SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                  FORM 10-QSB/A
                                (Amendment No. 1)

                   Quarterly Report Under Section 13 or 15(d)
                     Of the Securities Exchange Act of 1934

                       For Quarter Ended December 31, 2002

                       Commission File Number  33-16531-D

                      INTERNATIONAL AUTOMATED SYSTEMS, INC.
             (Exact name of registrant as specified in its charter)

              UTAH                                       87-0447580
           (State or other jurisdiction of              (IRS Employer
         incorporation or organization)             Identification No.)

                               326 North Sr. 198,
                               Salem, Utah  84653
                    (Address of principal executive offices)

       Registrant's telephone number including area code    (801) 423-8132
                                 Not Applicable
                  Former Address, if changed since last report


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 proceeding 12 months (or such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days. Yes   x        No


As of February 17, 2003 Registrant had 19,746,740 shares of common stock, no par
value per share, issued and outstanding after deducting shares held in the
corporate treasury.


<PAGE>


PART I
The  accompanying Form 10QSB as of December 31, 2002 and for the three  and  six
months  then  ended  have  been restated to reflect the  correction  of  errors.
Previously  issued financial statements which were included in  a  Form  10-QSB,
filed  February  18,  2003 disclosed $78,086 as capital  contributions  with  no
additional shares being issued to the Company President.  This amount included a
$50,000  deposit  from  a  related party for the  purchase  of  equipment.   The
accompanying  condensed financial statements reflect the $50,000  as  a  deposit
from  related  parties and $28,086 as capital contributions with  no  additional
shares being issued.


<PAGE>


ITEM 1              FINANCIAL STATEMENTS

                      INTERNATIONAL AUTOMATED SYSTEMS, INC.
                          (A Development Stage Company)
                            CONDENSED BALANCE SHEETS
                                   (Unaudited)


<TABLE>
<CAPTION>


                                                              December 30,       June 30,
                                                                  2002             2002
-------------------------------------------------------------------------------------------
<S>                                                           <C>              <C>
                          ASSETS

Current Assets
 Cash                                                          $   14,656       $        -
 Net investment in direct financing leases -
  related party - current portion                                       -           39,478
-------------------------------------------------------------------------------------------
    Total Current Assets                                           14,656           39,478
-------------------------------------------------------------------------------------------

Property and Equipment
 Computer and electronic equipment                                 40,893           40,215
 Automobiles                                                       51,514           51,514
 Mobile office                                                     11,764           11,764
-------------------------------------------------------------------------------------------
    Total Property and Equipment                                  104,171          103,493
 Accumulated depreciation                                         (77,814)         (73,407)
-------------------------------------------------------------------------------------------

    Net Property and Equipment                                     26,357           30,086
-------------------------------------------------------------------------------------------

Other Assets - Patents, net of accumulated amortization
of $83,386 and $77,516, respectively                              175,910          181,780
-------------------------------------------------------------------------------------------

Total Assets                                                   $  216,923       $  251,344
===========================================================================================

</TABLE>


        See the accompanying notes to the condensed financial statements.



<PAGE>


                      INTERNATIONAL AUTOMATED SYSTEMS, INC.
                          (A Development Stage Company)
                      CONDENSED BALANCE SHEETS (CONTINUED)
                                   (Unaudited)


<TABLE>
<CAPTION>


                                                              December 30,       June 30,
                                                                  2002             2002
-------------------------------------------------------------------------------------------
<S>                                                           <C>              <C>

          LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities
 Funds drawn in excess of cash in bank                        $     5,469      $     5,084
 Accounts payable                                                 154,811          209,274
 Accrued  payroll and related expenses                            185,865          191,888
 Deposit from related party                                        50,000                -
 Notes payable-current portion                                      5,971            5,971
 Obligations under capital leases - current portion                29,969           39,478
-------------------------------------------------------------------------------------------
    Total Current Liabilities                                     432,085          451,695
-------------------------------------------------------------------------------------------

Long-Term Liabilities - Notes payable                              11,819           14,895
-------------------------------------------------------------------------------------------

Total Liabilities                                                 443,904          466,590
-------------------------------------------------------------------------------------------

Stockholders' Deficit
 Preferred stock, Class A, no par value, 4,400,000 shares
  authorized, 3,400,000 shares issued and outstanding             294,786          294,786
 Preferred stock, Class B, no par value, 600,000 shares
  authorized, 300,000 shares issued and outstanding                     -                -
 Common stock, no par value, 45,000,000 shares
  authorized, 19,746,740 and 17,749,334 issued and
  outstanding, respectively                                     9,053,395        8,388,137
 Deficit accumulated during the development stage              (9,575,162)      (8,898,169)
-------------------------------------------------------------------------------------------
    Total Stockholders' Deficit                                  (226,981)        (215,246)
-------------------------------------------------------------------------------------------

Total Liabilities and Stockholders' Deficit                   $  216,923       $   251,344
===========================================================================================

</TABLE>



        See the accompanying notes to the condensed financial statements.


<PAGE>

                      INTERNATIONAL AUTOMATED SYSTEMS, INC.
                          (A Development Stage Company)
                       CONDENSED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>


                                                                                                            For the Period
                                                                                                            From Inception
                                               For the Three Months Ended       For the Six Months Ended    (September 26,
                                                      December 31,                     December 31,          1986) Through
                                              ---------------------------      --------------------------     December 31,
                                                 2002            2001             2002            2001            2002
---------------------------------------------------------------------------------------------------------------------------
<S>                                          <C>             <C>              <C>             <C>             <C>
Revenue
 Sales                                        $        -      $         -      $        -      $        -      $   111,226
 Income from related party                             -                -               -               -           32,348
---------------------------------------------------------------------------------------------------------------------------
   Total Revenue                                       -                -               -               -          143,574

Cost of Sales
 Cost of sales                                         -                -               -               -           81,927
 Write down of carrying value of inventories           -                -               -               -          216,186
---------------------------------------------------------------------------------------------------------------------------
   Total Cost of Sales                                 -                -               -               -          298,113
---------------------------------------------------------------------------------------------------------------------------

Gross Loss                                             -                -               -               -         (154,539)

Operating Expenses
 General and administrative                      489,591          319,859         550,773         415,039        4,840,672
 Research and development expense                 58,682           51,642         115,475         108,098        4,059,889
 Amortization expense                              2,935            2,647           5,870           5,294           85,266
 Litigation settlement expense                         -                -               -               -          170,634
---------------------------------------------------------------------------------------------------------------------------
   Total Operating Expenses                      551,208          374,148         672,118         528,431        9,156,461
---------------------------------------------------------------------------------------------------------------------------

Operating Loss                                  (551,208)        (374,148)       (672,118)       (528,431)      (9,311,000)

Other Income and (Expenses)
 Loss on disposal of property and equipment            -                -               -               -          (17,359)
 Forfeiture of deposits                                -                -               -               -         (236,803)
 Interest income                                       -               41               -              57           22,444
 Interest expense                                 (3,771)            (997)         (4,875)         (1,344)         (32,444)
---------------------------------------------------------------------------------------------------------------------------
   Net Other Expense                              (3,771)            (956)         (4,875)         (1,287)        (264,162)
---------------------------------------------------------------------------------------------------------------------------

Net Loss                                      $ (554,979)     $  (375,104)     $ (676,993)     $ (529,718)     $(9,575,162)
===========================================================================================================================

Basic and Diluted Loss Per Share              $    (0.02)     $     (0.02)     $    (0.03)     $    (0.03)
==========================================================================================================

Common and Preferred Shares Used In
 Per Share Calculation                        23,136,410       20,821,708      22,489,497      20,723,253
==========================================================================================================

</TABLE>


        See the accompanying notes to the condensed financial statements.


<PAGE>

                      INTERNATIONAL AUTOMATED SYSTEMS, INC.
                          (A Development Stage Company)
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                          For the Period
                                                                                          From Inception
                                                          For the Six Months Ended        (September 26,
                                                                December 31,               1986) Through
                                                       ------------------------------      December 31,
                                                          2002               2001               2002
-------------------------------------------------------------------------------------------------------
<S>                                                   <C>               <C>               <C>
Cash Flows From Operating Activities
 Net loss                                              $  (676,993)      $  (529,718)      $(9,575,162)
 Adjustments to reconcile net income (loss) to net
  cash provided (used) by operating activities
  Amortization                                               5,870             5,294            85,266
  Depreciation                                               4,407             4,600           209,757
  Stock based compensation                                 422,903           219,259         2,219,907
  Forfeiture of deposits                                         -                 -           236,803
  Loss on disposal of fixed assets                               -                 -            17,359
  Patents abandoned                                              -                 -           227,308
 Changes in current assets and liabilities:
  Accounts payable                                         (54,463)          (66,976)          154,811
  Accrued liabilities                                       (6,023)             (244)          185,864
  Depoits from related party                                50,000                 -            50,000
-------------------------------------------------------------------------------------------------------
    Net Cash From Operating Activities                    (254,299)         (367,785)       (6,188,087)

Cash Flows From Investing Activities
 Purchases of property and equipment                          (678)           (1,435)         (240,635)
 Purchase of rights to technology                                -                 -          (486,603)
 Organization costs                                              -                 -            (1,880)
 Net cash advanced to related party                         (9,792)         (171,683)       (1,640,720)
 Proceeds from capital lease receivable                          -                 -            44,220
 Repayment of cash loaned to related party                       -                 -            53,254
-------------------------------------------------------------------------------------------------------
    Net Cash From Investing Activities                     (10,470)         (173,118)       (2,272,364)

Cash Flows From Financing Activities
 Proceeds from issuance of common stock                    262,607           139,287         2,258,536
 Cash from controlling shareholder                          28,086           417,250         6,258,963
 Payments for treasury stock                                     -                 -            (3,325)
 Payments for stock offering costs                               -                 -           (56,509)
 Decrease (increase) in bank overdraft                         385           (13,152)            5,469
 Proceeds from net borrowings from related party                 -                 -            78,101
 Proceeds from notes payable                                     -                 -            29,857
 Payments on note payable and obligations under
  capital lease                                            (11,653)           (2,482)          (95,985)
-------------------------------------------------------------------------------------------------------
    Net Cash From Financing Activities                     279,425           540,903         8,475,107
-------------------------------------------------------------------------------------------------------

Net Increase In Cash and Cash Equivalents                   14,656                 -            14,656

Cash and Cash Equivalents at Beginning of Period                 -                 -                 -

Cash and Cash Equivalents at End of Period             $    14,656         $       -       $    14,656
-------------------------------------------------------------------------------------------------------

Supplemental Cash Flow Information
 Cash paid for interest                                $     4,875         $   1,344
=======================================================================================================

Non-Cash Investing and Financing Activities
 Payment by U-Check of IAS lease                       $       932         $       -
 Impairment of U-Check receivable treated as a
  distribution to the controlling shareholder               48,338                 -


</TABLE>

       See the accompanying notes to the condensed financial statements.


<PAGE>

                      INTERNATIONAL AUTOMATED SYSTEMS, INC.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS


NOTE 1 - INTERIM FINANCIAL STATEMENTS

     The  accompanying financial statements have been prepared by  the  Company,
     and are unaudited. In the opinion of management, the accompanying unaudited
     financial   statements   contain  all  necessary   adjustments   for   fair
     presentation,  consisting  of  normal  recurring  adjustments   except   as
     disclosed herein.

     The accompanying unaudited interim financial statements have been condensed
     pursuant  to  the  rules  and regulations of the  Securities  and  Exchange
     Commission;  therefore,  certain  information  and  disclosures   generally
     included  in  financial statements have been condensed  or  omitted.  These
     financial statements should be read in connection with the Company's annual
     financial statements included in the Company's annual report on Form 10-KSB
     as  of  June 30, 2002. The financial position and results of operations  of
     the interim periods presented are not necessarily indicative of the results
     to be expected for the year ended June 30, 2003.

NOTE 2 - RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

     The accompanying condensed financial statements as of December 31, 2002 and
     for  the three and six months then ended have been restated to reflect  the
     correction  of errors.  Previously issued financial statements  which  were
     included  in  a Form 10-QSB, filed February 18, 2003 disclosed  $78,086  as
     capital contributions with no additional shares being issued to the Company
     President.  This amount included a $50,000 deposit from a related party for
     the purchase of equipment.  The accompanying condensed financial statements
     reflect the $50,000 as advances from related parties and $28,086 as capital
     contributions with no additional shares being issued.

     During  October 2002, the controlling shareholder and certain officers  and
     directors  of the Company ("controlling members") entered into an agreement
     with an individual ("minority member") to form a separate limited liability
     company  ("LLC") for the development and management of a restaurant complex
     that will use the automated self-service restaurant technology developed by
     the  Company.  The controlling members agreed to contribute a business plan
     utilizing  this  technology  for  a  51%  interest  in  the  entities.   In
     consideration for a 49% interest in the LLC, the minority member agreed  to
     loan the respective LLC $150,000.

     As  of December 31, 2002, this LLC advanced the Company $50,000 towards the
     purchase  of the automated self-service restaurant technology and equipment
     and has committed to pay an additional $100,000.  The final payment will be
     made  at  such  time as the equipment and technology are installed  in  the
     restaurant and the restaurant is opened for business.

     This  LLC is considered a related party due to common ownership and  common
     control.   Accordingly, the funds advanced to the Company will be  recorded


<PAGE>

     as  "deposits from related parties" and the purchase of the equipment  will
     be  recorded  as  inventory at the Company's cost.  At  such  time  as  the
     equipment  and  technology  are installed, the  inventory  will  be  netted
     against  the advances and any funds advanced in excess of these costs  will
     be considered contributed capital.

     Should  the LLC be unable to repay the note to the minority member,  Neldon
     Johnson,  one  of  the  controlling members  of  the  LLC  and  controlling
     shareholder of the Company, has agreed to make the payments.  Historically,
     Mr.  Johnson  has  contributed capital to the Company  with  no  additional
     shares  being  issued  to  cover  the  Company's  operating  costs.   These
     additional  commitments by Mr. Johnson could limit the amount of  funds  he
     could contribute to the company in the future.

NOTE 3 - RELATED PARTY TRANSACTIONS

     For  the  six  months ended December 31, 2002, the controlling shareholder,
     Neldon  Johnson,  contributed  $28,086 as additional  paid-in  capital.  No
     additional preferred or common stock was issued to Mr. Johnson in  relation
     to these contributions.

     For  the  six months ended December 31, 2002, the Company advanced U-Check,
     Inc.  (U-Check), a corporation controlled by Mr. Johnson,  $9,792.   As  of
     December  31,  2002,  the Company had an outstanding  lease  receivable  of
     $38,546  and  cash advances of $9,793 due from U-Check.   Due  to  economic
     conditions  and financial difficulties experienced by U-Check  the  Company
     determined that the lease receivable was impaired.  All amounts  have  been
     written off as a capital distribution to Mr. Johnson.

NOTE 4 - CONTINGENCIES AND COMMITMENTS

     Legal  Contingencies - On September 23, 1998, the Company was  notified  by
     the  U.S. Securities and Exchange Commission (SEC) of formal action against
     the  Company,  its  president,  and members  of  his  family  for  possible
     securities   violations.   The   action   stems   from   alleged   material
     misrepresentations by the Company and the Company's employees regarding new
     technology developed by the Company. The SEC is seeking disgorgement of the
     proceeds  from the sale of stock by the Company's principals that  occurred
     between June 1995 and June 1996.

     At  the  end of July 2001, the president of the Company, on behalf  of  the
     Company, approved a settlement recommendation to be presented to the SEC as
     a full compromise of the matter.

     During  December 2002, the Company received notification from the SEC  that
     the  proposed  settlement  agreement had been  rejected.   The  Company  is
     currently  unaware  of how the SEC intends to pursue this  action  and  any
     possible liability resulting from this action is undeterminable.

     The  Company's continued existence depends heavily on equity financing  and
     cash   contributions   from  the  controlling  shareholder.    These   cash
     contributions  result  from  the controlling shareholder  selling  personal
     shares  of  common stock on the open market.  Should this formal action  be
     settled  in  a  manner unfavorable to the Company, the SEC  could  prohibit



<PAGE>


     future  equity  transactions and cash contributions  from  the  controlling
     shareholder.

     During  the year ended June 30, 2002, the Company was notified of  a  claim
     for fees allegedly owed under a written agreement between the Company and a
     public  relations firm for consulting services.  The claim seeks to recover
     from  the Company $60,700 for services rendered.  The Company disputes  the
     claim  based  on  an alleged breach of the agreement due to  a  failure  to
     perform  its  service  obligations;  additionally,  the  Company  had  made
     payments  which  it had not been given credit for.  During the  six  months
     ended  December  31,  2002,  the Company made  payments  totaling  $10,100,
     leaving an accrued balance of $24,536.

     Payroll  Tax Contingency - During the year ended June 30, 2001, the Company
     did  not  pay payroll taxes for several months, and has unpaid federal  and
     state  withholding tax liabilities as of December 31, 2002. These balances,
     including  potential  penalties and interest, have been  reflected  in  the
     financial statements.

NOTE 5 - BUSINESS CONDITION

     The accompanying financial statements have been prepared on a going concern
     basis, which contemplates the realization of assets and the satisfaction of
     liabilities  in  the  normal course of business. The  Company  has  had  no
     revenue  and has incurred net losses of $676,993 and $529,718 for the  six-
     month  periods  ended  December 31, 2002 and  2001,  respectively.   As  of
     December 31, 2002, the Company's losses accumulated from inception  totaled
     $9,575,162. These factors, among others, indicate that the Company  may  be
     unable to continue as a going concern for a reasonable period of time.  The
     financial  statements  do  not  include any  adjustments  relating  to  the
     recoverability and classification of recorded asset amounts or  the  amount
     and  classification  of  liabilities that might  be  necessary  should  the
     Company be unable to continue as a going concern. The Company's ability  to
     continue  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
     successful operations. Management is in the process of negotiating  various
     sales  agreements and is hopeful these sales will generate sufficient  cash
     flow for the Company to continue as a going concern.

NOTE 6 - EQUITY

     Common  Stock  -  During the year ended June 30, 2002, the  Company  placed
     5,000,000  shares of common stock in escrow with an attorney  to  be  sold.
     Proceeds  of  the  stock  sales from the escrow account  are  placed  in  a
     separate  escrow  account to be used at the Company's  and  the  attorney's
     discretion.  At December 31, 2002, there was a balance of 4,583,000  shares
     left  in  escrow.  During the six months ended December 31,  2002,  417,000
     shares  were sold for proceeds of $150,607 at prices ranging from $0.26  to
     $0.61  per share. At December 31, 2002 there was $14,656 remaining  in  the
     escrow account.



<PAGE>


     During  the six months ended December 31, 2002, the Company issued  466,600
     shares  of restricted common stock to individuals in exchange for  $112,000
     in cash, at prices ranging from $0.20 to $0.35 per share.

     During  the  six months ended December 31, 2002, the Company issued  68,806
     shares  of restricted common stock to individuals in exchange for  services
     performed. The shares were valued at $24,653, at prices ranging from  $0.35
     to $0.50 per share.

     In  October  2002,  the  Company entered into  consulting  agreements  with
     individuals to provide planning and development services.  The agreement is
     to  be  in  effect for 180 days.  As compensation for these  services,  the
     Company issued 865,000 shares of common stock valued at $0.45 per share  or
     $389,250.  The Company also issued 20,000 common shares for legal  services
     valued at $9,000 or $0.45 per share. In connection with these transactions,
     the  Company  issued an S-8 registration statement to register the  885,000
     shares.

     During  May  and June 2002, the Company issued 400,000 shares of restricted
     common  stock to an individual in exchange for $100,000 in cash,  or  $0.25
     per  share.  As part of this transaction, the Company guaranteed that:   i)
     if  the  stock is not trading at $2.00 per share 75 days subsequent to  the
     agreement date, the Company will issue an additional 80,000 shares, or  20%
     of  the  original issuance; ii)  if the stock is not trading at  $2.00  per
     share 150 days subsequent to the agreement date, the Company will issue  an
     additional 80,000 shares, or 20% of the original issuance and; iii)  if the
     stock  is not trading at $1.00 per share 1 year subsequent to the agreement
     date, the Company will issue an additional 100,000 shares.  As of March 31,
     2003,  the  Company's  stock was not trading at $2.00  per  share  and  the
     Company  has agreed to issue an additional 160,000 shares of common  stock.
     These shares will be issued with no additional value given.

     As  discussed in Note 3, the controlling shareholder contributed a  net  of
     $28,086  to  additional paid-in capital and took a capital distribution  of
     $48,338 as a result of the impairment of receivables from his wholly  owned
     company, U-check.



<PAGE>


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

Forward Looking Statements

This report contains forward looking statements regarding the Company's plans,
objectives, expectations and intentions. All forward looking statements are
subject to risks and uncertainties that could cause the Company's actual results
and experience to differ materially from such projections.  Such risks include
delays in product development, the development of marketing and distribution
channels, and market acceptance of its products. Other risks may be beyond the
control of the Company.

Liquidity and Capital Resources

As of December 30, 2002, total current assets were $14,656 and total assets
were $216,923 compared to total current assets $39,478 and total assets $251,344
as of June 30, 2002.

As of December 30, 2002, Registrant had total liabilities of $443,904 and
shareholders' deficit of $226,981 as compared to total liabilities of $466,590
and shareholders' deficit of $215,246 as of June 30, 2002. The deficit
accumulated during the development stage was $9,575,162 as of December 30, 2002,
compared to $8,898,169 as of June 30, 2002.  At this time the Company is
not generating sufficient funds to sustain its operations.  The Company's
operations involve significant risks regarding the development of technology and
products that may not be commercially acceptable and profitable.  As of
December 30, 2002, the ratio of current assets to current liabilities was
approximately 0.03 to one.

The Registrant's contractual obligations include a note payable to a financing
company that is due in November 2005, and capital lease obligations for various
equipment. The lease obligations expire in May 2003. The following is a schedule
by year of the payments on these contractual obligations.


                              Payments Due by Period
                                          Less
  Contractual                            than 1        1 - 3
  Obligations               Total         year         years
-----------------         --------      --------      --------
Long-term debt            $ 17,790      $  5,971      $ 11,819
Capital lease
  obligations               29,969        29,969            --
                          --------      --------      --------
Total Contractual
  Cash Obligations        $ 47,759      $ 35,940      $ 11,819
                          ========      ========      ========

Results of Operations

For the quarter ended December 30, 2002, Registrant had total revenues of
$0 compared to total revenues of $0 for the same period a year
earlier.  For the quarter ended December 30, 2002, registrant had total
operating expenses of $551,208 compared to expenses of $374,148 during the same
quarter of a year earlier.  As of December 30, 2002, cost of sales was $0 as
compared to cost of sales of $0 during the same quarter a year earlier.  For the
quarter Registrant had a net loss of $554,979 compared to a net loss of $375,104
for the same quarter a year earlier. For the quarter, the net loss per share was


<PAGE>


$0.02 compared to $0.02 for the same quarter a year earlier.  For the quarter
ended December 30, 2002, general and administrative expenses were $489,590
compared to $319,859 and research development expenses were $58,683 compared to
$51,642 a year earlier. The increase in net loss is primarily due to the 865,000
shares issued as part of consulting agreements entered into by the Company.

Future Business

The Company's ability to continue its activities is dependent on it receiving
funds either as loans, advances, or sales of equity. Previously, the major
shareholder has provided funds, but there is no formal agreement between the
Company and the majority shareholder to continue providing funds in the future.
If the Company had to seek funds from another source, there is no assurance that
funds would be available at all or on terms acceptable to the Company.

Item 3: Controls and Procedures

(a)       The Company maintains controls and procedures designed to ensure that
information required to be disclosed in the reports that the Company files or
submits under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in the rules and forms
of the Securities and Exchange Commission. Based upon their evaluation of those
controls and procedures performed within 90 days of the filing date of this
report, the chief executive officer and the principal financial officer of the
Company concluded that the Company's disclosure controls and procedures were
adequate.

(b)  Changes in internal controls. The Company made no significant changes in
its internal controls or in other factors that could significantly affect these
controls subsequent to the date of the evaluation of those controls by the chief
executive officer and principal financial officer.

Part II - OTHER INFORMATION

Item 1.  Legal Proceedings

On September 23, 1998, the Company was notified by the U.S. Securities and
Exchange Commission (SEC) of formal action against the Company, its president,
and members of his family for possible securities violations. The action stems
from alleged material misrepresentations by the Company and the Company's
employees regarding new technology developed by the Company. The SEC is seeking
disgorgement of the proceeds from the sale of stock by the Company's principals
that occurred between June 1995 and June 1996.

At the end of July 2001, the president of the Company, on behalf of the Company,
approved a settlement recommendation to be presented to the SEC as a full
compromise of the matter.

During December 2002, the Company received notification that the SEC had
rejected the settlement agreement offered by the Company's President.  The
Company is currently unaware of how the SEC intends to pursue this action and
any possible liability resulting from this action is undeterminable.

The Company's continued existence depends heavily on equity financing and cash
contributions from the controlling shareholder.  These cash contributions result
from the controlling shareholder selling personal shares of common stock on the
open market.  Should this formal action be settled in a manner unfavorable to


<PAGE>


the Company, the SEC could prohibit future equity transactions and cash
contributions from the controlling shareholder.

During the year ended June 30, 2002, the Company was notified of a claim for
fees allegedly owed under a written agreement between the Company and a public
relations firm for consulting services. The claim seeks to recover from the
Company $60,700 for services rendered.  The Company disputes the claim based on
an alleged breach of the agreement due to a failure to perform its service
obligations; additionally, the Company had made payments which it had not been
given credit for. The Company has paid $10,100 toward the settlement of this
claim.

The Company has filed a civil action complaint in the United States District
Court for the District of Utah Central Division against Optimal Robotics Corp.
and PSC, Inc. alleging patent infringement arising under the patent laws of the
United States, and more specifically, under Title 35, U.S.C. Sections 271, 281,
283, 284 and 285. Discovery is presently in progress.

The Company has filed a civil action complaint in the United States District
Court for the district of Utah Central division against The Kroger
Company alleging patent infringement arising under the patent infringement
arising under the patent laws of the United States, and more specifically, under
Title 35, U.S.C., sections 271, 281, 283, 284, and 285.

Item 2.  Changes in Securities

In July 2002, the Company issued 150,000 shares of restricted common stock to an
individual in exchange for $30,000. The shares were valued at $0.20 per share.

In July 2002, the Company issued 3,806 shares of restricted common stock to an
individual in exchange for services performed through July 2002. The shares were
valued at $1,903 or $0.50 per share.

In August 2002, the Company issued 128,000 shares of restricted common stock to
an individual in exchange for $32,000. The shares were valued at $0.25 per
share.

In August 2002, the Company issued 160,000 shares of restricted common stock to
an individual in exchange for $40,000. The shares were valued at $0.25 per
share.

In August 2002, the Company issued 28,600 shares of restricted common stock to
an individual in exchange for $10,000. The shares were valued at $0.35 per
share.

During August and October 2002, the Company issued 160,000 shares of restricted
common stock to an individual to comply with a price guaranty.  The shares had
no value.

During October 2002, the Company filed an S-8 Registration Statement for the
issuance of 885,000 common shares for $398,250 or $0.45 per share. Of the
885,000 shares, 865,000 were pursuant to a consulting agreement and the
remaining 20,000 were for legal services.

During November 2002, the Company issued 65,000 shares of restricted common
stock to individuals in exchange for services performed.  The shares were valued
at $22,750 or $0.35 per share.



<PAGE>


During the six months ended December 31, 2002, the Company issued 417,000 shares
of restricted common stock to individuals in exchange for $150,607.

Item 3.  Defaults Upon Senior Securities.

     None.

Item 4.  Matters Submitted to a Vote of the Company's Shareholders.

     None.

Item 5.  Other Information.

     None.

Item 6.  Exhibits and Reports on Form 8-K.

     None.


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: June 6, 2003

                               International Automated Systems, Inc.

                               By:  /s/ Neldon Johnson
                               -------------------------
                               Neldon Johnson
                               President and Chief Executive Officer



<PAGE>

                                  Attachment A

                      Form of Certification for Form 10-QSB

                                 CERTIFICATIONS*

I, Neldon Johnson, certify that:

     1.   I have reviewed this quarterly report on Form 10-QSB of International
          Automated Systems, Inc.;

     2.   Based on my knowledge, this quarterly report does not contain any
          untrue statement of 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,
          base 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:  June 6, 2003

/s/  Neldon Johnson
_____________________________________
Neldon Johnson
President and Chief Executive Officer


<PAGE>

                                  Attachment A

                      Form of Certification for Form 10-QSB

                                 CERTIFICATIONS*

I, LaGrand Johnson, certify that:

     1.   I have reviewed this quarterly report on Form 10-QSB of International
          Automated Systems, Inc.;

     2.   Based on my knowledge, this quarterly report does not contain any
          untrue statement of 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,
          base 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:  June 6, 2003

 /s/  LaGrand Johnson
_____________________________________
LaGrand Johnson
Chief Financial Officer and Director