<PAGE>
                  UNITED STATES 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 fiscal quarter ended November 30, 2001

                           Commission File No.: 0-0880

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

                                    New York
           (State or Other Jurisdiction of Incorporation or Organization)

                  (I.R.S. Employer Identification No.) 11-2196303

                1535 Memphis Junction Road, Bowling Green, KY 42101
                      (Address of Principal Executive Offices)
         Registrant's Telephone Number, including Area Code: (270) 781-8453

        Securities registered pursuant to Section 12(b) of the Act: None
 Securities registered pursuant to Section 12(g) of Act: Common Stock, $.01 par
                                value per share.

      Check whether the issuer: (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the Registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days. [ ] Yes [X] No.

      As of January 9, 2002, the aggregate market value of the voting and
non-voting common equity held by non-affiliates of the Registrant was $170,032.
This aggregate market value is computed by reference to the last sale price of
such common equity on such date.

      14,947,215 shares, $.01 par value per share, as of January 9, 2002 (Number
of shares outstanding of each of the issuer's classes of common stock, as of the
latest practicable date)
<PAGE>
Part I

Item 1.  Financial Statements


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




                                    I N D E X

<TABLE>
<CAPTION>
                                                                               PAGE

<S>                                                                            <C>
PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

         CONDENSED CONSOLIDATED BALANCE SHEETS
           NOVEMBER 30, 2001 (UNAUDITED) AND MAY 31, 2001                       3

         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
           SIX AND THREE MONTHS ENDED NOVEMBER 30, 2001 AND 2000
           (UNAUDITED)                                                          4

         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
           SIX MONTHS ENDED NOVEMBER 30, 2001 AND 2000 (UNAUDITED)              5

         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
         (UNAUDITED)                                                           6-8
</TABLE>

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



                                      * * *

2
<PAGE>
                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                       NOVEMBER 30, 2001 AND MAY 31, 2001



<TABLE>
<CAPTION>
                                                               November           May
                              ASSETS                           30, 2001          31, 2001
                              ------                           --------          --------
                                                             (Unaudited)       (See Note 1)
<S>                                                          <C>               <C>
Current assets:
   Cash and cash equivalents                                 $   265,488       $  257,524
   Accounts receivable, net                                      134,713          157,680
   Inventories                                                   864,044          763,641
   Prepaid expenses and other current assets                      48,252           27,043
                                                             -----------       ----------
         Total current assets                                  1,312,497        1,205,888

Equipment and improvements, net                                   94,719           98,858
Other assets                                                       7,331            7,331
                                                             -----------       ----------
         Totals                                               $1,414,547       $1,312,077
                                                             ===========       ==========


                   LIABILITIES AND STOCKHOLDERS' EQUITY


Current liabilities:
   Current portion of long-term debt                          $   12,419       $   13,874
   Accounts payable and accrued expenses                         201,855           86,911
   Customer deposits                                             210,036          103,881
   Advances from principal stockholder                           261,972          261,972
   Private placement funds in dispute                             42,000           42,000
                                                             -----------       ----------
         Total current liabilities                               728,282          508,638

Long-term debt, net of current portion                             4,314            9,646
                                                             -----------       ----------
         Total liabilities                                       732,596          518,284
                                                             -----------       ----------

Contingencies

Stockholders' equity:
   Common stock, $.01 par value; 80,000,000 shares
      authorized; 14,947,215 shares outstanding                  149,473          149,473
   Additional paid-in capital                                    497,216          497,216
   Retained earnings                                              35,262          147,104
                                                             -----------       ----------
         Total stockholders' equity                              681,951          793,793
                                                             -----------       ----------
         Totals                                               $1,414,547       $1,312,077
                                                              ==========       ==========
</TABLE>





See Notes to Condensed Consolidated Financial Statements.


3
<PAGE>
                  THE BANKER'S STORE, INC. AND SUBSIDIARIES

               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            SIX AND THREE MONTHS ENDED NOVEMBER 30, 2001 AND 2000
                                 (Unaudited)



<TABLE>
<CAPTION>
                                                     Six Months Ended                       Three Months Ended
                                                         November 30,                          November 30,
                                                  -----------------------                 -----------------------
                                                   2001              2000                2001                2000
                                                   ----              ----                ----                ----
<S>                                        <C>                 <C>                 <C>                <C>
Revenue                                    $    832,627        $  1,320,139        $    431,406       $    595,615

Cost of goods sold                              562,820           1,023,008             239,190            468,130
                                           ------------        ------------        ------------       ------------
Gross profit                                    269,807             297,131             192,216            127,485

Selling, general and administrative
   expenses                                     382,553             222,622             177,949            101,913
                                           ------------        ------------        ------------       ------------
Income (loss) from operations                  (112,746)             74,509              14,267             25,572

Other income (expense)                              904                 (23)                763                 50
                                           ------------        ------------        ------------       ------------
Net income (loss)                          $   (111,842)       $     74,486        $     15,030       $     25,622
                                           ============        ============        ============       ============


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

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


See Notes to Condensed Consolidated Financial Statements.



4
<PAGE>
                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                   SIX MONTHS ENDED NOVEMBER 30, 2001 AND 2000
                                   (Unaudited)



<TABLE>
<CAPTION>
                                                                       2001             2000
                                                                       ----             ----
<S>                                                                 <C>              <C>
Operating activities:
   Net income (loss)                                                $(111,842)       $  74,486
   Adjustments to reconcile net income (loss) to net cash
      provided by operating activities:
      Depreciation and amortization                                    12,576            6,250
      Changes in operating assets and liabilities:
         Accounts receivable                                           22,967           23,616
         Inventories                                                 (100,403)         (75,554)
         Prepaid expenses and other current assets                    (21,209)           3,702
         Accounts payable and accrued expenses                        114,944         (105,066)
         Customer deposits                                            106,155          170,683
                                                                    ---------        ---------
               Net cash provided by operating activities               23,188           98,117

Investing activities - purchase of equipment and improvements          (8,437)          (6,397)

Financing activities - repayments of long-term debt                    (6,787)          (7,230)
                                                                    ---------        ---------

Net increase in cash and cash equivalents                               7,964           84,490
Cash and cash equivalents, beginning of period                        257,524          161,385
                                                                    ---------        ---------

Cash and cash equivalents, end of period                            $ 265,488        $ 245,875
                                                                    =========        =========

Supplemental disclosure of cash flow information:
   Interest paid                                                    $   1,177        $   1,334
                                                                    =========        =========
</TABLE>



See Notes to Condensed Consolidated Financial Statements.

5
<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 November 30, 2001, and its results of
            operations for the six and three months ended November 30, 2001 and
            2000 and its cash flows for the six months ended November 30, 2001
            and 2000. Information included in the condensed consolidated balance
            sheet as of May 31, 2001 has been derived from the audited
            consolidated balance sheet included in the Company's Form 10-KSB for
            the year ended May 31, 2001 (the "10-KSB") previously filed with the
            Securities and Exchange Commission (the "SEC"). Pursuant to rules
            and regulations of the SEC, certain information and disclosures
            normally included in financial statements prepared in conformity
            with accounting principles generally accepted in the United States
            of America have been condensed 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 consolidated financial statements and other
            information in the 10-KSB.

            The consolidated results of operations for the six and three months
            ended November 30, 2001 are not necessarily indicative of the
            results to be expected for the full year.


Note 2 - Net income (loss) per share:

            The Company presents "basic" income (loss) per share and, if
            applicable, "diluted" earnings per share pursuant to the provisions
            of Statement of Financial Accounting Standards No. 128, "Earnings
            per Share" ("SFAS 128"). Basic income (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 income per share is similar to that of basic
            income 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 during the six months ended November 30, 2001 and
            2000.


Note 3 - Contingencies:

            Private placement - B.G. Banking:

               Prior to The Banker's Store, Inc.'s reverse acquisition 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 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.

6
<PAGE>
                    THE BANKER'S STORE, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



Note 3 - Contingencies (continued):

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

            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 November 30, 2001, 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.

            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 November 30, 2001, the Company has reserved 329,500 shares of
            common stock pending possible issuance of shares in satisfaction of
            outstanding subscription agreements.


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

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



Note 3 - Contingencies (concluded):

          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
            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 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 time frame for which the Company to respond has
            not yet expired and it believes it has a meritorious defense and
            intends to vigorously defend the action.

            On March 7, 2000, the Company filed an action in the Supreme
            Court 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 is 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 oral
            motion for the entry of a default judgment against Taurus. By an
            Order entered on May 4, 2001, this action was transferred to
            Delaware County and the action is continuing.



                                    * * *


8
<PAGE>
Item 2.  Management's Discussion and Analysis

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

The matters discussed in this management's discussion and analysis of financial
condition and results of operations contain forward-looking statements that
involve risks and uncertainties. The Company's actual results could differ
materially from those discussed here. Factors that could cause or contribute to
such differences include, but are not limited to those discussed elsewhere in
this filing on Form 10-QSB. The Company disclaims, any intent or obligation to
update these forward-looking statements.

OVERVIEW

The Banker's Store, Inc. (the "Company") was established in 1968. The Company
remained dormant for many years until the Company completed the acquisition of
B.G. Banking Equipment, Inc., ("B.G. Banking") and Financial Building Equipment
Exchange, Inc., ("FBEE"), Kentucky corporations. The Company is now in the
business of buying, selling, and trading both new and refurbished financial
equipment to banks and other financial institutions. Commencing in June 2001,
the Company entered the office equipment and furniture retail business. The
Company markets the products throughout the United States primarily through
direct sales to financial institutions and other distributors supported by the
Company's direct sales force and soliciting new contacts through its presence on
the Internet. To date sales in the Company's office equipment and furniture
retail segment have been immaterial.

The Company anticipates that its 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 the Company's current and future products, order cancellations, or order
rescheduling or remanufacturing delays. The Company purchases and resells new
merchandise and refurbishes and ships its other products after receipt of orders
and has not developed a significant backlog for such products and does not
anticipate it will develop a material backlog for such products in the future.

Because the Company plans to increase its operating expenses, primarily for
personnel in the security equipment servicing sector, a planned new segment of
the business, and activities supporting newly-introduced products, new product
development and entering new markets, the Company's operating results would be
adversely affected if its sales did not correspondingly increase or if its
product development efforts are unsuccessful or are subject to delays.


<PAGE>
RESULTS OF OPERATIONS

The following table sets forth operating data as a percentage of net sales:

<TABLE>
<CAPTION>
                                    Six Months Ended             Three Months Ended
                                      November 30,                 November 30,
                                   2001        2000             2001          2000
                                   ----        ----             ----          ----

<S>                             <C>           <C>              <C>            <C>
Net sales                       100.0%        100.0%           100.0%         100.0%
Cost of sales                    67.6%         77.5%            55.4%          78.6%
                                 ----          ----             ----           ----

Gross profit                     32.4%         22.5%            44.6%          21.4%

Expenses                         45.9%         16.9%            41.3%          17.1%
                                 ----          ----             ----           ----

Income(loss) from operations    (13.5)%         5.6%             3.3%          4.3%
Other                              .1%                             .2%          --
                                 ----          ----             ----           ----

Net income(loss)                (13.4)%         5.6%             3.5%           4.3%
                                =====           ===              ===            ===
</TABLE>


RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2001 AS COMPARED TO
THE SIX MONTHS ENDED NOVEMBER 30, 2000.

Revenues:

Revenues were approximately $833,000 for the six months ended November 30, 2001
as compared to approximately $1,320,000 for the six months ended November 30,
2000 reflecting a decrease of approximately $487,000 or 36.9%. The decrease in
revenues during the six months ended November 30, 2001 was caused primarily by
the low interest rate environment which has negatively impacted the earnings of
financial institutions. Therefore, community banks 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 community banks will probably continue for the next quarter.

Cost of goods sold:

Cost of goods sold and related expenses for the six months ended November 30,
2001 were approximately $563,000 or 67.6% of net sales as compared to
approximately $1,023,000 or 77.5% of net sales for the six months ended November
30, 2000. Gross profit increased during the six months ended November 30, 2001
as compared to the six months ended November 30, 2000 primarily due to the ratio
of refurbished products sold to new products sold. The sale of refurbished or
used items carries a much higher gross profit than the sales of new items.


<PAGE>
Selling, general and administrative expenses:

Selling, general and administrative expenses were approximately $383,000 for the
six months ended November 30, 2001 as compared to approximately $223,000 for the
six months ended November 30, 2000 reflecting an increase of approximately
$160,000 or 71.7% over the same period last year. In the current year, the
Company had undertaken an increased general and administrative expense to create
the infrastructure necessary to meet the Company's marketing and production
goals.

Net Income (loss):

As a result of the aforementioned, the Company's net income (loss) during the
six months ended November 30, 2001 decreased by approximately $186,000 to
approximately a net loss of $112,000 ($.01 per share) as opposed to net income
of approximately $74,000 (or less than $.01 per share) for the comparable prior
period.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2001 AS COMPARED
TO THE THREE MONTHS ENDED NOVEMBER 30, 2000.

Revenues:

Revenues were approximately $431,000 for the three months ended November 30,
2001 as compared to approximately $595,000 for the three months ended November
30, 2000 reflecting a decrease of approximately $164,000 or 27.6%. The decrease
in revenues during the three months ended November 30, 2001 was caused primarily
by the low interest rate environment which has negatively impacted the earnings
of financial institutions. Therefore, community banks 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 community banks will probably continue for the next quarter.

Cost of goods sold:

Cost of goods sold and related expenses for the three months ended November 30,
2001 were approximately $239,000 or 55.4% of net sales as compared to
approximately $468,000 or 78.6% of net sales for the three months ended November
30, 2000. Gross profit increased during the three months ended November 30, 2001
as compared to the three months ended November 30, 2000 primarily due to the
ratio of refurbished products sold to new products sold. The sale of refurbished
or used items carries a much higher gross profit than the sales of new items.

Selling, general and administrative expenses:

Selling, general and administrative expenses were approximately $178,000 for the
three months ended November 30, 2001 as compared to approximately $102,000 for
the three months ended November 30, 2000 reflecting an increase of approximately
<PAGE>
$76,000 or 74.5% over the same period last year. In the current year, the
Company had undertaken an increased general and administrative expense to create
the infrastructure necessary to meet the Company's marketing and production
goals.

Net Income:

As a result of the aforementioned, the Company's net income during the three
months ended November 30, 2001 decreased by approximately $11,000 to $15,000
(less than $.01 per share) as opposed to approximately $26,000 (less than $.01
per share) for the comparable prior period.

LIQUIDITY AND CAPITAL RESOURCES

The Company has historically financed its operations through revenues from
operations, private and public placements of equity securities, debt and capital
lease financing.

At November 30, 2001, the Company had cash and cash equivalents of $265,488 and
working capital of $584,215. During the six months ended November 30, 2001, the
Company's cash and cash equivalents increased by $7,964. Cash and cash
equivalents provided by operations was $23,188 primarily due to the increases in
customer deposits and accounts payable and accrued expenses of $106,155 and
$114,944, respectively. These increases were partially offset by the Company
funding its net loss of $111,842 and the acquisition of additional inventory of
$100,403.

The Company is evaluating various alternatives in addressing its 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.

The Company believes that its available cash, cash from operations and funds
from existing credit arrangements will be sufficient to satisfy its funding
needs for at least the next 12 months. Thereafter, if cash generated from
operations is insufficient to satisfy the Company's working capital and capital
expenditure requirements, the Company 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. The Company's future liquidity and capital funding
requirements will depend on numerous factors, including the extent to which the
Company's 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,
facilities expansion needs. The failure by the Company to raise capital on
acceptable terms when needed could have a material adverse effect on the
Company's business, financial condition and results of operations.
<PAGE>
Part II

Item 1.  Legal Proceedings

      As of the date of this Quarterly Report on Form 10-QSB, the Registrant was
not involved in any material legal proceedings, other than those referenced in
Note 7 to the Registrant's financial statements contained in its Annual Report
on Form 10-KSB, to which reference is made, and except as follows:

      On September 26, 2001, the Registrant was named as a defendant (under the
names The Bank Store, Inc. and B.G. Banking Equipment, Inc. ("BGB")), in an
action filed in the Circuit Court of the Twelfth Judicial District, Manatee
County, Florida, by Taurus Venture Capital Fund, LLC and Taurus International
Investments, Inc. The Registrant's President was also named as a defendant. The
action alleges that the Registrant and Mr. Clark violated various Florida
statutes, by failing to effect the exchange of 150,000 shares of BGB common
stock held by Alexander Brosda and Andrew Seim (allegedly as beneficial owners
for plaintiffs), for 225,000 shares of the common stock of the Registrant. The
time for defendants to respond to the complaint has not yet expired. The
Registrant believes it has meritorious defenses, and intends to defend the
action with vigor.

      Reference is made to the description of the action filed by the Registrant
against Taurus Investments International, Inc. and Messrs. Seim and Brosda in
New York State Supreme Court, New York County. By order entered on May 4, 2001,
this action was transferred to New York State Supreme Court, Delaware County,
and the action is continuing.

Item 2.  Changes in Securities and Use of Proceeds

      During the period covered by this Quarterly Report on Form 10-QSB, there
were: (a) no material modifications to the instruments defining the rights of
the holders of any of Registrant's securities, nor (b) any securities issued by
the Registrant.

Item 3.  Defaults Upon Senior Securities

<PAGE>
      During the period covered by this Quarterly Report on Form 10-QSB, there
were no defaults upon the senior securities of Registrant.

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

      During the period covered by this Quarterly Report on Form 10-QSB, there
were no matters submitted to a vote of security holders.

Item 5.  Other Information

      None

Item 6.  Exhibits and Reports on Form 8-K

      There are no exhibits filed with this Quarterly Report on Form 10-QSB.

      There were no Current Reports on Form 8-K filed during the period covered
by this Quarterly Report on Form 10-QSB.


                                   SIGNATURES


      In accordance with the requirements of the Securities Exchange Act of
1934, the Registrant has caused this Quarterly Report on Form 10-QSB 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 and
     Chief Executive Officer

By:/s/ Albert Blankenship
   ------------------------------
     Albert Blankenship, Chief
     Financial Officer

Dated: January 14, 2002