UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

      [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
                             EXCHANGE ACT OF 1934

                                      OR

      [ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES
                             EXCHANGE ACT OF 1934


                For the Fiscal Quarter Ended: September 30, 2002
                         Commission File Number 0-24913


                   International BioChemical Industries, Inc.
           -----------------------------------------------------------
           (Name of small business issuer as specified in its charter)


                                     Georgia
                                   58-2181628
                        ---------------------------------
                        (State or other jurisdiction (IRS
                          Employer Identification No.)
                        of incorporation or organization)


                            4405 International Blvd.
                                   Suite B-109
                             Norcross, Georgia 30093
                    ----------------------------------------
                    (Address of principal executive offices)

                                 (770) 925-3653
                 ----------------------------------------------
                 Issuer's telephone number, including area code:

                          BioShield Technologies, Inc.
     ----------------------------------------------------------------------
     (Former name, former address, and former fiscal year, if changed since
                                  last report)


      Check  whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
                                     ---       ---

      State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: 79,902,292 shares, as of
October 23, 2002.

<PAGE>
                   INTERNATIONAL BIOCHEMICAL INDUSTRIES, INC.
                                   FORM 10-QSB
                    QUARTERLY PERIOD ENDED SEPTEMBER 30, 2002
                                      INDEX

                                                                            PAGE
                                                                            ----
PART I FINANCIAL INFORMATION

   Item 1. Financial Statements

      Balance Sheet
         As of September 30, 2002 (unaudited) ...............................  3

      Statements of Operations for the Three
         Months ended September 30, 2002 and 2001 (unaudited) ...............  4

      Statements of Cash Flows for the Three Months
         ended September 30, 2002 and 2001 (unaudited) ......................  5

      Notes to Financial Statements ........................................ 6-8

   Item 2.  Management's Discussion and Analysis or Plan of Operation ..... 9-10

   Item 3.  Control and Procedures .......................................... 11


PART II - OTHER INFORMATION

   Item 1. Legal Proceedings ............................................. 11-12

   Item 2. Changes in Securities and Use of Proceeds ........................ 12

   Item 3. Defaults upon Senior Securities .................................. 13

   Item 4. Submission of Matters to a Vote of Security Holders .............. 13

   Item 5. Other Information ................................................ 13

   Item 6. Exhibits and Reports on Form 8-K ................................. 13

SIGNATURES .................................................................. 13

CERTIFICATIONS .............................................................. 14

                                      2
<PAGE>
                   INTERNATIONAL BIOCHEMICAL INDUSTRIES, INC.
                     (Formerly BioShield Technologies, Inc.)
                                  BALANCE SHEET
                               September 30, 2002
                                   (Unaudited)


 ASSETS

CURRENT ASSETS:
    Cash ........................................................  $     14,541
    Accounts receivable .........................................        32,250
    Inventories .................................................        31,965
    Other current assets ........................................       135,988
                                                                   ------------

       TOTAL CURRENT ASSETS .....................................       214,744

PROPERTY AND EQUIPMENT, net .....................................       172,054
                                                                   ------------


       TOTAL ASSETS .............................................  $    386,798
                                                                   ============


                  LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:
    Notes payable - related party ...............................  $  1,545,016
    Accounts payable ............................................     1,372,055
    Accrued expenses ............................................     1,876,816
                                                                   ------------

       TOTAL CURRENT LIABILITIES ................................     4,793,887
                                                                   ------------

STOCKHOLDERS' DEFICIT:
    Preferred stock, no par value. 10,000,000 shares authorized,
       no shares issued and outstanding .........................             -
    Convertible preferred stock - Series B, no par value;
       500 shares authorized; 397 shares issued and outstanding
       total liquidation of outstanding - $7,940,000 ............     7,931,840
    Convertible preferred stock - Series C, no par value;
       500 shares authorized; 205 shares issued and outstanding
       total liquidation of outstanding - $4,100,000 ............     4,100,460
    Common stock, no par value; 100,000,000 shares authorized;
       74,671,811 issued  and outstanding .......................    38,381,179
    Additional paid-in capital ..................................     6,306,066
    Accumulated deficit .........................................   (59,800,738)
    Less 35,000 shares of common stock in treasury - at cost ....      (536,900)
    Deferred compensation .......................................      (788,996)
                                                                   ------------

       TOTAL STOCKHOLDERS' DEFICIT ..............................    (4,407,089)
                                                                   ------------

       TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT ..............  $    386,798
                                                                   ============

                       See notes to financial statements.

                                      -3-
<PAGE>
                   INTERNATIONAL BIOCHEMICAL INDUSTRIES, INC.
                     (Formerly BioShield Technologies, Inc.)
                            STATEMENTS OF OPERATIONS

                                                       Three Months Ended
                                                         September 30,
                                                  -----------------------------
                                                      2002             2001
                                                  ------------     ------------
                                                   (Unaudited)      (Unaudited)

NET REVENUES .................................    $    103,286     $    875,340

COST OF SALES ................................          13,701          257,033
                                                  ------------     ------------

GROSS PROFIT .................................          89,585          618,307
                                                  ------------     ------------

OPERATING COSTS AND EXPENSES:
     Marketing and selling ...................          34,124          117,754
     Consulting fees .........................         303,900          653,257
     Compensation expense ....................         400,169          217,745
     Professional fees .......................          42,003          159,429
     Other general and administrative ........          59,179          146,775
                                                  ------------     ------------

                                                       839,375        1,294,960
                                                  ------------     ------------

LOSS FROM OPERATIONS .........................        (749,790)        (676,653)

OTHER EXPENSES:
     Loss on legal settlements ...............         (92,000)               -
     Interest expense ........................         (38,002)        (342,598)
                                                  ------------     ------------

        Total other expenses .................        (130,002)        (342,598)
                                                  ------------     ------------

LOSS BEFORE DISCONTINUED OPERATIONS ..........        (879,792)      (1,019,251)

DISCONTINUED OPERATIONS:
     Loss from discontinued operations .......               -         (214,701)
                                                  ------------     ------------

NET LOSS .....................................        (879,792)      (1,233,952)

PREFERRED STOCK STOCK DIVIDENDS ..............        (150,404)        (176,250)
                                                  ------------     ------------

NET LOSS APPLICABLE TO COMMON STOCKHOLDERS ...    $ (1,030,196)    $ (1,410,202)
                                                  ============     ============

NET LOSS PER COMMON SHARE - basic and diluted
     Continuing operations ...................    $      (0.01)    $      (0.05)
     Discontinued operations .................               -            (0.01)
                                                  ------------     ------------
     Net loss to common stockholders .........    $      (0.01)    $      (0.06)
                                                  ============     ============

NUMBER OF SHARES USED IN CALCULATING BASIC
     AND DILUTED NET LOSS PER SHARE ..........      70,488,669       25,290,081
                                                  ============     ============

                       See notes to financial statements.

                                      -4-
<PAGE>
<TABLE>
<CAPTION>
                           INTERNATIONAL BIOCHEMICAL INDUSTRIES, INC.
                             (Formerly BioShield Technologies, Inc.)
                                    STATEMENTS OF CASH FLOWS

                                                                       Three Months Ended
                                                                          September 30,
                                                                  ----------------------------
                                                                      2002            2001
                                                                  ------------     -----------
                                                                   (Unaudited)     (Unaudited)
<S>                                                                <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net loss .................................................    $  (879,792)    $(1,233,952)
     Adjustments to reconcile net loss to net cash
        used in operating activities:
            Minority interest in loss of subsidiary ...........              -            (740)
            Depreciation and amortization .....................         20,633          25,721
            Issuance of stock, stock options and stock warrants
               for services rendered ..........................        440,245         628,700
            Deferred financing costs and interest .............              -         330,615
            Amortization of deferred compensation .............        201,944               -

     Changes in assets and liabilities:
        (Increase) decrease in:
            Accounts receivable ...............................        136,584        (704,913)
            Inventories .......................................          8,035               -
            Other current assets ..............................         (2,794)         (5,499)
            Other assets ......................................              -         (25,779)
        Increase (decrease) in:
            Accounts payable ..................................        331,441         135,436
            Accrued expenses ..................................       (281,649)        148,145
            Other liability ...................................              -         (25,000)
                                                                   -----------     -----------

NET CASH USED IN OPERATING ACTIVITIES .........................        (25,353)       (727,266)
                                                                   -----------     -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from debt .......................................              -         379,279
                                                                   -----------     -----------

NET CASH PROVIDED BY FINANCING ACTIVITIES .....................              -         379,279
                                                                   -----------     -----------

NET DECREASE IN CASH ..........................................        (25,353)       (347,987)

CASH - BEGINNING OF PERIOD ....................................         39,894         384,605
                                                                   -----------     -----------

CASH - END OF PERIOD ..........................................    $    14,541     $    36,618
                                                                   ===========     ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

     Cash paid during the period for interest and taxes .......    $         -     $         -
                                                                   ===========     ===========

                               See notes to financial statements.

                                               -5-
</TABLE>
<PAGE>
                   International BioChemical Industries, Inc.
                          Notes to Financial Statements


NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and pursuant to the rules and regulations of the U.S.
Securities and Exchange Commission ("SEC").  The accompanying financial
statements for the interim periods are unaudited and reflect all adjustments
(consisting only of normal recurring adjustments) which are, in the opinion
of management, necessary for a fair presentation of the financial position
and operating results for the periods presented. These financial statements
should be read in conjunction with the consolidated financial statements for
the year ended June 30, 2002 and notes thereto contained in the Report on
Form 10-KSB of International BioChemical Industries, Inc., formerly BioShield
Technologies, Inc. (the "Company") as filed with the SEC.  The results of
operations for the three months ended September 30, 2002 are not necessarily
indicative of the results for the full fiscal year ending June 30, 2003.

Through November 2001, the Company owned 52% of Healthcare Network Solutions,
Inc ("HNS").  During December 2001, 3,646,579 of HNS shares owned by the
Company (approximating  24.6% of all currently issued and outstanding  shares
of HNS) were  spun-off  to  the Company's shareholders  on a one for ten
basis with the Company retaining 4,453,421 shares (approximately 28.7% of all
then issued and outstanding shares of HNS)(See note 2).

For the three months ended September 30, 2001, the statements include the
accounts of the Company and its majority-owned subsidiary.  All significant
inter-company balances and transactions have been eliminated.

NOTE 2 - INVESTMENT IN EQUITY-METHOD INVESTEE

The Company holds an investment accounted for under the equity method. The
Company accounts for an investment under the equity method if the investment
gives the Company the ability to exercise significant influence, but not
control, over an investee. Significant influence is generally deemed to exist
if the Company has an ownership interest in the voting stock of the investee
of between 20% and 50%, although other factors, such as representation on the
investee's Board of Directors and the impact of commercial arrangements, are
considered in determining whether the equity method of accounting is
appropriate. As of September 30, 2002, the Company owned 4,453,421 shares of
common stock of Healthcare Network Solutions, Inc., which was received for
various management and other services provided to HNS at the inception of
that company. These shares are restricted under Rule 144 of the Securities
and Exchange Commission.

HNS is in the business of providing consolidated non-medical services to
physicians, particularly those physicians in small (five and under)practice
groups.  These services include, billing and scheduling, supply ordering,
personnel staffing, marketing and dispensing.  Also, consulting services are
offered to healthcare companies that include developing business strategies,
alliance and partnering programs, research projects and functional product
assessments.  HNS is a public company traded under the symbol HNWS.  As of
September 30, 2002, HNS had minimal revenues and has incurred losses since
its inception. Through October 1, 2002, Tim Moses, who is an officer and
director of the Company, was also a director of HNS and owns approximately
9.9% of the common shares of HNS.  Effective November 1, 2002, Mr. Moses
resigned from the board of HNS.

NOTE 3 - NOTES PAYABLE

(a) On June 19, 2001, the Company borrowed $500,000 from Jackson LLC. The
loan bears interest at 8% per annum and is payable on demand.

(b) The Company borrowed funds from a shareholder under a revolving line of
credit.  The line of credit aggregates $1,000,000 and bears interest at a
rate equal to two and one-half (2.5%) per month, on a basis of a 360-day year
and actual number of days elapsed.  To the extent that there are amounts due
under the line of credit (including unpaid principal and interest), the
Company shall pay to the lender an amount equal to 100% of the Company's
collected receivables, on a monthly basis.  The line of credit is payable on
demand and is collateralized by substantially all of the Company's assets.
As of September 30, 2002, the Company borrowed $1,000,016 under this line of
credit and is currently in default.

(c) On June 19, 2001, the Company borrowed $45,000 from two individuals.
These loans are non-interest bearing and are payable on demand.

                                      6
<PAGE>
                   International BioChemical Industries, Inc.
                          Notes to Financial Statements


NOTE 4 - STOCKHOLDERS' DEFICIT

Common Stock

During July 2002, the Company issued 531,974 shares of common stock to an
attorney for debt of $55,857.  The Company valued these common shares at the
fair market value on the date of issuance.

For the three months ended September 30, 2002, the Company issued 3,650,240
shares of common stock to a consultant for services rendered.  In connection
with this issuance, the Company recorded consulting fees of $300,245 based on
the fair market value of the shares issued.

In September 2002, the Company issued 500,000 shares of common stock to an
employee as compensation.  In connection with this issuance, the Company
recorded non-cash compensation expense of $24,000 based on the fair market
value of the shares issued.

In September 2002, in connection with the exercise of stock options, the
Company issued 2,000,000 shares of common stock to an officer of the Company
for services rendered and for debt.  Since the Company did not receive any
cash for the exercise of these options, the Company recorded non-cash
compensation of $78,646, and reduced amounts due to this officer of $21,354
based on the exercise price of the underlying stock option granted.

Stock Options and Warrants

On September 12. 2002, we filed a Form S-8 Registration Statement to register
7,000,000 shares of the Company's common stock under the 2002 Stock Option
Plan.  In all other respects the Plan and Prospectus are substantially
identical to those previously filed on December 28, 2001.

In September 2002, the Company granted 2,000,000 stock options to an officer
of the Company for services rendered and for debt. The options had exercise
price of $.05 per share and expire ten years from date of grant.  In
connection with these options, the Company recorded non-cash compensation of
$16,000 for the three months ended September 30, 2002 under the intrinsic
value method of APB 25. These stock options were exercised as noted above.

NOTE 5 - SUBSEQUENT EVENTS

In October 2002, the Company granted and immediately exercised stock options
for 1,000,000 shares of common stock to an officer of the Company for
services rendered and for debt. The options had exercise price of $.05 per
share and expire ten years from date of grant.

In October 2002, the Company granted and immediately exercised stock options
for 1,200,000 shares of common stock to a consultant and an attorney for
services rendered.  The options had exercise price of $.05 per share and
expire ten years from date of grant.

NOTE 6 - RECENT PRONOUNCEMENTS

The Financial Accounting Standards Board has recently issued several new
accounting pronouncements:

In October 2001, the Financial Accounting Standards Board (FASB) issued SFAS
No. 44,  Accounting  for the  Impairment  or Disposal of  Long-Lived  Assets
which supersedes SFAS No. 121,  Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to Be Disposed Of and APB No. 30, Reporting
the Results of Operations-Reporting  the Effects of  Disposal  of a Segment
of a Business,  and Extraordinary,  Unusual and Infrequently Occurring Events
and Transactions. SFAS No. 144 also amends Accounting Research Bulletin No.
51, Consolidated Financial Statements. SFAS No. 144 requires that long-lived
assets that are to be disposed of by sale be measured at the lower of book
value or fair value less cost to sell. The statement also significantly
changes the criteria required to classify an asset as held-for-sale.
Additionally, SFAS No. 144  expands  the scope of discontinued operations to
include all components of an entity with  operations that  (1) can be
distinguished  from  the  rest of the entity  and (2) will be eliminated from
the ongoing operations of the entity in a disposal  transaction.  The Company
adopted SFAS No. 144 in its fiscal year ended June 30, 2002, which has had no
impact on the financial statements through the three months ended September
30, 2002.

                                      7
<PAGE>
                   International BioChemical Industries, Inc.
                          Notes to Financial Statements


NOTE 6 - RECENT PRONOUNCEMENTS (Continued)

In November 2001, the FASB EITF reached a consensus to issue a FASB Staff
Announcement Topic No. D-103 (re-characterized in January 2002 as EITF Issue
No. 01-14), "Income Statement Characterization of Reimbursement Received for
`Out-of-Pocket' Expenses Incurred" which clarifies that reimbursements
received for out-of-pocket expenses incurred should be characterized as
revenue in the statement of operations.  This consensus should be applied in
financial reporting periods beginning after December 15, 2001.  Upon
application of this consensus, comparative financial statements for prior
periods should be reclassified to comply with the guidance in this
consensus.  The adoption of this consensus did not have a material effect on
our consolidated financial position or results of operations.

In June 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated
with Exit or Disposal Activities, which addresses accounting for
restructuring and similar costs.  SFAS No. 146 supersedes   previous
accounting guidance, principally Emerging Issues Task Force Issue No. 94-3.
The Company will adopt the provisions of SFAS 146 for restructuring
activities initiated after December 31, 2002.  SFAS No. 146 requires that the
liability for costs associated with an exit or disposal activity be
recognized when the liability is incurred. Under Issue 94-3, a liability for
an exit cost was recognized at the date of the Company's commitment to an
exit plan.  SFAS No. 146 also establishes that the liability should initially
be measured and recorded at fair value.  Accordingly, SFAS No. 146 may affect
the timing of recognizing future restructuring costs as well as the amounts
recognized.


NOTE 7 - GOING CONCERN

The accompanying financial statements have been prepared assuming the Company
will continue as a going concern. The Company has experienced significant
losses since its inception of $59,800,738, has a working capital deficit of
$4,649,223, and there is substantial doubt that it will be able to continue
as going concern without additional funding.  Management intends to continue
to seek additional financing to fund its operations, although there can be no
assurances that any such financing will be available. The financial
statements do not include any adjustments that might be necessary should the
Company be unable to continue as a going concern.

                                      8
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

OVERVIEW

         International BioChemical Industries, Inc., formerly BioShield
Technologies, Inc. (the "Company") is a Georgia corporation and was organized in
1995. The Company historically has engaged in research and development, patent
filings, regulatory issues and related activities geared towards the sale of its
retail, industrial and institutional products. We are currently selling
antimicrobial products via licensing and distribution contracts. Many of these
products provide long-term killing action of microorganisms responsible for
cross contamination and viral contamination, along with inhibiting and
controlling the growth of over 100 viral, bacteria, fungi and yeast organisms.
The Company has continued to successfully build recognition and market
penetration of its recently approved E.P.A. antimicrobial product line.

         We are currently engaged in sale, distribution, and development of
antimicrobial, biostatic, and medical related products for the industrial and
institutional, and Specialty Chemical markets.

FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

Three Months Ended September 30, 2002 compared to three months ended
September 30, 2001

         The Company's revenue decreased to $103,286 for the three months ended
September 30, 2002, from $875,340 the three months ended September 30, 2001, a
decrease of 88%. The decrease was attributable to a substantial decrease in
sales to our customer located in the Peoples Republic of China. Gross profit of
$89,585 for the three months ended September 30, 2002 represents 87% of net
sales as compared to $618,307 or 71% of net sales for the three months ended
September 30, 2001. The increase in gross margin is due to a restructuring of
the way in which we sell our products, changing to a licensing and distribution
model and selling to large multi-national corporations.

         Marketing and selling expenses decreased to $34,124 for the three
months ended September 30, 2002 from $117,754 for the three months ended
September 30, 2001.  The decrease was attributable to a change in the way in
which we sell our products, changing to a licensing and distribution model.
Currently, we are not selling our product directly to retail establishments
and are selling the product through distributors.

         Consulting fees were $303,900 for the three months ended September 30,
2002 as compared to $653,257 for the three months ended September 30, 2001, a
decrease of $349,357 or 53%. Substantially all consulting expense related to
consulting fees recorded from the grant and immediate exercise of stock options
as well as the issuance of common shares.

         Compensation expense increased to $400,169 for the three months ended
September 30, 2002 from $217,745 for the three months ended September 30, 2001,
an increase of $182,424 or 84%. The increase was attributable to an increase in
non-cash compensation expense of $244,147 related to the issuance of stock and
stock options to employees and the amortization of deferred compensation offset
by a decrease in salary expense of $61,723 due to a substantial decrease in
staff attributable to our cost cutting measures.

         Professional fees were $42,003 for the three months ended September 30,
2002 as compared to $159,429 for the three months ended September 30, 2001, a
decrease of $117,426 or (74%). The decrease was attributable to cost-cutting
measures.

         Other general and administrative expenses were $59,179 for the three
months ended September 30, 2002 as compared to $146,775 for the three months
ended September 30, 2001, a decrease of $87,596 or (60%). This decrease was
related to expenses such as telephone, rent, and office expenses decreasing due
to our cost-cutting measures.

         Interest expense was $38,002 for the three months ended September 30,
2002 as compared to $342,598 for the three months ended September 30, 2001.
Interest expense during the three months ended September 30, 2001 was primarily
attributable to the amortization of beneficial interest associated with a loan
as well as additional interest costs associated with our borrowings.

         For the three months ended September 30, 2002 we recorded settlement
expense of $92,000 in connection with certain legal obligations and settlements.

         For the three months ended September 30, 2001, we recorded a loss from
discontinued operations of $214,701 related to our investment in HNS.

         As a result of the reasons set forth above, the Company's operations
generated a net loss applicable to common shareholders of $1,030,196 or $(.01)
per common share for the three months ended September 30, 2002 compared to a net
loss of $(1,410,202) or $(.06) per common share for the three months ended
September 30, 2001.

                                      9
<PAGE>

LIQUIDITY

         At September 30, 2002, we had cash totaling $14,541 compared to $39,894
at June 30, 2002. The decrease in cash of $25,353 is primarily due to net losses
of $879,792 and decreases in accrued expenses of $281,649 offset by a decrease
in accounts receivable of $136,584, increases in our accounts payable balance of
$447,006, non-cash compensation of $642,189 and depreciation and amortization of
$20,633.

         The Company entered into a credit agreement to borrow up to $1,000,000
under a line of credit, which it has currently used. In addition, in 2001, the
Company entered into a $2,000,000 purchase order line of credit with Aero
Financial, Inc. To date, the Company has not elected to use this source of
additional financing, however, in the future; the Company may elect to use this
credit facility as necessary to facilitate the continued operations of the
Company. We cannot assure you that we will be able to obtain additional capital
from this or other investors. Our inability to successfully renegotiate these
agreements could cause the company to dramatically curtail or cease operations.

         The Company's ability to fund its operating requirements and maintain
an adequate level of working capital until it achieves positive cash flow will
depend primarily on its ability to borrow money against its accounts receivable.
The Company's failure to generate substantial growth in sales and/or of its
antimicrobial products; progress in research and development programs; the cost
and timing of seeking regulatory approvals of the Company's products under
development; the Company's ability to manufacture products at an economically
feasible cost; cost in filing, prosecuting, defending and enforcing patent
claims and other intellectual property rights and changes in economic,
regulatory, or competitive conditions or the Company's planned business could
cause the Company to require additional capital, and substantially delay or
reduce the scope of business. In the event the Company must raise additional
capital to fund its working capital needs, it may seek to raise such capital
through loans or issuance of debt securities, issuance of equity securities, or
through private placements. Moreover, there can be no assurance that the Company
will be successful in its efforts to obtain additional capital, and that capital
will be available on terms acceptable to the Company or on terms that will not
significantly dilute the interests of existing shareholders.

         We currently have no material commitments for capital expenditures.

FORWARD-LOOKING STATEMENTS

         When used in this form 10-KSB, the words or phrases "will likely
result", "are expected to," "will continue," "is anticipated," "estimate,"
"project," or similar expressions are intended to identify "forward looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. Such statements are subject to certain risks and uncertainties
including changes in economic conditions in the Company's market area,
changes in policies by regulatory agencies, fluctuations in interest rates,
demand for loans in the Company's market area and competition, that could
cause actual results to differ materially from historical earnings and those
presently anticipated or projected. The Company wishes to caution readers not
to place undue reliance on any such Forward- looking statements, which speak
only as to the date made. The Company wishes to advise readers that the
factors listed above could affect the Company's financial performance and
could cause the Company's actual results for future periods to differ
materially from any opinions or statements expressed with respect to future
periods in any current statements. The Company does not undertake, and
specifically disclaims any obligation, to publicly release the result of any
revisions which may be made to any forward-looking statements to reflect
events or circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events.

CRITICAL ACCOUNTING POLICIES

         A summary of significant accounting policies is included in Note 1 to
the audited financial statements included in our Annual Report on Form 10-KSB
for the year ended June 30, 2002 as filed with the United States Securities and
Exchange Commission. We believe that the application of these policies on a
consistent basis enables us to provide useful and reliable financial information
about our operating results and financial condition.

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


         We account for stock transactions in accordance with APB Opinion No.
25, "Accounting for Stock Issued to Employees." In accordance with Statement of
Financial Accounting Standards No. 123 ("SFAS 123"), "Accounting for Stock-Based
Compensation," we adopted the pro forma disclosure requirements of SFAS 123.

                                      10
<PAGE>

ITEM 3. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

         Our management, under the supervision and with the participation of our
chief executive officer and chief accounting officer, conducted an evaluation of
our "disclosure controls and procedures" (as defined in the Securities Exchange
Act of 1934 (the "Exchange Act") Rules 13a-14(c)) within 90 days of the filing
date of this Quarterly Report on Form 10-QSB (the "Evaluation Date"). Based on
their evaluation, our chief executive officer and chief accounting officer have
concluded that as of the Evaluation Date, our disclosure controls and procedures
are effective to ensure that all material information required to be filed in
this Quarterly Report on Form 10-QSB has been made known to them in a timely
fashion.

Changes in Internal Controls

         There have been no significant changes (including corrective actions
with regard to significant deficiencies or material weaknesses) in our internal
controls or in other factors that could significantly affect these controls
subsequent to the Evaluation Date set forth above.


                                     PART II

                                OTHER INFORMATION

Items 1. Legal Proceedings

         On September 7, 2000, AHT Corporation ("AHT") filed suit against the
Company and certain of its officers and directors in the Superior Court of
Fulton County, Georgia (the "Georgia Action") alleging breach of a June 30, 2000
acquisition agreement and related common laws claims and seeking damages in
excess of $70,000,000. On September 21, 2000, the Company filed its Answer and
Counterclaim. On September 22, 2000, AHT filed, in the U.S. Bankruptcy Court for
the Southern District of New York, a petition for relief under Chapter 11 of the
Federal Bankruptcy Code. Following the filing of its Chapter 11 petition, AHT
filed a motion seeking approval of an asset purchase agreement dated as of
September 22, 2000 (the "APA"), which provided, for the sale of substantially
all of AHT's assets to the Company and AHT Acquisition Corp. for approximately
$15,000,000. Pursuant to a Debtor in Possession ('DIP") Financing, Escrow and
Settlement Agreement dated as of September 22, 2000, which was approved by the
Bankruptcy Court, the Company agreed to provide approximately $1.5 million in
postpetition financing to AHT. That agreement also provided for the dismissal of
the Georgia Action with prejudice, subject to certain conditions contained
therein. At September 30, 2000, AHT had requested and received $378,338 from the
Company under the DIP financing arrangement. Subsequent to September 30, 2000,
AHT had requested and received an additional $1,121,662 under the DIP financing
agreement.

         The Bankruptcy Court had initially scheduled a hearing to approve the
APA for November 8, 2000. However, due to the decline in the Company's stock
price, in early November, the Company notified AHT that it would need additional
time beyond November 8, 2000 to obtain sufficient capital to acquire AHT's
assets. The Bankruptcy Court did not approve the APA on November 8, 2000.
Rather, on November 21, 2000, the Bankruptcy Court approved the sale of
substantially all of AHT's assets to Cybear, Inc.

         On November 28, 2000, AHT Acquisition Corp. commenced a new lawsuit (in
its Bankruptcy case) against the Company, as well as the other defendants in the
Georgia Action. The prepetition claims asserted and relief sought in that action
are essentially the same as the claims and relief sought in the Georgia Action.
The lawsuit in the bankruptcy case also alleges breach of the APA and seeks
damages related to the APA, and to equitably subordinate the Company's $1.5
million claim against AHT relating to the postpetition advances made by the
Company to AHT under the DIP Financing, Escrow and Settlement Agreement. On
February 9, 2001, the Company filed an answer and counterclaim and intends to
vigorously defend the action. Motions to dismiss the action and/or abstain from
hearing the action have been denied and the parties were engaged in discovery
proceedings under Bankruptcy Order. In April 2002, the Company files a judgment
motion to dismiss this case and is currently awaiting a response.

                                      11
<PAGE>

Items 1. Legal Proceedings (Continued)

         In the matter entitled Douglas Calvert v. BioShield Technologies, Inc.,
Superior Court of Gwinnett County, Georgia, Civil Action No. 01-A-102272-4, a
former employee of the Company ("plaintiff") has brought action against the
Company alleging breach of employment contract. The plaintiff claims that the
Company wrongfully refused to pay him severance pay of $28,558 following his
termination on December 5, 2000. The Company has admitted that severance pay is
due and owing and this amount has been recorded as an accrued expense with a
balance approximating $3,000 being serviced.

         In the matter entitled Bioshield, Inc. v. BioShield Technologies, Inc.,
United States District Court, Eastern District, Michigan, Civil Action No.
00-CV-10181-BC, a Michigan corporation has brought a trademark violation suit
against the Company, which claims superior right to the use of the "Bioshield"
name and claims damages in an amount not less than $75,000. The Company denies
the claims and has filed a counterclaim for damages for infringement upon the
Company's intellectual property. The Company intends to vigorously defend the
action.

         In the matter of Duke Construction Limited Partnership v. Bioshield
Technologies, Inc., American Arbitration Association Arbitration No.
30-110-00023-01, Superior Court of Gwinnett County, Civil Action No.
01-A-7161-5, Duke Construction received its arbitration award in the amount of
$219,000 on June 8, 2001. On July 18, 2001, Duke Construction filed a complaint
in the Superior Court of Gwinnett County seeking confirmation of the award. The
Company is contesting approximately $5,000 of interest, which was included in
the award. Settlement negotiations regarding the payment of this judgment are
ongoing. The Company entered into a settlement agreement and made a down payment
of $25,000 in January 2002 and is obligated to pay $7,500 per month until the
debt is extinguished.

         In the matters of Jamestown Management Corp. v. Bioshield Technologies,
Inc., Mountain National Bank (garnishee) and Summit Marketing Group, Inc. v.
Bioshield Technologies, Inc., Mountain National Bank (garnishee), Jamestown
received condemned funds as a result of the garnishment it filed in DeKalb
County, as well as the garnishment filed by Summit in Gwinnett County with a
principal amount of $78,699 remained outstanding on this judgment as of August
15, 200l.

         Summit was involved in two garnishment actions, one filed in DeKalb
County by Jamestown and the other filed in Gwinnett County by Summit. Summit
received a total of $29,201 under the garnishments and has indicated that
$36,000 remained outstanding on Summit's judgment, including interest as of
August 15, 2001.


Item 2. Changes in securities and Use of Proceeds

         On September 12, 2002, we filed a Form S-8 Registration Statement to
register 7,000,000 shares of the Company's common stock under the 2002 Stock
Option Plan. In all other respects the Plan and Prospectus are substantially
identical to those previously filed on December 28, 2001.

         During July 2002, we issued 531,974 shares of common stock to an
attorney for debt of $55,857. We valued these common shares at the fair market
value on the date of issuance.

         For the three months ended September 30, 2002, we issued 3,650,240
shares of common stock to a consultant for services rendered. In connection with
this issuance, we recorded consulting fees of $300,245 based on the fair market
value of the shares issued.

         In September 2002, we issued 500,000 shares of common stock to an
employee as compensation. In connection with this issuance, we recorded non-cash
compensation expense of $24,000 based on the fair market value of the shares
issued.

         In September 2002, in connection with the exercise of stock options, we
issued 2,000,000 shares of common stock to an officer of the Company for
services rendered and for debt. Since we did not receive any cash for the
exercise of these options, we recorded non-cash compensation of $78,646, and
reduced amounts due to this officer of $21,354 based on the exercise price of
the underlying stock option granted.

                                      12
<PAGE>

Item 3.  Defaults upon Senior Securities

         - NONE -

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

         - NONE -

Item 5.  Other Information

         - NONE -

Item 6.  Exhibits and Reports on Form 8-K

         (a)      Exhibits

            99.01 Certification by Chief Executive Officer
            99.02 Certification by Chief Accounting Officer

         (b)      Reports on Form 8-K

            On September 12, 2002, we filed an 8-K that discussed a change in
our independent accountants.


                               SIGNATURES

     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.



Date: November 14, 2002          /s/ Timothy C. Moses
                                 -------------------------
                                 Name: Timothy C. Moses
                                 Title: President and Chief Executive Officer

                                      13
<PAGE>
                                 CERTIFICATION

I, Timothy C. Moses, the Chief Executive Officer and Chief Accounting Officer
of International BioChemical Industries, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-QSB of International
BioChemical Industries, 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. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

      a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which 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. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):

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

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

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

Date: November 14, 2002               /s/ Timothy C. Moses
                                      ---------------------------------
                                      Timothy C. Moses, Chief Executive Officer
                                      and Chief Accounting Officer

                                      14