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 September 30, 2002
                                       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 .

         The number of shares the common stock  outstanding at November 14, 2002
was 57,645,290.



<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 -
            September 30, 2002 and December 31, 2001.........................1

         Condensed Consolidated Statement of Operations -
            Three and nine months ended September 30, 2002
            and September 30, 2001...........................................3

         Condensed Consolidated Statement of Cash Flows -
            Nine months ended September 30, 2002 and
            September 30, 2001...............................................4

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

Item 2.  Management's Discussion and Analysis of Financial
            Condition and Results of Operations.............................13

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.........18

Item 4.  Controls and Procedures............................................18

PART II  OTHER INFORMATION..................................................20

SIGNATURES..................................................................21



<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>

                                                               Sept 30,        December 31,
                               ASSETS                            2002              2001
                                                                 ----              ----
                                                             (unaudited)
<S>                                                           <C>                  <C>
Current Assets:
         Cash and cash equivalents                            $     72             $      170
         Accounts receivable, net                                  774                    599
         Prepaid assets and other current receivables               92                    327
                                                              --------             ----------
                  Total Current Assets                             938                  1,096

Property and equipment, net                                        420                    597
Patents and completed technology, net of
       accumulated amortization of                           .
       $1,405 and $1,375, respectively                              70                    100
                                                              --------             ----------
       Total Intangible Assets                                      70                    100

Assets held for sale - component DRM                                --                 29,407
                                                              --------             ----------
       Total Assets                                           $  1,428             $   31,200
                                                              ========             ==========

</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>


                                                                 Sept 30,               December 31,
                          LIABILITIES AND                          2002                    2001
                   STOCKHOLDERS' (DEFICIT) EQUITY                  ----                    ----
                                                                (unaudited)
<S>                                                              <C>                     <C>
Current Liabilities:
         Accounts payable                                        $    1,200              $    1,371
         Related party payable                                          137                     160
         Current portion of long term debt                                -                      90
         Line of credit                                                 357                     108
         Notes payable                                                1,080                   1,155
         Other accrued liabilities                                    2,404                   2,035
                                                                 ----------              ----------
                  Total Current Liabilities                           5,178                   4,919
Liabilities held for sale - component DRM                                --                  24,710
                                                                 ----------              ----------
                   Total Liabilities                                  5,178                  29,629

Commitments and contingencies                                            --                      --

Stockholders' (Deficit) Equity
         Convertible Preferred Stock, Series E,F & H
         par value $0.001 per share, 5% to 12% cumulative
         dividends for Series E and F,  3% for Series H,
         1,401,700 shares authorized,
         1,190,200 and 410,200 shares issued and
         outstanding as of Sept 30, 2002 and
         December 31, 2001, respectively.
         The shares had an aggregate liquidation
         value of $6,203 and $5,140 at Sept 30, 2002
         and December 31, 2001, respectively.                             1                      --
         Common Stock, par value $0.001 per share,
         125,000,000 shares authorized, 57,645,290
         and 55,417,354 issued and outstanding at
         Sept 30, 2002 and December 31, 2001,
         respectively.                                                   58                      55
          Additional paid-in capital                                 67,331                  66,759
         Shareholder receivable                                         (83)                     --
         Accumulated deficit                                        (70,677)                (65,243)
                                                                 ----------              ----------
                                                                     (3,370)                 (1,571)
         Treasury Stock, 4,750,000 shares at Sept 30, 2002             (380)                     --
                                                                 ----------              ----------
              Total Stockholder's (Deficit) Equity                   (3,750)                  1,571
                                                                 ----------              ----------
         Total Liabilities and Stockholders'(Deficit) Equity     $    1,428              $   31,200
                                                                 ==========              ==========
</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            Nine months ended
                                                                     Sept 30,        Sept 30,      Sept 30,       Sept 30,
                                                                       2002            2001           2002          2001
                                                                       ----            ----           ----          ----

<S>                                                                  <C>           <C>            <C>            <C>
Contract revenues                                                    $     1,104   $     1,071    $     3,381    $      3,555
Costs and expenses:
         Cost of sales                                                       728           890          2,359           2,824
         Research and development                                             37            67            150             263
         General and administrative                                          373           435          1,241           1,468
          Depreciation and amortization                                       97           135            210             482
                                                                     -----------   -----------    -----------    ------------
                  Total costs and expenses                                 1,235         1,527          3,960           5,037
                                                                     -----------   -----------                   ------------
                                                                                                  -----------
Income (loss) from operations                                               (131)         (456)          (579)         (1,482)
                                                                     -----------   -----------    -----------    ------------

Other income (expense):
         Interest income                                                      --            --             --               3
         Interest expense                                                    (15)          (25)           (83)           (338)
                                                                     -----------   -----------    -----------    ------------
                  Net other income (expense)                                 (15)          (25)           (83)           (335)
                                                                     -----------   -----------    -----------    ------------
Income (loss) before income taxes                                           (146)         (481)          (662)         (1,817)
         Income taxes                                                         --            --             --              --
                                                                     -----------   -----------    -----------    ------------
Income (loss) from continuing operations                                   (146)          (481)          (662)         (1,817)
         Loss from discontinued operations of component
         DRM (including loss on disposal of $4,134
         during the nine months ended Sept 30, 2002)                           -        (1,039)        (4,802)         (1,164)
                                                                     -----------   -----------    -----------    ------------
         Net loss                                                    $      (146)  $    (1,520)   $    (5,464)   $     (2,981)
                                                                     ===========   ===========    ===========    ============
         Loss per share - basic and diluted                          $     (0.00)  $     (0.03)   $     (0.10)   $      (0.06)
                                                                     ===========   ===========    ===========    ============
Number of weighted average shares outstanding (000's)                     52,895        53,086         55,197          52,605
                                                                     ===========   ===========    ===========    ============

</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>


                                                                             Nine months ended
                                                                       Sept 30,             Sept 30,
                                                                         2002                 2001
                                                                         ----                 ----
<S>                                                                  <C>                 <C>
Cash flows from operating activities:
     Net loss                                                        $       (5,464)     $       (2,981)
     Add: net loss from discontinued operations                               4,802               1,164
     Adjustments to reconcile net loss to net cash
     provided by operating activities:
         Depreciation and amortization                                          210                 511
         Amortization of debt discount                                           18                  46
          Other non-cash charges                                                  -                  50
         Changes in assets and liabilities:
                Accounts receivable, net                                       (175)              2,476
                Prepaid assets                                                  235                 322
                Other assets                                                      -                 (17)
                Accounts payable                                               (119)               (996)
                Other liabilities                                               175                (665)
                                                                     --------------      --------------
Net cash used in continuing operations                                         (318)                (90)
Net cash provided by discontinued operations                                    184                 799
                                                                     --------------      --------------
                Net cash (used in) provided by
                operating activities                                           (134)                709

Cash flows from investing activities:
         Purchase of equipment                                                   (3)                (11)
         Advances to related parties                                            (23)                (62)
                                                                     --------------      --------------
Net cash used in continuing operations                                          (26)                (73)
Net cash (used in) provided by discontinued operations                           (4)                 25
                                                                     --------------      --------------
                Net cash used in investing activities                           (30)                (48)

Cash flows from financing activities:
      Increase in (repayment of) line of credit                                 249              (1,298)
      Increase in notes and loans payable                                        --               1,000
      Payments on notes payable and long-term debt                             (183)               (745)
      Proceeds from sale of common stock                                         --                 200
                                                                     --------------      --------------
                Net cash provided by (used in) financing activities              66                (843)

Decrease in cash                                                                (98)               (182)
Cash, beginning of period                                                       170                 579
                                                                     --------------      --------------
Cash, end of period                                                  $           72      $          397
                                                                     ==============      ==============
</TABLE>

            See notes to condensed consolidated financial statements.


                                       4
<PAGE>


              COMMODORE APPLIED TECHNOLOGIES, INC. AND SUBSIDIARIES

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


                                  Sept 30, 2002


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 accounting principles generally
accepted in the United States of America 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 accounting  principles  generally accepted
in the United States of America 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 and nine month periods ended September
30, 2002 are not necessarily  indicative of the results that may be expected for
the year ending December 31, 2002.

         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, 2001.

         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 nine month period ended  September  30,
2002, and the years ended  December 31, 2001,  2000 and 1999,  Applied  incurred
losses of $5,464,000, $6,554,000, $11,441,000 and $3,985,000,  respectively. For
the nine month period ended September 30, 2002, and for the years ended December
31,  2001,  2000 and  1999,  Applied  has  also  experienced  net  cash  inflows
(outflows) from operating activities of $(134,000), $1,907,000, $(2,002,000) and
$(2,905,000). 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.
The Company has a working  capital  deficit of  $4,240,000  as of September  30,
2002.  Potential  sources of cash include new  contracts,  external debt and 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 $198,000 and $200,000 at
September 30, 2002 and December 31, 2001, respectively.

                                       5
<PAGE>

         On May 16, 2002, a Notice of Default and Right to Pursue  Remedies (the
"Notice")  was issued to the Company by William J. Russell and Tamie B. Speciale
(the  "Pledgees")  claiming  that the  Company  is in  default  under  the Stock
Purchase Agreement (the "Agreement"), between the Company and Dispute Resolution
Management,  Inc.  ("DRM") and the related  Stock Pledge  Agreement  (the "Stock
Pledge"). As of May 16, 2002, the Company no longer owns 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 will receive an additional 1,187,500
shares of its common stock from DRM and its shareholders.

         Additionally,  the Company  issued 800,000 shares of Series H Preferred
stock (the "Series H Preferred"), par value $0.001 per share, each such share of
Series H  Preferred  having  a stated  value of  $1.00  per  share,  to  Dispute
Resolution Management, Inc. ("DRM"), William J. Russell and Tamie P. Speciale as
part of the DRM Settlement  Agreement as of September 30, 2002 for  satisfaction
of the  remaining  liabilities  relating to the purchase and working  capital of
DRM. The Series H Preferred  shall have the following  rights,  privileges,  and
limitations:

         (a)  The conversion feature shall be exercisable on June 30, 2003.

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

         (c)  The conversion price of the Series H Preferred 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.

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

         (e)  The Series H Preferred shall not be transferable.

         The financial information included in the accompanying form 10Q for the
periods  ending  September  30, 2002  reflects  the terms of the DRM  Settlement
Agreement.  For the nine months ended September 30, 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  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 $100,000.

         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.

                                       6
<PAGE>


Note B - Segment Information

         Using the  guidelines  set forth in SFAS No.  131,  "Disclosures  About
Segments of an Enterprise and Related  Information",  the Company has identified
two continuing  reportable segments in which it operates,  based on the services
it provides.  The  reportable  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; and
(ii) Commodore Solutions,  Inc., which is commercializing  technologies to treat
mixed and hazardous waste.

         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 table.



                                       7
<PAGE>


Three Months Ended Sept 30, 2002
(Dollars in Thousands)
<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------------------------
                                                                                                    Corporate
                                                                                                    Overhead
                                                 Total             ASI             Solution         and Other

<S>                                             <C>               <C>              <C>              <C>
Contract revenues                               $  1,104          $  989           $   115          $   --

Costs and expenses
     Cost of sales                                   728             655                73                --
     Research and development                         37              --                37                --
     General and administrative                      373             160                33               180
     Depreciation and amortization                    97              40                57                --
                                                --------          ------           -------          --------
              Total costs and expenses             1,235             855               200               180
                                                --------          ------           -------          --------
Income (loss) from operations                       (131)            134               (85)             (180)

     Interest income                                  --              --                --                --
     Interest expense                                (15)             (7)               --                (8)
     Income taxes                                     --              --                --                --
                                                --------          ------           -------          --------
Income (loss) from continuing operations            (146)            127               (85)             (188)

    Loss from discontinued
    Operations                                                        --                --
                                                --------          ------           -------          --------

Net income (loss)                               $   (146)         $  127           $   (85)         $   (188)
                                                ========          ======           =======          ========

Total assets                                    $  1,428          $  952           $   356          $    120

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

</TABLE>

                                       8
<PAGE>



Nine Months Ended September 30, 2002
(Dollars in Thousands)
<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     Corporate
                                                                                                                     Overhead
                                                Total            ASI           Solution            DRM               and Other

<S>                                            <C>             <C>              <C>              <C>                 <C>
Contract revenues                              $  3,381        $  3,233         $   148          $      --           $    --

Costs and expenses
     Cost of sales                                2,359           2,106             253                 --                --
     Research and development                       150              --             150                 --                --.
     General and administrative                   1,241             555              85                 --               601
     Depreciation and amortization                  210              62             148                 --                --
                                               --------        --------         -------          ---------           -------
              Total costs and expenses            3,960           2,723             636                                  601
                                               --------        --------         -------          ---------           -------

Income (loss) from operations                      (579)            510            (488)                --              (601)

     Interest income                                 --              --              --                 --                --
     Interest expense                               (83)            (59)             --                 --               (24)
     Income taxes                                    --              --              --                 --                --
                                               --------        --------         -------          ---------           -------

Income (loss) from continuing                      (662)            451            (488)                --              (625)
operations
     Loss from discontinued                      (4,802)             --              --             (4,802)               --
     Operations
                                               --------        --------         -------          ---------           -------

Net Income (loss)                              $ (5,464)       $    451         $  (488)         $  (4,802)          $  (625)
                                               ========        ========         =======          =========           =======

Total assets                                   $  1,428        $    952         $   356          $      --           $   120

Expenditures for long-lived assets             $      4        $     --         $    --          $       4           $    --
</TABLE>


                                       9
<PAGE>

Three Months Ended September 30, 2001
(Dollars in Thousands)
<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     Corporate
                                                                                                                     Overhead
                                                 Total            ASI          Solution            DRM               and Other

<S>                                            <C>             <C>              <C>              <C>                 <C>
Contract revenues                              $  1,071        $  1,071         $    --          $      --           $    --

Costs and expenses
     Cost of sales                                  890             890              --                 --                --
     Research and development                        67              --              67                 --                --
     General and administrative                     435             259             161                 --                15
     Depreciation and amortization                  135              20             115                 --                --
                                               --------        --------         -------          ---------           -------
             Total costs and expenses             1,527           1,169             343                 --                15
                                               --------        --------         -------          ---------           -------
 Income (loss) from operations                     (456)            (98)           (343)                --               (15)


     Interest income                                 --              --              --                 --                --
     Interest expense                               (25)             25              --                 --               (50)
     Income taxes                                    --              --              --                 --                --
                                               --------        --------         -------          ---------           -------
Loss from continuing operations                    (481)            (73)           (343)                --               (65)
     Loss from discontinued                      (1,039)             --              --             (1,039)               --
     operations                                --------        --------         -------          ---------           -------
Net income (loss)                              $ (1,520)       $    (73)        $  (343)         $  (1,039)          $   (65)
                                               ========        ========         =======          =========           =======

Total assets                                   $ 31,514        $  1,537         $ 1,489          $   3,091           $25,397

Expenditures for long-lived assets             $      9        $     --         $    --          $       9           $    --

</TABLE>


                                       10
<PAGE>


Nine Months Ended September 30, 2001
(Dollars in Thousands)
<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     Corporate
                                                                                                                     Overhead
                                                Total            ASI               Solution          DRM             and Other

<S>                                            <C>             <C>                 <C>           <C>                 <C>
Contract revenues                              $  3,555        $  3,370           $    185       $      --           $    --

Costs and expenses
     Cost of sales                                2,824           2,625                199              --                --
     Research and development                       263              --                263              --                --
     General and administrative                   1,468             698                401              --               369
     Depreciation and amortization                  482              59                346              --                77
                                               --------        --------           --------       ---------           -------
              Total costs and expenses            5,037           3,382              1,209              --               446
                                               --------        --------           --------       ---------           -------
 Income (loss) from operations                   (1,482)            (12)            (1,024)             --              (446)

     Interest income                                  3              --                 --              --                 3
     Interest expense                              (338)            (11)                --              --              (327)
     Income taxes                                    --              --                 --              --                --
                                               --------        --------           --------       ---------           -------

Income (loss) from continuing                    (1,817)            (23)            (1,024)             --              (770)
operations                                                                                              --
Loss from discontinued                           (1,164)             --                 --          (1,164)               --
     Operations                                --------        --------           --------       ---------           -------
Net Income (loss)                              $ (2,981)       $    (23)          $ (1,024)      $  (1,164)          $  (770)
                                               ========        ========           ========       =========           =======

Total assets                                   $ 31,514        $  1,537           $  1,489       $   3,091           $25,397

Expenditures for long-lived assets             $     48        $     --           $     --       $      48           $    --

</TABLE>



                                       11
<PAGE>

Note C - 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 D - Subsequent Events

         On August 21, 2002,  the Company  issued a press release  regarding the
failure  of CASI,  to  obtain a further  extension  of its  Analytical  Services
Support  subcontract to provide  sampling and analytical  work in support of the
closure of the  Department of Energy's  (DOE's)  Rocky Flats site.  The contract
expired on September  30, 2002.  For the past two calendar  years this  contract
represented  approximately 65% of the Company's aggregate gross revenues,  after
excluding discontinued  operations.  While the loss of this contract will have a
short-term  impact,  management  currently  believes  that it will obtain future
contracts using the SET technology that may replace the lost revenues.

         On October 1, 2002,  the  Company  cancelled  all  3,644,373  employee,
officer and director options issued under the 1998 Stock Option Plan, as amended
(the "Plan"). On October 2, 2002, the Company issued to employees,  officers and
directors  6,847,217 options at the current market price ($0.07 per share) under
the Plan.  The Plan currently has issued 51% of the options to employees and has
issued 49% of the  options to officers  and  directors.  All  options  issued on
October 2, 2002, under the Plan are fully vested and will be treated as variable
options with respect to the accounting treatment of such options.

         Additionally,  on October 2, 2002,  the  Company  awarded an  aggregate
amount of  3,000,000  options to  officers  outside  of the Plan at the  current
market price ($0.07 per share),  with vesting  contingent  upon meeting  certain
performance  measures established by the Company's  Compensation  Committee (the
"Performance  Options"). As of November 11, 2002, such performance criteria have
not been met and the Performance Options remain unvested.

         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 note was due and payable
on March 15, 2001 and was  extended  under the same terms and  conditions  until
December 31, 2001.  Effective  October 29, 2002, the Company issued  warrants to
purchase  1,000,000 shares of its common stock at an exercise price of $0.05 per
share (the closing price of our common stock on the American  Stock  Exchange on
such date) to SB Enterprises, the holder of the Brewer Note, in consideration of
such  person's  extension  of the due date of the Brewer Note from  December 31,
2001 to January 1, 2004.


                                       12
<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 $100,000.

         The  Company is  currently  working on the  commercialization  of these
technologies  through  development  efforts,  licensing  arrangements  and joint
ventures.  Through Commodore Advanced  Sciences,  Inc. ("ASI") 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 ASI's
revenues, and such a reduction would materially affect the operations.  However,
management believes its existing client  relationships will allow the Company to
obtain new contracts in the future.


RESULTS OF OPERATIONS

Three and Nine Months Ended September 30, 2002 Compared to Three and Nine Months
Ended September 30, 2001

         Revenues from continuing  operations were $1,104,000 and $3,381,000 for
the three and nine months ended  September 30, 2002,  compared to $1,071,000 and
$3,555,000 for the three and nine months ended September 30, 2001. Such revenues
were primarily from the Company's subsidiary ASI.

         In the case of ASI, revenues were $989,000 and $3,233,000  respectively
for the  three  and nine  months  ended  September  30,  2002 as  compared  with
$1,071,000  and  $3,370,000  for the three and nine months  ended June 30, 2001.
There are no material  differences in sales.  The revenues from ASI consisted of
engineering and scientific  services  performed for the United States government
under a variety of  contracts.  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. Currently, ASI has two major customers, each of which represent
more than 10% of total revenue. The combined revenue for these two customers was
$989,000 and $3,233,000  respectively (100% of total revenues) for the three and
nine months ended  September 30, 2002. Cost of sales was $655,000 and $2,106,000
respectively  for the three and nine months ended September 30, 2002 compared to
$890,000  and  $2,625,000  respectively  for the  three  and nine  months  ended
September 30, 2001. The decrease in cost of sales is due to greater efficiencies
in staffing and further reduction of sales associated  expenses in the three and
nine months ended September 30, 2002.

                                       13
<PAGE>

         In the case of Commodore  Solution,  Inc.  ("Solution"),  revenues were
$115,000 and $148,000 respectively for the three and nine months ended September
30, 2002 as compared with $0 and $185,000 respectively for three and nine months
ended June 30, 2001. Solution continues to do feasibility studies and commercial
processing during this period. Revenues were primarily from remediation services
performed for  engineering  and waste  treatment  companies in the U.S.  under a
variety of contracts.  Solution has two major customers, each of whom represents
more than 10% of the revenue for the three and nine months ended  September  30,
2002.  The combined  revenue for these two  customers  was $115,000 and $148,000
respectively  (100% of the  Solution's  total  revenue)  for the  three and nine
months  ended  September  30,  2002.  Cost of sales  was  $73,000  and  $253,000
respectively  for the three and nine months ended September 30, 2002 as compared
to $0 and $199,000  respectively  for the three and nine months ended  September
30, 2001. The increase in cost of sales is attributable to higher sales expenses
for the SET  technology,  which the Company  anticipates  will result in greater
revenues from Solution in the year 2003.  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 and nine months ended  September  30,  2002,  the Company
incurred research and development costs of $37,000 and $150,000  respectively as
compared  to $67,000  and  $263,000  respectively  for the three and nine months
ended  September 30, 2001.  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 which 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 continuing  operations for the
three and nine months ended  September  30, 2002 were  $373,000  and  $1,241,000
respectively as compared to $435,000 and $1,468,000  respectively  for the three
and  nine  months  ended  September  30,  2001.  This  difference  is due to the
reduction in staffing and other expenses.

         Interest  expense  for  continuing  operations  for the  three and nine
months  ended  September  30,  2002 was  $15,000 and  $83,000,  respectively  as
compared to $25,000  and  $338,000,  respectively  for the three and nine months
ended September 30, 2001. The decrease in interest expense is primarily  related
to amortization of non-cash interest costs associated with the Brewer Promissory
Note, the  amortization  of non-cash  interest costs  associated with the Bridge
Loan Notes, and the amortization of non-cash  interest costs associated with the
Milford/Shaar Bridge Loan Notes.

         The estimated loss from discontinued operations is approximately $0 and
$4,802,000,  respectively for the three and nine months ended September 30, 2002
as compared to $1,039,000 and  $1,164,000,  respectively  for the three and nine
months ended  September 30, 2001.  The  difference  results  primarily  from the
estimated  loss on disposal of DRM of  approximately  $4,134,000.  The remaining
difference  is the  result  of the  reduced  retainers  paid  by  DRM's  current
customers  and  the  lack of  material  settlements  on  their  existing  client
agreements.


LIQUIDITY AND CAPITAL RESOURCES

         At  September  30, 2002 and  December  31, 2001 ASI had a $357,000  and
$108,000 outstanding balance, respectively, on its revolving lines of credit.

                                       14
<PAGE>

         For the three and nine months ended  September  30,  2002,  the Company
incurred a net loss from  continuing  operations of ($146,000)  and  ($662,000),
respectively  as  compared  to  a  net  loss  of  ($481,000)  and  ($1,817,000),
respectively  for the three and nine months ended  September  30, 2001.  For the
period  ended  September  30, 2002,  and for the years ended  December 31, 2001,
2000, and 1999,  Applied has also  experienced net cash inflows  (outflows) from
operating activities of ($134,000), $1,907,000,  ($2,002,000), and ($2,905,000).
At September 30, 2002 the Company had working  capital deficit of $4,240,000 and
shareholders' deficit of $3,750,000.

         During the  nine-month  period ended  September  30, 2002,  the Company
converted  20,000 shares of Series F Convertible  Preferred  Stock for 1,360,544
shares of the Company's common stock.  Additionally,  the Company issued 867,392
shares of the Company's  common stock in satisfaction  of all accrued  dividends
pertaining to the Series E and Series F Convertible  Preferred Stock conversions
to date.

         In March 2000, the Company  completed $2.0 million in financing through
private  placement.  The  Company  issued  226,000  shares  of a  new  Series  F
Convertible Preferred Stock,  convertible into Common Stock at the market price,
after  September  30,  2000 and up  through  April  30,  2003 at  which  time it
automatically converts to Common Stock. The Series F Convertible Preferred Stock
has a variable rate dividend averaging 8.15% over the term of the security.  The
Company  reserved  the right to redeem  all the Series F  Convertible  Preferred
Stock on or before  September  30,  2000 by  payment  of $2.3  million  plus any
accrued dividends.

         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 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 is  convertible  into Common  Stock at the
market price up through December 31, 2001.

         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 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 by the previous
5-day  average  of the  closing  price of the  Company's  common  stock  and was
converted into 1,041,667 shares. The remaining  principal balance of $250,000 is
outstanding as of November 14, 2002.

         Effective  October 29, 2002, the Company  issued a two-year  warrant to
purchase  1,000,000 shares of its common stock at an exercise price of $0.05 per
share (the closing price of our common stock on the American  Stock  Exchange on
such date) to SB Enterprises, the holder of the Brewer Note, in consideration of
such person's  extension of the due date of such loans from December 31, 2001 to
January 1, 2004.

         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  15% of the Common Stock,  transferred to the investors a total of
1,000,000  shares of common  stock.  All  holders  of the Weiss  Group Note have
granted  payment  extensions  until May 31, 2002.  As of November 14, 2002,  the
Company has not been notified of the holders' intent to declare a default on the
Weiss Group Note.

                                       15
<PAGE>

         Effective  April 5, 2001,  the  Company  issued  warrants  to  purchase
500,000  shares of its common stock at an exercise price of $0.22 per share (the
closing price of our common stock on the American  Stock  Exchange on such date)
to all  holders  of the  Weiss  Group  Note in  consideration  of  such  persons
extension of the due date of such loans from February 12, 2001 to June 30, 2001.

         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 American  Stock  Exchange on such date)
to all  holders  of the  Weiss  Group  Note in  consideration  of  such  persons
extension of the due date of such loans from June 30, 2001 to May 31, 2002.

         On May 23, 2001, a private investor purchased $250,000 of the Company's
common  stock at the market  price.  The  Company  issued the  private  investor
1,923,077  shares  of common  stock of the  Company  as a result  of the  equity
purchase.  In connection with the purchase of the shares of the Company's common
stock,  the  Company  issued the private  investor a 2-year  warrant for 500,000
shares of the Company's common stock at an exercise price of $0.22 per share.

         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 333,333 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  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.  As of November 14, 2002,  the Company has not been notified of
the holders' intent to declare a default on the Milford/Shaar Bridge Loan Notes.

         The  Company had an  irrevocable  obligation  under its stock  purchase
agreement  (the  "Agreement")   between  the  Company  and  Dispute   Resolution
Management,  Inc. ("DRM") to repurchase from the former  shareholders of DRM, by
May 16, 2002,  that number of 9.5 million  shares of the Company's  common stock
(at a per share price equal to the greater of $1.50 or the closing  price of our
common  stock 30 days prior to  purchase)  as shall be  necessary to provide the
holders of such shares with a total of $14.5  million.  The original  repurchase
obligation  deadline of August 30, 2001,  subsequently  extended through May 16,
2002 by a series of  extensions  (initially  extended  to  September  29,  2001,
further  extended to October 29, 2001,  further extended to January 16, 2002 and
was  subsequently  extended  until May 16,  2002).  As partial  security for the
payment of such  obligation,  all of the shares of DRM common stock owned by the
Company had been  pledged to Messrs.  William J.  Russell and Tamie P.  Speciale
(the  "Pledgees"),  the former sole stockholders of DRM under a Pledge Agreement
(the "Stock  Pledge").  The Company was unable to make the $14.5 million payment
to DRM.

         On May 16, 2002, a Notice of Default and Right to Pursue  Remedies (the
"Notice") was issued to the Company by the Pledgees claiming that the Company is
in default under the Agreement  and the Stock  Pledge.  As of May 16, 2002,  the
Company no longer owns an 81% interest in DRM. The  Pledgees  foreclosed  on the
DRM stock;  which resulted in the Company losing its entire equity  ownership in
the DRM  subsidiary.  The  Company  recorded  a loss on its  disposal  of DRM of
$4,134,000.

         On August 19,  2002,  the Company and  Dispute  Resolution  Management,
Inc.,  ("DRM")  entered  into  a  settlement   agreement  (the  "DRM  Settlement

                                       16
<PAGE>

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 will receive an additional 1,187,500 shares of its common stock from
DRM and its shareholders.

         Additionally,  the Company  issued 800,000 shares of Series H Preferred
stock (the "Series H Preferred"), par value $0.001 per share, each such share of
Series H  Preferred  having  a stated  value of  $1.00  per  share,  to  Dispute
Resolution Management, Inc. ("DRM"), William J. Russell and Tamie P. Speciale as
part of the DRM Settlement  Agreement as of September 30, 2002 for  satisfaction
of the  remaining  liabilities  relating to the purchase and working  capital of
DRM. The Series H Preferred  shall have the following  rights,  privileges,  and
limitations:

         (a)  The conversion feature shall be exercisable on June 30, 2003.

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

         (c)  The conversion price of the Series H Preferred 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.

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

         (f)  The Series H Preferred shall not be transferable.

         The Company  currently  requires  additional  cash to sustain  existing
operations and meet current  obligations  (including  those described above) and
the  Company's  ongoing  capital  requirements.  The Company's  current  monthly
operating  expenses  exceed its cash  revenues by  approximately  $100,000.  The
continuation of the Company's operations is dependent in the short term upon its
ability  to obtain  additional  financing  and,  in the long term,  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.

         The Company's auditor's opinion on our fiscal 2001 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  of  approximately
$39,000,000.  The amount of net operating loss  carryforward that can be used in

                                       17
<PAGE>

any one year will be limited by the  applicable  tax laws which are in effect at
the time such carryforward can be utilized.  A full valuation allowance has been
established to offset any benefit from the net operating loss carryforwards.  It
cannot be  determined  when or if the  Company  will be able to utilize  the net
operating losses.


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.  Further,  the Company's  business is subject to a number of risks that
would affect any such forward-looking statements.  These risks and uncertainties
include,  but are not limited  to, the  Company's  ability to obtain  additional
financing  in the near future to sustain  existing  operations  and meet current
obligations; the ability of the Company to commercialize its technology; product
demand  and  industry  pricing;  the  ability of the  Company  to obtain  patent
protection for its  technology;  developments in  environmental  legislation and
regulation;  the ability of the company to obtain future  financing on favorable
terms; and 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

                                       18
<PAGE>

              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.

         (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.


                                       19
<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.

         (b) Reports on Form 8-K.

         1.   The Company filed a Current  Report on Form 8-K, dated January 12,
              2002,   regarding  a  120-day  extension  to  its  Stock  Purchase
              Agreement with Dispute Resolution Management,  Inc., until May 16,
              2002.

         2.   The  Company  filed a Current  Report  on Form 8-K,  dated May 21,
              2002,  regarding the  termination of its Stock Purchase  Agreement
              and Notice of Default with Dispute Resolution Management, Inc.

         3.   The Company filed a Current  Report on Form 8-K,  dated August 22,
              2002, regarding the loss of its of its Analytical Services Support
              subcontract to provide  sampling and analytical work in support of
              the  closure of the  Department  of Energy's  (DOE's)  Rocky Flats
              site.

                                       20
<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: November 14, 2002             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)


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            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: November 14, 2002

                                           /s/ Shelby T. Brewer
                                           -------------------------------------
                                           Chairman and Chief Executive Officer


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            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: November 14, 2002
                                           /s/ James M. DeAngelis
                                           -------------------------------------
                                           Chief Financial Officer and Treasurer



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