UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-QSB

(Mark One)

[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

     For the quarterly period ended March 31, 2005

[ ]  Transition Report Pursuant to Section 13 or 15(d) of the Securities
     Exchange Act

     For the transition period from _____________ to _______________

     Commission File Number 0-30969

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


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

            15730 North 83rd Way, Suite 104 Scottsdale, Arizona 85260
            ---------------------------------------------------------
                    (Address of principal executive offices)

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


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 [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

The number of shares of the issuer's common equity outstanding as of May 1, 2005
was approximately 51,856,590 shares of common stock, par value $.001.

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








<PAGE>





                           INDEX TO FORM 10-QSB FILING
                       FOR THE PERIOD ENDED MARCH 31, 2005
                                TABLE OF CONTENTS

                                     PART I.
                              FINANCIAL INFORMATION


Page

Item 1.  Financial Statements .............................................    3

           Balance Sheet as of March 31, 2005 .............................    3
           Statements of Operations
                 for the Three-Month Periods Ended
                 March 31, 2005 and March 31, 2004 ........................    4
           Statements of Cash Flows
                    for the Three-Month Periods Ended
                    March 31, 2005 and March 31, 2004 .....................    5
              Notes to the Consolidated Financial Statements ..............    6

Item 2.  Management's Discussion and Analysis .............................   10

Item 3.  Controls and Procedures ..........................................   16

                                     PART II
                                OTHER INFORMATION

Item  6.  Exhibits.........................................................   16

SIGNATURES




                                       2
<PAGE>

<TABLE>
<CAPTION>


                         PART I - FINANCIAL INFORMATION


ITEM 1...FINANCIAL STATEMENTS

                      Unaudited Consolidated Balance Sheet
                                 March 31, 2005

--------------------------------------------------------------------------------
ASSETS

CURRENT ASSETS:

<S>                                                                  <C>
    Cash                                                             $     30,072
    Accounts receivable, net of reserve of $29,300                      2,324,910
    Inventories                                                         5,848,789
    Other current assets                                                  213,437
                                                                     ------------
           Total current assets                                         8,417,208
                                                                     ------------

PROPERTY AND EQUIPMENT, net of accumulated depreciation
         of $170,467                                                      384,637
GOODWILL                                                                1,521,828
INTANGIBLE ASSET, net of accumulated amortization of $3,500               136,500
DEFERRED INCOME TAXES                                                     140,187
                                                                     ------------

TOTAL ASSETS                                                         $ 10,600,360
                                                                     ============
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

    Deferred revenue                                                 $  2,736,850
    Accrued expenses and other liabilities                              1,322,457
    Accounts payable                                                    1,168,658
    Line of credit                                                      1,000,000
    Current portion of debt                                               806,312
                                                                     ------------
         Total current liabilities                                      7,034,277
                                                                     ------------

LONG TERM DEBT                                                          2,842,940

                                                                     ------------
TOTAL LIABILITIES                                                       9,877,217
                                                                     ------------
STOCKHOLDERS' EQUITY:
    Preferred Stock, $.001 par value, 5,000,000 shares authorized,
      none issued
    Common Stock, $.001 par value, 100,000,000 shares authorized,
    51,856,590 issued and outstanding at March 31, 2005                    51,857
    Paid in capital                                                     4,650,132
    Accumulated deficit                                                (3,978,846)
                                                                     ------------
                                                                          723,143
                                                                     ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $ 10,600,360
                                                                     ============
</TABLE>

         The accompanying notes are an integral part of this statement.



                                       3
<PAGE>

                 Unaudited Consolidated Statements of Operations
---------------------------------------------------------------------------

                                                 March 31,       March 31,
                                                   2005            2004
                                               ----------------------------

REVENUE, net                                   $  3,277,587    $    774,408

COST OF REVENUE                                   2,202,434         437,149
                                               ------------    ------------

                    GROSS PROFIT                  1,075,153         337,259

GENERAL AND ADMINISTRATIVE EXPENSES                 650,716         221,696
SELLING AND MARKETING EXPENSES                      287,964         119,460

                                               ------------    ------------
                    Operating income                136,473          (3,897)

OTHER INCOME (EXPENSE):
    Interest expense                                (73,517)        (23,466)
    Other income (expense)                           (1,665)         22,825
                                               ------------    ------------
                     Total other expense            (75,182)           (641)

                                               ------------    ------------
NET INCOME (LOSS)                              $     61,291    $     (4,538)
                                               ============    ============


NET INCOME PER SHARE -
                     Basic                     $         **    $         **
                     Diluted                   $         **    $         **

Weighted Average Shares Outstanding:

                    Basic                        51,253,830      38,937,112
                    Diluted                      51,253,830      38,937,112

          **Less than $0.01 per share



        The accompanying notes are an integral part of these statements.




                                       4

<PAGE>


<TABLE>
<CAPTION>


                 Unaudited Consolidated Statements of Cash Flows
--------------------------------------------------------------------------------------

                                                                March 31,   March 31,
                                                                  2005        2004
                                                              ----------------------
CASH FLOWS FROM OPERATING ACTIVITIES:

<S>                                                           <C>          <C>
     Net income (loss)                                        $  61,291    $  (4,538)
     Adjustments to reconcile net income (loss) to
        net cash (used) provided by operations -

        Gain on disposal of fixed assets                             --      (23,093)
        Depreciation and amortization                            33,270       10,789
        Stock issuances to consultants for services                  --       20,250

        Changes in assets and liabilities:
            Accounts receivable                                  50,848       (7,809)
            Inventory                                           347,566      (39,798)
            Other current assets                               (150,274)         750
            Other assets                                             --         (425)
            Accounts payable                                   (206,469)      70,726
            Accrued expenses and other liabilities              255,968       14,521
            Deferred revenue                                   (378,873)     (16,470)
                                                             ----------    ---------
          Net cash provided by operating activities              13,327       24,903
                                                             ----------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchases of property and equipment                         (4,352)     (39,713)
     Proceeds from disposal of equipment                             --       16,330
                                                             ----------    ---------

          Net cash provided by investing activities              (4,352)     (23,383)


CASH FLOWS FROM FINANCING ACTIVITIES:

      Proceeds from notes payable                                    --       39,182
      Principal payments on notes payable                      (201,334)     (21,569)
      Proceeds from sale of common shares                       150,000           --
                                                             ----------    ---------
           Net cash (used) provided by financing activities     (51,334)      17,613
                                                             ----------    ---------

INCREASE(DECREASE) IN CASH                                      (42,359)      19,133

CASH, at January 1,                                              72,431       91,907
                                                             ----------    ---------
CASH, at March 31,                                            $  30,072    $ 111,040
                                                              =========    =========
</TABLE>



        The accompanying notes are an integral part of these statements.


                                       5
<PAGE>




                          ONESOURCE TECHNOLOGIES, INC.

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR
                 THE THREE MONTHS ENDED MARCH 31, 2005 and 2004


1. BASIS OF PRESENTATION

The unaudited financial statements presented herein have been prepared by the
Company without audit, pursuant to 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 related notes
thereto as of December 31, 2004 and for the year then ended included in the
Company's annual report on Form 10-KSB for the year ended December 31, 2004. In
the opinion of management, these unaudited financial statements reflect all
adjustments that 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.

The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities at the date of the
financial statements and the reported amount of revenues and expenses during the
reporting period. Certain estimates and assumptions have been used by management
in conjunction with recognizing revenues, establishing allowances for doubtful
accounts, inventory, goodwill, and evaluating the recoverability of deferred tax
assets. Actual result could differ from these estimates.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash: Cash includes all short-term, highly liquid investments that are readily
convertible to known amounts of cash and have original maturities of three
months or less.

Inventories: Inventories consist primarily of used equipment and new and used
parts and supplies. Inventories are stated at the lower of cost (specific
identification) or market.

Property and equipment: Property and equipment is recorded at cost and
depreciated on a straight-line basis over the estimated useful lives of the
assets ranging from three to ten years.

Goodwill: Goodwill reflects the cost in excess of the fair values assigned to
the underlying net assets of FFCS as of its acquisition date. The Company
adopted Statement of Financial Accounting Standard (SFAS) No. 142, Goodwill and
Other Intangible Assets, effective January 1, 2002. As a result, the Company
discontinued amortization of goodwill, and instead annually evaluates the
carrying value of goodwill for impairment, in accordance with the provisions of
SFAS No. 142.

Revenue recognition: The Company recognizes revenue on service contracts pro
rata over the term of the contract or when the service is performed pursuant to
terms of agreements with customers. Sales revenues of parts and equipment are
recognized when they are shipped or installed. Deferred revenue is recorded for
advanced billings and cash receipts prior to revenue recognition under terms of
certain service contracts.

Income taxes: The Company provides for income taxes in accordance with the
provisions of SFAS No. 109, Accounting For Income Taxes, which, among other
things, requires that the recognition of deferred income taxes be measured by
the provisions of enacted tax laws in effect at the date of the financial
statements.


                                       6
<PAGE>



Advertising: The Company expenses advertising costs as incurred. Advertising
expenses for the three months ended March 31, 2005 and 2004 were $1,050 and
$5,474, respectively.

Financial instruments: Financial instruments consist primarily of accounts
receivable, accounts payable, accrued expenses, and short-term debt. The
carrying amount of accounts receivable, accounts payable, accrued expenses, and
short-term debt approximate fair value due to the short-term maturities of those
instruments. Certain non-interest bearing notes payable have been discounted at
what the Company considers its fair borrowing rate and the Company believes that
the carrying value approximates fair value.

Net income per share: Net income per share is calculated using the weighted
average number of shares of common stock outstanding during the period. Diluted
net income per share is computed giving effect to the impact of outstanding
stock options.

Use of estimates: The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.

Stock-based compensation: SFAS No. 123, Accounting for Stock-Based Compensation
(SFAS 123), established accounting and disclosure requirements using a
fair-value based method of accounting for stock-based employee compensation. In
accordance with SFAS 123, the Company has elected to continue accounting for
stock-based compensation using the intrinsic value method prescribed by
Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to
Employees".

Impairment of long-lived assets: The Company reviews long-lived assets and
certain identifiable intangibles for impairment whenever events or changes in
circumstances indicate the carrying amount of an asset may not be recoverable.
Recoverability of assets to be held and used is measured by comparison of the
carrying amount of an asset to future undiscounted cash flows expected to be
generated by the asset. If such assets are considered to be impaired, the
impairment to be recognized is measured by the amount by which the carrying
amount of the assets exceeds the fair value of the assets. Assets to be disposed
of are reported at the lower of the carrying amount or fair value less costs to
sell.

Recently Issued Accounting Pronouncements: In December 2004, the Financial
Accounting Standards Board ("FASB") issued SFAS No. 123R, "Share-Based Payment"
("SFAS 123R"). Under this new standard, companies will no longer be able to
account for share-based compensation transactions using the intrinsic method in
accordance with APB 25. Instead, companies will be required to account for such
transactions using a fair-value method and to recognize the expense over the
service period. This new standard also changes the way in which companies
account for forfeitures of share-based compensation instruments. Originally,
SFAS 123R was to be effective for periods beginning after June 15, 2005 and
would allow for several alternative transition methods. However, the SEC has
extended the effectiveness of SFAS 123R for one year. As a result, the Company
is still assessing when it will adopt the provisions of SFAS 123R.



                                       7

<PAGE>






3. BUSINESS SEGMENTS

The Company's revenues are derived from two segments: 1) renewable contracts of
equipment maintenance services, and 2) equipment and supplies distribution.
Beginning in 2005, assets and liabilities are not being tracked by division as
amounts pertaining to the supplies division are negligible. The following table
sets forth the operating contributions of each for the three months ended March
31, 2005 and March 31, 2004.



                  Maintenance      Supplies     Eliminations          Total
                -------------------------------------------------------------
2005

Revenues          $ 2,893,190    $  384,397                      $ 3,277,587
Net income (loss)      65,137        (3,846)                          61,291
Depreciation and
  amortization         N/A            N/A                             33,270
Interest               64,895         8,622                           73,517
Property & equipment
  purchases            N/A            N/A                              4,352
Total Assets      $    N/A        $   N/A          N/A           $10,600,360


2004

Revenues          $   608,159     $ 166,249                      $   774,408
Net loss              (17,005)       12,467                           (4,538)
Depreciation and
  amortization          8,599         2,190                           10,789
Interest               23,501            12                           23,513
Property & equipment
  purchases            39,713             0                           39,713
Total Assets      $ 1,451,147     $ 118,968    ($ 728,511)       $   890,531



4. RELATED PARTY TRANSACTIONS

Partners Resource Management, LLC

Effective January 1, 2005 the Company entered into a new Professional Services
Agreement with Partners Resource Management, LLC (" PRM"). This agreement
replaced the previous agreement dated October 1, 2004. Under the new agreement,
PRM provided the Company with services in the following roles:

o    Business Development
o    Sales support, contract administration, and administrative support
o    IT support

Under the new agreement, the Company will pay PRM a monthly retainer of $15,000,
plus PRM's out-of-pocket expenses that the Company approved in advance. This
agreement terminates on June 30, 2005.





                                       8


<PAGE>




Robert H. Thomason

In November 2004, the Company borrowed $100,000 from Robert H. Thomason, former
owner of FFCS and a current director, and executed a promissory note in
connection with that transaction. That promissory note pays interest at an
annual rate of 10% and the entire principal and interest matured on January 13,
2005. Mr. Thomason agreed to extend this promissory note and the Company paid
$50,000 in principal on the note to Mr. Thomason for his agreement to further
extend the maturity of the note to May 15, 2005. In April 2005 the Company
satisfied an additional $42,500 on the note. The Company paid the balance of
this note on May 2, 2005.


5. INCOME (LOSS) PER SHARE

The following presents the computation of basic and diluted earnings per share
from continuing operations:

<TABLE>
<CAPTION>


                                            Three months ended                        Three months ended
                                              March 31, 2005                            March 31, 2004
                                 Net                         Per                Net                       Per
                                 Loss         Shares         Share              Loss       Shares        Share
                               ---------------------------------------------------------------------------------

<S>                              <C>                                          <C>
Net income (loss)                $61,291                                      $ (4,538)
 from continuing
 operations                     =========                                     ==========

Basic income (loss)
  per share
Income (loss) available
  to common
  stockholders                   $61,291       51,253,830      $ **           $  (4,538)    38,937,112    $ **
                                ========                                      ===========
Effect of dilutive
 securities                        N/A           N/A                              N/A         N/A
Diluted income
 (loss) per share                $61,291       51,253,830      $ **           $  (4,538)    38,937,112    $ **
                               ==========                                       =========
</TABLE>
** Less than $0.01 per share

Stock options to purchase 0 and 2,065,000 shares of common stock were
outstanding at March 31, 2005 and 2004, respectively and warrants to purchase
130,719 and -0- shares of common stock were outstanding at March 31, 2005 and
2004, respectively.. These securities were excluded from the computation of
diluted earnings per share for the three months ended March 31, 2005 and 2004
because the effect of their inclusion would be anti-dilutive.


6. SUBSEQUENT EVENT

On May 2, 2005, the Company issued and sold 2,500,000 shares of the Company's
common stock, par value $0.001 per share ("Common Stock"), and a warrant to
purchase 1,000,000 shares of Common Stock (the "Warrant") to Laurence M. Luke
Trustee u/t/d March 22, 1996, as amended, and Laurence M. Luke, as Trustee under
certain retirement plans (together, the "Purchaser"), pursuant to a Stock and
Warrant Purchase Agreement, dated as of May 2, 2005 (the "Purchase Agreement"),
and a warrant certificate (the "Warrant Certificate" or the "Warrant").

Purchase Agreement

Pursuant to the Purchase Agreement, the Company issued and sold to the Purchaser
2,500,000 shares of Common Stock for a price of $0.20 per share or an aggregate
price of $500,000. In addition, the Company issued and sold to the Purchaser for
the sum of $1,000 the Warrant to purchase a total of 1,000,000 shares of Common
Stock (see "Warrant" below).

                                       9
<PAGE>



The Purchase Agreement provides limited preemptive rights to the Purchaser,
effective until December 31, 2007, and piggyback registration rights with
respect to the shares of Common Stock issued or issuable to the Purchaser
pursuant to the Purchase Agreement and the Warrant.

Warrant
As described above, pursuant to the Purchase Agreement, the Company has issued
the Warrant to purchase a total of 1,000,000 shares of Common Stock. The Warrant
may be exercised, in full or in part, at any time prior to December 31, 2008, at
an exercise price of $0.23 per share of underlying Common Stock. The Warrant and
the underlying Common Stock may not be transferred by the holder thereof, except
pursuant to the Securities Act of 1933, as amended.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS

For a description of our significant accounting policies and an understanding of
the significant factors that influenced our performance during the period ended
March 31, 2005, this "Management's Discussion and Analysis of Operations" should
be read in conjunction with the Financial Statements, including the related
notes, appearing in Item 1 of this Quarterly Report. The preparation of this
Quarterly Report on Form 10-QSB requires us to make estimates and assumptions
that affect the reported amount of assets and liabilities, disclosure of
contingent assets and liabilities at the date of our financial statements, and
the reported amounts of revenue and expenses during the reporting period. There
can be no assurance that actual results reported in the future will not differ
from those estimates or that revisions of these estimates may not become
necessary in the future.

Forward-Looking Statements

This portion of this Quarterly Report on Form 10-QSB, includes statements that
constitute "forward-looking statements." These forward-looking statements are
often characterized by the terms "may," "believes," "projects," "expects," or
"anticipates," and do not reflect historical facts. Specific forward-looking
statements contained in this portion of the Quarterly Report include, but are
not limited to the Company's (i) expectation that gross margins will improve as
incremental labor costs will be added at a lower rate than the rate of revenue
growth in existing markets (ii) expectation that our business will grow in the
near future as we integrate the operations of FFCS, and expand our service and
product offerings, and acquire other businesses (iii) belief that the
acquisition of sales resources from FFCS will allow us to penetrate existing
markets and current customers as a method of increasing overall revenues and
profitability.

Forward-looking statements involve risks, uncertainties and other factors, which
may cause our actual results, performance or achievements to be materially
different from those expressed or implied by such forward-looking statements.
Factors and risks that could affect our results and achievements and cause them
to materially differ from those contained in the forward-looking statements
include those identified in our Annual Report on Form 10-KSB for the period
ended December 31, 2004 in the section titled "Risk Factors," as well as other
factors that we are currently unable to identify or quantify, but that may exist
in the future.

In addition, the foregoing factors may affect generally our business, results of
operations and financial position. Forward-looking statements speak only as of
the date the statement was made. We do not undertake and specifically decline
any obligation to update any forward-looking statements.


                                       10
<PAGE>





Summary of Operations

Revenues are significantly higher in the three months ended March 31, 2005
compared to the same period in fiscal 2004, primarily due to the merger with
FFCS in November 2004. Net income for the first quarter of 2005 is $61,000
compared to a loss of ($4,500) in 2004. The following table summarizes the
comparative results:


-----------------------------------------------------------------------------
                                              Three Months ended March 31,
Summary of Operations                          2005                  2004
-----------------------------------------------------------------------------
   Revenues                                 $ 3,277,587          $   774,408

   Cost of Revenue                            2,202,434              437,149

   Gross Profit                               1,075,153              337,259

   Selling General and Administrative Costs     938,680              341,157

   Operating Income (Loss)                      136,473               (3,898)

   Other (Expense)                              (75,182)                (640)
-----------------------------------------------------------------------------
   Net Income (Loss)                        $    61,291          $    (4,538)
-----------------------------------------------------------------------------

While revenues to date have significantly increased in the three months ended
March 31, 2005 as compared to 2004, consolidated cost of revenues has also seen
a similar increase in 2005 versus 2004. Gross margins have decreased for the
first three months (32.8%) compared to the same period in 2004 (43.5%). This is
largely due to the widespread location of our customer base. We currently
maintain customer relationships in over 40 states while in 2004 we were
concentrated in only four states. As we grow and add new revenues into existing
markets, we expect to see our gross margins improve as incremental labor costs
will be added at a lower rate than the rate of revenue growth in those markets.

Selling, General and Administrative expenses have increased by approximately
$600,000 in the three months ended March 31, 2005 compared to the same period in
2004 due to the merger with First Financial Computer Services, Inc., or FFCS,
and the absorption of various overhead costs. However, as we expected, those
costs as a percentage of revenues have decreased from 44% of revenues in 2004 to
less than 29% in 2005. As we continue to add new revenues, we look for this
trend to continue as the needed infrastructure is already in place.

Revenues

Revenues have significantly increased for the three month period ended March 31,
2005 compared to the same period in 2004.


-------------------------------------------------------------------------
                                            Three Months ended March 31,
Revenues                                     2005                 2004
-------------------------------------------------------------------------
   Maintenance                       $    2,893,190       $    608,159

   Equipment and supplies                   384,397            166,249
-------------------------------------------------------------------------
       Total                         $    3,277,587       $    774,408
-------------------------------------------------------------------------

                                       11
<PAGE>



As reported in the above table, maintenance division revenues for the
three-month period ended March 31, 2005 increased 76% compared to the same
period in 2004. This is the result of the completion of the merger with FFCS in
November 2004. The composition of revenues has also favorably shifted such that
over 88% of current revenues are derived from annual maintenance contracts while
only 79% were related to contract maintenance in 2004.

The equipment and supplies division revenues have more than doubled in 2005
compared to 2004. We look to continue to increase these revenues by making a
concentrated effort to provide equipment and supplies to our much expanded
client base.

Gross Margins

Gross margins for the three months ended March 31, 2005 have decreased to 32.6%
compared to 44% for the three months ended March 31, 2004. Now that the
integration of FFCS has been largely completed, we expect to increase gross
margins in the maintenance division due to the Company being able to add
incremental revenue in existing markets and with existing customers while
incremental costs, especially labor costs, are added at a significantly lower
rate.

Selling, General and Administrative Costs

General and administrative costs have increased by approximately $430,000 for
the three months ended March 31, 2005 compared to the same period in the prior
year. Most of this increase is due to the absorption of overhead costs in
conjunction with the merger of FFCS in November 2004. The following table
summarizes the significant general and administrative cost categories for the
three months ended March 31, 2005 and 2004:



-----------------------------------------------------------------------------
                                                 Three Months ended March 31,
General and Administrative                         2005                2004
-----------------------------------------------------------------------------
   Contracted professional services          $    62,750        $     84,232

   Salaries, Wages and Benefits                  246,640              21,982

   Facilities                                     77,467              36,713

   Legal and Professional                        139,864              41,298

   Telecommunication Costs                        30,292              14,925

   Travel and Entertainment                       32,348               4,289

   Other                                          61,355              18,257

-----------------------------------------------------------------------------
      Total                                  $   650,716          $  221,696
-----------------------------------------------------------------------------

The largest changes in general and administrative costs in 2005 compared to 2004
have occurred in salaries, wages and benefits along with legal and professional
costs. Salaries, wages and benefits have increased approximately $225,000 while
contracted professional services have decreased by over $20,000. Some of the
costs contained in contracted professional services in 2004 related to fees paid
to Partners Resource Management, an entity that provided us with executive level
management services. The personnel previously provided by Partners Resource
Management are now employed by the Company and the related costs are reflected
in salaries, wages and benefits. Part of the increase in salaries, wages and
benefits also relates to the costs associated with personnel acquired in the
merger with FFCS in November 2004.

                                       12
<PAGE>



Much of the costs in legal and professional in 2005 relate to the increased
legal, financial and audit expenses incurred because of the merger of FFCS.

Facilities expense has increased approximately $40,000 in 2005 due largely to
the office and warehouse space in Little Rock, AR acquired in the merger with
FFCS.

Other general and administrative costs have remained relatively steady in the
quarter ended March 31, 2005 compared to the same period in 2004.

The following table summarizes the significant selling and marketing cost
categories for the three months ended March 31, 2005 and 2004, respectively:


---------------------------------------------------------------------------
                                              Three Months ended March 31,
Selling and Marketing                            2005              2004
---------------------------------------------------------------------------
   Contracted professional services          $    15,000      $   42,184

   Salaries, Commissions and Benefits            264,259          64,380

   Advertising and Promotion                       1,050           5,474

   Travel and Entertainment                        7,655           7,423
--------------------------------------------------------------------------
      Total                                   $  287,964       $ 119,461
--------------------------------------------------------------------------

The increase in selling and marketing costs is largely due to the acquisition of
FFCS and its systemwide sales force. We believe the acquisition of these sales
resources will allow us to penetrate existing markets and current customers as a
method of increasing overall revenues.

The following table summarizes other income (expense) for the three months ended
March 31, 2005 and 2004:

Interest and Other Income (Expense)


-----------------------------------------------------------------------------
                                                Three Months ended March 31,
Other Income (Expense)                            2005              2004
-----------------------------------------------------------------------------
   Interest                                $    (73,517)        $   (23,466)

   Other                                         (1,665)             22,825
-----------------------------------------------------------------------------
      Total                                $    (75,182)        $      (641)
-----------------------------------------------------------------------------

Interest cost has increased over $50,000 in 2005 compared to 2004 as a result of
the Company incurring approximately $3.7 million of debt in November 2004 in
conjunction with the merger of FFCS.

Other income decreased by over $24,000 in the quarter ended March 31, 2005
compared to the same period in 2004. This was due to a one-time occurrence in
2004 in which insurance funds were received relating to various equipment
damaged in a flood in our former office building.

                                       13
<PAGE>




Liquidity and Capital Resources

The Company closely monitors cash requirements and is subject to variances in
its cash position due to some uncertainties as to the timing of collections. At
March 31, 2005, the Company had approximately $250,000 of availability on a
revolving credit line with Comerica Bank, described below, which can be drawn
upon to aid in situations when cash collections may be delayed.

To improve the overall capital resources of the Company, on May 2, 2005, the
Company issued and sold 2,500,000 shares of the Company's common stock, par
value $0.001 per share at a price of $0.20 per share or $500,000 in the
aggregate and a warrant to purchase 1,000,000 shares of common stock for a total
price of $1,000 to Laurence M. Luke Trustee u/t/d March 22, 1996, as amended,
and Laurence M. Luke, as Trustee under certain retirement plans pursuant to a
Stock and Warrant Purchase Agreement, dated as of May 2, 2005 and a warrant
certificate. See Note 6 of the Financial Statements in Item 1 for a further
description of this transaction.

The following table sets forth selected financial condition information as of
March 31, 2005 compared to March 31, 2004:


-----------------------------------------------------------------------------
                                                Three Months ended March 31,
Balance Sheet                                     2005              2004
-----------------------------------------------------------------------------
   Working Capital                           $  1,382,931       $   (506,395)

   Total Assets                                10,600,360            890,531

   Debt Obligations                             4,649,252          1,107,628

   Shareholders' Equity (Deficit)            $    723,143       $   (868,626)
-----------------------------------------------------------------------------


Our debt obligations increased by $3,540,000 at March 31, 2005 versus March 31,
2004 largely as a result of the merger with FFCS. In November 2004, we borrowed
approximately $2,700,000 million under our new credit facility with Comerica
Bank and issued $1,000,000 of promissory notes to the former stockholders of
FFCS, both of which are described below.

Comerica Credit Agreement

Effective November 9, 2004, we entered into a Credit Agreement with Comerica
Bank, as lender. The Credit Agreement provides for

o    a revolving credit facility for up to $1,500,000, which we can use to pay
     debt service and for working capital ("Facility A"), and

o    a term loan of $1,750,000, a portion of which we used to extinguish certain
     existing debt and the remainder of which we can use to pay debt service
     ("Facility B").

Amounts borrowed under the Credit Agreement are secured by all of our tangible
and intangible assets. On November 9, 2004, we borrowed $500,000 under Facility
A and $1,750,000 under Facility B. We paid origination fees totaling $25,000 in
connection with the Credit Agreement.


                                       14

<PAGE>



Advances under Facility A will be limited to the lesser of (a) $1,500,000 or (b)
the sum of 80% of eligible domestic trade accounts receivable, plus 25% of
eligible domestic inventory (as those terms are defined in the Credit
Agreement), less a collateral reserve of $850,000. Amounts borrowed under
Facility A bear interest at the prime rate, plus 1.0%, payable monthly, and
mature on November 9, 2006. Amounts borrowed under Facility B bear interest at
the prime rate, plus 2.0%, payable monthly, and will be paid in equal monthly
payments of principal and interest through maturity on November 9, 2008. In
addition to these monthly payments, beginning March 31, 2005, we were required
to begin paying 50% of our excess cash flow (as defined in the Credit Agreement)
for each calendar quarter to reduce the outstanding principal balance of
Facility B, which we have begun to do. We may prepay amounts borrowed under the
Credit Agreement without premium or penalty. At March 31, 2005, we had
outstanding borrowings of $ 1,000,000 under Facility A and $ 1,621,668 under
Facility B.

The Credit Agreement includes various affirmative and negative covenants,
including certain financial covenants and ratios, with which we must comply.
Certain of these covenants prohibit us from taking certain corporate actions
without the written consent of the Comerica Bank.

Thomason Promissory Notes

As a portion of the consideration for the merger with FFCS, we issued unsecured
five-year promissory notes to each of Robert H. Thomason, Mary H. Thomason,
Randy H. Thomason, and Jon M. Thomason, the former stockholders of FFCS. The
aggregate principal amount of these notes totals $1,000,000. The notes bear
annual interest at the rate of 6.0%. The notes require annual payments of
principal in the aggregate amount of $200,000, plus accrued but unpaid interest,
on November 9 of each year through November 9, 2009. The Thomason notes are
subordinated and subject in right of payment to all "senior indebtedness" of the
Company, as defined in the notes, including the Credit Agreement with Comerica
Bank. Until these notes are paid, we are required to obtain Mr. Thomason's
consent on significant financial related transactions, mergers and acquisitions,
issuances of stock, capital expenditures in excess of $5,000 and the sale of
property or other assets.

In November 2004, we borrowed $100,000 from Robert H. Thomason and executed a
promissory note in connection with that transaction. That promissory note pays
interest at an annual rate of 10% and the entire principal and interest matured
on January 13, 2005. Mr. Thomason agreed to extend this promissory note and we
paid $50,000 in principal on the note to Mr. Thomason for his agreement to
further extend the maturity of the note to May 15, 2005. In April 2005 we
satisfied an additional $42,500 on the note. The remaining balance on the note
of $7,500 was repaid on May 2, 2005.

Subordination and Intercreditor Agreements

Pursuant to the terms of the Credit Agreement, each of Robert H. Thomason, Mary
H. Thomason, Randy H. Thomason, and Jon M. Thomason entered into a Subordination
and Intercreditor Agreement with Comerica Bank. We consented to the terms of
each of these agreements. Under these agreements, each of the Thomasons has
agreed that payment of their respective promissory note is subordinated to our
obligations under the Credit Agreement, provided that we can make the annual
payments of principal and interest under the Thomason promissory notes and so
long as we are not in default under the Credit Agreement. The Subordination and
Intercreditor Agreements also include standstill provisions and provisions
regarding blockage on default, cross-default with the senior debt and
cross-acceleration with the senior debt.

Other Obligations

The Company maintains on its books a purported obligation of $625,000 due to a
single individual. This individual was found guilty of conducting fraudulent
activities by the Arizona Corporation Commission in April 2003. In connection
with that charge, the State of Arizona became the assignee of any rights to
proceeds from the use of funds solicited by this individual. Management believes
that due to these circumstances, it will not be obligated to repay these amounts
and the individual will be without recourse to collect. With the concurrence of
our independent public accounting firm, we ceased accruing interest on this
obligation as of October 1, 2003.

                                       15
<PAGE>



ITEM 3.  DISCLOSURE CONTROLS AND PROCEDURES

Disclosure controls and procedures are designed with an objective of ensuring
that information required to be disclosed in our periodic reports filed with the
Securities and Exchange Commission, such as this Quarterly Report on Form
10-QSB, is recorded, processed, summarized and reported within the time periods
specified by the Securities and Exchange Commission. Disclosure controls are
also designed with an objective of ensuring that such information is accumulated
and communicated to our management, including our chief executive officer and
chief financial officer, in order to allow timely consideration regarding
required disclosures.

The evaluation of our disclosure controls by our principal executive officer and
principal financial officer included a review of the controls' objectives and
design, the operation of the controls, and the effect of the controls on the
information presented in this Quarterly Report. Our management, including our
chief executive officer and chief financial officer, does not expect that
disclosure controls can or will prevent or detect all errors and all fraud, if
any. A control system, no matter how well designed and operated, can provide
only reasonable, not absolute, assurance that the objectives of the control
system are met. Also, projections of any evaluation of the disclosure controls
and procedures to future periods are subject to the risk that the disclosure
controls and procedures may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may
deteriorate.

Based on their review and evaluation as of the end of the period covered by this
Form 10-QSB, and subject to the inherent limitations all as described above, our
principal executive officer and principal financial officer have concluded that
our disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934) are effective as of the end
of the period covered by this report. They are not aware of any significant
changes in our disclosure controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses. During the period covered by this Form 10-QSB, there have not been
any changes in our internal control over financial reporting that have
materially affected, or that are reasonably likely to materially affect, our
internal control over financial reporting.


                           PART II - OTHER INFORMATION

ITEM 6.  EXHIBITS

The following exhibits are either attached hereto or incorporated herein by
reference as indicated:


Exhibit Number       Description
--------------       -----------

10.1                 Subscription Agreement Shares of Common Stock

10.2                 Warrant for the Purchase of Shares of Common Stock

31                   Certifications pursuant to SEC Release No. 33-8238, as
                     adopted pursuant to Section 302 of the Sarbanes-Oxley
                     Act of 2002

32                   Certifications pursuant to 18 U.S.C. Section 1350, as
                     adopted pursuant to Section 906 of the Sarbanes-Oxley
                     Act of 2002


                                       16
<PAGE>





                                   SIGNATURES

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



ONESOURCE TECHNOLOGIES, INC.

Dated:  May 16, 2005                                 /s/ Leonard J. Ksobiech
                                                     -----------------------
                                                     Leonard J. Ksobiech
                                                     Chief Financial Officer






                                       17
<PAGE>



                                  EXHIBIT INDEX


Exhibit
Number          Description
------          -----------

10.1            Subscription Agreement Shares of Common Stock

10.2            Warrant for the Purchase of Shares of Common Stock

31              Certifications pursuant to SEC Release No. 33-8238, as adopted
                pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32              Certifications pursuant to 18 U.S.C. Section 1350, as adopted
                pursuant to Section 906 of the Sarbanes-Oxley Act of 2002







                                       18

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