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

                       -----------------------------------

                                  FORM 10-QSB

                       -----------------------------------

             Quarterly Report Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


                  For the Quarterly Period Ended March 31, 2005


                         Commission File Number: 0-21475

                               EMERGENT GROUP INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

             Nevada                                        93-1215401
----------------------------------------   -------------------------------------
(State of jurisdiction of Incorporation)   (I.R.S. Employer Identification No.)


                             932 Grand Central Ave.
                               Glendale, CA 91201
                             ---------------------
                    (Address of principal executive offices)

                                 (818) 240-8250
                                 --------------
                         (Registrant's telephone number)

                                 Not Applicable
                                 --------------
      (Former name, address and fiscal year, if changed since last report)


                       ----------------------------------

     Indicate  by check mark  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  (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 [ ]

     As of May 13, 2005, the registrant had a total of 4,745,530 shares of
Common Stock outstanding.

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

                               EMERGENT GROUP INC.

                          FORM 10-QSB Quarterly Report

                                Table of Contents
<TABLE>
<CAPTION>

                                                                                                         Page

PART I.      FINANCIAL INFORMATION
<S>                                                                                                       <C>
   Item 1.    Financial Statements

              Condensed Consolidated Balance Sheet as of March 31, 2005 (unaudited)                        3

              Condensed Consolidated Statements of Operations for the Three Months
                 Ended March 31, 2005 and 2004 (unaudited)                                                 4

              Condensed Consolidated Statements of Cash Flows for the Three Months
                 Ended March 31, 2005 and 2004 (unaudited)                                                 5

              Notes to the Condensed Consolidated Financial Statements                                     6

   Item 2.    Management's Discussion and Analysis of Financial Condition
                 and Results of Operations                                                                10

   Item 3.    Controls and Procedures                                                                     13

PART II.     OTHER INFORMATION

   Item 1.    Legal Proceedings                                                                           13

   Item 2.    Changes in Securities                                                                       13

   Item 3.    Defaults Upon Senior Securities                                                             14

   Item 4.    Submissions of Matters to a Vote of Security Holders                                        14

   Item 5.    Other Information                                                                           14

   Item 6.    Exhibits and Reports on Form 8-K                                                            14


Signatures                                                                                                15
</TABLE>

                                        2
<PAGE>
                          PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements



                             Emergent Group Inc. and Subsidiaries
                             Condensed Consolidated Balance Sheet

<TABLE>
<CAPTION>
                                                                                   March 31,
                                                                                     2005
                                                                                ----------------
                                    ASSETS                                        (Unaudited)

<S>                                                                                   <C>
Current assets
     Cash                                                                           $   493,810
     Accounts receivable, net of allowance for doubtful
        accounts of $24,119                                                           1,520,297
     Inventory, net of reserves of $135,878                                             387,482
     Prepaid expenses                                                                   159,631

                                                                                ----------------
            Total current assets                                                      2,561,220

Property and equipment, net of accumulated depreciation and
        amortization of $3,229,718                                                    1,653,024
Goodwill                                                                                779,127
Deposits and other assets                                                               146,995
                                                                                ----------------
Total assets                                                                        $ 5,140,366
                                                                                ================

                     LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
     Line of credit                                                                 $   650,000
     Current portion of capital lease obligations                                       324,475
     Current portion of notes payable                                                   342,463
     Accounts payable                                                                   619,536
     Accrued expenses                                                                   677,028
                                                                                ----------------

        Total current liabilities                                                     2,613,502

Capital lease obligations, net of current portion                                       296,981
Notes payable, net of current portion                                                   241,833
                                                                                ----------------
            Total liabilities                                                         3,152,316

Minority Interest                                                                       169,798

Shareholders' equity
     Preferred stock, $0.001 par value, non-voting 10,000,000
        shares authorized, no shares issued and outstanding                                   -
     Common stock, $0.04 par value, 100,000,000 shares authorized
        4,744,551 shares issued and outstanding                                         189,782
     Additional paid-in capital                                                      14,488,090
     Accumulated deficit                                                            (12,859,620)
                                                                                ----------------
              Total shareholders' equity                                              1,818,252

                                                                                ----------------
 Total liabilities and shareholders' equity                                         $ 5,140,366
                                                                                ================

The accompanying notes are an integral part of these condensed financial statements.
</TABLE>
                                       3
<PAGE>
                            Emergent Group Inc. and Subsidiaries
                       Condensed Consolidated Statements of Operations
                                         (Unaudited)
<TABLE>
<CAPTION>

                                                                   Three Months Ended
                                                                        March 31,
                                                              -------------------------------
                                                                  2005            2004
                                                              -------------- ----------------
<S>                                                             <C>             <C>
Revenue                                                         $ 2,922,523     $ 2,682,440
Cost of goods sold                                                1,968,948       1,906,605
                                                              -------------- ---------------
Gross profit                                                        953,575         775,835

Selling, general, and administrative expenses                       799,134         799,974
                                                              -------------- ---------------
Income (loss) from operations                                       154,441         (24,139)

Other income (expense)
     Interest expense                                               (34,382)        (30,644)
     Gain (loss) on disposal of property and equipment                9,401          (3,518)
     Other income, net                                                5,980           5,480
                                                              -------------- ---------------
             Total other income (expense)                           (19,001)        (28,682)
                                                              -------------- ---------------

Income (loss) before provision for income taxes
     and minority interest                                          135,440         (52,821)
Provision for income taxes                                                -               -
                                                              -------------- ---------------

Income (loss) before minority interest                              135,440         (52,821)

Minority interest in income of consolidated
     limited liability companies                                     30,162         (29,729)
                                                              -------------- ---------------

Net income (loss)                                               $   105,278     $   (82,550)
                                                              ============== ===============

Basic and diluted earnings (loss) per share                     $      0.02     $     (0.02)
                                                              ============== ===============

Basic and diluted weighted-average shares outstanding             4,744,551       4,744,551
                                                              ============== ===============

The accompanying notes are an integral part of these condensed financial statements.
</TABLE>
                                       4
<PAGE>
                      Emergent Group Inc. and Subsidiaries
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)
                               Three Months Ended

<TABLE>
<CAPTION>
                                                                                        March 31,
                                                                               --------------------------------
                                                                                    2005            2004
                                                                               --------------- ----------------
<S>                                                                                 <C>              <C>
Cash flows from operating activities
     Net income (loss)                                                              $ 105,278        $ (82,550)
     Adjustments to reconcile net income (loss) to net cash
     provided by operating activities:
         (Gain) loss on disposal of property and equipment                             (9,401)           3,518
         Depreciation and amortization                                                299,854          296,874
         Provision for doubtful accounts                                               (2,006)          (2,198)
         Minority interest in income                                                   30,162           29,729
         (Increase) decrease in
            Accounts receivable                                                       (89,136)          84,775
            Inventory                                                                 (14,738)          27,346
            Prepaid expenses                                                          (30,663)          25,879
            Deposits and other assets                                                 (14,146)          (8,068)
         Increase (decrease) in
            Accounts payable                                                          132,400           78,719
            Accrued expenses                                                           (7,221)        (134,059)
                                                                               --------------- ----------------

Net cash provided by operating activities                                             400,383          319,965
                                                                               --------------- ----------------

Cash flows from investing activities
     Purchase of property and equipment                                               (57,865)        (192,281)
     Cash paid to limited liability companies                                         (42,291)         (37,300)
     Proceeds from the sale of property and equipment                                  11,539            1,481

                                                                               --------------- ----------------
Net cash used in investing activities                                                 (88,617)        (228,100)
                                                                               --------------- ----------------

Cash flows from financing activities
     Payments on capital lease obligations                                            (73,371)         (63,510)
     Payments on notes payable                                                        (96,180)         (97,644)

                                                                               --------------- ----------------
Net cash used in financing activities                                                (169,551)        (161,154)
                                                                               --------------- ----------------

Net increase (decrease) in cash                                                       142,215          (69,289)

Cash, beginning of period                                                             351,595          690,331

Cash, end of period                                                                 $ 493,810        $ 621,042

Supplemental disclosures of cash flow information:

     Interest paid                                                                  $  35,738        $  37,316

Supplemental disclosures of non-cash investing and financing activities -

     During the three months ended March 31, 2005 the Company financed  property
     and equipment of $78,000 through a financing lease.


The accompanying notes are an integral part of these condensed financial statements.
</TABLE>
                                       5
<PAGE>

                               EMERGENT GROUP INC
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   BUSINESS

     Emergent  Group  Inc.  ("Emergent")  is the parent  company of PRI  Medical
     Technologies,  Inc.,  its wholly owned and only operating  subsidiary.  PRI
     Medical  Technologies,  Inc.  primarily  conducted its business through its
     wholly owned subsidiary  Physiologic Reps ("PRI") until March 2005 at which
     time PRI was merged into PRI Medical  Technologies,  Inc. ("PRI  Medical").
     Emergent and PRI Medical are referred to  collectively  hereinafter  as the
     "Company." PRI Medical provides mobile laser/surgical  services, along with
     technical  support,  on a per  procedure  basis to  hospitals,  out-patient
     surgery centers, and physicians' offices.

2.   BASIS OF PRESENTATION

     The accompanying  unaudited condensed  consolidated financial statements of
     Emergent have been  prepared  pursuant to the rules of the  Securities  and
     Exchange Commission ("SEC").  Certain information and footnote  disclosures
     normally  included in  financial  statements  prepared in  accordance  with
     accounting  principles  generally  accepted in the United  States have been
     condensed  or  omitted  pursuant  to  such  rules  and  regulations.  These
     unaudited  condensed  consolidated  financial  statements should be read in
     conjunction with the audited  consolidated  financial  statements and notes
     thereto included in the Company's Annual Report on Form 10-KSB for the year
     ended  December 31, 2004. In the opinion of  management,  the  accompanying
     unaudited   condensed   consolidated   financial   statements  reflect  all
     adjustments,  which are of a normal recurring nature,  necessary for a fair
     presentation of the results for the periods presented.

     The results of  operations  presented  for the three months ended March 31,
     2005 are not  necessarily  indicative of the results to be expected for any
     other interim period or any future fiscal year.

     Principles of Consolidation
     ---------------------------
     The consolidated  financial statements include the accounts of Emergent and
     its wholly owned  subsidiaries.  Also,  in  accordance  with the  Financial
     Accounting Standards Board  Interpretation Nos. 46 and 46R,  "Consolidation
     of Variable  Interest  Entities"  the Company has  accounted for its equity
     investments in two limited liability companies under the full consolidation
     method. All significant  inter-company  transactions and balances have been
     eliminated through consolidation.

     Use of Estimates
     ----------------
     The  preparation  of the  condensed  consolidated  financial  statements in
     accordance  with  generally   accepted   accounting   principles   requires
     management  to make  estimates  and  assumptions  that affect the  reported
     amounts of assets and  liabilities,  disclosure  of  contingent  assets and
     liabilities  at the  date of the  financial  statements,  and the  reported
     amounts of income (loss) and expenses during the reporting  period.  Actual
     results could differ significantly from those estimates.

     Inventory
     ---------
     Inventory  consists of finished goods primarily used in connection with the
     delivery of our mobile  surgical  equipment  rental and services  business.
     Inventory  is  stated  at the  lower  of cost  or  market,  on a  first-in,
     first-out basis.

     Earnings Per Share
     ------------------
     The Company  computes  earnings per share in accordance  with SFAS No. 128,
     "Earnings  Per Share."  Under the  provisions  of SFAS No.  128,  basic net
     income  (loss) per common share  ("Basic  EPS") is computed by dividing net
     income per common share by the  weighted  average  number of common  shares
     outstanding.  Diluted  net  income  per  common  share  ("Diluted  EPS") is
     computed by dividing  net income by the weighted  average  number of common
     shares and dilutive common share equivalents then outstanding. SFAS No. 128
     requires the  presentation of both Basic EPS and Diluted EPS on the face of
     the condensed consolidated statements of operations. There were no dilutive
     common share equivalents outstanding as of March 31, 2005 and 2004.


                                       6
<PAGE>
     Recent Accounting Pronouncements
     ---------------------------------
     In November 2004, the FASB issued SFAS No. 151,"Inventory  Costs". SFAS No.
     151 amends the  accounting for abnormal  amounts of idle facility  expense,
     freight,  handling costs, and wasted material (spoilage) under the guidance
     in ARB No. 43, Chapter 4, "Inventory  Pricing".  Paragraph 5 of ARB No. 43,
     Chapter 4, previously  stated that ". . . under some  circumstances,  items
     such as idle facility  expense,  excessive  spoilage,  double freight,  and
     rehandling  costs may be so  abnormal  as to require  treatment  as current
     period  charges.  . . ."  This  Statement  requires  that  those  items  be
     recognized as  current-period  charges  regardless of whether they meet the
     criterion of "so  abnormal."  In addition,  this  Statement  requires  that
     allocation of fixed production overhead to the costs of conversion be based
     on the normal  capacity of the  production  facilities.  This  statement is
     effective for inventory  costs incurred during fiscal years beginning after
     June 15, 2005.  Management does not expect adoption of SFAS No. 151 to have
     a material impact on the Company's financial statements.


     In December 2004, the FASB issued SFAS No.  152,"Accounting for Real Estate
     Time-Sharing  Transactions".  The FASB issued this Statement as a result of
     the guidance provided in AICPA Statement of Position (SOP) 04-2,"Accounting
     for Real Estate  Time-Sharing  Transactions".  SOP 04-2 applies to all real
     estate  time-sharing  transactions.  Among other  items,  the SOP  provides
     guidance on the  recording  of credit  losses and the  treatment of selling
     costs,  but does not change the  revenue  recognition  guidance in SFAS No.
     66,"Accounting  for Sales of Real  Estate",  for real  estate  time-sharing
     transactions.  SFAS No.  152  amends  Statement  No.  66 to  reference  the
     guidance  provided  in SOP 04-2.  SFAS No.  152 also  amends  SFAS No.  67,
     "Accounting  for  Costs  and  Initial  Rental  Operations  of  Real  Estate
     Projects",  to state  that SOP  04-2  provides  the  relevant  guidance  on
     accounting for incidental  operations and costs related to the sale of real
     estate  time-sharing  transactions.  SFAS No.  152 is  effective  for years
     beginning  after June 15, 2005,  with  restatements  of  previously  issued
     financial  statements  prohibited.  This statement is not applicable to the
     Company.


     In December  2004, the FASB issued SFAS No.  153,"Exchanges  of Nonmonetary
     Assets,"  an  amendment  to  Opinion  No.  29,"Accounting  for  Nonmonetary
     Transactions".  Statement No. 153  eliminates  certain  differences  in the
     guidance  in  Opinion  No. 29 as  compared  to the  guidance  contained  in
     standards  issued by the  International  Accounting  Standards  Board.  The
     amendment  to  Opinion  No. 29  eliminates  the fair  value  exception  for
     nonmonetary  exchanges of similar  productive assets and replaces it with a
     general  exception  for  exchanges of  nonmonetary  assets that do not have
     commercial  substance.  Such an exchange  has  commercial  substance if the
     future cash flows of the entity are expected to change  significantly  as a
     result of the  exchange.  SFAS No. 153 is effective for  nonmonetary  asset
     exchanges  occurring  in periods  beginning  after June 15,  2005.  Earlier
     application  is permitted  for  nonmonetary  asset  exchanges  occurring in
     periods  beginning  after  December  16, 2004.  Management  does not expect
     adoption  of  SFAS  No.  153 to have a  material  impact  on the  Company's
     financial statements.


     In December  2004, the FASB issued SFAS No.  123(R),"Share-Based  Payment".
     SFAS 123(R) amends SFAS No. 123,"Accountung for Stock-Based  Compensation",
     and APB  Opinion  25,"Accounting  for  Stock  Issued  to  Employees."  SFAS
     No.123(R)  requires  that  the  cost of  share-based  payment  transactions
     (including  those with  employees and  non-employees)  be recognized in the
     financial  statements.  SFAS No. 123(R) applies to all share-based  payment
     transactions  in which an entity  acquires goods or services by issuing (or
     offering to issue) its shares,  share options,  or other equity instruments
     (except  for  those  held by an ESOP) or by  incurring  liabilities  (1) in
     amounts  based (even in part) on the price of the entity's  shares or other
     equity instruments,  or (2) that require (or may require) settlement by the
     issuance of an entity's shares or other equity instruments.  This statement
     is effective  (1) for public  companies  qualifying  as SEC small  business
     issuers,  as of the first  interim  period or fiscal year  beginning  after
     December 15, 2005, or (2) for all other public  companies,  as of the first
     interim period or fiscal year beginning after June 15, 2005, or (3) for all
     nonpublic  entities,  as of the first fiscal year beginning  after December
     15, 2005.  Management is currently  assessing the effect of SFAS No. 123(R)
     on the Company's financial statements.


3.   DEBT OBLIGATIONS

     At March 31, 2005 we have a bank line of credit (the "Bank Line of Credit")
     and a term loan (the "Term Loan") outstanding in the amount of $650,000 and

                                       7
<PAGE>
     $149,775,  respectively. The loan agreements, as amended, for both the Bank
     Line of Credit and Term Loan provide for monthly  interest  payments at the
     prime  rate,  plus  2.5%.  The Bank  Line of  Credit,  as  amended,  is not
     available for additional borrowings. In addition, the principal balance and
     accrued  interest for both credit  facilities is due and payable on May 31,
     2005. The Bank Line of Credit and Term Loan are  collateralized by accounts
     receivable  and a security  interest  on other  unencumbered  assets of the
     Company. The Bank Term Loan and Bank Line of Credit agreements prohibit the
     payment of cash dividends and require us to maintain  certain levels of net
     worth  and to  generate  certain  ratios  of cash  flows  to debt  service.
     Notwithstanding   the  modified   terms  and  conditions  of  these  credit
     facilities  as  discussed  herein,  as of  March  31,  2005 we were  not in
     compliance  with certain  covenants  and  provisions  of the original  loan
     agreements,   however,   the  lender   has   provided   waivers   for  such
     non-compliance  up to and including the maturity date of May 31, 2005. Both
     the Bank  Term  Loan and Bank  Line of Credit  are  classified  as  current
     liabilities in the accompanying  condensed consolidated balance sheet as of
     March 31, 2005.

     In 2002 we renegotiated substantially all of our outstanding debt and lease
     obligations  with  our key  creditors.  The  restructured  debt  and  lease
     agreements  provided  for, in some cases,  the return of equipment  used to
     collateralize   such   obligations,   and  certain   periodic  and  monthly
     installment  payments for the balance of such obligations.  As of March 31,
     2005 our outstanding  restructured debt and lease  obligations  amounted to
     $570,000.  In  the  event  of  default  by the  Company  all  amounts  then
     outstanding  are accelerated  and become  immediately  due and payable.  In
     addition,  in the event of  default,  certain  restructured  debt and lease
     agreements provide for the payment of additional principal amounts of up to
     $187,500,  excluding  collection costs. As of March 31, 2005 and the filing
     of this  Quarterly  Report on Form  10-QSB we were in  compliance  with the
     terms and conditions of our renegotiated debt and lease agreements.

     The Company incurred  interest expense of $34,382 and $30,644 for the three
     months ended March 31, 2005 and 2004, respectively.

4.   LEGAL MATTERS

     Byong Y.  Kwon,  Plaintiff  against  Daniel J. Yun,  Emergent  Group  Inc.,
     Emergent Capital Investment  Management,  LLC,  Metedeconk  Holdings,  LLC,
     Voyager  Advisors,  LLC,  Millennium  Tradition  Limited (f/k/a  Millennium
     Heritage,  Limited),  Emergent Management Company, LLC, Endurance Advisors,
     Limited,  SK Networks Co., Ltd. (f/k/a SK Global Co., Ltd.),  Hye Min Kang,
     John Does 1-2 and Richard Roes 1-2 (collectively the "Defendants").

     Plaintiff's  Complaint  against  the  Defendants  named  above  is a  civil
     lawsuit,  which was signed by the clerk on February 2, 2005. This action is
     brought in the United States District Court,  Southern District of New York
     by Plaintiff against the Company, a former director,  Daniel Yun, and other
     parties  to  recover   money   damages   for   alleged   fraud,   negligent
     misrepresentations  and aiding and  abetting  fraud.  The  35-page  Amended
     Complaint  alleges that the factual basis  involving the action against the
     Company involves alleged false  representations  to Plaintiff to induce him
     to leave his then  employment  in 2001 and accept the Company's and another
     named Defendant's alleged offer of employment. Plaintiff seeks compensatory
     damages and punitive damages each in the amount of not less than $2,100,000
     together  with  interest  thereon,  reasonable  attorneys'  fees and  other
     specific  relief  against  Defendants  other than the  Company.  Management
     intends to deny the  Plaintiff's  allegations  against  the  Company and to
     vigorously defend this lawsuit.

5.   RELATED PARTY TRANSACTIONS

     Transactions with BJH Management

     The Company's  Chairman and Chief Executive  Officer  maintains his primary
     office in New York. In this regard,  the Company reimbursed BJH Management,
     LLC, a company owned by the Company's Chairman and Chief Executive Officer,
     for office rent and  related  expenses  totaling  $8,299 and $7,982 for the
     three months ended March 31, 2005 and 2004, respectively.

                                       8
<PAGE>
6.   ISSUANCE OF STOCK OPTIONS

     During the quarter  ended March 31,  2005 the Company  issued to  employees
     stock  options to  purchase  73,000  shares of common  stock under the 2002
     Stock Option Plan.  Such options have a 10-year term and are exercisable at
     $0.40  per  share.  Generally,  one-fifth  of such  options  vest over five
     consecutive  years.  The options were valued using the Black  Schoels Model
     assuming  volatility  of 150% and a risk free  interest  rate of 3.5%.  The
     total  value  of the  options  was  determined  to be  $26,831.  Generally,
     one-fifth of such options vest over five  consecutive  years. The Company's
     basic and  dilutive  net income per share for the  quarter  ended March 31,
     2005 is follows:

                  Net income:
                     As reported                     $105,278
                     Pro Forma                       $103,936
                  Basic and Dilutive Net Income Per Share:
                     As reported                        $0.02
                     Pro Forma                          $0.02


                                       9
<PAGE>
Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations
--------------------------------------------------------------------------------
Forward-Looking Statements

The information contained in this Form 10-QSB and documents  incorporated herein
by reference are intended to update the  information  contained in the Company's
Annual  Report on Form  10-KSB for the year  ended  December  31,  2004 and such
information  presumes  that  readers  have  access to,  and will have read,  the
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations," "Risk Factors" and other information  contained in such Form 10-KSB
and other Company filings with the Securities and Exchange Commission ("SEC").

This Quarterly Report on Form 10-QSB contains forward-looking  statements within
the  meaning of Section  27A of the  Securities  Act of 1933,  as  amended,  and
Section  21E  of  the  Securities  Exchange  Act  of  1934,  as  amended.  These
forward-looking  statements involve risks and uncertainties,  and actual results
could be  significantly  different  than those  discussed  in this Form  10-QSB.
Certain   statements   contained  in   Management's   Discussion  and  Analysis,
particularly  in "Liquidity and Capital  Resources,"  and elsewhere in this Form
10-QSB are forward-looking  statements.  These statements  discuss,  among other
things,  expected growth,  future revenues and future  performance.  Although we
believe the expectations expressed in such forward-looking  statements are based
on reasonable  assumptions within the bounds of our knowledge of our business, a
number of factors  could cause actual  results to differ  materially  from those
expressed in any forward-looking statements, whether oral or written, made by us
or on our  behalf.  The  forward-looking  statements  are  subject  to risks and
uncertainties  including,  without  limitation,  the  following:  (a) changes in
levels of competition  from current  competitors and potential new  competition,
(b) possible loss of significant customer(s),  (c) the Company's ability to meet
the terms and conditions of its renegotiated debt and lease obligations, and (d)
changes in availability  or terms of working capital  financing from vendors and
lending  institutions.  The  foregoing  should not be construed as an exhaustive
list of all factors that could cause actual  results to differ  materially  from
those expressed in  forward-looking  statements made by us. All  forward-looking
statements  included in this  document are made as of the date hereof,  based on
information  available  to the  Company  on the date  thereof,  and the  Company
assumes no obligation to update any forward-looking statements.

Overview

Emergent  Group  Inc.   ("Emergent")  is  the  parent  company  of  PRI  Medical
Technologies,  Inc., its wholly owned and only operating subsidiary. PRI Medical
Technologies,  Inc.  primarily  conducted its business  through its wholly owned
subsidiary  Physiologic  Reps  ("PRI")  until  March  2005 at which time PRI was
merged into PRI Medical  Technologies,  Inc. ("PRI  Medical").  Emergent and PRI
Medical are referred to  collectively  hereinafter as the "Company." PRI Medical
provides mobile laser/surgical  services, along with technical support, on a per
procedure  basis to hospitals,  out-patient  surgery  centers,  and  physicians'
offices.

Critical Accounting Policies

Our  discussion  and  analysis  of  our  financial  conditions  and  results  of
operations are based upon our financial statements,  which have been prepared in
accordance with generally accepted  accounting  principles in the United States.
The preparation of financial  statements  require managers to make estimates and
disclosures on the date of the financial  statements.  On an on-going  basis, we
evaluate our estimates  including,  but not limited to, those related to revenue
recognition.  We use  authoritative  pronouncements,  historical  experience and
other assumptions as the basis for making judgments. Actual results could differ
from those estimates. We believe that the following critical accounting policies
affect our more  significant  judgments and estimates in the  preparation of our
financial statements.

Revenue  Recognition.  Revenue is recognized when the services are performed and
billable.  We are required to make judgments based on historical  experience and
future expectations, as to the realizability of goods and services billed to our
customers.  These  judgments  are  required  to  assess  the  propriety  of  the
recognition  of revenue  based on Staff  Accounting  Bulletin  ("SAB")  No. 104,
"Revenue  Recognition," and related guidance.  We make such assessments based on
the following factors:  (a)  customer-specific  information,  and (b) historical
experience for issues not yet identified.

Inventory  Valuation.  We are  required to make  judgments  based on  historical
experience and future expectations as to the realizability of our inventory.  We
make these assessments based on the following  factors:  (a) existing orders and
usage, (b) age of the inventory, and (c) historical experience.

                                       10
<PAGE>
Property and Equipment.  We are required to make  judgments  based on historical
experience and future  expectations as to the  realizability of our property and
equipment.  We made these  assessments based on the following  factors:  (a) the
estimated  useful  lives  of  such  assets,  (b)  technological  changes  in our
industry, and (c) the changing needs of our customers.

Results of Operations

The following table sets forth certain selected unaudited condensed consolidated
statement  of  operations  data for the  periods  indicated  in dollars and as a
percentage of total revenues. The following discussion relates to our results of
operations  for the  periods  noted and are not  necessarily  indicative  of the
results  expected for any other  interim  period or any future  fiscal year.  In
addition, we note that the period-to-period  comparison may not be indicative of
future performance.
<TABLE>
<CAPTION>
                                                              Three Months Ended
                                                       March 31,
                                                     --------------------------------------
                                                          2005         %         2004        %
                                                     ---------------        ---------------
                                                                   (unaudited)
<S>                                                     <C>            <C>     <C>           <C>
Revenue                                                 $ 2,922,523    100%    $ 2,682,440   100%

Cost of goods sold                                        1,968,948     67%      1,906,605    71%
                                                     ---------------        ---------------
Gross profit                                                953,575     33%        775,835    29%

Selling, general, and administrative expenses               799,134     27%        799,974    30%
                                                     ---------------        ---------------
Income (loss) from operations                               154,441      5%        (24,139)   -1%

Other income (expense)                                      (19,001)    -1%        (28,682)   -1%
                                                     ---------------        ---------------
Income (loss) before provision for income
    taxes and minority interest                             135,440      5%        (52,821)   -2%

Provision for income taxes                                       -       0%             -      0%
                                                     ---------------        ---------------
Net income (loss) before minority interest                  135,440      5%        (52,821)   -2%

Minority interest in income of consolidated
    limited liability companies                              30,162      1%        (29,729)   -1%
                                                     ---------------        ---------------
Net income (loss)                                        $  105,278      4%      $ (82,550)   -3%
                                                     ===============        ===============
</TABLE>

Comparison of the Three Months Ended March 31, 2005 to March 31,2004

We generated  revenues of $2,922,523 in 2005 compared to $2,682,440 in 2004. The
increase in revenues of $240,083 in 2005  compared to 2004 is primarily  related
to an increase in revenues  from our surgical  procedures.  In  addition,  price
increases  implemented  in late 2004 and early  2005 for  various  surgical  and
cosmetic  procedures also contributed to the increase in revenues in 2005. Total
revenues from surgical and cosmetic services  represented  approximately 87% and
12%, respectively, of total revenues for both 2005 and 2004.

Cost of  goods  sold was  $1,968,948  or 67% of  revenues  in 2005  compared  to
$1,906,605  or 71% of revenues in 2004.  Cost of goods sold include  payroll and
related expenses for technicians, cost of disposables used in providing surgical
and  cosmetic  services,  depreciation  and  amortization,  and  other  expenses
primarily  related to  delivery  of our  mobile  surgical  equipment  rental and
technician  services.  The overall  increase in cost of goods sold of $62,343 in
2005 is primarily  related to an increase in disposable costs due to an increase
in the number of surgical  procedures  performed  which  required  higher priced
disposable  items,  and to higher  depreciation  and  amortization  costs due to
equipment purchases in recent quarters. The cost of disposables used for certain
surgical  procedures  are higher in terms of  absolute  dollars  than those used
other  surgical  procedures.  The total  disposable  costs  related to  surgical
procedures will vary depending on the mix of procedures performed.  The increase
in  disposable  costs was offset by a slight  decrease in overall  other cost of
sales items as a result of our cost control efforts.

Gross  margin was  $953,575 in 2005 or 33% of  revenues  compared to $775,835 in
2004 or 29% of revenues. Gross margins will vary period-to-period depending upon
a number of factors  including  mix of services,  pricing,  cost of  disposables
consumed in rendering our services, and contractual agreements.  The improvement
in gross margin during 2005 is generally related to the mix of services provided
by the Company,  price increases implemented in late 2004 and early 2005, and to
cost control efforts. These factors,  among others,  resulted in the increase of
approximately 4% in our gross margin rate in 2005 compared to 2004.

                                       11
<PAGE>
Selling,  general, and administrative  expenses were $799,134 or 27% of revenues
in 2005  compared to $799,974  or 30% of  revenues in 2004.  Such costs  include
payroll and related expenses, insurance and rents. Overall selling, general, and
administrative  expenses  in 2005 were  consistent  with 2004 as a result of our
on-going cost control efforts.

Other income  (expense) was $(19,001) in 2005 compared to $(28,682) in 2004. The
net decrease in other  expense of $9,681 is primarily  related to a net increase
in gain on disposal of property and  equipment of $12,919  offset by an increase
in interest expense of $3,738 in 2005 compared to 2004.

The  minority  interest in income of limited  liability  companies of $30,162 in
2005 and $29,729 in 2004 relates to the  consolidation  of two entities in which
we hold  equity  investment  interests.  As of  March  31,  2005  and  2004,  in
accordance with the Financial  Accounting Standards Board Interpretation Nos. 46
and 46R, "Consolidation of Variable Interest Entities" the Company accounted for
its equity  investments in these entities under the full  consolidation  method.
The  Company  previously  utilized  the  equity  method of  accounting  for such
investments.

Net income was $105,278 in 2005  compared to a net loss of $(82,550) in 2004. No
provision  for  income  taxes  is  provided  for in  2005  and  2004  due to the
availability of net operating loss carryforwards.

Liquidity and Capital Resources

At March 31, 2005 we have a bank line of credit (the "Bank Line of Credit")  and
a term loan  (the  "Term  Loan")  outstanding  in the  amount  of  $650,000  and
$149,775,  respectively. The loan agreements, as amended, for both the Bank Line
of Credit and Term Loan provide for monthly interest payments at the prime rate,
plus 2.5%. The Bank Line of Credit, as amended,  is not available for additional
borrowings.  In addition,  the principal  balance and accrued  interest for both
credit  facilities  are due and payable on May 31, 2005. The Bank Line of Credit
and Term Loan are collateralized by accounts  receivable and a security interest
in other unencumbered assets of the Company.

The Bank Term Loan and Bank Line of Credit  agreements  prohibit  the payment of
cash  dividends  and require us to maintain  certain  levels of net worth and to
generate  certain  ratios of cash  flows to debt  service.  Notwithstanding  the
modified terms and conditions of these credit facilities as discussed herein, as
of  March  31,  2005  we were  not in  compliance  with  certain  covenants  and
provisions of the original  loan  agreements,  however,  the lender has provided
waivers for such non-compliance up to and including the maturity date of May 31,
2005.  Both the Bank Term Loan and Bank Line of Credit are classified as current
liabilities in the accompanying condensed consolidated balance sheet as of March
31, 2005.

In 2002 we  renegotiated  substantially  all of our  outstanding  debt and lease
obligations with our key creditors.  The restructured  debt and lease agreements
provided for, in some cases, the return of equipment used to collateralize  such
obligations,  and certain  periodic  and monthly  installment  payments  for the
balance of such obligations.  As of March 31, 2005 our outstanding  restructured
debt and lease obligations amounted to $570,000.  In the event of default by the
Company all amounts then outstanding are accelerated and become  immediately due
and payable. In addition, in the event of default, certain restructured debt and
lease agreements  provide for the payment of additional  principal amounts of up
to $187,500,  excluding  collection costs. As of March 31 and the filing of this
Quarterly  Report  on Form  10-QSB  we were in  compliance  with the  terms  and
conditions of our renegotiated debt and lease agreements.

The Company had cash and cash  equivalents  of $493,810 at March 31, 2005.  Cash
provided by operating  activities  for the three months ended March 31, 2005 was
$400,383. Cash from operations includes net income of $105,278, depreciation and
amortization of $299,854,  minority interest in net income of $30,162, decreases
in accounts  receivable,  inventory,  prepaid  expenses,  and deposits and other
assets of $148,683 and an increase in accounts payable of $132,400. Cash used in
investing  activities  was $88,617 due to the purchase of property and equipment
of $57,865 and cash payments of $42,291 to limited liability companies offset by
net proceeds of $11,539 from the sale of property and  equipment.  Cash used for
financing  activities  was $169,551  resulting  from  payments on lease and debt
obligations of $73,371 and $96,180, respectively.

                                       12
<PAGE>
The Company had cash and cash  equivalents  of $621,042 at March 31, 2004.  Cash
provided by operating  activities  for the three months ended March 31, 2004 was
$319,965.  Cash  from  operations  includes  depreciation  and  amortization  of
$296,874,  a decrease  in  accounts  receivable  of $84,775  and an  increase in
accounts  payable  of  $78,719  offset by a  decrease  in  accrued  expenses  of
$134,059.  Cash used in investing activities was $228,100 due to the purchase of
property and equipment of $192,281, and cash paid to limited liability companies
of  $37,300,  offset by  proceeds  from the sale of property  and  equipment  of
$1,481. Cash used for financing  activities was $161,154 resulting from payments
on lease and debt obligations of $63,510 and $97,644, respectively.

We anticipate that our future liquidity requirements will arise from the need to
finance our accounts  receivable and inventories,  and from the need to fund our
current  debt  obligations  and capital  expenditures.  The  primary  sources of
funding for such  requirements  will be cash generated from operations,  raising
additional capital from the sale of equity or other securities, borrowings under
debt  facilities and trade payables.  The Company  believes that it can generate
sufficient  cash flow from these sources to fund its operations for at least the
next twelve months.

Item 3. Controls and Procedures

The Company  maintains  disclosure  controls and procedures that are designed to
ensure that information  required to be disclosed in the Company's  Exchange Act
reports is recorded, processed,  summarized and reported within the time periods
specified in the SEC's rules and forms, and that such information is accumulated
and  communicated  to the Company's  management,  including its Chief  Executive
Officer and Chief Financial Officer,  as appropriate,  to allow timely decisions
regarding  required  disclosure  based closely on the  definition of "disclosure
controls and  procedures"  in Rule  13a-15(e).  In designing and  evaluating the
disclosure controls and procedures,  management recognized that any controls and
procedures,  no  matter  how  well  designed  and  operated,  can  provide  only
reasonable assurance of achieving the desired control objectives, and management
necessarily  was required to apply its judgment in evaluating  the  cost-benefit
relationship  of possible  controls and  procedures.  The Company carried out an
evaluation,  under the supervision and with the  participation  of the Company's
management,  including the Company's Chief  Executive  Officer and the Company's
Chief Financial Officer, of the effectiveness of the design and operation of the
Company's  disclosure  controls  and  procedures.  Based on the  foregoing,  the
Company's Chief Executive Officer and Chief Financial Officer concluded that the
Company's  disclosure  controls and procedures  were effective at the reasonable
assurance  level at the end of our  most  recent  quarter.  There  have  been no
changes in the Company's  disclosure controls and procedures or in other factors
that could affect the  disclosure  controls  subsequent  to the date the Company
completed its evaluation.


                           PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Byong Y. Kwon,  Plaintiff against Daniel J. Yun, Emergent Group, Inc.,  Emergent
Capital Investment Management,  LLC, Metedeconk Holdings, LLC, Voyager Advisors,
LLC, Millennium Tradition Limited (f/k/a Millennium Heritage, Limited), Emergent
Management  Company,  LLC, Endurance  Advisors,  Limited,  SK Networks Co., Ltd.
(f/k/a SK Global Co.,  Ltd.),  Hye Min Kang,  John Does 1-2 and Richard Roes 1-2
(collectively the "Defendants").

The civil lawsuit, which was signed by the clerk on February 2, 2005, is brought
in the United States District Court,  Southern  District of New York. This is an
action by Plaintiff  against the  Company,  a former  director,  Daniel Yun, and
other   parties  to  recover  money   damages  for  alleged   fraud,   negligent
misrepresentations  and aiding and abetting fraud. The 35-page Amended Complaint
alleges that the factual basis involving the action against the Company involves
alleged  false  representations  to  Plaintiff  to induce  him to leave his then
employment  during 2001 and accept the Company's  and another named  Defendant's
alleged offer of employment.  Plaintiff seeks compensatory  damages and punitive
damages each in the amount of not less than  $2,100,000  together  with interest
thereon, reasonable attorneys' fees and other specific relief against Defendants
other than the Company.  Management intends to deny the Plaintiff's  allegations
against the Company and to vigorously defend this lawsuit.


Item 2. Changes in Securities

(a)  In the  first  quarter  ended  March  31,  2005  there  were  no  sales  of
     unregistered securities.

(b)  Rule 463 of the Securities Act is not applicable to the Company.

(c)  In the first quarter ended March 31, 2005 there were no  repurchases by the
     Company of its Common Stock.

                                       13
<PAGE>
Item 3. Defaults Upon Senior Securities

Management's  Discussion and Analysis and Results of Financial Condition and the
Notes  to  Condensed  Consolidated  Financial  Statements  in Note 3,  describes
certain debt  obligations of the Company in which it was not in compliance  with
certain covenants for which the lender provided waivers of such  non-compliance.
Otherwise,  the Company is not in material default under any loan agreements and
is not in material  default of the payment of principal or interest that has not
been cured within 30 days.


Item 4. Submissions of Matters to a Vote of Security Holders

In the first quarter  ended March 31, 2005 there were no matters  submitted to a
vote of security holders.


Item 5. Other Information

          None.


Item 6. Exhibits

(a)  Except for the  exhibits  listed  below,  all of which are filed  herewith,
     other required  exhibits have been previously filed with the Securities and
     Exchange Commission under the Securities Exchange Act of 1934, as amended.

Number   Exhibit Description
-----------------------------

11.1      Statement  re:  computation  of earnings per share.  See  consolidated
          statement of operations and notes thereto.
31.1      Certification  of Chief Executive  Officer  Pursuant to Rule 13a-14(a)
          under the  Securities  Exchange  Act of 1934,  as adopted  pursuant to
          Section 302 of the Sarbanes-Oxley Act of 2002
31.2      Certification  of Chief Financial  Officer  Pursuant to Rule 13a-14(a)
          under the  Securities  Exchange  Act of 1934,  as adopted  pursuant to
          Section 302 of the Sarbanes-Oxley Act of 2002
32.1      Certification of Chief Executive Officer pursuant to 18 U.S.C. Section
          1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of
          2002
32.2      Certification of Chief Financial Officer pursuant to 18 U.S.C. Section
          1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of
          2002



                                       14
<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 report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                                      EMERGENT GROUP INC.



Date:    May 13, 2005                 By: /s/ Bruce J. Haber
                                          ------------------
                                          Bruce J. Haber,
                                          Chairman and Chief Executive Officer



Date:    May 13, 2005                 By: /s/ William M. McKay
                                          --------------------
                                          William M. McKay,
                                          Chief Financial Officer

                                       15