UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 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, 2005
                               -------------------------------------------------

                                       OR

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

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 Number)
   incorporation or organization)

                  7347 S. Revere Parkway, Centennial, CO 80112
              -----------------------------------------------------
              (Address and zip code 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 of the filing
requirements for at least the past 90 days.
Yes _X_  No ___

Applicable only to issuers involved in bankruptcy proceedings during the
preceding five years.

N/A

Check whether the Registrant filed all documents required to be filed by Section
12, 13 and 15(d) of the Exchange Act after the distribution of securities under
a plan confirmed by a court.

Yes___ No___

                      Applicable only to corporate issuers

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

Class                                             Outstanding as of May 13, 2005

$0.001 par value                                  24,117,544

Transitional Small Business Disclosure Format (check one)

Yes___ No_X_
<PAGE>

                         KOLORFUSION INTERNATIONAL, INC.

                                    I N D E X

<TABLE>
<CAPTION>
                                                                                                                             Page
PART I              FINANCIAL INFORMATION
<S>                 <C>                                                                                                      <C>
    Item 1.             Financial Statements (Unaudited)

                           Condensed Balance Sheets
                             March 31, 2005 (Unaudited) and
                             June 30, 2004 (Audited)                                                                            1

                           Condensed Statements of Operations
                             Three and nine months ended March 31, 2005 and 2004 (Unaudited)                                    2

                           Condensed Statements of Cash Flows
                             Nine months ended March 31, 2005 and 2004 (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                 6-9
    Item 3.             Controls and Procedures

                       OTHER INFORMATION
PART II             Item 1. Legal Proceedings
                    Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                     10-11
                    Item 3. Defaults Upon Senior Securities
                    Item 4. Submission of Matters to a Vote of Security Holders
                    Item 5. Other Information
                    Item 6. Exhibits and Reports on Form 8-K

                    SIGNATURES

</TABLE>





<PAGE>


                          Part I. FINANCIAL INFORMATION
                          Item I. FINANCIAL STATEMENTS

                         KOLORFUSION INTERNATIONAL, INC.


                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                              MARCH 31,          JUNE 30,
                                                                                2005               2004
                                 ASSETS                                   ----------------- -------------------
                                                                             (UNAUDITED)        (AUDITED)
<S>                                                                       <C>               <C>
CURRENT ASSETS:
    Cash and cash equivalents                                             $         102,358 $          138,940
    Trade accounts receivable, net of allowance for doubtful accounts of
$10,000
    March 31, 2005 and June 30, 2004                                                163,417            331,065
    Inventories, net                                                                234,476            393,015
    Prepaid rent                                                                    136,000             84,000
                                                                          ----------------- -------------------

             Total current assets                                                   636,251            947,020
                                                                          ----------------- -------------------
OTHER ASSETS:
    Patents, less accumulated amortization
        December $2,892,494; June $2,707,868                                        800,036            984,662
    Other                                                                            93,000             19,270
                                                                          ----------------- -------------------
                                                                                    893,036          1,003,932

LEASEHOLD IMPROVEMENTS AND EQUIPMENT, NET                                           124,261            142,357
                                                                          ----------------- -------------------
                                                                          $       1,653,548 $        2,093,309
                                                                          ================= ===================

             LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES:
    Accounts payable                                                      $         256,308 $          383,339
    Deferred revenue                                                                476,344            259,694
    Current portion of long-term debt                                               690,810            794,383
    Accrued expenses                                                                 22,544             52,381
    Accrued expenses due stockholders                                               652,240            575,740
                                                                          ----------------- -------------------

             Total current liabilities                                            2,098,246          2,065,537
                                                                          ----------------- -------------------
LONG-TERM DEBT, net of current portion                                              447,478            476,785
DEFERRED REVENUE, net of current portion                                            290,212            380,282

STOCKHOLDERS' 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 24,117,544; June 23,799,544 shares issued and outstanding              24,118             23,800
    Additional paid-in capital                                                   10,218,163         10,059,481
    Accumulated deficit                                                         (11,424,669)       (10,912,576)
                                                                          ----------------- -------------------


                                                                                 (1,182,388)          (829,295)
                                                                          ----------------- -------------------
                                                                          $       1,653,548 $        2,093,309
                                                                          ================= ===================

</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
                                                  2005            2004           2005             2004
                                             ------------    ------------    ------------    ------------
     <S>                                     <C>             <C>             <C>             <C>
     Revenues                                $    283,076    $    640,224    $  1,604,113    $  1,830,330

     Expenses:

         Cost of sales                            145,516         331,078         971,199         935,480
         Selling, general and
     administrative expenses                      350,496         395,701       1,113,537       1,219,581
                                             ------------    ------------    ------------    ------------
                  Operating loss             ($   212,936)   ($    86,555)   ($   480,623)   ($   324,731)

     Other income (expense)
                                                    3,155          (5,723)          7,761          67,399
     Interest Expense                             (14,566)        (10,949)        (39,231)        (31,873)

                  Loss before income taxes   ($   224,347)   ($   103,227)   ($   512,093)   ($   289,205)

     Income taxes                                      --              --              --              --

                  Net  loss                  ($   224,347)   ($   103,227)   ($   512,093)   ($   289,205)
      Net  (loss) per common share -
     basic and diluted                              (0.01)             --           (0.02)          (0.01)
     Weighted average outstanding shares
     - basic and diluted                       23,925,544      23,593,844      23,844,877      23,394,933



</TABLE>

                                       2

<PAGE>


                         KOLORFUSION INTERNATIONAL, INC.

                       CONDENSED STATEMENTS OF CASH FLOWS
                    Nine Months Ended March 31, 2005 and 2004
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                       2005         2004
                                                                    ---------    ---------
     <S>                                                            <C>          <C>
     CASH FLOWS FROM OPERATING ACTIVITIES:

         Net  loss                                                  $(512,093)   $(289,205)
         Adjustments to reconcile net  loss to net
           cash provided by (used in) operating activities:

            Common stock issued to employees for services              15,000           --
            Common stock issued for rent                              144,000      144,000

           Depreciation and amortization                              209,329      207,835
           Loss on disposal of equipment                                   --        1,891
           Decrease (increase) in trade accounts receivable           167,648     (219,191)

           Decrease in inventories                                    158,539       16,788

           Increase in prepaid rent                                   (52,000)          --
           Increase in other assets                                   (73,730)     (54,000)
           Increase (decrease) in accounts payable                   (127,031)      95,409
           Increase (decrease) in deferred revenue                    126,580     (132,568)

           Decrease in accrued expenses                               (29,837)        (869)
           Increase in accrued expenses due stockholders               76,500       41,115
                                                                    ---------    ---------
             Net cash provided by (used in) operating activities      102,905     (188,795)
                                                                    ---------    ---------

     CASH FLOWS FROM INVESTING ACTIVITIES:
         Purchases of leasehold improvements and equipment             (6,607)     (20,185)
                                                                    ---------    ---------

     CASH FLOWS FROM FINANCING ACTIVITIES:
         Proceeds from long-term debt                                  50,000       96,000
         Payments on long-term debt                                  (182,880)     (95,902)
         Net proceeds from issuance of common shares                        0      142,701
                                                                    ---------    ---------
             Net cash used in financing activities                   (132,880)    (142,799)
                                                                    ---------    ---------

             Decrease in cash and cash equivalents                    (36,582)     (66,181)

     Cash and cash equivalents:
         Beginning                                                    138,940       73,772
                                                                    ---------    ---------

         Ending                                                     $ 102,358    $   7,591
                                                                    =========    =========
     SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:



                        Cash payments for interest                  $  39,231    $  31,873
                                                                    =========    =========


                     See Notes to Condensed Financial Statements

</TABLE>

                                        3
<PAGE>

                         KOLORFUSION INTERNATIONAL, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1:   Condensed Financial Statements

      The condensed balance sheet as of March 31, 2005, the statements of
      operations for the three and nine month periods ended March 31, 2005 and
      2004, 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 period ended March 31, 2005 are not necessarily
      indicative of the results that may be expected for the fiscal year ending
      June 30, 2005. 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, 2005 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, 2004 audited financial statements. The results of
      operations for the period ended March 31, 2005 are not necessarily
      indicative of the operating results for the full year.

Note 2:   Stock Based Compensation

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

      The Company has adopted the disclosure-only provisions of SFAS No. 123.
      During the three and nine month period ended March 31, 2005 and 2004 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.

      In December 2004, FASB issued SFAS No. 123 (revised 2004), "Share-Based
      Payment", that focuses primarily on accounting for transactions in which
      an entity obtains employee services in share-based payment transactions.
      This statement replaces SFAS No. 123, "Accounting for Stock-Based
      Compensation", and supersedes APB Opinion No. 25, "Accounting for Stock
      Issued to Employees." Beginning with our annual period that begins July 1,
      2006, we will be required to expense the fair value of employee stock
      options and similar awards. As a public company, we are allowed to select
      from two alternative transition methods, each having different reporting
      implications. The impact of SFAS No. 123R on the Company has not been
      determined at this time.


                                        4

<PAGE>

                         KOLORFUSION INTERNATIONAL, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

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, 2005 and 2004 and $184,626 for each of the
      nine months ended March 31, 2005 and 2004. Patent amortization expense
      will be approximately $246,170 for each of the next three years and
      $61,526 the fourth year.

Note 4:   Debt

      The Company, on October 17, 1995, purchased certain U.S. and Canadian
      patent rights from an individual as part of an assignment agreement
      granted at a total price of twenty-five million French francs. The
      agreement was collateralized by patent rights. The Company had not made
      the required payments on this agreement as of June 30, 2002 and, as a
      result, the entire amount due had been classified as a current liability.
      In June 2001, the Company entered an agreement in principle with the
      individual whereby the individual would receive 1,000,000 French francs,
      1,000,000 shares of Company common stock, and a five year consulting
      agreement calling for monthly payments of 58,333 French francs in exchange
      for a settlement of the payable related to the October 1995 agreement and
      certain patent rights and other exclusive rights. The Company believes the
      individual will not provide any bona fide services pursuant to the
      agreement.

      In fiscal 2003, the Company hired a French lawyer in order to enforce the
      agreement in principle that was signed in June 2001. Therefore, the
      Company recorded the debt restructuring during the year ended June 30,
      2003.

                                        5
<PAGE>

                         KOLORFUSION INTERNATIONAL, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

      As of March 31, 2005, this agreement continues to be in process of being
      enforced by the Company and represents a significant estimate made by
      management

Note 5:   Stockholders' Deficit:

      During the nine months ended March 31, 2005, stockholders' deficit changed
      for net loss of $512,093. The Company issued 30,000 shares that were
      valued at $15,000 to employees in the second quarter of fiscal 2005. In
      addition, the Company issued 288,000 shares of common stock that relates
      to the Company's lease agreement signed in February 2004. In lieu of
      paying real estate taxes and other real estate expenses, the Company will
      issue 288,000 shares of common stock each February through February 2006.

Note 6:   Company's Continued Existence

      The accompanying financial statements have been prepared in conformity
      with accounting principles generally accepted in the United States of
      America, which contemplate continuation of the Company as a going concern.
      The Company has sustained substantial losses. In addition, 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 and new customers using the processing
      capability the Company now has in Shenzhen, China with its Licensee Anhua
      Zhouli. Management believes that existing customers will continue to
      expand the use of the Company's process. There can be no assurances 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
      seeking an additional line of credit of $500,000 to $1,000,000 to support
      its plans for future growth and working capital needs. Management is also
      currently involved with discussions for the majority shareholder to sell
      his holdings to a United States based investor, who could provide
      additional financing.

Note 7: Income Taxes

     Deferred taxes are provided on a liability method whereby deferred tax
     assets are recognized for deductible temporary differences and net
     operating loss and tax credit carry-forwards and deferred tax liabilities
     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 carry-forwards of
     approximately $6,900,000 of which no benefit has been recorded as of March
     31, 2005. The net operating-loss carry-forwards will expire at various
     times from 2013 to 2023.

Note 8: Deferred Revenue

     The Company records sales when products are shipped, collection 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, 2005 and June 30, 2004 was $766,556 and $639,976, of
     which the majority relates to the license and royalty agreement signed with
     a third party in August 2002.

Note 9:  Related Party Transaction

     During the three months ended March 31, 2005, the Company borrowed $50,000
     from a stockholder of the Company. Interest on the note accrues at 15% and
     is payable monthly.

Note 10: Major Customer

     During the three and nine month periods ended March 31, 2005, one
     unaffiliated customer accounted for approximately 66% and 23% of revenues.
     In addition, this customer accounted for 66% of total accounts receivable
     at March 31, 2005.

Note 11:  Reclassifications

      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 deficit.


<PAGE>



ITEM 2.   MANAGEMENT'S DISCUSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
          OF OPERATIONS

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.

General

       Kolorfusion International, Inc., a Colorado corporation (the "Company")
currently trades on the Over-the-Counter Bulletin Board under the symbol "KOLR".

       The Company was created to develop and market a system for transferring
color patterns to metal, wood, glass and plastic products. "Kolorfusion" is a
process that allows the transfer of colors and patterns into coated metal, wood
and glass and directly into a plastic surface that can be any shape or size. The
creation of a pattern to be a part of a product's surface is designed to enhance
consumer appeal, create demand for mature products, achieve product
differentiation and customization and as a promotional vehicle. The Company
currently has customers such as Polaris - all terrain vehicles, Garrity -
flashlights, Curt Manufacturing- trailer hitches, Gerber - hand tools, Tru-Glo -
bow sights, Allied Wheel Company - steel wheel rims, Sunrise Medical -
wheelchairs, MasterLock - padlocks, and other customers. The Company has 13
licensees and 3 pre-licensees. Management anticipates other applications and new
licensees as the Company is currently working with other manufacturers in
various markets.


Results of Operations

      REVENUE: During the three-month period ended March 31, 2005, the Company
generated $283,076 in gross revenues compared to $640,224 in gross revenues
during the three-month period ended March 31, 2004 (a decrease of $357,148).
Revenues for the nine months ended March 31, 2005 were $1,604,113 as compared to
the nine months ended March 31, 2004 of $1,830,330 (a decrease of $226,217). The
decrease in gross revenues is due somewhat to changes in processing revenues
converting to licensee Kolortex revenues; wherein the customer may require
initial production/processing by the Company and then becomes a licensee. The
licensee then performs the processing services and acquires the printed Kolortex
from the Company. The Company currently has one very significant customer,
Polaris Industries, and depending upon the timing of Polaris placing orders it
can significantly change quarter to quarter performance in revenues. The Company
expects this revenue swing impact will be minimized as it continues to grow
additional licensees and processing customers.

     COST OF SALES: Cost of sales totaled $145,516 and $971,199, or 51% and 61%
of total revenue for the three and nine months ended March 31, 2005, compared to
$331,078 and $935,480, or 52% and 51% of total revenue for the same periods in
fiscal 2004. The mix of sales and the related gross margins affect the overall
margin, since some revenues like license fees have no direct cost of sales.
Management of the Company anticipates that the profit margin will increase as
the Company increases its customer base and lowers the cost of processing and
materials.

     SELLING, GENERAL AND ADMINISTRATIVE EXPENSES: Selling, general and
administrative expenses totaled $350,496 and $1,113,537 for the three and nine
months ended March 31, 2005, compared to $395,701 and $1,219,581 for the same
periods in fiscal 2004. There was a 11% and 9% net reduction in expenses for the
quarterly and year-to-date periods in 2005. The Company's decrease in SG&A for
the comparable period is a result of the Company not participating in trade
shows during the nine months ended March 31, 2005.

      As a result of the above, the Company's net loss for the three and
nine-month period ended March 31, 2005 was approximately $224,347 or $0.01 per
share and $512,093 or $0.02 per share, respectively. The Company provided
$102,905 in positive operating cash flow for the nine months ended March 31,
2005, as compared to a negative operating cash flow of $188,795 during the nine
months ended March 31, 2004.


<PAGE>


Liquidity and Capital Resources

            The Company has historically had more expenses than income in each
year of its operations. The accumulated deficit from inception to March 31, 2005
was $11,424,669 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 seek to finalize an equity
placement or line of credit of $500,000-$1,000,000 during the next three to
twelve months to support its plans for future growth and working capital needs.

      At March 31, 2005, the Company's current assets were $636,251 and its
current liabilities were $2,098,246, which resulted in a working capital deficit
of $1,461,995. At March 31, 2005, the Company's total assets were $1,653,548
consisting of: (i) $102,358 in cash; (ii) $163,417 in net trade accounts
receivable; (iii) $234,476 in inventory; (iv) $800,036 in valuation of patents
(less accumulated amortization); (v) $124,261 in net valuation of leasehold
improvements and equipment; and (vi) $229,000 in other assets.

     At March 31, 2005, the Company's total liabilities were $2,835,936
consisting of: (i) $256,308 in accounts payable; (ii) $766,556 in current and
long-term deferred revenue; (iii) $1,138,288 in current and long-term debt; (iv)
$22,544 in accrued expenses; (v) $652,240 in accrued expenses due stockholders.

     During the nine-month period ended March 31, 2005, net cash flows provided
by operating activities was $102,905, consisting primarily of a net loss of
($512,093), which was adjusted by $209,329 to reconcile the non-cash expense of
depreciation and amortization and $159,000 related to issuance of common stock
for employee services and rent. In addition, other notable changes were a
decrease in accounts receivable and inventory by $167,648 and $158,539,
respectively.

     During the nine-month period ended March 31, 2005, net cash flows used in
investing activities was $6,607 for the purchases of leasehold improvements and
equipment.

     During the nine-month period ended March 31, 2005, net cash flows used in
financing activities was $132,880 for payment on long-term debt, net of proceeds
from long-term debt.

      The Company's future success and viability are dependent on the Company's
ability to develop, provide and market its products and services, and the
continuing ability to generate capital financing. Management is optimistic that
the Company will be successful in its business operating and capital raising
efforts, however, there can be no assurance that the Company will be successful
in generation of substantial revenue or raising additional capital. The failure
to generate substantial revenues or raise additional capital may have a material
and adverse effect upon the Company and its stockholders.

      The Company entered into an agreement in June of 2001 with the holder of
the patent where the holder would receive 1,000,000 French Francs, 1,000,000
shares of the common stock of the Company, and a 5 year consulting agreement for
58,333 French Francs per month, in exchange for the debt. The Company believes
the individual will not provide any bona fide services pursuant to the
agreement. The Company retained a French attorney to enforce the agreement. In
the event that there is a restructuring of the agreement, which the Company
feels is remote, it would not have a significant impact on the liquidity of the
Company.

        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. The primary source of liquidity in the future will be increased
sales accounts in many categories, including outdoor product manufacturers,
household and building products and new customers seeking processing in China.
Additionally, existing accounts continue to expand the use of the Company's
process resulting in higher revenues. In the event that sales do not increase
the Company may have to seek additional funds through equity sales or debt.
Additional equity sales could have a dilutive effect. The debt financing, if
any, could 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.


<PAGE>


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, 2004) of
the Notes to the Financial Statements includes a summary of the significant
accounting policies and methods used in the preparation of our Financial
Statements. The following is a brief discussion of the more significant
accounting policies and methods used by the Company. In addition, Financial
Reporting Release No. 61 was recently released by the SEC to require all
companies to include a discussion to address, among other things, liquidity,
off-balance sheet arrangements, contractual obligations and commercial
commitments.

        General

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







        Inventory Valuation

        As noted in Note 1 (of Form 10KSB for the year ended June 30, 2004) 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).

        Revenue Recognition and Deferred Revenue

        As noted in Note 1 (of Form 10KSB for the year ended June 30, 2004) to
the Financial Statements, license and royalty revenue is recognized upon
completion of the earnings process. The Company recognizes sales when products
are shipped, collection is probable and the fee is fixed or determined. The
Company ensures that the transactions comply 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.

        Estimate

        As noted in Note 4 (of Form 10KSB for the year ended June 30, 2004) to
the Financial Statements, the debt restructuring represents a significant
estimate made by management. It is at least reasonably possible that a change in
the estimate may occur in the near term.

         Patent Rights

        At noted in Note 1 (of Form 10KSB for the year ended June 30, 2004) to
the Financial Statements, the cost of the patent rights is 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.


<PAGE>


ITEM 3. CONTROLS AND PROCEDURES

      An evaluation was conducted under the supervision and with the
participation of the Company's President and Chief Financial Officer, of the
effectiveness of the design and operation of the Company's disclosure controls
and procedures as at March 31, 2005. Based on that evaluation, Mr. Nagel
concluded that the Company's disclosure controls and procedures were effective
as of such date to ensure that information required to be disclosed in the
reports that the Company files or submits under the Securities Exchange Act of
1934, as amended, is recorded, processed, summarized and reported within the
time period specified in Commission rules and forms. Such officers also confirm
that there was no change in the Company's internal control over financial
reporting during the three-month period ended March 31, 2005 that has materially
affected, or is reasonably likely to materially affect, the Company's internal
control over financial reporting.









<PAGE>




                           PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

        The Company is not aware of any legal proceeding, which is pending or
threatened to which the Company is a party or of which its property is subject.


ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS


None.


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:
                ---------

                31.1  Certification of Chief Executive Officer pursuant to
                      Securities Exchange Act of 1934, Rule 13a-14(a) or
                      15d-14(a).

                31.2  Certification of Chief Financial officer pursuant to
                      Securities Exchange Act of 1934, Rule 13a-14(a) or
                      15d-14(a).


                32.1  Certification of Chief Executive Officer pursuant to
                      Securities Exchange Act of 1934, Rule 13a-14(b) or
                      15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant
                      to Section 906 of the Sarbanes-Oxley Act of 2002.

                32.2  Certification of Chief Financial Officer pursuant to
                      Securities Exchange Act of 1934, Rule 13a-14(b) or
                      15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant
                      to Section 906 of the Sarbanes-Oxley Act of 2002.


      (b)   No reports on Form 8-K were filed during the nine months ended
            March 31, 2005.





<PAGE>



                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                           KOLORFUSION INTERNATIONAL, INC.


Date: May 13, 2005                         By: /s/ Stephen Nagel
                                               ---------------------------------
                                           President and Chief Financial Officer