UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-Q



 (Mark One)

 X                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
---               SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
                  March 31, 2003
                                       OR
---               TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                  THE SECURITIES EXCHANGE ACT OF 1934

                         Commission File Number 1-11871

                      COMMODORE APPLIED TECHNOLOGIES, INC.
                      ------------------------------------
             (Exact name of Registrant as specified in its charter)


                   Delaware                                       11-3312952
                   --------                                       ----------
       (State or other jurisdiction of                         (I.R.S. Employer
        incorporation or organization)                       Identification No.)


       150 East 58th Street, Suite 3238
              New York, New York                                    10155
              ------------------                                    -----
   (Address of principal executive office)                        (Zip Code)


Registrant's telephone number, including area code:   (212) 308-5800
                                                      --------------


         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
                                                 -----       -----

         Indicate by check  mark whether  the registrant is an accelerated filer
(as defined by Exchange Act Rule 12b-2). Yes        No   X
                                            -----       -----


         The number of shares the common stock  outstanding  at May 15, 2003 was
85,039,177.



<PAGE>
                      COMMODORE APPLIED TECHNOLOGIES, INC.

                                    FORM 10-Q

                                      INDEX


                                                                        Page No.

PART I   FINANCIAL INFORMATION..............................................1

Item 1.  Financial Statements (Unaudited)

         Condensed Consolidated Balance Sheet -
                 March 31, 2003 and December 31, 2002.......................1

         Condensed Consolidated Statement of Operations -
                 Three months ended March 31, 2003 and
                 March 31, 2002.............................................3

         Condensed Consolidated Statement of Cash Flows -
                 Three months ended March 31, 2003 and
                 March 31, 2002.............................................4

         Notes to Condensed Consolidated Financial Statements...............5

Item 2.  Management's Discussion and Analysis of Financial
                 Condition and Results of Operations.......................10

Item 3.  Quantitative and Qualitative Disclosures About
           Market Risk.....................................................17

Item 4.  Controls and Procedures...........................................17

PART II  OTHER INFORMATION.................................................19

SIGNATURES.................................................................20



<PAGE>

                         PART I - FINANCIAL INFORMATION



ITEM 1:  Financial Statements
         --------------------


              COMMODORE APPLIED TECHNOLOGIES, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET
                  (Dollars in Thousands, except per share data)
<TABLE>
<CAPTION>

                                                             March 31,      December 31,
                               ASSETS                          2003            2002
                                                            -----------     ------------
                                                            (unaudited)
<S>                                                         <C>              <C>
Current Assets:
         Cash and cash equivalents                          $        62      $       59
         Accounts receivable, net                                    42              92
         Prepaid assets and other current
            receivables                                             109             167
                                                            -----------      ----------
                  Total Current Assets                              213             318

Property and Equipment, net                                         308             358
Intangible Assets
         Patents and completed technology, net of
              accumulated amortization of $50 and
              $40 respectively                                       50              60
                                                            -----------      ----------

                    Total Assets                            $       571      $      736
                                                            ===========      ==========
</TABLE>


           See notes to condensed consolidated financial statements.


                                       1
<PAGE>

            COMMODORE APPLIED TECHNOLOGIES, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET
                  (Dollars in Thousands, except per share data)
<TABLE>
<CAPTION>


                                                             March 31,      December 31,
                          LIABILITIES AND                      2003             2002
                       STOCKHOLDERS' DEFICIT                -----------     ------------
                                                            (unaudited)
<S>                                                         <C>              <C>
Current Liabilities:
         Accounts payable                                   $     1,054      $    1,077
         Related party payable                                       83              80
         Current portion of long term debt                            -               -
         Line of credit                                               -               -
         Notes payable                                            1,010             714
         Other accrued liabilities                                3,074           2,723
                                                            -----------      ----------

                  Total Current Liabilities                       5,221           4,594

Long Term Debt                                                       -              431
                                                            -----------      ----------

                   Total Liabilities                              5,221           5,025

Commitments and Contingencies                                        --              --

Stockholders' Deficit
  Convertible Preferred Stock, Series E, F &
    H Par value $0.001 per share, 5% to 12%
    cumulative dividends, Series E And F, 3%
    dividends for Series H 1,561,700 authorized,
    1,087,200 shares and 1,213,700 shares issued
    and outstanding as of March 31, 2003 and
    December 31, 2002, respectively. The shares
    had an aggregate liquidation value of $4,907
    and $6,716 at March 31, 2003 and December 31,
    2002 respectively                                                 1               1
  Common Stock, par value $0.001 per share,
    125,000,000 shares authorized, 79,732,852
    and 59,027,062 issued and outstanding, at
    March 31, 2003 and December 31, 2002,
    respectively                                                     80              59
  Additional Paid-in Capital                                     67,177          67,129
  Accumulated Deficit                                           (71,645)        (71,215)
                                                            -----------      ----------
                                                                 (4,387)         (4,026)
  Treasury Stock, 3,437,500 shares                                 (263)           (263)
                                                            -----------      ----------
              Total Stockholders' Deficit                        (4,650)         (4,289)
                                                            -----------      ----------
  Total Liabilities and Stockholders' Deficit               $       571      $      736
                                                            ===========      ==========
</TABLE>


            See notes to condensed consolidated financial statements.

                                       2
<PAGE>
              COMMODORE APPLIED TECHNOLOGIES, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
            (Unaudited - Dollars in Thousands, except per share data)
<TABLE>
<CAPTION>

                                                                 Three months ended
                                                             March 31,        March 31,
                                                               2003             2002
                                                            -----------      ----------
<S>                                                         <C>              <C>
Contract revenues                                           $       164      $    1,087
Costs and expenses:
   Cost of sales                                                    205             939
   Research and development                                          59              77
   General and administrative                                       214             538
   Depreciation and amortization                                     66              63
                                                            -----------      ----------
            Total costs and expenses                                544           1,617
                                                            -----------      ----------
Income (loss) from operations                                      (380)           (530)
                                                            -----------      ----------
Other income (expense):
   Interest income                                                   --              --
   Interest expense                                                 (50)            (42)
   Income taxes                                                      --              --
                                                            -----------      ----------
            Net other income (expense)                              (50)            (42)
                                                            -----------      ----------
Loss before discontinued operations                                (430)           (572)

   Discontinued operations                                           --            (402)
                                                            -----------      ----------
   Net loss                                                 $      (430)     $     (974)
                                                            ===========      ==========
   Loss per share from continuing operations -
        basic and diluted                                   $      (.01)     $     (.01)

   Loss per share from discontinued operations -
        basic and diluted                                   $        --      $     (.01)
                                                            -----------      ----------

   Total loss per share - basic and diluted                 $      (.01)     $     (.02)
                                                            ===========      ==========
Number of weighted average shares outstanding
     (in thousands)                                              69,314          57,356
                                                            ===========      ==========
</TABLE>


            See notes to condensed consolidated financial statements.


                                       3
<PAGE>

              COMMODORE APPLIED TECHNOLOGIES, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
            (Unaudited - Dollars in Thousands, except per share data)
<TABLE>
<CAPTION>

                                                                 Three months ended
                                                             March 31,        March 31,
                                                               2003             2002
                                                            -----------      ----------
<S>                                                         <C>              <C>
Cash flows from operating activities:
     Net loss                                               $      (430)     $     (974)
     Add: net loss from discontinued operations                       -             402
     Adjustments to reconcile net loss to net
       cash used in operating activities:
         Depreciation and amortization                               66              73
         Amortization of debt discount                               35              18

         Changes in assets and liabilities, net
           of acquisitions:
                Accounts receivable                                  50               -
                Prepaid assets                                       58              36
                Net assets of component DRM                           -             931
                Accounts payable                                    (23)           (708)
                Other liabilities                                   170             (16)
                                                            -----------      ----------
                  Net cash used in operating activities             (74)           (238)

Cash flows from investing activities:
      Purchase of equipment                                          (6)              -
      Advances from (to) related parties, net                         3             (19)
                                                            -----------      ----------
                  Net cash used in investing activities              (3)            (19)

Cash flows from financing activities:
      Increase in (repayment of) line of credit                       -             252
      Increase in notes and loans payable                           120               -
      Payments on notes and loans payable                           (40)            (13)
                                                            -----------      ----------
                  Net cash provided by financing activities          80             239

Increase (decrease) in cash                                           3             (18)

Cash, beginning of period                                            59             170
                                                            -----------      ----------
Cash, end of period                                         $        62      $      152
                                                            ===========      ==========
</TABLE>


            See notes to condensed consolidated financial statements.


                                       4
<PAGE>

              COMMODORE APPLIED TECHNOLOGIES, INC. AND SUBSIDIARIES

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

                                 March 31, 2003

Note A - Basis of Presentation

         The accompanying  unaudited condensed consolidated financial statements
for Commodore  Applied  Technologies,  Inc. and  subsidiaries  (the "Company" or
"Applied")  have  been  prepared  in  accordance  with U.S.  generally  accepted
accounting   principles  for  interim   financial   information   and  with  the
instructions  to Form 10-Q and  Article  10 of  Regulation  S-X.  The  financial
statement  information was derived from unaudited  financial  statements  unless
indicated otherwise. 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 three-month period ended March 31, 2003 are
not  necessarily  indicative  of the results  that may be expected  for the year
ending December 31, 2003.

         The accompanying  unaudited condensed consolidated financial statements
should be read in conjunction with the Company's  audited  financial  statements
included in the Company's annual report on Form 10-K for the year ended December
31, 2002.

         Certain  prior-year  amounts have been  reclassified  to conform to the
current year presentation.

         The  accompanying  financial  statements  have been prepared  under the
assumption  that  Applied  will  continue as a going  concern.  Such  assumption
contemplates  the  realization of assets and the  satisfaction of liabilities in
the normal course of business.  For the period ended March 31, 2003, and for the
years ended  December 31,  2002,  2001,  and 2000,  Applied  incurred  losses of
$430,000, $5,972,000, $6,554,000 and $11,441,000, respectively. Applied has also
experienced net cash (outflows) inflows from operating activities of $(123,000),
$965,000,  and  $(2,629,000)  for the years ended  December 31, 2002,  2001, and
2000,  respectively.  These factors raise  substantial doubt about the Company's
ability to continue as a going concern.  The financial statements do not include
any adjustments  that might be necessary should Applied be unable to continue as
a going concern. Applied's continuation as a going concern is dependent upon its
ability to generate  sufficient  cash flow to meet its  obligations  on a timely
basis,  to obtain  additional  financing as may be required,  and  ultimately to
attain profitability.  Potential sources of cash include new contracts, external
debt,  the sale of new shares of company  stock or  alternative  methods such as
mergers or sale transactions.  No assurances can be given, however, that Applied
will be able to obtain any of these potential sources of cash.

         Anticipated  losses on contracts are provided for by a charge to income
during the period such losses are identified.  Changes in job  performance,  job
conditions,  estimated  profitability  (including  those  arising from  contract
penalty  provisions)  and final contract  settlements may result in revisions to
cost and income and are  recognized  in the  period in which the  revisions  are
determined.  Allowances for anticipated  losses totaled $300,000 and $238,000 at
March 31,  2003 and  December  31,  2002,  respectively.  These  allowances  are
included in other accrued liabilities in the accompanying financial statements.

         In as much  as  Applied  rescinded  certain  options  during  2002  and
reissued new options to the option holders,  the options are considered variable
options and will be revalued each quarter to determine the effect on operations,
if any.  During the quarter ended March 31, 2003, no expense has been recognized
for the variable  options as the fair market value of Applied's  common stock at
March 31, 2003 was lower than the exercise price of the variable options.


                                       5
<PAGE>

         The  consolidated  financial  statements  include  the  accounts of the
Company  and  its  majority-owned  subsidiaries.  All  significant  intercompany
balances and transactions have been eliminated.  The preparation of consolidated
financial  statements  in conformity  with U.S.  generally  accepted  accounting
principles requires management to make estimates and assumptions that affect the
reported  amounts of assets and  liabilities  and the  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.

Note B - Supplemental cash flow information

         During the three months ended March 31, 2003,  109,000 shares of Series
E Preferred  Stock and 17,500 shares of Series F Preferred  Stock were converted
into 16,136,715 and 2,450,514 shares of common stock, respectively.  The company
also paid  accrued  dividends  of $183,000  on  Preferred  Stock  Series E and F
through the issuance of 2,118,560  shares of common stock.  The Company  accrued
dividends on Preferred Stock Series E and F and H of $114,000, which is included
in Other Accrued Liabilities.

         During  the  three  months  ended  March  31,  2002,  20,000  shares of
Preferred  Stock Series F were converted into 1,360,544  shares of common stock.
The company also paid accrued  dividends of $120,000 on Preferred Stock Series E
and F through  the  issuance  of 867,392  shares of common  stock.  The  Company
accrued  dividends  on  Preferred  Stock  Series  E and F of  $51,000,  which is
included in Other Accrued Liabilities.

Note C - Other accrued liabilities

Other accrued liabilities consist of the following:

                                                      March 31,     December 31,
                                                        2003            2002
                                                      ---------     ------------

Dividend payable                                      $  1,141        $  1,210
Compensation and employee benefits                         937             842
Loss reserve                                               300             238
Related party obligation to issue stock for
converted note payable and accrued interest                287              --
Related parties                                            185             185
Accrued interest                                           126             155
Other                                                       98              93
                                                      --------        --------
                                                      $  3,074        $  2,723
                                                      ========        ========


Note D - Liability to issue shares of common stock

         During  March 2003,  a  shareholder  and officer  agreed to convert his
$250,000 note payable and $37,000 of accrued  interest due from the Company into
13,189,841  shares of the Company's  common stock. As the issuance of the common
stock has not  occurred as of March 31,  2003,  the Company has  included  these
amounts in Other Accrued  Liabilities at March 31, 2003. The Company anticipates
issuing the shares of common stock when the shares are authorized to be issued.



                                       6
<PAGE>

Note E - Segment information

         The  Company  has  identified  three  reportable  segments  in which it
operates,  based  on  the  guidelines  set  forth  in the  Financial  Accounting
Standards  Board's  Statement of Financial  Accounting  Standards No. 131. These
three segments are as follows:  (i) Commodore  Advanced  Sciences,  Inc.,  which
primarily provides various engineering,  legal,  sampling,  and public relations
services to Government agencies on a cost plus basis; (ii) Commodore  Solutions,
Inc., which is commercializing  technologies to treat mixed and hazardous waste;
and (iii) Corporate overhead and other miscellaneous activities.

         Dispute Resolution Management, Inc. ("DRM"), from August 30, 2000 (date
of  acquisition  of 81%  of  DRM by the  Company)  to  May  16,  2002  (date  of
dissolution  of 81% of DRM by the  Company),  provided a package of  services to
help companies recover financial  settlements from insurance  policies to defray
costs associated with  environmental  liabilities.  Loss from DRM is recorded in
the discontinued operations section of the segment information.

         Applied evaluates segment performance based on the segment's net income
(loss).  Applied's  foreign and export sales and assets  located  outside of the
United States are not significant.  Summarized financial information  concerning
Applied's reportable segments is shown in the following tables.


Three Months Ended March 31, 2003
<TABLE>
<CAPTION>


                                                                                    Corporate
                                                          Advanced                  Overhead
                                             Total        Sciences      Solution    and Other
<S>                                         <C>           <C>           <C>         <C>
Contract Revenues                           $   164       $    164      $     --    $      --

Costs and expenses
     Cost of Sales                              205            205            --           --
     Research and Development                    59             --            59           --
     General and Administrative                 214             76            62           76
     Depreciation and Amortization               66             10            56           --
                                            -------       --------      --------    ---------
              Total costs and expenses          544            291          (177)          76
                                            -------       --------      --------    ---------
Income (Loss) from Operations                  (380)          (127)         (177)         (76)
     Interest Income                             --             --            --           --
     Interest Expense                           (50)            (2)           --          (48)
                                            -------       --------      --------    ---------
Income (Loss) from Continuing                  (430)          (129)         (177)        (124)
     Operations
                                            -------       --------      --------    ---------
Net Income (Loss)                           $  (430)      $   (129)     $   (177)   $    (124)
                                            =======       ========      ========    =========

Total Assets                                $   571       $    217      $    300    $      54

Expenditures for long-lived assets          $     6       $      6      $     --    $      --


</TABLE>


                                       7
<PAGE>

Three Months Ended March 31, 2002
<TABLE>
<CAPTION>
                                                                                    Corporate
                                                          Advanced                  Overhead
                                             Total        Sciences      Solution    And Other

<S>                                         <C>           <C>           <C>         <C>
Contract Revenues                           $ 1,087       $  1,087      $     --    $      --

Costs and expenses
     Cost of Sales                              939            939            --           --
     Research and Development                    77             --            77           --
     General and Administrative                 538            210            40          288
     Depreciation and Amortization               63             11            52           --
                                            -------       --------      --------    ---------
              Total costs and expenses        1,617          1,160           169          288
                                            -------       --------      --------    ---------
Income (Loss) from Operations                  (530)           (73)         (169)        (288)

     Interest Income                             --             --            --           --
     Interest Expense                           (42)            --            --          (42)
                                            -------       --------      --------    ---------
                                               (572)           (73)         (169)        (330)

Loss from discontinued operations              (402)            --            --         (402)
                                            -------       --------      --------    ---------
Net Income (Loss)                           $  (974)      $    (73)     $   (169)   $    (732)
                                            =======       ========      ========    =========

Total Assets                                $28,114       $    296      $    350    $  27,468

Expenditures for long-lived assets          $    --       $     --      $     --    $      --
</TABLE>


                                       8
<PAGE>

Note F - Net loss per common share

         Basic net loss per common share ("Basic EPS") excludes  dilution and is
computed by dividing net loss available to common  shareholders  by the weighted
average number of common shares outstanding during the period.  Diluted net loss
per common share  ("Diluted  EPS")  reflects the  potential  dilution that could
occur if stock options or other  contracts to issue common stock were  exercised
or converted into common stock.  The  computation of Diluted EPS does not assume
exercise or conversion of securities that would have an anti-dilutive  effect on
net loss per common share.

         Options and warrants to purchase  34,274,905 and  26,485,113  shares of
common stock as of March 31, 2003 and 2002,  respectively,  were not included in
the  computation  of Diluted EPS. The  inclusion of the options  would have been
anti-dilutive, thereby decreasing net loss per common share.


Note G - Contingencies

         Applied has matters of  litigation  arising in the  ordinary  course of
business  which in the opinion of  management  will not have a material  adverse
effect on its financial condition or results of operations.


Note H - Subsequent Events

Issuance of Common Stock subsequent to March 31, 2003

         The  Company  issued a total of  5,306,325  shares of its common  stock
during the period  from  March 31,  2003 to May 15,  2003,  in  connection  with
various   conversion  notices  from  the  holders  of  the  Company's  Series  E
Convertible  Preferred  Stock,  par  value  ($0.001)  per share  (the  "Series E
Preferred")  and the holders of the  Company's  Series F  Convertible  Preferred
Stock, par value ($0.001) per share (the "Series F Preferred").

O. Mack Jones named Executive Officer of Applied on April 10, 2003

         O. Mack Jones was appointed  President and Chief  Operating  Officer of
Applied on April 10, 2003.  Mr.  Jones has been  serving as Acting  President of
Advanced  Sciences  since  February 28, 2001.  Mr. Jones also has served as Vice
President of Field Operations since April 1998,  managing its field treatability
studies and commercial projects.

Advanced Sciences and Solutions relocate offices on April 18, 2003

         After being  headquartered in Albuquerque for over  twenty-five  years,
the Company decided early in 2003 to relocate Advanced Sciences and Solutions to
Richland,  Washington.  This move was  completed  on April 18.  The  Company  is
focusing its  technologies  and  processes  on treating  mixed wastes for the US
Department of Energy at primary  nuclear legacy sites in the United States,  and
has  offices  in  Denver  (Rocky  Flats)  and  Oak  Ridge  (Oak  Ridge  National
Laboratory).  This new office in  Richland  will allow the  Company to serve the
government's  needs for small  business  participation  in closing the  Hanford,
Washington laboratory and operations site.

                                       9
<PAGE>


ITEM 2.  Management's Discussion and Analysis of Financial Condition
         -----------------------------------------------------------
                  and Results of Operations
                  -------------------------

Overview

         Commodore Applied Technologies, Inc. and subsidiaries (the "Company" or
"Applied"),  is engaged in  providing  a range of  engineering,  technical,  and
financial  services to the public and private sectors related to (i) remediating
contamination in soils,  liquids and other materials and disposing of or reusing
certain waste by-products by utilizing SET; and (ii) providing  services related
to,   environmental   management   for  on-site  and  off-site   identification,
investigation  remediation  and management of hazardous,  mixed and  radioactive
waste.

         Applied  discontinued  the  operations  of  its  previously  81%  owned
subsidiary  DRM, on May 16, 2002 as a result of Applied's  inability to meet the
terms and conditions of the Stock Purchase Agreement with DRM. The loss from the
disposition  of DRM is recorded at $4,134,000 to Applied.  The Company's loss of
the DRM subsidiary may have a material adverse effect on the financial condition
of the  Company  and its cash flow  problems.  The  Company  currently  requires
additional cash to sustain existing  operations and to meet current  obligations
and ongoing capital  requirements.  Excluding DRM, the Company's current monthly
operating expenses exceed cash revenues by approximately $80,000.

         The  Company is  currently  working on the  commercialization  of these
technologies  through  development  efforts,  licensing  arrangements  and joint
ventures.  Through  Commodore  Advanced  Sciences,  Inc.  ("Advanced  Sciences")
formerly Advanced Sciences,  Inc., a subsidiary acquired on October 1, 1996, the
Company has contracts with various government  agencies and private companies in
the U.S. As some government contracts are funded in one-year  increments,  there
is a possibility for cutbacks as these  contracts  constitute a major portion of
Advanced  Sciences'  revenues,  and such a reduction would materially affect the
operations.  Advanced Sciences has experienced a significant decrease in revenue
caused by fewer  contracts  and overall,  less work being  performed by Advanced
Sciences.  However,  management believes its existing client  relationships will
allow the Company to obtain new contracts in the future.


RESULTS OF OPERATIONS

Three Months Ended March 31, 2003 Compared to Three Months Ended March 31, 2002

         Revenues  were  $164,000  for the three  months  ended March 31,  2003,
compared to $1,087,000 for the three months ended March 31, 2002.

         In the case of Advanced Sciences, revenues were $164,000 for the period
ended March 31, 2003 as compared with  $1,087,000 for the period ended March 31,
2002. Advanced Sciences has experienced a significant decrease in revenue caused
by fewer contracts and overall,  less work being performed by Advanced Sciences.
The revenues from Advanced  Sciences  consisted of  engineering  and  scientific
services  performed  for  the  United  States  government  under  a  variety  of
contracts,  most of which  provide  for  reimbursement  of cost plus fixed fees.
Revenue under  cost-reimbursement  contracts is recorded under the percentage of
completion  method as costs  are  incurred  and  include  estimated  fees in the
proportion that costs to date bear to total estimated costs.  Advanced  Sciences
has two major customers, each of which represent more than 10% of total revenue.
The  combined  revenue  for these two  customers  was  $164,000 or 100% of total
revenues for the period  ending  March 31, 2003.  Cost of sales was $205,000 for
the period  ending  March 31, 2003  compared to $939,000  for the period  ending
March 31, 2002. The decrease in cost of sales can be attributed to a decrease in
variable costs caused by fewer contracts and overall,  less work being performed
by Advanced Sciences.

                                       10
<PAGE>

         In the case of Commodore Solution, Inc. ("Solution"),  revenues were $0
for the period  ended March 31, 2003 as  compared  with $0 for the period  ended
March 31, 2002. There were no revenues recorded for the three-month period ended
March 31, 2003 due to (i) SET processing  contracts  being completed but not yet
billable  under  current  revenue  recognition  guidelines,  (ii) United  States
Environmental  Protection Agency (the "USEPA")  demonstration of the SL-2 system
at a client  location in Oak Ridge,  Tennessee  for  inclusion to the  Company's
nationwide  permit for PCB  destruction;  and (iii) the  relocations  of the SET
equipment to Hanford, Washington.  Revenues, when recognized, are primarily from
remediation  services performed for engineering and waste treatment companies in
the U.S.  under a  variety  of  contracts.  There  was $0 cost of sales  for the
three-month  period  ended  March  31,  2003 and 2002.  The cost of sales,  when
incurred,   is  attributable  to  sales  and  marketing  expenses  for  the  SET
technology. Anticipated losses on engagements, if any, will be provided for by a
charge to income during the period such losses are first identified.

         For the three-month  period ended March 31, 2003, the Company  incurred
research  and  development  costs of $59,000  as  compared  to  $77,000  for the
three-month period ended March 31, 2002.  Research and development costs include
salaries,  wages,  and other related costs of personnel  engaged in research and
development activities, contract services and materials, test equipment and rent
for facilities  involved in research and  development  activities.  Research and
development costs are expensed when incurred,  except those costs related to the
design  or  construction  of  an  asset  having  an  economic  useful  life  are
capitalized,  and then  depreciated over the estimated useful life of the asset.
The  decrease  in  research  and  development  expense  is due to the  continued
commercialization focus of the Company.

         General and  administrative  expenses for the three-month  period ended
March 31, 2003 were $214,000 as compared to $538,000 for the three-month  period
ended March 31, 2002.  This difference is due to the decreased level of staffing
and the associated  office  equipment,  travel,  expenses and supplies needed to
operate for the three-month period ended March 31, 2003.

         In the case of  Advanced  Sciences,  general and  administrative  costs
decreased  from  $210,000  for the  three-month  period  ended March 31, 2002 to
$76,000 for the three-month  period ended March 31, 2003. This decrease reflects
the  impact  of  some  restructuring   steps  in  Advanced  Sciences  (including
principally a reduction in personnel) the Company made  throughout 2002 and 2003
due to the inability to replace certain completed  contracts.  Solution incurred
general  and  administrative  costs of $62,000 for the  three-month  period year
ended March 31, 2003 as compared with $40,000 for the  three-month  period ended
March 31, 2002. This increase was primarily due to (i) expenses  associated with
relocating  Solutions  operations to Advanced Sciences' new location in Hanford,
Washington;  (ii) expenses  associated  with a USEPA  demonstration  of the SL-2
system  at a client  location  in Oak  Ridge,  Tennessee  for  inclusion  to the
Company's  nationwide permit for PCB destruction;  and (iii) increased sales and
marketing  effort for  Solution's  services,  which may result in contracts that
will produce revenue in 2003.

         Interest income was $0 for the three-month  period ended March 31, 2003
and the  three-month  period  ended March 31,  2002.  The Company did not have a
material  amount of monies on  deposit  to  generate  interest  income for these
periods.

         Interest  expense for the three months ended March 31, 2003 was $50,000
as compared to $42,000 for the three months  ended March 31, 2002.  The increase
in interest  expense is due to an increase in  discounts  on debts for  warrants
amortized into interest  expense during the three months ended March 31, 2003 as
compared to the three months ended March 31, 2002.


                                       11
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

         At March 31, 2003 and December 31, 2002 Advanced  Sciences had a $0 and
$0 outstanding balance, respectively, on its revolving lines of credit.

         For the three-month period ended March 31, 2003, the Company incurred a
net loss of $430,000 as compared to a net loss of $974,000  for the  three-month
period ended March 31, 2002.  For the  three-month  period ended March 31, 2003,
and for the years ended  December 31, 2002,  2001,  and 2000,  Applied  incurred
losses  of  $430,000,  $5,972,000,  $6,554,000  and  $11,441,000,  respectively.
Applied  has  also  experienced  net  cash  (outflows)  inflows  from  operating
activities  of  $(123,000),  $965,000,  and  $(2,629,000)  for the  years  ended
December 31, 2002, 2001, and 2000, respectively.

         During  the  three-month  period  ended  March 31,  2003,  the  Company
converted  109,000  shares of Series E Preferred  and 17,500  shares of Series F
Preferred for  16,136,715  and 2,450,514  shares of the Company's  common stock,
respectively.  Additionally,  the Company issued 1,566,989 and 551,571 shares of
the  Company's  common  stock,  respectively,  in  satisfaction  of all  accrued
dividends pertaining to the Series E and Series F Preferred  conversions through
February 20, 2003.

         On June 28,  1996,  the Company  issued  common  stock and  warrants at
initial  public  offering  prices of $6.00 per share and $0.10 per warrant.  The
Company's warrants,  previously extended from June 16, 2001, expired on June 16,
2002. On March 6, 2003,  the  Company's  common stock ceased to be listed on the
American  Stock  Exchange  ("AMEX")  and began  trading in the  over-the-counter
market in the so-called "pink sheets" of the National Quotation Bureau, Inc. and
the OTC Bulletin Board of the National  Association of Securities Dealers,  Inc.
(the "OTCBB"), where it is currently traded under the symbol CXII.

         The  Company's  loss of the DRM  subsidiary  effective May 16, 2002 has
had,  and may  continue  to have,  a material  adverse  effect on the  financial
condition  of the Company  and its cash flow  problems.  The  Company  currently
requires  additional  cash to sustain  existing  operations  and to meet current
obligations  and ongoing  capital  requirements.  The Company's  current monthly
operating  expenses exceed cash revenues by  approximately  $80,000 at March 31,
2003.

         In November  1999,  the Company  completed  $2.5  million in  financing
through private  placement.  The Company issued 335,000 shares of a new Series E
Convertible Preferred Stock (the "Series E Preferred"),  convertible into common
stock at the market  price,  after  September  30, 2000 and up through April 30,
2004 at which  time it  automatically  converts  to common  stock.  The Series E
Preferred  has a variable  rate  dividend  averaging  8.15% over the term of the
security.  There are 169,000  shares of Series E Preferred  with a face value of
$1,690,000  outstanding  as of March 31,  2003.  There is  $707,141  of  accrued
dividends payable on the Series E Preferred as of March 31, 2003.

         In March 2000, the Company  completed $2.0 million in financing through
private  placement.  The  Company  issued  266,700  shares  of a  new  Series  F
Convertible Preferred Stock (the "Series F Preferred"),  convertible into common
stock at the market  price,  after  September  30, 2000 and up through April 30,
2004 at which  time it  automatically  converts  to common  stock.  The Series F
Preferred  has a variable  rate  dividend  averaging  8.15% over the term of the
security.  There are 118,200  shares of Series F Preferred  with a face value of
$1,182,000  outstanding  as of March 31,  2003.  There is  $421,266  of  accrued
dividends payable on the Series F Preferred as of March 31, 2003.

         In September 2000, the Company  completed  $500,000 in financing in the
form of a loan  (the  "Brewer  Note")  from S.  Brewer  Enterprises,  Inc.  ("SB
Enterprises"),  which is owned by one of its officers and  directors,  Shelby T.
Brewer.  The Brewer Note bears a 9.75% interest rate,  payable  monthly,  with a
balloon  principal  payment at the end of the term.  The Brewer Note was due and
payable on March 15, 2001 and was extended  under the same terms and  conditions
until  December 31, 2001. The Brewer Note was  convertible  into Common Stock at
the market price up through December 31, 2001.

                                       12
<PAGE>

         On March 15,  2001,  SB  Enterprises  executed an Amended and  Restated
Promissory Note (the "Restated  Brewer Note"),  which extended the maturity date
of the note until December 31, 2001. Additionally,  the conversion price feature
of the Restated  Brewer Note was changed to the 5-day  average  closing price of
the Company's  common stock prior to a conversion  notice.  On April 9, 2001, SB
Enterprises issued a conversion notice for $250,000 of the outstanding principal
of the Brewer Restated Note. The conversion  price was calculated based upon the
previous 5-day average of the closing price of the Company's  common stock,  and
the Restated  Brewer Note was converted into  1,041,667  shares of the Company's
common stock.  . The Company  believes that this  transaction is exempt from the
registration  requirements  of the  Securities  Act of  1933,  as  amended  (the
"Securities Act"), under Section 4(2) thereof as a transaction not involving any
public offering of securities.

         On December 12, 2002, SB  Enterprises  executed an Amended and Restated
Promissory Note Extension (the "Restated Brewer Note Extension"), which extended
the  maturity  date of the  Restated  Brewer  Note until  January  1,  2004.  In
connection  with the  Restated  Brewer Note  Extension,  the  Company  issued SB
Enterprises a 2-year warrant for 1,000,000  shares of the Company's common stock
at an  exercise  price of $0.05 per share.  On March 14,  2003,  SB  Enterprises
issued a conversion notice for the remaining  principal balance of $250,000 plus
accrued interest of $36,563.  The conversion price was calculated based upon the
previous 5-day average of the closing price of the Company's  common stock,  and
the Restated Brewer Note was converted into  13,189,842  shares of the Company's
common stock.  These shares have not been issued to SB Enterprises as of May 15,
2003 and are recorded as a liability  for  $286,563.  The Company  believes that
this transaction is exempt from the registration  requirements of the Securities
Act,  under  Section  4(2) thereof as a  transaction  not  involving  any public
offering of securities.

         In October 2001, Advanced Sciences refinanced their line of credit with
Commerce Funding  Corporation (the "Commerce Credit Line").  The Commerce Credit
Line is not to exceed 85 percent of eligible  receivables  or $1,000,000  and is
due October 2002, and  subsequently  extended until November 2003, with interest
payable  monthly at prime plus 2 percent (6.75 percent as of December 31, 2002).
The  Commerce  Credit  Line is  collateralized  by the  receivables  of Advanced
Sciences and is  guaranteed  by the Company.  The Commerce  Credit Line contains
certain  financial  covenants and  restrictions  including  minimum  ratios that
Advanced  Sciences must satisfy.  Advanced  Sciences was in compliance  with the
covenants of the Commerce Credit Line at April 15, 2003.

         In addition,  the Commerce  Credit Line  agreement  stipulates  that no
payments  shall be made by Advanced  Sciences to the Company  other than monthly
scheduled  payments of  principal  with respect to the  $8,280,000  subordinated
indebtedness  owed by Advanced  Sciences to the Company  (which is eliminated in
consolidation) and intercompany indebtedness not to exceed $20,000 in any month.
In  addition,  Advanced  Sciences  shall  not  incur  indebtedness  in excess of
$25,000,  other than trade payables,  the above  subordinated  indebtedness  and
other  contractual  obligations  to  suppliers  and  customers  incurred  in the
ordinary course of business.

         In November  2000, the Company  completed  $500,000 in financing in the
form of a loan (the "Weiss Group Note") from a group of four investors;  $75,000
of which was borrowed from the son of Paul E.  Hannesson,  our former  President
and Chief Executive  Officer,  and $25,000 of which was borrowed from Stephen A.
Weiss,  a  shareholder  of  Greenberg  Traurig,  LLP, our former  corporate  and
securities  counsel.  The Weiss Group Note bears interest at 12% per annum,  was
due and payable on February  12, 2001,  and is secured by the first  $500,000 of
loans or dividends that the Company may receive from DRM. As  consideration  for
such loan,  Environmental,  one of the Company's  principal  stockholders owning
approximately 16.58% of the Company's common stock, transferred to the investors
a total of 1,000,000 shares of the Company's common stock. The current principal
balance of the Weiss  Group Note is $254,231  and  remains  unpaid as of May 15,
2003. All have granted payment extensions until January 1, 2004.

                                       13
<PAGE>

         Effective  April 16,  2001,  the  Company  issued  warrants to purchase
1,000,000  shares of its common  stock at an  exercise  price of $0.22 per share
(the closing  price of our common stock on the AMEX on such date) to all holders
of the Weiss Group Note in consideration of the extension of the due date of the
Weiss Group Note from February 12, 2001 to June 30, 2001.  The Company  believes
that  this  transaction  is exempt  from the  registration  requirements  of the
Securities  Act,  under Section 4(2) thereof as a transaction  not involving any
public offering of securities.

         Effective  January 24, 2002,  the Company  issued  warrants to purchase
500,000  shares of its common stock at an exercise price of $0.15 per share (the
closing  price of our common  stock on the AMEX on such date) to all  holders of
the Weiss Group Note in  consideration  of the extension of the due date of such
loans by such persons from June 30, 2001 to May 31, 2002.  The Company  believes
that  this  transaction  is exempt  from the  registration  requirements  of the
Securities  Act,  under Section 4(2) thereof as a transaction  not involving any
public offering of securities.

         Effective  October 29,  2002,  the  lenders  under the Weiss Group Note
voluntarily  cancelled  all  warrants,  issued on April 16,  2001,  to  purchase
1,000,000 shares at an exercise price of $0.22 per share of the Company's common
stock in connection with the Weiss Group Note.  Effective  October 29, 2002, the
lenders under the Weiss Group Note voluntarily cancelled all warrants, issued on
January 24, 2002, to purchase  500,000  shares at an exercise price of $0.15 per
share of the Company's common stock in connection with the Weiss Group Note.

         Effective  October 29, 2002,  the Company  issued  warrants to purchase
1,500,000  shares of its common  stock at an  exercise  price of $0.05 per share
(the closing  price of our common stock on the AMEX on such date) to all holders
of the Weiss Group Note in  consideration  of the  extension  of the due date of
such loans by such  persons  from May 31,  2002 to January 1, 2004.  The Company
believes that this transaction is exempt from the  registration  requirements of
the Securities  Act,  under Section 4(2) thereof as a transaction  not involving
any public offering of securities.

         On June 13,  2001,  the  Company  issued  and sold to  Milford  Capital
Management, Inc. and the Shaar Fund, Ltd. (hereinafter known as "Milford/Shaar")
one-year,  15% Senior Secured Promissory Notes (the  "Milford/Shaar  Bridge Loan
Notes") in the aggregate principal amount of $1,000,000.  In connection with the
Milford/Shaar Bridge Loan Notes, the Company issued to Milford/Shaar a five-year
warrant for 333,334 shares of the Company's common stock at an exercise price of
$0.22 per share. The Company pledged its equipment and SET related  intellectual
property as  collateral  for the  Milford/Shaar  Bridge Loan Notes.  The Company
shall pay  Milford/Shaar  principal  and interest on a monthly basis in arrears.
The Milford/Shaar  Bridge Loan Notes may be prepaid at any time without penalty.
The Company  believes  that this  transaction  is exempt  from the  registration
requirements  of the Securities Act, under Section 4(2) thereof as a transaction
not involving any public offering of securities.

         The Company  made all payments on the  Milford/Shaar  Bridge Loan Notes
until  November 13, 2001.  The Company asked for and received a  forbearance  of
payments on the  Milford/Shaar  Bridge Loan Notes from  November  13, 2001 until
August 13, 2002. The Shaar Fund, Ltd., through the Shaar Bridge Loan,  continues
to  provide  cash  installments  on a periodic  basis in the form of  additional
principal.  The current principal balance of the Milford/Shaar Bridge Loan Notes
is $782,283 and remains unpaid as of May 15, 2003.  Additionally,  as of May 15,
2003, there is $119,173 in accumulated forbearance fees and $100,000 due in exit
fees on the  Milford/Shaar  Bridge Loan Notes. The Company has not been notified
of a default of the Milford/Shaar Bridge Loan Notes as of May 15, 2003.

                                       14
<PAGE>

         On October 2, 2002,  Mr.  Bentley Blum, a director of the Company,  had
previously  loaned the Company $125,000 in cash  installments over the period of
one year (the "Blum Loan").  The Company elected to convert the Blum Loan to the
Company's common stock under the conversion feature of the Blum Loan, based upon
the 5-day average  closing price of the Company's  common stock prior to October
2, 2002. On October 2, 2002, Blum issued a conversion notice for $125,000 of the
outstanding principal of the Blum Loan into 2,500,000 shares. Mr. Blum continues
to provide cash  installments  in the form of a demand note ("Blum Demand Note")
to the Company. The Blum Demand Note bears interest at 9% per annum. The current
principal  balance of the Blum Demand Note is $132,032 and remains  unpaid as of
May 15, 2003.  The Company  believes  that this  transaction  is exempt from the
registration requirements of the Securities Act, under Section 4(2) thereof as a
transaction not involving any public offering of securities.

         On August 30, 2000, the Company entered into a Stock Purchase Agreement
(the  "Agreement")  Applied  completed a stock  purchase  agreement with Dispute
Resolution Management,  Inc. (DRM) and its two shareholders,  William J. Russell
("Russell") and Tamie B. Speciale ("Speciale").

         On May 16,  2002,  William  J.  Russell  and  Tamie  B.  Speciale  (the
"Pledgees")  issued a Notice  of  Default  and  Right to  Pursue  Remedies  (the
"Notice")  to the  Company  claiming  that the  Company is in default  under the
Agreement and the related Stock Pledge Agreement (the "Stock Pledge"). As of May
16, 2002, the Company no longer owned an 81% interest in DRM.

         On August 19, 2002,  the Company  entered  into a settlement  agreement
with DRM (the "DRM  Settlement  Agreement").  Under terms of the DRM  Settlement
Agreement,  the  Company  acknowledged  that  it had  previously  received  back
4,750,000 shares of its common stock from DRM and its  shareholders.  As part of
the DRM  Settlement  Agreement,  the Company  received an  additional  1,187,500
shares of its common stock from DRM and its shareholders.

         Under the DRM  Settlement  Agreement,  as of September  30,  2002,  the
Company also issued 800,000 shares of Series H Preferred stock, par value $0.001
per  share  (the  "Series  H  Preferred  Stock"),  each  such  share of Series H
Preferred  Stock having a stated value of $1.00 per share,  to DRM,  Russell and
Speciale in satisfaction of the remaining  liabilities  relating to the purchase
and  working  capital of DRM.  The Series H  Preferred  Stock has the  following
rights, privileges, and limitations:


         a)   No Series H  Preferred  Stock may be  converted  prior to June 30,
              2003.  Until July 31,  2005,  only  80,000  shares of the Series H
              Preferred Stock shall be convertible in any calendar quarter.  The
              balance of any unconverted  shares of Series H Preferred Stock may
              be converted at any time on or after August 1, 2005.

         b)   The  conversion  price of the Series H  Preferred  Stock  shall be
              determined by the average closing price of Company's  common stock
              in the  previous  30  trading  days,  but in no  event  shall  the
              conversion price be less than $0.20 per share.

         c)   The Series H Preferred  Stock shall have a  non-cumulative  annual
              dividend  of 3%,  payable in cash or shares of Series H  Preferred
              Stock within 30 days of the end of the  Company's  fiscal year, at
              the Company's election.

         d)   The Series H Preferred Stock shall not be transferable.

         There are  800,000  shares of Series H  Preferred  with a face value of
$800,000 outstanding as of March 31, 2003. There is $14,762 of accrued dividends
payable on the Series H Preferred as of March 31, 2003.

                                       15
<PAGE>

         The financial information included in the accompanying form 10Q for the
period ending March 31, 2003 reflects the terms of the DRM Settlement Agreement.
For the year ended December 31, 2002 the Company recorded a loss on the disposal
of DRM in the amount of $4,134,000. The Company's loss of the DRM subsidiary has
had,  and may  continue  to have,  a material  adverse  effect on the  financial
condition  of the Company  and its cash flow  problems.  The  Company  currently
requires  additional  cash to sustain  existing  operations  and to meet current
obligations  and ongoing  capital  requirements.  The Company's  current monthly
operating expenses exceed cash revenues by approximately $80,000.

         The Company's auditor's opinion on our fiscal 2002 financial statements
contains a "going concern"  qualification  in which they express doubt about the
Company's ability to continue in business, absent additional financing.

         The  Company  currently  is  negotiating  with a lender to obtain  debt
financing, to supplement funds generated from operations,  to meet the Company's
cash needs over the next 12 months.  The  Company  intends to meet its long term
capital needs through  obtaining  additional  contracts that will generate funds
from operations and obtaining  additional debt or equity  financing as necessary
or engaging in merger or sale transactions.  There can be no assurance that such
sources of funds  will be  available  to the  Company or that it will be able to
meet its short or long term capital requirements.


NET OPERATING LOSS CARRYFORWARDS

         The  Company  has net  operating  loss  carryforwards  (the  "NOLs") of
approximately  $32,000,000,  which  expire in the years 2002 through  2022.  The
amount  of  NOLs  that  can be  used in any one  year  will  be  limited  by the
applicable  tax laws that are in  effect at the time such NOLs can be  utilized.
The unused NOLs balances may be accumulated and used in subsequent years. A full
valuation  allowance  has been  established  to offset any benefit  from the net
operating loss carryforwards. There can be no assurance that the Company will be
able to generate  sufficient  taxable income in the future to utilize any of the
NOLs.


FORWARD-LOOKING STATEMENTS

         Certain matters discussed in this Quarterly Report are "forward-looking
statements" intended to qualify for the safe harbors from liability  established
by Section 27A of the Securities Act and Section 21E of the Securities  Exchange
Act of 1934, as amended (the "Exchange Act"). These  forward-looking  statements
can generally be  identified  as such because the context of the statement  will
include words such as the Company "believes,"  "anticipates," "expects" or words
of similar  import.  Similarly,  statements  that describe the Company's  future
plans, objectives or goals are also forward-looking statements.

         Such  statements may address  future events and conditions  concerning,
among other things, the Company's results of operations and financial condition;
the  consummation  of  acquisition  and  financing  transactions  and the effect
thereof on the Company's business; capital expenditures;  litigation; regulatory
matters;  and the  Company's  plans and  objectives  for future  operations  and
expansion. Any such forward-looking statements would be subject to the risks and
uncertainties   that  could  cause  actual  results  of  operations,   financial
condition,  acquisitions,  financing  transactions,   operations,  expenditures,
expansion and other events to differ  materially from those expressed or implied
in such forward-looking statements. Any such forward-looking statements would be
subject  to a number  of  assumptions  regarding,  among  other  things,  future
economic, competitive and market conditions generally. Such assumptions would be
based on facts and conditions as they exist at the time such statements are made
as  well  as  predictions  as to  future  facts  and  conditions,  the  accurate
prediction of which may be difficult and involve the assessment of events beyond
the Company's control.

                                       16
<PAGE>

         Further,  the  Company's  business  is subject to a number of risks and
uncertainties that would affect any such forward-looking statements. These risks
and uncertainties include, but are not limited to:

         o    the  Company's  critical  need  for  additional  cash  to  sustain
              existing  operations  and meet  existing  obligations  and capital
              requirements;
         o    the ability to generate  profitable  operations from a large scale
              remediation project;
         o    the ability of the Company to renew its nationwide permit to treat
              PCBs;
         o    the  ability of the  Company  to  implement  its waste  processing
              operations,   including  obtaining   commercial  waste  processing
              contracts and  processing  waste under such  contracts in a timely
              and cost  effective  manner;  the timing and award of contracts by
              the U.S.  Department  of Energy  for the  cleanup  of waste  sites
              administered by it;
         o    the Company's ability to integrate acquired companies;
         o    the acceptance and implementation of the Company's waste treatment
              technologies in the government and commercial sectors;
         o    the  Company's  ability to obtain and  perform  under  other large
              technical support services projects; developments in environmental
              legislation and regulation;
         o    the ability of the Company to obtain future financing on favorable
              terms; and
         o    other circumstances affecting anticipated revenues and costs.

         These risks and uncertainties could cause actual results of the Company
to differ materially from those projected or implied by such forward-looking
statements.



ITEM 3.  Quantitative and Qualitative Disclosures About Market Risk
         ----------------------------------------------------------

         Not applicable.



ITEM 4.  Controls and Procedures
         -----------------------

         (a)  Evaluation of disclosure  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, and the Company's Chief Financial Officer
              and Chief  Accounting  Officer.  Based upon that  evaluation,  the
              Company's  President  and  Chief  Executive  Officer,   and  Chief
              Financial Officer and Chief Accounting Officer have concluded that
              the Company's  disclosure controls and procedures are effective in
              timely  alerting  them to  material  information  relating  to the
              Company  required  to be included in the  Company's  periodic  SEC
              filings. 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  rule 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,  include the Company's Chief Executive
              Officer,  and Chief Financial Officer and Chief Accounting Officer
              as  appropriate,  to allow  timely  decisions  regarding  required
              disclosures.

                                       17
<PAGE>

         (b)  Changes  in  internal  controls.  There  have been no  changes  in
              internal  controls or in other  factors  that could  significantly
              affect these controls  subsequent to the date of their evaluation,
              including  any  corrective  actions  with  regard  to  significant
              deficiencies and material weaknesses.


                                       18
<PAGE>


                           PART II - OTHER INFORMATION


ITEM 1.  Legal Proceedings

         There have been no material legal proceedings to which the Company is a
party which have not been disclosed in previous  filings with the Securities and
Exchange  Commission.  There are no material  developments to be reported in any
previously reported legal proceedings.

ITEM 2.  Change in Securities

         Not applicable

ITEM 3.  Defaults among Senior Securities

         Not applicable.

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

         Not applicable.

ITEM 5.  Other Events

         Not applicable.

ITEM 6.  Exhibits and Reports on Form 8 - K

         (a) Exhibits -

         1.   99.1 -  Certification  pursuant  to 18  U.S.C.  section  1350,  as
              adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.

         2.   99.2 -  Certification  pursuant  to 18  U.S.C.  section  1350,  as
              adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.


         (b) Reports on Form 8-K.

         1.   The Company  filed a Current  Report on Form 8-K,  dated April 16,
              2003, announcing its 2002 Fiscal Year End earnings.



                                       19
<PAGE>
                                   SIGNATURES


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




Date: May 15, 2003                          COMMODORE APPLIED TECHNOLOGIES, INC.
                                            (Registrant)


                                            By    /s/ James M. DeAngelis
                                              --------------------------------
                                            James M. DeAngelis - Senior Vice
                                            President and Chief Financial
                                            Officer (as both a duly authorized
                                            officer of the registrant and the
                                            principal financial officer of the
                                            registrant)


                                       20
<PAGE>

            SECTION 302 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I,   Shelby T. Brewer, certify that:

1)   I have reviewed  this  quarterly  report on Form 10-Q of Commodore  Applied
     Technologies, Inc.;

2)   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3)   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4)   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent function):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: May 15, 2003                          /s/ Shelby T. Brewer
                                            ------------------------------------
                                            Chairman and Chief Executive Officer


                                       21
<PAGE>

            SECTION 302 CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I,   James M. DeAngelis, certify that:

1.   I have reviewed  this  quarterly  report on Form 10-Q of Commodore  Applied
     Technologies, Inc.;

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent function):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: May 15, 2003                          /s/ James M. DeAngelis
                                            ---------------------------
                                            Chief Financial Officer and
                                            Treasurer


                                       22