UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-QSB

(Mark one)
         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    X    SECURITIES EXCHANGE ACT OF 1934
   ---
               For the quarterly period ended September 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                                                  95-4847818
--------                                                  ----------
(State or other                                          (IRS Employer
jurisdiction of incorporation)                         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



         (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 September 30, 2002 there were 62,540,835 shares of the Registrant's common
stock, $.001 par value per share, issued and outstanding.



<PAGE>


                     AMERICAN SPORTS DEVELOPMENT GROUP, INC.

                                      INDEX
<TABLE>
<CAPTION>


                                                                                        Page No.

<S>                                                                                     <C>
PART  I. FINANCIAL INFORMATION

         Item 1.  Financial Statements:

                  Consolidated Balance Sheet at September 30, 2002 and
                  December 31, 2001                                                       3

                  Consolidated  Statements  of  Income  for the  Three  and Nine
                  Months Ended September 30, 2002 and September 30, 2001                  4

                  Consolidated Statement of Cash Flows for the Nine
                  Months Ended September 30, 2002 and September 30, 2001                  6

                  Notes to Consolidated Financial Statements                              7

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

         Item 3.  Controls and Procedures                                                 15


PART  II OTHER INFORMATION


         Item 2.  Changes in Securities                                                   16

         Item 6.  Exhibits and Reports on Form 8-K                                        17



</TABLE>


                                       2
<PAGE>
<TABLE>
<CAPTION>

                    AMERICAN SPORTS DEVELOPMENT GROUP INC. AND SUBSIDIARIES
                               CONSOLIDATED BALANCE SHEETS



                                                                                  September 30, 2002         December 31, 2001
                                                                                      (unaudited)
                                                                                      -----------
                               ASSETS

<S>                                                                                 <C>                       <C>
Current Assets:
Cash and cash Equivalents                                                           $    448,285              $    304,239
Accounts receivable                                                                    1,693,195                 2,607,121
Other receivables- employees                                                              40,001                    27,247
Recoverable income taxes                                                                 257,968                    84,419
Note receivable                                                                                -                    30,000
Loans receivable- related parties                                                              -                    95,554
Prepaid and other current assets                                                          13,362                   150,360
Inventory                                                                              2,448,259                 2,311,065
                                                                                    ------------              ------------
Total Current Assets                                                                   4,901,070                 5,610,005

Property and Equipment-net of accumulated depreciation
and amoritzation of $734,378 and $579,578, respectively                                  539,775                   601,864
Goodwill, net of accumulated amortization of $69,952 and
$69,952, respectively                                                                  2,090,721                   529,112
Other intangibles,net of accumulated amortization of
$71,188 and $25,250, respectively                                                        469,812                   241,150

Other assets                                                                              70,625                    53,060
                                                                                    ------------              ------------
                            TOTAL ASSETS                                            $  8,072,003              $  7,035,191
                                                                                    ============              ============

                LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
Bank line of credit                                                                    1,380,909                 1,086,074
Accounts payable and accrued expenses                                                  3,859,572                 4,164,863
Due to affiliate                                                                         252,838                   247,577
Notes payable-current portion                                                            383,252                   649,876
                                                                                    ------------              ------------
Total Current Liabilities                                                              5,876,571                 6,148,390

Notes payable,less current portion                                                             -                    64,924

                          TOTAL LIABILITIES                                            5,876,571                 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 62,540,835 shares
issued and outstanding at December 31, 2001 and
September 30, 2002, respectively                                                          62,541                     5,948
Additional Paid-In Capital                                                             2,140,931                   216,485
Retained Earnings                                                                        141,960                   599,444
                                                                                    ------------              ------------
Total Stockholders' Equity                                                             2,195,432                   821,877
                                                                                    ------------              ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                          $  8,072,003              $  7,035,191
                                                                                    ============              ============

See accompanying notes to consolidated financial statements.
</TABLE>

                                       3
<PAGE>

<TABLE>
<CAPTION>

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


                                                                    2002                       2001
                                                                    ----                       ----

<S>                                                             <C>                        <C>
Net sales                                                       $ 4,086,252                $ 4,370,733
Cost of sales                                                     3,102,012                  3,431,443
                                                                -----------                -----------
Gross profit                                                        984,240                    939,290

Selling, general and administrative expenses                      1,465,253                  1,023,325

                                                                -----------                -----------
Income (loss) from operations                                      (481,013)                   (84,035)

Other income (expense):
Interest expense, net                                               (21,395)                   (30,733)
Other income                                                         (4,105)                   302,300

                                                                -----------                -----------
Income (loss) before income taxes                                  (506,513)                   187,532

Income tax expense (benefit)                                       (147,402)                    77,601

                                                                -----------                -----------
Net income (loss)                                               $  (359,111)               $   109,931
                                                                ===========                ===========

Net income (loss) per common share
Basic and diluted                                                   $ (0.01)                    $ 0.02
                                                                ===========                ===========

Weighted average shares outstanding                              61,830,875                  5,948,295
                                                                ===========                ===========

See accompanying notes to consolidated financial statements.

</TABLE>


                                       4
<PAGE>
<TABLE>
<CAPTION>

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


                                                                   2002                       2001
                                                                   ----                       ----

<S>                                                            <C>                        <C>
Net sales                                                      $ 15,626,199               $ 17,165,696
Cost of sales                                                    12,306,181                 13,835,294
                                                               ------------               ------------
Gross profit                                                      3,320,018                  3,330,402

Selling, general and administrative expenses                      3,900,975                  3,166,139
                                                               ------------               ------------
Income (Loss) from operations                                      (580,957)                   164,263

Other income (expense):
Interest expense, net                                               (65,082)                   (95,341)
Other income                                                         15,103                    303,300
                                                               ------------               ------------
Income (loss) before income taxes                                  (630,936)                   372,222

Income tax expense (benefit)                                       (173,452)                   148,578
                                                               ------------               ------------
Net income (loss)                                              $   (457,484)              $    223,644
                                                               ============               ============

Net income (loss) per common share
Basic and diluted                                              $      (0.01)              $       0.04
                                                               =============              ============

Weighted average shares outstanding                              33,783,278                  5,948,295
                                                               =============              ============

See accompanying notes to consolidated financial statements.
</TABLE>


                                       5
<PAGE>
<TABLE>
<CAPTION>


                    AMERICAN SPORTS DEVELOPMENT GROUP INC., AND SUBSIDIARIES
                              CONSOLIDATED STATEMENT OF CASH FLOWS
                             FOR THE NINE MONTHS ENDED SEPTEMBER 30,
                                         (unaudited)

                                                                                            2002                      2001
                                                                                            ----                      ----

<S>                                                                                  <C>                         <C>
Cash flows from operating activities:
Net income (loss)                                                                    $  (457,484)                $  223,644
Adjustments to reconcile Net income (loss) to net cash provided
by  (used for) operating activities:
Depreciation and amortization                                                            200,638                   185,854
Bad debt expense                                                                          44,216                    49,600
(Increase) decrease in accounts receivable                                               869,710                  (533,325)
Increase in other receivables                                                            (12,754)                 (100,516)
(Increase) decrease in recoverable income taxes                                         (173,549)                    3,862
(Increase) decrease in inventory                                                        (124,422)                  260,679
Decrease in prepaid expenses                                                             173,132                    49,732
(Increase) decrease in due from affiliates                                                95,554                   (33,722)
Increase in other assets                                                                 (15,341)                  (55,951)
Decrease in accounts payable and accrued expenses                                       (679,341)                  (13,512)
Increase in due to affiliate                                                               5,261                    41,701
Increase in income taxes payable                                                               -                   144,538
                                                                                      ----------                ----------
Total cash provided by (used for) operating activities                                   (74,380)                  222,584

Cash flows from investing activities:
Purchase of fixed assets                                                                 (20,361)                  (43,074)
Cash paid for acquisition                                                                      -                  (122,835)
Acquisition of domain name                                                               (24,500)                  (84,450)
(Increase) decrease in notes receivable                                                  130,000                  (150,000)
                                                                                      ----------                ----------
Total cash provided bv (used for) by investing activities                                 85,139                  (400,359)

Cash flows from financing activities:
Proceeds under bank line of credit                                                     6,088,909                 5,581,000
Payments under bank line of credit                                                    (5,794,074)               (5,060,000)
Repayment of notes payable                                                              (331,548)                 (306,190)
Sale of common stock                                                                     170,000                         -
                                                                                      ----------                ----------
Total cash  provided by financing activities                                             133,287                   214,810


Net increase in cash and cash equivalents                                                144,046                    37,035
Cash and cash equivalents - beginning of period                                          304,239                   241,787
                                                                                      ----------                ----------
Cash and cash equivalents - end of period                                             $  448,285                $  278,822
                                                                                      ==========                ==========

Supplemental disclosure of cash flow information:
Cash paid during period for:
Interest                                                                              $   65,588                $   97,017
Income taxes                                                                          $        -                $        -

See accompanying notes to consolidated financial statements.

</TABLE>

                                       6
<PAGE>

                     AMERICAN SPORTS DEVELOPMENT GROUP, INC.
         NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
                               SEPTEMBER 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.  and  Subsidiaries  (the  Company),
incorporated  under the law of the state of Delaware on August 5, 1998.  Results
of operations  of American  Inflatables,  Inc. are included in the  accompanying
unaudited interim Consolidated  Statements of Income from May 17, 2002, its date
of  acquisition.   (See  "Acquisitions"  below.)  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
reports on Form 10-KSB  filed with the  Securities  and Exchange  Commission  on
April 16, 2002 and an amendment thereto filed on May 9, 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,

                                       7
<PAGE>

necessary for a fair presentation of the interim periods presented.  The results
of operations for the three and nine month periods ended  September 30, 2002 are
not necessarily  indicative of results of operations to be expected for the full
year.

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,  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.  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.

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).

                                       8
<PAGE>

The Company has assigned a value of $1,801,757 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  approximately  $1,800,000.  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 is being amortized over its remaining
useful life of 5 years. Approximately $1,560,000 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.
<TABLE>
<CAPTION>

                                                                     Nine Months Ended
                                                     Sept. 30, 2002                     Sept. 30, 2001
                                                     --------------                     --------------

<S>                                                   <C>                               <C>
Sales                                                 $16,096,901                       $17,427,396
Loss from continuing operations                          (912,877)                          (49,837)
Net income (loss)                                        (795,087)                            9,544
Net income (loss) per share:
         Basic and diluted                            $     (0.01)                            $0.00

</TABLE>


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
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

                                       9
<PAGE>

goodwill  amortization  for the three and nine months ended  September 30, 2002.
For the three and nine months ended  September  30, 2001,  the Company  recorded
expense  related  to the  amortization  of  goodwill  of  $10,819  and  $25,454,
respectively.

NOTE 6.           SALE OF COMMON STOCK

In September 2002, the Company sold 680,000 shares of unregistered  common stock
at $.25 per share to an  accredited  investor  pursuant to a stock  subscription
agreement  dated  October 1, 2002.  In October  2002,  the Company  sold 800,000
shares of unregistered  common stock at $.25 per share to an accredited investor
pursuant to a stock subscription agreement dated October 3, 2002.

During  September  2002 and October  2002,  the Company  also issued  54,028 and
15,000  shares,  respectively,  of  its  common  stock  to  two  consultants  in
transactions  registered  on Forms S-8 filed with the  Securities  and  Exchange
Commission  on  September  30,  2002 and October  22,  2002 in  satisfaction  of
payables owed to the consultants totaling approximately $14,300.

ITEM 2.       MANAGEMENT'S 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 captions "Cautionary Statement Regarding Forward-Looking  Information"
and "Risk  Factors" 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.


                                       10
<PAGE>

RESULTS OF OPERATIONS:

NINE MONTHS ENDED SEPTEMBER 30, 2002 VS. SEPTEMBER 30, 2001

The Company's results of operations for the nine months ended September 30, 2002
include the results of  operations  of American  Inflatables,  Inc.(Inflatables)
from the date of acquisition,  May 17, 2002, through September 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.

Results of operations - Paintball Inc.

There is an element  of  seasonality  to the  Company's  paintball  distribution
business.  Paintball  gamers  generate  significant  amounts of body heat due to
intense  physical  activity  and the wearing of  necessary  protective  clothing
during  paintball  games.  As a result,  demand for the  company's  products has
historically  been strongest  during the first and fourth  quarters of the year.
The fourth quarter is also aided by holiday  shopping.  Demand  generally trends
downward  in the second  quarter  and is weakest  during the third  quarter  due
mainly to warmer average temperatures nationwide during the summer months.

During the nine months ended September 30, 2002, the Company's sales  (excluding
Inflatables)  declined  $1,925,000 (or 11.2 percent) compared to the same period
of the prior year.  This  decrease is primarily  attributable  to the  Company's
decision in 2002 to not ship paintball  products to The Sports  Authority,  Inc.
due to  disagreements in payment  policies.  For the nine months ended September
30, 2002 the Company shipped approximately $3,253,000 less of paintball products
to The Sports Authority, Inc compared to the same period in 2001. To offset this
decline, the Company placed renewed emphasis on its traditional  wholesale sales
channel and recorded an increase of approximately  $1,634,000 in wholesale sales
for the first  three  quarters of 2002  compared to the first three  quarters of
2001.  Although  wholesale volume has increased in 2002, high levels of industry
competition  continue to hamper the Company's  ability to increase sales prices,
most notably among commodity products such as paintballs and CO2 bottles.

Partly offsetting the overall drop in sales was an increase in gross margin from
19.4  percent  during the first nine months of 2001 to 20.4  percent  during the
same  period in 2002,  due mainly to the above  mentioned  lack of lower  margin
shipments to The Sports Authority, Inc.

Selling,  general and administrative costs (excluding  Inflatables) increased by
approximately $320,000 during the first nine 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 22.9
percent of sales in the first nine months of 2002  compared  to 18.4  percent of
sales  during  2001,  reflecting  both the higher level of expense and the lower
sales level during the first three  quarters of 2002 compared to the first three
quarters of 2001.

                                       11
<PAGE>

Interest  expense  for the  first  nine  months of 2002  declined  approximately
$30,000, or 32 percent, compared to the first nine months of the prior year, due
mainly to lower interest rates on the Company's bank line of credit.

Other income during the first nine months of 2001 is almost  entirely due to the
settlement  of a dispute with a former  distributor  over  ownership of the name
"National Paintball Supply". The Company agreed to change its name to "Paintball
Incorporated"  and received in return $150,000 in cash and a note receivable for
$150,000  with a one-year  term from the former  distributor.  At September  30,
2002, there were no amounts outstanding related to this settlement.

A benefit for income taxes  recoverable,  based on the pre-tax  loss  (excluding
Inflatables)  has been provided in 2002 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 SEPTEMBER 30, 2002 VS. SEPTEMBER 30, 2001

The  Company's  results of operations  for the three months ended  September 30,
2002  include  the  results  of   operations  of  American   Inflatables,   Inc.
(Inflatables),  acquired in May 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.

Results of operations - Paintball, Inc.

Sales for the three  months ended  September  30, 2002  (excluding  Inflatables)
declined by $541,000,  or 12 percent compared to the same period last year. This
decrease  resulted  primarily from the Company's  decision to not pursue further
sales in 2002 to The Sports  Authority,  Inc.  due to  disagreements  in payment
policies.  During the third quarter of 2002, the Company  shipped  approximately
$1,100,000  less product to this customer than during the same period last year.
Excluding the effect of Sports  Authority  sales, the Company's sales during the
third quarter of 2002 rose approximately  $217,000 compared to the third quarter
of 2001.

Gross profit in the third quarter of 2002  declined by $104,000  compared to the
third quarter of 2001 due to the above-mentioned overall decline in sales. Gross
profit percentages  remained essentially flat in the 2002 third quarter compared
to last year.

Selling,  general and administrative costs (excluding  Inflatables) increased by
$160,000  during the third  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 and  ongoing  costs  related to  regulatory
compliance as a publicly traded company.  SG&A expenses represented 30.9 percent
of sales in the third  quarter of 2002  compared to 23.4 percent of sales during
2001's second quarter, reflecting both the higher level of expense and the lower
sales level  during the third  quarter of 2002  compared to the same  quarter of
2001.

                                       12
<PAGE>

Interest expense,  net for the third quarter of 2002 declined $9,300 compared to
the same  period  last  year,  due  mainly  to lower  rates of  interest  on the
company's bank line of credit.

Other  income  during the third  quarter of 2001 is almost  entirely  due to the
settlement  of a dispute with a former  distributor  over  ownership of the name
"National Paintball Supply". The Company agreed to change its name to "Paintball
Incorporated"  and received in return $150,000 in cash and a note receivable for
$150,000  with a one-year  term from the former  distributor.  At September  30,
2002, there were no amounts outstanding related to this settlement.

A benefit for income taxes  recoverable,  based on the pre-tax  loss  (excluding
Inflatables)  has been provided in 2002 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.

Results of Operations - Inflatables

For the three months ended  September 30, 2002,  Inflatables  recorded  sales of
$256,993,  gross profit of $149,033 and a net loss of $140,416. The net loss was
attributable to a high level of selling, general and administrative expenses. As
noted below,  management is currently  taking steps to increase sales levels and
reduce administrative overhead.

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.  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.

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


                                       13
<PAGE>

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 $1,801,757 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  approximately  $1,800,000.  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 is being amortized over its remaining
useful life of 5 years. Approximately $1,560,000 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 third quarter and the first
nine 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.  Since the  acquisition  date,  Inflatables has
generated approximate sales, gross profit and net loss of $386,000, $217,000 and
$193,000, respectively.

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.  Additionally,  new sales
personnel  have been added  during  the  fourth  quarter of 2002 in an effort to
increase  sales  volume.   The  Company  has  also   restructured   Inflatables'
management,  reduced overhead and invested in new productivity software.  During
the third quarter of 2002, the Company  transferred  Inflatables'  manufacturing
operations from California to South Carolina,  thereby making more efficient use
of available company resources.

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 nine months ended  September  30,  2002,  the Company used $74,380 in
cash from operating  activities  compared to generating $222,584 in cash for the
same  period  last year.  This  negative  variance  in 2002 is due mainly to the
incurrence of a net loss of $457,484 compared to net income of $223,644 in 2001.
Lower working  capital  requirements  in the first nine months of 2002 partially
offset this negative variance.

                                       14
<PAGE>

Cash flow from  investing  activities  was favorably  affected in the first nine
months of 2002 by the  collection  of $130,000  from two notes  receivable.  The
company  also  recognized  additional  goodwill  and other  intangibles,  net of
approximately   $1,560,000   and  $231,000,   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 nine months ended  September 30,
2002  included  payments  of notes  payable of  approximately  $332,000  and net
proceeds from the Company's bank line of credit of $295,000.

In September 2002, the Company sold 680,000 shares of unregistered  common stock
at $.25 per share to an  accredited  investor  pursuant to a stock  subscription
agreement  dated  October 1, 2002.  In October  2002,  the Company  sold 800,000
shares of unregistered  common stock at $.25 per share to an accredited investor
pursuant to a stock  subscription  agreement  dated  October 3, 2002.  The stock
subscription  agreements  for these  transactions  provide  that if the  Company
proposes to register any of its securities  under the Securities Act at any time
but no later than  November 12, 2002 (other than certain  registrations  on Form
S-8)  then  the  Company  must  register  the  resales  of these  shares  on the
registration  statement for such registration.  The Company currently intends to
register the resale of these shares with the Securities and Exchange  Commission
in November 2002.

During  September  2002 and October  2002,  the Company  also issued  54,028 and
15,000  shares,  respectively,  of  its  common  stock  to  two  consultants  in
transactions  registered  on Forms S-8 filed with the  Securities  and  Exchange
Commission  on  September  30,  2002 and October  22,  2002 in  satisfaction  of
payables owed to the consultants totaling approximately $14,300.

The Company has a $1,400,000 line of credit with South Trust Bank, which matured
on May 16, 2002. The line of credit has been extended to December 2002. The line
of credit bears interest at prime rate payable on a monthly basis.  At September
30,  2002 and  December  31,  2001,  borrowings  under this line of credit  were
$1,380,909 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 September  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 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.
Due to the  uncertainty of the final outcome of this audit,  the Company has not
recorded any liability related to this matter.

ITEM 3.  CONTROLS AND PROCEDURES

Under the supervision and with the  participation  of our management,  including
William R.  Fairbanks,  the Company's Chief  Executive  Officer,  and William B.
Kearney,  a consultant  performing  certain duties commonly performed by a Chief

                                       15
<PAGE>

Financial  Officer,  we have  evaluated  the  effectiveness  of the  design  and
operation of our disclosure controls and procedures within 90 days of the filing
date of this quarterly report, and, based on their evaluation, Mr. Fairbanks and
Mr.  Kearney have  concluded  that these  controls and procedures are effective.
There were no significant  changes in our internal  controls or in other factors
that could  significantly  affect these controls subsequent to the date of their
evaluation.

Disclosure  controls and procedures are our controls and other  procedures  that
are  designed to ensure that  information  required to be disclosed by us in the
reports that we file or submit  under the  Exchange Act is recorded,  processed,
summarized and reported, within the time periods specified in the Securities and
Exchange  Commission's  rules and  forms.  Disclosure  controls  and  procedures
include,  without  limitation,  controls and procedures  designed to ensure that
information required to be disclosed by us in the reports that we file under the
Exchange Act is accumulated and  communicated  to our management,  including Mr.
Fairbanks and Mr. Kearney,  as appropriate to allow timely  decisions  regarding
required disclosure.

PART II.  OTHER INFORMATION.

ITEM 2.  CHANGES IN SECURITIES.

On October 9, 2002, the Company's Board of Directors adopted a 2002 Stock Option
Plan (the "Plan") that is subject to the subsequent approval and adoption by the
Company's  shareholders.  A copy of the Plan is filed as  Exhibit  10.10 to this
quarterly report and is incorporated herein by reference. The Company expects to
submit  the Plan to its  shareholders  for  their  approval  at the next  annual
meeting of  shareholders,  currently  expected to be held in the first or second
quarter of 2003.  If the Plan is approved  by the  Company's  shareholders,  the
Company  expects to register the issuance of shares pursuant to the Plan on Form
S-8.

On October  22,  2002,  the Board  granted  options  covering  an  aggregate  of
1,325,000  shares to an  aggregate of 32  employees,  subject to approval of the
Plan by the  Company's  shareholders.  These  options have an exercise  price of
$0.25 per share ($0.01 per share greater than the closing stock price on October
21,  2002),  begin  vesting on June 1, 2003 and are  expected to be subject to a
yet-to-be-determined  vesting schedule and other  yet-to-be-determined terms and
conditions.  The Plan  provides that these options must expire no later than the
tenth anniversary of the grant date.

In September 2002, the Company sold 680,000 shares of unregistered  common stock
at $.25 per share to an  accredited  investor  pursuant to a stock  subscription
agreement  dated  October 1, 2002.  In October  2002,  the Company  sold 800,000
shares of unregistered  common stock at $.25 per share to an accredited investor
pursuant to a stock  subscription  agreement  dated October 3, 2002. The Company
believes these transactions are exempt from the registration requirements of the
Securities  Act  pursuant  to  Section  4(2)  thereof.  The  stock  subscription
agreements  for these  transactions  provide  that if the  Company  proposes  to
register any of its securities under the Securities Act at any time but no later
than November 12, 2002 (other than certain  registrations  on Form S-8) then the
Company must register the resale of  these shares on the registration  statement
for such  registration.  The Company currently intends to register the resale of
these shares with the Securities and Exchange Commission in November 2002.

                                       16
<PAGE>

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

(a)  Exhibits

     4.2      Stock Subscription Agreement dated October 1, 2002  by and between
              the Company and Yvonne Hines.
     4.3      Stock Subscription Agreement dated  October 3, 2002 by and between
              the Company and Bill Heldman.
     10.13    2002 Stock Option Plan adopted by the Company's Board of Directors
              on October 9, 2002.
     10.14    Project Work Agreement dated May 27, 2002 by and between Tatum CFO
              Partners, LLP and the Company.
     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 July 31, 2002,  the Company filed an amendment to its report on Form 8-K
     dated May 17, 2002,  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.  The Form 8-K dated May 17,  2002  reported
     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.


                                   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: November 5, 2002

                                 American Sports Development Group, Inc.



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



                                       17
<PAGE>

                                 CERTIFICATIONS

     I, William R.  Fairbanks,  the  President  and Chief  Executive  Officer of
American Sports Development Group, Inc., certify that:

     1. I have reviewed this Quarterly  Report on Form 10-QSB of American Sports
Development 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 the  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

                                       18
<PAGE>

     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:  November 5, 2002

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



     I,  William B.  Kearney,  a  consultant  performing  certain  services  for
American Sports  Development Group, Inc. commonly performed by a chief financial
officer, certify that:

     1. I have reviewed this Quarterly  Report on Form 10-QSB of American Sports
Development 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 the  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

                                       19
<PAGE>

     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:  November 5, 2002.

By:    /s/ William B. Kearney
    --------------------------------------------------
       William B. Kearney
       Consultant performing certain services
       for the Company commonly performed
       by a chief financial officer














                                       20
<PAGE>


EXHIBITS

     4.2      Stock Subscription Agreement dated October  1, 2002 by and between
              the Company and Yvonne Hines.
     4.3      Stock Subscription Agreement  dated October 3, 2002 by and between
              the Company and Bill Heldman.
     10.13    2002 Stock Option Plan adopted by the Company's Board of Directors
              on October 9, 2002.
     10.14    Project Work Agreement dated May 27, 2002 by and between Tatum CFO
              Partners, LLP and the Company.
     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.











                                       21