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, 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 0-25413


                                   REINK CORP.
        (Exact name of Small Business Issuer as Specified in its Charter)


                       DELAWARE                                 65-0602729
             (State or Other Jurisdiction                      (IRS Employer
           of Incorporation or Organization)                 Identification No.)

               2550 Haddonfield Road, Pennsauken, New Jersey 08110

                    (Address of Principal Executive Offices)

                                 (856) 488-9599
                (Issuer's Telephone Number, Including Area Code)

     Check whether the issuer (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 (or for such shorter  period that the  registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days.

                                  Yes _x_ No___

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest  practicable date: As of Aug 19, 2002 the Registrant had
21,652,850 shares of Common Stock outstanding.

            Transmittal Small Business Disclosure Format (check one)


Yes ______  No  ___x___
<PAGE>

                                   REINK CORP.
                                   FORM 10-QSB
                       For the Quarter Ended June 30, 2002


                                   Index                                 Page
                                                                         Number

PART I    CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Item 1    Balance Sheet at June 30, 2002                                       3

          Statements of Operations for the three and six month periods
          ended June 30, 2002 and June 30, 2001                                4

          Statements of Cash Flows for the three and six month periods
          ended June 30, 2002 and June 30, 2001                                5

          Notes to Consolidated Financial Statements                       6 - 8

Item 2    Management's Discussion and Analysis or Plan of Operation       9 - 10

PART II

Item 1    Legal Proceedings                                                   11
Item 2    Changes in Securities                                               11
Item 3    Defaults Upon Senior Securities                                     11
Item 4    Submission of Matters to a Vote of Security Holders                 11
Item 5    Other Information                                                   11
Item 6    Exhibits and Reports on Form 8 - K                                  11





                                        2
<PAGE>

                          REINK CORP. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET
                                  JUNE 30, 2002
                                   (unaudited)

                                     ASSETS
<TABLE>
<CAPTION>

CURRENT ASSETS
<S>                                                                                                           <C>
                         Cash and Cash Equivalents                                                            $     126,796
                         Accounts Receivable (less allowance for doubtful accounts of $11,700)                      665,472
                         Inventories                                                                                694,104
                         Prepaid Expenses and Other Current Assets                                                   27,030
                                                                                                               ------------
                              TOTAL CURRENT ASSETS                                                                1,513,402

PROPERTY, PLANT AND EQUIPMENT, net                                                                                1,170,287

GOODWILL, net                                                                                                     1,012,030

PATENTS                                                                                                             102,000
                                                                                                               ------------
                                                                                                                $ 3,797,719
                                                                                                               ============
                  LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
                         Accounts Payable                                                                       $ 1,847,802
                         Accrued Expenses (including $110,500 to a related party)                                   335,949
                         Due to Financing Company                                                                   154,451
                         Due to Related Party                                                                       231,600
                         Notes Payable - Related Parties (including accrued
                              interest of $131,000)                                                                 463,500
                         Notes Payable                                                                              185,000
                         Mortgage Payable                                                                           600,000
                                                                                                               ------------
                              TOTAL CURRENT LIABILITIES                                                           3,818,302
                                                                                                               ------------

STOCKHOLDERS' DEFICIT
                         Common Stock, $.001 par value, 100,000,000 shares authorized,
                              21,652,850 shares issued and outstanding                                               21,653
                         Additional Paid-In-Capital                                                               6,285,847
                         Accumulated Deficit                                                                     (6,328,083)
                                                                                                               ------------
                              TOTAL STOCKHOLDERS' DEFICIT                                                           (20,583)
                                                                                                               ------------
                                                                                                                $ 3,797,719
                                                                                                               ============
</TABLE>


             See notes to consolidated financial statements.

                                        3
<PAGE>
                          REINK CORP. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                     Three Months Ended                    Six Months Ended
                                                               -------------------------------     -------------------------------
                                                               June 30, 2002     June 30, 2001     June 30, 2002     June 30, 2001

<S>                                                              <C>               <C>               <C>                <C>
REVENUES                                                         $ 2,653,706       $ 2,645,869       $ 4,793,310        $ 4,943,689

COST OF GOODS SOLD                                                 1,619,665         1,784,327         3,017,655          3,165,480
                                                               -------------       -----------       -----------        ------------
             GROSS PROFIT                                          1,034,041           861,542         1,775,655          1,778,209
                                                               -------------       -----------       -----------        ------------
OPERATING EXPENSES
             Selling, general and administrative                     794,412           738,283         1,390,878          1,522,820
             Non-cash compensation and fees                                -           190,150                 -            390,150
             Research and development                                 38,354             9,409            62,137             10,139
             Depreciation and amortization                            59,144            83,791           121,394            164,135
                                                               -------------       -----------       -----------        ------------
             TOTAL OPERATING EXPENSES                                891,910         1,021,633         1,574,409          2,087,244
                                                               -------------       -----------       -----------        ------------

INCOME (LOSS)  FROM OPERATIONS                                       142,131          (160,091)          201,246           (309,035)

INTEREST EXPENSE                                                      62,880            62,265           109,093             91,723
                                                               -------------       -----------       -----------        ------------
             NET INCOME (LOSS)                                      $ 79,251        $ (222,356)        $  92,153         $ (400,758)
                                                               =============       ===========       ===========        ============
NET INCOME (LOSS) PER SHARE, BASIC AND DILUTED                      $   0.00        $    (0.01)        $    0.00          $   (0.02)
                                                               =============       ===========       ===========        ============
WEIGHTED AVERAGE NUMBER OF SHARES USED IN
             COMPUTATION                                          21,652,850        20,507,851        21,015,350         20,507,851
                                                               =============       ===========       ===========        ============
</TABLE>


                 See notes to consolidated financial statements.







                                        4
<PAGE>
                          REINK CORP. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                                                    Six Months Ended June 30,
                                                                                                    -------------------------
                                                                                                      2002              2001
                                                                                                    ------------    ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                                                   <C>           <C>
                Net income (loss)                                                                     $ 92,153      $ (400,758)
                                                                                                    ------------    ------------

                Adjustments to reconcile net income (loss) to net cash
                provided by (used in) operating activities:
                  Depreciation and amortization                                                        121,394        164,134
                  Stock issued for services                                                                  -        390,150
                  Warrants issued inconnection with notes payable                                       33,221              -

                Changes in operating assets and liabilities:
                  Accounts receivable                                                                   55,151       (243,568)
                  Prepaid expenses and other current assets                                            (20,000)           700
                  Inventories                                                                          (92,558)       (32,781)
                  Other assets                                                                               -        (25,650)
                  Accounts payable and accrued expenses                                               (251,914)      440,487
                                                                                                    ------------    ------------
                      Total Adjustments                                                               (154,706)      693,472
                                                                                                    ------------    ------------
                NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                                    (62,553)      292,714
                                                                                                    ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
                Purchase of fixed assets                                                               (26,463)       (85,746)
                                                                                                    ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES
                Repayment of Bank Loans                                                                      -       (242,860)
                Repayment of borrowing to financing company                                           (160,815)             -
                Proceeds from issuance of (Repayment of) Notes Payable                                 185,000         (5,000)
                Repayment of Notes Payable to shareholder                                                    -         (7,000)
                Principal payments on mortgage payable                                                       -         (2,160)
                Proceeds from sale of common stock and warrants                                         80,000              -
                                                                                                    ------------    ------------
                  NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                                  104,185        (257,020)
                                                                                                    ------------    ------------
NET INCREASE (DECREASE) IN CASH                                                                         15,169        (50,052)

CASH AT BEGINNING OF YEAR                                                                              111,627        140,531
                                                                                                    ------------    ------------
CASH AT END OF PERIOD                                                                                $ 126,796       $ 90,479
                                                                                                    ============    ============
</TABLE>

                 See notes to consolidated financial statements.

                                        5


<PAGE>

                          REINK CORP. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2002
                                   (unaudited)


1.   BASIS OF PRESENTATION

     The  accompanying  unaudited  consolidated  financial  statements have been
     prepared in accordance with generally  accepted  accounting  principles for
     interim  financial   information  and  the  instructions  to  Form  10-QSB.
     Accordingly,  they do not  include  all of the  information  and  footnotes
     required by generally accepted accounting principles for complete financial
     statements.  In the opinion of management,  all adjustments  (consisting of
     normal accruals)  considered  necessary for a fair  presentation  have been
     included.  Operating results for the six months ended June 30, 2002 are not
     necessarily  indicative  of the results  that may be expected  for the full
     fiscal year ending December 31, 2002. For further information, refer to the
     financial  statements  and  footnotes  included on Form 10-KSB for the year
     ended December 31, 2001.

2.   NEW ACCOUNTING PRONOUNCEMENTS

     In July 2001, the Financial  Accounting Standards Board issued Statement of
     Financial  Accounting  Standards SFAS No. 141, "Business  Combinations" and
     SFAS No.  142,  "Goodwill  and Other  Intangible  Assets."  SFAS No. 141 is
     effective for all business combinations completed after June 30, 2001. SFAS
     No. 142 is effective for fiscal years  beginning  after  December 15, 2001.
     Effective  January  1,  2002,  the  Company  adopted  SFAS No.  142,  which
     eliminates the amortization  for goodwill and other intangible  assets with
     indefinite  lives.  Intangible assets with lives restricted by contractual,
     legal,  or other means will  continue  to be  amortized  over their  useful
     lives. Goodwill and other intangible assets not subject to amortization are
     tested for impairment  annually or more  frequently if events or changes in
     circumstances  indicate  that the asset  might be  impaired.  SFAS No.  142
     requires a two-step process for testing  impairment.  First, the fair value
     of each  reporting  unit is compared  to its  carrying  value to  determine
     whether an  indication of  impairment  exists.  If impairment is indicated,
     then the implied fair value of the reporting  unit's goodwill is determined
     by  allocating  the  unit's  fair  value  to  its  assets  and  liabilities
     (including any unrecognized intangible assets) as if the reporting unit had
     been  acquired  in a business  combination.  The amount of  impairment  for
     goodwill  and other  intangible  assets is  measured  as the  excess of its
     carrying  value over its implied fair value.  If a portion of the Company's
     goodwill or  intangible  assets is impaired,  then the Company will have to
     include an  impairment  charge on its statement of  operations,  which will
     have the effect of  reducing  net  income.

     The management of the Company prepared an analysis of its evaluation of the
     fair  value  amount of its  goodwill  and  determined  that the fair  value
     exceeded the carrying  amount as of June 30, 2002,  and  consequently  , no
     impairment exists at such date.

     In accordance with SFAS No. 142, the Company  discontinued  amortization of
     goodwill  effective  January 1, 2002. The pro forma effects of the adoption
     of SFAS No. 142 on net income (loss) is as follows:
<TABLE>
<CAPTION>

                                                                   Six Months Ended  June 30,
                                                              -----------------------------------------
                                                                 2002                       2001
                                                                 ------                   ------
<S>                                                           <C>                       <C>
      Net income (loss), as reported                          $ 92,153                  $(400,758)
      Goodwill amortized net of $0 tax                              --                     66,000
                                                              ------------              --------------
      Net income (loss), pro forma                            $ 92,153                  $(334,758)
                                                              ============              ==============

</TABLE>

     On April 30,  2002,  the FASB  issued  SFAS No.  145,  "Rescission  of FASB
     Statement  No.  4,  44 and  64,  Amendment  of FASB  Statement  No.13,  and
     Technical Corrections." The rescission of SFAS No.4, "Reporting

                                        6
<PAGE>

     Gains and Losses from Extinguishments, and "SFAS No.64, "Extinguishments of
     Debt made to Satisfy  Sinking Fund  Requirements,"  which amended SFAS No.4
     will  affect  income  statement  classification  of gains and  losses  from
     extinguishment  of debt.  SFAS No.4  requires  that gains and  losses  from
     extinguishment of debt be classified as an extraordinary item, if material.
     Under  SFAS  No.  145,  extinguishment  of  debt is now  considered  a risk
     management  strategy  by the  reporting  enterprise  and the FASB  does not
     believe it should be  considered  extraordinary  under the  criteria in APB
     Opinion No.30, "Reporting the Results of  Operations-Reporting  the Effects
     of  Disposal  of a Segment of a Business,  and  Extraordinary,  Unusual and
     Infrequently   Occurring   Events  and   Transactions",   unless  the  debt
     extinguishment  meets the unusual in nature and  infrequency  of occurrence
     criteria in APB Opinion No. 30. SFAS No. 145 will be  effective  for fiscal
     years beginning after May 15, 2002. Upon adoption,  extinguishments of debt
     shall be classified under the criteria in APB Opinion No. 30.

     In June 2002, the FASB issued SFAS No.146, "Accounting for Costs Associated
     with  Exit or  Disposal  Activities".  SFAS  No.  146  addresses  financial
     accounting  and  reporting  for  costs  associated  with  exit or  disposal
     activities  and  nullified  Emerging  Issues  Task  Force  Issue No.  94-3,
     "Liability  Recognition for Certain Employee Termination Benefits and Other
     Costs  to  Exit  an  Activity   (including  Certain  Costs  Incurred  in  a
     Restructuring)."  SFAS  No.  146  requires  that  a  liability  for a  cost
     associated  with  an exit or  disposal  activity  be  recognized  when  the
     liability is incurred. A fundamental conclusion reached by the FASB in this
     statement is that an entity's  commitment  to a plan,  by itself,  does not
     create a present  obligation  to others  that  meets  the  definition  of a
     liability.  SFAS No. 146 also  establishes that fair value is the objective
     for initial measurement of the liability.  The provisions of this statement
     are effective  for exit or disposal  activities  that are  initiated  after
     December 31, 2002, with early application  encouraged.  The Company has not
     yet  determined  the impact of SFAS No.146 on its  financial  position  and
     results of operations, if any.


3.   NOTES PAYABLE - RELATED PARTY

     At December 31, 2001,  the Company had advances from a  shareholder  in the
     amount of $220,000 due on demand and accrued  interest of $88,000,  bearing
     interest at 3% per month. Effective January 1, 2002, the lender agreed to a
     new rate of 14% per annum on the  aggregate  balance of $308,000,  with all
     other terms remaining unchanged.

4.   NOTES PAYABLE

     In April 2002,  the Company  received  an  aggregate  of $185,000 of bridge
     financing of which  $125,000,  $50,000 and $10,000 was due on June 2, 2002,
     June 24, 2002,  and July 1, 2002,  respectively.  In  consideration  of the
     loans,  the Company  issued an  aggregate of 103,600  warrants  exercisable
     anytime  over a period  ranging  from three to five years to  purchase  one
     share of common  stock for each  warrant  at $.50 per  share.  The  Company
     recorded a charge of approximately  $33,000 related to the issuance of such
     warrants.  The  aforementioned  loans bear interest ranging from 25% to 30%
     per annum commencing on the due date of the loans,  which have not yet been
     repaid.

     In May 2002,  the Company  entered  into an agreement  with The  Thornwater
     Company,  L.P.  ("Thornwater")  to  raise  up  to  $2  million  in  secured
     convertible  promissory notes. The notes are to be sold in units of $50,000
     per unit with a minimum offering of five units and a maximum offering of 40
     units.  The notes will bear  interest at eight  percent (8%) per annum with
     the option to convert into common shares of the Company at $0.55 per share.
     The Company will pay a fee of twelve  percent (12%) of gross  proceeds from
     each issuance if the investor is referred by  Thornwater,  and five percent
     (5%) of gross  proceeds if the  investor is  referred  by the  Company.  In



                                        7
<PAGE>

     addition, in accordance with the agreement, the Company will issue warrants
     to  Thornwater  to  purchase  the  Company's  stock at a rate  equal to ten
     percent  (10%) of the  number of shares  that the notes  being  issued  are
     convertible. As of June 30, 2002, the Company has not received any funding.

5.   MORTGAGE PAYABLE

     The Company's  mortgage of $600,000 is due on August 31, 2002.  The Company
     is seeking to refinance its mortgage or seek a short-term  extension of the
     due date of such  debt.  There is no  assurance  that the  Company  will be
     successful in obtaining the aforementioned  refinancing and or extension of
     its mortgage.

6.   STOCKHOLDERS' DEFICIT

     In April 2002,  the Company  issued  300,000  shares of common stock to two
     officers of the Company for services previously  rendered.  The Company had
     recorded an expense  and an accrued  liability  of $90,000 at December  31,
     2001 for the issuance of such shares.

     Also in April 2002,  the Company  issued 975,000 shares of common stock and
     487,000 warrants for $312,000. The Company had previously received $232,000
     in December 2001, and the balance of $80,000 was received in March 2002.

7.    LITIGATION

     During  June 1999,  the  Company  entered  into a Product  Development  and
     Manufacturing  agreement  with FAES USA, Inc.  (FAES).  In March 2000,  the
     Company was sued for breach of contract  for  approximately  $250,000.  The
     Company and FAES entered  into a settlement  agreement in June 2001 whereby
     FAES will receive credit for Reink product,  at the Company's selling price
     of $241,000,  with the full amount to be satisfied by December 2002. During
     the  quarter  ended  June  30,  2002,  the  Company  fully  satisfied  this
     settlement agreement.

     In February  2001,  Tiger Direct,  Inc  ("Tiger")  filed a complaint in the
     Superior  Court of New  Jersey  against  the  Company  alleging  breach  of
     contract  and seeking  damages in the amount of $22,747.  In May 2001,  the
     Company filed a defense  based upon the failure of Tiger to obtain  written
     approval of the  advertising  text and layout as per the agreement.  During
     the quarter  ended June 30, 2002,  the  complaint  was  dismissed  with the
     Company making a payment of $11,250.







                                        8
<PAGE>

ITEM 2            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

SIX MONTHS ENDED JUNE 30, 2002 AS
COMPARED TO SIX MONTHS ENDED JUNE 30, 2001

REVENUES - Total revenues  decreased to $4,793,310 for the six months ended June
30, 2002,  compared to $4,943,689  for the same period last year.  This decrease
was due to decreased sales in  remanufactured  laser toner  cartridges.  For the
three  months  ended June 30,  2002,  total  revenues  increased  to  $2,653,706
compared to $2,645,869 for the same period last year.

GROSS PROFIT - Gross profit  decreased  to  $1,775,655  for the six months ended
June 30,  2002,  compared  to  $1,778,209  for the same  period  last  year.  In
addition,  the gross profit  margin  increased  over the same period from 36% to
37%. For the three month period ended June 30, 2002, the gross profit  increased
to $1,034,041 compared to $861,542 for the same period last year and the related
gross profit margin  percentage  increased over the same period from 33% to 39%.
This was due to the increased sales of ink products, which have larger margins.

OPERATING EXPENSES - Operating expenses decreased to $891,910 and $1,574,409 for
the three and six  months  ended  June 30,  2002,  compared  to  $1,021,633  and
$2,087,244 for the same periods last year.  Selling,  general and administrative
expenses  were 30% and 29% of sales for the three and six months  ended June 30,
2002,  compared  to 28% and 31% of  sales  during  the  same  period  last  year
(exclusive of non-cash charges).

NET  INCOME - As a result of the  above,  the  Company  recorded a net income of
$79,251 and $92,153 for the three and six months ended June 30,  2002,  compared
with losses of ($222,356) and ($400,758) for the same periods last year. The net
losses for the three and six month periods ended June 30, 2001 included $190,150
and $390,150 respectively of non-cash compensation.

LIQUIDITY AND CAPITAL RESOURCES

The Company has financed its cash  requirements  primarily  through  operations,
bank  borrowings,  and sales of its  securities  to  accredited  investors.  The
Company's previous bank credit facility permitted borrowings of up to $1,000,000
against a fixed percentage of qualified accounts  receivable and inventory.  The
credit  facility  terminated on November 25, 2000 and was  refinanced  effective
December 31, 2001 with an  asset-based  lender  providing a $1,000,000  facility
based on 75% of accounts receivable.  The facility allows for an up front fee of
1.25% of the  accounts  receivable  financed and interest at prime plus 4% while
the account remains outstanding.  The facility is secured by a first lien on all
assets  of the  Company,  and is for a term of one (1)  year  with  one (1) year
renewal periods.

As  of  June  30,  2002,  the  Company  had  a  working  capital  deficiency  of
approximately  $2,305,000  including the mortgage payable of $600,000,  which is
due August 31, 2002. The Company has no long-term debt. The auditors'  report on
the financial  statements  included in the financial  statements at December 31,
2001 contains an explanatory  paragraph about the Company's  ability to continue
as a going  concern.  The  Company  expects  that the  growth and  expansion  of
operations will require capital  infusions of a minimum of $1,000,000  necessary
to fund the  purchase of inventory  and to meet the  Company's  working  capital
needs.  During April 2002 the Company borrowed an aggreate of $185,000 of bridge
financing  which was not repaid when due.  Consequently  the Company is paying a
default  interest  rate of 25% to 30% on these loans.  The Company is seeking to
raise up to $2,000,000  through the issuance of secured  convertible  promissory
notes to accredited  investors.  In addition,  the Company has an agreement from
its largest  supplier to write off $300,000 upon receiving a lump sum payment of
$250,000  from the  proceeds  of the new  financing.  The  Company is seeking to
refinance  its  $600,000  mortgage  which  is due  August  31,  2002  or  seek a
short-term  extension  of  the  due  date  of  such  mortgage.  There  can be no
assurances  that the Company will be successful in obtaining the  aforementioned
financing  or  refinancing  and  or  extension  of  its  mortgage.  If it is not
successful,  the Company would seek to negotiate other terms for the issuance of
debt, and/or pursue additional bridge financing,  negotiate with suppliers for a
reduction  of debt  through  the  issuance  of stock,  and seek to raise  equity
through the sale of its common stock.

Except as provided above,  the Company has no present  commitment that is likely
to result in its  liquidity  increasing  or  decreasing  in any material way. In
addition,  except as noted  above,  the  Company  knows of no trend,  additional
demand,  event or uncertainty that will result in, or that is reasonably  likely
to result in, the Company's  liquidity  increasing or decreasing in any material
way.  The Company  has no material  commitments  for capital  expenditures.  The
Company  knows  of  no  material  trends,  favorable  or  unfavorable,   in  the
Registrant's capital resources.

                                        9
<PAGE>

NEW ACCOUNTING PRONOUNCEMENTS

On April 30, 2002,  the FASB issued SFAS No. 145,  "Rescission of FASB Statement
No. 4, 44 and 64, Amendment of FASB Statement No.13, and Technical Corrections."
The rescission of SFAS No.4, "Reporting Gains and Losses from  Extinguishments",
and  SFAS  No.64,   "Extinguishments  of  Debt  made  to  Satisfy  Sinking  Fund
Requirements,"   which   amended   SFAS  No.4  will  affect   income   statement
classification  of gains  and  losses  from  extinguishment  of debt.  SFAS No.4
requires that gains and losses from  extinguishment  of debt be classified as an
extraordinary item, if material.  Under SFAS No. 145,  extinguishment of debt is
now considered a risk  management  strategy by the reporting  enterprise and the
FASB does not believe it should be considered  extraordinary  under the criteria
in APB Opinion No.30, "Reporting the Results of Operations-Reporting the Effects
of  Disposal  of a  Segment  of  a  Business,  and  Extraordinary,  Unusual  and
Infrequently Occurring Events and Transactions",  unless the debt extinguishment
meets the  unusual in nature  and  infrequency  of  occurrence  criteria  in APB
Opinion No. 30. SFAS No. 145 will be effective for fiscal years  beginning after
May 15, 2002. Upon adoption,  extinguishments  of debt shall be classified under
the criteria in APB Opinion No. 30.

In June 2002, the FASB issued SFAS No.146, "Accounting for Costs Associated with
Exit or Disposal  Activities".  SFAS No. 146 addresses financial  accounting and
reporting for costs  associated  with exit or disposal  activities and nullified
Emerging  Issues Task Force Issue No. 94-3,  "Liability  Recognition for Certain
Employee  Termination  Benefits  and Other Costs to Exit an Activity  (including
Certain  Costs  Incurred  in a  Restructuring)."  SFAS No. 146  requires  that a
liability for a cost associated with an exit or disposal  activity be recognized
when the liability is incurred. A fundamental  conclusion reached by the FASB in
this  statement is that an entity's  commitment to a plan,  by itself,  does not
create a present  obligation to others that meets the definition of a liability.
SFAS No. 146 also  establishes  that fair  value is the  objective  for  initial
measurement of the liability. The provisions of this statement are effective for
exit or disposal  activities  that are initiated  after December 31, 2002,  with
early application  encouraged.  The Company has not yet determined the impact of
SFAS No.146 on its financial position and results of operations, if any.



FORWARD LOOKING STATEMENTS

This Form 10-QSB and other  reports  filed by the Company from time to time with
the Securities and Exchange  Commission  (collectively the "Filings") contain or
may contain  forward  looking  statements  and  information  that are based upon
beliefs of, and information  currently available to, the Company's management as
well as estimates and assumptions made by the Company's management.

When  used  in the  filings  the  words  ``anticipate",  "believe",  "estimate",
"expect",  "future",  "intend", "plan" and similar expressions as they relate to
the Company or the Company's management  identifying forward looking statements.
Such  statements  reflect the current view of the Company with respect to future
events and are subject to risks,  uncertainties and assumptions  relating to the
Company's  operations and results of operations  and any businesses  that may be
acquired  by the  Company.  Should one or more of these  risks or  uncertainties
materialize,  or should  the  underlying  assumptions  prove  incorrect,  actual
results may differ  significantly from those anticipated,  believed,  estimated,
intended or planned.

The Securities and Exchange  Commission (SEC) recently issued proposed  guidance
for  disclosure  of critical  accounting  policies.  The SEC  defines  "critical
accounting  policies" as those that require  application  of  management's  most
difficult,  subjective  or complex  judgments,  often as a result of the need to
make estimates  about the effects of matters that are  inherently  uncertain and
may change in  subsequent  periods.  The company  plans to adopt the  disclosure
requirements  regarding  critical  accounting  policies once the final rules are
required to be adopted.


                                                     10
<PAGE>

         REINK CORP.

         PART II
         OTHER INFORMATION

         Item 1     Legal Proceedings

                    In  February  2001,  Tiger  Direct,  Inc  ("Tiger")  filed a
                    complaint in the Superior Court for New Jersey against Reink
                    Corp. alleging breach of contract and seeking damages in the
                    amount of $22,747.  In May 2001, the Company filed a defense
                    based upon the failure of Tiger to obtain  written  approval
                    of the  advertising  text and  layout as per the  agreement.
                    During the quarter  ended June 30, 2002,  the  complaint was
                    dismissed with the Company making a payment of $11,250.

                    There have been no other  material  changes  to the  pending
                    legal proceedings more fully described in the Company's Form
                    10-KSB for the period ended December 31, 2001.

         Item 2     Changes in Securities

                    In April 2002,  the Company  issued 300,000 shares of common
                    stock to two officers of the Company for services previously
                    rendered. The Company had recorded an expense and an accrued
                    liability  of $90,000 at December  31, 2001 for the issuance
                    of such shares.

                    Also in April 2002,  the Company  issued  975,000  shares of
                    common stock and 487,000 warrants for $312,000.  The Company
                    had previously  received  $232,000 in December 2001, and the
                    balance of $80,000 was received in March 2002.

         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 8-K
                    (a)   Exhibits
                            Exhibit (99.1)
                    (b)   Reports on Form 8-K
                            None

         SIGNATURES

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


                                                    REINK CORP.
                                                    (Registrant)


         Date August 19, 2002                        By:   William E. Gallagher
                                                    ----------------------------
                                                              President
                                       11