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

                                   FORM 10-QSB

(Mark One)

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

                                 For the quarterly period ended January 31, 2002

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

                                 For the transition period from ______ to ______

                                 Commission file number  0-13042
                                                        ------------------------

                         Infinite Graphics Incorporated
--------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


            Minnesota                                     41-0956693
--------------------------------------------------------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
incorporation or organization)


               4611 East Lake Street, Minneapolis, Minnesota 55406
--------------------------------------------------------------------------------
                    (Address of principal executive offices)


                                 (612) 721-6283
--------------------------------------------------------------------------------
                           (Issuer's telephone number)



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


Check whether the issuer (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 [ ]


                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

         Check whether the registrant filed all documents and reports required
to be filed by Section 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by a court. Yes [ ]   No [ ]


                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 3,024,797 common shares as of March
1, 2002.

Transitional Small Business Disclosure Format (Check one):  Yes [ ]   No [X]

<PAGE>


PART 1 - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                                   INFINITE GRAPHICS
                                    BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                   January 31, 2002     April 30, 2001
                                                                   ----------------     --------------
ASSETS                                                                unaudited
<S>                                                                 <C>                 <C>
CURRENT ASSETS:
  Cash and cash equivalents                                         $      116,559      $       67,917
  Accounts receivable, less allowance for doubtful accounts
     of $98,000 and $198,900 respectively                                1,127,208           1,430,514
  Inventories                                                              416,472             436,604
  Equipment Deposit                                                        500,000             500,000
  Receivable from Related Party                                              8,557             171,687
  Prepaid expenses and other                                               204,970             122,392
                                                                    --------------      --------------
          Total current assets                                           2,373,767           2,729,114

Property, Plant, and Equipment, Net                                      2,504,459           3,139,250
                                                                    --------------      --------------

Other Assets:
Purchased Software, Net                                                     64,568             106,808
Intangibles and other assets, net                                          278,073              21,155
Investment in Joint Venture                                                109,991                  --
                                                                    --------------      --------------
                                                                    $    5,330,858      $    5,996,327
                                                                    ==============      ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Note Payable, Bank                                                  $      290,802      $      421,761
Trade accounts payable                                                     446,196             557,006
Current maturities of long-term debt                                       512,241             459,236
Accrued Expenses:
    Compensation                                                           319,025             418,267
    Other                                                                  605,935             468,884
Deferred Income                                                            101,896             155,685
Customer Deposit                                                           500,000             500,000
                                                                    --------------      --------------
          Total current liabilities                                      2,798,594           2,980,839

LONG-TERM DEBT, less current portion                                       819,334           1,202,466

LOSSES IN EXCESS OF INVESTMENT OF JOINT VENTURE                                 --               5,574
                                                                    --------------      --------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS EQUITY:
Common stock, no par value; authorized 10,000,000 shares
Issued and outstanding 3,024,797                                         4,681,697           4,681,697
  Accumulated deficit                                                   (2,946,268)         (2,874,249)
                                                                    --------------      --------------
          Total stockholders' equity                                     1,735,429           1,807,448
                                                                    --------------      --------------

    TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                        $    5,330,858      $    5,996,327
                                                                    ==============      ==============
</TABLE>

See notes to financial statements.

                                      -2-
<PAGE>


PART 1- FINANCIAL INFORMATION (CONTINUED)

                         INFINITE GRAPHICS INCORPORATED
                            STATEMENTS OF OPERATIONS
                                    UNAUDITED

<TABLE>
<CAPTION>
                                                               THREE MONTH PERIOD              NINE MONTH PERIOD
                                                                ENDED JANUARY 31               ENDED JANUARY 31
                                                              2002           2001            2002            2001
                                                          ------------   ------------    ------------    ------------
<S>                                                       <C>            <C>             <C>             <C>
REVENUES:
  Net sales                                               $  1,994,642   $  2,106,616    $  6,505,706    $  7,167,191
  Other income                                                  53,731        100,500          55,210         100,500
                                                          ------------   ------------    ------------    ------------
               Total revenues                                2,048,374      2,207,116       6,560,916       7,267,691

COSTS AND EXPENSES:
  Costs of products sold                                     1,494,155      1,564,531       5,015,572       4,971,225
  Selling, general and administrative                          455,922        602,824       1,485,255       1,923,000
  Charge for location shutdown and workforce reduction              --             --          90,340              --
  (Gain) on sale of fixed assets                                    --        (60,978)             --         (89,199)
  Interest expense                                              48,299         69,816         157,334         199,676
  Loss (Income) in operations of Joint Venture                  43,697         28,320        (115,565)         28,320
                                                          ------------   ------------    ------------    ------------
               Total costs and expenses                      2,042,073      2,204,513       6,632,936       7,033,022
                                                          ------------   ------------    ------------    ------------

NET INCOME (LOSS)                                         $      6,301   $      2,603    $    (72,020)   $    234,669
                                                          ============   ============    ============    ============



WEIGHTED AVERAGE NUMBER OF COMMON AND
  COMMON EQUIVALENT SHARES OUTSTANDING:
                Basic                                        3,024,797      3,024,797       3,024,797       2,982,929
                                                          ============   ============    ============    ============
                Diluted                                      3,038,391      3,324,859       3,024,797       3,265,044
                                                          ============   ============    ============    ============


                                                          ------------   ------------    ------------    ------------
BASIC NET INCOME (LOSS) PER SHARE                         $       0.00   $       0.00    $      (0.02)   $       0.08
                                                          ============   ============    ============    ============

                                                          ------------   ------------    ------------    ------------
DILUTED NET INCOME (LOSS) PER SHARE                       $       0.00   $       0.00    $      (0.02)   $       0.07
                                                          ============   ============    ============    ============
</TABLE>

See notes to financial statements.


                                      -3-
<PAGE>


                         INFINITE GRAPHICS INCORPORATED
                            STATEMENTS OF CASH FLOWS
                                    UNAUDITED

<TABLE>
<CAPTION>
                                                                             Nine Month Period
                                                                              Ended January 31
                                                                           2002             2001
                                                                       ------------     ------------
<S>                                                                    <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                                    $    (72,020)    $    234,669
  Adjustments to reconcile net income (loss) to net cash
      Provided by operating activities:
    Depreciation and amortization                                           812,925          735,936
     Contingent acquisition price financed through the reduction of
         accounts receivable                                                (14,822)        (510,858)
    Gain on sale of California operations                                        --          (89,199)
 Equity in (earnings) loss of joint venture                                (115,565)          28,320
    Changes in assets and liabilities:
      Accounts receivable                                                   466,436         (102,047)
      Inventories                                                            20,132          (87,145)
      Equipment Deposit                                                          --         (500,000)
      Prepaid expenses and other                                            (82,578)         (81,140)
      Customer Deposit                                                           --          500,000
      Other Assets                                                          (52,690)              --
      Accounts Payable, accrued expenses and deferred revenue              (126,789)         190,374
                                                                       ------------     ------------
            Net cash provided by operating activities                       835,027          318,910
                                                                       ------------     ------------


CASH FLOWS FROM INVESTING ACTIVITIES:
      Purchases of equipment and other fixed assets                        (298,629)        (327,075)
      Proceeds from sale of California operations                                             20,000
                                                                       ------------     ------------
            Net cash used in investing activities                          (298,629)        (307,075)
                                                                       ------------     ------------


CASH FLOWS FROM FINANCING ACTIVITIES:
      Proceeds from issuance of debt                                             --           67,277
      Net payments on revolving credit agreement                           (130,959)         (56,050)
      Payments on long-term debt and capital lease obligations             (356,797)        (333,836)
      Proceeds from issuance of Common Stock                                     --          500,000
                                                                       ------------     ------------
            Net cash provided by (used in) financing activities            (487,756)         177,391
                                                                       ------------     ------------

NET INCREASE IN CASH AND CASH EQUIVALENTS                                    48,642          189,226

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                               67,917           87,165
                                                                       ------------     ------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                             $    116,559     $    276,391
                                                                       ============     ============
</TABLE>

See notes to financial statements.


                                      -4-
<PAGE>


NOTES TO FINANCIAL STATEMENTS

NOTE A:
The Balance Sheet as of January 31, 2002 and the Statements of Operations for
the three and nine month periods ended January 31, 2002 and 2001 and the
Statements of Cash Flows for the nine months ended January 31, 2002 and 2001
have been prepared by Infinite Graphics Incorporated without audit. In the
opinion of management, these statements reflect all adjustments, consisting of
only normal accruals and adjustments, necessary for the fair-statement of the
periods presented. The Balance Sheet as of April 30, 2001 has been derived from
the audited Balance Sheet included in the Company's April 30, 2001 Annual Report
on Form 10-KSB. Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been omitted. It is suggested that these financial
statements be read in conjunction with the financial statements and notes
included in the Company's April 30, 2001 Annual Report on Form 10-KSB.

NOTE B:
The Company acquired certain assets and assumed certain liabilities of
Photronics Colorado, Inc. (PCI), a Colorado corporation, effective as of January
28, 1999 under the terms of an Asset Purchase Agreement dated January 28, 1999
between the Company and PCI for a total purchase price not to exceed $2 million
in the aggregate. The acquired assets were used in the production of precision
glass products. The Company paid $375,000 of the purchase price in cash on
January 28, 1999. In addition, the Company will pay or credit PCI over a period
of 36 months following January 28, 1999, at a rate not to exceed $150,000 per
quarter on a cumulative basis, the following: (a) 50 percent of all net invoices
of certain large area masks (LAM) shipped to or for PCI and (b) 10 percent of
the net invoice amount received from the sale of LAM to existing and identified
PCI customers. This remaining purchase price was an amount that was not certain.

The Company has increased the value of the assets acquired by $134,884 for
credit memos issued or to be issued in accordance with the Asset Purchase
Agreement relating to LAM shipments for the nine months ended January 31, 2002.
The increase for the year ended April 30, 2001 was $686,262. The maximum
purchase price was reached in August, 2001. As of January 31, 2002, the value of
the equipment has been recorded at its fair market value due to the additional
purchase price incurred. The excess of purchase price over the fair market value
of the equipment has been recorded as goodwill or other intangibles.

NOTE C:
In 2001, the Company entered into a joint venture with an unrelated third party
under the name Infinite Graphics PTE, LTD, which is located in Singapore. The
investment is being accounted for under the equity method, as the Company has a
50 percent interest, but does not hold a controlling interest. As of December
31, 2001, the joint venture had accumulated net income in excess of the
Company's original investment of $105,000. The original investment has been
reduced by elimination of intercompany profit. Unaudited condensed financial
statement information for the joint venture as of December 31, 2001, is as
follows:

<TABLE>
<CAPTION>
                                                                                  Unaudited
<S>                                                                                <C>
Total assets                                                                       $ 1,817,078
                                                                             =================
Total liabilities                                                                  $ 1,604,503
                                                                             -----------------
Stockholders' equity:                                                                  212,575
                                                                             -----------------
                                                                                   $ 1,817,078
                                                                             =================

<CAPTION>
For the 3 and 6-month period ended December 31, 2001:   Three months Ended   Nine months Ended
                                                        December 31          December 31
<S>                                                             <C>                  <C>
Net Sales                                                       $  155,216           $ 897,204
                                                        ==================   =================
Gross Profit                                                        30,294             371,987
                                                        ==================   =================
Net Income                                                      $  (87,394)          $ 231,130
                                                        ==================   =================
</TABLE>


                                      -5-
<PAGE>


The joint venture owes the Company $8,557 at January 31, 2002, for various cost
reimbursements and a sale of equipment. The Singapore operation is in its early
operations, and is still increasing production to reach break even. The results
of the joint venture for the nine months were positively impacted by equipment
sales. Such equipment sales may or may not occur on a regular basis.

NOTE D:
Under an agreement to sell photoplotters under its own name, the Company has
made a nonrefundable deposit with a manufacturer for the purchase of five
machines. In addition, the agreement requires the Company to purchase equipment
for approximately $300,000. The deposit is $100,000 for each of five machines,
or a total of $500,000. The machines will be sold directly by the Company, or,
to its joint venture, at cost.

The Company has also received a refundable deposit from its joint venture
partner in the same amount as it has made to the manufacturer.

If any or all of the machines are not delivered to the partner, the Company is
to refund the portion of the deposit relating to those machines. The Company
will not recognize any sales or cost of sales relating to these machines, as the
Company is acting only as a conduit for the transfer of these machines. The
Company, however, is subject to risk that some portion of the refundable deposit
may have to be refunded. The Company does not expect any material losses from
this arrangement.

NOTE E:
The Company has a revolving credit agreement (the Revolver), at the lender's
discretion, which allows the Company to borrow 75 percent of its eligible
service receivables, up to $750,000, as defined. Interest on advances is payable
monthly and is prime plus 4.0 percent, never to be readjusted below 10.0 percent
(10.00 percent at January 31, 2002), with a minimum monthly interest charge of
$2,000. In the event of default, the interest rate increases to prime plus 9.0
percent, never to be readjusted below 15 percent, with a minimum monthly
interest charge of $3,450. The Revolver also requires payment of a $1,500
quarterly administrative fee.

The Revolver terminates the earlier of a date determined at the lender's
discretion, the date the Company terminates the Revolver, or February 10, 2003.
If approved by the lender and the Company, the termination date may be extended
for nine months. If the Revolver is terminated by the Company, the Company is
required to pay a prepayment charge of $2,500 multiplied by the number of
calendar months from the prepayment date to February 10, 2003. The Company is in
technical violation of one covenant of the lending agreement; operating at a
loss.

NOTE F:
On October 1, 2001 the Company announced a downsizing of the Company. Besides
the layoff of approximately 15% of the direct, indirect and administrative
employees, the closure of the Hallsville, MO facility and transfer of equipment
to the remaining locations was announced. The one-time charges of $90,000
includes the severance granted to terminated employees, costs of closure of the
Missouri facility and transfer costs of the equipment and inventory to other
facilities.

NOTE G:
Basic net income per share are computed by dividing net income by the weighted
average number of common shares outstanding. Diluted net income per share
assumes the exercise of stock options using the treasury stock method, if
dilutive.

NOTE H:
The Company has a concentration of sales to certain major customers. Two
customers represented 23%, and 10% of net sales for the three months ended
January 31, 2002. One customers represents 18% for the nine months ended
January 31, 2002. Two customers represented 23% and 11% of net sales for the
three months ended January 31, 2001. Two customers represented 24% and 12% for
the nine months ended January 31, 2001.


                                      -6-
<PAGE>


NOTE I:
No income tax provision has been provided for in the statements of operation due
to the utilization of net operating loss carryforwards or due to the loss
incurred for the period.


NOTE J:
In June 1998, the Financial Accounting Standards Board (FASB) issued SFAS No.
133, ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. This
Statement requires companies to record derivatives on the balance sheet as
assets and liabilities, measured at fair value. Gains or losses resulting from
changes in the values of those derivatives would be accounted for depending on
the use of the derivative and whether it qualifies for hedge accounting. In July
1999, the FASB issued SFAS No. 137, delaying the effective date of SFAS No. 133
for one year, to fiscal years beginning after June 15, 2000. The Company has
determined the effect of implementing SFAS No. 133 on its financial position or
the results of its operations is not material.

In June 2001, the Financial Accounting Standards Board finalized SFAS No. 141,
BUSINESS COMBINATIONS, and SFAS No. 142, GOODWILL AND OTHER INTANGIBLE ASSETS.
These pronouncements provide that business combinations initiated after June 30,
2001, be accounted for using the purchase method and that goodwill be reviewed
for impairment rather than amortized. The Company does not believe the adoption
of these pronouncements will have a material effect on its financial position or
results of operations.

In July, 2001, the Financial Accounting Standards Board issued SFAS No. 143
ASSET RETIREMENT OBLIGATIONS. This statement addresses financial accounting and
reporting for obligations associated with the retirement of tangible long-lived
assets and the associated asset retirement costs. The Statement will be
effective for the Company's fiscal year ending April 30, 2004. The Company does
not believe that the adoption of this pronouncement will have a material effect
on its financial statements.

In August, 2001, the Financial Accounting Standards Board issued SFAS No. 144
ACCOUNTING FOR IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS. This Statement
addresses financial accounting and reporting for the impairment or disposal of
long-lived assets. The Statement will be effective for the Company's fiscal year
ending April 30, 2003. The Company does not believe that the adoption of this
pronouncement will have a material effect on its financial statements.


                                      -7-
<PAGE>


PART 1 - FINANCIAL INFORMATION (CONTINUED)

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

THREE MONTHS ENDED JANUARY 31, 2002 COMPARED TO THREE MONTHS ENDED JANUARY 31,
2001

Operations for the three months ended January 31, 2002 resulted in net sales of
$1,995,000 compared to $2,107,000 for the same period last year or a 5%
reduction. Although sales were slightly down from the prior year, the sales base
of customers has improved and expanded at the same time the reliance on the
three largest customers has decreased dramatically. The flat revenue from a year
ago is a result of decreased phototooling demand, primarily in the Large Area
Mask business, offset by the expansion of the Company's customer base in the
Large Area Mask business. The prior year also contained sales from our film
photoplotting facilities in California and New Hampshire which were sold in
August and November, 2000 respectively. Sales of the software product has been
especially soft in a marketplace where customers are simply not making new
investments in added capacity.

The gross margin for the three months ended January 31, 2002 was 25%, compared
to 26% for the same period last year. The $501,000 gross profit for the three
months ended January 31, 2002 compares to $542,000 for the same period last
year. The gross profit for the third quarter is not considered good for the LAM
phototooling marketplace but the Company believes it to be satisfactory given
the current level of sales and the Company's current excess capacity and high
level of fixed costs. The closure of the facility in Hallsville, MO while
maintaining similar sales level has contributed to the stabilized gross profit
at this slow economic time in the high tech arena.

The Company's total selling, general and administrative (S, G & A) expenses for
the three months ended January 31, 2002 were $456,000 compared to $603,000 for
the same period last year, a decrease of $147,000 or 24%. S, G & A decreased due
to the closure of the Hallsville, MO facility and a general workforce reduction
and better general expense control in the second quarter. The Company's interest
expense for the three months ended January 31, 2002 was $48,000 compared to
$70,000 for the same period last year. The decrease in interest expense is
primarily due to lower borrowing costs on our revolving credit facility and
lower balances on our capital lease obligations.

The loss from the Singapore Joint Venture of $44,000 for the three-month period
ended December 31, 2001 is primarily the result of slow phototooling services
sales for the quarter.

The Company had other income of $54,000 for the three months ended January 31,
2002 and $100,500 for the three months ended January 31, 2001. The Company filed
a sales tax return in January 2002 to refund previously expensed sales taxes
paid on production equipment leases over the prior three years. In 2001, the
Company earned a commission on the sale of equipment installed and accepted
during the quarter.

The Company had net income of $6,000 for the three months ended January 31, 2002
compared to net income of $3,000 for the same period last year.

NINE MONTHS ENDED JANUARY 31, 2002 COMPARED TO NINE MONTHS ENDED JANUARY 31,
2001

Operations for the nine months ended January 31, 2001 resulted in net sales of
$6,506,000 compared to $7,167,000 for the same period last year or a 9%
decrease. The decrease in sales is a result in a general decrease in
phototooling demand, primarily in the Large Area Mask business, and the transfer
of certain customer accounts to the Singapore Joint Venture.

The gross margin for the nine months ended January 31, 2002 was 23% compared to
31% for the same period last year. The $1,490,000 gross profit compared for the
nine months ended January 31, 2002 with $2,196,000 for the same period last
year. The decrease in gross margin is directly attributable to reduced sales in
the Large Area Mask marketplace and higher raw material costs, and a high level
of fixed expenses and overhead investments. This gross profit decrease has
partially been offset by the closure of a Large Area Mask service center in
Hallsville, MO.


                                      -8-
<PAGE>


The Company's total selling, general and administrative (S, G & A) expenses for
the nine months ended January 31, 2002 were $1,485,000 compared to $1,923,000
for the same period last year, a decrease of $438,000 or 23%. S, G & A decreased
due to continued general cost cutting, and decreases in selling and
administrative costs related to a decrease in personnel. The Company's interest
expense for the nine months ended January 31, 2002 was $157,000 compared to
$200,000 for the same period last year. The decrease in interest expense is
primarily due to lower borrowing costs on our revolving credit facility and
lower balances on our capital lease obligations.

On August 1, 2000, the Company entered into an agreement to sell its film
phototool facility in Irving, CA, effective August 3, 2000. A gain on the sale
of $28,221 was reported in August 2000. Sales from the Irving, CA facility for
the fiscal year were $122,000. The Company has sold this facility, as it no
longer fits its plans in the Large Area Mask business.

On November 30, 2000, the Company closed its film phototool facility in Salem,
NH. A gain on the sale of the equipment of $60,978 is reported in the three
months ended January 31, 2001. Sales from the Salem, NH facility for the nine
months ended January 31, 2001 were $145,000. The Company has closed this
facility as it no longer fits its plans in the Large Area Mask business.

The Company had a net loss of $72,000 for the nine months ended January 31, 2002
compared to net income of $235,000 for the same period last year. Decreased
sales and decreased margins offset by reductions in S, G & A costs contributed
to the reversal in profitability.

Liquidity. The Company had negative working capital of $425,000 at January 31,
2002 and $252,000 at April 30, 2001. The change in working capital is primarily
due to the loss from operations for the first nine-months ended January 31,
2002. The Company's cash flow provided by operations was $835,000 for the nine
months ended January 31, 2002, compared with cash flow provided by operations of
$319,000 for the same period last year. The large improvement in cash flow from
operations despite the rather significant decrease in net income is the ending
of the contingent purchase price financed through the reduction in accounts
receivable and the reduction in accounts receivable. The increase in
depreciation and amortization is primarily due to the capital expenditures in
fiscal 2002 and 2001 that principally include additional purchase price of the
Colorado acquisition.

For the nine months ended January 31, 2002 the Company invested cash of $299,000
in capital equipment, building improvements and purchased software. For the nine
months ended January 31, 2001 the Company invested cash of $327,000 in capital
equipment.

A summary of our contractual cash obligations at January 31, 2002 is as follows:

<TABLE>
<CAPTION>
                                    -----------------------------------------------------------------------------------
                                                                  PAYMENTS DUE BY PERIOD
----------------------------------- -----------------------------------------------------------------------------------
CONTRACTUAL OBLIGATIONS                    TOTAL          2002          2003          2004          2005          2006
----------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
<S>                                   <C>             <C>           <C>           <C>           <C>            <C>
Long-term debt, including
interest                              $1,343,914      $151,069      $604,278      $414,035      $146,943       $27,589
----------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Operating leases                         991,035        49,850       197,613       220,447       178,875       192,375
----------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Purchase agreement for
manufacturing equipment
----------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Total contractual cash
obligations                           $2,334,949      $200,919      $801,891      $634,482      $325,818      $219,964
----------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
</TABLE>


                                      -9-
<PAGE>


We also have a commercial commitment as described below:

<TABLE>
<CAPTION>
------------------------------- ---------------------------- ---------------------------- --------------------------
 OTHER COMMERCIAL COMMITMENT      TOTAL AMOUNT COMMITTED       OUTSTANDING AT 01/31/02        DATE OF EXPIRATION
------------------------------- ---------------------------- ---------------------------- --------------------------
<S>                                      <C>                          <C>                               <C> <C>
        Line of credit                   $750,000                     $290,802                 February 10, 2003
------------------------------- ---------------------------- ---------------------------- --------------------------
</TABLE>

We believe that our cash balance, availability under our line of credit, if
needed, and anticipated cash flows from operations will be adequate to fund our
cash requirements for fiscal 2002.

Capital Resources. The Company is exploring avenues of raising cash in order to
complete some equipment and operational opportunities that are believed to be
desirable to the Company in the near term. In February, 2002, the company
entered into an operations agreement with a Chinese company in new developing
technology. The Chinese company purchased an equal interest in the developed
equipment for $250,000 plus is providing technical and operational expertise in
exchange for half the production of the equipment when placed into service.

The Company currently has a revolving credit agreement, at the lender's
discretion, that allows the Company to borrow 75% of its eligible photoplotting
and photomask services receivable, up to $750,000. This agreement has been
extended to February 2003. Although the Company is exploring additional funding
possibilities, it has no agreements to provide additional debt or equity capital
and there can be no assurance that additional funds will be available, or if
available, available on terms acceptable to the Company. If the Company is
unable to obtain additional debt and/or equity funding, it may need to limit its
investments into new operations in fiscal 2003 and may not be able to expand its
investment into new operations beyond its current levels. The Company is in
technical violation of one covenant of the lending agreement; and as of yet has
not sought nor obtained a waiver, however management believes that these
violations will not adversely affect the Company's ability to use the facility.
The violated covenant is the net operating loss for the year. The Company will
be seeking a waiver of this covenant violation.

For the nine months ended January 31, 2002, the Company principally made
mandatory payments on existing long-term financing and managed cash through its
revolving credit arrangement and managing accounts payable. For the nine-months
ended January 31, 2001, the Company received a $500,000 equity investment from
the sale of common stock offset by payments under its existing long-term
financing.


                                      -10-
<PAGE>


CRITICAL ACCOUNTING POLICIES
Our significant accounting policies are summarized in the footnotes to our
financial statements. Some of the most critical policies are also discussed
below.

As a matter of policy, we review our major assets for impairment. Our major
operating assets are accounts receivable, inventory, purchased software and
property and equipment. We have not experienced significant bad debts expense
and our reserve for doubtful accounts of $98,000 should be adequate for any
exposure to loss in our January 31, 2002 accounts receivable. Currently we have
a $52,000 reserve for slow moving and obsolete inventories at January 31, 2002.
We depreciate our property and equipment and purchased software over their
estimated useful lives and we have not identified any items that are impaired.

Other Items. Inflation has not had any significant impact upon the Company's
results of operation.

Securities Litigation Reform Act. Except for the historical information
contained herein, the matters discussed in this report are forward-looking
statements which involve risks and uncertainties, including but not limited to
economic, competitive, governmental and technological factors affecting the
Company's operations, markets, products, services and prices, the Company's
ability to obtain future needed financing and other factors discussed in the
Company's filings with the Securities and Exchange Commission.

Recent Accounting Pronouncements. In June 1998, the Financial Accounting
Standards Board (FASB) issued SFAS No. 133, ACCOUNTING FOR DERIVATIVE
INSTRUMENTS AND HEDGING ACTIVITIES. This Statement requires companies to record
derivatives on the balance sheet as assets and liabilities, measured at fair
value. Gains or losses resulting from changes in the values of those derivatives
would be accounted for depending on the use of the derivative and whether it
qualifies for hedge accounting. In July 1999, the FASB issued SFAS No. 137,
delaying the effective date of SFAS No. 133 for one year, to fiscal years
beginning after June 15, 2000. The Company has determined the effect of
implementing SFAS No. 133 on its financial position or the results of its
operations is not material.

In June 2001, the Financial Accounting Standards Board finalized SFAS No. 141,
BUSINESS COMBINATIONS, and SFAS No. 142, GOODWILL AND OTHER INTANGIBLE ASSETS.
These pronouncements provide that business combinations initiated after June 30,
2001, be accounted for using the purchase method and that goodwill be reviewed
for impairment rather than amortized. The Company does not believe the adoption
of these pronouncements will have a material effect on its financial position or
results of operations.

In July, 2001, the Financial Accounting Standards Board issued SFAS No. 143
ASSET RETIREMENT OBLIGATIONS. This statement addresses financial accounting and
reporting for obligations associated with the retirement of tangible long-lived
assets and the associated asset retirement costs. The Statement will be
effective for the Company's fiscal year ending April 30, 2004. The Company does
not believe that the adoption of this pronouncement will have a material effect
on its financial statements.


                                      -11-
<PAGE>


In August, 2001, the Financial Accounting Standards Board issued SFAS No. 144,
ACCOUNTING FOR IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS. This Statement
addresses financial accounting and reporting for the impairment or disposal of
long-lived assets. The Statement will be effective for the Company's fiscal year
ended April 30, 2003. The Company does not believe that the adoption of this
pronouncement will have a material effect on its financial statements.



PART 2 - OTHER INFORMATION

Item 1.  Legal Proceedings
         None

Item 2.  Change in Securities and Use of Proceeds
         None

Item 3.  Defaults Upon Senior Securities
         None

Item 4.  Submission of Matter to a Vote of Security Holders
         None

Item 5.  Other Information
         None

Item 6.  Exhibits and Reports on Form 8-K

         (a)      Exhibits

                  None


         (b)      Reports on Form 8-K

                  During the quarter ended January 31, 2002, Infinite Graphics
                  Incorporated did not file with the Securities and Exchange
                  Commission any current reports on Form 8-K.

Pursuant to the requirements 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.

March 15, 2002                          By  /S/ Clifford F. Stritch, Jr.
                                            ----------------------------
                                            Clifford F. Stritch, Jr.
                                            Chief Executive Officer


                                        By  /S/ Barry B. Onufrock
                                            ----------------------------
                                            Barry B. Onufrock
                                            Chief Financial Officer


                                      -12-