UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-QSB

(Mark one)
[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended June 30, 2002

[   ]    TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934
                  For the transition period from _________ to ___________


                     AMERICAN SPORTS DEVELOPMENT GROUP, INC.
                     ---------------------------------------
        (Exact name of small business issuer as specified in its charter)

                        Commission File Number 0 - 26943


Delaware                                                      95-4695878
--------                                                      ----------
(State or other jurisdiction of incorporation) (IRS Employer Identification No.)

155 Verdin Road, Greenville, SC                               29607
-------------------------------                               -----
(Address of principal executive offices)                      (Zip Code)

       Registrant's telephone number, including area code: 864-458-7221


                           American Inflatables, Inc.
                    947 Newhall Street, Costa Mesa, CA 92627
                    ----------------------------------------
         (Former Name and Former 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 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___________


                      APPLICABLE ONLY TO CORPORATE ISSUERS

As of June 30,  2002 there were  61,806,737  shares of the  Registrant's  common
stock, $.001 par value per share, issued and outstanding.



<PAGE>


                     AMERICAN SPORTS DEVELOPMENT GROUP, INC.

                                      INDEX

                                                                       Page No.
                                                                       --------
PART  I. FINANCIAL INFORMATION                                                 1

  Item 1.  Financial Statements:                                               1

           Consolidated Balance Sheet at June 30, 2002 and
           December 31, 2001                                                   1

           Consolidated Statements of Income for the Three and Six Months
           Ended June 30, 2002 and June 30, 2001                               2

           Consolidated Statement of Cash Flows for the Three and Six
           Months Ended June 30, 2002 and June 30, 2001                        4

           Notes to Consolidated Financial Statements                          5

  Item 2.  Management's Discussion and Analysis of Financial Condition
           and results of Operations                                           8


PART  II OTHER INFORMATION                                                    12

   Item 1.  Legal Proceedings                                                 12

   Item 2.  Changes in Securities                                             12

   Item 6.  Exhibits and Reports on Form 8-K                                  13





                                       i
<PAGE>


PART I.  FINANCIAL INFORMATION.

ITEM 1.  FINANCIAL STATEMENTS.


            AMERICAN SPORTS DEVELOPMENT GROUP, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                        June 30, 2002           December 31, 2001
                                                         (unaudited)
                              ASSETS
<S>                                                     <C>                     <C>
Current Assets:
Cash and Cash Equivalents                                $   322,658            $     304,239
Accounts receivable                                        1,811,529                2,607,121
Other Receivables- employees                                  33,187                   27,247
Recoverable income taxes                                     110,469                   84,419
Note receivable                                                    0                   30,000
Loans receivable- related parties                             20,000                   95,554
Prepaid and other current assets                              18,948                  150,360
Inventory                                                  2,692,304                2,311,065
                                                  -------------------------------------------------
Total Current Assets                                       5,009,095                5,610,005

Property and Equipment-net of accumulated
  depreciation and amoritzation of $682,778 and
  $579,578, respectively                                     576,757                  601,864
Goodwill, net of accumulated amortization of
  $69,952 and $69,952, respectively                        2,107,389                  529,112
Other intangibles,net of accumulated amortization
  of $31,600 and $25,350, respectively                       505,900                  241,150

 Other assets                                                 66,515                   53,060
                                                  -------------------------------------------------
                           TOTAL ASSETS                  $  8,265,656           $   7,035,191
                                                  =================================================

               LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
Bank line of credit                                         1,066,073               1,086,074
Accounts payable and accrued expenses                       4,110,975               4,164,863
Due to affiliate                                              241,257                 247,577
Notes payable-current portion                                 458,908                 649,876
                                                  --------------------------------------------------
Total Current Liabilities                                   5,877,213               6,148,390

Notes payable,less current portion                             13,184                  64,924

                         TOTAL LIABILITIES                  5,890,397               6,213,314


                       STOCKHOLDERS' EQUITY
Note receivable                                              (150,000)
Preferred stock-0 par value , authorized 20,000,000 shares,
Common Stock - $.001 par value,  authorized 100,000,000
  shares, 5,948,295 shares and 61,806,737 shares
  issued and outstanding at December 31, 2001 and
  June 30, 2002, respecitively                                  61,807                  5,948
Additional Paid-In Capital                                   1,962,381                216,485
Retained Earnings                                              501,071                599,444
                                                  ---------------------------------------------------
Total Stockholders' Equity                                   2,375,259                821,877
                                                  ---------------------------------------------------

  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                $ 8,265,656           $ 7,035,191
                                                  ===================================================
</TABLE>

  See accompanying notes to consolidated financial statements.

                                       1
<PAGE>



         AMERICAN SPORTS DEVELOPMENT GROUP, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                       FOR THE THREE MONTHS ENDED JUNE 30,
                                   (unaudited)

<TABLE>
<CAPTION>

                                                                     2002              2001
                                                                     ----              ----
<S>                                                     <C>                     <C>

Net sales                                                 $    5,503,811        $    6,427,437
Cost of sales                                                  4,390,878             5,304,749
                                                         ---------------------------------------
Gross profit                                                   1,112,933             1,122,688

Selling, general and administrative expenses                   1,260,342             1,123,991

                                                         ---------------------------------------
Income (loss) from operations                                   (147,409)               (1,303)

Other income (expense):
  Interest expense, net                                          (24,165)              (32,195)
  Other income                                                    11,155                 1,000

                                                         ----------------------------------------
Income (loss) before income taxes                                (160,419)             (32,498)

Income tax expense (benefit)                                      (39,938)             (12,002)
                                                         ----------------------------------------

Net income (loss)                                         $      (120,481)      $      (20,496)
                                                         ========================================

Net income (loss) per common share
                                                         -----------------------------------------
  Basic and diluted                                       $         (0.00)      $        (0.00)
                                                         =========================================

                                                         -----------------------------------------
Weighted average shares outstanding                             33,322,959             5,948,295
                                                         =========================================
</TABLE>

  See accompanying notes to consolidated financial statements.


                                       2
<PAGE>

                        CONSOLIDATED STATEMENTS OF INCOME
                        FOR THE SIX MONTHS ENDED JUNE 30,
                                   (unaudited)
<TABLE>
<CAPTION>



                                                                2002                       2001
                                                                ----                       ----
<S>                                                     <C>                     <C>

Net sales                                                 $     11,539,947      $     12,794,963
Cost of sales                                                    9,204,169            10,403,851
                                                         -----------------------------------------
Gross profit                                                     2,335,778             2,391,112

Selling, general and administrative expenses                     2,435,722             2,142,814

                                                         ------------------------------------------
Loss from operations                                               (99,944)              248,298

Other income (expense):
  Interest expense, net                                            (43,687)              (64,608)
  Other income                                                      19,208                 1,000

                                                         -------------------------------------------
Income (loss) before income taxes                                 (124,423)              184,690

Income tax expense (benefit)                                       (26,050)               70,977

                                                         --------------------------------------------
Net income (loss)                                         $        (98,373)     $        113,713
                                                         ============================================

Net income (loss) per common share
                                                         ---------------------------------------------
  Basic and diluted                                       $          (0.00)     $           0.02
                                                         =============================================

                                                         ---------------------------------------------
Weighted average shares outstanding                              39,271,254             5,948,295
                                                         =============================================

  See accompanying notes to consolidated financial statements.

</TABLE>



                                       3
<PAGE>

            AMERICAN SPORTS DEVELOPMENT GROUP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                        FOR THE SIX MONTHS ENDED JUNE 30,
                                   (unaudited)
<TABLE>
<CAPTION>

                                                               2002                      2001
                                                               ----                      ----
<S>                                                   <C>                       <C>
Cash flows from operating activities:
Net income (loss)                                      $    (98,373)            $      113,713
Adjustments  to reconcile  Net income  (loss)
to net cash  provided by operating activities:
  Depreciation and amortization                             110,926                   120,536
  Bad debt expense                                           25,961                    42,882

  (Increase) decrease in accounts receivable                769,631                  (502,786)
  Increase in other receivables                              (5,940)                 (101,041)
  (Increase) decrease in recoverable income taxes           (26,050)                    3,862
  (Increase) decrease in inventory                         (368,467)                   23,676
  Decrease in prepaid expenses                              167,546                    49,732
  Decrease in due from affiliates                            75,554                      -
  Increase in other assets                                  (11,231)                  (28,000)
  Increase (decrease) in accounts payable and
  accrued expneses                                         (453,889)                  284,430
  Increase (decrease) in due to affiliate                    (6,320)                   18,472
  Increase in income taxes payable                              -                      66,938


                                                  -------------------------------------------
Total cash provided by operating activities                 179,348                    92,414

Cash flows from investing activities:
  Purchase of fixed assets                                   (7,221)                     -
  Cash paid for acquisition                                     -                     (41,230)
  Acquisition of domain name                                (21,000)                  (69,000)
  Decrease in notes receivable                              130,000                      -
  Goodwill from acquisition
  Intangible asset from acquisition

                                                  --------------------------------------------
Net cash from (used by) investing activities                101,779                  (110,230)

Cash flows from financing activities:
  Proceeds under bank line of credit                      3,779,000                   271,244
  Payments under bank line of credit                     (3,799,000)                 (202,125)
  Repayment of notes payable                               (242,708)                     -
  Issuance of stock for acquisition

                                                   --------------------------------------------
Net cash (used) provided by financing activities           (262,708)                   69,119


Net increase in cash and cash equivalents                    18,419                    51,303
Cash and cash equivalents - beginning of period             304,239                   241,787
                                                   ---------------------------------------------
Cash and cash equivalents -end of period                 $  322,658             $     293,090
                                                   =============================================

Supplemental disclosure of cash flow information:
Cash paid during period for:
  Interest                                               $   44,192                    50,774
  Income taxes                                           $     -                         -

</TABLE>

  See accompanying notes to consolidated financial statements.





                                       4
<PAGE>


                        AMERICAN SPORTS DEVELOPMENT GROUP
         NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
                                  JUNE 30, 2002


NOTE 1.           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The accompanying  unaudited interim financial statements include the accounts of
American  Sports  Development  Group,  Inc.,  American  Inflatables,  Inc.,  and
Subsidiaries (the Company),  incorporated under the law of the state of Delaware
on August 5, 1998. All significant  intercompany  accounts and transactions have
been eliminated in consolidation.

LINE OF BUSINESS

The Company is primarily a  wholesaler  of  equipment  and supplies  used in the
paintball  game  industry.  Sales are made to  retailers  throughout  the United
States,  as well as Europe.  The  company  owns and  operates  retail  stores in
Greenville,  SC, Paramount,  CA and Irving, TX. The Company also owns ILM, Inc.,
an independent insurance agent representing several insurance  companies/brokers
who insure mostly paintball fields, stores, distributors and manufacturers.  ILM
is also a wholesaler of paintball related soft goods products. In addition,  the
company's  subsidiary  American  Inflatables,   Inc.  manufactures  and  markets
inflatable products used for advertising  purposes by a wide array of retail and
industrial customers. (See "Acquisition" below.)

INTERIM FINANCIAL INFORMATION

The accompanying  unaudited interim  financial  statements have been prepared by
the Company in accordance with generally accepted accounting principles pursuant
to Regulation S-K of the Securities and Exchange Commission. Certain information
and  footnote  disclosures  normally  included in audited  financial  statements
prepared in accordance with generally accepted  accounting  principles have been
condensed or omitted. Accordingly,  these interim financial statements should be
read in conjunction with the Company's audited financial  statements and related
notes for the year ended December 31, 2001, as contained in the Company's report
on Form 10-QSB filed with the  Securities  and Exchange  Commission on April 16,
2002 and in conjunction with the audited financial  statements and related notes
for the year ended  December 31, 2001 of the Company's  wholly-owned  subsidiary
Paintball  Incorporated  (formerly known as American Sports  Development  Group,
Inc. and National Paintball Supply Company,  Inc.) as contained in the Company's
report on Form 8-K/A filed with the Securities  and Exchange  Commission on July
31, 2002. In the opinion of the management of the Company, the interim unaudited
financial  statements  reflect  all  adjustments,   including  normal  recurring
adjustments, necessary for a fair presentation of the interim periods presented.
The results of  operations  for the three and six month  periods  ended June 30,
2002 are not necessarily  indicative of results of operations to be expected for
the full year.

                                       5
<PAGE>

REVENUE RECOGNITION

The Company recognizes  revenue upon shipment of its products.  Revenue includes
shipping and handling charges to customers.  Revenues from broker commission and
association dues are recognized when premiums are billed to clients.

NOTE 2.           NOTE RECEIVABLE

In September 2001, the Paintball  Incorporated  entered into an agreement with a
competitor to sell the "National Paintball Supply" and other logos for $300,000.
At December 31, 2001 the balance due Paintball  Incorporated was $30,000,  which
was received during the first quarter of 2002.

NOTE 3.           ACQUISITION

On May 17, 2002, the Company (then known as American Inflatables, Inc.) acquired
American Sports Development Group, Inc., a South Carolina  corporation  formerly
known as National Paintball Supply Company, Inc.  ("Paintball").  For accounting
purposes,  the  transaction  was  treated as the  acquisition  of the Company by
Paintball in a reverse acquisition.  Inflatables issued 50,612,159 shares of its
common stock,  or 83% of the total  outstanding  shares on a fully diluted basis
after the issuance,  to the three  shareholders  of Paintball for all the issued
and outstanding  shares of Paintball  making Paintball a wholly owned subsidiary
of the Company.

In June 2002,  after the reverse  acquisition,  the Company was  restructured as
follows:

     (1)  Paintball's  wholly-owned subsidiary Paintball Incorporated was merged
          into Paintball  with  Paintball as the surviving  company but with its
          name  changed  from  "American  Sports  Development  Group,  Inc."  to
          "Paintball Incorporated";

     (2)  The Company  changed  its name from  "American  Inflatables,  Inc." to
          "American Sports  Development Group, Inc." by means of a merger with a
          wholly owned shell subsidiary  formed for the purpose of effecting the
          name change; and

     (3)  The  Company  formed  a  new  Delaware   subsidiary   named  "American
          Inflatables,  Inc." and  transferred the assets and liabilities of its
          pre-acquisition  inflatable  advertising  business  down  to  the  new
          subsidiary.

The result was that the  Company  survived as the parent  company  with the name
"American Sports  Development  Group,  Inc." and with two wholly owned operating
subsidiaries:  (1) Paintball,  a South  Carolina  corporation  named  "Paintball
Incorporated," conducting the paintball gaming business and (2) the new American
Inflatables, Inc., a Delaware corporation, conducting the inflatable advertising
business.  The  Company's  stock  symbol was also  changed from "BLMP" to "ASDP"
(sic).

                                       6
<PAGE>

The Company has assigned a value of $1,801,747 to this acquisition, based on the
publicly  quoted fair value of its common stock.  In accordance with EITF 99-12,
this value was calculated using the average closing stock price of the Company's
common  stock for the five day period  beginning  two days before and ending two
days after the arrangement  date of April 11, 2002, when all material aspects of
the transaction were agreed to by all parties.

The excess of the purchase price over the fair value of the net assets  acquired
is estimated to total  $1,828,278.  Of this amount,  $250,000 has been accounted
for as an intangible asset representing the fair value of custom design patterns
and customer  lists,  and will be amortized over its remaining  useful life of 5
years.  The remaining  $1,578,278 has been  classified as Goodwill and its value
will be tested for impairment at least  annually.  The Company has accounted for
this transaction as a purchase as of the date of acquisition.

NOTE 4.           PRO FORMA FINANCIAL INFORMATION

The following summarized  unaudited pro forma financial  information assumes the
acquisition  described  in Note 3 above had occurred on January 1 of each of the
periods presented.  The summarized unaudited pro forma financial  information is
provided for  informational  purposes only and is not necessarily  indicative of
actual results that would have been realized had the acquisition occurred at the
assumed dates and is not necessarily indicative of future results. The following
summarized  unaudited  pro forma  financial  information  does not  reflect  any
potential  benefits  from cost  savings or  synergies  expected  to be  realized
following the acquisition.

                                                          Six Months Ended
                                              June 30, 2002       June 30, 2001
                                              -------------       -------------

Sales                                          $12,010,649          $13,697,363
Income from continuing operations                 (431,864)             183,998
Net income                                        (445,476)              32,913
Net income per share - basic and diluted             (0.01)                0.00




NOTE 5.           RECENT ACCOUNTING PRONOUNCEMENTS

In June 2001, SFAS 141 "Business  Combinations" and SFAS 142 "Goodwill and Other
Intangible Assets" were issued. SFAS 141 requires that all business combinations
initiated  after June 20, 2001 be accounted  for using the  purchase  method and
that  identifiable  intangible  assets  acquired  in a business  combination  be
recognized as an asset apart from goodwill if they meet certain criteria.

SFAS 142 applies to all goodwill and identified  intangible assets acquired in a
business combination. The new standard requires that all goodwill and indefinite
lived intangible assets,  including those acquired before initial application of

                                       7
<PAGE>

SFAS  142,  not be  amortized  systematically  but will  rather  be  tested  for
impairment at least  annually.  SFAS 142 is effective for fiscal years beginning
after  December  15,  2001.  The Company  has not  recorded  expense  related to
goodwill  amortization for the three and six months ended June 30, 2002. For the
three and six months ended June 30, 2001, the Company  recorded  expense related
to the amortization of goodwill of $7,335 and $14,635, respectively.

ITEM 2. MANAGEMENTS  DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS
        OF OPERATIONS.

Statements  in this  report  that are not  reported  financial  results or other
historical  information are  "forward-looking  statements" within the meaning of
the Private Securities  Litigation Act of 1995. Such statements include, but are
not limited to, statements concerning the Company's future plans and strategies,
prices  of  the  Company's  products,   levels  of  demand  for  such  products,
assessments  of  market   conditions  and  capital  spending  plans.  The  words
"estimate", "project",  "anticipate",  "expect", "intend", "believe" and similar
expressions are intended to identify forward-looking  statements.  These forward
looking  statements are  management's  estimates and involve  numerous risks and
uncertainties  and can cause  actual  results  to differ  materially  from those
expressed  or  implied  in  the   forward-looking   statement.   The  risks  and
uncertainties relating to the forward-looking statements in this report include,
but are not limited to, difficulties in assimilating its recent acquisition, the
Company's  dependence upon its Chief Executive  Officer,  competitive  pressures
within the industry,  concentration  of voting  control of the Company's  common
stock, lack of an established market for the Company's common stock and the need
for additional  capital to be raised for future  expansion,  and those described
under the caption "Cautionary Statement Regarding  Forward-Looking  Information"
in the Company's  annual  report on Form 10-KSB for the year ended  December 31,
2001 and from time to time, in the Company's  other filings with the  Securities
and Exchange  Commission.  The Company does not undertake  publicly to update or
revise  the  forward-looking  statements  even  if it  becomes  clear  that  any
projected results will not be realized.

RESULTS OF OPERATIONS

         SIX MONTHS ENDED JUNE 30, 2002 VERSUS JUNE 30, 2001

The  Company's  results of  operations  for the six months  ended June 30,  2002
include the results of  operations  of American  Inflatables,  Inc.(Inflatables)
from the date of acquisition,  May 17, 2002,  through June 30, 2002.  Results of
operations  for the same  period of the prior year do not  include any effect of
this acquisition.  See "Acquisitions" below and in the accompanying notes to the
consolidated financial statements.

During the six months  ended  June 30,  2002,  the  Company's  sales  (excluding
Inflatables)  declined $1,378,853 compared to the same period of the prior year.
This decrease is partially  attributable to high levels of industry  competition
and resulting  pressure on product prices.  This  competitive  pressure is noted
most  particularly  among commodity  products such as paintballs and to a lesser
extent among markers (paintball guns) and accessories.  In addition, the Company
shipped  approximately  $2,151,000  less of  paintball  products  to The  Sports

                                       8
<PAGE>

Authority,  Inc.  during the first six months of 2002 compared to the first half
of 2001 due to disagreements in payment policies.  Partly offsetting the drop in
sales was an increase in gross  margin from 18.6% during the first six months of
2001 to 20% during the same period in 2002,  due in part to the above  mentioned
lack of lower margin shipments to The Sports Authority, Inc.

Selling,  general and administrative costs (excluding  Inflatables) increased by
$176,813  during the first six  months of 2002  compared  to the same  period of
2001. This increase is attributable  primarily to higher legal and  professional
fees  incurred  in  2002  related  to  the  Company's  reverse   acquisition  of
Inflatables  during the second quarter of 2002. SG&A expenses  represented  20.3
percent  of  sales in 2002  compared  to 16.7  percent  of  sales  during  2001,
reflecting both the higher level of expense and the lower sales level during the
first half of 2002 compared to the first half of 2001.

Interest  expense  for the  first  six  months  of 2002  declined  approximately
$21,000, or 32 percent,  compared to the first six months of the prior year, due
mainly to lower interest rates on the Company's bank line of credit.

A benefit for income taxes  recoverable,  based on the pre-tax  loss  (excluding
Inflatables)  has been  provided at  statutory  rates.  No such benefit has been
provided for  Inflatables  since the  realization of future earnings to absorb a
tax loss carryforward is uncertain at this time.

         THREE MONTHS ENDED JUNE 30, 2002 VERSUS JUNE 30, 2001

The  Company's  results of  operations  for the three months ended June 30, 2002
include the results of operations of American  Inflatables,  Inc.  (Inflatables)
from the date of acquisition,  May 17, 2002,  through June 30, 2002.  Results of
operations  for the same  period of the prior year do not  include any effect of
this acquisition.  See "Acquisitions" below and in the accompanying notes to the
consolidated financial statements.

Sales for the three months ended June 30, 2002 (excluding  Inflatables) declined
by  $1,047,463,  or 16 percent  compared  to the same  period  last  year.  This
decrease  resulted from high levels of competitive  pressure on product  pricing
and the  Company's  decision to not pursue  further  sales in 2002 to The Sports
Authority,  Inc. due to  disagreements  in payment  policies.  During the second
quarter of 2002, the Company  shipped  approximately  $1,564,000 less product to
this customer than during the same period last year.

Much of the sales  shortfall  in the first three months of 2002 was offset by an
increase in gross margins (excluding Inflatables) to 19.7% in the second quarter
of 2002 from 17.5% in the same period last year.

Selling,  general and administrative costs (excluding  Inflatables) increased by
$20,256  during the second  quarter of 2002 compared to the same period of 2001.
This increase is attributable  primarily to higher legal and  professional  fees
incurred in 2002 related to the Company's  reverse  acquisition  of  Inflatables
during the second  quarter of 2002.  SG&A expenses  represented  21.3 percent of

                                       9
<PAGE>

sales in the second  quarter of 2002  compared to 17.5  percent of sales  during
2001's second quarter, reflecting both the higher level of expense and the lower
sales level  during the second  quarter of 2002  compared to the same quarter of
2001.

Interest expense, net for the second quarter of 2002 declined $8,030 compared to
the same  period  last  year,  due  mainly  to lower  rates of  interest  on the
company's bank line of credit.

A benefit for income taxes  recoverable,  based on the pre-tax  loss  (excluding
Inflatables)  has been  provided at  statutory  rates.  No such benefit has been
provided for  Inflatables  since the  realization of future earnings to absorb a
tax loss carryforward is uncertain at this time.

ACQUISITION

On May 17, 2002, the Company (then known as American Inflatables, Inc.) acquired
American Sports Development Group, Inc., a South Carolina  corporation  formerly
known as National Paintball Supply Company, Inc.  ("Paintball").  For accounting
purposes,  the  transaction  was  treated as the  acquisition  of the Company by
Paintball in a reverse acquisition.  Inflatables issued 50,612,159 shares of its
common stock,  or 83% of the total  outstanding  shares on a fully diluted basis
after the issuance,  to the three  shareholders  of Paintball for all the issued
and outstanding  shares of Paintball  making Paintball a wholly owned subsidiary
of the Company.

In June 2002,  after the reverse  acquisition,  the Company was  restructured as
follows:

(1)  Paintball's  wholly-owned subsidiary Paintball Incorporated was merged into
     Paintball with Paintball as the surviving company but with its name changed
     from "American Sports Development Group, Inc." to "Paintball Incorporated";

(2)  The Company changed its name from "American Inflatables, Inc." to "American
     Sports  Development  Group,  Inc." by means of a merger with a wholly owned
     shell subsidiary formed for the purpose of effecting the name change; and

(3)  The  Company  formed  a new  Delaware  subsidiary  named
     "American Inflatables,  Inc." and transferred the assets and liabilities of
     its  pre-acquisition  inflatable  advertising  business  down  to  the  new
     subsidiary.

The result was that the  Company  survived as the parent  company  with the name
"American Sports  Development  Group,  Inc." and with two wholly owned operating
subsidiaries:  (1) Paintball,  a South  Carolina  corporation  named  "Paintball
Incorporated," conducting the paintball gaming business and (2) the new American
Inflatables, Inc., a Delaware corporation, conducting the inflatable advertising
business.  The  Company's  stock  symbol was also  changed from "BLMP" to "ASDP"
(sic).

The Company has assigned a value of $1,801,747 to this acquisition, based on the
publicly  quoted fair value of its common stock.  In accordance with EITF 99-12,
this value was calculated using the average closing stock price of the Company's
common  stock for the five day period  beginning  two days before and ending two
days after the arrangement  date of April 11, 2002, when all material aspects of
the transaction were agreed to by all parties.

                                       10
<PAGE>

The excess of the purchase price over the fair value of the net assets  acquired
is estimated to total  $1,828,278.  Of this amount,  $250,000 has been accounted
for as an intangible asset representing the fair value of custom design patterns
and customer  lists,  and will be amortized over its remaining  useful life of 5
years.  The remaining  $1,578,278 has been  classified as Goodwill and its value
will be tested for impairment at least  annually.  The Company has accounted for
this transaction as a purchase as of the date of acquisition.

As noted above,  the results of operations  for the second quarter and the first
six months of 2002 include  those of  Inflatables  from the date of  acquisition
(May 17,  2002) to the end of the period,  while no such results are included in
the comparable  periods of 2001.  Inflatables  sales since its acquisition  were
approximately $124,000 and it incurred a net loss of approximately $57,000.

Since  May 17,  2002,  the  Company  has  taken  steps to  improve  Inflatables'
financial  results.  Inflatables has historically  generated sales through leads
obtained at various industrial trade shows. In a revamping of Inflatables' sales
strategy,  the Company has shifted its marketing emphasis to more cost effective
methods of generating sales, such as advertising in industry trade magazines and
the use of the  Company's  broadcast  fax  capabilities.  The  Company  has also
restructured  Inflatables'  management,  reduced  overhead  and  invested in new
productivity  software.  In  addition,  the Company has recently  completed  the
transfer of  Inflatables'  manufacturing  operations  from  California  to South
Carolina.

LIQUIDITY AND CAPITAL RESOURCES

The Company  has  historically  satisfied  its  capital  requirements  through a
combination  of  internally  generated  cash and  borrowings on its bank line of
credit.

During the six months ended June 30,  2002,  the Company  generated  $179,348 in
cash from  operating  activities  compared  to $92,414  for the same period last
year.  Lower  working  capital  requirements,  partly offset by lower results of
operations  in 2002  were  responsible  for the  increase  in cash  provided  by
operations.

Cash flow from  investing  activities  was  favorably  affected in the first six
months of 2002 by the  collection  of $130,000  from two notes  receivable.  The
company  also  recognized  additional  goodwill  and other  intangibles,  net of
$1,578,278  and  $243,750,   respectively,   from  its  reverse  acquisition  of
Inflatables  at May 17, 2002.  The Company  issued stock valued at $1,801,757 in
compensation for the transaction. There was no cash effect from the transaction.

Cash flows from  financing  activities  for the six months  ended June 30,  2002
included payments of notes payable of $242,708 and net payments on the Company's
bank line of credit of $20,000.

The Company  has a  $1,400,000  line of credit with South Trust Bank,  which was
payable  on May 16,  2002.  The line of credit has been  extended  to August 16,

                                       11
<PAGE>

2002.  The line of credit  bears  interest  at prime  rate  payable on a monthly
basis.  At June 30, 2002 and December 31,  2001,  borrowings  under this line of
credit were $1,066,073 and $1,086,074, respectively.

Prior to the Company's  acquisition  of Paintball,  the Company failed to pay to
federal and state taxing  authorities an aggregate of approximately  $317,000 in
payroll income tax withholdings.  As of June 30, 2002, this amount had increased
to  approximately  $322,000  and is  included in the  accompanying  Consolidated
Balance Sheet in "Accounts payable and accrued expenses". The Company intends to
pay these withholdings.

The Company is currently  undergoing a California  state sales tax audit related
to sales  Paintball  made from  Texas.  Final  results of this audit are not yet
known, but the Company estimates its total liability at approximately $100,000.


PART II.

ITEM 1.  LEGAL PROCEEDINGS.

On July 23, 2002, the Company filed suit against The Sports  Authority,  Inc. in
the South  Carolina  Court of Common Pleas in Greenville,  South  Carolina.  The
complaint  alleges that The Sports  Authority,  Inc. (1) conspired  with certain
persons to order paintball markers (guns) from the Company,  falsely claimed the
paintball guns were defective, refused to pay the Company for the paintball guns
and then resold or  otherwise  used the  paintball  guns,  (2) engaged in unfair
trade practices under South Carolina law that damaged and continue to damage the
Company in an amount in excess of  $1,000,000  and (3)  converted  the Company's
property.  The Company seeks actual damages of $1,000,000,  an additional amount
equal to three times actual damages, consequential and incidental damages, costs
and attorney's fees and punitive damages. The parties are in the early stages of
discovery.

ITEM 2.  CHANGES IN SECURITIES.

During the fiscal  quarter ended June 30, 2002,  the Company issued common stock
in  the  transactions  described  below  that  were  not  registered  under  the
Securities Act of 1933, as amended (the "Securities  Act"). The Company believes
that all of the  following  transactions  were  exempt  from  such  registration
pursuant to Section 4(2) of the Securities Act.

1.            On April 1, 2002,  the Company  issued a  convertible  note in the
              principal  amount of $30,000  bearing  interest  at an annual rate
              equal  to10%  that was  convertible  into  200,000  shares  of the
              Company's  common  stock.  The note was issued to Spartan  Limited
              Partnership,  the  general  partner  of  which is an  employee  of
              Paintball Incorporated.  The note was converted in accordance with
              its terms on June 27, 2002.

                                       12
<PAGE>



          2.   On May 16, 2002,  the Company issued 653,232 shares of its common
               stock to Gregg  Mulholland,  the  President  and Chief  Executive
               Officer and a director and substantial shareholder of the Company
               in satisfaction of $206,250 in accrued unpaid salary and $211,819
               of cash advances by Mr. Mulholland to the Company.

          3.   On May 16, 2002,  the Company issued 175,000 shares of its common
               stock to Dale Paisley,  a consultant  who  performed  many of the
               duties ordinarily performed by a chief financial officer prior to
               the  Company's  acquisition  of  Paintball,  in  satisfaction  of
               $100,000 of accrued payables owed to Mr. Paisley.

          4.   On May 16, 2002,  the Company issued 100,000 shares of its common
               stock to Jeff Jacobson,  the Company's  chief  operating  officer
               prior to the Company's acquisition of Paintball,  in satisfaction
               of oral  promises  made to Mr.  Jacobson by the  Company's  chief
               executive  officer  prior  to the  Paintball  acquisition,  Gregg
               Mulholland.

          5.   On May 17, 2002, in accordance with the Company's  acquisition of
               Paintball  Incorporated,  the Company issued 50,612,159 shares of
               its common  stock,  or 83% of the total  outstanding  shares on a
               fully diluted basis after the issuance, to the three shareholders
               of  Paintball  for all  the  issued  and  outstanding  shares  of
               Paintball,  making  Paintball a wholly  owned  subsidiary  of the
               Company.



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

(a)  Exhibits

     99.1 Certification  of Chief Executive  Officer  Pursuant to Section 906 of
          the Sarbanes-Oxley Act of 2002.

     99.2 Certification  of Chief Financial  Officer  Pursuant to Section 906 of
          the Sarbanes-Oxley Act of 2002.

(b)  Reports on Form 8-K

     On June 3, 2002,  the Company filed a report on Form 8-K dated May 17, 2002
     reporting  under  Item  2 the  Company's  acquisition  of  American  Sports
     Development  Group,  Inc.,  formerly  known as  National  Paintball  Supply
     Company,  Inc. and now known as Paintball  Incorporated.  On July 31, 2002,
     the Company filed an amendment to this report on Form 8-K, which  amendment
     included the  financial  statements of Paintball  Incorporated  and the pro
     forma financial information required by Items 7(a) and (b) of Form 8-K.


                                   SIGNATURES

In accordance with the requirements of the Securities  Exchange Act of 1934, the
Registrant  has duly  authorized  this  Report to be signed on its behalf by the
undersigned thereunto duly authorized.


Date:  August 14, 2002

                                         American Sports Development Group, Inc.


                                          By:  /s/ William R. Fairbank
                                          -----------------------------------
                                          William R. Fairbanks
                                          President and Chief Executive Officer


                                       13
<PAGE>


EXHIBITS

     99.1 Certification  of Chief Executive  Officer  Pursuant to Section 906 of
          the Sarbanes-Oxley Act of 2002.

     99.2 Certification  of Chief Financial  Officer  Pursuant to Section 906 of
          the Sarbanes-Oxley Act of 2002.



















                                       14

<PAGE>

                                                                    EXHIBIT 99.1

                       CERTIFICATE PURSUANT TO SECTION 906
                        OF THE SARBANES-OXLEY ACT OF 2002

William R. Fairbanks, the chief executive officer of American Sports Development
Group, Inc. (the "Company"), hereby certifies that to the best of his knowledge:

     1.   The Quarterly  Report on Form 10-QSB for the fiscal quarter ended June
          30,  2002 of the  Company  (the  "Report")  fully  complies  with  the
          requirements  of  section  13(a)  or  15(d),  as  applicable,  of  the
          Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

     2.   The  information  contained  in the  Report  fairly  presents,  in all
          material respects,  the financial  condition and results of operations
          of the Company at the dates and for the periods indicated.

The foregoing certification is made solely for the purpose of complying with the
requirements  of Section 906 of the  Sarbanes-Oxley  Act of 2002 (18 U.S.C.  ss.
1350)  and  may not be  relied  upon  by  anyone  for  any  other  purpose.  The
undersigned  expressly  disclaims any undertaking to update such  certifications
except as required by law.


Date:  August 14, 2002.

                                            /s/ William R. Fairbanks
                                         ---------------------------------------
                                         William R. Fairbanks,
                                         President and Chief Executive Officer





                                       15
<PAGE>

                                                                    EXHIBIT 99.2
                       CERTIFICATE PURSUANT TO SECTION 906
                        OF THE SARBANES-OXLEY ACT OF 2002

William B. Kearney, a consultant performing certain services for American Sports
Development Group, Inc. (the "Company")  commonly performed by a chief financial
officer, hereby certifies that to the best of his knowledge:

     1.   The Quarterly  Report on Form 10-QSB for the fiscal quarter ended June
          30,  2002 of the  Company  (the  "Report")  fully  complies  with  the
          requirements  of  section  13(a)  or  15(d),  as  applicable,  of  the
          Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

     2.   The  information  contained  in the  Report  fairly  presents,  in all
          material respects,  the financial  condition and results of operations
          of the Company at the dates and for the periods indicated.

The foregoing certification is made solely for the purpose of complying with the
requirements  of Section 906 of the  Sarbanes-Oxley  Act of 2002 (18 U.S.C.  ss.
1350)  and  may not be  relied  upon  by  anyone  for  any  other  purpose.  The
undersigned  expressly  disclaims any undertaking to update such  certifications
except as required by law.



Date:  August 14, 2002.                    /s/ William Kearney
                                         ---------------------------------------
                                         William Kearney
                                         Consultant performing certain services
                                         for the Company commonly performed by a
                                         a chief financial officer


                                       16