UNITED STATES
                       SECURITIES AND EXCHANGE COMMMISSION
                             WASHINGTON, D.C. 20549
                             ----------------------
                                  FORM 10-QSB/A


/X/      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended  SEPTEMBER 30, 2001

/ /      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the transition period from  ________________ to ________________

                         Commission File Number: 0-18450
               ---------------------------------------------------

                               COLOR IMAGING, INC.
                        --------------------------------
             (Exact name of registrant as specified in its charter)

         DELAWARE                                        13-3453420
   ------------------                                ----------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

4350 PEACHTREE INDUSTRIAL BOULEVARD, SUITE 100
           NORCROSS, GEORGIA                                  30071
--------------------------------------------                 ---------
(Address of principal executive offices)                    (Zip code)

                                 (770) 840-1090
                              ---------------------
              (Registrant's telephone number, including area code)

Check whether the registrant  (1) has filed all reports  required to be filed by
Section 13 or 15(d) of the Securities  Exchange Act of 1934 during the preceding
12 months (or for such shorter  period that the  registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes /X/ No / /

As of October 26, 2001, there were 8,106,400 shares of Common Stock outstanding.



<PAGE>


                                EXPLANATORY NOTE

The  accompanying  financial  statements  for the  three and nine  months  ended
September 30, 2001, have been restated to reflect the business  combination with
Image (see Note 2) under the  purchase  method of  accounting  as opposed to the
pooling of interests method, as previously reported.


                               COLOR IMAGING, INC.
                        QUARTERLY REPORT ON FORM 10-QSB/A
                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2001

                                      INDEX


PART I: FINANCIAL INFORMATION

Item 1. Financial Statements

          Consolidated Balance Sheets
           September 30, 2001 (Unaudited) and December 31, 2000...............3

          Consolidated Statements of Operations (Unaudited)
           for the Three Months and Nine Months ended September 30, 2001
            and 2000..........................................................4

          Consolidated Statements of Cash Flows (Unaudited)
           for the Nine Months ended September 30, 2001
            and 2000..........................................................5

          Notes to Consolidated Financial Statements..........................6

Item 2. Management's Discussion and Analysis of Financial Condition
         and Results of Operations............................................9


Signatures...................................................................15


<PAGE>

PART I: FINANCIAL INFORMATION
ITEM 1 -FINANCIAL STATEMENTS

                      COLOR IMAGING, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>
<S>                                                     <C>                               <C>
                                                             30-Sept-01                       31-Dec-00
                                                             (Unaudited)                      (Audited)
                                                             As restated                     As restated
CURRENT ASSETS                                          ----------------------            -------------------
    Cash                                                 $            645,746              $         339,348
    Accounts receivable                                             3,928,136                      3,562,120
    Refundable income taxes                                            19,995                         19,995
    Inventory                                                       6,663,141                      5,181,248
    Deferred taxes                                                     52,663                        155,526
    Related party portion of bonds - current                           79,596                         76,032
    Other current assets                                              371,777                        381,148
                                                        ----------------------            -------------------
          TOTAL CURRENT ASSETS                                     11,761,054                      9,715,417
                                                        ----------------------            -------------------

FIXED ASSETS
    Furniture & fixtures                                              132,310                        129,955
    R&D equipment                                                     447,645                        412,325
    Machinery & equipment                                           7,453,770                      6,865,206
    Leasehold improvements                                          1,277,251                      1,252,021
    Accumulated depreciation                                         (849,560)                      (403,077)
                                                        ----------------------            -------------------
          TOTAL FIXED ASSETS, NET                                   8,461,416                      8,256,430
                                                        ----------------------            -------------------

OTHER ASSETS
    Patent/intellectual property                                        5,000                          5,000
    Deferred income tax                                               474,111                        467,984
    Related party portion of bonds                                    818,500                        898,096
    Other assets                                                      425,783                        269,626
                                                        ----------------------            -------------------
          OTHER ASSETS                                              1,723,394                      1,640,706
                                                        ----------------------            -------------------
                                                         $         21,945,864              $      19,612,553
                                                        ======================            ===================


CURRENT LIABILITIES
    Revolving credit lines                               $          1,232,194              $       1,399,000
    Accounts payable                                                8,380,652                      6,665,322
    Current portion notes payable                                     410,243                        343,408
    Current portion bonds payable                                     335,000                        320,000
    Other current liabilities                                         344,936                        370,765
                                                        ----------------------            -------------------
           TOTAL CURRENT LIABILITIES                               10,703,025                      9,098,495
                                                        ----------------------            -------------------

LONG TERM LIABILITIES
    Notes payable                                                   1,419,623                      1,698,058
    Bonds payable                                                   3,445,000                      3,780,000
                                                        ----------------------            -------------------
          LONG TERM LIABILITIES                                     4,864,623                      5,478,058
                                                        ----------------------            -------------------
          TOTAL LIABILITIES                                        15,567,648                     14,576,553
                                                        ----------------------            -------------------


STOCKHOLDERS' EQUITY
    Common stock, $.01 par value, authorized
      20,000,000 shares;  8,106,400 and
      7,490,848 shares issued on September 30,
      2001 and December 31, 2000, respectively.                        81,064                         74,909
    Additional paid-in capital                                      8,380,015                      7,229,293
    Accumulated deficit                                            (2,082,863)                    (2,268,202)
                                                        ----------------------            -------------------
                                                                    6,378,216                      5,036,000
                                                        ----------------------            -------------------
                                                         $         21,945,864              $      19,612,553
                                                        ======================            ===================

</TABLE>
                 See Notes to Consolidated Financial Statements


                                       3
<PAGE>


                               COLOR IMAGING, INC. AND SUBSIDIARIES
                                UNAUDITED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
<S>                             <C>               <C>                <C>             <C>
                                    THREE MONTH PERIODS ENDED             NINE MONTH PERIODS ENDED
                                  30-Sep-01         30-Sep-00           30-Sep-01        30-Sep-00
                                 As restated       As restated         As restated      As restated
                                -------------     -------------      --------------  ---------------

SALES                           $  9,867,704      $  6,006,335       $  23,494,174   $    6,446,388

C0ST OF SALES                      8,550,785         5,115,834          20,133,737        5,385,398
                                -------------     -------------      --------------  ---------------
      GROSS PROFIT                 1,316,919           890,501           3,360,437        1,060,990
                                -------------     -------------      --------------  ---------------

OPERATING EXPENSES
    Administrative                   418,940           382,553           1,262,897          532,963
    Research & development           219,627           230,724             621,467          345,365
    Sales & marketing                375,485           197,630             882,878          197,630
                                -------------     -------------      --------------  ---------------
                                   1,014,052           810,907           2,767,242        1,075,958
                                -------------     -------------      --------------  ---------------

     OPERATING PROFIT (LOSS)         302,867            79,594             593,195          (14,968)
                                -------------     -------------      --------------  ---------------

OTHER INCOME AND (EXPENSE)
    Other income (expense)            15,230           (68,006)             26,216          (67,200)
    Financing expenses               (92,532)         (123,486)           (326,466)        (132,852)
    Non-recurring moving
      expense                             --           (10,360)             (9,570)         (10,360)
                                -------------     -------------      --------------  ---------------
                                     (77,302)         (201,852)           (309,820)        (210,412)
                                -------------     -------------      --------------  ---------------


INCOME (LOSS) BEFORE TAXES           225,565          (122,258)            283,375         (225,380)

PROVISION (BENEFIT) FOR
  INCOME TAXES                        79,726           (67,000)             98,036         (108,000)
                                -------------     -------------      --------------  ---------------
NET INCOME (LOSS)               $    145,839      $    (55,258)      $     185,339   $     (117,380)
                                =============     =============      ==============  ===============

  INCOME (LOSS)
    PER COMMON SHARE

    Basic                       $        .02      $       (.01)      $         .02   $         (.03)
    Diluted                     $        .02      $       (.01)      $         .02   $         (.03)

  WEIGHTED AVERAGE
    SHARES OUTSTANDING

    Basic                          8,070,136         7,007,604           7,774,391        4,000,000
    Assumed conversion               203,281               --*             166,204              --*
                                -------------     -------------      --------------  ---------------
                                   8,273,417         7,007,604           7,940,595        4,000,000
                                -------------     -------------      --------------  ---------------
</TABLE>

  * Antidilutive


                 See Notes to Consolidated Financial Statements

                                       4
<PAGE>

                               COLOR IMAGING, INC. AND SUBSIDIARIES
                                 UNAUDITED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
<S>                                                         <C>                     <C>
                                                              NINE MONTHS             NINE MONTHS
                                                                 ENDED                    ENDED
                                                               30-Sep-01                30-Sep-00
                                                              As restated              As restated
                                                            -----------------       ------------------
Cash flows from operating activities:
  Net income (loss)                                         $        185,339        $        (117,380)
  Adjustments to reconcile net income (loss)
    to net cash provided by operating activities:
      Depreciation and amortization                                  446,483                  154,182
      Deferred income taxes                                           96,736                 (108,000)
    Decrease (increase) in:
      Accounts and other receivables                                (239,391)                (879,307)
      Inventories                                                 (1,481,893)                 344,411
      Prepaid and other assets                                       (45,095)                 (52,406)
      Cash surrender value of life insurance                         (21,743)                  (5,756)
      Deposits                                                            --                   86,200
    Increase (decrease) in:
      Accounts payable and accrued liabilities                     1,689,501                  598,603
      Income taxes payable                                                --                   13,760
                                                            -----------------       ------------------
        Net cash provided by
          operating activities                                       629,937                   34,307
                                                            -----------------       ------------------
Cash flows from investing activities:
  Capital expenditures                                              (651,469)                (737,359)
  Other assets                                                      (130,541)                  (5,000)
                                                            -----------------       ------------------
      Net cash (used in)
        investing activities                                        (782,010)                (742,359)
                                                            -----------------       ------------------
Cash flows from financing activities:
  Net (payments) under line of credit                               (166,806)                (330,866)
  Proceeds from sale of stock                                      1,156,877                       --
  Principal payments of long-term debt                              (531,600)                 (64,716)
                                                            -----------------       ------------------
      Net cash provided by (used in)
        financing activities                                         458,471                 (395,582)
                                                            -----------------       ------------------
      Net increase (decrease) in cash                                306,398               (1,103,634)
Cash at beginning of year                                            339,348                1,183,874
                                                            -----------------       ------------------
Cash at end of period                                       $        645,746        $          80,240
                                                            =================       ==================

</TABLE>


                 See Notes to Consolidated Financial Statements

                                       5
<PAGE>

                               COLOR IMAGING, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



NOTE 1. BASIS OF PRESENTATION

The accompanying  unaudited condensed financial statements have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information and with the  instructions to Form 10-Q and Article 10 of Regulation
S-X.  Accordingly,  they do not include  all of the  information  and  footnotes
required by generally  accepted  accounting  principles  for complete  financial
statements. In the opinion of management,  all adjustments (consisting of normal
recurring accruals and adjustments) considered necessary for a fair presentation
have been  included.  Operating  results  for the three  and nine  months  ended
September 30, 2001 (see Note 7 - Restatement) are not necessarily  indicative of
the results that may be expected for the year ended December 31, 2001.

NOTE 2. DESCRIPTION OF COMPANY

On May 16, 2000, Color Imaging, Inc., formerly known as Advatex Associates, Inc.
(Advatex),  Logical  Acquisition  Corp.  (LAC),  Color  Acquisition Corp. (CAC),
Logical Imaging Solutions,  Inc. (Logical) and Color Image, Inc. (Image) entered
into  a  Merger  Agreement  and  Plan  of  Reorganization,  as  amended  (Merger
Agreement),  pursuant to which LAC merged  with and into  Logical and CAC merged
with and into Image (the  Merger)  and  Logical  and Image  became  wholly-owned
subsidiaries  of Advatex.  Pursuant  to the Merger  Agreement,  stockholders  of
Logical and Image  exchanged  their  common  stock for shares of common stock of
Advatex. A reverse stock split of one share of common stock for 6.0779 shares of
common stock was  simultaneously  approved for the then existing  Advatex common
stock. Subsequently, the equity interests in Logical were converted by virtue of
the Logical Merger into  approximately  3,000,000 newly issued shares of Advatex
common stock,  on the basis of 1.84843  Advatex Common Shares for each one share
of common  stock of Logical.  The equity  interests  in Image were  converted by
virtue of the Image Merger into  approximately  3,000,000 newly issued shares of
Advatex common stock on the basis of 15 Advatex common shares for each one share
of common stock of Image.  The above  transactions  were consummated on June 28,
2000.

Prior to the  completion  of the above  referenced  transaction,  Advatex  was a
non-operating,  fully  reporting,  public shell, and both Logical and Image were
privately owned operating enterprises.  By the terms of the Merger Agreement and
Plan of Reorganization, the combination was contingent upon the agreement of all
of  the  enterprises,  and  it  was,  therefore  considered  a  single  business
combination.

Image and Logical each  received the same number of shares and both the board of
directors and executive officers of the Company were equally divided between the
managements  of Logical  and Image.  However,  since the  majority of the voting
stock was held by  directors  coming from Logical or  including  former  Logical
directors,  Logical was determined to be the accounting  acquirer in the reverse
merger with  Advatex,  based upon guidance  provided by Securities  and Exchange
Commission (SEC) Staff Accounting  Bulletin (SAB) Topic 2A and APB 16, regarding
Business Combinations.

The fair market  value of the shares  being  issued in the  reverse  acquisition
transaction could not be determined and accordingly,  the transaction was valued
at the fair market value of the issuer's net assets,  which  approximated  their
carrying value. As a result, and consistent with treatment of a merger between a
non-operating   public  shell  and  privately  held  entity,   no  goodwill  was
recognized.


                                       6
<PAGE>


NOTE 2. DESCRIPTION OF COMPANY  (CONTINUED)

Concurrently with the above  transaction,  Advatex,  the legal acquirer,  issued
3,000,000  shares of common stock (with a per share value of $1.00 as determined
in the aforementioned reverse acquisition by Logical of Advatex) in exchange for
the outstanding  shares of Image.  This  transaction was accounted for under the
purchase  method of accounting  (see Note 7 --  Restatement).  The fair value of
Image's  assets was  reviewed to  determine  the  allocation  of the cost of the
purchase to tangible  and  intangible  assets,  including  goodwill.  Management
determined  that  no  adjustment  to  the  financial  statements  of  Image  was
necessary,  and that the fair value of the  tangible  and  intangible  assets of
Image was  equivalent  to their  respective  book  values  and no  goodwill  was
recognized in this transaction. The historical financial statements are those of
Logical,  and the assets,  liabilities  and operating  results of Image are only
included in the consolidated  financial  statements of the Company from the date
of acquisition, June 28, 2000.

The following  unaudited pro forma results of operations were developed assuming
the acquisition had occurred at the beginning of the earliest period presented.
<TABLE>
<CAPTION>
<S>                                    <C>                 <C>                   <C>                <C>    <C>    <C>
                                           THREE MONTH PERIODS ENDED                 NINE MONTH PERIODS ENDED
                                           -------------------------                 ------------------------
                                       SEP 30, 2001        SEP 30, 2000          SEP 30, 2001       SEP 30, 2000
                                       ------------        ------------          ------------       ------------
                                                               (Unaudited Proforma Data)
        Net sales                      $  9,867,704        $  6,006,335          $ 23,494,174       $ 15,542,691
        Net income                     $    145,839        $    (55,258)         $    185,339       $     23,071
        Income per share               $        .02        $       (.01)         $        .02       $        .00
</TABLE>

On July 7, 2000, by a vote of the majority of stockholders,  Advatex Associates,
Inc. (Advatex),  changed its name to Color Imaging,  Inc. (the Company or Color)
and approved the reverse stock split.

Color develops,  manufactures and markets  products used in electronic  printing
and  photocopying.  Color designs,  manufactures and delivers black text toners,
specialty  toners,  including  color and MICR (magnetic ink  characters  used on
checks and other  financial  documents).  Color also supplies  other  consumable
products  used  in  electronic   printing  and  photocopying,   including  toner
cartridges, cartridge components, photoreceptors and imaging drums.

Logical's  development  efforts  have  focused on  creating  a digital  variable
printing process that provides high-speed, color printing systems for commercial
applications.  Logical  designs,  manufactures  and delivers  complete  printing
systems, including software, control units and print engines to its customers.

NOTE 3. STOCK OPTIONS

Prior to the Merger,  the Company  granted  options to acquire 500,000 shares of
the common stock of the Company to senior  members of the Company's  management.
The option  price is $2.00 per share.  The options  will vest over a two to four
year period.

NOTE 4. WARRANTS TO PURCHASE COMMON STOCK

As part of the Merger,  the Company  granted  warrants  (the "New  Warrant")  to
purchase up to 100,000 shares of the common stock of the Company to professional
advisors to the Merger. The New Warrant entitles the warrant holder to purchase,
at any  time  and  for a  five-year  period,  a share  of  common  stock  of the
Registrant for $2.00 per share. In addition,  current  shareholders  own 272,000
similar  warrants  (the "Old  Warrant").  The Old Warrant  entitles  the warrant
holder to  purchase,  at any time until  September  15,  2001, a share of common
stock of the Registrant for $2.70 per share.

NOTE 5. EARNINGS PER SHARE

Basic and diluted  earnings per share have been computed in accordance  with the
adoption of SFAS No. 128.


                                       7
<PAGE>

NOTE 6. INVENTORIES

Inventories  consisted of the following  components as of September 30, 2001 and
December 31, 2000:
<TABLE>
<CAPTION>
<S>                                         <C>                                <C>
                                            September 30, 2001                 December 31, 2000
                                            ------------------                 -----------------
                                                                                 (As restated)
        Raw materials ....................      $    913,604                      $      794,128
        Work-in-process...................           911,360                           1,275,545
        Finished goods....................         4,960,832                           3,234,230
        Obsolescence allowance............          (122,655)                           (122,655)
                                            ------------------                 -----------------
    Total.................................      $  6,663,141                      $    5,181,248
                                            ==================                 =================
</TABLE>

NOTE 7. RESTATEMENT OF NINE MONTHS YEAR 2001 FINANCIAL STATEMENTS:

The  accompanying  financial  statements for the nine months ended September 30,
2001,  have been  restated to reflect the business  combination  with Image (see
Note 2 under the  purchase  method of  accounting  as opposed to the  pooling of
interests  method,  as  previously  reported.  Accordingly,   Image's  financial
statements are only  consolidated  beginning with the date of acquisition,  June
28, 2000. In addition,  the Company  reclassified  certain  tangible assets that
were  erroneously  classified  as  Patent/Intellectual  Property.  The following
tables present the impact of the restatement.

<TABLE>
<CAPTION>
<S>                                                 <C>                        <C>
                                                    As Previously
                                                       Reported                As Restated
As of September 30, 2001:                           --------------             ------------
    Balance Sheet:
       Property, plant and equipment, net              7,194,027                 8,461,416
       Patent/intellectual property                    1,272,389                     5,000
       Additional paid-in capital                      8,136,724                 8,380,015
       Accumulated deficit                            (1,839,573)               (2,082,863)
</TABLE>


See also Note 2 -- Unaudited Proforma Data




                                       8
<PAGE>


ITEM 2.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     The following  discussion and analysis  should be read in conjunction  with
our Consolidated  Condensed  Financial  Statements and related Notes included in
this report.

FACTORS   THAT  MAY   AFFECT   FUTURE   RESULTS   AND   INFORMATION   CONCERNING
FORWARD-LOOKING STATEMENTS

     Statements  contained in this report which are not statements of historical
fact are  forward-looking  statements  within the  meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the  Securities  Exchange Act of 1934.
These forward-looking statements may be identified by the use of forward-looking
terms such as "believes," "expects," "may", "will," "should" or "anticipates" or
by  discussions of strategy that involve risks and  uncertainties.  From time to
time, we have made or may make forward-looking statements, orally or in writing.
These  forward-looking  statements include  statements  regarding our ability to
borrow funds from financial institutions or affiliates and/or engage in sales of
our securities,  our intention to repay certain  borrowings from future sales of
our securities,  the ability to expand capacity by placing in service additional
manufacturing  equipment, the ability to commercialize our electron beam imaging
technologies and products, our expected acquisition of business or technologies,
our  expectation  that  shipments to  international  customers  will continue to
account for a material portion of net sales, anticipated future revenues, sales,
operations,  demand, technology,  products,  business ventures, major customers,
major suppliers,  competition,  capital expenditures,  credit arrangements,  and
other  statements  regarding  matters  that are not  historical  facts,  involve
predictions  which are based upon a number of future  conditions that ultimately
may prove to be inaccurate.  Our actual  results,  performance  or  achievements
could  differ  materially  from the results  expressed  in, or implied by, these
forward-looking  statements.  Forward-looking  statements  are made  based  upon
management's current expectations and beliefs concerning future developments and
their  potential  effects upon our business.  We cannot  predict  whether future
developments affecting us will be those anticipated by management, and there are
a number of factors that could adversely affect our future operating  results or
cause our actual results to differ materially from the estimates or expectations
reflected in such  forward-looking  statements,  including  without  limitation,
those  discussed  in  the  sections  titled  "The  Company"  and   "Management's
Discussion and Analysis."

     The  information  referred to above should be considered by investors  when
reviewing any forward-looking statements contained in this report, in any of our
public filings or press releases or in any oral  statements made by us or any of
our officers or other persons acting on our behalf.  The important  factors that
could affect  forward-looking  statements are subject to change, and we disclaim
any obligation or duty to update or modify these forward-looking statements.

BACKGROUND

     Color  Imaging,  Inc.,  formerly  known as Advatex  Associates,  Inc.,  was
incorporated in Delaware in 1987. On May 16, 2000, Advatex,  Logical Acquisition
Corp., Color Acquisition Corp., Logical Imaging Solutions,  Inc. ("Logical") and
Color  Image,  Inc.  ("Image")  entered  into a  Merger  Agreement  and  Plan of
Reorganization,  as  amended  ("Merger  Agreement")  pursuant  to which  Logical
Acquisition  Corp.  merged  with and into  Logical and Color  Acquisition  Corp.
merged with and into Image (the "Merger"),  whereby Logical and Image became our
wholly-owned  subsidiaries.  Pursuant to the Merger  Agreement,  shareholders of
Logical and Image  exchanged  their shares for shares of common stock of Advatex
Associates,  Inc..  Logical  shareholders  converted their shares into shares of
common  stock of Advatex  Associates,  Inc.  at the ratio of  1.84843  shares of
common stock of Advatex  Associates,  Inc. for each one share of Logical.  Image
shareholders  converted  their  shares  into  shares of common  stock of Advatex
Associates,  Inc.  at  the  ratio  of 15  shares  of  common  stock  of  Advatex
Associates, Inc. for each one share of Image. Following the conversion of shares
by Logical  and Image  shareholders,  shareholders  of Logical  and Image  owned
approximately  85%  of  the  outstanding  shares  of  common  stock  of  Advatex
Associates,  Inc. and shareholders of Advatex Associates,  Inc. after the Merger
owned approximately 15%.

                                       9
<PAGE>

     The  purpose  of the Merger was to  combine  Image's  toner and  consumable
expertise  and  manufacturing  plant with  Logical's  advanced  printing  system
capabilities  to offer a wider  product  range and  ensure  product  supply  for
Logical's print system. On July 7, 2000, pursuant to a vote of our stockholders,
we changed our name from Advatex Associates,  Inc. to Color Imaging, Inc, and on
December 31, 2000,  Color  Image,  Inc. was merged with and into Color  Imaging,
Inc. (the "Company" or "Color").

OVERVIEW

     The Company, Color Imaging, Inc. (OTCBB: CIMG), develops,  manufactures and
markets  products used in electronic  printing,  analog and digital  copiers and
high-speed digital printing.  These high-speed digital printing systems print in
real-time  directly on offset  presses.  Offset presses are presses that utilize
plates and ink to print on paper and other  materials.  We conduct our  business
through two separate operating units, Color Imaging,  Inc. ("Color") and Logical
Imaging Solutions, Inc. ("Logical").  Color develops,  purchases from others and
markets electronic printing products,  including black text, color, magnetic ink
character  recognition  and  specialty  toners,  and  provides  other  parts and
accessories for laser printers and analog and digital copiers.  Logical designs,
manufactures  and  integrates  components  made by third parties into a complete
printing  system  and  offers  technical  support  and  supplies  in  connection
therewith.  Logical's  printing system allows  commercial  printers to digitally
process and print data that may change from page to page, also known as variable
data, and images at very high speeds directly on commercial  offset web presses.
This capability saves time and money for both the printer and its customer.

Color

     Since 1989, Color has developed, manufactured and marketed products used in
electronic  printing and photocopying.  Image formulates and produces black text
and specialty toners,  including color and magnetic character recognition toners
for numerous laser printers and a number of facsimile machines and photocopiers.
Color's toners permit the printing of a wide range of  user-selected  colors and
also the full  process  color  printing  of cyan,  yellow,  magenta  and  black.
Magnetic character recognition toners enable the printing of magnetic characters
that are required for the  high-speed  processing of checks and other  financial
documents.  Color also  supplies  other  consumable  products used in electronic
printing and  photocopying,  including toner cartridges,  cartridge  components,
photoreceptors and imaging drums.

     Color  has  continually   expanded  its  product  line  and   manufacturing
capabilities.  This expansion has led to the creation of more than 130 different
black text,  color,  magnetic ink  character  recognition  and  specialty  toner
formulations, including aftermarket toners and imaging products for printers and
facsimile machines manufactured by Brother(TM),  Canon(TM), Delphax(TM), Hewlett
Packard(TM), IBM(TM), Lexmark(TM),  Sharp(TM), Xerox(TM), Minolta(TM), Mita(TM),
Panafax(TM),    Pentax(TM),   Pitney   Bowes(TM),   Epson(TM),   Fuji-Xerox(TM),
Toshiba(TM),  Kyocera(TM),  Okidata(TM),  Panasonic(TM),  and  printing  systems
developed by Logical.  Color also manufacturers and or markets toners for use in
Ricoh(TM),  Sharp(TM), Xerox(TM), Canon(TM), Lanier(TM) and Toshiba(TM) copiers.
Color also offers product enhancements,  including imaging supplies, that enable
standard laser  printers to print magnetic  character  recognition  data.  Color
markets branded products directly to OEMs and aftermarket  products worldwide to
distributors.  In addition,  aftermarket products for laser printers and digital
and  analog  copiers  are  also  marketed  to  remanufacturers  and to  dealers,
respectively.


                                       10
<PAGE>


Logical

     Logical  designs,   assembles  and  markets  a  complete  printing  system,
SOLUTION2000,  to  commercial  printers.  When  installed  directly on an offset
printing press,  the SOLUTION2000  expands printing  capabilities to include the
printing  of  variable  data and  images,  including  bar  codes,  magnetic  ink
character  recognition and unlimited  alphanumeric  sequencing.  These functions
allow  commercial  printers  to  digitally  process and print  variable  data at
extremely high speeds where previously they were able to only print fixed images
from printing plates or cylinders  installed on their offset  printing  presses.
Since its  founding  in 1993,  Logical's  development  efforts  have  focused on
creating a high-speed  digital  variable  data  printing  system for  commercial
printing applications that combines software,  hardware and consumable products.
Logical also offers a full line of consumable products,  including toners, print
cartridges  and toner fusing  assemblies.  Logical's  strategy is to continually
build an installed base of printer systems that will generate a recurring demand
for these consumable products.

     Logical is developing the DigitalColorPress,  a Solution series of printing
systems incorporating color printing  capabilities.  The DigitalColorPress  will
print variable data in color at rates exceeding 250 pages-per-minute. This is in
contrast to other  products that do not print directly on the press and print at
speeds  of  approximately  85 pages  per  minute.  Logical  believes  that  this
represents an attractive alternative for high-speed offset printing applications
because  it reduces  steps and labor in the print  process.  Logical  intends to
market the DigitalColorPress color printing system as an enhancement to existing
Solution series installations and as an upgrade for other printing systems..

OVERVIEW (RESTATEMENT OF FINANCIAL STATEMENTS)

     The Company has revised its accounting  treatment for the merger  completed
in June 2000 from a  pooling-of-interests  to the purchase  method in accordance
with  guidance  provided  by  the  Securities  and  Exchange   Commission  Staff
Accounting  Bulletin Topic 2A and APB 16, regarding business  combinations.  The
financial information contained in this amended report is in conformity with the
purchase  method of accounting  for the merger.  Accordingly,  the  accompanying
financial  statements for the six months ended June 30, 2000, have been restated
to reflect the  business  combination  with Image under the  purchase  method of
accounting  as  opposed  to the  pooling  of  interests  method,  as  previously
reported.  As the result,  Image's  financial  statements are only  consolidated
beginning with the date of acquisition, June 28, 2000.

     Net sales, for the three and nine month periods that ended on September 30,
2001, were primarily generated from the sale of consumable  products,  including
toner.  Revenue  is  recognized  from the sale of  products  when the  goods are
shipped to the customer. In the three and nine month periods ended September 30,
2001, net sales increased  $3,861,000 and $17,048,000,  respectively.  The large
increase in net  revenues for the nine month  period  ended  September  30, 2001
compared to the same period of 2000 was primarily the result of consolidation of
Image's financial statements.

     Cost of goods sold includes direct material and labor and manufacturing and
service  overhead.  Inventories  are  stated  at the  lower  of cost  (first-in,
first-out) or market.  Equipment is depreciated using the  straight-line  method
over the estimated useful life of the equipment. Improvements to leased property
are  amortized  over  the  lesser  of the  life of the  lease or the life of the
improvements.

     Selling, general and administrative expenses include marketing and customer
support  staffs,   other  marketing  expenses,   management  and  administrative
personnel  costs,   professional   services,   legal  and  accounting  fees  and
administrative  operating costs.  Selling,  general and administrative costs are
expensed when the costs are incurred.

     Research  and  development  expenses  include  costs  associated  with  the
development of new products and significant  enhancements of existing  products,
and consist primarily of employee salaries,  benefits,  consulting  expenses and
depreciation of laboratory equipment.


                                       11
<PAGE>


RESULTS OF OPERATIONS

     The  following  table  sets  forth,  for  the  periods  indicated,  certain
information derived from the Company's consolidated statements of operations and
expressed as a percentage of net sales:
<TABLE>
<CAPTION>
<S>                                                  <C>           <C>         <C>          <C>
                                                     Three Months Ended        Nine Months Ended
                                                         September 30,            September 30,
                                                       2001          2000        2001         2000
                                                     --------      --------    --------     --------
                                                                (Percentage of Net Sales)
       Net sales ...............................       100           100           100          100
       Cost of goods sold ......................        87            85            86           84
       Gross Profit ............................        13            15            14           16
       Administrative expenses..................         4             6             5            8
       Research and Development.................         2             4             3            5
       Sales and Marketing......................         4             3             4            3
       Operating income.........................         3             1             3            0
       Interest expense.........................         1             2             1            2
       Depreciation and Amortization............         1             2             2            2
       Income before income taxes...............         2            -2             1           -3
       Provision for income taxes (credit) .....         1            -1             0           -2

       Net income (Loss) .......................         1            -1             1           -2
</TABLE>

THREE MONTHS ENDED  SEPTEMBER 30, 2001 COMPARED TO THREE MONTHS ENDED  SEPTEMBER
30, 2000

NET SALES.  Net sales were  $9,867,000 for the three months ended  September 30,
2001, or an increase of $3,861,000,  or 64% compared to $6,006,000 for the three
month period  ended  September  30,  2000.  The increase in net sales during the
three month period ended  September 30, 2001 compared to the same period of 2000
was primarily the result of an expanded product line of black text toners.

COST OF GOODS  SOLD.  Cost of  goods  sold  increased  by  $3,435,000  or 67% to
$8,551,000 in the three months ended  September 30, 2001 from  $5,116,000 in the
three months  ended  September  30, 2000.  This  increase was  primarily  due to
increased net sales.  Cost of goods sold as a percentage of net sales  increased
to 87% in the third quarter of 2001 from 85% in the third quarter of 2000.  This
decrease was due to the higher level of sales at lower profit margins.

GROSS  PROFIT.  As a result of the above  factors,  gross  profit  increased  to
$1,317,000  in the three months ended  September  30, 2001 from  $891,000 in the
three months ended September 30, 2000. Gross profit as a percentage of net sales
decreased to 13% in the third  quarter of 2001 from 15% in the third  quarter of
2000. This decrease was also due to the higher level of sales at lower margins.

GENERAL   AND   ADMINISTRATIVE,   R&D  AND   SELLING   EXPENSES.   General   and
administrative, selling and R&D expenses increased $203,000 or 25% to $1,014,000
in the three months ended  September  30, 2001 from $811,000 in the three months
ended September 30, 2000. General and  administrative,  R&D and selling expenses
decreased,  as a percentage  of net sales,  to 10% in the third  quarter of 2001
from 14% in the third  quarter  of 2000.  General  and  administrative  expenses
increased by $36,000 or 9% to $419,000 in the three months ended  September  30,
2001 from $383,000 in the three months ended  September  30, 2000.  R&D expenses
decreased by $11,000 or 5% to $220,000 in the three months ended  September  30,
2001 from  $231,000  in the three  months  ended  September  30,  2000.  Selling
expenses  increased by $177,000 in the three months ended  September 30, 2001 to
$375,000  from  $198,000  for the three  months ended  September  30, 2000.  The
increase in operating  expenses for the three month period ended  September  30,
2001  compared to the same period of 2000 was  primarily the result of increased
sales volume.

OPERATING  INCOME.  As a  result  of the  above  factors  the  operating  profit
increased  by  $223,000  to a profit  of  $303,000  in the  three  months  ended
September 30, 2001 from $80,000 in the three months ended September 30, 2000.

INTEREST  EXPENSE.  Interest  expense  was  $93,000  in the three  months  ended
September 30, 2001 compared to $123,000 for the three months ended September 30,
2000.


                                       12
<PAGE>


OTHER INCOME.  An increase in  miscellaneous  income,  reduced by small currency
exchange losses,  resulted in other income  increasing to $15,000 from a loss of
$68,000 for the three  months  ended  September  30,  2001  compared to the same
period of 2000.

INCOME  TAXES.  Income tax  provisions  increased to $67,000 in the three months
ended September 30, 2001 from a tax benefit of $67,000 for the comparable period
in 2000.

NINE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
2000.

NET SALES.  Net sales were  $23,494,000  for the nine months ended September 30,
2001, or an increase of 264%  compared to  $6,446,000  for the nine month period
ended September 30, 2000, with the increase primarily  attributable to toner and
consumable  sales.  The large increase in net revenues for the nine month period
ended  September  30, 2001 compared to the same period of 2000 was primarily the
result of consolidation of Image's financial statements for all of 2001.

COST OF GOODS  SOLD.  Cost of goods sold  increased  by  $14,748,000  or 274% to
$20,134,000 in the nine months ended  September 30, 2001 from  $5,385,000 in the
nine months  ended  September  30, 2000.  This  increase  was  primarily  due to
increased net sales.  Cost of goods sold as a percentage of net sales  increased
to 86% in the nine months  ended  September  30, 2001 from 84% in the first nine
month period of 2000.  This increase in cost of sales is  attributable  to toner
sales at a lower profit margin.

GROSS  PROFIT.  As a result of the above  factors,  gross  profit  increased  by
$2,299,000  to  $3,360,000  in the nine  months  ended  September  30, 2001 from
$1,061,000  in the nine months  ended  September  30,  2000.  Gross  profit as a
percentage of net sales  decreased to 14% for the nine months of 2001,  from 16%
for the similar  period in 2000.  This decrease in gross margin is primarily due
to the toner sales at lower profit margins.

GENERAL   AND   ADMINISTRATIVE,   SELLING,   AND  R&D   EXPENSES.   General  and
administrative,  R&D  and  selling  expenses  increased  $1,691,000  or  157% to
$2,767,000 in the nine months ended  September  30, 2001 from  $1,076,000 in the
nine months  ended  September  30,  2000.  General and  administrative,  R&D and
selling  expenses  decreased,  as a percentage of net sales, to 12% in the first
nine  months of 2001 from 16% in the  similar  nine month  period of 2000.  This
change was the result of increased sales and operations of the merged companies.
General  and  administrative   expenses  increased  by  $730,000,  or  137%,  to
$1,263,000  from  $533,000 in the nine month  period  ended  September  30, 2001
compared  to the nine month  period  ended  September  30,  2000.  R&D  expenses
increased by $276,000 or 80% to $621,000 in the nine months ended  September 30,
2001 from $345,000 in the nine months ended September 30, 2000. Selling expenses
increased by $685,000 to $883,000 in the nine months ended  September  30, 2001.
The large  increase  in  operating  expenses  for the nine  month  period  ended
September  30, 2001 compared to the same period of 2000 was primarily the result
of consolidation of Image's financial statements for all of 2001.

OPERATING INCOME.  As a result of the above factors,  operating income increased
by $608,000 to a profit of $593,000  for the nine  months  ended  September  30,
2001,  compared  with a loss of $15,000 in the nine months ended  September  30,
2000.

INTEREST EXPENSE. Interest expense increased by $193,000 to $326,000 in the nine
months ended September 30, 2001from  $133,000 in the nine months ended September
30, 2000.

OTHER  INCOME.  As the result of increased  miscellaneous  income,  other income
increased to $26,000 in the nine months ended  September 30, 2001 from a loss of
$67,000 in the comparable nine months ended September 30, 2000.

INCOME TAXES.  As the result of the  increased  profit for the nine months ended
September  30,  2001  compared  to the same  period in 2000,  the tax  provision
increased to $98,000 for the nine months ended  September 30, 2001 compared to a
$108,000 tax benefit for the comparable period in 2000.

LIQUIDITY AND CAPITAL RESOURCES

     Cash flows  provided  by  operating  activities  were  $630,000 in the nine
months ended  September  30, 2001,  compared to $34,000 in the nine months ended
September 30, 2000. The cash flows provided by operating  activities in the nine
months  ended  September  30, 2001 were  comparatively  greater than in the nine
months ended September 30, 2000 due primarily to increases in accounts  payable.
The payable  increase  resulted  primarily  from higher sales and  purchasing in
2001.


                                       13
<PAGE>


     Cash flows used in investing  activities  were  $782,000 in the nine months
ended September 30, 2001 compared to $742,000 in the nine months ended September
30, 2000. Included in cash flows used in investing activities in the nine months
ended September 30, 2001 was $502,000  invested in test equipment for furthering
the Company's patented toner and digital color printing systems technologies.

     The Company has a $1.5 million revolving line of credit with an outstanding
balance as of September 30, 2001 of $732,000,  and bears  interest at the Bank's
prime  interest  rate less .25  percent.  The  revolving  line of  credit  has a
December  31, 2001  expiration  date.  Under the line of credit,  the Company is
permitted to borrow 85 percent of eligible accounts receivable and 50 percent of
eligible inventories (up to a maximum of $1.1 million).

     The Bank has made available an additional  line of credit of $500,000.  The
outstanding  balance as of September 30, 2001 was $500,000.  The additional line
of credit has an  expiration  date of December 31,  2001,  and bears an interest
rate of the Bank's prime interest rate plus .5 percent.  The Company has granted
the Bank a security  interest in all of the Company's assets as security for the
payment of the lines of credit.

     The Company believes that cash generated by operating  activities and funds
available under credit  facilities will be insufficient to finance its operating
and investing activities for the next 12 months after September 30, 2001. To the
extent that the funds generated from these sources were  insufficient to finance
the operating activities,  the Company raised additional funds through public or
private financing.


                                       14
<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.

                                       COLOR IMAGING, INC.



July 24, 2002                          /S/ MORRIS E. VAN ASPEREN
                                       -----------------------------------------
                                       Morris E. Van Asperen
                                       Executive Vice President and
                                       Chief Financial Officer







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