<PAGE>   1

==============================================================================


                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549




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


                                  FORM 10-Q


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



           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934



FOR THE QUARTERLY PERIOD ENDED                 COMMISSION FILE NUMBER:
     MARCH 31, 2001                                    0-21475




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






            NEVADA                                       93-1215401
(State of other jurisdiction of                       (I.R.S. employer
incorporation or organization)                        identification no.)




                               375 PARK AVENUE
                           NEW YORK, NEW YORK 10152
                   (Address of principal executive offices)




Registrant's telephone number, including area code:         (212)  813-9700



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


        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
                                    ----   ----



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


        Number of shares of Common Stock outstanding as of May 10, 2001:
44,173,280 shares




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<PAGE>   2


                             EMERGENT GROUP INC.

                                  FORM 10-Q

                              TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----

<S>                                                                                     <C>
PART I.  FINANCIAL INFORMATION

        Item 1. Financial Statements.

                Consolidated Balance Sheets as of March 31, 2001 (unaudited) and
                December 31, 2001 (audited)..........................................        1

                Consolidated Statements of Operations for the Three Months Ended
                March 31, 2001 (unaudited) and for the Period From Inception
                (March 8, 2000) to March 31, 2000 (unaudited)........................        2

                Consolidated Statements of Cash Flows for the Three Months Ended
                March 31, 2001 (unaudited) and for the Period From Inception
                (March 8, 2000) to March 31, 2000 (unaudited)........................        3

                Notes to Consolidated Financial Statements...........................        4

        Item 2. Management's Discussion and Analysis of Financial Condition and Results
                of Operations........................................................        9

        Item 3. Quantitative and Qualitative Disclosure About Market Risk............       11


PART II.  OTHER INFORMATION

        Item 6. Exhibits and Reports on Form 8-K.....................................       12

Signatures...........................................................................       13
</TABLE>



<PAGE>   3


PART I.  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

EMERGENT GROUP INC.

CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2001 (UNAUDITED) AND DECEMBER 31, 2000 (AUDITED)

<TABLE>
<CAPTION>
                                                                           MARCH 31,      DECEMBER 31,
ASSETS:                                                                      2001            2000
                                                                             ----            ----
<S>                                                                    <C>              <C>
   Cash and cash equivalents                                               $309,755         $750,840
   Interest income receivable                                                44,894           24,969
   Due from related party                                                   441,552          467,519
   Investments                                                            2,708,334        3,217,730
   Other assets, net                                                        723,706          723,689
                                                                            -------          -------
              Total assets                                               $4,228,241       $5,184,747
                                                                          ---------        ---------

LIABILITIES:
   Accrued expenses and other liabilities                                  $228,360         $121,837
                                                                            -------          -------
              Total liabilities                                             228,360          121,837
                                                                            -------          -------

STOCKHOLDERS' EQUITY (DEFICIT):
   Preferred Stock, $.001 par value, 10,000,000 authorized, none
      issued or outstanding                                                       -                -
   Common Stock, $.001 par value, 100,000,000 authorized, 44,173,280
      issued and outstanding                                                 44,173           44,173
   Additional paid-in capital                                             8,628,952        8,628,952
   Accumulated deficit                                                  (4,673,244)      (3,610,215)
                                                                        -----------      -----------
              Total stockholders' equity (deficit)                        3,999,881        5,062,910
                                                                          ---------        ---------
              Total liabilities and stockholders' equity (deficit)       $4,228,241       $5,184,747
                                                                         ==========       ==========


</TABLE>


The accompanying notes are an integral part of these balance sheets.

                                      1
<PAGE>   4


EMERGENT GROUP INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND FOR
THE PERIOD FROM INCEPTION (MARCH 8, 2000) TO MARCH 31, 2000


<TABLE>
<CAPTION>

                                                                     Three Months      Inception
                                                                        Ended        (March 8, 2000)-
                                                                    March 31, 2001    March 31, 2000
                                                                     (unaudited)       (unaudited)
                                                                   ----------------- ----------------
<S>                                                                <C>                   <C>
REVENUE:                                                                 $ -               $ -
EXPENSES:
     Realized loss on investments                                           687,500         -
     Professional fees                                                      150,615            3,119
     Rent expense                                                            49,299           16,306
     Consulting fees                                                          4,758            2,255
     General and administrative expenses                                    111,920           15,371
     Travel                                                                  58,759            7,864
     Depreciation and amortization                                           36,502              286
                                                                          ---------          -------

            Total expenses                                              (1,099,353)         (45,201)
                                                                        -----------         --------

     Unrealized appreciation on trading investments                           3,105        1,343,554
     Other income                                                            33,219            --
                                                                       ------------       ----------

             Net income (loss)                                        $ (1,063,029)       $1,298,353
                                                                      =============       ==========

EARNINGS PER SHARE DATA:
     Basic and diluted earnings per share                                   $(0.02)          $  0.03
                                                                            =======          =======
     Weighted average common shares outstanding                          44,173,280       39,755,022
                                                                         ==========       ==========

</TABLE>

The accompanying notes are an integral part of these statements.


                                      2

<PAGE>   5


EMERGENT GROUP INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND
FOR THE PERIOD FROM INCEPTION (MARCH 8, 2000) TO MARCH 31, 2000


<TABLE>
<CAPTION>


                                                                     Three Months     Inception
                                                                        Ended       (March 8, 2000)-
                                                                    March 31, 2001  March 31, 2000
                                                                     (unaudited)     (unaudited)
                                                                     -----------    ---------------

<S>                                                                 <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net (loss) income                                                  $(1,063,029)      $1,298,353
   Adjustments to reconcile net increase in net assets resulting
      from operations to net cash used in operating activities:
         Unrealized appreciation, net on investments                       (3,105)     (1,343,554)
         Depreciation and amortization                                      36,502             286
         Realized loss of investments                                      687,500        -
         Increase in operating assets and liabilities:
           Interest income receivable                                     (19,925)        -
           Due from related party                                           25,967        -
           Other assets                                                   (36,518)       (223,513)
           Accrued expenses and other liabilities                          106,523        -
           Due to related party                                            -             2,518,428
                                                                       -----------       ---------
              Net cash (used in) provided by operating activities        (266,085)       2,250,000
                                                                       -----------       ---------
   Investing activities:
           Purchases of securities                                       (175,000)     (2,250,000)
                                                                       -----------     -----------
              Net cash used in investing activities                      (175,000)     (2,250,000)
                                                                       -----------     -----------

              Net decrease in cash and cash equivalents                  (441,085)       -
                                                                       -----------     ------------

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             750,840       -
                                                                       -----------     ------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                $  309,755     $  -
                                                                       ===========    =============

</TABLE>



The accompanying notes are an integral part of these statements.



                                      3


<PAGE>   6




EMERGENT GROUP INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2001 (UNAUDITED)

The accompanying unaudited consolidated financial statements of the Company
have been prepared pursuant to the rules of the Securities and Exchange
Commission (the "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 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-10K. In the opinion of management, the accompanying unaudited
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 period from inception (March 8,
2000) to March 31, 2000 and three months ended March 31 2001, are not
necessarily indicative of the results to be expected for any other interim
period or any future fiscal year.


1. BACKGROUND AND FORMATION

   Emergent Ventures, LLC (the "Company") was formed and commenced operations
   in the State of Delaware on March 8, 2000. The company was formed to invest
   primarily in global private equity investment opportunities in information
   technology, health care and medical technology companies.

   Emergent Ventures, LLC's equity capitalization consisted of a contribution
   of $1,173,125 in securities by Emergent Management Company, LLC (the
   "Manager"), a Delaware limited liability company, for 58% of Emergent
   Ventures, LLC's equity interest, and a contribution of $7,500,000 in cash
   by other members in return for the remaining 42% of Emergent Ventures,
   LLC's equity interest.

   On August 31, 2000, the Company consummated the transactions contemplated
   by the Equity Transfer Transaction (the "Transfer"), all pursuant to an
   Equity Transfer and Reorganization Agreement dated August 10, 2000 (the
   "Agreement"), by and among Dynamic International, Ltd. ("Dynamic"), certain
   of its shareholders, Emergent Management Company, LLC, and several holders
   of membership interests in the Company.

   Pursuant to the Agreement, the Company contributed substantially all of its
   assets to Dynamic in exchange for the issuance of approximately 39,000,000
   shares of Dynamic common stock to the members of the Company. Dynamic
   subsequently changed its name Emergent Group, Inc.

   On August 31, 2000, pursuant to and in accordance with the Agreement, prior
   to the consummation of the Transfer, Dynamic transferred all of the assets
   and liabilities (other than outstanding bank debt in the amount of
   $250,000) to a wholly-owned corporation of Dynamic named Dynamic,
   International, Inc. Dynamic International, Inc., acquired the transferred
   assets, assumed the remaining liabilities and indemnified Dynamic against
   any liabilities relating to or arising out of the transferred assets and
   the assumed liabilities.

   For financial accounting purposes, the acquisition was accounted for as a
   recapitalization by the Company (as the accounting acquiror) with Dynamic
   (as the accounting acquiree). After the Transfer, the former members of the
   Company became the beneficial owners of approximately 39,000,000 shares of
   Dynamic's common stock, representing approximately 90% interest in Dynamic.
   Each of the Directors of Dynamic immediately resigned prior to the
   consummation of the Transfer. The principal interest holders of the Manager
   of the Company were elected as directors of Dynamic and now



                                      4
<PAGE>   7
EMERGENT GROUP INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2001 (UNAUDITED)

   comprise a majority of Dynamic's directors, and serve as Dynamic's
   executive officers. The Company recorded goodwill as a result of the
   Transfer amounting to $250,000, which will be amortized over three years.

   Emergent recently announced that it intends to transition itself into a
   medical technology operating company that has as one of its primary
   objectives launching an innovative national distribution platform leveraging
   physician and healthcare facilty access with medical technology acquisitions
   and strategic relationships. Emergent believes that its proposed acquisition
   of MRM, if completed, will provide a platform to faciltate its efforts to
   acquire and/or enter into strategic relationships with other companies in
   the medical equipment and technology distribution industry. Emergent hopes
   to leverage its merchant banking resources to identify and acquire and/or
   enter into strategic relationships with medical technology companies with
   large market opportunities and potential whose operations currently are
   restricted by the lack of effective channels of distribution.

   Although it is the current intention of Emergent to focus its activities in
   the medical equipment and technology distribution industry, Emnergent also
   intends to continue to explore merchant banking opportunities in other
   industries.

2. SIGNIFICANT ACCOUNTING POLICIES

   The accompanying financial statements have been prepared in accordance with
   accounting principles generally accepted in the United States. Significant
   accounting policies are as follows:

     Principles of Consolidation

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

     Cash and Cash Equivalents

     The Company considers all highly liquid investments with maturities of
     three months or less to be cash equivalents.

     Government Regulations and Legal Uncertainties

     U.S. companies that have more than 100 shareholders or are publicly
     traded in the U.S. and are, or hold themselves out to be engaged
     primarily in the business of investing, reinvesting or trading of
     securities are regulated under the Investment Company Act of 1940.
     Although we believe that we are actively engaged in business and are not
     an investment company, we will also rely on the Securities and Exchange
     ("SEC") rule that allows us to avoid investment company regulation so
     long as at least 55% of our total assets are represented by, and at least
     55% of our income is derived from, majority-owned subsidiaries, primarily
     controlled companies and other assets that meet the requirements of that
     rule. To maintain compliance with this rule, we may be unable to sell
     assets, which we would otherwise want to sell and may need to sell
     assets, which we would otherwise want to retain. In addition, we may have
     to acquire additional income or loss generating assets that we might not
     otherwise have acquired and may need to forego opportunities to acquire
     interests in attractive companies that might be important to our business
     strategy. In addition, because our clients may not be majority-owned
     subsidiaries or primarily controlled companies either when we acquire
     interests in them or at later dates, changes in the value of our
     interests in our clients and the income/loss and revenue attributable to
     our clients could require us to register as an investment company.
     Investment Company Act regulations are inconsistent with our strategy of
     actively managing, operating and promoting collaboration among our
     network of clients, and it is not feasible for us to operate our business
     as a registered investment company. We believe that because of the
     planned structure of our interests in our clients and our business
     strategy, we will not be regulated under the Investment Company Act.
     However, we cannot assure you that the structure of our client interests
     and our business strategy will preclude regulation under the Investment
     Company Act, and we may need to take specific actions, which would not
     otherwise be in our best interests to avoid such regulation.

     If we fall under the definition of an investment company, and are unable
     to rely on an SEC rule that would allow us to avoid investment company
     regulation so long as at least 55% of our total assets are represented
     by, and at least 55% of our income is derived from, assets that meet the
     requirements of that rule, we can rely on another SEC rule that would
     exempt us from the requirement of registering as an investment company
     through August 2001.

     Thereafter, we must either register under the Investment Company Act or
     seek an administrative exemption from regulation under the Investment
     Company Act. If, despite our efforts, we were required to register as an
     investment company, we would have to comply with substantive requirements
     under the Investment Company Act applicable to registered investment
     companies.




                                      5
<PAGE>   8
EMERGENT GROUP INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2001 (UNAUDITED)

     These requirements include: limitations on our ability to borrow;
     limitations on our capital structure; restrictions on acquisitions of
     interests in associated companies; prohibitions on transactions with
     affiliates; restrictions on specific investments; and compliance with
     reporting, recordkeeping, voting, proxy disclosure and other rules and
     regulations.

     These rules and regulations would significantly change our operations and
     prevent us from executing our business model.

     Interest and Dividend Income

     Transactions are accounted for on the trade date in the case of public
     market transactions or on the date of purchase in other cases. Interest
     income is recorded on the accrual basis; dividend income paid in cash is
     recorded on the date on which the payment is fixed, while dividend income
     paid in marketable securities is valued on the date such securities are
     sold.

     Related Party Transactions

     Emergent Group Inc. is owned 58% by Emergent Management Company LLC, an
     entity controlled by the principal stockholders of the Company. In
     addition, another entity owned by the principal stockholders of the
     Company paid the majority of the operating expenses for the period from
     inception (March 8,2000) to December 31, 2000 on the Company's behalf.
     The Company borrows funds from this related party when needed. This
     related party owes the Company $441,552 as of March 31, 2001.

     Marketable Securities

     Trading investments are recorded in the accompanying financial statements
     on the following basis: any security which is traded on an
     internationally or nationally recognized securities exchange or the
     Nasdaq Stock Market National Market System ("Nasdaq") shall be valued at
     the last sale price on the date of valuation as quoted on such exchange
     or market, as the case may be, which represents the principal market on
     which such security is traded. If there is no sale of such security on
     such day, such security shall be valued at the mean of the closing bid
     and asked prices on such day. If no bid or asked prices are quoted on
     such day, such security shall be valued by such method as the Manager of
     the Company shall determine in good faith to reflect its fair value. Any
     security which is traded principally in the over-the- counter market (but
     excluding securities admitted to trading on Nasdaq) shall be valued at
     the latest bid price available on the date of valuation.

     Portfolio Valuation, Nonmarketable Securities

     Securities or investments and assets of the Company other than Trading
     Investments as well as investments of the Company where no market value
     can be determined either (i) because there is no public market or (ii)the
     market is not deemed to be an indicator of value because of limited float
     or trading activity shall be valued at cost, unless there is an
     indication of a permanent impairment in value.

     Realized and Unrealized Gains and Losses on Investments

     Management's policy is to include unrealized holding gains and losses on
     trading securities and to report them as a net amount. Realized gains and
     losses on the sale of trading securities are determined using the
     specific identification method. The Company did not sell or trade any of
     its securities during the period ended March 31,2001.

     Financial and Business Risks Related to Non-Marketable Securities

     A significant portion of the Company's assets are invested in
     non-marketable securities which may involve significant business and
     financial risks and may result in substantial losses. Due to of the



                                      6

<PAGE>   9
EMERGENT GROUP INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2001 (UNAUDITED)


     absence of any liquid trading market for these investments, the Company
     may take longer to liquidate these positions than would be the case for
     marketable securities. These securities may be resold in privately
     negotiated or public sale transactions and the prices realized on such
     sales could be less than those originally paid by the Company. Further,
     companies whose securities are not marketable may not be subject to the
     disclosure and other investor protection requirements applicable to
     companies whose securities are publicly traded.

     Concentration of Credit Risk

     Financial instruments, which potentially subject the Company to a
     concentration of credit risk, consist of cash and cash equivalents. Cash
     and cash equivalents consist of deposits placed with various high credit
     quality financial institutions.

     Comprehensive Income

     The Company observes the provisions of SFAS No.130,"Reporting
     Comprehensive Income", which requires companies to report all changes in
     equity during a period, except those resulting from investments by owners
     and distributions to owners, for the period in which they are recognized.
     Comprehensive income is the total of net income and all other non-owner
     changes in equity (or other comprehensive income). The Company's
     operations for the periods presented did not give rise to items
     includable in comprehensive income which were not already in its
     operations for the periods presented.

     Earnings Per Share

     The Company computes net 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) 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 consolidated statements of operations. The Company has
     presented the weighted average number of common shares outstanding as
     though the recapitalization of the Company, occurring upon the transfer,
     had occurred as of the Company's inception date, (March 8, 2000), and the
     shares had been issued and outstanding.

     Derivative Instruments

     In June 1998, the Financial Accounting Standards Board issued SFAS
     No.133, "Accounting for Derivative Instruments and Hedging Activities".
     This statement establishes accounting and reporting standards for
     derivative instruments, including certain derivative instruments embedded
     in other contracts, and for hedging activities. SFAS No.133, as amended
     by SFAS No.137 and No.138, is effective for all fiscal years beginning
     after June 15, 2000 and will not require retroactive restatement of prior
     period financial statements. This statement requires the recognition of
     all derivative instruments as either assets or liabilities in the balance
     sheet measured at fair value. Derivative instruments will be recognized
     as gains or losses in the period of change. If certain conditions are met
     where the derivative instrument has been designated as a fair value
     hedge, the hedge items may also be marked to market through earnings,
     thus creating an offset. If the derivative is designed and qualifies as a
     cash flow hedge, the changes in fair value of the derivative instrument
     may be recorded in comprehensive income. The adoption of SFAS No. 133 did
     not have a material effect on the Company's financial statements.

     Fair Value of Financial Instruments

     The fair value of cash and cash equivalents, investments, due from
     related party, interest income and other receivables and accounts payable
     and accrued expenses approximate book value.

     Use of Estimates


                                      7
<PAGE>   10
EMERGENT GROUP INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2001 (UNAUDITED)


     The preparation of the financial statements in accordance with accounting
     principles generally accepted in the United States 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
     and expenses during the reporting period. Actual results could differ
     from those estimates.

     Reclassifications

     Certain prior period amounts have been reclassified to conform with the
     current period's presentation.

3. ACQUISITION

   On January 23, 2001, the Company, Medical Resources Management, Inc. ("MRM")
   and MRM Acquisition Inc., the wholly-owned subsidiary of the Company,
   entered into an Agreement and Plan of Reorganization and Merger, (the
   "Merger") providing for the merger of MRM with and into MRM Acquisition,
   Inc. Immediately following the merger, MRM Acquisition Inc. will cease to
   exist and MRM will be the surviving corporation.

   Under the terms of the agreement, holders of MRM common stock will receive
   no less than 0.37 or more than 0.60 shares of the Company's common stock in
   exchange for each share of MRM common stock. The agreement provides for a
   maximum issuance of 9.1 million shares of Emergent's common stock. The
   amount of the purchase price will be determined using the market value of
   the Company's stock when the necessary approvals to consummate the
   transaction are obtained. The transaction is expected to be accounted for
   under the purchase method of accounting.

   MRM makes mobile laser/surgical services available to its customers by
   providing this equipment on a per procedure basis to hospitals, out patient
   surgery centers, and physicians offices. MRM provides these mobile lasers
   with technical support to ensure the lasers are working correctly for the
   physicians. MRM also provides other medical equipment on a rental basis to
   hospitals and surgery centers.

                                      8
<PAGE>   11


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

This Quarterly Report on Form 10-Q 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 Quarterly Report
on Form 10-Q. 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 Ventures, LLC (the "Company") was formed and commenced
operations in the State of Delaware on March 8, 2000. The Company was formed
to invest primarily in global private equity investment opportunities in
information technology, health care and medical technology companies.

        The Company's equity capitalization consisted of a contribution of
$1,173,125 in securities by Emergent Management Company, LLC (the "Manager"),
a Delaware limited liability company, for 58% of the Company's equity
interest, and a contribution of $7,500,000 in cash by other members in return
for the remaining 42% of the Company's equity interest. On August 31, 2000,
the Company consummated the transactions (the "Transfer") contemplated by an
Equity Transfer and Reorganization Agreement dated August 10, 2000 (the
"Transfer Agreement"), by and among Dynamic International, Ltd. ("Dynamic"),
certain of its stockholders, the Manager and the several holders of membership
interests in the Company.

        Pursuant to the Transfer Agreement, the Company contributed
substantially all of its assets to Dynamic in exchange for the issuance of
approximately 39,000,000 shares of Dynamic's common stock to the members of
the Company. Dynamic subsequently changed its name to Emergent Group Inc.

        On August 31, 2000, pursuant to and in accordance with the Transfer
Agreement, prior to the consummation of the Transfer, Dynamic transferred all
of the assets and liabilities (other than outstanding bank debt in the amount
of $250,000) to a wholly owned corporation of Dynamic named Dynamic
International Inc. Dynamic International Inc. acquired the transferred assets,
assumed the remaining liabilities and indemnified Dynamic against any
liabilities relating to or arising out of the transferred assets and the
assumed liabilities.

        For financial accounting purposes, the acquisition was accounted for
as a recapitalization by the Company (as the accounting acquiror) with Dynamic
(as the accounting acquiree). After the Transfer, the former members of the
Company became the beneficial owners of approximately 39,000,000 shares of
Dynamic's common stock, representing approximately a 90% interest in Dynamic.
Each of the directors of Dynamic immediately resigned prior to the
consummation of the Transfer. The principal interest holders of the Manager of
the Company were elected as directors of Emergent and now comprise a majority
of Emergent's directors, and serve as Emergent's executive officers.

        Emergent recently announced that it intends to transition itself into a
medical technology operating company that has as one of its primary objectives
launching an innovative national distribution platform leveraging physician and
healthcare facilty access with medical technology acquisitions and strategic
relationships. Emergent believes that its proposed acquisition of MRM, if
completed, will provide a platform to faciltate its efforts to acquire and/or
enter into strategic relationships with other companies in the medical
equipment and technology distribution industry. Emergent hopes to leverage its
merchant banking resources to identify and acquire and/or enter into strategic
relationships with medical technology companies with large market opportunities
and potential whose operations currently are restricted by the lack of
effective channels of distribution.

        Although it is the current intention of Emergent to focus its
activities in the medical equipment and technology distribution industry,
Emergent also intends to continue to explore merchant banking opportunities in
other industries.


                                      9
<PAGE>   12

RESULTS OF OPERATIONS

        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 below may not be indicative of future
performance as the prior period consists of approximately one month of
operations versus three months of operations in the current period.

COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 2001 AND THE PERIOD FROM
INCEPTION (MARCH 8, 2000) TO MARCH 31, 2000

        For the three months ended March 31, 2001, Emergent incurred a loss of
($1,063,029), or ($0.02) basic earnings per share, versus net income of
$1,298,353, or ($0.03) basic earnings per share for the period from inception
(March 8, 2000) to March 31, 2000. The change is partially the result of a
realized loss of $687,500, due to a permanent impairment on an investment in
the current period, as opposed to unrealized appreciation of trading
securities of $1,343,554 in the period from inception (March 8, 2000) to March
31, 2000. In addition, the Company incurred an increase of professional fees
of $147,496 due to the additional legal and professional costs relating to the
Company's public filing requirements and an increase in general and
administrative expenses of $96,549 as a result of the Company increasing its
internal support staff and executing its business plan.


LIQUIDITY AND CAPITAL RESOURCES

        The Company had cash and cash equivalents of $309,755 at March 31,
2001. Cash used in operating activities for the three months ended March 31,
2001 was ($266,085). This was primarily the result of the net operating loss
from operations of ($1,063,029) offset by an increase in accrued expenses and
other liabilities of $106,523, after considering the non-cash realized loss of
$687,500 on the permanent impairment of an investment. This compares to cash
provided by operating activities in the period from inception (March 8, 2000)
to March 31, 2000 of $2,250,000, which was primarily the result of advances
from related parties.

Cash used in investing activities for the three months ended March 31, 2001
was ($175,000) as a result of the advances made to a potential investment as
compared to cash used in investing activities in the period from inception of
($2,250,000), which consisted of a series of investments.

Since inception, Emergent has utilized its capital contributions and borrowings
from related parties to support its operations. Emergent's management believes
that on a short-term and long-term basis Emergent will have sufficient funds for
working capital and capital expenditures from its existing working capital,
additional capital contributions, borrowings from related parties and increased
cash flow from operations. Emergent's management believes that Emergent's
current cash and cash equivalents will be sufficient to meet Emergent's working
capital and capital expenditure requirements for at least the next 12 months.


RECENT ACCOUNTING PRONOUNCEMENTS



                                      10
<PAGE>   13

In June 1998, the Financial Accounting Standards Board issued SFAS No.133,
"Accounting for Derivative Instruments and Hedging Activities". This statement
establishes accounting and reporting standards for derivative instruments,
including certain derivative instruments embedded in other contracts, and for
hedging activities. SFAS No.133, as amended by SFAS No.137 and No.138, is
effective for all fiscal years beginning after June 15, 2000 and will not
require retroactive restatement of prior period financial statements. This
statement requires the recognition of all derivative instruments as either
assets or liabilities in the balance sheet measured at fair value. Derivative
instruments will be recognized as gains or losses in the period of change. If
certain conditions are met where the derivative instrument has been designated
as a fair value hedge, the hedge items may also be marked to market through
earnings, thus creating an offset. If the derivative is designed and qualifies
as a cash flow hedge, the changes in fair value of the derivative instrument
may be recorded in comprehensive income. The adoption of SFAS No. 133 in 2001
did not have a material effect on the Company's financial statements.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

        The Company is not exposed to financial market risks from changes in
foreign currency exchange rates or changes in interest rates. The Company does
not use derivative financial instruments.


                                      11

<PAGE>   14



PART II.  OTHER INFORMATION

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

(a) Exhibits.

        None.

(b) Reports on Form 8-K. The Company filed the following reports on Form 8-K
during the first quarter of the year ending December 31, 2001.

<TABLE>
<CAPTION>
                      Date Report
Date of Report        Filed with SEC        Items Reported
--------------        --------------        --------------
<S>                 <C>                    <C>
January 25, 2001      January 26, 2001      Item 4 - Changes in Registrant's Certifying
                                                     Accountant
                                            Item 7 - Financial Statements, Pro Forma
                                                     Financial Information and Exhibits
                                            Item 8.- Change in Fiscal Year


January 29, 2001      January 31, 2001      Item 5 - Other Events
                                            Item 7 - Financial Statements, Pro Forma
                                                     Financial Information and Exhibits

August 31, 2000       February 20, 2001     Item 7 - Financial Statements, Pro Forma
(Amendment No. 1)                                    Financial Information and Exhibits *

March 21, 2001        March 21, 2001        Item 5 - Other Events
</TABLE>

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

* Included historical financial statements for Emergent Ventures, LLC. Also
included pro forma combining financial statements of Emergent Ventures, LLC
and Dynamic International, Ltd. (now known as Emergent Group Inc.).


                                      12




<PAGE>   15


                                  SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                       EMERGENT GROUP INC.



Date:   May 15, 2001                   By: /s/ Daniel Yun
                                          ------------------------
                                               Daniel Yun
                                               Chairman



Date:   May 15, 2001                   By: /s/ Mark Waldron
                                          ------------------------
                                               Mark Waldron
                                               President
                                               (principal financial officer)


                                      13