SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                       ___________________________________

                                   FORM 10-QSB
                       ___________________________________

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

                  For the Quarterly Period Ended March 31, 2004

                         Commission File Number: 0-21475


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


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



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


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


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

                       ___________________________________

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant  was required to file such  reports) and (2) has been subject to such
filing requirements for the past 90 days.
                                Yes [ X ] No [ ]

As of May 6, 2004,  the  registrant  had a total of  4,744,551  shares of Common
Stock outstanding.

<PAGE>

                               EMERGENT GROUP INC.

                          FORM 10-QSB Quarterly Report

                                Table of Contents

<TABLE>
<CAPTION>
                                                                                                         Page

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

              Condensed Consolidated Balance Sheet as of March 31, 2004                                    3

              Condensed Consolidated Statements of Operations for the Three Months
                 Ended March 31, 2004 and 2003                                                             4

              Condensed Consolidated Statements of Cash Flows for the
                 Three Months Ended March 31, 2004 and 2003                                                5

              Notes to the Condensed Consolidated Financial Statements                                     6

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

   Item 3.    Controls and Procedures                                                                     13

PART II.  OTHER INFORMATION

   Item 1.    Legal Proceedings                                                                           14

   Item 2.    Changes in Securities                                                                       14

   Item 3.    Defaults Upon Senior Securities                                                             14

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

   Item 5.    Other Information                                                                           14

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


Signatures                                                                                                16

                                       2
</TABLE>
<PAGE>

                          PART I. FINANCIAL INFORMATION


Item 1.  Financial Statements


                      Emergent Group Inc. and Subsidiaries
                      Condensed Consolidated Balance Sheets

                                                                     March 31,
                                                                       2004
                                                                   -------------
                                ASSETS

Current assets
     Cash .......................................................  $    621,042
     Accounts receivable, net ...................................     1,246,390
     Inventory, net .............................................       316,547
     Prepaid expenses ...........................................        81,094

                                                                   -------------
           Total current assets .................................     2,265,073

Property and equipment, net .....................................     2,073,359
Goodwill, net ...................................................       779,127
Deposits and other assets, net ..................................       140,357

                                                                   -------------
Total assets ....................................................  $  5,257,916
                                                                   =============

                 LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
     Line of credit .............................................  $    750,000
     Current portion of capital lease obligations ...............       291,642
     Current portion of notes payable ...........................       549,191
     Accounts payable ...........................................       607,082
     Accrued expenses ...........................................       654,158
                                                                   -------------

        Total current liabilities ...............................     2,852,073

Capital lease obligations, net of current portion ...............       145,142
Notes payable, net of current portion ...........................       479,461
                                                                   -------------

           Total liabilities ....................................     3,476,676

Minority Interest ...............................................       174,093

Shareholders' equity
     Preferred stock, $0.001 par value, non-voting 10,000,000
        shares authorized, no shares issued and outstanding .....             -
     Common stock, $0.04 par value, 100,000,000 shares authorized
        4,744,551shares issued and outstanding ..................       189,782
     Additional paid-in capital .................................    14,488,090
     Accumulated deficit ........................................   (13,070,725)
                                                                   -------------

              Total shareholders' equity ........................     1,607,147

                                                                   -------------
 Total liabilities and shareholders' equity .....................  $  5,257,916
                                                                   =============


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

                                       3
<PAGE>

                      Emergent Group Inc. and Subsidiaries
                 Condensed Consolidated Statements of Operations

<TABLE>
<CAPTION>
                                                             Three Months Ended
                                                                  March 31,
                                                         ------------   ------------
                                                             2004           2003
                                                         ------------   ------------
<S>                                                      <C>            <C>
Revenue ..............................................   $ 2,682,440    $ 2,140,820
Cost of goods sold ...................................     1,906,605      1,315,937
                                                         ------------   ------------

Gross profit .........................................       775,835        824,883

Selling, general, and administrative expenses ........       799,974        832,223
                                                         ------------   ------------

Income (Loss) from operations ........................       (24,139)        (7,340)

Other income (expense)
     Interest expense ................................       (30,644)       (52,516)
     Equity in net loss of investment in limited
         liability companies .........................             -        (13,811)
     Gain (loss) on disposal of property and equipment        (3,518)        26,267
     Other income (expense), net .....................         5,480         (2,737)
                                                         ------------   ------------

            Total other income (expense) .............       (28,682)       (42,797)
                                                         ------------   ------------

Income (loss) before provision for income taxes,
     minority interest and extraordinary item ........       (52,821)       (50,137)
Provision for income taxes ...........................             -              -
                                                         ------------   ------------

Income (loss) before minority interest and
     extraordinary item ..............................       (52,821)       (50,137)

Minority interest in net income of consolidated
     limited liability companies .....................       (29,729)             -
                                                         ------------   ------------

Income (loss) before extraordinary item ..............       (82,550)       (50,137)
                                                         ------------   ------------
Extraordinary item
     Gain on forgiveness of debt, net of tax .........             -        103,530
                                                         ------------   ------------

Net income (loss) ....................................   $   (82,550)   $    53,393
                                                         ============   ============

Basic and diluted earnings (loss) per share:
     Before extraordinary item .......................   $     (0.01)   $     (0.03)
     Extraordinary item ..............................         (0.02)          0.06
                                                         ------------   ------------

Basic and diluted earnings (loss) per share ..........   $     (0.02)   $      0.03
                                                         ============   ============

Basic and diluted weighted-average shares outstanding      4,744,551      1,683,945
                                                         ============   ============
</TABLE>

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

                                       4
<PAGE>
                      Emergent Group Inc. and Subsidiaries
                 Condensed Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                                     Three Months Ended
                                                                                         March 31,
                                                                                  ----------   ----------
                                                                                    2004           2003
                                                                                  ----------   ----------
<S>                                                                               <C>          <C>
Cash flows from operating activities
     Net income (loss) ........................................................   $ (82,550)   $  53,393
     Adjustments to reconcile net loss to net cash
     provided by (used in) operating activities:
         Loss (gain) on disposal of property and equipment ....................       3,518      (26,267)
         Gain on forgiveness of debt ..........................................           -     (103,530)
         Depreciation and amortization ........................................     296,874      186,412
         Equity in net (gain) loss of investment in limited liability companies           -       13,811
         Provision for doubtful accounts ......................................      (2,198)      10,827
         Minority interest in net income ......................................      29,729            -
         (Increase) decrease in
            Accounts receivable ...............................................      84,775      735,803
            Inventory .........................................................      27,346      (35,324)
            Due from related party ............................................           -     (416,181)
            Prepaid expenses ..................................................      25,879       45,746
            Deposits and other assets .........................................      (8,068)       9,830
         Increase (decrease) in
            Accounts payable ..................................................      78,719      (43,862)
            Accrued expenses ..................................................    (134,059)    (115,747)
                                                                                  ----------    ---------

Net cash provided by operating activities .....................................     319,965      314,911
                                                                                  ----------    ---------

Cash flows from investing activities
     Cash paid to limited liability companies .................................     (37,300)     (11,700)
     Purchase of property and equipment .......................................    (192,281)     (76,708)
     Net proceeds from the sale of property and equipment .....................       1,481       28,972
                                                                                  ----------   ----------
Net cash provided by (used in) investing activities ...........................    (228,100)     (59,436)
                                                                                  ----------   ----------

Cash flows from financing activities
     Payments on capital lease obligations ....................................     (63,510)    (270,356)
     Payments on notes payable ................................................     (97,644)    (130,844)
                                                                                  ----------   ----------
Net cash provided by (used in) financing activities ...........................    (161,154)    (401,200)
                                                                                  ----------   ----------

Net decrease in cash ..........................................................     (69,289)    (145,725)

Cash, beginning of period .....................................................     690,331      957,242
                                                                                  ----------   ----------
Cash, end of period ...........................................................   $ 621,042    $ 811,517
                                                                                  ==========   ==========
Supplemental disclosures of cash flow information:

     Interest paid ............................................................   $  37,316    $  48,115
                                                                                  ==========   ==========
Supplemental disclosures of non-cash investing and financing activities -
</TABLE>

     During the quarter ended March 31, 2004 the Company purchased
     property and equipment of $46,084 through capital leases.

     During the quarter ended March 31, 2003 the Company billed
     $290,440 to a related party for management fees.


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

                                       5
<PAGE>
                               EMERGENT GROUP INC
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   BUSINESS

     Emergent  Group  Inc.  ("Emergent")  is the parent  company of PRI  Medical
     Technologies,  Inc.,  formerly  Medical  Resources  Management,  Inc. ("PRI
     Medical"),  its  wholly  owned  and  only  operating  subsidiary.  Emergent
     acquired  PRI Medical in July 2001.  PRI  Medical  primarily  conducts  its
     business  through its wholly owned  subsidiary  Physiologic  Reps  ("PRI").
     Emergent,  PRI Medical and PRI are referred to collectively  hereinafter as
     the "Company." PRI Medical provides mobile laser/surgical services on a per
     procedure basis to hospitals,  out-patient surgery centers, and physicians'
     offices. The lasers are provided with technical support to ensure that they
     operate  correctly.  PRI Medical also provides other medical equipment on a
     limited  rental  basis to  hospitals  and  surgery  centers  although  this
     business is being phased out.

2.   BASIS OF PRESENTATION

     The accompanying  unaudited condensed  consolidated financial statements of
     Emergent have been  prepared  pursuant to the rules of the  Securities  and
     Exchange Commission ("SEC").  Certain information and footnote  disclosures
     normally  included in  financial  statements  prepared in  accordance  with
     accounting  principles  generally  accepted in the United  States have been
     condensed  or  omitted  pursuant  to  such  rules  and  regulations.  These
     unaudited  condensed  consolidated  financial  statements should be read in
     conjunction with the audited  consolidated  financial  statements and notes
     thereto included in the Company's Annual Report on Form 10-KSB for the year
     ended  December 31, 2003. In the opinion of  management,  the  accompanying
     unaudited   condensed   consolidated   financial   statements  reflect  all
     adjustments,  which are of a normal recurring nature,  necessary for a fair
     presentation of the results for the periods presented.

     The results of  operations  presented  for the three months ended March 31,
     2004 and 2003 are not necessarily  indicative of the results to be expected
     for any other interim period or any future fiscal year.

     Principles of Consolidation
     The consolidated  financial statements include the accounts of Emergent and
     its wholly  owned  subsidiaries.  In  addition,  as of December 31, 2003 in
     accordance with the Financial Accounting Standards Board Interpretation No.
     46, "Consolidation of Variable Interest Entities" the Company has accounted
     for its equity  investments in two limited  liability  companies  under the
     full  consolidation  method.  The Company  previously  utilized  the equity
     method of accounting for its investments in such entities.  All significant
     inter-company  transactions  and  balances  have  been  eliminated  through
     consolidation.

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

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

     Earnings (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.  There were no dilutive common share equivalents outstanding as
     of March 31, 2004 and 2003.

                                       6
<PAGE>

     Recent Accounting Pronouncements
     In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB Statements
     No. 4, 44, and 64,  Amendment  of FASB  Statement  No.  13,  and  Technical
     Corrections."  SFAS No. 145 updates,  clarifies,  and  simplifies  existing
     accounting  pronouncements.  This  statement  rescinds  SFAS No.  4,  which
     required all gains and losses from  extinguishment of debt to be aggregated
     and, if  material,  classified  as an  extraordinary  item,  net of related
     income tax effect. As a result, the criteria in APB No. 30 will now be used
     to classify  those gains and losses.  SFAS No. 64 amended SFAS No. 4 and is
     no longer necessary as SFAS No. 4 has been rescinded.  SFAS No. 44 has been
     rescinded as it is no longer necessary.  SFAS No. 145 amends SFAS No. 13 to
     require that certain lease modifications that have economic effects similar
     to  sale-leaseback  transactions  be  accounted  for in the same  manner as
     sale-lease transactions. This statement also makes technical corrections to
     existing  pronouncements.  While those  corrections  are not substantive in
     nature,  in  some  instances,  they  may  change  accounting  practice.  In
     connection with the  re-negotiation  of certain  capital lease  agreements,
     note payable  agreements,  and accounts  payable  liabilities,  the Company
     recorded an extraordinary  gain on forgiveness of debt of $-0- and $103,530
     in the  consolidated  statements of  operations  for the three months ended
     March 31, 2004 and 2003, respectively.

     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.  The Company  does not expect the adoption of SFAS
     146 to have a material impact, if any, on its financial position or results
     of operations.

     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,  if  any,  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 to the fair value method.

     In January 2003 and December 2003, the FASB issued FASB  Interpretation No.
     46, and FASB No. 46R,  respectively,  "Consolidation  of Variable  Interest
     Entities,"  an  interpretation  of  Accounting  Research  Bulletin  No. 51,
     "Consolidated   Financial  Statements."  This  pronouncement  requires  the
     consolidation of variable interest entities,  as defined,  and is effective
     immediately for variable  interest entities created after January 31, 2003,
     and for  variable  interest  entities  in which an  enterprise  obtains  an
     interest  after that date. In accordance  with this  interpretation,  as of
     March 31, 2004, the Company has included two limited liability companies in
     its consolidated financial statements.

     In April 2003, the Financial  Accounting  Standards  Board ("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. Management does not expect adoption of SFAS No. 149 to
     have a material impact on the Company's financial statements.

                                       7
<PAGE>
     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. As of March 31, 2004,  the
     Company does not have preferred stock as a liability.

3.   DEBT OBLIGATIONS

     At March 31, 2004 we have a bank loan (the "Bank Term Loan") outstanding in
     the amount of $349,775,  which is included in the current  portion of notes
     payable in the  accompanying  balance  sheet.  The loan was due on March 2,
     2004.  The loan  agreement,  as amended,  provides  for  monthly  principal
     payments of  $16,667;  plus  interest  at the prime rate plus 2.00%.  As of
     December 31, 2003 and March 31, 2004 we were not in compliance with certain
     covenants  and  provisions  of the original loan  agreement.  However,  the
     lender has provided waivers for such non-compliance. Principal and interest
     due  as of  March  31,  2004  are  shown  as  current  liabilities  in  the
     accompanying balance sheets. In April 2004, the lender agreed to extend the
     term of the loan to January 31, 2005 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 $750,000 with the same lender. This
     Bank Line of Credit is collateralized  by accounts  receivable and provides
     for interest at the prime rate,  plus 2.00%.  The Line of Credit  agreement
     provides for  borrowings  of up to 75% of eligible  accounts  receivable as
     defined.  The Bank Line of Credit was fully drawn as of  December  31, 2003
     and March 31, 2004 and the Company was not in compliance  with certain loan
     covenants and provisions of the credit agreement, as amended. In April 2004
     the Line of Credit agreement was amended to provide for an extension of the
     due date to January 31, 2005. In addition,  the amended agreement  requires
     the pay down of the line to  $500,000  by October 1, 2004.  Other terms and
     condition of this credit facility remain the same.

     The  Bank  Term  Loan and  Line of  Credit  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  herein,  as of March 31, 2004, we were not in compliance with
     certain  financial  covenants of such  agreements  for which the lender has
     provided  waivers.  As a result,  we have  classified  all of the bank loan
     facilities as current liabilities in the accompanying  consolidated balance
     sheets as of December 31, 2003 and March 31, 2004.

     In 2002 we renegotiated substantially all of our outstanding debt and lease
     obligations  with  our key  creditors.  The  restructured  debt  and  lease
     agreements  provided  for, in some cases,  the return of equipment  used to
     collateralize   such   obligations,   and  certain   periodic  and  monthly
     installment  payments for the balance of such obligations.  As of March 31,
     2004 our outstanding  restructured debt and lease  obligations  amounted to
     $614,661 and $247,823, respectively. In the event of default by the Company
     all amounts then outstanding are accelerated and become immediately due and
     payable. In addition,  in the event of default,  certain  restructured debt
     and lease  agreements  provide  for the  payment  of  additional  principal
     amounts of up to $187,500, excluding collection costs. As of March 31, 2004
     and  the  filing  of  this  Quarterly  Report  on  Form  10-QSB  we were in
     compliance with the terms and conditions of our renegotiated debt and lease
     agreements.

4.   LEGAL MATTERS

     From time to time,  we may become  involved  in  litigation  arising out of
     operations in the normal  course of business.  As of March 31, 2004, 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.

                                       8
<PAGE>
5.   RELATED PARTY TRANSACTIONS

     During the three months ended March 31, 2003 the Company billed $290,440 to
     certain  limited  liability  companies  in which the Company held an equity
     interest for management and other fees. The Company also incurred  expenses
     on behalf of the related party.

     Transactions with BJH Management

     Effective December 30, 2002, we entered into 18-month employment  contracts
     with Bruce J. Haber and Louis Buther who are key  employees and officers of
     the Company.  On March 31, 2004, the Company's Board of Directors  extended
     such contracts to June 30, 2005.

     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 also maintains his primary office in New York. In this regard,  the
     Company  reimbursed BJH for office and related expenses totaling $7,982 and
     $5,738,  respectively,  for the three months ended March 31, 2004 and 2003,
     respectively.


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

     Forward-Looking Statements

     The  information  contained in this Form 10-QSB and documents  incorporated
     herein by reference are intended to update the information contained in the
     Company's Annual Report on Form 10-KSB for the year ended December 31, 2003
     and such  information  presumes  that readers have access to, and will have
     read, the "Management's  Discussion and Analysis of Financial Condition and
     Results of Operations,"  "Risk Factors" and other information  contained in
     such Form 10-KSB and other Company filings with the Securities and Exchange
     Commission ("SEC").

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

     Overview

     Emergent  Group  Inc.  ("Emergent")  is the parent  company of PRI  Medical
     Technologies,  Inc.  ("PRI  Medical"),  its wholly owned and only operating
     subsidiary.  PRI Medical primarily conducts its business through its wholly
     owned  subsidiary,  PRI.  Emergent,  PRI  Medical  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 serves both large and small
     health care providers and makes mobile surgical  services  available to its
     customers  by  providing  this  equipment  on  a  per  procedure  basis  to
     hospitals, out patient surgery centers, and physician offices. 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 general  equipment  on a rental  basis to  hospitals  and surgery
     centers, although PRI began winding down this area of business in late 2001
     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. 104, "Revenue  Recognition," and related guidance.  We
     make such assessments based on the following factors: (a) customer-specific
     information, and (b) historical experience for issues not yet identified.

                                       10
<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
                                                                      March 31,
                                                            -------------------------------
                                                               2004        %      2003         %
                                                            ------------  ---  ------------   ---
<S>                                                         <C>          <C>   <C>           <C>
           Revenue                                          $ 2,682,440  100%  $ 2,140,820   100%

           Cost of goods sold                                 1,906,605   71%    1,315,937    61%
                                                            ------------  ---  ------------   ---

           Gross profit                                         775,835   29%      824,883    39%

           Selling, general, and administrative expenses        799,974   30%      832,223    39%
                                                            ------------  ---  ------------   ---

           Income (loss) from operations                        (24,139)  -1%       (7,340)    0%

           Other income (expense)                               (28,682)  -1%      (42,797)   -2%
                                                            ------------  ---  ------------   ---

           Loss before provision for income taxes,
              minority interest and extraordinary item          (52,821)  -2%      (50,137)   -2%

           Provision for income taxes                                 -    0%            -     0%
                                                            ------------  ---  ------------   ---
           Net income (loss) before minority interest
              and extraordinary item                            (52,821)  -2%      (50,137)   -2%
                                                                          ---                 ---
           Minority interest in net income of consolidated
              limited liability companies                       (29,729)  -1%            -     0%
                                                            ------------  ---  ------------   ---
           Income (loss) before extraordinary item              (82,550)           (50,137)
                                                            ------------       ------------
           Extraordinary item
              Gain on forgiveness of debt, net of tax                 -    0%      103,530     5%
                                                            ------------  ---  ------------   ---
           Net income (loss)                                $   (82,550)  -2%     $ 53,393     2%
                                                            ============  ===  ============   ===
</TABLE>

     Comparison of the Three Months Ended March 31, 2004 to March 31, 2003

     We generated revenues of $2,682,440 in 2004 compared to $2,140,820 in 2003.
     The increase in revenues of $541,620 in 2004  compared to 2003 is primarily
     related to an increase in revenues from our advanced  surgical  procedures,
     offset by decreases in revenues from our core surgical services and medical
     rentals.  Total  revenues from surgical and cosmetic  services  represented
     approximately 86% and 13%, respectively, of total revenues for 2004 and 81%
     and 16% for 2002,  respectively.  Revenues from medical  equipment  rentals
     comprised   approximately  1%  and  3%  of  revenues  for  2004  and  2003,
     respectively.  Medical rental revenues, in terms of absolute dollars and as
     a percentage  of total  revenues,  decreased as a result of our decision to
     wind  down  this  area of  business  in order  to focus on our core  mobile
     surgical equipment rental and service business.

     Cost of goods sold was  $1,906,605  or 71% of revenues in 2003  compared to
     $1,315,937 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

                                       11
<PAGE>
     $590,668 in 2004 is primarily  related to an increase in  disposable  costs
     due to the  increase in revenues  from our  advanced  surgical  procedures,
     higher  depreciation and amortization  costs due to equipment  purchases in
     recent  quarters  and  higher  repair  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.  In addition,  gross margins are
     lower from advanced procedures compared to our core surgical business.

     Gross  margin  was  $775,835  in 2004 or 29% of net  revenues  compared  to
     $824,883   in  2003  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 2004 is
     generally related to the mix of services provided by the Company.  Revenues
     generated from advanced surgical procedures are higher in terms of absolute
     dollars,  however,  our gross  margins  on such  procedures  are lower than
     margins  generated  from other surgical  services.  The margins on advanced
     procedures are lower due to higher  disposable  costs per procedure both in
     terms of absolute  dollars and as a percentage of per  procedure  revenues.
     Revenues from advanced surgical  procedures  increased 36% in 2004 compared
     to 2003. In addition,  depreciation  and  amortization  charges included in
     cost of goods sold increased by $101,757 in 2004 compared to 2003 primarily
     as a result of equipment purchases in recent quarters. These factors, among
     others,  resulted in the decrease in our gross margin rate in 2004 compared
     to 2003.

     Selling,  general,  and  administrative  expenses  were  $799,974  in  2004
     compared  to  $832,223  in 2003.  Such costs  include  payroll  and related
     expenses, insurance and rents. The overall decrease of $32,249 is generally
     related to our ongoing efforts to effectively monitor and control costs.

     Other income (expense) was $(28,670) in 2004 compared to $(42,797) in 2003.
     The net  decrease in other  income  (expense)  of  $(14,127)  is related to
     decreases in net interest  expense of $21,872,  offset by a decrease in the
     gain on sale of property and equipment of $29,785 in 2004 compared to 2003.
     Interest  expense  is  primarily  related to PRI  Medicals  notes and lease
     obligations. The decrease of $21,872 in net interest expense is principally
     related to the decrease in our  outstanding  debt and lease  obligations in
     2004  compared to 2003 and a reduction  in interest  rates on our bank term
     loan and line of credit as discussed below.

     The  minority  interest  in net income of limited  liability  companies  of
     $29,729 in 2004  relates to the  consolidation  of two entities in which we
     hold an equity investment  interest.  As of December 31, 2003 and March 31,
     2004  in  accordance   with  the  Financial   Accounting   Standards  Board
     Interpretation  No. 46,  "Consolidation of Variable Interest  Entities" the
     Company  accounted for its equity  investments  in these entities under the
     full  consolidation  method.  The Company  previously  utilized  the equity
     method of accounting for such investments. For the three months ended March
     31,  2003 we  recorded  equity in losses of  $(13,811)  from our  ownership
     interest  in LLCs,  which is  included  in other  expense in the  accompany
     consolidated statement of operations.

     Gain on forgiveness of debt was $-0- for 2004 compared to $103,530 in 2003.
     The decrease in gain on forgiveness of debt in 2004 is due to the fact that
     our major debt  restructuring  efforts were  substantially  completed as of
     December 31, 2002 and early 2003 and no such activity occurred in 2004.

     Net income  (loss) was  $(82,550) in 2004 compared to net income of $53,393
     in 2003. No provision for income taxes is provided for in 2004 and 2003 due
     to the availability of net operating loss carryforwards.

     Liquidity and Capital Resources

     At March 31, 2004 we have a bank loan (the "Bank Term Loan") outstanding in
     the  amount  of  $349,775.  The loan was due on  March  2,  2004.  The loan
     agreement, as amended,  provides for monthly principal payments of $16,667;
     plus  interest  at the prime rate plus 2.00%.  As of December  31, 2003 and
     March  31,  2004 we were  not in  compliance  with  certain  covenants  and
     provisions of the original loan agreement. However, the lender has provided
     waivers for such non-compliance. Principal and interest due as of March 31,
     2004 are shown as current  liabilities in the accompanying  balance sheets.
     In April 2004,  the lender agreed to extend the term of the loan to January
     31, 2005 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  $750,000  with the same  lender.  This  Bank  Line of Credit is
     collateralized  by accounts  receivable  and  provides  for interest at the
     prime  rate,  plus  2.00%.  The  Line  of  Credit  agreement  provides  for
     borrowings of up to 75% of eligible  accounts  receivable  as defined.  The
     Bank Line of Credit was fully drawn as of  December  31, 2003 and March 31,
     2004 and the Company was not in compliance  with certain loan covenants and
     provisions  of the  credit  agreement  for which the  lender  has  provided
     waivers.  In April 2004 the Line of Credit agreement was amended to provide
     for an  extension of the due date to January 31,  2005.  In  addition,  the
     amended agreement  requires the pay down of the line to $500,000 by October
     1, 2004. Other terms and condition of this credit facility remain the same.

                                       12
<PAGE>
     The  Bank  Term  Loan and  Line of  Credit  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  herein,  as of March 31, 2004, we were not in compliance with
     certain  financial  covenants of such  agreements  for which the lender has
     provided  waivers.  As a result,  we have  classified  all of the bank loan
     facilities as current liabilities in the accompanying  consolidated balance
     sheets as of December 31, 2003 and March 31, 2004.

     In 2002 we renegotiated substantially all of our outstanding debt and lease
     obligations  with  our key  creditors.  The  restructured  debt  and  lease
     agreements  provided  for, in some cases,  the return of equipment  used to
     collateralize   such   obligations,   and  certain   periodic  and  monthly
     installment  payments for the balance of such obligations.  As of March 31,
     2004 our outstanding  restructured debt and lease  obligations  amounted to
     $614,661 and $247,823, respectively. In the event of default by the Company
     all amounts then outstanding are accelerated and become immediately due and
     payable. In addition,  in the event of default,  certain  restructured debt
     and lease  agreements  provide  for the  payment  of  additional  principal
     amounts of up to $187,500, excluding collection costs. As of March 31, 2004
     and  the  filing  of  this  Quarterly  Report  on  Form  10-QSB  we were in
     compliance with the terms and conditions of our renegotiated debt and lease
     agreements.

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

     The Company had cash and cash  equivalents  of $811,517 at March 31,  2003.
     Cash provided by operating  activities for the three months ended March 31,
     2003 was  $314,911.  Cash from  operations  includes net income of $53,393,
     depreciation  and  amortization  of  $186,412  and a decrease  in  accounts
     receivable of $735,803,  offset by an increase in due from related party of
     $416,181, a gain on forgiveness of debt of $103,530, a decrease in accounts
     payable and accrued expenses of $159,609 and a gain on disposal of property
     and equipment of $26,267. Cash used in investing activities was $59,436 due
     to the  purchase  of  property  and  equipment  of $76,708 and cash paid to
     limited liability  companies,  offset by proceeds from the sale of property
     and equipment of $28,972.  Cash used in financing  activities was $401,200,
     which related to payments on debt and lease obligations.

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

     Item 3. Controls and Procedures

     The Company maintains  disclosure controls and procedures that are designed
     to ensure  that  information  required  to be  disclosed  in the  Company's
     Exchange Act reports is recorded, processed, summarized and reported within
     the time  periods  specified  in the SEC's  rules and forms,  and that such
     information is accumulated and  communicated  to the Company's  management,
     including  its Chief  Executive  Officer and Chief  Financial  Officer,  as
     appropriate,  to allow timely decisions regarding required disclosure based
     closely on the definition of "disclosure  controls and  procedures" in Rule
     13a-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.

                                       13
<PAGE>

                           PART II. OTHER INFORMATION

     Item 1.   Legal Proceedings:

     We may become  involved  in  litigation  arising out of  operations  in the
     normal course of business.  As of March 31, 2004, 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.  In addition,  during the quarter ended March 31, 2004,
     there have been no other material developments with respect to an action by
     a related party against Stonepath Group, Inc.


     Item 2.   Changes in Securities.

          (a)  There were no modifications of instruments defining the rights of
               the holders of any class of registered securities.
          (b)  The rights  evidenced by any class of registered  securities have
               not been  materially  limited or  qualified  by the  issuance  or
               modification of any other class of securities.
          (c)  In the first  quarter ended March 31, 2004 there were no sales of
               unregistered securities.
          (d)  Rule 463 of the Securities Act is not applicable to the Company.
          (e)  In  the  first  quarter  ended  March  31,  2004  there  were  no
               repurchases by the Company of its Common Stock.


     Item 3.   Defaults Upon Senior Securities

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


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

               In the first  quarter  ended March 31, 2004 there were no matters
               submitted to a vote of security holders.


     Item 5.   Other Information:

               None.


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

          (a)  Exhibits

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

                                       14
<PAGE>
     Number   Exhibit Description
     ____________________________________________

     11.1 Statement  re:  computation  of earnings per share.  See  consolidated
          statement of operations and notes thereto.

     31.1 Certification  of Chief Executive  Officer  Pursuant to Rule 13a-14(a)
          under the  Securities  Exchange  Act of 1934,  as adopted  pursuant to
          Section 302 of the Sarbanes-Oxley Act of 2002

     31.2 Certification  of Chief Financial  Officer  Pursuant to Rule 13a-14(a)
          under the  Securities  Exchange  Act of 1934,  as adopted  pursuant to
          Section 302 of the Sarbanes-Oxley Act of 2002

     32.1 Certification of Chief Executive Officer pursuant to 18U.S.C.  Section
          1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of
          2002

     32.2 Certification of Chief Financial Officer pursuant to 18U.S.C.  Section
          1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of
          2002

          (b)  Reports on Form 8-K.

          None

                                       15
<PAGE>
                                   SIGNATURES


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


                                      EMERGENT GROUP INC.



Date:    May 14, 2004                 By:  /s/ Bruce J. Haber
                                          ------------------
                                          Bruce J. Haber,
                                          Chairman and Chief Executive Officer



Date:    May 14, 2004                 By:  /s/ William M. McKay
                                           -------------------
                                           William M. McKay,
                                           Chief Financial Officer

                                       16