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: March 31, 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:

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

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

                    Common Stock, $0.001 par value per share
            --------------------------------------------------------
                                (Title of class)

Copies of Communications Sent to:

                                   Mintmire & Associates
                                   265 Sunrise Avenue, Suite 204
                                   Palm Beach, FL 33480
                                   Tel: (561) 832-5696 - Fax: (561) 659-5371






<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 March 31, 2002,  there were 26,686,929  shares of voting stock of the
registrant issued and outstanding.




<PAGE>





                          ONESOURCE TECHNOLOGIES, INC.



                     Consolidated Financial Statements as of
                             March 31, 2002 and 2001

                                   (Unaudited)










<PAGE>







ONESOURCE TECHNOLOGIES, INC.



TABLE OF CONTENTS

                                                                            Page


CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2002                             F-1

CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE
MONTHS ENDED MARCH 31, 2002  AND 2001                                       F-2

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THREE
MONTHS ENDED MARCH 31, 2002 AND 2001                                        F-3

FOOTNOTES                                                                   F-4







<PAGE>




<TABLE>
<CAPTION>
ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2002


ASSETS
<S>                                                                             <C>
CURRENT ASSETS:
    Cash                                                                        $          17,310
    Accounts receivable                                                                   230,083
    Inventories                                                                           178,624
    Other current assets                                                                   20,425
        Total current assets                                                              446,443
                                                                                -----------------

PROPERTY AND EQUIPMENT, net of accumulated depreciation $160,290                          193,037

GOODWILL                                                                                  235,074

DEFERRED INCOME TAXES                                                                     140,187

OTHER ASSETS                                                                                3,374

TOTAL ASSETS                                                                    $       1,018,114
                                                                                =================


LIABILITIES AND STOCKHOLDERS" DEFICIT

CURRENT LIABILITIES:
    Accounts payable                                                            $         292,957
    Accrued expenses and other liabilities                                                325,062
    Deferred revenue                                                                      140,860
    Bank line of credit                                                                    50,000
    Current portion capital leases                                                          5,136
    Current portion of debt                                                               873,616
         Total current liabilities                                                      1,687,631
                                                                                -----------------

INSTALLMENT NOTES - LONG-TERM PORTION                                                       7,788

TOTAL LIABILITIES                                                                       1,695,419
                                                                                -----------------

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 March 31, 2002                                           24,963
    Paid in capital                                                                     2,685,004
    Accumulated deficit                                                               (3,387,270)
                                                                                -----------------
                                                                                        (677,304)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                     $       1,018,114
                                                                                =================
</TABLE>


         The accompanying notes are an integral part of this statement.

                                       F-1


<PAGE>



<TABLE>
<CAPTION>
ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 FOR THREE MONTHS ENDING MARCH 31


                                                                                                      Restated
                                                                                    2002                2001
                                                                             ------------------   -----------------
<S>                                                                          <C>                   <C>
REVENUE, net                                                                 $          678,990    $        662,729
COST OF REVENUE                                                                         490,196             405,340
                                                                             ------------------   -----------------
       GROSS PROFIT                                                                     188,794             257,389

GENERAL AND ADMINISTRATIVE EXPENSES                                                     255,453             578,834
SELLING AND MARKETING EXPENSES                                                            6,605              53,058
                                                                             ------------------   -----------------
       Operating Loss                                                                   (73,265)           (374,503)

OTHER INCOME (EXPENSE)
    Interest expense                                                                    (35,109)            (72,938)
    Other income (expense)                                                               (2,093)             (3,770)
                                                                             ------------------   -----------------
       Total other expense                                                              (37,202)            (76,708)

LOSS BEFORE DISCONTINUED OPERATION AND INCOME TAXES                                    (110,467)           (451,211)

    Income Tax Benefit related to accounting corrections                                      -              20,445

LOSS FROM CONTINUING OPERATIONS                                                        (110,467)           (430,766)

    Loss from discontinued operation of integration segment                                   -             (73,260)
NET LOSS                                                                     $         (110,467)  $        (504,026)
                                                                             ==================   =================

LOSS PER SHARE -
       Basic before loss from discontinued operation                                 **            $            (0.02)
       Loss from discontinued operation                                                  -                **
       Net loss                                                                      **            $            (0.03)

       Diluted before loss from discontinued operation                               **            $            (0.02)
       Loss from discontinued operation                                                  -                **
       Net loss                                                                      **            $            (0.03)

Weighted Average Shares Outstanding:

       Basic                                                                         24,963,317          18,134,245
       Diluted                                                                       24,963,317          18,134,245

     **Less than $0.00 per share
</TABLE>




         The accompanying notes are an integral part of this statement.

                                       F-2



<PAGE>




<TABLE>
<CAPTION>
ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31


                                                                                                        Restated
                                                                                      2002                2001
                                                                               ------------------- -------------------
<S>                                                                             <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                                                     $         (110,467) $         (504,026)
   Adjustments to reconcile net loss to net cash  provided (used) by operations -

      Loss from discontinued operation                                                           -              73,260
      Depreciation/Amortization                                                             12,736              16,781
      Amortization of deferred financing costs                                                   -              61,671
      Stock issuances to consultants for services                                                -           (152,231)
      Stock issuances to employees for services                                                  -             156,297
      Changes in assets and liabilities (net of acquisitions):
      Deferred taxes                                                                             -             (20,445)
          Accounts receivable                                                               81,912              42,279
          Inventory                                                                         30,421             (63,573)
          Other current assets                                                               1,576              18,158
          Accounts payable                                                                 (66,606)           (147,494)
          Accrued expenses and other liabilities                                            (1,166)            (44,913)
          Non cash accrued expenses and other liabilities                                        -              62,090
          Deferred revenue                                                                   1,234              10,819
                                                                                ------------------ -------------------
                 Net cash (used) provided by continuing operating activities               (50,360)           (491,327)
                                                                                ------------------ -------------------
                 Net cash (used) provided by discontinued operating activities                   -             (48,812)
                                                                                ------------------ -------------------
NET CASH Provided (used) by Operating Activities                                           (50,360)           (540,139)
                                                                                ------------------ -------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
      Purchases of property and equipment                                                     (355)            (14,545)
      Disposal of equipment                                                                   (658)                  -
      Loss on Disposal of equipment                                                          6,158                   -
                                                                                ------------------ -------------------
                     Net cash provided (used) by investing activities                        5,145             (14,545)
                                                                                ------------------ -------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Principal payments on capital lease obligations                                            (672)              3,745
   Proceeds on notes payable                                                                     -             150,000
   Principal payments on notes payable                                                     (12,236)                  -
   Funds received for stock subscriptions                                                        -             130,000
   Issuance of common stock (net of capital placement fees)                                      -             152,231
                     Net cash provided (used) by financing activities                      (12,908)            435,976
                                                                                ------------------ -------------------

INCREASE (DECREASE) IN CASH                                                                (58,123)           (118,708)

CASH, January 1                                                                             75,433             176,441
CASH, March 31                                                                  $           17,310  $           57,733
                                                                                ================== ===================
</TABLE>



         The accompanying notes are an integral part of this statement.
                                       F-3



<PAGE>




ONESOURCE TECHNOLOGIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 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  sttements for the three months ended March 31, 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 Commpon 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 ended March
31, 2001by  $206,182,  ($0.01 per share),  net of related  income tax benefit of
$20,445 and to increase Subscriptions Funded Afer December 31, 1999 by $130,000.


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 months ended March 31, 2001 have been restated to reclassify costs related
to  discontinuing  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 in the months ended March 31,
2001 were valued based on the fair value of the stock issued  and/or the service
rendered.  No  shares  were  issued in the  quarter  ended  March  31,  2002 for
services.  The  following  table shows the number of shares  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.

                                       F-4



<PAGE>







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 three months ended March 31, 2002 and 2002:

<TABLE>
<CAPTION>
                                        Maintenance     Integration        Supplies        Eliminations          Total
                                      ---------------  --------------  ----------------  ----------------  ------------------
<S>              <C>                    <C>              <C>              <C>             <C>                 <C>

                 2002
Revenues                                 $474,403              $0          $204,587                              $678,990
Inter-segment sales                             0               0                 0                $0                   0
Operating (loss) income                 (106,127)               0           (4,340)                             (110,467)
Depreciation and amortization               7,778               0             2,519                                10,297
Interest                                   35,023               0                86                                35,109
Property & equipment purchases                355               0                 0                                   355
Total assets                           $1,324,744              $0          $398,285        ($678,279)          $1,044,750

                 2001
Revenues                                 $437,211              $0          $225,517                              $662,729
Inter-segment sales                         2,975               0             2,161          ($5,136)                   0
Operating (loss) income                 (524,877)               0            20,850                             (504,027)
Depreciation and amortization               9,815               0             6,965                                16,781
Interest                                   69,091               0             3,847                                72,938
Property & equipment purchases             13,979               0                 0                                13,979
Total assets                           $1,364,025         $27,004          $454,262        ($528,489)          $1,316,801
</TABLE>



                                                       ********














                                       F-5


<PAGE>



Item 2. Management's Discussion and Analysis or Plan of Operation

General

     In January 2002, Donald E. McIntyre was appointed by the Board of Directors
to fill a vacancy on the Board until the next annual meeting of the shareholders
in which Directors are elected.

     In March 2002,  the  Company  committed  to issue  Thomas E.  Glasgow,  the
Company's  current  Chairman,  750,000 shares of its  unrestricted  common stock
pursuant to a Registration Statement filed on Form S-8 July 25, 2001. The shares
will be issued as control stock.

     The Company  relied upon Section  4(2) of the  Securities  Act of 1933,  as
amended (the "Act") and Rule 506 of Regulation D promulgated  thereunder  ("Rule
506") for recent  issuances of its  unregistered  securities.  In each instance,
such  reliance  was based upon the fact that (i) the  issuance of the shares did
not involve a public  offering,  (ii) there were no more than  thirty-five  (35)
investors (excluding "accredited investors"), (iii) each investor who was not an
accredited  investor  either alone or with his purchaser  representative(s)  has
such  knowledge  and  experience  in financial  and business  matters that he is
capable of evaluating the merits and risks of the prospective investment, or the
issuer  reasonably  believes  immediately  prior to  making  any sale  that such
purchaser comes within this description,  (iv) the offers and sales were made in
compliance  with Rules 501 and 502, (v) the securities  were subject to Rule 144
limitations on resale and (vi) each of the parties was a sophisticated purchaser
and had full  access to the  information  on the  Company  necessary  to make an
informed  investment  decision by virtue of the due  diligence  conducted by the
purchaser or  available  to the  purchaser  prior to the  transaction  (the "506
Exemption").

     In May 2002,  the Company sold 2,000,000  shares of its  restricted  common
stock to Anderson Hall Group,  Inc., an Arizona  corporation  for $100,000.  For
such offering, the Company relied upon the 506 Exemption and Section 14-4-140 of
the Arizona Code.

     The facts  upon  which the  Company  relied  upon for  purposes  of Section
14-4-140 of the Arizona Code are: (i) offers by the issuer were made only by the
Company's  employees,  officers  and  directors  who were not  retained  for the
primary  purpose of making  offers;  (ii) the sale of securities  did not exceed
$1,000,000;  (iii) the  Company  was not a  development  stage  company  with no
specific  business plan or a development  stage company that has indicated  that
its business plan is to engage in a merger or acquisition  with an  unidentified
company or companies, or other entity or person; (iv) offers specified that they
would  be made  only  to  accredited  investors  and  sales  were  made  only to
accredited  investors;  (v) a legend was placed on all offering  documents;  and
(vi) the  issuer,  any of its  predecessors,  affiliates,  directors,  officers,
beneficial  owners  of ten  (10)  percent  or more of any  class  of its  equity
securities did not fall within the disqualification provisions.

Discussion and Analysis

Introduction

     The financial results discussed herein include the consolidated  operations
of OneSource Technologies,  Inc, (hereinafter  "OneSource" and/or "the Company")
for the three  months  ended  March 31, 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-months  ended
March 31, 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 March 31, 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 March 31, 2001 by $206,182  ($0.01 per share) and to increase
Subscriptions Funded After December 31, 1999 by $130,000.


Summary of Operations

     Operating  results are  improved in the three  months  ended March 31, 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                                            $    678,990           $   662,729
   Cost of Revenue                                     $    490,196           $   405,340
   Gross Margin                                        $    188,794           $   257,389
   Selling General and Administrative Costs            $    262,058           $   631,892
   Operating Loss before Discontinued Operation        $    (73,265)          $  (374,503)
   Other Income (Expense)                              $    (37,202)          $   (76,708)
   Deferred tax benefit                                          -                 20,445
   Loss from discontinued operations                             -            $   (73,260)

   Net Loss                                            $   (110,467)          $  (504,026)

</TABLE>


<PAGE>



     Fiscal  2002  results  reflect  management's  changed  focus and  strategic
emphasis for the Company.  The Company's  rapid growth and expansion in 1999 and
early  2000  contributed  to a number of  operational  problems  that  adversely
impacted the Company's operating results in fiscal 2000 and 2001. Those problems
centered on a) contraction of core  maintenance  revenues and b) abnormally high
operating  costs stemming from disparate and competing  agendas among and within
the Company's operating divisions.

     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 three months of 2002 show
significantly  improved  results with an eighty-three  percent (83%) decrease in
the 2002 Net Loss compared to March 31, 2001.

     While  consolidated  revenues increase slightly by about three percent (3%)
in 2002  compared  to 2001,  consolidated  cost of revenues  increased  fourteen
percent (14%)  resulting in lower  consolidated  gross profit by eleven  percent
(11%) for the three months  ended March 31, 2002  compared to the same period in
2001.  A ten percent  (10%)  decline in the supply  division's  sales and higher
field service costs contributed to this adverse decline in gross margins for the
period. As a result  consolidated  gross margins declined to thirty-two  percent
(32%) for the three months ended March 31, 2002 versus thirty-eight  percent for
the quarter ended March 31, 2001.

     The most significant factor  contributing to the improved overall operating
results is the fifty-six  percent (56%)  decrease in General and  Administrative
costs  in the  quarter  ended  March  31,  2002  compared  to  2001.  While  the
approximate  $325  thousand  decrease is  substantial  the Company  continues to
absorb  high  General  and  Administrative  costs as a percent of  revenues  and
management  continues 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  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 months ended March 31,
2001.

Revenues

     Consolidated  revenues  increased  slightly in the three months ended March
31,  2002  compared  to the  same  period  in  2001  as a  result  of  increased
maintenance division revenues.  Supply division revenues decreased approximately
nine percent (9%) in 2002 compared to 2001 as the following table illustrates:

<TABLE>
<CAPTION>
------------------------------------------------------------------------
Revenues                                 2002              2001 Restated
------------------------------------------------------------------------
<S>                                 <C>                     <C>
   Maintenance                      $   474,403             $   437,211
   Supplies                         $   204,587             $   225,517

       Total                        $   678,990             $   662,728
</TABLE>


<PAGE>



     The final phase of the Company's  restructuring and realignment campaign in
the field services part of the  operations was  implemented in the final quarter
of 2001 and the full benefit of these  changes have not been  realized as of the
end of the first quarter of 2002.  Further,  as part of this  restructuring  the
General Manager of the supply division assumed oversight  responsibility for all
field service operations in addition to his GM duties and accordingly was pulled
away a  great  deal  in  the  quarter  assimilating  his  new  responsibilities.
Management believes this distraction adversely impacted supply division sales in
the  quarter  but  anticipate  Supply  division  revenues  will  return to their
historical higher levels once the responsibility changes are fully implemented.

     The nine percent (9%) increase in maintenance  revenues for the first three
months  of 2002  is the  result  of  added  service  commitments  from  existing
customers in the last  quarter of 2001 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 have  improved  management  is
focusing greater  attention growing revenues of these divisions via both current
account extensions as well as through out-bound sales and marketing efforts.

     Supply division  revenues  decreased nine percent (9%) in the quarter ended
March 31, 2002  compared to the same period in fiscal  2000.  In addition to the
distraction of the division's GM in the quarter as noted above,  supply division
revenues  were also  adversely  affected  by not having the  division's  planned
Internet  distribution  channel  fully  on line  in the  period.  Management  is
committed  however to bringing the division's  web-based  distribution  delivery
system  completely  on-line by the end of the second  quarter of fiscal  2002 in
order to 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 three months ended March
2002 declined to  twenty-eight  percent (28%) compared to  thirty-eight  percent
(38%) in the quarter ended March 31, 2001. Gross margin on maintenance  services
was  twenty-nine  percent (29%) for the quarter ended march 31, 2002 compared to
37% in 2001 and supply division margins declined from forty-two percent (42%) in
fiscal 2001 to  twenty-six  percent  (26%) for the three  months ended March 31,
2002.  Inventory  control and field  service  management  issues  related to the
continuing  restructuring  changes in the  maintenance  division and  distracted
inventory  and  remanufacturing  controls in the supply  division in the quarter
account for the lower margins.

     Further  contributing to the higher costs in the maintenance  division were
the added costs associated with implementing the changes in management oversight
including travel to the Company's Colorado region where a significant portion of
the  divisions  operations  are located.  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 months ended
March 31, 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  almost $370  thousand  from the levels of the
prior year, a fifty-nine  percent (59%) decline.  While down  substantially from
the prior year these costs at 39% of gross  revenues  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             $    134,510          $    275,366
   Facilities                              $     52,058          $     50,838
   Legal and Professional                  $     21,554          $    217,795
   Telecommunication Costs                 $     16,121          $     20,667
   Travel and Entertainment                $        604          $      4,150
   Other                                   $     30,606          $     10,008

      Total                                $    255,453          $    578,834
</TABLE>

     All cost  categories  are lower in the three  months  ended  March 31, 2002
compared to the same period in 2001 except Other. The two most significant areas
of savings were overhead salaries and legal and professional  costs.  Salary and
benefit costs in fiscal 2001 included a $68 thousand charge for additional trust
fund  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.  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  quarter of 2002.  These
declines further  document the improved  effects of management's  infrastructure
and operational changes.

     Results for the quarter  ended March 31, 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 three months ended March 31, 2002 compared to the same period in 2001.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
Sales and Marketing                                  2002                2001 Restated
--------------------------------------------------------------------------------------------
<S>                                                 <C>                  <C>
   Salaries, Commissions and Benefits               $   3,500            $   40,419
   Advertising and Promotion                        $   2,488            $    6,644
   Travel and Entertainment                         $     616            $    5,995

      Total                                         $   6,604            $   53,058
</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

     The  Company  again  incurred  a loss  from  continuing  operations  before
interest expense and other charges for the three months ended March 31, 2002 but
the magnitude of the loss declined  significantly,  (83%) in the quarter  ending
March 31,  2002  compared  to the same  period of fiscal  2001.  As noted,  this
dramatic turn around is due to a) some improvement in division  operating rates,
and b) the  substantial  decrease in overhead  costs for the quarter ended March
31, 2002 compared to 2001.

Interest and Other Income (Expense)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Other Income (Expense)                        2002                2001 Restated
--------------------------------------------------------------------------------
<S>                                         <C>                    <C>
   Interest                                 $   (35,109)           $   (72,938)
   Other                                    $    (2,094)           $    (3,770)

      Total                                 $   (37,203)           $   (76,708)
</TABLE>



     Interest  costs  declined in the three months ended March 31, 2002 by about
half compared to the quarter  ended March 31, 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                     ($1,248,975)         ($1,129,210)
   Total Assets                          $1,018,114           $1,208,027
   Debt Obligations                        $936,540             $952,851
   Shareholders' (Deficit)               ($677,304)           ($566,837)
</TABLE>


     While operationally  things have improved since year-end 2001 liquidity and
sufficient  capital resources  continued to be a problem during the three months
ended March 31, 2002.  Total costs continued to exceed  revenues  throughout the
period and the Company  continued to operate in a negative  cash flow  position.
Cash flows have improved  sufficiently in the last quarter of 2001 and the first
quarter of 2002 that the  Company has been able to fund  operations  without any
outside funding.  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 March 31, 2002 to 0.26% compared to 0.44% at December 31, 2001.


<PAGE>



     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.  Accordingly  the  Company was 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 March 31 December 31, 2002.

     Also  contributing to the decreased  working capital  position at March 31,
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.
Accounts   receivable  accounts  for  most  of  the  current  asset  decline  as
inventories  at March 31, 2002 are near their  year-end  2001  levels.  Accounts
receivable decreased 26% from year-end levels. While some of the decrease is the
result of improved  collection  activities most of the decrease is due to timing
of significant  account  receipts.  . Current  liabilities  including  short-tem
borrowings  remained  generally  at  December  2001 levels  except for  accounts
payables which  decreased 22% at March 31, 2002 due to less legacy cost payments
in the quarter.

     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.  Further the Company is in communication  with
the holders and believes it will be able to negotiate an  arrangement  that will
not adversely impact the Company's continuing operations.

     At March  31,  2002 the  Company  had  accrued  delinquent  payroll  taxes,
penalties and interest of approximately $57 thousand of which  approximately $16
thousand  represents  the Trust Fund  principle  portion.  While the  Company is
current in payment of all its payroll tax  liabilities  and has been since April
2000 and has been  making  $11.5  thousand  a month  payments  against  the past
accrual the IRS was  applying  payments to penalty  and  interest  first then to
taxes.  The Company  therefore in July 2001  submitted an Offer in Compromise to
settle this issue by  offering to pay the Trust Fund  portion in lieu of penalty
and  interest.  This offer was pending at December 31, 2001.  These  liabilities
relate to unpaid  withholding  taxes that were assumed as part of the  Company's
LBO in 1997 and two additional tax periods in 1998 and 1999. 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 March 31, 2002, the Company  employed thirty five (35) persons.  None of
these  employees  are  represented  by a labor union for purposes of  collective
bargaining.  The  Company  considers  its  relations  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 statements.

     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.

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.


<PAGE>



The case is scheduled for trial in the second half of 2002.

     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.

     The Company was named in a workman's compensation lawsuit filed by a former
employee  during the time  covered by this  report.  The amount of the claim was
$20,000. The Company did not have workman's compensation coverage during a short
period of time in 2000. However, costs incurred by the former employee were paid
by the Arizona  Industrial  Commission.  The plaintiff withdrew his complaint in
March 2002.

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 March 31, 2001,  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>      <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.

3.(i).4  [1]      Certificate of Amendment of Certificate of Incorporation changing name to OneSource
                  Technologies, Inc. dated August 22, 1997.
</TABLE>



<PAGE>

<TABLE>
<S>      <C>      <C>
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, 1999.

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.

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.
</TABLE>



<PAGE>


<TABLE>
<S>      <C>      <C>
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.

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: May 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