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

                                   Form 10-QSB

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
OF 1934

For the quarter ended: June 30, 2002
Commission file no.: 000-30969

                          ONESOURCE TECHNOLOGIES, INC.
                          ----------------------------
                 (Name of Small Business Issuer in its Charter)

         Delaware                                        65-0691963
         --------                                        ----------
(State or other jurisdiction of                        (I.R.S. Employer
Incorporation or organization)                         Identification No.)


       7419 East Helm Drive
       Scottsdale, Arizona                                   85260
       -------------------                                   -----
(Address of principal executive offices)                   (zip code)

Issuer's telephone number: (800) 279-0859

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

                                                        Name of each exchange
  Title of each class                                    on which registered
  -------------------                                    -------------------
         None                                                   None


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

                    Common Stock, $0.0001 par value per share
                    -----------------------------------------
                                (Title of Class)


Copies of Communication Sent to:

                               Blume Law Firm, PC
                     11811 North Tatum Boulevard, Suite 1025
                       Phoenix, AZ 85028-602561) 494-7313

<PAGE>

     Indicate by 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 __

     As of June 30, 2002,  there were  26,686,929  shares of voting stock of the
registrant issued and outstanding.

<PAGE>

Part I.

Item 1.  Financial Statements

                          ONESOURCE TECHNOLOGIES, INC.

                     Consolidated Financial Statements as of
                             June 30, 2002 and 2001

                                   (Unaudited)

<PAGE>
<TABLE>

ONESOURCE TECHNOLOGIES, INC.
----------------------------
TABLE OF CONTENTS                                                                       PAGE
<CAPTION>
<S>                                                                                     <C>
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2002                                                                     1

CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE
THREE AND SIX MONTHS ENDED JUNE 30, 2002  AND 2001                                      2

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
SIX MONTHS ENDED JUNE 30, 2002 AND 2001                                                 3

FOOTNOTES                                                                               4
</TABLE>

<PAGE>

ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2002


<TABLE>
ASSETS                                                                                  Unaudited
------                                                                                  ---------
<CAPTION>
<S>                                                                                     <C>
CURRENT ASSETS:
    Cash                                                                                $     29,089
    Accounts receivable                                                                      334,922
    Inventories                                                                              206,839
    Other current assets                                                                      13,132
                                                                                        ---------------
        Total current assets                                                                 583,982
                                                                                        ---------------
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $ 179,147                         159,680

GOODWILL                                                                                     235,074

DEFERRED INCOME TAXES                                                                        140,187

OTHER ASSETS                                                                                       -
                                                                                        ---------------
TOTAL ASSETS                                                                            $  1,118,923
                                                                                        ===============

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:
    Accounts payable                                                                    $    262,766
    Accrued expenses and other liabilities                                                   331,192
    Deferred revenue                                                                         169,592
    Bank line of credit                                                                       50,000
    Current portion capital leases                                                             3,869
    Current portion of debt                                                                  917,447
                                                                                        ---------------
         Total current liabilities                                                         1,734,867
                                                                                        ---------------
INSTALLMENT NOTES - LONG-TERM PORTION                                                          7,789
                                                                                        ---------------
TOTAL LIABILITIES                                                                          1,742,655
                                                                                        ---------------

STOCKHOLDERS' DEFICIT
    Preferred Stock, $.001 par value, 1,000,000 shares authorized, none issued
    Common Stock, $.001 par value, 50,000,000 shares authorized, 24,963,317
        issued and outstanding at June 30, 2002                                               24,963
    Paid in capital                                                                        2,685,004
    Accumulated deficit                                                                   (3,333,699)
                                                                                        ---------------
                                                                                            (623,732)
                                                                                        ---------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                             $  1,118,923
                                                                                        ===============
</TABLE>

         The accompanying notes are an integral part of this statement.

<PAGE>

ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDING JUNE 30
<TABLE>
<CAPTION>

                                                                 3 Months      3 Months       6 Months       6 Months
                                                                   Ended         Ended          Ended         Ended
                                                                   2002          2001           2002           2001
                                                               ----------------------------------------------------------
<S>                                                            <C>             <C>            <C>            <C>
REVENUE, net                                                   $ 720,851       $ 680,217      $1,399,841     $1,342,946
COST OF REVENUE                                                  409,905         354,159         900,101        759,499
                                                               ----------------------------------------------------------
        GROSS PROFIT                                             310,946         326,058         499,740        583,447

GENERAL AND ADMINISTRATIVE EXPENSES                              191,874         238,132         447,327        632,023
SELLING AND MARKETING EXPENSES                                    11,381          41,025          17,986         94,083
                                                               ----------------------------------------------------------
        Operating Income (Loss)                                  107,691          46,901          34,427       (142,659)

OTHER INCOME (EXPENSE)
     Interest                                                    (29,722)        (85,582)        (64,832)      (158,520)
     Other Income (Expense)                                      (24,398)        (24,143)        (26,491)       (27,913)
                                                               ----------------------------------------------------------
         Total other expense                                     (54,120)       (109,725)        (91,322)      (186,433)

INCOME (LOSS) BEFORE DISCONTINUED OPERATION
        AND INCOME TAXES                                          53,571         (62,824)        (56,895)       (329,092)

INCOME (LOSS) FROM DISCONTINUED OPERATION
                                                                       -         (36,466)              -         (64,153)

                                                                       -          24,448               -          24,448
                                                               ----------------------------------------------------------
                                                                       -         (12,018)              -         (39,705)
                                                               ----------------------------------------------------------
NET INCOME (LOSS)                                              $  53,571       $ (74,842)     $  (56,895)    $  (368,797)
                                                               ==========================================================

LOSS PER SHARE -
 Basic before loss from discontinued operation                        **              **              **     $     (0.02)
 Loss from discontinued operation                                      -               -               -              **
 Net loss                                                             **              **              **     $     (0.02)

 Diluted before loss from discontinued operation                      **              **              **     $         -
 Loss from discontinued operation                                      -               -               -              **
 Net loss                                                             **              **              **     $     (0.02)

Weighted Average Shares Outstanding:
 Basic                                                         24,963,317      18,134,245     24,963,317      18,134,245
 Diluted                                                       24,963,317      18,134,245     24,963,317      18,134,245

 Less than $0.00 per share
</TABLE>

         The accompanying notes are an integral part of this statement.

<PAGE>

ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
THE SIX MONTHS ENDED JUNE 30
<TABLE>
<CAPTION>
                                                                                                        Restated
                                                                                           2002            2001
                                                                                           ----            ----
<S>                                                                                     <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
          Net loss                                                                      $ (56,895)      $ (368,797)
          Adjustments to reconcile net loss to net cash provided (used) by
          operations -
              Loss from discontinued operation                                                  -           39,705
              Loss on disposal of fixed assets                                             16,192                -
              Depreciation/Amortization                                                    30,176           39,598
              Amortization of deferred financing costs                                          -           99,979
              Stock issuances to consultants for services                                       -           37,228
              Non cash accrued expenses and other liabilities                                   -           62,090
              Changes in assets and liabilities (net of acquisitions):
              Deferred taxes                                                                    -                -
                         Accounts receivable                                              (22,927)          71,219
                         Inventory                                                          2,206          (99,668)
                         Other current assets                                              10,920            4,166
                         Other assets                                                       1,323                -
                         Accounts payable                                                 (93,393)         (14,322)
                         Accrued expenses and other liabilities                             4,964          (89,187)
                         Non cash accrued expenses and other liabilities                        -          (28,662)
                         Deferred revenue                                                  29,966           (5,715)
                                                                                        -------------------------------
                                Net cash (used) provided by continuing operating
                                activities                                                (77,468)        (252,366)
                                                                                        -------------------------------
                                Net cash (used) provided by discontinued operating
                                activities                                                      -          (60,027)
                                                                                        -------------------------------
NET CASH Provided (used) by Operating Activities                                          (77,468)        (312,393)
                                                                                        -------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
              Purchases of property and equipment                                            (630)         (19,350)
              Proceeds from disposal of equipment                                           5,500                -
                                    Net cash provided (used) by
                                    investing activities                                    4,870          (19,350)
                                                                                        -------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
          Principal payments on capital lease obligations                                  (5,342)               -
          Proceeds on notes payable                                                        50,000          355,409
          Principal payments on notes payable                                             (18,404)         (57,898)
                                                                                        -------------------------------
                                    Net cash provided (used) by
                                    financing activities                                   26,254          297,511
                                                                                        -------------------------------

INCREASE (DECREASE) IN CASH                                                               (46,344)         (51,466)

CASH, January 1                                                                            75,433          176,441
                                                                                        -------------------------------
CASH, June 30                                                                           $  29,089       $  124,975
                                                                                        ===============================
</TABLE>

         The accompanying notes are an integral part of this statement.

<PAGE>

ONESOURCE TECHNOLOGIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE THREE AND SIX MONTHS ENDED JUNE 30, 2002 and 2001


1.   BASIS OF PRESENTATION

The Unaudited  financial  statements  presented herein have been prepared by the
Company  without  audit,  pursuant  the  rules  and  regulations  for  financial
information.  Accordingly, certain information and footnote disclosures normally
included in financial  statements prepared in accordance with generally accepted
accounting  principles have been omitted.  These unaudited financial  statements
should be read in  conjunction  with the financial  statements and notes thereto
included in the Company's audited financial  statements as of December 31, 2001.
In the opinion of management,  these Unaudited financial  statements reflect all
adjustments  which are necessary to present  fairly the  financial  position and
results of operations of the Company for such interim period.  Operating results
for the interim  period are not  necessarily  indicative  of results that may be
expected for the entire year.

2.   RESTATEMENT

The  accompanying  financial  statements for the three and six months ended June
30, 2001 have been restated to correct errors that were made a) in the amount of
expense that was  attributed  to Common Stock of the Company that was issued for
legal and other  services,  b) the application of cash received for Common Stock
subscribed  and c)  other  accounting  errors  that  came to  light  during  the
Company's conversion of its accounting and information systems in late 2001. The
effect of these  restatements  was to increase the Net Loss for the three months
($six months ended June 30, 2001 by $184,059  ($0.01 per share),  net of related
income  tax  benefit of  $20,445  and to  increase  Subscriptions  Funded  After
December 31, 1999 by $130,000.  These  adjustments  were reflected in the annual
financial statements for the year ended December 31, 2001.

3.   DISCONTINUED OPERATION

In April 2001,  the  Company  discontinued  the  operations  of its  Integration
division.  The interim consolidated  financial statements of the Company for the
three and six months ended June 30, 2001 have been restated to reclassify  costs
related  to   discontinued   operations   of  the  division   from  General  and
Administrative costs to Loss from Discontinued Operation.

4.   STOCKHOLDERS' DEFICIT

Shares  issued to employees and others for services are valued based on the fair
value of the stock issued  and/or the service  rendered No shares were issued in
the three and six months ended June 30, 2002 for services.  The following  table
shows the number of  issued,  the amount  recorded  as expense  and the basis of
valuation for shares issued for services in the quarter ended March 2001.

<TABLE>
<CAPTION>
                                           Shares       Cost per
Description                                Issued        Share    Valuation Basis
-----------                                ------        -----    ---------------
<S>                                        <C>          <C>       <C>
Issued for services                        171,667      0.10      Stock price at commitment date
Issued for employee compensation           150,000      0.14      Stock price at commitment date

</TABLE>

Shares  issued for services  during the quarter ended March 31, 2001 were issued
in three separate  transactions to non affiliates with a weighted  average share
price at the commitment  date of $0.10 per share.  The weighted  average average
price of shares  granted to  employees  was $0.14 per share.  These  shares were
granted in three separate transactions during the quarter.

5.   BUSINESS SEGMENTS

The  Company's  revenues are derived  from 1)  renewable  contracts of equipment
maintenance services,  2) equipment  installation  services,  and 3) value added
equipment  supply  distribution.  The  following  table sets forth the operating
contributions of each for the six months ended June 30, 2002 and 2001:

<TABLE>
<CAPTION>

2002                                           Maintenance  Integration      Supplies  Eliminations          Total
----                                           -----------  -----------      --------  ------------          -----
<S>                                             <C>         <C>              <C>       <C>              <C>
Revenues                                        $1,001,565  $        0        $398,274                   $1,399,839
Inter-segment sales                                      0           0              0            $0      $        0
Operating (loss) income                            (63,116)          0          6,221                    $  (56,895)
Depreciation and amortization                       25,869           0          5,038                    $   30,908
Interest                                            64,513           0            318                    $   64,832
Property & equipment purchases                         620           0              0                    $      620
Total assets                                    $1,324,744  $        0       $398,285    ($604,106)      $1,118,923

2001
----
Revenues                                          $915,845          $0       $427,101                    $1,342,946
Inter-segment sales                                  2,975           0          2,161      ($5,136)              $0
Operating (loss) income                           (212,028)          0         69,369                     ($142,659)
Depreciation and amortization                        9,815           0          6,965                       $16,781
Interest                                           152,348           0          6,173                      $158,521
Property & equipment purchases                      13,979           0              0                       $13,979
Total assets                                    $1,364,025     $27,004       $454,262    ($528,489)      $1,316,802
</TABLE>

<PAGE>

Item 2.  Management's Discussion and Analysis of Operations

Introduction

The financial  results  discussed herein include the consolidated  operations of
OneSource Technologies,  Inc, (hereinafter "OneSource" and/or "the Company") for
the six  months  ended  June 30,  2002 and 2001.  OneSource  is engaged in three
closely  related and  complimentary  lines of technology and business  equipment
support  activities;  1)  equipment  maintenance  services,  ("Maintenance")  2)
equipment installation  services,  ("Installation") and 3) value added equipment
supply sales,  ("Supplies").  OneSource is a leader in the technology  equipment
maintenance  and service  industry and is the  inventor of the unique  OneSource
Flat-Rate Blanket Maintenance System(TM). This program provides customers with a
Single  Source for all general  office,  computer  and  peripheral  and industry
specific equipment technology maintenance, installation and supplies products.

In April 2001 as part of  management's  refocused  emphasis on its core business
opportunities  the  Company  discontinued  the  operations  of its wholly  owned
subsidiary Net Express,  Inc., (NEI). For comparative  purposes the consolidated
financial  statements of the Company for the three-and six months ended June 30,
2001 have been restated to show the costs  incurred in shutting down the segment
separately as discontinued  operations in the following tables of financial data
as of June 30, 2001.  Fiscal 2001  financial  results have also been restated to
correct  certain  errors  that were made a) in the  amount of  expense  that was
attributed  to Common  Stock of the Company  that was issued for legal and other
services, b) the application of cash received for Common Stock subscribed and c)
other  accounting  errors that came to light during the Company's  conversion of
its accounting and information  systems  conversion in 2001. The effect of these
restatements  was to increase  the Net Loss for the three  months ended June 30,
2001 by $184,059  ($0.01 per share) and to increase  Subscriptions  Funded After
December 31, 1999 by $130,000.  These  adjustments  are  reflected in the annual
financial statements for the year ended December 31, 2001.

Summary of Operations

Operating results are improved in the six months ended June 30, 2002 compared to
the same period in fiscal 2001. The following  table  summarizes the comparative
results for the two periods:

<TABLE>
<CAPTION>
Summary of Operations                                                       2002               2001 Restated
---------------------                                                       ----               -------------
<S>                                                                    <C>                     <C>
Revenues                                                               $   1,399,841           $  1,342946
Cost of Revenue                                                        $     900,100           $   759,499
Gross Margin                                                           $     499,741           $   583,447
Selling General and Administrative Costs                               $     465,314           $   726,106
Operating Loss before Discontinued Operation                           $      34,427           $  (142,659)
Other Income (Expense)                                                 $     (91,322)          $  (186,433)
Deferred tax benefit                                                               -                24,448
Loss from discontinued operations                                                  -           $   (64,153)
     Net Loss                                                            $   (56,895)          $  (368,797)
</TABLE>

<PAGE>

Fiscal 2002 results reflect  management's  changed focus and strategic  emphasis
for the Company. In January 2001 the Board of Directors installed a new Chairman
to lead and direct a  restructuring  of  operations  to position the Company for
profitable  future  results  and granted  him  authority  to make any changes he
deemed  warranted to accomplish  this  objective.  Operations  for the first six
months of 2002 show significantly  improved results with an eighty-five  percent
(85%) decrease in the 2002 Net Loss compared to June 30, 2001.

While  consolidated  revenues  increased  slightly by about four percent (4%) in
2002 compared to 2001,  consolidated cost of revenues increased eighteen percent
(18%) resulting in lower  consolidated gross profit by ten percent (10%) for the
six  months  ended  June 30,  2002  compared  to the same  period in 2001.  This
reflects  the  continuing  higher  than  normal  parts  usage  rates the Company
continued  to absorb in its  maintenance  services  operations.  While this cost
category continued to outstrip forecasted and budgeted rates changes implemented
early in 2002 were  starting  to bear fruit by the end of the second  quarter as
gross  margins of the  maintenance  division in the three  months ended June 30,
2002  increased  significantly  to 43% versus 23% for the first three  months of
2002. Management will continue to focus on this aspect of the service operations
in order to continue to bring down parts usage rates.

The most  significant  factor  contributing  to the improved  overall  operating
results is the  thirty-six  percent  (36%)  decrease  in  Selling,  General  and
Administrative  costs in the six months  ended June 30,  2002  compared to 2001.
While the $260,793.00  decrease is substantial,  the Company continues to absorb
high General and  Administrative  costs as a percent of revenues and  management
continues  therefore to focus on  implementing  measures to bring the  aggregate
portion of G&A costs more in line with the Company's business model.

In  April  2001 the  Company  discontinued  the  operations  of its  integration
subsidiary  because too much of its activities  were  concentrated in the highly
competitive and low margin network hardware sales and integration industry which
drained resources from the Company's core equipment maintenance and installation
divisions.  The net effects of discontinued  operations are shown  separately in
the Consolidated Statement of Operations for the three and six months ended June
30, 2001.

Revenues

Consolidated  revenues  increased slightly in the six months ended June 30, 2002
compared  to the same period in 2001 as a result of  increased  revenues in both
divisions.  Supply  division  revenues,  while up slightly (3%) compared to 2001
fell below forecasted results in both quarters of 2002 but maintenance  division
results met expectations. The following tabulation shows the numbers:

<TABLE>
<CAPTION>

Revenues                                                                     2002              2001 Restated
--------                                                                     ----              -------------
<S>                                                                   <C>                    <C>
Maintenance                                                           $   959,437            $   915,845
Supplies                                                              $   440,404            $   427,101
        Total                                                         $ 1,399,841            $ 1,342,946
</TABLE>

<PAGE>

The final phase of the Company's  restructuring and realignment  campaign in the
field  services  division was  implemented  in the final quarter of 2001 and the
full  benefit of these  changes  while not fully  evident yet are  showing  very
positive  trends  as of the  end of the  first  half  of  2002.  As part of this
restructuring  the  General  Manager of the supply  division  assumed  temporary
oversight  responsibility  for all field service operations in the first quarter
of 2002 in  addition  to his GM duties and  accordingly  was pulled away a great
deal in fulfilling  his new  assignment.  Management  believes this  distraction
adversely  impacted  supply division sales in the first two quarters of 2002 but
anticipate  Supply  division  revenues  will return to their  historical  higher
levels once a newly hired service division general manager is fully ensconced in
the third quarter.

The five percent (5%) increase in maintenance  revenues for the first six months
of 2002 is the result of added service  commitments from existing  customers and
reflects the positive  benefits of changes the Company has implemented that have
improved  maintenance  customer  satisfaction  levels  to  the  highest  in  the
Company's history.  Installation services were suspended in early fiscal 2001 so
management  could  focus  the  Company's  limited  resources  on  improving  and
strengthening the Company's core maintenance and supplies  division  operations.
To the degree  installation  opportunities arise in line with present geographic
and  staffing  resources  the  Company  will  pursue and engage  them but in the
near-term management is concentrating on the maintenance and supplies divisions.
Now  that  operational   efficiencies  and  customer   satisfaction  levels  are
substantively  improved  management is focusing greater attention toward growing
revenues of these  divisions  via both  current  account  extensions  as well as
through out-bound sales and marketing efforts.

Supply division revenues only increased three percent (3%) in first half of 2002
compared to the same period in fiscal 2000,  which is less than  management  had
forecasted for the division. In addition to the distraction of the division's GM
noted  above,  the Supply  division  revenues  were also  adversely  affected by
startup issues in the division's new Internet  distribution  channel. By the end
of June though,  this  web-based  distribution  delivery  system was  completely
on-line and will significantly enhance division revenue expansion to existing as
well as potential  new  accounts.  A featured  focus of this endeavor will be to
more  deeply  cross-sell  division  products  and  services  into  the  Company'
maintenance and installation customer bases.

Operating Costs and Gross Margins

As noted,  consolidated operating margins for the six months ended June 30, 2002
were lower compared to the six months ended June 30, 2001. Gross margins for the
three  months ended June 30,  2002,  while still down from 2001  overall  rates,
improved  significantly over the first quarter 2002 rates to forty-three percent
(43%)versus  twenty-eight  percent  (28%).  Inventory  control and field service
management issues related to restructuring  changes in the maintenance  division
and distracted inventory and remanufacturing  controls in the supply division in
the  first  quarter  account  for the  lower  margins  in 2002  versus  2001 but
improvements in the latest quarter  document an improving trend and confirms the
positive effects of the restructuring changes. Once the effects of these changes
are fully rooted,  management believes margins will return to their historically
higher levels.  These improvements focus on strengthening  management  oversight
and information  system and process  infrastructures  to assure better inventory
and call routing and dispatch control in the maintenance division.

<PAGE>

Selling, General and Administrative Costs

Improvements  continued  in this  category  of costs in the three and six months
ended June 30, 2002 as management  continued to bring these costs down to levels
more  in  line  with  the  Company's   present  level  of  overall   operations.
Consolidated Selling and G&A costs decreased  $260,793.00 from the levels of the
prior year, a thirty-six  percent (36%) decline.  While down  substantially from
the prior year,  these costs at 39% of gross  revenues in the first  quarter and
33% in the  second  quarter  ended  June 30,  2002  are  still  higher  than the
Company's business model of about 30% contemplates.

Even though already  significant  reductions  have been achieved in each expense
category,  management  believes there are additional  limited  opportunities for
further cuts.  Management is focused  however on again  growing  revenues  while
holding  the  present  level  of  overhead  costs  to  bring  the  proportionate
percentage in line with expected  results.  The  following  table  schedules the
significant general administrative cost categories:

<TABLE>
<CAPTION>

General and Administrative                                                    2002                2001 Restated
--------------------------                                                    ----                -------------
<S>                                                                       <C>                     <C>
Salaries Wages and Benefits                                               $    222,803            $    402,252
Facilities                                                                $     73,616            $    116,166
Legal and Professional                                                    $     52,467            $     31,894
Telecommunication Costs                                                   $     32,744            $     33,869
Travel and Entertainment                                                  $      9,005            $     15,365
Other                                                                     $     56,693            $     32,477
        Total                                                             $    447,328            $    632,023
</TABLE>


All cost  categories are lower in the six months ended June 30, 2002 compared to
the same period in 2001 except legal and  professional  and other.  The two most
significant areas of savings were overhead  salaries and facility costs.  Salary
and benefit costs in fiscal 2001 included a $68 thousand  charge for  additional
payroll  taxes  related to periods  prior to 2001 that was  accrued in the first
quarter of 2001.  Without this charge  current  2001  results  would be less but
still not  comparable to 2002 levels.  The remaining  difference  reflects staff
reductions  that were made in the latter half of 2001 to reduce  overhead  staff
and their related costs.  Company staff has been reduced to 35 employees in 2002
from 56 at the beginning of 2001 with most of the  reductions  being made in the
general overhead category.  Facility costs decreased due to renegotiation of the
Company's  building  lease and  reduction  of space  leased.  All other  general
administrative  costs are down reflecting  improvements and cuts that management
has  installed  during  fiscal  2001 to  curtail  and  reduce  operating  costs.
Substantially all these reductions occurred in the last quarter of 2001 and into
the first half of 2002.  These declines further document the improved effects of
management's infrastructure and operational changes.

Results for the three and six months  ended June 30, 2001 have been  restated to
correct certain  accounting errors that were identified in fiscal 2001 but which
related  to  periods  prior  to the  year  ended  2001.  Much of the  impact  of
adjustments  to correct these prior period errors were posted to accounts in the
G&A cost category which further  contributed to the  substantial  decline in G&A
costs in the six months ended June 30, 2002 compared to the same period in 2001.

<TABLE>
<CAPTION>
Sales and Marketing                                                        2002                2001 Restated
-------------------                                                        ----                -------------
<S>                                                                     <C>                    <C>
Salaries, Commissions and Benefits                                      $   13,681             $   72,535
Advertising and Promotion                                               $    4,163             $   11.937
Travel and Entertainment                                                $      142             $    9,611
        Total                                                           $   17,986             $   94,083
</TABLE>
<PAGE>

The decline in selling  personnel  costs is largely the result of the  Company's
turnaround restructuring activities.  The paramount objective of that effort was
to  streamline  overall  operations  and  redirect  corporate  resources  toward
improving  the  Company's  core  maintenance  and  supplies  division  operating
infrastructures  and  management.  Consequently  sales  and  marketing  became a
casualty of this redirected  focus and accordingly  have taken a back seat while
the  realignment  was being  implemented.  Now that  operational  and management
changes  are  largely  in  place  and  the  attendant   infrastructure  improved
management is  concentrating on implementing  and  significantly  supporting the
sales and marketing plans that have been  heretofore on hold pending  completion
of the strategic redirectional thrust of the Company.

Loss from Continuing Operations

While  the  Company  again  incurred  a loss  from  continuing  operations  ($57
thousand)  before taxes for the six months ended June 30, 2002,  operations  for
the three months ended June 30, 2002 generated net income of $54 thousand versus
a loss for the same period of $91 thousand in 2001. This dramatic turn around is
due to a)  improvement  in  division  operating  rates,  and b) the  substantial
decrease  in  overhead  costs for the three and six months  ended June 30,  2002
compared to 2001.

Interest and Other Income (Expense)

<TABLE>
<CAPTION>

Other Income (Expense)                                                        2002                2001 Restated
----------------------                                                        ----                -------------
<S>                                                                        <C>                    <C>
Interest                                                                   $   (64,831)           $  (158,521)
Other                                                                      $   (26,491)           $   (27,912)
        Total                                                              $   (91,322)           $  (186,433)
</TABLE>

Interest  costs  declined  in the six months  ended June 30,  2002 by about half
compared  to  the  half  ended  June  30,  2001  mainly  because  of  investment
"sweeteners"  that were paid in 2001 to secure  funding.  No such  charges  were
incurred in 2002 and no additional debt has been tranched into the Company since
the third  quarter of 2001.  Interest  expense  relates  to  Company  short-term
borrowings  invested  to  support  funding  needed in 2000 and 2001 to cover the
Company's turnaround and continues. Also contributing to the decline in interest
cost is the Company's decision in 2001 to discontinue  granting stock incentives
to lenders for debt funding.

Liquidity and Capital Resources

The following table sets forth selected  financial  condition  information as of
March 31, 2002 compared to December 31 2001:

<TABLE>
<CAPTION>

Balance Sheet -                                                                       2002               2001 Restated
---------------                                                                       ----               -------------
<S>                                                                               <C>                  <C>
Working Capital                                                                   ($1,150,885)         ($1,142,870)
Total Assets                                                                       $1,118,923           $1,208,027
Debt Obligations                                                                     $975,236             $952,851
Shareholders' (Deficit)                                                             ($623,732)           ($566,837)
</TABLE>
<PAGE>

While  operationally  things have improved  since  year-end  2001  liquidity and
sufficient capital resources  continued to be a problem during the first half of
2002.  Total costs continued to exceed revenues  throughout the first six months
but in the last month of the second  quarter 2002  revenues  exceeded  costs and
contributed  a before  tax  profit in the  second  quarter  of 2002.  Cash flows
therefore  are expected to continue to improve  through the balance of the year.
Short-term  obligations  remained largely at their year-end 2001 levels and is a
primary reason for the continuing decline in the Company's current ratio at June
30, 2002 to 0.33%  compared to 0.44% at December 31, 2001.  The 0.33% however is
an improvement  over the 0.26% negative working capital ratio at March 31, 2002.
Cash used in  operations  of  $77,468  for the six months  ended  June 30,  2002
primarily reflects the Company's paying down of vendor trade payables of $93,393
during the period.

During the last quarter of 2001 cash flow short falls dropped significantly with
the addition of new maintenance business coming on-line in the quarter.  Monthly
cash  deficiency in the first quarter  remained at about $25 thousand versus the
$85 to $100 thousand a month negative cash flow  throughout much of 2001, but by
the end of June 2002 monthly cash flow was slightly  positive for the first time
in two and half  years.  Accordingly  the  Company  has been able to  adequately
manage cash flow since September 2001 without having to make further borrowings.
Management  believes it can continue to manage this  shortfall in the  near-term
with  additional  new business that is pending  while it  negotiates  additional
funding opportunities intended to recapitalize the Company.

The  Company  is  engaged  in  this   regard  in   negotiations   with   several
investment-banking  firms and others with the intent of securing  equity funding
of $1 million. These negotiations were continuing at June 30, 2002.

Also  contributing to the decreased  working  capital  position at June 30, 2002
compared to year-end 2001 was the overall increase in current liabilities versus
current  assets at  December  31, 2001  primarily  because of  short-term  debt.
Current  asset  account  balances  remained at near December 31, 2001 levels but
current liabilities, except short-tem debt levels were lower at June 30, 2002

In March 2001 the  Company and holders of four of the  Company's  notes  payable
that were due in March and  September  of 2001  entered  into Note  Deferral and
Extension  Agreements  wherein  each note holder  agreed to defer all  principal
payments  until  July  15,  2001,  where  upon  the  Company  agreed  to  make a
twenty-five  percent (25%) principal  payment to each note holder and the notes'
due dates were  extend to July 15,  2002.  But at July 15,  2001 the Company was
unable to make the scheduled  partial principle payment or commence making level
monthly principal and interests payments over the remaining  twelve-month period
of the notes.  As part of that agreement the Company also agreed to increase the
interest rates of the notes from their stated twelve to fourteen percent (12% to
14%) to eighteen percent (18%). The Company has continued to make timely monthly
interest payments to the holders. The Company intends to renegotiate these notes
and establish a repayment schedule  permitting paying off the obligations over a
two to three year period.  Management is in  communication  with the holders and
believes it will be able to negotiate such an arrangement.

At June 30, 2002 the Company had accrued  approximately  $47  thousand of unpaid
payroll taxes, interest and penalties. At the end of June, the Company submitted
required  documentation in support of the "Offer In Compromise" it filed in 2001
with the IRS.  Management  believes  the  Company  will be able to  successfully
liquidate this liability  without incurring any adverse effects on the Company's
financial condition from actions of the IRS.

<PAGE>

Employees

     At June 30, 2002, the Company employed  thirty-four  (34) persons.  None of
these  employees  are  represented  by a labor union for purposes of  collective
bargaining.  The  Company  considers  its  relation  with  its  employees  to be
excellent.  The  Company  plans to employ  additional  personnel  as needed upon
product rollout to accommodate fulfillment needs.

Research and Development Plans

     The Company  believes that research and development is an important  factor
in its future growth.  The equipment  service  industry is closely linked to the
technological advances of the products it services.  Therefore, the Company must
continually  invest in learning the new  technology  to provide the best quality
service to the public and to  effectively  compete  with other  companies in the
industry.  No assurance can be made that the Company will have sufficient  funds
to complete  new  training in the latest  technological  advances as they become
available.  Additionally,  due to the  rapid  advance  rate at which  technology
advances,  the  Company's  equipment  may be  outdated  quickly,  preventing  or
impeding the Company from realizing its full potential profits.

Forward-Looking Statements

     Certain statements contained in this quarterly filing,  including,  without
limitation, statements containing the words "believes", "anticipates", "expects"
and  words  of  similar  import,  constitute  forward-looking  statements.  Such
forward-looking  statements  involve known and unknown risks,  uncertainties and
other factors that may cause the actual results,  performance or achievements of
the Company,  or industry  results,  to be materially  different from any future
results,   performance   or   achievements   expressed   or   implied   by  such
forward-looking statement.

     Such factors include, among others, the following: international, national,
and local  general  economic and market  conditions:  demographic  changes;  the
ability of the Company to sustain, manage or forecast its growth; the ability of
the Company to successfully make and integrate acquisitions;  raw material costs
and availability; new product development and introduction;  existing government
regulations  and  changes  in,  or  the  failure  to  comply  with,   government
regulations;  adverse publicity;  competition; the loss of significant customers
or suppliers;  fluctuations  and  difficulty in forecasting  operating  results;
changes in business strategy or development  plans;  business  disruptions;  the
ability  to attract  and  retain  qualified  personnel;  the  ability to protect
technology; and other factors referenced in this and previous filings.

     Given these  uncertainties,  readers of this Form 10-QSB and  investors are
cautioned not to place undue reliance on such  forward-looking  statements.  The
Company  disclaims  any  obligation  to update any such  factors or to  publicly
announce the result of any  revisions to any of the  forward-looking  statements
contained herein to reflect future events or developments.

<PAGE>

PART II

Item 1. Legal Proceedings.

     The Company has been named in a lawsuit  claiming  that the  developer of a
certain  website  development  project was unpaid.  The Company has disputed the
claim  stating  that it was not the owner of the website  and that it  therefore
should not be named as an obligor for its  development.  The amount of the claim
is $13,000.  The case was  dismissed and settled on the 28th of June 2002 at the
cost of $2,000 to the Company.

     The Company is a named  defendant in a lawsuit filed by the former owner of
Net Express.  The dispute  relates to certain  transactions  entered into by the
former owner on behalf of Net Express without appropriate  management  approval.
Management believes that all obligations have been recorded. Management believes
that this obligation  will  ultimately be transferred  back to the former owner.
The Company has filed a  counter-suit  against the former owner.  The case is in
its early (pre-discovery) stage.

Item 2. Changes in Securities and Use of Proceeds

         None.

Item 3. Defaults in Senior Securities

         None.

Item 4. Submission of Matters to a Vote of Security Holders

     No matter was submitted during the quarter ending June 30, 2002, covered by
this report to a vote of the Company's shareholders, through the solicitation of
proxies or otherwise.

Item 5. Other Information

         None

Item 6. Exhibits and Reports on Form 8-K

(a)  The exhibits  required to be filed herewith by Item 601 of Regulation  S-B,
     as described in the following index of exhibits, are incorporated herein by
     reference, as follows:

<TABLE>
<CAPTION>
Exhibit No.      Description
-----------      -----------
<S>              <C>
3.(i).1  [1]     Certificate of Incorporation of L W Global (U.S.A.), Inc. filed August 27, 1996.

3.(i).2  [1]     Certificate of Amendment of Certificate of Incorporation filed January 16, 1997.

3.(i).3  [1]     Certificate of Amendment of Certificate of Incorporation changing name to Micor Technologies,Inc dated July 28,1997
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
Exhibit No.      Description
-----------      -----------
<S>              <C>
3.(i).4  [1]     Certificate of Amendment of Certificate of Incorporation changing name to OneSource Technologies, Inc. dated August
                  22, 1997.

3.(ii).1 [1]     Bylaws of L W Global (U.S.A.), Inc.

4.1      [1]     Form of Private Placement Offering of 1,200,000 common shares at $0.01 per share dated September 10, 1996

4.2      [1]     Form of Private Placement Offering of 300,000 common shares at $0.01 per share dated July 14, 1997

4.3      [1]     Form of Private Placement Offering of 575,000 common shares at $0.50 per share dated September 17, 1997

10.1     [1]     Share Exchange Agreement between L W  Global (U.S.A.), Inc. and Micor Technologies, Inc. dated July 15, 1997

10.2     [1]     King Soopers Agreement dated September 1, 1998

10.3     [1]     Attachment B to King Soopers Agreement dated September 1, 1998

10.4     [1]     King Soopers Contract Renewal and Extension dated September 8, 1998

10.5     [1]     Promissory Note by Cossack Financial, LLC in favor of the Company dated March 31, 1999

10.6     [1]     Agreement to Extend Promissory Note by Cossack Financial, LLC in favor of the Company dated January 3, 2000.

10.7     [1]     Promissory Note by Titan Capital Partners, LLC in favor of the Company dated March 31, 1999

10.8     [1]     Agreement to Extend Promissory Note by Titan Capital Partners, LLC in favor of the Company dated January 4, 2000.

10.9     [1]     Share Exchange Agreement with Net Express, Inc. dated April 15, 1999.

10.10    [1]     Stock Redemption Agreement (Exhibit A to Net Express Share Exchange).

10.11    [1]     Employment Agreement (Exhibit B to Net Express Share Exchange).

10.12    [1]     Stock Purchase Agreement with Blackwater Capital Partners II, L.P. dated May 26, 1999.

10.13    [1]     Investor Rights Agreement with Blackwater Capital Partners II, L.P. dated May 26, 1999.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit No.      Description
-----------      -----------
<S>              <C>
10.14    [1]     Share Exchange Agreement with Cartridge Care, Inc. dated September 1, 1999.

10.15    [1]     Lease of Scottsdale, Arizona property dated September 20, 1999.

10.16    [2]     Promissory Note by Micor Technologies, Inc. in favor of William Meger dated November 28, 1995

10.17    [2]     Promissory Note by Jerry Washburn and others in favor of PF Holdings, Inc. dated July 31, 1997

10.18    [2]     Form of Note Modification Agreement dated February 2000.

10.19    [2]     Installment Agreement between the Company and the Department of the Treasury of the Internal Revenue Service dated
                 July 2000.

10.20    [2]     Option Agreement between the Company and XCEL ASSOCIATES, Inc. dated June 1, 2000.

10.21    [2]     Agreement For A Finder's Fee between the Company and XCEL ASSOCIATES, Inc. dated June 1, 2000.

10.22    [2]     Business Consulting Agreement between the Company and XCEL ASSOCIATES, Inc dated June 1, 2000.

10.23    [2]     Term Sheet for loan by the Company from Grace Holdings, Inc. dated June 29, 2000.

10.24    [2]     Letter Agreement  between the Company and Maurice Mallette, Judith Mallette and Pasquale Rizzi to escrow shares of
                 the Company dated June 8, 2000.

10.25    [3]     Promissory Note by the Company in favor of Barry Zemel dated August 29, 2000.

10.26    [4]     OneSource Technologies, Inc. Year 2001 Employee/Consultant Stock Compensation Plan.

10.27    [5]     Addendum to City Market Store Equipment Maintenance Contract with King Soopers dated July 31, 2001.

10.28    [5]     Subcontractor Agreement with Tecniflex, Inc dated March 9, 2001.

10.29    [5]     Indemnification Agreement between the Company and Jerry M. Washburn dated January 4, 2001.

10.30    [5]     Indemnification Agreement between the Company and Thomas E. Glasgow dated January 4, 2001.

10.31    [5]     Employment agreement between the Company and Thomas E. Glasgow dated January 4, 2001.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit No.      Description
-----------      -----------
<S>              <C>
23.1     [4]     Consent of Marshall & Weber, CPA's, P.L.C.

23.2     [4]     Consent of Mintmire & Associates (contained in the opinion filed as Exhibit 5.1)
</TABLE>
          [1]  Filed as an exhibit to the Company Registration Statement on Form
               10SB filed July 10, 2000.

          [2]  Filed as an exhibit to the Company's  first amended  Registration
               Statement on Form 10SB filed October 13, 2000.

          [3]  Filed as an exhibit to the Company's  third amended  Registration
               Statement on Form 10SB filed January 26, 2001.

          [4]  Filed as an exhibit to the  Company's  Registration  Statement on
               Form S-8 filed  July 25,  2001.  [5] Filed as an  exhibit  to the
               Company's Annual Report on Form 10-KSB filed April 10, 2002.

          [b]  No reports on Form 8-K have been filed.

<PAGE>
                                   SIGNATURES

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                        ONESOURCE TECHNOLOGIES, INC
                                       (Registrant)

Date: August 8, 2002                    By: /S/ Thomas E. Glasgow
                                        ---------------------------
                                        Thomas E. Glasgow, Chairman

                                        By: /S/ Jerry M. Washburn
                                        ---------------------------
                                        Jerry M. Washburn, President, CEO,
                                        Director and acting Secretary
                                        and Treasurer

                                        By: /S/ Donald E. McIntyre
                                        ---------------------------
                                        Donald E. McIntyre, Director
<PAGE>