FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

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

      For the Quarterly Period Ended September 30, 2002


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


Commission file number 0-14119-NY
                       ----------

                        Polymer Research Corp. of America
                        ---------------------------------
             (Exact name of registrant as specified in its charter)

             New York                                  11-2023495
--------------------------------------------------------------------------------
(State or other jurisdiction of                     (I.R.S Employer
 incorporation or organization)                   Identification No.)

                   2186 Mill Avenue, Brooklyn, New York 11234
--------------------------------------------------------------------------------
                    (Address of principal executive offices)
                                   (Zip code)

                                 (718) 444-4300
--------------------------------------------------------------------------------
               (Registrants telephone number, including area code)



                      APPLICABLE ONLY TO CORPORATE ISSUERS:

         There were 2,075,784 shares of the registrant's common stock
outstanding as of October 31, 2002.

Transitional Small Business Disclosure Format (check one) Yes [ ]  No [X]

<PAGE>


                        POLYMER RESEARCH CORP.OF AMERICA


                             - FORM 10QSB - INDEX -


                                                                         Page(s)
                                                                         ------

Part I - FINANCIAL INFORMATION:

Item 1.        Financial Statements

   Balance Sheets at September 30, 2002 (unaudited)
     and December 31, 2001                                                    1

   Statements of Operations for the Three
      Month Periods Ended September 30, 2002 and 2001 (unaudited)             2

   Statements of Operations for the Nine
      Month Periods Ended September 30, 2002 and 2001 (unaudited)             3

   Statements of Cash Flows for the Nine
      Month Periods Ended September 30, 2002 and 2001 (unaudited)             4

    Notes to Financial Statements                                            5-7

Item 2.         Management's Discussion and Analysis or Plan of Operation    8-9

Item 3.         Controls and Procedures                                        9

PART II.        OTHER INFORMATION                                             10

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                              10

Signatures                                                                    11



<PAGE>


PART I - Financial Information

Item 1- Financial Statements


                       POLYMER RESEARCH CORP. OF AMERICA
                                 BALANCE SHEETS
                                   - ASSETS -
<TABLE>
<CAPTION>
                                                                                               September 30,          December 31,
                                                                                                    2002                  2001
                                                                                                    ----                  ----
                                                                                                (Unaudited)
CURRENT ASSETS:
<S>                                                                                             <C>                     <C>
     Cash and cash equivalents                                                                  $   545,997             $   711,952
     Accounts receivable, less allowances of $0                                                     465,773                 515,343
     Inventories                                                                                    131,387                 143,836
     Deferred tax charge                                                                             57,946                  57,946
     Prepaid and refundable income taxes                                                            314,343                  96,455
     Prepaid expenses and other current assets                                                       81,517                   6,441
                                                                                                -----------             -----------
TOTAL CURRENT ASSETS                                                                              1,596,963               1,531,973
                                                                                                -----------             -----------
Land, Property, and Equipment-net
        of accumulated depreciation of $ 1,227,802 and $1,194,815 respectively                    2,532,663               2,594,197
                                                                                                -----------             -----------
OTHER ASSETS:
       Cash-restricted                                                                                                      150,000
       Mortgage escrow                                                                               93,366
       Capitalized financing costs - net                                                            112,439
       Security deposits                                                                                875                   2,175
                                                                                                -----------             -----------
TOTAL OTHER ASSETS                                                                                  206,680                 152,175
                                                                                                -----------             -----------
TOTAL                                                                                           $ 4,336,306             $ 4,278,345
                                                                                                ===========             ===========

                                    - LIABILITIES AND STOCKHOLDERS' EQUITY -

CURRENT LIABILITIES:
     Note payable-bank                                                                                                  $   150,000
     Current portion of mortgage payable                                                        $    42,444
     Current portion of long-term debt                                                              100,000
     Current portion of term loan                                                                        --                 100,000
     Accounts payable and accrued expenses                                                          509,844                 387,867
     Deferred revenue                                                                               234,981                 259,250
                                                                                                -----------             -----------
TOTAL CURRENT LIABILITIES                                                                           887,269                 897,117
                                                                                                -----------             -----------

LONG-TERM LIABILITIES:
          Mortgage payable, less current maturities                                               1,347,336
          Long-term debt, less current maturities                                                   200,000
          Term loan, less current maturities                                                             --                 241,667
                                                                                                -----------             -----------
TOTAL LIABILITIES                                                                                 1,547,336               1,138,784
                                                                                                -----------             -----------

STOCKHOLDERS' EQUITY:
     Common stock - par value $.01 per share,  authorized  4,000,000 shares,  issued
      2,075,784 and 1,925,784 shares at September 30, 2002
      and December 31, 2001, respectively                                                            20,757                  19,257
     Capital in excess of par value                                                               3,728,478               3,504,978
     Accumulated deficit                                                                         (1,829,773)               (366,913)

     Less:  Treasury stock, at cost, 22,140 shares                                                  (17,761)                (17,761)
                                                                                                -----------             -----------
TOTAL STOCKHOLDERS' EQUITY                                                                        1,901,701               3,139,561
                                                                                                -----------             -----------
TOTAL                                                                                           $ 4,336,306             $ 4,278,345
                                                                                                ===========             ===========
                See accompanying notes to financial statements.

                                      -1-


<PAGE>

                        POLYMER RESEARCH CORP. OF AMERICA
                            STATEMENTS OF OPERATIONS
                        FOR THE THREE MONTH PERIODS ENDED
                           SEPTEMBER 30, 2002 AND 2001
                                   (Unaudited)
                                                                                 2002               2001
                                                                           -----------           -----------
Net Revenue

    Product Sales                                                          $    74,455           $   134,402
    Research                                                                   112,255             1,061,683
                                                                           -----------           -----------
    Total                                                                      186,710             1,196,085
                                                                           -----------           -----------

Cost of Revenues

    Product Sales                                                               84,333               111,336
    Research                                                                   216,321               254,081
                                                                           -----------           -----------
    Total                                                                      300,654               365,417
                                                                           -----------           -----------

Gross Profit (Loss) on Revenues                                               (113,944)              830,668
                                                                           -----------           -----------
Selling, General and Administrative Expenses                                 1,003,697               813,428
                                                                           -----------           -----------
Income (Loss) from Operations                                               (1,117,641)               17,240
                                                                           -----------           -----------
Other Revenue (Expenses):

    Investment income                                                              855                 1,871
    Interest expense                                                           (30,174)               (7,957)
                                                                           -----------           -----------
Total Other Revenues (Expenses)                                                (29,319)               (6,086)
                                                                           -----------           -----------

Income (Loss) before income taxes                                           (1,146,960)               11,154

(Provision) benefit for income taxes                                           265,300                 1,600
                                                                           -----------           -----------
Net Income (Loss)                                                          $(  881,660)          $    12,754
                                                                           ===========           ===========
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE:

- Basic                                                                    $      (.43)          $       .01
                                                                           ===========           ===========
- Diluted                                                                  $      (.43)          $       .01
                                                                           ===========           ===========
WEIGHTED AVERAGE NUMBER OF BASIC COMMON SHARES OUTSTANDING                   2,046,436             1,925,784
                                                                           ===========           ===========
WEIGHTED AVERAGE NUMBER OF DILUTED COMMON SHARES OUTSTANDING                 2,167,088             1,925,784
                                                                           ===========           ===========


                See accompanying notes to financial statements.

                                      -2-


<PAGE>


                        POLYMER RESEARCH CORP. OF AMERICA
                            STATEMENTS OF OPERATIONS
                        FOR THE NINE MONTH PERIODS ENDED
                           SEPTEMBER 30, 2002 AND 2001
                                   (Unaudited)

                                                                           2002                   2001
                                                                           ----                   ----

Net Revenue

     Product Sales                                                    $   283,027              $   530,359
     Research Revenue                                                   1,535,945                3,592,451
                                                                      -----------              -----------
     Total                                                              1,818,972                4,122,810
                                                                      -----------              -----------

Cost of Revenues

     Product Sales                                                        285,866                  466,952
     Research Revenue                                                     637,141                  829,086
                                                                      -----------              -----------
     Total                                                                923,007                1,296,038
                                                                      -----------              -----------
Gross Profit on Revenues                                                  895,965                2,826,772
                                                                      -----------              -----------
Selling, General and Administrative Expenses                            2,581,161                2,767,960
                                                                      -----------              -----------

Income (Loss) from Operations                                          (1,685,196)                  58,812
                                                                      -----------              -----------

Other Revenue (Expenses):

     Investment income                                                      4,706                   12,209
     Interest expense                                                     (47,671)                 (29,183)
                                                                      -----------              -----------
Total Other Revenues (Expenses)                                           (42,965)                 (16,974)
                                                                      -----------              -----------
Income (Loss) before income taxes                                      (1,728,161)                  41,838
                                                                      ===========              -----------

(Provision) benefit for income taxes                                      265,300                  (28,800)
                                                                      -----------              -----------
Net Income (Loss)                                                     $(1,462,861)             $    13,038
                                                                      ===========              ===========


BASIC AND DILUTED EARNINGS (LOSS) PER SHARE:


- Basic                                                              $      (.74)             $       .01
                                                                     ===========              ===========

- Diluted                                                            $      (.74)             $       .01
                                                                     ===========              ===========

WEIGHTED AVERAGE NUMBER OF BASIC COMMON SHARES OUTSTANDING             1,966,443                1,925,784
                                                                     ===========              ===========

WEIGHTED AVERAGE NUMBER OF DILUTED COMMON SHARES OUTSTANDING           2,007,102                1,925,784
                                                                     ===========              ===========



                See accompanying notes to financial statements.


                                      -3-


<PAGE>

                     POLYMER RESEARCH CORPORATION OF AMERICA
                            STATEMENTS OF CASH FLOWS
                        FOR THE NINE MONTH PERIODS ENDED
                           SEPTEMBER 30, 2002 AND 2001
                                  (Unaudited)

                                                                2002                2001
                                                                ----                ----
OPERATING ACTIVITIES:

Net income (Loss)                                              $(1,462,861)       $    13,038
Adjustments to reconcile
  net cash provided by operating activities:
    Depreciation and amortization:                                  62,406             75,000
                                                               -----------        -----------

Changes in Assets and Liabilities:

     Accounts receivable                                            49,570              7,309
     Inventories                                                    12,449             16,446
     Other current assets                                               --             71,733
     Other assets                                                    1,300                 --
     Prepaid income taxes                                         (217,888)                --
     Prepaid expenses                                              (75,076)                --
     Accounts payable and accrued expenses                         121,978            (19,712)
     Deferred revenue                                              (24,269)          (145,326)
                                                               -----------        -----------
Net cash provided by (used for)                                 (1,532,391)            18,488
operating activities                                           -----------        -----------


FINANCING ACTIVITIES:

Payments of notes payable and term loan                           (491,667)              (614)
Proceeds from issuance of common stock                             225,000                 --
Payment of financing costs                                        (112,439)                --
Mortgage escrow payments                                           (93,366)                --
Proceeds of Mortgage                                             1,400,000                 --
Payment of mortgage principal                                      (10,220)                --
(Payments of)\proceeds from long term debt                         300,000            (75,000)
                                                               -----------        -----------
Net cash provided by (used for)
financing activities                                             1,217,308            (75,614)
                                                               -----------        -----------

INVESTING ACTIVITIES:

Investment in Land, Property, and Equipment                           (872)            (7,608)
                                                               -----------        -----------
Net cash provided by (used for)
investing activities:                                                (872)            (2,608)
                                                               -----------        -----------
INCREASE (DECREASE) IN CASH                                       (315,955)           (64,734)
Cash, beginning of period                                          861,952            845,585
                                                               -----------        -----------
Cash, end of period                                            $   545,997        $   780,851
                                                               ===========        ===========
</TABLE>


                See accompanying notes to financial statements.


                                      -4-


<PAGE>



                       POLYMER RESEARCH CORP. OF AMERICA
                          NOTES TO FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2002 AND 2001
                                   (Unaudited)

NOTE 1 - BASIS OF PRESENTATION:

The Interim financial statements included herein have been prepared without
audit, pursuant to the rules and regulations of the Securities and Exchange
Commission ("SEC"). Certain information and footnote disclosures, normally
included in the financial statements prepared in accordance with generally
accepted accounting principles, have been condensed or omitted pursuant to SEC
rules and regulations; nevertheless, management of the Company believes that the
disclosures herein are adequate to make the information presented not
misleading. The financial statements and notes should be read in conjunction
with the audited financial statements and notes thereto as of December 31, 2001
included in the Company's Form 10-KSB filed with SEC.

In the opinion of management, all adjustments consisting only of normal
recurring adjustments necessary to present fairly the financial position of the
Company with respect to the interim financial statements have been made. The
results of operations for the interim periods are not necessarily indicative of
the results to be expected for the full year.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Business Activity

The Company is engaged in the research and development of the applications of
chemical grafting and sells products resulting from such research.

Credit Risk

Financial Instruments that potentially subject the Company to credit risk
include investments in United States Treasury bills, notes and other
certificates of deposit, government agencies' securities and U.S. Government and
New York State mutual bond funds. Future changes in economic conditions may make
the investment less valuable.

In addition, financial instruments that potentially subject the Company to
credit risk also include accounts receivable. Accounts receivable resulting from
research or product sales are not collateralized.

The Company maintains deposits with financial institutions in excess of amounts
insured by the FDIC.

Use of Estimates

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

Revenue Recognition

Revenue from research contracts is recognized upon the satisfaction of the
following two criteria: first, client approval of performance of a specific
stage of the contract and, second, when collection of the resulting revenue is
assured. Revenue from production is recognized when products are shipped for
sale to customers.

Deferred Revenue

Deferred revenue represents cash received from customers prior to and in
anticipation of research services performed by the Company. As these services
are performed, such deferred amount is recognized as revenue according to
revenue recognition policies stated above.


                                      -5-
<PAGE>

                       POLYMER RESEARCH CORP. OF AMERICA
                          NOTES TO FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2002 AND 2001
                                   (Unaudited)


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):

Inventories

Inventories are valued at the lower of cost or market, with cost determined
using the first-in, first-out method and with
market defined as the lower of replacement cost or net realizable value.

Property and Equipment

Property and equipment is stated at cost. The costs of additions and betterments
are capitalized and expenditures for repairs and maintenance are expensed in the
period incurred. When items of property and equipment are sold or retired, the
related costs and accumulated depreciation are removed from the accounts and any
gain or loss is included in income.

The Company capitalizes leased equipment where the terms of the lease result in
the transfer to the Company of substantially all of the benefits and risks of
ownership of the equipment.

Depreciation and amortization of property and equipment is provided utilizing
the straight-line method over the estimated useful lives of the respective
assets as follows:

Transportation equipment                    3 to 5 years
Machinery & Equipment                       5 years
Furniture & Fixtures                        5 to 10 years
Building and improvements                   40 years
Office equipment under Capital leases       5 years

Income Taxes

The Company accounts for its income taxes utilizing statement of Financial
Accounting Standards ("SFAS") No. 109 "Accounting for Income Taxes" which
requires that the Company follow the liability method of accounting for income
taxes.

The liability method provides that deferred tax assets and liabilities are
recorded based on the difference between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes, referred to as
"temporary differences."

Net Earnings per share

The financial statements are presented in accordance with Statement of Financial
Accounting Standards No. 128 "Earnings Per Share". Basic earnings per share are
computed based upon the weighted average number of common shares outstanding
during each year. Diluted earnings per share incorporate the incremental shares
issuable upon the assumed exercise of stock options and warrants. In accordance
with SFAS 128, diluted earnings per share are not presented in periods during
which there are no outstanding options or warrants or during which the company
reflects a net loss from operations.

Supplemental Cash Flow Information

During the nine  months  ended  September  30, 2002 and 2001,  the Company  paid
interest expense of $47,671 and $29,183,  respectively, and income taxes of $-0-
and $-0- respectively.


                                      -6-
<PAGE>


                       POLYMER RESEARCH CORP. OF AMERICA
                          NOTES TO FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2002 AND 2001
                                   (Unaudited)


NOTE 3 - Provision for Income Taxes

The provision (benefit) for income taxes for the nine months ended September 30,
2002 and 2001 is as follows:

                                             2002               2001

Federal                                  $(272,500)          $   13,300
State and local                              7,200               15,500
                                         ---------           ----------
Total                                    $(265,300)          $   28,800
                                         =========           ==========

NOTE 4 - Contingencies

At September 30, 2002, the Company was a defendant in various lawsuits that
arose in the ordinary course of business. At September 30, 2002, the Company has
included a reserve in current liabilities in an amount that management believes
is reasonable for legal expenses and potential unfavorable rulings or
settlements of these cases. It is management's opinion that the ultimate
liability, if any, which might result from the remainder of such actions would
not have a material effect on the Company's financial condition.

NOTE 5-Long-Term Debt

On March 15, 2000, the Company entered into a borrowing arrangement with a bank
whereby the bank agreed to extend a $500,000 term loan facility to the Company.
The Company utilized the facility in full in connection with the balloon
mortgage payment on June 1, 2000. The five-year term loan was repayable in
monthly principal installments of $8,333 plus interest at 8.5% per annum. The
loan required the Company to comply with certain financial covenants and to
maintain on deposit with the lender no less than $150,000. Simultaneously, the
bank extended a $250,000 line of credit facility to the Company. On May 24, 2002
the outstanding balance of the term loan ($301,122) and the line of credit
($150,000) were paid off with the proceeds from a new mortgage loan (see Note
6).

NOTE 6-Mortgage loan

On May 24, 2002, the Company entered into a mortgage arrangement with a bank
whereby the bank agreed to extend a mortgage loan and the Company received
proceeds of $1,400,000 using the Company building in Brooklyn, New York as
collateral. The Company utilized the proceeds to pay off an existing term loan
debt of $301,122 and a line of credit of $150,000. The balance will be used for
working capital purposes. The fifteen-year mortgage loan will be repayable in
monthly instalments of $15,044 which includes interest at an initial rate of 10%
per annum that is adjustable after 2 years.

NOTE 7-Private sale of equity

During the third quarter, the Company sold, to a private investor, 150,000 units
(the "Units"), each consisting of one share of common stock and one warrant (the
"Warrants") to purchase an additional share for $1.50 per share. The Company
received $225,000 for the Units and may receive an additional $225,000 if the
investor exercises the warrants. The Company is in the process of registering
for resale by the investor the shares included in the Units and those underlying
the Warrants which are exercisable during the 90-day period following the
effective date of the Registration Statement.







                                      -7-
<PAGE>



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

The following discussion and analysis of financial condition and results of
operations should be read in conjunction with the Company's financial statements
and the accompanying notes thereto included herein, and the audited financial
statements included in its 2001 annual report on Form 10-KSB. This Quarterly
Report on Form 10-QSB includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended.

Forward-looking statements involve known and unknown risks, uncertainties and
other factors which could cause the actual results, performance (financial or
operating) or achievements expressed or implied by such forward-looking
statements not to occur or be realized. Such forward-looking statements
generally are based upon the Company's best estimates of future results,
performance or achievement, based upon current conditions, and based upon the
most recent results of operations. There can be no assurance that actual results
will not differ materially from those expressed or implied in the
forward-looking statements.

Forward-looking statements may be identified by the use of forward-looking
terminology such as "may," "will," "expect," believe," "estimate," anticipate,"
"continue" or similar terms, variation of those terms or the negative of those
terms. Potential risks and uncertainties include, among other things, such
factors as the ability to attract and retain qualified personnel, demand for our
research which during economic slowdowns is usually weaker, the effect on our
financial condition of delays in payments received from third parties, economic
conditions, and other factors which may be set forth in our other filings with
the Securities and Exchange Commission.

The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

CAPITAL RESOURCES AND LIQUIDITY

Cash and cash equivalents have decreased collectively by $315,955 at September
30, 2002 since December 31, 2001. The decrease resulted principally from net
losses, offset by the sale of Units from which the Company received net proceeds
of $225,000. (See Note 7 to Notes to Financial Statements).

The ratio of current assets to current liabilities increased to 1.8 to 1.0 at
September 30, 2002 as compared to 1.71 to 1.0 at December 31, 2001 as a result
of the repayment of current debt and the replacement of such with long-term debt
combined with continuing losses which use cash. On May 24, 2002, the Company
entered into a mortgage arrangement with a bank whereby the bank agreed to
extend a mortgage loan and the Company received proceeds of $1,400,000 with the
Company headquarters building as collateral. The Company utilized the proceeds
to pay off existing term loan debt of $301,122 and a line of credit of $150,000.
The fifteen-year mortgage loan will be repayable in monthly instalments of
$15,044 which includes interest at an initial rate of 10% per annum that is
adjustable after 2 years.

The Company experienced a dramatic decline in revenues during the third quarter.
Management believes that, unless revenues increase significantly, the Company's
cash position at September 30, 2002 may be insufficient to meet its financial
needs in the short term. At current operating levels, the Company may be out of
cash within three to four months from the date of this filing unless revenues
increase or expenses are reduced. During October 2002, the Company's chief
executive officer loaned the Company $200,000. In addition, the Company expects
to receive net proceeds of approximately $200,000 from the exercise of
outstanding warrants within 90 days and management is taking steps to reduce
expenses. The Company also expects to receive a tax refund of approximately
$270,000 in 2003. Over both the long and short term, liquidity will be a direct
result of sales and related net earnings.

No significant capital expenditures are anticipated or, in the opinion of
management, needed.

B. RESULTS OF OPERATIONS

Three months ended September 30, 2002 v. 2001.

Net revenues for the third quarter of 2002 were $ 186,710 a decrease of
$1,009,375 (84%) compared with the third quarter of 2001. Research sales
decreased $949,428 (89%) in the third quarter of 2002 compared to 2001 due to a
dramatic decrease of research demand by customers, which appears to be related
to the continued downturn in the economy, and other factors which management has
not yet identified. Product sales decreased $ 59,947 (45%) compared to the third
quarter of 2001 due to decreased demand from research customers.



                                      -8-
<PAGE>


The cost of revenues in research increased to 192% from 24% in the third quarter
of 2002 compared to 2001 as a result of significantly reduced sales with similar
staff and expenses. The cost of revenues in production increased to 113% from
82% in the third quarter of 2002 compared to 2001 as a result of similar payroll
with decreased sales.

Selling, general, and administrative expenses increased as a percentage of sales
in the third quarter of 2002 as compared to the same quarter of 2001 from 68% to
537% as a result of significantly decreased sales. Loss from operations during
the third quarter increased from a profit of $17,240 (1% of sales) in 2001 to a
loss of $1,117,641 ((93%) of sales) in 2002 as a result of significantly
decreased sales.

Selling, general, and administrative expenses increased in 2002 by $190,269 when
compared to the comparable period of 2001 as a result of increased legal
settlements.


Nine months ended September 30, 2002 v.  2001.

Net revenues for the first nine months of 2002 were $1,818,972 a decrease of
$2,303,838 (56%) compared with the first nine months of 2001. Research sales
decreased $2,056,506 (57%) in the first nine months of 2002 compared to 2001 due
to a slower granting of research contracts by customers, which appears to be
related to the continued downturn in the economy and other factors that
management has been unable to identify. Product sales decreased $247,332 (47%)
compared to the first nine months of 2001 due to decreased demand from research
customers.

The cost of revenues in research increased to 41% from 23% in the first nine
months of 2002 compared to 2001 as a result of significantly decreased sales
with similar costs. The cost of revenues in production increased to 100% from
88% in the first nine months of 2002 compared to 2001 as a result of decreased
sales and similar expenses.

Selling, general, and administrative expenses increased as a percentage of sales
in the first nine months of 2002 as compared to the same period of 2001 from 67%
to 141% as a result of significantly decreased sales. Selling, general, and
administrative expenses increased in 2002 by approximately $186,799 when
compared to the comparable period of 2001 as a result of increased litigation
settlements.

Income (loss) from operations during the first nine months decreased from income
of $58,812 (.01% of sales) in 2001 to a loss of ($1,685,196) (93% of sales) in
2002 principally as a result of decreased sales.


ITEM 3.   CONTROLS AND PROCEDURES

a)     Evaluations of disclosure controls and procedures.

       Based on evaluation of the effectiveness of the Company's disclosure
       controls and procedures as of a date within 90 days of the filing date of
       this quarterly report, the Chief Executive Officer and Chief Financial
       Officer, who is the same person, concluded that the Company's disclosure
       controls and procedures are effective in timely alerting him to material
       information relating to the Company required to be included in the
       Company's periodic SEC filings.

b)     Changes in internal control.

     There have been no significant changes in the Company's internal controls
     or in other factors that could significantly affect these controls
     subsequent to the date of the evaluation.

                                      -9-
<PAGE>


PART II - OTHER INFORMATION

ITEM 1 - Legal proceedings:

The Company is a defendant in various lawsuits, which arose in the ordinary
course of business. As of September 30, 2002, the Company has recorded a reserve
which it deems adequate for legal expenses and any potential unfavorable rulings
in certain of these cases. It is management's opinion that the outcome from such
lawsuits will not have a material effect on the Company's financial position.

ITEM 2 - Changes in Securities:

(c)  On July 18, 2002, the Company sold 150,000 units, each consisting of one
     share of Common Stock and a Warrant to purchase an one share of Common
     Stock at an exercise price of $1.50 per share, to a private investor for a
     purchase price of $225,000. The shares of Common Stock and the shares of
     Common Stock underlying the Warrants have not been registered under the
     Securities Act of 1933 and sales of the shares are subject to restrictions
     and limitations. The issuance of the shares was exempt from registration
     pursuant to Section 4(2) of the Securities Act as a transaction not
     involving any public offering. The Company paid a finders fee of $11,500 in
     connection with the sale of the Units and is obligated to pay an
     additional $10,000 if the Warrants are exercised.

ITEM 3- Defaults Upon Senior Securities: None

ITEM 4- Submission of Matters to a Vote of Security Holders: None

         On October 1, 2002, the U.S. Department of Health and Human Services
OIG released its Draft Compliance Program Guidance for Pharmaceutical
Manufacturers (the "HHS Draft Guidance") aimed at advising pharmaceutical
manufacturers on how to establish a compliance program that will ensure
adherence to applicable laws and regulations. Included in the HHS Draft Guidance
is a discussion of certain areas of legal risk for pharmaceutical manufacturers
that the government encourages manufacturers to consider in structuring their
compliance programs. AdvancePCS has reviewed the draft guidance and we believe
that our business practices and our arrangements with pharmaceutical
manufacturers satisfy the intent of the HHS Draft Guidance. AdvancePCS also
maintains a compliance program designed to include the key compliance program
elements described in the HHS Draft Guidance. We do not believe that the HHS
Draft Guidance, in its current form, would have a material effect on our
business operations or financial results. However, because the HHS Draft
Guidance has not been finalized, there is the possibility that it could be
changed prior to publication of the final version. Any such changes could impact
our business operations, possibly materially.

ITEM 5- Other Information: None

ITEM 6- Exhibits and Reports on Form 8-K:

        (a) Exhibits:

            Exhibit 99.1 - Certification pursuant to 18 USC Section 1350

        (b) Reports on Form 8-K:        None



                                      -10-

<PAGE>





                                   SIGNATURES

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

                    POLYMER RESEARCH CORPORATION OF AMERICA

November 9, 2002      by:  /s/ Carl Horowitz
                      -------------------------
                      Carl Horowitz, President and
                      Chief Financial Officer

                    CERTIFICATION OF CHIEF EXECUTIVE OFFICER
                           AND CHIEF FINANCIAL OFFICER


I, Carl Horowitz, certify that:

1.   I have reviewed this  quarterly  report on Form 10-QSB of Polymer  Research
     Corporation of America;

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.

               November  9, 2002       by:   s/ Carl Horowitz
                                             Chief Executive Officer and
                                             Chief Financial Officer

                                      -11-