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 September 30, 2003


                         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 November 12, 2003, the registrant had a total of 4,209,924  shares of
Common  Stock  outstanding.  All share and per  share  information  in this Form
10-QSB give retroactive effect to a one-for-forty reverse stock split, effective
August 29, 2003.

<PAGE>
                               EMERGENT GROUP INC.

                          FORM 10-QSB Quarterly Report

                                Table of Contents

<TABLE>
<CAPTION>
                                                                                           Page
PART I.  FINANCIAL INFORMATION

<S>     <C>                                                                                 <C>
   Item 1.    Financial Statements

              Condensed Consolidated Balance Sheets as of September 30, 2003 and
                   December 31, 2002                                                         3

              Condensed Consolidated Statements of Operations for the
                   Three and Nine Months Ended September 30, 2003 and 2002                   4

              Condensed Consolidated Statements of Cash Flows for the
                 Nine Months Ended September 30, 2003 and 2002                               5

              Notes to the Condensed Consolidated Financial Statements                       7

   Item 2.    Management's Discussion and Analysis of Financial Condition
                 and Results of Operations                                                  13

   Item 3.    Controls and Procedures                                                       18

PART II.  OTHER INFORMATION

   Item 1.    Legal Proceedings                                                             19

   Item 2.    Changes in Securities                                                         19

   Item 3.    Defaults Upon Senior Securities                                               19

   Item 4.    Submissions of Matters to a Vote of Security Holders                          20

   Item 5.    Other Information                                                             20

   Item 6.    Exhibits and Reports on Form 8-K                                              20


Signatures                                                                                  21
</TABLE>

                                       2
<PAGE>
                          PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

                      Emergent Group Inc. and Subsidiaries
                      Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                                        September 30,        December 31,
                                                                            2003                2002
                                                                        --------------    --------------
                               ASSETS
Current assets
<S>                                                                     <C>                <C>
     Cash                                                               $    974,732      $     957,242
     Accounts receivable, net                                              1,229,660          1,306,055
     Due from related parties, net                                                --            121,543
     Inventory, net                                                          347,543            295,069
     Prepaid expenses                                                        321,645            265,062
     Income tax receivable                                                        --              4,830
                                                                        --------------    --------------

            Total current assets                                           2,873,580          2,949,801

Equity investment in limited liability companies                              26,233             31,134
Property and equipment, net                                                1,814,538          1,888,688
Goodwill, net                                                                779,127            779,127
Deposits and other assets, net                                               143,469            133,022
                                                                        --------------    --------------
Total assets                                                            $  5,636,947     $    5,781,772
                                                                        ==============    ==============

                LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
     Line of credit                                                      $ 1,000,000     $    1,108,700
     Current portion of capital lease obligations                            392,695            677,973
     Current portion of notes payable                                        623,949            807,908
     Due to related parties, net                                              93,232                 --
     Accounts payable                                                        475,278            544,835
     Accrued expenses                                                        651,925          1,053,243
                                                                        --------------    --------------

        Total current liabilities                                          3,237,079          4,192,659

Capital lease obligations, net of current portion                            217,875            368,618
Notes payable, net of current portion                                        526,108            657,833
                                                                        --------------    --------------

            Total liabilities                                              3,981,062          5,219,110

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
        4,209,924 and 1,622,945 shares issued and outstanding                168,357             64,918
     Committed stock, 61,000 shares                                               --              2,440
     Additional paid-in capital                                           14,398,860         13,541,784
     Accumulated deficit                                                 (12,911,332)       (13,046,480)
                                                                        --------------    --------------

              Total shareholders' equity                                   1,655,885            562,662
                                                                        --------------    --------------
 Total liabilities and shareholders' equity                             $  5,636,947     $    5,781,772
                                                                        ==============    ==============

 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

<TABLE>
<CAPTION>
                                                             Three Months Ended           Nine Months Ended
                                                               September 30,                September 30,
                                                           2003           2002           2003           2002
                                                       ------------   ------------   ------------   ------------
<S>                                                    <C>            <C>            <C>            <C>
Revenue                                                $ 2,529,005    $ 2,150,222    $ 7,015,689    $ 6,850,567
Cost of goods sold                                       1,630,501      1,359,082      4,465,948      4,165,276
                                                       ------------   ------------   ------------   ------------
Gross profit                                               898,504        791,140      2,549,741      2,685,291

Selling, general, and administrative expenses              784,939        947,831      2,408,861      2,663,382
                                                       ------------   ------------   ------------   ------------
Income (Loss) from operations                              113,565       (156,691)       140,880         21,909

Other income (expense)
     Realized (loss) on investment securities                   --             --             --     (1,732,573)
     Interest expense                                      (37,855)       (94,657)      (144,484)      (377,217)
     Equity in net earnings (losses) of investment
         in limited liability companies                      2,767          7,243        (13,379)        13,417
     Gain (loss) on disposal of property and equipment       8,292         (3,683)        40,743        209,139
     Other income (expense), net                            (8,958)       (12,062)         5,213         80,296
                                                       ------------   ------------   ------------   ------------
            Total other income (expense)                   (35,754)      (103,159)      (111,907)    (1,806,938)
                                                       ------------   ------------   ------------   ------------
Income (loss) before provision for income taxes
     and extraordinary item                                 77,811       (259,850)        28,973     (1,785,029)
Provision for income taxes                                      --             --             --             --
                                                       ------------   ------------   ------------   ------------
Income (loss) before extraordinary item                     77,811       (259,850)        28,973     (1,785,029)
Extraordinary item
     Gain on forgiveness of debt, net of tax                 1,358        209,694        106,176      1,260,077
                                                       ------------   ------------   ------------   ------------
Net income (loss)                                      $    79,169    $   (50,156)   $   135,149    $  (524,952)
                                                       ============   ============   ============   ============
Income (Loss) Per Share Data:
     Before extraordinary item                         $      0.03    $     (0.20)   $      0.01    $     (1.35)
     Extraordinary item                                       0.00           0.16           0.05           0.95
                                                       ------------   ------------   ------------   ------------
Basic and diluted income per share                     $      0.03    $     (0.04)   $      0.06    $     (0.40)
                                                       ============   ============   ============   ============
Weighted-average shares outstanding                      2,580,685      1,326,125      1,986,143      1,326,125
                                                       ============   ============   ============   ============

    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
<TABLE>
<CAPTION>
                                                                                      Nine Months Ended
                                                                                       September 30,
                                                                                   2003            2002
                                                                               ------------    ------------
Cash flows from operating activities
<S>                                                                            <C>             <C>
     Net income (loss)                                                         $   135,149     $  (524,952)
     Adjustments to reconcile net loss to net cash
     provided by (used in) operating activities:
         Gain on disposal of property and equipment                                (40,743)       (209,139)
         Gain on forgiveness of debt                                              (106,176)     (1,260,077)
         Realized loss on investment securities                                          -       1,732,573
         Depreciation and amortization                                             578,992         457,499
         Write-off of loan fees, net                                                     -          88,576
         Equity in net (gain) loss of investment in limited liability companies     13,379         (13,631)
         Provision for doubtful accounts                                           (14,996)          5,444
         (Increase) decrease in
            Accounts receivable                                                  1,261,816       1,564,979
            Inventory                                                              (52,474)         45,363
            Due from related party                                                 959,070       (879,328)
            Prepaid expenses                                                       (56,583)        (83,133)
            Deposits and other assets                                                9,450           4,734
         Increase (decrease) in
            Accounts payable                                                      (113,794)       (302,585)
            Accrued expenses                                                      (285,142)        225,421
                                                                               ------------    ------------
Net cash provided by operating activities                                          369,808         851,744
                                                                               ------------    ------------
Cash flows from investing activities
     Cash paid to limited liability companies                                      (86,700)        (26,034)
     Purchase of property and equipment                                           (345,797)        (38,404)
     Proceeds from the sale of property and equipment                               42,510         293,012
     Purchase of customer list and covenant not-to-compete                         (50,000)              -
     Proceeds from the sale of securities, net                                           -         267,427
                                                                               ------------    ------------
Net cash provided by (used in) investing activities                               (439,987)        496,001
                                                                               ------------    ------------
Cash flows from financing activities
     Proceeds from private placement of subordinated notes, net                    948,074               -
     Payments on capital lease obligations                                        (436,021)       (304,586)
     Payments on line of credit                                                   (108,700)              -
     Payments on notes payable                                                    (315,684)       (287,170)
     Net change in book overdraft                                                        -        (146,427)
                                                                               ------------    ------------
Net cash provided by (used in) financing activities                                 87,669        (738,183)
                                                                               ------------    ------------
Net increase in cash                                                                17,490         609,562
Cash, beginning of period                                                          957,242         482,165
                                                                               ------------    ------------
Cash, end of period                                                            $   974,732     $ 1,091,727
                                                                               ============    ============
Supplemental disclosures of cash flow information:
     Interest paid                                                             $   138,332     $   171,230
                                                                               ============    ============

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

                      Emergent Group Inc. and Subsidiaries
                 Condensed Consolidated Statements of Cash Flows
                                   (continued)

Supplemental disclosures of non-cash investing and financing activities -

     During the nine months ended September 30, 2003 and 2002 the Company billed
     $ 619,245 and $776,942 ,  respectively,  to a related party for  management
     fees. The Company also incurred expenses on behalf of the related party.

     In  September  2003,   property  and  equipment   valued  at  $125,878  was
     transferred  to the  Company  from a related  party as partial  payment for
     amounts due in connection with management fees and other costs.

     During the quarter ended September 30, 2003 the Company converted $1
     million of its convertible subordinated notes into 2.5 million shares of
     its common stock. In addition, the company issued 25,000 shares of common
     stock to the note holders in lieu of cash for accrued interest on such
     notes.

    The accompanying notes are an integral part of these condensed financial
                                   statements.

                                       6
<PAGE>
                               EMERGENT GROUP INC
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   BUSINESS

     Emergent  Group  Inc.  ("Emergent")  is the parent  company of PRI  Medical
     Technologies,  Inc. (formerly Medical Resources Management, Inc.) ("PRIM"),
     its wholly owned and only operating  subsidiary.  Emergent acquired PRIM in
     July 2001 as per an Agreement and Plan of Reorganization of Merger ("Merger
     Agreement"),  dated January 23, 2001. PRIM primarily  conducts its business
     through its wholly owned  subsidiary  Physiologic  Reps ("PRI").  Emergent,
     PRIM and PRI are referred to collectively hereinafter as the "Company." PRI
     is a provider of mobile  surgical  equipment on a fee for service  basis to
     hospitals,  surgical care centers and other health care providers. PRI also
     provides  technical  support  required to ensure the  equipment  is working
     correctly.  PRI provides a limited  amount of  non-surgical  equipment on a
     rental basis to hospitals and surgery  centers,  although PRI began winding
     down  this  area of  business  in early  2002 in order to focus on its core
     surgical equipment rental/services business.

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-K for the year
     ended  December 31, 2002. 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 and nine months
     ended  September  30, 2003 and 2002 are not  necessarily  indicative of the
     results to be expected for any other  interim  period or any future  fiscal
     year.

     The Company's only operating  subsidiary,  PRIM has  historically  incurred
     operating losses. The consolidated  financial statements have been prepared
     on a going-concern  basis, which contemplates the realization of assets and
     satisfaction  of  liabilities  in the  normal  course  of  business.  As of
     September  30, 2003 and December  31, 2002 the Company had working  capital
     deficits of $363,499  and  $1,242,858,  respectively.  Although the Company
     achieved  positive  operating  results  before  extraordinary  item for the
     three-months  and nine-months  ended September 30, 2003, we incurred a loss
     before  extraordinary  item  for  the  year  ended  December  31,  2002  of
     $(4,227,193).  There can be no assurances that the Company will continue to
     achieve  positive  operating  results  in  future  periods.  The  financial
     statements do not include any  adjustments  to reflect the possible  future
     effects on the  recoverability  and classification of assets or the amounts
     and  classification of liabilities that may result from the outcome of this
     uncertainty.

     Principles of Consolidation

     The condensed consolidated financial statements include the accounts of all
     majority-owned subsidiaries. All significant intercompany transactions have
     been eliminated in 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  and 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.

                                       7
<PAGE>
     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 (Loss) Per Share

     The Company computes  earnings (loss) 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  (loss) per common  share by the weighted  average  number of common
     shares  outstanding.  Diluted net income (loss) per common share  ("Diluted
     EPS") is computed by dividing  net income  (loss) 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.

     Reclassifications

     Certain  amounts in the prior periods have been  reclassified to conform to
     the  presentation  for the three and nine months ended  September 30, 2003.
     The financial  information included in this quarterly report should be read
     in conjunction with the consolidated financial statements and related notes
     thereto  in the  Company's  Annual  Report on Form 10-K for the year  ended
     December 31, 2002.

     Recent Accounting Pronouncements

     In June  2002,  the  FASB  issued  SFAS  No.  146,  "Accounting  for  Costs
     Associated  with Exit or Disposal  Activities."  This  statement  addresses
     financial  accounting  and  reporting  for  costs  associated  with exit or
     disposal activities and nullifies Emerging Issues Task Force ("EITF") Issue
     No. 94-3, "Liability  Recognition for Certain Employee Termination Benefits
     and Other Costs to Exit an Activity  (including Certain Costs Incurred in a
     Restructuring)."  This  statement  requires  that  a  liability  for a cost
     associated  with  an exit or  disposal  activity  be  recognized  when  the
     liability is incurred. Under EITF Issue 94-3, a liability for an exit cost,
     as defined, was recognized at the date of an entity's commitment to an exit
     plan.  The  provisions of this statement are effective for exit or disposal
     activities  that  are  initiated  after  December  31,  2002  with  earlier
     application encouraged. This statement is not applicable to the Company.

     In October  2002,  the FASB issued SFAS No. 147,  "Acquisitions  of Certain
     Financial  Institutions."  SFAS No. 147 removes the requirement in SFAS No.
     72 and  Interpretation  9 thereto,  to recognize and amortize any excess of
     the fair value of  liabilities  assumed over the fair value of tangible and
     identifiable  intangible  assets acquired as an  unidentifiable  intangible
     asset. This statement  requires that those transactions be accounted for in
     accordance with SFAS No. 141,  "Business  Combinations,"  and SFAS No. 142,
     "Goodwill and Other Intangible Assets." In addition,  this statement amends
     SFAS No. 144,  "Accounting  for the  Impairment  or Disposal of  Long-Lived
     Assets,"  to  include  certain  financial  institution-related   intangible
     assets.  The  Company  does not expect  adoption  of SFAS No. 147 to have a
     material impact on its financial position or results of operations.

     In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
     Compensation  - Transition and  Disclosure,"  an amendment of SFAS No. 123.
     SFAS No. 148 provides  alternative  methods of  transition  for a voluntary
     change  to the fair  value  based  method  of  accounting  for  stock-based
     employee  compensation.  In  addition,  SFAS No. 148 amends the  disclosure
     requirements  of SFAS No. 123 to require more  prominent  and more frequent
     disclosures  in  financial  statements  about the  effects  of  stock-based
     compensation.  This  statement is effective  for financial  statements  for
     fiscal years ending after December 15, 2002. SFAS No. 148 will not have any
     impact on the Company's  financial  statements as management  does not have
     any intention to change the fair value method.

     In January 2003, the FASB issued FASB Interpretation No. 46, "Consolidation
     of  Variable  Interest  Entities."  FIN 46  clarifies  the  application  of
     Accounting Research Bulletin No. 51, Consolidated Financial Statements, and
     requires the consolidation of certain entities in which equity investors do
     not have the characteristics of a controlling  financial interest or do not
     have  sufficient  equity for the entity to finance its  activities  without
     additional  subordinated  financial support from other parties.  Management
     has deferred its  decision to consolidate its equity investments in limited
     liability  companies  due to the  deferral of FIN 46 for the period  ending
     after  December  15,  2003.  is  currently  evaluating  the  impact  of the
     consolidation  of its  interest in the limited  liability  companies on the
     Company's financial position and results of operations.

                                       8
<PAGE>
     In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on
     Derivative  Instruments  and Hedging  Activities."  SFAS No. 149 amends and
     clarifies  accounting and reporting for derivative  instruments and hedging
     activities under SFAS No. 133,  "Accounting for Derivative  Instruments and
     Hedging  Activities." SFAS No. 149 is effective for derivative  instruments
     and hedging activities entered into or modified after June 30, 2003, except
     for  certain  forward  purchase  and sale  securities.  For  these  forward
     purchase and sale  securities,  SFAS No. 149 is effective  for both new and
     existing  securities  after June 30, 2003. The adoption of SFAS No. 149 has
     no  material  impact on the  Company's  financial  position  or  results of
     operations as of September 30, 2003.

     In May  2003,  the  FASB  issued  SFAS No.  150,  "Accounting  for  Certain
     Financial Instruments with Characteristics of both Liabilities and Equity."
     SFAS  No.  150  establishes  standards  for how an  issuer  classifies  and
     measures  in  its  statement  of  financial   position  certain   financial
     instruments  with  characteristics  of  both  liabilities  and  equity.  In
     accordance with the standard, financial instruments that embody obligations
     for the issuer are required to be classified as  liabilities.  SFAS No. 150
     will be effective for financial  instruments entered into or modified after
     May 31, 2003 and otherwise  will be effective at the beginning of the first
     interim period  beginning  after June 15, 2003. The adoption of SFAS 150 is
     not  expected  to have any impact on the  Company's  financial  position or
     results of operations.

3.   DEBT OBLIGATIONS AND PLAN OF RESTRUCTURE

     During  2002 we were in default  on most of our note and lease  obligations
     due to delinquent  principal and interest  payments.  In an effort to avoid
     ceasing our operations or a possible  bankruptcy filing and in an effort to
     improve our financial condition,  during the first quarter of 2002 we began
     the process of  renegotiating  substantially  all of our outstanding  debt,
     lease,  and trade  obligations  with our key creditors.  As of December 31,
     2002 we had substantially  completed our debt  restructuring  efforts.  The
     restructured debt and lease obligation agreements provide in some cases for
     the  return  of  equipment  used  to  collateralize  such  obligations,  if
     applicable,  and certain periodic and monthly  installments for the balance
     of such obligations.  Generally,  in the event of default by the Company we
     are required to repay all amounts previously  forgiven and all amounts then
     outstanding  are accelerated  and become  immediately  due and payable.  In
     addition,  for the nine  months  ended  September  30,  2003 and  2002,  we
     recorded  net gains on  forgiveness  of debt in the amount of $106,176  and
     $1,260,077, respectively. As of the filing date of this Quarterly Report on
     Form 10-QSB,  we are in  compliance  with the terms and  conditions  of our
     renegotiated debt agreements.

     At September 30, 2003 we had a bank loan (the "Bank Term Loan") outstanding
     in the amount of $449,775.  The loan  agreement,  as amended,  provides for
     monthly  payments of  principal  of $16,667 and  interest at the prime rate
     plus 4.00%.  As of  December  31,  2002 and  September  30, 2003 we were in
     default under  certain  provisions  of the original  loan  agreement  (such
     defaults  were  waived by the lender,  effective  October 1, 2003) and as a
     result all principal and interest are shown as current  liabilities  in the
     accompanying balance sheets. In April 2003, the lender agreed to extend the
     term of the loan to March  2004  under  the same  terms and  conditions  as
     described  herein.  We also have an  outstanding  bank line of credit  (the
     "Bank Line of Credit") in the amount of  $1,000,000  with the same  lender.
     This Bank Line of Credit  provides  for  interest at the prime  rate,  plus
     2.75%, with borrowings based upon eligible accounts  receivable as defined.
     The amount  outstanding under the Bank Line of Credit exceeded the eligible
     borrowing  base as of  December  31,  2002 and  September  30, 2003 and the
     Company was in default  under  certain  provisions  of the original  credit
     agreement  (such defaults were waived by the lender,  effective  October 1,
     2003).  As a result this  facility is not available for use as of September
     30, 2003.  In April 2003 the lender agreed to amend the Bank Line of Credit
     to  provide  for an  extension  of the due  date  to  September  2003.  The
     amendment to the line of credit  provided  for a pay down of $108,700  upon
     execution of the  amendment.  The other terms and  condition of this credit
     facility remain the same.

     Effective  October  1,  2003,  the Bank  Term  Loan and Bank Line of Credit
     agreements  were  amended to extend  the due date to April 30,  2004 and to
     amend other provisions of the original loan agreements (see note 8 below).

     The Bank Line of Credit  and Bank Term Loan  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 the Bank Line of Credit and Bank Term Loan
     as discussed  above,  as of September  30, 2003,  we were not in compliance
     with certain financial  covenants of such agreements.  As a result, we have
     classified  all of the bank loan  facilities as current  liabilities in the
     accompanying balance sheet as of September 30, 2003.

4.   LEGAL PROCEEDINGS

                                       9
<PAGE>
     Stonepath Group, Inc.

     In October 2000, a related party of the Company (the "plaintiff") commenced
     an action on behalf of the Company against Stonepath Group, Inc. and two of
     its officers in the United States District Court for the Southern  District
     of New York.  The action was for  negligence  and fraud  under the  federal
     securities  laws and common law to recover its investment in Stonepath.  On
     April 15, 2002,  the court  dismissed  the  plaintiff's  amended  Complaint
     without  leave to amend.  The  Company  has filed an appeal of the  court's
     decision and this appeal is pending.

     Citicorp Vendor Finance, Inc.

     On April 25, 2002, Citicorp Vendor Financial,  Inc. ("Citicorp") filed suit
     against  PRI  and  PRIM  for  breach  of  contract  in  Superior  Court  of
     California,  County of Los Angeles. This lawsuit sought to recover $655,916
     plus interest and late charges in connection with amounts due under certain
     equipment lease agreements.  The Company reached a settlement with Citicorp
     in November  2002,  whereby,  the Company agreed to pay Citicorp a total of
     $400,000 in full settlement of the claim in various installments,  with the
     balance  being  paid in full by March 1, 2004.  As part of the  settlement,
     Citicorp  has agreed that PRI may sell the  equipment  under the  equipment
     lease agreement but must transmit to Citicorp all proceeds from the sale in
     excess of $225,000.  In January 2003, the Company paid $175,000 to Citicorp
     from  proceeds   received  from  equipment  sales  in  December  2002.  The
     settlement  further  stipulates  in  event  of  non-payment,  Citicorp  can
     petition  the court for an entry of judgment  against  PRI.  The Company is
     current in making all required payments under the settlement agreement.

     General Electric

     Beginning  in 1999,  the  Company's  subsidiaries  entered into 39 personal
     property sales contracts to purchase from General  Electric certain medical
     imaging equipment. The total amount the Company owed to General Electric as
     of May 21, 2002 was  $2,399,487.  The  Company  reached a  settlement  with
     General  Electric in June 2002 and entered into a Stipulation of Settlement
     for entry of judgment  which would be filed in Superior  Court of the State
     of  California,  County of Los Angeles only if there is a default  which is
     not cured.  Pursuant to the  settlement  agreement,  the Company  agreed to
     return certain equipment to General Electric and to make sixty (60) monthly
     payments  of $18,013  for a total of  $1,080,781.  In the event the Company
     fails to make all  required  payments  when  due,  and an event of  default
     occurs  which is not cured,  the  Company  would owe General  Electric  the
     original  amounts due at the date of  settlement  under 39  personal  sales
     contracts. The Company is current in making all required payments under the
     settlement  agreement  and  substantially  all of the  equipment  has  been
     returned.  . In addition to the matters noted above,  from time to time, we
     may become  involved in litigation  arising out of operations in the normal
     course of  business.  As of September  30, 2003,  we are not a party to any
     pending legal  proceedings the adverse outcome of which could reasonably be
     expected  to have a material  adverse  effect on our  operating  results or
     financial position.

5.   PURCHASE OF BUSINESS AND COVENANT NOT-TO-COMPETE

     In May  2003,  the  Company  entered  into  an  agreement  with  the  owner
     ("Seller")  of a small mobile  cosmetic  laser  company  located in the Los
     Angeles area to purchase (the  "Agreement")  its customer list as well as a
     covenant  not-to-compete.  The  purchase  price of $50,000 was paid in June
     2003 and was  allocated to the customer  list and covenant  not-to-compete.
     Such payment is being amortized on a  straight-line  basis over five years.
     The  Company  also agreed to make  additional  payments to the Seller for a
     period of  eighteen  months  based on future  revenues  resulting  from the
     acquired  customer list. The additional  payments were not material  during
     the period ended  September 30, 2003. Such amounts are being amortized on a
     straight-line basis over five years from the date of purchase.

6.   REVERSE STOCK SPLIT

     On August 5, 2003,  a majority of the  Company's  stockholders  approved an
     Amendment  to the  Company's  Articles of  Incorporation  to (i) reduce the
     number of outstanding  shares of Common Stock through a one-for-40  reverse
     stock  split,  effective  at the  opening of business on August 29, 2003 to
     record  holders  at the close of  business  on August  28,  2003 and (ii) a
     proportionately  increase the par value of the Company's  Common Stock from
     $.001 par

                                       10
<PAGE>
     value to $.04 par value per share.  All  stockholders  of record  have been
     requested to exchange every 40 shares of Common Stock,  $.001 par value for
     one new  share of  Common  Stock,  $.04 par  value.  The  number  of shares
     outstanding and earnings (loss) per share for all periods  presented in the
     accompanying financial statements have been adjusted to reflect the reverse
     stock-split.

7.   RELATED PARTY TRANSACTIONS

     In February  2003,  the Company  entered  into a  non-exclusive  consulting
     agreement with a former officer of PRIM. The agreement  provides for a term
     of twelve months  commencing  on February 1, 2003. In connection  with this
     agreement,  the Company issued the consultant 6,250 (post-split) options to
     purchase the Company's  common stock.  The options  expire in ten years and
     provide  for an  exercise  price of $0.40 per share.  Compensation  expense
     related to the  options is not  material  and no  compensation  expense was
     recognized during the nine months ended September 30, 2003.

     In December 2002, the Company entered into a consulting  agreement with its
     former  Chief  Executive  Officer and his  company,  JIMA  Management.  The
     agreement related to the provision of consulting services during the period
     from July 2001 to March  2002 in  exchange  for a monthly  fee of  $10,000,
     payable in 2003. During the three and nine months ended September 30, 2003,
     the Company recorded consulting expense of $3,000 and $9,000, respectively,
     and paid $30,000 and $90,000,  respectively, on amounts accrued in 2001 and
     2002 with regard to such services rendered.

     During the nine months ended September 30, 2003 the Company billed $619,245
     to a related  party for  management  and other fees.  Such fees amounted to
     $776,942 for the nine months  ended  September  30, 2002.  The Company also
     incurred expenses on behalf of the related party.

     In November 2002, the Company entered into a settlement  agreement with the
     former Chief Executive Officer/Chairman/President of PRIM. The terms of the
     agreement provide for payments by the Company totaling $42,000. Pursuant to
     the  agreement  the Company paid $25,000 in November  2002 and made a final
     payment of $17,000  during  March 2003 in exchange  for the full release of
     all  obligations  under the January 2000  employment  agreement,  which was
     subsequently  amended in both August and November  2001. The Company has no
     further obligations under this agreement.

     Transactions with BJH Management

     In January  2003,  the  Company  incurred  consulting  fees and  reimbursed
     expenses of $36,548 and $3,389, respectively,  for services provided by BJH
     Management,  a consulting  company  ("BJH") which is owned by the Company's
     current  Chairman and Chief  Executive  Officer who assumed this  position,
     effective  February 1, 2003.  The  Company's  Chairman and Chief  Executive
     Officer  maintains  his  office  in  New  York,  in  connection  with  this
     arrangement,  the Company  reimbursed  BJH for office and related  expenses
     totaling  $8,309 and $26,329,  respectively,  for the three and nine months
     ended September 30, 2003.

     Between  December  30, 2002 and  September  30,  2003,  the Company  issued
     348,575  (post-split)  shares of its Common Stock to BJH, which represented
     17.5% of the Company's fully diluted shares  outstanding as of the issuance
     date, as defined in the Stock  Issuance  Agreement  between the Company and
     BJH.  In  addition,   in  October  2003,  BJH   Management   exercised  its
     anti-dilution  rights  under  the Stock  Issuance  Agreement  and  received
     additional common shares (see note 8).

     On December 30, 2002,  the Company  entered into two,  18-month  employment
     agreements  with the one officer and one  associate of BJH. The  agreements
     were to appoint a new Chairman and Chief Executive  Officer,  and President
     for annual compensations of $175,000 and $161,000, respectively,  beginning
     in January 2003.  The officer  positions  were assumed on February 1, 2003.
     The agreements also provide for milestone  bonuses up to $75,000 each, plus
     a percentage of pre-tax  profits  should  certain  targets be achieved.  No
     bonus  amounts have been  accrued  through  September  30, 2003 under these
     agreements.

     Private Placement of Convertible Subordinated Promissory Notes

     In June 2003, the Company raised  $1,000,000 from the private  placement of
     its Subordinated  Promissory Notes (the "Notes") as more fully described in
     its Form 8-K dated June 27, 2003. The Company  incurred  offering costs of
     $51,926 in connection with the private placement. Such Notes were generally
     sold in  increments  of  $20,000  (50 units)  each.  Certain  officers  and
     directors of the Company and members of law firms who have acted in a legal
     capacity to the Company purchased Notes totaling  $700,000.  Notes totaling
     $300,000

                                       11
<PAGE>
     were  purchased  by other  accredited  investors.  The  Notes  provide  for
     interest at 6% per annum payable at the earlier of maturity,  conversion or
     redemption.  Pursuant to the terms and  conditions of the Notes,  the Notes
     were automatically converted into shares of the Company's common stock (100
     million  pre-split  shares or  2,500,000  post split  shares) on August 29,
     2003,  the effective date of a one for forty reverse split of the Company's
     common stock.  The Company issued an additional  25,000  post-split  common
     shares in lieu of payment  of cash for  accrued  interest  on such Notes of
     which 17,500 shares were issued to the  officers,  directors and members of
     law firms who have acted in a legal  capacity to the  Company  based on the
     shares they purchased in the private placement.

8.   SUBSEQUENT EVENTS

     In October 2003,  BJH exercised  its  anti-dilution  rights under the Stock
     Issuance  Agreement whereby the Company issued 535,606 common shares to BJH
     as a result of the private placement transaction. BJH concurrently assigned
     such shares to its sole shareholder and one associate who are also officers
     of the Company.  In lieu of payment for the  exercise,  the Company  issued
     such shares to BJH in return for its  agreement  to  terminate  any further
     anti-dilution  rights  over  the  remaining  term  of  the  Stock  Issuance
     Agreement.  The exercise price for such shares of $107,121 will be expensed
     during the fourth quarter of 2003.

     In October 2003,  the Company  entered into an amended loan  agreement with
     its  primary  lender to extend the  Company's  term loan and line of credit
     agreements to April 30, 2004. The term loan  agreement,  as amended,  among
     other things,  provides for reduced monthly interest  payments at the prime
     rate plus 2%,  and  monthly  principal  payments  of  $16,667.  The line of
     agreement,  as amended,  provides for, among other things,  reduced monthly
     interest  payments equal to prime plus 2%, a principal  payment of $250,000
     on the effective date of the amendment,  and re-establishes the credit line
     at an amount equal to 75% of eligible receivables, as defined. In addition,
     the loan  agreements,  as  amended,  waive  compliance  with all  financial
     covenants through and including December 31, 2003.

                                       12
<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-K for the year ended  December 31, 2002
     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-K 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. ("PRIM") (formerly Medical Resources Management, Inc.),
     its wholly owned and only operating subsidiary. PRIM primarily conducts its
     business  through its wholly owned  subsidiary  Physiologic  Reps  ("PRI").
     Emergent Group Inc., PRIM and PRI are referred to collectively  hereinafter
     as the  "Company."  All  references  to PRIM include PRI unless the context
     indicates otherwise.  PRI is a provider of mobile surgical equipment,  on a
     fee for service basis to hospitals; surgical care centers, and other health
     care  providers.  PRI provides  mobile lasers and other surgical  equipment
     with  technical  support  required  to  ensure  the  equipment  is  working
     correctly.  PRI also provides a limited amount of non-surgical equipment on
     a rental basis to hospitals  and surgery  centers,  although PRI is winding
     down this area of business in order to focus on its core surgical equipment
     rental/services business.

     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.  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. 101, "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.

                                       13
<PAGE>
     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.

     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 net 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                      Nine Months Ended
                                                              September 30,                            September 30,
                                                         2003      %      2002 (1)     %        2003       %      2002 (1)     %
                                                    ------------  ----  ------------  ----  ------------  ----  ------------  ----

<S>                                                 <C>           <C>   <C>           <C>   <C>           <C>   <C>           <C>
Revenue                                             $ 2,529,005   100%  $ 2,150,222   100%  $ 7,015,689   100%  $ 6,850,567   100%
Cost of goods sold                                    1,630,501    64%    1,359,082    63%    4,465,948    64%    4,165,276    61%
                                                    ------------  ----  ------------  ----  ------------  ----  ------------  ----
Gross profit                                            898,504    36%      791,140    37%    2,549,741    36%    2,685,291    39%
Selling, general, and administrative expenses           784,939    31%      947,831    44%    2,408,861    34%    2,663,382    39%
                                                    ------------  ----  ------------  ----  ------------  ----  ------------  ----
Income (loss) from operations                           113,565     4%     (156,691)   -7%      140,880     2%       21,909     0%
Other income (expense)                                  (35,754)   -1%     (103,159)   -5%     (111,907)   -2%   (1,806,938)  -26%
                                                    ------------  ----  ------------  ----  ------------  ----  ------------  ----
Loss before provision for income taxes
    and extraordinary item                               77,811     3%     (259,850)  -12%       28,973     0%   (1,785,029)  -26%
Provision for income taxes                                   --     0%           --     0%           --     0%           --     0%
                                                    ------------  ----  ------------  ----  ------------  ----  ------------  ----
Net income (loss) before extraordinary item              77,811     3%     (259,850)  -12%       28,973     0%   (1,785,029)  -26%
                                                                  ====                ====                ====                ====
Extraordinary item
    Gain on forgiveness of debt, net of tax               1,358     0%      209,694    10%      106,176     0%    1,260,077    18%
                                                    ------------  ----  ------------  ----  ------------  ----  ------------  ----
Net income (loss)                                   $    79,169     3%  $   (50,156)   -2%  $   135,149   $ 0   $  (524,952)   -8%
                                                    ============  ====  ============  ====  ============  ====  ============  ====
</TABLE>
          (1) Certain  amounts for the period ended September 30, 2002 have been
          reclassified to conform to the current year presentation.

     Comparison  of the Three Months Ended  September  30, 2003 to September 30,
     2002

     We generated revenues of $2,529,005 in 2003 compared to $2,150,222 in 2002.
     The increase in revenues of $378,783 in 2003  compared to 2002 is primarily
     related to an increase in revenues from our advanced  surgical  procedures,
     offset by decreases in revenues from cosmetic services and medical rentals.
     Revenues from surgical and cosmetic services represented  approximately 86%
     and 12%, respectively, of total revenues for 2003 and 78% and 16% for 2002,
     respectively.   Revenues   from   medical   equipment   rentals   comprised
     approximately  1% and 5% of  revenues  for  2003  and  2002,  respectively.
     Medical rental  revenues,  in terms of absolute dollars and as a percentage
     of total  revenues,  are expected to continue to decrease in future periods
     as we wind  down this  area of our  business  in order to focus on our core
     mobile surgical equipment rental and service business.

     Cost of goods sold was  $1,630,501  or 64% of revenues in 2003  compared to
     $1,359,082 or 63% of revenues in 2002.  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  technical  services.  The  increase  in cost of goods  sold of
     $271,419 in 2003 is primarily  related to an increase in  disposable  costs
     due to the increase in revenues from our advanced surgical procedures.  The
     cost of  disposables  used for advanced  surgical  procedures are higher in
     terms of

                                       14
<PAGE>
     absolute dollars than the cost of disposables for base surgical procedures.
     Such increases in costs were  partially  offset by decreases in payroll and
     related expenses.

     Gross  margin  was  $898,504  in 2003 or 36% of net  revenues  compared  to
     $791,140   in  2002  or  37%  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 decline in gross  margin  during 2003 is
     generally  related to the higher  overall  cost of  disposables  and higher
     depreciation charges in 2003 compared to 2002.

     Selling,  general,  and  administrative  expenses  were  $784,939  in  2003
     compared  to  $947,831  in 2002.  Such costs  include  payroll  and related
     expenses,  insurance  and  rents.  The  overall  decrease  of  $162,892  is
     generally related to cost control procedures  implemented during early 2003
     and late 2002.

     Other income  (expense)  was  $(35,754) in 2003  compared to  $(103,159) in
     2002.  The net decrease in other  income  (expense) of $67,405 is primarily
     related to a decrease in net interest expense of $56,802.  Interest expense
     is primarily related to PRIM's notes and lease obligations. The decrease of
     $56,802 in net interest expense is principally related to a decrease in our
     outstanding  debt and lease  obligations as a result of debt  restructuring
     efforts  initiated  in early  2002,  as  discussed  elsewhere  in this Form
     10-QSB, and principal payments on debt and lease obligations in 2003.

     Gain on  forgiveness  of debt was $1,358 for 2003  compared  to $209,694 in
     2002. We began our debt  restructuring  efforts during the first quarter of
     2002  resulting  in gains on  forgiveness  of debt  for the  quarter  ended
     September  30, 2002.  Our major  restructuring  efforts were  substantially
     completed  as of December  31, 2002;  therefore,  gains from such  activity
     decreased accordingly in 2003.

     Net income was $79,169 in 2003  compared to a loss of $(50,156) in 2002. No
     provision  for  income  taxes is  provided  for in 2003 and 2002 due to the
     availability of net operating loss carryforwards.

     Comparison  of the Nine Months Ended  September  30, 2003 to September  30,
     2002

     We generated revenues of $7,015,689 in 2003 compared to $6,850,567 in 2002.
     The increase in revenues of $165,122 in 2003  compared to 2002 is primarily
     related to increases in revenues  from our  advanced  surgical  procedures.
     Revenues from surgical and cosmetic services represented  approximately 84%
     and 14%, respectively, of total revenues for 2003 and 73% and 18% for 2002,
     respectively.   Revenues   from   medical   equipment   rentals   comprised
     approximately  2% and 7% of  revenues  for  2003  and  2002,  respectively.
     Medical rental  revenues,  in terms of absolute dollars and as a percentage
     of total  revenues,  are expected to continue to decrease in future periods
     as we wind  down this  area of our  business  in order to focus on our core
     mobile surgical equipment rental and service business.

     Cost of goods sold was  $4,465,948  or 64% of revenues in 2003  compared to
     $4,165,276 or 61% of revenues in 2002.  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  technical  services.  The  increase  in cost of goods  sold of
     $300,672 in 2003 is primarily  related to an increase in  disposable  costs
     due to the increase in revenues from our advanced surgical  procedures,  an
     increase in depreciation  expense as a result of equipment purchases during
     the nine  months  ended  September  30, 2003 and  increases  in repairs and
     maintenance  costs  for  medical  equipment  and  vehicles.   The  cost  of
     disposables  used for advanced  surgical  procedures are higher in terms of
     absolute dollars than the cost of disposables for base surgical procedures.
     Such  increases  in costs were offset by  decreases  in payroll and related
     expenses.

     Gross  margin was  $2,549,741  in 2003 or 36% of net  revenues  compared to
     $2,685,291   in  2002  or  39%  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 decline in gross  margin  during 2003 is
     generally  related to the higher  overall  cost of  disposables  and higher
     depreciation  charges in 2003 compared to 2002. In addition,  gross margins
     on the  medical  equipment  rental  business  was  higher in 2002 given the
     equipment  impairment  write-downs  in 2001 and  2002,  resulting  in lower
     depreciation  charges  against such revenues in 2002.  Revenue from medical
     equipment   rentals  for  2003  and  2002  was   $138,642   and   $489,982,
     respectively.

     Selling,  general,  and  administrative  expenses  were  $2,408,861 in 2003
     compared to  $2,663,382  in 2002.  Such costs  include  payroll and related
     expenses,  insurance  and  rents.  The  overall  decrease  of  $254,521  is
     generally related to cost control procedures  implemented during early 2003
     and late 2002 and the fact that certain  general and  administrative  costs

                                       15
<PAGE>
     incurred in connection our restructuring  efforts in 2002 were not incurred
     in 2003.

     Other income  (expense) was $(111,907) in 2003 compared to  $(1,806,938) in
     2002.  The decrease in other income and (expense) of  $1,695,031  primarily
     relates to a realized  loss on  investments  of $1,732,573 in 2002 while no
     such loss was incurred in 2003. Emergent was essentially a merchant banking
     firm prior to its  acquisition of PRIM in July 2001.  Emergent  ceased such
     activities concurrent with its acquisition of PRIM in July 2001 in order to
     focus on PRIM's mobile surgical equipment rental and services business. The
     realized  loss in 2002  related  to the sale  and/or  write-off  of several
     investments  made by  Emergent  in  connection  with its  merchant  banking
     activities  in 2000.  In  addition,  other  income  (expense)  includes net
     interest expense of $144,484 in 2003 compared to $377,217 in 2002. Interest
     expense  primarily  relates  to  PRIM's  note and  lease  obligations.  The
     decrease in net interest  expense is  principally  related to a decrease in
     our   outstanding   debt  and  lease   obligations  as  a  result  of  debt
     restructuring  efforts  initiated in early 2002, as discussed  elsewhere in
     this Form 10-QSB,  and principal  payments on debt and lease obligations in
     2003.  Also  included in other  income  (expense)  are gains on disposal of
     property and equipment of $40,743 for 2003 compared to $209,139 in 2002. As
     discussed  herein,  we began  to wind  down our  medical  equipment  rental
     business in late 2001 and continued  these efforts through 2002 in order to
     focus resources on development of our mobile surgical  equipment rental and
     services business. In this regard we began to dispose of our medical rental
     equipment in 2002. As of September 30, 2003 this activity is  substantially
     complete and gains from the disposal of property  and  equipment  decreased
     accordingly.

     Gain on forgiveness of debt was $106,176 for 2003 compared to $1,260,077 in
     2002. We began our debt  restructuring  efforts during the first quarter of
     2002  resulting in gains on  forgiveness  of debt for the nine months ended
     June 30, 2002. Our major restructuring efforts were substantially completed
     as of December  31, 2002;  therefore,  gains from such  activity  decreased
     accordingly in 2003. We anticipate  that such gains,  if any, will continue
     to decrease in the future.

     Net income was $135,149 in 2003  compared to a loss of  $(524,952) in 2002.
     No  provision  for income taxes is provided for in 2003 and 2002 due to the
     availability of net operating loss carryforwards.

     Liquidity and Capital Resources

     The  accompanying  condensed  consolidated  financial  statements have been
     prepared on a  going-concern  basis that  contemplates  the  realization of
     assets  and  satisfaction  of  liabilities  in  the  normal  course  of our
     business.  During the year ended  December  31,  2002,  the  Company was in
     default  on  most of its  note  and  lease  obligations  due to  delinquent
     principal and interest payments.  In effort to avoid ceasing our operations
     or a possible  bankruptcy filing, and in an effort to improve our financial
     condition,  during  the  first  quarter  of 2002 we began  the  process  of
     renegotiating  substantially  all of our outstanding debt, lease, and trade
     obligations   with  our  key  creditors.   As  of  December  31,  2002  the
     restructuring   efforts  were  substantially   completed  whereby  we  have
     renegotiated   outstanding  note  and  lease  obligations  with  our  major
     creditors. The restructured debt and lease obligation agreements provide in
     some  cases  for  the  return  of  equipment  used  to  collateralize  such
     obligations,  if applicable,  and certain periodic and monthly installments
     for the balance of such obligations.  Generally, in the event of default by
     the Company we are  required to repay all amounts  previously  forgiven and
     all amounts then outstanding are accelerated and become immediately due and
     payable.  In  addition,  as of  December  31,  2002  we  have  renegotiated
     outstanding trade debt with most of our major vendors.  For the nine months
     September 30, 2003 we recorded a gain of $106,176 on  forgiveness of vendor
     debt. As of the filing date of this Quarterly Report on Form 10-QSB, we are
     in  compliance  with the  terms and  conditions  of our  renegotiated  debt
     agreements.

     In June 2003, the Company raised  $1,000,000 from the private  placement of
     its Subordinated  Promissory Notes (the "Notes") as more fully described in
     its Form 8-K dated June 27, 2003.  The Company  incurred  offering costs of
     $51,926 in connection with the private placement. Such Notes were generally
     sold in  increments  of  $20,000  (50 units)  each.  Certain  officers  and
     directors of the Company and members of law firms who have acted in a legal
     capacity to the Company purchased Notes totaling  $700,000.  Notes totaling
     $300,000 were purchased by other accredited  investors.  The Notes provided
     for interest at 6% per annum payable at the earlier of maturity, conversion
     or redemption. Pursuant to the terms and conditions of the Notes, the Notes
     were automatically converted into shares of the Company's common stock (100
     million  pre-split  shares or  2,500,000  post split  shares) on August 29,
     2003,  the effective date of a one for forty reverse split of the Company's
     common stock.  The Company issued an additional  25,000  post-split  common
     shares in lieu of payment  of cash for  accrued  interest  on such Notes of
     which 17,500 shares were issued to the  officers,  directors and members of
     law firms who have acted in a legal  capacity to the  Company  based on the
     shares they purchased in the private placement.

                                       16
<PAGE>
     In May  2003,  the  Company  entered  into  an  agreement  with  the  owner
     ("Seller")  of a small mobile  cosmetic  laser  company  located in the Los
     Angeles area to purchase (the  "Agreement")  its customer list as well as a
     covenant  not-to-compete.  The  purchase  price of $50,000 was paid in June
     2003 and was  allocated to the customer  list and covenant  not-to-compete.
     Such payment is being amortized on a  straight-line  basis over five years.
     The  Company  also agreed to make  additional  payments to the Seller for a
     period of  eighteen  months  based on future  revenues  resulting  from the
     acquired  customer list. The additional  payments were not material  during
     the period ended  September 30, 2003. Such amounts are being amortized on a
     straight-line basis over five years from the date of purchase.

     At September 30, 2003 we had a bank loan (the "Bank Term Loan") outstanding
     in the amount of $449,775.  The loan  agreement,  as amended,  provides for
     monthly payments of principal of $16,667 and reduced  interest  payments at
     the prime rate plus 4.00%.  As of December 31, 2002 and  September 30, 2003
     we were in default under certain  provisions of the original loan agreement
     (such  defaults  were  waived  by the  lender  as of  October  1,  2003  in
     connection  with the amended  credit  agreement  discussed  below) and as a
     result all  principal and interest is shown as current  liabilities  in the
     accompanying balance sheets. In April 2003, the lender agreed to extend the
     term of the loan to March  2004  under  the same  terms and  conditions  as
     described  herein.  We also have an  outstanding  bank line of credit  (the
     "Bank Line of Credit") in the amount of  $1,000,000  with the same  lender.
     This Bank Line of Credit  provides  for  interest at the prime  rate,  plus
     2.75%, with borrowings based upon eligible accounts  receivable as defined.
     The amount  outstanding under the Bank Line of Credit exceeded the eligible
     borrowing  base as of  December  31,  2002 and  September  30, 2003 and the
     Company was in default  under  certain  provisions  of the original  credit
     agreement (such defaults were waived by the lender as of October 1, 2003 in
     connection with the amended loan agreement  discussed  below).  As a result
     this  facility is not  available for use as of September 30, 2003. In April
     2003 the lender  agreed to amend the Bank Line of Credit to provide  for an
     extension of the due date to September  2003.  The amendment to the line of
     credit provided for a pay down of $108,700 upon execution of the amendment.
     The other terms and condition of this credit facility remain the same.

     Effective  October  1,  2003,  the Bank  Term  Loan and Bank Line of Credit
     agreements  were  amended to extend the due dates to April 30,  2004 and to
     amend other provisions of the original loan agreements as described herein.
     The Bank Term Loan agreement,  as amended, among other things, provides for
     monthly interest  payments at the prime rate plus 2%, and monthly principal
     payments  of  $16,667.  The Bank  Line of  Credit  agreement,  as  amended,
     provides for, among other things,  monthly interest payments equal to prime
     plus 2%, a  principal  payment of  $250,000  on the  effective  date of the
     amendment,  and re-establishes the credit line at an amount equal to 75% of
     eligible  receivables,  as defined.  In addition,  the loan agreements,  as
     amended,   waive  compliance  with  all  financial  covenants  through  and
     including December 31, 2003.

     The Bank Line of Credit  and Bank Term Loan  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 the Bank Line of Credit and Bank Term Loan
     as discussed  above,  as of September  30, 2003,  we were not in compliance
     with  certain  financial  covenants  of  such  agreements.   However,  such
     covenants  were waived by the lender as of October 1, 2003 as  discussed in
     the  preceding  paragraph.  The Bank Term Loan and Bank Line of Credit  are
     classified as current liabilities in the accompanying  balance sheets as of
     September 30, 2003 and December 31, 2002.

     The Company had cash and cash  equivalents  of  $974,732 at  September  30,
     2003.  Cash  provided by  operating  activities  for the nine months  ended
     September 30, 2003 was $369,808.  Cash from operations  includes net income
     of $135,149,  depreciation  and  amortization of $578,992 and a decrease in
     accounts  receivable  of  $1,216,816,  offset  by an  increase  in due from
     related party of $959,070,  a gain on forgiveness of debt of $106,176 and a
     net decrease in accounts  payable and accrued  expenses of  $398,936.  Cash
     used in investing  activities  was $439,987 due to the purchase of property
     and  equipment  of  $345,797,   purchase  of  customer  list  and  covenant
     not-to-compete for $50,000 and cash paid to limited liability  companies of
     $86,700,  offset by proceeds  from the sale of property  and  equipment  of
     $42,510.  Cash provided by financing activities was $87,669,  which related
     to the net proceeds of $948,074 from the private  placement of subordinated
     notes,  offset by payments of  $751,705 on debt and lease  obligations  and
     payments of $108,700 on our line of credit.

     The Company had cash and cash  equivalents  of  $1,091,727 at September 30,
     2002.  Cash  provided by  operating  activities  for the nine months  ended
     September 30, 2002 was $851,744.  Cash from operations  includes a non-cash
     realized loss on  investment  securities of  $1,732,573,  depreciation  and
     amortization  expense of $457,499 and a decrease in accounts  receivable of
     $1,564,979,  offset  by the net loss of  $(524,952),  gain on  disposal  of
     property  and  equipment  of $209,139  and gain on  forgiveness  of debt of
     $1,260,077. Cash provided by investing activities was

                                       17
<PAGE>
     $496,001 primarily from proceeds from the sale of property and equipment of
     $293,012  and  from the  sale of  investments  of  $267,427.  Cash  used in
     investing activities was $738,183, which principally related to payments on
     debt and lease  obligations  of $591,756 and the repayment a bank overdraft
     of $146,427.

     Our auditors have included an explanatory paragraph relating to our ability
     to continue as a going  concern as of and for the year ended  December  31,
     2002, in their Report of Independent  Certified Public Accountants which is
     included in our Annual Report on Form 10-K. For the year ended December 31,
     2002 we incurred a net loss of before  extraordinary  item of $(4,227,193).
     The net loss  for 2002  includes  an  impairment  charge  for  goodwill  of
     $2,100,955 and a realized loss on investment securities of $1,732,573.  Our
     accumulated  deficit  amounted to  $(13,046,480)  at December 31, 2002. Our
     auditors considered these factors, among others, to raise substantial doubt
     about our ability to continue as a going concern. Recovery of our assets in
     the normal course of business is dependent upon future events,  the outcome
     of which is indeterminable.

     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  expenditure  needs.  The
     primary source of funding for such  requirements  is anticipated to be cash
     generated from operations, borrowings under debt facilities, trade payables
     and the  sale of our  capital  stock.  In June  2003,  the  Company  raised
     $1,000,000 in gross proceeds from the sale of our  subordinated  promissory
     notes, the entire principal and accrued interest was converted into a total
     of 2,525,000  post split  shares of Common  Stock on August 29,  2003,  the
     effective date of our one-for-40 reverse stock split.  Additional financing
     may be required for our business operations in the future.  There can be no
     assurances  given  that  we  will be able  to  obtain  financing  on  terms
     satisfactory to us, if at all, or that we will have sufficient liquidity to
     fund our future  operations  or fulfill our  restructured  debt,  lease and
     vendor obligations. The financial statements do not include any adjustments
     to  reflect  the  possible  future  effects  on  the   recoverability   and
     classification  of assets or the amounts and  classification of liabilities
     that may result from the outcome of this uncertainty.

     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-14(c).   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.

                                       18
<PAGE>
                           PART II. OTHER INFORMATION

     Item 1. Legal Proceedings:

     Reference  is  made  to  Note  4 of the  Notes  to  Condensed  Consolidated
     Financial  Statements  for a description of certain legal  proceedings  and
     settlements that were made to two of these proceedings.  During the quarter
     ended  September 30, 2003,  there have been no other material  developments
     with respect to legal proceedings, except as disclosed in Note 4.


     Item 2. Changes in Securities.

     (a)  Not applicable.
     (b)  Not applicable.
     (c)  Recent Sales of Unregistered Securities

     During the nine months ended  September 30, 2003, the Company made sales or
     issuances of unregistered  securities  listed in the table below. It should
     be noted that in April  2003,  the  Company  filed a Form S-8  Registration
     Statement to register  the  issuance of shares of Common Stock  pursuant to
     its 2002 and 2001 Employee Benefit Plans. Further, the 61,001 shares issued
     in the first  quarter of 2003 to BJH  Management,  LLC which is reported in
     the table below was to correct a typographical  error in an agreement dated
     December 30, 2002 and was  previously  reported in Item 5 of the  Company's
     Form  10-K for the  fiscal  year  ended  December  31,  2002 as part of the
     overall issuance of 348,575 shares.
<TABLE>
<CAPTION>


                                                 Consideration Received
                                                 and Description of
                                                 Underwriting or Other                          If Option, Warrant
                                                 Discounts to Market                            or Convertible
                                                 Price or Convertible      Exemption from       Security, terms of
                                                 Security, Afforded to     Registration         exercise or
Date of Sale   Title of Security   Number Sold   Purchasers                Claimed              conversion
-------------- ------------------ -------------- ------------------------- -------------------- ----------------------
<C>           <C>                <C>            <C>                        <C>                  <C>
02/27/03       Common Stock             61,001   Services rendered; no     Section 4(2)         Not applicable.
                                                 commissions paid
-------------- ------------------ -------------- ------------------------- -------------------- ----------------------
02/03/03       Common Stock              6,250   Stock Option Plan; no     This stock option    10-year Options were
                                                 cash received; no         plan was             granted to
                                                 commissions paid          registered on a      employees, directors
                                                                           Form S-8             and consultants and
                                                                           Registration         at $.40 per share;
                                                                           Statement in April   Options generally
                                                                           2003.                vest in five equal
                                                                                                annual installments
                                                                                                commencing on the date
                                                                                                of grant expire ten
                                                                                                years from date of
                                                                                                grant.
-------------- ------------------ -------------- ------------------------- -------------------- ----------------------
06/27/03       Subordinated       $   1,000,000  $1,000,000 paid by        Section 4(2),        Converted on August
               Notes                             lenders; no commissions   Rule 506             29, 2003
                                                 paid (1)
-------------- ------------------ -------------- ------------------------- -------------------- ----------------------
08/29/03       Common Stock           2,525,000  Conversion of             Section 3(a)(9)
                                                 subordinated notes, no
                                                 commissions paid
-------------- ------------------ -------------- ------------------------- -------------------- ----------------------
</TABLE>
Item 3. Defaults Upon Senior Securities

        Not applicable.

                                       19
<PAGE>

Item 4. Submissions of Matters to a Vote of Security Holders: None

     During the quarter ended September 30, 2003, the  stockholders  took action
by  majority  consent  in lieu of a  meeting  on  August  5,  2003.  Of the then
67,357,815 pre-split shares,  35,622,872 pre-split shares voted in favor of each
proposal with no votes against.

     Emergent  filed an  Information  Statement with the Securities and Exchange
Commission with respect to the proposals listed below. The Information Statement
was  mailed  to  stockholders  of  record  on July  15,  2003  and  stockholders
consisting  of its  officers  and  directors  holding at least a majority of the
outstanding  shares of Common Stock of Emergent  submitted  to the  Secretary of
Emergent  their  consent to the  proposals  listed below on August 5, 2003.  The
reverse  stock  split  referred  to below  became  effective  on the  opening of
business  on August 29,  2003.  The  following  are the  proposals  approved  by
stockholders by majority consent:

     (1) The re-election of Bruce J. Haber, Mark Waldron, Howard Waltman, Daniel
Yun and Matthew K. Fong for a period of one year and until their  successors are
elected and shall qualify;

     (2) The  ratification of the Board's  selection of Singer Lewak Greenbaum &
Goldstein LLP as the Company's independent auditors for the year ending December
31, 2003;

     (3) An amendment to the Company's  Articles of Incorporation and the filing
of said  amendment  with  the  Secretary  of State of the  State of  Nevada  (a)
changing  the par value of the  Company's  Common  Stock from $.001 par value to
$.04 par value;  and (b)  reducing  the number of  outstanding  shares of Common
Stock through a one-for-40 reverse stock split, effective August 29, 2003, to be
accomplished  by all  stockholders  of record at the close of business on August
28, 2003, being requested to exchange every 40 shares of Common Stock, $.001 par
value, for one new share of Common Stock, $.04 par value;

     (4)  The  ratification  of  the  Company's  2002  Employee  and  Consulting
Compensation Plan covering 325,000 post-split shares of Common Stock; and

     (5) The  ratification  of the  Company's  2001 Stock  Option Plan  covering
14,625 post-split shares of Common Stock.


Item 5. Other Information:

        None.


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

        (a)  Exhibits

Number   Exhibit Description
------   -------------------------------------
  3.1    Amendment to Articles of Incorporation.*
 11.1    Statement re: computation of earnings per share.
         See consolidated statement of operations and notes thereto.
 99.1    Form of Subordinated Note is hereby incorporated by reference to the
         Company's Form 8-K dated June 27, 2003.
 99.2    Certification by the Chief Executive Officer pursuant to 18 U.S.C.
         Section 1350, as adopted pursuant to Section 906 of the
         Sarbanes-Oxley Act of 2002.*
 99.3    Certification by the Chief Financial Officer pursuant to 18 U.S.C.
         Section 1350, as adopted pursuant to Section 906 of the
         Sarbanes-Oxley Act of 2002.*

* Filed herewith.

     (b) Reports on Form 8-K.

     o    Current report on Form 8-K dated August 5, 2003, in connection with an
          Information  Statement  mailed to  stockholders  of record on July 15,
          2003.

                                       20
<PAGE>

     o    Current  report on Form dated August 28, 2003, in connection  with the
          Company reverse common stock split, effective August 29, 2003.

          No other reports on Form 8-K were filed.


                                   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:    November 13, 2003                               By:  /s/ Bruce J. Haber
                                                              ------------------
                                                              Bruce J. Haber,
                                                              Chairman and Chief
                                                              Executive Officer

Date:    November 13, 2003                               By:/s/ William M. McKay
                                                            --------------------
                                                               William M. McKay,
                                                         Chief Financial Officer