Securities and Exchange Commission

                             Washington, D.C. 20549

                                   Form 10-QSB

     [X]  Quarterly Report Pursuant to Section 13 or 15 (D) of the Securities
          Exchange Act of 1934

                      For Quarter Ended September 30, 2003

                                       Or

     [ ]  Transition Report Pursuant to Section 13 or 15(d) of the Securities
          Exchange Act of 1934 For the Transition Period from

                               ________ to _______

                        Commission file number 33-948884

                           Coates International, Ltd.
             (Exact Name of Registrant as Specified in its Charter)

           Delaware                                         22-2925432
 (State or other Jurisdiction of                         (I.R.S. Employer
 Incorporation or Organization)                         Identification No.)

          Highway 34 & Ridgewood Road, Wall Township, New Jersey 07719
               (Address of Principal Executive Office) (Zip Code)

                                 (732) 449-7717
               (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 [ ]

As of September  30, 2003,  there were  265,273,192  shares of the  Registrant's
common stock were issued and outstanding.


<PAGE>



                    COATES INTERNATIONAL, LTD. AND SUBSIDIARY
                 INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2003






                                                                          Page

Financial Statements

     Condensed Consolidated Balance Sheet                                  2

     Condensed Consolidated Statements of Operations                       3

     Condensed Consolidated Statements of Cash Flows                       4

     Notes to the Condensed Consolidated Financial Statements              5


<PAGE>



Item 2   Management's Discussion and Analysis of Financial Condition       6
         and Results of Operations

Item 3   Controls and Procedures                                           --

PART II  -  OTHER INFORMATION

Item 1.  Legal Proceedings                                                 10
Item 2.  Changes in Securities                                             10
Item 3.  Defaults upon Senior Securities                                   10
Item 4.  Submission of Matters to a Vote of Security Holders               10
Item 5.  Other Information                                                 10
Item 6.  Exhibits and Reports on Form 8-K                                  10

SIGNATURES                                                                 11

Certifications pursuant to Sections 906 and 302 of the
Sarbanes-Oxley Act of 2002                                              12 - 14




<PAGE>


                    COATES INTERNATIONAL, LTD. AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEET
                               SEPTEMBER 30, 2003
<TABLE>
<CAPTION>

<S>                                                                                     <C>
      Assets
Current Assets
   Cash                                                                                 $695,094
   Inventory                                                                             440,119
   Deferred offering costs                                                                44,870
                                                                                    ------------

      Total Current Assets                                                             1,180,083

Property, Plant and Equipment - Net of accumulated depreciation of $574,077            1,633,702

Other Assets
   Mortgage loan costs, net of accumulated amortization of $58,374                         6,486
   Deposits                                                                                2,500
                                                                                    ------------

      Total Assets                                                                     2,822,771
                                                                                    ============

      Liabilities and Stockholders' Equity

Current Liabilities
   Current portion of mortgage payable                                                     3,800
   Accounts payable and accrued expenses                                                 755,566
   Due to officer                                                                        101,000
                                                                                    ------------

        Total Current Liabilities                                                        860,366

   Customer deposits                                                                       4,500
   License deposits                                                                      940,000
   Mortgage payable, net of current portion                                              869,635
                                                                                    ------------
        Total Liabilities                                                              2,674,501
                                                                                    ------------
Minority interest                                                                              -
Stockholders' Equity
    Common stock, $.00001 par value, 1,000,000,000 shares authorized, 265,273,192
    shares issued and outstanding                                                          2,653
    Additional paid-in capital                                                        16,239,879
      Retained earnings (Deficit)                                                    (16,094,262)
                                                                                    ------------

           Total Stockholders' Equity                                                    148,270
                                                                                    ------------
           Total Liabilities and Stockholders' Equity                                 $2,822,771
                                                                                    ============
</TABLE>

    See notes to the condensed financial statements.

                                       2

<PAGE>



                    COATES INTERNATIONAL, LTD. AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                    Three Months Ended                  Nine Months Ended
                                       September 30,                      September 30,
                               ----------------------------------------------------------------
                                    2003             2002             2003               2002
                               -------------    -------------    -------------    -------------
<S>                            <C>              <C>              <C>              <C>
Revenue                        $           -    $           -    $           -    $           -
                               -------------    -------------    -------------    -------------
Operating Expenses:
  Research and
development costs -
     related party                    23,000                -           95,000                -

  Research and
     development costs               150,057           92,374          190,115          319,444

  General and
     Administrative
     expenses                        400,945          383,089        1,008,713        1,751,495

  Depreciation and
     amortization expense             19,058           13,478           53,922           40,434
                               -------------    -------------    -------------    -------------
     Total Operating
       Expenses                      593,060          488,941        1,347,750        2,111,373
                               -------------    -------------    -------------    -------------
  (Loss) From Operations            (593,060)        (488,941)      (1,347,750)      (2,111,373)

Other Income (Expense):

  Interest income                        762            3,740            2,876            9,790

  Interest expense                   (30,550)         (31,225)        (116,797)         (96,318)

  Gain on sale of
     equipment                             -                -                -            2,800
                               -------------    -------------    -------------    -------------
     Total Other Income
      (Expense)                      (29,788)         (27,485)        (113,921)         (83,728)
                               -------------    -------------    -------------    -------------

Minority interest in loss of
  subsidiary                          56,119                -          100,000                -
                                                -------------    -------------    -------------

Net (Loss) Before Benefit
  From Income Taxes                 (566,729)        (516,426)      (1,361,671)      (2,195,101)

Benefit From Income Taxes                  -                -                -                -
                               =============    =============    =============    =============
Net (Loss)                     $    (566,729)   $    (516,426)      (1,361,671)   $  (2,195,101)
                               =============    =============    =============    =============

(Loss) Per Share               $        0.00    $        0.00            (0.01)   $       (0.01)
                               =============    =============    =============    =============
Weighted Average Number of
Common                           265,251,573      265,049,240      265,214,484      264,918,529
  Shares Outstanding

    See notes to the condensed financial statements.

</TABLE>

                                       3
<PAGE>

                    COATES INTERNATIONAL, LTD. AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



                                                    Nine Months Ended
                                                      September 30,
                                               --------------------------
                                                   2003           2002
                                               -----------    -----------
Cash Flows From Operating Activities           $(1,360,116)   $  (817,358)
Cash Flows From Investing Activities
                                                         -        (25,893)
Cash Flows From Financing Activities
   Repayment of mortgage payable                   (19,072)       (16,688)
   Proceeds from issuance of stock                 895,015      1,542,500
   Proceeds from officer loan                      100,000              -
                                               -----------    -----------
   Net Cash Provided by Financing Activities       975,943      1,525,812
                                               -----------    -----------
                                                  (384,173)       682,561
   Net Increase (Decrease) in Cash
   Cash - Beginning of Periods                   1,079,267        714,329
                                               -----------    -----------
   Cash - End of Periods                       $   695,094    $ 1,396,890
                                               ===========    ===========


    See notes to the condensed financial statements.


                                       4
<PAGE>

                    COATES INTERNATIONAL, LTD. AND SUBSIDIARY
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


    NOTE 1 - BASIS OF PRESENTATION

    The accompanying  unaudited condensed consolidated financial statements have
    been prepared in accordance with generally  accepted  accounting  principles
    for interim  financial  information and with the instructions to Item 310 of
    Regulation S-B. Accordingly,  they do not include all of the information and
    footnotes required by generally accepted accounting  principles for complete
    financial  statements.  In  the  opinion  of  management,   all  adjustments
    (consisting of normal recurring  accruals)  considered  necessary for a fair
    presentation have been included. Operating results for the nine months ended
    September  30, 2003 and 2002 are not  necessarily  indicative of the results
    that may be expected  for the years ended  December  31, 2003 and 2002.  The
    unaudited condensed financial  statements should be read in conjunction with
    the consolidated  financial statements and footnotes thereto included in the
    Company's annual report on Form 10-K for the year ended December 31, 2002.

    NOTE 2 - ACQUISITION

    On April 30, 2003, the Company acquired 51% of the outstanding  voting stock
    of Coates Motorcycle Company,  Ltd.  Accordingly,  the results of operations
    for Coates Motorcycle  Company,  Ltd. have been included in the accompanying
    consolidated  financial  statements from that date forward.  The acquisition
    was made to allow Coates  Motorcycle  Company,  Ltd. to manufacture and sell
    the Coates  Motorcycle.  Pursuant to the agreement,  the Company granted the
    exclusive  sub  license  for  North,  South and  Central  America  and their
    territories to manufacturer  and sell the Coates  Motorcycle in exchange for
    51% of the common shares of Coates Motorcycle Company, Ltd. In addition, the
    Company has an  anti-dilution  right and shall  receive a royalty fee of $50
    for each unit sold.

    The minority interest of Coates Motorcycle Company,  Ltd. is owned by George
    Coates,  Gregory Coates and the Coates Trust. Their interest was acquired in
    exchange for the world wide  (excluding  North,  South and Central  America)
    license to manufacture and sell the Coates Motorcycle.

    Pro forma amounts have not been included as Coates Motorcycle Company,  Ltd.
    was  an  inactive  company  with  no  assets  or  liabilities  prior  to the
    acquisition.

    NOTE 3 - CAPITAL STOCK

    For the nine  months  ending  September  30,  2003,  the  Company  issued an
    aggregate 156,002 shares of its common stock for cash proceeds of $895,015.

    The  Company  issued  23,750  common  shares  to  consultants  for  services
    rendered. The shares were valued at $178,125.

    NOTE 4 - DUE TO OFFICER

    During the three months ended  September 2003, an officer of the Company and
    minority  shareholder  of Coates  Motorcycle  Company Ltd,  advanced  Coates
    Motorcycle Company Ltd $100,000.

    NOTE 5 - SUBSEQUENT EVENTS

    During November 2003, an officer of the Company and minority shareholder of
    Coates Motorcycle Company Ltd. advanced Coates Motorcycle Company Ltd. an
    additional $100,000.

                                        5

<PAGE>



Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

         Except  for  historical  information,  the  Company's  reports  to  the
         Securities  and Exchange  Commission on Form 10-KSB and Form 10-QSB and
         periodic  press  releases,  as  well  as  other  public  documents  and
         statements,  contain "forward-looking statements" within the meaning of
         Section 21E of the  Securities  Exchange  Act of 1934.  Forward-looking
         statements  are  subject to risks and  uncertainties  that could  cause
         actual results to differ  materially from those expressed or implied by
         the statements.  These risks and uncertainties include general economic
         and  business  conditions,  development  and market  acceptance  of the
         Company's products, current dependence on Well to Wire Energy, Inc. and
         other risks and  uncertainties  identified in the Company's  reports to
         the Securities and Exchange  Commission,  periodic press  releases,  or
         other public documents or statements.

         Readers are  cautioned not to place undue  reliance on  forward-looking
         statements. The Company undertakes no obligation to republish or revise
         forward-looking statements to reflect events or circumstances after the
         date hereof or to reflect the occurrences of unanticipated events.

         Background

         Coates   International  Ltd.  (CIL,  or  the  Company)  is  a  Delaware
         corporation  organized  in  October  1991 by  George  J.  Coates as the
         successor  in  interest  to a  Delaware  corporation  of the same  name
         incorporated in August 1988.

         CIL has  completed  the  development  of a spherical  rotary  valve SRV
         Engine  (the  "Coates  SRV  Engine"),  the  development  of  which  was
         initiated  by its  founder,  George  J.  Coates,  for  use in  internal
         combustion engines of all types. With respect to the Coates SRV Engine,
         seven applicable United States patents (the "Coates Patents") have been
         issued to George J. Coates.  CIL holds an exclusive license from George
         J. Coates and his son Gregory Coates,  to  manufacture,  sell and grant
         sub-licenses  with  respect to  products  based on the Coates  Patents,
         within  all  of  the  countries,  their  territories  and  possessions,
         comprising  North  America,  South  America  and Central  America  (the
         "License Areas").  Agreements between George J. Coates, Gregory Coates,
         and CIL also contain certain non-compete clauses and rights relative to
         royalties received from Nicholson McLaren or from Noble Motor Sport.

         CIL has a 14-year  operating  history,  during  which it has  primarily
         devoted its attention to developing the technology  associated with the
         Coates SRV Engine.

         Agreements with Well to Wire Energy, Inc.
         -----------------------------------------

         On September  29, 1999,  CIL signed a license  agreement  (the "License
         Agreement")  with Well to Wire  Energy,  Inc.  ("WWE"),  an oil and gas
         company in Canada, to license the exclusive use of V-8 cylinder engines
         modified with the Coates System to be fueled by natural gas to generate
         electrical  power for the Country of Canada (the  "License  Agreement")
         against payment of $5,000.000, of which a deposit payment in the amount
         of $300,000 was made. The agreement also provides for  development  and
         delivery of certain  prototype  engines  under a separate  research and
         development  agreement  between  CIL and WWE,  referred  to as the "R&D
         Agreement",  and stipulates  that following the testing and delivery of
         the third prototype - a production  model Coates Generator Engine - the
         balance of the license fee in the amount of $4,700,000 would be paid in
         16 quarterly payments beginning 180 days after delivery.

                                       6
<PAGE>

         Following due diligence  investigation of the proposed applications for
         the production of electrical  energy and the location of the engines in
         the natural gas fields or generation  sites,  it was agreed between CIL
         and Well to Wire Energy,  Inc. that a larger  engine  modified with the
         Coates System would be more appropriate.  Accordingly,  CIL and Well to
         Wire agreed that CIL would  research and develop a natural gas fed, 855
         cubic  inch,  6 cylinder,  industrial  electric  generator  engine (the
         "Coates Generator Engine").

         Pursuant to further negotiations, CIL and WWE agreed that WWE would pay
         to CIL a $5,000,000  fee to research and develop a production  model of
         the Coates Generator Engine.  As part of the understanding  between CIL
         and WWE under  the R&D  Agreement,  CIL would  develop a total of three
         prototype  engines  meeting  these  new  specifications:   two  testing
         prototypes and one production  model  prototype.  To date, Well to Wire
         Energy, Inc. has made aggregate payments of $1,200,000 to CIL for these
         prototypes,  $250,000 of which was paid in calendar  1999;  $845,000 of
         which was paid in fiscal year 2000,  and  $105,000  was paid during the
         first quarter in fiscal year 2001.  The balance of $3,800,000 is due to
         be paid by from Well to Wire Energy,  Inc.  180 days after  delivery of
         the production  model.

         CIL has  completed  the  construction  and  delivery  of the  first two
         prototypes  and  the  basic   construction  of  the  third   prototype,
         representing the production version of the Coates Generator Engine. The
         first two prototype Coates Generator  Engines were delivered to Well to
         Wire Energy, Inc. in December, 2000 and April, 2001, respectively.  The
         third prototype engine is currently  undergoing testing and is expected
         to be completed during fiscal year 2003.

         Agreement with McLean, England and Associates, LLC
         --------------------------------------------------

         During the first quarter of 2002 CIL  negotiated a license  arrangement
         with McLean, England and Associates, LLC ("McLean") which, on April 12,
         2002,  produced a final agreement that calls for $25,000,000 in license
         fees for specific uses of the Coates CSRV engine  technology in certain
         applications,  within  the  United  States of  America.  Payment of the
         license fee is contingent  upon the  successful  completion of tests of
         two prototype  engines  fitted with the CSRV system.  The two prototype
         engines are currently in development.  At the time of this  submission,
         McLean has paid CIL a  non-refundable  deposit of $565,000  against the
         license fee, of which  $25,000 and $540,000  were  received  during the
         first and second quarters of 2002,  respectively.  The entire amount of
         $565,000 has been  recognized  in the balance  sheet at  September  30,
         2003, as a current liability, to be re-classified in subsequent periods
         as income.

         Preliminary Agreement with Dominion International
         -------------------------------------------------

         During the quarter ended September 30, 2002 CIL commenced  negotiations
         with a Florida-based group, Dominion  International  ("Dominion") for a
         license arrangement agreement covering specific uses of the Coates CSRV
         engine technology in certain applications,  within the territory of the
         United States.  During the quarter ended  September 30, 2002,  Dominion
         paid CIL a non-refundable deposit of $75,000, to be applied against the
         license fee and which amount has been  recognized  in the balance sheet
         at September 30, 2003, as a current  liability;  to be re-classified as
         income in future periods after the parties performed in accordance with
         the terms of the finalized agreement.

                                       7
<PAGE>


  Results  of  Operations  for the Three and Nine  Months  Periods  Ended
  -----------------------------------------------------------------------
         September  30,  2003 and 2002
         -----------------------------

         CIL's currently anticipated sources of revenues are the payments due to
         CIL from WWE under the R&D Agreement and the License Agreement, and the
         payments  made and to be made  under the  agreements  with  McLean  and
         Dominion.  Further  payments are not scheduled  until the completion of
         the testing  and  delivery  to WWE of the third  prototype,  production
         model Coates Generator Engine. CIL has completed the basic construction
         of this production  model and currently  expects  completion of testing
         and delivery to occur during the current fiscal year. In addition,  CIL
         expects to complete  the  development,  testing and delivery of the two
         prototype engines to McLean, also during the current fiscal year.

         Total operating expenses for the quarter ended September 30, 2003, were
         $593,060  compared to $488,941 for the third quarter in 2002.  Research
         and development  costs were $150,057 and $92,374 for the quarters ended
         September 30, 2003 and 2002,  respectively.  This  approximate  $60,000
         increase in research and  development  expense is  attributable  to the
         development of a motorcycle product by the Company's subsidiary, Coates
         Motorcycle Company, Ltd.

         No  revenues   were   generated   during  the   quarter.   General  and
         administrative  expenses  were  $400,945 for the quarter as compared to
         $383,089 for the quarter  ended  September  30,  2002.  The Company and
         subsidiary  had a loss for the quarter of $566,729,  or $.00 per share,
         as compared to a net loss of $516,426, or $.00 per share, for the third
         quarter of 2002.

         Management expects the license agreements described above to contribute
         an increasing stream of revenues during the upcoming periods. There can
         be no assurance,  however,  that  completion and testing of the various
         prototype engines can be completed in a satisfactory  manner and within
         the anticipated time frames, and that other  contributing  factors will
         not prohibit or delay  finalization and consummation of the agreements,
         in which  case  revenues  in the short run would be  limited to certain
         non-refundable deposit payments.

         LIQUIDITY AND CAPITAL RESOURCES

         During the quarter ended September 30, 2003, CIL received  subscription
         proceeds of $345,015 in cash from accredited investors for the issuance
         of 46,002  restricted  common  shares at the price of $7.50 per  share.
         These  subscription  proceeds  permitted the Company to maintain a cash
         position of $695,094 at September 30, 2003, an  approximate 6% decrease
         from the $740,526  cash  position at June 30, 2003.  The  September 30,
         2003 cash position of $695,094  represents an approximate  50% decrease
         from the  September  30,  2002 cash  position of  $1,396,890  which was
         composed  largely of the  $1,310,000  in investment  subscriptions  and
         $615,000 in non-refundable cash deposits received by the Company during
         fiscal year 2002.CIL's cash is deposited in CIL's interest bearing bank
         accounts.  CIL's  working  capital of  $319,717 at  September  30, 2003
         represents an approximate  $80,600,  or 20% reduction from the $400,368
         working capital position at June 30, 2003. CIL's current liabilities of
         $860,366 at September 30, 2003 remained  relatively constant since June
         30, 2003 ($860,372) and continue to be composed primarily of litigation
         fees ($668,000) and a current quarter $100,000 officer loan.


                                       8
<PAGE>

         CIL has  completed  the  basic  construction  of the last of the  three
         prototype Coates Generator Engines for WWE, the production model, which
         is currently  undergoing testing in connection with CIL's R&D Agreement
         and License Agreement with Well to Wire Energy, Inc. Management expects
         to be able to complete the testing of the production model and delivery
         to WWE during the  current  fiscal  year,  after  which CIL  expects to
         receive the balance of $3,800,000  from Well to Wire Energy,  Inc under
         the R&D Agreement. Under this License Agreement, the balance due CIL of
         $4,700,00  is  payable  in equal  quarterly  payments  over a four year
         period,  commencing  180 days  following  delivery  to WWE of the third
         prototype.  As well,  CIL  expects  to  complete  the  testing  and the
         delivery of the two prototype engines pursuant to its license agreement
         with McLean and receive  the  license fee  payments  during the current
         fiscal year. There can be no assurance, however, that these agreements,
         as well as those  presently in negotiations  with the other  licensees,
         will be  consummated  in accordance  with these  expectations  and that
         payments will be received as called for in the agreements.

         During the second quarter,  the Company organized a subsidiary,  Coates
         Motorcycle  Company,  Ltd.,  to research  and  develop a heavy  cruiser
         motorcycle equipped with the Coates SRV engine. In connection with this
         project,  on April 30, 2003,  CIL  executed and  delivered an exclusive
         Sublicense  Agreement  to  Coates  Motorcycle  Company,  Ltd.  ("Coates
         Motorcycle")  in exchange  for a 50+%  equity  ownership  interest  and
         anti-dilution  right to maintain this majority ownership  position.  In
         consideration for its receipt of this exclusive  Sublicense  Agreement,
         Coates  Motorcycle  issued  2,550,000  of its common  shares to CIL and
         became its  subsidiary.  Conjunctively,  George J.  Coates,  Gregory G.
         Coates and the Coates Trust granted a non-exclusive license at the same
         time to Coates  Motorcycle for a minority equity  interest  without any
         anti-dilution rights.



                                       9
<PAGE>



PART II - OTHER INFORMATION

Item 1. Legal Proceedings

There are no material legal proceedings pending against the Company.

Item 2 CHANGES IN SECURITIES

         None

c) sales of unregistered securities during the quarter ended September 30, 2003:

      The Company accepted gross subscription proceeds in the amount of $345,015
from accredited  investors and issued a total of 46,002 restricted common shares
to them for the subscription  price of $7.50 per restricted common share.  These
investments   were  made  pursuant  to  the  exemption  from  the   registration
requirements of the Securities Act of 1933, as amended (the "1933 Act") provided
by Rule 506 of Regulation D promulgated  thereunder.  The  accredited  investors
received   certificates   representing  the  common  shares  purchased   bearing
restrictive legends.

 Item 3 DEFAULTS ON SENIOR SECURITIES

         None

Item 4  SUBMISSION  OF MATTERS  TO A VOTE OF  SECURITY  HOLDERS

No matters were submitted to shareholders for a vote during the quarter.

Item 5 OTHER INFORMATION

         None

Item 6 EXHIBITS AND REPORTS ON FORM 8-K

                   (a) Exhibits:
                       ---------

                   (3)(i) Certificate of Incorporation and Amendments thereto as
         well as other  corporate  documents  required  to be filed as  exhibits
         hereto are incorporated herein by reference to these documents filed as
         exhibits to the Company's current reports and annual reports previously
         filed with the Commission.

                      31.1  Certification  of the Chief  Executive  Officer  and
              Principal  Financial  Officer  pursuant  to  Section  302  of  the
              Sarbanes-Oxley Act of 2002.

                     32.1  Certification  of the  Chief  Executive  Officer  and
              Principal  Financial  Officer  pursuant  to  Section  906  of  the
              Sarbanes- Oxley Act of 2002.

                  (b) Reports on Form 8-K: None.
                      --------------------


                                       10
<PAGE>




                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the Registrant has duly caused this Form 10-QSB for the quarter ended  September
30,  2003  to be  signed  on its  behalf  by  the  undersigned,  thereunto  duly
authorized.


Date: November  14, 2003                    COATES INTERNATIONAL, LTD.

                                            By: /s/ George J. Coates
                                            ------------------------------

                                            George J. Coates, President

                                            Chief Executive Officer and

                                            Principal Financial Officer


                                       11