<PAGE>
                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON D.C. 20549

                                 FORM 10-QSB/A

[ X ] QUARTERLY REPORT PURSUANT TO 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.

For the transition period from __________, 19____, to __________, 19____.


                        Commission File Number: 333-61286

                       KID CASTLE EDUCATIONAL CORPORATION
           formerly King Ball International Technology Corporation


                 Florida                                    59-2549529
      -------------------------------            -------------------------------
      (State or Other Jurisdiction of            (I.R.S. Employer Identification
      Incorporation or Organization)                         Number)

                        8th Floor, No. 98 Mon Chuan Road
                         Hsien Tien, Taipei, Taiwan ROC


                                011-88622218 5996
                                -----------------
              (Registrant's Telephone Number, Including Area Code)


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities 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


There were 15,074,329 shares of the Registrant's no par value common stock
outstanding as of May 7, 2003.

             Transitional Small Business Format (check one) Yes [ ]   NO [X]
<PAGE>
                                   FORM 10-QSB
                       KID CASTLE EDUCATIONAL CORPORATION

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
<S>                                                                         <C>
PART I.  FINANCIAL INFORMATION

         Item 1.  Consolidated Financial Statements......................... i

         Item 2.  Management's Discussion and Analysis of
                  Financial Condition and Results of Operations............. 3

         Item 3.  Controls and Procedures................................... 5


PART II. OTHER INFORMATION

         Item 5.  Other Events.............................................. 6

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


SIGNATURES.................................................................. 7
</TABLE>


                                       -2-
<PAGE>
                       KID CASTLE EDUCATIONAL CORPORATION
          (FORMERLY KING BALL INTERNATIONAL TECHNOLOGY CORPORATION)

                        FINANCIAL STATEMENTS (UNAUDITED)

                               SEPTEMBER 30, 2002
<PAGE>
                       KID CASTLE EDUCATIONAL CORPORATION
            (FORMERLY KING BALL INTERNATIONAL TECHNOLOGY CORPORATION)

                         PART I - FINANCIAL INFORMATION



ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS



                                      INDEX


<TABLE>
<CAPTION>
                                                                       Page
<S>                                                                    <C>
Independent Accountant's Report                                        F - 1

Statements of Financial Position                                       F - 2

Statements of Operations                                               F - 3

Statements of Cash Flow                                                F - 4

Statements of Changes in Stockholders' Equity                          F - 5

Notes to Financial Statements                                          F - 6
</TABLE>


                                       -i-
<PAGE>
                         INDEPENDENT ACCOUNTANT'S REPORT


To the Board of Directors

KID CASTLE EDUCATIONAL CORPORATION
  (Formerly King Ball International Technology Corporation)
Taipei, Taiwan, R.O.C.


We have reviewed the accompanying statements of financial position of Kid Castle
Educational Corporation (Company) as of September 30, 2002 and the related
statements of operations, changes in stockholders' equity and cash flows for the
three-month period ended September 30, 2002. These financial statements are the
responsibility of the Company's management.

We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of inquiries of persons responsible for
financial and accounting matters and analytical procedures applied to financial
data. It is substantially less in scope than an audit in accordance with
generally accepted auditing standards generally accepted in the United States of
America, the objective of which is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, we do not express such an
opinion.

Based on our review, we are not aware of any material modifications that should
be made to the accompanying consolidated financial statements in order for them
to be in conformity with generally accepted accounting principles in the United
States of America.

The June 30, 2002 financial statements of the Company were audited by other
accountants, whose report dated September 27, 2002, stated an unqualified
opinion and that the financial statements were presented in accordance with
accounting standards generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 5 to the
financial statements, the Company's ability to exist as a going concern relies
on its ability to raise adequate financing. Those conditions raise substantial
doubt about its ability to continue as a going concern. Management's plans
regarding those matters are also described in Note 5. The financial statements
do not include any adjustments that might result from the outcome of this
uncertainty.


April 4, 2003
San Diego, California


                                       F-1
<PAGE>
                       KID CASTLE EDUCATIONAL CORPORATION
            (FORMERLY KING BALL INTERNATIONAL TECHNOLOGY CORPORATION)

                        STATEMENTS OF FINANCIAL POSITION

<TABLE>
<CAPTION>
                                                     September 30,
                                                         2002
                                                      (Unaudited)  June 30, 2002
                                                     ------------  -------------
<S>                                                  <C>           <C>
                                     ASSETS
Current Assets
    Cash and cash equivalents                         $         0   $         0

    Other receivables                                           0             0

            Total Current Assets                                0             0

Fixed Assets
    Property, furniture and equipment (net)                     0             0

           Total Fixed Assets                                   0             0

Other Assets                                                    0             0

    Total Assets                                      $         0   $         0

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
    Accounts payable and accrued expenses             $    10,000   $     4,000
    Payable to affiliate                                        0             0

              Total Current Liabilities                    10,000         4,000

Stockholders' Equity
    Common stock, no par value, 25,000,000
         shares authorized, 3,120,829 and 100,484
         issued and outstanding,respectively               55,767        55,767

    Additional paid in capital                          1,381,248       881,248

    Retained deficit                                   (1,447,015)     (941,015)

    Total Stockholders' Equity                            (10,000)       (4,000)

    Total Liabilities and Stockholders' Equity        $         0   $         0
</TABLE>


                See Accompanying Notes and Accountants' Report


                                       F-2
<PAGE>
                       KID CASTLE EDUCATIONAL CORPORATION
            (FORMERLY KING BALL INTERNATIONAL TECHNOLOGY CORPORATION)

                            STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                             Three Months Ended
                                               September 30,       September 30,
                                                    2002               2001
                                             ------------------    -------------
<S>                                          <C>                   <C>
Sales, net                                       $         0        $         0
Cost of sales                                              0                  0
    Gross profit                                           0                  0

Selling expenses                                           0                  0
General and administrative expenses                  506,000              3,250
    Income (loss) from operations                   (506,000)            (3,250)

Other (Income) Expense
    Interest income                                        0                  0
    Interest expense                                       0                  0
    Miscellaneous                                          0                  0
    Total Other (Income) Expense                           0                  0
    Income (loss)  before income taxes              (506,000)            (3,250)

Provision for income taxes                                 0                  0

    Net income (loss)                            ($  506,000)       ($    3,250)

    Net loss per share (basic and diluted)
        Basic                                    ($     0.31)       ($     0.14)
        Diluted                                  ($     0.31)       ($     0.14)

    Weighted average number of shares
        Basic                                      1,610,242             22,806
        Diluted                                    1,610,242             22,806
</TABLE>


                See Accompanying Notes and Accountants' Report


                                       F-3
<PAGE>
                        KID CASTLE EDUCATIONAL CORPORATION
            (FORMERLY KING BALL INTERNATIONAL TECHNOLOGY CORPORATION)

                             STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                    Three Months
                                                        Ended
                                                    September 30,  September 30,
                                                         2002           2001
                                                    -------------  -------------
<S>                                                 <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net Income (loss)                                  ($506,000)     ($  3,250)

Adjustments to reconcile net loss to net cash
used in operating activities:
   Depreciation                                               0              0
   (Decrease) Increase in accounts
   payable and accrued expenses                           6,000          1,500
   (Decrease) Increase in income taxes payable                0              0
   Total Adjustments                                      6,000          1,500
   Net cash provided by (used in) operations           (500,000)        (1,750)


CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of fixed assets                                   0              0
   Net cash used in investing activities                      0              0


CASH FLOWS FROM FINANCING ACTIVITIES
   Advance by affiliate                                       0          1,750
   Sale of stock                                        500,000              0

   Net cash provided by financing activities            500,000          1,750

   Net change in cash and cash equivalents                    0              0
   Cash and cash equivalents at beginning of year             0              0

   Cash and cash equivalents at end of year           $       0      $       0

   Supplemental cash flow disclosures:
      Income tax payments                             $       0      $       0
      Interest payments                               $       0      $       0
</TABLE>


                See Accompanying Notes and Accountants' Report


                                       F-4
<PAGE>
                       KID CASTLE EDUCATIONAL CORPORATION
            (FORMERLY KING BALL INTERNATIONAL TECHNOLOGY CORPORATION)

                  STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                    September 30,      June 30
                                                         2002            2002
                                                    -------------   ------------
<S>                                                 <C>             <C>
Common Stock Outstanding
   Balance at beginning of period                        100,484      4,982,735
   Retroactive effect of reverse stock split, 1:50            --     (4,882,251)
   Sale of Regulation S common shares                  3,020,345              0

   Balance at end of period                            3,120,829        100,484

Retained deficits
   Balance at beginning of period                    ($  941,015)   ($  938,515)
   Net income (loss)                                    (506,000)        (2,500)
   Balance at end of period                           (1,447,015)      (941,015)

Common stock, no par value
   Balance at beginning of period                         55,767         55,767
   Issuance of common stock                                    0              0

   Balance at end of period                               55,767         55,767


Additional paid in capital
   Balance at beginning of period                        881,248        881,248
   Issuance of common stock, Reg S
      stock 3,020,345 shares                             500,000              0

   Balance at end of period                            1,381,248        881,248

Total stockholders' equity at end of period          ($   10,000)   ($    4,000)
</TABLE>


                See Accompanying Notes and Accountants' Report


                                       F-5
<PAGE>
                       KID CASTLE EDUCATIONAL CORPORATION
            (FORMERLY KING BALL INTERNATIONAL TECHNOLOGY CORPORATION)

                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2002

Note 1 - NATURE OF OPERATIONS

Kid Castle Educational Corporation (the Company), formerly King Ball
International Technology Corporation and Omni Doors, Inc., was incorporated on
July 19, 1985 under the laws of the state of Florida. Prior to June 30, 1998,
the Company's primary business activity was the assembly and distribution of
industrial metal doors in Florida. Effective June 30, 1998, the Company ceased
all operations.

On August 22, 2002, the Company changed its name to Kid Castle Educational
Corporation, and on October 1, 2002, it acquired all of the issued and
outstanding stock of Hi Goal Developments Limited, a Cayman Island company
("Hi Goal") pursuant to an exchange agreement dated as of October 1, 2002, by
and among Hi Goal, the shareholders of Hi Goal, Kuo-An Wang and the Company.
Hi Goal based in Taipei, Taiwan, is the parent company of Kid Castle
Technology Corp. Ltd. (Taiwan) and Kid Castle Educational Software (Shanghai)
Corp. Ltd. (China).

Pursuant to the exchange agreement, Hi Goal became a wholly owned subsidiary of
the Company, and in exchange for the Hi Goal shares, the Company issued
11,880,000 shares of its common stock to the shareholders of Hi Goal,
representing eighty percent (80%) of the Company's outstanding stock at that
time.

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Unaudited Interim Financial Information - The accompanying financial statements
have been prepared by Kid Castle Education Corporation, pursuant to the rules
and regulations of the Securities and Exchange Commission (the "SEC") Form
10-QSB and Item 310 of regulation S-B, and generally accepted accounting
principles for interim financial reporting. These financial statements are
unaudited and, in the opinion of management, include all adjustments (consisting
of normal recurring adjustments and accruals) necessary for a fair presentation
of the statement of financial position, operations, and cash flows for the
periods presented. Operating results for the three months ended September 30,
2002 are not necessarily indicative of the results that may be expected for the
fiscal year ending June 30, 2003, or any future period, due to seasonal and
other factors. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
policies have been omitted in accordance with the rules and regulations of the
SEC. These financial statements should be read in conjunction with the audited
financial statements and accompanying notes, included in the Company's Annual
Report for the year ended June 30, 2002.


                                       F-6
<PAGE>
                       KID CASTLE EDUCATIONAL CORPORATION
            (FORMERLY KING BALL INTERNATIONAL TECHNOLOGY CORPORATION)

                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2002

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Cash and Cash Equivalents - Cash equivalents are stated at cost. Cash
equivalents are highly liquid investments readily convertible into cash with an
original maturity of three months or less and consist of time deposits with
commercial banks.

Fixed Assets - Property and equipment are stated at cost less accumulated
depreciation. Expenditures for major additions and improvements are capitalized
and minor replacements, maintenance and repairs are charged to expense as
incurred. Whenever an asset is retired or disposed of, its cost and accumulated
depreciation or amortization is removed from the respective accounts and the
resulting gain or loss is credited or charged to income.

Depreciation is computed using the straight-line and declining-balance methods
over the following estimated useful lives:

      Buildings and improvements                15 to 60 years
      Automobiles                               4 to 6 years
      Machinery and equipment                   5 to 12 years
      Furniture and Fixtures                    7 years

Contingencies - Certain conditions may exist as of the date the financial
statements are issued, which may result in a loss to the Company but which will
only be resolved when one or more future events occur or fail to occur. The
Company's management and legal counsel assess such contingent liabilities, and
such assessment inherently involves an exercise of judgment. In assessing loss
contingencies related to legal proceedings that are pending against the Company
or unasserted claims that may result in such proceedings, the Company's legal
counsel evaluates the perceived merits of any legal proceedings or unasserted
claims as well as the perceived merits of the amount of relief sought or
expected to be sought.

If the assessment of a contingency indicates that it is probable that a material
loss has been incurred and the amount of the liability can be estimated, then
the estimated liability would be accrued in the Company's financial statements.
If the assessment indicates that a potential material loss contingency is not
probable but is reasonably possible, or is probable but cannot be estimated,
then the nature of the contingent liability, together with an estimate of the
range of possible loss if determinable and material would be disclosed.


                                       F-7
<PAGE>
                       KID CASTLE EDUCATIONAL CORPORATION
            (FORMERLY KING BALL INTERNATIONAL TECHNOLOGY CORPORATION)

                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2002

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Loss contingencies considered to be remote by management are generally not
disclosed unless they involve guarantees, in which case the guarantee would be
disclosed. As of September 30, 2002 and the date of our report, management has
informed us that there are no matters that warrant disclosure in the financial
statements.

Estimates - The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make certain 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 could differ from those estimates. Significant
estimates include collectibility of accounts receivable, accounts payable, sales
returns and recoverability of long-term assets.

Earnings Per Share - Earnings per share are based on the weighted average number
of shares of common stock and common stock equivalents outstanding during each
period. Earnings per share are computed using the treasury stock method. The
options to purchase common shares are considered to be outstanding for all
periods presented but are not calculated as part of the earnings per share.

Income Taxes - Income taxes have been provided based upon the tax laws and rates
in the countries in which operations are conducted and income is earned. The
income tax rates imposed by the taxing authorities vary. Taxable income may vary
from pre-tax income for financial accounting purposes. There is no expected
relationship between the provision for income taxes and income before income
taxes because the countries have different taxation rules, which vary not only
to nominal rates but also in terms of available deductions, credits and other
benefits. Deferred tax assets and liabilities are recognized for the anticipated
future tax effects of temporary differences between the financial statement
basis and the tax basis of the Company's assets and liabilities using the
applicable tax rates in effect at year end as prescribed by SFAS 109 "Accounting
for Income Taxes".

New Accounting Pronouncements - In July 2001, the FASB issued SFAS 141 "Business
Combinations". SFAS 141 requires that all business combinations initiated or
completed after June 30, 2001 be accounted for using the purchase method of
accounting. The statement provides for recognition and measurement of intangible
assets separate from goodwill. The Company adopted SFAS 141 as of July 1, 2001.
The adoption of the new statement had no effect on the financial statements.


                                       F-8
<PAGE>
                       KID CASTLE EDUCATIONAL CORPORATION
            (FORMERLY KING BALL INTERNATIONAL TECHNOLOGY CORPORATION)

                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2002

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

In July 2001, the FASB issued SFAS 142, "Goodwill and Other Intangible Assets".
Under SFAS 142, goodwill and intangible assets with indefinite lives are no
longer amortized but are reviewed at least annually for impairment. The
amortization provisions of SFAS 142 apply to goodwill and intangible assets
acquired after June 30, 2001. With respect to Goodwill and intangible assets
acquired prior to July 1, 2001, the Company is required to and has adopted SFAS
142 effective January 1, 2002. The adoption of this pronouncement did not have a
material effect to the Company's financial position or results of operations.

In August 2001, the FASB issued SFAS 144 "Accounting for the Impairment or
Disposal of Long-Lived Assets". SFAS supersedes SFAS 121 and the accounting and
reporting provisions of APB 30. SFAS 144 provides guidance for determining
whether long-lived assets should be tested for impairment and specific criteria
for classifying assets to be disposed of as held for sale. The statement is
effective for fiscal years beginning after December 15, 2001, and the Company
has adopted the statement as of January 1, 2002. Management does not expect the
adoption of this statement to have a material effect on the Company's
consolidated financial position or results of operations.

Note 3 - COMMON STOCK

On August 19, 2002 the Company effected a reverse stock split of one share for
every fifty issued and outstanding share of common stock. The effect of the
stock split is reflected for all periods presented.

On August 16, 2002 the Company entered into an agreement to sell 3,020,345
shares of restricted common stock for a total price of $500,000. The shares were
sold according to Regulation S, Rule 902(k)(1) of the securities act. The
closing and issuance of these shares were subsequent to the reverse stock split
on August 19, 2002.


                                       F-9
<PAGE>
                       KID CASTLE EDUCATIONAL CORPORATION
            (FORMERLY KING BALL INTERNATIONAL TECHNOLOGY CORPORATION)

                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2002

Note 4 - SUBSEQUENT EVENT

On October 1, 2002 the Company acquired all of the issued and outstanding stock
of Hi Goal Developments Limited (Hi Goal), a Cayman Islands company, pursuant to
an exchange agreement dated October 1, 2002.

Pursuant to the Exchange Agreement, Hi Goal became a wholly owned subsidiary of
the Company and in exchange for the Hi Goal shares the Company issued 11,880,000
shares of its common stock to the shareholders of Hi Goal. These shares
represent 80% of the issued and outstanding stock after the exchange.

Note 5 - GOING CONCERN

The accompanying financial statements have been prepared assuming the Company
will continue as a going concern. Due to the Company's change in ownership and
related transfer of all its operating activities, the Company had no continuing
operations effective July 1, 1998. Since coming under new control, the Company
had been dependent upon payments from related parties for working capital, has
had no independent income generating operations and has a stockholders' deficit
as of September 30, 2002. These factors raise substantial doubt about the
Company's ability to continue as a going concern. Management is in the process
of exploring business opportunities which they believe will permit the Company
to attain profitable operating results and allow it to continue as a going
concern.

However, at this time, the Company is fully dependant on future sales of
securities or upon advances of loans from significant stockholders or corporate
officers to provide sufficient working capital to continue in existence.

There is no assurance that the Company will be able to obtain additional funding
through the sale of additional securities or, that such funding, if available,
will be obtained on terms favorable to or affordable by the Company. However, it
is the intent of management and significant stockholders to provide sufficient
working capital necessary for the Company to continue in existence.


                                      F-10
<PAGE>
                       KID CASTLE EDUCATIONAL CORPORATION
            (FORMERLY KING BALL INTERNATIONAL TECHNOLOGY CORPORATION)


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

      The information contained in this Item 2, Management's Discussion and
Analysis or Plan of Operation, contains "forward looking statements" within the
meaning of Section 27A of the Securities Act 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. Actual results may
materially differ from those projected in the forward-looking statements as a
result of certain risks and uncertainties set forth in this report. Although
management believes that the assumptions made and expectations reflected in the
forward looking statements are reasonable, there is no assurance that the
underlying assumptions will, in fact, prove to be correct or that actual future
results will not be different from the expectations expressed in this report.


RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001


REVENUE

      The Company had no revenues for the three months ended September 30, 2002
and 2000, respectively.

      Direct general and administrative expenses for the three month periods
ended September 30, 2002 and 2001 were approximately $500,000 and $3,250,
respectively. The increase in general and administrative expenses was a direct
result of accounting and legal fees in furtherance of merger and acquisition
activities. During the three months ended September 30, 2002 and 2001,
respectively, the Company realized depreciation expense of approximately $6,000
and $1,500 on office furniture and computer equipment. The Company realized a
net loss of approximately $(506,000) and $(3,250) for the respective three month
periods.

      The Company does not expect to generate any meaningful revenue or incur
significant operating expenses unless and until such time that the Company
begins or acquires meaningful operations.


LIQUIDITY AND CAPITAL RESOURCES

      In August, 2002, we received $500,000 gross proceeds from a private
offering of our common stock.

      At September 30, 2002, the Company had working capital of $0.

      It is the intent of management and significant stockholders to provide
sufficient working capital necessary to support and preserve the integrity of
the corporate entity. However, there is


                                      -3-
<PAGE>
no legal obligation for either management or significant stockholders to provide
additional future funding. Should this pledge fail to provide financing, the
Company has not identified any alternative sources. Consequently, there is
substantial doubt about the Company's ability to continue as a going concern.

      The Company's need for capital may change dramatically as a result of any
business acquisition or combination transaction. There can be no assurance that
the Company will identify any such business, product, technology or company
suitable for acquisition in the future. Further, there can be no assurance that
the Company would be successful in consummating any acquisition on favorable
terms or that it will be able to profitably manage the business, product,
technology or company it acquires.

      The Company intends to locate and combine with an existing, privately-held
company which is profitable or, in management's view, has growth potential,
irrespective of the industry in which it is engaged. However, the Company does
not intend to combine with a private company which may be deemed to be an
investment company subject to the Investment Company Act of 1940. A combination
may be structured as a merger, consolidation, exchange of the Company's common
stock for stock or assets or any other form which will result in the combined
enterprise's becoming a publicly-held corporation.

      Pending negotiation and consummation of a combination, the Company
anticipates that it will have, aside from carrying on its search for a
combination partner, no business activities, and, thus, will have no source of
revenue. Should the Company incur any significant liabilities prior to a
combination with a private company, it may not be able to satisfy such
liabilities as are incurred.

      If the Company's management pursues one or more combination opportunities
beyond the preliminary negotiations stage and those negotiations are
subsequently terminated, it is foreseeable that such efforts will exhaust the
Company's ability to continue to seek such combination opportunities before any
successful combination can be consummated. In that event, the Company's common
stock will become worthless and holders of the Company's common stock will
receive a nominal distribution, if any, upon the Company's liquidation and
dissolution.


COMBINATION SUITABILITY STANDARDS

      In its pursuit for a combination partner, the Company's management intends
to consider only combination candidates which are profitable or, in management's
view, have growth potential. The Company's management does not intend to pursue
any combination proposal beyond the preliminary negotiation stage with any
combination candidate which does not furnish the Company with audited financial
statements for at least its most recent fiscal year and unaudited financial
statements for interim periods subsequent to the date of such audited financial
statements, or is in a position to provide such financial statements in a timely
manner. The Company will, if necessary funds are available, engage attorneys
and/or accountants in its efforts to investigate a combination candidate and to
consummate a business combination. The Company may require payment of fees by
such combination candidate to fund the investigation of such candidate. In the
event such a combination candidate is engaged in a high technology


                                       -4-
<PAGE>
business, the Company may also obtain reports from independent organizations of
recognized standing covering the technology being developed and/or used by the
candidate. The Company's limited financial resources may make the acquisition of
such reports difficult or even impossible to obtain and, thus, there can be no
assurance that the Company will have sufficient funds to obtain such reports
when considering combination proposals or candidates. To the extent the Company
is unable to obtain the advice or reports from experts, the risks of any
combined enterprise's being unsuccessful will be enhanced. Furthermore, to the
knowledge of the Company's officers and directors, neither the candidate nor any
of its directors, executive officers, principal shareholders or general
partners, for the previous five (5) Fiscal periods,:

      (1)   will not have been convicted of securities fraud, mail fraud, tax
            fraud, embezzlement, bribery, or a similar criminal offense
            involving misappropriation or theft of funds, or be the subject of a
            pending investigation or indictment involving any of those offenses;

      (2)   will not have been subject to a temporary or permanent injunction or
            restraining order arising from unlawful transactions in securities,
            whether as issuer, underwriter, broker, dealer, or investment
            advisor, may be the subject of any pending investigation or a
            defendant in a pending lawsuit arising from or based upon
            allegations of unlawful transactions in securities; or

      (3)   will not have been a defendant in a civil action which resulted in a
            final judgement against it or him awarding damages or rescission
            based upon unlawful practices or sales of securities.

      The Company's officers and directors will make these determinations by
asking pertinent questions of the management of prospective combination
candidates. Such persons will also ask pertinent questions of others who may be
involved in the combination proceedings. However, the officers and directors of
the Company will not generally take other steps to verify independently
information obtained in this manner which is favorable. Unless something comes
to their attention which puts them on notice of a possible disqualification
which is being concealed from them, such persons will rely on information
received from the management of the prospective combination candidate and from
others who may be involved in the combination proceedings.


ITEM 3.     CONTROLS AND PROCEDURES

      Within the 90 days prior to the date of filing this Quarterly Report on
Form 10-QSB, the Company carried out an evaluation, under the supervision and
with the participation of the Company's management, including the Chief
Executive Officer and the Chief Financial Officer, of the effectiveness of the
design and operation of the Company's disclosure controls and procedures
pursuant to Exchange Act Rule 13a-14. Based upon that evaluation, the Chief
Executive Officer and the Chief Financial Officer concluded that the Company's
disclosure controls and procedures are effective in timely alerting them to
material information relating to the Company required to be included in the
Company's periodic SEC filings.


                                       -5-
<PAGE>
                                    PART II.
                                OTHER INFORMATION


ITEM 5.     OTHER EVENTS

      On August 19, 2002, the Company's Board of Directors effected a one (1)
for fifty (50) reverse split of the Company's issued and outstanding stock. The
result of this action was to reduce the issued and outstanding shares of common
stock from 4,982,735 to 99,655. The effect of this action is reflected in the
accompanying financial statements as of the first day of the first period
presented.

      In August 2002, the Company issued 3,020,345 restricted shares of common
stock to purchasers in a private offering resulting in gross proceeds of
$500,000. No commissions were paid. All of the purchasers in the private
offering were non "U.S. persons" as such term is defined in Rule 902(k)(1) of
Regulation S. The issuance of these shares was exempt from the registration
requirements of the securities act under Regulation S as a transaction involving
an offer and sale made outside of the United States.

      Pursuant to an exchange agreement effective on October 1, 2002, the
Company, agreed to issue to the stockholders of Higoal Developments Limited
11,880,000 authorized but unissued shares of its common stock in exchange of
100% of the issued and fully paid up capital of Higoal Developments Limited.

      As a result of the acquisition, the former stockholders of Higoal
Developments Limited hold a majority interest in the Company. Generally
accepted accounting principles require in certain circumstances that a company
whose stockholders retain the majority voting interest in the combined business
to be treated as the acquirer for financial reporting purposes. Accordingly,
the acquisition has been accounted for as a "reverse acquisition" whereby
Higoal Developments Limited is deemed to have purchased the Company. However,
the Company remains the legal entity and the Registrant for Securities and
Exchange Commission reporting purposes.

      On November 15, 2002, the Company's Board of Directors determined to
change the Company's fiscal year end from June 30 to December 31, to coincide
with the fiscal year end of the accounting acquirer, Higoal Developments
Limited. The financial statements and management's discussion and analysis of
Higoal Developments Limited for the quarterly period ended September 30, 2002
are filed herewith.
<PAGE>

                       KID CASTLE EDUCATIONAL CORPORATION
                   (FORMERLY KING BALL TECHNOLOGY CORPORATION)

                        FINANCIAL STATEMENTS (UNAUDITED)

                               SEPTEMBER 30, 2002
<PAGE>
                           HIGOAL DEVELOPMENTS LIMITED

                         PART I - FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS


                                      INDEX

<TABLE>
<CAPTION>
                                                          Page
                                                          ----
<S>                                                       <C>
Consolidated Balance Sheet                                F - 2

Consolidated Statements of Operations                     F - 3

Consolidated Statements of Comprehensive Loss/Income      F - 4

Consolidated Statements of Cash Flows                     F - 5

Notes to Consolidated Financial Statements                F - 6
</TABLE>





                                      - i -
<PAGE>
                           HIGOAL DEVELOPMENTS LIMITED
                           CONSOLIDATED BALANCE SHEET

  (Expressed in US Dollars)
<TABLE>
<CAPTION>
                                                      SEPTEMBER 30,
                                                         2002
                                                      ------------
                                                      (UNAUDITED)
<S>                                                  <C>
ASSETS

CURRENT ASSETS

  Cash and bank balances                             $   100,040
  Bank fixed deposits - pledged                          114,170
  Accounts receivable, net                             2,134,461
  Inventories, net (Note 3)                              924,331
  Other receivables (Note 4)                             765,549
  Prepayments and other current assets (Note 5)          366,793
  Deferred income tax assets                           1,014,002
                                                     -----------

TOTAL CURRENT ASSETS                                   5,419,346

Deferred income tax assets                                72,247
Long-term investment                                      14,360
Interest in an associate (Note 6)                        307,840
Amount due from stockholder/director (Note 7)            117,549
Property, plant and equipment, net                     1,724,420
Intangible assets, net of amortization (Note 8)        1,163,618
Deposits paid                                             92,210
TOTAL ASSETS                                         $ 8,911,590
                                                     ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

  Accounts payable                                   $ 1,648,809
  Accrued expenses                                       310,896
  Amounts due to stockholders (Note 9)                   602,378
  Bank borrowings - maturing within one year           1,365,763
  Other payables                                         209,186
  Receipts in advance (Note 10)                        1,554,719
  Income taxes payable                                   109,145
                                                     -----------

TOTAL CURRENT LIABILITIES                              5,800,896

Bank borrowings - maturing after one year                618,472
Deposits received                                        443,711
Provision for pension fund                                73,514

TOTAL LIABILITIES                                      6,936,593
                                                    -----------
STOCKHOLDERS' EQUITY

 Common stock, par value US$0.3 per share:
    160,000,000 shares authorized;
    11,880,000 shares issued and outstanding           3,564,000
  Additional paid-in capital                           1,294,901
  Legal reserve                                           30,642
  Translation reserve                                   (177,043)
  Accumulated deficits                                (2,737,503)
                                                     -----------
                                                       1,974,997
                                                     -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY           $ 8,911,590
                                                     ===========
</TABLE>

      See accompanying Notes to Unaudited Consolidated Condensed Financial
                                  Statements.
                                       F-2
<PAGE>
                           HIGOAL DEVELOPMENTS LIMITED
                      CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in US Dollars)
<TABLE>
<CAPTION>
                                                   THREE MONTHS ENDED                    NINE MONTHS ENDED
                                                       SEPTEMBER 30,                         SEPTEMBER 30,
                                               -----------------------------      --------------------------------
                                                  2002             2001               2002                2001
                                               -----------     -------------      -------------        -----------
                                               (UNAUDITED)      (UNAUDITED)        (UNAUDITED)         (UNAUDITED)
<S>                                            <C>             <C>                <C>                  <C>
REVENUE

   sales of goods                              $ 1,935,374     $   2,113,289      $   4,542,775        $ 4,500,634
   franchising income                              375,138           213,325            589,850            433,770
                                               -----------     -------------      -------------        -----------
                                                 2,310,512         2,326,614          5,132,625          4,934,404
                                               -----------     -------------      -------------        -----------

OPERATING COST

   cost of goods sold                           (1,318,261)         (609,651)        (2,343,911)        (1,937,109)
   cost of servicing                               (25,814)          (35,055)          (280,089)          (211,144)
                                               -----------     -------------      -------------        -----------

                                                (1,344,075)         (644,706)        (2,624,000)        (2,148,253)
                                               -----------     -------------      -------------        -----------
GROSS PROFIT                                       966,437         1,681,908          2,508,625          2,786,151

                                                    70,618            77,593            301,373            336,851
OTHER OPERATING INCOME

                                                  (111,843)           (5,212)          (174,705)           (56,441)
ADVERTISING COSTS

OTHER OPERATING EXPENSES                        (1,157,896)         (932,211)        (3,145,836)        (2,797,433)
                                               -----------     -------------      -------------        -----------

                                                  (232,684)          822,078           (510,543)           269,128
(LOSS)/PROFIT FROM OPERATIONS

INTEREST INCOME                                        875               164              4,530              1,671

INTEREST EXPENSES                                  (79,839)          (24,766)          (199,711)           (82,779)

SHARE OF PROFIT OF AN ASSOCIATE                      2,263                --              6,790                 --
                                               -----------     -------------      -------------        -----------
(LOSS)/PROFIT BEFORE
   INCOME TAXES                                   (309,385)          797,476           (698,934)           188,020

INCOME TAXES                                        62,656          (173,052)           136,648            (39,709)
                                               -----------     -------------      -------------        -----------

NET (LOSS)/PROFIT AFTER
   INCOME TAXES                                $  (246,729)    $     624,424      $    (562,286)       $   148,311
                                               ===========     =============      =============        ===========

(LOSS)/EARNINGS PER SHARE
   - BASIC AND DILUTED                         $    (0.021)    $       0.072      $      (0.047)       $     0.017
                                               ===========     =============      =============        ===========

WEIGHTED AVERAGE NUMBER
   OF COMMON SHARES
   OUTSTANDING FOR CALCULATION
   OF BASIC AND DILUTED LOSS/
   EARNINGS PER SHARE                           11,880,000         8,640,000         11,880,000          8,640,000
                                               ===========     =============      =============        ===========
</TABLE>
      See accompanying Notes to Unaudited Consolidated Condensed Financial
                                  Statements.
                                       F-3
<PAGE>
                           HIGOAL DEVELOPMENTS LIMITED
             CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME


(EXPRESSED IN US DOLLARS)
<TABLE>
<CAPTION>
                                                Three Months Ended                     Nine Months Ended
                                                   September 30,                         September 30,
                                         --------------------------------       -------------------------------
                                              2002               2001               2002               2001
                                         -------------       -------------      ------------      --------------
                                          (Unaudited)         (Unaudited)       (Unaudited)        (Unaudited)
<S>                                      <C>                 <C>                <C>               <C>
NET (LOSS)/INCOME                        $    (246,729)      $     624,424      $   (562,286)     $      148,311


OTHER COMPREHENSIVE
  INCOME/(LOSS)

  Foreign currency
     Translation adjustment                    (42,560)            (26,893)            5,991             (61,701)
                                         -------------       -------------      ------------      --------------


COMPREHENSIVE (LOSS)/INCOME              $    (289,289)      $     597,531      $   (556,295)    $        86,610
                                         =============       =============      ============     ===============
</TABLE>




      See accompanying Notes to Unaudited Consolidated Condensed Financial
                                  Statements.
                                       F-4
<PAGE>
                           HIGOAL DEVELOPMENTS LIMITED
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

(EXPRESSED IN US DOLLARS)

<TABLE>
<CAPTION>
                                                                Nine Months Ended September 30,
                                                                -------------------------------
                                                                   2002                2001
                                                                -----------         -----------
                                                                (Unaudited)         (Unaudited)
<S>                                                             <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES

Net (loss)/profit                                               $ (562,286)        $   148,311
   Adjustments to reconcile net (loss)/profit to net cash
      used in operating activities
   Depreciation of property, plant and equipment                    68,165              59,573
   Loss on disposal of property, plant and equipment                    --              15,606
   Share of profit of an associate                                  (6,790)                 --
   Allowance for doubtful debts                                    136,543              43,605
   Allowance for obsolete inventories                               48,320             663,290
   Amortization of intangible assets                               117,577             117,704
   Non-cash compensation for directors' salaries                        --              80,333
   (Increase)/decrease in:
      Accounts receivable                                       (1,070,783)         (1,570,365)
      Inventories                                                 (136,850)           (815,811)
      Other receivables                                            373,092            (555,831)
      Prepayments and other current assets                         172,665            (560,267)
      Deferred income tax assets                                  (246,916)           (269,796)
      Deposits paid                                                  8,584              (7,462)
   Increase/(decrease) in:
      Accounts payable                                             158,131             207,693
      Accrued expenses                                             (47,509)             70,848
      Other payables                                                53,843               4,317
      Receipts in advance                                          514,054             207,017
      Income taxes payable                                        (146,306)            309,584
      Deposits received                                            127,974             202,321
      Provision for pension cost                                    39,807              19,637
                                                                ----------          ----------

NET CASH USED IN OPERATING ACTIVITIES                             (398,685)         (1,629,693)
                                                                ----------          ----------
CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment                          (78,618)                 --
Amount due from stockholder/director                               (39,161)                 --
Bank fixed deposits - pledged                                       23,349                  --
Purchase of long term investment                                        --             (14,877)
Purchase of business, net of cash acquired                              --            (438,530)
                                                                ----------          ----------

NET CASH USED IN INVESTING ACTIVITIES                              (94,430)           (453,407)
                                                                ----------          ----------

</TABLE>


      See accompanying Notes to Unaudited Consolidated Condensed Financial
                                  Statements.
                                       F-5
<PAGE>
                           HIGOAL DEVELOPMENTS LIMITED
                CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

(EXPRESSED IN US DOLLARS)
<TABLE>
<CAPTION>
                                                        NINE MONTHS ENDED SEPTEMBER 30,
                                                       --------------------------------
                                                           2002                 2001
                                                       (UNAUDITED)          (UNAUDITED)
                                                       -----------          -----------
<S>                                                   <C>                 <C>
CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of mortgage loan                            $   (38,103)        $        --
Proceeds from bank term loans and overdraft                18,845             324,420
Repayment of capital element of capital leases            (28,523)            (25,456)
Amounts due to stockholders                               608,671                  --
Proceeds from issuance of common stock                         --           1,800,060
                                                      -----------         -----------
NET CASH PROVIDED BY FINANCING ACTIVITIES                 560,890           2,099,024
                                                      -----------         -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS                  67,775              15,924

EFFECT OF EXCHANGE RATE CHANGES ON CASH
   AND CASH EQUIVALENTS                                      (577)             (1,104)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR             32,842              16,973
                                                      -----------         -----------

CASH AND CASH EQUIVALENTS AT END OF YEAR              $   100,040         $    31,793
                                                      ===========         ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Interest paid                                         $   210,128         $    91,252
Income taxes paid                                         254,116                  --
                                                      ===========         ===========
</TABLE>


SUPPLEMENTAL DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTIONS:

During the nine months ended September 30, 2001, the Group purchased an
associate for $300,000 to be satisfied by provision of services to the
associate.

      See accompanying Notes to Unaudited Consolidated Condensed Financial
                                  Statements.
                                       F-6
<PAGE>
                           HIGOAL DEVELOPMENTS LIMITED

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2002 AND 2001

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

         Kid Castle Internet Technologies Limited ("KCIT") was incorporated on
December 17, 1999 under the provisions of the Company Law of the Republic of
China ("Taiwan") as a limited liability company which was originally named as
Wonderland Internet Technologies Limited. KCIT is engaged in the business of
children education focusing on the English language. The business comprises
publication, sales and distribution of related books, magazines, audio and video
tapes and compact disc, franchising and sales of merchandises complementary to
the business.

         KCIT commenced operations in April 2000 when it acquired the above
business from a related company, Kid Castle Enterprises Limited ("KCE") which
was owned by two directors and stockholders of Higoal Developments Limited (the
"Company").

         On March 9, 2001, KCIT incorporated a wholly-owned subsidiary, Premier
Holding Investment Property Limited ("Premier") incorporated in the British
Virgin Islands, which held the entire common stock of the Company incorporated
in the Cayman Islands on March 8, 2001. On September 10, 2001, the Company
established a wholly owned subsidiary, Kid Castle Educational Software
Development Company Limited ("KCES") in the People's Republic of China (the
"PRC"). The Company, KCIT and their subsidiaries collectively are referred to as
the Group. The Group principally operates in Taiwan and is expanding its
operations in the PRC.

         During the period ended September 30, 2002, KCIT has undertaken a
series of group restructuring. The wholly-owned subsidiary of KCIT, Premier,
which held the entire issued common stock of the Company has been removed from
the Group. Thereafter, KCIT became an immediate holding company of the Company.

         On September 18, 2002, the Company issued 11,880,000 common stock to
the stockholders of KCIT in exchange of 100% of the issued and fully paid up
11,880,000 common stock of KCIT. As a result of this restructuring, KCIT is now
a wholly-owned subsidiary of the Company. This transaction was a reorganization
as there was no change in the stockholders of the Company and KCIT before and
after the transaction. The historical consolidated financial statements prior to
September 18, 2002 are those of KCIT.

         As discussed in Note 11 headed "Subsequent Events" to the financial
statements, pursuant to an exchange agreement effective on October 1, 2002, Kid
Castle Educational Corporation ("KCEC"), formerly King Ball International
Technology Limited Corporation, agreed to issue to the stockholders of the
Company 11,880,000 authorized but unissued shares of common stock of KCEC in
exchange of 100% of the issued and fully paid up capital of the Company.

         As a result of the acquisition, the former stockholders of the Company
hold a majority interest in the combined entity of KCEC. Generally accepted
accounting principles require in

                                      F-7
<PAGE>
                           HIGOAL DEVELOPMENTS LIMITED

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2002 AND 2001

certain circumstances that a company whose stockholders retain the majority
voting interest in the combined business to be treated as the acquirer for
financial reporting purposes. Accordingly, the acquisition has been accounted
for as a "reverse acquisition" whereby the Company is deemed to have purchased
KCEC. However, KCEC remains the legal entity and the Registrant for Securities
and Exchange Commission reporting purposes.

NOTE 2 - BASIS OF PRESENTATION

         The accompanying financial data as of September 30, 2002 and for the
three months ended and the nine months ended September 30, 2002 and 2001 have
been prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations. However, the Company believes
that the disclosures are adequate to make the information presented not
misleading. These financial statements should be read in conjunction with the
financial statements and the notes thereto included in KCIT's audited annual
financial statements for the year ended December 31, 2001.

         The preparation of financial statements in conformity with general
accepted accounting principles requires management to make estimates that affect
the reported amounts of assets, liabilities, revenues and expenses and the
disclosure of contingent assets and liabilities. Actual results could differ
from these estimates.

         In the opinion of Management, all adjustments (which include only
normal recurring adjustments) necessary to present fairly the financial position
as of September 30, 2002 and the results of operations for the three months
ended and the nine months ended September 30, 2002 and 2001, have been made. The
results of operations for the three months ended and the nine months ended
September 30, 2002 and 2001 are not necessarily indicative of the operating
results for the full year.

NOTE 3 - INVENTORIES

<TABLE>
<CAPTION>
                                               SEPTEMBER 30,
                                                  2002
                                                ---------
                                               (UNAUDITED)
<S>                                           <C>
Work in progress                              $    34,045
Finished goods and other merchandises           3,052,934
                                                ---------

                                                3,086,979
Less: Allowance for obsolete inventories       (2,162,648)
                                                ---------
                                              $   924,331
                                              ===========
</TABLE>

                                      F-8
<PAGE>
                           HIGOAL DEVELOPMENTS LIMITED

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2002 AND 2001


NOTE 4 - OTHER RECEIVABLES
<TABLE>
<CAPTION>
                                                                  SEPTEMBER 30,
                                                                      2002
                                                                    -------
                                                                   (UNAUDITED)
<S>                                                               <C>
Tax paid on behalf of landlord                                     $    754
Advances to staff                                                    78,573
Penalties receivable                                                 22,890
Other receivables                                                   210,057
                                                                    -------

Third parties                                                       312,274
Amount due from a related company - KCE (note i)                    222,823
Amount due from an associate - Global International Education
   Investment Ltd. (note ii)                                        230,452
                                                                    -------
                                                                   $765,549
                                                                   ========
</TABLE>


Notes:

(i)   The amount due from KCE is unsecured, carries interest at 2% per annum and
      has no fixed repayment term.

(ii)  The amount due from Global International Education Investment Ltd. is
      unsecured, carries interest at 6% per annum and has no fixed repayment
      term.


NOTE 5 - PREPAYMENTS AND OTHER CURRENT ASSETS
<TABLE>
<CAPTION>

                      SEPTEMBER 30,
                          2002
                       ----------
                      (UNAUDITED)
<S>                   <C>
Prepayments             $ 29,997
Temporary payments       336,542
Others                       254
                        --------
                        $366,793
                        ========
</TABLE>



                                       F-9
<PAGE>
                           HIGOAL DEVELOPMENTS LIMITED

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2002 AND 2001


NOTE 6 - INTEREST IN AN ASSOCIATE
<TABLE>
<CAPTION>

                                                  SEPTEMBER 30,
                                                      2002
                                                    --------
                                                   (UNAUDITED)
<S>                                               <C>
Global International Education Investment Ltd.
   ("Global International")
   Investment cost                                  $300,000
   Translation adjustment                              1,120
   Share of profit                                     6,720
                                                    --------
                                                    $307,840
                                                    ========
</TABLE>

         On May 16, 2001, the Group entered into an agreement with other
subscribers of Global International, a company incorporated in the British
Virgin Islands which is principally engaged in operation of kindergartens and
schools under the franchise of the Group in the PRC, whereby the Group is
required to be responsible for the management and operation of Global
International's English-teaching schools. In return, six shares of common stock
valued at $50,000 each of Global International were allotted to the Group. As
the six shares of common stock account for 15% equity interest in Global
International and the chairman of the Group has been appointed as one of the
members of the board of directors of Global International it has been determined
that the Group has significant influence and should therefore account for its
interest on the equity method.

         The cost of investment in Global International is accounted for in the
financial statements based on the amount of the cash per share that was
contributed by the other investors.

         Global International was at initial stage of operation during the nine
months ended September 30, 2001 and did not have significant results for that
period.

NOTE 7 - AMOUNT DUE FROM STOCKHOLDER/DIRECTOR

         The balance represents an amount due from a stockholder and officer of
the Company. The amount was loaned to the officer to finance his individual
investment in Global International. The loan is unsecured, carries interest at
6% per annum and has no fixed payment term, however, the Company expects it to
be repaid in full in 2003.

                                      F-10
<PAGE>
                           HIGOAL DEVELOPMENTS LIMITED

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2002 AND 2001


 NOTE 8 - INTANGIBLE ASSETS
<TABLE>
<CAPTION>
                                        SEPTEMBER 30,
                                           2002
                                        -----------
                                        (UNAUDITED)
<S>                                    <C>
GROSS CARRYING AMOUNT

Franchise                              $   977,108
Copyrights                                 574,383
                                       -----------

                                         1,551,491
                                       -----------

LESS: ACCUMULATED AMORTIZATION

Franchise                                 (244,277)
Copyrights                                (143,596)
                                       -----------
                                          (387,873)
                                       -----------

                                       $ 1,163,618
                                       ===========
</TABLE>

Amortization charged to operations was $117,577 for the nine months ended
September 30, 2002.

The estimated aggregate amortization expenses for each of the five succeeding
fiscal years are as follows:
<TABLE>

<S>       <C>
2003      $156,769
2004       156,769
2005       156,769
2006       156,769
2007       156,769
           -------

          $783,845
          ========
</TABLE>

NOTE 9 - AMOUNTS DUE TO STOCKHOLDERS

         The amounts due to stockholders are unsecured, carry interest at 25%
per annum and have no fixed repayment terms.

NOTE 10 - RECEIPTS IN ADVANCE

The balance comprises:
<TABLE>
<CAPTION>
                                            SEPTEMBER 30,
                                 NOTES         2002
                                 -----       ---------
                                            (UNAUDITED)

<S>                              <C>        <C>
Sales deposits received          (i)        $  287,242
Franchising income received      (ii)          755,918
Subscription fees received       (iii)         511,559
                                            ----------

                                            $1,554,719
                                            ==========
</TABLE>
                                      F-11
<PAGE>
                           HIGOAL DEVELOPMENTS LIMITED

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2002 AND 2001

Notes:

(i)   The balance represents receipts in advance from customers for goods sold
      to them.

(ii)  The balance mainly represents franchising income received in advance which
      is attributable to the periods after the respective year end dates.

(iii) The balance represents subscription fees received in advance for
      subscription of magazines published by the Group.

NOTE 11 - SUBSEQUENT EVENTS

         Pursuant to an exchange agreement effective on October 1, 2002, Kid
Castle Educational Corporation ("KCEC"), formerly King Ball International
Technology Corporation, agreed to issue to the stockholders of the Company
11,880,000 authorized but unissued shares of common stock of KCEC in exchange of
100% of the issued and fully paid up capital of the Company.

         As a result of the acquisition, the former stockholders of the Company
hold a majority interest in the combined entity of KCEC. Generally accepted
accounting principles require in certain circumstances that a company whose
stockholders retain the majority voting interest in the combined business to be
treated as the acquirer for financial reporting purposes. Accordingly, the
acquisition has been accounted for as a "reverse acquisition" whereby the
Company is deemed to have purchased KCEC. However, KCEC remains the legal entity
and the Registrant for Securities and Exchange Commission reporting purposes.

                                      F-12
<PAGE>
                       KID CASTLE EDUCATIONAL CORPORATION
            (FORMERLY KING BALL INTERNATIONAL TECHNOLOGY CORPORATION)

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

         The information contained in this Management's Discussion and
Analysis or Plan of Operation, contains "forward looking statements" within the
meaning of Section 27A of the Securities Act 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. Actual results may
materially differ from those projected in the forward-looking statements as a
result of certain risks and uncertainties set forth in this report. Although
management believes that the assumptions made and expectations reflected in the
forward looking statements are reasonable, there is no assurance that the
underlying assumptions will, in fact, prove to be correct or that actual future
results will not be different from the expectations expressed in this report.

         The purpose of the following discussion and analysis is to explain the
major factors and variances between periods of the Company's financial condition
and results of operations. The following discussion of the Company's financial
condition and results of operations should be read in conjunction with the
historical consolidated financial statements and notes thereto appearing
elsewhere in this Report.

         GENERAL

         The Company is engaged in the business of children's education focusing
on the publication and sale of kindergarten language school and primary school
teaching materials and magazines, and providing management and consulting
services in running kindergarten's and language schools through franchise or
cooperation arrangements. Children's teaching materials include books, audio
tapes, video tapes and compact discs. A major portion of the Company's
educational materials focuses on English language education. The Company also
sells educational tools and equipment that are complementary to its business.
Currently, the Company's business is in Taiwan. In 2001, the Company started its
expansion program in the People's Republic of China ("PRC"). The Company
officially opened its Shanghai operations in April 2002. As in Taiwan, the
Company brings advanced teaching materials and tools, and a monthly magazine to
provide children ranging from two to twelve years of age a chance to learn
exceptional English language and computer skills, and to provide a pre-school
education program.

         CRITICAL ACCOUNTING POLICIES

         The Company has identified critical accounting policies with respect to
revenue recognition and valuation of accounts receivable and inventories.

                                      -2-
<PAGE>
         REVENUE RECOGNITION AND ACCOUNTS RECEIVABLE VALUATION

         The Company recognizes sales of teaching materials and educational
tools and equipment as revenue recognized when title to the product and risk of
ownership are transferred to the customer, which occurs at the time of delivery,
or when the goods arrives at the customer designated location depending on the
associated shipping terms. Additionally, the Company delivers products sold by
its distributors directly to the distributors' customers and as such the
delivered goods are recognized as revenue similar to sales to the Company's
direct customers. The Company recognizes franchise income on a straight-line
basis over the terms of the franchise agreements, which is usually for a period
of three years.

         Customers have the right to return purchased products within 30 days,
60 days and 90 days after delivery of sales to franchise schools, distributors
and primary schools, respectively.

         The preparation of financial statements requires the Company's
management to make estimates and assumptions that affect the reported amount of
assets at the date of the financial statements and the reported amounts of
revenues and expenses during the reported period. Specifically, management must
make estimates of potential future product returns related to current period
revenue. Management analyzes historical returns, current economic trends,
changes in education teaching methods and social trends particularly with
regards to English language learning when evaluating the adequacy of sales
returns. Significant management judgments and estimates must be made and used in
connection with establishing the sales returns in any accounting period. Actual
results could be different from those estimates. Similarly, the Company's
management must make estimates of the uncollectability of accounts receivable.
Management specifically analyzes customer payment terms and reviews individual
customer financial position when evaluating the adequacy of allowance for
doubtful accounts. As of September 30, 2002 and 2001, management believed that
adequate provision had been made.

         INVENTORY

         The Company values its inventory at the lower of cost or market. Cost
includes all costs of purchase, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition. Cost is
calculated using the weighted average method. Market value is determined by
reference to sales proceeds of items sold in the ordinary course of business
after the balance sheet date or based on the management's estimate on prevailing
market conditions and assessment on the Company's ability to dispose them at a
price greater than cost. When market value is less than cost, the Company writes
down the related inventory to that value. The Company also continuously
evaluates the composition of its inventory and identifies slow-moving
inventories. Inventory items identified as slow-moving are evaluated to
determine if reserves are required. Training materials for kindergarten and
magazines are susceptible to obsolescence issue because they have relatively
shorter market period. If the Company is unable to achieve its expectations of
the net realizable value of the inventory at its carrying value, the Company
would have to adjust its reserves accordingly. The allowance for obsolete
inventories as of September 30, 2002 and 2001 amounted to $2,162,648 and
$2,368,510, respectively.

                                      -3-
<PAGE>
         RESULTS OF OPERATIONS

         COMPARISON OF THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

         Revenues increased by $198,221, or 4%, to $5,132,625 in the 2002 period
from $4,934,404 in the 2001 period. The increase of revenue was mostly
attributable to an increase in sales educational tools and equipment, which
increased 20% to $978,095 for the 2002 period from $817,498 for the 2001 period,
and an increase in franchising income, which increased 36% to $589,850 for the
2002 period from $433,770 for the 2001 period. However, sales of magazines
decreased offsetting the increases in franchising and educational tools
revenues. Sales of magazines decreased 59% to $305,433 for the 2002 period from
$744,166 for the 2001 period as the Company changed the distribution channel of
its magazines from book sellers to direct marketing starting in November 2001.
The Company expects sales of magazines to stabilize in 2003. Gross profit
decreased by $277,526, or 10%, to $2,508,625 in the 2002 period from $2,786,151
in the 2001 period. The decrease is mainly attributable to a decrease in selling
price of primary school teaching materials due to increasing competition and as
a result of the price cap that the government imposed on the Company's sales to
primary schools.

         The Company's other operating income represents income from other
activities and services such as training of teachers, arranging for personal
English language tutors and organizing field trips and educational fairs. Other
operating income decreased by $35,478, or 11%, to $301,373 for the 2002 period
from $336,851 for the 2001 period mainly due to the Company's decision,
commencing in 2002 starting to cease collecting fees from teachers for the
tutorship services in response to the market situation. Accordingly, teacher's
training revenue decreased by $107,438 for the 2002 period when compared to that
of the 2001 period.

         Total operating expenses increased by $466,667, or 16% to $3,320,541
for the 2002 period from $2,853,874 for the 2001 period. Advertising costs
increased by $118,264, or 210% to $174,705 for the 2002 period from $56,441 for
the 2001 period due to the increase in promotional activities in 2002 to sustain
and boost sales to primary schools. In 2002, the Taiwan authorities implemented
a revised procurement rule for all government entities including public schools,
threatening the Company's advantage over other vendors as the new rule opened
the supply market to competitors and new entrants. Other operating expenses
increased by $348,403, or 12% to $3,145,836 for the 2002 period from $2,797,433
for the 2001 period, principally because of an increase in commission fees to
distributors and an increase in expenses as a result of the expansion in
Shanghai, PRC. Commission fees increased by $171,933, or 17,074% to $172,940 for
the 2002 period from $1,007 for the 2001 period as the Company changed its
distribution strategy through greater alliance with its distributors,
particularly as the Company faced stiff competition in the primary school
market. The Company completed the establishment of its Shanghai office in April
2002 and the other operating expenses incurred by Shanghai office increased by
$582,000.

         Interest expense increased by $116,932, or 141%, to $199,711 for the
2002 period from $82,779 for the 2001 period, primarily due to the loans from
stockholders in 2002 (please refer to Note 9 to the consolidated financial
statements) that carry a monthly interest of 2.1%, and the additional bank
borrowings of about $1.3 million in the fourth quarter of 2001 that was used



                                      -4-
<PAGE>
mainly to pay the balance due to a director, related to the purchase of land and
buildings in 2000.

         Income tax benefit for the 2002 period was $136,648 or 20% on loss
before income taxes of $698,934 compared to an income tax expense for the 2001
period of $39,709 or 21% on income before income taxes of $188,020. The income
tax benefit for the 2002 period represents mainly the net operating loss carry
forward on the period's tax losses.

         COMPARISON OF THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

         Revenues decreased by $16,102, or 1%, to $2,310,512 in the 2002 period
from $2,326,614 in the 2001 period. The decrease was mostly attributable to
sales of educational tools and equipment, which decreased 12% to $382,297 for
the 2002 period from $436,604 for the 2001 period, and sales of magazines, which
decreased 62% to $88,005 for the 2002 period from $232,277 for the 2001 period.
The aforementioned decreases were partly offset by an increase in franchising
income, which increased 76% to $375,138 for the 2002 period from $213,325 for
the 2001 period.

         Gross profit decreased by $715,471, or 42%, to $966,437 in the 2002
period from $1,681,908 in the 2001 period. As mentioned earlier, the decrease is
mainly attributable to the decrease in selling price due to increasing
competition and as a result of the price cap that the government imposed on the
Company's sales to primary schools.

         Other operating income decreased by $6,975, or 9%, to $70,618 for the
2002 period from $77,593 for the 2001 period mainly because of the decrease in
field trip income as mentioned earlier.

         Total operating expenses increased by $332,316, or 35% to $1,269,739
for the 2002 period from $937,423 for the 2001 period. Advertising costs
increased by $106,631, or 2045% to $111,843 for the 2002 period from $5,212 for
the 2001 period. The increase in advertising costs was due to the promotional
activities during the period to boost or sustain the Company's sales in primary
school (please refer to the analysis for the nine months period for further
explanation). Other operating expenses increase by $225,685, or 24% to
$1,157,896 for the 2002 period from $932,211 for the 2001 period, principally
because of an increase in commission fees paid to distributors and the
incremental expenses incurred in maintaining the Shanghai office that the
Company opened in April 2002 (please refer to the analysis for the nine months
period for related explanation). Commission fees increased by $63,026 from
almost nil for the 2001 period. Incremental operating expenses incurred for the
Shanghai office was $245,276 for the 2002 period.

         Interest expense increased by $55,073, or 222%, to $79,839 for the 2002
period from $24,766 for the 2001 period, primarily due to the loans from
stockholders in 2002 that carry monthly interest of 2.1%, and the additional
bank borrowings of about $1.3 million in the fourth quarter of 2001 that was
used mainly to pay the balance due to a director, related to the purchase of
land and buildings in 2000.

         Income tax benefit for the 2002 period is $62,656 or 20% on loss before
income taxes of


                                      -5-
<PAGE>
$309,385 compared to an income tax expense for the 2001 period of $173,052 or
22% on income before income taxes of $797,476. The income tax benefit for the
2002 period represents mainly the net operating loss carry forward on the
period's tax losses.

         LIQUIDITY AND CAPITAL RESOURCES

         The Company's cash had increased to $100,040 on September 30, 2002 from
$31,793 on the same day of 2001.

         Working capital (deficit) on September 30, 2002 was ($381,550), as
compared to $708,049 on September 30, 2001. This decrease was mainly due to
$600,000 of borrowing from stockholders, to fund the daily operations of the
Shanghai office and the increase in deferred franchise income by $330,000.

         Net cash used in operations was $398,685 in 2002 as compared to
$1,629,693 in 2001. This $1,231,000 change was primarily attributed to the
collection of receivables from related parties and reductions of prepayments and
other current assets, which was $1,662,000. In addition, non-cash items
decreased by approximately $616,000, and other receivable collection periods
decreased thereby converting receivables to cash faster and at the same time
advanced collection of fees for services also increased when compared to 2001.

         Net cash used in investment activities amounted to $94,430 in 2002 as
compared to $453,407 during 2001. This decrease was mainly due to a payment in
2001 of approximately $439,000 for a business purchased in 2000.

         Net cash provided by financing activities in 2002 was $560,900 as
compared to $2,099,000 provided in 2001. The $1,538,100 difference was primarily
attributed to proceeding from issuance of common stock of $1,800,060 in 2001. As
of September 30, 2002, the Company has a total line of credit of $160,000 from
certain banks. The Company has already fully drawn the facility.

         NEW ACCOUNTING PRONOUNCEMENTS

         In June 2002, the FASB issued SFAS No. 146, Accounting for Costs
Associated with Exit or Disposal Activities ("SFAS No. 146"). SFAS No. 146
addresses significant issues regarding the recognition, measurement, and
reporting of costs associated with exit and disposal activities, including
restructuring activities. SFAS No. 146 also addresses recognition of certain
costs related to terminating a contract that is not a capital lease, costs to
consolidate facilities or relocate employees, and termination benefits provided
to employees that are involuntarily terminated under the terms of a one-time
benefit arrangement that is not an ongoing benefit arrangement or an individual
deferred-compensation contract. SFAS No. 146 is effective for exit or disposal
activities that are initiated after December 31, 2002. The adoption of this
statement will not have a material impact on the Company's consolidated
financial position, results of operations or cash flows.

         In November 2002, the FASB issued Interpretation No. 45, "Guarantor's
Accounting and


                                      -6-
<PAGE>
Disclosure Requirements for Guarantees, Including Indirect Guarantees of
Indebtedness of Others, an Interpretation of FASB Statements No. 5, 57, and 107
and Rescission of FASB Interpretation No. 34" (FIN No. 45). The interpretation
requires that upon issuance of a guarantee, the entity must recognize a
liability for the fair value of the obligation it assumes under that obligation.
This interpretation is intended to improve the comparability of financial
reporting, by requiring identical accounting for guarantees issued with
separately identified consideration and guarantees issued without separately
identified consideration. The disclosure provisions of FIN No. 45 are effective
for the Company as of December 31, 2002. The Company currently does not provide
any guarantees.

         In January 2003, the FASB issued Interpretation No. 46, "Consolidation
of Variable Interest Entities" (FIN No. 46). The interpretation clarifies the
application of Accounting Research Bulletin No. 51 "Consolidated Financial
Statements" to certain entities in which equity investors do not have the
characteristics of a controlling financial interest or do not have sufficient
equity at risk for the entity to finance its activities without additional
subordinated financial support from other parties. FIN No.46 is applicable
immediately for variable interest entities created after January 31, 2003. For
variable interest entities created prior to January 31, 2003, the provisions of
FIN No. 46 are applicable no later than July 1, 2003. The Company does not
expect this Interpretation to have an effect on the consolidated financial
statements.

                                      -7-

<PAGE>

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

A.  Exhibits


99.1  Certification of Kuo-An Wang pursuant to 18 U.S.C. 1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


99.2  Certification of Yu-En Chiu pursuant to 18 U.S.C. 1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

B.  Reports on Form 8-K

July 2, 2002      Announcement of a change in control involving 2,830,926 shares
                  of the Company's common stock being sold by Halter Capital
                  Corporation to Powerlink International Finance, Inc.

July 15, 2002     Announcement of the resignation of S.W. Hatfield, CPA as the
                  Company's independent certified accountant.


                                       -6-
<PAGE>
                                   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.



Dated:   May 9, 2003


                                    By:         /s/ Kuo-An Wang
                                          ------------------------------------
                                          Name:    Kuo-An Wang
                                          Title:   Chief Executive Officer


                                       -7-
<PAGE>
                  CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, KUO-AN WANG, President and Chief Executive Officer (principal executive
officer) of Kid Castle Educational Corporation (the "Registrant"), certifies
that:

1. I have reviewed this quarterly report on Form 10-QSB of Kid Castle
Educational Corporation.

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 we 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 function):

      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


                                     1 of 2
<PAGE>
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.


      /s/ Kuo-An Wang
------------------------------------
Kuo-An Wang
Date: May 9, 2003


                                     2 of 2
<PAGE>
                  CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, YU-EN CHIU, Chief Financial Officer (principal financial officer) of Kid
Castle Educational Corporation (the "Registrant"), certifies that:

1. I have reviewed this quarterly report on Form 10-QSB of Kid Castle
Educational Corporation.

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 we 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 function):

      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


                                     1 of 2
<PAGE>
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.

      /s/ Yu-En Chiu
------------------------------
Yu-En Chiu
Date: May 9, 2003


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