UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    Form 10-Q

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

For the quarterly period ended                       March 31, 2003
                               -------------------------------------------------

                                       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              0-28351
                       ---------------------------------------------------------

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

                  COLORADO                             84-1317836
                  --------                             ----------
        (State or other jurisdiction of     (IRS Employer Identification No.)
        incorporation or organization)

                 7347 South Revere Parkway, Centennial, CO 80112
                 -----------------------------------------------
                    (Address of principal executive offices)

                                 (303) 690-2910
                                 --------------
              (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
     -----                 -----

      22,206,144          Common Shares were outstanding as of May 15, 2003
-----------------------

<PAGE>

                         KOLORFUSION INTERNATIONAL, INC.

                                    I N D E X


                                                                            Page
                                                                            ----
PART I. FINANCIAL INFORMATION

     Item 1. Financial Statements (Unaudited)

          Condensed Balance Sheets
             March 31, 2003 (Unaudited) and
                June 30, 2002                                                 1

          Statements of Operations
             Three and nine months ended March 31, 2003 and 2002
              (Unaudited)                                                     2

          Condensed Statements of Cash Flows
             Nine months ended March 31, 2003 and 2002 (Unaudited)            3

          Selected Notes to Condensed Financial
             Statements (Unaudited)                                           4


     Item 2. Management's Discussion and Analysis of Financial
              Condition and Results of Operations                           5-6


PART II. OTHER INFORMATION                                                  7-9

<PAGE>

                          Part I. FINANCIAL INFORMATION
                                  ---------------------
                          Item I. FINANCIAL STATEMENTS
                                  --------------------

                         KOLORFUSION INTERNATIONAL, INC.

                            CONDENSED BALANCE SHEETS

                                                   March 31,        June 30,
             ASSETS                                  2003             2002
                                                 ------------     ------------
                                                  (Unaudited)       (Audited)
CURRENT ASSETS:
    Cash and cash equivalents                    $     91,862     $      9,903
    Trade accounts receivable                         273,335          212,273
    Inventories                                       176,615          177,095
    Deferred rent                                     120,000
                                                 ------------     ------------
             Total current assets                     661,812          399,271

OTHER ASSETS:
    Patents, net                                    1,292,374        1,477,001
    Other                                              17,270            1,270
                                                 ------------     ------------
                                                    1,309,644        1,478,271

LEASEHOLD IMPROVEMENTS AND EQUIPMENT, net             150,327           62,702
                                                 ------------     ------------

                                                 $  2,121,783     $  1,940,244
                                                 ============     ============

        LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:
    Accounts payable                             $    251,951     $    407,405
    Notes payable                                     482,039          450,000
    Accrued expenses                                   22,753           33,054
    Accrued expenses due stockholders                 275,500          261,000
    Payable to individual                           2,246,414        2,246,414
                                                 ------------     ------------
             Total current liabilities              3,278,657        3,397,873

STOCKHOLDERS' DEFICIT:
    Common stock                                       22,206           21,918
    Additional paid-in capital                      9,364,375        9,220,663
    Accumulated deficit                           (10,543,455)     (10,700,210)
                                                 ------------     ------------
                                                   (1,156,874)      (1,457,629)
                                                 ------------     ------------

                                                 $  2,121,783     $  1,940,244
                                                 ============     ============

Note: The balance sheet at June 30, 2002 has been taken from the audited
      financial statements at that date, and has been condensed.

See Notes to Condensed Financial Statements.

                                       1
<PAGE>

                         KOLORFUSION INTERNATIONAL, INC.

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                          Three Months Ended               Nine Months Ended
                                                               March 31                         March 31
                                                   -----------------------------     -----------------------------
                                                        2003             2002             2003            2002
                                                   ------------     ------------     ------------    ------------
<S>                                                <C>              <C>              <C>             <C>
Revenues                                           $    581,924     $    458,574     $  2,030,343    $  1,182,406

Expenses:
    Cost of sales                                       451,205          280,524          878,708         843,539
    Selling, general and administrative                 416,357          329,344        1,099,053         918,445

    Other income (expense)                              119,069           (4,925)         104,173         (40,624)
                                                   ------------     ------------     ------------    ------------

             Net income (loss)                     $   (166,569)    $   (156,219)    $    156,755    $   (620,202)
                                                   ============     ============     ============    ============

Income (loss) per common share                     $       (.01)    $       (.01)    $        .01    $       (.03)
                                                   ============     ============     ============    ============

Income (loss) per common share assuming dilution   $       (.01)    $       (.01)    $        .01    $       (.03)
                                                   ============     ============     ============    ============

Weighted average outstanding shares                  22,110,144       21,818,144       21,078,144      21,818,144
                                                   ============     ============     ============    ============
</TABLE>


See Notes to Condensed Financial Statements.





                                       2
<PAGE>

                         KOLORFUSION INTERNATIONAL, INC.

                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                       Nine Months Ended
                                                                            March 31
                                                                    -----------------------
                                                                       2003          2002
                                                                    ---------     ---------
<S>                                                                 <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income (loss)                                               $ 156,755     $(620,202)
    Depreciation and amortization                                     221,349       222,000
    Loss on disposal of equipment                                                    31,350
    Deferred rent expense                                              24,000
    Change in:
        Accounts receivable                                           (61,062)     (116,274)
        Inventories                                                       480       (17,700)
        Accounts payable                                             (155,454)      335,737
        Accrued expenses                                              (10,301)          280
        Accrued expenses due stock holders                             14,500        94,000
                                                                    ---------     ---------
             Net cash provided by (used in) operating activities      190,267       (70,809)

CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of leasehold improvements and equipment                 (124,347)       (2,477)
    Other assets                                                      (16,000)
                                                                    ---------     ---------
             Net cash used in investing activities                   (140,347)       (2,477)

CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from payable to stockholder                                             25,000
    Proceeds from notes payable                                       136,436
    Payments on notes payable                                        (104,397)       (2,801)
                                                                    ---------     ---------
             Net cash provided by (used in) financing activities       32,039        22,199
                                                                    ---------     ---------

             Net increase (decrease) in cash                           81,959       (51,087)

Cash and cash equivalents:
    Beginning of period                                                 9,903        86,445
                                                                    ---------     ---------

    End of period                                                   $  91,862     $  35,358
                                                                    =========     =========

SUPPLEMENTAL INFORMATION:
    Interest paid                                                      13,359
                                                                    ---------

    Stock issued for deferred rent                                    144,000
                                                                    ---------
</TABLE>

See Notes to Condensed Financial Statements.

                                       3
<PAGE>

                         KOLORFUSION INTERNATIONAL, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1.       Condensed Financial Statements:

              The condensed balance sheet as of March 31, 2003, the statement of
              operations for the periods ended March 31, 2003 and 2002, and the
              condensed statement of cash flows for the periods then ended 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 and changes in cash flows at March 31, 2003
              and for all periods presented have been made.

              Certain information and footnote disclosures normally included in
              financial statements prepared in accordance with generally
              accepted accounting principles have been condensed or omitted. It
              is suggested that these condensed financial statements be read in
              conjunction with the financial statements and notes thereto
              included in the Company's June 30, 2002 audited financial
              statements. The results of operations for the period ended March
              31, 2003 are not necessarily indicative of the operating results
              for the full year.


Note 2.       Stockholders' Deficit:

              During the nine months ended March 31, 2003, stockholders' deficit
              changed for a net income of $156,755 and the issuance of 288,000
              shares of common stock for $144,000.







                                       4
<PAGE>

                         KOLORFUSION INTERNATIONAL, INC.

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

         Revenues increased in the quarter ended March 31, 2003 to $581,924 from
$458,574 in 2002. The increase is due to increasing acceptance of the Company's
patented process and new customers.

         Cost of sales increased in the quarter ended March 31, 2003 to $451,205
from $280,524 in 2002. The Company expects the profit margin to increase as it
acquires new customers. Selling, general and administrative expenses increased
in 2003 to $416,357 from $329,344 in 2002.

         The result was a net loss in the quarter ended March 31, 2003 of
$166,569 compared to a net loss of $156,219 in the same quarter in 2002. The net
loss per share was $.01 in 2003, compared to $.01 in 2002.

         Revenues increased in the nine months ended March 31, 2003 to
$2,030,343 from $1,182,406 in 2002. The increase is due to increasing acceptance
of the Company's patented process and new customers.

         Cost of sales increased in the nine months ended March 31, 2003 to
$878,708 from $843,539 in 2002. The Company expects the profit margin to
increase as it acquires new customers. Selling, general and administrative
expenses increased in 2003 to $1,099,053 from $918,445 in 2002

         The result was a net income in the nine months ended March 31, 2003 of
$156,755 compared to a net loss of $620,202 in the same period in 2002. The net
income per share was $.01 in 2003, compared to a net loss $.03 in 2002.

SIGNIFICANT ACCOUNTING POLICIES

         Financial Reporting Release No. 60, which was recently released by the
Securities and Exchange commission, requires all companies to include a
discussion of critical accounting policies or methods used in the preparation of
financial statements. Note 1 of the Notes to the Financial Statements for the
year ended June 30, 2002 includes a summary of the significant accounting
policies and methods used in the preparation of our Financial Statements. The
following is a brief discussion of the more significant accounting policies and
methods used by the company.

         General

         The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities
at the dates of the financial statements and reported amounts of revenues and
expenses during the reporting periods. The most significant estimates and
assumptions relate to the valuation of inventory, patent rights and the
recognition of revenue. Actual amounts could differ from these estimates.

         Inventory Valuation

         Inventories consist primarily of raw materials are valued at the lower
of cost or market (first-in, first-out method).

         Revenue Recognition

         License and royalty revenue is recognized upon completion of the
earnings process. The Company recognizes sales when products are shipped,
collectibility is probable, and the fee is fixed or determinable.

         Patent rights

         The cost of the patent rights is being amortized using the
straight-line method over nine years. In accordance with SFAS No. 121, the
Company evaluates whether changes have occurred that would require revision of
the remaining estimated lives of recorded long-lived assets, or render those
assets not recoverable. If such circumstances arise,

                                       5
<PAGE>

recoverability is determined by comparing the undiscounted cash flows of
long-lived assets to their respective carrying values. The amount of impairment,
if any, is measured on the projected cash flows using an appropriate discount
rate.

FORWARD-LOOKING STATEMENTS

         Certain statements in this report constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and the
Securities Exchange Act of 1934. These statements may appear in a number of
places in this report and can be identified by the use of terminology such as
"anticipate," "believe," "estimate," "intend," "may," "could," "possible,"
"plan," "will," "forecast," and similar words or expressions. The Company's
forward-looking statements generally relate to, among other things: (i) the
Company's financing plans; (ii) trends affecting the Company's financial
condition or results of operations; (iii) the Company's growth strategy and
operating strategy; and (iv) the declaration of any payment of dividends.
Investors must carefully consider forward-looking statements and understand that
such statements involve a variety of risks and uncertainties, known and unknown,
and may be affected by inaccurate assumptions. Consequently, no forward-looking
statement can be guaranteed and actual results may vary materially. The Company
undertakes no obligation to update any forward-looking statement.





                                       6
<PAGE>

                           PART II. OTHER INFORMATION
                                    -----------------

Item 1.       Legal Proceedings

              The Company is aware of no legal proceeding which is pending or
              threatened to which the Company is a party or of which its
              property is subject.

Item 3.       Controls and Procedures

                 Under the supervision and with the participation of our
              management, including our principal executive officer, we
              conducted an evaluation of our disclosure controls and procedures,
              as such term is defined under Rule 13a-14(c) promulgated under the
              Securities Exchange Act of 1934, as amended, within 90 days of the
              filing date of this report. Based on their evaluation, our
              principal executive officer concluded that Kolorfusion
              International, Inc.'s disclosure controls and procedures are
              effective.

Item 6.       Exhibits and Reports on Form 8-K

              No reports on Form 8-K were filed during the nine months ended
              March 31, 2003.


                                    SIGNATURE

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.

                                      KOLORFUSION INTERNATIONAL, INC.


Date: May 12, 2003                    By: /s/  Stephen Nagel
                                          --------------------------------------
                                      President


                                       7
<PAGE>

                                 CERTIFICATIONS

I, Stephen Nagel, certify that:

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

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

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

4. I am 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 is made known to us by others
within those entities, particularly during the period in which this quarterly
report is being prepared;

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

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

5. 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 functions):

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

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

6. 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.


DATE: MAY 12, 2003         SIGNED:  /S/  STEPHEN NAGEL
                                    --------------------------------
                               NAME:    STEPHEN NAGEL
                               TITLE:   CHIEF EXECUTIVE OFFICER AND
                                        PRINCIPAL FINANCIAL OFFICER

                                       8