U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                   FORM 10-KSB



[X]     ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
        OF 1934 for the year ended December 31, 2002

[ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934 for the transition period from _______ to _______

COMMISSION FILE NUMBER: 333-87992
---------------------------------

                            DIAMOND POWERSPORTS, INC.
                            -------------------------
        (Exact name of small business issuer as specified in its charter)


          Florida                              65-0419601
          -------                              ----------
(State or other jurisdiction of        (IRS Employer identification
incorporation or organization)                      No.)


                 10145 N.W. 46th Street, Sunrise, Florida 33351
                 ----------------------------------------------
                    (Address of principal executive offices)

                                 (954) 749-8606
                                 --------------
                           (Issuer's telephone number)

Securities registered under Section 12(b) of the Exchange Act:

None.

Securities registered under Section 12(g) of the Exchange Act:

Common Stock, $.001 par value

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 [  ]

Check  if there is no disclosure of delinquent filers in response to Item 405 of
Regulation  S-B  contained in this form, and no disclosure will be contained, to
the  best  of  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in  Part  III of this Form 10-KSB or an
amendment  to  this  Form  10-KSB.  [x]

State issuer's revenues for its most recent fiscal year: $585,197.

As  of  April  22,  2003  there were 9,495,700 common shares outstanding and the
aggregate  market  value of the common shares (based upon the average of the bid
price  of  $.30  and  the  asked  price  of  $.51  reported  by brokers) held by
non-affiliates  was  approximately  $2,848,710.

Transitional  Small  Business  Disclosure  Format  (check  one):  Yes[  ]  No[X]

Number of shares of common stock outstanding as of April 22, 2003:    9,495,700
Number of shares of preferred stock outstanding as of April 22, 2003:       -0-


                                     PART I
                                     ------

ITEM 1.     DESCRIPTION OF BUSINESS

     Unless  the  context  requires otherwise, the terms "We" and "Our" refer to
Diamond  Powersports,  Inc.,  a  Florida  corporation,  and  any  predecessors.
Originally incorporated in May 1992 in Florida as Diamond Racing, Inc., the name
was  changed  in  August  of  1999  to  Diamond  Powersports,  Inc.  to  reflect
management's  plans  to enter additional segments of the powersports apparel and
accessory  market.  The  "powersports"  market  consists primarily of street and
off-road  motorcycles,  ATVs, and small watercrafts such as jet skis and powered
kayaks.

     Since  1992,  our  Diamond  Powersports,  Inc.  has concentrated operations
primarily  on  the  motorcycle  accessory and apparel industry. Specifically, we
have  focused on the street motorcycle and cruiser segments of the accessory and
apparel  industry.

     Our  operations  primarily  involve  motorcycle  accessory  and  apparel
manufacturing  and  distributing,  specializing  in  affordable  brand  name and
after-market  products.  Through our emphasis on budget pricing and high quality
products,  we  have  developed  a market in the motorcycle accessory and apparel
industry.  We  currently  operate  one office that is maintained by a management
team  of  four  individuals.  The  present  geographic  area we operate includes
primarily  the  Eastern  United  States.  We  are currently expanding our market
presence  to  the middle and western United States. Additional markets have also
developed  in  the  Caribbean  islands  and  Puerto  Rico.

     Marketing  for our products is accomplished through print ads in magazines,
Internet  advertising  as well as wholesale referral. Additionally, we utilize a
network  of  industry  wholesale  buyers  to  sell  large  product  quantities.

     The  motorcycle  accessory  and apparel industry is highly competitive with
respect to price, service, quality, and location. There are numerous competitors
in  the motorcycle accessory and apparel industry such as Dennis Kirk, Chaparral
and  Pro-Tek  that possess substantially greater financial, marketing, personnel
and  other resources than Diamond Powersports. There can be no assurance that we
will  be  able to respond to various competitive factors affecting the business.
We  plan  to gain a competitive advantage over our competitors in the motorcycle
accessories  and  parts  industry  by manufacturing our own quality products and
services  and  offering  them  at a low price. We also distribute other products
through  wholesale  dealers  and  to  retail  customers.

     Our  services  include  international  shipping  and  a  fifteen day refund
policy,  which many industry distributors do not currently offer. We believe our
product prices, product quality and good customer service will differentiate our
products  from our competitors. For example, many of our listed prices currently
match  or  are  lower  than  the  advertised prices of our major competitors. In
addition,  the  aluminum  metal alloy used in our lowering links is a 7075 alloy
that  has  been  tested by Kaiser Aluminum, a non-affiliate, to be stronger than
most  traditional  metal  alloys.  Our  other  products use a 6061 alloy that is
slightly  less in strength than the 7075 alloy but remains stronger than most of
our  competitors  products.  There are some competitors currently using the 6061
alloy  in  their  products but we are not currently aware of any other companies
using 7075 aluminum alloy in lowering links. Also, we offer next day shipping on
our  products  and  our customer service professionals have an average of twenty
years  in  the  motorcycle  industry  which  allows  them  to  better  serve our
customers.  We are committed to gaining a competitive advantage in our industry.
However,  since  many  of  our  competitors  have greater brand loyalty and more
capital resources than we do, there can be no assurance we will be successful in
gaining  that  competitive  advantage  in  our  marketplace.

     The  main  markets  for  Diamond  Powersports  are  motorcycle  dealers and
wholesale  buyers  and  no single customer makes up more than ten percent of the
total  revenues  of  Diamond  Powersports,  Inc. We do not expect that this will
change  in  the  future.

     We  have  six  full-time employees. We also have two management consultants
that  are  each  independently  contracted  with by Diamond Powersports, Inc. to
service  and  provide financial consulting and services relating our filings and
compliance  with  the  Securities  and  Exchange  Commission.

Our  product  line  consists  primarily  of  the  following:
-     Bar end sliders     Ignitions               Sprockets
-     Clutch cable kits   Lowering links          Tires
-     Chains              Mirror block-off caps   Transmission and clutch parts
-     Flame sliders       Oil pans                Valves
-     Frame sliders       Piston kits             Wheels
-     Fuel valves         R1 swing arm sliders    Other motorcycle components
-     Foot peg sliders    RPM limiters

     We  currently  manufacture  and assemble the frame sliders, lowering links,
adjustable  kick  stands,  top  clamps  and  180  other  motorcycle parts. Other
products  are  purchased  on a wholesale basis from manufacturers. We accomplish
our  manufacturing  either  in our warehouse facility or through our arrangement
with  Henderson  Industrial  Technology with whom we have a written agreement to
outsource  certain  alloy  metal  product  manufacturing  at  fixed  prices. Our
agreement  with  Henderson  Industrial  technologies  is  exclusive  and  other
companies  may  not utilize their manufacturing services as well. This agreement
can  be cancelled by either party at any time with 30 days written notice. We do
not  typically  provide  installation  services  for  our  products.

     Diamond  Powersports  does not expect that any single customer will account
for  more than ten percent of our business. At the present time there is no need
for  governmental  approvals,  though  this  may  change  in  the  future.

     The  Diamond  Powersports, Inc. staff is projected at 4-5 new employees for
the  next  twelve  months.  The  three managers that are presently on staff will
supervise  these  new  employees.

MANUFACTURING  AND  DISTRIBUTING

     Our  inventory  consists  of  products  which  we  either  purchase  from
wholesalers  or  manufacture  under  our  brand name Diamond Powersports. Of our
2,500  total  square  feet  of  facility,  900  square  feet  is  dedicated  to
manufacturing,  assembly  and  packaging  of  our  products. We also subcontract
approximately  fifty  percent  of  our  manufacturing  to  a local machine shop.
Currently,  we use Henderson Industrial Technology in Ft. Lauderdale, Florida to
manufacture  our own line of motorcycle parts and accessories. We have a written
agreements  with  respect  to  our  manufacturing  arrangements  with  Henderson
Industrial  Technology  which  is  filed  as  an exhibit to our Form 10-KSB. Our
agreement  can  be  cancelled  by  either party at any time with 30 days written
notice. Henderson Industrial Technology assists us with manufacturing of certain
alloy  metal  products  at  fixed  prices  per unit. However, we still assemble,
package  and  ship  the  products  manufactured  from our location. If Henderson
Industrial  Technology was unable to fulfill our product manufacturing, we could
use  other  local  machine  shops  with  approximately  the  same  terms.

ENVIRONMENTAL  LAW  COMPLIANCE

     There  are no current existing environmental concerns for our manufacturing
or  our  products  and  services.  If  this changes in the future, we make every
effort  to  comply  with  all  such  applicable  regulations.

Additional  Financing

     The  Company  may  need  to  raise  additional  funds  to  meet  operating
requirements  in  the  future.  If  the  Company raises additional funds through
issuance  of  equity related or debt securities, such securities may have rights
to  the  Company's  common  stock, such as warrants or options. Shareholders may
experience  additional  dilution  from exercise of these equity instruments. The
Company  cannot  be  certain  that  additional  financing will be available when
required  or  at  all.  (See  'Liquidity  and  Capital  Resources'  for  further
discussion.






ITEM  2.  PROPERTIES

     Our executive offices are located at 10145 Northwest 46th Street - Sunrise,
Florida  33351.  These  offices  consist of 2,500 square feet. In April 2002, we
renewed  our operating lease for two more years through April 30, 2004. However,
with  90  days  written  notice  we may terminate our lease and relocate without
penalty.  Pursuant  to  the  new  terms of the extended lease, we pay $1,749 per
month.  Rental  payments  and  related expense for the years ending December 31,
2002  and 2001 were $19,995 and $18,188, respectively. In the second year of our
lease,  payments  will  be  nominally  increased  to  $1,802  per month. We also
maintain  a  standard general comprehensive public liability insurance policy as
part of our lease agreement. We project that our current offices will need to be
expanded  in  the  future  to handle anticipated capacity resulting from Diamond
Powersports'  growth.  Our  landlord  has  orally  agreed  to an option to lease
neighboring  warehouse  bays, which will be an additional 2,500 square feet, for
an  additional  $1,850  per month. This new lease would carry a minimum one-year
lease  term.

ITEM  3.  LEGAL  PROCEEDINGS

We  are not a party to any legal proceedings, nor, to the best of our knowledge,
are  any  such  proceedings  threatened  or  contemplated.

ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

None.

                                     PART II
                                     -------

ITEM  5.  MARKET  FOR  THE REGISTRANT'S COMMON STOCK AND RELATED SECURITY HOLDER
MATTERS

(a)     The  principal  market  in  which  our  common  stock  is  traded is the
Over-the-Counter  Bulletin  Board. The table below presents the high and low bid
price  for our common stock each quarter since its initial quotation in 2003 and
reflects  inter-dealer  prices,  without retail markup, markdown, or commission,
and may not represent actual transactions. We obtained the following information
from  brokers  who  make  a  market  in  our  securities.

                      Bid
                      ---
Quarter Ended     Low     High
-------------     ---     ----

12/31/02*        .31     .34

(b) Holders. The approximate number of holders of record of the Registrant's
Common Stock as of April 22, 2003 was 50.

(c) The Registrant has not paid dividends from inception to date and does not
currently intend to do so.

* No trading prior to this date.

Penny  Stock  Characterization

     Our  Shares  are  "penny  stocks"  within  the  definition  of that term as
contained  in  the  Securities  Exchange Act of 1934, which are generally equity
securities  with  a price of less than $5.00. Our shares will then be subject to
rules  that  impose  sales  practice  and  disclosure  requirements  on  certain
broker-dealers who engage in certain transactions involving a penny stock. These
will  impose  restrictions  on  the  marketability  of  the  common  stock.

     Under  the  penny stock regulations, a broker-dealer selling penny stock to
anyone  other  than an established customer or "accredited investor" must make a
special  suitability  determination  for  the  purchaser  and  must  receive the
purchaser's  written  consent  to  the transaction prior to the sale, unless the
broker-dealer is otherwise exempt.  Generally, an individual with a net worth in
excess  of  $1,000,000  or  annual  income  exceeding  $200,000  individually or
$300,000  together  with his or her spouse is considered an accredited investor.
In  addition,  unless  the broker-dealer or the transaction is otherwise exempt,
the  penny  stock regulations require the broker-dealer to deliver, prior to any
transaction  involving  a  penny  stock,  a  disclosure schedule prepared by the
Securities  and  Exchange  Commission  relating  to  the  penny stock market.  A
broker-dealer  is  also  required  to  disclose  commissions  payable  to  the
broker-dealer  and  the  Registered  Representative  and  current  bid and offer
quotations  for  the securities. In addition a broker-dealer is required to send
monthly statements disclosing recent price information with respect to the penny
stock  held  in  a  customer's  account,  the  account's  value  and information
regarding the limited market in penny stocks.  As a result of these regulations,
the  ability  of  broker-dealers  to  sell  our  stock may affect the ability of
selling  security holders or other holders to sell their shares in the secondary
market.  In  addition,  the  penny stock rules generally require that prior to a
transaction  in  a  penny  stock,  the  broker-dealer  make  a  special  written
determination  that  the  penny stock is a suitable investment for the purchaser
and  receive  the  purchaser's  written  agreement  to  the  transaction.

These  disclosure  requirements  may  have  the  effect of reducing the level of
trading activity in the secondary market for a stock that becomes subject to the
penny  stock  rules. These additional sales practice and disclosure requirements
could  impede  the  sale  of  our  securities, if our securities become publicly
traded.  In  addition,  the  liquidity  for  our  securities  may  be  adversely
affected,  with  concomitant adverse affects on the price of our securities. Our
shares  may  someday  be  subject to such penny stock rules and our shareholders
will,  in  all  likelihood,  find  it  difficult  to  sell  their  securities.

     We  have  no  outstanding  options  and  no  outstanding  warrants.









ITEM 6.     MANAGEMENT'S DISCUSSION AND ANALYSIS

Introduction

     The  discussion  contained  in  this  prospectus  contains "forward-looking
statements"  that  involve  risk  and  uncertainties.  These  statements  may be
identified  by  the  use  of  terminology such as "believes", "expects",  "may",
"will", or "should", or "anticipates", or expressing this terminology negatively
or similar expressions or by discussions of strategy.  The cautionary statements
made  in  this  prospectus  should  be  read  as being applicable to all related
forward-looking  statements  wherever they appear in this prospectus. Our actual
results  could  differ  materially  from  those  discussed  in  this prospectus.
Important  factors  that  could  cause or contribute to such differences include
those  discussed  under  the  caption  entitled "risk factors," as well as those
discussed  elsewhere  in  this  prospectus.

     We  were  incorporated in Florida on May 13, 1992 to engage in the business
of  distributing motorcycle parts and accessories primarily in the South Florida
area.  Our  products  and  services  are  offered  to  both retail consumers and
wholesale  buyers. Orders for our products are typically shipped in one to three
days  from the time of order. All retail and wholesale orders are fulfilled from
our  warehouse  location  in Sunrise, Florida. We do not have a retail showroom.
Our  retail  customers  typically  locate Diamond Powersports through either our
product  catalog  or  print advertisements in industry publications. Our current
plans include opening a traveling showroom contained in a semi truck and tractor
trailer that will profile and deliver our products throughout the United States.

     We  have  developed  a  strategy  to expand our operations. Currently, this
business  plan  includes:
-     Growing  our revenues through new product offerings. During 2001 and 2002,
we  released  several  new  products  including  frame sliders, wheels, lowering
links,  adjustable  kick  stands  and  top  clamps.
-     Increase the marketing of our products to additional geographical areas.
Although we currently deliver our products on a national and international
basis, we focus the majority of our marketing efforts within the Eastern United
States. We plan to increase our marketing efforts to other markets. For example,
we have looked into marketing such areas as central Florida and North Carolina.
-     Reducing costs of sales through strategic vendor relationships. Many of
our vendors have orally agreed to provide discounts or additional credit terms
if our volume of buying increases. We believe an increase in our purchasing will
reduce our cost of sales as a percentage of sales.
-     Obtain additional funding. Currently, our assets and income are
insufficient to fund our business plan. We may need to raise capital through
debt or a follow on stock offering. We presently have no commitments for either
of these sources of funding. Our business plan may be adversely affected if we
are unable to raise additional capital.




<TABLE>
<CAPTION>



<S>                                <C>                       <C>

Selected financial data
-------------------------
                                          Year Ended December 31
                                        ------------------------
                                              2002         2001
                           ------------------------  -----------
Net Sales . . . . . . . .  $               585,197   $  361,139
                           ------------------------  -----------
Net Loss. . . . . . . . .                 (482,596)    (133,956)
                           ------------------------  -----------
Net Loss per
Common Share. . . . . . .                     (.05)        (.02)
                           ------------------------  -----------
Weighted Average
Common Shares Outstanding                9,050,500    8,567,400
                           ------------------------  -----------

                                             As of  December 31,
                                       -------------------------
                                              2002         2001
                           ------------------------  -----------
Total Assets. . . . . . .  $                70,748   $  168,874
                           ------------------------  -----------
Working Capital . . . . .                  493,733      430,113
                           ------------------------  -----------
Shareholders' Equity. . .                 (489,680)    (377,731)
                           ------------------------  -----------

</TABLE>



No dividends have been declared or paid for any of the periods presented.
-------------------------------------------------------------------------

Results  of  Operations
-----------------------

Year Ended December 31, 2002 Compared to Year Ended December 31, 2001

Sales.
          Sales  for the year ended December 31, 2002 were $585,197 versus sales
of  $361,139  for  the  year  ended  December  31,  2001, an increase of 62%. We
attribute  the  increase in sales to new and improved parts as well as a growing
awareness  of  our products. Product sales consisted primarily of the following:
-     Bar end sliders     Ignitions               Sprockets
-     Clutch cable kits   Lowering links          Tires
-     Chains              Mirror block-off caps   Transmission and clutch parts
-     Flame sliders       Oil pans                Valves
-     Frame sliders       Piston kits             Wheels
-     Fuel valves         R1 swing arm sliders    Other motorcycle components
-     Foot peg sliders    RPM limiters

          All revenues were from unrelated third parties and were made to retail
consumers  and  wholesale  buyers.

Cost  of  Goods  Sold.
     The  cost  of  goods  sold  includes  the  purchase price for our parts and
accessories  plus  other  direct  costs  associated  with  making  the  products
available  for  resale.  It is customary to experience variations in the cost of
sales  as  a  percentage  of net sales based on the types of products sold.  Our
gross  margins  typically  range  between  30-200%.

          The  cost  of  goods  sold  for  the  year ended December 31, 2002 was
$406,715  versus  $284,646  in  the  same  period  in  2001.  Cost of sales as a
percentage  of  sales was 70% for 2002 and was 79% in 2001. The decrease in cost
of  sales  as a percentage of sales was due to better gross margins in 2002 from
new  products.

          If we can successfully grow our revenues through sales of these higher
margin  products,  our cost of sales as a percentage of sales should be lower in
future  periods. In addition, volume discounts will be available to us if we are
successful  in  achieving  sales growth in the future, which will further reduce
our  cost  of  sales  as  a  percentage  of  sales.

Expenses.

          Selling,  general  and  administrative  expenses  for  the years ended
December 31, 2002 and 2001 were $631,944 and $180,380, respectively, an increase
of  $451,564.  The  increase  in expenses was primarily attributable to non-cash
expenses  in  connection  with  778,000  shares  of  common  stock  issued  for
professional  services  valued  at  $.50 per share, or an aggregate of $389,000.

          Our other selling, general and administrative expenses remained either
fixed  or  relatively  constant  during  2002.

          We  expect  increases  in  expenses  through  the year 2003 as we move
towards  developing our business plan. We expect the increase to be primarily in
sales  related  expenses  such  as  advertising  and  salespersons'  salaries.


Income/  Losses.

          Net  loss  for  the  year  ended December 31, 2002 was $482,596 versus
$133,956  in  2001,  an  increase  of  $348,640. The increase was also primarily
attributable  the  $389,000 in stock issued for professional services during the
period,  partially offset by the increase of gross profit of $101,989. We expect
to continue to incur losses at least through the first half of the year 2003. In
addition,  there  can  be  no  assurance  that  we  will  achieve  or  maintain
profitability  or  that  our  revenue  growth  can  be  sustained in the future.

Impact  of  Inflation.

     We  believe  that inflation has had a negligible effect on operations since
inception.  We  believe that we can offset inflationary increases in the cost of
labor  by  increasing  sales  and  improving  operating  efficiencies.

Liquidity  and  Capital  Resources.

          Cash  flows  provided  by  operations  were $21,309 for the year ended
December  31, 2002 versus cash used of $14,468 in 2001. Cash flows for 2002 were
primarily  from  the  issuances  of common stock for services and an increase in
accounts  payable  and  accrued  expenses of $389,000 and $64,625, respectively,
partially  offset  by  the  net  loss  for  the  period  of  $482,596.

          Cash  flows  used  in  financing activities were $27,173 for the years
ended December 31, 2002 versus a positive $20,332 during the year ended in 2001.
Cash  flows  for  the  2002  included  $40,333  in  shareholder loan repayments,
partially offset by $19,150 in proceeds from common stock that was sold pursuant
to  a  private  offering. Cash flows for the 2001 included $4,304 in shareholder
loan  proceeds  and  $14,000 from common stock issuances. Stockholder loans bear
interest  at  8% per annum and are unsecured by Diamond Powersports' assets. The
stockholder  loan  is  not  evidenced  by  a written note, but rather is an oral
agreement  between  the  stockholder  and  Diamond  Powersports. Cash flows from
financing activities for both years also included bank borrowings and repayments
pursuant  to  two  bank  lines  of  credit which bear interest between 10.25 and
17.9%.  The  credit  lines  are  unsecured  and  are  due  on  demand.

     Going  concern  opinion. As shown in our accompanying financial statements,
our  independent  auditors  have  raised  substantial doubt about its ability to
continue as a going concern. The ability of Diamond Powersports to continue as a
going  concern  is  dependent  on developing operations, increasing revenues and
obtaining  new  capital.  Management  has  enacted the following plan to address
these  issues:  (1)  obtain  funding from new investors to alleviate the Diamond
Powersports' capital deficiency, (2) refinance existing debt on existing assets,
and  (2)  seek  additional distribution affiliates to increase sales and improve
cash  flows  for  Diamond  Powersports.

     Bank  Line  of  Credit. Diamond Powersports has two unsecured bank lines of
credit  bearing interest between 10.25% and 17.9% at December 31, 2002 which are
due  on  demand. The lines of credit have a maximum credit available of $60,000.
The  principal  balance outstanding at December 31, 2002 was $52,762.  The lines
of  credit  are  guaranteed  by our President, Mr. Pierre Elliott.  The lines of
credit  have a revolving feature, similar to a credit card where minimum monthly
payments  are  due.  These minimum payments are currently around $410 per month.
There  is  not a formal written agreement in connection with these credit lines.

     During  the  first  quarter  of  2002, we raised $19,150 in a private stock
offering  towards  working capital. We estimate we will still need approximately
$50,000  in additional capital during 2003. If revenues increase during 2003, we
may  have  sufficient  cash  flow from operations. Otherwise, we will attempt to
raise  the  additional  funds through either debt or a follow-on stock offering.
During  2002,  we  had  a  positive  $21,309  from  operations.

          Overall, we have funded our cash needs from inception through December
31,  2002  with a series of debt and equity transactions, primarily with related
parties.  If  we are unable to receive additional cash from our related parties,
we  may  need  to  rely on financing from outside sources through debt or equity
transactions.  Our  related  parties are under no legal obligation to provide us
with  capital  infusions. Failure to obtain such financing could have a material
adverse  effect  on  operations  and  financial  condition.

          We had no cash on hand and a working capital deficit of $493,733 as of
December  31,  2002. We had cash on hand of $5,864 and a working capital deficit
of  $490,885  as  of December 31, 2001. Our working capital deficit is primarily
due to current obligations in accounts payable, accrued payroll for stockholders
and  loans  from  stockholders.  We  will substantially rely on the existence of
revenue  from  our  business;  however,  we have no current or projected capital
reserves  that  will sustain our business for the next 12 months.  Currently, we
have  enough  cash to fund our operations for about six months. This is based on
current  cash  flows  from  operations  and  projected  revenues.  Also,  if the
projected  revenues  fall  short of needed capital we may not be able to sustain
our  capital  needs.  We  will  then  need  to obtain additional capital through
equity or debt financing to sustain operations for an additional year. A lack of
significant  revenues  in  2003  will significantly affect our cash position and
move  us towards a position where the raising of additional funds through equity
or  debt  financing  will  be  necessary.  Our current level of operations would
require capital of approximately $50,000 to sustain operations through year 2003
and  approximately  $100,000  per year thereafter. Modifications to our business
plans or a new retail location may require additional capital for us to operate.
For  example,  if we are unable to raise additional capital in the future we may
need  to curtail our number of new product offers or limit our marketing efforts
to the most profitable geographical areas. This may result in lower revenues and
market  share  for  Diamond  Powersports. In addition, there can be no assurance
that  additional  capital  will  be  available to us when needed or available on
terms  favorable  to  Diamond  Powersports.

          On  a  long-term  basis,  liquidity  is  dependent on continuation and
expansion  of  operations,  receipt  of  revenues,  and  additional infusions of
capital  and  debt financing.  We are considering opening new traveling showroom
locations  during the second half of 2003.  Our current capital and revenues are
insufficient  to  fund  such expansion. If we choose to launch such an expansion
campaign,  we  will  require  substantially  more capital. If necessary, we will
raise  this capital through an additional stock offering.  The funds raised from
this offering will be used to market our products and services as well as expand
operations  and  contribute  to  working  capital.  However,  there  can  be  no
assurance  that we will be able to obtain additional equity or debt financing in
the future, if at all.  If we are unable to raise additional capital, our growth
potential  will  be  adversely affected and we will have to significantly modify
our  plans. For example, if we unable to raise sufficient capital to develop our
business  plan,  we  may  need  to:
-     Curtail  new  product  launches
-     Forego or postpone opening new traveling showrooms, or
-     Limit our future marketing efforts to areas that we believe would be the
-     most profitable.

          Demand for the products and services will be dependent on, among other
things,  market acceptance of our products, the motorcycle parts and accessories
market  in  general,  and  general  economic  conditions,  which are cyclical in
nature.  Inasmuch  as  a  major  portion  of  our  activities  is the receipt of
revenues  from  the  sales  of  our  products,  our  business  operations may be
adversely  affected  by  our  competitors  and  prolonged  recession  periods.

     Our  success will be dependent upon implementing our plan of operations and
the  risks associated with our business plans. We operate a motorcycle parts and
accessories  distribution business to retail consumers and wholesale buyers.  We
plan  to  strengthen  our  position in these markets. We also plan to expand our
operations  through  aggressively  marketing  our  products and Company concept.

ITEM  7.  FINANCIAL  STATEMENTS




                 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTS
                 -----------------------------------------------

To the Board of Directors and Shareholders of
Diamond Powersports, Inc.

We  have  audited the accompanying balance sheet of Diamond Powersports, Inc. as
of  December  31,  2002  and the related statements of operations, stockholders'
deficit,  and  cash  flows for the years ended December 31, 2002 and 2001. These
financial  statements  are  the  responsibility of the Company's management. Our
responsibility  is  to express an opinion on these financial statements based on
our  audits.

We conducted our audits in accordance with auditing standards generally accepted
in  the  United  States  of  America.  Those  standards require that we plan and
perform  the  audits  to obtain reasonable assurance about whether the financial
statements  are free from material misstatement. An audit includes examining, on
a  test  basis, evidence supporting the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made  by  management,  as well as evaluating the overall
financial  statement  presentation.  We  believe  that  our  audits  provide  a
reasonable  basis  for  our  opinion.

In  our  opinion,  the financial statements referred to above present fairly, in
all material respects, the financial position of Diamond Powersports, Inc. as of
December  31,  2002 and the results of its operations and its cash flows for the
years  ended December 31, 2002 and 2001 in conformity with accounting principles
generally  accepted  in  the  United  States  of  America.

The  accompanying  financial  statements have been prepared assuming the Company
will  continue  as  a  going concern. The Company has suffered recurring losses,
negative working capital and certain debt is in default which raises substantial
doubt  about  its  ability to continue as a going concern. Management's plans in
regard to these matters are described in Note B. The financial statements do not
include  any adjustments that might result from the outcome of this uncertainty.


Perrella & Associates, P. A.
Pompano Beach, Florida
April 11, 2003











<TABLE>
<CAPTION>


                            DIAMOND POWERSPORTS, INC.
                                  BALANCE SHEET
                                DECEMBER 31, 2002
                                =================


               ASSETS
               ------



<S>                               <C>

CURRENT ASSETS
--------------------------------
  Cash and cash equivalents. . .  $  - 0 -
  Accounts receivable, net . . .     9,130
  Inventory. . . . . . . . . . .    57,565
                                  ---------
  TOTAL CURRENT ASSETS . . . . .    66,695
                                  ---------

PROPERTY AND EQUIPMENT
--------------------------------
  Machinery & equipment. . . . .    44,999
  Furniture & fixtures . . . . .     5,790
  Transportation equipment . . .     9,000
  Accumulated depreciation . . .   (56,036)
                                  ---------
      NET PROPERTY AND EQUIPMENT     3,753
                                  ---------

OTHER ASSETS
--------------------------------
  Deposits . . . . . . . . . . .       300
                                  ---------
                                       300
                                  ---------

    TOTAL ASSETS . . . . . . . .  $ 70,748
                                   ========


</TABLE>






   The accompanying notes are an integral part of these financial statements.

<TABLE>
<CAPTION>


                            DIAMOND POWERSPORTS, INC.
                                 BALANCE SHEET
                               DECEMBER 31, 2002
                              ===================


                      LIABILITIES AND STOCKHOLDERS' DEFICIT
                      -------------------------------------




<S>                                                       <C>
CURRENT LIABILITIES
--------------------------------------------------------
Bank overdraft . . . . . . . . . . . . . . . . . . . .    $     1,094
Note payable to bank . . . . . . . . . . . . . . . . . .       54,518
Bank line of credit. . . . . . . . . . . . . . . . . . .       52,762
Accounts payable . . . . . . . . . . . . . . . . . . . .      171,606
Accrued compensation, shareholders . . . . . . . . . .        259,696
Shareholder loan . . . . . . . . . . . . . . . . . . . .       20,751
                                                          ------------
    TOTAL CURRENT LIABILITIES. . . . . . . . . . . . . .      560,428
                                                          ------------

STOCKHOLDERS' DEFICIT
--------------------------------------------------------
Preferred stock (no par value, 5,000,000 shares
    authorized; none issued and outstanding) . . . . . .          -0-
Common Stock ($.001 par value, 100,000,000 shares
    authorized; 9,495,700 shares issued and outstanding)        9,496
Paid-in-Capital. . . . . . . . . . . . . . . . . . . .        547,304
Retained Deficit . . . . . . . . . . . . . . . . . . .     (1,046,480)
                                                          ------------
      TOTAL STOCKHOLDERS' DEFICIT. . . . . . . . . . . .     (489,680)
                                                          ------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT. . . . . . . .$    70,748
                                                          ============
</TABLE>














   The accompanying notes are an integral part of these financial statements.


<TABLE>
<CAPTION>


                            DIAMOND POWERSPORTS, INC.
                            STATEMENTS OF OPERATIONS
                 FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
                 ==============================================


<S>                                                 <C>          <C>
                                                       2002         2001
                                                    -----------  -----------
REVENUE
--------------------------------------------------
  Net sales. . . . . . . . . . . . . . . . . . . .  $  585,197   $  361,139
  Cost of goods sold . . . . . . . . . . . . . . .    (406,715)    (284,646)
                                                    -----------  -----------
  GROSS PROFIT . . . . . . . . . . . . . . . . . .     178,482       76,493
                                                    -----------  -----------
EXPENSES
--------------------------------------------------
  Selling, general and administrative. . . . . . .     631,944      180,380
                                                    -----------  -----------


    OPERATING INCOME (LOSS). . . . . . . . . . . .    (453,462)    (103,887)


OTHER EXPENSE
--------------------------------------------------
  Interest expense . . . . . . . . . . . . . . . .      29,134       30,069
                                                    -----------  -----------


    NET LOSS . . . . . . . . . . . . . . . . . . .  $ (482,596)  $ (133,956)
                                                    ===========  ===========

Basic and fully diluted net loss per common share.  $     (.05)  $     (.02)
                                                    ===========  ===========

Weighted average common shares . . . . . . . . . .   9,050,500    8,567,400
                                                    ===========  ===========

</TABLE>
















   The accompanying notes are an integral part of these financial statements.


<TABLE>
<CAPTION>


                                        DIAMOND POWERSPORTS, INC.
                                   STATEMENT OF STOCKHOLDERS' DEFICIT
                       FOR THE YEARS ENDED DECEMBER 31, 2002 AND DECEMBER 31, 2001
                       ===========================================================

<S>                             <C>         <C>                     <C>         <C>
                                                    Common       Additional
                                  Common            Stock        Paid-in        Retained
                                  Shares            $.001 Par    Capital        Deficit
------------------------------  ---------------------------------------------------------
Balances, January 1, 2001. . .   8,567,400  $       8,567  $       108,583    $(429,928)

Common stock sold. . . . . . .      42,000             42           13,958

Net loss for 2001. . . . . . .         -0-             -0-               -0-    (133,956)
                                ---------------------------------------------------------

Balances, December 31, 2001. .   8,609,400           8,609          122,541     (563,884)

Conversion of convertible debt      70,000              70           17,430         -0-

Common stock sold. . . . . . .      38,300              39           19,111         -0-

Common stock issued -
     exchange for services . .     778,000             778          388,222         -0-

Net loss for 2002. . . . . . .         -0-              -0-              -0-    (482,596)
                                ---------------------------------------------------------

Balances, December 31, 2002. .   9,495,700  $        9,496          547,304  $(1,046,480)
                                ==========  ==============   ==============  ============

</TABLE>















     The accompanying notes are an integral part of these financial statements.

<TABLE>
<CAPTION>


                                             DIAMOND POWERSPORTS, INC.
                                              STATEMENTS OF CASH FLOWS
                            FOR THE YEARS ENDED DECEMBER 31, 2002 AND DECEMBER 31, 2001
                            ===========================================================

<S>                                                               <C>         <C>
                                                                    2002        2001
                                                                    ----        ----
CASH FLOWS FROM OPERATING ACTIVITIES:
-------------------------------------------------------------------------------------------

  Net Loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . $(482,596)  $(133,956)
  Adjustments to reconcile net loss to net cash
     used in operating activities:
   Depreciation expense . . . . . . . . . . . . . . . . . . . . .     9,845      11,641
   Non-cash services expense. . . . . . . . . . . . . . . . . . .   389,000           -
   (Increase) decrease in operating assets:
     Accounts receivable. . . . . . . . . . . . . . . . . . . . .     1,935      (6,700)
     Inventory. . . . . . . . . . . . . . . . . . . . . . . . . .   (30,565)      4,400
     Prepaid expenses . . . . . . . . . . . . . . . . . . . . . .         -          90
  Increase (decrease) in operating liabilities:
     Bank overdraft . . . . . . . . . . . . . . . . . . . . . . .     1,094        (597)
   Interest accrued on note payable to bank . . . . . . . . . . .    12,801       2,605
   Accrued compensation, shareholders . . . . . . . . . . . . . .    64,625           -
    Accounts payable and accrued expenses . . . . . . . . . . . .    55,170     108,049
                                                                  ----------  ----------

    NET CASH PROVIDED BY (USED IN)
    OPERATING ACTIVITIES. . . . . . . . . . . . . . . . . . . . .    21,309     (14,468)

CASH FLOWS FROM INVESTING ACTIVITIES                                   -0-         -0-
------------------------------------


</TABLE>















   The accompanying notes are an integral part of these financial statements.

<TABLE>
<CAPTION>


                                         DIAMOND POWERSPORTS, INC.
                                          STATEMENTS OF CASH FLOWS
                        FOR THE YEARS ENDED DECEMBER 31, 2002 AND DECEMBER 31, 2001
                        ===========================================================
<S>                                                                 <C>                             <C>
                                                                              2002                   2001
                                                                              ----                   ----
CASH FLOWS FROM FINANCING ACTIVITIES:
-----------------------------------------------------------------

  Proceeds (repayments) of shareholder loan payable                $                     (40,333)  $ 4,304
  Proceeds from sale of common stock. . . . . . . . . . . . . . .                         19,150    14,000
  Repayments on convertible debt. . . . . . . . . . . . . . . . .                            -0-    (3,074)
  Proceeds from bank line of credit . . . . . . . . . . . . . . .                            -0-     5,102
  Repayments on bank line of credit . . . . . . . . . . . . . . .                        _(5,990)      -0-
                                                                   ------------------------------  --------

    NET CASH PROVIDED BY
    FINANCING ACTIVITIES. . . . . . . . . . . . . . . . . . . . .                        (27,173)   20,332
                                                                   ------------------------------  --------

    NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS                                          $                      (5,864)   $ 5,864
                                                                   ------------------------------  --------

Cash and cash equivalents, beginning of year. . . . . . . . . . .  $                       5,864   $   -0-
                                                                   ------------------------------  --------

    CASH AND CASH EQUIVALENTS,
    END OF YEAR . . . . . . . . . . . . . . . . . . . . . . . . .  $                         -0-   $ 5,864
                                                                   =============================   =========


SUPPLEMENTAL DISCLOSURES OF
-----------------------------------------------------------------
CASH FLOW INFORMATION:
-----------------------------------------------------------------

Cash paid for income taxes during the year. . . . . . . . . . . .  $                         -0-   $   -0-
                                                                   =============================   =========
Cash paid for interest during the year. . . . . . . . . . . . . .  $                      29,134   $30,069
                                                                   =============================   =========
Non-cash investing and financing activities:
   Increase in note payable bank due to interest
      Accrued . . . . . . . . . . . . . . . . . . . . . . . . . .  $                      12,801   $ 2,605
                                                                   =============================   =========
   Decrease in note payable bank due to repossessed
      transportation equipment at book value. . . . . . . . . . .  $                      44,254   $     -
                                                                   =============================   =========
   Issuance of common stock as satisfaction of
      convertible debt, related party . . . . . . . . . . . . . .  $                      17,500   $     -
                                                                   =============================   =========

</TABLE>



     The accompanying notes are an integral part of these financial statements.



                            DIAMOND POWERSPORTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2002 AND DECEMBER 31, 2001
           ===========================================================

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------------

Business  Activity  -  Diamond  Powersports,  Inc. (the "Company") was organized
------------------
under  the  laws  of  the  State  of  Florida on May 13, 1992 to manufacture and
distribute  motorcycle  parts  and  accessories  to dealers and retail customers
worldwide.  Manufacturing  operations are conducted in Fort Lauderdale, Florida.

Cash  and  Cash  Equivalents - For purposes of the Statements of Cash Flows, the
----------------------------
Company  considers  liquid investments with an original maturity of three months
or  less  to be cash equivalents. There were no cash equivalents at December 31,
2002  or  2001.

Management's  Use  of  Estimates  -  The  preparation of financial statements in
--------------------------------
conformity  with generally accepted accounting principles requires management to
make  estimates  and  assumptions
that  affect  the  reported  amounts  of  assets and liabilities, disclosures of
contingent  assets  and  liabilities at the date of financial statements and the
reported  amounts  of  revenues and expenses during the reporting period. Actual
results  could  differ  from  those  estimates.

Accounts  Receivable  - The Company extends unsecured credit to its customers in
--------------------
the  ordinary  course  of  business  but mitigates the associated credit risk by
performing  credit  checks and actively pursuing past due accounts. An allowance
for  doubtful accounts has been established for estimated uncollectible accounts
in  the amount of $3,000. Bad debt expense is $3,000 for 2002 and zero for 2001.

Inventory - Inventory, consisting of motorcycle parts and accessories, is valued
---------
at  the  lower  of  cost  or market using the first-in, first-out (FIFO) method.

Property and Equipment - Property and equipment are recorded at cost and include
----------------------
expenditures  that  substantially  increase the productive lives of the existing
assets.  Maintenance  and repair costs are expensed as incurred. Depreciation is
provided  using the straight-line method. Depreciation of property and equipment
is  calculated over the management prescribed recovery periods, which range from
5  years  for  equipment  to 10 years for transportation equipment. Depreciation
expense  is  $9,845  for  2002  and  $11,641  for  2001.

When a fixed asset is disposed of, its cost and related accumulated depreciation
are  removed  from  the  accounts. The difference between undepreciated cost and
proceeds  from  disposition  is  recorded  as  a  gain  or  loss.






                            DIAMOND POWERSPORTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2002 AND DECEMBER 31, 2001
           ===========================================================

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
---------------------------------------------------------------

Long-Lived  Assets -The Company evaluates the recoverability of its property and
------------------
equipment  and other assets in accordance with Statement of Financial Accounting
Standards  No.144,  "Accounting  for  the  Impairment  or Disposal of Long-Lived
Assets"("SFAS  144").  SFAS 144 requires recognition of impairment of long-lived
assets  in  the  event  the  net book value of such assets exceeds the estimated
future  undiscounted  cash  flows attributable to such assets or the business to
which  such  assets  relate.  SFAS  144 excludes goodwill and intangible assets.
When  an  asset exceeds its expected cash flows, it is considered to be impaired
and  is  written  down  to  fair  value,  which  is  determined  based on either
discounted  future  cash  flows or appraised values.  The provisions of SFAS 144
are  effective  for financial statements issued for fiscal years beginning after
December  15,  2001.  The  Company  adopted  the  statement  for the year ending
December  31,  2002.  No  impairments  were  recognized  during  the  year ended
December  31,  2002.

Revenue  Recognition-  Revenue  is  recognized  when goods are shipped, provided
--------------------
collection  of  the  resulting  receivable  is  probable.  If  any  material
contingencies  are  present,  revenue  recognition is delayed until all material
contingencies  are  eliminated.  Further,  no  revenue  is  recognized  unless
collection  of  the  applicable  consideration  is  probable.

Income  Taxes  -  Income  taxes are provided for the tax effects of transactions
-------------
reported  in  the  financial  statements  and  consist of deferred taxes related
primarily to differences between the basis of certain assets and liabilities for
financial  and  tax  reporting.  Deferred  taxes represent the future tax return
consequences  of  those  differences, which will either be taxable or deductible
when  the  assets  and  liabilities  are  recovered  or  settled.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management,  it is more likely than not that some portion or the entire deferred
tax asset will not be realized. Deferred tax assets and liabilities are adjusted
for  the  effect  of  changes  in  tax  laws and rates on the date of enactment.

Advertising Costs - Advertising costs are expensed as incurred. The Company does
-----------------
not  incur  any direct-response advertising costs. Advertising expense is $7,749
for  2002  and  $500  for  2001.










                            DIAMOND POWERSPORTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2002 AND DECEMBER 31, 2001
           ===========================================================

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
---------------------------------------------------------------

Recent  Accounting  Pronouncements   -  In  June  2001, the Financial Accounting
----------------------------------
Standards  Board  issued  Statement  of  Financial  Accounting  Standards (SFAS)
No.143,  "Accounting  for  Asset  Retirement  Obligations"  which  addresses the
accounting  and  reporting  for  obligations  associated  with the retirement of
tangible  long-lived  assets  and  the associated retirement costs. SFAS No. 143
requires  that  the fair value of a liability for an asset retirement obligation
be  recognized in the period in which it is incurred if a reasonable estimate of
fair  value  cannot  be made. SFAS No. 143 is effective for financial statements
issued  for  fiscal  years  beginning  after June 15, 2002. The Company does not
expect SFAS No. 143 to have a material effect on its financial condition or cash
flows.

In  April  of  2002,  Statement of Financial Accounting Standards (SFAS) No. 145
was issued, which rescinded SFAS Statements No. 4, 44 and 64, amended No. 13 and
contained technical corrections.  As a result of SFAS 145, gains and losses from
extinguishments  of  debt will be classified as extraordinary items only if they
meet  the  criteria  in APB Opinion No. 30, that they are unusual and infrequent
and  not  part of an entity's recurring operations.  The Company does not expect
SFAS No. 145 to have a material effect on its financial condition or cash flows.

In  July  2002,  the  FASB  issued  SFAS 146, which addresses significant issues
regarding  the  recognition,  measurement,  and  reporting  of  costs  that  are
associated with exit and disposal activities, including restructuring activities
that  are  currently  accounted  for  pursuant to the guidance that the Emerging
Issues  Task  Force  ("EITF")  has  set forth in EITF Issue No. 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity  (Including  Certain  Costs  Incurred  in  a Restructuring)".  SFAS 146
revises  the  accounting  for  certain  lease  termination  costs  and  employee
termination  benefits,  which  are  generally  recognized  in  connection  with
restructuring  charges.  The  provisions  of  SFAS 146 are effective for exit or
disposal  activities  that  are  initiated after December 31, 2002.  The Company
does not expect SFAS 146 to have an impact its financial statements once adopted
in  January  1,  2003.

In November 2002, the FASB issued Interpretation No. 45 ("FIN 45"), "Guarantor's
Accounting  and  Disclosure  Requirements  for  Guarantee,  Including  Indirect
Guarantees  of  Indebtedness  of  Others", which addresses the disclosures to be
made  by  a  guarantor  in its interim and annual financial statements about its
obligations  under  guarantees.  FIN  45  also  requires  the  recognition  of a
liability by a guarantor at the inception of certain guarantees that are entered
into  or  modified  after  December  31,  2002.






                            DIAMOND POWERSPORTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2002 AND DECEMBER 31, 2001
           ===========================================================

NOTE B - GOING CONCERN
----------------------

As  shown  in  the  accompanying  financial statements, the Company has suffered
recurring losses, has negative working capital and certain debt is in default of
payment (see Note C) that raises substantial doubt about its ability to continue
as a going concern. The ability of the Company to continue as a going concern is
dependent  on  developing  operations,  increasing  revenues  and  obtaining new
capital.  Management has enacted the following plan to address these issues: (1)
obtain funding from new investors to alleviate the Company's capital deficiency,
(2)  refinance  existing debt on existing assets, (3) lease larger facilities in
order  to  manufacture  certain  products  thereby reducing costs and (4) market
motorcycle  accessories  through  significant,  proven  trade shows that produce
individual  orders  in  excess  of  $75,000.

NOTE C - NOTE PAYABLE TO BANK
-----------------------------

The  Note  Payable  to  Bank  in  the  accompanying  Balance  Sheet represents a
promissory  note  to  a  bank  that  was  originally  collateralized  by certain
transportation  equipment.  The  loan  is  guaranteed  by  one  of the Company's
officers.  During  2002, the loan went into default whereby the bank repossessed
the  equipment.  At December 31, 2002, the equipment has not been resold and the
bank  loan  payable, including default interest, is $98,772. The Company reduced
the  Note  Payable  to Bank by $44,254, the net book value of the equipment that
management  estimated  to  be market value, resulting in a balance of $54,518 at
December  31, 2002.  Accordingly, all amounts have been classified as current in
the  accompanying  balance  sheet.

NOTE  D  -  BANK  LINE  OF  CREDIT
----------------------------------

The Company has two unsecured bank lines of credit bearing interest between
10.25% and 17.9%, which are due on demand. The lines of credit have a maximum
credit available of $60,000. The principal and accrued interest balance
outstanding at December 31, 2002 was $52,762 and $58,752 at December 31, 2001.
The lines of credit are guaranteed by one of the Company's officers.

NOTE E - LEASES
---------------

As  of  December  31,  2002,  the Company does not have long-term non-cancelable
operating  leases.  The  Company's  long-term  warehouse  and office space lease
expires  in  June  2003.  The  Company  is  currently seeking a larger multi-use
facility  located  in the vicinity with a long-term lease commitment starting in
2003. The amount charged to rent expense is $20,776 in 2002 and $19,995 in 2001.




                            DIAMOND POWERSPORTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2002 AND DECEMBER 31, 2001
           ===========================================================

NOTE  F  -  EQUITY
------------------

During  2002,  the  Company issued 816,300 shares of its common stock to several
unrelated  investors  under  a  Regulation  D  private  placement  offering. The
proceeds  of  the  offering  were  $19,150  in  cash  and  $389,000 in services.

NOTE G - INCOME TAXES
---------------------

The Company has approximately $150,500 of federal and state net operating losses
that  expire  in  various  years  through  the  year  2022.

Deferred  income  taxes  reflect  the  net  tax effects of temporary differences
between  the  carrying amounts of assets and liabilities for financial reporting
purposes  and  the  amount  used  for  federal  and  state  income tax purposes.

The  Company's deferred tax asset at December 31, 2002 consists of net operating
loss  carryforwards  calculated  using  federal  and  state effective tax rates.
Because  of  the  Company's lack of earnings history, the deferred tax asset has
been fully offset by a valuation allowance. The valuation allowance increased by
approximately  $39,500  and  $48,000  for  the years ended December 31, 2002 and
2001,  respectively.

The  Company's  net  deferred  tax  asset as of December 31, 2002 is as follows:

     Net operating loss carryforwards          $   150,500
     Valuation allowance                          (150,500)
                                              -------------
     Net deferred tax asset                    $       --
                                              =============

The reconciliation of income taxes computed at the federal statutory income tax
rate to total income taxes for the years ended December 31, 2002 and 2001 is as
follows:

                                                            2002          2001
                                                            ----          ----
     Income tax computed at the federal statutory rate       34%           34%
     State income taxes, net of federal tax benefit           4%           4%
                                                            ----          ----
     Valuation allowance                                    (38%)        (38%)
                                                            -----         ----
     Total deferred tax asset                                0%            0%
                                                            =====         ====





                            DIAMOND POWERSPORTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
           FOR THE YEARS ENDED DECEMBER 31, 2002 AND DECEMBER 31, 2001
           ===========================================================

NOTE H - COMMITMENTS AND RELATED PARTY TRANSACTIONS
---------------------------------------------------

On  November  1,  1999,  the  Company  entered  into annual renewable employment
agreements  with  its  chief  executive  officer and president and its corporate
secretary.  The  agreements  provide  for  compensation to these two individuals
beginning  in  2000  with  10%  annual  increases at the combined annual rate of
$100,000,  $110,000 and $121,000 respectively. As of December 31, 2002, $259,697
remains  unpaid  and  is  recorded  as  accrued  compensation, shareholders. The
agreements  provide  for bonus arrangements on profit and other normal benefits.

The  Company  has  a shareholder loan payable to these two individuals. The loan
bears  interest  at  7%, is due on demand and at December 31, 2002, the balance,
including  accrued  interest,  is  $20,751.

In  1999,  the Company entered into an unsecured convertible loan from a related
party  investor  bearing  interest at 8% and due on demand. At December 31, 2001
the  balance  due to the investor, including accrued interest , was $17,500. The
Company  converted the note into 70,000 shares of common stock of the Company in
2002.


ITEM 8. CHANGES WITH AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

     None.

ITEM 9. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

(a)     Identification of Directors

Directors and Executive Officers.

     Our Bylaws provide that we shall have that number of directors determined
by the majority vote of the board of directors. Currently we have five
directors.  Each director will serve until our next annual shareholder meeting.
Directors are elected for one-year terms. Our Board of Directors elects our
officers at the regular annual meeting of the Board of Directors following the
annual meeting of shareholders. Vacancies may be filled by a majority vote of
the remaining directors then in office. Our directors and executive officers are
as follows:

<TABLE>
<CAPTION>

<S>                   <C>  <C>
NAME . . . . . . . .  AGE  POSITION
--------------------  ---  ----------------------------------------------------
Pierre Elliott . . .   41  President and CEO for Diamond  Powersports;  Director

Lisa Elliott . . . .   39  Controller; Director

Alan Lichtman. . . .   28  Operations Manager; Director

Margaret Hurley. . .   44  Marketing Director; Director

David A. Lewis, PH.D   48  Director
</TABLE>


     Pierre  Elliott  has  been  President  &  CEO  and  Chairman  of   Diamond
Powersports  since  its  inception  in  1992.  Mr.  Elliott  has  over  25 years
experience  in  various  aspects  of  the  motorcycle  industry  including:
manufacturing,  wholesaling,  inventory management, quality control, service and
retail  sales.  During  Diamond  Powersports' history, Mr. Elliott developed and
implemented all operations and developments creating a company that started with
less  than  50  customers,  and today retails and wholesales products over 1,500
customers  worldwide.  Prior  to  this,  Mr.  Elliott  also  owned several local
ventures  during  a  time  span  of five years including a restaurant, a grocery
store,  and  home  cleaning  service.  During  this  time,  Mr.  Elliott  gained
experience  modifying  racing  bikes  on  a  part-time basis. Prior to this, Mr.
Elliott  had  approximately  10 years of other industry experience in employment
with various local motorcycle sales and service offices. Mr. Elliott is a member
of  the Diamond Racing team and the National Hot Rod Association. Pierre Elliott
is  married  to  Lisa  Elliott.


     Lisa  Elliott  has  served as Secretary and Director of Diamond Powersports
since  its  inception  in  1992.  During  her  tenure  she has been in charge of
staffing,  customer  relations,  and  assists  the  accounting  department. Mrs.
Elliott served previously as a financial accountant for Colorfilm Video and Mobo
Enterprises.  During  her tenure there, Mrs. Elliott was responsible for Diamond
Powersports'  daily  accounting  transactions  including accounts receivable and
accounts  payable.  Lisa  Elliott  is  married  to  Pierre  Elliott.

     Alan  Lichtman  serves  as  Diamond  Powersports'  Operations  Manager  and
Director since August 1999. Mr. Lichtman has been directing retail and marketing
operations  for  the  last  8  years.  Prior to joining Diamond Powersports, Mr.
Lichtman was a licensed Financial Service Professional with First Union National
Bank  for  five  years.  Mr.  Lichtman's background also includes three years of
retail  operations work with Atlantic Records where he assisted in the marketing
and  distribution of new audio products. Mr. Lichtman will co-assist Mr. Elliott
in  Diamond  Powersports'  national  operations.

     Margaret Hurley serves in the capacity as a Marketing Director and Director
of  Diamond  Powersports  since  September  of  1999.  Prior  to joining Diamond
Powersports,  Mrs.  Hurley  was  a team manager for State Farm Insurance Co. for
over  19  years.  Mrs.  Hurley's  background  experience  consists of defining a
market  and  managing  the  marketing  process.  Mrs.  Hurley's responsibilities
include  managing  market  penetration  and product quality control. Mrs. Hurley
holds  a  bachelor's  degree  in Criminal Justice from the University of Central
Florida.

     Dr.  David  A.  Lewis  serves  in  the  capacity  as  Director  of  Diamond
Powersports  since  September  of  1999.  Dr. Lewis is currently the Director of
Pastoral care at Covenant Life Christian Church in Ft. Lauderdale, Florida where
he  has  been  employed  for  the  last 12 years. Prior to this, Dr. Lewis owned
Tropical  Clima-Coat,  Inc.,  which provided construction services to commercial
and  residential  buildings.  As  the  Owner/  President,  Dr. Lewis managed all
aspects  of  the  business  including  construction  operations,  marketing, and
accounting.  Dr.  Lewis  has  traveled  to  several  countries outside the U.S.,
including  Mexico,  Kenya,  Ecuador,  Belize,  and  Haiti,  to  give seminars on
organizational  and  corporate  structure  and  provide  corporate assistance to
charitable  organizations.  Dr. Lewis holds his PH.D from So. Fla. Bible College
and  is  licensed  in  the  State  of  Florida  as  a  counselor.

Promoters.

     Market  Voice,  Inc., located in Boca Raton, Florida, has been retained for
the  purposes  of  providing investor relations services to Diamond Powersports,
Inc.  We  have  issued  350,000  shares  of  our common stock as compensation to
Market  Voice,  Inc.  in connection with these services. Market Voice's services
include disseminating information on Diamond Powersports to the public via press
releases, Internet and radio. Market Voice, Inc. also purchased 30,000 shares of
common  stock  at  $.50  per  share  during  the  first  quarter  of  2002.






ITEM 10. EXECUTIVE COMPENSATION

         Summary Compensation Table

No  compensation in excess of $100,000 was awarded to, earned by, or paid to any
executive  officer  of Diamond Powersports during the years 2002, 2001 and 2000.
The  following  table and the accompanying notes provide summary information for
each  of  the  last three fiscal years concerning cash and non-cash compensation
paid  or  accrued by Pierre Elliott and Lisa Elliott, Diamond Powersports' chief
executive  officer  and  secretary  for  the  past  three  years.
<TABLE>
<CAPTION>



SUMMARY COMPENSATION TABLE

<S>                         <C>           <C>       <C>            <C>          <C>              <C>                <C>
                               Annual Compensation
                                                                     Awards                Payouts
                                                                                  Restricted     Securities
Name and . . . . . . . . .                          Bo             Other Annual   Stock          Underlying LTIP     All Other
Principal. . . . . . . . .          Salary          nus            Compensation   Award(s)       Options    payouts  Compensation
Position . . . . . . . . .  Year      ($)           ($)               ($)          ($)              ($)     SARs(#)      ($)
---------------------------------------------------------------------------------------------------------------------------------
Pierre Elliott              2002    78,650           -                  -         -         -           -              -
Chief Executive Officer     2001    71,500           -                  -         -         -           -              -
                            2000    65,000           -                  -         -         -           -              -
Lisa Elliott                2002    42,350           -                  -         -         -           -              -
                            2001    38,500           -                  -         -         -           -              -
Secretary                   2000    35,000           -                  -         -         -           -              -
</TABLE>



          Diamond  Powersports  has  entered  into  an employment agreement with
Pierre  Elliott.  Pursuant  to  the  agreement, Mr. Elliott serves as President,
Director and General Manager for a term of 2 years, ending on December 31, 2003.
Mr.  Elliott  shall receive an annualized base salary of $78,650 and is entitled
to  an  incentive  bonus  of  .5%  of  the  gross  profits.

          Diamond Powersports has also entered into an employment agreement with
Lisa Elliott for a term of 2 years, ending on December 31, 2003. Pursuant to the
agreement,  Mrs.  Elliott  serves  as  Secretary,  Controller and Director. Mrs.
Elliott  shall  receive an annualized salary of $42,350, payable in installments
according  to  the  Employer's  regular  payroll  schedule. Mrs. Elliott is also
entitled  to  an  incentive  bonus  of  .5%  of  the  gross  profits

Both agreements provide for reimbursement of Diamond Powersports' expenses and
may be terminated with 30 days written notice by the employee. The agreements
carry a two-year non-competition agreement from the time of termination.

COMPENSATION OF DIRECTORSCOMPENSATION OF DIRECTORS

     In  2001,  Diamond  Powersports  committed itself to compensate each of its
Board  of  Directors  with  2,000  shares  of  its common stock per annum. Board
members  typically  meet  on  a  bi-monthly  basis.




ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     The following table sets forth certain information concerning the ownership
of  Diamond Powersports' Common Stock as of April 22, 2003, with respect to: (i)
each person known to Diamond Powersports to be the beneficial owner of more than
five percent of Diamond Powersports' Common Stock, (ii) all directors; and (iii)
directors  and  executive officers of Diamond Powersports as a group.  The notes
accompanying  the  information  in  the table below are necessary for a complete
understanding  of  the figures provided below.  As of April 22, 2003, there were
9,495,700  shares  of  common  stock outstanding. As of December 31, 2002, there
were  no  preferred  shares  outstanding.
<TABLE>
<CAPTION>

Beneficial Owners of 5% or more of our Common Stock



<C>  <S>                     <C>                    <C>                    <C>
(1)                        (2) (3)
Name and Address of.    Amount and Nature of      4)
Title of Class . . . .  Beneficial Owner(s)    Beneficial Ownership   Percent of class
----------------------  ---------------------  ---------------------  -----------------
Common Stock . . . . .  Pierre Elliott                 8,100,000 (1)          85%
($.001 par value). . .  Lisa Elliott
                        10145 NW 46th Street
                        Sunrise, FL 33351

</TABLE>



     The  following  table sets forth the number of shares owned beneficially on
April  22,  2003, by each Director and by all Officers and Directors as a group.
Information as to the beneficial ownership is based upon statements furnished to
the  Company  by  such  persons.
<TABLE>
<CAPTION>

Ownership of Directors and Officers



<C>  <S>                     <C>                       <C>                    <C>
(1)                       (2) (3)
Name and Address of.    Amount and Nature of                        (4)
Title of Class . . . .  Beneficial Owner(s)       Beneficial Ownership   Percent of class
----------------------  ------------------------  ---------------------  -----------------
Common Stock
($.001 par value). . .  Pierre Elliott                    8,100,000 (1)         85%
                        Lisa Elliott
                        10145 NW 46th Street
                        Sunrise, FL 33351
Common Stock
($.001 par value). . .  Alan Lichtman, Director                  2,000           **%
                        10145 NW 46th Street
                        Sunrise, FL 33351
Common Stock
($.001 par value). . .  Margaret Hurley                          2,000           **%
                        10145 NW 46th Street
                        Sunrise, FL 33351
Common Stock
($.001 par value). . .  Dr. David A. Lewis                       2,000           **%
                        10145 NW 46th Street
                        Sunrise, FL 33351
Common Stock
($.001 par value). . .  All Directors                        8,106,000           85%
     ----------------------  ------------------------  ---------------------  -----------
</TABLE>





(1)     Pierre  and  Lisa  Elliott  are  the  beneficial  owners  of  the  above
securities  and  hold  them  as  Joint  Tenancy  with  Rights  of  Survivorship.
** Less than 1%

(a)     Changes in Control

The Company knows of no arrangements that may at a subsequent date result in a
change of control in the Company.


ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     We  have  a  shareholder  loan  payable to our President, Pierre Elliott at
December  31, 2002 which bears interest at 8% and is due on demand. At April 22,
2003,  the  balance  due  the  officer  was $20,751, which also includes accrued
interest.

We  had  an  unsecured  convertible  loan  from  Rosemary Elliott, mother of our
President,  bearing  interest  at  8%  per annum due on demand.  At December 31,
2001,  the  balance  due  the  investor was $17,500, which also included accrued
interest.  During  the  first quarter of 2002, we converted the note into 70,000
shares  of  our  common  stock.

     We  have  accrued but unpaid payroll obligations owing to the President and
Secretary  of  Diamond  Powersports  as  of  December 31, 2002, in the amount of
$259,696.  The amounts are unsecured, bear interest at 8% and are due on demand.
The President and Secretary have orally agreed to defer these amounts until such
time  as  Diamond  Powersports  has  sufficient  cash  to pay these obligations.


















<TABLE>
<CAPTION>


ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K

(a)     Financial Statements
1. The following financial statements of Diamond Powersports, Inc. are included
in Part II, Item 7:


<S>                                               <C>
Independent Auditors' Report . . . . . . . . . .     14
Balance Sheet-December 31, 2002. . . . . . . . .  15-16
Statements of Operations - years ended
  December 31, 2002 and 2001          .. . . . .  17-18
Statements of Cash Flows - years ended
  December 31, 2002 and 2001       . . . . . . .  19-20
Statements of Stockholders' Equity - years ended
  December 31, 2002 and 2001 . . . . . . . . . .     21
Notes to Financial Statements. . . . . . . . . .  22-28
</TABLE>



     2. Exhibits

3.    Articles of incorporation, bylaws and related amendments are incorporated
      by reference  to  Exhibit  No. 1  of  Form  10-SB  filed  November  1999.

10.1  Manufacturing  agreement  with  Henderson  Industrial  Technologies,  Inc.

23    Consent of auditors

99    Certifications  of  management

(b)   Reports on Form 8-K

There were no reports on Form 8-K for the three months ended December 31, 2002.


ITEM 14. CONTROLS AND PROCEDURES

(a)  On  December  31,  2002,  our  Chief  Executive Officer and Chief Financial
Officer  made  an  evaluation  of our disclosure controls and procedures. In our
opinion, the disclosure controls and procedures are adequate because the systems
of  controls  and  procedures are designed to assure, among other items, that 1)
recorded  transactions  are  valid;  2)  valid transactions are recorded; and 3)
transactions  are  recorded  in  the proper period in a timely manner to produce
financial  statements  which  present fairly the financial condition, results of
operations  and cash flows for the respective periods being presented. Moreover,
the  evaluation  did  not  reveal  any  significant  deficiencies  or  material
weaknesses  in  our  disclosure  controls  and  procedures.

(b)  There have been no significant changes in our internal controls or in other
factors  that  could  significantly  affect  these  controls  since  the  last
evaluation.

                           --Signature Page Follows--



                                   SIGNATURES
                                   ----------

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


                                   DIAMOND POWERSPORTS, INC
                                   -------------------------
                                        (Registrant)

Date:  April 22, 2003
                                        /s/ Pierre Elliott
                                        ------------------
                                        Pierre Elliott
                                        Chief Executive Officer
/s/ Pierre Elliott
------------------
Pierre Elliott
Chief Executive Officer
Director

/s/ Lisa Elliott
----------------
Lisa Elliott
Secretary, Treasurer,
Director

/s/ David Lewis
---------------
David Lewis
Director


















EXHIBIT 99

Certifications

I, Pierre Elliott, Chief Executive Officer certify that:

1. I have reviewed this annual report on Form 10-KSB of Diamond Powersports,
Inc

2.  Based on my knowledge, the report does not contain any untrue statement of a
material  fact or omit to state a material fact necessary to make the statements
made,  in  light of the circumstances under which such statements were made, not
misleading  with  respect  to  the  period  covered  by  this  annual  report;

3.  Based  on  my  knowledge,  the  financial  statements,  and  other financial
information  included  in  this  annual  report,  fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods  presented  in  this annual report;

4.  The  registrant's  other  certifying  officers  and  I  are  responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  have:

a)  designed  such  disclosure  controls  and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  quarterly  report  is  being  prepared;

b)  evaluated  the  effectiveness  of  the  registrant's disclosure controls and
procedures  as  of a date within 90 days prior to the filing date of this annual
report  ("Evaluation  Date");  and

c)  presented  in this annual report are our conclusions about the effectiveness
of  the  disclosure  controls  and  procedures based on our evaluation as of the
Evaluation  Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls (all of which do not
apply); and

b)  any  fraud,  whether  or  not  material,  that  involves management or other
employees  who  have  a  significant role in the registrant's internal controls,
(all  of  which  do  not  apply);  and

6.  The  registrant's  other  certifying  officers  and I have indicated in this
quarterly  report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the  date  of  our most recent evaluation, including any corrective actions with
regard  to  significant  deficiencies  and  material  weaknesses.

Date: April 22, 2003



/s/ Pierre Elliott
_____________________
Pierre Elliott
Chief Executive Officer



<PAGE>
I, Lisa Elliott, Secretary and Treasurer certify that:

1. I have reviewed this annual report on Form 10-KSB of Diamond Powersports,
Inc.

2.  Based on my knowledge, the report does not contain any untrue statement of a
material  fact or omit to state a material fact necessary to make the statements
made,  in  light of the circumstances under which such statements were made, not
misleading  with  respect  to  the  period  covered  by  this  annual  report;

3.  Based  on  my  knowledge,  the  financial  statements,  and  other financial
information  included  in  this  annual  report,  fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods  presented  in  this annual report;

4.  The  registrant's  other  certifying  officers  and  I  are  responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  have:

a)  designed  such  disclosure  controls  and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  annual  report  is  being  prepared;

b)  evaluated  the  effectiveness  of  the  registrant's disclosure controls and
procedures  as  of a date within 90 days prior to the filing date of this annual
report  ("Evaluation  Date");  and

c)  presented  in  this annual report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on  our  evaluation as of the
Evaluation  Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most  recent evaluation, to the registrant's auditors and the audit committee of
registrant's  board  of  directors  (or  persons  performing  the  equivalent
functions):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls (all of which do not
apply); and

b)  any  fraud,  whether  or  not  material,  that  involves management or other
employees who have a significant role in the registrant's internal controls (all
of  which  do  not  apply);  and

6.  The  registrant's  other  certifying  officers  and I have indicated in this
quarterly  report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the  date  of  our most recent evaluation, including any corrective actions with
regard  to significant deficiencies and material weaknesses (all of which do not
apply).

Date: April 22, 2003



/s/ Lisa Elliott
________________________
Lisa Elliott
Secretary and Treasurer