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

                                   FORM 10-QSB

           |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
                For the quarterly period ended September 30, 2004

                                       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: 0-31040

                               ADSERO CORPORATION
             (Exact name of Registrant as specified in its charter)

           Delaware                                 65-0602729
State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

                        2085 Hurontario Street, Suite 300
                              Mississaugua, Ontario
                                     L5A 4G1
          (Address of principal executive offices, including zip code)

                                 (905) 206-1604
                    (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 [ ]

       The number of shares of the Registrant's common stock outstanding at
November 15, 2004, was 11,738,005.

       Transitional Small Business Disclosure Format:Yes [ ]  No [X]

================================================================================
<PAGE>


                               ADSERO CORPORATION
               SEPTEMBER 30, 2004 QUARTERLY REPORT ON FORM 10-QSB
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                      PAGE
                                                                                                      ----

<S>                                                                                                     <C>
                  Special Note Regarding Forward Looking Statements .....................................3

                                               PART I FINANCIAL INFORMATION

Item 1.           Financial Statements ..................................................................4
Item 2.           Plan of Operation.....................................................................17
Item 3            Controls and Procedures...............................................................18

                                              PART II OTHER INFORMATION

Item 1.           Legal Proceedings.....................................................................18
Item 2.           Changes in Securities and Use of Proceeds.............................................19
Item 5.           Other Information.....................................................................19
Item 6.           Exhibits and Reports on Form 8-K......................................................21
</TABLE>


                                       2
<PAGE>

                SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

         To the extent that the information presented in this Quarterly Report
on Form 10-QSB for the quarter ended September 30, 2004, discusses financial
projections, information or expectations about our products or markets, or
otherwise makes statements about future events, such statements are
forward-looking. We are making these forward-looking statements in reliance on
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Although we believe that the expectations reflected in these
forward-looking statements are based on reasonable assumptions, there are a
number of risks and uncertainties that could cause actual results to differ
materially from such forward-looking statements. These risks and uncertainties
are described, among other places in this Quarterly Report, in "Plan of
Operation".

          In addition, we disclaim any obligations to update any forward-looking
statements to reflect events or circumstances after the date of this Quarterly
Report. When considering such forward-looking statements, you should keep in
mind the risks referenced above and the other cautionary statements in this
Quarterly Report.


                                       3
<PAGE>

                         PART I - FINANCIAL INFORMATION
<TABLE>
<CAPTION>
ITEM 1.        FINANCIAL STATEMENTS                                                                          PAGE
                                                                                                              ----
<S>                                                                                                           <C>
              Condensed Consolidated Balance Sheet as of September 30, 2004 (unaudited)                        5

              Condensed Consolidated Statements of Operations for the
              three and nine months ended September 30, 2004 and 2003
              (unaudited) and for the period from January 1, 2004
              (inception) to September 30, 2004 (unaudited)
                                                                                                               6
              Condensed Consolidated Statements of Cash Flows for the nine months ended September
              30, 2004 and 2003 (unaudited) and for the period from January 1, 2004 (inception) to
              September 30, 2004 (unaudited)                                                                   7

              Notes to Condensed Consolidated Financial Statements (unaudited)                              8-16
</TABLE>


                                       4
<PAGE>

                          ADSERO CORP. AND SUBSIDIARIES
            (A Development Stage Company Commencing January 1, 2004)
                      CONDENSED CONSOLIDATED BALANCE SHEET
                               September 30, 2004
                                   (unaudited)

<TABLE>
<CAPTION>
<S>                                                                                      <C>
    ASSETS
CURRENT ASSETS
               Cash                                                                      $    300,654
                                                                                         ------------
                    TOTAL CURRENT ASSETS                                                      300,654
                                                                                         ============

  LIABILITIES AND STOCKHOLDERS' DEFICIENCY

CURRENT LIABILITIES
               Accounts payable                                                          $    119,691
               Accrued expenses                                                               160,000
               Liabilities of discontinued operation                                        2,125,341
               Notes payable - Related Parties (including accrued interest of $59,677)        242,254
               Loan payable ( including interest of $18,750)                                  268,750
                                                                                         ------------
                    TOTAL CURRENT LIABILITIES                                               2,916,036
                                                                                         ------------

Commitments and Contingencies

STOCKHOLDERS' DEFICIENCY
               Common stock, $.001 par value, 100,000,000 shares authorized,                   10,926
                  10,925,755 shares issued and outstanding
               Additional paid-In-capital                                                   8,166,882
               Common stock to be issued (205,000 common shares)                              205,000
               Issuance of Class A Special Warrants                                           569,587
               Subscription receivable on sale of special warrants                            (50,000)
               Deficit accumulated during the development stage                            (1,290,515)
               Accumulated deficit                                                        (10,227,262)
                                                                                         ------------
                    TOTAL STOCKHOLDERS' DEFICIENCY                                         (2,615,382)
                                                                                         ------------
                                                                                         $    300,654
                                                                                         ============
</TABLE>

            See notes to condensed consolidated financial statements

                                        5
<PAGE>
                          ADSERO CORP. AND SUBSIDIARIES
            (A Development Stage Company Commencing January 1, 2004)
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (unaudited)

<TABLE>
<CAPTION>
                                                                                                            Cumulative from
                                                Three Months Ended              Nine Months Ended        January 1, 2004(inception)
                                           September 30,  September 30,  September 30,      September 30,   through September 30,
                                            2004           2003           2004                 2004              2003
<S>                                      <C>              <C>                 <C>             <C>            <C>
REVENUES                                 $         --     $         --                                   $         --

COST OF GOODS SOLD                                  --              --                                             --
    GROSS PROFIT                                    --              --                                             --

OPERATING EXPENSES
    Selling, general and administrative        335,605         209,167         621,719         507,545         621,719
    Conversion of debt expense                      --              --         627,340              --         627,340
    Impairment of asset                                         89,000              --          89,000
    Depreciation and amortization                   --              --              --           8,000              --

    TOTAL OPERATING EXPENSES                   335,605         298,167       1,249,059         604,545       1,249,059

LOSS FROM OPERATIONS                          (335,605)       (298,167)     (1,249,059)       (604,545)     (1,249,059)

    INTEREST EXPENSE                            13,596          34,065          41,456         102,123          41,456

LOSS FROM CONTINUING OPERATIONS               (349,201)       (332,232)     (1,290,515)       (706,668)     (1,290,515)

LOSS FROM DISCONTINUED OPERATIONS                   --              --              --        (210,688)             --

NET LOSS                                  $   (349,201)   $   (332,232)   $ (1,290,515)   $   (917,356)   $ (1,290,515)

PER SHARE INFORMATION

NET LOSS FROM CONTINUING
OPERATIONS                                $      (0.03)   $      (0.31)   $      (0.15)   $      (0.65)

NET LOSS FROM DISCONTINUED
OPERATIONS                                          --              --              --            (0.19)

NET LOSS PER SHARE,
    BASIC AND DILUTED                     $      (0.03)   $      (0.31)   $      (0.15)    $      (0.85)

WEIGHTED AVERAGE NUMBER OF
    COMMON SHARES OUTSTANDING               10,925,755       1,082,643       8,774,865        1,082,643

</TABLE>

            See notes to condensed consolidated financial statements

                                       6
<PAGE>

            See notes to condensed consolidated financial statements


ADSERO CORP. AND SUBSIDIARIES
(A Development Stage Company commencing January 1, 2004)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

<TABLE>
<CAPTION>
                                                                                                         Cumulative from
                                                                       Nine months ended           January 1, 2004 (inception)
                                                           September 30, 2004   September 30, 2003  through September 30, 2004
<S>                                                                 <C>                  <C>                     <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
              Loss from Continuing operations                       (1,290,515)          (706,669)               (1,290,515)
              Loss from Discontinued operations                              -           (210,687)                        -
                                                           -----------------------------------------------------------------

              Net Loss                                              (1,290,515)          (917,356)               (1,290,515)
                                                           -----------------------------------------------------------------


            Adjustments to reconcile net loss to net cash used in operating
            activities:
              Depreciation and amortization                                  -             14,780                         -
              Impairment of asset                                                          89,000
              Accrued interest on notes payable                         38,189             66,595                    38,189
              Writedown of fixed assets                                                    61,939
              Conversion expense on notes payable                      627,340                  -                   627,340
            Changes in operating assets and liabilities:
              Accounts payable and accrued expenses                     78,033         (1,738,476)                   78,033
              Assets of discontinued operation                               -            219,206                         -
              Liabilities of discontinued operation                                     2,125,341
                                                           -----------------------------------------------------------------
                    Total Adjustments                                  743,562            838,385                   743,562
                                                           -----------------------------------------------------------------

NET CASH USED IN OPERATING ACTIVITIES                                 (546,953)           (78,971)                 (546,953)
                                                           -----------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES
              Proceeds from sale of fixed assets                             -             21,377                         -
              Purchase of fixed assets                                       -                  -                         -
                                                           -----------------------------------------------------------------
                                                                             -             21,377                         -
                                                           -----------------------------------------------------------------
NET CASH PROVIDED BY INVESTING ACTIVITIES                                    -             21,377                         -
                                                           -----------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
              Proceeds from issuance of notes payable                   70,075            170,000                    70,075
              Sale of land                                                   -            600,000
              Decrease in mortgage payable                                   -           (600,000)
              Repayment of borrowings from financing company                 -           (118,652)
              Net proceeds from issuances of common stock              519,588                  -                   519,588
              Net proceeds from sale of special warrants               205,000                                      205,000
              Increase loan payable                                     52,500                  -                    52,500
                                                           -----------------------------------------------------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES                              847,163             51,348                   847,163
                                                           -----------------------------------------------------------------

NET INCREASE (DECREASE) IN CASH                                        300,210             (6,246)                  300,210

CASH AT BEGINNING OF PERIOD                                                444              6,669                       444
                                                           -----------------------------------------------------------------

CASH AT END OF PERIOD                                                $ 300,654              $ 423                 $ 300,654
</TABLE>

            See notes to condensed consolidated financial statements

                                        7
<PAGE>

                          ADSERO CORP. AND SUBSIDIARIES
            (A DEVELOPMENT STAGE COMPANY COMMENCING JANUARY 1, 2004)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2004


1. BASIS OF INTERIM FINANCIAL STATEMENT PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been
prepared by the Company in conformity with accounting principles generally
accepted in the United States of America and the instructions of Form 10-QSB. It
is management's opinion that these statements include all adjustments,
consisting of only normal recurring adjustments considered necessary to make the
financial position, results of operations, and cash flows not misleading as of
September 30, 2004 and for all periods presented.

Certain information and footnote disclosures normally included in the annual
financial statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted. These
condensed consolidated financial statements should be read in conjunction with
the consolidated financial statements and notes thereto as of December 31, 2003
and for each of the two years ended December 31, 2003 and December 31, 2002,
which are included in the Company's Annual Report on Form 10KSB for the year
ended December 31, 2003 filed with the Securities and Exchange Commission.

2. DESCRIPTION OF BUSINESS

Adsero Corp. (the "Company'), formerly known as Reink Corp., changed its name on
March 22, 2004.

In January 2004, the Company's Board of Directors, and a majority of its
stockholders approved a twenty-for-one reverse split of the Company's Common
Stock, effective March 22, 2004. All information presented in the accompanying
condensed consolidated financial statements gives effect to the reverse split.

Effective January 1, 2004, the Company has ceased its operations until it is
able to raise the additional funding it needs to restart its operations and/or
acquire an existing business. The Company has engaged in various discussions,
from time to time, with existing businesses within the imaging consumables
segment, with respect to possible mergers, acquisitions and other business
combinations. The Company plans to continue to pursue these types of discussions
in the future. However, there can be no assurance that any of the discussions in
which the Company is engaged will result in the consummation of a business
combination transaction. If the Company is not successful in its efforts to
identify a merger or acquisition candidate, it may have to cease operations
permanently. Based on these developments, the Company began reporting its
results of operations as a development stage enterprise on January 1, 2004.

3. GOING CONCERN

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern, which contemplates the realization of
assets and satisfaction of liabilities in the normal course of business.
However, the Company's loss for the nine months ended September 30, 2004
amounted to $1,290,516 and its working capital deficit amounts to $2,615,382,
including $2,125,341 of liabilities of its discontinued operation. The Company
has limited capital resources. These matters raise substantial doubt about the
Company's ability to continue as a going concern. The Company entered into an
agency agreement to raise up to $4,250,000 in a proposed offering of its equity
securities and a non-binding letter of intent to raise up to CDN $2,500,000 in a
proposed offering of secured subordinated debt and redeemable convertible
preferred stock (Note 8 and Note 11). The Company issued an aggregate of 617,500
special warrants for gross proceeds of approximately $617,500 under the above
noted Agency Agreement., however; there can be no assurance that the Company
will consummate additional issuances of its debt or equity securities under
either of these proposed financing transactions.

                                       8
<PAGE>

The Company's ability to continue as a going concern is dependent upon several
factors including its ability to raise the financing it needs to restart its
operations, acquire an existing business, and generate revenues sufficient to
fund its operations. There can be no assurance that the Company will be
successful in its efforts to accomplish any of the objectives that it considers
necessary to sustain the business. The Company also believes that even if it is
able to raise operating capital, there can be no assurance that the proceeds it
receives will be sufficient for it to develop the business to a level in which
it is able to generate operating profits and positive cash flow. The
accompanying financial statements do not include any adjustments relating to the
recovery of the recorded assets or the classification of liabilities that might
be necessary should the Company be unable to continue as a going concern.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

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

Stock Based Compensation

As permitted under SFAS No. 148, "Accounting for Stock-Based
Compensation--Transition and Disclosure", which amended SFAS No. 123 ("SFAS
123"), "Accounting for Stock-Based Compensation", the Company has elected to
continue to follow the intrinsic value method in accounting for its stock-based
employee compensation arrangements as defined by Accounting Principles Board
Opinion ("APB") No. 25, "Accounting for Stock Issued to Employees", and related
interpretations including "Financial Accounting Standards Board Interpretation
No. 44, Accounting for Certain Transactions Involving Stock Compensation", an
interpretation of APB No. 25. No stock-based employee compensation cost is
reflected in net income, as all options that the Company granted had exercise
prices equal to the fair market value of the underlying common stock, on their
dates of grant. The Company granted 300,000 stock options exercisable at $0.25
per share (the quoted market price) during the quarter ended June 30, 2004. Such
grants include 100,000 options each to Anthony Pallante, Wayne Maddever and
William Smith. The options vest over a period of three years and are exercisable
for ten years from their date of issuance.

The following table illustrates what the Company's net loss and loss per share
would have been if the Company had used the fair value based method of
accounting for its employee stock option plans, as prescribed by SFAS No. 123:

<TABLE>
<CAPTION>
                                                          For the Three
                                                             Months           For the Nine
                                                              Ended              Months
                                                          September 30,   Ended September 30,
                                                              2004               2004
                                                          ------------    ------------
<S>                                                       <C>             <C>
Net loss, as reported                                     $   (349,201)   $ (1,290,915)

Incremental amount of stock based employee
  compensation expense determined under the  fair value         (3,125)         (3,125)
method

                                                          ------------    ------------
Net loss, proforma                                        $   (352,326)   $ (1,294,040)
                                                          ============    ============

Loss per share:

  Net loss, as reported                                   $       (.03)   $       (.15)
                                                          ============    ============

  Net loss, proforma                                      $       (.03)   $        (15)
                                                          ============    ============
</TABLE>

Net Loss Per Common Share

Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per
Share", requires the presentation of basic and diluted earnings per share
("EPS"). Basic EPS is computed by dividing loss available to common stockholders
by the weighted-average number of common shares outstanding for the period.
Diluted EPS includes the potential dilution that could occur if options or other
contracts to issue common stock were exercised or converted. Loss per common
share for the three and nine month periods ended September 30, 2004 and 2003
excludes outstanding options, warrants and convertible debentures as their
effect would be anti-dilutive. Loss per common share does not include 772,500
shares of common stock that the Company committed to issue pursuant to a private
placement that it consummated during the nine months ended September 30, 2004
(Note 8) and 100,000 additional shares issued to the agent under the private
placement. The stock certificates for the shares that the Company sold in the
private placement transactions, and the related agent shares, have not yet been
issued.

                                       9
<PAGE>

Potentially dilutive securities that are not included the computation of basic
EPS are as follows:

                          September 30,
                        2004       2003
                      ---------   ---------
Stock to be issued     205,000           0
Options                337,500      37,500
Warrants             1,534,930      76,430
Convertible Debt        70,000     170,000
                     ---------   ---------
                     ---------   ---------
Total                2,147,430     283,930
                     =========   =========

New Accounting Pronouncements

In January 2003, Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 46, ""Consolidation of Variable Interest Entities" ("FIN
46"). This interpretation of Accounting Research Bulletin No. 51, "Consolidated
Financial Statements," provides guidance for identifying a controlling interest
in a variable interest entity ("VIE") established by means other than voting
interest. FIN 46 also required consolidation of a VIE by an enterprise that
holds such controlling interest. In December 2003, the FASB completed its
deliberations regarding the proposed modifications to FIN No., 46 and issued
Interpretation Number 46R, "Consolidation of Variable Interest Entities - an
Interpretation of ARB 51" ("FIN No. 46 R"). The decisions reached included a
deferral of the effective date and provisions for additional scope exceptions
for certain types of variable interests. Application of FIN No. 46R is required
in financial statements of public entities that have interests in VIEs or
potential VIEs commonly referred to as special-purpose entities for periods
ending after December 15, 2003. Application by public issuers' entities is
required in all interim and annual financial statements for periods ending after
December 15, 2004. The adoption of this pronouncement is not expected to have
material effect on the Company's financial statements.

5. NOTES PAYABLE

On January 1, 2004 the Company issued a 10%, $250,000 promissory note to BG
Capital Group Bahamas Ltd. of which $197,500 was received prior to December 31,
2003 and the remaining $52,500 was received during the quarter ended March 31,
2004. The Note is due January 1, 2005, or earlier in the event that the Company
consummates a business combination with an entity having revenues of $3,000,000
or more in its last completed fiscal year. In such latter event, the Note is due
thirty days after the completion of the business combination.

                                       10
<PAGE>

In April 2004, the Company issued a convertible promissory note in the amount of
$70,000 bearing interest at 10% per annum to Manchester Consolidated Corp. (a
related party). This note is payable on demand and is convertible into 70,000
shares of the Company's common stock at a conversion price of $1.00 per share.

6. COMMITMENTS AND CONTINGENCIES

Litigation

On December 31, 2002, the Company's Chief Executive Officer ("CEO") and Vice
President of Finance ("VP of Finance"), and a production chemist in its R&D
facility (collectively, the "Former Officers") resigned from their positions.
Prior to resigning the Former Officers dismissed all employees of Reink USA,
which left the Company with no employees. On May 7, 2003 the Company commenced
legal proceedings against the Former Officers in the United States Bankruptcy
Court for the District of New Jersey (Case Number 03-11053 (JHW)) for actions
that it believes violate the non-competition and confidentiality clauses of
their employment contracts. In this action the Company is seeking damages and
other relief in the amount of $1,000,000. The Former Officers filed a
counter-suit against the Company for back wages and other costs. The Company
considers the counter-claim to be without merit. On September 7, 2003 the
Company filed a defense against the counter-claim.

On May 21, 2004, John Calzaretto instituted an action against the Company in the
Superior Court of New Jersey, Law Division, Burlington County (Docket No.:
BUR-L-001259-04) seeking approximately $25,000 together with interest,
attorney's fees and costs of suit based upon a claim for payment for legal
services rendered. The Company is contesting the amount due. The case has been
moved to mediation. The initial mediation meeting has been completed and both
parties are gathering further information before the next meeting. The Company
is currently unable to determine the outcome of this uncertainty or estimate a
possible range of loss, if any. The Company recorded a $30,000 accrual for legal
fees incurred in connection with this matter, which is included in the
accompanying statement of operations for the nine months ended September 30,
2004.

Bankruptcy of Reink USA

In January, 2003 the three largest creditors (the "Petitioners") of Reink USA
("Reink") filed a petition to force Reink into Chapter 7 under the US Federal
Bankruptcy Act. The Company believes that certain of the Petitioners, and the
former CEO and VP of Finance, formed a new business that became a direct
competitor of the Company. Reink filed a motion to have the petition removed
from court, since one of the Petitioners withdrew from the filing and counsel to
the petitioners withdrew from the case. Subsequently the remaining Petitioners
and a new third petitioner ("New Petitioner") amended the filing. This New
Petitioner also subsequently withdrew and the remaining Petitioners, along with
two additional petitioners, filed an amendment.

                                       11
<PAGE>

During March 2003, Reink's motion to convert its case to a voluntary Chapter 11
was accepted by the District of New Jersey, Federal Bankruptcy Court. As a
result of failed negotiations with our largest supplier, Reink's case was
converted from Chapter 11 "Reorganization" into Chapter 7 "Liquidation" on July
10, 2003, and a Bankruptcy Trustee was appointed to administer the estate. As a
result, the Company lost control of Reink. Accordingly, Reink is presented for
all periods as a discontinued operation in the accompanying financial statement.
The Company is unaware of any changes in the status of the Bankruptcy
proceedings.

7. EXCHANGES OF DEBT FOR EQUITY

Effective January 2004, the Company converted an aggregate of $170,000 in note
principal plus accrued interest thereon into an aggregate of 18,360,000
restricted shares of common stock. Following the effectuation of our 20:1
reverse stock split on March 22, 2004 these shares became approximately 918,000
shares. The conversions were made pursuant to Note Cancellation and Release
Agreements between the Company and nine noteholders. The Company has agreed to
register these shares on behalf of the recipients thereof.

Effective January 2004, the Company converted an aggregate of approximately
$196,900 in debt into an aggregate of 19,690,000 restricted shares of common
stock. Following the effectuation of our 20:1 reverse stock split on March 22,
2004 these shares became approximately 984,500 shares. The conversions were made
pursuant to Debt Conversion and General Release Agreements between the Company
and three debtholders. 100,000 of these shares were issued to Wayne Maddever in
connection with the conversion by BBP Consulting of $20,000 of debt. 384,500 of
these shares were issued to William Smith, through Manchester Administrative
Services, in connection with the conversion of $76,900 owed to Manchester
Administrative Services for services performed by William Smith prior to 2003.
500,000 of these shares were issued to R. World Inc. in connection with the
conversion of $100,000 of debt.

In April 2004, the Company issued an aggregate of 5,405,055 restricted shares
(the "Interhold Shares") of common stock to Interhold Co. and its designees
pursuant to a February 28, 2004 Note Cancellation and General Release under
which a $308,000 promissory note of Reink Imaging USA, Ltd. in favor of
Interhold Co., plus all interest due thereon was cancelled. Also cancelled was
an April 7, 2003 Guarantee and Security Agreement between Interhold and us which
had been put in place as a result of a January 2002 agreement. The Company has
agreed to register the Interhold shares on behalf of the recipients thereof.

In April 2004, the Company issued an aggregate of 2,350,500 restricted shares
(the "Manchester Shares") of common stock to designees of Manchester
Administrative Services Ltd. ("Manchester") pursuant to a February 28, 2004 Debt
Conversion and General Release under which a debt of the Company to Manchester
in the approximate amount of $328,500 was cancelled. This debt was incurred
pursuant to our January 6, 2003 Consulting Agreement with Manchester and
includes debts incurred in January and February 2004. The Company has agreed to
register the Manchester Shares on behalf of the recipients thereof.

                                       12
<PAGE>

In April 2004, the Company issued an aggregate of 185,000 restricted shares (the
"Stock") to three individuals pursuant to Note Cancellation and General Release
Agreements dated February 25, 2004; March 29, 2004; and March 30, 2004
respectively. Under these agreements an aggregate of $185,000 of note principal
plus accrued interest thereon was cancelled in consideration for the Stock. The
Company has agreed to register these shares on behalf of the recipients thereof.

8. PRIVATE PLACEMENTS OF EQUITY SECURITIES

During the quarter ended June 30, 2004, the Company sold $205,000 worth of units
in the Company, each unit comprised of one common share and one warrant
entitling the holder to purchase one common share at $1.50 per common share at
any time over the next 24 months. The 205,000 shares have been included as
common shares to be issued in the financial statements.

On June 22, 2004 the Company entered into an Agency Agreement with DGM Bank &
Trust Inc. ("DGM") whereby DGM was appointed as exclusive placement agent for an
offering (the "Offering") of up to 4,250,000 special warrants (the "Special
Warrants") at a price of $1.00 per Special Warrant or $4,250,000 on an aggregate
basis. The Offering is comprised of a first offering (the "First Offering")
consisting of up to 750,000 Special Warrants and a second offering (the "Second
Offering") consisting of up to 3,500,000 Special Warrants. The proceeds from the
Second Offering (if consummated) will be held in escrow pending the closing of
the proposed acquisition of Teckn-O-Laser Global Inc.

In the First Offering, each Special Warrant is exercisable, for no additional
consideration, to receive one Class A Unit (the "A Units"). Each A Unit consists
of one share of common stock and one common stock purchase warrant to purchase
an additional share of common stock at a price of $1.50 per share at any time
during the two year period commencing on the closing date of the First Offering.

In the Second Offering, each Special Warrant is exercisable, for no additional
consideration, to receive one Class B Unit (the "B Units"). Each B Unit consists
of one share of common stock and one-half common stock purchase warrant. Each
full common stock purchase warrant is exercisable to purchase one share of
common stock at a price of $1.50 per share at any time during the two year
period commencing on the closing date of the Second Offering.

                                       13
<PAGE>

In consideration of the Agent's services, the Company has agreed to pay the
Agent commissions of up to 10% of the gross proceeds raised in this and certain
other offerings plus Special Warrants equal to 10% of the Special Warrants sold
in the Offering (or 5% for sales to certain persons identified by the Agent) and
100,000 common shares in the event, the Company raises gross proceeds of
$500,000 or more in the First Offering. The Company has also agreed to pay the
Agent a break fee of $212,500 together with expense reimbursement if the Company
decides not to proceed with the offering. In the event at least $750,000 is
raised in the offering, the Agency Agreement also grants the Agent a right of
first refusal to act as lead agent, underwriter, or advisor for the Company
during the two year period following the closing date for the Second Offering
with respect to any securities offerings, acquisitions, dispositions or
takeovers by the Company. The Company has agreed to file a registration
statement as soon as practicable following the closing of the Second Offering to
register the common stock comprising part of the A Units and B Units and the
common stock underlying the common stock purchase warrants comprising part of
such Units.

On September 27, 2004 (the "Initial Closing Date") the Company completed the
initial closing of the First Offering, as such term is defined in the Agency
Agreement dated June 22, 2004 between us and DGM Bank & Trust, Inc. (the
"Agent"). The First Offering involves the offer and sale, in a Regulation S
private placement, of up to 750,000 Special Warrants at a price of $1.00 per
Special Warrant or $750,000 on an aggregate basis. Each Special Warrant is
exercisable, for no additional consideration, to receive a unit consisting of
one share of the Company's common stock and one common stock purchase warrant.
Each warrant entitles the holder to purchase one share of common stock at a
price of $1.50 per share at any time during the two year period that commenced
on the Initial Closing Date. Special Warrants that are not exercised prior to
5:00 p.m. on October 27, 2004 will be deemed to have been exercised immediately
prior thereto without any further action by the holder. At the Initial Closing
the Company issued an aggregate of 617,500 Special Warrants to private placement
subscribers, 61,750 Special Warrants to the Agent and 100,000 shares of common
stock to the Agent. The Company also delivered $48,625 to the Agent representing
payment of the Agent's cash commission due on the 617,500 Special Warrants sold.
Of the $617,500 proceeds received, $50,000 cleared after the quarter end.
Subsequent to the end of the quarter, the Company issued an additional $30,000
of Special Warrants under the above noted Agency Agreement. The agent received
fees consisting of $3,000 cash and 3,000 warrants on this issuance. Effective
October 27, 2004 all of the Special Warrants were automatically exercised
without any action by the respective holders, which resulted in the issuance of
an aggregate of 712,500 A Units including 712,500 common shares and 712,500
warrants. As at November 10, 2004, the First Offering is still open and the
Company remains eligible to sell up to 102,500 additional Special Warrants.

9. DISCONTINUED OPERATION

As discussed in Note 6, Reink's Chapter 11 bankruptcy "Reorganization" was
converted into a Chapter 7 bankruptcy "Liquidation" and a Bankruptcy Trustee was
appointed to administer and liquidate the estate on July 10, 2003. The Company
lost control of Reink upon the conversion of the Reorganization into a
Liquidation. Accordingly, the Company has reported Reink as a discontinued
operation.

                                       14
<PAGE>

In connection with such conversion, the Company recorded a $370,816 charge to
operations during the year ended December 31, 2003, for the carrying value of
assets that are no longer considered recoverable. In addition, Reink's
liabilities are presented in the balance sheet as discontinued operations until
the bankruptcy is adjudicated by the Bankruptcy court. The Company is unaware of
any changes in the status of the Bankruptcy proceedings. A breakdown of the
liabilities remaining on Reink's balance sheet from the time in which its
Bankruptcy case was converted to a "Liquidation" were as follows:

            September 30, 2004
                   ----------
Accounts Payable   $1,806,242

Accrued Expenses      319,099
                   ----------
                   $2,125,341
                   ==========

10. PROPOSED ACQUISITION

On May 3, 2004 the Company entered into two related, non-binding, letters of
intent to purchase, through an acquisition subsidiary to be formed, all of the
issued and outstanding shares of Teckn-O-Laser Global, Inc. ("Techn-O"), a
wholesaler and recycler of laser-printer and ink jet cartridges. The proposed
purchase price for Teckn-O consists of an aggregate of CDN$8,364,000 in cash,
6,000,000 shares of the acquisition subsidiary's common stock, which are
convertible on a share for share basis into shares of Adsero common stock, and
300,000 stock options, each exercisable for the purchase of one share of Adsero
common stock at an exercise price of not more than US$1.00 per share. The
letters of intent are subject to further due diligence and the preparation and
execution of a formal, binding agreement. The closing date under the letters of
Intent have been extended to November 30, 2004 from their original date July 31,
2004. There can be no assurances that the Company will be able to consummate
these proposed business combinations.

11. PROPOSED FINANCING TRANSACTIONS

On June 25, 2004 the Company entered into a non-binding letter agreement with
Dancap Private Equity Inc. ("Dancap") respecting the proposed sale of $2,000,000
of a 5 year, 12% secured subordinated debenture to Dancap. The proposed
transaction also involves the sale to Dancap of 800,000 shares of redeemable,
convertible preferred stock for nominal consideration. The sales are conditioned
on the execution of a formal agreement between the parties and several other
conditions. No assurance can be given that the Company will enter into a formal
agreement with Dancap or, if entered into, it will be on terms presently
contemplated.

                                       15
<PAGE>

In July, 2004 the Company amended a January 2004 exclusive financing agreement
arrangement with Manchester Consolidated Corp. ("Manchester"), a corporation
owned by Anthony Pallante. Thereunder, the Company is obligated to pay
Manchester a fee upon successful completion of a financing or any acquisitions,
mergers, or other business combinations arranged for the Company by or through
Manchester. The revised fee structure for financings are 10% for transactions up
to and including $2,000,000; 7% for transactions in excess of $2,000,000 up to
and including $5,000,000; and 5% for transactions in excess of $5,000,000. The
revised fee structure for acquisitions, mergers or other business combinations
is 12% for transactions up to and including $5,000,000; 7% for transactions in
excess of $5,000,000 up to and including $10,000,000; and 5% for transactions in
excess of $10,000,000. All other material terms of the arrangement remain
unchanged.


                                       16
<PAGE>

ITEM 2.    PLAN OF OPERATION

The following discussion and analysis should be read in conjunction with the
consolidated financial statements and the notes thereto appearing elsewhere in
this Report.

We have ceased operations until sufficient additional financing has been
obtained in order to restart operations or acquire an existing business. We have
been in various discussions, from time to time, with existing businesses within
the Imaging consumables segment, with respect to possible mergers, acquisitions
and other business combinations, and plan to continue these types of discussions
in the future. There can be no assurance that any of these discussions will be
successful, and if not, we may have to cease operations permanently.

As a result of the departure of certain former officers, in January 2003 we
closed down our manufacturing facility in Pennsauken, New Jersey and moved all
inventory and equipment to other locations. At December 31, 2002 we wrote down
inventories related to the impact ribbons and toner product lines to their
estimated fair values, and had an impairment charge on certain fixed assets as a
result of closing the manufacturing facility. In addition at December 31, 2002
we had an impairment charge on our goodwill relating to the changes to the
impact ribbon and toner product lines and wrote down the entire amount of such
goodwill.

In January, 2003 the three largest creditors of Reink USA filed a petition to
force Reink USA into Chapter 7 under the US Federal Bankruptcy Code. We believe
that some of the creditors involved with the petition assisted a new business,
which competed directly with us, that had been founded by the former officers.
Reink USA filed a motion to have the petition thrown out since the third
creditor withdrew from the filing and also since the counsel for the petitioners
withdrew. Subsequently the remaining two creditors provided a new third creditor
and amended the filing. This new third creditor also subsequently withdrew and
the two remaining creditors found two other creditors and filed an amendment.
During March 2003, the subsidiary's motion to convert to a voluntary chapter 11
was accepted by the District of New Jersey, Federal Bankruptcy Court. Due to
failed negotiations with our largest suppliers, on July 10, 2003, Reink USA was
moved from Chapter 11 "Reorganization" into Chapter 7 "Liquidation" and a
Bankruptcy Trustee was appointed to administer the estate. As a result, we lost
control of Reink USA and Reink USA is presented for all periods as a
discontinued operation.

We have financed our cash requirements primarily through sales of our securities
to accredited investors, operations, and bank borrowings. We had a lending
facility with an asset based lender providing a $1,000,000 facility based on 80%
of accounts receivable. As a result of ceasing operations we terminated this
facility after meeting all obligations under the agreement.

As of September 30, 2004, we had a working capital deficiency of $2,615,382
(including $2,125,341 related to the discontinued operations. Our working
capital deficiency, after giving effect to the exclusion of amounts associated
with our discontinued operation amounts to $490,041. The Company has limited
capital resources. These matters raise substantial doubt about the Company's
ability to continue as a going concern.

                                       17
<PAGE>

During January through April, 2004, we converted notes payable of $816,318 and
other liabilities of $426,650 for a total of $1,242,968 into 9,843,055 common
shares. We have no further obligations related to these notes and other
liabilities that we converted.

The auditor's report on our financial statements included in our Annual Report
for the year ended December 31, 2003 contains an explanatory paragraph about our
ability to continue as a going concern.

Except as provided in this Report, we have no present commitment that is likely
to result in our liquidity increasing or decreasing in any material way. In
addition, except as noted in this Report, we know of no trends, additional
demands, events or uncertainties that will result in, or that are reasonably
likely to result in, our liquidity increasing or decreasing in any material way.
We have no material commitments for capital expenditures. We know of no material
trends, favorable or unfavorable, in our capital resources. We do not presently
engage in any product research or development initiatives and have no plans to
do so in the foreseeable future. We do not own any plant or significant
equipment. We have no present plans to add employees although we may do so in
the foreseeable future if we engage in any merger or acquisition transactions.

ITEM 3.  CONTROLS AND PROCEDURES

Our principal executive officer and principal financial officer evaluated the
effectiveness of our disclosure controls and procedures (as defined in Rule
13a-14(c) under the Securities Exchange Act of 1934) as of the end of the third
quarter of 2004. Based on this evaluation, our principal executive officer and
principal financial officer have concluded that our controls and procedures are
effective in providing reasonable assurance that the information required to be
disclosed in this report is accurate and complete and has been recorded,
processed, summarized and reported within the time period required for the
filing of this report. Subsequent to the date of this evaluation, there have not
been any significant changes in our internal controls or, to our knowledge, in
other factors that could significantly affect our internal controls.

                           PART II--OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

On December 31, 2002, our Chief Executive Officer ("CEO") and Vice President of
Finance ("VP of Finance"), and a production chemist in our R&D facility
(collectively, the "Former Officers") resigned from their positions. Prior to
resigning the Former Officers dismissed all employees of Reink USA, which left
us with no employees. On May 7, 2003 we commenced legal proceedings against the
Former Officers in the United States Bankruptcy Court for the District of New
Jersey (Case Number 03-11053 (JHW)) for actions that we believe violate the
non-competition and confidentiality clauses of their employment contracts. In
this action we are seeking damages and other relief in the amount of $1,000,000.
The Former Officers filed a counter-suit against us for back wages and other
costs. We consider the counter-claim to be without merit. On September 7, 2003
we filed a defense against the counter-claim. We are currently unable to
determine the probable outcome of these matters.

                                       18
<PAGE>

On May 21, 2004, John Calzaretto instituted an action against us in the Superior
Court of New Jersey, Law Division, Burlington County (Docket No.:
BUR-L-001259-04) seeking $25,768.50 together with interest, attorney's fees and
costs of suit based upon a claim for payment for legal services rendered. We are
contesting the amount due. The case has been moved to mediation. The initial
mediation meeting has been completed. A second meeting is tentatively scheduled
for early November 2004. We are currently unable to determine the probable
outcome of this matter.

No material developments with respect to our other material legal proceedings
took place during the quarter. See our Annual Report on Form 10KSB for the
fiscal year ended December 31, 2003.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

In May and June 2004, we sold 205,000 units in reliance on Regulation S under
the Securities Act of 1933, as amended. Each unit was sold at a price of $1.00
per unit resulting in aggregate proceeds of $205,000. Each unit consisted of one
share of our common stock and one common stock purchase warrant to purchase an
additional share of common stock at a price of $1.50 per share at any time
during a period of two years from issuance. The 205,000 shares comprising part
of the units have yet to be issued but are expected to be issued shortly.

On September 27, 2004 (the "Initial Closing Date") we completed the initial
closing under a private placement offering (See Item 5. Other Information). At
the Initial Closing we issued an aggregate of 617,500 Special Warrants to
private placement subscribers and 61,750 Special Warrants to the placement
agent, and authorized the issuance of 100,000 shares (the "Agent Shares") of our
common stock to the placement agent. Subsequent to the period covered by this
Report, in October 2004 we issued the Agent Shares and we sold and issued an
additional 30,000 Special Warrants to private placement subscribers and 3,000
Special Warrants to the placement agent. Effective October 27, 2004 all of the
Special Warrants issued were automatically exercised without any action by the
respective holders resulting in our issuance of an aggregate of 712,250 A Units
including 712,250 common shares and 712,250 warrants.

ITEM 5.    OTHER INFORMATION

On May 3, 2004 we entered into two related, non-binding, letters of intent to
purchase, through an acquisition subsidiary to be formed, all of the issued and
outstanding shares of Teckn-O-Laser Global, Inc. ("Techn-O"), a wholesaler and
recycler of laser-printer and ink jet cartridges. These letters of intent were
subsequently amended on September 17, 2004. Pursuant thereto, the proposed
purchase price for Teckn-O consists of an aggregate of CDN$8,364,000 in cash,
6,000,000 shares of the acquisition subsidiary which are convertible on a share
for share basis into shares of our common stock, and 300,000 stock options, each
exercisable for the purchase of one share of our common stock at a price of not
more than US$1 per share. As part of the transaction, we have further agreed to
enter into three year management contracts, on terms to be negotiated, with two
key members of Techn-O management. CDN$3,000,000 of the cash purchase price is
payable on a deferred basis, in 3 payments, over a period of 3 years. The amount
of the deferred payments are subject to downward adjustment in the event that
Techn-O's EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) for years 1, 2 and 3 is less than CDN$1,000,000, $1,500,000 and
$2,000,000 respectively. In such event, the CDN$3,000,000 payment obligation
will be reduced by an amount equal to 3 times the applicable shortfall. The
letters of intent are subject to further due diligence and the preparation and
execution of a formal, binding agreement. Closing of the transaction is
presently expected to take place on or before November 30, 2004. No assurance
can be given, however, that we will execute a formal agreement and complete and
close the proposed transaction.

                                       19
<PAGE>

On June 22, 2004 we entered into an Agency Agreement with DGM Bank & Trust Inc.
("DGM") whereby DGM was appointed as our exclusive placement agent for an
offering (the "Offering") of up to 4,250,000 special warrants (the "Special
Warrants") at a price of $1.00 per Special Warrant or $4,250,000 on an aggregate
basis. The Offering is comprised of a first offering (the "First Offering")
consisting of up to 750,000 Special Warrants and a second offering (the "Second
Offering") consisting of up to 3,500,000 Special Warrants. The proceeds from the
Second Offering will be held in escrow pending the closing of our proposed
acquisition of Teckn-O-Laser Global Inc. In the First Offering, each Special
Warrant is exercisable, for no additional consideration, to receive one Class A
Unit (the "A Units"). Each A Unit consists of one share of our common stock and
one common stock purchase warrant to purchase an additional share of our common
stock at a price of $1.50 per share at any time during the two year period
commencing on the closing date of the First Offering. In the Second Offering,
each Special Warrant is exercisable, for no additional consideration, to receive
one Class B Unit (the "B Units"). Each B Unit consists of one share of our
common stock and one-half common stock purchase warrant. Each full common stock
purchase warrant is exercisable to purchase one share or our common stock at a
price of $1.50 per share at any time during the two year period commencing on
the closing date of the Second Offering. In consideration of the Agent's
services, we have agreed to pay the Agent a commission equal to 10% of the gross
proceeds raised in the Offering, except with respect to sales to certain persons
identified by us to the Agent. For these sales, the commission shall be 5%. We
have further agreed to pay the Agent a 10% commission with respect to certain
unrelated financings by us, if any, during the period September 22, 2004 through
the closing date of the Second Offering. The Agent may elect to receive
commission in cash, Special Warrants or some combination thereof. We are further
obligated to issue to the Agent Special Warrants in an amount equal to 10% of
the Special Warrants sold in the Offering. In the event, we raise gross proceeds
of $500,000 or more in the First Offering, we will issue 100,000 common shares
to the Agent on the closing date for the First Offering. We have also agreed to
pay the Agent a break fee of $212,500 together with expense reimbursement if we
decide not to proceed with the offering, except where such decision is based on
the Agent's gross negligence or malfeasance or based upon the Agent's failure to
raise the maximum proceeds. In the event at least $750,000 is raised in the
offering, the Agency Agreement also grants the Agent a right of first refusal to
act as lead agent, underwriter, or advisor for us during the two year period
following the closing date for the Second Offering with respect to any
securities offerings, acquisitions, dispositions or takeovers by us. We have
agreed to file a registration statement as soon as practicable following the
closing of the Second Offering to register the common stock comprising part of
the A Units and B Units and the common stock underlying the common stock
purchase warrants comprising part of such Units.

                                       20
<PAGE>

On September 27, 2004 (the "Initial Closing Date") we completed the initial
closing of the First Offering. At the Initial Closing we issued an aggregate of
617,500 Special Warrants to private placement subscribers and 61,750 Special
Warrants to the Agent, and authorized the issuance of 100,000 shares of our
common stock to the Agent. We also delivered $48,625 to the Agent representing
payment of the Agent's cash commission due on the 617,500 Special Warrants sold.
Subsequent to the period covered by this Report, in October 2004 we sold and
issued an additional 30,000 Special Warrants to private placement subscribers
and 3,000 Special Warrants to the Agent with respect to the First Offering.
Effective October 27, 2004 all of the Special Warrants issued with respect to
the First Offering were automatically exercised without any action by the
respective holders resulting in an obligation to issue an aggregate of 712,250 A
Units including 712,250 common shares and 712,250 warrants, all of which have
been issued.

On September 25, 2004 we entered into a non binding letter agreement with Dancap
Private Equity Inc. ("Dancap") respecting the proposed sale of $2,000,000 of our
5 year, 12% secured subordinated debentures to Dancap. The proposed transaction
also involves the sale to Dancap of 800,000 shares of our redeemable,
convertible preferred stock for nominal consideration. The sales are conditioned
on the execution of a formal agreement between the parties and several other
conditions. No assurance can be given that we will enter into a formal agreement
with Dancap or, if entered into, it will be on the terms presently contemplated.

In October 2004 we entered into a non-binding letter agreement with Barrington
Bank International Limited ("Barrington") respecting the proposed sale by us to
Barrington of a CDN$2,500,000 convertible secured debenture. Interest on the
debenture in year one would be 12% per annum and would be 20% per annum for the
remainder of the term. The proposed transaction also involves the sale to
Barrington of 200,000 shares of our common stock for nominal consideration. The
sales of the debenture and shares are conditioned on the execution of a formal
agreement and several other conditions. No assurances can be given that we will
enter into a formal agreement with Barrington, or if entered into, it will be on
the terms presently contemplated.

In July, 2004 we amended our January 2004 exclusive financing agreement
arrangement with Manchester Consolidated Corp. ("Manchester"), a corporation
owned by Anthony Pallante. Thereunder, we are obligated to pay Manchester a fee
upon successful completion of a financing or any acquisitions, mergers, or other
business combinations arranged for us by or through Manchester. The revised fee
structure for financings are 10% for transactions up to and including $2
million; 7% for transactions in excess of $2 million up to and including $5
million; and 5% for transactions in excess of $5 million. The revised fee
structure for acquisitions, mergers or other business combinations is 12% for
transactions up to and including $5 million; 7% for transactions in excess of $5
million up to and including $10 million; and 4% for transactions in excess of
$10 million. All other material terms of the arrangement remain unchanged.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

(a)      Exhibits

The following exhibits are filed as a part of this report on Form 10-QSB:

                                       21
<PAGE>

Exhibit No.                             Description
31.1           Rule 13(a)-14(a)/15(d)-14(a) Certification of Principal
               Executive Officer
31.2           Rule 13(a)-14(a)/15(d)-14(a) Certification of Principal
               Financial Officer
32.1           Rule 1350 Certification of Chief Executive Officer
32.2           Rule 1350 Certification of Chief Financial Officer

(b) Reports on Form 8-K

No reports on Form 8K were filed by us during the quarter ended September 30,
2004.


                                       22
<PAGE>

                                   SIGNATURES

      Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Form 10-QSB to be
signed on its behalf by the undersigned, thereunto duly authorized.

       Dated: November 15, 2004          Adsero Corporation

                                         By: /s/ Wayne Maddever
                                             -----------------------------------
                                         Wayne Maddever
                                         President, Chief Executive Officer


                                       23