UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   Form 10-QSB


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

For the quarterly period ended                  December 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 Revere Parkway, Centennial, Colorado 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
     -----                 -----


23,388,144 Common Shares were outstanding as of February 11, 2004
----------


<PAGE>


                         KOLORFUSION INTERNATIONAL, INC.


                                    I N D E X


                                                                          Page
                                                                          ----
PART I.   FINANCIAL INFORMATION

   Item 1.   Financial Statements (Unaudited)

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

                  Condensed Statements of Operations
                     Six months and three months ended
                        December 31, 2003 and 2002 (Unaudited)             2

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

                  Notes to Condensed Financial
                     Statements (Unaudited)                                4

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

   Item 3.   Controls and Procedures                                       8


PART II.     OTHER INFORMATION

   Item 1.   Legal Proceedings                                             9

   Item 2.   Changes in Securities                                         9

   Item 3.   Defaults Upon Senior Securities                               9

   Item 4.   Submission of Matters to a Vote of Security Holders           9

   Item 5.   Other Information                                             9

   Item 6.   Exhibits and Reports on Form 8-K

             (a) Exhibits                                                  9

             (b) Reports on Form 8-K                                       9


<PAGE>


PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements


                         KOLORFUSION INTERNATIONAL, INC.

                                 BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                                      December 31,           June 30,
             ASSETS                                                                       2003                 2003
                                                                                     --------------       --------------
                                                                                       (Unaudited)           (Audited)
<S>                                                                                  <C>                  <C>
CURRENT ASSETS:
    Cash and cash equivalents                                                        $        1,270       $       73,772
    Trade accounts receivable, no allowance for
        doubtful accounts considered necessary                                              216,787              123,280
    Inventories                                                                             276,941              262,803
                                                                                     --------------       --------------
             Total current assets                                                           494,998              459,855
                                                                                     --------------       --------------

OTHER ASSETS:
    Patents, less accumulated amortization
    December $2,584,784; June $2,461,699                                                  1,107,746            1,230,831
    Other                                                                                    29,270              101,270
                                                                                     --------------       --------------
                                                                                          1,137,016            1,332,101

LEASEHOLD IMPROVEMENTS AND EQUIPMENT, NET                                                   129,637              149,888
                                                                                     --------------       --------------

                                                                                     $    1,761,651       $    1,941,844
                                                                                     ==============       ==============

        LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES:
    Accounts payable                                                                 $      285,419       $      227,241
    Deferred revenue                                                                         50,000               87,500
    Current portion of long-term debt                                                       548,820              589,148
    Accrued expenses                                                                         22,914               31,267
    Accrued expenses due stockholders                                                       403,115              371,000
                                                                                     --------------       --------------
             Total current liabilities                                                    1,310,268            1,306,156
                                                                                     --------------       --------------

LONG-TERM DEBT, net of current portion                                                      486,690              502,637
                                                                                     --------------       --------------

STOCKHOLDERS' EQUITY (DEFICIT):
    Preferred stock, $.001 par value, 10,000,000 shares authorized,
        none issued or outstanding
    Common stock, $.001 par value, 100,000,000 shares authorized,
        December 31, 2003 - 23,388,144; June 30, 2003 -
        23,226,144 shares issued and outstanding                                             23,388               23,226
    Additional paid-in capital                                                            9,854,193            9,773,355
    Accumulated deficit                                                                  (9,912,888)          (9,663,530)
                                                                                     ---------------      --------------
                                                                                            (35,307)             133,051
                                                                                     ---------------      --------------

                                                                                     $    1,761,651       $    1,941,844
                                                                                     ==============       ==============
</TABLE>


See Notes to Condensed Financial Statements.


                                       1
<PAGE>


                         KOLORFUSION INTERNATIONAL, INC.

                       CONDENSED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                            Three Months Ended                  Six Months Ended
                                                                December 31                        December 31
                                                     --------------------------------   --------------------------------
                                                          2003              2002             2003              2002
                                                     --------------    --------------   --------------    --------------
<S>                                                  <C>               <C>              <C>               <C>
Revenues                                             $      549,558    $      339,772   $    1,126,726    $    1,448,419

Expenses:
    Cost of sales                                           297,056           189,830          604,402           427,503
    Selling, general and administrative                     417,114           380,947          823,880           682,696

Other income (expense)                                       58,097            (3,829)          52,198           (14,896)
                                                     --------------    ---------------  --------------    --------------

             Net income (loss)                       $     (106,515)   $     (234,834)  $     (249,358)   $      323,324
                                                     ===============   ==============   ==============    ==============


Income (loss) per common share - basic               $           --    $         (.01)   $        (.01)   $          .01
                                                     ==============    ==============   ==============    ==============

Income (loss) per common share - diluted             $           --    $         (.01)   $        (.01)   $          .01
                                                     ==============    ==============   ==============    ==============


Weighted average outstanding shares - basic              23,294,144        21,818,144       23,262,477        21,818,144
                                                     ==============    ==============   ==============    ==============

Weighted average outstanding shares - diluted            23,294,144        21,818,144       23,262,477        22,378,132
                                                     ==============    ==============   ==============    ==============
</TABLE>


See Notes to Condensed Financial Statements.


                                       2
<PAGE>


                         KOLORFUSION INTERNATIONAL, INC.

                       CONDENSED STATEMENTS OF CASH FLOWS
                   Six Months Ended December 31, 2003 and 2002

<TABLE>
<CAPTION>
                                                                                   2003              2002
                                                                              --------------    --------------
<S>                                                                           <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income (loss)                                                         $     (249,358)   $      323,324
    Adjustments to reconcile net income (loss) to net
       cash provided by (used in) operating activities:
       Depreciation and amortization                                                 141,445           147,566
       Loss on disposal of equipment                                                   1,891                --
       Increase in trade accounts receivable                                         (93,507)         (235,821)
       (Increase) decrease in inventories                                            (14,138)            2,002
       Decrease in other assets                                                       72,000                --
       Increase (decrease) in accounts payable                                        58,178          (205,345)
       Decrease in deferred revenue                                                  (37,500)               --
       Increase (decrease) in accrued expenses                                        (8,353)            9,221
       Increase in accrued expenses due stockholders                                  32,115             8,500
                                                                              --------------    --------------
        Net cash provided by (used in) operating activities                          (97,227)           49,447
                                                                              --------------    --------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchases of leasehold improvements and equipment                                     --           (16,823)
                                                                              --------------    --------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Payments on long-term debt                                                       (56,275)           (4,000)
    Net proceeds from issuance of common shares                                       81,000                --
                                                                              --------------    --------------
        Net cash (used in) financing activities                                       24,725            (4,000)
                                                                              --------------    --------------

        Increase (decrease) in cash and cash equivalents                             (72,502)           28,624

Cash and cash equivalents:
    Beginning                                                                         73,772             9,903
                                                                              --------------    --------------

    Ending                                                                    $        1,270    $       38,527
                                                                              ==============    ==============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
    Cash payments for interest                                                $       20,924    $       14,913
                                                                              ==============    ==============
</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 December 31, 2003, the
              statements of operations for the periods ended December 31, 2003
              and 2002, and the condensed statements of cash flows for the
              six-month periods then ended have been prepared by the Company,
              without audit. Operating results for the periods ended December
              31, 2003 are not necessarily indicative of the results that may be
              expected for the fiscal year ending June 30, 2004. 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
              December 31, 2003 and for all periods presented have been made.

              Certain information and footnote disclosures normally included in
              financial statements prepared in accordance with accounting
              principles generally accepted in the United States of America 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,
              2003 audited financial statements. The results of operations for
              the period ended December 31, 2003 are not necessarily indicative
              of the operating results for the full year.

Note 2.       Stock Based Compensation:

              The Company uses the intrinsic value method prescribed by
              Accounting Principles Board Opinion No. 25, "Accounting for Stock
              Issued to Employees," and related interpretations in accounting
              for employee stock options. Under the intrinsic value method,
              compensation expense is recorded only to the extent that the
              market price of the common stock exceeds the exercise price of the
              stock option on the date of grant.

              The Company has adopted the disclosure-only provisions of SFAS No.
              123. During the quarters ended December 31, 2003 and 2002 there
              were no stock options that vested. Therefore had compensation cost
              for stock options been determined based on the fair value
              methodology prescribed by SFAS 123, the Company would have
              recognized no additional compensation expense.

Note 3.       Patents:

              The Company purchased the patent rights for Canada and the United
              States. The cost of those rights are amortized using the
              straight-line method over nine years. Patent amortization expense
              amounted to $61,543 for each of the quarters ended December 31,
              2003 and 2002 and $123,085 for each of the six month periods ended
              December 31, 2003 and 2002. Patent amortization expense will be
              $246,170 for each of the next five years.

Note 4.       Other income (expense)

              Included in other income (expense) for the three and six months
              ended December 31, 2003 is other income of $75,013 related to
              shares of Company common stock the Company received from a former
              officer of the Company. The former officer surrendered the stock
              as payment for an employment legal settlement.


Note 5.       Stockholders' Deficit:

              During the six months ended December 31, 2003, stockholders'
              deficit changed for a net loss of $249,358 and for issuance of
              162,000 shares of common stock for $81,000.

Note 6:       Revenue:

              During the six months ended December 31, 2002, the Company
              recognized license revenue of $790,000 of which $780,000 was from
              one customer.


                                       4
<PAGE>


Note 7:       Company's Continued Existence

              The accompanying financial statements have been prepared in
              conformity with accounting principles generally accepted in the
              United States of America, which contemplate continuation of the
              Company as a going concern. The Company has sustained substantial
              losses. The Company may arrange for the sale of additional shares
              of stock to obtain additional operating capital throughout the
              year and intends to increase cash flows from operations. There can
              be no assurance the Company will be able to obtain capital on
              acceptable terms.

Note 8:       Income Taxes

              Deferred taxes are provided on a liability method whereby deferred
              tax assets are recognized for deductible temporary differences and
              net operating loss and tax credit carry forwards and deferred tax
              liabilities are recognized for taxable temporary differences.
              Temporary differences are the differences between the financial
              statement reported amounts of assets and liabilities and their tax
              basis. 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 the
              enactment.

              The Company has available net operating loss carryforwards of
              approximately $5,800,000, of which no benefit has been recorded,
              at December 31, 2003 which will expire at various times from 2013
              to 2023.

Note 9:       In January 2004, the Company executed a line of credit agreement
              with an individual. This line of credit bears interest at 15% and
              matures in January 2005. The agreement is secured by specific
              accounts receivable of the Company, common stock held by a
              shareholder, and guaranteed by a shareholder.


                                       5
<PAGE>


                         KOLORFUSION INTERNATIONAL, INC.


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

         Revenues increased in the quarter ended September 30, 2003 to $549,558
from $339,772 in 2002, an increase of 62%. The increase is due to the expansion
of business with the Company's prior existing accounts and the implementation of
new business with new accounts.

         Cost of sales increased in the quarter ended September 30, 2003 to
$297,056 from $189,830 in 2002, a 56% increase, which is due to the increased
sales. The Company expects the sales and profit margin to increase as it
acquires new customers and it lowers the cost of processing and materials.
Selling, general and administrative expenses increased in 2003 to $417,114 from
$380,947 in 2002, an increase of 9%.

         The result was a net loss in the quarter ended December 31, 2003 of
$106,515 compared to a net loss of $234,834 in the same quarter in 2002. The net
loss per share was approximately $.005 in 2003, compared to a net loss per share
of approximately $.01 in 2002.


LIQUIDITY AND CAPITAL RESOURCES

         Kolorfusion International, Inc. has historically had more expenses than
income in each year of its operations. The accumulated deficit from inception to
December 31, 2003 was $9,912,888 and current liabilities are in excess of
current assets. The Company has been able to maintain a positive cash position
solely through financing activities. The Company continues to expand its
business with new accounts, and its plans continue to include additional outside
financings or lines of credit. The Company established a first line of credit of
$100,000 in January 2004. Further the Company is considering soliciting
additional outside investment capital of up to $3,000,000 to provide growth
capital; and management believes there is a good likelihood of obtaining a
significant portion of this funding due to the improvement of the financial
condition of the Company and its continued growth.

         There are no known trends, events or uncertainties that are likely to
have a material impact on the short or long term liquidity, except perhaps
declining sales. As mentioned, the primary source of liquidity in the future
will be increased sales and some additional outside investment. In the event
that sales should decline the Company may have to seek additional funds through
equity


                                       6
<PAGE>


sales or debt. Additional equity sales would have a dilutive effect. The debt
financing, if any, would most likely be convertible to common stock, which would
also have a dilutive effect. There can be no assurance that additional capital
will be available on terms acceptable to the Company or on any terms whatsoever.
There are no material commitments for capital expenditures. There are no known
trends, events or uncertainties reasonably expected to have a material impact on
the net sales or revenues or income from continuing operations. There are no
significant elements of income or loss that do not arise from continuing
operations. There are no seasonal aspects to the business of Kolorfusion
International, Inc.


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 Form 10KSB for the year ended June 30, 2003) of
the Notes to the Financial Statements 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. In addition, Financial
Reporting Release No. 61 was recently released by the SEC to require all
companies to include a discussion to address, among other things, liquidity,
off-balance sheet arrangements, contractual obligations and commercial
commitments.

         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. Actual amounts could differ
from these estimates.

         Inventory Valuation

         As noted in Note 1 (of Form 10KSB for the year ended June 30, 2003) of
the Notes to the Financial Statements, inventories consist of raw materials, and
are valued at the lower of cost or market (first-in, first-out method).


                                       7
<PAGE>


         Revenue Recognition

         As noted in Note 1 (of Form 10KSB for the year ended June 30, 2003) to
the Financial Statements, 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 determined.

         Patent Rights

         At noted in Note 1 (of Form 10KSB for the year ended June 30, 2003) to
the Financial Statements, the cost of the patent rights are being amortized
using the straight-line method over nine years. In accordance with SFAS No. 144,
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, 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.


Item 3.  CONTROLS AND PROCEDURES

         Management of the Company has evaluated, with the participation of the
Chief Executive Officer and Chief Financial Officer of the Company, the
effectiveness of the Company's disclosure controls and procedures (as defined in
Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as
amended (the "Exchange Act")) as of the end of the fiscal quarter covered by
this Quarterly Report on Form 10-QSB. Based on that evaluation, the Chief
Executive Officer and Chief Financial Officer of the Company have concluded that
the Company's disclosure controls and procedures as of the end of the fiscal
quarter covered by this Quarterly Report on Form 10-QSB are effective to provide
reasonable assurance that information required to be disclosed by the Company in
the reports that it files or submits under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified in the
rules and forms of the Securities and Exchange Commission. Management of the
Company has also evaluated, with the participation of the Chief Executive
Officer and Chief Financial Officer of the Company, any change in the Company's
internal control over financial reporting (as defined in Rules 13a-15(f) and
15d-15(f) under the Exchange Act) that occurred during the fiscal quarter
covered by this Quarterly Report on Form 10-QSB. There was no change in the
Company's internal control over financial reporting identified in that
evaluation that occurred during the fiscal quarter covered by this Quarterly
Report on Form 10-QSB that has materially affected, or is reasonably likely to
materially affect, the Company's internal control over financial reporting.
However, due to the limited number of Company employees engaged in the
authorization, recording, processing and reporting of transactions, there is
inherently a lack of segregation of duties. The Company periodically assesses
the cost versus benefit of adding the resources that would remedy or mitigate
this situation and currently, does not consider the benefits to outweigh the
costs of adding additional staff in light of the limited number of transactions
related to the Company's operations.


                                       8
<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 believes to be immaterial.

ITEM 2.  CHANGES IN SECURITIES.

         The Company issued 162,000 common shares for 81,000 in the quarter
         ending December 31, 2003.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

(a) Not Applicable.

(b) Not Applicable.


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

         Not Applicable.


ITEM 5.  OTHER INFORMATION.

         Additional information has been provided to the SEC, after December 31,
         2003 in response to a letter received by the Company dated January 8,
         2004 from the SEC related to comments on the Company's Form 10-KSB for
         the year ended June 30, 2003.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

(a) Exhibits.

31.   Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002+

32.   Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002+

(b) Reports on Form 8-K

        We did not file any reports on Form 8-K during the quarter ended
December 31, 2003.


+  Filed herewith.


                                        9
<PAGE>


                                    SIGNATURE



     In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                               KOLORFUSION INTERNATIONAL, INC.



Date February 13, 2004                         By: /s/ Stephen Nagel
                                                  -----------------------------
                                                   Stephen Nagel
                                                   Director, President
























                                       10