UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

__________________________________________

FORM 10-Q



(Mark One)



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



For the quarterly period ended September 30, 2002



OR



*

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the transition period from ___________________ to ______________________.



Commission file number 0-27215



PAWNBROKER.COM, INC.

(Exact name of registrant as specified in its charter)



|DELAWARE                                                       |  | 33-0794473                          
|-------------------------------------------------------------- |  | ------------------------------------
|(State or Other Jurisdiction
of Incorporation or Organization) |  | (I.R.S. Employer Identification No.)



1 East Liberty Street, Sixth Floor, Suite 7

Reno, Nevada

89504

(Address of principal executive offices)



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



(775) 686-2340

(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 number of outstanding common shares, no par value, of the Registrant at:



November 11, 2002:  5,527,870































PAWNBROKER.COM



INDEX TO THE FORM 10-Q

For the quarterly period ended September 30,2002







PART I

FINANCIAL INFORMATION



ITEM 1.

FINANCIAL STATEMENTS

ITEM 2.

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT

MARKET RISK

ITEM 4.

CONTROLS AND PROCEDURES



PART II

OTHER INFORMATION



ITEM 1.

LEGAL PROCEEDINGS

ITEM 2.

CHANGES IN SECURITIES AND USE OF PROCEEDS

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

ITEM 5.

OTHER INFORMATION

ITEM 6.

EXHIBITS AND REPORTS ON FORM 8-K



SIGNATURES



SECTION 302 CERTIFICATES





































PART I

FINANCIAL INFORMATION



ITEM 1.

FINANCIAL STATEMENTS





PAWNBROKER.COM, INC.

(A Development Stage Company)

CONSOLIDATED BALANCE SHEETS

(Unaudited)



| |                    |                  
| | ------------------ | -----------------
| | September
30,
2002 | December 31,
2001



|ASSETS |  | 
|------ |  | 



|Current                   |                  |                
|------------------------- | ---------------- | ---------------
|Cash and cash equivalents | $          1,938 | $        26,615
|Prepaid expense (Note 4)  | 25,000           | -              



|Total current assets    | 26,938 | 26,615 
|----------------------- | ------ | -------
|                        |        |        
|Capital assets (Note 5) | 87,310 | 144,736
|                        |        |        
|Domain name (Note 6)    | -      | 17,361 



|Total assets                             | $       114,248 | $       188,712
|---------------------------------------- | --------------- | ---------------
|                                         |                 |                
|LIABILITIES AND STOCKHOLDERS' DEFICIENCY |                 |                
|                                         |                 |                
|Current liabilities                      |                 |                
|Accounts payable and accrued liabilities | $       648,391 | $       375,527
|Notes payable (Note 7)                   | 132,000         | 145,000        



|Total current liabilities  | 780,391 | 520,527
|-------------------------- | ------- | -------
|                           |         |        
|Notes payable (Note 7)     | 48,000  | 80,000 
|                           |         |        
|Convertible notes (Note 8) | 603,000 | 404,000



|Total liabilities                                |                                              |             
|------------------------------------------------ | -------------------------------------------- | ------------
|                                                 |                                              |             
|Stockholders' deficiency                         |                                              |             
|Capital stock (Note 9)                           |                                              |             
|Authorized                                       |                                              |             
|20,000,000                                       | preferred shares with a par value of $0.0001 |             
|60,000,000                                       | common shares with a par value of $0.0001    |             
|Issued and outstanding                           |                                              |             
|September 30, 2002  5,527,870 common shares     |                                              |             
|December 31, 2001  5,027,870 common shares      | 553                                          | 503         
|Additional paid-in capital                       | 9,275,117                                    | 9,250,167   
|Deficit accumulated during the development stage | (10,592,813)                                 | (10,066,485)



|Total stockholders' deficiency | (1,317,143) | (815,815)
|------------------------------ | ----------- | ---------



|Total liabilities and stockholders' deficiency | $       114,248 | $       188,712
|---------------------------------------------- | --------------- | ---------------
|                                               |                 |                





History and organization of the Company (Note 1)

Commitments(Note 12)





The accompanying notes are an integral part of these consolidated financial statements.

































PAWNBROKER.COM, INC.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)



| |                                                                |                                             |                                             |                                            |                                           
| | -------------------------------------------------------------- | ------------------------------------------- | ------------------------------------------- | ------------------------------------------ | ------------------------------------------
| | Cumulative
Amounts From
February 5,
1999 to
September 30,
2002 | Three Month
Period Ended
September 30,
2002 | Three Month
Period Ended
September 30,
2001 | Nine Month
Period Ended
September 30,
2002 | Nine Month
Period Ended
September 30,
2001



|OPERATING EXPENSES         |                |                 |                 |                  |                
|-------------------------- | -------------- | --------------- | --------------- | ---------------- | ---------------
|Amortization               | $      721,258 | $        16,169 | $        43,705 | $         74,787 | $       153,382
|General and administrative | 9,125,896      | 37,232          | 29,110          | 359,433          | 394,337        
|Stock-based compensation   | 378,685        | -               | -               | -                | -              



| | 10,225,839 | 53,401 | 72,815 | 434,220 | 547,719
| | ---------- | ------ | ------ | ------- | -------



|OTHER ITEMS                 |          |        |       |        |        
|--------------------------- | -------- | ------ | ----- | ------ | -------
|Interest expense            | 283,926  | 32,158 | 3,220 | 92,168 | 58,869 
|Interest income             | (80,138) | -      | (55)  | (60)   | (3,102)
|Loss on disposal of         |          |        |       |        |        
|capital assets              | 176,983  | -      | -     | -      | 176,983
|Write-off of capital assets | 70,674   | -      | -     | -      | 70,674 



|Loss before extraordinary item | (10,677,284) | (85,559) | (75,980) | (526,328) | (851,143)
|------------------------------ | ------------ | -------- | -------- | --------- | ---------
|                               |              |          |          |           |          
|EXTRAORDINARY ITEM             |              |          |          |           |          
|Gain on settlement of debt     | 84,471       | -        | -        | -         | -        



|Loss for the period | $(10,592,813) | $      (85,559) | $      (75,980) | $    (526,328) | $    (851,143)
|------------------- | ------------- | --------------- | --------------- | -------------- | --------------
|                    |               |                 |                 |                |               



|Basic and diluted loss per |  |                   |                   |                   |                  
|-------------------------- |  | ----------------- | ----------------- | ----------------- | -----------------
|common share (Note 3)      |  | $          (0.02) | $          (0.02) | $          (0.10) | $          (0.22)
|                           |  |                   |                   |                   |                  



|Weighted average number of
shares of common stock
outstanding |  | 5,038,981 | 5,047,609 | 5,031,574 | 3,879,636
|------------------------------------------------------------- |  | --------- | --------- | --------- | ---------
|                                                              |  |           |           |           |          









The accompanying notes are an integral part of these consolidated financial statements.



























PAWNBROKER.COM, INC.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



| |                                                                |                                            |                                           
| | -------------------------------------------------------------- | ------------------------------------------ | ------------------------------------------
| | Cumulative
Amounts From
February 5,
1999 to
September 30,
2002 | Nine Month
Period Ended
September 30,
2002 | Nine Month
Period Ended
September 30,
2001



|CASH FLOWS FROM OPERATING ACTIVITIES                            |               |                |               
|--------------------------------------------------------------- | ------------- | -------------- | --------------
|Loss for the period                                             | $(10,592,813) | $    (526,328) | $    (851,143)
|Items not affecting cash:                                       |               |                |               
|Amortization                                                    | 721,258       | 74,787         | 153,382       
|Stock-based compensation                                        | 378,685       | -              | -             
|Loss on disposal of capital assets                              | 176,983       | -              | 176,983       
|Write-off of capital assets                                     | 70,674        | -              | 70,674        
|Recovery of operating expenses                                  | (156,178)     | -              | (228,109)     
|Gain on settlement of debt                                      | (84,471)      | -              | -             
|Interest accrued on notes payable                               | 174,199       | 92,168         | 58,869        
|                                                                |               |                |               
|Net change in non-cash working capital items:                   |               |                |               
|Increase in accounts receivable                                 | -             | -              | (47,238)      
|Decrease in prepaid expenses                                    | -             | -              | 754           
|Increase (decrease) in accounts payable and
accrued liabilities | 1,517,319     | 180,696        | (1,053)       



|Net cash used in operating activities | (7,794,344) | (178,677) | (666,881)
|------------------------------------- | ----------- | --------- | ---------



|CASH FLOWS FROM INVESTING ACTIVITIES          |             |   |       
|--------------------------------------------- | ----------- | - | ------
|Purchase of capital assets                    | (1,011,971) | - | -     
|Purchase of domain name                       | (125,000)   | - | -     
|Acquisition of cash on purchase of subsidiary | 8,007       | - | -     
|Proceeds from disposal of capital assets      | 80,746      | - | 80,746
|Decrease in deposits                          | -           | - | 1,695 



|Net cash provided by (used in) investing activities | (1,048,218) | - | 82,441
|--------------------------------------------------- | ----------- | - | ------



|CASH FLOWS FROM FINANCING ACTIVITIES   |           |          |        
|-------------------------------------- | --------- | -------- | -------
|Proceeds from issuance of common stock | 6,559,500 | -        | -      
|Proceeds from convertible debenture    | 603,000   | 199,000  | -      
|Proceeds from notes payable (net)      | 1,682,000 | (45,000) | 361,500



|Net cash provided by financing activities | 8,844,500 | 154,000 | 361,500
|----------------------------------------- | --------- | ------- | -------



|Change in cash position for the period         | 1,938 | (24,677) | (222,940)
|---------------------------------------------- | ----- | -------- | ---------
|                                               |       |          |          
|Cash and cash equivalents, beginning of period | -     | 26,615   | 231,763  



|Cash and cash equivalents, end of period | $            1,938 | $          1,938 | $          8,823
|---------------------------------------- | ------------------ | ---------------- | ----------------
|                                         |                    |                  |                 



Supplemental disclosure with respect to cash flows(Note 11)



The accompanying notes are an integral part of these consolidated financial statements.































PAWNBROKER.COM, INC.

(A Development Stage Company)

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

(Unaudited)



| | Common Stock | Additional | Deficit
Accumulated
During the | Total            
| | ------------ | ---------- | ------------------------------ | -----------------
| | Shares       | Amount     | Paid-in
Capital                | Development
Stage



|Balance, February 5, 1999    | $                  - | $                  - | $                  - | $                 - | $                 -
|---------------------------- | -------------------- | -------------------- | -------------------- | ------------------- | -------------------
|                             |                      |                      |                      |                     |                    
|Common stock issued for cash | 850,000              | 85                   | 80,415               | -                   | 80,500             



|Balance, March 31, 1999                                | 850,000  | 85  | 80,415    | -           | 80,500     
|------------------------------------------------------ | -------- | --- | --------- | ----------- | -----------
|                                                       |          |     |           |             |            
|Capital stock of Pawnbroker.com, Inc.
at April 6, 1999 | 112,475  | 11  | 26,257    | -           | 26,268     
|Deficit of  Pawnbroker.com, Inc. at
April 6, 1999      | -        | -   | (23,261)  | -           | (23,261)   
|Common stock issued pursuant to the                    |          |     |           |             |            
|acquisition of Pawnbroker.com, Inc.                    |          |     |           |             |            
|(Nevada)                                               | 624,000  | 62  | -         | -           | 62         
|Common stock issued for cash                           | 130,000  | 13  | 3,002,987 | -           | 3,003,000  
|Share cancellation                                     | (25,000) | (3) | (247)     | -           | (250)      
|Common stock issued on exercise of                     |          |     |           |             |            
|share purchase warrants                                | 65,000   | 7   | 1,501,493 | -           | 1,501,500  
|Stock-based compensation for options                   |          |     |           |             |            
|issued to consultants and
non-employees                | -        | -   | 285,068   | -           | 285,068    
|Loss for the year                                      | -        | -   | -         | (4,706,109) | (4,706,109)



|Balance, March 31, 2000                                                       | 1,756,475 | 175 | 4,681,261 | (4,706,109) | (24,673)   
|----------------------------------------------------------------------------- | --------- | --- | --------- | ----------- | -----------
|                                                                              |           |     |           |             |            
|Common stock issued for conversion of
convertible debenture                   | 26,882    | 3   | 499,997   | -           | 500,000    
|Common stock issued for cash                                                  | 100,000   | 10  | 1,999,990 | -           | 2,000,000  
|Common stock issued on exercise of
stock options                              | 187,000   | 19  | 168,281   | -           | 168,300    
|Stock-based compensation for options  issued
to consultants and non-employees | -         | -   | 285,068   | -           | 285,068    
|Loss for the period                                                           | -         | -   | -         | (4,335,831) | (4,335,831)



|Balance, December 31, 2000                       | 2,070,357 | 207 | 7,634,597 | (9,041,940) | (1,407,136)
|------------------------------------------------ | --------- | --- | --------- | ----------- | -----------
|                                                 |           |     |           |             |            
|Common stock issued on exercise of
stock options | 10,000    | 1   | 8,999     | -           | 9,000      
|Common stock issued to settle debt               | 3,000,000 | 300 | 1,653,804 | -           | 1,654,104  
|Share cancellation                               | (52,487)  | (5) | (47,233)  | -           | (47,238)   
|Loss for the year                                | -         | -   | -         | (1,024,545) | (1,024,545)



|Balance, December 31, 2001                  | 5,027,870 | 503 | 9,250,167 | (10,066,485) | (815,815)
|------------------------------------------- | --------- | --- | --------- | ------------ | ---------
|                                            |           |     |           |              |          
|Common stock issued for consulting services | 500,000   | 50  | 24,950    | -            | 25,000   
|Loss for the period                         | -         | -   | -         | (526,328)    | (526,328)



|Balance, September 30, 2002 | $  5,527,870 | $              553 | $  9,275,117 | $(10,592,813) | $(1,317,143)
|--------------------------- | ------------ | ------------------ | ------------ | ------------- | ------------
|                            |              |                    |              |               |             





The accompanying notes are an integral part of these consolidated financial statements.





























PAWNBROKER.COM, INC.

(A Development Stage Company)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

SEPTEMBER 30, 2002









1.

HISTORY AND ORGANIZATION OF THE COMPANY



Digital Sign Corporation ("the Company), a Delaware corporation, was incorporated on February 13, 1998.  On February 14, 1998, the Company issued 2,500 common shares at par value for all of the issued and outstanding shares of Digital Signs, Inc.  On April 6, 1999, the Company acquired all of the issued and outstanding shares of Eriko Internet Inc. in exchange for 850,000 common shares of the Company.  Effective June 14, 1999, the Company acquired all of the issued and outstanding shares of Pawnbroker.com, Inc. (a Nevada corporation), in exchange for 624,000 common shares of the Company.  On June 10, 1999, the Company changed its name to Pawnbroker.com, Inc.



These financial statements contain the financial statements of Eriko Internet Inc. ("Eriko"), Pawnbroker.com, Inc., Digital Signs, Inc. and Pawnbroker.com, Inc. (a Nevada Corporation) presented on a consolidated basis.  On April 6, 1999, Pawnbroker.com, Inc. acquired all of the issued and outstanding share capital of Eriko by issuing 850,000 common shares.  As a result of the share exchange, control of the combined companies passed to the former shareholders of Eriko.  This type of share exchange has been accounted for as a capital transaction accompanied by a recapitalization of Eriko.  Recapitalization accounting results in consolidated financial statements being issued under the name of Pawnbroker.com, Inc., but are considered a continuation of Eriko.  As a result, the financial statements present the consolidated financial position of the companies as at September 30, 2002 and December 31, 2001 and the results of operations of Eriko for the period ended September 30, 2002 and the results of operations of Pawnbroker.com, Inc., (Nevada) and Digital Signs Inc. from their respective dates of acquisition.  The number of shares outstanding at September 30, 2002 and December 31, 2001 as presented are those of Pawnbroker.com, Inc.



The accompanying financial statements have been prepared by the Company without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, changes in stockholders equity and cash flows at September 30, 2002 and for the period then ended have been made.  These financial statements should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2001.  The results of operations for the period ended September 30, 2002 are not necessarily indicative of the results to be expected for the year ending December 31, 2002.





2.

GOING CONCERN



The Company's consolidated financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.  However, as shown in the accompanying consolidated financial statements, the Company has sustained substantial losses from operations since inception and has no current source of revenue.  In addition, the Company has used, rather than provided, cash in its operations.  The Company has utilized all of its available funding.  Without realization of additional capital, it would be unlikely for the Company to continue as a going concern.  It is management's plan in this regard to obtain additional working capital through equity financings.



The Company is in the process of restructuring its business and developing a new business plan and strategy under which it intends to provide financial resources to the pawn industry.  The Company is in the process of finalizing a business plan and attempting to restructure its liabilities to allow it to raise financing to fund the development of its planned business and its working capital requirements.  Over the next twelve months, the Company plans to raise cash through additional debt and equity financing.  The Company currently does not have sufficient working capital to finance its planned business strategy and may be unable to continue as a going concern.



The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.



| |                    |                  
| | ------------------ | -----------------
| | September 30,
2002 | December 31,
2001



|Deficit accumulated during the development stage | $
(10,592,813) | $
(10,066,485)
|------------------------------------------------ | -------------- | --------------
|Working capital deficiency                       | (753,453)      | (493,912)     
|                                                 |                |               







3.

SIGNIFICANT ACCOUNTING POLICIES





Principles of consolidation



These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Digital Signs, Inc., Eriko Internet Inc. and Pawnbroker.com, Inc. (a Nevada corporation).  All significant inter-company balances and transactions have been eliminated upon consolidation.



Estimates



The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the year.  Actual results could differ from these estimates.





Cash and cash equivalents



The Company considers all investments with a maturity of three months or less to be cash equivalents.





Loss per share



Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per Share" requires basic and diluted earnings per share to be presented.  Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period.  Diluted earnings per share takes into consideration shares of common stock outstanding (computed under basic earnings per share) and potentially dilutive shares of common stock.



Income taxes



Income taxes are provided in accordance with SFAS No. 109, "Accounting for Income Taxes".  A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards.  Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.



Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Comparative figures

Certain comparative figures have been reclassified to conform with the presentation adopted for the current

year.



New accounting pronouncements



In June, 2001, the Financial Accounting Standards Board ("FASB") approved the issuance of Statement of Financial Accounting Standards ("SFAS") No. 142, "Goodwill and Other Intangible Assets".  SFAS No. 142 addresses the accounting for all purchased intangible assets, but not the accounting for internally developed intangible assets.  Goodwill will no longer be amortized but will be reviewed for impairment in accordance with SFAS No. 142.  SFAS No. 142 is effective for fiscal years beginning after December 15, 2001.  Early adoption is permitted for entities with fiscal years beginning after March 15, 2001.



In July 2001, FASB issued SFAS No. 143, "Accounting for Asset Retirement Obligations" that records the fair value of the liability for closure and removal costs associated with the legal obligations upon retirement or removal of any tangible long-lived assets.  The initial recognition of the liability will be capitalized as part of the asset cost and depreciated over its estimated useful life.  SFAS 143 is required to be adopted effective January 1, 2003.



In August 2001, FASB issued SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" that supersedes SFAS No. 121 "Accounting for the Impairment or Disposal of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of."  SFAS No. 144 is required to be adopted effective January 1, 2002.



In April 2002, FASB issued No. 145, Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections".  SFAS No. 145 eliminates the requirement that gains and losses from the extinguishment of debt be aggregated and, if material, classified as an extraordinary item, net of the related income tax effect and eliminates an inconsistency between the accounting for sale-leaseback transactions and certain lease modifications that have economic effects that are similar to sale-leaseback transactions. Generally, SFAS No. 145 is effective for transactions occurring after May 15, 2002.



In June 2002, the FASB issued SFAS No. 146 "Accounting for Costs Associated with Exit or Disposal Activities" that nullifies Emerging Issues Task Force Issue No. 94-3 ("EITF Issue 94-3") "Liability Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity (Including Certain Costs Incurred in a Restructuring)".  SFAS No. 146 requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred, whereby EITF Issue 94-3 had recognized the liability at the commitment date to an exit plan.  The provisions of this statement are effective for exit or disposal activities that are initiated after December 31, 2002 with earlier application encouraged.



The adoption of these new pronouncements is not expected to have a material effect on the Company's financial position or results of operations.



Stock-based compensation



SFAS No. 123, "Accounting for Stock-Based Compensation," encourages, but does not require, companies to record compensation cost for stock-based employee compensation plans at fair value.  The Company has chosen to account for stock-based compensation using Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees."  Accordingly compensation cost for stock options is measured as the excess, if any, of the quoted market price of the Company's stock at the date of the grant over the amount an employee is required to pay for the stock.



The Company accounts for stock-based compensation issued to non-employees in accordance with the provisions of SFAS No. 123 and the Emerging Issues Task Force consensus in Issue No. 96-18 ("EITF 96-18"), "Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring or in Conjunction with Selling, Goods or Services".



Capital assets



Capital assets are recorded at cost less accumulated amortization.  The cost of capital assets is amortized using the straight-line method over the following estimated useful lives of the related assets:



|Furniture and fixtures | 5 years  
|---------------------- | ---------
|Computer equipment     | 3 years  
|Computer software      | 1.5 years
|Leasehold improvements | 2 years  



Domain name



The cost of domain name rights is being amortized over 3 years from the date of commencement of operations.



Financial instruments



The Company's financial instruments consists of cash and cash equivalents, accounts payable and accrued liabilities,  notes payable and convertible notes.  Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.  The fair value of these financial instruments approximate their carry values, unless otherwise noted.



4.

PREPAID EXPENSES



Prepaid consulting fees



Pursuant to a consulting agreement entered into during the period, the Company issued common shares of the Company in exchange for consulting services (Note (9).





5.

CAPITAL ASSETS



| | September 30, 2002 | December 31, 2001       
| | ------------------ | ------------------------
| | Cost               | Accumulated
Amortization



|Furniture and fixtures | $         64,970 | $         40,280 | $         24,690 | $         64,970 | $         30,533 | $         34,437
|---------------------- | ---------------- | ---------------- | ---------------- | ---------------- | ---------------- | ----------------
|Computer equipment     | 224,994          | 162,374          | 62,620           | 224,994          | 116,578          | 108,416         
|Computer software      | 275,381          | 275,381          | -                | 275,381          | 275,381          | -               
|Leasehold
improvements | 4,990            | 4,990            | -                | 4,990            | 3,107            | 1,883           



| | $       570,335 | $       483,025 | $        87,310 | $       570,335 | $       425,599 | $       144,736
| | --------------- | --------------- | --------------- | --------------- | --------------- | ---------------
| |                 |                 |                 |                 |                 |                





6.

DOMAIN NAME





| |                    |                  
| | ------------------ | -----------------
| | September 30,
2002 | December 31,
2001



|Domain name                     | $
125,000 | $
125,000
|------------------------------- | --------- | ---------
|                                |           |          
|Less:  Accumulated amortization | (125,000) | (107,639)
|                                | $
-       | $
17,361 
|                                |           |          







7.

NOTES PAYABLE



| |                    |                  
| | ------------------ | -----------------
| | September 30,
2002 | December 31,
2001



|Promissory note from Pacific Pawnbroker, non-interest bearing,
unsecured and payable on demand.                                                                  | $                  32,000 | $                20,000
|---------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------- | -----------------------
|                                                                                                                                                                 |                           |                        
|Promissory note from various parties, bearing interest at 18% per annum,
unsecured, and payable on December 31, 2003.                                            | 48,000                    | 80,000                 
|                                                                                                                                                                 |                           |                        
|Promissory note, bearing interest at 18% per annum, unsecured, and
payable on October 19, 2001 (repaid January 2002).                                            | -                         | 25,000                 
|                                                                                                                                                                 |                           |                        
|Promissory note, bearing interest at 18% per annum, unsecured,
and payable on February 21, 2002 (The Company is currently
negotiating an extention to the loan). | 100,000                   | 100,000                



|                      | 180,000   | 225,000  
|--------------------- | --------- | ---------
|Less: current portion | (132,000) | (145,000)



| | $                  48,000 | $               80,000
| | ------------------------- | ----------------------
| |                           |                       









8.

CONVERTIBLE NOTES

| |                    |                  
| | ------------------ | -----------------
| | September 30,
2002 | December 31,
2001



|Convertible notes from various parties, bearing interest at 18% per annum, unsecured, and payable on December 31, 2003, convertible into 1,206,000 (December 31, 2001 - 808,000) common shares of the Company. | $
603,000 | $
404,000
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | ---------





9.

CAPITAL STOCK



On April 6, 1999, Pawnbroker acquired all the issued and outstanding share capital of Eriko Internet Inc.  As consideration, Pawnbroker issued 850,000 common shares for cash proceeds of $80,500.



On May 19, 1999, a shareholder of Pawnbroker surrendered 25,000 shares of common stock which were initially issued as part of the total shares issued for the acquisition of Eriko Internet Inc.  Capital stock and contributed surplus have been reduced by $1 and $249 respectively to eliminate the values initially recorded on issuance.



On June 14, 1999, Pawnbroker acquired all of the issued and outstanding share capital of Pawnbroker.com, Inc., a Nevada Corporation.  As consideration, Pawnbroker issued 624,000 common shares at a deemed value of $62, equal to the par value of the shares issued.



On June 23, 1999, the Company issued 130,000 units through a private placement at a price of $23.10 per unit, for total proceeds of $3,003,000.  Each unit consisted of one common share and one-half of a share purchase warrant.  One full share purchase warrant entitled the holder to acquire one additional common share at a price of $23.10 per share until September 23, 2000 and at a price of $29.00 per share until September 23, 2001.  These share purchase warrants were exercised during the year ended March 31, 2000 for total proceeds of $1,501,500.



On August 17, 2000, the Company issued 100,000 units through a private placement at a price of $20.00 per unit, for total proceeds of $2,000,000.  Each unit consisted of one common share and one non-transferable share purchase warrant.  One purchase warrant entitled the holder to acquire one additional common share at a price of $30.00 per share until August 10, 2001.



On September 7, 2000, the Company converted the 9% convertible debenture in the aggregate principal amount of $500,000 into 26,882 common shares of the Company at a price of $18.60 per share.



In December, 2000,  the Company issued 187,000 common shares upon exercise of stock options at a price of $0.90 per share.



On January 30, 2001, the Company issued 10,000 common shares upon exercise of stock options at a price of $0.90 per share.



On April 17, 2001, the company issued 3,000,000 common shares of the Company to settle notes payable in the amount of $1,500,000 plus accrued interest of $154,104.



On August 1, 2001, the Company consolidated its capital stock on a 10:1 basis.  All capital stock numbers and per share amounts have been restated to reflect this consolidation.



On August 3, 2001, a shareholder of Pawnbroker surrendered 52,487 shares of common stock which were initially issued by exercise of stock options. Capital stock and contributed surplus have been reduced by $5 and $47,233, respectively, to eliminate the value initially recorded on issuance.



On September 28, 2002, the Company issued 500,000 common shares at a price of $0.05 per share for prepaid consulting fees in the amount of $25,000.



The Company has formed a Stock Option Plan ("Plan") under which it may grant stock options to employees and officers to acquire up to a total of 800,000 shares of the Company's common stock, at a price to be determined by the Plan administrator.



10.

STOCK OPTIONS AND WARRANTS



At September 30, 2002, incentive stock options were outstanding enabling the optionee to acquire the following number of common shares:





|                 |                |            
|---------------- | -------------- | -----------
|Number
of Shares | Exercise
Price | Expiry Date



|25,000 | $  67.50      | November 1, 2002 (expired subsequent to the period)                                                                                   
|------ | ------------- | --------------------------------------------------------------------------------------------------------------------------------------
|15,000 | 67.50         | 3 years from the date when the Company receives a specified amount of financing in private or public offerings after November 1, 1999.
|93,010 | 45.00  81.30 | 3 years from the initial vesting dates of the stock options, over periods ranging from September 13, 2002 to March 15, 2003.          
|5,000  | 15.30         | September 25, 2003                                                                                                                    



The following warrants enabling the holders to acquire the following number of common shares were outstanding at September 30, 2002:





|                 |                |            
|---------------- | -------------- | -----------
|Number
of Shares | Exercise
Price | Expiry Date



|7,200   | $  67.50 | May 10, 2003    
|------- | -------- | ----------------
|5,882   | 48.90    | June 7, 2003    
|33,426  | 35.90    | July 7, 2003    
|150,000 | 20.00    | October 11, 2005













Following is a summary of the stock option activity:



| |                  |                                
| | ---------------- | -------------------------------
| | Number
of Shares | Weighted
Average
Exercise
Price



|Outstanding at March 31, 2000     | 40,000    | $
67.50
|--------------------------------- | --------- | -------
|Granted                           | 499,667   | 40.90  
|Forfeited                         | (193,557) | 71.00  
|Exercised                         | (187,000) | 0.90   
|                                  |           |        
|Outstanding at December 31, 2000  | 159,110   | 77.40  
|Forfeited                         | (2,900)   | 52.30  
|Exercised                         | (10,000)  | 0.90   
|                                  |           |        
|Outstanding at December 31, 2001  | 146,210   | 67.40  
|Expired                           | (8,200)   | 67.50  
|                                  |           |        
|Outstanding at September 30, 2002 | 138,010   | $
62.68
|                                  |           |        



|Number of options currently exercisable | 138,010 | $
62.68
|--------------------------------------- | ------- | -------
|                                        |         |        











11.

SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS





| |                                            |                                           
| | ------------------------------------------ | ------------------------------------------
| | Nine Month
Period Ended
September 30,
2002 | Nine Month
Period Ended
September 30,
2001



|Cash paid for income taxes | $
-    | $
-
|-------------------------- | ------ | ---
|Cash paid for interest     | 20,409 | -  



Non-cash investing and financing transactions during the period from January 1, 2002 to September 30, 2002:



During the period, the Company issued 500,000 common shares at a price of $0.05 per share for prepaid consulting fees.









Non-cash investing and financing transactions during the period from January 1, 2001 to September 30, 2001 were as follows:



(a)   During the period, employee stock options were exercised to acquire 10,000 shares of common stock at a price of $0.90 per share in exchange for settlement of accounts payable totalling $9,000.



b)   During the period, the Company converted notes payable in the amount of $1,500,000 plus accrued interest of $154,104 into 3,000,000 common shares of the Company.



12.

COMMITMENTS



a)

The Company leases office and production premises and certain office equipment pursuant to operating leases which expire in 2003 and 2004:



Future annual lease payments are as follows:



|2002 | $             47,346
|---- | --------------------
|2003 | 16,719              
|2004 | 2,038               



b)

The Company entered into a distribution agreement with Alpha Financial Solutions ("Alpha") to market pre-paid debit cards to the pawn industry.  The Company will market and sell the Alpha Cash Card, which offers pawnbrokers and other retailers the opportunity to issue prepaid Alpha Cash Cards with debit card, payroll and money transfer features.  The agreement is for three years and gives the Company distribution rights to market the Alpha Cash Card to all industry categories, including the pawnbroking, check cashing, payday loan and auto title loan industries.





13.

INCOME TAXES



Subject to certain restrictions, the Company has certain operating losses available to reduce taxable income of future years.  Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements.



The Company has not recorded potential future income tax benefits of approximately $3,600,000 in operating losses which, if unutilized, expire as follows:



|2019 | $
1,898,381
|---- | -----------
|2020 | 7,143,559  
|2021 | 1,024,545  
|2022 | 526,328    



| | $
10,592,813
| | ------------







A reconciliation of the U.S. statutory federal income tax rate to the effective rate is as follows:



| |                                            |                                           
| | ------------------------------------------ | ------------------------------------------
| | Nine Month
Period Ended
September 30,
2002 | Nine Month
Period Ended
September 30,
2001



|U.S. federal statutory graduated rate                              | 34.00%   | 34.00%  
|------------------------------------------------------------------ | -------- | --------
|State income tax rate, net of federal benefit                      | 7.00%    | 7.00%   
|Net operating loss for which no tax benefit is currently available | (41.00)% | (41.00)%



| | 0.00% | 0.00%
| | ----- | -----
| |       |      



















The Company's total deferred tax asset as of September 30 is as follows:



| |      |     
| | ---- | ----
| | 2002 | 2001



|Tax benefit of net operating loss carryforward | $
3,600,000 | $
3,363,648
|---------------------------------------------- | ----------- | -----------
|Valuation allowance                            | (3,600,000) | (3,363,648)



| | $
- | $
-
| | --- | ---
| |     |    



At September 30, 2002, deferred taxes consisted of a net tax asset of approximately $3,600,000 due to operating loss carryforwards of $10,592,813 which was fully allowed for in the valuation allowance of $3,600,000.  The valuation allowance offsets the net deferred asset for which there is no assurance of recovery.



The valuation allowance will be evaluated at the end of each period, considering positive and negative evidence about whether the asset will be realized.  At that time, the allowance will either be increased or reduced; reduction could result in the complete elimination of the allowance if positive evidence indicates that the value of the deferred tax asset is no longer impaired and the allowance is no longer required.







NOTE REGARDING FORWARD LOOKING STATEMENTS



Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, including without limitation statements containing the words believes, anticipates, intends, expects, and words of similar import, as well as all projections of future results.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any of our future result or achievements expressed or implied by such forward-looking statements.  Such factors include, but are not limited to the following: our limited operating history; our history of losses; our lack of adequate working capital to fund its operations; risks related to our ability to continue as a going concern; need for additional capital; risks involving new product development; risk related to developing a market for cash card services in the pawnbroker industry; competition; management of growth and integration; risks of technological change; our dependence on key personnel, marketing relationships with pawnshops and third party suppliers; government regulation of cash cards and the pawn industry; economic and political factors; and the other risks and uncertainties described under Description of Business  Risk Factors in our annual report on Form 10-K filed with the Securities and Exchange Commission on April 2, 2002.



You should not place undue reliance on forward-looking statements.  We do not intend to update forward-looking statements contained in this report.  References to Company, Registrant, our, us, and we, refer to Pawnbroker.com, Inc. and its subsidiaries.





ITEM 2:

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS



OVERVIEW



We, Pawnbroker.com Inc., are a development stage company with no revenues from our operations.  We have never generated any revenues from our operations or profits.  We developed and launched a web site that provided online customers a method to search for and buy merchandise from the inventories of pawnshops.  Our web site experienced very limited success and we generated no material revenues.  We terminated facilitating transactions on our web site and suspended our business operations on March 1, 2001 after we failed to generate sufficient user support.



We restructured our business and developed a new business plan and strategy under which we intend to provide financial services by offering pawnbrokers industry-specific products and services.  Our initial focus is to market a stored value cash card system that allows pawnbrokers to issue their customers cash cards which can be used at most ATMs and merchants that accept bank debit cards.  We had also planned to offer secured loans to pawnbrokers; however, we have been unable to raise sufficient funds to finance this business strategy and we have been unable to develop this business.



During the past 12 months, we have been developing our business plan, attempting to restructure our liabilities, and pursuing opportunities to raise financing to fund the development of our planned business and our working capital requirements.  We currently do not have sufficient working capital to finance our planned business strategy.



As of September 30, 2002, we had a working capital deficit of $753,453, and a working capital deficit of $493,912 at December 31, 2001.  In their independent auditors report dated March 15, 2002, Davidson & Company, Chartered Accountants, expressed substantial doubt about our ability to continue as a going concern due to our lack of working capital for our planned business activities.  We intend to address this going concern issue by restructuring our liabilities where possible and by raising capital through equity, debt or convertible securities financing.  We are currently seeking financing by presenting our business plan to potential investors.  If we are unable to raise additional financing, we anticipate we will not be able to continue as a going concern.



Effective August 1, 2001, we completed a 10 (old)  for 1 (new) reverse split of our issued and outstanding common stock and reduced our authorized share capital to consist of 50,000,000 shares of common stock and 10,000,000 shares of preferred stock, each with a par value of $0.0001 per share.  At July 31, 2001, we had 50,803,567 shares of common stock issued and outstanding, and after giving the effect to the reverse split, we had approximately 5,080,357 shares of common stock issued and outstanding.  All share information contained in this report gives the effect to the reverse split.  As at November 14, 2002, we had 5,527,870 shares of common stock issued and outstanding.



During the quarter ended March 31, 2002, we entered into an independent service organization agreement, under which we have agreed to market cash card systems to pawnbrokers.  We have been developing our marketing strategy to market the cash cards and began actively marketing the cash card system during the third quarter of 2002.  We had no revenues from sales of cash card systems during the quarter.  Our plan is to continue to actively market the cash card systems during the remainder of 2002 and during 2003, assuming sufficient financing is available.  We cannot assure you our marketing efforts will be successful or that we will generate any significant revenue from the sale of cash cards.



On April 11, 2002, Joseph Schlader resigned as a director and as our President to return to his family business.  Mr. Schlader was a co-founder of the Company.  William Galine, a director of Pawnbroker.com and co-founder of the Company, replaced Schlader as the Company President.



On September 20, 2002, Stephen R. Fowler resigned as a director and Vice President of the Company.  We currently have only one executive officer and director, William Galine.  As a result of our current financial condition, we do not anticipate we will appoint additional officers or directors until we raise additional capital to fund our operations.



Neither we nor any of our subsidiaries are currently subject to any bankruptcy, receivership or similar proceedings at the date of this report.



We relocated our headquarters on August 9, 2002.  Our address is 1 East Liberty Street, Suite 7, Reno, Nevada, 89504, and our telephone number is (775) 686-2340.



Our web site address is www.pawnbroker.com.  The information on our web site is not a part of this quarterly report.



Results of Operations



Three and Nine Months Ended September 30, 2002 Compared to the Same Periods Ended September 30, 2001



Revenues.We had no revenues from operations.



General and Administrative.General and administrative related expenses for three months ended September 30, 2002 were $53,401, compared to $72,815 for the same period in 2001.  General and administrative related expense for the nine month period ended September 30, 2002 was $434,220 compared to $547,719 for the same period in 2001.  The general and administrative related expenses for the nine month period ended June 30, 2002 included an adjustment to previously accrued expenses and recovery of operating expenses recognized during the quarter ended March 31, 2001.  General and administrative related expense for the three and nine months ended September 30, 2002, consisted primarily of salaries and payroll, professional fees, travel, general office, printing, and maintaining the office in Reno.  General and administrative expenses are expected to remain at low levels until we begin marketing our stored value cash cards under the service organization agreement with Alpha Financial Resources, L.L.C., assuming we can raise adequate funding to finance our plan of operation.



Salaries and Payroll.During the first half of 2001, we laid off all but four of our employees in an effort to consolidate our operations to conserve working capital; however, we still incurred significant salaries and wage expense as during this consolidation period.  During the three month and nine month periods ended September 30, 2002, we employed three employees, including Bill Galine, our President, Steven Fowler, our Vice President (who resigned on September 20, 2002) and one part-time administrative employee.  Our salaries and payroll expenses are expected to decrease in the fourth quarter 2002 as a result of Mr. Fowlers resignation.  We do not currently intend to hire any employees during the fourth quarter 2002.  We may be required to hire additional employees, assuming financing is available, if we can successfully implement our marketing strategy to market the cash cards to pawnbrokers.



Contract Services.We terminated our use of services provided by contract service providers, which included investor relations, public relations and market research.  We do not intend to enter into contract services arrangements at this time.



Consulting.We entered into a consulting agreement with Brimmington Consultants, L.L.C. for their provision of consulting services for a period of one year to assist us in launching our cash card systems.  Under the consulting agreement, we agreed to grant Brimmington an option exercisable to acquire 500,000 shares of common stock at $0.05 per share under our stock option plan and deferred compensation in the amount of $25,000.  Brimmington exercised the option on September 28, 2002 and applied the deferred compensation to the exercise price.  In future periods, we intend to engage outside consultants with experience in the financial service industry to assist us with developing and implementing policies and procedures for our financial service offerings, assuming we can raise adequate funding to finance our plan of operation.  We have been negotiating with a consultant to provide us consulting services to assist us with the strategic planning and implementation of our stored value cash card system.  We anticipate that we will compensate this consultant by issuing stock or stock options in lieu of cash consideration.



Professional Fees.Professional fees consist primarily of legal and accounting expenses.  We decreased expenditures related to professional fee expense as a result of our lack of working capital and our reduction in the use of our legal counsel and accounting professionals during 2002.  We anticipate at least a minimum level of professional fees expenses related to legal and accounting support during the development of our new business plan and expenses related to preparing filings to comply with our Securities and Exchange Commission reporting obligations.  Professional fees may increase if we obtain additional financing to undertake research related to our financial services business and the development of documents, forms and procedures related to such business.



Marketing and Related Expense.Marketing and related expenses are expected to increase during the third and fourth quarters of 2002, assuming additional financing is available, as we attempt to market our stored value cash card system.



Office and Travel.We incurred general office expenses related to maintaining our principal office and travel expenses related primarily to travel for raising capital and business development activities.  Travel and related expenses are expected to be consistent with the levels during the remaining quarters of 2002.



Loss.Our loss for three months ended September 30, 2002 was $85,559 or $0.02 per share compared to $75,980 or $0.02 per share during the same period in 2001, an increase of $9,579.  Our loss for the nine months ended September 30, 2002 was $526,328 or $0.10 per share, compared to $851,143 or $0.22 per share for the same period in 2001.  The decreases resulted from our efforts to minimize operations and overhead and our ongoing restructuring efforts.  We anticipate that we will continue to incur losses during the fourth quarters 2002 at a level approximately as that recorded during the first three quarters 2002.  Losses may increase if we are able to raise sufficient financing to market our stored value cash card system, which will require us to increase marketing and general administrative expenses.  We cannot assure you that we will successfully raise the additional capital required to continue as a going concern or that our plan to market stored value cash card systems to pawnbrokers will be  commercially successful.





Liquidity and Capital Resources



In their independent auditor's report dated March 15, 2002, Davidson & Co., our auditors, expressed substantial doubt about our ability to continue as a going concern due to our lack of working capital for our planned business activities. We currently do not have sufficient working capital to meet our on-going obligations. As of September 30, 2002, we had cash and cash equivalents of $1,938 and a working capital deficit of  $753, 453, which includes current liabilities of $780,391.



During the nine months ended September 30, 2002, we received no revenues from our operations and we used net cash of $178,677 in operating activities.  Our use of cash during such period was primarily as a result of expenses related to sustaining our operations for salary expenses, professional fees and expenses related to general administrative expenses and overhead.

During the nine month period ended September 30, 2002, we have been attempting to raise the capital required to fund our Plan of Operation, but our efforts have only been marginally successful.

We will continue to incur losses until we can generate sufficient revenues from sales of our stored value cash card system on a profitable basis.  We do not anticipate we will begin to generate any revenues until we can successfully launch our stored value cash card system.  We began marketing our cash card systems during the third quarter of 2002, but did not generate any revenues from sales.  We intend to continue our marketing efforts during the fourth quarter 2002 and during 2003, assuming sufficient financing is available.

We estimate that our minimum cash requirement will be approximately $850,000 to $1,000,000 during the remainder of 2002, primarily for capital to market our stored value cash card system to pawnbrokers and to meet our current obligations to creditors.   See Plan of Operation.  We are in the process of seeking sufficient financing to implement our business strategy;  however, we have had limited success given the downward trend in the capital market and the economy.  We cannot assure you that we will be able to obtain sufficient financing to fund our working capital needs on acceptable terms, if at all.  If adequate funds are not available, we will be required to sell or liquidate our business or file bankruptcy.  We have no sources of external financing and currently no cash flows from operations.

Plan of Operation

Our plan of operation is based on information provided in discussions with our consultants, discussions with pawnshop owners, our results of operations, our negotiations and discussions with third-party vendors, experience of management and the decisions of our management.  Our plan of operation for the remainder year ending December 31, 2002 and during the first three quarters ended June 30, 2003, is as follows:

•

Raise additional financing of between $850,000 and $1,000,000 to fund the marketing efforts relating to our stored value cash card system and to meet our obligations to creditors; and

•

Launch our stored value cash card system and market the system to the pawnbroker industry.



In order to reduce our cash requirements, we intend to outsource certain development, marketing, human resources, legal and accounting functions.  Similarly, in order to reduce capital expenditures, we intend to enter into leasing agreements for hardware and other equipment requirements where required.

We cannot assure you that our actual expenditures will not exceed our estimated operating budget. Actual expenditures will depend on a number of factors, some of which are beyond our control, including, among other things:

(i)

the costs associated with marketing our stored value cash card system,

(ii)

our ability to successfully complete financing transactions with pawnbrokers,

(iii)

the availability of financing on acceptable terms,

(iv)

reliability of the assumptions of management in estimating cost and timing,

(v)

competition; and

(vi)

other factors that may be beyond our control.

We cannot assure you that we will generate sufficient revenues, if any, from our operations to earn a profit or that our planned service offerings will be commercially successful.  Our inability to successful implement our business plan or generate revenues from financial services will have a material adverse effect on our business and results of operations.

Capital Obligations and Commitments

As of September 30, 2002, we have commitments related to a promissory note in the amount of $100,000, bearing interest at the rate of 18% per annum, payable on February 21, 2002; $48,000 in promissory notes, bearing interest at the annual rate of 18%, due December 31, 2003; demand promissory notes in the aggregate principal amount of $32,000; and convertible debentures in the aggregate principal amount of $603,000, bearing interest at the annual rate of 18%, which are due December 31, 2003, and convertible into Pawnbroker.com common shares at $0.50 per share.

We estimate that our current cash requirements are approximately $70,000 to $80,000 a quarter, principally for salaries, professional services, marketing and office expenses.  We anticipate that our cash requirements will increase modestly in the fourth quarter of 2002 and in 2003 as a result of costs related to marketing our stored value cash card system and a minor increase on office expense related to corporate accounting requirements.

We intend to compete in the highly competitive financial services industry.  We will compete against companies that have substantially greater financial, technical and other resources than us.  Several competitors already have established brand names, strategic relationships and user loyalty, all of which create a competitive advantage over us.  We do not currently have sufficient working capital to implement our planned business strategy.  Competitive pressures, lack of adequate financing, failure to gain market acceptance and the slow down in the economy are some of the factors that have caused such companies to fail.  We face these same challenges, and we cannot guarantee that we will be able to compete effectively or that we will obtain sufficient financing to develop a commercially viable business.

Our ability to implement our proposed business plan is subject to obtaining adequate financing.  In order to implement our business plan, we anticipate that we will enter into financing arrangements in which we will issue equity, debt, convertible securities or a combination of these.  Such financing arrangements are anticipated to result in additional dilution to our existing shareholders.  We cannot assure you that we will be able to restructure our liabilities or that we will successfully obtain additional financing.  If we are unsuccessful at either of these, we will not be able to continue as a going concern and we may be required to liquidate our company or declare bankruptcy.









ITEM 3:

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

The Company believes that it does not have any material exposure to interest or commodity risks. The Company is exposed to economic and political changes in international markets where the Company competes, such as inflation rates, recession, foreign ownership restrictions, domestic and foreign government spending, budgetary and trade policies and other external factors over which the Company has no control.

ITEM 4:

CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.



Within 90 days prior to the date of this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-14.  Based upon the foregoing, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures are effective in connection with the filing of this Quarterly Report on Form 10-Q for the quarter ended September 30, 2002.



There were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any significant deficiencies or material weaknesses of internal controls that would require corrective action.

Part II

OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

As of the date hereof, there is no material litigation pending against the Company.  From time to time, the Company is a party to litigation and claims incident to the ordinary course of business.  While the results of litigation and claims cannot be predicted with certainty, the Company believes that the final outcome of such matters will not have a material adverse effect on the Companys business, financial condition, results of operations and cash flows.

ITEM 2.

CHANGES IN SECURITIES AND USE OF PROCEEDS

None.



ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matters were submitted to shareholders of the Company during the quarter covered by this report.

ITEM 5.

OTHER INFORMATION

On September 30, 2002, Stephen R. Fowler, resigned as a director and Vice President of the Company.

ITEM 6.

EXHIBITS AND REPORTS ON FORM 8-K

a)

Exhibits

|2.1(1)   | Agreement of Reorganization by and between Digital Sign Corporation, Edward F. Meyers III and Digital Signs, Inc. dated February 14, 1998.                     
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|2.2(1)   | Agreement and Plan of Share Exchange by and between Digital Sign Corporation and Eriko Internet, Inc. dated April 4, 1999.                                     
|2.3(1)   | Agreement and Plan of Reorganization by and among Pawnbroker.com, Inc.  and Joseph Schlader, Cheryl Schlader and William Galine dated May 14, 1999.            
|2.4(1)   | Addendum to Agreement and Plan of Reorganization by and among Pawnbroker.com, Inc. and Joseph Schlader, Cheryl Schlader and William Galine dated June 11, 1999.
|3.1(1)   | Certificate of Incorporation of Digital Sign Corporation filed February 13, 1998.                                                                              
|3.2(1)   | Certificate of Amendment of Digital Sign Corporation filed June 10, 1999.                                                                                      
|3.3(3)   | Certificate of Amendment of Pawnbroker.com, Inc. filed June 1, 2000.                                                                                           
|3.5(1)   | Bylaws of Digital Sign Corporation. (Previously filed as Exhibit 3.3 to Form 10)                                                                               
|3.6(3)   | Amended and Restated Bylaws of Pawnbroker.com, Inc.                                                                                                            
|10.1(1)  | Form of Private Placement Subscription Agreement dated February 1998.                                                                                          
|10.2(1)  | Contribution Agreement by and between Digital Sign Corporation and Cameron Woodbridge dated May 19, 1999.                                                      
|10.3(1)  | Subscription Agreement by and between Pawnbroker.com, Inc. and Packard Financial Group Inc. dated June 14, 1999                                                
|10.4(1)  | Form of Share Purchase Warrant issued to Packard Financial Group Inc. on June 14, 1999                                                                         
|10.5(1)  | 85 Keystone Lease Agreement by and between Pawnbroker.com, Inc. and The Kowalski Family Trust dated April 1, 1999                                              
|10.6(1)  | Design and Development Agreement by and between Pawnbroker.com, Inc. and Banshee, Inc. dated April 26, 1999                                                    
|10.7(1)  | Consulting Agreement by and between Pawnbroker.com, Inc. and IRG Investor Relations dated June 25, 1999                                                        
|10.8(2)  | Lease Agreement by and between Pawnbroker.com, Inc. and Don Pearlman Joint Venture Six dated December 2, 1999                                                  
|10.9(2)  | Employment Agreement by and between Pawnbroker.com, Inc. and Neil McElwee effective September 13, 1999                                                         
|10.10(2) | Employment Agreement by and between Pawnbroker.com, Inc. and Joseph Schlader effective June 13, 1999                                                           
|10.11(2) | Employment Agreement by and between Pawnbroker.com, Inc. and William Galine effective June 13, 1999                                                            
|10.12(2) | Employment Agreement by and between Pawnbroker.com, Inc. and Vahid Rafizadeh                                                                                   
|10.13(2) | Severance and Release Agreement by and between Pawnbroker.com, Inc. and Daniel McElwee effective May 18, 2000                                                  
|10.14(2) | Letter Agreement by and between Pawnbroker.com, Inc. and Jefferies & Co., Inc. dated December 1, 1999                                                          
|10.15(2) | 12% Promissory Note in the Principal Amount of $1,000,000 dated April 26, 2000 issued to BWI Avionics, Ltd.                                                    
|10.16(2) | Agreement by and between Pawnbroker.com, Inc. and RedTagOutlet.com, Inc. dated May 10, 2000                                                                    
|10.17(4) | Letter Agreement by and between Pawnbroker.com, Inc. and Ladenburg Thalmann & Co. Inc. dated June 7, 2000                                                      
|10.18(4) | Letter Agreement by and between Pawnbroker.com, Inc. and Ladenburg Thalmann & Co. Inc. dated June 7, 2000                                                      
|10.19(4) | Loan Agreement by and between Pawnbroker.com, Inc.  and  Lamothe Investing Corp.  dated June 7, 2000                                                           
|10.20(4) | Registration Rights Agreement by and between Pawnbroker.com, Inc. and Lamothe Investing Corp. dated June 7, 2000                                               
|10.21(4) | Escrow Agreement related to the Loan Agreement dated June 7, 2000                                                                                              
|10.22(4) | Form of 9% Convertible Debenture issued to Lamothe Investing Corp.                                                                                             
|10.23(4) | Form of Warrant issued to Lamothe Investing Corp.                                                                                                              
|10.29(3) | Amended and Restated Stock Option Plan, filed June 1, 2000.                                                                                                    
|10.30(5) | Common Stock Purchase Agreement by and between Pawnbroker.com, Inc. and Gestrow Investments Limited dated July 6, 2000                                         
|10.31(5) | Registration Rights Agreement by and between Pawnbroker.com, Inc. and Gestrow Investments Limited dated July 6, 2000                                           
|10.32(5) | Escrow Agreement related to the Common Stock Purchase Agreement dated July 6, 2000                                                                             
|10.33(5) | Form of Warrant issued to Gestrow Investments Limited                                                                                                          
|10.34(5) | Form of Warrant issued to Ladenburg Thalmann & Co.  Inc.                                                                                                       
|10.35(5) | Letter Agreement dated July 7, 2000                                                                                                                            
|10.36(5) | Promissory Note issued to Ladenburg Thalmamm & Co. Inc.                                                                                                        
|10.37(5) | Letter Agreement with Gestrow Investment Limited dated July 19, 2000                                                                                           
|10.38(6) | Sales and Fulfillment Agreement dated September 2000, by and between Jewelry Edge and Pawnbroker.com, Inc. (filed as Exhibit 10.1)                             
|10.39(6) | Subscription Agreement related to August 11, 2000 unit private placement.  (filed as Exhibit 10.2)                                                             
|10.40(6) | Strategic Alliance Agreement, dated October 18, 2000, between First Cash Financial Services, Inc. and Pawnbroker.com, Inc.  (filed as Exhibit 10.3)            
|10.41(6) | Form of Warrant issued to First Cash Financial Services, Inc.  (filed as Exhibit 10.4)                                                                         
|10.42(6) | Strategic Alliance Agreement, dated October 18, 2000, between First Cash Financial Services, Inc. and Pawnbroker.com, Inc.  (filed as Exhibit 10.3)            
|10.43(6) | Form of Warrant issued to First Cash Financial Services, Inc.  (filed as Exhibit 10.4)                                                                         
|10.44(7) | 18% Promissory Note in the Principal Amount of $100,000 dated July 19, 2001 issued to Edward Romano.                                                           
|10.45(7) | Form of Subscription Agreement dated May 11, 2001  Note Conversion                                                                                            
|10.46(8) | Form of 18% Convertible Promissory Notes                                                                                                                       
|10.47(8) | Independent Service Organization Agreement Alpha Cashcard Program dated April 2, 2002                                                                          
|10.48    | Consulting Agreement by and between Pawnbroker.com, Inc. and Brimmington Consultants, L.L.C. dated August, 2002.                                               
|99.1     | Section 906 Certification of Acting Chief Executive Officer                                                                                                    
|99.2     | Section 906 Certification of Acting Chief Financial Officer                                                                                                    



(1)                                Previously filed September 1, 1999 on Form 10.



(2)                                Previously filed October 13, 1999 on Form 10/A.



(3)                                Previously filed on June 1, 2000 on Form 8-K.



(4)                                Previously filed on June 30, 2000 on Form 10-K.



(5)                                Previously filed on July 31, 2000 on Form S-1.



(6)                                Previously filed on November 14, 2000 on Form 10-Q.



(7)                                Previously filed on May 15, 2001 on Form 10-K.



(8)                                Previously filed on April 2, 2002 on Form 10-K.



b)

Reports on Form 8-K



None.





















SIGNATURES



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.







Date:

November 14, 2002



PAWNBROKER.COM, INC.







By:

/s/ William Galine



Name:

William Galine

Title:

President

(Principal Executive Officer and Principal Financial Officer)







CERTIFICATIONS



I, William Galine, certify that:

1.  I have reviewed this quarterly report of Pawnbroker.com, Inc.

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

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

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

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

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

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

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

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

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

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



By:

/s/ William Galine



Name:

William Galine

Title:

President

(Acting Principal Executive Officer)



___________________________



I, William Galine, certify that:

1.  I have reviewed this quarterly report of Pawnbroker.com, Inc.

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

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

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

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

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

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

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

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

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

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



By:

/s/ William Galine



Name:

William Galine

Title:

President

(Acting Principal Financial Officer)