SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                   FORM 10-QSB


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


                     FOR THE PERIOD ENDED MARCH 31, 2003


                         COMMISSION FILE NUMBER: 0-29417


                                 ICRYSTAL, INC.
                       __________________________________

             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


      DELAWARE                                  62-1581902
_______________________            ____________________________________

(STATE OF ORGANIZATION)            (I.R.S. EMPLOYER IDENTIFICATION NO.)


                          3237 KING GEORGE HWY., STE. 101-B
                    SURREY, BRITISH COLUMBIA, V5P 1B7 CANADA
                 ______________________________________________

                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)


                                (604)542-5021
              __________________________________________________

              REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE


CHECK  WHETHER THE ISSUER (1) FILED ALL REPORTS  REQUIRED TO BE FILED BY SECTION
13 OR 15(d) OF THE  EXCHANGE  ACT  DURING  THE PAST 12  MONTHS  AND (2) HAS BEEN
SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS. YES  [X]   NO  [ ]


THERE ARE 19,732,785 SHARES OF COMMON STOCK OUTSTANDING AS OF March 31, 2003

<PAGE>

PART I     FINANCIAL INFORMATION

           ITEM 1     FINANCIAL STATEMENTS


<TABLE>
<CAPTION>

                         ICRYSTAL, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET

                                         ASSETS
                                                                           rch 31, 2003
CURRENT ASSETS                                                             (Unaudited)
                                                                           ____________
<S>                                                                         <C>
  Cash                                                                      $    5,908
  Accounts receivable                                                           86,184
                                                                            __________

    Total current assets                                                        92,092
                                                                            __________

FIXED ASSETS HELD FOR DISPOSAL (NET)                                            68,336
                                                                            __________

OTHER ASSETS
  Deposits                                                                       6,249
  Deferred tax asset (net)                                                           -
                                                                            __________

    Total other assets                                                           6,249
                                                                            __________

    Total assets                                                            $  166,677
                                                                            ==========

                         LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
  Accounts payable and accrued expenses held for disposal                   $  145,997
  Related party payable held for disposal                                       29,449
  Current portion of debt - West Peak note                                       1,063
  Convertible debt and related interest held for disposal                      549,767
  Customer deposit                                                              65,000
  Current portion of deferred revenue                                           26,800
                                                                            __________

    Total current liabilities                                                  818,076
                                                                            __________

DEFERRED REVENUE                                                                33,500
                                                                            __________

  Total liabilities                                                            851,576
                                                                            __________
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIT
  Common stock, $.01 par value, 30,000,000 shares authorized, 19,732,785
    shares issued and outstanding at March 31, 2003                            197,328
  Additional paid-in capital                                                 6,206,212
  Accumulated deficit                                                       (7,088,439)
                                                                            __________

    Total stockholders' deficit                                               (684,899)
                                                                            __________

    Total liabilities and stockholders' deficit                             $  166,677
                                                                            ==========
</TABLE>

                 See Notes to the Interim Financial Statements

<PAGE>
<TABLE>
<CAPTION>

                         ICRYSTAL, INC. AND SUBSIDIARY
          CONSOLIDATED STATEMENTS OF INCOME AND OPERATIONS (UNAUDITED)

                                                                                THREE MONTHS ENDED
                                                                                    MARCH 31,
                                                                            2003              2002
                                                                         ___________      ___________

<S>                                                                      <C>              <C>
SOFTWARE ROYALTIES                                                       $         -      $   274,998
                                                                         ___________      ___________

OPERATING COSTS AND EXPENSES
  General and administrative                                                       -           49,790
  Research and development                                                         -          131,333
  Consulting                                                                       -           81,831
  Marketing expense                                                                -            3,289
  Depreciation and amortization expense                                            -            1,993
                                                                         ___________      ___________

    Net loss from operations                                                       -            6,762
                                                                         ___________      ___________

  Interest expense                                                                 -           85,280
                                                                         ___________      ___________

    Net loss before income taxes                                                   -          (78,518)
                                                                         ___________      ___________

  Provision for income taxes                                                       -                -
                                                                         ___________      ___________

    Loss from continuing operations                                                -          (78,518)
                                                                         ___________      ___________
Discontinued operations:
    Loss from discontinued operations
    (net of income tax effect of $0)                                         (11,577)               -
                                                                         ___________      ___________

    Net loss                                                             $   (11,577)       $ (78,518)
                                                                         ===========      ===========

  Loss per share                                                         $     (0.00)         $ (0.00)
                                                                         ===========      ===========

Weighted average common shares
  outstanding  (basic and diluted)                                        19,732,785       16,782,785
                                                                         ===========      ===========
</TABLE>

                 See Notes to the Interim Financial Statements

<PAGE>
<TABLE>
<CAPTION>

                         ICRYSTAL, INC. AND SUBSIDIARY
               CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


                                                                                      THREE MONTHS ENDED MARCH 31,
                                                                                      2003                    2002
                                                                                   _________                ________
<S>                                                                                <C>                      <C>
CASH FLOWS FROM OPERATING ACTIVITIES
     Net loss                                                                      $ (11,578)               $(78,518)

     Adjustments to reconcile net loss to net cash used in operating activities:

        Depreciation and amortization expense                                              -                   1,993
        Amortization of loan origination fees                                              -                  34,278
        (Increase) decrease in accounts receivable                                      (980)                    300
        Decrease in prepaid expenses                                                  14,300                       -
        Increase in accounts payable and accrued expenses                              3,540                  16,696
        Decrease in related party payable                                             (3,276)                    (41)
        Increase in interest payable                                                      79                  50,252
        Decrease in deferred revenue                                                  (6,700)                 (9,700)
                                                                                   _________                ________

        Net cash provided by (used in) operating activities                           (4,615)                 15,260
                                                                                   _________                ________
CASH FLOWS FROM INVESTING ACTIVITIES
     Purchase of capital assets                                                       (2,829)                 (8,948)
                                                                                   _________                ________

        Net cash used in investing activities                                         (2,829)                 (8,948)
                                                                                   _________                ________
CASH FLOWS FROM FINANCING ACTIVITIES
     Principal payments on notes and advances                                              -                  (7,650)
                                                                                   _________                ________

        Net cash used in financing activities                                              -                  (7,650)
                                                                                   _________                ________

        Net decrease in cash                                                          (7,444)                 (1,338)

        Cash and cash equivalents at December 31, 2002, and 2001                      13,352                   1,387
                                                                                   _________                ________

        Cash and cash equivalents at March 31, 2003, and 2002                      $   5,908                $     49
                                                                                   =========                ========

SUPPLEMENTARY INFORMATION
During the three months  ended March 31, 2003 and 2002,  the Company paid $0 and
     $440 in interest, respectively.

The Company paid no taxes during the three months ended March 31, 2003 or 2002.

</TABLE>

                 See Notes to the Interim Financial Statements


<PAGE>

                         ICRYSTAL, INC., AND SUBSIDIARY
                      NOTES TO INTERIM FINANCIAL STATEMENTS
                                 March 31, 2003

1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
         BASIS OF PRESENTATION
         The accompanying  unaudited interim  financial  statements of ICrystal,
         Inc.  (the  "Company")  have been prepared by the Company in accordance
         with accounting  principles  generally accepted in the United States of
         America,  pursuant to the Securities and Exchange  Commission rules and
         regulations.  In management's  opinion all adjustments  necessary for a
         fair  presentation  of  the  results  for  interim  periods  have  been
         reflected  in  the  interim  financial   statements.   The  results  of
         operations for any interim period are not necessarily indicative of the
         results for a full year. All  adjustments  to the financial  statements
         are of a normal recurring nature.

         Certain  information  and  footnote  disclosures  normally  included in
         financial  statements  prepared in accordance  with generally  accepted
         accounting  principles have been condensed or omitted. Such disclosures
         are those that would substantially  duplicate  information contained in
         the most recent audited  financial  statements of the Company,  such as
         significant accounting policies and stock options.  Management presumes
         that users of the  interim  statements  have read or have access to the
         audited  financial   statements  and  notes  thereto  included  in  the
         Company's most recent annual report on Form 10KSB.

         These financial statements have been prepared assuming that the Company
         will continue as a going concern.  The Company has sustained  recurring
         losses over the past years.  In the event that  future  operating  cash
         flows do not meet all of the Company's cash requirements,  it will need
         to obtain  additional  financing in the form of private  placements  of
         debt or equity securities.  Success in raising additional  financing is
         dependent on the Company's  ability to  demonstrate  that it can fulfil
         its  business  strategy to license its games and  websites and generate
         significant  royalty  revenues.  Should  the  Company  need  additional
         financing through debt or equity placements, there is no assurance that
         such financing will be available, if at all, at terms acceptable to the
         Company.  Management is planning to discontinue  operations and dispose
         of  certain  assets  in  order  to  relieve  notes  payable  and  other
         liabilities.

<PAGE>

                         ICRYSTAL, INC., AND SUBSIDIARY
                      NOTES TO INTERIM FINANCIAL STATEMENTS
                                 March 31, 2003

         NEW PRONOUNCEMENTS
         In February 2003 the FASB issued SFAS No. 149,  "Accounting for Certain
         Financial  Instruments with Characteristics of Liabilities and Equity,"
         which  is  effective  at the  beginning  of the  first  interim  period
         beginning after March 15, 2003. SFAS No. 149 establishes  standards for
         the Company's classification of liabilities in the financial statements
         that have  characteristics  of both liabilities and equity. The Company
         believes the  adoption of SFAS No. 149 will not have a material  effect
         on  the  Company's   consolidated  financial  position  or  results  of
         operations.

2.       RELATED PARTIES
         The Company is affiliated with the Canadian  chartered  accounting firm
         Slamko Visser through common  ownership.  During the three months ended
         March 31,  2003 and 2002,  the  Company  incurred  $5,243,  and $7,600,
         respectively, of expense to Slamko Visser for consulting and accounting
         fees and  related  costs.  As of March 31,  2003 the  payable to Slamko
         Visser was $29,449.

3.       MAJOR CUSTOMER
         During the three  months  ended  March 31,  2003 and 2002,  the Company
         received  essentially  all of its  revenue  from its  exclusive  master
         license with Manihi, Inc. The Company received $270,612 and $274,998 in
         the three  months  ended  March 31,  2003 and 2002  respectively,  from
         Manihi, Inc.

4.       DISCONTINUED OPERATIONS
         In  August  2001 the FASB  issued  Statement  of  Financial  Accounting
         Standards  No. 144 ("SFAS  144"),  "Accounting  for the  Impairment  of
         Long-Lived Assets", which requires a single accounting model to be used
         for  long-lived  assets to be sold and  broadens  the  presentation  of
         discontinued  operations to include a "component of an entity"  (rather
         than a segment  of a  business).  A  component  of an entity  comprises
         operations   and  cash  flows   that  can  be  clearly   distinguished,
         operationally and for financial  reporting  purposes,  from the rest of
         the entity.  A component  of an entity that is  classified  as held for
         sale, or has been disposed of, is presented as a discontinued operation
         if the  operations  and cash  flows of the  component  will be (or have

<PAGE>

                         ICRYSTAL, INC., AND SUBSIDIARY
                      NOTES TO INTERIM FINANCIAL STATEMENTS
                                 March 31, 2003

         been)  eliminated  from the  ongoing  operations  of the entity and the
         entity  will not have any  significant  continuing  involvement  in the
         operations  of the  component.  The Company  adopted SFAS 144 effective
         August 1, 2001.

         In early 2003 the Company  decided to dispose of its assets in order to
         relieve  its debt.  Accordingly  the  Company  was  accounted  for as a
         discontinued  operation.  Revenue from  discontinued  operations in the
         current quarter totaled $270,612.  It was agreed that all of the assets
         of the Company except cash and accounts  receivable  would be purchased
         in  exchange  for  $724,000  relief of the  $418,770  note  payable and
         related interest,  accounts payable,  and certain other liabilities.  A
         loss  from  discontinued   operations  of  $11,577  was  recorded.  The
         agreement will be finalized on May 29, 2003.


<PAGE>



PART II - Other Information

Item 1 - Exhibits

         99     Certification of CEO and CFO



<PAGE>


                                   SIGNATURES

Purusant to the  requirements  of Section 13 of the  Securities  Exchange Act of
1934, the Registrant has duly caused this registration statement to be signed on
its behalf by the undersigned, thereunto duly authorized.

Dated this 20th day of May, 2003


                              ICRYSTAL, INC.


                              By: /s/ LARRY J. HRABI
                                  -----------------
                                      Larry J. Hrabi
                                      CEO

May 20, 2003



<PAGE>


                                 CERTIFICATION


I, Larry Hrabi, certify that:

1.   I have reviewed this Quarterly Report on Form 10-QSB of i Crystal, Inc.;

2.   Based on my knowledge, this Quarterly Report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this annual
report;

3.   Based on my knowledge, the financial statements, and other financial
information included in this Annual Report,  fairly represent in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this Annual Report;

4.   As the registrant's sole certifying officer, I am responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     i)   Designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to me by others within those
          entities, particularly during the period in which this Annual Report
          is being prepared;

     ii)  Evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this Annual Report (the "Evaluation Date"); and

     iii) Presented in this Annual Report my conclusions about the effectiveness
          of the disclosure controls and procedures based on my evaluation as of
          the Evaluation Date;

5.   I have disclosed, based on my most recent evaluation, to the registrant's
auditors and the audit committee of the board of directors (or persons
performing the equivalent functions):

     i)   All significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and

     ii)  Any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

6.   I have indicated in this Annual Report  whether or not there  were
significant changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of my most recent
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.



May 20, 2003                                   /s/ LARRY HRABI
                                                __________________________

                                                   Larry Hrabi
                                                   Chairman and CFO