<PAGE>

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB

                                   -----------


{X}      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934 For the quarterly period ended March 31, 2003.

{ }      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For
         the transition period from _______ to ________.

                           Commission File No. 0-27599


                                  SULPHCO, INC.
                  ---------------------------------------------
                       (Name of the small business issuer)

         Nevada                                        88-0114817
------------------------                   ------------------------------------
(State of Incorporation)                   (I.R.S. Employer Identification No.)


                   850 Spice Islands Drive, Sparks, NV 89431
            -------------------------------------------------------
                    (Address of principal executive offices)

                                  (775) 829-1310
                                -----------------
                           (Issuers telephone number)

Number of shares outstanding of each of the issuer's classes of common equity,
as of the latest practicable date: 47,671,170 common stock issued and
outstanding as of May 6, 2003.

Transitional Small Business Disclosure Format: Yes { } No {X}

<PAGE>
<TABLE>

                                               PART I

Item 1.  Financial Statements.


                                            SULPHCO, INC.
                                    (A DEVELOPMENT STAGE COMPANY)
                                           BALANCE SHEETS
<CAPTION>

                                                                      MARCH 31          DECEMBER 31
                                                                        2003               2002
                                                                      UNAUDITED           AUDITED
<S>                                                                 <C>                <C>
Current Assets:
      Cash and cash equivalents (Note 1)                            $    476,732       $     13,574
      Deposits                                                            69,144             21,080
      Prepaid expenses                                                     5,134             11,184

           Total current assets                                          551,010             45,838
                                                                    -------------      -------------

Property and equipment, net (Note 1)                                     265,360            202,575
Construction in progress (Note 1)                                        586,926            583,470
                                                                    -------------      -------------

           Total assets                                             $  1,403,296       $    831,883
                                                                    =============      =============

Liabilities and Stockholder's Equity

Current Liabilities:
      Accounts payable                                              $     78,551       $    153,439
      Accrued liabilities                                                 90,183             75,732
      Accrued interest                                                     1,462                 --
      Line of credit                                                          --            500,000
      Current portion of lawsuit settlement-Cullen                        68,182             86,364
      Note payable                                                       250,000            420,000
                                                                    -------------      -------------

           Total current liabilities                                     488,378          1,235,535
                                                                    -------------      -------------

Lawsuit settlement-Cullen, net of current                                     --             13,636

Stockholder's equity:
           Preferred stock: 10,000,000 shares authorized
           ($0.001 par value) none issued                                     --                 --
           Common stock: 100,000,000 shares authorized
           ($0.001 par value) 47,671,170 and 47,621,170 shares
           issued and outstanding at March 31, 2003 and
           December 31, 2002 respectively                                 47,671             47,621
           Paid in capital                                            19,138,888         19,122,438
           Stock subscription receivable (Note 2)                     (2,704,500)        (4,624,500)
           Deficit accumulated during the development stage          (15,567,141)       (14,962,846)
                                                                    -------------      -------------

                Total stockholder's equity                               914,918           (417,287)
                                                                    -------------      -------------

                     Total liabilities and equity                   $  1,403,296       $    831,883
                                                                    =============      =============
</TABLE>

See accompanying notes to financial statements.

                                                 2
<PAGE>

                                  SULPHCO, INC.
                          (A Development Stage Company)
                            Statements of Operations


                                                       THREE MONTHS ENDED
                                                    MARCH 31          MARCH 31
                                                      2003              2002
                                                    UNAUDITED         UNAUDITED

Revenue                                            $        2        $       --

Operating expenses:
      Depreciation                                     40,500            43,200
      General and administrative                      492,755         5,137,524
      Research and development                         71,042           126,563
                                                   -----------       -----------

          Total operating expenses                    604,297         5,307,288
                                                   -----------       -----------

               Loss from operations                   604,295         5,307,288

Other income (expenses)                                    --            99,435
                                                   -----------       -----------

      Net loss before taxes                                --         5,207,853

Income tax benefit                                         --                --
                                                   -----------       -----------

      Net loss                                     $  604,295        $5,207,853
                                                   ===========       ===========


Loss per common share                              $     0.01        $     0.10

See accompanying notes to financial statements.

                                       3
<PAGE>
<TABLE>

                                            SULPHCO, INC.
                                    (A DEVELOPMENT STAGE COMPANY)
                                       STATEMENT OF CASH FLOWS
                         FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
<CAPTION>

                                                                             MARCH 31
                                                                      2003             2002
                                                                    UNAUDITED        UNAUDITED
<S>                                                             <C>               <C>
Cash Flows From Operating Activities
Net income                                                      $    (604,295)    $  (5,207,853)

Adjustments to Reconcile Net Income to Cash
     Depreciation & amortization                                       40,500            43,200
     Stock issued for services                                              -         5,000,000
     (Increase) decrease in:
          Prepaid expenses                                              6,050            28,232
          Deposits                                                    (48,064)          (94,237)
     Increase (decrease) in:
          Accounts payable                                            (74,888)          (31,640)
          Accrued liabilities                                          15,914                 -
          Accrued interest                                                  -            (3,026)
          Lawsuit settlement                                          (31,818)                -
                                                                --------------    --------------
                  Net cash used in operating activities              (696,601)         (265,324)
                                                                --------------    --------------

Cash Flows From Investing Activities
     Purchase of property and Equip                                  (106,741)          (16,907)
                                                                --------------    --------------
                  Net cash used in investing activities              (106,741)          (16,907)
                                                                --------------    --------------

Cash Flows from Financing Activities
     Repayment of line of credit                                     (500,000)                -
     Short-term note payable to related party                        (170,000)
     Proceeds from issuance of stock                                        -            75,000
     Short-term note payable                                                -        (1,000,000)
     Stock subscription                                             1,920,000         1,000,000
     Stock returned and cancelled                                           -        (1,000,000)
     Stock options Exercised                                           16,500                 -
     Payments on related party advance                                      -         1,036,576
                                                                --------------    --------------
                  Net cash provided by
                  financing activities                              1,266,500           111,576
                                                                --------------    --------------

Net increase (decrease) in cash and cash equivalents                  463,158          (170,655)
                                                                --------------    --------------

Cash and cash equivalents at beginning of period                       13,574           173,432
                                                                --------------    --------------
Cash and cash equivalents at end of period                      $     476,732     $       2,777
                                                                ==============    ==============
</TABLE>

See accompanying notes to financial statements.

                                                 4
<PAGE>
<TABLE>

                                                      SULPHCO, INC.
                                              (A DEVELOPMENT STAGE COMPANY)
                                      STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                               JANUARY 13, 1999 (DATE OF INCEPTION) THROUGH MARCH 31, 2003
<CAPTION>

                                                                                                            STOCK           TOTAL
                                                 COMMON STOCK            ADDITIONAL     ACCUMULATED     SUBSCRIPTIONS   STOCKHOLDERS
                                             SHARES        AMOUNT     PAID-IN CAPITAL     DEFICIT         RECEIVABLE       EQUITY
                                          ------------  ------------  ---------------  --------------   -------------   ------------
<S>                                       <C>           <C>           <C>              <C>              <C>             <C>
Balance, January 13, 1999                 $         -   $         -   $            -   $           -    $          -    $         -

Stock issued for cash at $167 per share         1,000             1          166,999                                        167,000

Restatement from recapitalization of
GRD, Inc                                   19,999,000        19,999          (19,999)                                             -

Net loss                                                                                    (128,802)                      (128,802)
                                          ------------  ------------  ---------------  --------------   -------------   ------------

Balance, December 31, 1999                 20,000,000        20,000          147,000        (128,802)              -         38,198

Contributions from stockholder:
     Cash                                                                    169,168                                        169,168
     Equipment                                                               362,331                                        362,331

Acquisition of Filmworld, Inc.              1,200,000         1,200         (251,200)                                      (250,000)

Contribution of capital                       820,000           820          409,180                        (208,500)       201,500

Issuance of stock options                                                  1,014,200                                      1,014,200

Net loss                                                                                  (1,364,393)                    (1,364,393)
                                          ------------  ------------  ---------------  --------------   -------------   ------------

Balance, December 31, 2000                 22,020,000        22,020        1,850,679      (1,493,195)       (208,500)       171,004

Stock issued for services                     200,000           200          571,800                                        572,000

Stock issued for services related party     4,342,800         4,343        4,782,557                                      4,786,900

Stock issued for subscriptions receivable     724,750           725        1,207,162                                      1,207,887

Issuance of stock options                  12,639,620        12,640        7,352,860                      (6,041,000)     1,324,500

Return of shareholder capital                                               (118,427)                                      (118,427)

Net loss                                                                                  (6,927,525)                    (6,927,524)
                                          ------------  ------------  ---------------  --------------   -------------   ------------

Balance, December 31, 2001                 39,927,170        39,927       15,646,632      (8,420,720)     (6,249,500)     1,016,340
                                          ============  ============  ===============  ==============   =============   ============

Stock issued for services                      50,000            50           13,450                                         13,500

Stock Issued for services related party    10,000,000        10,000        4,990,000                                      5,000,000

Stock issued for cash                         100,000           100            9,900                                         10,000

Collection on subscriptions receivable                                                                       515,500        515,500

Cancelled Subscriptions Receivable         (1,000,000)       (1,000)        (499,000)                        500,000             --

Issuance of stock options                      75,000            75          (27,575)                         37,500         10,000

Return of shareholder capital              (1,100,000)       (1,100)        (570,900)                        572,000             --

Return of stock subscription                 (431,000)         (431)        (440,069)                                      (440,500)

Net loss                                                                                  (6,542,127)                    (6,542,127)
                                          ------------  ------------  ---------------  --------------   -------------   ------------

Balance December 31, 2002                  47,621,170        47,621       19,122,438     (14,962,846)     (4,624,500)      (417,287)
                                          ============  ============  ===============  ==============   =============   ============

Stock options exercised                        50,000            50           16,450                                         16,500

Payment on stock subscriptions                                                                             1,920,000

Net loss                                                                                    (604,295)                      (604,295)
                                          ------------  ------------  ---------------  --------------   -------------   ------------

Balance March 31, 2003                     47,671,170        47,671       19,138,888     (15,567,141)     (2,704,500)       914,918
                                          ------------  ------------  ---------------  --------------   -------------   ------------

See accompanying notes to financial statements.
</TABLE>

                                                                5
<PAGE>

                                 SULPHCO, INC.

                         (A DEVELOPMENT STAGE COMPANY)

                         Notes to Financial Statements

                      March 31, 2003 and December 31, 2002



NOTE 1-ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION

Sulphco, Inc. (the Company), formerly Film World, Inc. (Film World) was
originally organized under the laws of the State of Nevada on December 23, 1986,
under the name Hair Life Inc. The Company became inactive during 1987 and
remained inactive until September 1, 1994. On September 1, 1994, the
shareholders of Hair Life, Inc. and the "The Patterson Group" approved a reverse
acquisition agreement whereby the Patterson Group became a wholly owned
subsidiary of Hair Life, Inc. in exchange for 4,500,000 shares of common stock
(after giving effect to a reverse stock split) of Hair Life, Inc. Hair Life,
Inc. then changed its name to The Patterson Group. The Patterson Group changed
its capitalization by a reverse split of the then outstanding common stock of
one new share for each forty old shares. The Patterson Group conducted
operations via two subsidiaries until 1998, at which time in discontinued all
operations and remained dormant until July 1999.


On or about July 18, 1999, the Company acquired film rights and changed the
corporate name to Film World, Inc. The Company authorized a capitalization of
100,000,000 shares of common stock with a par value of $0.001 per share and
10,000,000 shares of preferred stock, with a par value of $0.001 per share.


On December 4, 2000, the Company discontinued its film operations and
distributed all assets and liabilities related to that business to certain
shareholders in exchange for their stock.


The Company on December 4, 2000 entered into an exchange agreement with GRD,
Inc. (GRD) (dba Sulphco) and issued 20,000,000 shares in exchange for all of the
outstanding shares of GRD.

                                       6
<PAGE>

Since the shareholders of GRD continue to control the Company the merger has
been accounted for as a recapitalization of GRD. Consequently the results of
operations are those of GRD since its inception on January 13, 1999 and GRD and
FilmWorld from December 4 2000 to December 31, 2000.


Pro forma amounts as if the Companies had been combined as of January 1, 1999
are as follows:


                                                    2000                1999
                                                    ----                ----
Revenues                                        $        --         $        --

Loss from operations                             (1,364,393)           (128,802)
Loss from discontinued operations                (2,889,600)           (197,011)
                                                ------------        ------------

Net loss                                        $(4,253,993)        $  (325,813)
                                                ============        ============

Net loss per share                              $     (0.21)        $     (0.02)
                                                ============        ============

                                       7
<PAGE>

BUSINESS

The Company has not generated revenues from its business and is a development
stage company, as defined by SFAS No. 7. The Company is engaged in the business
of developing and marketing a process for removing sulfur from crude oils.


CASH AND CASH EQUIVALENTS

The Company considered all highly liquid investments with original maturities to
the Company of three months or less to be cash equivalents.


PROPERTY AND EQUIPMENT

Property and equipment are recorded at cost, less accumulated depreciation.
Depreciation is determined using the straight-line and accelerated methods over
the estimated useful lives of the assets. Expenditures for maintenance and
repairs are expensed when incurred and betterments are capitalized. Gains and
losses on sale of property and equipment are reflected in the statement of
operations.


INTANGIBLE ASSETS

Intangible assets consist primarily of patent costs. Patent costs are amortized
on a straight-line basis over term of the patent. The Company assesses
recoverability of this intangible asset by determining whether the amortization
of the balance over its remaining life can be recovered through discounted
future operating cash flows of the acquired operation. The amount of impairment,
if any, is measured based on projected discounted future operating cash flow
using a discount rate that reflects the Company's average cost of funds.


RESEARCH AND DEVELOPMENT

The Company charges research and development costs to operating expense as
incurred.


INCOME TAXES

The Company accounts for income taxes under the asset and liability method.
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax
bases and operating loss and tax credit carryforwards. Deferred tax assets and
liabilities are measured using the enacted tax rates expected to apply to
taxable income in the years in which those temporary differences are expected to
be recovered or settled. The effect on deferred tax assets and liabilities of a
change in tax rates is recognized in income in the period that includes the
enactment date.

                                       8
<PAGE>

EARNINGS PER SHARE

The computation of basic and diluted earnings per common share is based on the
weighted average number of shares outstanding during the year, plus the common
stock equivalents. Common stock equivalents are not included in the diluted
earnings (loss) per share calculation when their effect is antidilutive. Common
stock equivalents arising from options have not been included in diluted
earnings per share.


IMPAIRMENT OF LONG-LIVED ASSETS

The Company reviews its long-lived assets for impairment whenever events or
changes in circumstances indicated that the carrying amount of the assets may
not be recovered through undiscounted future cash flows. If it is determined
that an impairment loss has occurred based on expected cash flows, such loss is
recognized in the statement of operations.


USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. The market for the Company's
products and services are characterized by competition, rapid technological
development, regulatory changes and new product introductions, all of which may
impact the future value of the Company's assets.

NOTE 2-SUBSCRIPTION RECEIVABLE

The Company's major shareholder has repaid a portion his subscription
receivable.

                                       9
<PAGE>

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

Except for the description of historical facts contained herein, this Form
10-QSB contains certain forward-looking statements concerning future
applications of the technologies of the Company and the Company's proposed
services and future prospects, that involve risks and uncertainties, including
the possibility that the Company will: (i) be unable to successfully test and
commercialize its technology, (ii) ever achieve profitable operations, or (iii)
not receive the additional financing urgently required to support its current
and future operations, as detailed herein and from time to time in the Company's
future filings with the Securities and Exchange Commission and elsewhere. Such
statements are based on management's current expectations and are subject to a
number of factors and uncertainties which could cause actual results to differ
materially from those described in the forward-looking statements.

Overview:
---------

SulphCo, Inc., a Nevada corporation (the "Company" or "Sulphco"), is developing
and testing its proprietary technology for the reduction of the sulfur content
of crude oils, lighter distillates and fuel oils. The Company is also
investigating whether its technology will effectively reduce acids and certain
metals in petroleum products. The Company is designing and developing
proprietary closed-loop desulfurization units that can be scaled to treat large
or small volumes of petroleum product. The desulfurization units are expected to
operate at low temperature and atmospheric pressure and have a relatively small
"footprint" compared with existing desulfurizing equipment.

The Company has nearly completed a 1,000 bbl per day unit intended to
desulfurize crude oil. The Company expects to place this unit at an oil refinery
or other suitable location for testing purposes within the next several months.
Subject to the results of the testing, the Company also intends to move forward
with licensing opportunities with petroleum producers, refiners and other
established petroleum processors, as opportunities become available.

The time frames set forth above may be adversely affected by factors such as
unforeseen delays in development and testing of the Company's technology and in
the marketing and implementation of the licensing program. The Company's plans
also could be adversely impacted by the patenting process for the devises and
methods which comprise the Company's proprietary technology. In this regard, the
need to keep aspects of the Company's technology secret during the patenting
process could delay the Company's plans to bring its proprietary technology to
market.

If the Company is required to initiate litigation to protect its interest in its
proprietary technology or is required to defend an action challenging the
Company's interest, the costs and delays associated with such litigation could
negatively impact on the Company's ability to bring the proprietary technology
to market.

Also, any delays or unforeseen impasses in developing working relationships with
third-parties in connection with the development and marketing of industrial
units for the proprietary technology would have not only impact on the timing of
the Company's business plan but could entirely disrupt such plans and prevent
the Company from bringing the proprietary technology to market.

Results of Testing:
-------------------

Since December 2000, the Company has been developing and testing its
desulfurization technologies. Until recently, testing of the effectiveness of
the Company's desulfurization process has been conducted primarily in-house,
with some testing having been conducted by interested third parties. In order to
validate and further refine the desulfurization process, the Company recently


                                       10
<PAGE>

engaged the University of Nevada, Reno to perform limited initial testing of the
results of the Company's current technologies for desulfurization and reduction
of nitrogen. The University test results, which are not conclusive, tend to
confirm a reduction in the sulfur content of the crude oil tested. However,
these results indicate desulfurization to a lesser extent than the results
previously obtained using the Company's in-house testing equipment, and have
revealed anomalies which the Company is now investigating. While the Company has
not tested for nitrogen reduction, the University test results also indicate the
Company's current technologies reduced nitrogen levels of the crude oil tested.
Further evaluation is underway to interpret these results, with a view towards
refining the Company's technologies, if necessary, in order to achieve
commercially viable desulfurization on a consistent basis.

Development and commercialization of a new technology, such as the Company's
desulfurization process, is inherently subject to significant risks.
Accordingly, there are no assurances that the Company will be able to
successfully develop and commercialize its desulfurization technology.
Introducing and enhancing new technology involves numerous technical challenges,
substantial financial and personnel resources, and often takes many months to
complete. The Company cannot be certain that it will be successful at
commercializing its desulfurization technology on a timely basis, or in
accordance with its milestones, if at all. In addition, the Company cannot be
certain that, once a desulfurization unit is made operational, the unit will
perform as expected. The Company's technology is complex and, despite further
vigorous testing and quality control procedures, may contain undetected errors.
Any inability to timely deliver a commercially viable desulfurization unit could
have a negative effect on the Company's business, revenues, financial condition
and results of operations.

Financial Results:
------------------

The Company recorded no revenue for the three months ended March 31, 2002, or
for the three months ended March 31, 2003.

Even excluding the extraordinary salary expense of $4,542,800 incurred during
the three months ended March 31, 2002, the Company's operating expenses have
decreased from $721,287 for the three months ended March 31, 2002, to $575,855
for the three months ended March 31, 2003. The Company does not expect this
trend to continue in view of increasing employee costs and increases in rent and
related expenses. In March 2003, the Company leased from DP Partners a 92,125
sq. foot facility at 850 Spice Islands Drive, Sparks, Nevada, for a one-year
term ending March 2004. The base rent of the Company's facility at 850 Spice
Islands Drive, Sparks, Nevada is $29,000 per month and other tenant charges such
as taxes, insurance and utilities could be as high as $9,000 per month. The
Company is also responsible for the payment approximately $6,690 per month of
rent and other charges on its former facility at 1650 Meadow Wood Lane, Reno,
Nevada until that facility is subleased or sold.

Liquidity and Capital Resources:
--------------------------------

During the first quarter, the Company received a loan of $1,920,000 from its
Chairman, CEO and majority stockholder, Rudolf W. Gunnerman, which was used to
fully repay a $500,000 line of credit, to repay approximately $320,000 of
existing short term advances made by Dr. Gunnerman, and to pay operating
expenses of the Company, including salaries, rent expenses, litigation costs,
and equipment purchase costs.

At December 31, 2003, Dr. Gunnerman owed the Company $3,575,000 for the issuance
of 7,150,000 shares of the Company's common stock issued at $.50 per share.
Effective February 28, 2003, Dr. Gunnerman and the Company agreed that the
$1,920,000 loaned by Dr. Gunnerman to the Company be used to repay a portion of
Dr. Gunnerman's $3,575,000 subscription receivable. On May 13, 2003, Rudolf W.
Gunnerman paid the remaining $1,655,000 balance on his $3,575,000 subscription
receivable. The interest on the $3,575,000 loan had been waived for the years
ended 2001 and 2002. In view of the prepayment the Board of Directors waived the
interest accrued through the date of payment.

                                       11
<PAGE>

At May 8, 2003, the Company had $36,725.59 in available cash reserves. The
Company also has an undrawn line of credit of $500,000, however, that line of
credit is subject to renewal on May 24, 2003 and there can be no assurance the
bank will permit renewal. The Company's current monthly cash outflow, or cash
burn rate, is approximately $250,000 per month.

The Company currently plans to meet its liquidity requirements primarily through
the payment of the subscription receivable owed by its Chairman, CEO and
majority stockholder, Rudolf W. Gunnerman, and in the longer term, revenue from
the licensing of its technology and the operation of its desulfurization units.
The Company expects the $1,655,000 payment by Dr. Gunnerman on May 13, 2003,
will be sufficient to permit from 4 to 6 months of business operations at the
current burn rate. There can be no assurance that these funds will be in amounts
sufficient to enable the Company to begin to realize revenue from licensing and
business operations, or that the revenues from the licensing and business
operations will be sufficient to continue the business of the Company. If the
Company is delayed in the commercialization of its technology, or in the receipt
of revenue from its licensing and business operations, and the Company is unable
to otherwise raise funds, on acceptable terms, it will not be able to continue
to exist, conduct further development and testing of its technologies, take
advantage of future opportunities or respond to unanticipated requirements, any
of which would negatively impact its business, operating results and financial
condition.

Research and Development:
-------------------------

On December 31, 2002, the United States Patent and Trademark Office issued a
Notice of Allowance with respect to the Company's patent application entitled
"Continuous Process for Oxidative Desulfurization of Fossil Fuels with
Ultrasound and Products Therefrom," Patent No. US 6,500,219 B1. The Company is
pursuing two patent applications pertaining to products related to the Company's
desulfurization process. Subject to the receipt of revenue or other funding, the
Company intends to continue its research and development program during the
remainder of 2003.

Item 3.  Controls and Procedures.

Based on the evaluation of the Company's disclosure controls and procedures as
of a date within 90 days of the filing date of this quarterly report, Rudolf W.
Gunnerman, Chairman of the Board of Directors and Chief Executive Officer of the
Company, and Pat Lacy, Controller, Treasurer and Principal Financial Officer of
the Company, have concluded that the Company's disclosure controls and
procedures are effective in ensuring that information required to be disclosed
by the Company in the reports that it files or submits under the Securities and
Exchange Act of 1934, as amended, is recorded, processed, summarized and
reported within the time period specified by the Securities and Exchange
Commission's rules and forms.

There were no significant changes in the Company's internal controls or in other
factors that could significantly affect these controls subsequent to the date of
their evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

                                       12
<PAGE>

                                     PART II

Item 1.  Legal Proceedings.

The Company is not party to, and none of the Company's property is subject to,
any pending or threatened legal, governmental, administrative or judicial
proceedings that may have a materially adverse effect upon the Company's
financial condition or operation, except as follows:

On February 12, 2003, the Company agreed to settle a lawsuit brought by Mark T.
Cullen. The Company agreed to issue replacement certificates for a certificate
for 2,000,000 shares of common stock purportedly lost and to confirm the
issuance of those shares, to confirm the issuance of an additional 120,000
shares, and to pay a $100,000 severance payment in installments of approximately
$7,000 per month with a $25,000 down payment. Mr. Cullen agreed that the
issuance of 1,000,000 shares of the Company's stock in exchange for his $500,000
promissory note was properly cancelled by the Company and he relinquished any
claim to those 1,000,000 shares and the Company agreed to cancel the $500,000
promissory note.

In March of 2003, Art Beroff filed suit as a plaintiff against the Company in
the Second Judicial District Court, State of Nevada. Mr. Beroff claims that on
or about January 20, 1998, he had exercised an option to acquire nine percent
(9%) of the common stock of the Company's predecessor, Patterson Group, Inc.,
for $701.34 and had executed a Subscription Agreement for the purchase of
701,339 shares. Mr. Beroff claims the Company's predecessor accepted the
Subscription Agreement but that no stock certificate was ever issued for the
shares. The number of shares claimed could equate to approximately 70,134 shares
of the Company's current common stock. The Company has answered the complaint by
generally denying Mr. Beroff's claims. The Company notes the existence of an
indemnification agreement by Alexander H. Walker, Jr. respecting claims such as
Mr. Beroff's claims.

Item 2.  Changes in Securities.

On January 16, 2003, the Company issued 50,000 shares of common stock to Kirk S.
Schumacher upon exercise of an option to acquire the shares in consideration of
$.33 per share or $16,500. Such shares were issued in reliance on the exemption
from registration contained in section 4(2) of the Securities Act of 1933, as
amended, and the certificates representing such shares bear a restrictive legend
reflecting the limitations on future transfer of these shares.

On February 12, 2003, the Company confirmed the December 4, 2000 issuance of
2,000,000 shares of common stock to Mark T. Cullen, and the February 14, 2001
issuance of 120,000 shares of common stock to Mr. Cullen, in settlement of a
lawsuit as further described in Item 1, Legal Proceedings.

Item 4.  Submission of Matter to a Vote of the Securities Holders.

No matter was submitted during the quarter year covered by this report to a vote
of the securities holders through the solicitation of proxies. No shareholder
action was taken during that time via a consent of a majority of shareholders
pursuant to applicable state law.

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

            (a) Exhibits.

            Exhibit 3.  Amended and Restated Bylaws.

            Exhibit 10.1.  Employment Agreement of Kirk S. Schumacher

            Exhibit 99.  Certification of CEO and CFO

            (b) Reports on Form 8-K. None.


                                       13
<PAGE>


                                   SIGNATURES

            In accordance with the requirements of the Securities Exchange Act
of 1934, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

Dated:  May 14, 2003.               SULPHCO, INC. (Registrant)

                                    /s/ Rudolf W. Gunnerman
                                    --------------------------
                                    By: Rudolf W. Gunnerman
                                    Its: Chairman of the Board of Directors
                                    and Chief Executive Officer


                                    /s/ Pat Lacy
                                    --------------------------
                                    By: Pat Lacy
                                    Its: Controller and Treasurer
                                    (Principal Financial and Accounting Officer)


                                       14
<PAGE>


                                 CERTIFICATIONS

         I, Rudolf W. Gunnerman, Chairman of the Board of Directors and Chief
Executive Officer, certify that:

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

         2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;

         3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

         4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

         a) designed such disclosure controls and procedures to ensure that
         material information relating to the registrant, including its
         consolidated subsidiaries, is made known to us by others within those
         entities, particularly during the period in which this quarterly report
         is being prepared;

         b) evaluated the effectiveness of the registrant's disclosure controls
         and procedures as of a date within 90 days prior to the filing date of
         this quarterly report (the "Evaluation Date"); and

         c) presented in this quarterly report our conclusions about the
         effectiveness of the disclosure controls and procedures based on our
         evaluation as of the Evaluation Date;

         5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):

         a) all significant deficiencies in the design or operation of internal
         controls which could adversely affect the registrant's ability to
         record, process, summarize and report financial data and have
         identified for the registrant's auditors any material weaknesses in
         internal controls; and

         b) any fraud, whether or not material, that involves management or
         other employees who have a significant role in the registrant's
         internal controls;

         6. The registrant's other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Dated: May 14, 2003.                         /s/ Rudolph W. Gunnerman
                                             -----------------------------------
                                             By: Rudolph W. Gunnerman
                                             Its: Chairman of the Board, and
                                             Chief Executive Officer

                                       15
<PAGE>

                                 CERTIFICATIONS

         I, Pat Lacy, Controller and Treasurer, certify that:

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

         2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;

         3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

         4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

         a) designed such disclosure controls and procedures to ensure that
         material information relating to the registrant, including its
         consolidated subsidiaries, is made known to us by others within those
         entities, particularly during the period in which this quarterly report
         is being prepared;

         b) evaluated the effectiveness of the registrant's disclosure controls
         and procedures as of a date within 90 days prior to the filing date of
         this quarterly report (the "Evaluation Date"); and

         c) presented in this quarterly report our conclusions about the
         effectiveness of the disclosure controls and procedures based on our
         evaluation as of the Evaluation Date;

         5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):

         a) all significant deficiencies in the design or operation of internal
         controls which could adversely affect the registrant's ability to
         record, process, summarize and report financial data and have
         identified for the registrant's auditors any material weaknesses in
         internal controls; and

         b) any fraud, whether or not material, that involves management or
         other employees who have a significant role in the registrant's
         internal controls;

         6. The registrant's other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Dated: May 14, 2003.                /s/ Pat Lacy
                                    --------------------------
                                    By: Pat Lacy
                                    Its: Controller and Treasurer
                                    (Principal Financial and Accounting Officer)

                                       16