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

                                   Form 10-QSB

(Mark One)

       [X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
            SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended  March 31, 2003
                                                ------------------

       [    ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
            For the transition period from ______________ to ___________


                        Commission File Number: 33-31067


                         ITec Environmental Group, Inc.
        ----------------------------------------------------------------
        (Exact name of small business issuer as specified in it charter)

                    Delaware                             31-1705310
        ------------------------------              -------------------
       (State or other jurisdiction of                 (IRS Employer
        incorporation or organization)              Identification No.)

                       693 Hi Tech Parkway Suite 3, Oakdale, CA
                     --------------------------------------
                    (Address of principal executive offices)

                                 (209) 848-3900
                            -------------------------
                           (Issuer's telephone number)

                            BEECHPORT CAPITAL CORP.
                            -----------------------
             (Former name and address if changed since last report)


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


APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of March 31, 2003, the issuer had
45,297,068 shares of common stock, no par value, outstanding.

Transitional Small Business Disclosure Format (Check one):  Yes [ ]   No [X]


<PAGE>

                         ITec Environmental Group, Inc.
                            31 March 2003 10-QSB


                                   INDEX


PART I - FINANCIAL INFORMATION                                    Page

Item 1.  Consolidated Financial Statements (Unaudited)             3

  Review Report of Independent Certified Public Accountant         3

  Consolidated Balance Sheets                                      4-5

  Consolidated Statements of Income and Comprehensive Income
    for the three months ended March 31, 2003 and 2002             6


  Consolidated Statements of Changes in Stockholders' Equity       7

  Consolidated Statements of Cash Flows for the three months
    ended March 31, 2003                                           8

  Notes to Consolidated Financial Statements                      9-16

Item 2.  Management's Discussion and Analysis of Financial
              Condition and Results of Operations                 17

Item 3.  Controls and Procedures                                  17

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings                                        17

Item 2.  Changes in Securities                                    18

Item 3.  Defaults upon Senior Securities                          19

Item 4.  Submission of Matters to a Vote of Security Holders      19

Item 5.  Other Information                                        19

Item 6.  Exhibits and Reports on Form 8-K                         19


SIGNATURES                                                        20

CERTIFICATIONS                                                    21



                                   2
<PAGE>



PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements


                REVIEW REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT


The Shareholders
ITEC ENVIRONMENTAL GROUP, INC.
(A Development Stage Company)

I have reviewed the accompanying consolidated balance sheet of ITEC
ENVIRONMENTAL GROUP, INC. for the three months ending March 31, 2003 and the
related consolidated statements of income and changes in stockholders' equity,
and cash flows for the period ended March 31, 2003. These financial statements
are the responsibility of management. My responsibility is to express an opinion
on these financial statements based on my audit.

I conducted my review in accordance with generally accepted accounting
standards. In my opinion, the consolidated financial statements referred to
above present fairly, the consolidated financial position of ITEC ENVIRONMENTAL
GROUP INC., a development stage company, for the date indicated above and the
results of its consolidated operations, stockholders' equity and cash flows for
the period then ended in conformity with generally accepted accounting
principles consistently applied.

The accompanying consolidated financial statements have been prepared assuming
that the company will continue as a going concern. As discussed in the Notes to
the consolidated financial statements, the Company has sustained losses from
initial startup costs and has a lack of substantial capital that raises doubt
about its ability to continue as a going concern. The consolidated financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.




Henry Schiffer, CPA
An Accountancy Corporation
Beverly Hills, California
May 20, 2003

                                       3


<PAGE>


                 ITEC ENVIRONMENTAL GROUP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET

                                                      As of        As of
                                                     3/31/03      12/31/02
                                                   -----------   -----------
                                                   (Unaudited)
    ASSETS

 Current Assets

       Cash & Cash Equivalents                     $    (4,786)  $   (11,791)
       Accounts Receivable                              38,029        51,774
       Inventory                                       251,466       238,466
       Other                                            33,800         8,000
                                                   -----------   -----------
    Total Current Assets                               318,509       286,449

 Fixed Assets
       Furniture & Equipment net of Depreciation        12,105        13,675
       Equipment Recycling                              96,151        92,514
                                                   -----------   -----------
    Total Fixed Assets                                 108,256       106,189

 Other Assets
       Allowance Doubtful Accounts                    (186,605)     (186,605)
       Deposits                                          4,254         5,154
       Prepaid Expenses                                 10,091        10,472
       Note Receivable                                 242,263       236,973
       Prepaid License Fees                             50,000        50,000
       Leasehold Improvements                            7,448
       Other-misc                                        4,600        40,589
                                                   -----------   -----------
    Total Other Assets                                 132,051       156,583
                                                   -----------   -----------
    Total Assets                                   $   558,817   $   549,222
                                                   ===========   ===========





See accompanying notes to financial statements.

                                       4
<PAGE>

                  ITEC ENVIRONMENTAL GROUP, INC. AND SUBSIDIARY
                      CONSOLIDATED BALANCE SHEET, continued

                                                      As of         As of
                                                     3/31/03      12/31/02
                                                   -----------   -----------
                                                  (Unaudited)
       LIABILITIES

 Current Liabilities
       Accounts Payable                            $   844,463   $   782,995
       Accrued Liabilities                              72,092        72,092
       Accrued Payroll                                 185,091       131,891
       Payroll/Sales Tax Liabilities                     2,571        13,162
                                                   -----------   -----------
    Total Current Liabilities                        1,104,217     1,000,140

 Other Liabilities
       Deferred Revenue                                343,577       170,000
       Note Payable GMA                              1,100,000     1,100,000
       Notes Payable                                   716,653       815,230
                                                   -----------   -----------
    Total Other Liabilities                          2,160,230     2,085,230
                                                   -----------   -----------
    Total Liabilities                                3,264,447     3,085,370
                                                   -----------   -----------
    EQUITY

    Preferred Stock, no par value
        10,000,000 shares authorized none
        issued & outstanding
    Common Stock, no par value,
       750,000,000 shares authorized, 45,297,068
       shares issued & outstanding at 3/31/03          258,015       254,715
    Paid in Capital                                  3,598,863     3,517,163
    Accum deficit current period                      (254,482)   (2,492,202)
    Accum deficit during
       Development stage                            (6,308,025)   (3,815,823)
                                                   -----------   -----------
    Total Stockholders' deficit                     (2,705,630)   (2,536,148)
                                                   -----------   -----------
 Total Liabilities & Stockholders' Equity          $   558,817   $   549,222
                                                   ===========   ===========



See accompanying notes to financial statements.

                                       5
<PAGE>

                  ITEC ENVIRONMENTAL GROUP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENT OF INCOME
                            AND COMPREHENSIVE INCOME
                                   (UNAUDITED)

                                                        Three Months Ended
                                                   -------------------------
                                                 March 31, 2003  March 31, 2002
                                                 --------------  --------------
 Revenues
    Fees                                           $     5,000   $         -
                                                   -----------   -----------
       Total Income                                      5,000             -

 Operating Expenses
    Consulting Fees                                     11,375        51,166
    Payroll                                             83,232       121,857
    Italian Expenses                                    47,645        26,274
    Professional Fees                                   34,172        42,061
    Research and Development                                           1,000
    Travel and Entertainment                             3,252        25,667
    Engineering                                                        2,175
    Freight & Delivery                                   2,732         5,683
    Public Relations                                     2,745        17,933
    Stock Commissions and Expenses                         502        74,855
    Utilities                                            6,288         7,152
    Insurance                                            6,141           216
    Rent                                                 9,860         2,700
    Other-Misc                                           3,958        18,896
    Repairs                                              3,042
    Contract Labor                                       2,595
    Dues and Subscriptions                                 462
    Office Supplies                                      3,127
    Equipment Lease                                      4,790
    Postage                                                717
    Taxes                                                2,200
    Trade Shows and Printing                                27
                                                   -----------   -----------
       Total Operating Expenses                        228,862       397,635

 Other Income (expense)
    Depreciation                                         2,042
    Interest                                            28,579         9,413
    Currency Conversion Net Loss

       Total Net Income (Loss)                     $  (254,483)  $  (407,048)
                                                   ===========   ===========



See accompanying notes to financial statements.

                                       6
<PAGE>
<TABLE>
<CAPTION>

                  ITEC ENVIRONMENTAL GROUP, INC. AND SUBSIDIARY
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                     FOR THE PERIOD ENDED MARCH 31, 2003


                                   No. of Common     Stock        Additional      Accumulated       Total
                                    Stock Shares     Amount     Paid-In Capital     Deficit
                                  ---------------------------------------------------------------------------

<S>                                   <C>            <C>            <C>            <C>            <C>
Balance at December 31, 2000           6,651,987       1,000              -        (1,209,661)    (1,208,661)

Balance at December 31, 2001          12,692,000     212,608        1,090,460      (3,803,028)    (2,499,960)

Balance at December 31, 2002          41,997,068     254,715        3,517,163      (6,308,025)    (2,536,147)

Net Income for the period ended
   March 31, 2003                                                                    (254,482)      (254,482)

Common Stock Issued
   March 31, 2003                      3,000,000       3,000           67,000                         70,000

Common Stock issued for services
   March 31, 2003                        300,000         300           14,700                         15,000

                                      ----------------------------------------------------------------------
Balance at March 31, 2003 (unaudited)   45,297,068    $258,015       $3,598,863     $(6,562,507)   $(2,705,629)
                                      ======================================================================
</TABLE>





See accompanying notes to financial statements.


                                       7
<PAGE>


                  ITEC ENVIRONMENTAL GROUP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)

                                                       Three Months Ended
                                                   -------------------------
                                                 March 31, 2003  March 31, 2002
                                                 --------------  --------------
 Cash Flows From Operating Activities
    Net Income                                     $  (254,482)  $  (407,048)
    Adjustments to reconcile Net Income
    to net cash provided by operations:
       Increase in accounts receivable                  13,745
       Increase in accounts payable, accrued           104,459        35,265
       expenses and other
       Increase in deferred revenue                    173,577
       Increase/decrease in other assets               (16,000)        1,099
                                                   -----------   -----------
 Net Cash provided by Operating Activities              21,299      (370,684)
                                                   -----------   -----------
 Cash Flows From Investing Activities
       Net cash used in investing activities              (716)      (73,840)
                                                   -----------   -----------

 Cash Flows From Financing Activities
       Notes payable                                   (98,577)
       Issuance of common stock                          3,300
       Capital raised                                   81,700       748,308
                                                   -----------   -----------
 Net Cash provided by Financing Activities             (13,577)      748,308
                                                   -----------   -----------

 Net Cash increase for period                            7,006       303,784
                                                   -----------   -----------
 Cash at beginning of period                           (11,791)        4,253

 Cash at end of period                             $    (4,785)  $   308,037
                                                   ===========   ===========





See accompanying notes to financial statements.

                                       8

<PAGE>


                  ITEC ENVIRONMENTAL GROUP, INC. AND SUBSIDIARY
                         (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003

NOTE 1 -DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

(a)    General

Beechport Capital Corp. ("Beechport") was organized as a Colorado corporation on
January 24, 1989, in order to evaluate, structure and complete a merger with or
acquisition of, prospects consisting of private companies, partnerships or sole
proprietorships.

ITEC Environmental Group, Inc. ("ITEC") was incorporated under the laws of the
State of Delaware on March 28, 2000. Itec was formed for the purpose of
acquiring certain patented technology and the development of a worldwide market
for its usage.

At a special September 27, 2002 meeting of the shareholders of Beechport Capital
Corp., the Company authorized changing its name by merging into its wholly-owned
subsidiary Itec Environmental Group, Inc. thus changing the domicile of the
Company from Colorado to Delaware.

The Company's business plan is to attempt to build on the foundation of the
patendted technology and proprietary equipment and to form strategic alliances
and a management team to become a worldwide supplier of oil and agricultural
chemical container recycling equipment and related systems. The Company's
initial marketing of the technology will be concentrated in Italy but is
intending to market in the future in the United States and other countries. The
Company has elected to use a stage development company since planned principal
operations have not yet commenced.

The Company's subsidiary, Environmental Recycling Service of America, Inc.
("ERSA") was incorporated under the laws of the State of California on March 6,
2002. ERSA will process and recycle plastic containers using the ECO2 system
developed and sold by ITEC.

Unless the context indicates otherwise all references herein to "the Company"
include Itec Environmental Group, Inc., its predecessor Beechport Capital Corp.
and its wholly-owned subsidiary, ECO2 Environmental Systems, Inc.

(b)   Basis of Presentation

The accompanying unaudited interim financial statements of the Company have been
prepared in accordance with accounting principles generally accepted in the
United States for interim financial information.



                                       9
<PAGE>


NOTE 1 -DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES, continued

Accordingly, they do not include all of the information and notes required by
accounting principles generally accepted in the United States for complete
financial statements. The accompanying financial statements reflect all
adjustments (consisting of normal recurring accruals), which are, in the opinion
of management, considered necessary for a fair presentation of the results for
the interim periods presented. Operating results for the quarter ended March 31,
2003 are not necessarily indicative of the results that may be expected for the
fiscal year ending December 31, 2003. These financial statements should be read
in conjunction with the audited financial statements included in the Company's
amended Annual Report on Form 10-KSB/A for the year ended December 31, 2002.

(c)   Per Share Information

Per share information is determined using the weighted average number of shares
outstanding.

(d)  Furniture and Equipment

Furniture and equipment will be carried at cost, net of accumulated
depreciation. Depreciation will be computed using straight-line methods over
estimated useful lives of the assets ranging from five to seven years.

(e)  Revenue and Expense Recognition

As of March 31, 2003, the Company had revenue of $24,000. The Company intends to
recognize revenues from sales of equipment upon delivery as per SAB 101.

The Company intends to contract with others for the manufacturing of the
equipment. General and administrative expenses and the costs of advertising are
expensed as incurred.

(f)  Concentrations

Financial instruments that potentially subject the company to concentrations of
credit risk consist principally of temporary cash investments and cash
equivalents and trade accounts receivables. At March 31, 2003, the Company had
no amounts of cash or cash equivalents in U.S. financial institutions in excess
of amounts insured by agencies of the U.S. Government. At March 31, 2003 the
Company had trade receivables of $38,000. Initial trade receivables are expected
to be principally from customers in Italy. Since initial anticipated customers
will be from one geographic location, a concentration of credit risk could exist
due to potential changes in economic activity in that area. The Company does not
require collateral for its trade accounts receivable.

(g)  Cash Equivalents

The Company considers all short-term investments in securities that mature in 90
days or less to be cash equivalents.



                                       10
<PAGE>


NOTE 1 -DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES, continued

(h)   Allowance for Doubtful Accounts

Based on collection experience of the Company, no allowance for doubtful
accounts has been provided. Historically the Company has never had any material
amounts of uncollectible accounts. Provision for doubtful accounts at March 31,
2003 is for a receivable from an officer stockholder without adequate
collateral.

(i)   Use of Estimates in the Preparation of Financial Statements

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

(j)   Geographic Area of Operations

The Company operates its business principally in Italy. The potential for severe
financial impact can result from negative effects of economic conditions within
the markets or geographic areas. Since the Company's business is principally in
one area, this concentration of operations results in an associated risk and
uncertainty.

NOTE 2 - BASIS OF PRESENTATION - GOING CONCERN

The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles, which contemplates continuation of the
Company as a going concern. However, the Company has suffered recurring losses
from operations and has a net capital deficiency that raises substantial doubt
about the Company's ability to continue as a going concern. Management is
attempting to raise additional capital.

In view of these matters, continuing as a going concern is dependent upon the
Company's ability to meet its financing requirements, raise additional capital,
and the success of its future operations or completion of a successful business
combination. Management believes that actions planned and presently being taken
to raise additional capital to provide the opportunity for the Company to
continue as a going concern.

NOTE 3 - COMMON STOCK

The Articles of Incorporation of Itec authorize a maximum of 750,000,000 shares
of $0.001 par value common stock and 10,000,000 shares of $0.001 par value
preferred stock. At March 31, 2003, 45,297,068 shares of common stock were
issued and outstanding. In April, 2000, Itec entered into stock subscription
agreements for the issuance of 1,000 shares at $1.00 per share.


                                       11
<PAGE>


NOTE 3 - COMMON STOCK, continued

On July 3, 2000 Itec's Board of Directors approved entering into loan/investment
agreements with various Italian investors not to exceed $875,000. The Board also
authorized the payment of a 10% commission on the funds raised by the
loan/investment agreements. The term of the loans as agreed to by the Board
would be three years. Interest would be payable monthly with the total principal
due in three years. The investors would have the right to participate in future
issuances of common stock on a pro rata basis, except that this provision shall
not apply prior to a business combination transaction in which the common stock
of Itec would become publicly trade, or if Itec were to consummate an initial
public offering.

On July 15, 2000, the Board also authorized the issuance of up to 15% of Itec's
common stock to the various Italian investors. In lieu of Itec's entering into
loan/investment agreements described above, a revised agreement between Itec's
President and the Italian GPDP Program to make loans at a rate of $5,500 per
share of Itec common stock. Funds thus generated (approximately $815,230 at
March 31, 2002) were to be repaid when Itec became a public company. Upon
repayment of the advances, the investors would retain their stock ownership. To
comply with various Italian regulations, Itec's President personally issued
shares of Itec's common stock to the Italian investors. The funds advanced from
the investors were deposited in accounts in ITEC's President's name and the
advances were to Itec's President. Due to the substance for the transaction over
its form, the transactions have been shown as Itec transactions with the cash
balances and advances payable recorded on the financial statements. Itec's
President has represented that the funds received are assets of Itec and Itec
has assumed the related obligations.

On May 4, 2001 Beechport entered into a share exchange agreement with Itec to
acquire all the issued and outstanding shares of common stock of Itec in
exchange for 6,651,987 shares of Beechport's common stock. This business
combination resulted in the shareholders of ITEC owning approximately 66.5% of
the issued and outstanding shares of the Company's common stock (10,000,000
shares were outstanding upon completion of the transaction), and the Company
holding 100% of the issued and outstanding shares of Itec's common stock.

On May 28, 2001, the Company adopted the Beechport Capital Corp. 2001 Stock
Plan, which covers the issuance of up to 1,000,000 shares of common stock,
either directly or pursuant to options, to eligible employees, directors,
officers, consultants and advisors of the Company. The purpose of the plan is to
promote the best interest of the remuneration to selected eligible participants.
On June 7, 2001, the Company filed a registration statement on Form S-8 (File
No. 333-62520) to register the shares covered under the Plan.

In June and September of 2001 the Board authorized the issuance of up to
2,100,000 shares under S-8 filings for services performed for the Company.
1,992,000 shares were issued in early July. The Company's stock was trading in
the range of $0.50 to $0.90 with a five-day average of $0.72 per share. The
discount allowed was set at 25% resulting in a valuation of $0.54 per share. One
hundred thousand shares were issued in late September 2001. The Company's stock
was trading in the range of $0.28 to $0.43 with a five-day average of $0.36 per
share. The discount allowed was set at 25% resulting in a valuation of $0.27 per
share.

                                       12
<PAGE>


NOTE 3 - COMMON STOCK, continued

In December 2001 the Company agreed to issue up to 5,000,000 shares of common
stock in an offering to be conducted outside the United States. As of December
31, 2002 an aggregate of 5,016,508 shares of common stock had been issued with
the Company receiving net proceeds of $1,194,000 or$0.24 per share. In July 2002
the Company agreed to issue up to 7,500,000 shares of common stock in an
offering to be conducted outside the United States. As of December 31, 2002 an
aggregate of 7,033,242 shares of common stock had been issued and the Company
had received net proceeds of $327,000 or $0.05 per share. In December 2002 the
Company agreed to a third round to issue up to 7,000,000 shares of common stock
in an offering to be conducted outside the United States. As of March 31, 2003
and aggregate of 3,000,000 shares of common stock had been issued and the
Company had received net proceeds of $70,000 or $0.02 per share. As of March 31,
2003 the bid price for the Company's common stock was $0.04 per share.

NOTE 4 - NOTES PAYABLE

The Company entered into an agreement with Glenwood Marketing Associates, Inc.,
(GMA) effective April 25, 2000 whereby GMA agreed to lend $1,000,000 to the
Company. From the $1,000,000 loan the Company agreed to pay $200,000 of capital
formation fees to GMA.

The loan bears interest at 10% per annum payable in monthly interest only
for the 36-month term of the loan. The Company agreed to amend its
articles of incorporation so as to allow the issuance of a preemptive and
preferential right to purchase shares pursuant to Board of Director approval.
The Company agreed to promulgate a Board resolution to convey to GMA 20% of the
Company's issued and outstanding common stock and further that Board shall vest
GMA with preferential rights to acquire additional shares, at no cost to GMA,
when additional shares are issed, so as to maintain GMA's stock ownership
position at 20% of the issued and outstanding common stock. GMA's interest shall
be non-diluted, except that this provision shall not apply if the Company's
common stock becomes publicly traded.

The Company agreed, pursuant to this agreement, to pay GMA a $20,000 per month
consulting fee for 24 months, to allow GMA to appoint one member of the
Company's Board and to grant GMA a first right of refusal on leasing of all
machines built by the manufacturer of the equipment related to the license
agreement.

According to the terms of the agreement, the Company will become publicly traded
within twelve months of the loan agreement at which time all the officers and
directors of the Company will agree to a two year lock up of their Company
stock, GMA agreed to convert the debt to preferred stock upon ITEC becoming a
public company. The preferred stock will contain provisions for redemption
suitable to both parties. The Company also agreed that at least two of the
Company's Board members would approve verbally any Company expenditure of more
than $5,000

The Company has also conveyed a covenant, so long as GMA acts in accordance with
the terms of the agreement, to hold GMA harmless from any and all claims that
may accrue and to indemnify and hold GMA harmless from any and all losses,
claims, liabilities and expenses, including reasonable costs of investigation,
counsel fees and disbursements, which may be imposed upon or incurred by GMA
with the conduct of its own business with the Company.

                                       13
<PAGE>


NOTE 5 - LEASES

Effective November 1, 2000 the Company entered into a sub-lease agreement for
office facilities in Ohio. The Company is no longer using this office facility.
Under the terms of the sub-lease, the Company agreed to pay monthly sub-lease
payments of approximately $2,300 for the first 22 months and approximately
$2,430 per month for the remaining 24 months of the sub-lease term.

Effective April 2001 the Company entered into a lease agreement for office
facilities in California. Under terms of the lease, the Company agreed to pay
monthly lease payments of $900 for 36 months. This lease was terminated in
February 2003 without cost to the Company.

Effective January 2003 the Company entered into a lease agreement for office and
plant facilities in California. Under terms of the lease, the Company agreed to
pay monthly lease payments of $3,480 for 24 months.

Effective January 2003 the Company entered into a various lease agreement for
office and plant equipment. The terms of these leases vary from 24 to 60 months.

Future minimum rentals under this operating sub-lease are as follows:

        Year Ending December 31,
                 2003                                        42,625
                 2004                                        57,977
                 2005                                        18,657
                 2006                                         9,417
                 2007                                         8,803
                                                           --------
                           Total                           $137,479

NOTE 6 - TECHNOLOGY LICENSE

Effective June 30, 2000, the Company entered into a five-year patent license
agreement with Honeywell International, Inc. (Honeywell) whereby the Company
obtained a non-exclusive, nontransferable worldwide license to practice the
methods and to make, use, and sell, the products and/or covered by the
proprietary rights limited to the field of use of separating and recovering
motor oil from high density polyethylene plastic. Under the terms of the
agreement the Company agreed to pay a $50,000 non-refundable initial license fee
and an additional minimum annual royalty commencing upon delivery of the first
equipment to an ITEC customer, of the greater of $50,000 or 5% of the gross
sales of all products sold and services sold in the United States and 3% of the
products or services sold in countries other than the United States. The initial
license fee of $50,000 is not creditable toward the minimum annual royalty and
was payable in three equal installments. The first was due upon the execution of
the contract, the second on December 1, 2001 and the third on April 1, 2001. At
March 31, 2002, $33,333 was accrued as a liability.



                                       14
<PAGE>


NOTE 6 - TECHNOLOGY LICENSE, continued

On April 25, 2001, Honeywell revised the payment schedule to reflect the updated
delivery schedule so that the previous December 1, 2001 payment is now due May
30, 2001 and the final payment due September 30, 2001. As of March 31, 2002, the
$16,667 paid and the additional $33,333 accrued have been accounted for as
prepaid expenses based upon the revised agreement whereby these amounts apply
only upon shipment of the first equipment systems. The amounts are not
refundable and will be expensed upon shipment. This agreement shall
automatically renew for additional one-year periods after the end of the initial
five-year term unless written notice is given by either party of its intent to
terminate the agreement. Honeywell may terminate this agreement in the event of
bankruptcy or insolvency of the Company, an assignment for the benefit of
creditors of the Company, the nationalization of the industry which encompasses
any products or services, any suspension of payments under the terms of the
agreement by government regulation, the Company's failure to commence
manufacture of the agreement, a substantial change in ownership of the Company
(whether resulting from merger, acquisition, consolidation or otherwise),
another company or person acquiring control of the Company, or the existence of
a state of war between the United States and any country where the Company has a
license to manufacture products or services. In addition, if either party to the
agreement defaults for any reason in any of the obligations under the terms of
the agreement, the other party will have the right to terminate the agreement by
giving at least 60 days written notice.

There are no rights to sub-license granted under the terms of this agreement.
The Company has agreed to invest in the commercial development of the technology
and market for the product by committing resources at minimum in accordance with
various requirements as set forth in the commercialization plan provided by the
Company for consideration to Honeywell when the Company applied for the license.
The terms of the agreement require the Company to observe all applicable United
States and foreign laws, regulations, rules, and decrees with respect to the
transfer of the proprietary rights and related technical data to foreign
countries and failure to conform to such laws, regulations, rules and decrees
may result in criminal liability.

The $50,000 license fee is recorded as a prepaid expense and will be recorded as
an intangible asset when production begins. The intangible asset cost is being
amortized over the five-year initial term of the license agreement on a
straight-line basis. Management's policy with respect to long-lived assets,
including intangible assets, is to periodically review the carrying amounts, at
least annually, to determine if there is any impairment in the carrying value.
As of March 31, 2003, management believes that there is no impairment in the
carrying value of any of its long-lived assets.


                                       15

<PAGE>


NOTE 7 - RECEIVABLE RELATED PARTY

On July 5, 2001 the Company's Board of Directors approved and authorized the
Company to make a loan of $250,000 to the Company's President. The loan,
according to the minutes of the Board meeting, is interest only for ten years
with the total principal due at the end of ten years. Interest has been waived
in the years ended December 31, 2000 and 2001 by the board of directors. As of
March 31, 2003, $236,973 was advanced on the loan. On April 5, 2001 the company
advanced Intermode (an Italian company) $36,951 in connection with product
development.


NOTE 8 - AGREEMENT

The Company has entered into an agreement with Cesmet Laboratories, SRL, an
Italian company for a cooperative effort in development of the General Plastic
Development Program (GPDP) and the oversight of ITEC's Italian operations. The
fees for this agreement are on a time and expense basis billed monthly. A
director of the Company is a 50% owner of Cesmet Laboratories.


NOTE 9 - SUBSIDIARY

On April 11, 2001, ITEC formed a wholly owned subsidiary and incorporated it as
a Delaware corporation known as ECO2 Environmental Systems. The only activity
to date was the registration of a trademark by the subsidiary.









                                       16


<PAGE>


Item 2.  Management's Discussion and Analysis or Plan of Operation

The Company's plans for the next twelve months are two-fold. The first is to
continue marketing and selling the ECO2 cleaning system. The second is opening a
plastic recycling plant in Stanislaus County, California.

As of March 31, 2003 the Company does not have sufficient cash or lines of
credit for the next twelve months but is in the process of raising funds through
a series of offerings. Through these offerings the Company expects to have
sufficient cash or lines of credit to satisfy its needs for the twelve months
ending March 31, 2004.

Manufacture and delivery of ECO2 systems continue on schedule and are expected
to meet Company goals.

The Company, has purchased, leased or made other arrangements for all equipment
necessary for the plastic recycling plant in California and with the opening of
this plant the Company is expected to increase its employee base significantly.
The Company is also entering into a long-term lease of a building for this
project.


ITEM 3.  Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer (the "Certifying
Officers") are responsible for establishing and maintaining disclosure controls
and procedures for the Company.

The Certifying Officers have designed such disclosure controls and procedures to
ensure that material information is made known to them, particularly during the
period in which this report was prepared.

The Certifying Officers have evaluated the effectiveness of the Company's
disclosure controls and procedures within 90 days of the date of this report and
believe that the Company's disclosure controls and procedures are effective
based on the required evaluation. There have been no significant changes in
internal controls or in other factors that could significantly affect internal
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.


                                     PART II

Item 1.  Legal Proceedings

In early 2003 the Company filed a lawsuit  against  Fedegari  Autoklaven
A.G. for fraud,  breach of contract and unfair  business  practices.  This legal
proceeding was filed in California Superior Court for Stanislaus County. Service
was effected on the defendant in April 2003 and as of the date of this report no
response has been received.


                                       17
<PAGE>

Item 2.  Changes in Securities and Use of Proceeds

RECENT SALES OF UNREGISTERED SECURITIES. Pursuant to a Regulation S Stock
Purchase Agreement dated, December 20, 2001 (the "Agreement"), between the
Company and Starz Investments Limited, a Belize international Business company
("Starz"), the Company agreed to sell and Starz agreed to use its best efforts
to purchase up to 5,000,000 shares of the Company's common stock, at a purchase
price equal to 35% of the bid price of the Company's shares as quoted on the OTC
Bulletin Board for the five consecutive trading days immediately preceding the
date of a purchase order received by the Company. As of December 31, 2002 an
aggregate of 5,016,508 shares had been purchased under the Agreement by foreign
designees of Starz and the Company had received net proceeds of $1,194,000 or
$.24 per share.

Pursuant to a similar Regulation S Stock Purchase Agreement dated July 26, 2002,
(the "Second Agreement") between the Company and Starz. The Company agreed to
sell and Starz agreed to use its best efforts to purchase up to 7,500,000 shares
of the Company's common stock, at a purchase price equal to 35% of the bid price
of the Company's shares as quoted on the OTC Bulletin Board for the five
consecutive trading days immediately preceding the date of a purchase order
received by the Company. As of December 31, 2002 an aggregate of 7,033,242
shares had been purchased under the Second Agreement by foreign designees of
Starz and the Company had received net proceeds of $327,000 or $.05 per share.

Pursuant to a similar Regulation S Stock Purchase Agreement dated December 15,
2002, (the "Third Agreement") between the Company and Starz, the Company agreed
to sell and Starz agreed to use its best efforts to purchase up to 7,000,000
shares of the Company's common stock, at a purchase price equal to 35% of the
bid price of the Company's shares as quoted on the OTC Bulletin Board for the
five consecutive trading days immediately preceding the date of a purchase order
received by the Company. As of March 31, 2003 an aggregate of 2,000,000 shares
had been purchased under the Third Agreement by foreign designees of Starz and
the Company had received net proceeds of $70,000 or $.03 per share. Under the
terms of these Agreements, Starz has the right to require the Company to include
the shares in any registration statement under the Act filed by the Company
after a period of one year from the date of purchase of such shares. All costs
in connection with such registration are to be paid by the Company. The Company
claims the exemption from registration of these transactions afforded by
Regulation S under the Act in that all sales of the shares were made in
"off-shore transactions" to persons who are not U.S. persons. No "directed
selling efforts" were engaged in by either the Company or Starz and Starz made
other representations and entered into other agreements consistent with the
provisions of Regulation S. The funds raised were used for working capital and
capital projects.

In the third quarter of 2002 the Board authorized the issuance of up to
20,000,000 shares under S-8 filings for Employee Stock Option Plan and services
performed for the Company. 1,300,000 shares were issued in February 2003 for
services rendered. At the issuance date the Company's stock was trading in the
range of $0.04 to $0.07 with a five-day average of $0.05 per share. The discount
allowed was set at 15% resulting in a valuation of $0.05 per share.


                                       18
<PAGE>


Item 3.  Defaults Upon Senior Securities   (None)


Item 4.  Submission of Matters to a Vote of Security Holders   (None)


Item 5.  Other Information   (None)


Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits

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

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

(b)   Reports on Form 8-K:  None


                                       19
<PAGE>


                                   SIGNATURES

     In accordance with the requirements of the Exchange Act, the Company caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


Dated:  May 22, 2003            ITEC ENVIRONMENTAL GROUP, INC.
                                     (Registrant)


                                 BY  /s/ Gary M. De Laurentiis
                                     -------------------------
                                     Gary M. De Laurentiis
                                     Chief Executive Officer


                                 BY  /s/ Michael E. Hofmann
                                     -------------------------
                                     Michael E. Hofmann
                                     Chief Financial Officer


                                     20


<PAGE>
CERTIFICATION

I, Gary M. De Laurentiis, Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Itec Environmental
Group, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date: May 22, 2003
                                 BY  /s/ Gary M. De Laurentiis
                                     -------------------------
                                     Gary M. De Laurentiis
                                     Chief Executive Officer

                                       21
<PAGE>
CERTIFICATION

I, Michael E. Hofmann, Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Itec Environmental
Group, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date: May 22, 2003
                                 BY  /s/ Michael E. Hofmann
                                     -------------------------
                                     Michael E. Hofmann
                                     Chief Financial Officer

                                       22