UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

[ x ]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                          OF THE SECURITIES ACT OF 1934
                 FOR THE QUARTERLY PERIOD ENDED AUGUST 31, 2003

                                       OR

[   ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                          OF THE SECURITIES ACT OF 1934
            FOR THE TRANSITION PERIOD FROM ___________TO ____________

                        COMMISSION FILE NUMBER: 000-8880



                            THE BANKER'S STORE, INC.
             (Exact name of registrant as specified in its charter)

            NEW YORK                                             11-2196303
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

                  1535 MEMPHIS JUNCTION ROAD, BOWLING GREEN, KY
       42101 (Address, including zip code, of principal executive offices)

                                 (270) 781-8453
              (Registrant's telephone number, including area code)

     Indicate by check mark whether the 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 ____



                      APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.

     Common stock, par value $0.001, 14,947,215 shares outstanding as of
October 17, 2003.


<PAGE>



                            THE BANKER'S STORE, INC.

                                   FORM 10-QSB

                                 AUGUST 31, 2003

                                      INDEX

                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

      See financial statements beginning on page F-1.

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
            PLAN OF OPERATION

The matters discussed in this management's discussion and analysis or plan of
operations contain forward-looking statements that involve risks and
uncertainties. The Company's actual results in our two operating segments could
differ materially from those discussed here. Factors that could cause or
contribute to such differences are discussed elsewhere in this quarterly report
on Form 10-QSB. The Company disclaims, any intent or obligation to update these
forward-looking statements.

OVERVIEW

The Banker's Store, Inc. ("Store") was established in 1968. It remained dormant
for many years until it completed the acquisition of B.G. Banking Equipment,
Inc., ("B.G. Banking") and Financial Building Equipment Exchange, Inc.,
("FBEE"). We are now in the business of buying, selling, refurbishing and
trading new and refurbished financial equipment for banks and other financial
institutions. Commencing during the fourth quarter of the year ended May 31,
2002, we entered the office equipment and furniture retail business. We market
products throughout the United States primarily through direct sales to
financial institutions and other distributors supported by our direct sales
force and soliciting new contacts through our presence on the Internet.

We anticipate that our results of operations may fluctuate for the foreseeable
future due to several factors, including whether and when new products at
competitive prices are obtained and sources of good used banking and banking
related equipment and furniture become available at favorable prices, market
acceptance of current or new products, delays, or inefficiencies, shipment
problems, seasonal customer demand, the timing of significant orders,
competitive pressures on average selling prices and changes in the mix of
products sold.

Operating results would also be adversely affected by a downturn in the market
for our current and future products, order cancellations, or order rescheduling
or remanufacturing or delays. We purchase and resell new merchandise and
remanufacture and ship our other products shortly after receipt of orders. We
have not developed a significant backlog for such products and do not anticipate
developing a material backlog for such products in the future.

Because we plan to increase our operating expenses, primarily for personnel and
activities supporting newly-introduced products, new product development and
entering new markets, our operating results would be adversely affected if our
sales did not correspondingly increase or if our product development efforts are
unsuccessful or are subject to delays.


                                       2
<PAGE>

We may not be able to sustain revenue growth on a quarterly or annual basis and
our operating results may not be consistent with predictions, if any, made by
securities analysts.

SUMMARY OF SIGNIFICANT ACCOUNTING ESTIMATES, RELATED PARTY
TRANSACTIONS AND CONTINGENCIES:

Significant accounting estimates:

Our discussion and analysis of our financial condition and results of operations
are based upon our condensed consolidated financial statements, which have been
prepared in conformity with accounting principles generally accepted in the
United States of America. The preparation of these condensed consolidated
financial statements requires us to make estimates and judgments that affect the
reported amounts of assets, liabilities, revenues and expenses, and related
disclosures of contingent assets and liabilities. On an on-going basis, we
evaluate our estimates, including those related to accounts receivable,
inventories, equipment and improvements, income taxes and contingencies. We base
our estimates on historical experience and on various other assumptions that are
believed to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying value of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from
these estimates under different assumptions or conditions. The accounting
estimates used as of May 31, 2003 and as outlined in our previously filed Form
10-KSB have been applied consistently for the three months ended August 31,
2003.

Related party transactions:

On August 1, 1998, the Company entered into a three-year operating lease with
our President and principal stockholder, Paul Clark, for the lease of an
aggregate of 23,976 square feet of office and warehouse space located in Bowling
Green, Kentucky. The lease provides for a monthly rent of $5,000 plus applicable
real estate taxes and maintenance expenses. We have extended the lease through
August 2004 under the same terms.

On September 20, 2002, Paul Clark purchased an additional building in Bowling
Green, Kentucky for $225,000, which we are currently using as warehouse space,
and leasing from him under a month to month lease for $2,200 per month.

Contingencies:
         Private placement - B.G. Banking:

         Prior to the Store's reverse merger with B.G. Banking and FBEE, B.G
         Banking offered and received subscriptions for 126,500 shares of its
         common stock at $1.00 per share. Subsequent to the date of the reverse
         merger, the subscribers of shares of B.G. Banking's common stock were
         offered and they received shares of common stock in the Store at a
         ratio of 1 share of B.G. Banking common stock to 1.5 shares of the
         Store's common stock. We issued 189,750 shares of its common stock in
         satisfaction of the subscription agreements at a value of $.67 per
         share.

         Two of our directors, acting individually as principals of Taurus
         Investments International, Inc. (a Nevada corporation) (collectively
         "Taurus"), and as directors of B.G. Banking prior to its acquisition by
         the Store and subsequent to the acquisition becoming directors of the
         Company, offered and sold on behalf of B.G. Banking what Taurus has
         admitted to being


                                       3
<PAGE>

         an aggregate of 304,500 shares of B.G. Banking's common stock for an
         aggregate consideration of $304,500. Taurus has remitted to the Store
         net proceeds of $109,674 and claims the difference of $194,826 as
         payment for expenses and commissions. In addition, Taurus has refused
         to disclose the names and numbers of shares of common stock and refused
         to remit to the Store the proceeds of the shares sold. As of August 31,
         2003, Taurus has failed to turn over the balance of money, provide the
         names of the stock subscribers and the number of shares of common stock
         purchased.

         Based upon the accounting provided by Taurus to the Store, the Store
         may be liable for the issuance of up to 329,500 shares of common stock
         if and when Taurus substantiates their representation as to the number
         of shares of common stock sold and aggregate consideration. This number
         of shares represents the number of shares admittedly sold by Taurus for
         which the purchases have as yet remained unidentified.

         We may also be forced to defend ourself against actions to be brought
         by unknown subscribers to shares of common stock of B.G. Banking whose
         purchase price has never been disclosed or delivered to the Store. We
         are aware of one alleged purchaser who claims to have delivered funds
         to Taurus and whose funds were apparently not turned over to us. In the
         opinion of management, the Store has no liability to such purchasers
         and intends to vigorously defend such actions, if and when brought.

         We have received approximately $42,000 from Taurus relating to the
         purchase of shares by an unknown investor in June 1999. We are holding
         such funds in escrow pending disposition.

         As of August 31, 2003, we have reserved 329,500 shares of common stock
         pending possible issuance of shares in satisfaction of outstanding
         subscription agreements.

         Litigation:

         On February 29, 2000, Alexander C. Brosda and Andrew Seim filed an
         action in the United States District Court in Florida against the
         Store. The action alleges that we violated the Securities and Exchange
         Act of 1934, as amended, and various Florida statutes, by failing to
         affect the exchange of 150,000 shares of B.G. Banking common stock held
         by Brosda and Seim for 225,000 shares of our common stock. On June 5,
         2000, we filed a motion to dismiss the complaint for failure to state a
         claim, improper venue and lack of jurisdiction, respectively. On
         January 23, 2001, the court dismissed the plaintiff's claims alleging
         violations of the Securities Exchange Act of 1934. The plaintiffs did
         not file an amended complaint, and the action has been dismissed by the
         court without prejudice.

         However, on September 26, 2001, Taurus Venture Capital Fund, LLC and
         Taurus filed a similar claim against the Store and our President, Paul
         Clark. The claim seeks $2,000,000 for actual damages based upon a per
         share price of $4.50, treble damages of $6,615,000 plus interest and
         fees. In November 2001, the Company and its president filed a motion to
         discuss or abate the action and are awaiting the scheduling by the
         court of a hearing on the motion. On May 30, 2002, the court issued a
         decision denying the motion to dismiss.


                                       4
<PAGE>

         On August 6, 2002, the Company and the President filed an answer,
         affirmative defenses and counterclaims against plaintiffs, denying the
         allegations in the complaint and alleging as counterclaims the same
         claims as are alleged in the following described action pending in New
         York State, seeking damages in the amount of not less than $1,700,000
         for breach of fiduciary duty, breach of contract, conversion and unjust
         enrichment, and seeking an accounting of plaintiffs' books and records.
         The Company believes that they have meritorious defenses and intends to
         vigorously defend the action. On May 28, 2003, the Company and its
         president filed a motion to dismiss the action and are awaiting the
         scheduling by the court of a hearing on the motion.

         On March 7, 2000, we filed an action in the Supreme Court of New York,
         County of New York, against Taurus, seeking an amount of not less than
         $1,700,000 for breach of fiduciary duty, breach of contract, conversion
         and unjust enrichment and seeking an accounting of Taurus' books and
         records. The action arises out of B.G. Banking's confidential private
         placement memorandum dated January 31, 1998 for the sale of 3,000,000
         shares of common stock at $1.00 per share. Taurus filed a motion to
         dismiss the action which the court denied on October 5, 2000. On
         November 15, 2000 a motion filed by Taurus counsel to be relieved as
         counsel was granted. On December 14, 2000, the court granted our oral
         motion for the entry of a default judgment against Taurus. On May 4,
         2001, the Court granted the motion filed by the defendant and, as a
         result, the action has been transferred to the New York State Supreme
         Court, Delaware County. The Company is awaiting a date for a hearing on
         its claim against the plaintiff for damages. The Company intends to
         continue to litigate this action.

         Although we cannot predict the outcome of the litigation described
         above, we do not believe that the ultimate outcome will have any
         material adverse effect on our consolidated financial statements in
         subsequent periods.

RESULTS OF OPERATIONS

The following table sets forth operating data as a percentage of revenue for the
three months ended August 31, 2003:

                                                   Three months ended
                                                       August 31,
                                                   2003           2002
                                                -------------------------

Revenue                                           100.0%         100.0%
Cost of goods sold                                 80.5%          55.9%
                                                  -----          -----

Gross profit                                       19.5%          44.1%

Selling, general and
administrative expenses                            20.4%          26.4%
                                                  -----          -----

Income (loss) from operations                      (.9)%          17.7%
Other income (expense)                               .2%          (.2)%
                                                  -----          -----

Net income (loss)                                  (.7)%          17.5%
                                                  =====          =====


                                       5
<PAGE>

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED AUGUST 31, 2003 AS COMPARED TO
THE THREE MONTHS ENDED AUGUST 31, 2002.

Revenues were approximately $706,000 for the three months ended August 31, 2003
as compared to approximately $710,000 for the three months ended August 31, 2002
reflecting a decrease of approximately $4,000 or .6%. The decrease in revenues
during the three months ended August 31, 2003 was caused primarily by decrease
in revenue from our Banking equipment segment by approximately $65,000 or 9.7%.
This decrease in sales during the three months ended August 31, 2003 was caused
primarily by the low interest rate environment which has negatively impacted the
earnings of financial institutions. Therefore, financial institutions have
reduced their spending on new construction and are focusing instead on small
remodeling projects, upgrading of ATMs, drive up systems and other new
technologies. This trend by the financial institution will probably continue for
the next quarter. The decrease in Banking equipment sales was partly offset by
increase in Office equipment sales by approximately $61,000 or 200.2%. The
increase in Office equipment revenue was primarily due to substantial amount of
office furniture sales to an old customer since he was undertaking remodeling
work. Sales to this customer approximated $30,000.

Cost of goods sold and related expenses for the three months ended August 31,
2003 were approximately $568,000 or 80.5% of net sales as compared to
approximately $397,000 or 55.9% of net sales for the three months ended August
31, 2002. Gross profit decreased during the three months ended August 31, 2003
as compared to the three months ended August 31, 2002 primarily due to the ratio
of refurbished products sold to new products sold. During this quarter we sold
less refurbished products which carry a higher gross profit percentage.

Selling, general and administrative expenses were approximately $144,000 for the
three months ended August 31, 2003 as compared to approximately $188,000 for the
three months ended August 31, 2002 reflecting a decrease of approximately
$44,000 or 23.4% over the same period last year. The decrease is mainly due to a
reduction in general professional fees incurred relating to the litigation
during the period.

As a result of the aforementioned, the Company incurred a net loss during the
three months ended August 31, 2003 of approximately $5,000 as opposed to a
earning approximately $125,000 for the comparable prior period.

LIQUIDITY AND CAPITAL RESOURCES

We have historically financed our operations through revenues from operations,
private and public placements of equity securities, debt and capital lease
financing and interest income earned on the net proceeds from the private
placements.


                                       6
<PAGE>

We had cash and cash equivalents of $262,409 and working capital of $375,236 at
August 31, 2003. During the three months ended August 31, 2003, our cash and
cash equivalents increased by $22,665. Cash and cash equivalents generated from
operations was $33,675 primarily due an increase in accounts payable and accrued
expenses of $41,733 and customer deposits of $77,616. This increase was used to
increase inventory by $55,235 in anticipation of future sales and an increase in
accounts receivable of $39,807 resulting from higher level of sales during the
last month of the period. During the three months ended August 31, 2003, we also
received net cash advances of $6,600 from our principal stockholder. We used
part of these proceeds to purchase $15,247 of equipment and make principal
payments on long term debt of $2,363.

We are evaluating various alternatives in addressing our future facilities
expansion needs. The alternatives being evaluated include negotiations with
various parties for the leasing of additional facility space and the purchase of
additional property to build a new or additional office and warehousing
facility. Relocation to a new facility or leasing of additional facility space
would be expected to result in an increase in rent upon occupancy. We believe
that our available cash, cash from operations and funds from existing credit
arrangements will be sufficient to satisfy our funding needs for at least the
next 12 months. Thereafter, if cash generated from operations is insufficient to
satisfy our working capital and capital expenditure requirements, we may be
required to sell additional equity or debt securities or obtain additional
credit facilities. There can be no assurance that such additional capital, if
needed, will be available on satisfactory terms, if at all. Furthermore, any
additional equity financing may be dilutive to stockholders, and debt financing,
if available, may include restrictive covenants. Our future liquidity and
capital funding requirements will depend on numerous factors, including the
extent to which our new products and products under consideration are
successfully developed, gain market acceptance and become and remain
competitive, the timing and results of regulatory actions in the banking
industry, the costs and timing of further expansion of sales, marketing and
manufacturing activities and facilities expansion needs. The failure by us to
raise capital on acceptable terms when needed could have a material adverse
effect on our business, financial condition and results of operations.



ITEM 3.           CONTROLS AND PROCEDURES

         (a) DISCLOSURE CONTROLS AND PROCEDURES. Within 90 days before filing
this report, the Company evaluated the effectiveness of the design and operation
of its disclosure controls and procedures. The Company's disclosure controls and
procedures are the controls and other procedures that it designed to ensure that
it records, processes, summarizes and reports in a timely manner the information
it must disclose in reports that it files with or submits to the Securities and
Exchange Commission. Paul D. Clark, the Company's President and CEO and Albert
Blankenship, our Principal Accounting Officer, supervised and participated in
this evaluation. Based on this evaluation, Messrs. Clark and Blankenship
concluded that, as of the date of their evaluation, the Company's disclosure
controls and procedures were effective.


                                       7
<PAGE>

         (b) INTERNAL CONTROLS. Since the date of the evaluation described
above, there have not been any significant changes in the Company's internal
accounting controls or in other factors that could significantly affect those
controls.

                                    PART II.
                                OTHER INFORMATION

ITEM 1.           LEGAL PROCEEDINGS

No material developments occurred during the quarter with respect to our
on-going litigation. For a discussion of this litigation, please see Item 2.
Management's Discussion and Analysis of Financial Condition and Results of
Operation-Litigation herein.

ITEM 2.           CHANGES IN SECURITIES AND USE OF PROCEEDS

         None.

ITEM 3.           DEFAULTS BY THE COMPANY UPON ITS SENIOR SECURITIES

         None.

ITEM 4.           SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         None.

ITEM 5.           OTHER INFORMATION

         None.

ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

         a)  Exhibits

                           31.1 Certification Pursuant to Rule 13a-14(a) of
                                Paul Clark
                           31.2 Certification Pursuant to Rule 13a-14(a) of
                                Albert Blankenship
                           32.1 Certification of Paul Clark
                           32.2 Certification of Albert Blankenship

         b) Reports on Form 8-K

                  None.




                                       8
<PAGE>

                              FINANCIAL STATEMENTS




                    THE BANKER'S STORE, INC. AND SUBSIDIARIES




                                    I N D E X

                                                                            PAGE

PART I -  FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

             CONDENSED CONSOLIDATED BALANCE SHEET
                AUGUST 31, 2003 (UNAUDITED)                                  F-2

             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                THREE MONTHS ENDED AUGUST 31, 2003 AND 2002 (UNAUDITED)      F-3

             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                THREE MONTHS ENDED AUGUST 31, 2003 AND 2002 (UNAUDITED)      F-4

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
             (UNAUDITED)                                               F-5 - F-9

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

PART II.   OTHER INFORMATION

ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K

           SIGNATURES



                                      * * *








                                      F-1
<PAGE>

                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET
                                 AUGUST 31, 2003
                                   (Unaudited)

                                     ASSETS

Current assets:
     Cash and cash equivalents                                       $  262,409
     Accounts receivable, net                                           261,619
     Inventories                                                        726,925
     Prepaid expenses and other current assets                           46,754
                                                                     ----------
              Total current assets                                    1,297,707

Equipment and improvements, net                                          93,820
Other assets                                                              8,332
                                                                     ----------

              Total                                                  $1,399,859
                                                                     ==========


                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Current portion of long-term debt                               $   13,146
     Accounts payable and accrued expenses                              202,309
     Customer deposits                                                  269,225
     Advances from principal stockholder                                395,791
     Private placement funds in dispute                                  42,000
                                                                     ----------
              Total current liabilities                                 922,471

Long-term debt, net of current portion                                   10,690
                                                                     ----------
              Total liabilities                                         933,161
                                                                     ----------

Contingencies

Stockholders' equity:
     Common stock, $.01 par value; 80,000,000 shares
         authorized; 14,947,215 shares outstanding                      149,473
     Additional paid-in capital                                         497,216
     Accumulated deficit                                               (179,991)
                                                                     ----------
              Total stockholders' equity                                466,698
                                                                     ----------

              Total                                                  $1,399,859
                                                                     ==========





See Notes to Condensed Consolidated Financial Statements.



                                      F-2
<PAGE>

                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   THREE MONTHS ENDED AUGUST 31, 2003 AND 2002
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                       2003             2002
                                                                     --------         --------
<S>                                                                  <C>              <C>
Revenue                                                              $705,896         $710,444

Cost of goods sold                                                    567,954          396,825
                                                                     --------         --------

Gross profit                                                          137,942          313,619

Selling, general and administrative expenses                          143,656          187,672
                                                                     --------         --------

Income (loss) from operations                                          (5,714)         125,947
                                                                     --------         --------

Other income (expense):
    Interest and other income                                           1,644              196
    Interest expense                                                     (549)          (1,590)
                                                                     --------         --------
       Totals                                                           1,095           (1,394)
                                                                     --------         --------

Net income (loss)                                                    $ (4,619)        $124,553
                                                                     ========         ========

Basic earnings (loss) per common share                               $   ( - )        $    .01
                                                                     ========         ========

Basic weighted average number of common shares outstanding         14,947,215       14,947,215
                                                                   ==========       ==========
</TABLE>






See Notes to Condensed Consolidated Financial Statements.



                                      F-3
<PAGE>

                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                   THREE MONTHS ENDED AUGUST 31, 2003 AND 2002
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                     2003            2002
                                                                                  ----------      ----------
<S>                                                                               <C>               <C>
Operating activities:
     Net income (loss)                                                            $   (4,619)       $124,553
     Adjustments to reconcile net income (loss) to net cash
         provided by (used in) operating activities:
         Depreciation and amortization                                                 8,048           6,903
         Changes in operating assets and liabilities:
              Accounts receivable                                                    (39,807)       (302,478)
              Inventories                                                            (55,235)         41,093
              Prepaid expenses and other current assets                                6,939          (7,188)
              Other assets                                                            (1,000)
              Accounts payable and accrued expenses                                   41,733         (55,849)
              Customer deposits                                                       77,616          73,345
                                                                                  ----------      ----------
                      Net cash provided by (used in) operating activities             33,675        (119,621)
                                                                                  ----------       ---------

Investing activities - capital expenditures                                          (15,247)        (21,256)
                                                                                  ----------      ----------

Financing activities:
     Proceeds from notes payable - bank                                                               91,000
     Principal payments on long-term debt                                             (2,363)         (3,769)
     Proceeds from long-term debt                                                                     18,238
     Loan payable - principal stockholder                                              6,600          18,600
                                                                                  ----------      ----------
                      Net cash provided by financing activities                        4,237         124,069
                                                                                  ----------      ----------

Net increase (decrease) in cash and cash equivalents                                  22,665         (16,808)
Cash and cash equivalents, beginning of period                                       239,744         249,646
                                                                                  ----------      ----------

Cash and cash equivalents, end of period                                          $  262,409      $  232,838
                                                                                  ==========      ==========


Supplemental disclosure of cash flow information:
     Interest paid                                                                $      549      $    1,590
                                                                                  ==========      ==========
</TABLE>







See Notes to Condensed Consolidated Financial Statements.


                                      F-4
<PAGE>

                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1 - Basis of presentation:

               In  the  opinion  of  management,   the  accompanying   unaudited
               condensed   consolidated   financial   statements   reflect   all
               adjustments,  consisting of normal recurring accruals,  necessary
               to present fairly the financial  position of The Banker's  Store,
               Inc. and Subsidiaries  (the "Company") as of August 31, 2003, and
               the Company's  results of operations and cash flows for the three
               months ended August 31, 2003 and 2002.  Pursuant to the rules and
               regulations   of  the  United  States   Securities  and  Exchange
               Commission  (the  "SEC"),  certain  information  and  disclosures
               normally included in financial  statements prepared in accordance
               with  accounting  principles  generally  accepted  in the  United
               States of America  have been  condensed  in or omitted from these
               consolidated financial statements unless significant changes have
               taken  place  since  the  end of the  most  recent  fiscal  year.
               Accordingly,  these unaudited  condensed  consolidated  financial
               statements  should  be  read  in  conjunction  with  the  audited
               consolidated  financial statements as of May 31, 2003 and for the
               years  ended  May 31,  2003 and 2002 and the notes  thereto  (the
               "Audited   Financial   Statements")  and  the  other  information
               included in the Company's Annual Report on Form 10-KSB (the "Form
               10-KSB") for the year ended May 31, 2003.

               The consolidated results of operations for the three months ended
               August 31, 2003 are not necessarily  indicative of the results to
               be expected for the full year.


Note 2 - Earnings (loss) per common share:

               The Company  presents  "basic"  earnings  (loss) per common share
               and, if applicable,  "diluted" earnings per common share pursuant
               to the provisions of Statement of Financial  Accounting Standards
               No. 128, "Earnings per Share" ("SFAS 128"). Basic earnings (loss)
               per share is  calculated  by  dividing  net income or loss by the
               weighted average number of common shares  outstanding during each
               period.  The calculation of diluted earnings per share is similar
               to that of basic earnings per share,  except that the denominator
               is increased to include the number of  additional  common  shares
               that  would have been  outstanding  if all  potentially  dilutive
               common shares,  such as those issuable upon the exercise of stock
               options,  were issued during the period. The Company did not have
               any potentially  dilutive common shares outstanding at August 31,
               2003 or 2002.


Note 3 - Income taxes:

               As of  August  31,  2003,  the  Company  had net  operating  loss
               carryforwards  of  approximately  $167,000  available  to  reduce
               future Federal  taxable income which will expire at various dates
               through 2023.  Due to the  uncertainties  related to, among other
               things, the changes in the ownership of the Company,  which could
               subject   those  loss   carryforwards   to   substantial   annual
               limitations,  and the extent  and  timing of its  future  taxable
               income,  the Company offset the deferred tax assets  attributable
               to the  potential  benefits of  approximately  $150,000  from the
               utilization  of those net operating  loss  carryforwards  and its
               other deferred tax assets by an equivalent valuation allowance as
               of August 31, 2003.


                                      F-5
<PAGE>

                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 3 - Income taxes (concluded):

               The  Company  had also  offset the  potential  benefits  from its
               deferred tax assets by equivalent valuation allowances during the
               year  ended  May 31,  2003.  As a result of the  increase  in the
               valuation  allowance of $3,000 and the decrease in the  valuation
               allowance  of $43,000  during the three  months  ended August 31,
               2003 and 2002,  respectively,  the Company did not  recognize any
               income   taxes  in  the   accompanying   condensed   consolidated
               statements of operations to offset its pre-tax income and loss in
               those periods.


Note 4 - Contingencies:

               Private placement - B.G. Banking:

                 Prior to The Banker's Store,  Inc.'s reverse  acquisition  with
                 B.G. Banking and FBEE on May 31, 1998, B.G. Banking offered and
                 received  subscriptions  for 126,500 shares of its common stock
                 at $1.00  per  share.  Subsequent  to the  date of the  reverse
                 merger,  the  subscribers  to shares of B.G.  Banking's  common
                 stock were offered and they received  shares of common stock in
                 The Banker's Store,  Inc. at a ratio of 1 share of B.G. Banking
                 common stock to 1.5 shares of The Banker's  Store Inc.'s common
                 stock. The Company issued 189,750 shares of its common stock in
                 satisfaction of the subscription  agreements at a value of $.67
                 per share.

                 Two  of  the  Company's   directors,   acting  individually  as
                 principals of Taurus Investments International,  Inc. (a Nevada
                 corporation)  (collectively "Taurus"), and as directors of B.G.
                 Banking prior to its  acquisition by The Banker's  Store,  Inc.
                 and  subsequent to the  acquisition  becoming  directors of the
                 Company, offered and sold on behalf of B.G. Banking what Taurus
                 has admitted to being an  aggregate  of 304,500  shares of B.G.
                 Banking's  common  stock  for  an  aggregate  consideration  of
                 $304,500.  Taurus has  remitted to the Company net  proceeds of
                 $109,674 and claims the  difference  of $194,826 as payment for
                 expenses and  commissions.  In addition,  Taurus has refused to
                 disclose  the names and  numbers of shares of common  stock and
                 refused  to remit to the  Company  the  proceeds  of the shares
                 sold. As of August 31, 2003, Taurus has failed to turn over the
                 balance of money,  provide  the names of the stock  subscribers
                 and the number of shares of common stock purchased.

                 Based upon the  accounting  provided by Taurus to the  Company,
                 the  Company  may be liable for the  issuance  of up to 329,500
                 shares of common stock if and when Taurus  substantiates  their
                 representation  as to the number of shares of common stock sold
                 and  the  aggregate   consideration.   This  number  of  shares
                 represents the number of shares  admittedly  sold by Taurus for
                 which the purchasers have as yet remained unidentified.


                                      F-6
<PAGE>

                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 4 - Contingencies (continued):

               Private placement - B.G. Banking (concluded):

                 The Company may also be forced to defend itself against actions
                 to be brought by unknown  subscribers to shares of common stock
                 of B.G.  Banking whose  purchase price has never been disclosed
                 or  delivered  to the  Company.  The  Company  is  aware of one
                 alleged  purchaser who claims to have delivered funds to Taurus
                 and whose funds were apparently not turned over to the Company.
                 In the opinion of  management,  the Company has no liability to
                 such purchasers and intends to vigorously  defend such actions,
                 if and when brought.

                 The  Company has  received  approximately  $42,000  from Taurus
                 relating to the  purchase  of shares by an unknown  investor in
                 June 1999.  The Company is holding such funds in escrow pending
                 disposition.

                 As of August 31, 2003, the Company has reserved  329,500 shares
                 of  common  stock  pending  possible   issuance  of  shares  in
                 satisfaction of outstanding subscription agreements.

               Litigation:

                 On February 29, 2000, Alexander C. Brosda and Andrew Seim filed
                 an  action  in the  United  States  District  Court in  Florida
                 against  the  Company.  The  action  alleges  that the  Company
                 violated the Securities  Exchange Act of 1934, as amended,  and
                 various Florida statutes,  by failing to effect the exchange of
                 150,000 shares of B.G.  Banking common stock held by Brosda and
                 Seim for 225,000 shares of the Company's  common stock. On June
                 5, 2000,  the Company  filed a motion to dismiss the  complaint
                 for  failure  to  state a  claim,  improper  venue  and lack of
                 jurisdiction,  respectively.  On January  23,  2001,  the court
                 dismissed the  plaintiffs'  claims  alleging  violations of the
                 Securities Exchange Act of 1934. The plaintiffs did not file an
                 amended  complaint,  and the action has been  dismissed  by the
                 court without prejudice.

                 However,  on September 26, 2001,  Taurus Venture  Capital Fund,
                 LLC and Taurus  filed a similar  claim  against the Company and
                 its  president.  The claim seeks  $2,000,000 for actual damages
                 based  upon a per  share  price of  $4.50,  treble  damages  of
                 $6,615,000  plus  interest  and fees.  In  November  2001,  the
                 Company  and its  president  filed a motion to dismiss or abate
                 the action and are  awaiting the  scheduling  by the court of a
                 hearing on the  motion.  On May 30,  2002,  the court  issued a
                 decision denying the motion to dismiss.

                 On August 6,  2002,  the  Company  and the  President  filed an
                 answer,   affirmative   defenses  and   counterclaims   against
                 plaintiffs,  denying  the  allegations  in  the  complaint  and
                 alleging as counterclaims the same claims as are alleged in the
                 following  described action pending in New York State,  seeking
                 damages in the amount of not less than $1,700,000 for breach of
                 fiduciary  duty,  breach  of  contract,  conversion  of  unjust
                 enrichment,  and seeking an accounting of plaintiff's books and
                 records.  The  Company  believes  that  they  have  meritorious
                 defenses and intends to  vigorously  defend the action.  On May
                 28,  2003,  the  Company  and its  president  filed a motion to
                 dismiss the action and are awaiting the scheduling by the court
                 of a hearing on the motion.


                                      F-7
<PAGE>
                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 4 - Contingencies (concluded):

               Litigation (concluded):

                 On March 7, 2000,  the  Company  filed an action in the Supreme
                 Court of New York, County of New York, against Taurus,  seeking
                 an amount of not less than  $1,700,000  for breach of fiduciary
                 duty, breach of contract,  conversion and unjust enrichment and
                 seeking an accounting of Taurus' books and records.  The action
                 arises out of B.G.  Banking's  confidential  private  placement
                 memorandum  dated  January 31,  1998 for the sale of  3,000,000
                 shares  of  common  stock at $1.00 per  share.  Taurus  filed a
                 motion to dismiss the action  which the court denied on October
                 5,  2000.  On  November  15,  2000,  a motion  filed by Taurus'
                 counsel to be relieved as counsel was granted.  On December 14,
                 2000, the court granted the Company's oral motion for the entry
                 of a default judgment against Taurus. On May 4, 2001, the Court
                 granted a motion filed by the defendant  and, as a result,  the
                 action  has  been  transferred  to the New York  State  Supreme
                 Court,  Delaware  County.  The Company is awaiting a date for a
                 hearing on its claim  against the  plaintiff  for damages.  The
                 Company intends to continue to litigate this action.

                 Although  it  cannot  predict  the  outcome  of the  litigation
                 described above,  management does not believe that the ultimate
                 outcome of the claims brought by the  plaintiffs  will not have
                 any  material  adverse  effects on the  Company's  consolidated
                 financial statements in subsequent periods.



Note 5 - Segment information:

               The Company has adopted the provisions of Statements of Financial
               Accounting  Standards No. 131,  "Disclosures about Segments of an
               Enterprise and Related Information ("SFAS 131").  Pursuant to the
               provisions of SFAS 131, the Company is reporting  segment  sales,
               cost of goods sold,  gross  margins and  inventories  in the same
               format  reviewed by the  Company's  management  (the  "management
               approach").  The Company  has two  reporting  segments:  "Banking
               Equipment" and "Office  Equipment." The Banking Equipment segment
               is comprised of the operations connected with the buying, selling
               and trading of new and refurbished  financial equipment for banks
               and other financial institutions. The Office Equipment segment is
               comprised of buying and selling office equipment and supplies.

               Net sales,  cost of sales and other related  segment  information
               follows  as of August  31,  2003 and for the three  months  ended
               August 31, 2003 and 2002:


                                      F-8
<PAGE>
                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 5 - Segment information (concluded):

                                                August           August
                                               31, 2003         31, 2002
                                              ----------      -----------

         Revenue:
             Banking Equipment                $  614,171      $   679,889
             Office Equipment                     91,725           30,555
                                              ----------      -----------

                   Totals                     $  705,896      $   710,444
                                              ==========      ===========

         Cost of goods sold:
             Banking Equipment                $  506,838      $   377,079
             Office Equipment                     61,116           19,746
                                              ----------      -----------

                   Totals                     $  567,954      $   396,825
                                              ==========      ===========

         Gross profit:
             Banking Equipment                $  107,333      $   302,810
             Office Equipment                     30,609           10,809
                                              ----------      -----------

                   Totals                     $  137,942      $   313,619
                                              ==========      ===========

         Segment assets:
             Inventories:
                Banking Equipment             $  720,522
                Office Equipment                   6,403
                                              ----------
                   Totals                        726,925

             Other assets                        672,934
                                              ----------

                   Total assets               $1,399,859
                                              ==========



                                      * * *







                                      F-9
<PAGE>

                                   SIGNATURES

         Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.




                 THE BANKER'S STORE, INC.




         By: /s/ PAUL D. CLARK
             ------------------------------

                 Paul D. Clark,

                 President, CEO and Director

                 (Principal Executive Officer)



         By: /s/ ALBERT BLANKENSHIP
             ------------------------------

                 Albert Blankenship,

                 Chief Financial Officer and Director

                 (Principal Accounting Officer)



Date: October 20, 2003