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, 2003
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 registered under Section 12(g) of the Act:

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


Copies of Communication Sent to:


                               Blume Law Firm, PC
                     11811 North Tatum Boulevard, Suite 1025
                      Phoenix, AZ 85028-1612 (602) 494-7313


<PAGE>


     Indicate by Check  whether the issuer (1) filed all reports  required to be
filed by Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or
for such shorter  period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.

                  Yes  X             No
                      ---               ---


     As of June 30, 2003,  there were  37,779,011  shares of voting stock of the
registrant issued and outstanding.


<PAGE>


Part I.

Item 1.  Financial Statements


                          ONESOURCE TECHNOLOGIES, INC.



                     Consolidated Financial Statements as of
                             June 30, 2003 and 2002
                                   (Unaudited)



<PAGE>


                          ONESOURCE TECHNOLOGIES, INC.


                                TABLE OF CONTENTS


                                                                            Page
                                                                            ----
CONSOLIDATED BALANCE SHEET
  AS OF JUNE 30, 2003                                                        1

CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE
  THREE AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002                          2

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
  THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002                                3

FOOTNOTES                                                                    4

<PAGE>


ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2003
----------------------------------------------


ASSETS

CURRENT ASSETS:

    Cash                                                            $    39,606
    Accounts receivable                                                 417,213
    Inventories                                                         210,118
    Other current assets                                                  3,168
                                                                    -----------
        Total current assets                                            670,105
                                                                    -----------

PROPERTY AND EQUIPMENT, net of accumulated
     depreciation of $199,212                                            86,656
GOODWILL                                                                235,074
DEFERRED INCOME TAXES                                                   140,187

OTHER ASSETS                                                              5,178
                                                                    -----------
TOTAL ASSETS                                                        $ 1,137,200
                                                                    ===========

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:

    Accounts payable                                                $   193,083
    Accrued expenses and other liabilities                              283,167
    Deferred revenue                                                    196,699
    Current portion of debt                                           1,028,344
                                                                    -----------
         Total current liabilities                                    1,701,293
                                                                    -----------


INSTALLMENT NOTES - LONG-TERM PORTION                                     4,776

                                                                    -----------
TOTAL LIABILITIES                                                     1,706,069
                                                                    -----------

STOCKHOLDERS' DEFICIT:
    Preferred Stock, $.001 par value, 1,000,000
        shares authorized, none issued                                     --

    Common Stock, $.001 par value, 50,000,000
        shares authorized, 37,779,011                                      --
        issued and outstanding at June 30, 2003                          37,779
    Paid in capital                                                   2,751,382
    Accumulated deficit                                              (3,358,030)
                                                                    -----------

                                                                       (568,869)
                                                                    -----------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                         $ 1,137,200
                                                                    ===========

          The accompanying notes are an integral part of this statement

                                        1
<PAGE>

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

                                            2ND QTR          2ND QTR           YTD             YTD
                                              2003            2002             2003            2002
                                           ------------------------------------------------------------
<S>                                        <C>             <C>             <C>             <C>
REVENUE, net                               $    771,322    $    720,851    $  1,548,079    $  1,399,841

COST OF REVENUE                                 471,348         409,905         952,116         900,101
                                           ------------------------------------------------------------
                    GROSS PROFIT                299,974         310,946         595,963         499,740

GENERAL AND ADMINISTRATIVE EXPENSES             213,519         191,874         481,830         447,327
SELLING AND MARKETING EXPENSES                   45,414          11,381          50,644          17,986
                                           ------------------------------------------------------------
                    Operating income             41,041         107,691          63,489          34,427

OTHER INCOME (EXPENSE):
    Interest expense                            (31,516)        (29,722)        (66,395)        (64,832)
    Other income (expense)                       (1,247)        (24,398)         (1,165)        (26,491)
    Loss from litigation settlements            (92,768)           --           (92,768)           --
                                           ------------------------------------------------------------
                     Total other expense       (125,531)        (54,120)       (160,328)        (91,322)

                                           ------------------------------------------------------------
NET INCOME (LOSS)                          $    (84,490)   $     53,571    $    (96,840)   $    (56,895)
                                           ============================================================

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

Weighted Average Shares Outstanding:

                    Basic                    37,246,402      22,045,674      32,981,294      22,045,674
                    Diluted                  37,246,402      22,045,674      32,981,294      22,045,674
</TABLE>

          **Less than $0.01 per share



         The accompanying notes are an integral part of this statement.

                                        2
<PAGE>

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

                                                                                               2003        2002
                                                                                             --------    --------
<S>                                                                                          <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
            Net loss                                                                         $(96,840)   $(56,895)
           Adjustments to reconcile net loss to net cash used by operations -

                      Loss on disposal of fixed assets                                           --        16,192
                      Depreciation and amortization                                            22,187      30,176
                      Stock issuances to consultants for services                              58,514        --
                      Non-cash portion of litigation settlements                               64,254        --
                     Changes in assets and liabilities:
                                Accounts receivable                                            33,216     (22,927)
                                Inventory                                                      (2,446)      2,206
                                Other current assets                                            7,336      10,920
                                Other assets                                                   (2,150)      1,323
                                Accounts payable                                                4,655     (93,393)
                                Accrued expenses and other liabilities                        (28,962)      4,964
                                Deferred revenue                                               (3,672)     29,966
                                                                                             --------    --------
                                                     Net cash used by operating activities     56,092     (77,468)

                                                                                             --------    --------

CASH FLOWS FROM INVESTING ACTIVITIES:
                     Purchases of property and equipment                                       (5,060)       (630)
                      roceeds from disposal of equipment                                         --         5,500
                                                                                             --------    --------
                                          Net cash (used) provided by investing activities     (5,060)      4,870
                                                                                             --------    --------

CASH FLOWS FROM FINANCING ACTIVITIES:

                           Principal payments on capital lease obligations                       --        (5,342)
                           Proceeds from notes payable                                         15,832      50,000

                           Principal payments on notes payable                                (82,525)    (18,404)
                                                                                             --------    --------
                                          Net cash (used) provided by financing activities    (66,693)     26,254
                                                                                             --------    --------


DECREASE IN CASH                                                                              (15,661)    (46,344)

CASH, beginning of period                                                                      55,267      75,433
                                                                                             --------    --------
CASH, end of period                                                                          $ 39,606     %29,089
                                                                                             ========    ========
</TABLE>

         The accompanying notes are an integral part of this statement.

                                        3
<PAGE>


ONESOURCE TECHNOLOGIES, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE SIX MONTHS ENDED JUNE 30, 2003 and 2002
----------------------------------------------

     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, 2002.
In the opinion of management,  these Unaudited financial  statements reflect all
adjustments  which are necessary to present  fairly the  financial  position and
results of operations of the Company for such interim period.  Operating results
for the interim  period are not  necessarily  indicative  of results that may be
expected for the entire year.


     2. STOCKHOLDERS' DEFICIT AND LITIGATION SETTLEMENTS


Shares  issued for  services  and  litigation  settlements  in the three and six
months  ended  June 30,  2003 were  valued  based on the fair value of the stock
issued  and/or the service  rendered.  The  following  table shows the number of
shares  issued and the basis of valuation for shares issued in the three and six
months ended June 30, 2003.

                                        4
<PAGE>

<TABLE>
<CAPTION>

                                         Shares                      Cost per
Description                              Issued                      Share Valuation Basis
-----------                              ------                      ---------------------
<S>                                     <C>                          <C>
Issued for services                     9,000,000                    0.01     Stock price at commitment date


Issued for litigation settlements         850,000                    0.02     Stock price at commitment date


Issued for litigation settlements          75,694                    0.02     Stock price at commitment date


Issued for litigation settlements       1,000,000                    0.01     Stock price at commitment date
</TABLE>

During the quarter  ended 30, June 2003,  the Company  entered into two separate
settlement  agreements  with two  current  shareholders  and  former  owners  of
companies acquired by the Company in 1999. These agreements end all disputes and
litigation  among the parties.  As part of the settlements the Company agreed to
compensate  one of the parties with 925,694  restricted  shares of common stock,
$72,000  payable over 24 months,  and $42,500  payable in a lump sum on April 1,
2005 and convertible at the holder's option into shares of the Company's  voting
common stock in accordance with the settlement  provisions.  The other party was
granted 1,000,000 restricted shares of common stock, $30,000 payable over twelve
months,  and $30,000  payable in a lump sum on April 15, 2004 and convertible at
the  holder's  option  into  shares  of the  Company's  voting  common  stock in
accordance with the settlement provisions.

As part of the  settlement  agreements,  both  parties  agreed  to  release  and
indemnify  the  Company,  its officers  and  directors  from any action or claim
relating to the past matters now and in the future.  The negotiated  settlements
resulted in a loss of $92,768 being recorded in the quarter ended June 30, 2003.

Subsequent to June 30, 2003, the Company settled a dispute with a former officer
and board  member.  No legal action had been filed  related to this  dispute.  A
payment  of  $40,000  was made to this  individual  in  exchange  for a complete
release of all current and future  claims  against the Company.  His  employment
contract was terminated.

                                        5
<PAGE>

     3. BUSINESS SEGMENTS

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


June 30, 2003 and 2002:
<TABLE>
<CAPTION>


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

2003
----
<S>                                                         <C>                 <C>              <C>                     <C>
Revenues                                                    $1,091,458          $456,621                                 $1,548,079


Inter-segment sales                                                  0                 0                                          0


Net loss                                                       (34,904)          (61,935)                                  (96,840)
Loss from litigation settlements                                19,754            73,014                                     92,768


Depreciation and amortization                                   16,971             5,216                                     22,187


Interest                                                        66,421               (26)                                    66,395


Property & equipment purchases                                  5,060                  0                                      5,060


Total Assets                                                $1,464,172          $401,539            ($728,511)           $1,137,200

                                        6
<PAGE>


2002
----


Revenues                                                    $1,001,565          $398,274                                 $1,399,839


Inter-segment sales                                                  0                 0                                          0


Net loss                                                       (63,116)            6,221                                    (56,895)


Depreciation and amortization                                   25,869             4,037                                     30,176


Interest                                                        64,513               319                                     64,832


Property & equipment purchases                                     630                 0                                        630


Total Assets                                                $1,324,744           398,285            ($678,279)           $1,044,750
</TABLE>


     4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Inventories: Inventories consist primarily of used equipment, new and used parts
     and supplies and are stated at the lower of cost (specific  identification)
     or market. Cartridge Care inventories consist of raw materials and finished
     goods  consisting  of  remanufactured  toner  cartridges.   Cartridge  Care
     inventories are stated on a FIFO basis.

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 3 to 10 years.

Goodwill:  Goodwill  reflects the cost in excess of the fair values  assigned to
     the underlying net assets of Cartridge Care 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. The Company  believes that
     there has been no impairment of the carrying  value of goodwill of $235,074
     as of June 30, 2003.

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  of  parts  and
     equipment are  recognized  when 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.

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.

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.

                                        7
<PAGE>

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".  The pro forma effect of the
     fair value method is discussed in Note 12.

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.

                                        8
<PAGE>


Item 2.  Management's Discussion and Analysis of Operations

Introduction

The financial  results  discussed herein include the consolidated  operations of
OneSource Technologies,  Inc, (hereinafter "OneSource" and/or "the Company") for
the three and six month  periods  ended June 30,  2003,  and 2002.  OneSource is
engaged  in two  closely  related  and  complimentary  lines of  technology  and
business  equipment  support  activities;  1)  equipment  maintenance  services,
("Maintenance"), 2) value added equipment supply sales, ("Supplies").  OneSource
is a leader in the technology equipment  maintenance and service industry and is
the inventor of the unique OneSource Flat-Rate Blanket  Maintenance  System(TM).
This program  provides  customers  with a Single Source for all general  office,
computer and peripheral and industry specific equipment technology  maintenance,
installation and supplies products.

Summary of Operations

Revenues and operating  income have  increased  while net income has declined in
the six months  ended June 30, 2003  compared to the same period in fiscal 2002.
The following table summarizes the comparative results for the two periods:

--------------------------------------------------------------------------------
Summary of Operations                              2003                 2002
--------------------------------------------------------------------------------
   Revenues                                    $ 1,548,079           $1,399,841
   Cost of Revenue                                 952,116              900,100
   Gross Profit                                    595,963              499,741
   Selling General and Administrative Costs        532,474              465,314
   Operating Income                                 63,489               34,427
   Other Income (Expense)                          (67,560)             (91,322)
   Loss from Litigation Settlements                (92,768)                --
--------------------------------------------------------------------------------
   Net Loss                                     $  (96,839)             (56,895)
--------------------------------------------------------------------------------

While  consolidated  revenues to date have  increased by eleven percent (11%) in
2003 compared to 2002,  consolidated cost of revenues increased six percent (6%)
resulting in a nineteen  percent (19%)  increase in gross profit.  This reflects
the  continuing  efforts to control  parts  costs in the  maintenance  division.
Changes  implemented  early in the second quarter of 2002 have shown  continuing
improvement  through the end of the second  quarter 2003 as gross margins of the
maintenance  division  for the six months  ended June 30, 2003  increased to 41%
versus 35% for the first six months of 2002.  Management  will continue to focus
on this  aspect of the  maintenance  division in order to continue to bring down
parts usage rates.

                                        9
<PAGE>

Revenues

Consolidated  revenues  increased  eleven percent (11%) for the six-month period
ended June 30, 2003 compared to the same period in 2002.  Consolidated  revenues
increased  seven  percent  (7%) for the  three-month  period ended June 30, 2003
compared  to the same period in 2002.  As seen in the  following  table,  supply
division  revenues for the six-month  period ended June 30, 2003  increased four
(4%)  compared  to 2002,  while  the  maintenance  division  revenues  increased
fourteen (14%):


------------------------------------------------
Revenues                  2003             2002
------------------------------------------------
   Maintenance         $1,091,458     $  959,437
   Supplies
                          456,621        440,404
------------------------------------------------
       Total           $1,548,079     $1,399,841
------------------------------------------------

The Company's restructuring and realignment of its maintenance division that was
implemented in the fourth  quarter of 2001 continues to show positive  trends as
of the end of the second quarter of 2003.

Maintenance  revenues have increased fourteen percent (14%) and thirteen percent
(13%) for the six-month and three-month  periods,  respectively,  ended June 30,
2003  compared to the same periods in 2002.  These  increases  are the result of
added service  commitments from existing  customers as well as the addition of a
new contract. This reflects significant changes the Company has implemented that
have improved  maintenance  customer  satisfaction  levels to the highest in the
Company's  history.  Although the Company is not currently  focused on equipment
installation  services,  to the degree installation  opportunities arise in line
with  present  geographic  and staffing  resources,  the Company will pursue and
engage them;  however,  in the  near-term  management  is  concentrating  on the
maintenance  and  supplies  divisions.  Now that  operational  efficiencies  and
customer  satisfaction levels are substantively  improved management is focusing
greater  attention on growing  revenues via both current  account  extensions as
well as through out-bound sales and marketing efforts.

Supply division revenues increased four percent (4%) and decreased eight percent
(8%) for the six- month and three-month  periods,  respectively,  ended June 30,
2003  compared  to the same  periods  in 2002.  Supply  division  revenues  were
positively impacted by the division's web-based distribution delivery system, as
well as the addition of a large new customer,  which also entered into a service
agreement with the Company's maintenance division. This new account continues to
generate  profitable margins and contribute  significant new volume and positive
cash flow. The decline in supplies  division  revenue in the three-month  period
ended June 30, 2003 is due primarily to timing of certain  customers'  purchases
compared to the prior year.

                                       10
<PAGE>

Gross Margins

Consolidated  gross margins for the six months ended June 30, 2003 have improved
slightly  over the six months ended June 30, 2002.  Gross  margins  increased to
thirty-eight  percent (38%) versus thirty-six percent (36%).  Improved inventory
control and field service management  contributed to the improved margins. These
improvements  focused on  strengthening  management  oversight  and  information
system and process  infrastructures  to assure better inventory and call routing
and dispatch control in the maintenance division. While the maintenance division
increased its gross profit margin by six percent  (6%),  the supplies  divisions
gross profit margin  decreased by seven percent (7%).  This decrease is a result
of the addition of the  customer  referenced  above who is a wholesale  customer
versus a retail  customer.  Prices for wholesale  customers are generally lower,
thus generating lower margins; however, wholesale customer volumes are typically
higher than retail customers.

Consolidated  gross  margins for the three months ended June 30, 2003  decreased
slightly from the three months ended June 30, 2002.  Gross margins  decreased to
thirty-nine  percent (39%) from forty-three  percent (43%). This decrease is due
primarily  to the  addition  of the new  wholesale  supplies  division  customer
discussed above.

Selling, General and Administrative Costs

General and  administrative  costs increased  approximately  $35,000 for the six
months  ended June 30, 2003  compared  to the same period in the prior year,  an
eight percent (8%) increase.  They increased  $21,000 for the three months ended
June 30, 2003 compared to the same period in the prior year,  an eleven  percent
(11%)  increase.   Despite  the  increases,   these  costs  remained  relatively
consistent as a percentage of revenues between periods,  representing thirty-one
percent  (31%) of gross  revenues  for the six months ended June 30, 2003 versus
thirty-two percent (32%) for the same period in the prior year. They represented
twenty-seven  percent (27%) of revenues for both three- month periods ended June
30, 2003 and 2002. The following table  summarizes the  significant  general and
administrative cost categories for the six months ended June 30, 2003 and 2002:


----------------------------------------------------------------------------
General and Administrative                             2003         2002
----------------------------------------------------------------------------
   Salaries, Wages and Benefits                      $ 142,187    $222,803

   Facilities                                           76,870      73,616

   Legal and Professional                              173,376      52,467

   Telecommunication Costs                              34,883      32,744

   Travel and Entertainment                             10,316       9,005

   Other                                                44,198      56,692
----------------------------------------------------------------------------
      Total                                          $ 481,830    $447,327
----------------------------------------------------------------------------

                                       11
<PAGE>

Most of the cost  categories  have nominal changes for the six months ended June
30, 2003 compared to the same period in 2002. The most significant  changes were
salaries, wages and benefits and legal and professional costs. The approximately
$120,000 increase in legal and professional  expenses is primarily  attributable
to the  Company's  senior  management  consultants  expanding  their role as the
Company's  strategy is implemented,  and to legal fees incurred related to final
settlements on certain  litigation,  discussed  further below. The approximately
$80,000 decrease in salaries, wages and benefits is due primarily to significant
headcount  reductions  made over the past year as part of the Company's  ongoing
restructuring. Overall, the Company's headcount has been reduced to 29 employees
at June 30,  2003 from 35 at the end of 2002 with most of the  reductions  being
made in the general and administrative category.

The following  table  summarizes  the  significant  selling and  marketing  cost
categories for the six months ended June 30, 2003 and 2002:

-------------------------------------------------------------------------
Selling and Marketing                                  2003        2002
-------------------------------------------------------------------------
   Salaries Commissions and Benefits                $38,796       $13,681
   Advertising and Promotion
                                                      4,018         4,163
   Travel and Entertainment
                                                      7,830           142
-------------------------------------------------------------------------
      Total                                         $50,644       $17,986
-------------------------------------------------------------------------

The significant increase in selling and marketing costs is largely the result of
the Company's  efforts to refocus on  implementing  and supporting the sales and
marketing plan, now that most of the operational,  infrastructure and management
changes  made as part of the  restructuring  over the past year are  largely  in
place.

The following table  summarizes  other income (expense) for the six months ended
June 30, 2003 and 2002:

Interest and Other Income (Expense)

----------------------------------------------------------------------------
Other Income (Expense)                           2003                2002
----------------------------------------------------------------------------
   Interest                                   $ (66,395)         $ (64,831)

   Other                                         (1,165)           (26,491)

   Loss from litigation settlements             (92,768)                 -
----------------------------------------------------------------------------
      Total                                   $(160,328)          $(91,322)

----------------------------------------------------------------------------

                                       12

<PAGE>

Interest cost has remained relatively  consistent between periods as the overall
debt level has as well. The most  significant  item in this category is the loss
on litigation settlements recorded in the quarter ended June 30, 2003.

During the quarter  ended June 30, 2003,  the Company  entered into two separate
settlement  agreements  with two  current  shareholders  and  former  owners  of
companies acquired by the Company in 1999. These agreements end all disputes and
litigation  among the parties.  As part of the settlements the Company agreed to
compensate  one of the parties with 925,694  restricted  shares of common stock,
$72,000  payable  over 24 months and  $42,500  payable in a lump sum on April 1,
2005 and convertible at the holder's option into shares of the Company's  voting
common stock in accordance with the settlement  provisions.  The other party was
granted  1,000,000  restricted  shares of common stock,  $30,000 payable over 12
months and $30,000  payable in a lump sum on April 15, 2004 and  convertible  at
the holder's into shares of the Company's voting common stock in accordance with
the settlement  provisions.  As part of the settlement  agreements  both parties
agreed to release and indemnify the Company, its officers and directors from any
action  or  claim  relating  to the  past  matters  now and in the  future.  The
negotiated  settlements  resulted  in a loss of $92,768  being  recorded  in the
second quarter ended June 30, 2003.

Liquidity and Capital Resources
The following table sets forth selected  financial  condition  information as of
June 30, 2003 compared to December 31, 2002:

---------------------------------------- -------------- -------------
   Working Capital                        ($1,031,188)  ($1,007,838)
---------------------------------------- -------------- -------------
   Total Assets                            $1,137,200    $1,205,944
---------------------------------------- -------------- -------------
   Debt Obligations                        $1,033,120      $985,310
---------------------------------------- -------------- -------------
   Shareholders' Deficit                    ($568,869)    ($530,543)
---------------------------------------- -------------- -------------

Liquidity and capital  resources  continued to be a problem during the first six
months of 2003.  Total costs  exceed  revenues  throughout  the first six months
ended June 30, 2003,  but are expected to improve in the third  quarter.  If not
for the loss from legal  settlements  of $92,768  recorded in the quarter  ended
June 30,  2003 and the  associated  legal  fees,  the  Company  would  have been
profitable  and would have generated  positive cash flow in the second  quarter.
With these  legal  issues now behind the  Company,  management  believes  it can
continue to improve both cash flow and  profitability  in the near-term  through
continued new  business.  In addition,  management is continuing  its efforts to
negotiate  additional  funding  opportunities   intended  to  re-capitalize  the
Company.

In March 2001 the  Company and holders of four of the  Company's  notes  payable
that were due in March and  September  of 2001  entered  into Note  Deferral and
Extension  Agreements  wherein  each note holder  agreed to defer all  principal
payments until July 15, 2001.  The Company agreed to make a twenty-five  percent
(25%)  principal  payment to each note holder on July 15,  2001.  The notes' due
dates were extend to July 15,  2002,  but by that date the Company was unable to
make the scheduled  partial  principle  payment or commence making level monthly
principal and interests payments over the remaining  twelve-month  period of the
notes.  As part of that  agreement  the  Company  also  agreed to  increase  the
interest rates of the notes from their stated twelve to fourteen percent (12% to
14%) to eighteen percent (18%). The Company has continued to make timely monthly
interest payments to the holders.  Further, the Company is in communication with
the holders and management  believes it will be able to negotiate an arrangement
that will not adversely impact the Company's continuing operations.

                                       13
<PAGE>

At June 30,  2003,  the  Company  had  accrued  approximately  $47,000 of unpaid
payroll taxes,  interest and penalties due the IRS. At the end of June 2002, the
Company submitted required documentation in support of its "Offer In Compromise"
previously  filed in 2001 to the IRS.  Management  believes  the Company will be
able to successfully liquidate this liability and that the ultimate outcome will
not have an adverse  impact on the  Company's  financial  position or results of
operations.

Employees

     At June 30, 2003, the Company employed  twenty-nine  (29) persons.  None of
these  employees  are  represented  by a labor union for purposes of  collective
bargaining.  The  Company  considers  its  relation  with  its  employees  to be
excellent.  The  Company  plans to employ  additional  personnel  as needed upon
product rollout to accommodate fulfillment needs.

Research and Development Plans

     The Company  believes that research and development for product and service
development is an important factor in its future growth.  The equipment  service
industry is closely linked to technological  advances,  which constantly produce
new machinery  for use by the public.  Therefore,  the Company must  continually
invest in training on the latest technological advances and the newest equipment
to effectively compete with other companies in the industry. No assurance can be
made that the Company will have sufficient  funds to fund such training  efforts
to match technological  advances as they occur.  Additionally,  due to the rapid
rate at which  technology  advances,  the Company's  equipment and inventory may
become outdated  rapidly,  preventing or impeding the Company from realizing its
full potential.

Forward-Looking Statements

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

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

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

                                       14
<PAGE>


PART II

Item 1. Legal Proceedings.

     At June 30, 2003, the Company had no outstanding legal proceedings.  During
the  quarter  ended  June 30,  2003,  the  Company  entered  into  two  separate
settlement  agreements  with two  current  shareholders  and  former  owners  of
companies acquired by the Company in 1999. These agreements end all disputes and
litigation  among the parties.  As part of the settlements the Company agreed to
compensate  one party with 925,694  restricted  shares of common stock,  $72,000
payable  over 24 months and  $42,500  payable in a lump sum on April 1, 2005 and
convertible  at the holder's  option into shares of the Company's  voting common
stock in accordance with the settlement provisions.  The other party was granted
1,000,000  restricted shares of common stock, $30,000 payable over 12 months and
$30,000  payable in a lump sum on April 15, 2004 and convertible at the holder's
option into shares of the Company's  voting common stock in accordance  with the
settlement provisions.  As part of the settlement agreements both parties agreed
to release and indemnify the Company, its officers and directors from any action
or claim  relating to the past  matters now and in the  future.  The  negotiated
settlements  resulted in a loss of $92,768  being  recorded in the quarter ended
June 30, 2003.

     Subsequent  to June 30,  2003,  the Company  settled a dispute  with former
officer  and board  member  Thomas E.  Glasgow.  No legal  action had been filed
related to this dispute and both parties determined to settle their differences.
Payment of $40,000 was made to Mr.  Glasgow in exchange for complete  release of
all claims against the Company. His employment contract was terminated.

Item 2. Changes in Securities and Use of Proceeds

     The  Company  engaged  the  services of an  outsourced  management  team in
February 2003 from Partners  Resource  Management,  LLC and issued 9 millions of
shares of restricted 144 Common Stock of the Company as an incentive to Partners
Resource  Management  to  participate  in the Company.  For this  offering,  the
Company  relied upon the 506 Exemption of the Securities Act of 1933 and Section
14-4-140 of the State of Arizona Code.

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, 2003, 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:

                                       15


<PAGE>

Exhibit No.                Description
--------------------------------------------------------------------------------

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.

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.

                                       16
<PAGE>


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.

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

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

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

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

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

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

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

10.27    [5]     Addendum to City Market Store Equipment Maintenance Contract
                 with King Soopers dated July 15 2001.

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

                                       17
<PAGE>

10.29    [5]     Indemnification Agreement between the Company and Jerry M.
                 Washburn dated January 3 2001.

10.30    [5]     Indemnification Agreement between the Company and Thomas E.
                 Glasgow dated January 3 2001.

10.31    [5]     Employment agreement between the Company and Thomas E.
                 Glasgow dated January 3, 2001.

23.1     [4]     Consent of Marshall & Weber, CPA's, P.L.C.

23.2     [4]     Consent of Mintmire & Associates  (contained in the opinion
                 filed as Exhibit 5.1)

10.32    *       Property lease amendment with EJM Development dated 01,
                 July 2002.

10.33    *       Property lease with Broadway Business Center dated
                 October 1, 2002.

10.34    *       Employment leasing agreement with Gevity HR dated
                 December 26, 2002.

10.35            Outsource Management agreement with Partners Resource
                 Management dated February 13, 2003.

10.36    *       Agreement with Maurice and Judith Mallette dated April 1,2003.

10.37    *       Agreement with Ahlwyss and Pamela Fulton daed May 19, 2003.

99.1     *       Certification  of Disclosure by the Company's Chief
                 Executive Officer

99.2     *       Certification  of Disclosure by the Company's Chief Financial
                 Officer

99.3     *       Sarbanes-Oxley Act Section 302 (a) Certification - CEO

99.4     *       Sarbanes-Oxley Act Section 302 (a) Certification - CFO


                                       18

[1]  Filed as an  exhibit to the  Company  Registration  Statement  on Form 10SB
     filed July 10, 2000.

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

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

[4]  Filed as an exhibit to the  Company's  Registration  Statement  on Form S-8
     filed July 25, 2001.

[5]  Filed as an Exhibit to the  Company's  Annual  Report on Form 10K-SB  filed
     April 3, 2002.

(* filed herewith)

     (b) No reports on Form 8-K have been filed.


                                       19
<PAGE>
--------------------------------------------------------------------------------
                                   SIGNATURES
--------------------------------------------------------------------------------

     In accordance with Section 13 and 15(d) 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: Aug 13, 2003                         By: /s/ Donald E. McIntyre
--------------------------------------------------------------------------------
                                           Donald E. McIntyre, Chairman


                                           By: /s/ Michael L. Hirschey
--------------------------------------------------------------------------------
                                           Michael L. Hirschey, Chief Executive
                                           Officer and Director


                                           By: /s/ Jerry M. Washburn
--------------------------------------------------------------------------------
                                           Jerry M. Washburn, Director



     Pursuant to the  requirements  of the  Exchange  Act,  this report has been
signed by the following persons in the capacities and on the dates indicated.

Signature                       Title                           Date
---------                       -----                           ----

/s/ Donald E. McIntyre
-----------------------         Chairman                        Aug 13, 2003
Donald E. McIntyre


/s/ Michael L. Hirschey         Chief Executive Officer         Aug 13, 2003
-----------------------         and Director
Michael L. Hirschey


/s/ Jerry M. Washburn
-----------------------         Director                        Aug 13, 2003
Jerry M. Washburn


                                       20