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 June 30, 2003
                                        ---------------

   [ ]    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 jurisdiction                     (IRS Employer
     of incorporation)                         Identification No.)

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

Registrant's telephone number, including area code:   864-672-2734
                                                    ----------------


   --------------------------------------------------------------
   (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, 2003 there were 64,100,098 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

     Item 1.  Financial Statements:

          Consolidated Balance Sheet at June 30, 2003 and
          December 31, 2002.........................................   3

          Consolidated Statements of Income for the Three and Six
          Months Ended June 30, 2003 and 2002.......................   4

          Consolidated Statement of Cash Flows for the Six
          Months Ended June 30, 2003 and 2002.......................   5

          Consolidated Statement of Stockholders' Equity at June
          30, 2003..................................................   6

          Notes to Consolidated Financial Statements................   7

     Item 2.  Management's Discussion and Analysis of Financial
              Condition and results of Operations...................   12

     Item 3. Controls and Procedures................................   20


PART II.  OTHER INFORMATION

     Item 1.  Legal Proceedings.....................................   21

     Item 3.  Defaults Upon Senior Securities.......................   24

     Item 6.  Exhibits & Reports on Form 8-K........................   24


SIGNATURES..........................................................   26







                                  2
<PAGE>


         AMERICAN SPORTS DEVELOPMENT GROUP INC. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                    June 30,     December 31,
                                                      2003          2002
                                                   -----------   ------------
                                                   (unaudited)
<S>                                                <C>           <C>
                ASSETS (all collateralized)

Current Assets:
Cash and cash equivalents                          $   255,210   $    332,101
Accounts receivable                                  1,221,541      1,561,741
Other receivables- employees                            29,726         35,501
Recoverable income taxes                                  -             8,131
Prepaid and other current assets                        39,813         51,829
Inventory                                            1,364,772      1,929,317
                                                   -----------   ------------
Total Current Assets                                 2,911,062      3,918,620

Property and Equipment-net of accumulated
  depreciation and amoritzation of $901,338
  and $793,100, respectively                           400,389        469,994
Goodwill, net of accumulated amortization of
  $69,952 at June 30, 2003 and December 31, 2002     1,637,580      1,637,580
Other intangibles,net of accumulated amortization
  of $136,113 and $92,763, respectively                407,287        450,637
Other assets                                            56,852         56,852
                                                   -----------   ------------
TOTAL ASSETS                                       $ 5,413,170   $  6,533,683
                                                   ===========   ============

          LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
Bank Promissory Note                                 1,327,814      1,430,940
Accounts payable and accrued expenses                3,581,436      3,603,540
Due to affiliate                                       224,048        177,442
Notes payable-current portion                          167,867        150,452
                                                   -----------   ------------
Total Current Liabilities                            5,301,165      5,362,374

Notes payable,less current portion                      11,476         18,151
                                                   -----------   ------------
TOTAL LIABILITIES                                    5,312,641      5,380,525

Commitments and Contingencies                             -              -

STOCKHOLDERS' EQUITY

Preferred stock-$.0 par value, authorized
  20,000,000 shares,                                      -              -
Common Stock - $.001 par value, authorized
  100,000,000 shares, 64,100.098 shares issued
  and outstanding at June 30, 2003 and
  December 31, 2002                                     64,100         64,100
Additional Paid-In Capital                           2,603,221      2,603,221
Note receivable - common stock subscription           (149,999)      (149,999)
Retained Deficit                                    (2,416,793)    (1,364,164)
                                                   -----------   ------------
Total Stockholders' Equity                             100,529      1,153,158
                                                   -----------   ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $ 5,413,170   $  6,533,683
                                                   ===========   ============
</TABLE>


See accompanying notes to consolidated financial statements.


                                  3

<PAGE>


       AMERICAN SPORTS DEVELOPMENT GROUP, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                     FOR THE SIX MONTHS ENDED JUNE 30,

<TABLE>
<CAPTION>

                                                       2003          2002
                                                   -----------   ------------
                                                           (unaudited)
<S>                                                <C>           <C>

Net sales                                          $ 4,372,768   $ 11,539,947
Cost of sales                                        3,250,195      9,204,169
                                                   -----------   ------------
Gross profit                                         1,122,573      2,335,778

Selling, general and administrative expenses         2,132,980      2,435,722

                                                   -----------   ------------
Loss from operations                                (1,010,407)       (99,944)

Other income (expense):
Interest expense, net                                  (42,222)       (43,687)
Other income, net                                         -            19,208
                                                   -----------   ------------
                                                       (42,222)       (24,479)

Loss before income taxes                            (1,052,629)      (124,423)

Income tax expense                                        -           (26,050)
                                                   -----------   ------------
Net loss                                           $(1,052,629)  $    (98,373)
                                                   ===========   ============

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

                                                   -----------   ------------
Weighted average shares outstanding                 64,100,098     39,271,254
                                                   ===========   ============
</TABLE>


See accompanying notes to consolidated financial statements.


                                  4

<PAGE>


       AMERICAN SPORTS DEVELOPMENT GROUP INC., AND SUBSIDIARIES
                    CONSOLIDATED STATEMENT OF CASH FLOWS
                      FOR THE SIX MONTHS ENDED JUNE 30,

<TABLE>
<CAPTION>

                                                           2003          2002
                                                        -----------   ------------
                                                               (unaudited)
<S>                                                     <C>           <C>
Cash flows from operating activities:
Net loss                                                $(1,052,629)  $    (98,373)
Adjustments to reconcile Net loss to net cash
    provided by (used for) operating activities:
  Depreciation and amortization                             151,670        110,926
  Bad debt expense                                            7,522         25,961

  Decrease in accounts receivable                           332,678        769,631
  Decrease (Increase) in other receivables                    5,775         (5,940)
  (Increase) decrease in inventory                          564,545       (368,467)
  Decrease in prepaid expenses                               12,016        167,546
  Decrease in due from affiliates                              -            75,554
  Decrease in accounts payable and accrued expenses         (22,207)      (453,889)
  Increase (decrease) in due to affiliate                    46,606         (6,320)
  (Decrease) Increase in recoverable income taxes             8,131        (26,050)
  Increase in other assets                                     -           (11,231)
                                                        -----------   ------------
Total cash (used for) provided by
  operating activities                                       54,107        179,348

Cash flows from investing activities:
  Purchase of property and equipment                        (38,712)        (7,221)
  Acquisition of domain name                                   -           (21,000)
  Decrease in notes receivable                                 -           130,000
                                                        -----------   ------------
Total cash provided bv (used for) by
  investing activities                                      (38,712)       101,779

Cash flows from financing activities:
  Proceeds under bank line of credit                           -         3,779,000
  Payments under bank line of credit                       (103,026)    (3,799,000)
  Additions to notes payable                                100,000
  Repayment of notes payable                                (89,260)      (242,708)
                                                        -----------   ------------
Total cash provided by financing activities                 (92,286)      (262,708)


Net (decrease) increase in cash and cash equivalents        (76,891)        18,419
Cash and cash equivalents - beginning of period             332,101        304,239
                                                        -----------   ------------
Cash and cash equivalents - end of period               $   255,210   $    322,658
                                                        ===========   ============

Supplemental disclosure of cash flow information:
  Cash paid during period for:
    Interest                                            $    42,222   $     44,192
    Income taxes                                        $      -      $       -

</TABLE>


See accompanying notes to consolidated financial statements.


                                  5

<PAGE>

                AMERICAN SPORTS DEVELOPMENT GROUP, INC.
           CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                FOR THE SIX MONTHS ENDED JUNE 30, 2003

<TABLE>
<CAPTION>


                                                           (unaudited)

                                                     Additional                                 Total
                                    Common Stock     Paid - In    Note            Retained   Stockholders'
                                 Shares     Amount    Capital     Receivable      Deficit       Equity
                               ----------  --------  ----------   ----------   ------------  -------------
<S>                            <C>         <C>       <C>          <C>          <C>           <C>

Balance at December 31, 2002   64,100,098  $ 64,100  $2,603,221   $ (149,999)  $ (1,364,164) $  1,153,158

Net loss for the six months
  ended June 30, 2003                                                            (1,052,629) $ (1,052,629)

                               ----------  --------  ----------   ----------   ------------  ------------
Balance at June 30, 2003       64,100,098  $ 64,100  $2,603,221   $ (149,999)  $ (2,416,793) $    100,529

</TABLE>


See accompanying notes to consolidated financial statements.








                               6

<PAGE>


             AMERICAN SPORTS DEVELOPMENT GROUP, INC.
 NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
                          JUNE 30, 2003


Note 1.  Filing of Bankruptcy

On July 16, 2003, Paintball Inc., a wholly owned subsidiary of
the Company, filed for reorganization under Chapter 11 of the
Federal Bankruptcy Act, in the United States Bankruptcy Court,
District of South Carolina.  Paintball was not able to secure a
further extension from SouthTrust Bank on its line of credit or
able to renegotiate its terms.

Note 2.  Summary of Significant Accounting Policies

Basis of Presentation
---------------------
The  accompanying financial statements include  the  accounts  of
American  Sports Development Group, Inc., a Delaware  corporation
(the   "Company")   and  its  wholly  owned  subsidiaries.    For
accounting  purposes, the Company is the successor  to  Paintball
Incorporated,  a  South Carolina corporation  formerly  known  as
"American Sports Development Group, Inc." and "National Paintball
Supply  Company,  Inc."   On May 17, 2002, American  Inflatables,
Inc.,  a  Delaware  corporation,  issued  stock  constituting   a
majority of its post-issuance shares outstanding in exchange  for
all  of the outstanding shares of Paintball Incorporated, and the
former   shareholders  of  Paintball  Incorporated   became   the
controlling  shareholders  of  American  Inflatables,  Inc.   For
periods  and  dates  prior  to  May 17,  2002,  the  accompanying
financial  statements  reflect  the  results  of  operations  and
financial condition only of Paintball Incorporated and its wholly
owned  subsidiaries.  For periods and dates on and after May  17,
2002,  the accompanying financial statements reflect the combined
results  of  operations and the financial condition of  Paintball
Incorporated,   its  wholly  owned  subsidiaries   and   American
Inflatables, Inc.  As a matter of corporate law, the  Company  is
the  same  entity  as  American Inflatables, Inc.,  which  merely
changed its name to "American Sports Development Group, Inc."  on
or   about  June  18,  2002.   .   The  Company's  wholly   owned
subsidiaries  included in the accompanying  financial  statements
are:

  a)  Paintball Incorporated ("Paintball") incorporated under the
      laws of the State of South Carolina;
  b)  ILM, Inc. ("ILM"), incorporated under the laws of the State
      of South Carolina;
  c)  American Inflatables, Inc. ("Inflatables") incorporated
      under the laws of the State of Delaware;
  d)  PaintballGames.com ("PbGames"), incorporated under the laws
      of the State of South Carolina.

  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, until March 2003, in Irving, TX.  ILM is 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. Inflatables manufactures and markets
inflatable products used for advertising purposes by a wide array
of retail and industrial customers.  PbGames operates a web site
designed to promote the Company's paintball products.

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, 2002, as contained
in the Company's reports on Form 10-KSB filed with the Securities
and Exchange Commission on April 15, 2003.   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, 2003 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 3.  Acquisition

On May 17, 2002, American Inflatables, Inc. ("Inflatables")
acquired Paintball Incorporated, a South Carolina corporation
then known as American Sports Development Group, Inc., and
formerly known as National Paintball Supply Company, Inc.
("Paintball").  For accounting purposes, the transaction was
treated as the acquisition of Inflatables 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 Inflatables.


                               7

<PAGE>

In June 2002, after the reverse acquisition, the combined
companies, which constitute the Company, were 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) Inflatables 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
three wholly owned operating subsidiaries:  (1) Paintball, a
South Carolina corporation named "Paintball Incorporated,"
conducting the paintball gaming business, (2) the new American
Inflatables, Inc., a Delaware corporation, conducting the
inflatable advertising business and (3) ILM, Inc., a Delaware
corporation  conducting the Company's insurance agency 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 Financial Accounting Standards
Board's Emerging Issues Task Force (EITF) 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.


Note 4.  Write off of Goodwill related to Inflatables

For accounting purposes, Inflatables' business combination with
Paintball is treated as the acquisition of Inflatables by
Paintball.  In accordance with EITF 99-12, the Company assigned a
value of approximately $1.8 million to the acquisition, of which
approximately $1,560,000 was classified as goodwill and
approximately $250,000 represented the fair value of custom
design patterns and customer lists.

Since the date of acquisition, May 17, 2002, through December 31,
2002, Inflatables' sales, gross profit and net loss recognized by
the Company have totaled $542,480, $279,810 and $313,327,
respectively.  During the first six months of 2003, Inflatables'
sales and gross profit  declined further due to cutbacks in
marketing expenditures.  As a result of continued losses since
acquisition, the Company believes its investment in Inflatables
has suffered impairment in value of $500,000.  Accordingly, a non-
cash charge for impairment of goodwill in this amount was


                               8

<PAGE>


recorded at December 31, 2002.  The remaining value of the
Company's investment in Inflatables (approximately $1.3 million)
represents the Company's estimate of its fair market value based
on tests involving both multiples of potential annual sales and
earnings before interest, taxes, depreciation and amortization.
The estimate of Inflatables' fair market value also includes
$300,000 as the estimate of Inflatables' position as a publicly
traded entity.

The Company believes there exists a risk it may incur certain
liabilities related to actions taken by Inflatables' former
management in periods prior to its reverse acquisition by the
Company.  Among these risks are potential liabilities for sales
taxes, fines for non-compliance with certain governmental
regulatory authorities and fines for workers' compensation
claims.  The Company has no direct knowledge of any existing
liability related to the above factors and therefore has not made
any provision for such in the accompanying financial statements

This acquisition has been accounted for as purchase.


Note 5.  Pro Forma Financial Information

The following summarized unaudited pro forma financial
information assumes the acquisition described in Note 2 above had
occurred on January 1, 2002.  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
date 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
                                     -------------

Sales                                $  12,010,649
Loss from continuing operations           (431,864)
Net loss                                  (445,476)

Net loss per share:
     Basic and diluted               $        (0.1)


Note 6.  Recent Accounting Pronouncements

In  April  2002,  FASB issued SFAS No. 145, "Rescission  of  FASB
Statements No. 4, 44, and 64, amendment of FASB Statement No. 13,
and  Technical Corrections".  SFAS No. 145 rescinds Statement No.
4,  which required gains and losses from extinguishments of  debt
to  be classified as an extraordinary item, net of tax.  SFAS 145
requires  applying  the criteria of Accounting  Principles  Board
Opinion  No. 30, "Reporting the Results of Operations - Reporting
the   Effects  of  Disposal  of  a  Segment  of  a  Business  and
Extraordinary,  Unusual  and Infrequently  Occurring  Events  and


                               9

<PAGE>


Transactions" in determining how to classify gains and/or  losses
resulting  from  extinguishment of debt.  The effective  date  of
adoption of SFAS No. 145 is for fiscal years beginning after  May
15,  2002.  The Company does not expect the adoption of SFAS  No.
145  to  have  a  material effect on its  financial  position  or
results of operations.

In  July  2002, FASB issued SFAS No. 146, "Accounting  for  Costs
Associated  With  Exit or Disposal Activities".   This  Statement
requires  the  recognition of costs related to exit  or  disposal
activities  at  the  time  they are  incurred,  rather  than  the
previously  accepted  method of recognizing  such  costs  at  the
commitment  date of such activities.  SFAS 146 is  effective  for
such activities entered into or modified after December 31, 2002.
The  provisions  of this statement for assets held  for  sale  or
other disposal generally are required to be applied prospectively
after  the  adoption date to newly initiated disposal  activities
and  therefore,  will  depend  on  future  actions  initiated  by
management.   As  a  result,  the Company  cannot  determine  the
potential  effects that adoption of SFAS 146  will  have  on  the
financial  statements with respect to future disposal  decisions,
if any.

In December 2002, FASB issued SFAS No. 148, "Accounting for Stock
Based  Compensation - Transition and Disclosure",  which  amended
Statement  No.  123.  "Accounting for Stock Based  Compensation".
SFAS  No.  148  provides  for the use of alternative  methods  of
transition for a voluntary change to the fair value based  method
of  accounting for stock based compensation.  It also amends  the
disclosure requirements of Statement No. 123 to require prominent
disclosure  of  the  Company's  method  of  accounting  for  such
compensation  and  the  effect of the  method  used  on  reported
results in annual and interim financial statements.  SFAS No. 148
is  effective for annual periods ending after December  15,  2002
and  interim  periods  beginning after December  15,  2002.   The
Company  does not expect the adoption of SFAS No. 148 to  have  a
material   effect  on  its  financial  position  or  results   of
operations.


Note 7.  Closure of Texas facility

In March 2003, the Company decided to close its warehouse
facility in Texas.  The Company believes it will be able to
satisfy wholesale orders previously shipped from Texas through
its remaining warehouses in South Carolina and California.
During the year ended December 31, 2002, total operating expenses
incurred by the Texas facility approximated $285,000, consisting
primarily of salaries, property taxes, rent and utilities.  Over
the course of the next year, the Company believes it will save an
amount approximately equal to the 2002 expenditure


Note 8.  Legal Issues

The Company is currently involved in a number of legal
proceedings.  See "Part II, Item 1, Legal Proceedings" included
herein as part of this quarterly Report on Form 10-QSB for
complete descriptions of current legal issues.


                               11

<PAGE>


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 to fund ongoing operations
any possible future expansion, and those described under the
caption "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, 2002 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.

CRITICAL ACCOUNTING POLICIES

The Management's Discussion and Analysis of Financial Condition
and Results of Operations discusses the Company's consolidated
financial statements, which have been prepared in accordance with
accounting principles generally accepted in the United States of
America.  The preparation of these financial statements requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and
expenses during the reporting period.  On an ongoing basis,
management evaluates its estimates and judgments, including those
related to revenue recognition, accrued expenses, financing
operations and contingencies and litigation.  Management bases
its estimates and judgments on historical experience and on
various other factors that are believed to be reasonable under
the circumstances, the results of which form the basis for making
judgments about the carrying value of assets and liabilities that
are not readily apparent from other sources.  Actual results may
differ from these estimates under different assumptions or
conditions.  There are no significant accounting estimates
inherent in the preparation of our financial statements.



                               12

<PAGE>


RESULTS OF OPERATIONS:

"Going Concern" Qualification
-----------------------------

The accompanying financial statements have been prepared assuming
that the Company will continue as a going concern.  The Company
incurred a significant loss of approximately $1.9 million
for the year ended December 31, 2002 and incurred losses for the
two years ended December 31, 2001 and incurred a loss for the six
months ended June 30, 2003 of $1,052,000.  In addition, the
Company had a deficiency in working capital at December 31, 2002
of approximately $1.4 million.  Such working capital deficit
includes approximately $322,000 of unpaid payroll taxes,
substantial past due obligations and a bank promissory note,
which matured on April 30, 2003 of approximately $1.4 million.
The bank has informed the Company that the note will not be
renewed. The above conditions raised substantial doubt about the
Company's ability to continue as a going concern.  The financial
statements do not include any adjustments that might result from
the outcome of this uncertainty.

During the 2003 fiscal year, the Company has attempted to
restructure its note with the bank and/or secure suitable
alternative financing.  However, the Company has been
unsuccessful in these efforts.  As a result, on July 16, 2003,
Paintball Inc., a wholly owned subsidiary of the Company, filed
for reorganization under Chapter 11 of the Federal Bankruptcy Act
in the United States Bankruptcy Court, District of South
Carolina.

Management's Plan Going Forward
-------------------------------

As noted above, the Company's subsidiary Paintball Inc., filed
for reporganization under Chapter 11 of the Federal Bankruptcy
Act in July 2003.

Company management is currently formulating plans to improve its
results of operations and financial condition.  The primary
objective is to secure appropriate financing to allow the Company
to satisfy its obligation of its promissory note.  To do so would
require obtaining debt or equity funding totaling approximately
$1.5 million.  To date, the Company has contacted a number of
financial institutions and asset based lenders but has not yet
obtained suitable financing. Management is actively pursuing new
equity investors and potential acquirers of the Company or a
majority of the assets or business of the Company.  Management
believes that it will be successful in either obtaining the
necessary capital infusion or selling all or a majority of the
Company's assets or business; however, there can be no assurance
to this effect.  If management's efforts are unsuccessful,
management expects the Company to become insolvent no later than
the third quarter of 2003.

The Company's customers continue to exhibit a healthy level of
demand for our products.  However, without the ability to finance
the purchase of appropriate levels of fresh inventory to satisfy
such demand, the Company's sales have continued to decline
through the first half of 2003.

While continuing to search for alternative sources of financing,
the Company has focused on cost cutting measures in an effort to
minimize cash outflow.  The Company's goal is to reduce
expenditures for Selling, General and Administrative expenses by
$1.5 million on an annual basis.



                               13

<PAGE>


In March 2003, the Company decided to close its warehouse
facility in Texas.  The Company believes it will be able to
satisfy wholesale orders previously shipped from Texas through
its remaining warehouses in South Carolina and California.
During the year ended December 31, 2002, total operating expenses
incurred by the Texas facility approximated $285,000, consisting
primarily of salaries, property taxes, rent and utilities.  Over
the course of the next year, the Company believes it will save an
amount approximately equal to the 2002 expenditure.

Also, the Company expects to realize further savings in the
coming year in the Company's Paintball subsidiary in the areas of
employee costs, communications, advertising and promotion and
prior years' tax audit charges.  As an additional means of
keeping strict control of costs, the Company has recently cut
back its Inflatables operations, particularly in the marketing
area.  We continue to market Inflatables' products, although not
as aggressively as was done in fiscal 2002.  The Company expects
to realize total annualized savings related to Inflatables of
approximately $300,000.


SIX MONTHS ENDED JUNE 30, 2003 VS. JUNE 30, 2002

The Company's results of operations for the six months ended June
30, 2003 include the results of operations of American
Inflatables, Inc.(Inflatables) which was acquired on May 17,
2002.  Results of operations for the same period of the prior
year include the results of operations of  Inflatables from May
17, 2002 through June 30, 2002.  See "Acquisitions" below and in
the accompanying notes to the consolidated financial statements.

Results of operations
---------------------

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 six months ended June 30, 2003, the Company's sales
declined $7,167,179 (or 62.1 percent) compared to the same period
of the prior year.  The primary cause of this substantial decline
stems from the Company's difficulty in securing additional
working capital financing.  The Company's customers have
expressed strong demand for the Company's paintball products.
However, without the ability to finance the purchase of
appropriate levels of new inventory to satisfy customer demand,
the Company's sales have suffered.  This decline is most apparent
in sales of paint and certain styles of name brand markers
(paintball guns). Further aggravating the decline in sales is a
trend by major manufacturers of paintball products to ship
directly to larger customers.  To a lesser extent, this sales
decrease is attributable to the Company's decision in 2002 to not



                               14

<PAGE>


ship paintball products to The Sports Authority, Inc. due to
disagreements in payment policies.  For the three months ended
March 31, 2002, the Company shipped approximately $105,000 of
paintball products to The Sports Authority, Inc, but shipped no
product to this customer in 2003.

Partly offsetting the overall drop in sales was an increase in
gross margin to 25.7 percent during the first half of 2003
compared to 20.4 percent during the same period in 2002.  The
higher gross margin percentage in 2003 occurred as the Company
realized a larger proportion of higher margin sales of its own
proprietary products compared to last year. This is a result of
the above-mentioned difficulties in securing financing for
purchases of national brand name inventory.  In addition, in 2003
the Company recorded a higher relative percentage of sales from
its retail and Internet channels of distribution, which realize
slightly higher margins than the traditional wholesale channel.
Also, as noted above, the Company's first half results for 2003
results included higher gross margin sales related to Inflatables
for the full six month period, while 2002 first half results
included Inflatables only from May 17 through June 30.

Selling, general and administrative costs decreased by
approximately $303,000 (or 12.4 percent) during the first six
months of 2003 compared to the first six months of 2002.  This
decrease is attributable primarily to lower expenses incurred in
2003 related to employee costs and promotional outlays.
Additional savings have been noted in the areas of rent and
utilities related to the March 2003 of the Texas warehouse.  SG&A
expenses represented 48.8 percent of sales in the first half of
2003 compared to 21.1 percent of sales during 2002, reflecting
the lower sales level during 2003 compared to 2002, and the
effect of certain fixed costs incurred in both periods.  Also,
Inflatables contributed an additional $31,000 of SG&A expense in
2003 compared to 2002 as a result of being included in the
Company's results for the entire six-month period in 2003 versus
just a six-week period in 2002.

Interest expense for the first six months of 2003 was essentially
flat compared to the same period of the prior year. Slightly
higher average levels of debt outstanding and additional bank
charges related to the conversion of the Company's line of credit
to a promissory note in 2003 were partly offset by lower interest
rates compared to 2002.

A benefit for income taxes recoverable based on pre-tax income
was provided in 2002, based on the anticipation that future
earnings would be sufficient to utilize a tax loss carryforward.
No tax benefit has been provided for 2003 since the realization
of future earnings to absorb a tax loss carryforward is uncertain
at this time.

As noted above, the results of operations for the first six
months of 2003 include those of Inflatables, which was acquired
on May 17, 2002, while the comparable period of 2002 included
Inflatables results only from May 17, 2002, the date of
acquisition, through June 30, 2002.  During the first half of
2003, Inflatables recorded sales, gross profit and net loss of
approximately $124,000, $61,000 and $78,000, respectively.  For
the shorter period in 2002 from May 17 through June 30,
Inflatables recorded sales, gross profit and net loss of
$124,000, $51,000 and $56,000, respectively. The 2003 first half
results represent a substantial decline from Inflatables' results
of operations in 2003 as the Company decided to sharply curtail
marketing and promotional expenditures related to Inflatables.



                               15

<PAGE>


The Company's wholly owned subsidiary ILM, Inc. is an independent
insurance agent representing several insurance companies and
brokers who insure mainly paintball fields, stores, distributors
and manufacturers.  For the three and six month periods ended
June 30, 2003, ILM, Inc. recorded total premium and other
revenues of approximately $67,000 and $109,000, respectively and
incurred a loss of approximately $2,000 and $20,000,
respectively.  For the six month period ended June 30, 2002, ILM,
Inc. recorded total revenues and net loss of approximately
$83,000 and $33,000, respectively.


THREE MONTHS ENDED JUNE 30, 2003 VS. JUNE 30, 2002

The Company's results of operations for the three months ended
June 30, 2003 include the results of operations of American
Inflatables, Inc.(Inflatables) which was acquired on May 17,
2002.  Results of operations for the same period of the prior
year include the results of operations of  Inflatables from May
17, 2002 through June 30, 2002.  See "Acquisitions" herein and in
the accompanying notes to the consolidated financial statements.

Results of operations
---------------------

During the three months ended June 30, 2003, the Company's sales
declined $3,579,399 (or 65 percent) compared to the same period
of 2002.  As is noted in the results for the six months to date
of 2003, the primary cause of this sales drop relates to the
Company's difficulty in securing additional working capital
financing.  During the second quarter of 2003, demand for the
Company's products remained at healthy levels, particularly
considering a traditional seasonal weakening toward the end of
the second quarter. Unfortunately, the Company has not been able
to capitalize on this demand due to a lack of financing to
purchase appropriate levels of new inventory.  This decline
continues to be most apparent in sales of paint and certain
styles of name brand markers (paintball guns). Further
aggravating the decline in sales is a recent trend by major
manufacturers of paintball products to ship directly to larger
customers.

Gross margin rose to 25.2 percent in the second quarter of 2003
from  20.2 percent during the same period in 2002.  The higher
gross margin percentage in 2003 occurred as the Company realized
a larger proportion of higher margin sales of its own proprietary
products compared to last year. This is a result of the above-
mentioned difficulties in securing financing for purchases of
national brand name inventory.  Although gross margin percentages
were higher in 2003's second quarter, actual dollar levels of
margin dropped by $628,715 (or 56.5%) compared to the same
quarter of 2002. As noted above, the Company's second quarter
results for 2003 results included higher gross margin sales
related to Inflatables for the full three month period, while
2002 second quarter results included Inflatables only from May 17
through June 30.

In an effort to alleviate the effect of the substantial decline
in sales, the Company has paid strict attention to containing its
costs.  Selling, general and administrative expense decreased by
$271,631 (or 21.6 percent) during the second quarter of 2003



                               16

<PAGE>


compared to the same period in 2002.  This decrease is
attributable primarily to lower expenses incurred in 2003 related
to employee costs and promotional outlays.  Additional savings
during 2003 were recorded in the areas of rent and utilities
related to the March 2003 of the Texas warehouse.  SG&A expenses
rose to 51.4 percent of sales in the second quarter of 2003
compared to 22.9 percent of sales during 2002, reflecting the
lower sales level during 2003 compared to 2002.

Interest expense for the second quarter of 2003 was $5,287 lower
than in the same period of the prior year. Slightly higher
average levels of debt outstanding and additional bank charges
related to the conversion of the Company's line of credit to a
promissory note in 2003 were offset by lower interest rates
compared to 2002..

A benefit for income taxes recoverable based on pre-tax loss was
provided in 2002, in the anticipation that future earnings would
be sufficient to utilize a tax loss carryforward.  No tax benefit
has been provided for 2003 since the realization of future
earnings to absorb a tax loss carryforward is uncertain at this
time.
..
As noted above, the results of operations for the second quarter
of 2003 include those of Inflatables for the full three month
period, while the comparable period of 2002 included Inflatables
results only from May 17, 2002, the date of acquisition, through
June 30, 2002..  During the second quarter of 2003, Inflatables
recorded sales, gross profit and net loss of approximately
$64,000, $30,000 and $31,000, respectively.  For the shorter
period in 2002 from May 17 through June 30, Inflatables recorded
sales, gross profit and net loss of $124,000, $51,000 and
$56,000, respectively. The 2003 sales and gross profit represent
a substantial drop from Inflatables' results of operations in
2002 as the Company decided to sharply curtail marketing and
promotional expenditures, while the decrease in net loss is
related to overall cost containment.


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



                               17

<PAGE>

         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
three wholly owned operating subsidiaries:  (1) Paintball, a
South Carolina corporation named "Paintball Incorporated,"
conducting the paintball gaming business, (2) the new American
Inflatables, Inc., a Delaware corporation, conducting the
inflatable advertising business and (3) ILM, Inc., a Delaware
corporation conducting the Company's insurance agency 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.  As a result of continued losses since acquisition, the
Company believes its investment in Inflatables has been impaired.
Accordingly, at December 31, 2002, the Company recorded a charge
for impairment of Goodwill for $500,000.  The remaining value of
the Company's investment in Inflatables (approximately $1.3
million) represents the Company's estimate of its fair value
based on multiples of potential annual sales and earnings before
interest, taxes, depreciation and amortization.  The estimate of
fair value also includes $300,000 related to Inflatables position
as a publicly traded entity.  The Company will test this
remaining value for further impairment at least annually.


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.  However, due to the above noted
decline in sales, resulting losses and lack of external
financing, the Company's cash position has suffered considerably.

During the six months ended June 30, 2003, the Company generated
$54,107 in cash from operating activities compared to generating
$179.348 in cash for the same period last year. This negative



                               18

<PAGE>

variance in 2003 is due mainly to the incurrence of a net loss of
$1,052,629, as analyzed above, compared to a net loss of $98,373
in 2002's first half.  Due to lower sales levels recorded in the
first half of 2003, cash generated by receivables collections
dropped by $436,953 compared to last year.  Partly offsetting
this variance were lower cash outlays for inventory and accounts
payable, due to the Company's difficulty in securing additional
financing.

Cash flow from investing activities for the first half of 2003
reflects approximately $39,000 in capital expenditures.  Of this
amount, about $20,000 was spent on new software designed to
increase the efficiency of the Company's operational and
financial systems. In the first half of the prior year, cash flow
from investing activities was favorably affected by the
collection of $130,000 from two notes receivable.

Cash flows from financing activities for the six months ended
June 30, 2003 included payments of notes payable of approximately
$89,000 and payments to the Company's bank of approximately
$103,000.  During the second quarter of 2003, the Company's Chief
Executive Officer made a personal loan to the Company in the
amount of $100,000.


BANK LINE OF CREDIT

The Company's subsidiary Paintball had a $1,327,813 line of
credit with SouthTrust Bank that matured on December 30, 2002.
Paintball was unable to repay the line at maturity.  The line of
credit was restructured into a Promissory Note in the principal
amount of $1,327,813, due April 30, 2003, bearing interest at the
bank's base rate (4.25% at March 31, 2003) plus one percent.  The
Promissory Note is secured by all of Paintball's presently
existing or hereafter acquired inventory, intangibles, accounts
receivable and furniture, fixtures and equipment and all proceeds
and products thereof.  The Company was unable to pay the
Promissory Note at April 30, 2003. The bank informed the Company
that it would not renew the note and in May 2003, instituted suit
against the Company's subsidiary Paintball Inc., seeking recovery
of the principal amount and additional interest and expenses in
an amount not less than fifteen percent of the amount owed. The
Company is actively seeking alternative sources of credit, but
there can be no assurance the Company's efforts will be
successful.


RECENT CORPORATE TRANSACTIONS

As reported in the Company's Report on Form 10-QSB for the
quarter ended March 31, 2003, in April 2003 the Company sold its
wholly owned subsidiary, Paintball Inc. to Camden Holdings, Inc.
("Camden") of Beverly Hills, CA.  The transaction was originally
structured as a direct investment in the Company in the amount of
$5 million in exchange for 70 percent of its outstanding shares.
This was subsequently restructured to consist of the sale of the
Paintball subsidiary in exchange for Camden's assumption of
liabilities of the Company in excess of $5 million.  In
accordance with the terms of the agreement, the Company's
President and Chief Executive Officer, William R. Fairbanks, as
well as the Company's Vice President and Secretary, Douglas
Brown, resigned their positions as officers and directors of the
Company.  Matthew Brown and John Pope were appointed to serve as
officers and directors of the Company.



                               19

<PAGE>


Due to non-compliance with the financial and other terms of the
purchase agreement, in June 2003, the board of directors of the
Company voted to terminate the agreement with Camden and the
parties to the agreement executed a mutual termination of all
agreements which state that non-compliance with the provisions
set forth in the documents rendered all attempts to consummate
any contracts or agreements null and void.

On June 5, 2003, Matthew Brown and John Pope tendered their
resignations as officers and directors of the Company and William
R. Fairbanks and Douglas Brown were appointed to fill their
vacancies on the board of directors.  On the same date, William
R. Fairbanks was elected Chairman of the Board of Directors and
Douglas Brown was elected Secretary of the Company.

ITEM 3. CONTROLS AND PROCEDURES

The effectiveness of the design and operation of our disclosure
controls and procedures has been evaluated as of June 30, 2003,
the ending date of this quarterly report, and, based on this
evaluation, the Company has 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 as appropriate to allow timely
decisions regarding required disclosure.






                               20

<PAGE>

                            PART II.
                            --------

Item 1.   Legal Proceedings

Lawsuit by SouthTrust Bank
--------------------------

On May 23, 2003, SouthTrust Bank instituted suit against the
Company's wholly owned subsidiary, Paintball Inc. in the Court of
Common Pleas in Greenville, South Carolina seeking recovery of
$1,327,813.38, the principal due on a promissory note dated
December 30,2002 with a maturity date of April 30, 2003.  The
suit additionally seeks interest and attorneys' fees in an amount
not less than fifteen percent of the amount owed.

Lawsuit against The Sports Authority, Inc.
------------------------------------------

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 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 Company's claim for civil conspiracy was dismissed
and The Sports Authority has counterclaimed for breach of
contract against the Company.

Lawsuit against Nelson Technologies, Inc.
-----------------------------------------

In December 2002, the Company filed suit against Nelson
Technologies, Inc.("Nelson") and Rogue Outfitters, LLC in the
South Carolina Court of Common Pleas in Greenville, South
Carolina for civil conspiracy, unfair trade practices,
intentional interference with contractual relation and other
charges.  Nelson has counterclaimed against the Company in the
amount of approximately $600,000 in unpaid invoices.

Lawsuit by Larry Cossio against the Company, Paintball Inc., ILM,
Inc. and Mr. Fairbanks
-----------------------------------------------------------------

On March 6, 2003, Larry Cossio, the former President of
Paintball's insurance subsidiary ILM, Inc., filed suit against
William R. Fairbanks, the Company's President, Chief Executive
Officer and majority shareholder and one of its directors, the
Company, Paintball and ILM, Inc. in the South Carolina Court of
Common Pleas in Greenville, South Carolina.  On March 5, 2003,
Mr. Cassio provided Mr. Fairbanks with a letter indicating that
he was resigning his employment with "the Company" (without
defining "the Company" in his letter).  Generally, Mr. Cossio
alleges that:



                               21

<PAGE>


   (i) Paintball failed to pay notes in the aggregate principal
       amount of $179,499 when due that were issued as part of the
       purchase price Paintball paid to acquire Mr. Cossio's business in
       July 2001;
  (ii) Paintball consummated the business combination with
       Inflatables knowing it would have a material adverse effect on
       Paintball;
 (iii) Mr. Fairbanks fraudulently induced Mr. Cossio and his
       wife with material misrepresentations to accept 897,495 shares of
       the Company's common stock in satisfaction of the principal
       amounts on the notes and failed to convey the stock so purchased;
  (iv) Mr. Fairbanks has diverted over $1.3 million in funds from
       the Company to Genesis Racing (a company majority-owned and
       controlled by Mr. Fairbanks that races automobiles and for which
       Mr. Fairbanks is a race car driver) for Mr. Fairbanks' personal
       benefit; and
   (v) The Defendants have failed to pay Mr. Cossio a bonus earned
       under his employment agreement with the Company.

  Mr. Cossio's complaint includes several claims based on South
  Carolina state law theories including fraud, breach of
  contract, negligence and negligent misrepresentation, breach
  of fiduciary duty, promissory estoppel, quantum meruit and
  failure to pay wages.  Generally, Mr. Cossio is seeking (a)
  rescission of Paintball's July 2001 acquisition of his
  business, (b) damages, including actual damages and with
  respect to some claims, consequential damages, compensatory
  damages, treble damages, punitive damages, costs, attorneys'
  fees and interest, and (c) specific performance, injunctive
  relief and other equitable remedies with respect to some of
  his causes of action.  Mr. Cossio has also moved for a
  temporary restraining order to restrain the defendants from
  conveying any substantial assets of the Company, other than in
  the ordinary course of business, and from entering into any
  agreements to convey such assets or the shares of the
  corporate defendants and for and the appointment of a receiver
  to manage the affairs of the Company.  On May 23, 2003, the
  Court of Common Pleas granted Mr. Cossio a temporary
  restraining order and on May 29, 2003, the Court extended the
  injunctive relief previously granted.  On June 9, 2003,
  injunctive relief was granted to Mr. Cossio which shall
  continue through the duration of this litigation and any
  appeal or until such time as the appropriate court modifies
  this order.

  This matter is in early stages of litigation, and the Company
  is evaluating Mr. Cossio's claims in order to determine what
  response to make.  The Company currently believes that Mr.
  Cossio's complaints are without merit.

  California sales tax audit
  --------------------------

  In 2002, Paintball underwent a California state sales tax
  audit by the California State Board of Equalization (the
  "California SBE") related to sales Paintball made from Texas
  during the period October 1, 1998 to December 31, 2001.  On
  September 23, 2002, the Company received a Notice of
  Determination from the California SBE providing that Paintball
  owed $224,282 in unpaid sales taxes, interest and penalties
  for this period.  The Company petitioned for a
  redetermination.  In March 2003, the Company received a report



                               22

<PAGE>


  of Field Audit - Reaudit indicating that the Company's total
  liability had been redetermined to be $75,536.  The Company
  has already paid $10,100 of the amount owed, and has recorded
  a current liability of $65,436 for the balance of this
  liability.

  Other events

  On July 16, 2003, Paintball, Inc., a wholly owned subsidiary
  of American Sports Development Group, Inc., filed for
  reorganization under Chapter 11 of the Federal Bankruptcy Act,
  in the United States Bankruptcy Court, District of South
  Carolina.  Paintball was not able to secure a further
  extension from SouthTrust Bank on its line of credit or able
  to renegotiate its terms.
  The filing of a bankruptcy case, under any chapter of the
  Bankruptcy Code, triggers an injunction against the
  continuance of any action by any creditor against the debtor
  or the debtor's property pursuant to 11 U.S.C. 362.  The is
  commonly referred to as an "automatic stay".

  The automatic stay gives the debtor protection from creditors,
  subject to the oversight of the bankruptcy judge, and brings
  all of the debtor's assets and creditors into the same forum,
  the bankruptcy court, where the rights of all concerned can be
  balanced.

  Generally, the automatic stay prohibits:

    *   Beginning or continuing law suits against Paintball
    *   Collection calls
    *   Repossessions
    *   Foreclosure sales
    *   Garnishment or levies

  The automatic stay usually remains in effect until a judge
  lifts the stay at the request of a creditor; the debtor gets a
  discharge; or the item of property is no longer property of
  the estate.

  Consequently, with regard to any of the litigation where an
  action has been brought against the Company's subsidiary,
  Paintball, Inc., the Company believes that the actions
  involved are stayed as they relate to Paintball, Inc.
  The first meeting of creditors is set for Friday, August 22,
  2003 at the Federal Courthouse in Spartanburg, South Carolina.
  From time to time, the Company is party to ordinary routine
  product liability litigation, contract breach litigation, or
  employment litigation incident to its business that does not
  depart from the normal kind of such actions.  The Company
  believes that any such actions would be presently stayed as
  they relate to the Company's subsidiary, Paintball, Inc.



                               23

<PAGE>


  Item 3.  Defaults upon Senior Securities

  The Company's subsidiary Paintball had a $1,327,813 line of
  credit with SouthTrust Bank that matured on December 30, 2002.
  Paintball was unable to repay the line at maturity.  The line
  of credit was restructured into a Promissory Note in the
  principal amount of $1,327,813, due April 30, 2003, bearing
  interest at the bank's base rate (4.25% at March 31, 2003)
  plus one percent.  The Promissory Note is secured by all of
  Paintball's presently existing or hereafter acquired
  inventory, intangibles, accounts receivable and furniture,
  fixtures and equipment and all proceeds and products thereof.
  The Company was unable to pay the Promissory Note at April 30,
  2003. The bank informed the Company that it would not renew
  the note and in May 2003, instituted suit against the
  Company's subsidiary Paintball Inc., seeking recovery of the
  principal amount and additional interest and expenses in an
  amount not less than fifteen percent of the amount owed. The
  Company is actively seeking alternative sources of credit, but
  there can be no assurance the Company's efforts will be
  successful

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

  (a)  Exhibits

       31.1 Certification of Chief Executive Officer pursuant to
            Section 302 of the Sarbanes-Oxley Act of 2002

       31.2 Certification of Consultant performing duties commonly
            performed by a chief financial officer pursuant to
            Section 302 of the Sarbanes-Oxley Act of 2002

       32.1 Certification of Chief Executive Officer pursuant to
            Section 906 of the Sarbanes-Oxley Act of 2002

       32.2 Certification of Consultant performing duties commonly
            performed by a chief financial officer pursuant to
            Section 906 of the Sarbanes-Oxley Act of 2002

  (b)  Reports on Form 8-K

     (1)  On June 13, 2003, the Company filed a Report on Form 8-
     K stating the resignations on June 5, 2003 of Matt Brown and
     John Pope as officers and directors of the Company.  William
     R. Fairbanks and Douglas Brown were appointed to fill the
     vacancies on the board created by these resignations.

     Also on June 5, 2003, the board elected William R. Fairbanks
     as Chairman of the Board of Directors and elected Douglas
     Brown as Secretary of the Company.

     On May 15, 2003, the Company executed an agreement to sell
     all of the assets of its wholly owned subsidiary, Paintball
     Inc., to an unaffiliated party, Camden Holdings, Inc., a
     Nevada corporation.  On June 5, 2003, the board of directors
     of the Company voted to terminate the agreement with Camden,
     and the parties to the agreement executed a mutual
     termination of all agreements which states that non-


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     compliance with the provisions set forth in the documents
     rendered all attempts to consummate any contract or
     agreements null and void.

     (2)  On July 23, 2003, the Company filed a Report on Form 8-
     K stating that Paintball Inc., a wholly owned subsidiary of
     the Company filed for reorganization under Chapter 11 of the
     Federal Bankruptcy Act in the United States Bankruptcy
     Court, District of South Carolina.  Paintball Inc. was not
     able to secure a further extension from SouthTrust Bank on
     its line of credit or able to renegotiate its terms.















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             AMERICAN SPORTS DEVELOPMENT GROUP, INC.


                           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 19, 2003                 /s/William R. Fairbanks
                                      -----------------------------
                                      William R. Fairbanks
                                      President and Chief Executive
                                      Officer
                             American Sports Development Group, Inc.













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