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: September 30, 2002
Commission file no.: 000-30969

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

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

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

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

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

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 85028-6025 (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 September 30, 2002,  there were  26,853,317  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
                           September 30, 2002 and 2001

                                   (Unaudited)

<PAGE>

ONESOURCE TECHNOLOGIES, INC.



TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                Page
<S>                                                             <C>
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001         2

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001                   3

FOOTNOTES                                                       4

</TABLE>

<PAGE>

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

ASSETS

<TABLE>
<CAPTION>
<S>                                     <C>
CURRENT ASSETS:

  Cash                                  $ 94,117
  Accounts receivable                    254,598
  Inventories                            225,474
  Other current assets                    11,673
                                        --------------
    Total current assets                 585,862
                                        --------------

PROPERTY AND EQUIPMENT, net of
accumulated depreciation of $ 188,470    127,699

GOODWILL                                 235,074

DEFERRED INCOME TAXES                    140,187
                                                                                                                      ,528
OTHER ASSETS                               3,528
                                        -------------
TOTAL ASSETS                            $1,092,349
                                        ==============

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:
  Accounts payable                      $ 171,614
  Accrued expenses and other liabilities  322,734
  Deferred revenue                        168,471
  Bank line of credit                      50,000
  Current portion capital leases            1,787
  Current portion of debt                 939,392
                                        --------------
    Total current liabilities            1,653,997
                                        --------------
INSTALLMENT NOTES - LONG-TERM PORTION                                                                           4,776

TOTAL LIABILITIES                        1,658,773
                                        --------------
STOCKHOLDERS' DEFICIT
  Preferred Stock, $.001 par value,
    1,000,000 shares authorized, none issued
  Common Stock, $.001 par value,
    50,000,000 shares authorized,
    26,853,317 issued and outstanding
    at September 30, 2002                   26,853
  Paid in capital                        2,703,794
  Accumulated deficit                   (3,297,071)
                                        --------------
                                          (566,424)
                                        --------------
TOTAL LIABILITIES AND STOCKHOLDERS'
  DEFICIT                               $1,092,349
                                        ==============

</TABLE>

The accompanying notes are an integral part of this statement

<PAGE>

ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
FOR THE THREE AND NINE MONTHS ENDING SEPTEMBER 30

<TABLE>
<CAPTION>
<S>                                <C>              <C>                  <C>              <C>
                                                    Restated                              Restated
                                   3rd Qtr          3rd Qtr              YTD              YTD
                                   2002             2001                 2002             2001
                                   ----------       ------------         ----------       ------------
REVENUE, net                       759,615          712,556              2,159,456        2,055,502
COST OF REVENUE                    491,912          408,824              1,392,013        1,168,323
                                   ----------       ------------         ----------       ------------
     GROSS PROFIT                  267,703          303,732                767,443          887,179

GENERAL AND ADMINISTRATIVE
EXPENSES                           193,417          247,751                640,744          879,776
SELLING AND MARKETING EXPENSES       1,500           46,599                 19,486          140,682
                                   ----------       ------------         ----------        -----------
     Operating Income (Loss)        72,786            9,382                107,213         (133,279)

OTHER INCOME (EXPENSE)
  Interest expense                 (35,059)         (39,432)               (99,891)        (197,952)
  Other income (expense)            (1,098)           7,692               (127,589)         (20,221)
                                   ----------       ------------         ----------        -----------
     Total other expense           (36,157)         (31,740)              (127,480)        (218,173)

PROFIT/(LOSS) BEFORE DISCONTINUED
OPERATION AND                       36,629          (22,358)               (20,267)        (351,452)
INCOME TAXES
LOSS FROM DISCONTINUED OPERATION
 Loss from operations of Integration
 Division                                -           (9,107)                     -          (73,260)
 Estimated gain from disposal of
   net assets
 Integration Division                    -                -                      -           24,448
                                    ---------        ------------         ---------        -----------
 Total Loss from Discontinued
   Operation                             -           (9,107)                     -          (48,812)
NET PROFIT (LOSS)                   36,629           (31,465)              (20,267)        (400,264)
                                    =========        ============         =========        ===========
LOSS PER SHARE -
     Basic before loss form
      discontinued operation          0.00            (0.00)                 (0.00)           (0.02)
     Loss from discontinued operation   **               **                     **               **
     Net loss                         0.00            (0.00)                 (0.00)           (0.02)

     Diluted before loss form discontinued                                                                              -
       operation                      0.00             0.00                   0.00                -
     Loss from discontinued operation   **               **                     **               **
     Net loss                         0.00            (0.00)                 (0.00)           (0.02)

<PAGE>

Weighted Average Shares Outstanding:
  Basic                            25,940,650        20,634,789           25,065,002       19,951,500
  Diluted                          26,048,650        20,634,789           25,065,002       19,951,500
   **Less than $0.00 per share

</TABLE>

The accompanying notes are an integral part of this statement

<PAGE>

ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
THE NINE MONTHS ENDED SEPTEMBER 30

<TABLE>
<CAPTION>
<S>                                                     <C>             <C>
                                                                        Restated
                                                        2002            2001
                                                        ---------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                              $(20,267)       $(400,264)
  Adjustments to reconcile net loss to net cash
    provided (used) by operations
      Loss from discontinued operation                         -           48,812
      Loss on disposal of fixed assets                    14,018                -
      Depreciation/Amortization                           51,560           43,637
      Amortization of deferred financing costs                 -           99,979
      Stock issuances for services                        20,680          186,598
      Non cash accrued expenses and other liabilities          -           62,090
      Changes in assets and liabilities (net of acquisitions):
        Deferred taxes                                         -                -
          Accounts receivable                             57,397         (151,727)
          Inventory                                      (16,429)        (124,620)
          Other current assets                            12,380            7,253
          Other assets                                    (2,205)        (144,256)
          Accounts payable                              (164,211)         (26,585)
          Accrued expenses and other liabilities          (3,494)           4,895
          Deferred revenue                                28,845           (3,743)
                                                        ---------------------------------
            Net cash (used) provided by continuing
              operating activities                       (21,726)        (397,931)
                                                        ---------------------------------
            Net cash (used) provided by discontinued
              operating activies                              -           (74,185)
                                                        ---------------------------------
NET CASH Provided (used) by Operating Activities         (21,726)        (472,116)
                                                        ---------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
      Purchases of property and equipment                   (630)         (19,916)
      Proceeds from disposal of equipment                  5,500                -
                                                                                -
                                                        ---------------------------------
            Net cash provided (used) by investing
              activities                                   4,870          (19,916)
                                                        ---------------------------------
<PAGE>

CASH FLOWS FROM FINANCING ACTIVITIES:
    Principal payments on capital lease obligations       (7,425)               -
    Proceeds on notes payable                            119,000          385,516
    Principal payments on notes payable                  (76,035)         (61,377)
      Net cash provided (used) by financing activities    35,540          324,139
                                                        ---------------------------------
INCREASE (DECREASE) IN CASH                               18,684         (167,893)

CASH, January 1                                           75,433          176,441
CASH, September 30                                        94,117            8,548
                                                        =================================

</TABLE>

The accompanying notes are an integral part of this statement .

<PAGE>

ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
THE NINE MONTHS ENDED SEPTEMBER 30

<TABLE>
<CAPTION>
<S>                                                                     <C>             <C>
                                                                                        Restated
                                                                        2002            2001
                                                                   --------------------------------

SUPPLEMENTAL CASH FLOW INFORMATION
             Interest Paid                                              $44,208          43,412

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
    Common stock issued for services                                    $20,500         186,598
    Common stock issued for note conversion                             $   180               -
    Debt extinguished in exchange for property                          $12,771               -
    Accounts payable conversion to debt                                 $20,334               -

</TABLE>

The accompanying notes are an integral part of this statement

<PAGE>

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

1. BASIS OF PRESENTATION

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

2. RESTATEMENT

The  accompanying  financial  statements for the three and six months ended June
30,  2001  have been  restated  to c errors  that were made a) in the  amount of
expense that was  attributed  to Common Stock of the Company that was orrect for
legal and other  services,  b) the application of cash received for Common Stock
subscribed and c) other acissued  errors that came to light during the Company's
conversion of its accounting and information  systems in late 20counting  effect
of these  restatements  was to increase  the Net Loss for the three months ($six
months  ended June 30,  20001.  The $184,059  ($0.01 per share),  net of related
income tax benefit of $20,445 and to increase Subscriptions Funded 1 by December
31, 1999 by $130,000.  These  adjustments were reflected in the annual financial
statements for the yeAfter December 31, 2001. ar ended

3. DISCONTINUED OPERATION

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

4. STOCKHOLDERS' DEFICIT

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

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

</TABLE>

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

5. BUSINESS SEGMENTS

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

<PAGE>

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

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

                                    ********
</TABLE>

<PAGE>

Item 2. Management's Discussion and Analysis of Operations

Introduction

The financial  results  discussed herein include the consolidated  operations of
OneSource Technologies,  Inc, (hereinafter "OneSource" and/or "the Company") for
the nine months ended September 30, 2002 and 2001. OneSource is engaged in three
closely  related and  complimentary  lines of technology and business  equipment
support  activities;  1)  equipment  maintenance  services,  ("Maintenance")  2)
equipment installation  services,  ("Installation") and 3) value added equipment
supply sales,  ("Supplies").  OneSource is a leader in the technology  equipment
maintenance  and service  industry and is the  inventor of the unique  OneSource
Flat-Rate Blanket  Maintenance  System<-1-212>.  This program provides customers
with a Single  Source  for all  general  office,  computer  and  peripheral  and
industry specific equipment  technology  maintenance,  installation and supplies
products.

In April 2001 as part of  management's  refocused  emphasis on its core business
opportunities  the  Company  discontinued  the  operations  of its wholly  owned
subsidiary Net Express,  Inc., (NEI). For comparative  purposes the consolidated
financial  statements  of the Company for the three,  six -and nine months ended
September  30, 2001 have been  restated  to show the costs  incurred in shutting
down the segment  separately as discontinued  operations in the following tables
of financial data as of September 30, 2001.  Fiscal 2001 financial  results have
also been restated to correct  certain errors that were made a) in the amount of
expense that was  attributed  to Common Stock of the Company that was issued for
legal and other  services,  b) the application of cash received for Common Stock
subscribed  and c)  other  accounting  errors  that  came to  light  during  the
Company's  conversion of its accounting and  information  systems  conversion in
2001. The effect of these restatements was to increase the Net Loss for the nine
months ended  September  30, 2001 by $161,936  ($0.01 per share) and to increase
Subscriptions Funded After December 31, 1999 by $130,000. These adjustments were
recorded in the consolidated financial statements as of December 31, 2001.

Summary of Operations

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

<TABLE>
<CAPTION>
<S>                                                             <C>                     <C>
Summary of Operations                                           2002                    2001 Restated
------------------------------------------------------------------------------------------------------------------
Revenues                                                        $2,159,456              $2,055,502
Cost of Revenue                                                 $1,392,013              $1,168,323
Gross Margin                                                      $767,443                $887,179
Selling General and Administrative Costs                          $660,230              $1,020,458
Operating Income (Loss) before Discontinued Operation             $107,213               $(133,279)
Other Income (Expense)                                           $(127,480)              $(218,173)
Deferred tax benefit                                                     -                  24,448
Loss from discontinued operations                                        -                $(73,260)
Net Income (Loss)                                                 $(20,267)              $(400,264)
------------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>

Fiscal 2002 results reflect  management's  changed focus and strategic  emphasis
for the Company. In January 2001 the Board of Directors installed a new Chairman
to lead and direct a  restructuring  of  operations  to position the Company for
profitable  future  results  and granted  him  authority  to make any changes he
deemed  warranted to accomplish  this  objective.  Operations for the first nine
months of 2002 show  significantly  improved  results  with a ninety  five (95%)
decrease in the 2002 Net Loss compared to September 30, 2001.

While consolidated revenues increase slightly by about five percent (5%) in 2002
compared to 2001, consolidated cost of revenues increased nineteen percent (19%)
resulting in lower  consolidated  gross profit by fourteen percent (14%) for the
nine months ended  September 30, 2002 compared to the same period in 2001.  This
reflects the continuing high parts usage rates (including warranty  expirations)
that the Company  continued to absorb in its  maintenance  services  operations.
While this cost concern continues through the third quarter, changes implemented
early in the second quarter of 2002 were starting to show improvement by the end
of the third  quarter as gross margins of the  maintenance  division in the nine
months ended  September 30, 2002 increased  significantly  to 36% versus 23% for
the first three months of 2002. Management will continue to focus on this aspect
of the service  operations in order to continue to bring down parts usage rates.
Another  factor in the decreased  gross profit for third quarter is the addition
of a Regional  Service  Manager  and the  addition  of service  technicians  and
technician  training  associated  with an increase  in an  existing  maintenance
contract late in the quarter.

The most  significant  factor  contributing  to the improved  overall  operating
results is the  thirty-five  percent  (35%)  decrease  in  Selling,  General and
Administrative  costs in the nine months ended  September  30, 2002  compared to
2001.  While the approximate  $360 thousand  decrease is substantial the Company
continues  to absorb  high  General  and  Administrative  costs as a percent  of
revenues and management continues to focus on implementing measures to bring the
aggregate portion of G&A costs more in line with the Company's business model.

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

<PAGE>

Revenues

Consolidated  revenues increased slightly in the nine months ended September 30,
2002  compared to the same period in 2001 as a result of  increased  revenues in
the maintenance  divisions.  Supply division revenues fell twelve (12%) compared
to 2001, well below forecasted  results in the three quarters of 2002,  although
the maintenance  division  results met  expectations.  The following  tabulation
shows the numbers:

<TABLE>
<CAPTION>
<S>                                     <C>             <C>
Revenues                                2002            2001 Restated
--------------------------------------------------------------------------------
   Maintenance                          $1,576,290      $1,390,238
   Supplies                             $  583,166      $  665,263
--------------------------------------------------------------------------------
       Total                            $2,159,456      $2,055,501
--------------------------------------------------------------------------------

</TABLE>

<PAGE>

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

The thirteen  percent (13%) increase in maintenance  revenues for the first nine
months  of 2002  is the  result  of  added  service  commitments  from  existing
customers  and  reflects  the  positive  benefits  of changes  the  Company  has
implemented that have improved maintenance  customer  satisfaction levels to the
highest in the Company's history.  Installation services were suspended in early
fiscal  2001 so  management  could  focus the  Company's  limited  resources  on
improving and strengthening the Company's core maintenance and supplies division
operations. To the degree installation  opportunities arise in line with present
geographic and staffing resources the Company will pursue and engage them but in
the  near-term  management  is  concentrating  on the  maintenance  and supplies
divisions.  Now that operational  efficiencies and customer  satisfaction levels
are  substantively  improved  management is focusing greater  attention  growing
revenues of these  divisions  via both  current  account  extensions  as well as
through out-bound sales and marketing efforts.

Supply  division  revenues  decreased  twelve percent (12%) in nine months ended
September 30, 2002 compared to the same period in 2001, and  significantly  less
than management had forecasted for the division.  In addition to the distraction
of the division's GM noted above,  supply division  revenues were also adversely
affected by pricing errors of newly added products during the period. These cost
and pricing problems have been corrected and additional controls put in place so
results  should  improve  in  prospective  quarters.  By the  end of  June,  the
division's  web-based  distribution  delivery  system was completely on line and
will  significantly  enhance division  revenue  expansion to existing as well as
potential new accounts.  In early September,  the division acquired the business
of a large  company,  which  also  entered  into a  service  agreement  with the
company's maintenance division.  Although it is too early to see the full impact
of this new account,  management  believes it will  contribute  significant  new
volume and positive cash flow.

Operating Costs and Gross Margins

As noted, consolidated operating margins for the nine months ended September 30,
2002 were lower  compared to the nine months ended  September  30,  2001.  Gross
margins for the nine months ended September 30, 2002, while still down from 2001
overall rates improved significantly over the first quarter rates to thirty five
percent  (35%)versus  twenty-eight  percent (28%).  Inventory  control and field
service management issues related to the continuing restructuring changes in the
maintenance  division and distracted  inventory and remanufacturing  controls in
the supply  division in the quarter account for the lower margins in 2002 versus
2001 but  improvements  in the latest  quarter  document an improving  trend and
confirms the positive effects of the restructuring  changes. Once the effects of
these changes are fully rooted management  believes margins will return to their
historically higher levels. These improvements focus on strengthening management
oversight and information  system and process  infrastructures  to assure better
inventory  and call routing and dispatch  control in the  maintenance  division.
Selling, General and Administrative Costs

<PAGE>

Improvements  continued  in this  category  of costs in the  nine  months  ended
September 30, 2002 as  management  continued to bring these costs down to levels
more  in  line  with  the  Company's   present  level  of  overall   operations.
Consolidated  Selling  and G&A costs  decreased  almost $360  thousand  from the
levels of the prior  year,  a  thirty-five  percent  (35%)  decline.  While down
substantially  from the prior year these  costs at 39% of gross  revenues in the
first quarter and 31% in the third quarter ended September 30, 2002 are slightly
higher than the Company's business model of about 30% contemplates.

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

<TABLE>
<CAPTION>
<S>                                                     <C>             <C>
General and Administrative                              2002            2001 Restated
---------------------------------------------------------------------------------------
Salaries Wages and Benefits                             $353,039        $566,833
Facilities                                              $110,368        $171,494
Legal and Professional                                  $ 92,532        $ 34,100
Telecommunication Costs                                 $ 53,778        $ 51,861
Travel and Entertainment                                $ 13,900        $ 21,373
Other                                                   $ 17,128        $ 34,115
---------------------------------------------------------------------------------------
Total                                                   $640,744        $879,776
---------------------------------------------------------------------------------------

</TABLE>

All cost  categories  are lower in the nine  months  ended  September  30,  2002
compared  to the same  period  in 2001  except  Legal  and  Other.  The two most
significant areas of savings were overhead  salaries and facility costs.  Salary
and benefit costs in fiscal 2001 included a $68 thousand  charge for  additional
trust fund taxes  related to periods prior to 2001 that was accrued in the first
quarter of 2001.  Without this charge  current  2001  results  would be less but
still not  comparable to 2002 levels.  The remaining  difference  reflects staff
reductions  that were made in the latter half of 2001, and first half of 2002 to
reduce overhead staff and their related costs. Company staff has been reduced to
33  employees  in  2002  from  56 at the  beginning  of  2001  with  most of the
reductions  being  made in the  general  overhead  category.  All other  general
administrative  costs are down reflecting  improvements and cuts that management
has installed during fiscal 2001 to curtail and reduce operating costs, with the
exception of a 3% increase in  telecommunications  due to additional  cell phone
for additional service technicians.  Substantially all these reductions occurred
in the last  quarter  of 2001 and into the first  half of 2002.  These  declines
further  document  the  improved  effects  of  management's  infrastructure  and
operational changes.

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

<PAGE>

<TABLE>
<CAPTION>
<S>                                                     <C>                     <C>
Sales and Marketing                                     2002                    2001 Restated
----------------------------------------------------------------------------------------------
Salaries, Commissions and Benefits                      $14,016                 $ 98,534
Advertising and Promotion                               $ 4,951                 $ 29,664
Travel and Entertainment                                $   519                 $ 12,484
----------------------------------------------------------------------------------------------
Total                                                   $19,486                 $140,682
----------------------------------------------------------------------------------------------

</TABLE>

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

Loss from Continuing Operations

While  the  Company  again  incurred  a loss  from  continuing  operations  ($20
thousand) before taxes for the nine months ended September 30, 2002,  operations
for the three  months  ended  September  30,  2002  generated  net income of $37
thousand  versus  a loss for the  same  period  of $31  thousand  in 2001.  This
dramatic turn around is due to a) some improvement in division  operating rates,
and b) the  substantial  decrease  in overhead  costs for the nine months  ended
September 30, 2002 compared to 2001.

Interest and Other Income (Expense)

<TABLE>
<CAPTION>
<S>                            <C>         <C>
Other Income (Expense)         2002        2001 Restated
------------------------------------------------------------
Interest                       $(99,891)   $(197,952)
Other                          $(27,589)   $ (20,221)
------------------------------------------------------------
Total                          $(127,480)  $(221,173)
------------------------------------------------------------

</TABLE>

Interest  costs  declined in the nine months ended  September  30, 2002 by about
half  compared to the nine months  ended  September  30, 2001 mainly  because of
investment  "sweeteners"  that  were  paid in 2001 to  secure  funding.  No such
charges were incurred in 2002, although additional debt of $69 thousand has been
added into the Company since the third quarter of 2001. Interest expense relates
to Company short-term  borrowings invested to support funding needed in 2000 and
2001,  and  2002  to  cover  the  Company's   turnaround  and  continues.   Also
contributing  to the decline in interest cost is the Company's  decision in 2001
to discontinue granting stock incentives to lenders for debt funding.

Liquidity and Capital Resources

The following table sets forth selected  financial  condition  information as of
September 30, 2002 compared to December 31, 2001:

<TABLE>
<CAPTION>
<S>                                           <C>                 <C>
Balance Sheet                                 2002                2001 Restated
Working Capital                               ($1,068,135)        ($1,129,210)
Total Assets                                   $1,092,349          $1,208,027
Debt Obligations                                 $994,168            $952,851)
Shareholders' (Deficit)                         ($566,424)          ($566,837)

</TABLE>

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

During the last quarter of 2001 cash flow short falls dropped significantly with
the addition of new maintenance business coming on-line in the quarter.  Monthly
cash  deficiency in the first quarter  remained at about $25 thousand versus the
$85 to $100 thousand a month negative cash flow  throughout much of 2001, but by
the end of June 2002  monthly  cash flow was  positive for the first time in two
and half years.  Management believes it can continue to manage this shortfall in
the near-term  with  additional new business that is pending while it negotiates
additional funding opportunities intended to recapitalize the Company.

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

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

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

<PAGE>

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

Employees

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

Research and Development Plans

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

Forward-Looking Statements

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

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

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

<PAGE>

PART II

Item 1. Legal Proceedings.

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

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

Item 2. Changes in Securities and Use of Proceeds

None.

Item 3. Defaults in Senior Securities

None.

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

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

Item 5. Other Information

None

Item 6. Exhibits and Reports on Form 8-K

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

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

<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

10.13   [1]       Investor Rights Agreement with Blackwater Capital Partners II, L.P. dated May 26,
                  1999

<PAGE>

10.14   [1]       Share Exchange Agreement with Cartridge Care, Inc. dated September 1, 1999.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

10.31   [5]       Employment agreement between the Company and Thomas E. Glasgow dated
                  January 4, 2001.

<PAGE>

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

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

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

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

         [5]      Filed as an exhibit to the Company's Annual Report on Form 10-KSB
                  filed April 10, 2002.

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

</TABLE>

<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: November 12, 2002         By:/S/ Thomas E. Glasgow
                                   ---------------------------------------------
                                   Thomas E. Glasgow, Chairman

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

                                By:/S/ Donald E. McIntyre
                                   ---------------------------------------------
                                   Donald E. McIntyre, Director

I am the Chief  Executive  Officer of the  Company and by signing the above form
10-  QSB,certifythat  the report fully  complies  with all the  requirements  of
section 13(a) or 15(d) of the Exchange Act and that information contained in the
report fairly presents,  in all material respects,  the financial  condition and
results of operations of the issuer.

                                   /S/ Thomas E. Glasgow
                                   --------------------------------------------
                                   Acting Chief Executive Officer


I am the Chief  Financial  Officer of the  Company and by signing the above Form
10-SB,  I certify that the report fully  complies with all the  requirements  of
section 13(a) or 15(d) of the Exchange Act and that information contained in the
report fairly presents,  in all material respects,  the financial  condition and
results of operations of the issuer.

                                  /S/ Jerry M. Washburn
                                  ---------------------------------------------
                                  Acting Chief Financial Officer

<PAGE>