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 August 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:

                           August 31, 1997 - 4,207,379



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                    AIC International, Inc. and Subsidiaries


                      Condensed Consolidated Balance Sheets
                         (000 omitted except share data)




                                                                                                    August 31,          February 28,
                                                                                                      1997                  1997
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                               <C>                        <C>

Assets                                                                                            (Unaudited)
Current:
   Cash                                                                                              $  406                  $  454
   Trade receivables, less allowances of $80 and $78
    for possible losses                                                                               1,434                   1,507
   Merchandise inventories                                                                            3,785                   3,243
   Prepaid expenses and other current assets                                                            760                      95
------------------------------------------------------------------------------------------------------------------------------------
           Total current assets                                                                       6,385                   5,299
Property and equipment, at cost less accumulated
 depreciation and amortization                                                                          946                      91
Other assets                                                                                              9                      18
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                                                                                                     $7,340                  $5,408
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Liabilities and Stockholders' Equity
Current:
   Bank loans                                                                                        $3,225                  $1,319
   Accounts payable - trade                                                                              80                     108
   Due to related party                                                                               1,374                   1,353
   Income taxes payable                                                                                 425                     309
   Other taxes                                                                                          269                     198
   Liability for product warranties                                                                      58                      96
   Accrued payroll, commissions and other liabilities                                                   301                     305
------------------------------------------------------------------------------------------------------------------------------------
           Total current liabilities                                                                  5,732                   3,688
Accrued pension costs                                                                                   100                     107
------------------------------------------------------------------------------------------------------------------------------------
           Total liabilities                                                                          5,832                   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                                                                                           (6,151)                 (6,249)
   Accumulated translation adjustment                                                                   627                     830
   Treasury stock, at cost - 37,500 shares                                                             (112)                   (112)
------------------------------------------------------------------------------------------------------------------------------------
           Total stockholders' equity                                                                 1,508                   1,613
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     $7,340                  $5,408
------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to condensed consolidated financial statements.
                                                                                                                            2
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                    AIC International, Inc. and Subsidiaries

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




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

------------------------------------------------------------------------------------------------------------------------------------
Net sales                                                $6,800                  $7,481                $3,503                 $3,694
------------------------------------------------------------------------------------------------------------------------------------
Cost of goods sold                                        4,730                   5,280                 2,471                  2,596

Selling, general and administrative
   expenses                                               1,972                   2,114                   957                  1,078
------------------------------------------------------------------------------------------------------------------------------------
      Total costs and expenses                            6,702                   7,394                 3,428                  3,674
------------------------------------------------------------------------------------------------------------------------------------
Net income                                                   98                      87                    75                     20
------------------------------------------------------------------------------------------------------------------------------------
Net income per share                                   $    .02                 $   .02               $   .02               $      -
------------------------------------------------------------------------------------------------------------------------------------

Weighted average number  of
   shares                                                 4,207                   4,207                 4,207                  4,207
------------------------------------------------------------------------------------------------------------------------------------

     See accompanying notes to condensed consolidated financial statements.

                                                                                                                            3
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                    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 six months ended August 31,
   1997                                                   98          -               -            98        -               -

Aggregate adjustment for the six months ended
   August 31, 1997 resulting from the translation
   of foreign currency statements                       (203)         -               -             -      (203)             -
------------------------------------------------------------------------------------------------------------------------------------
Balance, August 31, 1997                              $1,508        $424         $6,720       $(6,151)     $627           $(112)
------------------------------------------------------------------------------------------------------------------------------------

     See accompanying notes to condensed consolidated financial statements.

4
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                    AIC International, Inc. and Subsidiaries

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



Six months ended August 31,                                                                         1997                        1996
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                                <C>                       <C>
Cash flows from operating activities:
   Net income                                                                                      $  98                     $   87
------------------------------------------------------------------------------------------------------------------------------------
   Adjustments  to  reconcile  net  income  to net cash  provided  by (used  in)
      operating activities:
      Depreciation, amortization                                                                      26                         13
      Increase in provision for possible losses on accounts receiv-
        able                                                                                           2                         12
      Other                                                                                         (203)                      (201)
      Decrease (increase) in:
        Trade receivable                                                                              71                       (263)
        Merchandise inventories                                                                     (542)                       (86)
        Prepaid expenses and other current assets                                                   (665)                      (366)
        Other assets                                                                                   9                         -
      Increase (decrease) in:
        Accounts payable - trade                                                                     (28)                       (11)
        Due to related party                                                                          21                         85
        Taxes payable                                                                                187                        253
        Accrued expenses and other liabilities                                                       (49)                       882
------------------------------------------------------------------------------------------------------------------------------------
      Total adjustments                                                                           (1,171)                       318
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities                                               (1,073)                       405
Cash flows from investing activities:
   Capital expenditures                                                                             (881)                       (23)
Cash flows from financing activities
   Net borrowings from (repayments to) bank                                                        1,906                       (281)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decreased) in cash                                                                     (48)                       101
Cash, beginning of period                                                                            454                        471
------------------------------------------------------------------------------------------------------------------------------------
Cash, end of period                                                                                 $406                      $ 572
------------------------------------------------------------------------------------------------------------------------------------

     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 August 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 28,
                                 1997. Form 10-QSB should be read in conjunction
                                 with such annual report (Form 10-KSB).



                                                                              6

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                    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:  Six months ended August 31, 1997 compared with six
months ended August 31, 1996:



     Net Sales

     For the six months ended August 31, 1997, the Company's net sales decreased
by $681,000 to  $6,800,000  from sales of  $7,481,000  for the six months  ended
August 31, 1996.  Sales by the Company's German  subsidiary,  Soligor GmbH, Foto
Optik Video Electronik  ("Soligor  GmbH"),  increased by DM 514,000 which,  when
combined with changes in the exchange  rate,  resulted in a decrease in sales of
$681,000  after  translation.  The Company's  sales  increased due to efforts of
Soligor GmbH in promoting  the sale of new products  groups,  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  cost of goods sold was 69.6% for the six months
ended  August 31, 1997 as compared to 70.6% for the six months  ended August 31,
1996.



     Selling, General and Administrative Expenses

     For the six months  ended  August 31, 1997 and 1996,  selling,  general and
administrative expenses ("SG & A") were 29.0% and 28.3% of sales,  respectively.
The  increase  in S G & A expenses  as a  percentage  of sales was the result of
decreased net sales.



                                                                              7

<PAGE>



                    AIC International, Inc. and Subsidiaries

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




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



     Net Sales

     Net sales for the three months ended August 31, 1997,  were  $3,503,000  as
compared to $3,694,000 for the three months ended August 31, 1996, a decrease of
$191,000,  or 5%.  Sales by Soligor  GmbH for the three  months ended August 31,
1997 increased by DM 640,000  which,  when combined with changes in the exchange
rate,  resulted  in a  decrease  in sales of  $191,000  after  translation.  The
Company's  sales  increased due to efforts of Soligor GmbH in promoting the sale
of new products  groups,  such as electronic  products and video  equipment,  an
increasing number of accessories, as well as video surveillance equipment.



     Cost of Goods Sold

     For the three months ended August 31, 1997 and 1996,  cost of goods sold as
a percentage of sales was 70.5% and 70.3% 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 Mark and U.S. Dollar.



     Selling, General and Administrative Expenses

     For the three months  ended  August 31, 1997 and 1996 SG & A expenses  were
27.3% and 29.2% of sales, respectively.



                                                                              8

<PAGE>



     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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