United States
                       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 fiscal quarter ended:               September 30, 2001
Commission file number:                     0-26449



                           DYNAMIC IMAGING GROUP, INC.
             (Exact name of registrant as specified in its charter)


         Florida                                              65-0903895
(State or other jurisdiction of                            (I.R.S. Employer
 incorporation or organization)                            Identification No.)




                           3418 North Ocean Boulevard
                         Fort Lauderdale, Florida 33308
                    (Address of principal executive offices)
                                   (Zip code)

                                 (954) 564-1133
              (Registrant's telephone number, including area code)


Indicate by check mark whether registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 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

Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of September 30, 2001: 12,086,857 shares of common stock, $.001
par value per share.


<PAGE>
                           DYNAMIC IMAGING GROUP, INC.
                                   FORM 10-QSB
                    QUARTERLY PERIOD ENDED September 30, 2001
                                      INDEX



                                                                            Page

PART I - FINANCIAL INFORMATION

      Item 1 - Consolidated Financial Statements

      Consolidated Balance Sheet (Unaudited)
                  September 30, 2001...................................       3
      Consolidated Statements of Operations (Unaudited)
                  For the Nine and Three Months Ended September 30,
                  2001 and 2000........................................       4
      Consolidated Statements of Cash Flows (Unaudited)
                  For the Nine Months Ended September 30, 2001
                  and 2000.............................................       5

      Notes to Consolidated Financial Statements.......................     6-9

      Item 2 - Management's Discussion and Analysis or
                  Plan of Operations...................................   10-12


PART II - OTHER INFORMATION

      Item 1 - Legal Proceedings.......................................      12

      Item 2 - Changes in Securities and use of Proceeds...............      12

      Item 3 - Default upon Senior Securities..........................      12

      Item 4 - Submission of Matters to a Vote of Security Holders.....      12

      Item 6 - Exhibits and Reports on Form 8-K........................      13

      Signatures.......................................................      13













                                       -2-
<PAGE>
                       DYNAMIC IMAGING GROUP, INC. AND SUBSIDIARY
                               CONSOLIDATED BALANCE SHEET
                                   September 30, 2001
                                      (Uinaudited)



                                         ASSETS

CURRENT ASSETS:
    Cash                                                            $    23,339
    Accounts Receivable (Net of Allowance for
      Doubful Accounts of $369,350)                                      75,370
    Due from related parties                                              4,821
    Inventories                                                           3,805
                                                                    ------------

        Total Current Assets                                            107,335

PROPERTY AND EQUIPMENT - Net                                            105,977
MARKETABLE EQUITY SECURITIES                                              2,000
GOODWILL-Net                                                            150,938
SECURITY DEPOSITS                                                         2,869
                                                                    ------------

        Total Assets                                                $   369,119
                                                                    ============

                      LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:
    Note and Debenture Payable                                      $   480,185
    Accounts Payable and Accrued Expenses                               304,870
    Accrued Salaries                                                    456,211
    Payroll Taxes Payable                                                54,309
    Customer Deposits                                                    16,749
    Due to Related Party                                                 55,247
                                                                    ------------

        Total Current Liabilities                                     1,367,571
                                                                    ------------

STOCKHOLDERS' DEFICIT:
    Preferred Stock (No Par Value; 10,000,000 Shares
        Authorized; No Shares Issued and Outstanding)                         -
    Common Stock ($.001 Par Value; 100,000,000 Shares Authorized;
       12,086,857 Shares Issued and Outstanding)                         12,087
    Additional Paid-in Capital                                        2,753,800
    Accumulated Deficit                                              (3,742,339)
    Less: Unrealized Loss on Investment                                 (22,000)
                                                                    ------------

        Total Stockholders' Deficit                                    (998,452)
                                                                    ------------

        Total Liabilities and Stockholders' Deficit                 $   369,119
                                                                    ============



              See accompanying notes to consolidated financial statements.
                                          -3-
<PAGE>
<TABLE>
<CAPTION>
                                   DYNAMIC IMAGING GROUP, INC. AND SUBSIDIARIES
                                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                                  (Unaudited)



                                                                 For the Three Months        For the Nine Months
                                                                 Ended September 30,          Ended September 30,
                                                             --------------------------------------------------------
                                                                2001             2000          2001          2000
                                                             ------------     -----------   -----------   -----------


<S>                                                          <C>              <C>           <C>           <C>
NET SALES                                                    $   103,201      $  414,710    $  376,782    $  833,012

COST OF SALES                                                     21,571          80,611        64,638       262,228
                                                             ------------     -----------   -----------   -----------

GROSS PROFIT                                                      81,630         334,099       312,144       570,784
                                                             ------------     -----------   -----------   -----------

OPERATING EXPENSES:
    Consulting Fees                                               23,750          33,300       158,202       164,970
    Contract Labor                                                     -         112,710        55,065       235,622
    Depreciation and Amortization                                 12,575          12,876        37,325        25,063
    Professional Fees                                             11,725          10,061        42,105        47,326
    Rent                                                          18,183          19,683        49,200        75,137
    Salaries                                                     125,643         197,106       407,640       429,302
    Other Selling, General and Administrative                    116,932         149,570       201,916       385,367
                                                             ------------     -----------   -----------   -----------
     Total Operating Expenses                                    308,808         535,306       951,453     1,362,787
                                                             ------------     -----------   -----------   -----------

LOSS FROM OPERATIONS                                            (227,178)       (201,207)     (639,309)     (792,003)

OTHER EXPENSES:
     Interest Expense                                             16,898          98,043        47,365       175,030
                                                             ------------     -----------   -----------   -----------

NET LOSS                                                     $  (244,076)     $ (299,250)   $ (686,674)   $ (967,033)
                                                             ============     ===========   ===========   ===========

BASIC AND DILUTED:
      Net Loss Per Common Share                              $     (0.02)     $    (0.04)   $    (0.07)   $    (0.15)
                                                             ============     ===========   ===========   ===========

      Weighted Common Shares Outstanding                      12,603,988       7,146,944    10,059,895     6,416,707
                                                             ============     ===========   ===========   ===========



                               See accompanying notes to consolidated financial statements.
                                                           -4-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                    DYNAMIC IMAGING GROUP, INC. AND SUBSIDIARIES
                                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                    (Unaudited)


                                                                                              For the Nine Months
                                                                                               Ended September 30,
                                                                                        -----------------------------------
                                                                                             2001               2000
                                                                                        ----------------   ----------------

CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                                     <C>                 <C>
    Net Loss                                                                            $      (686,674)    $     (967,033)
    Adjustments to Reconcile Net Loss to Net Cash Flows
        Used in Operating Activities:

           Depreciation and Amortization                                                         37,325             25,063
           Common Stock Issued for Services                                                     152,452            148,851
           Interest Expense Recognized for Issuance of Common Stoxk                                   -            135,000

           (Increase) Decrease in:
             Accounts Receivable                                                                (17,450)          (178,629)
             Inventories                                                                          9,433            (13,864)
             Due from Related Parties                                                             2,648             48,556
             Security Deposits                                                                      121                  -

           Increase (Decrease) in:
              Accounts Payable and Accrued Expenses                                             134,123            137,365
              Accrued Salaries                                                                  311,804            237,094
              Payroll Taxes Payable                                                               1,510             31,906
              Customer Deposits                                                                       -               (690)
                                                                                        ----------------   ----------------

Net Cash Flows Used in Operating Activities                                                     (54,708)          (396,381)
                                                                                        ----------------   ----------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Cash from Acquisition                                                                             -              1,276
    Acquisition of Property and Equipment                                                        (3,592)           (29,945)
                                                                                        ----------------   ----------------

Net Cash Flows Used in Investing Activities                                                      (3,592)           (28,669)
                                                                                        ----------------   ----------------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from Related Parties                                                               29,754             26,500
     Decrease in Bank Overdraft                                                                  (5,772)                 -
     Proceeds from Note and Debenture Payable                                                     6,297            140,000
     Decrease in Subscriptions Receivable                                                             -             30,500
     Proceeds from Issuance of Common Stock                                                      49,000            224,700
                                                                                        ----------------   ----------------

Net Cash Flows Provided by Financing Activities                                                  79,279            421,700
                                                                                        ----------------   ----------------

Net Increase (Decrease ) in Cash                                                                 20,979             (3,350)

Cash - Beginning of Period                                                                        2,360              3,350
                                                                                        ----------------   ----------------

Cash - End of Period                                                                    $        23,339    $             -
                                                                                        ================   ================

SUPPLEMENTAL INFORMATION:
   Cash Paid During Year for:
       Interest and Taxes                                                               $             -    $             -
                                                                                        ================   ================

NON-CASH INVESTING AND FINANCING ACTIVITIES:
   Issuance of Common Stock for Acquisition                                             $             -    $       295,000
                                                                                        ================   ================
   Issuance of Common Stock for Marketable Equity Securities                            $             -    $        24,000
                                                                                        ================   ================
   Issuance of Common Stock in Exchange for Debt                                        $        13,000    $       378,502
                                                                                        ================   ================





                               See accompanying notes to consolidated financial statements.
                                                         -5-
</TABLE>
<PAGE>

                 DYNAMIC IMAGING GROUP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2001
                                   (UNAUDITED)



NOTE 1 - BASIS OF PRESENTATION AND GOING CONCERN

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and pursuant to the rules and regulations of the
Securities and Exchange Commission ("SEC"). The accompanying consolidated
financial statements for the interim periods are unaudited and reflect all
adjustments (consisting only of normal recurring adjustments) which are, in the
opinion of management, necessary for a fair presentation of the financial
position and operating results for the periods presented. The consolidated
financial statements include the accounts of the Company and its subsidiaries.
All significant intercompany accounts and transactions have been eliminated.
These consolidated financial statements should be read in conjunction with the
financial statements for the year ended December 31, 2000 and notes thereto
contained in the Report on Form 10-KSB of Dynamic Imaging Group, Inc. (the
"Company") as filed with the Securities and Exchange Commission. The results of
operations for the nine months ended September 30, 2001 are not necessarily
indicative of the results for the full fiscal year ending December 31, 2001.

The accompanying consolidated financial statements have been prepared on a going
concern basis, which contemplates the realization of assets and satisfaction of
liabilities in the normal course of business. Since its inception, the Company
has continued to suffer recurring losses from operations that to date, total
$3,742,339. At September 30, 2001, the Company had a working capital deficit of
$1,265,057. These factors among others may indicate the Company will be unable
to continue as a going concern for a reasonable period of time. The accompanying
consolidated financial statements do not include any adjustments relating to the
outcome of this uncertainty.

The Company's continuation as a going concern is dependent upon its ability to
generate sufficient cash flow to meet its obligations on a timely basis. The
Company's primary source of liquidity has been from the cash generated by its
operations and through the private placement of equity and debt securities.
During January 2001, the Company drastically reduced its costs and expenses by
reducing staff, consolidating office space, and reducing administrative
functions. These actions were necessary due to the recurring losses and lack of
cash resources. The Company is presently reevaluating its business structure and
is planning to either obtain capital required to resume normal business
operations or to acquire complimentary businesses in exchange for shares of the
Company's common stock. However, there can be no assurance that the Company will
be successful in achieving profitability or acquiring additional capital or that
such capital, if available, will be on terms and conditions favorable to the
Company. Based upon its current restructuring efforts, the Company believes it
will generate sufficient cash flow through operations, additional cost reduction
measures, and external sources of capital to continue to meet its obligations in
a timely manner.

NOTE 2- LOSS PER SHARE

Basic earnings per share is computed by dividing net loss by weighted average
number of shares of common stock outstanding during each period. Diluted loss
per share is computed by dividing net loss by the weighted average number of
shares of common stock, common stock equivalents and potentially dilutive
securities outstanding during each period. Diluted loss per common share is not
presented because it is anti-dilutive.




                                       -6-
<PAGE>
                  DYNAMIC IMAGING GROUP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2001
                                   (UNAUDITED)




NOTE 3 - RELATED PARTY TRANSACTIONS

The Company advanced funds to certain companies affiliated through common
ownership. The advances are non-interest bearing and are payable on demand. At
September 30, 2001, advances to these companies amounted to $4,821.

Certain shareholders of the Company and a company related through common
ownership from time to time, advanced funds to the Company for operations. These
amounts are non-interest bearing, non-collateralized, and are payable on demand.
As of September 30, 2001, amounts due to these related parties amounted to
$55,247.


NOTE 4 - MARKETABLE EQUITY SECURITIES

Marketable equity securities are classified into one of three categories:
trading, available-for-sale, or held-to-maturity. Trading securities are
acquired and held principally for the purpose of selling them in the near term.
Held-to-maturity securities are those securities that the Company has the
ability and intent to hold to maturity. All other securities not included in the
trading and held-to-maturity categories are available-for-sale securities.
Management determines the appropriate classifications of marketable equity
securities at the time they are acquired and evaluates the continuing
appropriateness of the classification at each balance sheet date. At June 30,
2001, the Company held only available-for-sale securities, which are reported at
fair value with unrealized gains and losses excluded from earnings and reported
as a separate component of stockholders' deficit.


NOTE 5- STOCKHOLDERS' EQUITY (DEFICIT)

Preferred Stock

The Company is authorized to issue 10,000,000 shares of Preferred Stock with
such designations, rights and preferences as may be determined from time to time
by the Board of Directors.

Common Stock

During August 2001, the Company issued 200,000 shares of common stock in
exchange for professional services rendered. These shares were valued at a fair
market of $.08 per share and charged to operations.

During July and August 2001, the Company issued 1,100,000 shares of restricted
common stock for proceeds of $33,000.








                                       -7-
<PAGE>
                  DYNAMIC IMAGING GROUP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2001
                                   (UNAUDITED)


NOTE 6 -COMPREHENSIVE INCOME

The Company uses Statement of Financial Accounting Standards (SFAS) No. 130,
"Reporting Comprehensive Income." This pronouncement sets forth requirements for
disclosure of the Company's comprehensive income and accumulated other
comprehensive items. In general, comprehensive income combines net income and
"other comprehensive items," which represent certain amounts that are reported
as components of stockholders' equity in the accompanying balance sheet,
including foreign currency translation adjustments. For the nine months ended
September 30, 2001, the Company had no comprehensive income.

NOTE 7 - SEGMENT INFORMATION

The Company operates in two reportable business segments - (1) sale of trade
show displays and graphics, and (2) e-commerce services including development of
business-to-business applications, state of the art web technology and staff
augmentation services. The Company's reportable segments are strategic business
units that offer different products. They are managed separately based on the
fundamental differences in their operations.

Information with respect to these reportable business segments for the nine
months ended September 30, 2001 and 2000 is as follows:

<TABLE>
<CAPTION>
                                                              For the Nine Months Ended September 30, 2001
                                                      -------------------------------------------------------------
                                                         Trade Show
                                                        Displays and          E-commerce           Consolidated
                                                          Graphics            Solutions               Total
                                                      -----------------    -----------------    -------------------
<S>                                                   <C>                  <C>                  <C>
Net Sales                                             $        261,164     $        115,618     $          376,782
Costs and Operating Expenses                                   770,572              245,519              1,016,091
Interest Expense                                                47,365                    -                 47,365
                                                      -----------------    -----------------    -------------------
Net Loss                                              $       (556,773)    $       (129,901)    $         (686,674)
                                                      =================    =================    ===================

                                                              For the Nine Months Ended September 30, 2000
                                                      -------------------------------------------------------------
                                                         Trade Show
                                                        Displays and          E-commerce           Consolidated
                                                          Graphics            Solutions               Total
                                                      -----------------    -----------------    -------------------
Net Sales                                             $        555,905     $        277,107     $          833,012
Costs and Operating Expenses                                 1,478,704              146,311              1,625,015
Interest Expense                                               175,030                    -                175,030
                                                      -----------------    -----------------    -------------------
Net Income (Loss)                                     $     (1,097,829)    $        130,796     $         (967,033)
                                                      =================    =================    ===================
</TABLE>





                                       -8-
<PAGE>
                  DYNAMIC IMAGING GROUP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2001
                                   (UNAUDITED)




NOTE 8 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

The Financial Accounting Standards Board has recently issued several new
accounting pronouncements which may apply to the Company.

Statement No. 141 "Business Combinations" ("SFAS 141") establishes revised
standards for accounting for business combinations. Specifically, the statement
eliminates the pooling method, provides new guidance for recognizing intangible
assets arising in a business combination, and calls for disclosure of
considerably more information about a business combination. This statement is
effective for business combinations initiated on or after July 1, 2001. The
adoption of this pronouncement on July 1, 2001 did not have a material effect on
the Company's financial position, results of operations or liquidity.

Statement No. 142 "Goodwill and Other Intangible Assets" ("SFAS 142") provides
new guidance concerning the accounting for the acquisition of intangibles,
except those acquired in a business combination, which is subject to SFAS 141,
and the manner in which intangibles and goodwill should be accounting for
subsequent to their initial recognition. Generally, intangible assets with
indefinite lives, and goodwill, are no longer amortized; they are carried at
lower of cost or market and subject to annual impairment evaluation, or interim
impairment evaluation if an interim triggering event occurs, using a new fair
market value method. Intangible assets with finite lives are amortized over
those lives, with no stipulated maximum, and an impairment test is performed
only when a triggering event occurs. This statement is effective for all fiscal
years beginning after December 15, 2001. The Company believes that the future
implementation of SFAS 142 on January 1, 2002 will not have a material effect on
the Company's financial position, results of operations or liquidity.

Statement No. 144 "Accounting for the Impairment or Disposal of Long-Lived
Assets" supercedes Statement No. 121 "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed of" ("SFAS 121").
Though it retains the basic requirements of SFAS 121 regarding when and how to
measure an impairment loss, SFAS 144 provides additional implementation
guidance. SFAS 144 excludes goodwill and intangibles not being amortized among
other exclusions. SFAS 144 also supercedes the provisions of APB 30, "Reporting
the Results of Operations", pertaining to discontinued operations. Separate
reporting of a discontinued operation is still required, but SFAS 144 expands
the presentation to include a component of an entity, rather than strictly a
business segment as defined in SFAS 131, Disclosures about Segments of an
Enterprise and Related Information. SFAS 144 also eliminates the current
exemption to consolidation when control over a subsidiary is likely to be
temporary. This statement is effective for all fiscal years beginning after
December 15, 2001. The Company believes that the future implementation of SFAS
144 on January 1, 2002 will not have a material effect on the Company's
financial position, results of operations or liquidity.

 .







                                       -9-
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

Results of Operations

This report on Form 10-QSB contains certain forward-looking statements, which
are subject to risks and uncertainties which could cause actual results to
differ materially from those discussed in the forward-looking statements and
from historical results of operations. Among the risks and uncertainties which
could cause such a difference are those relating to our dependence upon certain
key personnel, our ability to manage our growth, our success in implementing the
business strategy, our success in arranging financing where required, and the
risk of economic and market factors affecting us or our customers. Many of
such risk factors are beyond our control.

During January 2001, we drastically reduced our costs and expenses by reducing
staff, consolidating office space, and reducing administrative functions. These
actions were necessary due to the recurring losses and lack of cash resources.
We are presently reevaluating our business structure and are planning to either
obtain capital required to resume normal business operations or to acquire
complimentary businesses in exchange for shares of our common stock. However,
there can be no assurance that we will be successful in achieving profitability
or acquiring additional capital or that such capital, if available, will be on
terms and conditions favorable to us.

Nine months ended September 30, 2001 compared to nine months ended September 30,
2000.

Net sales for the nine months ended September 30, 2001 were $376,782 as compared
to net sales for the nine months ended September 30, 2000 of $833,012. In
January 2001, we reduced our sales force in order to reduce overhead by
consolidating sales administrative functions and to eliminate unprofitable
salespersons. As of June 30, 2001, we had one salespersons remaining. As a
result of the reduction in our sales force, net sales for the nine months ended
September 30, 2001 decreased as compared to the nine months ended September 30,
2000. Additionally, due to a lack of operating capital, we have decreased our
marketing efforts.

Consulting fees were $158,202 for the nine months ended September 30, 2001 as
compared to $164,970 for the nine months ended September 30, 2000. During the
nine months ended September 30, 2001 and 2000, substantially all of our
consulting fees were incurred from the issuance of common stock for services.
These shares were valued at the fair values and charged to consulting fees.

Contract labor expenses include costs and commissions related to our sales force
that is comprised of both direct employees of the Company (included in salaries)
and independent sales representatives. Contract labor also includes costs of
certain individuals related to administration and purchasing who are engaged on
a contractual basis. Contract labor expenses were $55,065 for the nine months
ended September 30, 2001 as compared to $235,622 for the nine months ended
September 30, 2000. The decrease in contract labor is attributable to overhead
reduction measures discussed above.

Professional fees were $42,105 for the nine months ended September 30, 2001 as
compared to $47,326 for the nine months ended September 30, 2000. The decrease
is attributable to the fact that we incurred additional legal and accounting
fees in connection with the filing of our registration statement on Form 10-SB,
as filed and subsequently amended, during the nine months ended June 30, 2000.








                                      -10-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS (continued)


Results of Operations (Continued)

Nine months ended September 30, 2001 compared to nine months ended September 30,
2000 (Continued)

Rent expense was $49,200 for the nine months ended September 30, 2001 as
compared to $75,137 for the nine months ended September 30, 2000. The decrease
is due to the consolidation of our office space. Additionally, on July 1, 2000,
we sold a 50% interest in our subsidiary to a third party.  Accordingly, we
ceased paying rent on this facility.

Salaries were $407,640 for the nine months ended September 30, 2001 as compared
to $429,302 for the nine months ended September 30, 2000. Salaries remained
relatively stable and consisted of an increase in salary attributable to the
addition of our e-commerce subsidiary with salaries amounting to $185,116 for
the nine months ended September 30, 2001 as compared to $79,165 for the nine
months ended September 30, 2000. The increase is offset by a reduction in
salaries from our display business due to our cost reduction measures as
discussed above. Salaries for our display business amounted $222,524 for the
nine months ended September 30, 2001 as compared to $350,137 for the nine months
ended September 30, 2000. As of September 30, 2001, we have approximately 3
employees. We will continue to use contract labor as necessary to complete
projects and to generate sales.

Other selling, general and administrative expenses, which include travel and
entertainment, insurance, auto, telephone and other expenses, were $201,916 for
the nine months ended September 30, 2001 as compared to $385,367 for the nine
months ended September 30, 2000. The decrease is primarily attributable to
decreased selling and marketing efforts, the reduction of travel expenses, and
the consolidation of administrative functions.

Interest expense was $47,365 for the nine months ended September 30, 2001 as
compared to $175,030 for the nine months ended September 30, 2000. During the
nine months ended September 30, 2000, we issued common shares valued at $135,000
in connection with a note payable and accordingly, recorded interest expense of
$135,000. This issuance attributed to our increased interest expense in the
prior year.

As a result of the foregoing factors, we incurred losses of $686,674 or ($.07)
per share for the nine months ended September 30, 2001 as compared to a loss of
$967,033 or ($.15) per share for the nine months ended September 30, 2000.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception, we have incurred losses of $3,742,339.  Our operations have
been funded by the sale of common  stock with gross  proceeds  of  approximately
$49,000 during the nine months ended September 30, 2001. Additionally, we signed
convertible  debentures and note agreements and borrowed  approximately $305,000
from third  parties  and  related  parties.  These  funds were used for  working
capital and capital expenditures.  During fiscal 2000, we issued common stock in
exchange for debt aggregating  $90,000.  On September 30, 2000, we issued common
stock in exchange for accrued  salaries  amounting to $288,502.  We believe that
the conversion of this debt to equity will help our cash flow position.







                                      -11-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS (continued)

LIQUIDITY AND CAPITAL RESOURCES (Continued)

We have no other material commitments for capital expenditures. We believe that
we have sufficient liquidity to meet all of our cash requirements for the next
twelve months through cost reductions and increased marketing efforts together
with additional proceeds from common stock sales. A key element of our strategy
is to evaluate opportunities to expand through acquisition of companies engaged
in similar and related complementary businesses. Any additional acquisitions may
require additional capital, although there can be no assurances that any
acquisitions will be completed. Also, we believe that additional funding will be
necessary to expand our market share.

During the nine months ended September 30, 2001, our operating cash requirement
was $54,708 attributable to a net loss of $686,674 mitigated by non-cash charges
for depreciation and amortization of $37,325 and stock based compensation of
$152,452, and the increase in accrued salaries due to non-payment. The net
remaining shortfall was primarily funded by the net sale of common stock for
$49,000 and proceeds from notes payable and advances from related parties of
$36,051 received during the nine months ended Sept 30, 2001.

During the nine months ended September 30, 2000, our operating cash requirement
was $369,381 attributable to a net loss of $967,033 mitigated by non-cash
charges for depreciation and amortization of $25,063, stock based compensation
of $148,851, and interest expense from the issuance of common stock of $135,000.
The net remaining shortfall was primarily funded by the sale of common stock for
$255,200 and proceeds from related parties and notes payable of $166,500
received during the nine months ended September 30, 2000. Partially offsetting
this funding were capital expenditures of $29,945.

                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

         We are not involved in any material litigation

Item 2.  Changes in Securities and use of Proceeds

         During August 2001, the Company issued 200,000 shares of common stock
         in exchange for professional services rendered. These shares were
         valued at a fair market of $.08 per share and charged to operations.

         During July and August 2001, the Company issued 1,100,000 shares of
         restricted common stock for proceeds of $33,000.

Item 3. Defaults Upon Senior Securities

         We are currently in default on our notes payable with a financial
         institution and other individuals.

Item 4.  Submission of Matters to Vote of Security Holders

         None






                                      -12-
<PAGE>
Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits

              None

         (b)  There were no current reports on Form 8-K filed by us during the
              three months ended September 30, 2001.




                                   SIGNATURES

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

                                                 DYNAMIC IMAGING GROUP, INC.

Dated:   November 18, 2001                       By: /s/ Roland Breton
                                                     ---------------------------
                                                     Roland Breton, President

Dated:   November 18, 2001                        By /s/  Alfred Tracy III
                                                     ---------------------------
                                                     Alfred Tracy III, Secretary






















                                      -13-