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 November 30, 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 changes 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:

                          November 30, 1997 - 4,207,379



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                             AIC International, Inc.
                                and Subsidiaries

                      Condensed Consolidated Balance Sheets
                         (000 omitted except share data)



                                                                                                     November 30,       February 28,
                                                                                                         1997               1997
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     (Unaudited)
<S>                                                                                                  <C>                     <C>

Assets
Current:
   Cash                                                                                              $   264                 $  454
   Trade receivables, less allowances of $83 and $78
    for possible losses                                                                                1,653                  1,507
   Merchandise inventories                                                                             3,361                  3,243
   Prepaid expenses and other current assets                                                             502                     95
------------------------------------------------------------------------------------------------------------------------------------
           Total current assets                                                                        5,780                  5,299
Property and equipment, at cost less accumulated
 depreciation and amortization                                                                         1,076                     91
Other assets                                                                                               9                     18
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                                                                                                      $6,865                 $5,408
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Liabilities and Stockholders' Equity
Current:
   Bank loans                                                                                          2,517                 $1,319
   Accounts payable - trade                                                                              143                    108
   Due to related party                                                                                1,369                  1,353
   Income taxes payable                                                                                  443                    309
   Other taxes payable                                                                                   321                    198
   Liability for product warranties                                                                       93                     96
   Accrued payroll, commissions and other liabilities                                                    267                    305
------------------------------------------------------------------------------------------------------------------------------------
           Total current liabilities                                                                   5,153                  3,688
   Accrued pension costs                                                                                 102                    107
------------------------------------------------------------------------------------------------------------------------------------
           Total liabilities                                                                           5,255                  3,795
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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                                                                                            (6,115)                (6,249)
   Accumulated translation adjustment                                                                    693                    830
   Treasury stock, at cost - 37,500 shares                                                              (112)                  (112)
------------------------------------------------------------------------------------------------------------------------------------
           Total stockholders' equity                                                                  1,610                  1,613
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                      $6,865                 $5,408
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     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)




                                                    Nine months ended November 30,               Three months ended November 30,
                                           -----------------------------------------------------------------------------------------
                                                           1997                    1996                  1997                   1996
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>                     <C>                    <C>                    <C>

Net sales                                               $10,511                 $12,000                $3,711                 $4,519
------------------------------------------------------------------------------------------------------------------------------------
Cost of goods sold                                        7,320                   8,459                 2,590                  3,179

Selling, general and administrative
   expenses                                               3,057                   3,459                 1,085                  1,345
------------------------------------------------------------------------------------------------------------------------------------
      Total costs and expenses                           10,377                  11,918                 3,675                  4,524
------------------------------------------------------------------------------------------------------------------------------------
Net income (loss)                                       $   134                      82                    36                    (5)
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Net income (loss) per share                             $   .03                 $   .02                $  .01                 $   -
------------------------------------------------------------------------------------------------------------------------------------

Weighted average number  of
   shares                                                 4,207                   4,207                 4,207                  4,207
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      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        $6,270        $(6,249)      $830         $(112)

Net income, for the nine months ended Novem-
   ber 30, 1997                                         134                                       134

Aggregate adjustment for the nine months ended
   November 30, 1997 resulting from the transla-
   tion of foreign currency statements                 (137)                                                (137)
------------------------------------------------------------------------------------------------------------------------------------
Balance, November 30, 1997                           $1,610         $424        $6,270        $(6,115)      $693         $(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)



Nine months ended November 30,                                                                      1997                        1996
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                               <C>                        <C>

Cash flows from operating activities:
   Net income                                                                                     $  134                     $   82
------------------------------------------------------------------------------------------------------------------------------------
   Adjustments to reconcile net income to net cash used in operating activities:
      Depreciation and amortization                                                                   33                         20
      Increase in provision for possible losses on accounts receiv-
        able                                                                                           5                         12
      Other                                                                                         (137)                      (122)
      Decrease (increase) in:
        Trade receivable                                                                            (151)                      (751)
        Merchandise inventories                                                                     (118)                      (172)
        Prepaid expenses and other current assets                                                   (407)                      (391)
        Other assets                                                                                   9                         -
      Increase (decrease) in:
        Accounts payable - trade                                                                      35                        (60)
        Due to related party                                                                          16                        (26)
        Taxes payable                                                                                257                        339
        Accrued expenses and other liabilities                                                       (46)                       222
------------------------------------------------------------------------------------------------------------------------------------
      Total adjustments                                                                             (504)                      (929)
------------------------------------------------------------------------------------------------------------------------------------
Net cash used in operating activities                                                               (370)                      (847)
Cash flows from investing activities:
   Capital expenditures                                                                           (1,018)                       (25)
Cash flows from financing activities
   Net borrowings from bank                                                                        1,198                        732
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Net decrease in cash                                                                                (190)                      (140)
Cash, beginning of period                                                                            454                        471
------------------------------------------------------------------------------------------------------------------------------------
Cash, end of period                                                                               $  264                      $ 331
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     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  November
                                 30, 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:  Nine months ended  November 30, 1997 compared with
nine months ended November 30, 1996:



     Net Sales

     For the nine  months  ended  November  30,  1997 the  Company's  net  sales
decreased by $1,489,000 to $10,511,000  from sales of  $12,000,000  for the nine
months ended  November  30,  1996.  Sales by the  Company's  German  subsidiary,
Soligor GmbH,  Foto Optik Video  Electronik  ("Soligor  GmbH"),  increased by DM
276,000 which,  when combined with changes in the exchange  rate,  resulted in a
decrease in sales of $1,489,000 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 nine months
ended  November 30, 1997 as compared to 70.5% for the nine months ended November
30, 1996. The decrease in cost of goods sold as a percentage of sales was caused
by changes of exchange rate on Japanese Yen, Dutch Mark and U.S. Dollars.



     Selling, General and Administrative Expenses

     For the nine months ended November 30, 1997 and 1996, selling,  general and
administrative ("SG & A") expenses were 29.1% and 28.8% of sales,  respectively.
The  increase  in SG & A  expenses  as a  percentage  of sales was the result of
decreased net sales.



                                                                              7

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                    AIC International, Inc. and Subsidiaries

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




     Results of  Operations:  Three months ended November 30, 1997 compared with
three months ended November 30, 1996:



     Net Sales

     Net sales for the three months ended  November 30, 1997 were  $3,711,000 as
compared to $4,519,000  for the three months ended November 30, 1996, a decrease
of $808,000, or 17.9%. Sales by Soligor GmbH for the three months ended November
30, 1997  decreased by DM 238,000,  which when combined with changes in exchange
rate,  resulted  in a  decrease  in sales of  $808,000  after  translation.  The
Company's  sales  decreased  due to slow  spending of the consumers in the whole
Europe after the vacation season.



     Cost of Goods Sold

     For the three months ended  November 30, 1997 and 1996,  cost of goods sold
as a  percentage  of sales  was 69.8%  and  70.3% of  sales,  respectively.  The
decrease in cost of goods sold as a percentage of sales was caused by changes of
exchange rate on Japanese Yen, Dutch Mark and U.S. Dollars.



     Selling, General and Administrative Expenses

     For the three months ended November 30, 1997 and 1996 S G & A expenses were
29.2% and 29.8% of sales, respectively.



                                                                              8

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                    AIC International, Inc. and Subsidiaries

                                   Signatures





     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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