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 JUNE 30, 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 JUNE 30, 2003.

<PAGE>





                          ICRYSTAL, INC. AND SUBSIDIARY

                         INDEPENDENT ACCOUNTANT'S REPORT

                                       AND

                   CONDENSED CONSOLIDATED FINANCIAL STATEMENTS




<PAGE>



                          ICRYSTAL, INC. AND SUBSIDIARY
                                TABLE OF CONTENTS


PART I     FINANCIAL INFORMATION

           ITEM 1     FINANCIAL STATEMENTS

           Condensed Consolidated Balance Sheets

           Condensed Consolidated Statement of Operations (Unaudited)

           Condensed Consolidated Statement of Cash Flows (Unaudited)

           Notes to Condensed Consolidated Financial Statements
           (Unaudited)

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

SIGNATURES

PART II    OTHER INFORMATION


<PAGE>


                         ICRYSTAL, INC. AND SUBSIDIARY
                                 BALANCE SHEET


                                                                   June 30, 2003
                                                                    (Unaudited)
                                                                   _____________

                                     ASSETS

ACCOUNTS RECEIVABLE                                                 $    86,500
                                                                    ___________
   Total current assets                                                  86,500
                                                                    ___________
FIXED ASSETS
   Equipment                                                              6,116
   Furniture and fixtures                                                11,428
   Accumulated depreciation and amortization                             (4,913)
                                                                    ___________
   Total fixed assets                                                    12,631
                                                                    ___________
DEFERRED TAX ASSET (NET)                                                      -
                                                                    ___________
   Total assets                                                     $    99,131
                                                                    ===========

                      LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
   Accounts payable                                                 $     3,000
   Bank overdraft payable                                                   633
                                                                    ___________
   Total current and total liabilities                                    3,633
                                                                    ___________
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIT
   Common stock, $.01 par value, 30,000,000 shares authorized,
   19,732,785 shares issued and outstanding                             197,328
   Additional paid-in capital                                         6,206,212
   Accumulated deficit                                               (6,308,042)
                                                                    ___________
   Total stockholders' deficit                                           95,498
                                                                    ___________
   Total liabilities and stockholders' deficit                      $    99,131
                                                                    ===========

                 See notes to the Interim Financial Statements


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<TABLE>
<CAPTION>


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


                                                             Six Months Ended                   Three Months Ended
                                                                 June 30,                            June 30,
                                                       _____________________________       _____________________________
                                                          2003              2002              2003              2002
                                                       ___________       ___________       ___________       ___________
<S>                                                    <C>               <C>               <C>               <C>

REVENUES
   Software Royalties                                  $   486,926       $   626,046       $   486,926       $   351,048
   Management fees                                          28,685                 -            28,685                 -
                                                       ___________       ___________       ___________       ___________
                                                           515,611           626,046           515,611           351,048
                                                       ___________       ___________       ___________       ___________
OPERATING COSTS AND EXPENSES
   General and administrative                               58,397            96,384            58,397            46,594
   Management fees                                         356,257                 -           356,257                 -
   Research and development                                      -           266,856                 -           135,523
   Consulting                                              114,739           182,490           114,739           100,659
   Marketing expense                                           467             3,954               467               665
   Depreciation and amortization expense                     3,158             4,826             3,158             2,833
                                                       ___________       ___________       ___________       ___________
     Net loss from operations                              (17,407)           71,536           (17,407)           64,774
                                                       ___________       ___________       ___________       ___________
   Interest expense                                            166           153,433               166            68,153
                                                       ___________       ___________       ___________       ___________
     Net loss before income taxes                          (17,573)          (81,897)          (17,573)           (3,379)
                                                       ___________       ___________       ___________       ___________
   Provision for income taxes                                    -                 -                 -                 -
                                                       ___________       ___________       ___________       ___________
     Loss from continuing operations                       (17,573)          (81,897)          (17,573)           (3,379)
                                                       ___________       ___________       ___________       ___________
   Discontinued operations:
     Gain from disposal of assets
     (net of income tax effect of $0)                      782,691                 -           782,691                 -

     Gain on disposal of discontinued operations
     (net of income tax effect of $0)                        3,702                 -            15,279                 -
                                                       ___________       ___________       ___________       ___________
     Net income (loss)                                     768,820           (81,897)          780,397            (3,379)
                                                       ===========       ===========       ===========       ===========
   Income (loss) per share                             $      0.04       $     (0.00)      $      0.04       $     (0.00)
                                                       ===========       ===========       ===========       ===========
   Weighted average common shares
   outstanding  (basic and diluted)                     19,732,785        17,557,785        19,732,785        18,332,785
                                                       ===========       ===========       ===========       ===========


                 See Notes to the Interim Financial Statements

</TABLE>

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<TABLE>
<CAPTION>


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


                                                                       Six Months Ended June 30,
                                                                       _________________________
                                                                         2003            2002
                                                                       _________       _________
<S>                                                                    <C>             <C>

CASH FLOWS FROM OPERATING ACTIVITIES
     Net income (loss)                                                 $ 770,399       $ (81,897)

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

        Gain on disposal of fixed assets                                (782,691)              -
        Depreciation and amortization expense                              1,579           4,826
        Amortization of loan origination fees                                  -          51,419
        Expenses paid by the issuance of stock                                 -          28,602
        Increase in accounts receivable                                   (2,622)         (9,367)
        Decrease in prepaid expenses                                      14,300               -
        Increase in accounts payable and accrued expenses                 (1,501)          15,062
        Increase in bank overdraft payable                                   633               -
        Decrease in customer deposits                                    (13,400)              -
        Increase (decrease) in related party payable                       4,697          (1,144)
        Increase in interest payable                                         163          68,504
        Decrease in deferred revenue                                           -         (19,400)
                                                                       _________       _________
        Net cash provided by (used in) operating activities               (8,443)         56,605
                                                                       _________       _________
CASH FLOWS FROM INVESTING ACTIVITIES
     Purchase of capital assets                                           (4,909)        (30,540)
                                                                       _________       _________
        Net cash used in investing activities                             (4,909)        (30,540)
                                                                       _________       _________
CASH FLOWS FROM FINANCING ACTIVITIES
     Principal payments on notes and advances                                  -         (10,083)
                                                                       _________       _________
        Net cash used in financing activities                                  -         (10,083)
                                                                       _________       _________
        Net decrease in cash                                             (13,352)         15,982

        Cash and cash equivalents at December 31, 2002, and 2001          13,352           1,387
                                                                       _________       _________
        Cash and cash equivalents at June 30, 2003, and 2002           $       -       $  17,369
                                                                       =========       =========

SUPPLEMENTARY INFORMATION

During the six months ended June 30, 2003 and 2002, the Company paid $0 and $33,510 in
     interest, respectively.

The Company paid no taxes during the six months ended June 30, 2003 or 2002.

During the quarter ended June 30, 2003, the Company sold its subsidiary in exchange for the
Company's debt.

During the quarter ended June 30, 2002, the Company issued 1,000,000 shares of its common stock
to settle $35,000 of accrued expenses and exchanged the balance of the accrued expenses ($65,000)
for a customer deposit for a new licensee. The Company also issued 550,000 shares of its common
stock for a fifteen month consulting agreement with a fair market value of $71,500.


                  See Notes to the Interim Financial Statements

</TABLE>

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                         ICRYSTAL, INC., AND SUBSIDIARY
                      NOTES TO INTERIM FINANCIAL STATEMENTS
                                  June 30, 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.   During  the  current  quarter,   they
         discontinued  operations  and  disposed  of certain  assets in order to
         relieve  notes payable and other  liabilitys.  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  provide
         consulting services to online gaming operators. Should the Company need
         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.


<PAGE>


                         ICRYSTAL, INC., AND SUBSIDIARY
                 NOTES TO INTERIM FINANCIAL STATEMENTS (Cont'd.)
                                  June 30, 2003


         NEW PRONOUNCEMENTS
         In April 2003 the Financial  Accounting  Standards  Board (FASB) issued
         Statement  of  Financial   Accounting  Standards  No.  149  (SFAS  149)
         "Amendment  of  Statement  133 on  Derivative  Instruments  and Hedging
         Activities." SFAS 149, which amends and clarifies  existing  accounting
         pronouncements,   addresses  financial  accounting  and  reporting  for
         derivative or other hybrid  instruments.  This Statement  requires that
         contracts with comparable  characteristics  be accounted for similarly.
         This  Statement is  effective  for  contracts  entered into or modified
         after June 30,  2003.  The Company does not expect the adoption of SFAS
         149 to have any impact on the financial statements.

         In May 2003 the FASB  issued  SFAS No.  150,  "Accounting  for  Certain
         Financial  Instruments  with  Characteristics  of both  Liabilities and
         Equity,"  which is  effective  at the  beginning  of the first  interim
         period  beginning  after  March  15,  2003.  SFAS No.  150  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. 150 will have no
         effect on the Company's 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 six months ended
         June 30,  2003 and 2002,  the Company  incurred  $7,563,  and  $12,392,
         respectively, of expense to Slamko Visser for consulting and accounting
         fees and  related  costs.  As of June 30,  2003 the  payable  to Slamko
         Visser was $0.

3.       MAJOR CUSTOMER
         During  the six  months  ended  June 30,  2003 and  2002,  the  Company
         received  essentially  all of its  revenue  from its  exclusive  master
         license with Manihi, Inc. The Company received $486,926 and $626,046 in
         the six months ended June 30, 2003 and 2002 respectively,  from Manihi,
         Inc.


<PAGE>


                         ICRYSTAL, INC., AND SUBSIDIARY
                 NOTES TO INTERIM FINANCIAL STATEMENTS (Cont'd.)
                                  June 30, 2003


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
         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 May 2003 the Company  disposed of assets  relating to the  Company's
         internet  software  gaming  business  in order  to  relieve  its  debt.
         Accordingly   the   subsidiary's   operations  were  accounted  for  as
         discontinued.  Revenue  from  discontinued  operations  in the  current
         quarter  totaled  $15,075.  It was  agreed  that all  assets,  with the
         exception of certain  fixed assets and  accounts  receivable,  would be
         sold in exchange  for relief of the  $418,770  note payable and related
         interest,  accounts payable, and certain other liabilities. A gain from
         disposal of assets of $782,691 was recorded.


<PAGE>


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

The Company has been  inactive  since its asset sale and is currently  analyzing
business  opportunities.  Accordingly,  its  income has been  negligible  and is
expected to remain as such until another business is acquired for the Company.


<PAGE>


PART II. OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

         Exhibits:

         (a) 31  Section 302 Certification - CEO & CFO
         (b) 32  Section 906 Certification - CEO & CFO

ITEM 7. SIGNATURE


                                   SIGNATURES

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

Dated this 19th day of August, 2003


                              ICRYSTAL, INC.


                              By: /s/ LARRY J. HRABI
                                  __________________
                                      Larry J. Hrabi
                                      CEO,
                                      Chairman and CFO

August 19, 2003