SECURITIES AND EXCHANGE COMMISSION
                       WASHINGTON, D.C. 20549

                              FORM 10-QSB

             QUARTERLY REPORT UNDER SECTION 13 or 15(d)
               OF THE SECURITIES EXCHANGE ACT OF 1934


For the Quarter Ended:   AUG. 31, 1999   Commission File No.: 2-76262-NY
                       -----------------                      -----------


                        LASER MASTER INTERNATIONAL, INC.
   -------------------------------------------------------------------------
             (Exact name of Registrant as Specified in its charter)


           New York                                  11-2564587
------------------------------          ---------------------------------
  (State of Incorporation)              (IRS Employee Identification No.)


                  1000 First Street, Harrison, New Jersey 07029
   -------------------------------------------------------------------------
                         (Address of Principal Offices)


                                 (973) 482-7200
                                ----------------
                                Telephone Number

                                       N/A
   -------------------------------------------------------------------------
       (Former name, address and fiscal year if changed since last report)


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 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 issuer's classes of
common stock, as of the close of the period covered by this report:

Common Stock - 10,615,380 shares - each share $0.01 par value.


<PAGE>







LASER MASTER INTERNATIONAL, INC.
INDEX



PART I - FINANCIAL INFORMATION                             PAGE


Item 1. Financial Statements

   Condensed Consolidated Balance Sheets - Aug 31, 1999      3

   Condensed Consolidated Statements of Operations for
     the Three Months Ended Aug 31, 1999 and Aug 31, 1998    5

   Condensed Consolidated Statements of Operations for
   the Nine Months Ended Aug 31, 1999 and Aug 31, 1998       6

   Condensed Consolidated Statements for Cash Flows for
   the Nine Months Ended Aug 31, 1999 and Aug 31, 1998       7

   Notes to Condensed Consolidated Financial Statements      8

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations.                12

PART II. OTHER INFORMATION                                  13


                                      -2-






<PAGE>




                          PART I. FINANCIAL INFORMATION

                        LASER MASTER INTERNATIONAL, INC.
                          AND WHOLLY OWNED SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>


                                     ASSETS

                                                                        AUG 31,
                                                                         1999
                                                                     -----------
CURRENT ASSETS:
<S>                                                                  <C>
  Cash in Banks                                                      $    69,070
  Marketable Securities                                                  497,946
  Accounts Receivable - Net                                            3,130,822
  Merchandise Inventory                                                1,567,356
  Prepaid Expenses                                                        22,250
                                                                     -----------
TOTAL CURRENT ASSETS                                                 $ 5,287,444
                                                                     -----------
FIXED ASSETS:
  Factory Building & Improvements                                    $ 5,309,698
  Land - Factory Site                                                    215,000
  Machinery & Equipment                                                8,652,777
  Engraving Inventory                                                    878,456
  Installation Cost                                                      968,083
  Furniture & Fixtures                                                   134,849
                                                                     -----------
TOTAL                                                                $16,158,863

Less:  Accum. Depreciation                                             6,463,599
                                                                     -----------
TOTAL FIXED ASSETS                                                   $ 9,695,264
                                                                     -----------
OTHER ASSETS:
  Deferred Charges                                                   $    69,570
  Escrow Acct. - EDA                                                      69,937
  Loans Receivable                                                       451,977
  CSV - Insurance                                                         93,656
                                                                     -----------

TOTAL OTHER ASSETS                                                   $   685,140
                                                                     -----------
TOTAL ASSETS                                                         $15,667,848
                                                                     ===========

</TABLE>


The accompanying notes to financial statements are an integral part of this
statement and should be read in conjunction herewith.

                                      -3-


<PAGE>



                        LASER MASTER INTERNATIONAL, INC.
                          AND WHOLLY OWNED SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>

                                   LIABILITIES


                                                                        AUG 31,
                                                                         1999
                                                                     -----------
CURRENT LIABILITIES:
<S>                                                                  <C>
  Accounts Payable                                                   $ 1,337,334
  Accrued Expenses & Taxes                                               204,627
  Current Portion of Long Term Debt                                      543,335
  Loan - Merrill Lynch                                                 1,365,373
                                                                     -----------
TOTAL CURRENT LIABILITIES                                            $ 3,450,669
                                                                     -----------
LONG TERM LIABILITIES:
  Non-Current Portion of Long Term
    Debt                                                             $ 3,718,332
                                                                     -----------
TOTAL LONG TERM LIABILITIES                                          $ 3,718,332
                                                                     -----------
TOTAL LIABILITIES                                                    $ 7,169,001
                                                                     -----------
STOCKHOLDERS' EQUITY:
  Capital Stock - Authorized
    50,000,000 Shares at 1c Par Value
    Issued and Outstanding 10,615,380                                $   106,154
    Shares at 8/31/99 Paid in Capital                                  5,424,412
    Unrealized Gain                                                          543
    Retained Earnings                                                  2,967,738
                                                                     -----------
TOTAL STOCKHOLDERS' EQUITY                                           $ 8,498,847
                                                                     -----------
TOTAL LIABILITIES & STOCKHOLDERS'
EQUITY                                                               $15,667,848
                                                                     ===========


</TABLE>


The accompanying notes to financial statements are an integral part of this
statement and should be read in conjunction herewith.


                                       -4-



<PAGE>



                        LASER MASTER INTERNATIONAL, INC.
                          AND WHOLLY OWNED SUBSIDIARIES
                        CONSOLIDATED STATEMENT OF INCOME
                           FOR THE THREE MONTHS ENDED


<TABLE>
<CAPTION>


                                                     Aug 31,           Aug 31,
                                                      1999              1998
                                                  -----------       -----------
<S>                                               <C>               <C>
REVENUES                                          $ 4,220,214       $ 4,119,471
                                                  -----------       -----------
Depreciation Expense                              $   129,423       $   118,348

Cost of Sales                                       2,888,354         2,810,346
                                                  -----------       -----------
TOTAL COST OF SALES                               $ 3,017,777       $ 2,928,694
                                                  -----------       -----------
GROSS PROFIT                                      $ 1,202,437       $ 1,190,777
                                                  -----------       -----------
OPERATING EXPENSES:
  Selling Expenses                                $   361,056       $   387,598
  General & Administrative Expenses                   514,799           598,628
                                                  -----------       -----------
TOTAL OPERATING EXPENSES                          $   875,855       $   986,226
                                                  -----------       -----------
OPERATING PROFIT                                  $   326,582       $   204,551

Interest & Finance Charges                            148,027           100,686
Interest & Dividend Income                             (8,033)           (8,578)
                                                  -----------       -----------
NET EARNINGS BEFORE FIT                           $   186,588       $   112,443
  Less: FIT Provision - Current                          --                --
  Tax Effect of NOL Carryforward                         --                --
                                                  -----------       -----------
NET EARNINGS FOR THE PERIOD                       $   186,588       $   112,443
                                                  ===========       ===========

EARNINGS PER SHARE *                              $       .02       $       .01
                                                  ===========       ===========
DIVIDENDS PER SHARE                                       -0-               -0-
                                                  ===========       ===========
<FN>

* Earnings per share are based on 10,615,380 weighted shares outstanding at
8/31/99 & 10,615,380 shares outstanding at 8/31/98.
</FN>
</TABLE>

The accompanying notes to financial statements are an integral part of this
statement and should be read in conjunction herewith.

                                       -5-


<PAGE>



                        LASER MASTER INTERNATIONAL, INC.
                          AND WHOLLY OWNED SUBSIDIARIES
                        CONSOLIDATED STATEMENT OF INCOME
                            FOR THE NINE MONTHS ENDED



<TABLE>
<CAPTION>

                                                    Aug 31,           Aug 31,
                                                     1999              1998
                                                 -----------       -----------

<S>                                              <C>               <C>
REVENUES                                         $ 11,089,345      $ 10,584,541
                                                 ------------      ------------
Depreciation Expense                             $    388,269      $    355,043

Cost of Sales                                       7,981,968         7,248,605
                                                 ------------      ------------
TOTAL COST OF SALES                              $  8,370,237      $  7,603,648
                                                 ------------      ------------
GROSS PROFIT                                     $  2,719,108      $  2,980,893
                                                 ------------      ------------
OPERATING EXPENSES:
  Selling Expenses                               $    954,599      $  1,166,203
  General & Administrative Expenses                 1,167,489         1,388,196
                                                 ------------      ------------
TOTAL OPERATING EXPENSES                         $  2,122,088      $  2,554,399
                                                 ------------      ------------
OPERATING PROFIT                                 $    597,020      $    426,494

  Interest & Finance Charges                          301,818           311,010
  Interest & Dividend Income                          (20,167)          (31,316)
                                                 ------------      ------------
NET EARNINGS BEFORE FIT                               315,369      $    146,800
  Less: FIT Provision - Current                          --                --
  Tax Effect of NOL Carryforward                         --                --
                                                 ------------      ------------
NET EARNINGS FOR THE PERIOD                      $    315,369      $    146,800
                                                 ============      ============

EARNINGS PER SHARE *                             $        .03      $        .01
                                                 ============      ============
DIVIDENDS PER SHARE                                       -0-               -0-
                                                 ============      ============
<FN>


* Earnings per share are based on 10,615,380 weighted shares outstanding at Aug
31, 1999 and on Aug 31, 1998 10,615,380.
</FN>
</TABLE>

The accompanying notes to financial statements are an integral part of this
statement and should be read in conjunction herewith.

                                       -6-


<PAGE>



                        LASER MASTER INTERNATIONAL, INC.
                          AND WHOLLY OWNED SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                NINE MONTHS ENDED
<TABLE>
<CAPTION>


                                                    Aug 31           Aug 31
                                                     1999            1998
                                                  -----------     -----------
Net Cash Flow From Operating
Activities:

<S>                                               <C>               <C>
  Net Income                                      $   315,369       $   146,800

Items Reflected in Net Income
Not Requiring Cash:
  Depreciation & Amortization                         388,269           355,043
                                                  -----------       -----------
                                                  $   703,638       $   501,843
Cash Flow Provided From Operations
  Accounts Receivable                             $   356,615       $  (661,079)
  Inventories                                         485,000           309,000
  Prepaid Expenses                                     53,256            35,504
  Sundry Receivable                                   107,761           127,347
  Accounts Payable                                    (20,106)         (104,591)
  Accrued Expenses                                    117,198           (20,476)
                                                  -----------       -----------
Cash Flow Provided by Operations                  $ 1,803,362       $   187,548
Cash Flow Provided from (used for)
Investment Purposes:
  Additions to Fixed Assets                       $  (409,931)      $  (109,812)
Increase in Other Assets                              (81,931)         (280,116)
  Marketable Securities                               (21,861)          (27,623)
                                                  -----------       -----------
Total Cash Flow Provided from                     $  (513,723)      $  (417,551)
Investment Purposes

Cash Flow Provided From (used for)
Financing Purposes:
Increase in Long Term Debt                         (1,459,785)          (76,775)
                                                  -----------       -----------
Cash Flow Used for Financing                       (1,459,785)          (76,775)

Net Cash Flow                                     $  (170,146)      $  (306,778)
Cash and Cash Equivalents at
 Beginning of Period                                  239,216           412,353
                                                  -----------       -----------
Cash and Cash Equivalents at
 End of Period
                                                  $    69,070       $   105,575
                                                  ===========       ===========

</TABLE>


The accompanying notes to financial statements are an integral part of this
statement and should be read in conjunction herewith.


                                       -7-



<PAGE>



NOTE 1.  BASIS OF PREPARATION OF FINANCIAL STATEMENTS AND CONSOLIDATING
         PRINCIPLES

         The consolidated financial statements include the accounts of Laser
         Master International Inc. and its wholly owned subsidiaries. All
         significant intercompany balances and transactions have been eliminated
         in consolidation.

         The company was founded in 1981 and prints for the textile industry and
         the gift wrap paper industry. The company sells its products and
         services nationwide through its direct sales force and resellers. In
         addition the company has a real estate division that rents space in the
         factory buildings owned by the company.

         All intercompany transactions and balances have been eliminated in
         accordance with established accounting principles.

         Name and brief description of companies under common control:

         1.  FLEXO-CRAFT PRINTS INC.

             This company has for approximately 17 years been engaged in the
             business of commercial printing and engraving, utilizing a laser
             technique. The company principally produces an extensive line of
             patterns and designs which are sold to industrial customers engaged
             in the manufacture of varied end products.

         2.  HARRISON REALTY CORP.

             This company owns and operates a 240,000 sq. ft. factory
             building in Harrison, New Jersey. There are two
             unaffiliated tenants currently occupying 49% of the
             space.

         3. PASSPORT PAPERS INC & EAST RIVER ARTS INC.

             These Companies are Sales Corporations which sell products printed
             by Flexo Craft Prints Inc. They each sell under their own labels
             and in their respective markets.

         a.  METHOD OF ACCOUNTING FOR THE BUSINESS COMBINATION:

             This business combination has been accounted for as a
             reorganization under common control.

         b. PERIOD FOR WHICH RESULTS OF OPERATIONS OF THE MERGED COMPANIES ARE
            INCLUDED IN THE INCOME STATEMENT OF THE PARENT COMPANY:


            The income statement of Laser Master International Inc. reflects the
            result of its operations on a consolidated basis for the nine months
            ended Aug 31, 1999 and Aug 31, 1998.


                                       -8-
<PAGE>

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

         (a) The statements are prepared on the accrual basis of accounting.

         (b) Inventory valuation:

             Inventories are stated at the lower of cost (first-in, first-out)
             or market.

         (c) Depreciation of property, plant, equipment and furniture is
             calculated on the straight line method based on estimated useful
             lives of 10 to 33 years for buildings and improvements and 3 to 10
             years for machinery, equipment and furniture.

         (d) Taxes:

             Laser Master International, Inc. is a "C" corporation with the
             Federal, State and City taxing authorities. All corporate taxes are
             accrued and paid on the corporate level.

NOTE 3.  ACCOUNTS RECEIVABLE

         The account on the balance sheet of Laser Master International Inc.
         referred to as "Accounts Receivable-Net" represents amounts due from
         customers for goods sold and delivered on a current basis. The accounts
         receivable so stated are encumbered to one of the company's lenders.

NOTE 4.  INVENTORIES

         The inventories are valued at the lower of cost or market on a
         first-in, first-out basis.

NOTE 5.  FACTORY BUILDING AND IMPROVEMENTS

         One of the wholly owned subsidiaries of the company, Harrison Realty
         Corp., owns the land and the building situated at 1000 First Street,
         Harrison, New Jersey. The building is encumbered by a mortgage obtained
         from Fleet Bank and the New Jersey EDA.

NOTE 6.  MACHINERY AND EQUIPMENT

         The machinery and equipment is owned by the wholly owned subsidiary
         Flexo-Craft Prints Inc. It consists of various pieces of heavy
         equipment, the acquisition of which has been financed on an individual
         basis at the time of purchase and installation. For details of these
         encumbrances, reference is made to the consolidated schedule of total
         debt in the 10K.



                                      -9-


<PAGE>




NOTE 7.  DEPRECIATION

         Property, plant and equipment is stated at cost. Depreciation is
         computed by applying the straight-line method to individual items.
         Where accelerated depreciation methods are used for tax purposes,
         deferred income taxes may be recorded. Maintenance and repairs were
         charged to expenses as incurred.


                                            08/31/99        08/31/98
                                            --------        --------

         Depreciation charged to
         Cost of Sales                      $388,269        $442,633
                                            ========        ========


         The annual depreciation rates used are as follows:

         Building and Improvements                    3%

         Machinery and Equipment                  10% - 14.3%

         Furniture and Fixtures                      10%


NOTE 8.  ENGRAVING INVENTORY

         The company's principal operating subsidiary, Flexo-Craft Prints Inc.
         is engaged in the manufacture of designs and patterns which by means of
         a laser engraving process grooves are engraved on a rubber sleeve, and
         by means of a computer color separation (up to six colors) fabricate
         the matrix for the printing phase of operations.

         In order to present to the trade a wide selection of proprietary
         patterns and designs, the company maintains a constant library of
         approximately 5,000 sleeves. In case of obsolete or discontinued
         designs, sleeves become reusable after mechanically grinding flat the
         old pattern and vulcanizing the surface.

         For accounting purposes, an obsolescence factor is charged based on the
         entire cost of discontinued patterns, exclusive of the extended life of
         the reusable rubber sleeves. Historically this method results in a
         provision for depreciation of l0% per year of the total library
         inventory of complete patterns on sleeves.


NOTE 9.  TAX LOSS CARRYFORWARD

         On November 30, l998 the company had a net operating loss carryforward
         of $227,460.


                                      -10-


<PAGE>



NOTE 10. REMUNERATION OF DIRECTORS AND OFFICERS
                                                                 Annual
Name            Capacity in which remuneration was received      Salary
------------    -------------------------------------------     --------
Mendel Klein    President, Treasurer, Chairman of the Board     $125,000
Leah Klein      Vice President, Secretary, Director                -0-
Mirel Spitz     Vice President, Office Manager, Director           -0

         Mr. Mendel Klein, pursuant to an employment contract entered into with
         the company which became effective upon completion of the public
         offering, receives an annual salary of $125,000. Additionally, Mr.
         Klein will participate in group life, accident and hospitalization
         insurance, provide for all key employees, and he will have the use of a
         company owned automobile. No other officer or director has a contract
         of employment with the company. There are no consulting agreements in
         existence between the company and any officers.

NOTE 11.  CONTINGENT LIABILITIES

         The Company is contingently liable to Fleet Bank of New Jersey for
         letters of credit in the amount of $4,825,972 issued in conjunction
         with the New Jersey Tax Exempt Bonds which financed the company's new
         factory building and 8 color press. Fleet Bank has a 1st lien on the
         assets of Harrison Realty and 2nd and 3rd liens on the assets of
         Flexo-Craft.

NOTE 12. EARNINGS PER SHARE - 10,615,380 SHARES COMMON STOCK PAR VALUE $0.0l at
         8/31/99 and 10,615,380 shares at 8/31/98.

                                                Nine Months ended

                                           08/31/99            08/31/98
                                           --------            --------
         Net earnings per share -          $  .03              $  .01

NOTE 13.  ALLOWANCE FOR DOUBTFUL ACCOUNTS

         Bad debts are written off as they occur. An allowance for doubtful
         accounts has been established in the amount of $404,500 or 13% of
         accounts receivable.

NOTE 14.  YEAR 2000 COMPLIANCE

         Management has addressed the concerns of potential year 2000 computing
         problems, both internally and with external parties, and believes that
         significant additional costs will not be incurred because of this
         circumstance.


                                      -11-


<PAGE>




               MANAGEMENT'S COMPARATIVE DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                       FOR THE THREE AND NINE MONTHS ENDED
                          AUG 31, 1999 AND AUG 31, 1998

                              RESULTS OF OPERATIONS
                              ---------------------

REVENUES

For the nine months ended Aug 31, 1999 revenues increased 5% from the prior
year. For the quarter ended Aug 31, 1999 revenues increased 2% from the same
period from the prior year. This increase was primarily the result of increased
sales volume through orders from existing customers. Management has hired
additional sales people to develop business in new markets such as home
furnishing, packaging and plates which the company is capable of servicing.
There has been positive feedback from potential customers in these markets but
any actual orders most likely won't be shipped until the next fiscal year.
Management attributes most of the improved performance to the contribution of
the 8 color press which increases the company's capacity and efficiency due to
the significant improvement in printing speeds reached and range of products.


GROSS PROFIT

For the three months ended Aug 31, 1999 gross profit was 28% as compared to 28%
for the same period in the previous year. The same margins were a direct result
of a reduction in certain inventory items at lower prices.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses decreased for the three months
ended Aug 31, 1999 over the same period for the previous year. This was as a
result of the Company's investment in advanced computer software and hardware
plus cost controls on salesman.


INTEREST EXPENSE

Interest expense decreased for the first nine months of 1999 as compared to the
same period for the previous year. This was as a result of lower levels of debt.

FINANCIAL CONDITION AND LIQUIDITY

The Company is well positioned to meet anticipated future capital requirements
necessary for purchase of equipment and financing of current operations. At Aug
31, 1999 the Company had working capital of $1,836,775. Liquidity is sustained
principally through funds provided from operations with unused bank lines of
credit available to provide additional sources of capital when required.
Management does not anticipate any difficulties in financing existing
operations.


                                      -12-



<PAGE>








                        PART II.  OTHER INFORMATION
ITEM 1.  LITIGATION

         None

ITEM 2.  CHANGES IN SECURITIES

         None


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None

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

         None













                                  -13-


<PAGE>



                               SIGNATURES

Pursuant to the requirements of the Securities Act of 1934, the

Registrant has duly caused this report to be signed on its behalf by the

undersigned thereunto duly authorized.




                                  LASER MASTER INTERNATIONAL, INC.
                                  --------------------------------
                                  (Registrant)


      October 14, 1999             /s/ Mendel Klein
      -----------------           --------------------------------
           Date                   MENDEL KLEIN, PRESIDENT


      October 14, 1999            /s/ Leah Klein
      -----------------           --------------------------------
           Date                   LEAH KLEIN, VICE PRESIDENT/SEC'Y






                                      -14-








<PAGE>




          The Registrant or any of its consolidated subsidiaries have

not consummated, not have they participated in a business combination

during any of the periods covered by the report, nor has a business

combination occurred during the current fiscal year.

          There have been no material retroactive prior period

adjustments made during any period included in this report.

Accordingly, there have been no material prior period adjustments

which had an effect upon net income, total and per share, nor upon the

balance of retained earnings.





                                      -15-