UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB
(Mark one)
[X] Quarterly Report Under Section 13 or 15(d) of The Securities Exchange
    Act of 1934

    For the quarterly period ended April 30, 2004

[ ] Transition Report Under Section 13 or 15(d) of The Securities Exchange
    Act of 1934

    For the transition period from ______________ to _____________

                        Commission File Number: 000-30071


                       KIK TECHNOLOGY INTERNATIONAL, INC.
        (Exact name of small business issuer as specified in its charter)

      California                                               91-2021602
(State of incorporation)                                (IRS Employer ID Number)

                      590 Airport Road, Oceanside CA 92054
                    (Address of principal executive offices)

                                 (760) 967-2777
                           (Issuer's telephone number)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act 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 [ ]

State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date: June 3, 2004: 25,021,865

Transitional Small Business Disclosure Format (check one): YES [ ] NO [X]
<PAGE>
                       KIK TECHNOLOGY INTERNATIONAL, INC.

                Form 10-QSB for the Quarter ended April 30, 2004

                                Table of Contents


                                                                            Page
                                                                            ----

PART I - FINANCIAL INFORMATION

  Item 1 Financial Statements                                                 3

  Item 2 Management's Discussion and Analysis or Plan of Operation           21

  Item 3 Controls and Procedures                                             23


PART II - OTHER INFORMATION

  Item 1 Legal Proceedings                                                   24

  Item 2 Changes in Securities                                               24

  Item 3 Defaults Upon Senior Securities                                     24

  Item 4 Submission of Matters to a Vote of Security Holders                 24

  Item 5 Other Information                                                   24

  Item 6 Exhibits and Reports on Form 8-K                                    24

SIGNATURES                                                                   24

                                       2
<PAGE>
                                     PART I
ITEM 1 - FINANCIAL STATEMENTS


                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                             April 30, 2004 and 2003

                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                           April 30,       April 30,
                                                                             2004            2003
                                                                          ----------      ----------
<S>                                                                       <C>             <C>
                                     ASSETS

CURRENT ASSETS
   Cash on hand and in bank                                               $   33,752      $   58,955
   Accounts receivable
   Trade, net of allowance for doubtful accounts
    of approximately $14,230 and $16,215, respectively                       488,571         540,823
   Other                                                                       8,077           5,940
   Inventories                                                               315,367         318,724
   Prepaid expenses                                                            2,452          15,307
                                                                          ----------      ----------

      TOTAL CURRENT ASSETS                                                   848,219         939,749
                                                                          ----------      ----------

PROPERTY AND EQUIPMENT - AT COST,
 NET OF ACCUMULATED DEPRECIATION                                             154,110         137,229
                                                                          ----------      ----------

OTHER ASSETS
   Funds held in trust by officer                                             53,400          53,400
   Refundable deposits                                                         4,800           4,800
   Deferred debt issuance costs, net of accumulated amortization
    of approximately $21,840 and $15,470, respectively                            --           6,370
                                                                          ----------      ----------

      TOTAL OTHER ASSETS                                                      64,570          64,570
                                                                          ----------      ----------

TOTAL ASSETS                                                              $1,060,529      $1,141,548
                                                                          ==========      ==========
</TABLE>
   The financial information presented herein has been prepared by management
           without audit by independent certified public accountants.
              The accompanying notes are an integral part of these
                       consolidated financial statements.

                                       3
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY
                     CONSOLIDATED BALANCE SHEETS - CONTINUED
                             April 30, 2004 and 2003

                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                       April 30,          April 30,
                                                                         2004               2003
                                                                      -----------        -----------
<S>                                                                  <C>                <C>
                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Notes payable to investors, net of accompanying
    unamortized warrant discount of approximately
    $-0- and $3,301, respectively                                     $    43,000        $    71,699
   Current maturity of capital lease payable                                4,185              3,738
   Accounts payable - trade                                               380,130            463,496
   Other accrued expenses                                                  40,311             33,204
   Management fee payable to majority shareholder                         150,000             30,000
   Advances from majority shareholder                                      16,000             16,000
                                                                      -----------        -----------

      TOTAL CURRENT LIABILITIES                                           633,626            618,137
                                                                      -----------        -----------

LONG-TERM DEBT
   Notes payable to investors, net of current maturities                   27,000                 --
   Capital lease payable, net of current maturities                         8,911             13,557
                                                                      -----------        -----------

      TOTAL LIABILITIES                                                   669,537            631,694
                                                                      -----------        -----------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
   Common stock - $0.001 par value
     100,000,000 shares authorized
     25,021,865 and 24,353,985 shares issued and outstanding               25,022             24,354
   Additional paid-in capital                                           5,146,573          5,072,501
   Accumulated deficit                                                 (4,780,603)        (4,587,001)
                                                                      -----------        -----------

      TOTAL STOCKHOLDERS' EQUITY                                          390,992            509,854
                                                                      -----------        -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                            $ 1,060,529        $ 1,141,548
                                                                      ===========        ===========
</TABLE>
   The financial information presented herein has been prepared by management
           without audit by independent certified public accountants.
              The accompanying notes are an integral part of these
                       consolidated financial statements.

                                       4
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY
          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                   Three months ended April 30, 2004 and 2003

                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                       Three months       Three months
                                                                          ended              ended
                                                                         April 30,          April 30,
                                                                           2004               2003
                                                                       ------------       ------------
<S>                                                                    <C>                <C>
REVENUES - net of returns and allowances                               $    791,111       $    792,156
COST OF SALES                                                              (683,469)          (669,941)
                                                                       ------------       ------------

GROSS PROFIT                                                                107,642            122,215
                                                                       ------------       ------------
OPERATING EXPENSES
   Selling, general and administrative expenses                             161,945            178,047
   Compensation expense related to common
    stock issuances at less than "fair value"                                    --                945
                                                                       ------------       ------------
      TOTAL OPERATING EXPENSES                                              161,945            178,992
                                                                       ------------       ------------

LOSS FROM OPERATIONS                                                        (54,303)           (56,777)

OTHER INCOME
   Interest and other income (expense) - net                                 (1,798)            (4,859)
                                                                       ------------       ------------

LOSS BEFORE PROVISION FOR INCOME TAXES AND EXTRAORDINARY ITEM               (56,101)           (61,636)

PROVISION FOR INCOME TAXES                                                       --                 --
                                                                       ------------       ------------

NET LOSS                                                                    (56,101)           (61,636)

OTHER COMPREHENSIVE INCOME                                                       --                 --
                                                                       ------------       ------------

COMPREHENSIVE LOSS                                                     $    (56,101)      $    (61,636)
                                                                       ============       ============
Net loss per weighted-average share
 of common stock outstanding, calculated
 on Net Loss - basic and fully diluted                                          nil                nil
                                                                       ============       ============
Weighted-average number of shares
 of common stock outstanding                                             25,021,865         24,311,934
                                                                       ============       ============
</TABLE>
   The financial information presented herein has been prepared by management
           without audit by independent certified public accountants.
              The accompanying notes are an integral part of these
                       consolidated financial statements.

                                       5
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                   Three months ended April 30, 2004 and 2003

                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                               Three months        Three months
                                                                  ended               ended
                                                                 April 30,           April 30,
                                                                   2004                2003
                                                                 ---------           ---------
<S>                                                              <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net loss for the period                                       $ (56,101)          $ (61,636)
   Adjustments to reconcile net loss to net cash
    provided by operating activities
      Depreciation and amortization                                  9,476              11,575
      Amortization of warrant discount on notes payable                 --               1,474
      Expenses paid with common stock                                   --               4,890
      Compensation expense related to common stock
       issuances at less than "fair value"                              --                 945
   (Increase) Decrease in
      Accounts receivable - trade and other                       (116,919)           (169,147)
      Inventory                                                      7,696             (17,313)
      Prepaid expenses and other                                       240             (14,871)
   Increase (Decrease) in
      Accounts payable                                              93,357             293,601
      Other accrued expenses                                        (2,143)            (38,816)
      Accrued management fees to parent company                     30,000              30,000
                                                                 ---------           ---------
NET CASH USED IN OPERATING ACTIVITIES                              (34,394)             40,702
                                                                 ---------           ---------
CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of property and equipment                               (6,033)             (7,531)
                                                                 ---------           ---------
NET CASH USED IN INVESTING ACTIVITIES                               (6,033)             (7,531)
                                                                 ---------           ---------
CASH FLOWS FROM FINANCING ACTIVITIES
   Payments on notes payable to investors                           (5,000)                 --
   Payments on long-term capital lease                              (1,335)               (908)
                                                                 ---------           ---------
NET CASH USED IN FINANCING ACTIVITIES                               (6,335)               (908)
                                                                 ---------           ---------

INCREASE (DECREASE) IN CASH                                        (46,762)             32,263
Cash at beginning of period                                         80,514              26,692
                                                                 ---------           ---------

CASH AT END OF PERIOD                                            $  33,752           $  58,955
                                                                 =========           =========
SUPPLEMENTAL DISCLOSURE OF INTEREST
 AND INCOME TAXES PAID
   Interest paid for the period                                  $   4,618           $     281
                                                                 =========           =========
   Income taxes paid for the period                              $      --           $      --
                                                                 =========           =========
SUPPLEMENTAL DISCLOSURE OF NON-CASH
 INVESTING AND FINANCING ACTIVITIES
   Trade accounts payable settled with issuance of
    common stock                                                 $      --           $     552
                                                                 =========           =========
</TABLE>
   The financial information presented herein has been prepared by management
           without audit by independent certified public accountants.
              The accompanying notes are an integral part of these
                       consolidated financial statements.

                                       6
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - ORGANIZATION AND DESCRIPTION OF BUSINESS

KIK Technology  International,  Inc. (KTII) was incorporated on February 1, 2000
under   the  laws  of  the   State   of   California   as   Russian-Imports.com.
Russian-Imports.com  was  initially  founded to develop an  internet  e-commerce
website which would sell handmade  lacquer  boxes,  Matroshka  dolls and crystal
imported from Russia.  This business plan was  unsuccessful  and,  subsequently,
terminated.  The Company then adopted a business plan to locate and combine with
an existing,  privately-held  company  which is profitable  or, in  management's
view, has growth potential, irrespective of the industry in which it is engaged.

On September 4, 2001,  KTII  (formerly  Russian-Imports.com)  issued  16,700,000
shares of restricted,  unregistered common stock to KIK Tire Technologies,  Inc.
(a  publicly-owned  Canadian  corporation)  (KTTI)  for 100.0% of the issued and
outstanding stock of KIK Technology,  Inc. (a wholly-owned  subsidiary of KTTI).
By  virtue of this  transaction,  KIK  Technology,  Inc.  became a  wholly-owned
subsidiary of KTII and KTTI became an  approximate  73.6%  shareholder  in KTII.
Concurrent  with this  transaction,  Russian-Imports.com  changed it's corporate
name to KIK Technologies International, Inc.

At the transaction date, KTII was a "shell company" as the Company had no assets
or liabilities, had generated no revenues since inception and had incurred total
expenses  of  approximately  $940,000  since its  inception  on February 1, 2000
through the September 4, 2001 transaction.

KIK  Technology,  Inc (KTI) was  incorporated in June 1988 under the laws of the
State of California.  KTI manufactures and markets an extensive and high quality
line of off-highway micro-cellular polyurethane tires for the healthcare,  light
industrial,  lawn and garden and  recreational  industries.  KTI operates from a
sole manufacturing plant and marketing offices located in Oceanside, CA.

The Company's  principal raw materials are purchased from a sole supplier who is
also a major customer for the Company's products. In the event of any disruption
in the  availability  of raw  materials or a market for the  Company's  products
purchased by this key supplier,  the Company may experience a negative  economic
impact.  The Company  believes that  suppliers of raw materials are available at
comparable prices and management is seeking other avenues of distribution of the
Company's  products  to  consumers.   Management  is  of  the  opinion  that  no
interruption of either raw materials or product demand will occur.

NOTE B - PREPARATION OF FINANCIAL STATEMENTS

The  acquisition of KIK  Technology,  Inc.  (KTI), on September 4, 2001, by KTII
effected  a change  in  control  of KTII  and was  accounted  for as a  "reverse
acquisition"  whereby KTI is the  accounting  acquiror for  financial  statement
purposes.  Accordingly,  the historical consolidated financial statements of the
Company  are those of KTI from  it's  inception  and  those of the  consolidated
entity subsequent to the September 4, 2001 transaction date.

The  Company  follows  the  accrual  basis  of  accounting  in  accordance  with
accounting principles generally accepted in the United States of America and has
adopted a year-end of January 31.

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements  and the  reported  amounts of revenues  and expenses
during the reporting period. Actual results could differ from those estimates.

                                       7
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE B - PREPARATION OF FINANCIAL STATEMENTS - CONTINUED

Management further acknowledges that it is solely responsible for adopting sound
accounting  practices,   establishing  and  maintaining  a  system  of  internal
accounting  control and preventing and detecting  fraud. The Company's system of
internal  accounting  control is designed to assure,  among other items, that 1)
recorded  transactions  are valid; 2) valid  transactions  are recorded;  and 3)
transactions  are  recorded in the proper  period in a timely  manner to produce
financial  statements which present fairly the financial  condition,  results of
operations  and cash  flows of the  Company  for the  respective  periods  being
presented.

During interim periods, the Company follows the accounting policies set forth in
its annual  audited  financial  statements  filed with the U. S.  Securities and
Exchange  Commission  on its Annual  Report on Form  10-KSB/A for the year ended
January 31, 2004.  The  information  presented  within these  interim  financial
statements  may not  include all  disclosures  required  by  generally  accepted
accounting  principles  and the  users of  financial  information  provided  for
interim periods should refer to the annual  financial  information and footnotes
when reviewing the interim financial results presented herein.

In the opinion of management,  the accompanying  interim  financial  statements,
prepared in  accordance  with the U. S.  Securities  and  Exchange  Commission's
instructions   for  Form  10-QSB,   are   unaudited  and  contain  all  material
adjustments,  consisting  only of  normal  recurring  adjustments  necessary  to
present fairly the financial condition,  results of operations and cash flows of
the Company for the respective  interim  periods  presented.  The current period
results of operations are not necessarily indicative of results which ultimately
will be reported for the full fiscal year ending January 31, 2005.

For  segment  reporting  purposes,  the Company  operated  in only one  industry
segment during the periods represented in the accompanying  financial statements
and makes all  operating  decisions and  allocates  resources  based on the best
benefit to the Company as a whole.

These  financial  statements  reflect  the books and  records of KIK  Technology
International,  Inc. (formerly  Russian-Imports.com)  (KTII) and KIK Technology,
Inc.  (KTI)  as  of  and  for  the  periods  ended  April  30,  2004  and  2003,
respectively.  All significant intercompany transactions have been eliminated in
consolidation. The consolidated entities are referred to as Company.

NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. CASH AND CASH EQUIVALENTS

     For  Statement of Cash Flows  purposes,  the Company  considers all cash on
     hand  and  in  banks,  including  accounts  in  book  overdraft  positions,
     certificates of deposit and other highly-liquid investments with maturities
     of three months or less, when purchased, to be cash and cash equivalents.

     Cash  overdraft  positions may occur from time to time due to the timing of
     making bank deposits and releasing checks, in accordance with the Company's
     cash management policies.


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                                       8
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

2. ACCOUNTS RECEIVABLE AND REVENUE RECOGNITION

     In the normal course of business,  the Company extends  unsecured credit to
     virtually  all of its  customers  which are located  throughout  the United
     States  and are  principally  concentrated  in the  Midwest  region  of the
     country.  Depending upon management's  assessment of  creditworthiness  and
     order  size,  certain  shipments  are  made on  "COD"  terms  using  common
     carriers.  Because of the credit risk involved,  management has provided an
     allowance for doubtful accounts which reflects its opinion of amounts which
     will   eventually   become   uncollectible.   In  the  event  of   complete
     non-performance, the maximum exposure to the Company is the recorded amount
     of trade  accounts  receivable  shown on the  balance  sheet at the date of
     non-performance.

     The Company  recognizes revenue from the sale of tires and accessories upon
     shipment to, or receipt by customers,  depending upon contractual terms and
     when there is no significant  uncertainty regarding the consideration to be
     received and the associated costs to be incurred. Additionally, the Company
     recognizes   reductions  of  recorded  revenue  for  product  returns  from
     unsatisfied customers and other billing adjustments or corrections,  at the
     point that the  returned  products  are received by the Company or upon the
     completion of negotiations between the Company and it's customer.

3. INVENTORY

     Inventory consists of raw materials,  principally chemical feedstocks,  and
     finished  goods,  principally  tires and  accessories  manufactured  by the
     Company and other minor  miscellaneous  items  purchased  from  third-party
     vendors for resale as a component of the Company's products.

     Inventory is valued at the lower of cost or market value, using principally
     the average cost method.

4. PROPERTY AND EQUIPMENT

     Property and  equipment are recorded at  historical  cost.  These costs are
     depreciated over the estimated useful lives, generally two (2) to seven (7)
     years, of the individual assets using the straight-line  method.  Gains and
     losses from the  disposition  of property  and  equipment  are  included in
     operations as incurred.

     In accordance  with  Statement of Financial  Accounting  Standards No. 144,
     "Accounting  for the  Impairment  or Disposal of  Long-Lived  Assets",  the
     Company  follows the policy of evaluating  all property and equipment as of
     the end of each  reporting  quarter.  For each of the years ended April 30,
     2004 and 2003, no charges to operations  were made for  impairments  in the
     future benefit of property and equipment.

5. DEFERRED DEBT ISSUE COSTS

     Deferred  debt issue costs  represent  monies paid  investment  bankers and
     legal  counsel in  connection  with the issuance of $75,000 in  convertible
     notes payable. These costs were amortized as a component of operations over
     the life of the underlying debt instrument using the straight line method.


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                                       9
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

6. INCOME TAXES

     The Company uses the asset and liability  method of  accounting  for income
     taxes.  At April 30, 2004 and 2003, the deferred tax asset and deferred tax
     liability accounts,  as recorded when material to the financial statements,
     are  entirely the result of temporary  differences.  Temporary  differences
     represent  differences in the recognition of assets and liabilities for tax
     and financial reporting purposes,  primarily  accumulated  depreciation and
     amortization, allowance for doubtful accounts and vacation accruals.

     As of April 30,  2004 and 2003,  the  deferred  tax  asset  related  to the
     Company's net operating loss carryforward is fully reserved.

7. ADVERTISING COSTS

     The Company does not conduct any direct  response  advertising  activities.
     For non-direct response advertising, the Company charges the costs of these
     efforts  to  operations  at the  first  time  the  related  advertising  is
     published.

8. EARNINGS (LOSS) PER SHARE

     Basic  earnings  (loss) per share is computed  by  dividing  the net income
     (loss) by the weighted-average  number of shares of common stock and common
     stock  equivalents  (primarily  outstanding  options and warrants).  Common
     stock equivalents  represent the dilutive effect of the assumed exercise of
     the  outstanding  stock  options and  warrants,  using the  treasury  stock
     method.  The calculation of fully diluted earnings (loss) per share assumes
     the dilutive effect of the exercise of outstanding  options and warrants at
     either the  beginning  of the  respective  period  presented or the date of
     issuance,  whichever  is later.  As of April  30,2004 and 2003,  all of the
     Company's issued and outstanding warrants, options and convertible debt are
     considered antidilutive due to the Company's net operating loss position.

9. EMPLOYEE STOCK OPTIONS

     For periods  prior to November  1, 2002,  the Company  chose to account for
     employee   stock-based   compensation  using  the  intrinsic  value  method
     prescribed  in  Accounting  Principles  Board  Opinion No. 25 (APB No. 25),
     Accounting  for Stock  Issued to  Employees,  and related  interpretations.
     Accordingly,  employee  compensation cost for stock options and warrants is
     measured as the excess,  if any, of the market price of the Company's stock
     at the date of the grant  over the amount an  employee  must pay to acquire
     the  stock.  This  treatment  was  allowed  under  Statement  of  Financial
     Accounting  Standards No. 123,  "Accounting  for Stock Based  Compensation"
     (SFAS 123).

     In December 2002, FASB issued Statement of Financial  Accounting  Standards
     No.  148  "Accounting   for  Stock-Based   Compensation  -  Transition  and
     Disclosure"  (SFAS  148).  This  statement  amends  SFAS  123 and  provides
     alternative  methods of transition for a voluntary change to the fair value
     based method of accounting  for  stock-based  employee  compensation.  This
     statement  also amends the disclosure  requirements  of SFAS 123 to require
     more prominent and frequent  disclosures in financial  statements about the
     effects of stock-based  compensation.  The  transition  guidance and annual
     disclosure  provisions of SFAS 148 are  effective for financial  statements
     issued for fiscal years ending after December 15, 2002.  Effective November
     1, 2003,  the first day of the  reporting  quarter  including the effective
     date of SFAS 148, the Company's  Board of Directors,  in  conjunction  with
     public  opinion and SFAS 148,  elected to expense the imputed  compensation
     cost related to any stock options granted during Fiscal 2003 and for future
     periods.

                                       10
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

9. EMPLOYEE STOCK OPTIONS - CONTINUED

     The Company did not issue any stock  options  during  Fiscal 2004 or Fiscal
     2003 and the  adoption  of SFAS 148 did not have a  material  impact on our
     results of operations or financial condition.

10.  NEW AND PENDING ACCOUNTING PRONOUNCEMENTS

     Statement  of  Financial  Accounting  Standard  (SFAS) No. 143  establishes
     accounting  standards  for the  recognition  and  measurement  of an  asset
     retirement  obligation and its associated  asset  retirement  cost. It also
     provides  accounting  guidance for legal  obligations  associated  with the
     retirement  of tangible  long-lived  assets.  SFAS No. 143 is  effective in
     fiscal years beginning after June 15, 2002, with early adoption  permitted.
     The  Company  adopted  SFAS No.  143  effective  February  1,  2003 and the
     adoption  had no impact  on its  consolidated  results  of  operations  and
     financial position.

     SFAS No. 144  establishes a single  accounting  model for the impairment or
     disposal of long-lived assets, including discontinued operations.  SFAS No.
     144  superseded  Statement  of  Financial  Accounting  Standards  No.  121,
     "Accounting  for the  Impairment  of Long-Lived  Assets and for  Long-Lived
     Assets  to Be  Disposed  Of"  (SFAS  No.  121),  and APB  Opinion  No.  30,
     "Reporting the Results of Operations - Reporting the Effects of Disposal of
     a Segment  of a  Business,  and  Extraordinary,  Unusual  and  Infrequently
     Occurring  Events  and  Transactions".  The  Company  adopted  SFAS No. 144
     effective  February 1, 2002.  The  adoption of SFAS No. 144 had no material
     impact on Company's consolidated financial statements.

     In April 2002, the Financial  Accounting Standards Board (FASB) issued SFAS
     No. 145,  "Rescission of FASB  Statements  No. 4, 44, and 64,  Amendment of
     SFAS No. 13, and Technical  Corrections."  This  Statement  rescinds  SFAS,
     "Reporting Gains and Losses from  Extinguishment of Debt", and an amendment
     of that Statement,  SFAS No. 64,  "Extinguishments  of Debt Made to Satisfy
     Sinking-Fund  Requirements"  and SFAS No. 44,  "Accounting  for  Intangible
     Assets of Motor Carriers".  This Statement amends SFAS No. 13,  "Accounting
     for Leases," to eliminate an inconsistency  between the required accounting
     for  sale-leaseback  transactions  and the required  accounting for certain
     lease  modifications  that have economic  effects that are similar to sale-
     leaseback  transactions.  We do not expect the  adoption to have a material
     impact to our financial position or results of operations.

     In June  2002,  the  FASB  issued  SFAS  No.  146,  "Accounting  for  Costs
     Associated  with Exit or Disposal  Activities."  This  Statement  addresses
     financial  accounting  and  reporting  for  costs  associated  with exit or
     disposal  activities and nullifies  Emerging Issues Task Force (EITF) Issue
     No. 94-3, "Liability  Recognition for Certain Employee Termination Benefits
     and Other Costs to Exit an Activity  (including Certain Costs Incurred in a
     Restructuring)." The provisions of this statement are effective for exit or
     disposal  activities that are initiated after December 31, 2002, with early
     application  encouraged.  The  adoption  of SFAS  No.  146  did not  have a
     material  impact  on  the  Company's   financial  position  or  results  of
     operations.


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                                       11
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

10.  NEW AND PENDING ACCOUNTING PRONOUNCEMENTS - CONTINUED

     In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
     Compensation-Transition   and  Disclosure,"  which  amends  SFAS  No.  123,
     "Accounting for Stock-Based  Compensation",  to provide alternative methods
     of  transition  for a voluntary  change to the fair value  based  method of
     accounting  for  stock-based  employee  compensation.   In  addition,  this
     statement  amends the  disclosure  requirements  of SFAS No. 123 to require
     prominent disclosures in both annual and interim financial statements about
     the method of accounting  for  stock-based  employee  compensation  and the
     effect of the method used on reported results.  The transition guidance and
     annual disclosure provisions of SFAS No. 148 are effective for fiscal years
     ending  after  December 15, 2002,  with  earlier  application  permitted in
     certain circumstances.  The interim disclosure provisions are effective for
     financial  reports  containing  financial  statements  for interim  periods
     beginning  after  December 15, 2002. The adoption of this statement did not
     have a material  impact on our financial  position or results of operations
     as we have  not  elected  to  change  to the fair  value  based  method  of
     accounting for stock-based employee compensation.

     In January 2003, the FASB issued  Interpretation No. 46,  "Consolidation of
     Variable  Interest  Entities."  Interpretation  46 changes the  criteria by
     which one company  includes  another entity in its  consolidated  financial
     statements.  Previously,  the criteria were based on control through voting
     interest.  Interpretation  46  requires  a variable  interest  entity to be
     consolidated  by a company if that  company is subject to a majority of the
     risk of loss from the variable interest entity's  activities or entitled to
     receive a majority of the entity's residual returns or both. A company that
     consolidates a variable  interest entity is called the primary  beneficiary
     of that entity.  The consolidation  requirements of Interpretation 46 apply
     immediately to variable  interest  entities created after January 31, 2003.
     The consolidation  requirements apply to older entities in the first fiscal
     year or  interim  period  beginning  after  June 15,  2003.  Certain of the
     disclosure  requirements  apply in all  financial  statements  issued after
     January 31,  2003,  regardless  of when the  variable  interest  entity was
     established.  The adoption did not have a material  impact to our financial
     position or results of operations.

     In April 2003,  the FASB issued SFAS No. 149,  "Amendment  of Statement No.
     133 on Derivative Instruments and Hedging Activities".  SFAS No. 149 amends
     SFAS No. 133 to  provide  clarification  on the  financial  accounting  and
     reporting of derivative  instruments  and hedging  activities  and requires
     that  contracts  with  similar   characteristics  be  accounted  for  on  a
     comparable  basis.  The  provisions  of  SFAS  No.  149 are  effective  for
     contracts  entered into or modified  after June 30,  2003,  and for hedging
     relationships  designated after June 30, 2003. The adoption of SFAS No. 149
     did not have a material  impact on our results of  operations  or financial
     position.

     In May  2003,  the  FASB  issued  SFAS No.  150,  "Accounting  for  Certain
     Financial Instruments with Characteristics of Both Liabilities and Equity".
     SFAS No. 150 establishes standards on the classification and measurement of
     certain financial  instruments with characteristics of both liabilities and
     equity.  The  provisions  of SFAS  No.  150  are  effective  for  financial
     instruments  entered  into or modified  after May 31, 2003 and to all other
     instruments  that exist as of the beginning of the first interim  financial
     reporting  period  beginning  after June 15, 2003. The adoption of SFAS No.
     150  did not  have a  material  impact  on our  results  of  operations  or
     financial position.


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                                       12
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE D - FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amount of cash,  accounts  receivable,  accounts  payable and notes
payable, as applicable,  approximates fair value due to the short term nature of
these items  and/or the current  interest  rates  payable in relation to current
market conditions.

Interest  rate risk is the risk  that the  Company's  earnings  are  subject  to
fluctuations  in interest  rates on either  investments  or on debt and is fully
dependent  upon  the  volatility  of  these  rates.  The  Company  does  not use
derivative instruments to moderate its exposure to interest rate risk, if any.

Financial  risk  is  the  risk  that  the  Company's  earnings  are  subject  to
fluctuations in interest rates or foreign exchange rates and are fully dependent
upon the  volatility  of  these  rates.  The  company  does  not use  derivative
instruments to moderate its exposure to financial risk, if any.

NOTE E - CONCENTRATIONS OF CREDIT RISK

KTII and KTI maintain their  respective cash accounts in financial  institutions
subject  to  insurance   coverage  issued  by  the  Federal  Deposit   Insurance
Corporation  (FDIC).  Under  FDIC  rules,  both  KTII  and KTI are  entitled  to
aggregate  coverage of $100,000 per account  type per separate  legal entity per
financial institution.  During the years ended January 31, 2004 and 2003 and for
the  period   through  April  30,  2004,   respectively,   KTTI  and  KTI,  from
time-to-time, had deposits in a financial institution with credit risk exposures
in excess of statutory  FDIC  coverage.  The Company has incurred no losses as a
result of any of these unsecured situations.

NOTE F - INVENTORIES

Inventories consist of the following at April 30, 2004 and 2003:

                                             April 30,             April 30,
                                               2004                  2003
                                             --------              --------

     Raw materials                           $ 67,723              $ 70,984
     Finished goods                           247,644               247,740
                                             --------              --------
     Total                                   $315,367              $318,724
                                             ========              ========

NOTE G - PROPERTY AND EQUIPMENT

Property and equipment consists of the following at April 30, 2004 and 2003:

                                       April 30,      April 30,
                                         2004           2003      Estimated life
                                      ---------      ---------    --------------
     Machinery and Equipment          $ 593,914      $ 537,570       7 years
     Office furniture and fixtures       25,441         23,284       5 years
     Leasehold improvements              14,180         14,180       2 years
     Vehicles                             9,279          9,279       5 years
                                      ---------      ---------
                                        642,814        584,313
     Less accumulated depreciation     (488,704)      (447,084)
                                      ---------      ---------
     Net property and equipment       $ 154,110      $ 137,229
                                      =========      =========

                                       13
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE G - PROPERTY AND EQUIPMENT - CONTINUED

Depreciation  expense for the three month  periods ended April 30, 2004 and 2003
was approximately $9,476 and $11,575, respectively.

NOTE H - FUNDS HELD IN TRUST BY OFFICER

In May 2001, the Company advanced $53,400 to its President to hold in trust as a
contingency fund for the sole use of the Company in the event of a unanticipated
cash  shortfall.  The advance bears  interest at 4.0% annually and is unsecured.
The original  documentation  required repayment of the advance and accrued,  but
unpaid,  interest in May 2003.  As of April 30,  2004,  with the approval of the
Company's  Board of  Directors,  the Company's  President  continues to maintain
these funds as trustee on behalf of the Company.

NOTE I - NOTES PAYABLE TO INVESTORS

Pursuant to the terms of a private placement agreement, the Company attempted to
raise up to $600,000  through the  placement of two-year  senior  notes  bearing
interest  at 10%  payable  quarterly.  This  Private  Placement  Memorandum  was
terminated by the Company during the fiscal quarter ended October 31, 2002.

In November  2001,  the Company  entered  into an agreement  with an  investment
banker whereby the investment  banker would act as exclusive  dealer-manager  in
this private  placement of  securities  to be issued by the Company  pursuant to
Regulation D of the Securities  Act of 1933, as amended.  As  compensation,  the
investment banker was paid $15,000 for professional fees,  received a commission
equal to 10% of the gross proceeds,  an unaccountable expense allowance equal to
4% of the gross proceeds,  and for every $500,000 raised,  150,000 shares of the
Company's restricted, unregistered common stock. Such shares will be issued upon
completion of the private  placement.  In addition,  the investment  banker will
have the option to nominate one person to the Company's Board of Directors if at
least  $2,000,000 is raised.  As of the  termination  of this Private  Placement
Memorandum, only $75,000 had been successfully raised.

Note  holders can elect,  with the  consent of the  Company,  to accept  Company
common stock in lieu of cash interest payments.  Such payments in stock would be
calculated  at 50% of the daily  average of the market price of the common stock
for the 30-calendar  days preceding the interest due date. After six months from
the date of issue of the notes,  the  Company  can  convert  the notes to common
stock if the daily average  market price of the  Company's  common stock for any
30-calendar days after the initial six-month period equals or exceeds $1.00. The
conversion  of the notes to common stock would also be  calculated at 50% of the
daily average market price for the 30 days prior to the Company giving notice of
its plan to convert.

In  conjunction  with the offering of the notes,  each note holder was given one
warrant for each $1.00 invested.  Each warrant allows the holder to purchase one
share of the Company's  common stock at an initial  exercise  price of $0.60 per
share, and is exercisable for two years. In March 2002, the Company repriced the
outstanding warrants to an exercise price of $0.40 per share.

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                                       14
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE I - NOTES PAYABLE TO INVESTORS - CONTINUED

Pursuant to the private placement,  the Company sold a $50,000  convertible note
on November 12, 2001 and a $25,000  convertible note on December 26, 2001 to two
unrelated  investors.  Warrants to purchase a combined total of 75,000 shares of
the Company's common stock at $0.60 per share were also issued to the investors.
The  warrants  were  valued at $11,789  using the  Black-Scholes  option-pricing
model, and therefore $11,789 of the total debt proceeds of $75,000 was allocated
to the warrants, resulting in a discount on the notes, was amortized to interest
expense over the initial  term of the  underlying  debt.  During the years ended
January 31, 2004 and 2003,  approximately  $9,100 and $5,900 of the discount was
amortized to interest  expense.  The weighted  average  assumptions  utilized to
value the warrants using the Black-Scholes option-pricing model were as follows:

Expected life of the option:    The  initial life of  the  corresponding option,
                                generally two (2) years
Expected volatility in
 the Company's stock price:     150.0%,  which was based on fluctuations of the
                                Company's stock price over the past Fiscal year.
Expected dividends:             Zero (0.00) based on past performance
Anticipated risk free
 interest rate:                 Estimated to be 2.80%.

The  convertible  notes  contained a beneficial  conversion  feature valued at a
combined  total  of  approximately  $63,000.  However,  because  the  conversion
features were fully contingent upon the occurrence of certain future events, the
Company  did not  record a discount  resulting  from the  beneficial  conversion
feature.

The notes  matured  on  November  12,  2003  ($50,000)  and  December  26,  2003
($25,000),  respectively.  On February 16, 2004,  the Company  restructured  the
$50,000  convertible  note. Under the  restructured  terms, the Company paid all
accrued  interest and a $3,000  principal  reduction  on March 16,  2004,  as of
February  16,  2004.  The  Company is  obligated  to pay $2,000 per month,  plus
accrued interest, for the period from March 16, 2004 through August 16, 2004 and
$1,000 per month,  plus accrued  interest,  on the 16th of each month thereafter
until all  outstanding  amounts are paid in full.  The  restructured  note bears
interest at 10.0% per annum.

The  $50,000  restructured  note is  convertible  into  shares of  unregistered,
restricted  common stock at the discretion of the Noteholder  with the Company's
consent,  provided that the daily average  (calculated  from the last sale price
daily) of the market price of the Company's common stock for any 30 calendar day
period equals or exceeds $1.00 per share,  with the conversion  being calculated
at a 50% discount of such 30 day average.

The $50,000  Noteholder  also has the  election to receive the monthly  interest
payments in  restricted,  unregistered  common stock of the Company at the daily
average  (calculated  from the last sale price daily) of the market price of the
Company's  common stock for the 30 calendar day period prior to the interest due
date,  with the number of shares to be issued  calculated  at a 50%  discount of
such 30 day average.

Through April 30, 2004, the Company has paid  approximately  $5,000 in principal
and  $4,300  in  cumulative   accrued  interest  on  the  $50,000   restructured
convertible note.

The  $25,000  convertible  note is in default and no demand for payment has been
made  to  the  Company.  The  Company  continues  to  accrue  interest  on  this
convertible note in accordance with the original terms and conditions.

The aggregate maturities of the notes are as follows:

     Balance as of April 30, 2004                                 $ 70,000
     Less current portion                                          (43,000)
                                                                  --------
     Long-term portion                                            $ 27,000
                                                                  ========

                                       15
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE I - NOTES PAYABLE TO INVESTORS - CONTINUED

The Company  recognized  interest  expense related to the all outstanding  debt,
including the convertible notes payable,  equipment financing and trade accounts
payable service charges of  approximately  $2,077 and $5,474 for the three month
periods ended April 30, 2004 and 2003, respectively.

NOTE J - CAPITAL LEASE PAYABLE

Capital lease payable is as follows:

                                                         April 30      April 30,
                                                           2004          2003
                                                         --------      --------
$21,080 capital lease payable to a finance corporation
 Interest at 8.60%.  Payable in monthly installments
 of approximately $432, including accrued interest
 Final maturity due in April 2007.  Collateralized by
 equipment                                               $ 13,096      $ 17,295

     Less current maturities                               (4,185)       (3,738)
                                                         --------      --------

     Long-term portion                                   $  8,911      $ 13,557
                                                         ========      ========

Future annual maturities of long-term capital leases payable,  as of January 31,
2004, for each of the following years ending January 31 are as follows:

                                               Year ending
                                               January 31,              Amount
                                               -----------              ------
                                                  2005                 $ 4,095
                                                  2006                   4,468
                                                  2007                   4,872
                                                  2008                     996
                                                                       -------
                                                  Total                $14,431
                                                                       =======

NOTE K - INCOME TAXES

The components of income tax (benefit)  expense for the three months ended April
30, 2004 and 2003, respectively, are as follows:

                                              April 30,             April 30,
                                                2004                  2003
                                              -------               -------
       Federal:
       Current                                $    --               $    --
       Deferred                                    --                    --
                                              -------               -------
                                                   --                    --
                                              -------               -------
     State:
       Current                                     --                    --
       Deferred                                    --                    --
                                              -------               -------
                                                   --                    --
                                              -------               -------
       Total                                  $    --               $    --
                                              =======               =======

                                       16
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE K - INCOME TAXES - CONTINUED

The Company has a net operating loss carryforward of approximately $4,600,000 to
offset future taxable income. Subject to current regulations,  this carryforward
will begin to expire in 2005. The amount and  availability  of the net operating
loss  carryforwards  may be subject  to  limitations  set forth by the  Internal
Revenue Code.  Factors such as the number of shares  ultimately  issued within a
three year  look-back  period;  whether  there is a deemed  more than 50 percent
change in control; the applicable long-term tax exempt bond rate;  continuity of
historical  business;  and  subsequent  income of the Company all enter into the
annual computation of allowable annual utilization of the carryforwards.

The  Company's  income tax expense for the three months ended April 30, 2004 and
2003, respectively, are as follows:

                                                      April 30,       April 30,
                                                        2004            2003
                                                      --------        --------

Statutory rate applied to loss before income taxes    $(19,075)       $(20,800)
Increase (decrease) in income taxes resulting from:
  State income taxes                                        --              --
  Other, including reserve for deferred tax asset       19,075          20,800
                                                      --------        --------

    Income tax expense                                $     --        $     --
                                                      ========        ========

Temporary differences, consisting primarily of net operating loss carryforwards,
statutory  deferrals  of expenses  for  organizational  costs and  accrued,  but
unpaid,  accruals for officer  compensation  and  statutory  differences  in the
depreciable  lives for property and equipment,  between the financial  statement
carrying  amounts and tax bases of assets and liabilities  give rise to deferred
tax assets and liabilities as of January 31, 2004 and 2003, respectively:

                                              January 31,           January 31,
                                                 2004                  2003
                                              -----------           -----------
Deferred tax assets
  Net operating loss carryforwards            $ 1,564,000           $ 1,496,000
  Less valuation allowance                     (1,564,000)           (1,496,000)
                                              -----------           -----------

Net Deferred Tax Asset                        $        --           $        --
                                              ===========           ===========

During the Fiscal  years  ended  January 31,  2004 and 2003,  respectively,  the
valuation  allowance  for  the  deferred  tax  asset  increased  (decreased)  by
approximately $68,000 and $(204,000).

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                                       17
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE L - COMMON STOCK TRANSACTIONS

Effective  February 1, 2003 and May 1, 2003,  the Company and the holders of the
two convertible  notes agreed for the payment of accrued interest in restricted,
unregistered  common stock.  The Company  issued an aggregate  206,987 shares of
restricted,  unregistered  common  stock in payment of accrued  interest.  These
transactions were valued at an aggregate  approximately  $3,782. The convertible
note  terms  allow  for  the  payment  of  accrued   interest  with  restricted,
unregistered  common stock using an average value of 50% of the daily average of
the market  price of the common  stock for the 30 calendar  days  preceding  the
interest due date. In both instances,  the closing stock price on the settlement
date was in excess of the prescribed  calculation.  The differential between the
discounted  "fair  value"  and the  settlement  price  resulted  in a charge  to
operations of  approximately  $945 for  compensation  expense  related to common
stock issuances at less than "fair value".  The Company relied upon Section 4(2)
of The Securities Act of 1933, as amended, for an exemption from registration on
these shares.

In February 2003, the Company issued 150,000 restricted,  unregistered shares of
common stock in payment of a contract for marketing  services.  This transaction
was  valued  at  approximately  $3,000,  which  was equal to or in excess of the
discounted  closing price of the Company's common stock on the NASDAQ Electronic
Bulletin Board on the date of each  respective  transaction.  The Company relied
upon Section 4(2) of The  Securities  Act of 1933, as amended,  for an exemption
from registration on these shares.

In April 2003,  the Company  issued 22,500  restricted,  unregistered  shares of
common stock in settlement  of a January 31, 2003 trade  account  payable in the
amount of  approximately  $552. The value of this transaction was equal to or in
excess of the  discounted  closing  price of the  Company's  common stock on the
NASDAQ Electronic Bulletin Board on the date of each respective transaction. The
Company relied upon Section 4(2) of The Securities Act of 1933, as amended,  for
an exemption from registration on these shares.

In May 2003,  the Company  issued  575,664  restricted,  unregistered  shares of
common stock in payment of trade accounts payable to the Company's primary legal
counsel in the amount of  approximately  $72,849.  The value of this transaction
was equal to or in  excess  of the  discounted  closing  price of the  Company's
common  stock  on the  NASDAQ  Electronic  Bulletin  Board  on the  date of each
respective  transaction.  The Company relied upon Section 4(2) of The Securities
Act of 1933, as amended, for an exemption from registration on these shares.

NOTE M - STOCK WARRANTS

At  January  31,  2004,  the  75,000  warrants  sold  in  conjunction  with  the
convertible notes private placement had expired.

In conjunction  with the reverse  acquisition,  which was concluded in September
2001, The Company granted  2,300,000  warrants to certain  shareholders of KTTI.
These  warrants  have an  exercise  price of  approximately  $0.05 per share and
expired in April 2004.


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                                       18
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE M - STOCK WARRANTS - CONTINUED

The following table lists the issued and outstanding  stock warrants as of April
30, 2004, January 31, 2004 and 2003, respectively:

<TABLE>
<CAPTION>
                                                                  Warrants
                                                Warrants       outstanding at
                                               originally        January 31,
                                                 issued             2004        Exercise price
                                               ----------        ----------     --------------
<S>                                          <C>               <C>             <C>
Balance at January 31, 2002                     2,375,000         2,375,000
   Granted                                             --                --
   Exercised                                           --                --
   Forfeited/Expired                                   --                --
                                               ----------        ----------

Balance at January 31, 2003                     2,375,000         2,375,000
     Granted                                           --                --
   Exercised                                           --                --
   Forfeited/Expired                              (75,000)          (75,000)        $0.40
                                               ----------        ----------

Balance at January 31, 2004                     2,300,000         2,300,000
     Granted                                           --                --
   Exercised                                           --                --
   Forfeited/Expired                           (2,300,000)       (2,300,000)
                                               ----------        ----------

Balance at April 30, 2004                              --                --
                                               ==========        ==========

Warrants exercisable at April 30, 2004                 --
                                               ==========

Weighted-average exercise price per warrant           N/A
                                               ==========
</TABLE>

NOTE N - RELATED PARTY TRANSACTIONS

During the three months  ended April 30, 2004 and during the year ended  January
31,  2004,   the  Company   accrued   approximately   $30,000  and  $120,000  in
administrative service fees payable to KTTI, respectively.

NOTE O - COMMITMENTS AND CONTINGENCIES

LEASED FACILITIES

The Company leases its facilities under a non-cancellable operating lease, which
expires in May 2005. The lease requires monthly payments as follows:  $8,307 for
the first 12  months;  $8,639  for the next 12 months and $8,984 for the next 12
months.  Rent expense incurred under this lease was  approximately  $102,340 and
$97,800 for each of the years ended January 31, 2004 and 2003, respectively.

                                       19
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

NOTE O - COMMITMENTS AND CONTINGENCIES - CONTINUED

LEASED FACILITIES - CONTINUED

Future amounts due under this agreement are as follows:

                                           Year ending
                                           January 31,             Amount
                                           -----------             ------
                                              2005               $106,428
                                              2006                 35,936
                                                                 --------

                                              Total              $142,364
                                                                 ========

EMPLOYMENT CONTRACT

In  May  2000,  KIK  entered  into  an  employment  agreement  with  William  M.
Knooihuizen,  the Company's  current  President  and  Director.  The term of the
agreement is for a period of five (5) years.  For such  services,  KIK agreed to
pay Mr.  Knooihuizen  an annual  salary in the  amount of  $143,000,  to be paid
weekly.

NOTE P - SIGNIFICANT CUSTOMERS

During the year ended January 31, 2004,  the Company had two separate  customers
responsible  for  an  aggregate  of  approximately  78.47%  (69.06%  and  9.41%,
respectively) of total sales. The largest customer is also a significant  vendor
of raw materials.  The largest key customer was  responsible  for  approximately
48.95% of  accounts  receivable  and 76.17% of  accounts  payable at January 31,
2004.  The  second key  customer  was  responsible  for  approximately  1.72% of
accounts  receivable  and 0.00% of accounts  payable at January 31, 2004.  There
were no other  customer(s)  responsible  for more than  10.0% of total net sales
during Fiscal 2004.

During the year ended January 31, 2003,  the Company had two separate  customers
responsible  for  an  aggregate  of   approximately   80.3%  (68.2%  and  12.1%,
respectively) of total sales. The largest customer is also a significant  vendor
of raw materials.  The largest key customer was  responsible  for  approximately
57.2% of accounts  receivable and 0.0% of accounts  payable at January 31, 2003.
The second key  customer was  responsible  for  approximately  9.02% of accounts
receivable and 0.0% of accounts payable at January 31, 2003. There were no other
customer responsible for more than 10.0% of total net sales during Fiscal 2003.

These  significant  customer  trends and  anticipated  to  continue  into future
periods.

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                                       20
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

(1) CAUTION REGARDING FORWARD-LOOKING INFORMATION

Certain  statements  contained  in this  quarterly  filing,  including,  without
limitation, statements containing the words "believes", "anticipates", "expects"
and  words  of  similar  import,  constitute  forward-looking  statements.  Such
forward-looking  statements  involve known and unknown risks,  uncertainties and
other factors that may cause the actual results,  performance or achievements of
the Company,  or industry  results,  to be materially  different from any future
results,   performance   or   achievements   expressed   or   implied   by  such
forward-looking statements.

Such factors include, among others, the following:  international,  national and
local general economic and market conditions:  demographic  changes; the ability
of the Company to sustain,  manage or  forecast  its growth;  the ability of the
Company to successfully make and integrate acquisitions;  raw material costs and
availability;  new product  development and  introduction;  existing  government
regulations  and  changes  in,  or  the  failure  to  comply  with,   government
regulations;  adverse publicity;  competition; the loss of significant customers
or suppliers;  fluctuations  and  difficulty in forecasting  operating  results;
changes in business strategy or development  plans;  business  disruptions;  the
ability  to attract  and  retain  qualified  personnel;  the  ability to protect
technology; and other factors referenced in this and previous filings.

Given  these  uncertainties,  readers  of this Form  10-QSB  and  investors  are
cautioned not to place undue reliance on such  forward-looking  statements.  The
Company  disclaims  any  obligation  to update any such  factors or to  publicly
announce the result of any  revisions to any of the  forward-looking  statements
contained herein to reflect future events or developments.

(2) RESULTS OF OPERATIONS, LIQUIDITY AND CAPITAL RESOURCES OR PLAN OF OPERATION

OVERVIEW

During the three months ended April 30, 2004 and 2003, respectively, the Company
achieved  revenues of approximately  $791,111 and $792,000.  These revenues were
derived primarily from the sale of tire products.  Net loss for the three months
ended  April  30,  2004 and  2003 was  approximately  $)56,101)  and  $(62,000),
respectively.  The net loss for each of these quarters includes a $30,000 charge
for administrative  services to the Company from KIK Tire Technologies Inc., the
Company's  publicly-owned Canadian majority shareholder.  The net loss per share
of  common   stock  for  the  three  months  ended  April  30,  2004  and  2003,
respectively, was approximately $0.00 and $0.00.

RESULTS OF OPERATIONS

The following  discussion and analysis of our financial condition and results of
operations  should  be read  in  conjunction  with  the  consolidated  financial
statements and notes.

THREE  MONTHS  ENDED APRIL 30, 2004 AS COMPARED TO THE THREE  MONTHS ENDED APRIL
30, 2003

The Company  posted net sales of  approximately  $791,000  for the three  months
ended April 30, 2004 as compared to net sales of approximately  $792,000 for the
three  months  ended April 30, 2002.  The Company has begun to  experience  flat
sales  volumes  and  revenues  as a result of the  general  decline in the U. S.
economy.

The Company's cost of sales increased by approximately  $13,000 to approximately
$683,000 for the three months ended April 30, 2004 as compared to  approximately
$670,000  for the three  months  ended  April 30,  2003.  While the  Company has
experienced   relatively  flat  sales  volumes  and  revenues,  the  Company  is
consistently  subjected to cost increases in raw material and ancillary supplies
which are not readily passed through with product price  increases.  The Company
experienced  a  gross  profit  margin  of  approximately  13.61%  (approximately
$108,000) for the first three months of Fiscal 2005 as compared to approximately
15.43% (approximately $122,000) for the first three months of Fiscal 2004.

General and administrative  expenses  decreased from approximately  $179,000 for
the three  months ended April 30, 2003 to  approximately  $162,000 for the three

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months ended April 30, 2004.  To the extent  possible,  management  monitors and
controls  the variable  expenditures  related to the  Company's  administration.
Included in these costs is a $10,000 per month administrative charge to KIK Tire
Technologies Inc., the Company's publicly-owned Canadian majority shareholder.

LIQUIDITY AND CAPITAL RESOURCES

The Company had cash and cash equivalents of approximately $33,800,  $81,000 and
$59,000 at April 30, 2004,  January 31, 2004 and April 30,  2003,  respectively.
The Company maintained  business liquidity and capital resources during the year
adequate to fund all capital and operating expense requirements. Operations were
primarily funded from internally generated funds, line of credit borrowings, and
capital raised via a private placement of securities in previous years.

For the three months ended April 30, 2004 and 2003,  net cash  provided by (used
in) operating activities was approximately $(34,000) and $41,000,  respectively.
Net cash provided by operating  activities  consists of cash received from sales
of products to customers,  less purchases of raw  materials,  payment of payroll
and payment of other general operating expenses, including interest.

Cash used in investing  activities was  approximately  $(6,000) and $(7,500) for
each of the three months ended April 30, 2004 and 2003, respectively. These cash
utilizations  was  due  solely  to the  acquisition  of  equipment  used  in the
manufacturing process.

The Company  experienced  cash used in  financing  activities  of  approximately
$(6,300)  and $(908) in the first three  months of Fiscal 2005 and Fiscal  2004,
respectively.  All of  these  expenditures  were  related  to the  reduction  in
outstanding  principal on the Company's $50,000 convertible note payable and the
Company's equipment capital lease payable.

The Company  believes that sufficient cash will be generated  internally to fund
its operations for the next twelve months.

CRITICAL ACCOUNTING POLICIES

Financial  Reporting  Release  No.  60,  which  was  recently  released  by  the
Securities  and  Exchange  Commission,  requires  all  companies  to  include  a
discussion of critical accounting policies or methods used in the preparation of
financial statements. Note 2 to the Consolidated Financial Statements includes a
summary  of  the  significant  accounting  policies  and  methods  used  in  the
preparation of the Company's Consolidated Financial Statements. The following is
a brief discussion of the more significant  accounting policies and methods used
by the Company.

REVENUE RECOGNITION

Our  revenue  recognition  policy is  significant  because  our revenue is a key
component of our results of operations.  The Company recognizes revenue from the
sale of tires and  accessories.  Revenue  is  recognized  upon  shipment  to, or
receipt by  customers,  depending  upon  contractual  terms and when there is no
significant  uncertainty  regarding  the  consideration  to be received  and the
associated costs to be incurred. Additionally, the Company recognizes reductions
of recorded  revenue for product  returns from  unsatisfied  customers and other
billing adjustments or corrections,  at the point that the returned products are
either  received by the Company or upon the completion of  negotiations  between
the Company and it's customer.

ACCOUNTS RECEIVABLE

The Company  continuously  monitors  collections and payments from its customers
and  maintains an allowance  for  estimated  uncollectible  accounts  based upon
historical  experience and specific customer  collections  issues that have been
identified.   Depending   upon   management's   assessment   of   a   customer's
creditworthiness and order size, certain shipments are made on "COD" terms using
common carriers.

Since accounts  receivable  are  concentrated  in a relatively few customers,  a
significant  change in the  liquidity or financial  position of any one of these
customers  could have a material  adverse  impact on the  collectibility  of the

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<PAGE>
Company's  accounts  receivable and future  operating  results.  In the event of
complete  non-performance by any customer or customers,  the maximum exposure to
the Company would be the recorded amount of trade accounts  receivable  shown on
the balance sheet at the date of non-performance.

INVENTORIES

Inventories  are  valued  at the  lower of cost or  market.  Cost is  determined
principally on the average cost method.  The Company regularly reviews inventory
quantities  on hand and  records,  when  necessary,  a provision  for excess and
obsolete  inventory  based  primarily  on the  Company's  estimated  forecast of
product demand and production  requirements  for the next twelve months.  Demand
for the Company's products can fluctuate  significantly.  A significant increase
in the demand for the Company's  products could result in a short-term  increase
in the cost of inventory purchases while a significant  decrease in demand could
result in an increase in the amount of excess  inventory  quantities on hand. In
addition, the Company's industry is characterized by rapid technological change,
frequent  new product  development  and rapid  product  obsolescence  that could
result in an increase in the amount of obsolete  inventory  quantities  on hand.
Additionally,  the Company's  estimate of future  product demand may prove to be
inaccurate,  in which case the Company may have  understated  or overstated  the
provision required for excess and obsolete  inventory.  Therefore,  although the
Company  makes every  effort to ensure the  accuracy of its  forecasts of future
product demand, any significant unanticipated changes in demand or technological
developments  could have a significant  impact on the Company's  inventory value
and reported operating results.

STOCK-BASED COMPENSATION

Statement of Financial  Accounting Standards No. 123, Accounting for Stock Based
Compensation,  defines a fair-value  based method of accounting for  stock-based
employee  compensation  plans and  transactions  in which an entity  issues  its
equity  instruments  to  acquire  goods and  services  from  non-employees,  and
encourages  but does not  require  companies  to  record  compensation  cost for
stock-based employee compensation plans at fair value.

For periods  prior to  November  1, 2002,  the Company has chosen to account for
employee stock-based compensation using the intrinsic value method prescribed in
Accounting  Principles  Board Opinion No. 25 (APB No. 25),  Accounting for Stock
Issued  to  Employees,  and  related  interpretations.   Accordingly,   employee
compensation  cost for stock options and warrants is measured as the excess,  if
any, of the market  price of the  Company's  stock at the date of the grant over
the amount an employee must pay to acquire the stock. This treatment was allowed
under Statement of Financial Accounting Standards No. 123, "Accounting for Stock
Based Compensation" (SFAS 123).

In December 2002, FASB issued  Statement of Financial  Accounting  Standards No.
148 "Accounting for Stock-Based  Compensation - Transition and Disclosure" (SFAS
148).  This  statement  amends  SFAS 123 and  provides  alternative  methods  of
transition  for a voluntary  change to the fair value based method of accounting
for stock-based employee compensation. This statement also amends the disclosure
requirements  of SFAS 123 to require more prominent and frequent  disclosures in
financial  statements  about  the  effects  of  stock-based  compensation.   The
transition  guidance and annual disclosure  provisions of SFAS 148 are effective
for financial statements issued for fiscal years ending after December 15, 2002.
Effective November 1, 2003, the first day of the reporting quarter including the
effective  date of SFAS 148, the Company's  Board of Directors,  in  conjunction
with public  opinion and SFAS 148,  elected to expense the imputed  compensation
cost  related to any stock  options  granted  during  Fiscal 2003 and for future
periods.  The Company did not issue any stock options during Fiscal 2003 and the
adoption of SFAS 148 did not have a material impact on our results of operations
or financial condition.

ITEM 3 - CONTROLS AND PROCEDURES

As required by Rule 13a-15 under the Exchange  Act,  within the 90 days prior to
the filing date of this report,  the Company  carried out an  evaluation  of the
effectiveness of the design and operation of the Company's  disclosure  controls
and  procedures.  This evaluation was carried out under the supervision and with
the participation of the Company's management, including the Company's President
and Chief Executive  Officer along with the Company's  Chief Financial  Officer.
Based upon that evaluation,  the Company's President and Chief Executive Officer

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<PAGE>
along with the Company's  Chief Financial  Officer  concluded that the Company's
disclosure controls and procedures are effective. There have been no significant
changes in the  Company's  internal  controls or in other  factors,  which could
significantly  affect  internal  controls  subsequent  to the date  the  Company
carried out its evaluation.

Disclosure  controls and procedures are controls and other  procedures  that are
designed to ensure that information  required to be disclosed in Company reports
filed or submitted under the Exchange Act is recorded, processed, summarized and
reported,  within the time  periods  specified  in the  Securities  and Exchange
Commission's  rules and  forms.  Disclosure  controls  and  procedures  include,
without limitation,  controls and procedures designed to ensure that information
required to be  disclosed  in Company  reports  filed under the  Exchange Act is
accumulated  and  communicated  to  management,  including the  Company's  Chief
Executive  Officer and Chief Financial  Officer as appropriate,  to allow timely
decisions regarding required disclosure.

                           PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

None

ITEM 2 - CHANGES IN SECURITIES

None

ITEM 3 - DEFAULTS ON SENIOR SECURITIES

None

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

The  Company  has held no  regularly  scheduled,  called or special  meetings of
shareholders during the reporting period.

ITEM 5 - OTHER INFORMATION

None

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

     Exhibits
     --------
       31.1   Certification  pursuant  to Section 302 of  Sarbanes-Oxley  Act of
              2002 - Chief Executive Officer
       31.2   Certification  pursuant  to Section 302 of  Sarbanes-Oxley  Act of
              2002 - Chief Financial Officer
       32.1   Certifications  pursuant to Section 906 of  Sarbanes-Oxley  Act of
              2002.

     Reports on Form 8-K

        None
--------------------------------------------------------------------------------
                                   SIGNATURES

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

                                              KIK TECHNOLOGY INTERNATIONAL, INC.

Dated: June 14, 2004                          /s/ Kuldip C. Baid
       -------------                          ----------------------------
                                                            Kuldip C. Baid
                                                    Chief Financial Officer
                                                               and Director

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