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, 2004
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.)

       15730 North 83rd Way, Suite 104
       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
                     11801 North Tatum Boulevard, Suite 124
                             Phoenix, AZ 85028-1612
                     Tel: (602) 494-7976 Fax: (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, 2004, there were 40,292,623 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, 2004 and 2003

                                   (Unaudited)










<PAGE>

ONESOURCE TECHNOLOGIES, INC.



TABLE OF CONTENTS

                                                                            Page

CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2004                                                         1

CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE
SIX MONTHS ENDED JUNE 30, 2004 AND 2003                                     2

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003                                 3

FOOTNOTES                                                                   4




<PAGE>



<TABLE>
<CAPTION>
ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2004
(UNAUDITED)
--------------------------------------------------------------------------------------------

ASSETS

CURRENT ASSETS:
<S>                                                                              <C>
    Cash                                                                         $    86,791
    Accounts receivable                                                              265,308
    Inventories                                                                      205,939
    Other current assets                                                               5,716
                                                                                 -----------
        Total current assets                                                         563,754
                                                                                 -----------


PROPERTY AND EQUIPMENT, net of accumulated depreciation of $ 115,503                  98,291
DEFERRED INCOME TAXES                                                                140,187
OTHER ASSETS                                                                           9,413
                                                                                 -----------

TOTAL ASSETS                                                                     $   811,645
                                                                                 ===========

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:

    Accounts payable                                                             $    94,421
    Accrued expenses and other liabilities                                           337,967
    Deferred revenue                                                                 214,582
    Current portion of debt                                                          461,428
                                                                                 -----------
         Total current liabilities                                                 1,108,398
                                                                                 -----------


INSTALLMENT NOTES - LONG-TERM PORTION                                                605,000

                                                                                 -----------
TOTAL LIABILITIES                                                                  1,713,398
                                                                                 -----------

STOCKHOLDERS' DEFICIT:
    Preferred Stock, $.001 par value, 1,000,000 shares authorized, none issued
    Common Stock, $.001 par value, 50,000,000 shares authorized, 40,292,623 --
       issued and outstanding at June 30, 2004                                        40,293
    Paid in capital                                                                2,884,790

    Deferred stock compensation                                                      (60,000)
    Accumulated deficit                                                           (3,766,836)
                                                                                 -----------
                                                                                    (901,753)
                                                                                 -----------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                      $   811,645
                                                                                 ===========
</TABLE>

         The accompanying notes are an integral part of this statement.

                                       1
<PAGE>
<TABLE>
<CAPTION>

ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30
(UNAUDITED)
-------------------------------------------------------------------------------------------------------


                                            2ND QTR          2ND QTR           YTD             YTD
                                              2004            2003             2004            2003
                                           ------------------------------------------------------------
<S>                                        <C>             <C>             <C>             <C>
REVENUE, net                               $    783,693    $    771,322    $  1,558,101    $  1,548,079

COST OF REVENUE                                 469,307         471,348         906,456         952,116
                                           ------------------------------------------------------------
                    GROSS PROFIT                314,386         299,974         651,645         595,963

GENERAL AND ADMINISTRATIVE EXPENSES             195,299         213,519         416,995         481,830
SELLING AND MARKETING EXPENSES                   88,457          45,414         207,918          50,644
                                           ------------------------------------------------------------
                    Operating income             30,630         41,041           26,732          63,489

OTHER INCOME (EXPENSE):
    Interest expense                            (26,515)        (31,516)        (50,028)        (66,395)
    Merger related expense                      (41,535)          --            (41,535)           --
    Stock issuance for BOD                      (33,060)          --            (33,060)           --
    Other income (expense)                        3,155         ( 1,247)         26,028         ( 1,165)
    Loss from litigation settlements               --           (92,768)          --            (92,768)
                                           ------------------------------------------------------------
                     Total other expense       ( 97,955)       (125,531)        (98,595)       (160,328)

                                           ------------------------------------------------------------
NET INCOME (LOSS)                          $    (67,325)   $    (84,490)     $  (71,863)   $    (96,840)
                                           ============================================================

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

Weighted Average Shares Outstanding:

                    Basic                    40,092,183      37,246,402      39,454,271      32,981,294
                    Diluted                  40,092,183      37,246,402      39,454,271      32,981,294
</TABLE>

          **Less than $0.01 per share



        The accompanying notes are an integral part of these statements.


                                       2
<PAGE>

<TABLE>
<CAPTION>

ONESOURCE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
THE SIX MONTHS ENDED JUNE 30
(UNAUDITED)
-------------------------------------------------------------------------------------------------------



                                                                                    2004        2003
                                                                                -----------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                              <C>          <C>
     Net loss                                                                    $ (71,864)   $ (96,840)
     Adjustments to reconcile net loss to net cash used by operations -

                 Gain on disposal of fixed assets                                  (27,238)         --
                 Depreciation and amortization                                      25,370       22,187
                 Stock issuances to consultants for services                        53,310       58,514
                    Non-cash portion of litigation settlements                         --        64,254
                 Changes in assets and liabilities:
                             Accounts receivable                                    43,223       33,216
                             Inventory                                             (26,355)      (2,446)
                             Other current assets                                   (3,966)       7,336
                             Other assets                                           (6,385)      (2,150)
                             Accounts payable                                       45,632        4,635
                             Accrued expenses and other liabilities                 24,903      (28,962)
                             Deferred revenue                                       (6,317)      (3,672)
                                                                                -----------------------
                               Net cash provided by operating
                               activities                                           50,313       56,092
                                                                                -----------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
               Purchases of property and equipment                                 (56,505)      (5,060)
               Proceeds from disposal of equipment                                  24,662           --
                                                                                -----------------------

                                       Net cash (used) provided by investing       (31,843)      (5,060)
                                       activities

CASH FLOWS FROM FINANCING ACTIVITIES:

                     Proceeds from notes payable                                    17,788       15,832
                     Principal payments on notes payable                           (41,375)     (82,525)
                                                                                -----------------------
                                       Net cash (used) provided by financing
                                       activities                                  (23,587)     (66,693)
                                                                                -----------------------


INCREASE/(DECREASE) IN CASH                                                         (5,117)     (15,661)

CASH, at January 1,                                                                 91,907       55,267
                                                                                -----------------------
CASH, at June 30,                                                                $  86,791    $  39,606
                                                                                =======================

</TABLE>


        The accompanying notes are an integral part of these statements.


                                       3
<PAGE>


ONESOURCE TECHNOLOGIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE SIX MONTHS ENDED JUNE 30, 2004 and 2003
----------------------------------------------


     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, 2003.
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. 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

<TABLE>
<CAPTION>
June 30, 2004 and 2003:

                                  Maintenance      Supplies     Eliminations          Total
                                -------------------------------------------------------------
2004

<S>                              <C>            <C>                              <C>
Revenues                         $ 1,269,836    $   288,265                      $ 1,558,101
Net loss                             (47,035)       (24,828)                         (71,863)
Depreciation and amortization         21,824          3,546                           25,370
Interest                              50,016             12                           50,028
Property & equipment purchases        56,505              0                           56,505
Total Assets                     $ 1,392,502    $   147,655    ($  728,511)      $   811,645


2003

Revenues                         $1,091,458     $   436,621                      $ 1,548,079
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
</TABLE>


                                       4
<PAGE>


     3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Inventories: Inventories consist primarily of used equipment, new and used parts
and supplies and are stated at the lower of cost (specific identification) or
market. Supply inventories consist of finished goods consisting of
remanufactured toner cartridges. These 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.

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.

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

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

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

     4. RELATED PARTY TRANSACTIONS

In the year ended December 31, 2003, the Company entered into an agreement with
Partners Resource Management, LLC ("Partners") for providing management, sales
and administrative services to the Company. Partners Resource Management, LLC's
sole member is Michael L. Hirschey, CEO and Director of the Company. At June 30,
2004, Partners provided 9 full time equivalent personnel to the Company in the
areas of Executive Management, Sales, Operations and Finance. Additionally, the
Company paid Partners $326,500 in the six months ended June 30, 2004 as
management fees and reimbursement of expenses. Partners was not owed any fees or
expenses at June 30, 2004.

     5. MERGER RELATED EXPENSES

In the quarter ended June 30, 2004 the Company incurred approximately $41,000 in
professional fees related to the merger agreement dated June 14, 2004 between
the Company and First Financial Computer Services, Inc. The fees were paid for
legal and financial assistance in conjunction with the agreement and are not
expected to be recurring.

     6. INCOME (LOSS) PER SHARE

     The following presents the computation of basic and diluted earnings per
     share from continuing operations:
<TABLE>
<CAPTION>
                                                Six months ended                         Six months ended
                                                  June 30, 2004                            June 30, 2003
                                        Net                      Per                Net                       Per
                                       Loss       Shares         Share             Loss      Shares         Share
                                    ----------------------------------       --------------------------------------
<S>                                 <C>           <C>           <C>          <C>             <C>             <C>
Net income  (loss)                     $ (71,863)                            $     (96,840)
from continuing operations            ============                                ==========

Basic income (loss) per share
Income (loss) available to common
   stockholders                        $ (71,863)    39,454,271      $ **    $     (96,840) 32,981,294    $ **

Effect of dilutive securities                N/A         N/A                          N/A        N/A
Diluted income (loss) per share        $ (71,863)    39,454,271      $ **    $     (96,840) 32,981,294    $ **
                                       ==========                                 =========
</TABLE>

** Less than $0.01 per share

     Stock options to purchase 2,315,000 and 3,255,000 shares of common stock
     were outstanding at June 30, 2004 and 2003 respectively. These securities
     were excluded from the computation of diluted earnings per share for the
     six months ended June 30, 2004 and 2003 because the effect of their
     inclusion would be anti-dilutive.

                                       5
<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 six month periods ended June 30, 2004 and 2003. OneSource is engaged in two
closely related and complementary lines of technology and business equipment
support activities; 1) equipment maintenance services, ("Maintenance"), and 2)
value added equipment supply sales, ("Supplies"). OneSource is the inventor of
the 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 supply
products.

New Business

In June, 2004 OneSource signed a definitive merger agreement with First
Financial Computer Services, Inc. (hereinafter "FFCS") based in Little Rock,
Arkansas.
FFCS is a single-source provider of equipment sales, leasing and maintenance
services to large, national customers in the financial services industry. The
merger, expected to close in the third quarter of 2004, will significantly
expand the scope of OneSource's operations as well as the breadth of services
OneSource offers its clients. Together, the combined companies will service
customers in over 40 states and be headquartered in Scottsdale, Arizona. FFCS
recorded revenues of $11.8 million (unaudited) for the calendar year 2003.

Summary of Operations

Revenues are virtually the same in the six months ended June 30, 2004 compared
to the same period in fiscal 2003. However, the net loss has declined by over
25% from 2003. The following table summarizes the comparative results:

--------------------------------------------------------------------------------
Summary of Operations                           2004                 2003
--------------------------------------------------------------------------------
   Revenues                                 $ 1,558,101           $ 1,548,079

   Cost of Revenue                              906,456               952,116

   Gross Profit                                 651,645               595,963

   Selling General and Administrative Costs     624,913               532,474

   Operating Income                              26,732                63,489

   Loss from Litigation Settlements                --                 (92,768)

   Other (Expense)                              (98,595)              (67,560)
--------------------------------------------------------------------------------
   Net Loss                                  $  (71,863)          $   (96,840)
--------------------------------------------------------------------------------


While consolidated revenues to date have remained virtually the same in the six
months ended June 30, 2004 as compared to 2003, consolidated cost of revenues
has seen a decrease of nearly 4%. This reflects the continuing efforts to
control parts costs in the maintenance division along with a more efficient use
of our labor resources. Gross margins have continued to increase for the first
six months (42%) compared to the same period in 2003 (38%). Gross margins in the
maintenance division have increased in 2004 to 46% versus 41% for the same
period in 2003. We have been able to increase maintenance revenues by over 16%
in 2004 compared to 2003, while costs of revenues in the maintenance division
have increased only 8% through significant cost controls. General and
Administrative expenses have decreased by 13% in the six months ended June 30,
2004 compared to 2003. This has been accomplished through a strategic review of
all operational areas allowing the Company to reallocate costs into the sales
and marketing departments to improve our sales efforts.


                                       6
<PAGE>


Revenues

Consolidated revenues have remained virtually the same for the six-month period
ended June 30, 2004 compared to the same period in 2003.

------------------------------------------------------------------
Revenues                                  2004           2003
------------------------------------------------------------------
   Maintenance                       $    1,269,836   $  1,091,458

   Supplies                                 288,265        456,621
------------------------------------------------------------------
       Total                         $    1,558,101   $  1,548,079
------------------------------------------------------------------

As reported in the above table, maintenance division revenues for the six-month
period ended June 30, 2004 increased sixteen percent (16%) compared to 2003.
This is the result of the successful contract renewal of a large customer in
Q4-2003 along with the addition of several new contracts.

The supplies division revenues decreased thirty-six percent (36%) in 2004
compared to 2003. The decrease is the result of higher than usual purchases made
by a
customer in the first six months of 2003. In March 2004, the Company has begun
to provide remanufactured cartridges to a Fortune 100 wholesaler which will
allow the continued growth of this division throughout 2004. We expect the
orders from this customer to increase in the third and fourth quarters of 2004.

Now that operational efficiencies and customer satisfaction levels are improved,
management is focusing attention on growing revenues via both current account
extensions as well as through out-bound sales and marketing efforts.

Gross Margins

Consolidated gross margins for the six months ended June 30, 2004 have improved
to forty two percent (42%) compared to thirty eight percent (38%) for the six
months ended June 30, 2003. While the maintenance division increased its gross
profit margin by four percent (5%), the supplies division's gross profit margin
decreased by seven percent (7%). The increase in gross margins in the
maintenance division is due to the Company being able to continually add
incremental revenue while adding costs at a significantly lower amount. The
decrease in gross margins within the supplies division has resulted from
expected orders in the second quarter being shifted to the third quarter.

Selling, General and Administrative Costs

General and administrative costs have decreased approximately thirteen percent
(13%) for the six months ended June 30, 2004 compared to the same period in the
prior year. Most of this $65,000 saving in administrative cost has been
redeployed in the Sales and Marketing areas. The Company will continue to
further penetrate the maintenance market and also pursue relationships with
large users of remanufactured cartridges. The following table summarizes the
significant general and administrative cost categories for the six months ended
June 30, 2004 and 2003:


------------------------------------------------------------------------------
General and Administrative                      2004                2003
------------------------------------------------------------------------------
   Salaries, Wages and Benefits              $    35,708          $  142,187

   Facilities                                     56,267              76,870

   Legal and Professional                        206,381             173,376

   Telecommunication Costs                        28,745              34,883

   Travel and Entertainment                       12,632              10,316

   Other                                          77,262              44,198

------------------------------------------------------------------------------
      Total                                  $   416,995          $  481,830
------------------------------------------------------------------------------

The largest changes in general and administrative costs in 2004 compared to 2003
have occurred in salaries, wages and benefits along with legal and professional
costs. Salaries, wages and benefits have declined over seventy four percent
(74%), or $106,000 as several employees that were on the payroll in 2003 have
been eliminated and new personnel have been brought to the Company through its
relationship with Partners Resource Management, LLC. The charges for these
services are reflected in legal and professional costs. Much of the costs in
legal and professional in 2003 were related to settling various litigation
matters or potential litigation with former owners of entities that the Company
had previously acquired. These charges are not recurring.

Other general and administrative costs have remained relatively steady in the
quarter ended June 30, 2004 compared to the same period in 2003.

The following table summarizes the significant selling and marketing cost
categories for the six months ended June 30, 2004 and 2003, respectively:

--------------------------------------------------------------------------
Selling and Marketing                           2004              2003
--------------------------------------------------------------------------
   Salaries Commissions and Benefits          $  189,378        $ 38,796

   Advertising and Promotion                       5,884           4,018

   Travel and Entertainment                       12,656           7,830
--------------------------------------------------------------------------
      Total                                   $  207,918        $ 50,644
--------------------------------------------------------------------------

The increase in selling and marketing costs is largely the result of the
Company's efforts to significantly drive new revenue growth by implementing and
supporting various sales and marketing initiatives. At this time, most of the
operational, infrastructure and management changes made as part of the
restructuring over the past year are in place.



                                       7
<PAGE>

The following table summarizes other income (expense) for the six months ended
June 30, 2004 and 2003:

Interest and Other Income (Expense)

-----------------------------------------------------------------------------
Other Income (Expense)                           2004                 2003
-----------------------------------------------------------------------------
   Interest                                $    (50,028)        $  ( 66,395)

   Merger related expenses                      (41,535)              ---

   Stock issuance for BOD compensation          (33,060)              ---

   Loss from Litigation Settlements               ---              ( 92,768)

   Other                                         26,028            (  1,165)
-----------------------------------------------------------------------------
      Total                                $    (98,595)        $  (160,328)
-----------------------------------------------------------------------------

Interest cost has decreased over 24% in 2004 compared to 2003 as a result of the
Company no longer accruing interest on a certain obligation of $560,000 due to a
single creditor. This creditor was found guilty of conducting fraudulent
activities by the Arizona Corporation Commission in April 2003. The creditor is
out of business and no longer has communication with the Company. The Company
and its legal counsel believe that due to these circumstances, the Company may
not be obligated to repay this obligation and the creditor will not have legal
means to pursue collection. The creditor has not contacted the Company in over a
year. The Company has ceased accruing interest on this obligation as of October
1, 2003.

In the second quarter of 2004, the Company incurred one-time costs of
approximately $41,000 for various legal and professional fees associated with
the merger agreement between OneSource and FFCS.

In April, 2004 the Board of Directors was awarded compensation in the form of
stock grants. The impact to the Company resulted in a charge of approximately
$33,000.

Other income has increased by over $27,000 in 2004 compared to 2003 as a result
of a gain through an insurance reimbursement related to the disposal of various
equipment lost in a flood. This equipment has been replaced and no significant
negative impact resulted from this business disruption.

Liquidity and Capital Resources
The following table sets forth selected financial condition information as of
June 30, 2004 compared to June 30, 2003:

-------------------------------------------------------------------------------
Balance Sheet                                     2004                 2003
-------------------------------------------------------------------------------
   Working Capital                             $ (544,644)        $ (1,031,188)

   Total Assets                                   811,645            1,137,200

   Debt Obligations                             1,066,428            1,033,120

   Shareholders' Deficit                       $ (901,753)          $ (568,869)
-------------------------------------------------------------------------------

Liquidity and capital resources continued to be closely monitored during the
first six months of 2004.

                                       8
<PAGE>
At June 30, 2004, the Company had accrued approximately $48,000 of unpaid
payroll taxes, interest and penalties resulting from the acquisition of a
company in 2000. The Company is currently making payments of the tax portion of
this amount, which is approximately $15,000. Once the portion related to the
unpaid tax is remitted, the Company will then file an application to the IRS to
have the interest and penalties abated. 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.

Critical Accounting Estimates

The preparation of our financial statements in conformity with accounting
principles generally accepted in the United States of America requires our
management to make certain 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. As such, in accordance with
the use of accounting principles generally accepted in the United States of
America, our actual realized results may differ from management's initial
estimates as reported. A summary of our significant accounting policies are
detailed in the notes to the financial statements which are an integral
component of this filing.

Management evaluates the probability of the utilization of the deferred income
tax asset related to the net operating loss carryforwards. The Company has
estimated a $1,300,000 deferred income tax asset related to net operating loss
carryforwards at June 30, 2004. Management determined that because the Company
has yet to generate taxable income and that the generation of taxable income in
the short term is uncertain, it was appropriate to provide a valuation allowance
for the total deferred income tax asset.

The Company has ceased accruing interest expense on a $560,000 obligation. As
noted above, management believes that there is a significant probability that
the obligation will not be repaid and that the claim has been abandoned.

Employees

At June 30, 2004, the Company employed twenty-five (25) persons. None of these
employees are represented by a labor union for purposes of collective
bargaining. The Company considers its relationship with its employees to be
excellent.


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.


                                       9
<PAGE>
     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.


                                       10

<PAGE>




PART II

Item 1. Legal Proceedings.

         At June 30, 2004, the Company had no outstanding legal proceedings.

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, 2004, 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:

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.


                                       11
<PAGE>
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.

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.


                                       12
<PAGE>
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.

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    [6]     Property lease amendment with EJM Development dated 01,
                 July 2002.

10.33    [6]     Property lease with Broadway Business Center dated
                 October 1, 2002.

10.34    [6]     Employment leasing agreement with Gevity HR dated
                 December 26, 2002.

10.35    [7]     Outsource Management agreement with Partners Resource
                 Management dated February 13, 2003.

10.36    [8]     Agreement with Maurice and Judith Mallette dated April 1,2003.

10.37    [8]     Agreement with Ahlwyss and Pamela Fulton dated May 19, 2003.

10.38    [9]     Agreement with Thomas Glasgow dated July 22, 2003.


                                       13
<PAGE>
10.39    [9]     Accounts Receivable & Security agreement with New Horizon
                 Capital, LLC dated July 3, 2003.

10.40    [9]     Addendum to Accounts Receivable & Security agreement with New
                 Horizon Capital, LLC dated July 3, 2003.

10.41    [10]    Employment leasing agreement with Diversified Human Resources
                 dated October 1, 2003.

10.42    [10]    King Soopers contract renewal and extension dated
                 December 15, 2003.

10.43    *       Lease of Scottsdale, Arizona property dated April 20, 2004.

10.44    *       Merger Agreement among OneSource Technologies, Inc. and First
                 Financial Computer Services, Inc., Robert H. Thomason, Mary H.
                 Thomason, Randy H. Thomason and Jon M. Thomason

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

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

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

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


[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.

[6]       Filed as an Exhibit to the Company's Annual Report on Form 10K-SB
          filed March 26, 2003

[7]       Filed as an Exhibit to the Company's Quarterly Report on Form 10-QSB
          filed May 13, 2003.

[8]       Filed as an Exhibit to the Company's Quarterly Report on Form 10-QSB
          filed August 14, 2003.

[9]       Filed as an Exhibit to the Company's Quarterly Report on Form 10-QSB
          filed November 14, 2003.

[10]      Filed as an Exhibit to the Company's Annual Report on Form 10K-SB
          filed March 29, 2004.

(*)       Filed herewith


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



                                       14
<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: August 16, 2004               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                       August 16, 2004
----------------------
Donald E. McIntyre


/s/ Michael L. Hirschey    Chief Executive Officer        August 16, 2004
-----------------------    and Director
Michael L. Hirschey


/s/ Jerry M. Washburn      Director                       August 16, 2004
-----------------------
Jerry M. Washburn




                                       15
<PAGE>