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


                                   FORM 10-QSB

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




For Quarter Ended May 31, 1997                    Commission file number  1-7948

                             AIC INTERNATIONAL, INC,
        (Exact name of small business issuer as specified in its charter)

                                    Delaware
         (State or other jurisdiction of incorporation or organization)

                                   11-2192898
                      (I.R.S. Employer Identification No.)

                  117 East 57th Street, Room 21-H New York, NY
                 10022 (Address of principal executive offices -
                                    Zip code)

          Issuer's telephone number, including area code (212) 838-3220



   Former name, former address and former fiscal year, 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

                 Number of shares of each class of common stock
                               outstanding as of:

                            May 31, 1997 - 4,207,379



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<CAPTION>


                    AIC International, Inc. and Subsidiaries


                      Condensed Consolidated Balance Sheets
                         (000 omitted except share data)




                                                                                                    May 31,             February 28,
                                                                                                     1997                    1997
<S>                                                                                                  <C>                      <C>

------------------------------------------------------------------------------------------------------------------------------------
Assets                                                                                          (Unaudited)
Current:
   Cash                                                                                              $  360                   $  454
   Trade receivables, less allowances of $82 and $78
    for possible losses                                                                               1,460                    1,507
   Merchandise inventories                                                                            3,859                    3,243
   Prepaid expenses and other current assets                                                            702                       95
------------------------------------------------------------------------------------------------------------------------------------
           Total current assets                                                                       6,381                    5,299
Property and equipment, at cost less accumulated
 depreciation and amortization                                                                           96                       91
Other assets                                                                                             17                       18
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                                                                                                     $6,494                   $5,408
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Liabilities and Stockholders' Equity
Current:
   Bank loans                                                                                         1,691                   $1,319
   Accounts payable - trade                                                                             116                      108
   Due to related party                                                                               1,682                    1,353
   Income taxes payable                                                                                 374                      309
   Other taxes payable                                                                                  604                      198
   Liability for product warranties                                                                      41                       96
   Accrued payroll, commissions and other liabilities                                                   284                      305
------------------------------------------------------------------------------------------------------------------------------------
           Total current liabilities                                                                  4,792                    3,688
Accrued pension costs                                                                                   106                      107
------------------------------------------------------------------------------------------------------------------------------------
           Total liabilities                                                                          4,898                    3,795
------------------------------------------------------------------------------------------------------------------------------------
Commitments and Contingencies
Stockholders' equity:
   Common stock, $.10 par - shares authorized, 10,000,000;
    issued, 4,244,879                                                                                   424                      424
   Additional paid-in capital                                                                         6,720                    6,720
   Deficit                                                                                          (6,226)                  (6,249)
   Accumulated translation adjustment                                                                   790                      830
   Treasury stock, at cost - 37,500 shares                                                            (112)                    (112)
------------------------------------------------------------------------------------------------------------------------------------
           Total stockholders' equity                                                                 1,596                    1,613
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     $6,494                   $5,408
------------------------------------------------------------------------------------------------------------------------------------

     See accompanying notes to condensed consolidated financial statements.

                                                                                                                            2
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<CAPTION>




                    AIC International, Inc. and Subsidiaries

                 Condensed Consolidated Statements of Operations
                                   (Unaudited)
                       (000 omitted except per share data)




Three months ended May 31,                                                                                  1997                1996
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                                       <C>                 <C>

------------------------------------------------------------------------------------------------------------------------------------
Net sales                                                                                                 $3,297              $3,787
------------------------------------------------------------------------------------------------------------------------------------
Cost of goods sold                                                                                         2,259               2,684

Selling, general and administrative expenses                                                               1,015               1,036
------------------------------------------------------------------------------------------------------------------------------------
      Total costs and expenses                                                                             3,274               3,720
------------------------------------------------------------------------------------------------------------------------------------
Net income                                                                                               $    23             $    67
------------------------------------------------------------------------------------------------------------------------------------
Net income per share                                                                                     $   .01             $   .02
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Weighted average number  of shares                                                                         4,207               4,207
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     See accompanying notesto condensed consolidated financial statements.

                                                                                                                            3
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<TABLE>
<CAPTION>


                    AIC International, Inc. and Subsidiaries

            Condensed Consolidated Statement of Stockholders' Equity
                                   (Unaudited)
                                  (000 omitted)



                                                                                                         Accumulated
                                                                              Additional Paid-           Translation Treasury Stock,
                                                          Total   Common Stock  In Capital     Deficit   Adjustment      at Cost
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>         <C>          <C>         <C>          <C>          <C>

Balance, March 1, 1997                                    $1,613      $424         $6,720      $(6,249)     $830         $(112)

Net income for the three months ended May 31,
   1997                                                       23        -            -               23       -             -

Aggregate adjustment for the three months ended
   May 31, 1997 resulting from the translation of
   foreign currency statements                               (40)       -            -              -        (40)           -
------------------------------------------------------------------------------------------------------------------------------------
Balance, May 31, 1997                                     $1,596      $424         $6,720       $(6,226)    $790         $(112)
------------------------------------------------------------------------------------------------------------------------------------

     See accompanying notes to condensed consolidated financial statements.

4
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<TABLE>
<CAPTION>




                    AIC International, Inc. and Subsidiaries

                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)
                                  (000 omitted)



Three months ended May 31,                                                                          1997                        1996
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                                <C>                       <C>

Cash flows from operating activities:
   Net income                                                                                      $  23                     $   67
------------------------------------------------------------------------------------------------------------------------------------
   Adjustments  to  reconcile  net  income  to net cash  provided  by (used  in)
      operating activities:
      Depreciation, amortization                                                                       8                          6
      Increase in provision for possible losses on accounts receiv-
        able                                                                                           4                         13
      Other                                                                                          (40)                       (97)
      Decrease (increase) in:
        Trade receivable                                                                              43                       (429)
        Merchandise inventories                                                                     (616)                      (120)
        Prepaid expenses and other current assets                                                   (607)                      (104)
        Other assets                                                                                   1                         -
      Increase (decrease) in:
        Accounts payable - trade                                                                       8                         10
        Due to related party                                                                         329                       (138)
        Taxes payable                                                                                471                        848
        Accrued expenses and other liabilities                                                       (77)                       221
------------------------------------------------------------------------------------------------------------------------------------
      Total adjustments                                                                             (476)                       210
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities                                                 (453)                       277
Cash flows from investing activities:
   Capital expenditures, net of proceeds from sale of equipment                                      (13)                        (3)
Cash flows from financing activities
   Net borrowings from (repayments to) bank                                                          372                       (404)
------------------------------------------------------------------------------------------------------------------------------------
Net decrease in cash                                                                                 (94)                      (130)
Cash, beginning of period                                                                            454                        471
------------------------------------------------------------------------------------------------------------------------------------
Cash, end of period                                                                                 $360                      $ 341
------------------------------------------------------------------------------------------------------------------------------------

     See accompanying notes to condensed consolidated financial statements.

                                                                                                                            5
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                    AIC International, Inc. and Subsidiaries

              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)




Note 1.                          Results for the periods shown are not
                                 necessarily indicative of results for the
                                 full year.



Note 2.                          The data herein reflects all the adjustments
                                 which,  in  the  opinion  of  management,   are
                                 necessary  for a fair  statement of the results
                                 for the interim periods.



Note 3.                          There   were  no  sales  of   unregistered
                                 securities  during  the  quarter  ended May 31,
                                 1997.



Note 4.                          The  financial  data are subject to year-end
                                 audit.   Note   disclosures    required   under
                                 generally  accepted  accounting  principles are
                                 included in the  Company's  annual report (Form
                                 10-KSB) for the fiscal year ended  February 29,
                                 1997. Form 10-QSB should be read in conjunction
                                 with such annual report (Form 10-KSB).



                                                                               6

<PAGE>




                    AIC International, Inc. and Subsidiaries

                Management's Discussion and Analysis of Financial
                       Condition and Results of Operations




     All statements  contained herein that are not historical facts,  including,
but  not  limited  to,  statements  regarding  the  Company's  current  business
strategy,  the Company's  projected  sources and uses of cash, and the Company's
plans  for  future   development   and   operations,   are  based  upon  current
expectations.  These  statements  are  forward-looking  in nature and  involve a
number of risks and uncertainties.  Actual results may differ materially.  Among
the  factors  that  could  cause  actual  results to differ  materially  are the
following:  the  availability  of  sufficient  capital to finance the  Company's
business  plans on  terms  satisfactory  to the  Company;  competitive  factors;
changes in labor,  equipment and capital costs; changes in regulations affecting
the Company's business and economic conditions;  and factors described from time
to  time in the  Company's  reports  filed  with  the  Securities  and  Exchange
Commission. The Company cautions readers not to place undue reliance on any such
forward looking  statements,  which  statements are made pursuant to the Private
Litigation Reform Act of 1995 and, as a result, speak only as of the date made.



     Results of Operations:  Three months ended May 31, 1997 compared with three
months ended May 31, 1996:



Net Sales

     For the three months ended May 31, 1997, the Company's net sales  decreased
by $490,000 to $3,297,000  from sales of  $3,787,000  for the three months ended
May 31, 1996. Sales by the Company's German subsidiary, Soligor GmbH, Foto Optik
Video Electronik ("Soligor GmbH"),  decreased by DM 126,000 for the three months
ended May 31, 1997 which,  when  combined  with  changes in the  exchange  rate,
resulted in a decrease in sales of $490,000  after  translation.  The  Company's
sales  increased  due to efforts of Soligor  GmbH in  promoting  the sale of new
products,  such as electronic products and video equipment, an increasing number
of accessories, as well as video surveillance equipment.



Cost of Goods Sold

     As a percentage of sales,  the  Company's  cost of goods sold for the three
months ended May 31, 1997 and 1996 were 68.5% and 70.9% of sales,  respectively.
The  decrease  in cost of goods  sold as a  percentage  of sales  was  caused by
changes of exchange rates on Japanese Yen, Dutch Marks and U.S. Dollar.



Selling, General and Administrative Expenses

     As a percentage  of sales,  selling,  general and  administrative  ("SG&A")
expenses  for the three  months ended May 31, 1997 and 1996 were 30.8% and 27.4%
of sales,  respectively.  SG&A expenses  decreased from $1,036,000 for the three
months ended May 31, 1996 to $1,015,000 for the three months ended May 31, 1997.
The  increase  in SG&A  expenses  as a  percentage  of sales  was the  result of
decreased net sales.



                                                                               7

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     Pursuant to the  requirements  of the  Securities and Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.







                                                         AIC INTERNATIONAL, INC.
                                                                      Registrant


                                                      /s/     Stephen Lai
                                                     ---------------------------
                                                     Chief Financial Officer and
                                                        Chief Accounting Officer


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