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, 2002

( ) 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



                        EVCI Career Colleges Incorporated
           (Exact name of small business as specified in its charter)

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

               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: 5,398,191 shares of Common
Stock as of November 1, 2002.


<PAGE>


                                Table of Contents
                                     Part I
                              Financial Information

Item 1. Financial Statements                                               Page

Consolidated Balance Sheet as of September 30, 2002 (unaudited), and
as of December 31, 2001 (audited)...........................................   1

Consolidated Statement of Operations for the three and nine month periods
ended September 30, 2002 (unaudited) and September 30, 2001 (unaudited).....   2

Consolidated Statement of Cash Flows for the nine month periods ended
September 30, 2002 (unaudited) and September 30, 2001 (unaudited)...........   3

Notes to Consolidated Financial Statements..................................   4

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

Third Quarter Developments..................................................   8

Comparison of the three month periods ended
September 30, 2002 and September 30, 2001...................................   9

Comparison of the nine month periods ended
September 30, 2002 and September 30, 2001...................................  11

Seasonality.................................................................  13

Liquidity and Capital Resources.............................................  13

Forward-Looking Statements and Risk Factors.................................  14

Item 3. Controls and Procedures.............................................  15

                                     Part II

                                Other Information

Item 1. Legal Proceedings...................................................  16

Item 6. Exhibits and Reports on form 8-K....................................  16

Signatures..................................................................  18



<PAGE>



               EVCI CAREER COLLEGES INCORPORATED AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET



<TABLE>
<CAPTION>


                                                                                 September 30, 2002       December 31, 2001
                                                                                 ------------------       -----------------
                                   Assets                                            (unaudited)              (audited)
<S>                                                                                         <C>             <C>
Current assets:
     Cash and cash equivalents .................................................   $    838,953             $  2,342,282
     Accounts receivable, net of allowance for doubtful
       accounts of $50,000  and $350,000 respectively ..........................      6,575,391                1,403,501
     Accounts receivable other .................................................             --                   34,585
     Note receivable ...........................................................        100,000                       --
     Prepaid expenses and other current assets .................................        601,281                  105,109
     Assets held for resale ....................................................         74,920                  261,000
                                                                                   ------------             ------------
Total current assets ...........................................................      8,190,545                4,146,477
Property and equipment, net.....................................................      1,392,065                1,020,569
Restricted certificate of deposit ..............................................        250,000                       --
Intangible assets, net..........................................................         43,515                   30,244
Goodwill .......................................................................      2,200,026                1,602,210
Other assets ...................................................................        225,532                  186,100
Assets from discontinued operations ............................................             --                6,067,746
                                                                                   ------------             ------------
Total assets ...................................................................   $ 12,301,683             $ 13,053,346
                                                                                   ============             ============
                    Liabilities and Stockholders' Equity
Current liabilities:
     Accounts payable and accrued expenses .....................................   $  1,458,891             $    715,060
     Deferred revenue ..........................................................      4,953,893                1,252,300
     Accrued costs relating to discontinued operations .........................        150,000                  141,123
     Note payable ..............................................................        910,000                       --
     Accrued purchase price payable for Interboro ..............................        250,000                  206,000
     Current portion of capitalized lease obligations ..........................         54,884                   18,107
                                                                                   ------------             ------------
Total current liabilities ......................................................      7,777,668                2,332,590
     Accrued purchase price payable for Interboro, net of current portion ......      1,169,253                  745,994
     Capital lease obligations, net of current portion .........................        190,692                    8,419
     Note payable ..............................................................        550,000                  910,000
     Liabilities from discontinued operations ..................................             --                5,414,886
                                                                                   ------------             ------------
     Total liabilities .........................................................      9,687,613                9,411,889
Stockholders' equity:
Preferred stock-$.001 par value: authorized 1,000,000 shares:
     Series B 7% Convertible Preferred Stock -- $100 stated value;
     200,000 shares designated series B; issued and outstanding
     130,000 shares ............................................................     12,760,822               12,760,422
     Series C 8% Convertible Preferred Stock-$100 stated value:
     20,000 shares designated series C; issued and outstanding
     -0- and 1,300 shares, respectively ........................................             --                  130,000
Common stock - $.0001 par value; authorized 20,000,000 shares, issued
     5,398,191 and 4,440,996 shares, respectively; outstanding
     5,308,826 and 4,440,996 shares, respectively ..............................            541                      450
Additional paid-in capital .....................................................     23,580,753               22,489,935
Accumulated deficit ............................................................    (33,579,577)             (31,477,790)
Treasury stock-at cost: 89,365 and 51,965 shares, respectively .................       (148,469)                 (82,580)
                                                                                   ------------             ------------
Stockholders' equity ...........................................................      2,614,070                3,641,457
                                                                                   ------------             ------------
Total liabilities and stockholders' equity .....................................   $ 12,301,683             $ 13,053,346
                                                                                   ============             ============
</TABLE>

                 See Notes to Consolidated Financial Statements
<PAGE>
<TABLE>
<CAPTION>




               EVCI CAREER COLLEGES INCORPORATED AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (unaudited)

                                                     Three Months Ended              Nine Months Ended
                                                        September 30,                  September 30,
                                                ----------------------------    ----------------------------
                                                     2002           2001           2002            2001
                                                ------------    ------------    ------------    ------------
<S>                                             <C>             <C>             <C>             <C>
Net revenue .................................   $  3,081,485    $  2,314,057    $ 10,253,271    $  6,780,697

Other income ................................         57,944          25,486         138,446          62,713
                                                ------------    ------------    ------------    ------------
Total revenue ...............................      3,139,429       2,339,543      10,391,717       6,843,410
                                                ------------    ------------    ------------    ------------
Operating expenses:
Cost of sales ...............................        796,339         690,674       2,420,834       2,040,641
Selling, general and administrative .........      2,893,954       2,571,509       7,976,432       8,212,151
                                                ------------    ------------    ------------    ------------
Total operating expenses ....................      3,690,293       3,262,183      10,397,266      10,252,792
                                                ------------    ------------    ------------    ------------
Loss from operations ........................       (550,864)       (922,640)         (5,549)     (3,409,382)

Other income (expense):
Interest expense ............................        (66,029)         (1,380)        (97,931)         (4,089)
Interest income .............................          7,320          24,879          15,727         127,977
                                                ------------    ------------    ------------    ------------
Loss from continuing operations .............       (609,573)       (899,141)        (87,753)     (3,285,494)
                                                ------------    ------------    ------------    ------------
Discontinued operations:
    Loss from discontinued operations........       (194,387)       (370,688)       (167,334)     (1,280,003)
    Loss from disposal of discontinued
    operations ..............................     (1,327,891)     (4,312,462)     (1,327,891)     (4,312,462)
                                                ------------    ------------    ------------    ------------
Loss from discontinued operations ...........     (1,522,278)     (4,683,150)     (1,495,225)     (5,592,465)
                                                ------------    ------------    ------------    ------------
Loss before provision/(benefit) for income
    taxes ...................................     (2,131,851)     (5,582,291)     (1,582,978)     (8,877,959)
Provision/(benefit) for income taxes ........        (64,861)         46,787          97,717         135,787
                                                ------------    ------------    ------------    ------------
Loss before cumulative effect of accounting
    change ..................................     (2,066,990)     (5,629,078)     (1,680,695)     (9,013,746)
Cumulative effect of accounting change ......             --              --        (232,378)             --
                                                ------------    ------------    ------------    ------------
Net loss ....................................     (2,066,990)     (5,629,078)     (1,913,073)     (9,013,746)
Accreted value of series B preferred stock ..        (59,793)        (59,794)       (179,380)       (179,382)
Undeclared dividends on series B preferred
    stock ...................................       (227,500)       (208,745)       (682,500)       (663,945)
Dividends on series C preferred stock .......             --              --          (6,253)             --
Accreted value of series C preferred stock ..             --              --          (3,081)             --
                                                ------------    ------------    ------------    ------------
Net loss available to common stockholders ...   $ (2,354,283)   $ (5,897,617)   $ (2,784,287)   $ (9,857,073)
                                                ============    ============    ============    ============

Basic and diluted loss per common share:

      Loss from continuing operations .......   ($      0.16)   ($      0.27)   ($      0.22)   ($      0.94)
      Loss from discontinued operations .....   ($      0.31)   ($      1.04)   ($      0.32)   ($      1.25)
      Cumulative effect of accounting change.             --              --    ($      0.05)             --
                                                ------------    ------------    ------------    ------------
Net loss available to common stockholders ...   ($      0.47)   ($      1.31)   ($      0.59)   ($      2.19)
                                                ============    ============    ============    ============
Weighted average number of common shares
outstanding-basic and diluted ...............      4,971,365       4,492,961       4,728,672       4,492,961
                                                ============    ============    ============    ============

</TABLE>

                 See Notes to Consolidated Financial Statements

                                       2
<PAGE>


               EVCI CAREER COLLEGES INCORPORATED AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                        Nine Months Ended September 30,
                                                                        -------------------------------
                                                                             2002            2001
                                                                        --------------  ---------------
<S>                                                                     <C>            <C>
Cash flows from operating activities:
Net loss ............................................................   $(1,913,073)   $(9,013,747)
Adjustments to reconcile net loss to net cash used in operating
activities:
Loss on disposal of discontinued operations .........................     1,327,891      4,312,460
Cumulative effect of accounting change ..............................       232,378             --
Depreciation ........................................................       568,893        870,345
Loss on disposal of assets ..........................................         8,841             --
Amortization of intangibles .........................................        13,912        223,966
Amortization of licensing agreement .................................            --         25,000
Deferred rent .......................................................       (29,716)        58,432
Allowance for doubtful accounts .....................................       300,000        600,000
Shares issued for consulting services ...............................        18,900             --
Non-cash interest and finance charges ...............................        27,415             --
Increase in accounts receivable .....................................    (5,246,109)    (3,521,888)
Decrease in accounts receivable other ...............................        34,585             --
Increase (decrease) in prepaid expenses and other current assets ....      (403,222)       293,407
Increase in other assets ............................................       (79,755)      (144,119)
Increase (decrease) in accounts payable and accrued
expenses ............................................................     1,219,201       (125,538)
Increase in deferred revenue ........................................     2,060,410      3,035,660
Increase (decrease) in accrued purchase price of Interboro ..........      (207,741)       174,118
Increase in accrued costs related to discontinued operations ........         8,877             --
                                                                        -----------    -----------
Net cash used in operating activities ...............................    (2,058,313)    (3,211,904)
                                                                        -----------    -----------
Cash flows used in investing activities:
Purchase of ICTS and Interboro, net of cash required ................            --       (713,194)
Proceeds from assets held for resale ................................         6,323             --
Investment in restricted certificate of deposit .....................      (250,000)            --
Purchase of equipment ...............................................      (383,695)      (802,088)
Cash advanced for note receivable ...................................      (100,000)            --
                                                                        -----------    -----------
Net cash used in investing activities ...............................      (727,372)    (1,515,282)
                                                                        -----------    -----------
Cash flows from financing activities:
Principal payments under capital lease obligations ..................      (212,159)       (85,607)
Net proceeds from issuance of preferred stock-series C ..............       425,764             --
Net proceeds from note payable ......................................       550,000             --
Net proceeds from issuance of convertible promissory notes ..........       485,750             --
Purchase of treasury stock ..........................................       (65,889)            --
                                                                        -----------    -----------
Net cash provided by (used in) financing activities .................     1,183,466        (85,607)
                                                                        -----------    -----------
Net decrease in cash and cash equivalents ...........................    (1,602,219)    (4,812,793)
Cash and cash equivalents at beginning of period ....................     2,441,172      6,332,934
                                                                        -----------    -----------
Cash and cash equivalents at end of period ..........................   $   838,953    $ 1,520,141
                                                                        ===========    ===========
Supplemental schedule of cash flow information:
Cash paid during the period for:
Interest ............................................................   $    23,119    $    33,499
Taxes ...............................................................   $    20,743    $    46,900
Property and equipment transferred from held for resale to operations   $   169,755             --
Supplemental schedules of noncash investing and financing activities:
Capital lease obligations incurred ..................................   $   251,740             --
Conversion of convertible promissory notes to common stock ..........   $   498,750             --
</TABLE>


                 See Notes to Consolidated Financial Statements

                                        3

<PAGE>



Notes to Consolidated Financial Statements

Note 1 - Business and Basis of Presentation

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

We provide on-campus education and training through Interboro. Interboro is a
two-year college that offers degree programs leading to the Associate of
Occupational Studies degree and has a main campus in Manhattan and an extension
center in Flushing, New York. In addition, Interboro opened two new extension
sites on September 30, 2002. One is in the Washington Heights section of
Manhattan, New York City and the other is in Yonkers, New York. We acquired
Interboro in January 2000.

On September 30, 2002, the board of directors of ICTS decided to discontinue
ICTS' operations. It had become apparent that ICTS sales targets could not be
met for the foreseeable future and EVCI was not willing to continue funding
ICTS' cash deficits, after having advanced approximately $2,200,000 to ICTS. As
a result, ICTS' 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 captions "Loss from discontinued operations" and "Loss
from disposal of discontinued operations" for 2001 and 2002.

Our multi-point video conferencing technology and services are being used on a
limited basis to support an existing customer.

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, 2001.

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,
2001 and for the year then ended, and the notes thereto, in our 10-KSB for the
year ended December 31, 2001.

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
for periods presented since the effect would be antidilutive.

                                       4
<PAGE>

Note 3- Revenue Recognition

We recognize our income ratably over the semester in which courses are given and
as services are performed. The total deferred revenue at September 30, 2002 was
$4,953,893. This includes $4,313,897 that will be recorded as revenue in the
fourth quarter of 2002 for the Interboro-Manhattan and Interboro-Flushing
semester that began in September 2002 and ends in December 2002. Also included
is $639,996 of deferred revenue for Interboro-Washington Heights and
Interboro-Yonkers. $535,000 of this revenue will be recorded in the fourth
quarter of 2002 and the remainder will be recorded in January 2003.

Note 4-Converted Notes

In July 2002, we received proceeds of $498,750 from the issuance of convertible
promissory notes and warrants. In September 2002, the notes were converted into
475,000 shares of our common stock at $1.05 per share, the fair value of our
common stock when the notes were issued. The warrants are exercisable, until
March 2005, for 475,000 shares of our common stock at $1.05 per share, subject
to adjustment. A value of $22,619 has been allocated to the warrants and has
been recognized as additional interest expense on the notes. The costs related
to this transaction were approximately $13,000. In addition, 2,360 shares of the
Company's common stock were issued in lieu of cash as interest on the notes.

Note 5 - Preferred Stock

In November 2001, we designated 20,000 shares of authorized preferred stock as
Series C 8% convertible preferred stock. From November 2001 to March 2002, we
received gross proceeds of $623,000 from the issuance of 6,230 shares of Series
C preferred stock and related five-year warrants. In April 2002, the Series C
preferred was converted into 409,870 shares of our common stock at $1.52 per
share. The warrants are exercisable for 77,879 shares of our common stock at
$2.00 per share, subject to adjustment. A value of approximately $19,000 was
assigned to these warrants. The costs related to this transaction were
approximately $100,000.

Our 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
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. As a result of our issuance of additional common stock
for less than $6.75 per share and common stock purchase warrants that are
exercisable below $6.75 per share, the conversion price has been adjusted to
$5.24 as of September 5, 2002.

As permitted by the terms of the Series B preferred, our board of directors did
not declare the quarterly dividend of $249,315, for our quarter ended December
31, 2001, and the three quarterly dividends of $227,500 each for the quarters
ended March 31, June 30, and September 30, 2002.

Note 6-Notes Payable

In August 2001, our Series B preferred stockholders consented to an amendment of
EVCI's certificate of incorporation, which permitted us to reclassify the Series
B stock as permanent equity. Additionally, the Series B preferred stockholders
waived their right to receive payment of previously undeclared dividends on

                                       5
<PAGE>

their shares. In consideration, we issued a 5% interest-bearing promissory note
in the amount of $910,000. The promissory note is payable on September 22, 2003
and is secured by the common stock of Interboro. Furthermore, Interboro has
guaranteed payment of the note and has secured its guarantee by granting a first
lien on its assets that is subordinate to certain future creditors.

In July 2002, we received $550,000 for a promissory note at 10% interest for 36
months. This note is secured by a letter of credit in the amount of $250,000,
which is secured by a certificate of deposit of $250,000. In addition the holder
received 50,000 warrants to purchase our common stock at $1.50 per common share.
The value of the warrants, $2,500, has been recognized as additional interest
expense.

Note 7 - 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.

Note 8 - Note Receivable

This consists of a note that was issued by JIA, Inc., a provider of an
integrated suite of software solutions for global direct selling companies. The
note was issued to evidence our loan made in the third quarter of 2002. The note
is due September 30, 2003 and bears interest at 8% per annum. The note is
convertible into shares of JIA common stock. We were also issued warrants to
purchase 25,000 or 30,000 shares (based on JIA's earnings) of JIA's common stock
at $1.00 per share, subject to adjustment. No value has been assigned to the
warrants. We gave JIA the right to market EVCI's e-learning content and to be
issued warrants to purchase EVCI's common stock if JIA purchases more than
$2,000,000 of EVCI's e-learning content by September 30, 2003. Through September
30, 2002, JIA had not purchased any e-learning content from EVCI.

Note 9 - 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 September 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. We adopted SFAS 142 as of January 2002. Upon adoption of SFAS 142, we
recorded a one-time non-cash charge of approximately $232,000 to reduce the
carrying value of our goodwill on ICTS. This charge is non-operational in nature
and is reflected as a cumulative effect of an accounting change in EVCI's
consolidated statement of operations.

SFAS 142 requires the disclosure of net income and earnings per share computed
on a proforma basis by reversing the goodwill amortized in the periods
presented. Such proforma disclosures are required in the period of adoption and
thereafter until all periods presented reflect goodwill accounted for with SFAS

                                       6

<PAGE>

142. Had SFAS 142 been in effect prior to January 1, 2002 our reported net
profit/(loss) for the three and nine months ended September 30, 2001 would have
been as follows:
<TABLE>
<CAPTION>
                                               Quarter Ended        Nine Months Ended
                                             September 30, 2001     September 30, 2001
                                          --------------------------------------------
<S>                                              <C>              <C>
Reported net loss                                $  (5,629,078)   $  (9,013,746)
Addback: Goodwill amortization                          46,987          144,150
                                                 -------------    -------------
Adjusted net loss                                $  (5,582,091)   $  (8,869,596)
                                                 =============    =============

Basic and diluted earnings (loss) per share:
Reported net loss per share                      $       (1.31)   $       (2.19)
Addback: Goodwill amortization                   $        0.01    $        0.03
                                                 -------------    -------------
Adjusted net loss                                $       (1.30)   $       (2.16)
                                                 =============    =============

</TABLE>

Note 10 - Discontinued Operations

In 2001, we stopped delivering synchronous courses using ISDN lines because this
activity was unprofitable. 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 2001. Sales for the three and nine month periods
ended September 30, 2001 from our ISDN discontinued operations were $0 and
$203,879. The loss from our ISDN discontinued operations was $41,272 and
$950,587 for the three and nine months ended September 30, 2001.

On September 30, 2002, the board of directors of ICTS decided to discontinue
ICTS' operations. It had become apparent that ICTS sales targets could not be
met for the foreseeable future and EVCI was not willing to continue funding
ICTS' cash deficits, after having advanced approximately $2,200,000 to ICTS. 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 captions "Loss from discontinued operations" and "Loss
from disposal of discontinued operations" for 2001 and 2002. ICTS' sales for the
three month periods ended September 30, 2001 and 2002, and for the nine month
period ended September 30, 2002 were $2,461,000, $1,567,000 and $5,600,000. We
acquired ICTS in July 2001.

                                       7
<PAGE>


Note 11 - Purchase Price Payable for Interboro

On January 14, 2000, EVCI through its wholly owned subsidiary, Interboro Holding
Inc., acquired the outstanding shares of Interboro for $672,500 plus 50% of
Interboro's earnings before interest, taxes, debt and amortization ("EBITDA")
for the three years ending December 31, 2001, 2002, and 2003. The $672,500 is
payable out of 20% of EBITDA each year. We have offset the $162,000 payable in
2002 (which equals 20% of 2001 EBITDA), by approximately $137,000 for claims we
have for undisclosed liabilities. For the year ended December 31, 2001, 50% of
EBITDA was approximately $405,000 and has been accrued. For the nine months
ended September 30, 2002, an additional $675,000 of the 50% of the EBITDA
portion of the purchase price has been accrued and reflected as an increase in
goodwill and other intangible assets. Through September 30, 2002, we have paid
approximately $207,000 and accrued approximately $1,420,000 of purchase price.
Portions of the 50% EBITDA are payable out of subsequent years' EBITDA or in
future installment payments. Legal proceedings regarding our calculation of
EBITDA are described in Item 1 of Part II of this report.


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 included in our 10-KSB for the year ended
December 31, 2001, and in conjunction with the financial statements and notes
thereto for the three and nine months ended September 30, 2002 and 2001,
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 and ICTS, which specialized in IT courses and programs. References in the
discussion to EVCI mean our general corporate and multi-point video conferencing
activities.

We use the following methodology to determine the number of full-time students
and student course registrations that are referred to below. For each semester,
we take a head count of Interboro's enrollees, generally about two weeks after a
semester begins. We assume that 90% of this head count are full-time students
who will pay full tuition for the semester. The resulting number of students is
what we mean when we refer to full-time students. Interboro's full-time students
take an average of five courses. Accordingly, we multiply five times our assumed
number of full-time students to determine the total number of student course
registrations.

Third quarter developments

         Interboro

               o    Increased Interboro-Manhattan's full-time students for the
                    fall to approximately 1,090, or 5,450 student course
                    registrations, from 840 full-time students, or 4,200 student
                    course registrations, for fall 2001. This represents a 30%
                    increase.

               o    Increased Interboro-Manhattan's full-time students for the
                    summer to approximately 675, or 3,375 student course
                    registrations, from 575 full-time students, or 2,875 student
                    course registrations, for summer 2001. This represents a 17%
                    increase.

               o    Increased Interboro-Flushing's full-time students for the
                    fall to approximately 440, or 2,200 student course
                    registrations, from 160 full-time students, or 800 student
                    course registrations, for fall 2001. This represents a 175%
                    increase.

                                       8
<PAGE>

               o    Increased Interboro-Flushing's full-time students for the
                    summer to approximately 270, or 1,350 student course
                    registrations, from 25 full-time students, or 125 student
                    course registrations, for summer 2001. This represents a
                    116% increase.

               o    Opened a new extension site in Washington Heights with
                    classes beginning on September 30, 2002. We are in the
                    process of enrolling approximately 175 students. This campus
                    has a current capacity for 330 full-time students.

               o    Opened a new extension site in Yonkers with classes
                    beginning on September 30, 2002. We are in the process of
                    enrolling approximately 45 students. This campus has a
                    current capacity for 100 full-time students.

               o    Was served with a National Labor Relations Board petition
                    from Local 153 of the Office and Professional International
                    Employees Union seeking to represent approximately 83 of
                    Interboro's 200 full and part-time personnel. On October 25,
                    2002, the union was elected as their collective bargaining
                    agent by a vote of 45 to 32. The negotiation of an agreement
                    with Local 153 is expected to start in the fourth quarter of
                    2002.

         ICTS

               o    Information regarding the discontinuation of ICTS'
                    operations and the subsequent sale of ICTS shortly
                    thereafter is disclosed in our Form 8-K, filed November 5,
                    2002, including the press release issued by us on October 8,
                    2002 and filed as Exhibit 99.1 to that report.



Comparison of three months ended September 30, 2002 (third quarter 2002) to
three months ended September 30, 2001 (third quarter 2001)

Net revenues for third quarter 2002 increased 33%, or $767,000 to $3,081,000
from $2,314,000 for the third quarter 2001. The 2002 quarter net revenue is
comprised of: $2,340,000 at Interboro-Manhattan, $739,000 at Interboro-Flushing
and $2,000 at EVCI. The 2001 third quarter net revenue is comprised of
$1,932,000 at Interboro-Manhattan, $280,000 at Interboro-Flushing and $102,000
at EVCI. Interboro student course registrations increased to approximately 7,675
for the third quarter 2002 from 5,000 for the third quarter 2001. The 2002
student course registrations were 5,450 at Interboro-Manhattan and 2,200 at
Interboro-Flushing. The 2001 student course registrations were 4,200 at
Interboro-Manhattan and 800 at Interboro-Flushing.

Other income increased by $33,000 to $58,000 for the third quarter 2002 from
$25,000 for the third quarter 2001. The difference was attributable to
application fees charged by Interboro.

Cost of sales increased by 15%, or $105,000, to $796,000 for the third quarter
2002 from $691,000 for the third quarter 2001. The 2002 quarter cost is made up
of: Interboro-Manhattan $570,000, Interboro-Flushing, $142,000 and EVCI $84,000.
The 2001 quarter cost consists of $580,000 at Interboro-Manhattan and $111,000
at Interboro-Flushing. The 2002 quarter increase at EVCI is comprised of $84,000
of video enhanced communication costs. The net increase at Interboro was due to
additional support staff, adjunct professors and full time instructors to
support the growth at Interboro. As a percentage of our net revenue, Interboro's

                                       9
<PAGE>

cost of sales was: 23% for quarter 2002, as compared to 31% for quarter 2001.
The improvement is mostly due to increases in student enrollment and retention.

Salaries and benefits increased by 24%, or $242,000, to $1,234,000 for the third
quarter 2002 from $992,000 for the third quarter 2001. These costs consist of:
Interboro-Manhattan, $666,000, Interboro-Flushing, $106,000 and $462,000 EVCI in
the third quarter 2002, compared to $565,000 at Interboro-Manhattan and $55,000
at Interboro-Flushing and $372,000 at EVCI in the third quarter 2001. The
increase of $90,000 at EVCI was primarily due to, one new controller for ICTS, a
technical engineer for our communications department, and an enrollment
supervisor for our new extension sites in Washington Heights and Yonkers. The
Interboro-Manhattan payroll increased by $101,000 and the Interboro-Flushing
payroll increased by $51,000. The EVCI full time employees were 14 at September
2002 and 13 as of September 2001. At September 30, 2002, Interboro had 133 full
time employees, 119 at Interboro-Manhattan and 14 at Interboro-Flushing.

Marketing, brochures and student registration costs increased by 58%, or
$141,000, to $383,000 for the third quarter 2002 from $242,000 for third quarter
2001. These costs for quarter 2002 consist of: $242,00 at Interboro-Manhattan
and $141,000 at Interboro-Flushing as compared to $155,000 at
Interboro-Manhattan and $87,000 at Interboro-Flushing, for the third quarter
2001. The increase in marketing costs was primarily related to additional
subway, radio and newspaper advertisements for these extension sites.

Professional fees and consulting fees decreased by $124,000 to $214,000 for the
third quarter 2002 from $338,000 for the third quarter 2001, as a result of
reduced professional fees at EVCI of $93,000 and at Interboro of $31,000.

Depreciation and amortization decreased to $133,000 for the third quarter 2002
from $144,000 for the third quarter 2001. These costs consist of: EVCI, $40,000,
Interboro-Manhattan, $55,000, and Interboro-Flushing, $38,000 in the third
quarter 2002, and EVCI, $31,000, Interboro-Manhattan, $86,000, and Interboro
Interboro-Flushing $27,000 in the third quarter 2001. Interboro-Manhattan
included amortization of goodwill of $51,000 in quarter 2001.

Non cash consulting expense for the third quarter of 2002 of $19,000 resulted
from our issuance of 18,000 shares of common stock for financial advisory
services.

Other expenses increased by $56,000 to $912,000 for the third quarter 2002 from
$856,000 for the third quarter 2001. These costs are comprised of: EVCI,
$318,000 Interboro-Manhattan, $414,000 and Interboro-Flushing, $180,000 in the
third quarter 2002, versus EVCI, $327,000, Interboro-Manhattan, $297,000 and
Interboro-Flushing, $232,000 in the third quarter 2001. At EVCI, the net
decrease of $9,000 is primarily due to a $9,000 reduction in leased premises, a
$31,000 reduction in investor relations costs and a $10,000 reduction in travel
related expenses, which is offset by an increase in insurance costs of $22,000,
an increase of $11,000 related to communication costs and an increase of $8,000
to general overhead items. The increase at Interboro-Manhattan of $117,000 is
made up of $74,000 of rent for additional classroom space, and an increase of
$10,000 for office supplies and $33,000 of general overhead items to support the
growth of the Manhattan campus. The decrease in Interboro-Flushing of $52,000
relates to one-time expenses, related to its start up costs that were expensed
in the third quarter of 2001.

Interest income decreased by $18,000 to $7,000 for the third quarter 2002 from
$25,000 for the third quarter 2001, because we were using our working capital to
fund our growth at Interboro and fund our loss and working capital deficit at
ICTS.

                                       10

<PAGE>

Interest and financing costs increased to $66,000 in the third quarter 2002 from
$1,000 in the third quarter 2001. The interest consists of $11,000 of interest
due on our $910,000 promissory note payable to the Series B preferred holders,
interest expense on leased equipment of $25,000, as well as financing costs of
$30,000 related to our note financings in July 2002.

Pre-tax loss from continuing operations for the third quarter 2002 was $607,000
as compared to a loss of $899,000 for the third quarter 2001. Our net loss for
quarter 2002 consists of net loss at Interboro of $65,000 and a net loss of
$542,000 at EVCI. Our net loss for the three months ended September 30, 2001
consists of a net loss at EVCI of $634,000 and a net loss at Interboro of
$265,000.

Comparison of nine months ended September 30, 2002 (first nine months 2002) to
nine months ended September 30, 2001 (first nine months 2001)

Net revenues for the nine months ended September 30, 2002 increased 51%, or
$3,472,000, to $10,253,000 from $6,781,000 for the nine months ended September
30, 2001. The first nine months 2002 net revenue is comprised of: $7,658,000 at
Interboro-Manhattan, $2,528,000 at Interboro-Flushing and $67,000 at EVCI. The
first nine months 2001 net revenue is comprised of $6,174,000 at
Interboro-Manhattan, $441,000 at Interboro-Flushing and $166,000 at EVCI.
Interboro student course registrations increased to 19,465 for the first nine
months 2002 from 11,500 for the first nine months 2001. The 2002 registrations
are comprised of 14,410 from Interboro-Manhattan and 5,055 from
Interboro-Flushing. The 2001 registrations are comprised of 10,575 from
Interboro-Manhattan and 975 from Interboro-Flushing.

Other income increased by $75,000 to $138,000 for the nine months ended 2002
from $63,000 for the nine months ended 2001. This difference is made up of
application fees charged by Interboro.

Cost of sales increased by 19%, or $380,000, to $2,421,000 for the first nine
months ended September 30, 2002 from $2,041,000 for the nine months ended
September 30, 2001. The first nine months 2002 cost is made up of:
Interboro-Manhattan, $1,877,000, Interboro-Flushing, $401,000, and EVCI
$143,000. The 2001 nine month cost consists of $1,863,000 at Interboro-Manhattan
and $178,000 at Interboro-Flushing. The 2002 nine month increase at EVCI
consists of $15,000 of training costs and $128,000 of video conferencing
communications costs to deliver courses to Tortola, British Virgin Islands.
There was a net decrease at Interboro-Manhattan of $44,000. The increase of
$223,000 at Interboro-Flushing primarily consists of instructor wages and direct
administrative wages to support the growth of Interboro. As a percentage of our
net revenue, Interboro's cost of sales was 22% for the first nine months 2002,
as compared to 31% for the first nine months 2001. The improvement primarily
resulted from increases in student enrollment and retention.

Salaries and benefits decreased by 5%, or $195,000, to $3,733,000 for the nine
months ended September 30, 2002 from $3,928,000 for the nine months ended
September 30, 2001. These decrease in costs consist of: a reduction of $673,000
at EVCI, offset by an increase of $234,000 at Interboro-Manhattan and an
increase of $246,000 at Interboro-Flushing, for the first nine months 2002,
compared to $2,049,000 at EVCI, $1,819,000 at Interboro-Manhattan and $60,000 at
Interboro-Flushing for the first nine months 2001. The decrease of $673,000 at
EVCI resulted from a reduction in full-time employees from 22 employees to 14.
The Interboro-Manhattan payroll increased by $ 234,000 which is a net increase
in the cost of additional administrative and instructors to support the growth
of Interboro. The increase of $246,000 at Interboro-Flushing was due to the
growth of enrollment at that campus.

                                       11
<PAGE>

Marketing, brochures and student registration costs increased by $260,000 to
$713,000 for the first nine months 2002 from $463,000 for the nine months 2001.
The 2002 nine month costs consist of: Interboro-Manhattan, $439,000,
Interboro-Flushing, $270,000, and EVCI $4,000, compared to Interboro-Manhattan,
$333,000, and Interboro-Flushing, $120,000 for the first nine months 2001.
Marketing costs increased by $106,000 at Interboro-Manhattan, by $150,000 at
Interboro-Flushing and by $4,000 at EVCI. The increase in marketing costs was
primarily related to additional subway, radio and newspaper advertisements for
Interboro.

Professional fees and consulting fees decreased to $707,000 for the nine months
ended September 2002 from $848,000 for the nine months ended September 2001.

Depreciation and amortization increased to $377,000 for the first nine months
2002 from $338,000 for the first nine months 2001. These costs consist of: EVCI,
$105,000, Interboro-Manhattan, $157,000 and Interboro-Flushing, $115,000 for the
first nine months 2002, as compared to EVCI $60,000, Interboro-Manhattan,
$250,000, and Interboro Flushing $28,000 for the first nine months 2001.
Interboro-Manhattan included amortization of goodwill of $144,000 for the first
nine months 2001.

Other expenses decreased by $219,000 to $2,427,000 for the first nine months
2002 from $2,646,000 for the first nine months 2001. These costs are comprised
of: EVCI $876,000, Interboro-Manhattan, $1,075,000 and Interboro-Flushing,
$476,000, for the first nine months 2002 and EVCI, $1,435,000,
Interboro-Manhattan, $767,000 and Interboro-Flushing, $444,000, for the first
nine months 2001. At EVCI, the decrease of $559,000 is primarily due to: a
$236,000 reduction in leased premises, $45,000 reduction in telephone expense,
$168,000 reduction in travel expense and a $110,000 reduction for items such as
postage, printing, computer costs and other general overhead items. The increase
at Interboro-Manhattan of $308,000 includes $141,000 for renting additional
classroom space, $19,000 in insurance premiums, $15,000 in supplies, $25,000 of
additional telephone expense, $15,000 in printing and $93,000 in other items to
support its enrollment growth. The increase at Interboro-Flushing of $32,000 was
due to supporting the growth in enrollment at this campus.

Non cash consulting expense for the first nine months of 2002 of $19,000
resulted from our issuance of 18,000 shares of common stock for financial
advisory services.

Interest income decreased by $112,000 to $16,000 for the first nine months 2002
from $128,000 for the first nine months 2001 because we were using our working
capital to fund growth at Interboro and our efforts to turn around ICTS.

Interest and financing costs increased to $98,000 for the first nine months
2002, from $4,000 for the first nine months 2001. The balance consists of
$34,000 of interest due on our $910,000 promissory note payable to the Series B
preferred holders, $25,000 for interest on capitalized leases and $9,000 of
interest due to the prior owner of Interboro, as well as financing costs of
$30,000 related to our note financings in July 2002.

Pre-tax loss from continuing operations for the nine months ended September 30,
2002 was $85,000 as compared to a loss of $3,285,000 for the nine months ended
September 30, 2001. Our net loss for the first nine months 2002 consists of net
income at Interboro of $1,107,000 that was offset by a net loss of $1,192,000 at
EVCI. Our net loss for the first nine months 2001 consists of a net loss at EVCI
of $3,367,000 that was offset by net income at Interboro of $82,000.



                                       12
<PAGE>

Seasonality

Our revenue varies seasonally as a result of changes in the level of our student
enrollment. We have traditionally experienced a seasonal increase in enrollments
for the fall semester, the most popular time to enroll for post-secondary
programs. Our spring semester enrollments are usually less than the previous
fall because there are a greater number of student withdrawals than new
enrollees for the spring semester. Enrollment during the summer is significantly
lower than the remainder of the year. However, due to our expansion of Interboro
and progress in increasing retention of Interboro students, we had record
enrollment for the 2002 spring and summer semesters. Nevertheless, total student
enrollment and net revenue are typically highest in our first quarter (January
through March) and fourth quarter (October through December).

Liquidity and Capital Resources

Operating activities

Cash used in operating activities for the nine months ended September 30, 2002
was $2,058,000 compared to $3,212,000 for the nine months ended September 30,
2001. The improvement of $1,154,000 is comprised of $4,119,000 of reductions in
our net loss and an increase in accounts payable and accrued expenses of
$370,000 that was offset by adjusting for non-cash items such as cumulative
effect of accounting change, depreciation and amortization allowance for
doubtful accounts and deferred rent, totaling $684,000, and a $1,724,000
increase in our accounts receivable and other assets of $545,000 which is an
increase in goodwill, due to the earn out of $382,000 payable to the previous
shareholder of Interboro. The primary reasons for these changes in the uses of
cash are:

               o    increased enrollment at Interboro
               o    approximately $300,000 of startup costs for Interboro's
                    Washington Heights and Yonkers extension sites.
               o    approximately $800,000 used to fund ICTS' cash deficits.

Investing activities

Cash used in investing activities decreased by $788,000 to $727,000 for the nine
months ended September 30, 2002 from $1,515,000 for the nine months ended
September 30, 2001. We have reduced capital expenditures by $418,000 and
received proceeds of $6,000 from the sale of assets and we did not have the
acquisition costs of $713,000 attributable to Interboro. These decreases were
offset by the $100,000 investment described in Note 9 above and the $250,000
certificate of deposit to secure our promissory note.


Financing activities

Net cash generated in financing activities increased by $1,269,000 to $1,183,000
for the nine months ended September 30, 2002 from ($86,000) used in financing
activities from the nine months ended September 30, 2001. We raised
approximately $426,000 from sales of our Series C Preferred in 2002, $550,000
from a promissory note, and $486,000 from a convertible note. This is offset by
repurchasing approximately 38,000 shares of our common stock for approximately
$66,000, and increased capital lease payments of $126,000.

                                       13
<PAGE>

We anticipate, based on current plans and assumptions relating to our current
operations, that our cash from operations will be sufficient to satisfy our cash
requirements at least until September 30, 2003, except as follows.

We may require additional cash to pay accrued dividends on our Series B
preferred upon the automatic conversion thereof commencing in the last week of
September 2003. At that time, accrued dividends will be $1,820,000. The
governing provisions of our certificate of incorporation provide that those
dividends will be payable when the Series B preferred holders surrender their
certificates for conversion into the number of shares of our common stock
issuable upon conversion. Another provision prohibits any Series B holder, or
group of holders acting together, from converting so many shares of their Series
B preferred as would result in such holder or group becoming subject to Section
16(b) of the Securities Exchange Act of 1934 by virtue of being the beneficial
owner of more than 10% of our outstanding common stock. In addition, we are
subject to provisions of Delaware law regarding the payment of dividends solely
out of our surplus or net profits. Accordingly, we believe there are significant
questions regarding the rights of the Series B holders to shares of our common
stock and to dividends upon the automatic conversion of their shares.

We continue to consider various potential debt and equity financing options to
grow our schools business and for contingencies. The availability and cost of
such financing are uncertain, particularly since our Series B preferred stock is
a significant impediment to our obtaining additional financing.

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    Our negative cash flow and working capital deficit could
                    materially impede our ability to operate and grow.

               o    Our success may depend on our ability to obtain substantial
                    additional financing and, if obtained, the terms may not be
                    favorable to us.

               o    Our Series B preferred stock is adversely affecting our
                    ability to obtain additional financing.

               o    The estimated substantial budget deficit in New York could
                    adversely affect the TAP program and, therefore, our ability
                    to operate and grow.

               o    Future delays in the approval of the New York State budget
                    that includes TAP funding could impede our ability to
                    operate unless we can arrange for additional financing.

               o    Renewal of the Pell program in 2003 could impact
                    eligibility, amount and availability of Pell grants and,
                    therefore, Interboro's ability to operate.

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

               o    Interboro's problems with regulators, that occurred prior to
                    our acquiring it, could reoccur and adversely affect its
                    operations.

               o    Regulatory agencies or third parties may commence
                    investigations or institute litigation against us.

                                       14
<PAGE>

               o    New York State regulators are requiring Interboro to halt
                    its expansion by adding new sites until at least next fall
                    and could impose other restrictions on Interboro's growth.

               o    Restrictive employment conditions imposed as a result of
                    collective bargaining may impede our ability to grow and
                    expand.

               o    Interboro may incur significant additional expenses as a
                    result of union representation of its employees, including
                    under a collective bargaining agreement to be negotiated or
                    as a result of a work stoppage or strike by its employees.

               o    Failure to effectively manage our growth could hurt our
                    business.

               o    Our business could materially suffer if we cannot
                    effectively identify, acquire and integrate additional
                    schools.

               o    Our failure to effectively open new schools or add new
                    services could adversely affect our business.

               o    Payment for acquisitions with our stock could substantially
                    dilute our current stockholders.

               o    If our common stock is delisted from the Nasdaq, the
                    liquidity of our common stock and our ability to raise
                    additional capital and make acquisitions could adversely
                    affected.

               o    In a continued economic downturn, it could become more
                    difficult for us to operate and grow.

               o    We depend on our chairman, president and other key
                    management personnel to operate and grow.

               o    Our chairman and other principal stockholders can act
                    together to control our business and policies without the
                    approval of other stockholders.

               o    Our share price has ranged greatly since we went public and
                    may be very volatile in the future.

               o    Provisions of law and two agreements may prevent takeovers
                    and depress the price of our shares.

               o    Our classified board limits stockholder voting for election
                    and removal of directors.

               o    Indemnification and limitation of liability of our officers
                    and directors may insulate them from accountability to
                    stockholders at substantial cost to us.

               o    The more detailed discussion regarding these and other
                    specific risk factors included in our filings with the SEC,
                    including our most current Form S-3.

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.

Item 3. Controls and Procedures.

Our management, including our Chief Executive Officer and Chief Financial
Officer, have conducted an evaluation of the effectiveness of our disclosure
controls and procedures (as defined in Rule 13a-14(c) under the Securities
Exchange Act of 1934) as of a date (the "Evaluation Date") within 90 days prior
to the filing date of this report. Based upon that evaluation, our Chief
Executive Officer and Chief Financial Officer have concluded that our disclosure
controls and procedures are effective for timely gathering, analyzing and

                                       15
<PAGE>

disclosing the information we are required to disclose in our reports filed
under the Exchange Act. There have been no significant changes made in our
internal controls or in other factors that could significantly affect our
internal controls subsequent to the Evaluation Date.


                                     PART II
                                OTHER INFORMATION

Item 1. Legal Proceedings

In July, 2002, the former owner of Interboro, Bruce R. Kalish, filed a demand
for arbitration against Interboro, Interboro Holding, Inc. and EVCI before JAMS
in New York City claiming that Interboro currently owes him an amount that
exceeds, by approximately $600,000, the $1,420,000 that we have accrued as
current and long term liabilities. As a basis for his claims, Mr. Kalish asserts
that the management fees charged by EVCI to Interboro in 2000 and 2001 are
improper and adversely affect the amount and ability to pay him what he is owed.
EVCI charged management fees of $720,000 in 2000 and $1,152,000 in 2001.
Interboro has provided written documentation to Mr. Kalish in response to his
request and discussions between counsel are ongoing. The defendants believe Mr.
Kalish's claims are without merit and are vigorously opposing them.

In October, Mr. Kalish filed an order to show cause requesting the New York
Supreme Court, New York County, to force EVCI to participate in the arbitration
and to enjoin EVCI from taking any management fee from Interboro. EVCI believes
Mr. Kalish's action is without merit and has been vigorously defending its
position.

Item 6.  Exhibits and Reports on Form 8-K

(a)      The following exhibits are filed as part of this report:

Exhibit No.*       Description of Exhibit

       4.1 [1]  --       Warrant to purchase 50,000 shares of common stock of
                         the registrant issued to Rosenthal & Rosenthal, Inc. on
                         July 12, 2002.

       4.2 [1]  --       Form of registrant's Convertible Promissory Note due
                         July 15, 2003, the originals of which were issued in
                         July 2002 to accredited investors.

       4.3 [1]  --       For of registrant's Common Stock Purchase Warrant
                         issued in connection with the issuance of registrant's
                         Convertible Promissory Notes due July 15, 2003.

       10.1 [1] --       Promissory Note for $550,000, dated July 12, 2002, and
                         payable by registrant to Rosenthal & Rosenthal, Inc.

       10.2 [1] --       Guarantee by Interboro Institute, Inc., dated July 12,
                         2002, of registrant's $550,000 Promissory Note payable
                         to Rosenthal & Rosenthal, Inc.

       10.3 [1] --       Form of registrant's Subscription and Registration
                         Rights Agreement relating to registrant's Convertible
                         Promissory Notes due July 15, 2003 and Common Stock
                         Purchase Warrants issued with such Notes.

                                     16
<PAGE>


       99.1 [1] --       Press release, dated July 17, 2002, issued by
                         registrant to announce the $550,000 loan received from
                         Rosenthal & Rosenthal, Inc.

       99.2 [1] --       Press release, dated August 7, 2002, issued by
                         registrant to announce the $498,750 convertible debt
                         financing received from accredited investors.

       99.3     --       Certification of Chief Executive Officer and Chief
                         Financial Officer pursuant to 18 U.S.C. Section 1350,
                         as adopted pursuant to Section 302 of the
                         Sarbanes-Oxley Act of 2002.

       99.4     --       Certification of Chief Executive Officer and Chief
                         Financial Officer pursuant to 18 U.S.C. Section 1350,
                         as adopted pursuant to Section 906 of the
                         Sarbanes-Oxley Act of 2002.

------------------------------
*    Numbers inside brackets indicate documents from which exhibits have been
     incorporated by reference.

[1]  Incorporated by reference to Registrant's Form 10-QSB, for the quarter
     ended June 30, 2002.


                                       17

<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, 2002
                               EVCI CAREER COLLEGES INCORPORATED

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


                                       18
<PAGE>



                                  EXHIBIT INDEX

Exhibit No.                         Description of Exhibit

       4.1 [1]  --       Warrant to purchase 50,000 shares of common stock of
                         the registrant issued to Rosenthal & Rosenthal, Inc. on
                         July 12, 2002.

       4.2 [1]  --       Form of registrant's Convertible Promissory Note due
                         July 15, 2003, the originals of which were issued in
                         July 2002 to accredited investors.

       4.3 [1]  --       Form of registrant's Common Stock Purchase Warrant
                         issued in connection with the issuance of registrant's
                         Convertible Promissory Notes due July 15, 2003.

       10.1 [1]--        Promissory Note for $550,000, dated July 12, 2002, and
                         payable by registrant to Rosenthal & Rosenthal, Inc.

       10.2 [1]--        Guarantee by Interboro Institute, Inc., dated July 12,
                         2002, of registrant's $550,000 Promissory Note payable
                         to Rosenthal & Rosenthal, Inc.

       10.3 [1]--        Form of registrant's Subscription and Registration
                         Rights Agreement relating to registrant's Convertible
                         Promissory Notes due July 15, 2003 and Common Stock
                         Purchase Warrants issued with such Notes.

       99.1 [1]--        Press release, dated July 17, 2002, issued by
                         registrant to announce the $550,000 loan received from
                         Rosenthal & Rosenthal, Inc.

       99.2 [1]--        Press release, dated August 7, 2002, issued by
                         registrant to announce the $498,750 convertible debt
                         financing received from accredited investors.

       99.3    --        Certification of Chief Executive Officer and Chief
                         Financial Officer pursuant to 18 U.S.C. Section 1350,
                         as adopted pursuant to Section 302 of the
                         Sarbanes-Oxley Act of 2002.

       99.4    --        Certification of Chief Executive Officer and Chief
                         Financial Officer pursuant to 18 U.S.C. Section 1350,
                         as adopted pursuant to Section 906 of the
                         Sarbanes-Oxley Act of 2002.
                         ------------------------------

*    Numbers inside brackets indicate documents from which exhibits have been
     incorporated by reference.

[1]  Incorporated by reference to Registrant's Form 10-QSB, for the quarter
     ended June 30, 2002.

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