<PAGE>


                                    UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, DC  20549

                          _________________________________

                                      FORM 10-Q


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

                  For the Fiscal Quarter Ended:  September 30, 1997

                           Commission File Number:  0-26756

                          _________________________________

                                  GEOGRAPHICS, INC.
                (Exact name of registrant as specified in its charter)


          WYOMING                                              87-0305614
(State or other jurisdiction of                              (IRS Employer
incorporation or organization)                               Identification No.)


                  1555 Odell  Road, P.O. Box 1755, Blaine, WA  98231
             ------------------------------------------------------------
                 (Address of principal executive office and zip code)

                                    (360) 332-6711
             ------------------------------------------------------------
                 (Registrant's telephone number including area code)


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

                        Yes      X         No
                               -----             -----

The registrant had 9,717,877 shares of common stock outstanding as of November
14, 1997.


                         DOCUMENTS INCORPORATED BY REFERENCE

                                         None

                                  PAGE 1 OF 11 PAGES
                               Exhibit Index at page 10

<PAGE>

                                        PART I

                                FINANCIAL INFORMATION

ITEM 1   FINANCIAL STATEMENTS

         Geographics, Inc. (the "Company" or "Geographics") has attached to 
this Report and by this reference incorporated herein the consolidated 
balance sheets as of September 30, 1997 (unaudited) and March 31, 1997 
(audited), the unaudited statements of operations for the six months ended 
September 30, 1997 and September 30, 1996, and the unaudited consolidated 
statements of cash flows for the six months ended September 30, 1997 and 
September 30, 1996, together with the notes thereto. 

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

         The following discussion should be read in conjunction with the 
Company's consolidated financial statements and the notes thereto appearing 
elsewhere on this Report.

FORWARD-LOOKING STATEMENTS

         Statements herein concerning expectations for the future constitute 
forward-looking statements which are subject to a number of known and unknown 
risks, uncertainties and other factors which might cause actual results to 
differ materially from those expressed or implied by such forward-looking 
statements.  Forward-looking statements herein include, but are not limited 
to, those concerning trends relating to the Company's profitability and gross 
profit margins; the ability of the Company to increase the size and 
capabilities of its accounting department, and to improve its internal 
controls; the ability of the Company to refinance its existing revolving 
credit facility, to identify potential buyers for all or part of its business 
or to raise additional debt or equity financing sufficient to meet its 
working capital requirements; and the ability of the Company to continue 
operations as a going concern. Relevant risks and uncertainties include, but 
are not limited to, slower than anticipated growth of the pre-print market, 
loss of certain key customers, or insufficient market acceptance of the 
Company's specialty papers products; actions, including price reductions, by 
the Company's competitors; increases in the costs of raw materials used to 
produce the Company's products; loss of favorable trade credit, supply terms, 
reliable and immediately available raw material supply and other favorable 
terms with certain key vendors; greater than expected costs incurred in 
connection with the implementation of a management information system; 
failure to realize expected improved efficiencies from the Company's 
automated production equipment; increases in the costs of production; 
unfavorable determinations of pending lawsuits or disputes; loss of key 
personnel; and inability to secure additional working capital when and as 
needed.  Additional risks and uncertainties include those described under 
"Risk Factors" in Part I of the Company's Annual Report on Form 10-K for the 
year ended March 31, 1997 and those described from time to time in the 
Company's other filings with the Securities and Exchange Commission, press 
releases and other communications.

                                    Page 2
<PAGE>

OVERVIEW

         Geographics was incorporated as a Wyoming corporation on September 
20, 1974.  From its inception until fiscal 1991, the Company was engaged 
exclusively in the manufacture and wholesale marketing of various rub-on and 
stick-on lettering, stencils, graphics arts products and other signage 
products.  In 1991, the Company began the development of "pre-print" or 
"specialty" paper products consisting of paper on which photographs or other 
art images are printed and which is then cut to size.  In 1992, the Company 
introduced its first specialty paper product under the Geopaper brand name.   
The Company now has several specialty paper products using Geopaper designs, 
including stationery, business cards, brochures, memo pads, posterboards and 
paper cubes, which, in North America, are sold primarily to office supply 
superstores and mass market retailers, and which are also distributed 
internationally through the Company's subsidiaries in Canada, Europe and 
Australia.  The specialty papers group now constitutes the Company's 
principal business, with approximately 81% and 71% of the Company's total 
sales in the six months ended September 30, 1997 and the year ended March 31, 
1997, respectively, attributable to sales of Geopaper products.  Primarily as 
a result of sales generated by the specialty papers group, the Company has 
experienced substantial growth, with total sales increasing from $6,900,875 
for fiscal 1994 to $23,840,506 for fiscal 1997, an increase of 245%.

         Primarily to develop its specialty papers group, the Company has 
made substantial investments to expand its facilities, purchase and install 
automated production equipment and an integrated management information 
system and enhance administrative and other infrastructure systems. The 
Company commenced installation of new production equipment and information 
systems in the third quarter of fiscal 1997. The Company experienced delays, 
set-backs and unanticipated additional expenses in the installation of the 
production equipment and the management information system.  Moreover, the 
management information system failed to perform as promised by vendors. As a 
result, the Company has not yet fully realized the originally anticipated 
economic benefits and efficiencies from these capital expenditures.  These 
unanticipated expenses and operational inefficiencies, together with price 
reductions for the Company's products and cost increases for certain raw 
materials, have had a negative impact on the Company's gross margins and 
contributed to a substantial net loss for fiscal 1997 and the first two 
quarters of fiscal 1998. In addition, since May 1997, the Company has been in 
default of several financial covenants under its revolving credit facility, 
the Company's primary source of working capital, and borrowings under the 
facility have exceeded permitted borrowing base limitations.  The existence 
of these defaults constitutes a default under the Company's mortgage loans 
and certain equipment lease facilities.  The report of the Company's auditors 
dated August 26, 1997 relating to the Company's Consolidated Financial 
Statements for the fiscal year ended March 31, 1997 states that the Company's 
fiscal 1997 losses and non-compliance with covenants under its revolving 
credit facility raise substantial doubt about the Company's ability to 
continue as a going concern. See "-Liquidity and Capital Resources."

                                   Page 3
<PAGE>

RECENT DEVELOPMENTS

         On October 2, 1997, production employees at the Company's 
headquarters in Whatcom County, Washington voted 126 to 61 against union 
representation by the Graphics Communications Union, Local 767M. The results 
of the election were subsequently certified by the National Labor Relations 
Board.

         In October, 1997 the Company took steps to reduce operating costs, 
including layoffs of approximately 45 employees, decreases in senior 
executive compensation, a company-wide wage freeze, and a management 
restucturing that included the permanent elimination of two vice-president 
level positions. The company projects that these steps will result in cost 
savings in excess of $1,300,000 over the next 12 months.

        The company announced on November 4, 1997 that its Board of Directors 
appointed Mr. Richard Lundquist to the Board and to its Audit Committee. Mr. 
Lundquist fills a vacancy that was created by the resignation of Mr. Luis 
Morato.

       On November 6, 1997, the Board of Directors named Bruce Clawson as the 
Company's Chief Financial Officer. Mr. Clawson has previously served as the 
Company's Vice President of Finance since April 1997.

         OVERSTATEMENT OF GROSS PROFITS AND INVENTORY.  In connection with 
Company's audit for the fiscal year ended March 31, 1997, management 
determined that, during fiscal 1997, the use of certain accounting procedures 
and estimates based on historical results caused an overstatement of gross 
margin and inventories on an interim basis. Although the Company believes 
that the overstatements occurred over the course of fiscal 1997, it has 
determined that, given the complexity of the issues involved, it is not 
possible to allocate accurately the necessary adjustment to any interim 
quarterly period in fiscal 1997.  As a result, the adjustment to gross margin 
and inventories was made at the end of fiscal 1997, and previously reported 
quarterly information for fiscal 1997 has not been restated. The cumulative 
effect in fiscal 1997 of the overstatement, when combined with reserves for 
obsolete inventory, was a reduction of both gross margin and inventory of 
approximately $5,600,000.  The effect that an interim allocation of such 
adjustments might have had on the results for the first two quarters of 
fiscal 1997, if any, are not reflected in the period-to-period comparisons 
for gross margin included in this Report.  Accordingly the comparisons of 
gross margin and inventory for each of the first three quarters of fiscal 
1997 with the corresponding quarters of fiscal 1998 and fiscal 1996 may not 
be entirely meaningful.

                                    Page 4
<PAGE>

         WEAKNESSES IN INTERNAL CONTROLS.  In connection with the Company's 
audit for the fiscal year ended March 31, 1997, management determined that 
several weaknesses in the Company's internal controls occurred during fiscal 
1997. Management continues to take steps to improve its internal controls, 
including increasing the size and capabilities of its accounting department 
and improving its management information systems. However, there can be no 
assurance that the Company will not encounter other internal control 
weaknesses. The failure of the Company's accounting and finance systems to 
provide accurate information necessary to monitor the Company's financial 
position, results of operations and liquidity could have a material adverse 
effect on the Company's business, financial condition and results of 
operations.

         SEASONALITY.  A significant portion of the Company's customer orders 
are placed between August and October of each year for shipment during the 
Company's second and third fiscal quarters, which includes the Christmas 
season, with the largest levels of sales historically occurring in the second 
half of the calendar year.  As a result, the Company has experienced, and is 
expected to continue to experience, seasonal fluctuations in its operating 
results.

         QUARTERLY FLUCTUATIONS.  The Company's operating results may 
fluctuate significantly from period to period as a result of a variety of 
factors, including product returns, purchasing patterns of consumers, the 
length of the Company's sales cycle to key customers and distributors, the 
timing of the introduction of new products and product enhancements by the 
Company and its competitors, technological factors, variations in sales by 
product and distributions channel, and competitive pricing.  Consequently, 
the Company's revenues may vary significantly by quarter and the Company's 
operating results may experience significant fluctuations.

         BACKLOG.  The Company's backlog of orders as of November 13, 1997 
was $763,205. Historically, the Company has generally filled its backlog of 
orders within 2 weeks. The Company includes in backlog the value of all 
purchase orders received from customers for product not yet shipped and 
invoiced.  Because the Company only recently implemented internal controls 
necessary to determine backlog, the Company is unable to determine backlog at 
March 31, 1997 or at the end of any other prior period.  The Company's 
backlog is subject to fluctuations as a result of seasonality in the 
Company's business and other factors. Moreover, the Company's backlog may not 
necessarily lead to sales in any future period. The Company's failure or 
inability to ship product with respect to a purchase order could result in 
cancellation of such purchase order and a reduction of backlog, and could 
have a material adverse effect on the Company's business, financial condition 
and results of operations.

         COLLECTIONS OF ACCOUNTS RECEIVABLE.  Difficulties encountered by the 
Company in fiscal 1997 in connection with the installation and implementation 
of a new electronic data interchange ("EDI") software package resulted in 
significant delays in the required electronic delivery of invoices to certain 
key customers.  These delays resulted in significant corresponding delays in 
the collection of accounts receivable during the third and fourth quarters of 
fiscal 1997 which contributed to a substantial increase in the Company's 
trade receivable balance and negative operating cash flow at the end of 
fiscal 1997. The Company believes it has resolved the EDI invoicing 
limitations, but any further invoicing or collection difficulties could have 
a material adverse effect on the Company's business, financial condition or 
results of operations.

                                    Page 5
<PAGE>

         MAINTENANCE OF LARGE INVENTORY.  As of September 30, 1997, the 
Company maintained an inventory of lettering, signage and specialty papers of 
$9,487,798. While the Company believes that the maintenance of an extensive 
inventory provides it substantial flexibility in responding to incoming 
orders, enhances its reputation as a major supplier in the industry and 
offers certain economies of scale in its purchasing program, the maintenance 
of an extensive inventory requires a substantial outlay of funds which may 
not be recovered for extended periods of time.  In addition, the Company has 
generally observed that raw materials prices change more rapidly than the 
pricing for the Company's products.  Consequently, the Company may be 
required to absorb price increases on raw materials before it is able to pass 
through such increases to its customer base.  Also, to the extent that 
purchasing preferences of the Company's customers change over time, the 
Company's inventory may become less marketable, which may require the Company 
to dispose of such inventory on an unprofitable basis.  The Company has made 
an effort to address these problems by increasing its reserves for obsolete 
inventory since March 31, 1996 from $100,000 to $1,390,000 as of September 
30, 1997. However, if the Company were not able to recover a substantial 
portion of its investment in inventory, this would have a material adverse 
effect on the Company's business, financial condition and results of 
operations.

RESULTS OF OPERATIONS

         SALES.  Sales increased 22% to $8,363,293 in the quarter ended 
September 30, 1997 from $6,858,676 in the quarter ended September 30, 1996. 
Sales increased 23% to $15,971,552 in the six month period ended September 
30, 1997 from $13,029,743 in the same period a year earlier.  The increase 
is primarily due to increased sales of the Company's products to major mass 
market retailers, and the continued market acceptance of the Company's Geopaper
products, including Geoposterboards.

         Geopaper products were responsible for 82% and 81% of sales in the 
quarter and six month period ended September 30, 1997, respectively, compared 
to 69% in the corresponding three and six month periods of the prior year.  
Sales of Geopaper have increased 43% to $12,896,305 in the six months ended 
September 30, 1997  from $9,021,249 in the corresponding six month period of 
the prior year.

         Sales of the Company's lettering and signage products decreased  
approximately $568,308 and $933,247 in the quarter and six month period 
ended September 30, 1997 compared to approximately $2,057,603 and 
$4,008,494 in the quarter and six month period ended September 30, 1996. The 
Company expects this product group to continue to decrease as a percentage of 
sales and that sales of lettering and signage products as an industry may 
continue to decline over time as the use of personal computers increases. 
Sales of the Company's lettering and signage products have decreased as a 
percentage of total sales to 19% from 31% for the six months ended September 
30, 1997 and September 30, 1996, respectively.

                                    Page 6
<PAGE>

         International sales of Geographics products were $2,053,139 and 
$3,737,258 for the quarter and six month period ended September 30, 1997, 
respectively, and $1,523,100 and $2,722,621 for the quarter and six month 
period ended September 30, 1996, respectively. International sales of 
Geographics products represented 25% and 23% of the Company's total sales for 
the quarter and six month period ended September 30, 1997, respectively, 
compared to 22% and 21% , respectively, of total sales for the same periods 
in the prior year. 

         GROSS MARGIN.  Gross profit margin as a percentage of sales was 
16.1% for the quarter ended September 30, 1997, compared to 40.5% for the 
same period in the prior year. For the six month period ended September 30, 
1997, gross profit margin as a percentage of sales was 11.9%, compared to 
40.1% for the same period in the prior year. The decreases were primarily due 
to price reductions for the Company's specialty paper products implemented in 
August 1996 and April 1997 and a continuing shift in mix of sales to lower 
margin Geopaper products. In connection with the Company's audit for the 
fiscal year ended March 31, 1997, management determined that, during fiscal 
1997, the use of certain accounting procedures and estimates based on 
historical results caused an overstatement of gross margin and inventories on 
an interim basis. Although the Company believes that the overstatements 
occurred over the course of fiscal 1997, it has determined that, given the 
complexity of the issues involved, it is not possible to allocate accurately 
the necessary adjustment to any interim quarterly period during fiscal 1997. 
As a result, the adjustment to gross margin and inventories was made at the 
end of the fiscal year ended March 31, 1997, and previously reported 
quarterly information for fiscal 1997 has not been restated.  Accordingly, 
gross profit margin for both the quarter and six month period ended September 
30, 1996 does not reflect the effect, if any, that an interim allocation of 
this adjustment might have had on the results for such periods. The 
cumulative effect in fiscal 1997 of the overstatement, when combined with 
reserves for obsolete inventory, was a reduction of both gross margin and 
inventory of approximately $5,600,000.  See "-Overview-Overstatement of Gross 
Margin and Inventories."

         SELLING, GENERAL AND ADMINISTRATIVE EXPENSES.  The Company's 
selling, general and administrative (S,G&A) expenses, which consist of 
payroll, advertising, commissions, administrative, accounting, legal and 
other costs, increased as a percentage of sales during the quarter ended 
September 30, 1997 to 34.5%, as compared to 28.8% during the same period in 
the prior year.  S,G&A expenses increased as a percentage of sales to 35.9% 
for the six month period ended September 30, 1997 as compared to 31% for the 
same period in the prior year. The increases are primarily the result of 
increased costs associated with advertising allowances, volume rebates and 
other promotional payments made to key customers.

         INTEREST EXPENSE.  The Company's interest expense for the quarter 
ended September 30, 1997 increased 106% to $419,873 compared to $203,341 for 
the same period in the prior year. The Company's interest expense for the six 
month period ended September 30, 1997 increased 115% to $848,197, compared to 
$394,112 for the same period in the prior year. The increase in interest 
expense was primarily the result of substantially increased borrowings under 
the Company's revolving credit facility during fiscal 1998. Borrowings 
increased due primarily to operating losses incurred by the Company in fiscal 
1997 and 1998. Borrowings also increased in part due to delays in the 
collection of accounts receivable, which resulted from problems encountered 
by the Company in the electronic delivery of invoices to major customers 
during fiscal 1997 and the first quarter of fiscal 1998. See 
"-Overview-Collections of Accounts Receivable."  Interest expenses also 
increased as a result of additional borrowings in the form of capital leases 
and mortgage loans related to equipment purchases and expansions to the 
Company's Blaine manufacturing facility made during fiscal 1997 and the 
first six months of fiscal 1998.

                                    Page 7
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

         As a result of the rapid growth of the Company's specialty papers 
group, capital expenditures relating to the purchase and installation of 
automated production equipment and a management information system, operating 
losses and other factors, the Company has required, and continues to require, 
substantial external working capital.  Moreover, subsequent to the end of 
fiscal 1997, the Company has experienced working capital short-falls which 
have required the Company to delay payments to certain vendors, delay planned 
purchases, institute internal cost reduction measures and take other steps to 
conserve operating capital.  During fiscal 1997, operating losses totaled 
$6,261,298, and the Company experienced negative operating cash flows of 
$6,601,926.  During the quarter ended September 30, 1997, operating losses 
totaled $1,543,203. However, the Company experienced positive operating cash 
flows of $1,215,290 during the quarter ended September 30, 1997, primarily as 
a result of substantial reductions in trade accounts receivable balances 
during the quarter. This reduction in trade accounts receivable was due to 
improvements in the Company's electronic data interchange ("EDI") billing 
systems and procedures which resulted in improved collections. This 
improvement in billing and collections resulted in positive operating cash 
flows of $107,672 in the six months ended September 30, 1997, in spite of 
operating losses during the same period of $3,831,615.

         At the date of this Report, the Company's only available source of 
working capital consisted of borrowings available under its revolving credit 
facility. The revolving credit facility permits borrowings of up to $12.0 
million subject to a borrowing base limitation of 80% of the value of the 
Company's eligible accounts receivable and 55% of the value of its inventory, 
net of certain reserves. Borrowings under the facility bear interest at the 
prime rate and are secured by substantially all of the Company's assets.  
Under the terms of the facility, the Company is required to comply with a 
number of financial covenants relating to, among other things, the 
maintenance of minimum net worth, debt-to-equity ratios and cash flow 
coverage ratios.

         Since May 1997, the Company has failed to comply with the net worth, 
debt-to-equity ratios and cash flow coverage ratios under the revolving 
credit facility, and borrowings under the facility exceeded the permitted 
borrowing base limitations.  The Company's lender has also provided the 
Company with several mortgage loans and equipment loans, and the 
defaults under the revolving credit facility constitute a default under 
these other loans.  The report of the Company's auditors dated August 26, 
1997 relating to the Company's Consolidated Financial Statements for the 
fiscal year ended March 31, 1997 states that the Company's fiscal 1997 losses 
and non-compliance with covenants under its revolving credit facility raise 
substantial doubt about the Company's ability to continue as a going concern. 
 The Company's Consolidated Financial Statements for the fiscal year ended 
March 31, 1997 (as well as the Unaudited Consolidated Financial Statements 
for the fiscal quarter ended September 30, 1997 included in this Report) were 
prepared assuming that the Company will continue as a going concern and do 
not include any adjustments that might result from the outcome of this 
uncertainty.

                                    Page 8
<PAGE>

         The Company entered into a short-term forbearance agreement with its 
lender, effective November 14, 1997, pursuant to which the lender agreed to 
extend the expiration date of the revolving credit facility to November  , 
1997, to increase the $12.0 million commitment by a $300,000 stand-by letter 
of credit, to permit borrowings of up to $3,000,000 million in excess of the 
applicable borrowing base limitation (not to exceed the $12.0 million 
revolving credit facility commitment) and to forbear from asserting its 
rights with respect to the Company's non-compliance with the financial 
covenants as well as the defaults under the Company's mortgage loans and 
equipment loans. The Company plans to request a further extension of the 
forebearance agreement upon expiration of the current extension. There can be 
no assurance that the lender will continue to permit borrowings under the 
revolving credit facility, that the lender will agree to further extend the 
facility's expiration date or that the Company would be able to refinance or 
replace the facility on acceptable terms when and as needed.

         The Company currently projects continuing losses and potentially 
negative cash flows from operations for the remainder of fiscal 1998. The 
exact amount and timing of the Company's capital requirements will be 
determined by numerous factors, including the level of, and gross margin on, 
future sales, the outcome of outstanding contingencies and disputes such as 
pending lawsuits, payment terms obtained from the Company's vendors and the 
timing of capital expenditures. However, even if the Company's lender were to 
continue to waive all existing defaults under the Company's revolving credit 
facility, the Company expects that available borrowings under the facility 
may not be sufficient to satisfy its working capital requirements beyond 
December 31, 1997.  Furthermore, although the Company's lender has permitted 
borrowings under the revolving credit facility in spite of existing defaults, 
there can be no assurance that it will continue to do so. Accordingly, the 
Company is delaying payments to vendors, instituting internal cost reduction 
measures and taking other steps to conserve operating capital.  As a result, 
the Company's vendors may place the Company on credit hold or take other 
actions against the Company, including the termination of their relationship 
with the Company or the initiation of collection proceedings.  

         In October, 1997 the Company took steps to reduce operating costs, 
including layoffs of approximately 45 employees, decreases in senior 
executive compensation, a company-wide wage freeze, and a management 
restructuring that included the permanent elimination of two vice-president 
level positions. The Company projects that these steps will result in cost 
savings  in excess of $1,300,000 over the next 12 months.

         The Company has been actively pursuing possible sources of 
additional capital and has engaged an investment banker to assist in the 
evaluation and pursuit of financing transactions, which could include the 
issuance of debt or equity securities or the sale of all or part of the 
Company's assets.  During the week of November 3, 1997 the Company received 
several offers, subject to a number of conditions, for the purchase of 
portions of its assets related its lettering and signage business. However, 
as of the date of this report, the Company had not yet entered into any 
binding agreements with regards to any such offer. Though such offers are 
under active consideration by management, the transactions contemplated 
thereby are subject to satisfaction of a number of conditions precedent, and 
there can be no assurance that any such transaction will be consummated. 
Further, there can be no assurance that the Company will be able to obtain 
additional sources of working capital when and as needed or that the terms of 
any such funding will be acceptable to the Company.  Any equity financing may 
involve substantial dilution to the interests of the Company's shareholders.

         The failure to obtain an increase in borrowing availability under, 
and to extend the expiration date of, the revolving credit facility, or to 
otherwise obtain sufficient funds when  and as needed to satisfy its working 
capital requirements could force the Company to curtail or further 
restructure operations, seek extended payment terms from its vendors or seek 
protection under the federal bankruptcy laws.

                                    Page 9
<PAGE>

                                       PART II
                                  OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

(a) The following documents are filed as part of this Report:

Exhibit Number
(Referenced to
 Item 601 of 
Registration S-K)       Description of Document
______________          _______________________

    10.16               Financial Advisory Agreement, dated August 6, 1997,
                        between Geographics, Inc. and Cruttenden Roth,
                        Incorporated
    10.17               Subscription Agreement, dated October 9, 1997, between
                        Geographics, Inc. and First Prudential Investment Fund,
                        Inc.
     11.1               Statement re computation of net income (loss) per share
     27.1               Financial Data Schedule


(b) No Current Reports on Form 8-K were filed by the Company during the fiscal 
quarter ended September 30, 1997.

                                    Page 10
<PAGE>

                                      SIGNATURES

         Pursuant to the requirements of Section 13 or 15(d) of the 
Securities Exchange Act of 1934, the Registrant has duly caused  this Report 
to be signed on its behalf by the undersigned, thereunto duly authorized on 
this  14th day of November, 1997.

                                       GEOGRAPHICS, INC.


                                       By:  /s/ RONALD S. DEANS
                                           -------------------------------------
                                                      Ronald S. Deans
                                            CHAIRMAN OF THE BOARD, PRESIDENT AND
                                                   CHIEF EXECUTIVE OFFICER


                                       By:  /s/ BRUCE A. CLAWSON
                                           -------------------------------------
                                           VICE PRESIDENT OF FINANCE
                                           AND CHIEF FINANCIAL OFFICER
                                          (Principal Financial Officer)


                                    Page 11
<PAGE>

                            INDEX TO FINANCIAL STATEMENTS

<TABLE>

<S>                                                                                                     <C>
Consolidated Balance Sheets as of September 30, 1997 and March 31, 1997................................ F-2

Consolidated Statements of Operations for the three months and six
months ended September 30, 1997 and September 30, 1996................................................. F-3

Consolidated Statements of Cash Flows for the three months and 
six months ended September 30, 1997 and September 30, 1996............................................. F-4

Notes to Consolidated Financial Statements............................................................. F-5
</TABLE>


                                      F-1
<PAGE>

                                  GEOGRAPHICS, INC.

                              CONSOLIDATED BALANCE SHEET
                     AS OF SEPTEMBER 30, 1997 AND MARCH 31, 1997
                                  

<TABLE>
<CAPTION>
                                    ASSETS

                                                                          September 30, 1997      March 31, 1997
                                                                              (Unaudited)            (Audited)
<S>                                                                       <C>                     <C>
CURRENT ASSETS
  Cash                                                                           126,556          $      408,757
  Accounts receivable
     Trade receivables, net                                                    5,171,155               6,654,500
     Other receivables                                                           820,339                 993,243
  Inventory, net of allowance for obsolete inventory
     of $1,390,000 at September 30, 1997 and $1,290,000 at March 31, 1997      9,487,798               9,457,874
  Prepaid expenses, deposits, and other current assets                           764,404                 893,483
                                                                          --------------          --------------
         Total current assets                                                 16,370,252              18,407,857

PROPERTY, PLANT AND EQUIPMENT, net                                            13,350,760              10,832,231

OTHER ASSETS                                                                     486,521               1,005,613
                                                                          --------------          --------------

TOTAL ASSETS                                                              $   30,207,533          $   30,245,701
                                                                          --------------          --------------
                                                                          --------------          --------------


                     LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Bank overdrafts                                                         $      626,753          $      467,445
  Note payable to bank                                                        10,755,195               8,649,390
  Accounts payable                                                             4,161,548               2,421,768
  Accrued liabilities                                                          2,576,578               2,145,030
  Notes payable to officers and directors                                             --                 850,000
  Current portion of long-term debt                                            3,510,962               3,472,674
                                                                          --------------          --------------
         Total current liabilities                                            21,631,036              18,006,307

LONG-TERM DEBT                                                                 5,365,124               4,322,371
                                                                          --------------          --------------
         Total liabilities                                                    26,996,160              22,328,678
                                                                          --------------          --------------

STOCKHOLDERS' EQUITY
  No par common stock - 100,000,000 authorized, 9,467,877 and
     9,467,877 issued and outstanding at September 30, 1997 and March 31,
     1997, respectively                                                       15,573,434              15,574,018
  Foreign currency translation adjustment                                        (68,404)                (76,478)
  Retained earnings (accumulated deficit)                                    (12,293,657)             (7,580,517)
                                                                          --------------          --------------
         Total stockholders' equity                                            3,211,373               7,917,023
                                                                          --------------          --------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                    30,207,533          $   30,245,701
                                                                          --------------          --------------
                                                                          --------------          --------------
</TABLE>

      SEE ACCOMPANYING NOTES TO THESE CONSOLIDATED FINANCIAL STATEMENTS.


                                      F-2
<PAGE>

                               GEOGRAPHICS, INC.

                     CONSOLIDATED STATEMENTS OF OPERATIONS
 THREE MONTHS AND SIX MONTHS ENDED SEPTEMBER 30, 1997 AND SEPTEMBER 30, 1996
                                  (Unaudited)

<TABLE>
<CAPTION>

                                                     Three Months Ended            Six Month Ended
--------------------------------------------------------------------------------------------------------
                                                 Sept. 30        Sept. 30      Sept. 30       Sept. 30
                                                   1997            1996          1997           1996
--------------------------------------------------------------------------------------------------------
<S>                                             <C>             <C>           <C>            <C>
Sales                                           $ 8,363,293     $6,858,576    $15,971,552    $13,029,743
Cost of Sales                                     7,018,882      4,083,653     14,067,086      7,809,954
                                                -----------     ----------    -----------     -----------
Gross Margin                                      1,344,411      2,775,023      1,904,466      5,219,789

Selling, General and Administrative               2,887,614      1,975,339    $ 5,736,081      4,009,344
Expenses                                        -----------     ----------    -----------     -----------

Income (Loss) from 
Operations                                       (1,543,203)       799,684     (3,831,615)     1,210,445

Other Income (Expenses)
    Interest Expense                               (419,873)      (203,341)      (848,197)      (394,112)
    Other                                           (14,288)       (10,065)       (33,328)       (13,841)
                                                -----------     ----------    -----------     -----------
                                                   (434,161)      (213,406)      (881,525)      (407,953)
Income (Loss) Before Provision for               (1,977,364)       586,278     (4,713,140)       802,492
Income Taxes
Income Tax Provision                                     --        213,172              -        283,209
                                                -----------     ----------    -----------     -----------

Net Income (Loss)                               $(1,977,364)    $  373,106     (4,713,140)       519,283
                                                -----------     ----------    -----------     -----------
                                                -----------     ----------    -----------     -----------

Earnings Per Common and Common 
Equivalent Share
    Primary                                          ($0.21)         $0.04          ($.50)          $.06
    Assuming full dilution                           ($0.21)         $0.04          ($.50)          $.06
Shares Used in Computing Earnings Per 
Common and Common Equivalent Share
    Primary                                       9,467,877      9,427,811      9,467,877      9,198,337
    Assuming full dilution                        9,467,877      9,427,803      9,467,877      9,199,419

</TABLE>

      SEE ACCOMPANYING NOTES TO THESE CONSOLIDATED FINANCIAL STATEMENTS.


                                      F-3
<PAGE>

                                  GEOGRAPHICS, INC.
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
              SIX MONTHS ENDED SEPTEMBER 30, 1997 AND SEPTEMBER 30, 1996
                       INCREASE (DECREASE) IN CASH (Unaudited)
<TABLE>
<CAPTION>
                                                             September 30, 1997  September 30, 1996
                                                             ------------------  ------------------
<S>                                                         <C>                        <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income (loss)                                           $  (4,713,140)           $ 512,283
ADJUSTMENTS TO RECONCILE NET INCOME TO NET
CASH FLOWS FROM OPERATING ACTIVITIES
  Depreciation and amortization                                     892,340              759,980
  Deferred income taxes                                                   -              132,661
  (Gain) loss on sales of property and equipment                      1,740                8,985
CHANGES IN NONCASH OPERATING ASSETS AND LIABILITIES
  Trade receivables                                               1,483,345             (138,848)
  Related party receivables                                               -              899,422
  Other receivables                                                 172,904             (118,036)
  Inventory                                                         (29,924)          (3,939,208)
  Prepaid expenses, deposits and other current assets               129,079           (1,230,540)
  Accounts payable                                                1,739,780             (624,557)
  Accrued liabilities                                               431,548              522,029
  Income tax payable                                                      -              (99,326)
                                                              ---------------------------------------
      Net cash flows from operating activities                      107,672           (3,308,155)
                                                              ---------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Increase in bank overdrafts                                       159,308                    -
  Net borrowings on note payable to bank                          2,105,805             (924,322)
  Proceeds from long-term debt borrowings                                 -              225,000
  Repayment of long-term debt                                      (596,877)            (343,378)
  Repayments of notes payable to officers and directors            (850,000)            (264,711)
  Proceeds from issuance of common stock                               (584)           6,539,340
  Foreign currency translation                                        8,075                4,156
                                                              ---------------------------------------
      Net cash flows from financing activities                      825,727            5,236,085
                                                              ---------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of plant and equipment                                (1,215,600)          (1,607,921)
  Proceeds from sales of equipment                                        -                6,887
  Net advances from (repayments to) partnerships                          -             (154,080)
  Change in other assets                                                  -              (33,896)
                                                              ---------------------------------------
      Net cash flows from investing activities                   (1,215,600)          (1,789,010)
                                                              ---------------------------------------

NET CHANGE IN CASH                                                 (282,201)             138,920

CASH, beginning of year                                             408,757               50,028

CASH, end of quarter                                          $     126,556            $ 188,948
                                                              -------------------------------------

NONCASH INVESTING AND FINANCING ACTIVITIES
  Financing obtained in acquisition of equipment                 $1,677,918          $ 1,219,764
                                                              -------------------------------------
  Assets acquired directly in acquisition of business                     -             $390,839
                                                              -------------------------------------
</TABLE>

          SEE ACCOMPANYING NOTES TO THESE CONSOLIDATED FINANCIAL STATEMENTS

                                      F-4
<PAGE>

                                  GEOGRAPHICS, INC.

                      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    The accompanying interim unaudited consolidated financial statements of 
Geographics, Inc. (the "Company" or "Geographics") have been prepared in 
accordance with generally accepted accounting principles for interim 
financial information and with the instructions to Form 10-Q and Article 10 
of Regulation S-X. Accordingly, they do not include all of the information 
and footnotes required by generally accepted accounting principles for 
complete financial statements. In the opinion of management, such interim 
statements reflect all adjustments (consisting of normal recurring accruals) 
necessary to present fairly the financial position and the results of 
operations and cash flows for the interim periods presented. The results of 
operations for these interim periods are not necessarily indicative of the 
results to be expected for the full year. These financial statements should 
be read in conjunction with the audited consolidated financial statements and 
footnotes included in the Company's consolidated financial statements and 
notes thereto for the fiscal year ended March 31, 1997.

    The consolidated financial statements include the accounts of Geographics 
and its wholly-owned subsidiaries: Geographics Marketing Canada Inc., 
Geographics (Europe) Limited and Geographics Australia, Pty. Limited. All 
intercompany balances and transactions have been eliminated.

    Certain of the Company's subsidiaries calculated cost of sales using an 
estimated gross profit method for interim periods. Cost of sales at these 
subsidiaries are adjusted based on physical inventories which are performed 
no less than once a year.

NOTE 2 - COMMITMENTS AND CONTINGENCIES

    LEASES - The Company conducts certain operations in leased facilities, 
under leases that are classified as operating leases for financial statement 
purposes. The leases provide for the Company to pay real estate taxes, common 
area maintenance, and certain other expenses. Lease terms, excluding renewal 
option periods exercisable by the Company at escalated rents, expire between 
March, 1998 and February 2006. In addition to the base lease term, the 
Company has various renewal option periods. In addition, certain equipment 
used in the Company's operations is also leased under operating leases. A 
schedule of noncancelable operating lease commitments are as follows:

1998.................................. $365,103
1999..................................  152,253
2000..................................   67,403
2001..................................   46,164
                                        _______
                                       $630,923
                                        =======

                                      F-5
<PAGE>

    LITIGATION - In July 1997, three related class action suits were filed in 
the United States District Court for the Western District of Washington 
against the Company, its President, Chief Executive Officer and Chairman of 
its Board of Directors, and the Company's former Vice President of Finance 
and Chief Financial Officer (the "Defendants"). The suits allege that the 
Defendants inflated the price of the Company's stock by intentionally or 
recklessly making misrepresentations or omissions which deceived the public 
about the Company's financial condition and prospects, thus misleading 
shareholders who purchased shares between August 6, 1996 and June 12, 1997. 
The complaints seek damages in unstated amounts.

    Management intends to vigorously defend these complaints. However, the 
ultimate outcome of these actions cannot be predicted with certainty. The 
Company owns insurance policies applicable to certain losses including costs 
of defense. These insurance policies have an aggregate self-insurance 
retention of $150,000. If the Company is determined to be liable for, or 
otherwise agrees to settle or compromise, any claim, there is no assurance 
that any or all of such liability, compromise or settlement would be covered 
by the Company's insurance. If the amount of insurance is insufficient, or if 
the policies are determined to be inapplicable, the Company could be required 
to make additional payment beyond the self-insurance retention in the form of 
cash, indebtedness or equity securities. A payment of this nature could have 
a negative material impact on the Company's capital resources, and issuance of 
additional equity securities could have a negative material impact on the 
Company's existing shareholders. The defense of this or any pending or future 
litigation, investigations or disputes could result in substantial legal and 
professional costs to the Company.

    There are various additional claims, lawsuits, and pending actions 
against the Company incident to the operations of its business. It is the 
opinion of management that the ultimate resolution of these matters and any 
future unidentified claims will not have a material effect on the Company's 
business, financial condition or results of operations.

    CONTINGENCY FOR YEAR 2000 ISSUES - The Company has not yet made an 
assessment of the impact of the year 2000 on their computer software, 
hardware and other systems, including those of vendors, customers and other 
third parties. The potential expense to ensure that all of the computer and 
other systems are year 2000 compliant cannot be determined until such an 
assessment is made.

    EMPLOYMENT CONTRACTS - During the quarter ended September 30, 1997, the 
Company entered into employment contracts with certain employees for a period 
of up to three years. The contracts provide for severance payments in the 
event these employees terminate employment for certain specified reasons 
during the contract period.

NOTE 3 - GOING CONCERN

    As a result of the $7,950,301 loss incurred by the Company for the year
ended March 31, 1997, a decline in gross profit margins, the Company's failure
to comply with covenants under its line of credit and other factors, the report
of the Company's auditors, dated August 26, 1997, relating to the Company's
Consolidated Financial Statements for the year ended March 31, 1997 states that
there is substantial doubt about the Company's ability to continue as a going
concern. The accompanying financial statements have been prepared assuming the
Company will continue as

                                      F-6
<PAGE>

a going concern and do not include any adjustments that might result from the 
outcome this uncertainty.

    The Company currently projects continuing losses and potentially negative 
cash flows from operations for the remainder of fiscal 1998. The exact amount 
and timing of the Company's capital requirements will be determined by 
numerous factors, including the level of, and gross margin on, future sales, 
the outcome of outstanding contingencies and disputes such as pending 
lawsuits, payment terms obtained from the Company's vendors and the timing of 
capital expenditures. However, even if the Company's lender were to waive all 
existing defaults under the Company's revolving credit facility, the Company 
expects that available borrowings under the facility may not be sufficient to 
satisfy its working capital requirements beyond December 31, 1997.  
Furthermore, although the Company's lender has permitted borrowings under the 
revolving credit facility in spite of existing defaults, there can be no 
assurance that it will continue to do so. Accordingly, the Company is 
delaying payments to vendors, instituting internal cost reduction measures 
and taking other steps to conserve operating capital.  As a result, the 
Company's vendors may place the Company on credit hold or take other actions 
against the Company, including the termination of their relationship with the 
Company or the initiation of collection proceedings.  

    In October, 1997 the Company took steps to reduce operating costs, 
including layoffs of approximately 45 employees, decreases in senior 
executive compensation, a company-wide wage freeze, and a management 
restructuring that included the permanent elimination of two vice-president 
level positions. The Company projects that these steps will result in cost 
savings  in excess of $1,300,000 over the next 12 months.


    The Company has been actively pursuing possible sources of additional 
capital and has engaged an investment banker to assist in the evaluation and 
pursuit of financing transactions, which could include the issuance of debt 
or equity securities or the sale of all or part of the Company's assets.  
During the week of November 3, 1997 the Company received several offers, 
subject to a number of conditions, for the purchase of its lettering and 
signage business. However, as of the date of this report the Company had not 
yet entered into any binding agreements with regards to any such offer. 
Though such offers are under active consideration by management, the 
transactions contemplated thereby are subject to satisfaction of a number of 
conditions precedent and there can be no assurance that any such transaction 
will be consummated. Further, there can be no assurance that the Company will 
be able to obtain additional sources of working capital when and as needed or 
that the terms of any such funding will be acceptable to the Company.  Any 
equity financing may involve substantial dilution to the interests of the 
Company's shareholders.

    The failure to obtain an increase in borrowing availability under, and to 
extend the expiration date of, the revolving credit facility, or to otherwise 
obtain sufficient funds when and as needed to satisfy its working capital 
requirements could force the Company to curtail or further restructure 
operations, seek extended payment terms from its vendors or seek protection 
under the federal bankruptcy laws.

                                      F-7