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

FORM 10-QSB



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|      |  |                                                                                  
|----- |  | ---------------------------------------------------------------------------------
|[X]   |  | QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
|      |  |                                                                                  
|      |  | For the quarterly period ended June 30, 2002                                     
|      |  |                                                                                  
|[   ] |  | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT                  

Commission file number: 0-26599

SIMEX Technologies, Inc.
(Exact name of small business issuer as specified in its charter)

|                         |  |                    
|------------------------ |  | -------------------
|State of Delaware        |  | 58-2465647         
|(State of Incorporation) |  | (I. R. S. Employer 
|                         |  | Identification No.)

602 Abbey Court
Alpharetta, Georgia 30004
(Address of principal executive offices)

Issuers telephone number, including area code: (678) 802-2041

The number of shares outstanding of the issuers common stock, par value
$0.001, at August 9, 2002, was 16,564,908 shares.





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TABLE OF CONTENTS



|                                             |                                                                   |                                                      |  |  |  |  |  | 
|-------------------------------------------- | ----------------------------------------------------------------- | ---------------------------------------------------- |  |  |  |  |  | 
|PART I. Financial Information               
|                                             | Item 1. Financial Statements:                                    
|                                             |                                                                   | CONDENSED CONSOLIDATED BALANCE SHEET                
|                                             |                                                                   | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS     
|                                             |                                                                   | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS     
|                                             |                                                                   | NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|                                             | Item 2. Managements Discussion and Analysis or Plan of Operation
|PART II. OTHER INFORMATION                  
|                                             | Item 5. Other information.                                       
|                                             | Item 6. Exhibits and Reports on Form 8-K.                        
|                                             |                                                                   | EXHIBIT INDEX                                       
|Signatures                                  
|Section 906 Certification of the CEO and CFO



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##### Table of Contents






PART I.       Financial Information




Item 1.         Financial Statements:

SIMEX TECHNOLOGIES INC. AND SUBSIDIARIES




CONDENSED CONSOLIDATED BALANCE SHEET


(In thousands, except per share data)


|                                      |                                                                                               |                                             |                           |                             |        |               |        |  
|------------------------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------------- | ------------------------- | --------------------------- | ------ | ------------- | ------ | -
|                                      |                                                                                               |                                             |                           |                             |        | June 30, 2002
|                                      |                                                                                               |                                             |                           |                             |        |              
|                                      |                                                                                               |                                             |                           |                             |        | (Unaudited)  
|ASSETS                                |                                                                                               |                                             |                           |                            
|Current assets:                       |                                                                                               |                                             |                           |                            
|                                      |                                                                                               | Cash and cash equivalents                   |                           | $                           | 9      |              
|                                      |                                                                                               | Trade accounts receivable                   |                           |                             | 27     |              
|                                      |                                                                                               | Prepaid expenses and other current assets   |                           |                             | 40     |              
|                                      |                                                                                               | Assets  discontinued operations            |                           |                             | 21,732 |              
|                                      |                                                                                               |                                             |                           |                            
|                                      |                                                                                               |                                             | Total current assets      |                             |        | 21,808        |       
|                                      |                                                                                               | Furniture and fixtures, net                 |                           |                             | 32     |              
|                                      |                                                                                               | Other assets                                |                           |                             | 69     |              
|                                      |                                                                                               |                                             |                           |                            
|                                      |                                                                                               |                                             |                           | Total assets                |        | $             | 21,909 |  
|                                      |                                                                                               |                                             |                           |                            
|LIABILITIES AND SHAREHOLDERS DEFICIT |                                                                                               |                                             |                           |                            
|Current liabilities:                  |                                                                                               |                                             |                           |                            
|                                      |                                                                                               | Note payable  bank                         |                           | $                           | 207    |              
|                                      |                                                                                               | Notes payable to officers and employees     |                           |                             | 130    |              
|                                      |                                                                                               | Accounts payable                            |                           |                             | 134    |              
|                                      |                                                                                               | Accrued salaries and wages                  |                           |                             | 101    |              
|                                      |                                                                                               | Accrued taxes other than income             |                           |                             | 7      |              
|                                      |                                                                                               | Other current liabilities                   |                           |                             | 193    |              
|                                      |                                                                                               | Liabilities  discontinued operations       |                           |                             | 21,224 |              
|                                      |                                                                                               |                                             |                           |                            
|                                      |                                                                                               |                                             | Total current liabilities |                             |        | 21,996        |       
|Other liabilities                     |                                                                                               |                                             | 41                        |                            
|                                      |                                                                                               |                                             |                           |                             |        |              
|                                      |                                                                                               |                                             | Total liabilities         |                             |        | 22,037        |       
|                                      |                                                                                               |                                             |                           |                            
|Shareholders
deficit:                |                                                                                               |                                             |                           |                            
|                                      | Common stock, $.001 par value. Authorized 50,000
shares; 16,565 shares issued and outstanding |                                             |                           | 17                          |       
|                                      | Additional paid-in capital                                                                    |                                             |                           | 9,720                       |       
|                                      | Accumulated deficit                                                                           |                                             |                           | (9,258                      | )     
|                                      | Treasury stock, 10 shares at cost                                                             |                                             |                           | (30                         | )     
|                                      | Accumulated other comprehensive loss  foreign
currency translation adjustment                |                                             |                           | (577                        | )     
|                                      |                                                                                               |                                             |                           |                             |        |              
|                                      |                                                                                               |                                             |                           | Total
shareholders deficit |        |               | (128   | )
|                                      |                                                                                               |                                             |                           |                            
|                                      |                                                                                               | Total
liabilities and shareholders deficit |                           | $                           | 21,909 |              
|                                      |                                                                                               |                                             |                           |                            

The accompanying notes are an integral part of the consolidated financial statements.

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SIMEX TECHNOLOGIES INC. AND SUBSIDIARIES




CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


(Unaudited)
(In thousands, except per share data)


|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |      |       |   | 
|----------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------- | ------------------------------- | ----- | --------------------------- | ---- | ------------------------- | --- | ---- | ---- | ---- | ------ | ------ | ----- | --- | ---- | ----- | - | 
|                                                |                                                                                                                                                    |                                                             |                                 |       | Three months ended June 30, |      | Six months ended June 30,
|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                          
|                                                |                                                                                                                                                    |                                                             |                                 |       | 2002                        |      | 2001                      |     | 2002 |      | 2001
|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |     
|Revenues                                        |                                                                                                                                                    | $                                                           | 109                             |       |                             | $    |                          |     |      | $    | 157  |        |        | $     |    |     
|Cost of revenues                                |                                                                                                                                                    |                                                             | 42                              |       |                             |      |                          |     |      |      | 52   |        |        |       |    |     
|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |     
|                                                | Gross profit                                                                                                                                       |                                                             |                                 | 67    |                             |      |                           |    |      |      |      | 105    |        |       |     |     |      
|Selling, general and administrative expenses    |                                                                                                                                                    |                                                             | 184                             |       |                             |      | 53                        |     |      |      | 294  |        |        |       | 115 |     
|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |     
|                                                | Operating loss                                                                                                                                     |                                                             |                                 | (117  | )                           |      |                           | (53 | )    |      |      | (189   | )      |       |     | (115 | )    
|Interest expense                                |                                                                                                                                                    |                                                             | 2                               |       |                             |      |                          |     |      |      | 5    |        |        |       |    |     
|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |     
|                                                | Loss from continuing operations
before income taxes and cumulative
effect of accounting change                                                     |                                                             |                                 | (119  | )                           |      |                           | (53 | )    |      |      | (194   | )      |       |     | (115 | )    
|Income taxes                                    |                                                                                                                                                    |                                                             |                                |       |                             |      |                          |     |      |      |     |        |        |       |    |     
|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |     
|                                                | Loss from continuing operations before
cumulative effect of accounting change                                                                      |                                                             |                                 | (119  | )                           |      |                           | (53 | )    |      |      | (194   | )      |       |     | (115 | )    
|Discontinued operations (note 5):               |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |     
|                                                | Earnings (loss) from discontinued operations, net
of income taxes of $61 and $37 during the three and
six months ended June 30, 2001, respectively |                                                             |                                 | 1,204 |                             |      |                           | 144 |      |      |      | (3,543 | )      |       |     | 61   |      
|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |     
|                                                |                                                                                                                                                    | Income (loss) before cumulative effect of
accounting change |                                 |       | 1,085                       |      |                           |     | 91   |      |      |        | (3,737 | )     |     |      | (54   | )
|Cumulative effect of accounting change (note 6) |                                                                                                                                                    |                                                             |                                |       |                             |      |                          |     |      |      | (628 | )      |        |       |    |     
|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |     
|                                                | Net income (loss)                                                                                                                                  |                                                             | $                               | 1,085 |                             |      | $                         | 91  |      |      | $    | (4,365 | )      |       | $   | (54  | )    
|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |     
|Income (loss) per share (note 2):               |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |     
|                                                | Basic income (loss) per share:                                                                                                                     |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |      |      
|                                                |                                                                                                                                                    | Loss from continuing operations                             |                                 | $     | (0.01                       | )    |                           | $   |     |      |      | $      | (0.01  | )     |     | $    | (0.01 | )
|                                                |                                                                                                                                                    | Discontinued operations                                     |                                 |       | 0.07                        |      |                           |     | 0.01 |      |      |        | (0.21  | )     |     |      | 0.01  |  
|                                                |                                                                                                                                                    | Cumulative effect of accounting change                      |                                 |       |                            |      |                           |     |     |      |      |        | (0.04  | )     |     |      |      |  
|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |     
|                                                |                                                                                                                                                    |                                                             | Basic income (loss) per share   |       | $                           | 0.06 |                           |     | $    | 0.01 |      |        | $      | (0.26 | )   |      | $     |  | 
|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |     
|                                                | Diluted income (loss) per share:                                                                                                                   |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |      |      
|                                                |                                                                                                                                                    | Loss from continuing operations                             |                                 | $     | (0.01                       | )    |                           | $   |     |      |      | $      | (0.01  | )     |     | $    | (0.01 | )
|                                                |                                                                                                                                                    | Discontinued operations                                     |                                 |       | 0.07                        |      |                           |     | 0.01 |      |      |        | (0.21  | )     |     |      | 0.01  |  
|                                                |                                                                                                                                                    | Cumulative effect of accounting change                      |                                 |       |                            |      |                           |     |     |      |      |        | (0.04  | )     |     |      |      |  
|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |     
|                                                |                                                                                                                                                    |                                                             | Diluted income (loss) per share |       | $                           | 0.06 |                           |     | $    | 0.01 |      |        | $      | (0.26 | )   |      | $     |  | 
|                                                |                                                                                                                                                    |                                                             |                                 |       |                             |      |                           |     |      |      |      |        |        |       |     |     

The accompanying notes are an integral part of the consolidated financial statements.

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SIMEX TECHNOLOGIES INC. AND SUBSIDIARIES




CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)
(In thousands)


|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |       |   |     |        |  
|----------------------------------------------------------------------------- | ---------------------------------------------------------- | -------------------------------------------------------------------------------------------------- | -------------------------------------------- | --------------------------------------------------- | - | ------------------------- | ------ | ----- | - | --- | ------ | -
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   | Six months ended June 30,
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                          
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   | 2002                      |        | 2001 
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|Cash flows from operating activities:                                         |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|Loss from continuing operations before cumulative
effect of accounting change |                                                            | $                                                                                                  | (194                                         | )                                                   |   | $                         | (115   | )    
|                                                                              |                                                            | Adjustments to reconcile loss from continuing
operations to net cash used
in operating activities: |                                              |                                                     |   |                           |        |       |   |    
|                                                                              |                                                            |                                                                                                    | Depreciation and amortization                |                                                     |   | 10                        |        |       |   | 6   |       
|                                                                              |                                                            |                                                                                                    | Gain on sale of machinery and equipment      |                                                     |   |                          |        |       |   | 1   |       
|                                                                              |                                                            |                                                                                                    | Changes in operating assets and liabilities: |                                                     |   |                           |        |       |   |     |       
|                                                                              |                                                            |                                                                                                    |                                              | Trade accounts receivable                           |   |                           | (27    | )     |   |     | 113    |  
|                                                                              |                                                            |                                                                                                    |                                              | Prepaid expense and other current assets            |   |                           | (32    | )     |   |     |       |  
|                                                                              |                                                            |                                                                                                    |                                              | Other assets                                        |   |                           | 14     |       |   |     |       |  
|                                                                              |                                                            |                                                                                                    |                                              | Accounts payable                                    |   |                           | 37     |       |   |     | (1     | )
|                                                                              |                                                            |                                                                                                    |                                              | Accrued salaries and wages                          |   |                           | 55     |       |   |     |       |  
|                                                                              |                                                            |                                                                                                    |                                              | Other current liabilities                           |   |                           | 83     |       |   |     | 94     |  
|                                                                              |                                                            |                                                                                                    |                                              | Net activity from discontinued operations           |   |                           | (2,192 | )     |   |     | (1,152 | )
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|                                                                              |                                                            |                                                                                                    |                                              | Net cash used in operating activities               |   |                           | (2,246 | )     |   |     | (1,054 | )
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|Cash flows from investing activities:                                         |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|                                                                              | Net
activity provided by (used in)
discontinued operations |                                                                                                    |                                              | (106                                                | ) |                           |        | 1,224 |  
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|                                                                              |                                                            |                                                                                                    |                                              | Net
cash provided by (used in) investing activities |   |                           | (106   | )     |   |     | 1,224  |  
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|Cash flows from financing activities:                                         |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|                                                                              | Payments of notes payable  banks, net                     |                                                                                                    |                                              | (2                                                  | ) |                           |        |      |  
|                                                                              | Net activity provided by (used in)
discontinued operations |                                                                                                    |                                              | 2,328                                               |   |                           |        | (90   | )
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|                                                                              |                                                            |                                                                                                    |                                              | Net cash provided by (used in)
financing activities |   |                           | 2,326  |       |   |     | (90    | )
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|Effect of exchange rate changes in cash
and cash equivalents                  |                                                            |                                                                                                    | 25                                           |                                                     |   |                           | (15    | )    
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|                                                                              | Net change in cash and cash equivalents                    |                                                                                                    |                                              | (1                                                  | ) |                           |        | 65    |  
|Cash and cash equivalents beginning of period                                 |                                                            |                                                                                                    | 10                                           |                                                     |   |                           | 10     |      
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|Cash and cash equivalents at end of period                                    |                                                            | $                                                                                                  | 9                                            |                                                     |   | $                         | 75     |      
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|Supplemental disclosure of cash flows information:                            |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|                                                                              | Cash paid during the periods for:                          |                                                                                                    |                                              |                                                     |   |                           |        |       |  
|                                                                              |                                                            |                                                                                                    | Interest  continuing operations             |                                                     | $ | 5                         |        |       | $ |    |       
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|                                                                              |                                                            |                                                                                                    | Interest  discontinued operations           |                                                     | $ | 188                       |        |       | $ | 224 |       
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|                                                                              |                                                            |                                                                                                    | Income taxes  continuing operations         |                                                     | $ |                          |        |       | $ |    |       
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      
|                                                                              |                                                            |                                                                                                    | Income taxes  discontinued operations       |                                                     | $ |                          |        |       | $ |    |       
|                                                                              |                                                            |                                                                                                    |                                              |                                                     |   |                           |        |      

The accompanying notes are an integral part of the consolidated financial statements.

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SIMEX TECHNOLOGIES INC. AND SUBSIDIARIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


June 30, 2002 and 2001
(Unaudited)
(In thousands, except per share data)


1.     CONSOLIDATED FINANCIAL STATEMENTS

The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with the instructions to Form 10-QSB and do not
include all of the information and footnotes required by accounting principles
generally accepted in the United States of America for complete financial
statements. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. These statements should be read in conjunction with the consolidated
financial statements and notes thereto included in the SIMEX Technologies,
Inc.s Form 10-KSB for the year ended December 31, 2001.

On May 15, 2002, the Company entered into a binding agreement to sell its
Norwegian subsidiary, which represented the majority of the Companys operating
activities. The agreement was approved by a unanimous vote of the Companys
Board of Directors. Under the terms of the agreement, the Company received
$1,500 in cash for all the common shares of its Norwegian subsidiary and agreed
to cancel certain inter-company indebtedness. The $1,500 was received by the
Company and escrowed on May 16, 2002. On July 12, 2002, the Company mailed to
shareholders and filed with the SEC a definitive Form 14C which acknowledged
that holders of a majority of the Companys outstanding common stock had agreed
to vote in favor of the sale. The sale closed on August 2, 2002 and the funds
were released to the Company from the escrow account. Due to these
circumstances, operating results of the Companys Norwegian subsidiary are
reported in this Form 10-Q as discontinued operations.

Certain reclassifications have been made to the 2001 financial information to
conform to the presentation in 2002.

The results of operations for the periods presented are not necessarily
indicative of the operating results for the full year.

2.     INCOME (LOSS) PER SHARE

SIMEX Technologies, Inc. and subsidiaries (the Company) applies the
provisions of Statement of Financial Accounting Standards (SFAS) No. 128,
Earnings per Share. Basic earnings per common share is based on the weighted
average number of common shares outstanding during the period. Diluted earnings
per share include the dilutive effect of potentially dilutive securities. For
the three months ended March 31, 2002 and 2001 and the six-months ended June
30, 2002 and 2001, the effects on diluted income (loss) per share from stock
options have not been included since such effects would have been
anti-dilutive.

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|                                                                                                    |                                        |   |                            |       |                          |   |        |     |      |   |        |        |   |   |        |      |  
|--------------------------------------------------------------------------------------------------- | -------------------------------------- | - | -------------------------- | ----- | ------------------------ | - | ------ | --- | ---- | - | ------ | ------ | - | - | ------ | ---- | -
|                                                                                                    |                                        |   | Three Months Ended June 30 |       | Six Months Ended June 30
|                                                                                                    |                                        |   |                            |       |                         
|                                                                                                    |                                        |   | 2002                       |       | 2001                     |   | 2002   |     | 2001
|                                                                                                    |                                        |   |                            |       |                          |   |        |     |     
|Numerator:                                                                                          |                                        |   |                            |       |                          |   |        |     |      |   |        |        |   |   |        |     
|                                                                                                    | Loss from continuing operations        |   | $                          | (119  | )                        |   | $      | (53 | )    |   | $      | (194   | ) |   | $      | (115 | )
|                                                                                                    | Discontinued operations                |   |                            | 1,204 |                          |   |        | 144 |      |   |        | (3,543 | ) |   |        | 61   |  
|                                                                                                    | Cumulative effect of accounting change |   |                            |      |                          |   |        |    |      |   |        | (628   | ) |   |        |     |  
|                                                                                                    |                                        |   |                            |       |                          |   |        |     |      |   |        |        |   |   |        |      |  
|Numerator for basic and diluted net
income (loss) per share                                         |                                        | $ | 1,085                      |       |                          | $ | 91     |     |      | $ | (4,365 | )      |   | $ | (54    | )   
|                                                                                                    |                                        |   |                            |       |                          |   |        |     |      |   |        |        |   |   |        |     
|Denominator for basic and diluted net
income (loss) per share  weighted
average shares outstanding |                                        |   | 16,565                     |       |                          |   | 13,193 |     |      |   | 16,565 |        |   |   | 13,193 |     
|                                                                                                    |                                        |   |                            |       |                          |   |        |     |      |   |        |        |   |   |        |     

3.     SEGMENT INFORMATION

The Company applies the provisions of SFAS No. 131, Disclosures about Segments
of an Enterprise and Related Information. SFAS 131 establishes standards for
the way that public business enterprises report information about operating
segments in their financial statements. The standard defines operating
segments as components of an enterprise about which separate financial
information is available that is evaluated regularly by the chief operating
decision makers in deciding how to allocate resources and in assessing the
performance.

Based on the quantitative thresholds specified in SFAS 131, the Company has
determined that it has one reportable segment. This segment is the equipment
financing segment. The equipment financing segment provides commercial
equipment leasing and financing services.

4.     COMPREHENSIVE LOSS

The Company had other comprehensive income (loss) for the three months ended
June 30, 2002 and 2001 of $1,597 and $185, respectively, and for the six months
ended June 30, 2002 and 2001 of $(3,690) and $34, respectively. Adjustments to
net income (loss) to determine other comprehensive income (loss) are due to
foreign currency translation.

5.     CONTINGENT LIABILITIES

On August 2, 2001, the Company purchased all of the assets and assumed
substantially all the liabilities of Vendor Leasing Financial Services, Inc.,
(Vendor Leasing) a U.S. corporation located in Alpharetta,
Georgia that provides commercial equipment leasing and financing services. The
purchase price of $600 included $100 cash paid at closing and 500 shares of the
Companys common stock. The number of shares given to the seller is subject to
change based on the number of shares of the Companys common stock required to
provide the seller with $500 of the Companys stock 18 months after the closing
date of the acquisition. However, the Company may, at its option choose to make
up any loss of value in cash, rather than shares of its common stock, to
achieve the required $500 of consideration.

6.     IMPAIRMENT OF GOODWILL

The Company adopted Statement of Financial Accounting Standards (SFAS) No.
142, Goodwill and Other Intangible Assets,effective with its fiscal year
beginning January 1, 2002. SFAS No. 142 requires that an intangible asset with
a finite life be amortized over its useful life and that intangibles with an
infinite life and goodwill not be amortized but evaluated for impairment. SFAS
No. 142 also provides for mandatory transitional impairment testing of the
Companys recorded goodwill balances as they existed on January 1, 2002,
using a prescribed and complex testing methodology. To accomplish this
transitional impairment analysis the Company must identify its SFAS No. 142
reporting units and determine the carrying value of each reporting unit by
assigning the assets and liabilities, including the existing goodwill and
intangible assets, to those reporting units as of the date of adoption. The
Company

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had until June 2002 to determine the fair value of each reporting unit
and compare it to the reporting units carrying amount. To the extent a
reporting units carrying amount exceeded its fair value, an indication exists
that the reporting units goodwill may be impaired and the Company must perform
the second step of the transitional impairment test. In the second step, the
Company must compare the implied fair value of the reporting units goodwill,
determined by allocating the reporting units fair value to all its assets
(recognized and unrecognized) and liabilities in a manner similar to a purchase
price allocation in accordance with SFAS No. 141, Business Combinations, to its
carrying amount, both of which would be measured as January 1, 2002, the date
of adoption. This second step is required to be completed as soon as possible,
but no later than December 31, 2002 and any transitional impairment loss will
be recognized as the cumulative effect of a change in accounting principle in
the Companys Consolidated Statement of Operations, thereby reducing net
income. As of January 1, 2002, the Company had a goodwill asset for
continuing operations of $628 relating to the 2001 acquisition of Vendor
Leasing in the United States.

The Company has completed all required transitional testing (including both
step one and, where required, step two) in the second quarter of 2002. The
Companys Condensed Consolidated Statement of Operations (unaudited) for the
six months ended June 30, 2002 includes the provision of $628 for the
impairment of goodwill relating to the Companys Vendor Leasing subsidiary.

The following table sets forth the computations of
basic and diluted income (loss) per share for the three and six months ended June 30, 2002 and 2001 as if there
had been no goodwill amortization for the three and six months ended June 30,
2001 (in thousands):

|                                                                               |  |                    |       |                  |  |      |      |      |  |   |        |   |  |   |     |  
|------------------------------------------------------------------------------ |  | ------------------ | ----- | ---------------- |  | ---- | ---- | ---- |  | - | ------ | - |  | - | --- | -
|                                                                               |  | Three Months Ended |       | Six Months Ended
|                                                                               |  | June 30,           |       | June 30,        
|                                                                               |  |                    |       |                 
|                                                                               |  | 2002               |       | 2001             |  | 2002 |      | 2001
|                                                                               |  |                    |       |                  |  |      |      |     
|Reported income (loss) before cumulative
effect of accounting change           |  | $                  | 1,085 |                  |  | $    | 91   |      |  | $ | (3,737 | ) |  | $ | (54 | )
|Add back: goodwill amortization,
net of tax benefit                            |  |                    |      |                  |  |      | 29   |      |  |   |       |   |  |   | 59  |  
|                                                                               |  |                    |       |                  |  |      |      |      |  |   |        |   |  |   |     |  
|Adjusted income (loss) before cumulative
effect of accounting change           |  | $                  | 1,085 |                  |  | $    | 120  |      |  | $ | (3,737 | ) |  | $ | 5   |  
|                                                                               |  |                    |       |                  |  |      |      |      |  |   |        |   |  |   |     |  
|Basic and diluted income (loss) per share:                                     |  |                    |       |                  |  |      |      |      |  |   |        |   |  |   |     |  
|Reported income (loss) before cumulative
effect of accounting change           |  | $                  | 0.06  |                  |  | $    | 0.01 |      |  | $ | (0.22  | ) |  | $ |    |  
|Add back: Goodwill amortization, net of
tax benefit                            |  |                    |      |                  |  |      |     |      |  |   |       |   |  |   |    |  
|                                                                               |  |                    |       |                  |  |      |      |      |  |   |        |   |  |   |     |  
|Adjusted income (loss) per share before
cumulative effect of accounting change |  | $                  | 0.06  |                  |  | $    | 0.01 |      |  | $ | (0.22  | ) |  | $ |    |  
|                                                                               |  |                    |       |                  |  |      |      |      |  |   |        |   |  |   |     |  

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Item 2. Managements Discussion and Analysis or Plan of Operation

(B)  Managements Discussion and Analysis of Financial Condition and
Results of Operations.

The following discussion should be read in conjunction with the consolidated
financial statements of the Company (including the notes thereto) included in
the Companys Form 10-KSB for the year ended December 31, 2001.

General

SIMEX Technologies, Inc. and subsidiaries (the Company) principally operates
through its wholly owned subsidiary, Vendor Leasing Financial Services, Inc.
(Vendor Leasing), located in Alpharetta, Georgia. The Company is engaged in
commercial equipment leasing and financing services. The Company derives its
revenues primarily from customers in the Southeastern United States.

Results of Operations (In thousands)

The following analysis compares the results of operations for the three-month
and six-month periods ended June 30, 2002 to the comparable periods ended June
30, 2001.

Revenues during the three months ended June 30, 2002 were $109 compared to $-0-
during the three months ended June 30, 2001. The increase in revenues in the
amount of $109 was due to the purchase of Vendor Leasing in August 2001.

Revenues during the six months ended June 30, 2002 were $157 compared to $-0-
during the six months ended June 30, 2001. The increase in revenues in the
amount of $157 was due to the purchase of Vendor Leasing in August 2001.

In the three months ended June 30, 2002, cost of revenues was $42, which
represented 39% of revenues and consisted primarily of commissions paid on
lease financing transactions. During the three months ended June 30, 2001, cost
of revenues was $-0-. The increase in cost of revenues was due to the purchase
of Vendor Leasing in August 2001.

In the six months ended June 30, 2002, cost of revenues was $52, which
represented 33% of revenues and consisted primarily of commissions paid on
lease financing transactions. During the six months ended June 30, 2001, cost
of revenues was $-0-. The increase in cost of revenues was due to the purchase
of Vendor Leasing in August 2001.

Selling, general and administrative expenses during the three months ended June
30, 2002 were $184, which represented 169% of revenues. During the three
months ended June 30, 2001, selling, general and administrative expenses were
$53. The increase in selling, general and administrative was due to the
purchase of Vendor Leasing in August 2001.
Selling, general and administrative expenses during the six months ended June
30, 2002 were $294, which represented 187% of revenues. During the three
months ended June 30, 2001, selling, general and administrative expenses were
$115. The increase in selling, general and administrative was due to the
purchase of Vendor Leasing in August 2001.

During the three months ended June 30, 2002,
the Company recognized $1,204 in earnings from discontinued
operations. These earnings were primarily due to the recording of an
adjustment to the asset value of the Companys Norwegian subsidiary to
restore a portion of the previous quarter impairment charge based upon the price at which the Norwegian
subsidiary was sold in August 2002.

During the three months ended June 30, 2002, the Company had net income of
$1,085 or $0.06 per diluted weighted-average share. During the three months
ended June 30, 2001, the Company reported net income of $91 or $0.01 per
diluted weighted-average share. The $994 increase in net income for the three
months ended June 30, 2002, was primarily due to net income of
$1,204 from discontinued operations in the quarter ended June 30, 2002.

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During the six months ended June 30, 2002, the Company had a net loss of
$(4,365) or $(0.26) per diluted weighted-average share. During the six months
ended June 30, 2001, the Company reported a net loss of $(54) or $(0.00) per
diluted weighted-average share. The $4,311 increase in net loss for the six
months ended June 30, 2002, was primarily due to losses of $3,543 from
discontinued operations and a $628 cumulative effect of accounting change
recorded in the six months ended June 30, 2002.

Liquidity and Capital Resources

During the six months ended June 30, 2002, the Company experienced negative
operating cash flows of $(2,246). Negative operating cash flows in the six
months ended June 30, 2002 were primarily created by a net loss from continuing
operations before cumulative effect of accounting change of $(194).
Additionally the net effect of operating cash flows from discontinued
operations resulted in additional cash used of $(2,192). During the six months
ended June 30, 2001, the Company experienced negative operating cash flows of
$(1,054). Negative operating cash flows in the six months ended June 30, 2001
were primarily the result of cash used in discontinued operations of $(1,152).

Net cash used in investing activities of $(106) during the six months ended
June 30, 2002 resulted from the investing activities of discontinued
operations. Net cash provided by investing activities of $1,224 during the six
months ended June 30, 2001 also resulted from the investing activities of
discontinued operations.

Net cash provided by financing activities of $2,326 during six months ended June
30, 2002 was primarily due to the financing activities associated with
discontinued operations. Net cash used in financing activities of $(90) during
six months ended June 30, 2001 was due to investing activities associated with
discontinued operations.

The Company believes that its available cash resources and amounts received
from the sale of its Norwegian subsidiary, should be sufficient to meet its
anticipated working capital and capital expenditure requirements for the next
12 months. The Company sold its Norwegian subsidiary to provide the necessary
cash resources to satisfy its debt obligations, fund its working capital needs
and provide sufficient resources to pursue other business opportunities. See
Part II, Item 5 of this report for additional information on the sale of the
Companys Norwegian subsidiary.

Inflation

Inflation has not had a material impact on the Companys operations.

New Accounting Pronouncements

In July 2001, the Financial Accounting Standards Board issued SFAS No. 143,
Accounting for Asset Retirement Obligations. That standard requires entities
to record the fair value of a liability for an asset retirement obligation in
the period in which it is incurred. When the liability is initially recorded,
the entity capitalizes a cost by increasing the carrying amount of the related
long-lived asset. Over time, the liability is accreted to its present value
each period, and the capitalized cost is depreciated over the useful life of
the related asset. Upon settlement of the liability, an entity either settles
the obligation for its recorded amount or incurs a gain or loss upon
settlement. The standard is effective for fiscal years beginning after June
15, 2002, with earlier application encouraged. The Company is currently
evaluating the effect of adopting this pronouncement.

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In June 2002, the FASB issued SFAS No. 145, Recision of FASB Statements Nos.
4,44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections.
SFAS No. 145 rescinds FSAS No. 4, Reporting Gains and Losses from
Extinguishment of Debt,and an amendment of that statement, SFAS No. 64,
Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements.This
statement rescinds SFAS No. 44, Accounting for Intangible Assets of Motor
Carriersand amends SFAS No. 13, Accounting for Leases, to eliminate an
inconsistency between the required accounting for sale-leaseback transactions
and the required accounting for certain lease modifications that have economic
effects that are similar to sale-leaseback transactions. The statement also
amends other existing authoritative pronouncements to make various technical
corrections, clarify meanings, or describe their applicability under changed
conditions. The provisions of SFAS No. 145 related to recision of SFAS No. 4
are required to be applied in fiscal years beginning after May 15, 2002. Any
gain or loss on extinguishment of debt that was classified as an extraordinary
item in prior periods presented that does not meet the criteria for
classification as an extraordinary item shall be reclassified. Early
application of the provisions of this statement related to the recision of
SFAS No. 145 is encouraged. The provisions of SFAS No. 145 related to SFAS No.
13 are effective for transactions occurring after May 15, 2002, with early
application encouraged. All other provisions of SFAS No. 145 are effective for
financial statements issued on or after May 15, 2002, with early application
encouraged. The Company does not believe that the adoption of this
pronouncement will materially affect its reported financial condition.

In July 2002, the Financial Accounting Standards Board (FASB) issue Statement
of Financial Accounting Standards (SFAS) No. 146, Accounting for Costs
Associated with Exit or Disposal Activities,which addresses the accounting and
reporting for costs associated with exit or disposal activities because
entities increasingly are engaging in exit and disposal activities and certain
costs associated with those activities were recognized as liabilities at a plan
(commitment) date under Emerging Issues Task Force (EITF) 94-3 Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit
an Activity (including Certain Costs Incurred in a Restructuring),that did not
meet the definition of a liability in FASB Concepts Statement No. 6, Elements
of Financial Statements.SFAS No. 146 requires that a liability for a cost
associated with an exit or disposal activity be recognized when the liability
is incurred. Under EITF 94-3, a liability for an exit cost as defined in EITF
94-3 was recognized at the date of an entitys commitment to an exit plan.
SFAS No. 146 is effective for exit or disposal activities initiated after
December 31, 2002. Early application is encouraged. The Company has chosen to
adopt this pronouncement effective with its fiscal year which begins January 1,
2003 and does not believe it will materially affect its reported results of
operations, or financial condition upon adoption.

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995

Certain statements in this quarterly report on Form 10-QSB contain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, which statements can generally be identified by
use of forward-looking terminology, such as may, will, expect,
estimate, anticipate, believe, target, plan, project, or continue
or the negatives thereof or other variations thereon or similar terminology,
and are made on the basis of managements plans and current analyses of the
Company, its business and the industry as a whole. These forward-looking
statements are subject to risks and uncertainties, including, but not limited
to, economic conditions, competition, interest rate sensitivity and exposure to
regulatory and legislative changes. The above factors, in some cases, have
affected, and in the future could affect, the Companys financial performance
and could cause actual results for 2002 and beyond to differ materially from
those expressed or implied in such forward-looking statements, even if
experience or future changes make it clear that any projected results expressed
or implied therein will not be realized.

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PART II.        OTHER INFORMATION

Item 1. through Item 4.  Not applicable.




Item 5.    Other information.



| |  |  | On May 15, 2002, the Company entered into a binding agreement to
sell its Norwegian subsidiary to Jostein Tjelta, a Norwegian
businessman. The agreement was approved by a unanimous vote of the
Companys Board of Directors. Under the terms of the agreement,
the Company received $1,500 in cash for all the common shares of
its Norwegian subsidiary and agreed to cancel certain inter-company
indebtedness due to the Company from its Norwegian subsidiary. The
$1,500 was received by the Company and escrowed on May 16, 2002.
On July 12, 2002, the Company mailed to shareholders and filed with
the SEC a definitive Form 14C which acknowledged that holders of a
majority of the Companys outstanding common stock had already
agreed to vote in favor of the sale. The sale closed on August 2,
2002 and the funds were released to the Company from the escrow
account.
| |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




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



| | (a) |  | Exhibits                                                                                                                                                  
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |     |  | A list of exhibits included as part of this report is set forth in
the Exhibit Index appearing elsewhere in this report, and is
incorporated by reference.
|
| | (b) |  | Reports on Form 8-K                                                                                                                                       
|
| |     |  | On June 3, 2002, the Registrant filed a report on Form 8-K
describing the proposed sale of the Companys Norwegian subsidiary.                            




EXHIBIT INDEX

|            |  |                                                                                                                                                                                                                                                    
|----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                        
|            |  |                                                                                                                                                                                                                                                    
|99.1        |  | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
executed by Kjell Jagelid, Chief Executive Officer, President and
Acting Chief Financial Officer of SIMEX Technologies, Inc.

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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.

|                      |  |     |  |                                                                                          | 
|--------------------- |  | --- |  | ---------------------------------------------------------------------------------------- | 
|                      |  |     |  | SIMEX TECHNOLOGIES, INC.                                                                
|                      |  |     |  |                                                                                         
|DATE: August 26, 2002 |  | BY: |  | /s/ Kjell Jagelid                                                                       
|                      |  |     |  |                                                                                         
|                      |  |     |  | Kjell Jagelid
Chief Executive Officer, President and
     Acting Chief Financial Officer

12