SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   Form 10-QSB




(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 1-14827

                      EDUCATIONAL VIDEO CONFERENCING, INC.
           (Exact name of small business as specified in its charter)

          Delaware                                     06-1488212
(State of other jurisdiction of           (IRS Employer Identification Number)
incorporation or organization)

               35 East Grassy Sprain Road, Yonkers, New York 10710
                    (Address of principal executive offices)
                                 (914) 787-3500
                (Issuer's telephone number, including area code)


Indicate by check mark whether the issuer (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No__

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 4,492,961 shares of Common
Stock as of November 1, 2001.


<PAGE>

                                Table of Contents
                                     Part I
                              Financial Information

<TABLE>
<CAPTION>

<S>                                                                            <C>
Item 1. Financial Statements                                                    Page

Consolidated Balance Sheet as of September 30, 2001 (unaudited)
 and as of December 31, 2000 (audited)..........................................  3

Consolidated Statement of Operations for the three and nine month periods
ended September 30, 2001 (unaudited) and September 30, 2000 (unaudited).........  4

Consolidated Statement of Cash Flows for the nine month periods ended
September 30, 2001 (unaudited) and September 30, 2000 (unaudited)...............  5

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

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

Third Quarter Developments...................................................... 12

Comparison of the Three Month Periods Ended
September 30, 2001 and September 30, 2000....................................... 17

Comparison of the Nine Month Periods Ended
September 30, 2001 and September 30, 2000....................................... 20

Liquidity and Capital Resources................................................. 22

Forward-Looking Statements and Risk Factors..................................... 23

                                     Part II

                                Other Information

Item 6. Exhibits and Reports on form 8-K........................................ 26

Signatures...................................................................... 27

</TABLE>

<PAGE>



              EDUCATIONAL VIDEO CONFERENCING, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>

                                                                                  September 30, 2001  December 31, 2000
                                                                                  ------------------  -----------------
                                   Assets                                            (unaudited)       (audited)
Current assets:
<S>                                                                                <C>             <C>
     Cash and cash equivalents .................................................   $  1,520,141    $  6,332,934
     Accounts receivable, net of allowance for doubtful
       accounts of $950,000 and $250,000 respectively ..........................      5,167,252       1,482,001
     Accounts receivable other .................................................             --         304,634
     Prepaid expenses and other current assets .................................        313,902          11,510

     Assets held for resale ....................................................        310,000              --
                                                                                      ---------       ---------
Total current assets ...........................................................      7,311,295       8,131,079
                                                                                      ---------       ---------

Property and equipment, net ....................................................      1,634,485       5,013,003
                                                                                      ---------       ---------
License agreement, net .........................................................             --         212,500
Intangible assets ..............................................................      6,366,260       1,349,588
Other assets ...................................................................        267,800          45,081
                                                                                        -------          ------
Total assets ...................................................................   $ 15,579,840    $ 14,751,251
                                                                                    ===========     ===========
                    Liabilities and Stockholders' Equity
Current liabilities:
     Accounts payable and accrued expenses .....................................   $  2,869,661    $    793,466
     Deferred revenue ..........................................................      6,715,889              --
     Accrued costs relating to discontinued operations .........................        207,152              --
     Accrued purchase price payable for Interboro ..............................        209,000         673,376
     Current maturities of capitalized lease obligations .......................        277,292          18,107
                                                                                     ----------          ------
Total current liabilities ......................................................     10,278,994       1,484,949
     Accrued purchase price payable for Interboro, net of current portion ......        742,994              --
     Capitalized lease obligations, net of current maturities ..................        151,802          27,937
     Note payable ..............................................................        910,000              --
     Deferred rent .............................................................         58,432              --
                                                                                         ------          ------
Total liabilities ..............................................................     12,142,222       1,512,886
Series B 7% Convertible Preferred Stock -- $100 stated value;
130,000 shares issued and outstanding ..........................................             --      12,342,266
Stockholders' equity :
         Preferred stock - $.0001 par value; authorized 1,000,000 shares,
           200,000 shares  designated Series B .................................             --              --
         Series B 7% Convertible Preferred Stock -- $100 stated value;
           130,000 shares issued and outstanding ...............................     12,521,648              --
         Common stock - $.0001 par value; authorized 20,000,000 shares,
           issued and outstanding 4,492,961 shares .............................            450             450
         Additional paid-in capital ............................................     22,493,380      22,370,380
         Accumulated deficit ...................................................    (31,577,860)    (21,474,731)
                                                                                   ------------    ------------
Stockholders' equity ...........................................................      3,437,618         896,099
                                                                                      ---------         -------
Total liabilities and stockholders' equity .....................................   $ 15,579,840    $ 14,751,251
                                                                                    ===========     ===========

</TABLE>
                 See Notes to Consolidated Financial Statements

                                       3
<PAGE>




              EDUCATIONAL VIDEO CONFERENCING, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF OPERATIONS

                                   (unaudited)

<TABLE>
<CAPTION>

                                                                     Three months ended             Nine months ended
                                                                     ------------------             -----------------
                                                              Sept. 30, 2001   Sept. 30, 2000  Sept. 30, 2001  Sept. 30, 2001
                                                              --------------   --------------  --------------  --------------

<S>                                                         <C>             <C>             <C>             <C>
Revenue .................................................   $  4,775,698    $  1,875,805    $  9,242,338    $  5,407,820
Other income ............................................         62,047          28,242          99,274          62,036
                                                                  ------          ------          ------          ------
Total revenue ...........................................      4,837,745       1,904,047       9,341,612       5,469,856
                                                               ---------        --------       ---------       ---------
Operating expenses:
     Cost of sales ......................................      1,958,004         484,088       3,307,971       1,401,313
     Selling, general and administrative ................      4,105,015       3,116,026       9,745,657       8,454,974
                                                               ---------       ---------       ---------       ---------
Total operating expenses ................................      6,063,019       3,600,114      13,053,628       9,856,287
                                                               ---------       ---------      ----------       ---------
Loss from operations ....................................     (1,225,274)     (1,696,067)     (3,712,016)     (4,386,431)
                                                             -----------     -----------     -----------     -----------
Other income (expense):
     Interest expense ...................................        (30,790)             --         (33,499)             --
     Interest income ....................................         27,507          14,922         130,605         148,211
                                                                  ------          ------         -------         -------
Loss from continuing operations .........................     (1,228,557)     (1,681,145)     (3,614,910)     (4,238,220)
                                                             -----------       ---------     -----------     -----------
Discontinued operations:
     Loss from discontinued operations ..................        (41,272)       (797,640)       (950,587)     (2,307,508)
                                                                --------       ---------       ---------     -----------
     Loss from disposal of discontinued operations ......     (4,312,462)             --       (4,312,462)            --
                                                             -----------       ---------        ---------      ---------
Loss from discontinued operations .......................     (4,353,734)       (797,640)     (5,263,049)     (2,307,508)
                                                             -----------     -----------     -----------     -----------
Provision for income taxes ..............................         46,787              --         135,787              --
                                                                  ------         -------         -------         -------
Net loss ................................................     (5,629,078)     (2,478,785)     (9,013,746)     (6,545,728)
                                                             -----------     -----------     -----------     -----------
Beneficial conversion feature of preferred stock series A             --        (264,706)             --        (705,882)
Accreted value of warrants-series A .....................             --        (326,300)             --        (378,918)
Dividends on preferred stock-series A ...................             --         (66,458)             --        (191,458)
Accreted value of warrants and transaction costs series B        (59,794)             --        (179,382)             --
Undeclared dividends on preferred stock series B ........       (208,945)             --        (663,945)             --
                                                            ------------     -----------     -----------     -----------
Net loss available to common stockholders ...............   $ (5,897,817)   $ (3,136,249)   $ (9,857,073)   $ (7,821,986)
                                                            ============    ============    ============    ============
Basic and diluted loss from continuing operations .......   $      (0.34)   $      (0.54)   $      (1.02)   $      (1.26)
                                                                 =======         =======         =======         =======
Basic and diluted loss from discontinued operations .....          (0.97)          (0.18)          (1.17)          (0.53)
                                                                  ------          ------          ------          ------
Basic and diluted loss per common share .................   $      (1.31)   $       (.72)   $      (2.19)   $      (1.79)
                                                                 =======          ======         =======         =======
Weighted average number of common shares outstanding ....      4,492,961       4,378,236       4,492,961       4,357,895
                                                               ---------       ---------       ---------       ---------
</TABLE>
                 See Notes to Consolidated Financial Statements

                                       4

<PAGE>


              EDUCATIONAL VIDEO CONFERENCING, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                          Nine months ended
                                                                                          -----------------
                                                                                     Sept. 30, 2001   Sept. 30, 2000
                                                                                     --------------   --------------
<S>                                                                                 <C>             <C>
Cash flows from operating activities:
Net loss ........................................................................   $ (9,013,747)   $ (6,545,728)
Adjustments to reconcile net loss to net cash used in operating activities:
         Depreciation ...........................................................        870,345         716,328
         Amortization of intangibles ............................................        223,966          99,326
         Amortization of licensing agreement ....................................         25,000          25,000
         Allowance for doubtful accounts ........................................        600,000          25,000
         Loss on disposal of discontinued operations ............................      4,312,460              --
         Loss from equity method investment .....................................             --          95,533
Changes in operating assets and liabilities, net of effects of acquisitions:
         Increase in accounts receivable ........................................     (3,521,888)     (1,081,626)
         Decrease in prepaid expense and other current assets ...................        293,407          10,428
         Decrease in inventory ..................................................             --         (35,852)
         Increase in other assets ...............................................       (144,119)        (62,294)
         Decrease in accounts payable and accrued expenses ......................       (125,538)     (1,185,700)
         Increase in deferred revenue ...........................................      3,035,660              --
         Accrued purchase price on Interboro Institute ..........................        174,118              --
         Deferred Rent ..........................................................         58,432              --
                                                                                        --------          ------
Net cash used in operating activities ...........................................     (3,211,904)     (7,939,585)
                                                                                     -----------     -----------
Cash flows used in investing activities:
         Purchase of ICTS and Interboro, net of cash required ...................       (713,194)       (113,534)
         Net payments for other investments .....................................             --         (50,000)
         Purchase of equipment ..................................................       (802,088)     (2,293,484)
                                                                                       ---------     -----------
Net cash used in investing activities ...........................................     (1,515,282)     (2,457,018)
                                                                                     -----------     -----------
Cash flows from financing activities:
         Net proceeds from issuance of common stock .............................             --          88,000
         Increase in deferred offering costs ....................................             --              --
         Principal payments under capital lease obligations .....................        (85,607)        (20,610)
         Additional expense incurred in connection with the issuance of preferred
         stock ..................................................................             --              --
         Net proceeds from issuance of preferred stock series A .................             --       3,519,535
         Redemption of preferred stock series A .................................             --      (3,220,000)
         Net proceeds from issuance of preferred stock series B .................             --      12,682,472
                                                                                        --------      ----------
Net cash provided by (used in) financing activities .............................        (85,607)     13,049,397
                                                                                        --------      ----------
Net decrease in cash and cash equivalent ........................................     (4,812,793)      2,652,795
Cash and cash equivalents at beginning of period ................................      6,332,934       6,925,823
                                                                                       ---------       ---------
Cash and cash equivalents at end of period ......................................   $  1,520,141    $  9,578,618
                                                                                      ==========      ==========
Supplemental schedule of cash flow information
Conversion of series A to common stock ..........................................             --    $  1,200,000
Issuance of common stock in lieu of dividends on series A preferred stock .......             --    $    191,458
Cash paid during the period for:
         Interest ...............................................................   $     33,499
         Taxes ..................................................................   $     46,900
</TABLE>

                 See Notes to Consolidated Financial Statements

                                       5


<PAGE>



Notes to Consolidated Financial Statements
Note 1 - Business and Basis of Presentation

The accompanying consolidated financial statements include the accounts of
Educational Video Conferencing, Inc. ("EVCI") and its wholly owned subsidiaries,
Interboro Institute, Inc. ("Interboro") Interboro Holding, Inc. and ICTS, Inc.
("ICTS"). References to "we," "our," and "us" mean EVCI and its subsidiaries
unless the context requires otherwise. All significant intercompany balances and
transactions have been eliminated. We have two business segments:

     o We provide on-campus education and training. This segment consists of the
     operations of Interboro, a two-year college with one campus in New York
     City and one in Flushing, New York, and newly acquired ICTS, an information
     technology training and certification school with four campuses, one in
     each of Atlanta, Baltimore, and Alexandria and Hampton, Virginia.

                                       6
<PAGE>


     Interboro offers degree programs leading to the Associate of Occupational
     Studies Degree in business administration, ophthalmic dispensing, paralegal
     studies, administrative secretarial arts and security services and
     management.

     ICTS provides a wide range of certified training and certification programs
     in database, network engineering/administration, web site design, and
     e-commerce. ICTS also offers on-site training to employers and recently
     began offering IT courses online. Its more than 15 certification programs
     include MCSE (Microsoft Certified Systems Engineer), CCNP (Cisco Certified
     Network Professional), and CIW (Certified Internet Webmaster). Our campus
     education segment provided 86% of our revenues for 2000 and 97% of our
     revenues for the first nine months of 2001.

     o Through EVCI's video enhanced communications division, which was created
     in 2001, we are offering second generation technology solutions and
     services that permit high quality multi-point video conferencing with three
     connectivity options: broadband, dedicated Internet access with service
     level agreements and existing general Internet access from almost any
     Internet Service Provider (ISP). The most widely used video conferencing
     equipment limits broadcasts to 4 interactive participants. However, our
     proprietary software allows for simultaneous interaction among as many as
     33 enabled stations (PCs and/or full room stations) located in up to 33
     dispersed geographical locations. One facilitator / instructor orchestrates
     the ability of participants to see and speak to each other. Our solutions
     and services cost is much less than our competition and require less
     bandwidth while providing a higher quality video experience. We are doing
     this synchronously using interactive video conferencing technologies.

     o In the third quarter of 2001, our board decided to stop delivering
     synchronized courses using ISDN lines because this activity has continued
     to be unprofitable. Accordingly, we have reflected the closing of this
     segment as a discontinued operation in the accompanying consolidated
     financial statements. As a result, this segment's revenue, cost of sales
     and related expenses have been reclassified in the consolidated statement
     of operations and shown separately as a net amount under the caption "Loss
     from Discontinued Operations" for all periods presented.


                                       7
<PAGE>

The accompanying unaudited interim financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and the requirements of item 310(b) of Regulation S-B. Accordingly,
certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to the rules and regulations of the
Securities and Exchange Commission. The financial statements reflect all
adjustments (consisting of normal recurring adjustments) which, in the opinion
of management, are necessary for a fair presentation of the results for the
periods shown. There have been no significant changes of accounting policy since
December 31, 2000.

Our results from operations for the interim period are not indicative of the
results expected for the full fiscal year or any future period and should be
read in conjunction with our audited financial statements as of December 31,
2000 and for the year then ended, and the notes thereto, in our 10-KSB/A for the
year ended December 31, 2000.

Note 2 - Earnings Per Share

Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per
Share," requires dual presentation of basic earnings per share ("EPS") and
diluted EPS on the face of all statements for all entities with complex capital
structures. Basic EPS is computed as net earnings available to common
stockholders divided by the weighted-average number of common shares outstanding
for the period. Diluted EPS reflects the potential dilution that could occur
from common shares issuable through stock based compensation including stock
options, restricted stock awards, warrants and other convertible securities.
Potential common stock has not been included in the computation of diluted EPS
since the effect would be antidilutive.

                                       8

<PAGE>

Note 3- Revenue Recognition

We recognize our campus education and training segment income ratably over the
semester in which courses are given and as services are performed. Deferred
revenue from advance student billings is netted against accounts receivable for
financial statement reporting. Deferred revenue is made up of billings and
advance payments that will be recognized as income over the next nine months.
The total billings and deferred revenue at September 30, 2001 was approximately
$6,715,000. For Interboro's semester beginning in September and ending in
December 2001, deferred revenue was $3,080,000, which we expect to recognize as
revenue during the fourth quarter of 2001. For ICTS, deferred revenue was
$3,635,000. ICTS classes range from 3 weeks to 21 weeks for full programs. We
expect to recognize substantially all of the ICTS deferred revenue by the second
quarter of 2002.

Note 4 - Preferred Stock

On September 22, 2000, we designated 200,000 shares of our authorized preferred
stock as Series B 7% Convertible Preferred Stock. Between September 22 and
September 30, 2000, we received gross proceeds of $13,000,000 from the issuance
of 130,000 shares of our Series B preferred stock and three year warrants to
purchase 722,223 shares of our common stock at $20.25 per share. A value of
$400,000 was assigned to the warrants. The transaction costs of this private
placement were approximately $320,000. These costs and the $400,000 assigned
value to the warrants will be recognized as a deemed dividend to the preferred
stockholders over three years. A portion of the net proceeds from the sale of
the Series B preferred was used to redeem our Series A preferred stock.

In an agreement dated August 17, 2001, our Series B preferred holders consented
to the amendment of our certificate of incorporation that permitted us to
reclassify our Series B preferred stock as permanent equity. Additionally, under

                                       9
<PAGE>


the agreement, the Series B preferred holders waived their right to receive
payment of dividends on their shares, totaling $910,000, for the period
September 22, 2000 through September 21, 2001. EVCI issued a 5% interest bearing
promissory note to them for $910,000 due September 22, 2003 which was secured by
its pledge of the stock of Interboro. In addition, Interboro guaranteed payment
of EVCI's note and secured its guarantee by granting a first lien on Interboro's
assets that is subordinate to specified creditors.

The Series B preferred stock was initially convertible into shares of our common
stock at $13.50 per share, the average closing bid price of our common stock for
the 20 trading days prior to September 22, 2000. On September 22, 2001, the
conversion price was reset to $6.75 in accordance with the provisions of the
Series B preferred that required the reset to the lower of the initial
conversion price and the current market price, but not less than 50% of the
initial conversion price.


Note 5 - Income Taxes

No provision for federal income taxes has been made for all periods presented
since we have had net operating losses. These net operating losses have resulted
in a deferred tax asset. Due to the uncertainty regarding the ultimate amount of
income tax benefits to be derived from our net operating losses, we have
recorded a full valuation allowance. The provision for taxes consists of state
and city taxes for Interboro.

                                       10
<PAGE>



Note 6 - Segment Reporting

We follow SFAS No. 131, "Disclosure about Segments of an Enterprise and Related
Information."

   Reportable segment data were as follows:

<TABLE>
<CAPTION>

Net revenue:                                         Three months ended Sept. 30     Nine months ended Sept. 30
                                                    ---------------------------     ----------------------------
                                                          2001          2000            2001            2000
                                                          ----          ----            ----            ----
<S>                                                   <C>          <C>             <C>             <C>
     Campus education and training....................$4,735,535   $  1,904,047    $  9,175,652    $  5,407,820
     Video enhanced communications....................   102,210             --         165,960              --
       Discontinued operations .......................        --        200,482         203,880         772,249
                                                       ---------      ---------       ---------       ---------
         Total revenue ...............................$4,837,745   $  2,104,529    $  9,545,492    $  6,239,233
                                                       =========      =========       =========       =========
Operating net income (loss):
     Campus education and training....................$(645,071)   $    156,110        (297,629)   $    735,666

     EVCI Corporate................................... (580,203)     (1,852,177)     (3,414,387)     (5,122,097)
                                                       ---------     ----------       ---------       ---------
         Total operating net loss ..................$(1,225,274)   $ (1,696,067)   $ (3,712,016)   $ (4,386,431)
                                                      ==========     ==========      ==========      ==========


Assets:                                                      September 30, 2001
                                                             ------------------
Campus education and training ..................................   $ 13,658,963
     EVCI Corporate ............................................      1,611,877
       Discontinued operations .................................        310,000
                                                                     ----------
         Total assets ..........................................   $ 15,579,840
                                                                     ==========
</TABLE>


Note 7 - ICTS Acquisition
Effective July 1, 2001, Interboro Holding, Inc. acquired the outstanding shares
of ICTS for warrants to purchase 700,000 shares of EVCI's common stock (500,000
at $1.00 per share and 200,000 at $3.00 per share). In addition, certain ICTS
shareholders are entitled to receive 20% of ICTS' free cash flow, as defined, up
to a maximum of either $500,000 or $600,000. The acquisition was accounted for
under the purchase method of accounting and, accordingly, ICTS' results of
operations are included in our financial statements commencing July 1, 2001, and
its assets and liabilities have been recorded based upon their fair values at
July 1, 2001. We acquired assets with a fair value of approximately $2,000,000,
subject to liabilities of approximately $6,000,000, and recorded approximately
$4,800,000 in goodwill.


                                       11
<PAGE>

Note 8 - Recent Accounting Pronouncements

In July 2001, the Financial Accounting Standards Board ("FASB") issued SFAS Nos.
141 and 142, "Business Combinations" and "Goodwill and Other Intangibles." SFAS
141 requires all business combinations initiated after June 30, 2001 to be
accounted for using the purchase method. Under SFAS 142, goodwill is no longer
subject to amortization over its estimated useful life. Rather, goodwill is
subject to at least an annual assessment for impairment by applying a fair-value
based test. Additionally, an acquired intangible asset should be separately
recognized if the benefit of the intangible asset is obtained through
contractual or other legal rights, or if the intangible asset can be sold,
transferred, licensed, rented or exchanged, regardless of the acquirer's intent
to do so. EVCI is in the process of determining the impact of these
pronouncements on its financial position and results of operations.

Note 9 - Incentive Stock Option Plan

In May 2001, our board of directors adopted an incentive stock option plan in
which 250,000 shares of common stock were reserved for future issuance upon
exercise of options granted through May 15, 2003. The plan provides for grants
of nonqualified stock options to employees (excluding EVCI executive officers),
non-employee directors and others. Unless our board determines otherwise, the
option exercise price is the average closing price of the common stock on Nasdaq
for the five trading days prior to the grant of the option. Options vest and
become fully exercisable 90 days after the grant, until the first anniversary of
the date of grant, unless our board determines otherwise, provided the
participant is then an eligible employee of, or consultant to, EVCI or a related
entity. A total of 139,250 options were outstanding as of September 30, 2001,
all as a part of a voluntary salary reduction plan. These options are
exercisable at $1.00 per share.

                                       12
<PAGE>

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

The following information should be read in conjunction with Management's
Discussion and Analysis of Financial Condition and Results of Operations and the
financial statements and notes thereto for the year ended December 31, 2000,
included in our 10-KSB/A for the year ended December 31, 2000, and in
conjunction with the financial statements and notes thereto for the nine months
ended September 30, 2001 and 2000, included in Item 1 of this report. All
numbers that have been rounded are approximate. Excluded from the discussion are
all costs related to the discontinuation of our activities of delivering
synchronized courses using ISDN lines.

Third quarter developments

     o For the third quarter, EVCI lost approximately $1,225,000 from continuing
     operations. However, for September we had a pretax profit of approximately
     $225,000. This was our first profitable month.

     o Interboro

          o    It increased the enrollment at its Manhattan campus by more than
               10% over last fall's enrollment.

          o    It implemented programs designed to increase retention both
               during a semester and from semester to semester.

                                       13
<PAGE>

          o    In its first full semester of operation, beginning September
               2001, Interboro's Flushing facility enrolled over 200 full-time
               students and is expected to be profitable for the semester ending
               in December, 2001. Total enrollment increased from approximately
               950 to 1250 students, a 32% increase over the third quarter of
               2000.

(Degree) It obtained additional space on West 54th Street for its admissions
department.

     o    ICTS

          o    We closed, effective July 1, 2001, our acquisition of ICTS. For
               additional information regarding this acquisition and ICTS, see
               our Form 8-K dated July 1, 2001.

          o    It implemented aggressive cost cutting strategies, with
               particular emphasis on administrative and instructor costs as a
               percentage of revenue.

          o    It established a new marketing campaign that includes targeted
               direct mail, e-mail and newspaper advertising.

          o    It increased its focus on sales to corporations and government
               agencies.

          o    The United States Secret Service awarded ICTS and one of its
               instructors, a Certificate of Appreciation for outstanding
               teaching and for support provided to the agency in its efforts to
               upgrade its computer systems to Windows 2000.

                                       14
<PAGE>

    o   Impact of September 11, 2001

          o    Interboro has not been significantly impacted, principally
               because student tuition and other costs of attending Interboro
               are substantially paid out of Federal and New York State grants
               under the Pell and TAP programs and we were able to keep
               enrollment at its highest levels. In contrast, ICTS' enrollments
               were adversely affected. We believe this is primarily because
               ICTS' students do not receive government grants and, accordingly,
               must obtain the funds needed to take ICTS courses from their
               employers or from their own resources. ICTS enrollments and
               course attendance have improved over September levels but have
               not yet returned to pre-September 11, 2001 levels.

               We expect our campus education and training school revenues will
               continue to grow and anticipate reporting an operating profit for
               the fourth quarter of 2001.

     o Video Enhanced Communications

          Guided by a new division president, EVCI:

          o    Introduced and tested it's second-generation technology at 20
               revenue-producing client sites that were connected to EVCI's
               network.

          o    Reduced technology solution installations times from months to
               hours.

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<PAGE>

          o    Designed and enhanced network to allow for scalability to support
               150 client stations within 72 hours.

          o    Built redundancy into network so that none of our clients using
               the Internet on or subsequent to September 11 experienced outages
               of service at our New York City hub.

          o    Linked H. Lavity Stout Community College in Tortola, British
               Virgin Islands to our New York City hub.

     o Nasdaq

          o    Nasdaq advised us that it will continue listing EVCI's common
               shares because we had satisfactorily demonstrated compliance with
               Nasdaq's maintenance requirements.

     o Discontinued operations

          o    In the third quarter of 2001, we stopped delivering synchronous
               courses using ISDN lines because this activity has continued to
               be unprofitable. The equipment used by us for these activities,
               net of accumulated depreciation, is approximately $4 million at
               September 30, 2001. We accrued an additional $300,000 for costs
               related to these discontinued activities. Our decision was
               significantly influenced by Excite@home's inability to deliver
               the last mile DSL connectivity following the bankruptcy of
               Northpoint Communications. As a result, this segment's revenue,
               cost of sales and related expenses have been reclassified in the
               consolidated statement of operations and shown separately as a

                                       16
<PAGE>


               net amount under the caption "Loss from Discontinued Operations"
               for all periods presented.

Comparison of three months ended September 30, 2001 (third quarter of 2001) to
three months ended September 30, 2000 (third quarter of 2000)

Net revenues revenue for the third quarter of 2001 increased 155%, or
$2,901,000, to $4,776,000 from $1,875,000 for the third quarter of 2000. The
2001 quarter net revenue consisted of: EVCI, $103,000; Interboro, $2,212,000 and
ICTS, $2,461,000. The 2000 quarter net revenue was $1,875,000 for Interboro.
Interboro student course registrations increased to approximately 5,000 in the
third quarter of 2001 from 3,900 in the third quarter of 2000. This increase
included 800 student course registrations at Interboro's new extension campus in
Flushing, N.Y. Our Interboro revenue increased $336,000 over 2000, including
$280,000 of revenues from our Flushing campus. During the third quarter of 2001,
there were 2,305 students enrolled and taking courses at ICTS, which we acquired
effective July 1, 2001. EVCI third quarter revenue of $103,000 resulted from new
programs using technology solutions and services.

Other income increased to $62,000 for the third quarter of 2001 from $28,000 for
the third quarter of 2000. The difference was made up of $18,000 from
application fees charged by Interboro and $36,000 from registration fees charged
by ICTS. This was offset by a net of a loss of $20,000 from the outsourcing of
Interboro book sales.

Cost of sales increased by 305%, or $1,474,000, to $1,958,000 for the third
quarter of 2001 from $484,000 for the third quarter of 2000. This increase was
comprised of: Interboro, $691,000 and ICTS $1,267,000. In 2000, cost of sales
consisted of $484,000 from Interboro. The $207,000 increase at Interboro was

                                       17
<PAGE>

made up of Interboro-Flushing teaching related costs of $110,000 and
Interboro-Manhattan teaching costs of $97,000 due to its increase in student
enrollment. ICTS' cost of sales include book costs of $399,000, instructional
costs of $566,000, testing costs of $82,000 and $220,000 of other costs required
to register students. As a percentage of our net revenue, cost of sales at
Interboro was 31% and at ICTS, 51% for the third quarter of 2001 as compared to
26% at Interboro for the third quarter of 2000. The increased cost of sales at
Interboro relates to the staffing of Interboro-Flushing to prepare for the Fall
semester of 2001.

Salaries and benefits increased by $25,000, or 1.5%, to $1,642,000 for the third
quarter of 2001 from $1,617,000 for the third quarter of 2000. These costs were
comprised of: EVCI, $71,000; Interboro, $860,000 and ICTS, $711,000, in 2001, as
compared to EVCI, $881,000 and Interboro, $736,000, in 2000. The decrease at
EVCI was comprised of a reduction in staff from 58 to 12 persons that reduced
costs by $810,000. At Interboro, our increased payroll was $124,000, of which
$55,000 is related to administrative salaries and fringes at the Flushing
campus. ICTS had executive and administrative salaries and benefits of $711,000.
Our total number of employees at September 30, 2001 was 230: 12 at EVCI, 128 at
Interboro, consisting of 115 full-time in Manhattan and 13 full-time in
Flushing, and 90 at ICTS.

Marketing, brochures and student registrations costs increased to $581,000 for
the third quarter of 2001 from $168,000 for the third quarter of 2000. These
costs were comprised of: Interboro, $242,000 and ICTS, $339,000, in 2001, and of
$168,000 from Interboro in 2000. Marketing costs at Interboro increased $74,000,
as a result of marketing costs of $87,000 for Interboro's Flushing campus and a
$13,000 reduction in marketing costs at Interboro-Manhattan.

                                       18
<PAGE>


Professional fees increased $246,000 to $390,000 for the third quarter of 2001
from $144,000 for the third quarter of 2000, primarily as a result of the legal,
accounting and consulting fees related to potential acquisitions and financings,
SEC filings, our annual meeting of stockholders and our responses to the
Nasdaq's delisting notice.

Depreciation and amortization increased to $296,000 for the third quarter of
2001 from $120,000 for the third quarter of 2000. These costs are comprised of:
EVCI, $31,000; Interboro, $113,000 and ICTS, $152,000, in 2001 and EVCI, $30,000
and Interboro, $90,000 in 2000. Interboro's depreciation in 2001 includes
amortization of goodwill of $47,000 in 2001 and $60,000 in 2000. ICTS costs
includes the amortization of goodwill of $80,000.

Other expenses increased to $1,197,000 for the third quarter of 2001 from
$1,005,000 for the third quarter of 2000. These costs were comprised of: EVCI,
$327,000; Interboro, $529,000 and ICTS, 341,000, in 2001 and EVCI, $755,000 and
Interboro, $250,000 in 2000. Of the decrease at EVCI, $428,000 relates to lower
travel expenses, telephone and other general overhead items resulting from
reductions of staff. Of the increase at Interboro of $279,000, the Flushing
campus contributed $232,000, including $177,000 for rental of a portion of a
building in Flushing.

The loss from discontinued operations of $4,354,000 in the third quarter of 2001
consisted primarily of $4,312,000 for the disposal of EVCI related equipment and
related licenses, accruals for the termination of EVCI employees and other costs
related to the shutdown of our ISDN related activities.

                                       19
<PAGE>


Comparison of nine months ended September 30, 2001 (first nine months of 2001)
to the nine months ended September 30, 2000 (first nine months of 2000)

Net revenues for the first nine months of 2001 increased 71%, or $3,835,000, to
$9,242,000 from $5,408,000 for the first nine months of 2000. The 2001 net
revenue is comprised of: $166,000 at EVCI; $6,615,000 at Interboro and
$2,461,000 at ICTS. The 2000 net revenue is comprised of $5,408,000 at
Interboro. Interboro student course registrations increased to 11,500 for 2001
from 9,350 for 2000, resulting in additional revenue of $1,207,000. This
includes $441,000 from Interboro's Flushing campus. Our new video enhanced
communications activities generated $166,000 in the first nine months of 2001
from the roll out of pilot programs.

Other income increased to $99,000 for the first nine months of 2001 from $62,000
for the first nine months of 2000. The difference was made up of $30,000 from
application fees charged by Interboro and $37,000 from student fees collected by
ICTS and a decrease of $30,000 attributable to Interboro's outsourcing of book
sales.

Interest income decreased to $130,000 for first nine months of 2001 from
$148,000 for the first nine months of 2000 because we used more of the proceeds
from our Series B preferred financings to fund our operations.

Cost of sales increased by 136%, or $1,906,000, to $3,308,000 for the first nine
months of 2001 from $1,402,000 for the first nine months of 2000. Cost of sales
2001 consisted of: Interboro, $2,041,000 and ICTS of $1,267,000. In 2000 cost of
sales was comprised of $1,402,000 from Interboro. The increase at Interboro was
made up of the following: Interboro-Flushing teaching related costs of $178,000
and Interboro-Manhattan teaching costs of $401,000 due to wage increases and an

                                       20
<PAGE>


increase in instructors for additional students and a write-off of book
inventory of $60,000 due to outsourcing. ICTS cost of sales include book costs
of $399,000, instructional costs of $566,000, testing costs of $82,000 and other
costs required to register students of $210,000. As a percentage of our net
revenue, cost of sales was: Interboro, 31%; and ICTS, 52 % for the third quarter
of 2001 as compared to 26% from Interboro for the third quarter of 2000.

Salaries and benefits increased by 4%, or $174,000, to $4,579,000 for the first
nine months of 2001 from $4,405,000 for the first nine months of 2000. These
costs were comprised of: EVCI, $1,389,000; Interboro, $2,479,000 and ICTS,
$711,000, in 2001 and $2,423,000 at EVCI and $1,982,000 at Interboro in 2000.
The decrease at EVCI was comprised of a reduction in staff from 58 to 12 persons
resulting in a cost saving of $1,034,000. At Interboro, our payroll increased by
$497,000 of which $178,000 is related to administrative salaries and fringes at
our Flushing campus. ICTS had executive and administrative salaries and benefits
of $711,000. Our total number of employees at September 30, 2001 was 230: 12 at
EVCI, 128 at Interboro, made up of 115 full time personnel in Manhattan and 13
in Flushing, and 90 at ICTS.

Marketing, brochures and student registration costs increased by $388,000 to
$792,000 for the first nine months of 2001 from $404,000 for the first nine
months of 2000. These costs were comprised of: Interboro, $453,000 and ICTS
$339,000, in 2001, and Interboro $404,000 in 2000. Marketing costs at Interboro
increased by $49,000 as a result of a reduction in Manhattan of $71,000 and
additional $120,000 of marketing costs for its Flushing campus. ICTS incurred
$339,000 to market its specialized programs.

Professional fees and consulting fees increased to $899,000 for the first nine
months of 2001 from $540,000 for the first nine months of 2000, primarily as a
result of legal and accounting fees related to potential acquisitions and
fnancings, our annual meeting of stockholders and our responses to Nasdaq's
delisting notice.

                                       21
<PAGE>

Depreciation and amortization increased to $489,000 for the first nine months of
2001 from $273,000 for the first nine months of 2000. These costs are comprised
of: EVCI, $59,000; Interboro, $278,000 and ICTS, $152,000 in 2001 and EVCI,
$90,000 and Interboro $183,000, in 2000. Interboro's depreciation in 2001
includes amortization of goodwill of $144,000 in 2001 and $100,000 in 2000. ICTS
includes amortization of goodwill of $80,000.

Other expenses increased to $2,986,000 for the first nine months of 2001 from
$2,721,000 for the first nine months of 2000. These costs were comprised of:
EVCI, $1,435,000; Interboro, $1,210,000; and ICTS, 341,000 in 2001 and EVCI,
$2,051,000 and Interboro, $670,000 in 2000. Of the EVCI decrease of $616,000,
substantially all of the expenses were related to travel, telephone and other
general overhead items that were due to reduction of staff. Of the increase at
Interboro of $540,000, the Flushing campus of contributed $444,000, which
includes $348,000 for rental of a portion of a building in Flushing.

Loss on investments of $95,000 for the nine months ended September 30, 2000
relates to Visiocom USA.

Liquidity and capital resources

Equipment. Capital expenditures for the first nine months of 2001 were $802,088
compared to $2,293,484 for the first nine months of 2000. In 2001, we upgraded
equipment used by Interboro.

                                       22
<PAGE>

Cash Flow. We anticipate, based on current plans and assumptions relating to our
current operations, that our cash flow will be sufficient to satisfy our cash
requirements at least until December 31, 2002. In addition to significant
reductions in staff and other cost reductions made in the first nine months of
2001, we are working to reduce other expenses that do not adversely impact our
business prospects. If we are underestimating the cash requirements of our
current level of operations, we may require additional debt or equity financing
before December 31, 2002. There can be no assurance that any required debt or
equity financing will be available on acceptable terms.

Stock Repurchase. In October, 2001, we repurchased 22,800 shares of our common
stock from a total of $32, 604.

Financing. We are seeking additional financing to grow our business
segments.

Forward-looking statements and risk factors

This Form 10-QSB contains forward-looking statements that involve assumptions,
risks and uncertainties. The words "anticipates," "estimates," "believes,"
"expects," "will," "could," "may," "plans," and similar words are intended to
identify forward-looking statements. Our actual results could differ materially
from those anticipated in these forward-looking statements as a result of
certain factors, including:

     o    if we cannot significantly increase revenues to offset our continuing
          losses, we may not to be able to achieve profitability;

     o    general economic conditions may adversely affect our ability to
          achieve profitability;

     o    our continued negative cash flow could materially impede our ability
          to operate;

                                       23
<PAGE>


     o    our success may depend on our ability to obtain substantial additional
          financing in order to operate and grow, including by acquisition;

     o    our greater emphasis on campus education and training may not enable
          us to achieve profitability;

     o    our acquisition of ICTS may be more of a burden than benefit to us as
          we continue to develop and implement our plan to turn it around;

     o    our plans to continue to grow our campus education and training
          segment by acquisition may be impeded by our inability to identify and
          pay for acquisition candidates;

     o    payment for acquisitions with our stock could substantially dilute our
          current stockholders;

     o    any acquisitions made by us may not add positively to our profits or
          cash flow, particularly if a turnaround is required;

     o    our enhanced video communication segment is dependent on third parties
          who may not be able to provide the required services or products in a
          timely manner;

     o    our video enhanced communications segment may not generate any
          significant revenues or profits;

     o    our video transmission technology may not provide a short or long term
          competitive advantage;

     o    demand for our technology solutions and services may not increase
          rapidly if training and education via live interactive video
          conferencing does not become widely accepted;

     o    other video communications companies may enter the market and the
          increased competition may negatively impact our ability to be
          profitable;

                                       24
<PAGE>


     o    ICTS current cash requirements could impair EVCI's other operations
          and plans for growth;

     o    we depend on our chairman, president and other key management to
          operate and grow;

     o    Interboro Institute, is subject to extensive Federal and New York
          State regulation because it depends on substantial federal and state
          funds in order to operate;

     o    ICTS is subject to extensive federal and state regulations in
          Virginia, Maryland and Georgia;

     o    Interboro Institute's prior problems with regulators could recur and
          adversely affect its operations;

     o    other acquisitions by us may subject our operations to further
          regulatory burdens;

     o    our common stock price will be adversely affected if we fail to comply
          with Nasdaq listing requirements and, as a result, our common stock is
          delisted from the Nasdaq SmallCap Market; and

     o    the other specific risk factors included in our filings with the SEC,
          including our most current Form 10-KSB/A

     Should any of these or other risks and uncertainties materialize, or should
     underlying assumptions prove incorrect, actual results may vary materially
     from those anticipated by forward-looking statements. We undertake no
     obligation to update forward-looking statements.

                                       25
<PAGE>



                                     PART II
                                OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

(a)      The following exhibit is filed as a part of this report:

         Exhibit No.        Description of Exhibit

          3.6(b)      --    Certificate of Amendment to the Certificate of
                            Incorporation of the Registrant


(b)      Information regarding reports on Form 8-K that were filed by EVCI
         during the quarter ended September 30, 2001, and the Items reported on,
         follows:


         Form 8-K, dated July 16, 2001, covering Items 2 and 7 (without
         financial statements) as amended by amendment dated September 13, 2001,
         covering Item 7 and including the following financial statements:

          o    Educational Video Conferencing, Inc. Pro Forma Consolidated
               Balance Sheet as of June 30, 2001 (unaudited)

          o    Educational Video Conferencing, Inc. Pro Forma Consolidated
               Statement of Operations for the six months ended June 30, 2001
               (unaudited)

          o    Educational Video Conferencing, Inc. Pro Forma Consolidated
               Statement of Operations for the year ended December 31, 2000
               (unaudited)

          o    ICTS, Inc. Statement of Operations for the six months ended June
               30, 2001 and 2000 (unaudited)

          o    ICTS, Inc. Financial Statements for the year ended December 31,
               2000 and 1999

                                       26
<PAGE>



                                   SIGNATURES


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

Dated:  November 14, 2001

                          EDUCATIONAL VIDEO CONFERENCING, INC.

                           By:   /s/  Richard Goldenberg
                                 -------------------------------------------
                                 Richard Goldenberg
                                 Chief Financial Officer
                                 (Principal Financial and Accounting Officer)


                                       27