<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


     (Mark One)

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

         For the quarterly period ended June 30, 2003

                                       OR

     [ ] TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT OF 1934

         From the transition period from ___________ to ____________.

                        Commission File Number 000-31735

                            MICROSIGNAL CORPORATION
                            -----------------------
         (Exact name of small business issuer as specified in its charter)

                    Nevada                              91-1997729
                    ------                              ----------
      (State or other jurisdiction of       (IRS Employer Identification No.)
       incorporation or organization)

                 345 Southpointe Boulevard, Canonsburg, PA 15317
                 -----------------------------------------------
                    (Address of principal executive offices)

                                 (724) 746-9476
                                 --------------
                           (Issuer's telephone number)

                                       N/A
                                       ---
     (Former name,  former address and former fiscal year, if changed since last
     report)

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

                                                  Yes  X   No ____

As of August 14, 2003 there were 53,439,180 shares of Common Stock of the issuer
outstanding.



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                                TABLE OF CONTENTS

                          PART  I    FINANCIAL STATEMENTS



Item 1     Financial Statements                                              3

Item 2     Management's Discussion and Analysis or Plan of Operation         8
Item 3.    Controls and Procedures                                          11

                           PART II OTHER INFORMATION

Item 1     Legal Proceedings                                                12
Item 2     Changes in Securities                                            12
Item 3     Default upon Senior Securities                                   12
Item 4     Submission of Matters to a Vote of Security Holders              12
Item 5     Other Information                                                12
Item 6     Exhibits and Reports on Form 8-K                                 12




<PAGE>




                          PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

<TABLE>
<CAPTION>
                                               MICROSIGNAL CORPORATION
                                                    BALANCE SHEET
                                                    June 30, 2003
                                                     (Unaudited)

                                            ASSETS
<S>                                                                                              <C>
Current assets
  Cash                                                                                           $            4,722
                                                                                                 ------------------
    Total current assets                                                                                      4,722

Property and equipment, net of accumulated depreciation of
  $594,420                                                                                                   13,351

Other assets                                                                                                 22,036
                                                                                                 ------------------
                                                                                                 $           40,109
                                                                                                 ==================

                             LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
  Accounts payable                                                                               $           18,830
  Accrued expenses                                                                                          138,292
  Lease payable                                                                                              38,650
  Accrued interest payable                                                                                  832,571
  Notes payable                                                                                             759,339
  Notes payable - shareholders                                                                            1,367,650
  Deposits                                                                                                   40,000
                                                                                                 ------------------
    Total current liabilities                                                                             3,195,332

Commitments

STOCKHOLDERS' DEFICIT:
  Common stock, $.001 par value, 200,000,000 shares
    authorized, 53,439,180 shares issued and outstanding                                                     53,439
  Additional paid in capital                                                                              2,189,799
  Accumulated deficit                                                                                    (5,398,461)
                                                                                                 ------------------
                                                                                                         (3,155,223)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                                      $           40,109
                                                                                                 ==================
</TABLE>



                                       3
<PAGE>



<TABLE>
<CAPTION>

                                                MICROSIGNAL CORPORATION
                                               STATEMENTS OF OPERATIONS

                                                    Three Months Ended                       Six Months Ended
                                                        June 30,                                 June 30,
                                          -------------------------------------    -----------------------------------
                                                 2003                 2002               2003                2002
                                          ------------------    ---------------    ----------------    ---------------
                                              (Unaudited)         (Unaudited)        (Unaudited)         (Unaudited)
<S>                                       <C>                   <C>                <C>                 <C>
Revenues                                  $             -       $            -     $             -     $            -
Cost of revenues                                        -                    -                   -                  -
                                          ---------------       --------------     ---------------     --------------
Gross margin                                            -                    -                   -                  -

Cost and Expenses:
  General and administrative                      413,932                  494             437,374              2,656
                                          ---------------       --------------     ---------------     --------------

Loss from operations                             (413,932)                (494)           (437,374)            (2,656)

Interest expense                                   39,000               39,000              76,671             76,671
                                          ---------------       --------------     ---------------     --------------

Net loss                                  $      (452,932)      $      (39,494)    $      (514,045)    $      (79,327)
                                          ===============       ==============     ===============     ==============

Net loss per share:
  Net loss basic and diluted              $        (0.01)       $         (0.01)   $        (0.01)     $        (0.02)
                                          ===============       ===============    ===============     ===============


Weighted average shares
  outstanding:
    Basic and diluted                          50,927,216            4,396,339          37,594,990          4,396,339
                                          ===============       ==============     ===============     ==============
</TABLE>


                                       4
<PAGE>




                                            MICROSIGNAL CORPORATION
                                            STATEMENTS OF CASHFLOWS

<TABLE>
<CAPTION>
                                                                               Six                  Six
                                                                             Months                Months
                                                                              Ended                Ended
                                                                            June 30,             June 30,
                                                                       -----------------    ------------------
                                                                             2003                 2002
                                                                       -----------------    ------------------
                                                                          (Unaudited)          (Unaudited)
<S>                                                                    <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                                               $      (514,045)     $         (79,327)
Adjustments to reconcile net loss to cash used by
  operating activities:
    Common stock for services                                                  295,750                      -
Net change in:
  Accounts payable                                                               7,830                      -
  Accrued interest payable                                                      76,671                 76,671
                                                                       ---------------      -----------------

CASH FLOWS USED IN OPERATING
  ACTIVITIES                                                                  (133,794)                (2,656)
                                                                       ---------------      -----------------

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from shareholder notes payable                                        149,900                      -
                                                                       ---------------      -----------------

NET INCREASE (DECREASE) IN CASH                                                  2,755                 (2,656)
Cash, beg. of period                                                             1,967                  2,709
                                                                       ---------------      -----------------
Cash, end of period                                                    $         4,722      $              53
                                                                       ===============      =================

SUPPLEMENTAL CASH FLOW INFORMATION
  Interest paid                                                        $             -      $               -
  Income taxes paid                                                    $             -      $               -

NON-CASH TRANSACTIONS:
  Issuance of common stock for assets                                  $        12,490      $               -

</TABLE>


                                       5
<PAGE>



                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2003
                                   (Unaudited)

1.       GENERAL

The balance sheet of MicroSignal as of June 30, 2003, the related statements of
operations for the three and six months ended June 30, 2003 and 2002 and the
statements of cash flows for the six months ended June 30, 2003 and 2002
included in the financial statements have been prepared by MicroSignal without
audit. In the opinion of management, the accompanying condensed financial
statements include all adjustments (consisting of normal, recurring adjustments)
necessary to summarize fairly MicroSignal's financial position and results of
operations. The results of operations for the three and six months ended June
30, 2003 are not necessarily indicative of the results of operations for the
full year or any other interim period. The information included in this Form
10-QSB should be read in conjunction with Management's Discussion and Analysis
and Financial Statements and notes thereto included in MicroSignal's December
31, 2002 Form 10-KSB.


NOTE 2 - OTHER ASSETS

Other assets include a patent designed to improve the quality and efficiency of
magnetic resonance imaging ("MRI") systems and barcode technology acquired in
April 2003.


NOTE 3 - COMMON STOCK

On April 1, 2003, MicroSignal acquired 100% of the issued and outstanding shares
of Exxcode, Inc. for 25,000,000 shares of common stock valued at $12,490.
Exxcode has a proprietary bar code technology, which is used for tracking
medical records, x-rays and MRI's. The bar code can track MicroSignal's
technology. The barcode technology was recorded at the sellers' historical cost.

During the six months ending June 30, 2003, MicroSignal issued 4,150,000 shares
of common stock for services valued at $295,750.


NOTE 4 - COLLATERAL LOAN AGREEMENT

On February 23, 2003, MicroSignal filed a report on Form 8-K, which reported
under Item 1 that on February 7, 2003 MicroSignal entered into a Collateral Loan
Agreement and Promissory Note for up to $1,500,000 which would be secured by
93,750,000 shares of common stock. The common shares were retuned to MicroSignal
in May 2003 and were canceled.



                                       6
<PAGE>



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
        OR PLAN OF OPERATION

Forward Looking Statements

         When used in this Form 10QSB and in future filings by MicroSignal
Corporation with the Securities and Exchange Commission, the words or phrases
"will likely result," "management expects," or we expect," "will continue," "is
anticipated," "estimated," or similar expression or use of the future tense, are
intended to identify forward looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Readers are cautioned not to
place undue reliance on any such forward-looking statements, each of which speak
only as of the date made. These statements are subject to risks and
uncertainties, some of which are described below and others are described in
other parts of this Form 10QSB. Actual results may differ materially from
historical earnings and those presently anticipated or projected. We have no
obligation to publicly release the result of any revisions that may be made to
any forward-looking statements to reflect anticipated events or circumstances
occurring after the date of such statements.

Business

         MicroSignal Corporation (the "Company) was incorporated on August 21,
1987 as "Ragen Corporation" under the laws of the State of Nevada. On October
21, 1999, the Company entered into a reverse merger pursuant to Rule
368(a)(1)(B)if the Internal Revenue Code of 1986 as amended. Pursuant to this
reverse merger, the Company acquired 100% of the common stock of Pro Glass
Technologies, Inc., a Canadian corporation with three wholly owned subsidiaries
in exchange for the issuance of 17,714,000 shares of the Company's common stock.
The Company changed its name to "Pro Glass Technologies, Inc." and increased the
number of authorized common shares to 50,000,000 at that time. Pro Glass
Technologies, Inc. is the predecessor due to the reverse merger and Ragen was
the legal survivor. Pro Glass Technologies, Inc. was a holding company.

         Upon completion of the merger, the Company began engaging in the auto
glass repair and replacement business under "Windshield Superstores, Ltd." in
Calgary, Alberta. Fran Aiello became the President and CEO of the Company at
that time.

         On September 10, 2002, the Company entered into an Agreement and Plan
of reorganization with MicroSignal Corporation, a Pennsylvania corporation, and
exchanged 100% of the MicroSignal common stock in exchange for the issuance of
17,051,344 shares of the Company's common stock, or 94% of the Company. At that
time, the Company changed its name to "MicroSignal Corporation". At the same
time, the Company sold its auto glass repair and replacement business to its
former president, Frank Aiello, in change for the return of 150,000 shares of
the Company's common stock owned by him. Mr. Aiello assumed responsibility for
all the debts and liabilities of the auto glass repair and replacement business.
For accounting purposes, this transaction was treated as an acquisition of Pro
Glass and a recapitalization of MicroSignal, MicroSignal is the accounting
acquirer and the results of its operations carry over. Accordingly, the
operations of the Company while Pro Glass are not carried over and are adjusted
to $0. As part of this transaction, the Company's fiscal year end changed from
September 30 to December 31.

                                       8

<PAGE>

         The Company has developed a product designed to improve the quality and
efficiency of magnetic resonance imaging ("MRI") systems. The product consists
of a combination of hardware and software compatible with all MR machines,
designed to improve the image quality as well as the display of the final MRI
exam. At the core of the system is a totally novel method of reconstructing the
MR information obtained by the machine (the raw data), developed by Dr. Jeffery
Taft. The Company's product uses a unique algorithm, exchange analytic
computation technique (EXACT), which decouples the size of the raw data from the
image matrix size and overcomes a lot of the inherent limitations of the Fourier
transformations. The technology allows tremendous flexibility once the MRI data
has been acquired; it is possible using SLICES(TM) to obtain sharply magnified
images, up to ten times the original magnification, without creating pixel
artifacts inherent to the optical zoom provided by all manufacturers. The major
benefits of MSC's SLICES technology are:

Increased information extraction

         Helps with the elimination of some artifacts
         Improves the radiologist's productivity
         Reduces patient re-scan and call back
         Reduces patient scan time Reduces film costs

         The Company intends to proceed with marketing and sales of the
Company's proprietary product.

         Significant opportunities exist for follow-on product both in MRI and
in other computed medical imaging applications such as CAT scan and nuclear
medicine. Exciting opportunities exist to apply new proprietary MicroSignal
Corporation technology to stroke prediction, breast cancer detection and cardiac
evaluation, thus expanding MRI into use for the top three disease conditions in
the U.S. Sales opportunities for these additional products are in the billions
of dollars.

         Additional opportunities exist to make use of the Internet to perform
high-end teleradiology and Picture Archiving and Control. MicroSignal
Corporation can become the preferred channel not only for computing and
displaying medical images, but also for transporting them. The transport, if
done properly, can result in an ongoing revenue stream valued in the hundreds of
millions of dollars per year within five years. There can be no assurances that
the Company will see these results. Future revenues are dependent upon the
Company being able to secure outside financing and raising additional capital to
enable it to commence operations in a meaningful manner, neither of which the
Company has commitments to receive. Until such time as the Company is able to
secure additional financing through loans or capital raising, the Company's
efforts to commence revenue-producing operations will have to be scaled back.


                                       9
<PAGE>

Financial Condition and Changes in Financial Condition

Overall Operating Results:

         The Company plans to seek financing and capital to allow it to exploit
this technology as well as to enhance and improve on this technology. During
2003, the Company intends to seek the necessary financing to allow it to
implement its business plan and to commence operations in a meaningful way.

          We have had no revenues for the three and six months ended June 30,
2003 and 2002, respectively.

         Our operating expenses for the quarter ended June 30, 2003 were
$419,932 and were primarily incurred for consulting, rent and other services
rendered in connection with our financial reporting obligations with the
Securities and Exchange Commission as well as stock transfer agent fees and
financial consulting. Operating expenses for the prior year quarter ended June
30, 2002 totaled $494 for general expenses.

         Our operating expenses for the six months ended June 30, 2003 were
$437,374 and were primarily incurred for consulting, rent and other services
rendered in connection with our financial reporting obligations with the
Securities and Exchange Commission as well as stock transfer agent fees.
Operating expenses for the six months ended June 30, 2002 totaled $2,656 for
general expenses.


Liquidity and Capital Resources:


         The Company has approximately $4,700 in current assets compared to
current assets of approximately $2,000 for the year ended December 31, 2002. The
Company's current liabilities for the period ended June 30, 2003 are
approximately $3,195,000 compared to current liabilities of approximately
$2,960,000 for the year ended December 31, 2002. The current assets for the
period ended June 30, 2003 consisted of cash of $4,722. Total assets were
approximately $12,000 for the year ended December 31, 2002 composed of the
Company's patent of approximately $9,500 and its cash.


                                       10
<PAGE>

         At June 30, 2003, the Company had negative working capital of
approximately $3,190,000 which consisted of current assets of approximately
$4,700 and current liabilities of approximately $3,195,000. At December 31,
2002, the Company had negative working capital of approximately $2,961,000 which
consisted of current assets of approximately $2,000 assets and current
liabilities of approximately $2,963,000. The current liabilities of the Company
at June 30, 2003 are composed primarily of notes payable to shareholders of
$1,367,650, notes payable of $759,339, accrued interest payable of $832,571,
accrued expenses of $138,292, lease payable of $38,650, deposits of $40,000 and
accounts payable of $18,830.

         The Company will attempt to carry out its business plan as discussed
above. The Company cannot predict to what extent its lack of liquidity and
capital resources will hinder its business plan prior to commencement of its
proposed operations.

Need for Additional Financing

         The Company's existing capital is not be sufficient to meet the
Company's cash needs, including the costs of compliance with the continuing
reporting requirements of the Securities Exchange Act of 1934, as amended.

         No commitments to provide additional funds have been made by management
or other stockholders. Accordingly, there can be no assurance that any funds
will be available to the Company to allow it to cover its expenses.

         The Company might seek to compensate providers of services by issuances
of stock in lieu of cash.

Employees

         As of June 30, 2003, the Company had three employees.

Description of Properties

         The Company presently leases office space on a three-year lease, which
ends in September 2005. The monthly lease payment is $1,854. The Company
anticipates that this space is sufficient for the near future.

Inflation

         The Company's results of operations have not been affected by inflation
and management does not expect inflation to have a significant effect on its
operations in the future.


ITEM 3.  CONROLS AND PROCEDURES

         Based on the evaluation conducted by Mr. Matthew McConaghy, both the
Chief Executive Officer ("CEO") and Chief Accounting Officer ("CAO"), as of a
date within 90 days of the filing date of this quarterly report ("Evaluation
Date"), of the effectiveness of the Company's disclosure controls and
procedures, Mr. Matthew McConaghy concluded that, as of the Evaluation Date, (1)
there were no significant deficiencies or material weaknesses in the Company's
disclosure controls and procedures, (2) there were no significant changes in
internal controls or in other factors that could significantly affect internal
controls subsequent to the Evaluation Date and (3) no corrective actions were
required to be taken.


                                       11
<PAGE>



PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

ITEM 2. CHANGES IN SECURITIES

         On February 7, 2003 MicroSignal entered into a Collateral Loan
Agreement and Promissory Note for up to $1,500,000 which would be secured by
93,750,000 shares of common stock. The common shares were retuned to MicroSignal
in May 2003 and were canceled.

         In April 2003, MicroSignal issued Matthew G. McConaghy 1,370,000 shares
of common stock for services rendered. At the same time, MicroSignal issued an
additional 1,200,000 shares to Robert Taulli for services to be provided to
MicroSignal. These shares were registered on a Form S-8 Registration Statement.

         In April 2003, MicroSignal issued 25,000,000 shares of its common stock
in restricted form to the shareholders of Exxcode, Inc., a Nevada corporation,
in connection with the Company's acquisition of Exxcode.

         In April 2003, MicroSignal issued 325,000 shares of its common stock
for services rendered.

         In May 2003, MicroSignal issued 1,055,000 shares of its common stock
for services rendered.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

a.  Exhibits


                                       12
<PAGE>

Exhibit Number                      Name of Exhibit

None

b. Reports on Form 8-K

None.

Signatures

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

(Registrant) MICROSIGNAL CORPORATION
                  By                 /s/  Mr. Matthew G. McConaghy
                                    ------------------------------
                                    Mr. Matthew G. McConaghy, President & CEO

                  Date     August 14, 2003


                                       13
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