| LASERRECORDING SYSTEMS, INC.                                  |
|---------------------------------------------------------------|
| (Exact name ofregistrant as specified in its Charter)         |
|                                                               |  |
| NEWJERSEY                                                     | 22-2582847 |
| (State orOther Jurisdiction of Incorporation or Organization) | (I.R.S.Employer Identification No.) |
|                                                               |  |
| 1359 New YorkAvenue                                           |  |
| HuntingtonStation, New York                                   | 11746 |
| (Address ofPrincipal Executive Offices)                       | (ZipCode) |
|                                                               |  |
| (800)786-1352                                                 |
| (Registrant'sTelephone Number, Including Area Code)           |

| LASER RECORDING SYSTEMS, INC.                                                                                             |
|------------------------------------------------------------------------------------------------------------------------------------------|
| BALANCE SHEET                                                                                                                       |
|                                                                                                                                          |  |  |  |
|                                                                                                                                          |  |  |  |
| ASSETS                                                                                                                                   |  |  |  |
|                                                                                                                                          | April 30, 2002 |  | Januuary 31, 2002 |
| CURRENT ASSETS:                                                                                                                     |  |  |  |
| Cash and Cash Equivalents                                                                                                 |  $          945 |  | $4,255 |
| Total Current Assets                                                                                                           |  $          945 |  | $4,255 |
| Total Assets                                                                                                                        |  $          945 |  | $4,255 |
|                                                                                                                                          |  |  |  |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                      |
| CURRENT LIABILITIES                                                                                                                 |  |  |  |
| Accrued Expenses                                                                                                                    |                  - |  |        791 |
| Total Current Liabilities                                                                                                      | - |  | $791 |
| Loan Payable -- Stockholder                                                                                               | $       25,000 |  | $25,000 |
| Total Current Liabilities                                                                                                      | $       25,000 |  | $25,791 |
|                                                                                                                                          |  |  |  |
| Stockholders' Equity                                                                                                                |  |  |  |
| Common Stocks - 10,000,000 shares authorized,  10,000,000 issued and outstanding  |       7,408,910 |  | $7,408,910 |
|  Paid-in Capital                                                                                                               | 1,400 |  | 1,400 |
| Retained Earnings                                                                                                                   | (7,434,365) |  | (7,431,846) |
|         Total Stockholders' Equity                                                     | $    (24,055) |  | $    (21,536) |
| Total Liabilities and Stockholders' Equity                                                                           | $           945 |  | $        4,255 |
|                                                                                                                                          |  |  |  |
|                                                                                                                                          |  |  |  |
| The accompanying notes are an integral part of the financial statements.               |

| LASER RECORDING SYSTEMS, INC.                                                                               |
|----------------------------------------------------------------------------------------------------------------------------|
| STATEMENT OF REVENUES, EXPENSES AND RETAINED EARNINGS                                        |
|                                                                                                                            |
|                                                                                                                            | Three Months Ended |  |  |
|                                                                                                                            | April 30 |  |  |
|                                                                                                                            | 2002 |  | 2001 |  |  |  |  |
| Revenues:                                                                                                                  |  |  |  |  |  |  |  |
|                                                                                                                            |  |  |  |  |  |  |  |
| Interest Income                                                                                                       | $          - |  | $         - |  |  |  |  |
| Total Revenues                                                                                                        | $          - |  | $         - |  |  |  |  |
|                                                                                                                            |  |  |  |  |  |  |  |
| Expenses:                                                                                                                  |  |  |  |  |  |  |  |
|                                                                                                                            |  |  |   |  |  |  |  |
| Administrative Expenses                                                                                               | $    2,468 |  | $     2,471 |  |  |  |  |
| Taxes                                                                                                                      |          50 |  |          54 |  |  |  |  |
| Total Expenses                                                                                                        | $   2,518 |  | $  2,525 |  |  |  |  |
| Net Loss                                                                                                              | $(2,518) |  | $(2,525) |  |  |  |  |
| Net loss per share                                                                                          | $   (0.00) |  | $  (0.00) |  |  |  |  |
| Shares used in computing net loss per share                                             | 10,000,000 |  | 10,000,000 |  |  |  |  |
|                                                                                                                            |  |  |  |  |  |  |  |
| The accompanying notes are an integral part of the financial statements. |

| LASER RECORDING SYSTEMS, INC.                                                                               |
|----------------------------------------------------------------------------------------------------------------------------|
| STATEMENT OF CASH FLOWS                                                                                     |
| For the Three Months Ended                                                                             |
| April 30                                                                                                              |
|                                                                                                                            |  |  |  |
|                                                                                                                            | 2002 |  | 2001 |
| Cash flows from operating activities:                                                                  |  |  |  |
| Net Loss                                                                                                              | $            -  |  |  $          -  |
|                                                                                                                            |  |  |  |
| Cash flows from financing activities:                                                                  |  |  |  |
| Loan from Shareholder                                                                                            | - |  | 4,000 |
| Capital Contribution                                                                                                  |  |  | 1,400 |
| Accrued Expenses                                                                                                      |   (791) |  | (200)  |
| Maintaining the Corporate Entity                                                                            |    (2,518) |  |    (2,525) |
| Net cash provided by (used in) financing activities                                     | $ (3,309) |  | $ (1,275) |
|                                                                                                                            |  |  |  |
|                                                                                                                            |  |  |  |
| Increase (Decrease) in Cash                                                                                 |  $(3,309) |  | $ (1,275) |
| Cash -- Beginning of Period                                                                            |      4,254 |  |      2,023 |
| Cash -- End of Period                                                                                  | $      945 |  | $   3,298 |
|                                                                                                                            |  |  |  |
| The accompanying notes are an integral part of the financial statements. |

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