<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                       For the quarter ended June 30, 2002

                                       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 000-28661

                             AUGRID OF NEVADA, INC.
             (Exact name of registrant as specified in its charter)

Nevada                                                                88-0219656
------                                                                ----------
(State or other jurisdiction of                                 (I.R.S. Employer
incorporation or organization)                               Identification No.)

                              2275 East 55th Street
                              Cleveland, Ohio 44103
                              ---------------------
                    (Address of principal executive offices)

                                 (216) 426-1589
                                 --------------
              (Registrant's telephone number, including area code)

         Check whether the Registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months, and (2) has been subject to such filing requirements for
the past 90 days. Yes |X| No | |

         As of August 15, 2002, there were 6,293,300 shares of the Registrant's
common stock, par value $0.001 issued and outstanding.
<PAGE>
                             AUGRID OF NEVADA, INC.
                  JUNE 30, 2002 QUARTERLY REPORT ON FORM 10-QSB
                                TABLE OF CONTENTS

<TABLE>
<S>                                                                      <C>
            Special Note Regarding Forward Looking Information .....       2

                   PART I - FINANCIAL INFORMATION

Item 1.     Financial Statements ...................................       3
Item 2.     Management's Plan of Operations.........................      14

                     PART II - OTHER INFORMATION

Item 1.     Legal Proceedings.......................................      16
Item 2.     Changes in Securities and Use of Proceeds...............      16
Item 3.     Defaults Upon Senior Securities.........................      16
Item 4.     Submission of Matters to a Vote of Security Holders.....      16
Item 5.     Other Information.......................................      16
Item 6.     Exhibits and Reports on Form 8-K........................      18
</TABLE>

         References in this report to "we", "us", "our" and similar terms means
Augrid of Nevada, Inc., a Nevada corporation.


                                       1
<PAGE>
                SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

         The following cautionary statements identify important factors that
could cause our actual results to differ materially from those projected in the
forward-looking statements made in this Quarterly Report on Form 10-QSB. Any
statements about our beliefs, plans, objectives, expectations, assumptions or
future events or performance are not historical facts and may be
forward-looking. These statements are often, but not always, made through the
use of words or phrases such as "will likely", "are expected to", "should", "is
anticipated", "estimated", "intends", "plans", "projection" and "outlook". Any
forward-looking statements are qualified in their entirety by reference to
various factors discussed throughout this Quarterly Report and discussed from
time to time in our filings with the Securities and Exchange Commission. Among
the significant factors that could cause our actual results to differ materially
from those expressed in the forward-looking statements are:

-        the potential risk of delay in implementing our business plan;

-        the market for our products; and

-        the need for additional financing.

         Because the factors referred to above could cause actual results or
outcomes to differ materially from those expressed in any forward-looking
statements, persons should not place undue reliance on any of these
forward-looking statements. In addition, any forward-looking statement speaks
only as of the date on which it is made, and we undertake no obligation to
update any forward-looking statement or statements to reflect events or
circumstances after the date on which the statement is made, to reflect the
occurrence of unanticipated events or otherwise. New factors emerge from time to
time, and it is not possible for us to predict which will arise or to assess
with any precision the impact of each factor on our business or the extent to
which any factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.


                                       2
<PAGE>
         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

<TABLE>
<S>                                                                                                       <C>
         Accountant's  Review Report.....................................................................  4
         Consolidated Balance Sheets as of June 30, 2002 and December 31, 2001...........................  5
         Consolidated Statements of Income for the six months and three months ended
            June 30, 2002 and 2001 and Cumulative since March 15, 1998 ..................................  7
         Consolidated Statements of Cash Flows for the six months ended
            June 30, 2002 and 2001 and cumulative since March 15, 1998 ..................................  8
         Notes to Consolidated Financial Statements......................................................  9
</TABLE>


                                       3
<PAGE>
                            HENRY L. CREEL CO., INC.
                           Certified Public Accountant
                                  (216)491-0800
                                FAX (216)491-0803

To the Board of Directors and Stockholders
AuGRID OF NEVADA, INC.
2275 East 55th Street
Cleveland, Ohio 44103

                           ACCOUNTANT'S REVIEW REPORT

We have reviewed the accompanying balance sheet of AuGRID OF NEVADA, INC. (A
Nevada Development Stage Company) as of June 30, 2002, and the related statement
of income and cash flows for the six months period ended June 30, 2002, in
accordance with Statements on Standards for Accounting and Review Services
issued by the American Institute of Certified Public Accountants. All
information included in this financial statement is the representation of the
management of the AuGRID OF NEVADA, INC.

A review consists principally of inquires of Company personnel and analytical
procedures applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.

As discussed in note 1, the Company has a going concern problem. Without
realization of additional capital and source of revenue, it would be unlikely
for the Company to continue as a going concern.

Based on my reviews, with the exception of the matter described in the above
paragraph, We are not aware of any material modifications that should be made to
the accompanying financial statements in order for them to be in conformity with
generally accepted accounting principles.

/s/ HENRY L. CREEL CO., INC.
August 12, 2002


                                       4
<PAGE>
                             AuGRID OF NEVADA, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                           CONSOLIDATED BALANCE SHEETS
                                  ( UNAUDITED)

                                   A S S E T S

<TABLE>
<CAPTION>
                                              Unaudited        Audited
                                           ----------------------------
                                             June 30, 2002    December 31, 2001
                                       ----------------------------------------
<S>                                    <C>                    <C>
CURRENT ASSETS

  Cash                                           $  4,513             $  7,493
  Accounts Recievable                                 850                    0
                                                  --------             --------

     Total Current Assets                            5,363                7,493

PROPERTY AND EQUIPMENT

   Machinery and Equipment                          68,080               68,080
   Furniture and Fixtures                            7,686                7,686
   Office Equipment                                 14,176               14,176

                                                  --------             --------
     Total Property at Cost                         89,942               89,942

Less:  Accumulated Depreciation
            and Amortization                       (57,003)             (41,661)

                                                  --------             --------
Net Machinery and Equipment                         32,939               48,281

OTHER  ASSETS

   Licensing Agreement                                   0                    0

   Less Amortization                                    (0)                  (0)

   Net Licensing Agreement                               0                    0

   Deposits Building Construction                   21,341               21,341

     Total Other Assets                             21,341               21,341
                                                  --------             --------

TOTAL ASSETS                                      $ 59,643             $ 77,115
                                                  ========             ========
</TABLE>


         The accompanying notes are an integral part of these consolidated
financial statements


                                       5


<PAGE>
                             AuGRID OF NEVADA, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                           CONSOLIDATED BALANCE SHEET


                       LIABILITIES AND SHAREHOLDERS EQUITY

<TABLE>
<CAPTION>
                                                                            Unaudited                  Audited
                                                                        -------------
                                                                           June 30, 2002      December 31, 2001
<S>                                                                     <C>                   <C>
CURRENT LIABILITIES

   Accounts Payable -Trade                                                  $     63,945           $     63,945
   Convertible Subordinated Promissory Note                                            0                      0
   Accounts Payable to Related Parties                                           443,850                299,750
                                                                            ------------           ------------
     Total Current Liabilities                                                   507,795                363,695
                                                                            ------------           ------------

LONG -TERM DEBT

   Note Payable                                                                  553,700                553,700

                                                                            ------------           ------------
     Total Long-Term Debt                                                        553,700                553,700

                                                                            ------------           ------------
     Total Liabilities                                                         1,061,495                917,395
                                                                            ------------           ------------


SHAREHOLDERS EQUITY

Capital Stock
Preferred Stock $ 0.001 par value 10,000,000 shares authorized and
317,500 shares issued and outstanding                                                318                    318
Common Stock - $0.001 par value 90,000,000  authorized; issued and
outstanding June 30, 2002 69,964,720 and December 31, 2001 64,364,720             69,964                 64,365


Additional Paid in Capital                                                     3,932,898              3,851,296
                                                                            ------------           ------------
Retained Earnings                                                             (5,005,032)            (4,756,259)
                                                                            ------------           ------------

Deficit accumulated during the development stage                              -1,001,852               -840,280
                                                                            ------------           ------------

TOTAL LIABILITIES AND
SHAREHOLDERS EQUITY                                                         $     59,643           $     77,115
                                                                            ============           ============
</TABLE>


         The accompanying notes are an integral part of these consolidated
financial statements


                                       6

<PAGE>
                             AuGRID OF NEVADA, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                        CONSOLIDATED STATEMENTS OF INCOME

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                 FOR THE          FOR THE          FOR THE          FOR THE
                                                SIX MONTHS       SIX MONTHS      THREE MONTHS     THREE MONTHS     CUMULATIVE
                                                  ENDED            ENDED            ENDED            ENDED        FOR THE PERIOD
                                            ------------------------------------------------------------------    MARCH 15,1998
                                              June 30, 2002    June 30, 2001    June 30, 2002    June 30, 2001   TO JUNE 30, 2002
                                              -------------    -------------    -------------    -------------   ----------------
<S>                                         <C>                <C>              <C>              <C>             <C>
Net Sales (Note 1)                             $          0     $          0     $          0     $          0                0
Interest Income                                           0                0                0                0              524

                                               ------------     ------------     ------------     ------------     ------------
     Total Revenue                                        0                0                0                0              524

Direct Cost
    Write-Off License Agreement ( Note 1H)                0                0                0                0        1,262,908

General and Administrative Expenses
   Consultants                                      197,096           32,806          151,481            8,150        1,089,311
   Secretary Services                                     0            1,100                0            1,100           40,642
   Public Relations                                   1,000            9,700                0            9,700          283,242
   Auto Expense                                       2,029           11,925                0            7,000          120,768
   Insurance                                              0              916                0                0            4,604
   Rent and Utilities                                 2,250            3,011                0              799           74,654
   Repairs and Maintenance                           10,148           13,367                0           13,367           24,027
   Leased Equipment                                       0            1,109                0                0           20,600
   Furniture Lease                                        0              541                0              541           29,624
   Travel and Lodging                                 4,450           14,846                0           11,746          226,526
   Legal                                              3,172            3,596              772            2,846          204,156
   Accounting                                        13,500            4,250            6,000            4,250           49,926
   Professional Fees                                      0            6,600                0            6,600          114,701
   Miscellaneous                                        437            3,405              437            2,644           68,653
   Computer Services                                  1,139              371                0              371           59,773
   Office Supplies                                        0                0                0                0           21,616
   Office Expenses                                    1,096            1,838               52             -274           42,836
   Postage and Delivery                                 523            1,173              265              606           26,485
   Telephone                                          3,821            8,774              594            4,684           95,897
   Interest Expense                                       0            3,902                0            2,552          114,902
                                               ------------     ------------     ------------     ------------     ------------
     Total General and
     Administrative Expenses                       (240,661)        (123,230)        (159,601)         (76,682)      (2,712,943)

Income (Loss) Before Depreciation                  (240,661)        (123,230)        (159,601)         (76,682)      (3,975,327)

Depreciation                                         (8,112)               0                0                0          (17,106)
Amortization                                             (0)              (0)              (0)              (0)      (1,012,599)

Income (Loss) Before Taxes                         (248,773)        (123,230)        (159,601)         (76,682)      (5,005,032)

Provision for Income Taxes (Note 2)                       0                0                0                0                0

Net Income (Loss)                                  (248,773)        (123,230)        (159,601)         (76,682)      (5,005,032)

Basic Net Loss Per Share                       $      0.002     $      0.003     $      0.002     $      0.004     $      0.072

Shares Used In Computing Net Loss Per Share    $ 64,364,720     $ 58,268,469     $ 49,889,348     $ 46,629,414     $ 69,964,720
</TABLE>


         The accompanying notes are an integral part of these consolidated
financial statements


                                       7

<PAGE>
                             AuGRID OF NEVADA, INC.
                         ( A DEVELOPMENT STAGE COMPANY)

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  ( UNAUDITED )

<TABLE>
<CAPTION>
                                                                                                   CUMULATIVE
                                                          For the Six          For the Six       FOR THE PERIOD
                                                         Months Ended          Months Ended       MARCH 15,1998
                                                            30-Jun-02             30-Jun-01     TO MARCH 31, 2002
                                                         ------------          ------------     -----------------
<S>                                                      <C>                   <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES

   Net Income (Loss)                                      ($  248,773)          ($  123,230)          ($5,005,032)

Adjustments to reconcile Net Income to
Net Cash provided by Operating Activities

   Depreciation and Amortization                                8,112                     0             1,029,705

Changes in Operating Assets and Liabilities Net:
   Loss on Write Off Other Assets                                   0             1,127,959
   Increase in Accounts payable Related Parties               144,100                     0               443,850
   Increase In Accounts Receivable                               (850)                    0                  (850)
   Increase (Decrease) in Accounts Payable                          0                 3,811                53,190

                                                          -----------           -----------           -----------
     Net Cash Used by Operating Activities                    (95,711)             (119,419)           (2,349,478)

CASH FLOWS FROM INVESTING ACTIVITIES

   Increase in Deposits-Building Construction                      (0)                   (0)              (21,341)
   Increase in Licensing Agreement                                 (0)                   (0)           (1,423,542)
   Purchase of Property and Equipment                              (0)                   (0)              (53,713)

                                                          -----------           -----------           -----------
     Net Cash Used in Investing Activities                         (0)                   (0)           (1,498,596)

CASH FLOWS FROM FINANCING ACTIVITIES

   Proceeds from Promissory Note                                    0                     0               612,200
   Proceeds from Notes Payable Stockholders                         0                     0               254,000
   Proceeds from Stock Issuance                                93,581               118,750             2,954,864

                                                          -----------           -----------           -----------
     Net Cash Provided by Financing Activities                 93,581               118,750             3,821,064

Increase (Decrease) in Cash and Cash Equivalents               (2,130)                 (669)              (27,010)

Cash and Cash Equivalents at Beginning of Year                  7,493                   922                32,373

                                                          -----------           -----------           -----------
Cash and Cash Equivalents at End of Year                  $     5,363           $       253           $     5,363
                                                          ===========           ===========           ===========
</TABLE>


         The accompanying notes are an integral part of these consolidated
financial statements


                                       8


<PAGE>
AuGRID OF NEVADA, INC.
                          (A Development Stage Company)

                          Notes to Financial Statements
                               As of June 30, 2002

NOTE 1   ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         A. Organization

         AuGRID OF NEVADA, INC., (a Development Stage Company) formed under the
         laws of the State of Nevada. It is a development stage company whose
         primary business is a technology development firm specializing in Thin
         Cathode Ray Tube (TCRT) technology. The company currently has no
         operating income and, in accordance with SFAS #7 is considered a
         development Company.

         B. Basis of Presentation

         The financial records of the company are maintained on the accrual
         basis of accounting. The accompanying financial statements have been
         prepared on the going concern basis which contemplates the realization
         of assets and the satisfaction of liabilities in the normal course of
         business in accordance with generally accepted accounting principles.

         C. Property and Equipment

         All property and equipment is stated at cost. The Company provides for
         depreciation, using the straight line method, over the estimated useful
         lives of the respective assets, as follows:

<TABLE>
<CAPTION>
                                                                  Years
                                                                  -----
<S>                                          <C>                  <C>
         Machinery and Equipment             $68,080               10
         Furniture and Fixtures                7,686               10
         Office Equipment                     14,176               10
                                             -------
         Total Property & Equipment          $89,942
                                             =======
</TABLE>

         Major renewals and improvements of property and equipment are
         capitalized, while replacements, maintenance and repairs which do not
         improve or extend the lives of the assets are charged against current
         operations.

         When property and equipment is disposed of, any gain or loss is
         included in current operations.

         D. Use of Estimates

         The preparation of financial statements in conformity with general
         accepted accounting principles require management to make estimate and
         assumptions that affect the reported amounts of assets and liabilities
         at the date of the financial statement and the reported amounts of
         revenue and expenses during the reported period. Actual results could
         differ from those estimates.


                                       9
<PAGE>
                             AuGRID OF NEVADA, INC.
                          (A Development Stage Company)

                          Notes to Financial Statements
                               As of June 30, 2002

NOTE 1            ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
                  (Continued)

                  E. Going Concern

                  The company's financial statements are prepared using the
                  generally accepted accounting principles applicable to a going
                  concern, which contemplates the realization of assets and
                  liquidation of liabilities in the normal course of business.
                  However, the Company has no current source of revenue. Without
                  realization of additional capital, it would be unlikely for
                  the Company to continue as a going concern. The financial
                  statements do not include any adjustments relating to the
                  recoverability and classification of recorded assets or the
                  amount and classification of liabilities which might be
                  necessary should the company continue as a concern. The
                  Company's continuation as a going concern is dependent upon
                  its ability to generate sufficient cash flows to meet its
                  obligations on a timely basis, to obtain additional financing
                  as may be required, and ultimately to attain successful
                  operations. It is management's plan to begin producing sales
                  in mid 2002.

                  F. Research and Development Expense

                  The company's policy relating to research and development and
                  patent development cost are expensed when incurred except R&D
                  machinery, equipment, and facilities which have alternative
                  future uses either in R&D activities or otherwise. Machinery,
                  equipment and facilities, which have alternate future uses
                  should be capitalized. All expenditures in conjunction with an
                  R&D project, including personnel cost, materials, equipment,
                  facilities, and intangibles, for which the company has no
                  alternative future use beyond the specific project for which
                  the items were purchased, are expensed.

                  G. Revenue Recognition

                  The company has no current source of Revenue.

                  H. Impairment of Long-Lived Assets & Long-Lived Assets to Be
                  Disposed Of

                  Statement of Financial Accounting Standards No. 121,
                  "Impairment of Long-Lived Assets" (SFAS 121), requires the
                  Company to review for possible impairment, assets to be held
                  for use and assets held for disposal, whenever events or
                  changes in circumstances indicate that the carrying amount may
                  not be recoverable, and in such event, to record an impairment
                  loss. The Company adopted SFAS 121 in 1998 and evaluated the
                  recoverability of long lived assets at its properties. Initial
                  adoption of SFAS 121 in 1998 did not have a material impact on
                  the Company's financial condition or results of operations.



                                       10

<PAGE>

                             AuGRID OF NEVADA, INC.
                          (A Development Stage Company)

                          Notes to Financial Statements
                               As of June 30, 2002

NOTE 1            ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
                  (Continued)

                  H. Impairment of Long-Lived Assets & Long -Lived Assets to Be
                  Disposed Of (Cont)

                  Up to 2000, the company recorded a charges of $1,822,907 from
                  continuing operations relating to an impairment loss on other
                  assets. Approximately $1,450,000 was due to a current
                  Licensing Agreement while $373,383 was due to a prior
                  Licensing Agreement. The company's revenue, which was
                  anticipated from future agreements of this type, had not been
                  realized as anticipated, therefore resulting in and impairment
                  loss on intangible assets.

NOTE 2            LICENSING AGREEMENT

                  The company has an agreement with Ceravision Limited.
                  Ceravision has developed and is developing certain technology
                  relating to ceramic-based field emission flat screen displays
                  and hold certain patent applications and other intellectual
                  property rights in relation to such technology and in relation
                  to manufacturing processes and equipment to produce and sell
                  such displays and components for incorporation into such
                  displays. The cost incurred in relation to this licensing
                  agreement is capitalized. The cost is amortized over a period
                  of 5 years.

NOTE 3            ACCOUNTS PAYABLE TO RELATED PARTIES

                  The company owes key personnel, Officers and Consultants past
         salaries and fees based on services rendered. At June 30, 2002 the
         company owed the following amounts $146,000, $134,850, $100,100 and
         $62,900 totaling $443,850. These amounts relate directly to unpaid
         fees, salaries and a cash advance directly to the company. All amounts
         due with no interest accrued.


                                       11
<PAGE>
                             AuGRID OF NEVADA, INC.
                          (A Development Stage Company)

                          Notes to Financial Statements
                               As of June 30, 2002

NOTE 4            INCOME TAXES

                  There was no provision for Federal Income tax during 2002 or
                  2001 because of an unexpired net operating loss carry forward.

<TABLE>
<CAPTION>
                                                                          Carryforward
                  Year Ended                        Amount           Available to Year
                  ----------                        ------           -----------------
<S>                                              <C>                 <C>
                  December 31, 1998              1,019,718                        2013
                  December 31, 1999                675,719                        2014
                  December 31, 2000              1,171,377                        2015
                  December 31, 2001              1,889,445                        2016
                  June 30, 2002                    248,773                        2017
</TABLE>

                  The Company has a net operating loss carryforward of
                  $5,005,032 which expires, if unused, in the years 2013 to
                  2017. The following is a reconciliation of the income tax
                  benefit computed at the federal statutory rate with the
                  provision for income taxes for the period ended 2001 and 2002.

<TABLE>
<CAPTION>
                                                                            2001                2002
                                                                          ---------          ---------
<S>                                                                       <C>                  <C>
                  Income tax benefit at the statutory rate (34%)          1,889,445            248,773
                  Change in valuation allowance
                  State tax, net of federal benefit
                  Non included items
                                                                          ---------          ---------
                  Provision for income taxes                                      0                  0
                                                                          =========          =========
</TABLE>

NOTE 5            CAPITALIZATION

                  On March 1, 1998, Augrid Corporation's current controlling
                  stockholders purchased controlling interest in Ironwood
                  Ventures via the purchase of approximately 4,616,111 shares of
                  Common Stock of Ironwood Ventures' in private transactions;
                  this represented approximately 62.2 percent (62.2%) of
                  Ironwood Ventures' issued and outstanding Common Stock.

                  On March 2, 1998, Ironwood Ventures' executed a forward stock
                  split of its stock, 6.06571228 to 1. In addition, Ironwood
                  Ventures' increased its authorized shares to 90,000,000 common
                  shares, par value $0.001, 10,000,000 preferred shares, par
                  value $0.001, and changed its name to Augrid of Nevada, Inc.

                  On March 12, 1998, Ironwood Ventures' - now called Augrid of
                  Nevada, Inc. - executed an asset purchase agreement purchasing
                  substantially all of the assets of Augrid Corporation, a
                  Delaware corporation hereinafter referred to as "Augrid of
                  Delaware", a company under common control by the control
                  stockholders of the Ironwood Ventures', for 1,000,000 newly
                  issued shares of the Ironwood Ventures'. This was not a third
                  party, arms length transaction, and due to the development
                  stage and specialized nature of the assets\technology that
                  Ironwood


                                       12
<PAGE>
                             AuGRID OF NEVADA, INC.
                      (A Nevada Development Stage Company)

                          Notes to Financial Statements
                               As of June 30, 2002

NOTE 5            CAPITALIZATION (Continued)

                  Ventures' purchased, the Company's management is unable to
                  determine how this transaction would compare to a similar arms
                  length transaction. The shares of common stock were spun off
                  to Augrid of Delaware shareholders on a pro-rate basis on
                  March 13, 1998.

NOTE 6            NET LOSS PER SHARE

                  The Company follows the provisions of Statement of Financial
                  Accounting Standards No. 128, earnings per share (SFAS 128)
                  The following table presents the calculation.

<TABLE>
<S>                                                               <C>
                      Net Loss                                    $   248,773
                  Basic:
                      Weighted average share of
                      Common stock outstanding                     69,964,720
                                                                  -----------
                      Basic net loss per share                      ( .0014 )
                  Pro forma :
                      Shares used above                            69,964,720
                      Pro forma adjusted to reflect
                      Weighted affect of assumed
                      Conversion of preferred stock                   317,500
                                                                  -----------
                      Shares used in computing pro forma
                         Basic net loss per share                  70,282,220
                                                                  -----------
                      Pro forma basic net loss per share            ( .0014 )
</TABLE>



NOTE 7            NOTES PAYABLE TO STOCKHOLDERS

                  Notes payable to stockholders represents demand notes that
                  matured on 01/28/01 with interest at 12%. The matured notes
                  were converted into 18 Month Demand notes at 10% interest
                  totaling $ 553,700

<TABLE>
<S>                                                               <C>
                  Notes Payable to Stockholders- Long Term        $   553,700
</TABLE>


                                       13
<PAGE>
ITEM 2.           MANAGEMENT'S PLAN OF OPERATION

         The following discussion and analysis should be read in conjunction
with the Financial Statements and Notes thereto appearing elsewhere in this
Quarterly Report. Certain statements in this Quarterly Report, which are not
statements of historical fact, are forward-looking statements. See "Special Note
Regarding Forward-Looking Information" on Page 2.

General

         We are a research and development company in the development stage. Our
predecessor was formed under the name Ironwood Ventures, Inc. ("Ironwood") by
the filing of Articles of Incorporation with the Secretary of State of the State
of Nevada on August 4, 1995. On March 2, 1998, following a change of control, we
changed our name to Augrid of Nevada, Inc. We effectively commenced operations
on March 15, 1998.

         Our business objective is to exploit technologies that assist in the
development of proprietary flat panel display technology. We have secured
licensee rights to what is believed by management to be the first truly flat
panel, FED (Field Emission Device), display technology. This thin cathode ray
tube technology incorporates a proprietary ceramic backplane that management
believes will allow manufacturers to overcome pricing, power and size obstacles
currently facing many other manufacturers in the flat panel display industry.
Although we have no current manufacturing or sales operations utilizing this
technology, it intends, within the next twelve months, to begin the manufacture
of thin cathode ray tubes for a broad range of flat panel display product
applications for the transportation industry.

         To date we have been engaged in securing funding, obtaining rights as a
licensee to the flat panel display technology critical to our business, finding
and securing a management team and board of directors, developing a business
plan, conducting preliminary market research and contracting for the manufacture
of a pilot production line at a cost to us of $1,200,000. It is anticipated that
the line will be completed and that production of flat panel displays will
commence in the fourth quarter of 2003.

Patent License; Royalties

         We have obtained an exclusive patent license from CeraVision Limited to
use certain ceramic-based field emission flat panel display technologies to
manufacture and market products for the transportation industry. Pursuant to the
terms of the license, we will be required to pay royalties to its licensor.
These royalties are based upon production. On July 1, 2001, we became subject to
a minimum quarterly royalty payment in the amount of $500,000, irrespective of
production, for the fiscal quarter ended September 30, 2001. Although the first
payment was due on October 7, 2001, the licensor has deferred our obligation to
make any royalty payments, while we pursue a strategic business combination.

Research and Development

         We spent approximately $1,312,000 in 2000 and $138,000 in 2001 for
research and development and other costs incurred in connection with our efforts
to obtain the patent license from CeraVision Limited. Although those costs
initially were recorded as deferred costs, they subsequently were attributed to
the license agreement.

         Of the amount recorded for 2000, $862,000 was a direct payment to
CeraVision Limited pursuant to the license agreement. The remaining $450,000 of
costs for that year represented payments to CeraVision Limited for additional
FPD research and development services not covered by the $1,000,000 fee. The
$138,000 recorded for 2001 was a direct payment to CeraVision Limited pursuant
to the license agreement. An aggregate of $1,450,000 of payments to CeraVision
Limited during the last two fiscal years is attributable to the license
agreement.


                                       14
<PAGE>
Although we currently are producing no FPD products and have no customers for
such products, we expect that these costs ultimately will be recovered in the
prices we charge for our FPD products.

         Of the costs recorded in 2000 and 2001, $862,000 was paid to CeraVision
Limited for the exclusive licensing agreement, representing a portion of the
first $1,000,000 installment of the $3,000,000 fee for CeraVision Limited's
services in developing certain flat panel display prototypes and building
manufacturing lines for the purpose of producing such displays. The balance of
the first installment and the second $1,000,000 installment of the fee is due on
demand, but CeraVision Limited is withholding demand while we are exploring a
strategic business combination. The final $1,000,000 installment of the fee will
not be due until we receive the last of ten (10) prototypes complying with
certain specifications.

Cash Requirements

         We will have cash requirements of approximately $5,000,000 during the
next twelve months. During that period, we will be obligated to pay an
installment payment in the amount of $1,000,000 for the manufacture of our pilot
production line; approximately $1,000,000 for general administrative and
operating costs, including legal and accounting fees and the hiring of several
additional key employees; approximately $676,800 to repay debt (plus interest in
the amount of 10% on $250,000 of that amount from June 18, 2001); and the
remainder to establish a manufacturing facility and fund further research and
development activities. In addition, if the requisite ten production lines
prototypes are delivered during the next twelve months, we will be obligated to
pay the final $1,000,000 installment for the manufacture of the production
lines, and we also may be obligated for the payment of minimum royalty payments
under our patent license, even if we are not then producing products for sale.
To date, our cash requirements have been met from the proceeds of private
offerings of our common stock and the issuance of our debt securities. We have
generated no revenues from operations to date. We expect that revenues over the
next twelve months will be inadequate to meet working capital requirements, and
we are considering a strategic business combination that will provide the
necessary working capital to conduct operations as planned. If we are unable to
complete the contemplated combination, it is unlikely that we will be able to
continue operations unless we can raise substantial proceeds from one or more
private or public offerings of our securities. We have no significant cash or
other material assets nor revenues to cover our operating costs to allow us to
continue as a going concern during such period. We expect to generate sufficient
revenues from operations to cover our costs beginning in 2003.

Employees

         We have four full-time employees and no part-time employees. Our
management team currently is comprised of two persons, a Chief Executive Officer
and a Secretary/Treasurer. However, through consultation with advisors and board
members, our management has identified key personnel who may be available to
fill management positions, as soon as we have the funds to compensate them.
These include a Chief Operations Officer, a Chief Financial Officer, an
Executive Vice President, a Controller and a Vice President of Manufacturing and
a Vice President of Sales and Marketing. We intend to fill these positions
during the next twelve months and also intend to hire experienced high-tech
sales personnel.


                                       15
<PAGE>
PART II - OTHER INFORMATION

ITEM 1.           LEGAL PROCEEDINGS

         We have been threatened with litigation in connection with a contract
dispute regarding a financial advisory agreement. We are represented by legal
counsel in the dispute, and we intend to vigorously defend against any action
that might be brought against us. Due to the nature of the action and the
inherent uncertainty of the outcome of any litigation, we are unable to
determine whether we would prevail in such litigation if brought or would suffer
any material loss if we should not prevail.

ITEM 2.           CHANGES IN SECURITIES AND USE OF PROCEEDS

                  None.

ITEM 3.           DEFAULTS IN SENIOR SECURITIES

                  None.

ITEM 4.           SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         In a written action without a meeting, our Board of Directors
unanimously approved a one-for-fifty (1:50) reverse split of our outstanding
common stock. Our Board deemed the reverse split to be advisable in order to
attract the additional equity funding that we need to continue operations.

         A majority of our shareholders, acting by written consent, adopted the
reverse split approved by the Board. The record date for the split was July 14,
2002, and the effective date of the split was July 24, 2002.

         As a result of the reverse split, each fifty shares of our common stock
prior to the split is represented by one new share of our common stock after the
split. The number of issued and outstanding as of August 8, 2002 is 4,893,300.

         Our authorized capital stock was unaffected by the reverse split and
continues to consist of 90,000,000 shares of common stock and 10,000,000 shares
of preferred stock. This should ensure availability to us of adequate shares for
use in equity fundings and business combinations. However, although we are
actively engaged in discussions relating to funding and mergers, there is in
place no definitive agreement with any third party with respect to an investment
or a merger.

ITEM 5.           OTHER INFORMATION

FORM 8-K; ITEM 9; REGULATION FD DISCLOSURE

         In accordance with 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, our Chief Executive Officer and
Chief Financial Officer executed the following written statements which
statements accompanied the filing with the Securities and Exchange Commission of
this Quarterly Report on Form 10-QSB:


                                       16
<PAGE>
                CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, M. J. Shaheed, President and Chief Executive Officer of Augrid of Nevada,
Inc. (the "Company"), certify, pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002, 18 U.S.C. Section 1350, that:

         -        the Company's Quarterly Report on Form 10-QSB for the fiscal
                  quarter ended June 30, 2002, as filed with the Securities and
                  Exchange Commission on the date hereof (the "Report") fully
                  complies with the requirements of Section 13(a) or 15(d) of
                  the Securities Exchange Act of 1934; and

         -        the information contained in the Report fairly presents, in
                  all material respects, the financial condition and result of
                  operations of the Company for the periods presented therein.

                CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Mary F. Sloat-Horoszko, Treasurer of Augrid of Nevada, Inc. (the "Company"),
certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C.
Section 1350, that:

         -        the Company's Quarterly Report on Form 10-QSB for the fiscal
                  quarter ended June 30, 2002, as filed with the Securities and
                  Exchange Commission on the date hereof (the "Report") fully
                  complies with the requirements of Section 13(a) or 15(d) of
                  the Securities Exchange Act of 1934; and

         -        the information contained in the Report fairly presents, in
                  all material respects, the financial condition and result of
                  operations of the Company for the periods presented therein.

OTHER INFORMATION

         On August 2, 2002, our Board adopted a compensation plan known as the
AuGRID of Nevada, Inc. 2002 Long-Term Incentive Plan, and on August 5, 2002 we
filed a registration statement on Form S-8 to register under the Securities Act
of 1933 the issuance of an aggregate of 750,000 shares of our common stock under
the terms of the LTIP.

         On August 2, 2002, our Board, desiring to obtain the services of
various providers necessary for us to continue to pursue our business strategy
while preserving our limited cash position, approved issuing an aggregate of
1,070,000 shares of our common stock to certain consultants for services
provided, or to be provided, to us pursuant to various written consulting
agreements. On August 7, 2002, we filed a registration statement on Form S-8 to
register under the Securities Act the issuance of the shares pursuant to the
terms of such agreements.

         On August 2, 2002, our Board, desiring to continue the employment of
certain of our executive officers whom have deferred collecting their salary,
issued to such executive officers shares of our common stock in return for such
executive officer's forgiving our obligation to pay such back salary. We issued
3,759,500 shares of our common stock in return for the release of $375,950 of
back salaries accruing through June 30, 2002.


                                       17
<PAGE>
ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

         (a)   Exhibits (Reference Numbers are to Item 601 of Regulation S-B)

                  2        Plan of Acquisition

                           Asset Purchase Agreement between the Company and
                           AuGRID Corporation, a Delaware corporation, dated
                           March 12, 1998 (the "Asset Purchase Agreement") and
                           incorporated by reference to Exhibit 2 to the
                           Company's Form 10-SB, filed with the Commission on
                           December 27, 1999.

                  3.       Articles of Incorporation & By-Laws

                           (i)      Articles of Incorporation filed with the
                                    Nevada Secretary of State on August 4, 1995
                                    and incorporated by reference to Exhibit
                                    3(i) to Form 10-QSB, filed with the
                                    Commission on June 13, 2001.

                           (ii)     Certificate of Amendment of Articles of
                                    Incorporation filed with the Nevada
                                    Secretary of State on March 18, 1998 and
                                    incorporated by reference to Exhibit 3(ii)
                                    to Form 10-QSB, filed with the Commission on
                                    June 13, 2001.

                           (iii)    By-Laws adopted August 4, 1995 and
                                    incorporated by reference to Exhibit 3 to
                                    Form 10-SB, filed with the Commission on
                                    December 27, 1999.

                  10.      (i)      Patent License between Augrid of Nevada,
                                    Inc. and CeraVision (Ireland) Limited dated
                                    7 July 2000 and incorporated by reference to
                                    Form 10-KSB for the fiscal year ended
                                    December 31, 2001, filed with the Commission
                                    on April 1, 2002.

                           (ii)     Exclusive Project Agreement relating to
                                    Displays for Use in Automobiles between
                                    Augrid of Nevada, Inc. and CeraVision
                                    Limited dated 7 July 2000 and incorporated
                                    by reference to Form 10-KSB for the fiscal
                                    year ended December 31, 2001, filed with the
                                    Commission on April 1, 2002. (iii) Letter of
                                    understanding between Augrid of Nevada, Inc.
                                    and the City of Akron, Ohio regarding the
                                    purchase or lease (with purchase option) of
                                    an approximately five-acre parcel of land
                                    located in the city's Ascot Industrial Park,
                                    dated December 17, 1999 and incorporated by
                                    reference to Form 10-KSB for the fiscal year
                                    ended December 31, 2001, filed with the
                                    Commission on April 1, 2002.

                           (iv)     AuGRID of Nevada, Inc. 2002 Long-Term
                                    Incentive Plan incorporated by reference to
                                    Form S-8 filed with the Commission on August
                                    5, 2002.

                  23.               Consent of Independent Certified Accountants

         (b)   Reports on Form 8-K

               On July 2, 2002, we filed a Form 8-K, Item 5, to report that
               our Board of Directors unanimously had approved a one-to-fifty
               reverse split of our common stock and that the split also had
               been approved by a majority of our shareholders in an action
               taken by written consent.


                                       18
<PAGE>
SIGNATURES

         In accordance with Section 13 or 15(d) of the Exchange Act, the
Registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                          AUGRID OF NEVADA, INC.


Dated: August 19, 2002                    By: /s/ M. J. SHAHEED
                                              -----------------
                                          M. J. Shaheed
                                          President and Chief Executive Officer

Dated: August 19, 2002                    By: /s/ MARY F. SLOAT-HOROSZKO
                                              --------------------------
                                          Mary F. Sloat-Horoszko
                                          Treasurer/Secretary


                                       19