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               December 31, 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                         0-28351
                       ---------------------------------------------------------


                         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  _____


      21,818,144          Common Shares were outstanding as of February 15, 2003
-------------------------


<PAGE>








                         KOLORFUSION INTERNATIONAL, INC.

                                    I N D E X


<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----
<S>                                                                                        <C>

 PART I.  FINANCIAL INFORMATION

 Item 1.     Financial Statements (Unaudited)

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

                  Statements of Operations
                     Three and six months ended December 31, 2002 and 2001 (Unaudited)       2

                  Condensed Statements of Cash Flows
                     Six months ended December 31, 2002 and 2001 (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


PART II.  OTHER INFORMATION                                                                6-7


</TABLE>







<PAGE>





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

                         KOLORFUSION INTERNATIONAL, INC.

                            CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                      December 31,           June 30,
             ASSETS                                       2002                 2002
                                                     --------------       --------------
                                                       (Unaudited)           (Audited)
<S>                                                  <C>                  <C>
CURRENT ASSETS:
    Cash and cash equivalents                        $       38,527       $        9,903
    Trade accounts receivable                               448,094              212,273
    Inventories                                             175,093              177,095
                                                     --------------       --------------
             Total current assets                           661,714              399,271

OTHER ASSETS:
    Patents, net                                          1,353,916            1,477,001
    Other                                                     1,270                1,270
                                                     --------------       --------------
                                                          1,355,186            1,478,271

LEASEHOLD IMPROVEMENTS AND EQUIPMENT, net                    55,044               62,702
                                                     --------------       --------------

                                                     $    2,071,944       $    1,940,244
                                                     ==============       ==============

        LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:
    Accounts payable                                 $      202,060       $      407,405
    Notes payable                                           446,000              450,000
    Accrued expenses                                         42,275               33,054
    Accrued expenses due stockholders                       269,500              261,000
    Payable to individual                                 2,246,414            2,246,414
                                                     --------------       --------------
             Total current liabilities                    3,206,249            3,397,873

STOCKHOLDERS' DEFICIT:
    Common stock                                             21,918               21,918
    Additional paid-in capital                            9,220,663            9,220,663
    Accumulated deficit                                 (10,376,886)         (10,700,210)
                                                     --------------       --------------
                                                         (1,134,305)          (1,457,629)
                                                     --------------       --------------

                                                     $    2,071,944       $    1,940,244
                                                     ==============       ==============
</TABLE>


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                  Six Months Ended
                                                                December 31                        December 31
                                                     --------------------------------   --------------------------------
                                                          2002              2001             2002              2001
                                                     --------------    --------------   --------------    --------------

<S>                                                  <C>               <C>              <C>               <C>
Revenues                                             $      339,772    $      466,960   $    1,448,419    $      723,832

Expenses:
    Cost of sales                                           189,830           418,867          427,503           583,015
    Selling, general and administrative                     380,947           276,124          682,696           589,101

    Other income (expense)                                   (3,829)             (897)         (14,896)          (35,699)
                                                     --------------    --------------   ---------------   --------------

             Net income(loss)                        $     (234,834)   $     (228,928)  $      323,324    $     (483,983)
                                                     ==============    ==============   ==============    ==============


Income(loss) per common share                        $         (.01)   $         (.01)  $          .01    $         (.02)
                                                     ==============    ==============    =============    ==============

Income(loss) per common share assuming dilution      $         (.01)   $         (.01)  $          .01    $         (.02)
                                                     ==============    ==============   ==============    ==============

Weighted average outstanding shares                      21,818,144        21,818,144       21,818,144        21,818,144
                                                     ==============    ==============   ==============    ==============

</TABLE>


See Notes to Condensed Financial Statements.





















                                       2
<PAGE>


                         KOLORFUSION INTERNATIONAL, INC.

                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                                Six Months Ended
                                                                                                   December 31
                                                                                             2002              2001
                                                                                        --------------    --------------
<S>                                                                                     <C>               <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income(loss)                                                                    $      323,324    $     (483,983)
    Depreciation and amortization                                                              147,566           148,000
    Loss on disposal of equipment                                                                                 31,350
    Change in:
        Accounts receivable                                                                   (235,821)         (181,908)
        Inventories                                                                              2,002           (57,320)
        Accounts payable                                                                      (205,345)          398,834
        Accrued expenses                                                                         9,221
        Accrued expenses due stock holders                                                       8,500            32,000
                                                                                        --------------      ------------
             Net cash provided by (used in) operating activities                                49,447          (113,027)

CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of leasehold improvements and equipment                                           (16,823)           (2,477)
                                                                                        --------------    --------------
             Net cash used in investing activities                                             (16,823)           (2,477)

CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from payable to stockholder                                                                          25,000
    Checks issued in excess of bank balance                                                                        7,172
    Payments on notes payable                                                                   (4,000)           (2,792)
                                                                                        --------------    --------------
             Net cash provided by (used in) financing activities                                (4,000)           29,380
                                                                                        --------------    --------------

             Net decrease in cash                                                               28,624           (86,124)

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

    End of period                                                                       $       38,527    $          321
                                                                                        ==============    ==============
</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, 2002, the statement
              of operations for the periods ended December 31, 2002 and 2001,
              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
              December 31, 2002 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
              December 31, 2002 are not necessarily indicative of the operating
              results for the full year.


Note 2.       Stockholders' Equity:

              During the six months ended December 31, 2002, stockholders'
              equity changed for a net income of $323,324.





















                                       4
<PAGE>


                         KOLORFUSION INTERNATIONAL, INC.

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



         Revenues decreased in the quarter ended December 31, 2002 to $339,772
from $466,960 in 2001. A part of the lower revenues was the result of the
deferral of some processing accounts in December because the Company moved to
its new larger facility during the months of December and January.

         Cost of sales decreased in the quarter ended December 31, 2002 to
$189,830 from $418,867 in 2001 as the Company adopts more cost efficient
processing procedures and the increasing sales of its printed goods to its
licensee base. The Company expects the profit margin to increase as it acquires
new customers and expands its OEM licensee base. Selling, general and
administrative expenses increased in 2002 to $380,947 from $276,124 in 2001,
largely as a result of increased personnel for sales and processing.

         The result was a net loss in the quarter ended December 31, 2002 of
$234,834 compared to a net loss of $228,928 in the same quarter in 2001. The net
loss per share was $.01 in 2002, compared to $.01 in 2001.

         Revenues increased in the six months ended December 31, 2002 to
$1,448,419 from $723,832 in 2001. The increase is due to increasing acceptance
of the Company's patented process with new customers and licensee contracts.

         Cost of sales decreased in the six months ended December 31, 2002 to
$427,503 from $583,015 in 2001. Selling, general and administrative expenses
increased in 2002 to $682,696 from $589,101 in 2001, largely as a result of new
key personnel.

   The result was a net income in the six months ended December 31, 2002 of
$323,324 compared to a net loss of $483,983 in the same period in 2001. The net
income per share was $.01 in 2002, compared to a net loss of $.02 in 2001.


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.



                                       5
<PAGE>

         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, 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

              (b) No reports on Form 8-K were filed during the six months ended
                  December 31, 2002.




                                    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: February 10, 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, including its consolidated
subsidiaries, 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 effect 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 effect internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.



DATE: FEBRUARY 10, 2003        SIGNED:  /S/  STEPHEN NAGEL
                                        ----------------------------------------
                               NAME:    STEPHEN NAGEL
                               TITLE:   CHIEF EXECUTIVE OFFICER AND
                                        PRINCIPAL FINANCIAL OFFICER









                                       8
<PAGE>


                            CERTIFICATION PURSUANT TO
                 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Stephen Nagel, the Chief Executive Officer and principal financial officer of
Kolorfusion International, Inc. (the "Company") in compliance with 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, hereby certify that, the Company's Quarterly Report on Form 10-QSB for the
period ended December 31, 2002 fully complies with the requirements of Section
13(a) or 15(d) of the Securities Exchange Act of 1934 and fairly presents, in
all material respects, the financial condition and results of operations of the
Company.




DATE: FEBRUARY 10, 2003        SIGNED:  /S/  STEPHEN NAGEL
                                        ----------------------------------------
                               NAME:    STEPHEN NAGEL
                               TITLE:   CHIEF EXECUTIVE OFFICER AND
                                        PRINCIPAL FINANCIAL OFFICER



















                                       9