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

                                   Form 10-QSB

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

For the quarter ended: June 30, 2001
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 June 30, 2001,  there were  19,951,500  shares of voting stock of the
registrant issued and outstanding.




<PAGE>



Part I - FINANCIAL INFORMATION

Item 1. Financial Statements




ONESOURCE TECHNOLOGIES, INC.



TABLE OF CONTENTS

                                                                        PAGE


CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2001                           F-1

CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS
ENDED JUNE 30, 2001  AND 2000                                            F-2

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THREE MONTHS ENDED
JUNE 30, 2001 AND 2000                                                   F-3

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                               F-5















<PAGE>


<TABLE>
<CAPTION>
ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2001
------------------------------------------------------------------------------------------------
                                                                                     (Unaudited)
<S>                                                                             <C>
ASSETS
CURRENT ASSETS:
Cash                                                                                     142,505
Accounts receivable                                                                      211,396
Inventories                                                                              341,461
Other current assets                                                                      11,834
 Total current assets                                                                    707,196

PROPERTY AND EQUIPMENT, net of accumulated depreciation $117,080                         241,601
GOODWILL, net of accumulated amortization of $27,652                                     244,230
DEFERRED INCOME TAXES                                                                    140,187
OTHER ASSETS                                                                              21,119

TOTAL ASSETS                                                                    $      1,354,333
                                                                                ================

LIABILITIES AND STOCKHOLDERS"  DEFICIT
CURRENT LIABILITIES:
   Accounts payable                                                             $        263,145
   Accrued expenses and other liabilities                                                263,360
   Deferred revenue                                                                      138,376
   Bank lines of credit                                                                  100,913
   Obligation for common stock to be issued                                              439,215
   Current portion capital leases                                                          1,719
   Current portion of long-term debt                                                     439,886
Total current liabilities                                                              1,646,615

CAPITAL LEASES -- LONG TERM PORTION                                                       11,377
NOTES PAYABLE - LONG-TERM PORTION                                                        293,389

Total liabilities                                                               $      1,951,381
                                                                                ----------------

STOCKHOLDERS' DEFICIT
Preferred Stock, $.001 par value, 1,000,000 shares authorized, none issued
    Common Stock, $.001 par value, 20,000,000 shares authorized, 18,227,888     $         18,229
    issued at June 30, 2001and 3,376,403 subscribed but not issued
    at June 30, 2001
Paid in capital                                                                        2,272,435
Stock subscription                                                                     (806,250)
Accumulated deficit                                                                  (2,081,462)
                                                                                       (597,048)
                                                                                ----------------

 TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                    $      1,354,333
                                                                                ================
</TABLE>

       The accompanying notes are an integral part of this balance sheet.



                                       F-1

<PAGE>

<TABLE>
<CAPTION>
ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30
                                                                              Restated                           Restated
                                                           (Unaudited)      (Unaudited)       (Unaudited)       (Unaudited)
                                                             2nd QTR          2nd QTR             YTD               YTD
                                                              2001              2000              2001             2000
                                                         ---------------  ----------------  ----------------  ---------------
<S>                                                      <C>              <C>               <C>               <C>
Revenue, net                                               $     680,217   $       776,720    $    1,342,946   $    1,558,348

Cost of Revenue                                                  370,456           488,682           792,093          934,495
                                                         ---------------  ----------------  ----------------  ---------------
   Gross Profit                                                  309,761           288,038           550,853          623,853

General and Administrative Expenses                              243,958           302,025           643,677          682,165
Selling and Marketing Expenses                                    41,025            47,910            94,083          101,758
   Operating Income (Loss)                                        24,778          (61,897)         (186,907)        (160,070)
                                                         ---------------  ----------------  ----------------  ---------------

Other Income / (Expense)
  Interest expense                                              (85,582)          (11,135)         (158,520)         (18,724)


  Other income / (expense)                                      (24,143)           (9,242)          (27,913)          (6,309)
                                                         ---------------  ----------------  ----------------  ---------------
   Total other expense                                         (109,725)          (20,377)         (186,433)         (25,033)

Loss Before Extraordinary Item and Loss
  From Discontinued Operations                                  (84,947)          (82,274)         (373,340)        (185,103)

Extraordinary Item                                                            -     63,375                       -     63,375

Net Loss from Continuing Operations                       $     (84,947)  $       (18,899)   $     (373,340)  $     (121,728)
                                                         ---------------  ----------------  ----------------  ---------------

Discontinued Operations -
  Loss from operations of Net Express, Inc.                        (36,466)         (34,975)          (64,153)         (60,027)
  Estimated gain from disposal of net assets of Net
   Express, Inc.                                                   24,448                     -       24,448                      -
   Total loss from discontinued operations                       (12,018)          (34,975)         (39,705)           (60,027)
                                                         ---------------  ----------------  ----------------  ---------------
NET LOSS                                                 $       (96,965) $       (53,874)   $     (413,045)  $     (181,755)
                                                         ===============  ================  ================  ===============

Basic, before extraordinary item and loss from
   discontinued operations                                          $ *               $ *            ($0.02)          ($0.01)
                                                                    ====              ====                            =======
   Extraordinary gain                                                                 $ *                                $ *
                                                                                      ====                               ===
   Loss from discontinued operations                                $ *                                 $ *
                                                                    ====                                ===
   Estimated gain on disposal of discontinued net assets            $ *                                 $ *
                                                                    ====                                ===
   Net loss                                                         $ *               $ *            ($0.02)          ($0.01)
                                                                    ====              ====           =======          =======

Diluted, before extraordinary item and loss from
   discontinued operations                                          $ *                $ *           ($0.02)          ($0.01)
                                                                    ====                                              =======
   Extraordinary gain                                                                  $ *                               $ *
                                                                       =                                                 ===
   Loss from discontinued operations                                $ *                                 $ *
                                                                    ====                                ====
   Estimated gain on disposal of discontinued net assets            $ *                                 $ *
                                                                    ====                                ===
   Net loss                                                         $ *               $ *            ($0.02)          ($0.01)
                                                                    ====              ====           =======          =======

Weighted Average Shares Outstanding:
   Basic                                                      18,134,245        15,917,738        18,134,245       15,772,402
   Diluted                                                    18,134,245        15,917,738        18,134,245       15,772,402

* Less than $0.01 per share.
</TABLE>

  The accompanying notes are an integral part of this statement of operations.

                                       F-2


<PAGE>


<TABLE>
<CAPTION>
ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
THE SIX MONTHS ENDED JUNE 30

                                                                                                         Restated
                                                                                   (Unaudited)         (Unaudited)
                                                                                      2001                 2000
                                                                                      ----                 ----
<S>                                                                             <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
      Net loss                                                                        ($413,035)          ($181,755)
      Depreciation and goodwill amortization                                              39,598              31,746
      Gain on retirement of debt                                                                            (63,375)
      Loss from discontinued operations                                                   39,705              60,027
      Amortization of deferred financing cost                                             99,979
      Stock issued in lieu of cash for services                                           37,228
      Non cash acrued expenses and other liabilities                                      62,090
      Changes in assets and liabilities
            Accounts receivable                                                           73,365              32,552
            Inventory                                                                   (68,206)            (30,910)
            Other current assets                                                           4,166           (154,844)
            Other assets                                                                (14,322)
            Accounts payable                                                            (82,745)               8,050
            Accrued expenses and other liabilities                                       (8,077)               (254)
            Deferred revenue                                                             (5,715)              33,375
              Net cash provided (used) by continuing operating activities              (235,969)           (265,388)
                                                                                ----------------      --------------
              Net cash provided (used) by discontinued operating activities             (77,260)            (60,027)
NET CASH Provided (used) by Operating Activities                                       (313,229)           (325,415)
                                                                                ----------------      --------------

CASH FLOWS FROM INVESTING ACTIVITIES:
      Purchases of property and equipment                                               (18,218)           (164,067)

      Net cash provided (used) by investing activities                                  (18,218)           (164,067)
                                                                                ----------------      --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from borrowings                                                              355,409
   Payments on notes payable and capital leases                                         (57,898)           (179,380)
   Net receipts on line of credit                                                                             22,066
   Funds received for stock                                                                                  220,000
   subscriptions
   Obligation for common stock to be issued                                                                  353,930
              Net cash provided (used) by financing activities                           297,511             416,616
                                                                                ----------------      --------------

INCREASE (DECREASE) IN CASH                                                             (33,936)            (72,866)
CASH, January 1                                                                          176,441              37,692
CASH, June 30                                                                           $142,505           ($35,174)
                                                                                ================      ==============
</TABLE>


   The accompanying notes are an integral part of this statement of cash flow.



                                       F-3

<PAGE>




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

                                                                     (Unaudited)         (Unaudited)
SUPPLEMENTAL CASH FLOW INFORMATION:                                     2000                 2000
                                                                        ----                 ----
<S>                                                                   <C>                 <C>
                                                                        $9,582              $5,578

SUPPLEMENTAL SCHEDULE OF NONCASH
INVESTING AND FINANCING ACTIVITIES:
   Common stock subscribed in exchange for notes receivable                               $278,438
   Common stock issued in exchange for note payable                                        $30,000
</TABLE>


   The accompanying notes are an integral part of this statement of cash flow.





                                       F-4

<PAGE>


ONESOURCE TECHNOLOGIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE SIX MONTHS ENDED JUNE 30, 2001 and 2000

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, 2000.
In the opinion of management,  these unaudited financial  statements reflect all
adjustments  which are necessary to present  fairly the  financial  position and
results  ofoperations 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.   EXTINGUISHMENT OF DEBT

The Company and a group of investors  executed an agreement on March 4, 2000 the
Company and a group of investors  executed an agreement  with PF Holdings,  Inc.
("PF")  to  purchase  the  promissory  note  held  by PF  with a face  value  of
$285,000.00  and accrued  interest of $36,  972 for $150,000 in cash and 175,000
shares of the  Company's  common  stock with an  estimated  fair market value on
March  4,  2000 of  $93,438.  The  investors  purchased  643,944  shares  of the
Company's  common stock for  $150,000.  The proceeds in turn,  together with the
175,000 shares,  were used in the settlement of the debt. The carrying amount of
the debt  exceeded the $243,438  combined  value of the  consideration  given to
settle the debt, resulting in a gain of $58,474 net of income taxes of $4,901.

3.   STOCKHOLDERS' DEFICIT

Shares  issued to employees and others for services are valued based on the fair
value of the stock issued and/or the service rendered. Other non-monetary common
stock  transactions were valued at the trading price of the stock at the date of
the  transactions.  The following  table shows the number of shares issued,  the
amount  recorded as  expenseand  the basis of  valuation  for shares  issued for
services in the six months ended June 30, 2001.



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



Shares issued for services during the six months ended June 30, 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-5

<PAGE>



The  Company  has a  number  of  subscriptions  for its  common  stock  totaling
3,376,403  which are not yet issued at June 30, 2001.  Shares  committed but not
issued are awaiting the  implementation  of a shareholder  approved  increase in
authorized  shares  from 20  million  to 50  million.  The  aggragate  value  of
transactions for which shares have not yet been issued is $439,215.

4.   DISCONTINUED BUSINESS SEGMENT

In April  2001 the  Company  discontinued  the  operatons  of its  wholly  owned
subsidiary  Net  Express,  Inc.,  (Net  Express) and moved to dispose of the net
assets of that business. No significant operations were conducted in Net Express
during the three and six months  ended June 30, 2001.  The interim  consolidated
financial  statements of the Company for the three and six months ended June 30,
2000  have  been  restated  to show the net  operating  results  of Net  Express
separately  and net  revenues of Net Express for the three and six months  ended
June 30, 2000 of $49,028  and  $157,944  respectively  are  excluded  from total
consolidated revenues in the accompanying Consolidated Statement of Operations.

Discontinued  assets  are shown at their  expected  net  realizable  values  and
liabilities  at their face values.  Assets and  liabilities of Net Express to be
disposed of consisted of the following at June 30, 2001:


<TABLE>
<S>                                               <C>
    Cash                                              $2,438
    Receivables                                       24,097
    Inventory                                         23,743
    Property and equipment                             2,526
    Payables and short-term borrowings              (77,252)
     Net assets                                    ($24,448)
                                                  ==========
</TABLE>



5.   BUSINESS SEGMENTS

The Company"s  revenues are derived from three closely related and complimentary
service and product  categories,  1) renewable  contract  equipment  maintenance
services, 2) equipment installation services and 3) value added equipment supply
sales.  The following table sets forth the salient  operating  contributions  of
each for the six months ended June 30, 2001 and 2000


<TABLE>
<S>                              <C>           <C>            <C>               <C>               <C>
                                  Maintenance    Integration          Supplies     Eliminations       Total
                                 ------------- -------------- ----------------- ----------------- -----------------
2001
Revenues                             $901,286             $0          $441,660                         $1,342,946
Inter-segment sales                     5,950              0             5,130        ($11,080)                 -
Operating (loss) income             (459,762)       (39,705)            86,422                           (413,045)
Depreciation and amortization          22,967              0            16,631                             39,598
Interest                              152,347              0             6,173                            158,520
Property & equipment purchases         13,979              0             4,239                             18,218
Total assets                       $1,366,132        $27,004          $451,487       ($500,975)        $1,343,648


2000
Revenues                           $1,173,811                         $392,820                         $1,558,348
Inter-segment sales                     7,681                            4,820        ($12,501)                 -
Operating (loss) income              (79,183)       (60,027)          (42,545)                          (181,755)
Depreciation and amortization          20,180                           11,250                             31,430
Interest                               16,267                            4,706                             20,973
Property & equipment purchases        178,707                         (12,716)                            165,991
Total assets                       $1,511,763        $99,399          $447,840       ($429,044)        $1,629,958
</TABLE>

                                                                ********


                                       F-6

<PAGE>



Item 2.  Management's Discussion and Analysis of Operations

Introduction

The  interim   financial  results  discussed  herein  include  the  consolidated
operations of OneSource Technologies,  Inc, (hereinafter "OneSource" and/or "the
Company") for the six months ended June 30, 2001 and 2000.  OneSource is engaged
in three closely related and  complimentary  lines of IT and business  equipment
support   activities,    1)   equipment   technology    maintenance    services,
("Maintenance") 2) equipment technology installation services,  ("Installation")
and 3) value added equipment technology 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.

Results of Operations

Operating  results are mixed in the six months  ended June 30, 2001  compared to
the same period in fiscal 2000. The following  table  summarizes the comparative
results for the two periods:

<TABLE>
<CAPTION>
Summary of Operations                            2001         2000 Restated
--------------------------------------------------------------------------
<S>                                           <C>             <C>
   Revenues                                   $  1,342,946    $ 1,558,348
   Cost of Revenue                            $     792,093   $   934,495
   Gross Margin                               $     550,853   $   623,853
   Selling General and Administrative Costs   $     719,524   $   783,923
   Operating Loss before Extraordinary Gain   $   (168,671)   $  (160,070)
   Other Income (Expense)                     $   (186,432)   $   (25,033)
   Extraordinary Gain                         $          -    $    63,375
--------------------------------------------- --------------- ------------
   Loss from Discontinued Operations          $    (64,153)   $   (60,027)
--------------------------------------------- --------------- ------------
   Net Loss                                   $   (413,035)   $  (181,755)
--------------------------------------------- --------------- ------------
</TABLE>

Fiscal 2001 results reflect  management's  changed focus and strategic  emphasis
for the  Company.  The  Company's  rapid  growth and  expansion in 1999 and 2000
contributed  to a number of  operational  problems that  adversely  impacted the
Company's  operating  results in fiscal 2000 and  year-to-date  2001. While they
were not as evident in the first half of 2000 they compounded and accelerated in
the latter half of that year.  The problems  centered on a)  contraction of core
maintenance  revenues and b)  abnormally  high  operating  costs  stemming  from
disparate and competing agendas among 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 operations by the end of 2001. The new Chairman was given card blanche to
make whatever  changes he deemed  warranted to accomplish this objective.  While
operating  results  for the fist six  months of fiscal  2001  don't yet show the
effects of a number of improvements  that have been implemented  results for the
three  months  ended June 30, 2001 do compared to the same three months ended in
fiscal 2000.

                                       10

<PAGE>



Consolidated  revenues  declined  in the  first six  months of 2001 by  fourteen
percent  (14%)  compared  to the same six month  period  in fiscal  2000 but the
decline narrowed to twelve percent (12%) in the three months ended June 30, 2001
compared  to the same three  month  period in fiscal  2000.  Further,  operating
margins  improved in 2001  compared to fiscal 2000 by one prevent  (1%) and nine
(9%) in the first six  months  and three  months  respectively.  These  improved
operating  trends,  particularly in the latest three months are the result of a)
right sizing Company staff, b) realigning operating  divisions,  c) general cost
cutting and d) streamlining and empowering management.

In April the Company  discontinued the operations of its wholly owned subsidiary
Net  Express,  Inc. and  implemented  a plan to dispose of the net asset of that
division.  Too much of Net Express's  activities we  concentrated  in the highly
competitive and low margin network hardware sales and integration industry which
drained resources from the Company's core equipment maintenance and installation
divisions.  The net effects of discontinued  operations are shown  separately in
the Consolidated Statement of Operations for the three and six months ended June
30, 2001 and 2000.

While OneSource's core operating divisions show significant improvement on gross
margins  the  Company   continues   to  absorb   unusually   high   General  and
Administrative costs as a result of legacy issues related to past problems. Most
of these  costs  relate to salary and related  benefits  and taxes and legal and
professional costs related to controlling and managing the issues.

Revenues

Most of the revenue  decline in the six months  ended June 30, 2001  compared to
the six months ended June 30, 2000 occurred in the maintenance division with the
balance in  installation  operations.  The  supplies  division  has been showing
consistently  improving  levels  of  operations  in  fiscal  year-to-  date 2001
compared to the same period in 2000 as the following table illustrates:

<TABLE>
<S>                                   <C>              <C>
Revenues                                 2001          2000 Restated
------------------------------------- ------------     -------------
   Maintenance and Installation       $   915,845      $   1,158,072
   Supplies                           $   427,101      $     400,276
------------------------------------- ------------     -------------
       Total                          $ 1,342,946      $   1,558,348
------------------------------------- ------------     -------------
</TABLE>

In June of fiscal  2000 the  Company  lost a  significant  maintenance  contract
($450,000  annualized) when the client elected to do maintenance in-house and in
August the Company  terminated a significant  subcontracting  relationship worth
about  $250,000  thousand  annually  because  it  didn't   synergistically   fit
OneSource's approach to service delivery.  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 will focus greater attention on growing revenues
of these  divisions  via both  current  account  extensions  as well as  through
out-bound sales and marketing efforts.

                                       11

<PAGE>



Supply  division  revenues  increased seven percent (7%) in the first six months
ended June 30, 2001  compared to the same period in fiscal 2000.  This  increase
was realized in spite of not having the division's planned Internet distribution
channel  on  line  in  the  period  and  represents  non-Internet  new  customer
acquisition and expanded  present  customer  shipments.  Management is committed
however to bring the division's web-based  distribution  delivery system on-line
in the third quarter of 2001 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 overall  operating  margins for the six months ended June 2001 improved
to forty-one  percent (41%) compared to forty percent (40%) in the fiscal period
ended June 30, 2000. Year to date gross margin on maintenance  services declined
from forty-four  percent (44%) in fiscal 2000 to forty-one  percent (41%) in the
first  six  months  of  fiscal  2001.  This  decline  however  was  offset  by a
significant fourteen percent (14%) increase in supply division margins. Improved
inventory and remanufacturing controls largely account for the elevated level of
margins in that division.

Overall costs are down in both divisions  particularly in the three months ended
June 30, 2001 compared to the same period in fiscal 2000.  Operating  margins in
the three months ended June 30, 2001 were  forty-six  percent (46%)  compared to
only thirty-seven  percent (37%) for the three months ended June 20, 2000. These
improvements  document  that  changes  implemented  earlier  in fiscal  2001 are
starting  to reflect in  reported  results  particularly  results  for the three
months  ended  June 30,  2001  which  show a the small  operating  profit of $25
thousand.  This represents the Company's  first  operating  profit in over three
years.

Selling, General and Administrative Costs

These costs declined in the six and three months ended June 30, 2001 six percent
(6%) and  nineteen  percent  (19%)  respectively  compared  to the six and three
months ended June 30, 2000. While down from the prior year these costs at 55% of
gross revenues were still  excessively  high. In the quarter ended June 30, 2001
these costs declined as a percent of revenues to 42% showing  improving  results
from management's restructuring initiatives numbers.

<TABLE>
<S>                                       <C>          <C>
General and Administrative                   2001      2000 Restated
----------------------------------------- -----------  ------------
   Salaries Wages and Benefits            $   402,252  $   359,098
   Facilities                             $   116,166  $   104,626
   Legal and Professional                 $    43,548  $   100,730
   Telecommunication Costs                $    33,869  $    32,531
   Travel and Entertainment               $    15,365  $    39,547
   Other                                  $    32,477  $    45,633
----------------------------------------- -----------  ------------
      Total                               $   643,677  $   682,165
----------------------------------------- -----------  ------------
</TABLE>

While  overall  costs  declined in the first half of 2001  compared to the prior
year  salary  and  facility  categories  show  increases  versus  the  otherwise
declining trend. In both instances however actual

                                       12

<PAGE>



costs  declined in fiscal 2001  compared to 2000 as a portion of facility  costs
were classified differently in 2000. Comparatively facility costs remained level
in the six  months  ended June 30,  2001  compared  to the same  period in 2000.
Similarly 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 six
months  results are  comparable to the first six months of fiscal 2000.  For the
three  months  ended June 30, 2001  compared to the same three  months of fiscal
2000 these costs are down reflecting  improvements  and cuts that management has
installed  during fiscal 2001 to curtail and reduce  operating costs. As of June
30, 2001 total  Company  staff had been reduced to 37  employees  from 56 at the
same time last year.  Substantially all these reductions  occurred in the latter
month of the first quarter and throughout the second  quarter.  Accordingly  the
full impact of the  reductions  is not yet evident in the first half results but
will be more manifest in the next quarter.

<TABLE>
<S>                                          <C>            <C>
Sales and Marketing                                2001     2000 Restated
-------------------------------------------  ----------     -------------
   Salaries Commissions and Benefits         $   72,532     $     86,269
   Advertising and Promotion                 $   11,937     $     11,325
   Travel and Entertainment                  $     9,61     $      4,164
-------------------------------------------  ----------     -------------
      Total                                  $   94,080     $    101,758
-------------------------------------------  ----------     -------------
</TABLE>

The decline in selling costs is largely the result of the  Company's  turnaround
restructuring  activities.  The  paramount  objective  of  this  effort  was  to
streamline overall operations and redirect corporate  resources toward improving
the Company's core maintenance and supplies division  operating  infrastructures
and  management.  To some degree sales and  marketing  became a casualty of this
redirected  focus and  accordingly  took a back seat while the  realignment  was
being  implemented.  Now that operational and management  changes are largely in
place  and the  attendant  foundation  secure  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 for the three and
six months ended June 30,  2001.  The  magnitude  of the loss  however  declined
significantly  in the three  months  ending June 30, 2001  compared to the first
three months of the same year. The Company in fact would have realized breakeven
operating  results  for the  latest  quarter  were  it not  for the  significant
interest costs it absorbed in the period.

Interest and Other Income (Expense)

<TABLE>
<S>                           <C>            <C>
Other Income (Expense)          2001         2000 Restated
-------------------------     -------------  -------------
   Interest                   $   (158,520)  $  (18,724)
   Other                      $    (27,912)  $   (6,309)
-------------------------     -------------  ------------
      Total                   $   (186,432)  $  (25,033)
-------------------------     -------------  ------------
</TABLE>


                                       13

<PAGE>



These  costs are up seven fold in fiscal 2001  compared to the six months  ended
June 30, 2000 and account  for fully one half of the first  six-month  2001 loss
and all the loss for the three months ended June 30, 2001. Substantially all the
increase is due to interest  expense  related to Company short- term  borrowings
over the past nine  months in support of funding  needed to cover the  Company's
turnaround.  About $100 thousand of the interest  represents  "financing  costs"
incurred as deal sweeteners (stock and/or warrants) offered to secure short-term
debt  capital in 2000,  a portion of which was  deferred  at  year-end  2000 and
amortized  in fiscal 2001 as a result of recent  accounting  profession  and SEC
pronouncements. While these costs didn't utilize corporate cash the value of the
sweeteners was required to be charged to earnings under the new  pronouncements.
Because of the revised  accounting for such debt  sweeteners the Company has not
entered into any similar deal structures in fiscal 2001 and  accordingly  should
not have to absorb these costs in the future.

Liquidity and Capital Resources

The following table sets forth selected  financial  condition  information as of
June 30, 2001 compared to December 31 2000:

<TABLE>
<S>                                    <C>                   <C>
Balance Sheet -                            2001              2000 Restated
   Working Capital                      ($939,420)             ($833,107)
   Total Assets                        $1,343,648             $1,493,946
   Debt Obligations                      $847,284               $587,635
   Shareholders' (Deficit) Equity       ($607,733)             ($384,849)
</TABLE>

Liquidity and sufficient  capital continued to be a problem during the first six
months of 2001.  Costs continued to exceed  revenues  throughout the quarter and
while a significant  proportion of total costs were non-cash charges the company
continued  to operate in a cash flow  negative  position  through  the first six
months  ended June  30,2001  which  necessitated  funding  the short  falls with
short-term   borrowings.   Further,  the  short-term  lenders  required  "equity
sweeteners"  as part of the  deals,  which  further  increased  the  cost of the
short-term  borrowings.  This  increase in short-term  obligations  is a primary
reason  for the  sharp  decline  in  working  capital  at June 30,  2001 and the
negative current ratio at June 30, 2001 of .43% compared to .47% at December 31,
2000.  The  financing  cost  of  these  funding  rounds  is  also a  significant
contributor  (approximately  $150  thousand) to the  Company's  loss for the six
months ended June 30, 2001.

Also  contributing  to the diminished  working capital ratio at June 30, 2001 is
the  liability  of  $439  thousand  in  current  liabilities   representing  the
obligation  for shares of the Company's  stock that were  subscribed  during the
year ended  December  31,  2000 but were not yet issued at June 30,  2001.  This
obligation  also had the negative  effect of  significantly  decreasing  Paid In
Capital and Stockholders' Equity at June 30, 2001.

Further  contributing to the decreased working capital position at June 30, 2001
compared to year-end 2000 is the decrease in current asset  balances at June 30,
2001. Accounts  receivable  decreased as a result of the decrease in maintenance
and  installation  revenues  and while  inventories  increased  they did so at a
lesser amount. While current liabilities  increased slightly (4%) as of June 30,
2001 compared to December 31, 2000  substantially all of the increase was due to
short-term  borrowings.  Every other current liability balance decreased at June
30, 2001 compared to year-end 2000 except

                                       14

<PAGE>



accruals and other  liabilities,  which  increased as a result of a  significant
payroll  tax charge  related to prior  periods.  Declines in the rest of current
liabilities is the result of the Company's improved cost controls and management
initiatives related to the turnaround program.

In March 2001 the  Company and holders of four of the  Company's  notes  payable
that were due in March and June of 2001 entered into Note Deferral and Extension
Agreements wherein each note holder agreed to defer all principal payments until
July 15, 2001,  whereupon the Company has agreed to make a  twenty-five  percent
(25%) principal payment to each note holder and the notes' due dates will extend
to July 15, 2002. At the same date (July 15, 2001) the Company will begin making
level monthly principal and interests  payments over the remaining  twelve-month
period of the notes.  As part of the  agreements  the  Company  has agreed to an
increase in the interest rates of the notes from their stated twelve to fourteen
percent (12% to 14%) to eighteen percent (18%).

The Company is also  engaged in  negotiations  with several  investment  banking
firms and others with the intent of securing equity funding of $1 million. These
negotiations  were  continuing as of June 30, 2001,  but no commitment  has been
made, as of the date of this report.

To  improve  the  Company's  financial  position,  the  Company  and a group  of
investors  executed an agreement in March 2000 with PF  Holdings,  Inc.  (PF) to
purchase  the  promissory  note  held by PF with a face  value of  $285,000  and
accrued  interest of $36,972 for $150,000 in cash  provided by the investors and
175,000 shares of the Company's common stock with a fair market value on March 4
of  $93,438.00.  The investor group  exchanged the  promissory  note for 643,944
shares of  OneSource  stock.  The  investor's  are  restricted  from selling the
combined  818,944  shares of stock for a period of one year.  Completion of this
transaction resulted in a stet gain of $63 thousand.

At June 30, 2001 the Company had accrued delinquent payroll taxes, penalties and
interest of approximately  $149,000.  While the Company is current in payment of
all its  payroll  tax  liabilities  and has been  since  April 2000 and has been
making  $11,500  a month  payments  against  the past  accrual  the IRS has been
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.
These liabilities  relate to unpaid  withholding taxes that were assumed as part
of the LBO in 1997  and  two  (2)  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.


Employees

At June 30, 2001, the Company  employed  forty-one  (41) 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.


                                       15

<PAGE>



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

This Form 10-QSB  includes  "forward-looking  statements"  within the meaning of
Section 27A of the  Securities  Act of 1933, as amended,  and Section 21E of the
Securities  Exchange  Act of  1934,  as  amended.  All  statements,  other  than
statements of historical  facts,  included or  incorporated by reference in this
Form 10-QSB which address  activities,  events or developments which the Company
expects or anticipates will or may occur in the future, including such things as
future capital expenditures (including the amount and nature thereof), expansion
and growth of the Company's business and operations,  and other such matters are
forward-looking  statements.  These statements are based on certain  assumptions
and analyses made by the Company in light of its  experience  and its perception
of historical  trends,  current  conditions and expected future  developments as
well as other factors it believes are appropriate in the circumstances. However,
whether  actual  results  or  developments   will  conform  with  the  Company's
expectations and predictions is subject to a number of risks and  uncertainties,
general economic market and business conditions;  the business opportunities (or
lack  thereof)  that may be presented to and pursued by the Company;  changes in
laws or regulation;  and other factors,  most of which are beyond the control of
the Company.

Consequently, all of the forward-looking statements made in this Form 10-QSB are
qualified by these cautionary  statements and there can be no assurance that the
actual results or  developments  anticipated by the Company will be realized or,
even if substantially  realized, that they will have the expected consequence to
or effects on the Company or its business or operations.

PART II

Item 1. Legal Proceedings.

The Company knows of no legal proceedings to which it is a party or to which any
of its property is the subject which are pending,  threatened or contemplated or
any unsatisfied judgments against the Company.

Item 2. Changes in Securities and Use of Proceeds

         None.

                                       16

<PAGE>



Item 3. Defaults in Senior Securities

         None

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

No matter was submitted during the quarter ending June 30, 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.

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.

5.1      [4]      Opinion of Mintmire & Associates

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

                                       17

<PAGE>


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

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.
</TABLE>


                                       18

<PAGE>


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

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.
----------------------------
(* filed herewith)




                                       19

<PAGE>


                                   SIGNATURES



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

                          ONESOURCE TECHNOLOGIES, INC.
                                    (Registrant)

Date: August 20, 2001      By: /s/Thomas E. Glasgow
                           ------------------------------------
                           Thomas E. Glasgow, Chairman

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

                           By: /s/ Donald C. Gause
                           ------------------------------------
                           Donald C. Gause, Director

                           By: /s/ Norman E. Clark
                           ------------------------------------
                           Norman E. Clark, Director

                                       20