in) operating activities                                                             
|                                                                                                                
|                                                                                                                
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                                           
|                                                                                                                
|Minority interest paid in capital from subsidiary acquisition                                                   
|Minority interest in income/(loss)                                                                              
|Net cash provided by/(used in) investing activities                                                             
|                                                                                                                
|                                                                                                                
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                           
|                                                                                                                
|                                                                                                                
|Net cash provided by/(used in) financing activities                                                             
|                                                                                                                
|                                                                                                                
|Net increase (decrease) in cash and cash equivalents                                                            
|Cash and cash equivalents, beginning of period                                                                  
|                                                                                                                
|Cash and cash equivalents, end of period                                                                        
|                                                                                                                
|                                                                                                                
|Supplemental information:                                                                                       
|                                                                                                                
|Issuance of shares 92,115 for inventory balances                                                                
|Issuance of 250,000 shares for 90% investment in subsidiary                                                     
|Issuance of 100,000 shares for security patent                                                                  





Read the accompanying significant accounting notes to financial statements, which are an integral part of this financial statement.

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INTERACTIVE MULTIMEDIA NETWORK INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2003

(UNAUDITED)





NOTE 1 BASIS OF PRESENTATION



The accompanying unaudited consolidated financial statements of Interactive Multimedia Network, Inc. have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Article 10 of Regulation S-X.  The financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for the periods shown.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.



These financial statements should be read in conjunction with the audited financial statements and footnotes thereto included in Interactive Multimedia Network Inc.s form 10-KSB as filed with the Securities and Exchange Commission.



The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and that effect the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.





NOTE 2  REVENUE RECOGNITION



Revenues are principally from services and commissions from providing marketing plans, services related to the internet marketing arena and from sales of health related products.  Revenues from marketing and internet related activity are recognized when the services are completed.  Revenues from the sale of health related products are recognized when the product is delivered to the customer.



In December 1999, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. 101 (SAB 101), Revenue Recognition, which provides guidance on the recognition, presentation and disclosure of revenue in financial statements filed with the SEC.  SAB 101 outlines the basic criteria that must be met to recognize revenue and provide guidance for disclosures related to revenue recognition policies.  Management believes that Interactive Multimedia Network, Inc.s revenue recognition practices are in conformity with the guidelines of SAB 101.



NOTE 3  NET EARNINGS/(LOSS) PER SHARE



Earnings (Loss) per common share are calculated under the provisions of SFAS No. 128, Earnings per Share, which establishes standards for computing and presenting earnings per share.  SFAS No. 128 requires the Company to report both basic earnings (loss) per share, which is based on the weighted-average number of common shares outstanding during the period, and diluted earnings (loss) per share, which is based on the weighted-average number of common shares outstanding plus all potential dilutive common shares outstanding.  Options and warrants are not considered in calculating diluted earnings (loss) per share since considering such items would have an anti-dilutive effect.











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INTERACTIVE MULTIMEDIA NETWORK INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2003

(UNAUDITED)





NOTE 4  GOING CONCERN



The accompanying financial statements have been prepared assuming the Company will continue as a going concern.  The company reported a net loss of $6,217 (unaudited) for the three months ended June 30, 2003.  Additional capital and/or borrowings will be necessary in order for the Company to continue in existence until attaining and sustaining profitable operations.  Management has continued to develop a strategic plan to develop a management team, maintain reporting compliance and seek new expansive areas in marketing through multiple media channels.  Management intends to seek new capital from new equity security issuances that will provide funds needed to increase liquidity, fund internal growth, and fully implement its business plan.



NOTE 5  BUSINESS SEGMENT INFORMATION



The Companys segment information has been prepared in accordance with Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards (SFAS) No. 131, Disclosures about Segments of an Enterprise and Related Information.  Segments were determined based on products and services provided by each segment.  Accounting policies of the segments are the same as those described in the summary of significant accounting policies.  Performance of the segments is evaluated on operating income (loss) before taxes, interest income or expense and other income or (loss).  The Company has elected to organize it businesses based principally upon products and services.   Interactive Multimedia Network, Inc. has two reportable segments:  Marketing, including services related to the internet marketing arena and sales or commissions from the sale or lease of vehicles.



For the three months ended June 30, 2003 (unaudited)



Marketing &

Internet

Health

Corporate

Consolidated

Services

Products

and Other

Total











Net sales to external customers

$

260

$

-

$

-

$

260

Intersegment revenues

$

-

$

-

$

-

$

-

Segment operating profit (loss)

$

188

$

-

$

(8,152)

$

(7,964)

Segment assets

$

38,203

$

239

$

-

$

38,442



For the three months ended June 30, 2002 (unaudited)



Marketing &

Internet

Health

Corporate

Consolidated

Services

Products

and Other

Total











Net sales to external customers

$

4,600

$

2,548

$

-

$

7,184

Intersegment revenues

$

-

$

-

$

-

$

-

Segment operating profit (loss)

$

4,600

$

(28,442)

$

(112,983)

$

(136,824)

Segment assets

$

57,490

$

50,519

$

135,100

$

243,109







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INTERACTIVE MULTIMEDIA NETWORK, INC.

FORM 10-QSB

June 30, 2003



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.



Results of Operations



Three months ended June 30, 2003 and 2002



During the three month period ending June 30, 2003, the Company incurred a loss of $6,217 compared to a loss of $135,197 for the same period ended June 30, 2002.  The main component contributing to the decrease in loss from year to year was minimal operating expenses in the current year.



Revenues



During the three month period ending June 30, 2003, the Companys revenues from operations $260 compared to $7,148 for the same period ended June 30, 2002.  Revenues are principally from services and commissions from providing marketing plans, services related to the Internet marketing arena and sales from health related products . Revenues from marketing and Internet related activity are recognized when the services are completed.  Sales from health related products are recognized when the product is shipped.



Operating Expenses



During the three months ended June 30, 2003, the company incurred $6,499 in operating expenses from operations as compared to $135,820 in the same period in 2002. This decrease was primarily due to minimal operating expenses in the current year due to decreased operations.



Material changes in financial condition, liquidity and capital resources



At June 30, 2003, the Company had $260 in cash and cash equivalents.  The Company had a negative working capital of approximately $852,658 at June 30, 2003.  The Companys operations are not generating sufficient cash to maintain its present operations.  The Companys cash resources are determined entirely on the volume of sales and services generated and we currently cannot estimate how much they will contribute to our cash flow.  The company has reviewed all non-essential activities and expenditures and has aggressively curtailed these items to assist in reducing the cash used in operating activities.



Item 3.   Controls and Procedures



Evaluation of Disclosure Controls and Procedures



The Companys chief executive officer has evaluated the effectiveness of the Companys disclosure controls and procedures as of June 30, 2003 (the Evaluation).  Based on this evaluation, the Companys chief executive officer concluded that the disclosure controls and procedures are effective for gathering, analyzing and disclosing the information the Company is required to disclose in the reports it files under the Securities Exchange Act of 1934, within the time periods specified in the Securities and Exchange Commissions rule and forms.  There were no changes in the Companys internal controls over financial reporting that occurred during the quarter ended June 30, 2003, that have materially affected, or is reasonably likely to materially affect, the Companys internal controls over financial reporting.





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INTERACTIVE MULTIMEDIA NETWORK, INC.

FORM 10-QSB

June 30, 2003









PART II - OTHER INFORMATION



Item 1.  Legal Proceedings.



Please refer to the Form 10-KSB filed on July 14, 2003 for information regarding pending legal proceedings  involving the Company or its subsidiaries.  As of the date of this filing, there have been no material developments in any of these outstanding legal proceedings.



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 8K.



(a)

Exhibits



Exhibit 31.1  Certification required by Rule 13a-14(a) or Rule 15d-14(a).



Exhibit 32.1  Certification required by Rule 13a-14(b) or Rule 15d-14(b) and section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.





(b) Reports on Form 8K.  The company filed no reports on Form 8K during the period covered by this report.

















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INTERACTIVE MULTIMEDIA NETWORK, INC.

FORM 10-QSB

June 30, 2003







SIGNATURES



In accordance with the requirements of the Security Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned, duly authorized.



INTERACTIVE MULTIMEDIA NETWORK, INC.







Date:  August 11, 2003



By: /s/ Richard J. Verdiramo

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

Richard J. Verdiramo, President and CEO























































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|INDEX TO EXHIBITS                                                                                                                                                                                                                | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|Exhibit 31.1  Certification required by Rule 13a-14(a) or Rule 15d-14(a).

Exhibit 32.1  Certification Required by Rule 13a-14(b) or Rule 15d-14(b) and section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. | 
|                                                                                                                                                                                                                                 |