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                       March 31, 2004
                               ------------------------------------------------

                                       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
     -----                 -----


23,799,544 Common Shares were outstanding as of May 11, 2004
----------


<PAGE>


                         KOLORFUSION INTERNATIONAL, INC.


                                    I N D E X


                                                                            Page
                                                                            ----
PART I.   FINANCIAL INFORMATION

   Item 1.   Financial Statements (Unaudited)

                  Condensed Balance Sheets
                     March 31, 2004 (Unaudited) and
                        June 30, 2003                                        1

                  Condensed Statements of Operations
                     Nine months and three months ended March 31,
                        2004 and 2003 (Unaudited)                            2

                  Condensed Statements of Cash Flows
                     Nine months ended March 31,
                        2004 and 2003 (Unaudited)                            3

                  Selected Notes to Condensed Financial
                     Statements (Unaudited)                                4-6

   Item 2.   Management's Discussion and Analysis of Financial
                Condition and Results of Operations                        6-8

   Item 3.   Controls and Procedures                                         9


PART II.     OTHER INFORMATION

   Item 1.   Legal Proceedings                                              10

   Item 2.   Changes in Securities                                          10

   Item 3.   Defaults Upon Senior Securities                                10

   Item 4.   Submission of Matters to a Vote of Security Holders            10

   Item 5.   Other Information                                              10

   Item 6.   Exhibits and Reports on Form 8-K

             (a) Exhibits                                                   10

             (b) Reports on Form 8-K                                        10


<PAGE>


                         KOLORFUSION INTERNATIONAL, INC.

                            CONDENSED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                          March 31,       June 30,
                                                                            2004             2003
                                                                         ------------    ------------
                         ASSETS                                          (Unaudited)       (Audited)
<S>                                                                      <C>             <C>
CURRENT ASSETS:
    Cash and cash equivalents                                            $      7,591    $     73,772
    Trade accounts receivable, no allowance for
        doubtful accounts considered necessary                                342,471         123,280
    Inventories                                                               246,015         262,803
                                                                         ------------    ------------
             Total current assets                                             596,077         459,855
                                                                         ------------    ------------

OTHER ASSETS:
    Patents, less accumulated amortization
        March $2,646,326; June $2,461,699                                   1,046,204       1,230,831
    Other                                                                     155,270         101,270
                                                                         ------------    ------------
                                                                            1,201,474       1,332,101
                                                                         ------------    ------------

LEASEHOLD IMPROVEMENTS AND EQUIPMENT, NET                                     144,974         149,888
                                                                         ------------    ------------

                                                                         $  1,942,525    $  1,941,844
                                                                         ============    ============

        LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES:
    Accounts payable                                                     $    322,650    $    227,241
    Deferred revenue                                                          176,761         214,261
    Current portion of long-term debt                                         634,836         589,148
    Accrued expenses                                                           30,398          31,267
    Accrued expenses due stockholders                                         412,115         371,000
                                                                         ------------    ------------
             Total current liabilities                                      1,576,760       1,432,917


LONG-TERM DEBT, net of current portion                                        457,047         502,637
DEFERRED REVENUES                                                             411,973         507,041
                                                                         ------------    ------------

             Total liabilities                                              2,445,780       2,442,595

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,
        March 31, 2004 - 23,799,544; June 30, 2003 - 23,226,144 shares
        issued and outstanding                                                 23,800          23,226
    Additional paid-in capital                                             10,059,482       9,773,355
    Accumulated deficit                                                   (10,586,537)    (10,297,332)
                                                                         ------------    ------------
                                                                             (503,255)       (500,751)
                                                                         ------------    ------------

                                                                         $  1,942,525    $  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               Nine Months Ended
                                                        March 31                        March 31
                                              ----------------------------    ----------------------------
                                                  2004            2003           2004             2003
                                              ------------    ------------    ------------    ------------
<S>                                           <C>             <C>             <C>             <C>
Revenues                                      $    640,224    $    613,614    $  1,830,330    $  1,364,850

Expenses:
    Cost of sales                                  331,078         451,205         935,480         878,708
    Selling, general and administrative            395,701         416,357       1,219,581       1,099,053

Other income (expense)                             (16,672)        119,069          35,526         104,173
                                              ------------    ------------    ------------    ------------

             Net loss                         $   (103,227)   $   (134,879)   $   (289,205)   $   (508,738)
                                              ============    ============    ============    ============


Loss per common share - basic
             and diluted                      $         --    $       (.01)   $       (.01)   $       (.02)
                                              ============    ============    ============    ============



Weighted average outstanding shares - basic
             and diluted                        23,593,844      22,110,144      23,394,933      21,078,144
                                              ============    ============    ============    ============
</TABLE>


See Notes to Condensed Financial Statements.


                                       2

<PAGE>


                         KOLORFUSION INTERNATIONAL, INC.

                       CONDENSED STATEMENTS OF CASH FLOWS
                    Nine Months Ended March 31, 2004 and 2003


<TABLE>
<CAPTION>
                                                                                      2004         2003
                                                                                   ---------    ---------
<S>                                                                                <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss                                                                       $(289,205)   $(508,738)
    Adjustments to reconcile net income (loss) to net cash
       provided by (used in) operating activities:
       Depreciation and amortization                                                 207,835      221,349
       Loss on disposal of equipment                                                   1,891           --
       Common stock issued for rent                                                  144,000      144,000
       Increase in trade accounts receivable                                        (219,191)     (61,062)
       Decrease in inventories                                                        16,788          480
       Increase in other assets                                                      (54,000)    (136,000)
       Increase (decrease) in accounts payable                                        95,409     (155,454)
       Increase (decrease) in deferred revenue                                      (132,568)     665,493
       Decrease in accrued expenses                                                     (869)     (10,301)
       Increase in accrued expenses due stockholders                                  41,115       14,500
                                                                                   ---------    ---------
        Net cash provided by (used in) operating activities                         (188,795)     174,267
                                                                                   ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
       Purchases of leasehold improvements and equipment                             (20,185)    (124,347)
                                                                                   ---------    ---------


CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from long-term debt                                                      96,000      136,436
    Payments on long-term debt                                                       (95,902)    (104,397)
    Net proceeds from issuance of common shares                                      142,701           --
                                                                                   ---------    ---------
        Net cash provided by financing activities                                    142,799       32,039
                                                                                   ---------    ---------

        Increase (decrease) in cash and cash equivalents                             (66,181)      81,959

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

    Ending                                                                         $   7,591    $  91,862
                                                                                   =========    =========

SUPPLEMENTAL DISCLOSURES  OF CASH FLOW INFORMATION:
    Cash payments for interest                                                     $  31,873    $  13,359
                                                                                   =========    =========

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING
ACTIVITIES:

Common stock issued for rent                                                       $ 144,000    $ 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, 2004, the statements
              of operations for the periods ended March 31, 2004 and 2003, and
              the condensed statements of cash flows for the nine-month periods
              then ended have been prepared by the Company, without audit.
              Operating results for the periods ended March 31, 2004 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 March 31, 2004 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.

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 March 31, 2004 and 2003 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 March 31, 2004
              and 2003 and $184,627 for each of the nine months ended March 31,
              2004 and 2003. Patent amortization expense will be $246,170 for
              each of the next four years and $61,524 for the fifth year.

Note 4.       Stockholders' Deficit:

              During the nine months ended March 31, 2004, stockholders' deficit
              changed for a net loss of $289,205 and for issuance of 285,400
              shares of common stock for $142,701. In addition, the Company
              issued 288,000 shares of common stock that relates to the
              Company's lease agreement signed in February 2003. In lieu of
              paying real estate taxes and other real estate expenses, the
              Company issues 288,000 shares of common stock in February in each
              of the first three years of the agreement.


                                       4

<PAGE>


                         KOLORFUSION INTERNATIONAL, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)


Note 5:       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. However, 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. The Company plans on expanding its business with new
              accounts in many categories, including outdoor product
              manufacturers, household and building products. Management feels
              that existing customers will continue to expand the use of the
              Company's process. There can be no assurance the Company will be
              able to obtain capital on acceptable terms.

              In order to ensure that the Company has sufficient cash flow to
              meet the funding requirements for the next twelve months, the
              Company plans to obtain additional outside financing or lines of
              credit. The Company is considering soliciting additional outside
              investment capital of up to $3,000,000 to provide growth capital.
              Management intends to obtain additional debt or equity capital to
              meet all of its existing cash obligations and fund commitments on
              planned projects; however, there can be no assurance that the
              sources will be available or available on terms favorable to the
              Company.


Note 6:       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 carryforwards 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 $6,500,000, of which no benefit has been recorded,
              as of March 31, 2004 which will expire at various times from 2013
              to 2023.


Note 7:       Deferred Revenue

              The Company records sales when products are shipped,
              collectibility is probable, and the fee is fixed or determinable.
              License and royalty revenue is recognized upon completion of the
              earnings process. All revenue invoiced in excess of revenue
              recognized is recorded as deferred revenue. Deferred revenue at
              March 31, 2004 and June 30, 2003 was $588,734 and $721,302, of
              which the majority relates to the license and royalty agreement
              signed with a third party in August 2002.

Note 8:       Related Party Transaction

              During the three months ended March 31, 2004, the Company borrowed
              $50,000 from a shareholder of the Company. Interest on this note
              accrues at 12% and is payable monthly. The principal amount of the
              note is due on January 1, 2005.

Note 9:       Major Customers:

              During the three month period and nine month period ended March
              31, 2004, two unaffiliated customers accounted for the following
              percentages of revenues:

                                            March 31, 2004
                           --------------------------------------------------
              Customer        Three months ended            Nine months ended
              A                    17.5%                          22.4%
              B                    50.0%                          39.1%

              In addition, the accounts receivable balance due from customers A
              and B accounted for 11.5% and 53.4% of total accounts receivable
              at March 31, 2004.


                                       5


<PAGE>


Note 10:      Reclassification

              Certain amounts in the prior period financial statements have been
              classified for comparative purposes to conform with the
              presentation in the current period financial statements. These
              reclassifications had no effect on net loss or stockholders'
              equity.


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

         Revenues increased in the quarter ended March 31, 2004 to $640,224 from
$613,614 in 2003. The increase is due to increasing acceptance of the Company's
patented process and new customers.

         Cost of sales decreased in the quarter ended March 31, 2004 to $331,078
from $451,205 in 2003. The Company expects the profit margin to increase as it
acquires new customers. Selling, general and administrative expenses decreased
in 2004 to $395,701 from $416,357 in 2003.

         The result was a net loss in the quarter ended March 31, 2004 of
$103,227 compared to a net loss of $134,879 in the same quarter in 2003. The net
loss per share was $.00 in 2004, compared to $.01 in 2003.

         Revenues increased in the nine months ended March 31, 2004 to
$1,830,330 from $1,364,850 in 2003. The increase is due to increasing acceptance
of the Company's patented process and new customers and amortization of deferred
revenue of $132,568 for the nine months ended March 31, 2004.

         Cost of sales increased in the nine months ended March 31, 2004 to
$935,480 from $878,708 in 2003. The Company expects the profit margin to
increase as it acquires new customers. Selling, general and administrative
expenses increased in 2004 to $1,219,581 from $1,099,053 in 2003

         The result was a net loss in the nine months ended March 31, 2004 of
$289,205 compared to a net loss of $508,738 in the same period in 2003. The net
loss per share was $.01 in 2004, compared to a net loss $.02 in 2003.


                                       6


<PAGE>


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
March 31, 2004 was $10,586,537 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 line of credit of $100,000 in January
2004. This line of credit bears interest at 15% and matures in January 2005. The
line of credit is secured by specific accounts receivable of the Company, common
stock held by a shareholder, and guaranteed by a shareholder. Outstanding
borrowings on the line were $46,000 as of March 31, 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 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


                                       7

<PAGE>


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). We
regularly review inventory quantities on hand and record a provision for excess
and obsolete inventory.

         Revenue Recognition and Deferred Revenue

         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. The
Company ensures that the transaction complies with the seven conditions and six
considerations contained in Accounting and Auditing Release No. 108 of the
Securities Exchange Commission (SEC) and SEC Staff Accounting Bulletin (SAB)
101, as amended by SAB 104. All revenue invoiced in excess of revenue recognized
is recorded as deferred revenue.

         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.


                                      8


<PAGE>


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.


                                       9

<PAGE>


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


ITEM 1.  LEGAL PROCEDEEINGS.

   Not applicable.

ITEM 2.  CHANGES IN SECURITIES.

(a) Not Applicable.

(b) Not Applicable.

(c) The Company issued 285,400 unregistered shares of common stock to various
accredited investors for $142,701. In addition, the Company issued 288,000 of
unregistered shares of common stock to an accredited investor that relates to
the Company's lease agreement signed in February 2003.

(d) Not Applicable.

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.

   Per the SEC's request in January 2004, the Company amended the following
   filings:
         o  June 30 2003 10-KSB
         o  September 30, 2003 10-QSB
         o  December 31, 2003 10-QSB

The restatement relates to a license and royalty agreement signed with a third
party in August 2002. The Company had previously recognized the entire $750,000
fee related to this agreement into revenue in the three months ended September
30, 2002. The Company restated its financial statements to recognize revenue
ratably over the maximum term (August 2002 through June 2008) of the exclusivity
agreement.

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 March
31, 2004.

+     Filed herewith.


                                       10

<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 May 14, 2004                      By: /s/ Stephen Nagel
                                          --------------------------------------
                                          Stephen Nagel
                                          Director, President


                                       11