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UNITED      STATES

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|                                   New                Jersey                                                                                                                                                                            22-1848316                         -------------------------------                                                                                                                                                                         -----------------------                      (State or other jurisdiction                of                                                                                                                                                      (I.R.S. Employer ID No.)                       incorporation or organization) |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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PART      I – FINANCIAL INFORMATION

|                                                                                                                                                  |   | Page   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                  |   |   |   |   |
| Condensed                Balance Sheets as of September 30, 2002                                                                                      |   | 3      |   |   |
| Condensed                 Statements of Operations for the three and nine months ended September                30,                2002 and 2001 |   | 4      |   |   |
| Condensed                 Statements of Cash Flows for the nine months ended September 30,                2002 and                2001           |   | 5      |   |   |
| Notes                to Financial Statements                                                                                                          |   | 6-9    |   |   |
|                                                                                                                                                  |   |   |   |   |

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| Worlds.com, IncBalance Sheets(Unaudited)As of September 30,                  2002                                 |
|-------------------------------------------------------------------------------------------------------------------|
| Current                  Assets                                                                                   |   |   |   |
| Cash                  and cash                  equivalents                                                       |   |  $ | 9,215 |   |
| Accounts                  recievable                                                                              |   |   | - |   |
| Prepaid                  Expenses                                                                                 |   |   | - |   |
| Inventory                                                                                                         |   |   | - |   |
|                                                                                                              |   |   |   |   |
|                                                                                                              |   |   |   |   |
| Total                  Current                  Assets                                                            |   |   | 9,215 |   |
|                                                                                                              |   |   |   |   |
| Property,                  equipment software                  dev  net of                              |   |   |   |   |
| accumulated                  depreciation                                                                         |   |   | - |   |
|                                                                                                              |   |   |   |   |
|                                                                                                              |   |   |   |   |
| TOTAL                  ASSETS                                                                                     |   |  $ | 9,215 |   |
|                                                                                                              |   |   |   |   |
|                                                                                                              |   |   |   |   |
|                                                                                                              |   |   |   |   |
| Current                  Liabilities                                                                              |   |   |   |   |
| Accounts                  payable                                                                                 |   |   | 1,145,704 |   |
| Accrued                  expenses                                                                                 |   |   | 783,128 |   |
| Deferred                  Revenue                                                                                 |   |   | 631,950 |   |
|  Current                  maturities notes                  payable                                          |   |   | 2,188,312 |   |
|                                                                                                              |   |   |   |   |
| Total                  Current                  Liabilities                                                       |   |   | 4,749,093 |   |
|                                                                                                              |   |   |   |   |
|                                                                                                              |   |   |   |   |
| Stockholders                  Equity                  (Deficit)                                                   |   |   |   |   |
|                                                                                                              |   |   |   |   |
| Common                  stock                                                                                     |   |   | 33,824 |   |
|  Additional                  Paid in                  Capital                                                |   |   | 20,146,723 |   |
|  Accumulated                  Deficit                                                                        |   |   | (24,920,424 | ) |
|                                                                                                              |   |   |   |   |
|  Total                  stockholders                  deficit                                                |   |  $ | (4,739,878 | ) |
|                                                                                                              |   |   |   |   |
|  Total                  Liabilities and                  stockholders deficit                                |   |  $ | 9,215 |   |
| The                  accompanying notes are an integral part of these financial                  statements. |

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| Worlds.com, IncStatements of operations(Unaudited)For the six months                  ended September 30, 2002 |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                |   |   | Nine                  months ended September                  30, |   |   | Three                  months ended September                  30, |   |
|                                                                                                                |   |   | 2002 |   |   | 2001 |   |   | 2002 |   |   | 2001 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|  Revenue                                                                                                       |   |   |  $ | 139,037 |   |   |  $ | 587,560 |   |   |  $ | 16,791 |   |   |  $ | 57,013 |   |
|  Revenue                  from terminated                  K                                                   |                             -  |   |   |   | 834,722 |   |   |   | -  |   |   |   | -  |   |
| Total                                                                                                               |   |   |   | 139,037 |   |   |   | 1,422,282 |   |   |   | 16,791 |   |   |   | 57,013 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                  and                  Expenses                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cost                  of                  Revenue                                                             |   |   |   | 65,659 |   |   |   | 224,675 |   |   |   | 26,785 |   |   |   | 1,438 |   |
|  Selling                  General &                  Admin                                                 |   |   |   | (1,547 | ) |   |   | 2,024,821 |   |   |   | 21,332 |   |   |   | 51,750 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Operating                  income                  (loss)                                                     |   |   |   | 74,926 |   |   |   | (827,214 | ) |   |   | (31,326 | ) |   |   | 3,825 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  Income                  Expense                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest                  Income                                                                              |   |   |   | - |   |   |   | 6,061 |   |   |   | - |   |   |   | 8 |   |
|  Interest                  Expense                                                                             |   |   |   | 115,383 |   |   |   | 863,696 |   |   |   | 38,461 |   |   |   | - |   |
|  Offering                  Expense                                                                             |   |   |   | - |   |   |   | 208,880 |   |   |   | - |   |   |   | 38,461 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Loss                                                                                           |   |  $ | (40,457 | ) |   |  $ | (1,893,729 | ) |   |  $ | (69,787 | ) |   |  $ | (34,628 | ) |
| The                  accompanying notes are an integral part of these financial                  statements.   |

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| Worlds.com,                  IncStatements of Cash Flows(Unaudited)For the nine months ended                  September                  30, 2002 |
|---------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                              |   | 2002 |   |   | 2001 |   |
|                                                                                                                                              |   |   |   |   |   |   |
| Cash                  flows from operating                  activities                                                                            |   |   |   |   |   |   |
|  Net                  Income/(loss)                                                                                                          |   |  $ | (40,457 | ) |   |  $ | (1,859,102 | ) |
| Adjustments                  to reconcile net loss                  to net cash used                                                              |   |   |   |   |   |
|  in                  operating                  activities                                                                                   |   |   |   |   |   |   |   |   |
| Dep&                  amort                                                                                                                   |   |   | - |   |   |   | 185,989 |   |
| Accretion                  of deferred                  revenue                                                                                   |   |   | (66,937 | ) |   |   | (774,639 | ) |
|       Consulting                  expense related to the issuance                                                   |   |   |   |   |   |   |
| of                  stock                  options                                                                                                |   |   | - |   |   |   | 165,000 |   |
| Interest                  in private                  placement                                                                                   |   |   | - |   |   |   | 746,381 |   |
|  Placement                  fee and bonus                  expense paid                                                                      |   |   |   |   |   |   |   |   |
| with                  convertible                  notes                                                                                          |   |   | - |   |   |   | 95,000 |   |
| Accounts                  receivable                                                                                                              |   |   | - |   |   |   | 175,608 |   |
|                        Prepaid                  expenses and other current                  assets                       |   |   |   |   | 218,087 |   |
| inventories                                                                                                                                       |   |   |   |   |   |   | 83,978 |   |
|  accounts                  payable and accrued                  expenses                                                                     |   |   | 103,622 |   |   |   | (229,962 | ) |
| Loan                                                                                                                                              |   |   | 7,100 |   |   |   | - |   |
|                                                                                                                                              |   |   |   |   |   |   |   |   |
|  Net                  cash used in operating                  activities                                                                     |   |   | 3,328 |   |   |   | (1,193,660 | ) |
|                                                                                                                                              |   |   |   |   |   |   |   |   |
| Cash                  flows from investing                  activities                                                                            |   |   |   |   |   |   |   |   |
| Acquisition                  of property and                  equipment                                                                           |   |   | - |   |   |   | - |   |
| Addition                  to software development                  costs                                                                          |   |   | - |   |   |   | (90,404 | ) |
|                                                                                                                                              |   |   |   |   |   |   |   |   |
|  Net                  cash used in investing                  activities                                                                     |   |   |   |   |   |   | (90,404 | ) |
|                                                                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                                                                              |   |   |   |   |   |   |   |   |
| Cash                  flows from financing                  activities                                                                            |   |   | - |   |   |   |   |   |
| Proceeds                  from sale of convertible                  notes                                                                         |   |   | - |   |   |   | 1,250,000 |   |
|                          Net                  cash provided from investing                  activities         |   |   |   |   |   |   |
|                                                                                                                                              |   |   |   |   |   |   |   |   |
| Net                  increase(decrease) in                  cash                                                                                  |   |   | 3,328 |   |   |   | 1,250,000 |   |
|                                                                                                                                              |   |   |   |   |   |   | (34,065 | ) |
| Cash                  beginning of                  period                                                                                        |   |   | 5,888 |   |   |   | 40,489 |   |
|                                                                                                                                              |   |   |   |   |   |   |   |   |
| Cash                  end of                  period                                                                                              |   |  $ | 9,215 |   |   |  $ | 6,424 |   |
|                                                                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                                                                              |   |   |   |   |   |   |   |   |
| Supplemental                  disclosure of cash                  flow information:                                                               |   |   |   |   |   |   |   |   |
| Cash                  paid during the year                  for                                                                                   |   |   |   |   |   |   |   |   |
|                    Interest                                                                                                                  |   |   | - |   |   |   | - |   |
|  Income                  taxes                                                                                                               |   |   | - |   |   |   | - |   |
| The                  accompanying notes are an integral part of these financial                  statements.                                 |

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Liquidity      and Capital Resources

    As      of the end of the period covered by this      report, our Certifying Officers evaluated the effectiveness of our disclosure      controls and procedures. Based on the evaluation, the Certifying Officers      concluded that our disclosure controls and procedures were effective to provide      reasonable assurance 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 applicable      rules and forms, and that it is accumulated and communicated to our management,      including the Certifying Officers, as appropriate to allow timely decisions      regarding required disclosure.

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None.

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|  By: /s/                Thomas Kidrin                       Thomas Kidrin       President,                CEO and Treasurer    By: /s/                Christopher Ryan                       Christopher Ryan                      Chief Financial Officer and                      Principal Accounting Officer |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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XHIBITS

| Exhibit                No. |  | Description                                                                                                                                                      |
|----------------------------|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                            |  |                                                                                                                                                                  |
| 31.1                       |  | Certification                of Chief Executive                Officer                                                                                           |
|                            |  |                                                                                                                                                                  |
| 31.2                       |  | Certification                of Chief Financial                Officer                                                                                           |
|                            |  |                                                                                                                                                                  |
| 32.1                       |  | Statement                required by 18 U.S.C. Section 1350, as adopted                pursuant to section 906 of the Sarbanes-Oxley Act of                2002. |
|                            |  |                                                                                                                                                                  |
| 32.2                       |  | Statement                required by 18 U.S.C. Section 1350, as adopted pursuant to section                906 of                the Sarbanes-Oxley Act of 2002. |