FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C.  20549

(Mark One)

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

     For  the  quarterly  period  ended  September  30,  2002

                                       OR

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


                        Commission file number 33-19598-D


                          NANOPIERCE TECHNOLOGIES, INC.
                          -----------------------------
        (Exact name of small business issuer as specified in its charter)

              Nevada                                           84-0992908
              ------                                           ----------
 (State  or  other  jurisdiction  of                       (I.R.S.  Employer
  incorporation  or  organization)                        Identification  No.)

                       370 Seventeenth Street, Suite 3640
                             Denver, Colorado 80202
                    (Address of principal executive offices)

                    Issuer's telephone number: (303) 592-1010


     Indicate  by  check  mark  whether  the  issuer  (1)  has filed all reports
required  to  be  filed by Section 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding  12  months  (or  for  such shorter period that the
registrant  was  required  to  file  such  reports), and (2) has been subject to
such  filing  requirements  for  the  past  90  days.  Yes  X  No
                                                           ---    ---

     As  of  November  1,  2002 there were 58,827,389 shares of the registrant's
sole  class  of  common  stock  outstanding.


     Transitional  Small  Business  Disclosure  Format   Yes     No  X
                                                             ---    ---


<PAGE>
                 NANOPIERCE TECHNOLOGIES, INC. AND SUBSIDIARIES
                                      INDEX


PART  I  -  FINANCIAL  INFORMATION

Item  1  -  Financial  Statements

                                                                            PAGE
                                                                            ----

     Independent  Accountants'  Report                                       F-2

     Condensed  Consolidated  Balance  Sheet  -
          September  30,  2002                                               F-3

     Condensed  Consolidated  Statements  of  Operations  -
          Three  months  ended  September  30,  2002  and  2001              F-4

     Condensed  Consolidated  Statements  of  Comprehensive
          Loss  -  Three  months  ended  September  30,  2002 and 2001       F-5

     Condensed  Consolidated  Statement  of  Changes  in  Stockholders'
          Equity  -  Three  months  ended  September  30,  2002              F-6

     Condensed  Consolidated  Statements  of  Cash  Flows  -
          Three  months  ended  September  30,  2002  and  2001              F-7

     Notes  to  Condensed  Consolidated  Financial  Statements               F-8


Item  2.   Management's  Discussion  and  Analysis                             1


PART  II - OTHER  INFORMATION

Item  1.   Legal  Proceedings                                                  4

Item  2.   Changes  in  Securities                                             5

Item  4.   Controls  and  Procedures                                           5

Item  6.   Exhibits  and  Reports  on  Form  8-K                               5


     SIGNATURES                                                                6


     LIST  OF  EXHIBITS                                                        9


<PAGE>
                         INDEPENDENT ACCOUNTANTS' REPORT
                         -------------------------------


Board  of  Directors
Nanopierce  Technologies,  Inc.

We have reviewed the accompanying condensed consolidated balance sheet of
Nanopierce Technologies, Inc. and subsidiaries as of September 30, 2002, the
related condensed consolidated statements of operations, comprehensive loss and
cash flows for the three-month periods ended September 30, 2002 and 2001, and
the condensed consolidated statement of changes in stockholders' equity for the
three-month period ended September 30, 2002. These condensed consolidated
financial statements are the responsibility of the Company's management.

We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with 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 reviews, we are not aware of any material modifications that should
be made to the accompanying condensed consolidated financial statements for them
to be in conformity with accounting principles generally accepted in the United
States of America.


GELFOND  HOCHSTADT  PANGBURN,  P.C.


Denver,  Colorado
November  12,  2002


<PAGE>
<TABLE>
<CAPTION>
                 NANOPIERCE TECHNOLOGIES, INC. AND SUBSIDIARIES
                      Condensed Consolidated Balance Sheet
                               September 30, 2002
                                   (Unaudited)


                                     ASSETS
<S>                                                        <C>
Current assets:
Cash and cash equivalents                                      $376,389
  Accounts receivable                                           103,381
  Note receivable (Note 2)                                       74,917
  Prepaid expenses                                               48,335
                                                           -------------
    Total current assets                                        603,022
                                                           -------------

Property and equipment:
  Machinery                                                     220,698
  Office equipment and furniture                                218,457
  Leasehold improvements                                        138,776
                                                           -------------
                                                                577,931
  Less accumulated depreciation                                (262,343)
                                                           -------------
                                                                315,588
                                                           -------------

Other assets:
  Deposits and other                                            288,490
  Intellectual property rights, net of accumulated
    amortization of $459,315                                    540,685
  Patent and trademark applications, net of
    accumulated amortization of $34,200                         255,380
                                                           -------------
                                                              1,084,555
                                                           -------------

                                                           $  2,003,165
                                                           =============

                      LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Accounts payable                                         $    333,823
  Accrued liabilities                                            92,762
                                                           -------------
    Total liabilities - all current                             426,585
                                                           -------------


Commitments and contingencies (Notes 4 and 5)

Stockholders' equity (Note 3):
  Preferred stock, $0.0001 par value; 5,000,000
    shares authorized:
    Series A; no shares issued and outstanding
    Series B; maximum of 75,000 shares issuable; no
      shares issued and outstanding
    Series C; maximum of 700,000 shares issuable; no
      shares issued and outstanding
  Common stock, $0.0001 par value; 200,000,000 shares
    authorized; 57,651,002 shares issued and outstanding          5,765
  Additional paid-in capital                                 19,508,981
  Accumulated other comprehensive income                        136,394
  Accumulated deficit                                       (18,074,560)
                                                           -------------
               Total shareholders' equity                     1,576,580
                                                           -------------

                                                           $  2,003,165
                                                           =============
</TABLE>
          See notes to the condensed consolidated financial statements.


                                       F-3
<PAGE>
<TABLE>
<CAPTION>
                 NANOPIERCE TECHNOLOGIES, INC. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Operations
                 Three Months Ended September 30, 2002 and 2001
                                   (Unaudited)

                                                   2002         2001
                                               ------------  -----------
<S>                                            <C>           <C>
Revenues                                       $    59,174       24,066
                                               ------------  -----------

Operating expenses:
  Research and development                         169,177      107,452
  General and administrative                       756,751      944,904
  Selling and marketing                            156,285       17,991
                                               ------------  -----------

                                                 1,082,213    1,070,347
                                               ------------  -----------

Loss from operations                            (1,023,039)  (1,046,281)
                                               ------------  -----------

Other income:
     Interest income                                 4,314       49,961
                                               ------------  -----------

Net loss                                       $(1,018,725)    (996,320)
                                               ============  ===========

Net loss per share, basic and diluted          $     (0.02)       (0.02)
                                               ============  ===========

Weighted average number of common shares
outstanding                                     57,643,545   55,701,398
                                               ============  ===========
</TABLE>
          See notes to the condensed consolidated financial statements.


                                      F-4
<PAGE>
<TABLE>
<CAPTION>
                 NANOPIERCE TECHNOLOGIES, INC. AND SUBSIDIARIES
             Condensed Consolidated Statements of Comprehensive Loss
                 Three Months Ended September 30, 2002 and 2001
                                   (Unaudited)


                                                         2002         2001
                                                     ------------  -----------
<S>                                                  <C>           <C>
Net loss                                             $(1,018,725)    (996,320)

Change in unrealized gain on securities                     (118)        (237)

Changes in foreign currency translation adjustments       (4,900)      38,862
                                                     ------------  -----------

Comprehensive loss                                   $(1,023,743)    (957,695)
                                                     ============  ===========
</TABLE>
          See notes to the condensed consolidated financial statements.


                                       F-5
<PAGE>
<TABLE>
<CAPTION>
                                 NANOPIERCE TECHNOLOGIES, INC. AND SUBSIDIARIES
                      Condensed Consolidated Statement of Changes in Stockholders' Equity
                                     Three Months Ended September 30, 2002
                                                  (Unaudited)

                                 Common stock                       Accumulated other                  Total
                          -------------------------    Additional    comprehensive   Accumulated   stockholders'
                             Shares       Amount     paid-in capital     income        deficit        equity
                          ------------  -----------  ---------------  ------------  --------------  -----------
<S>                       <C>           <C>          <C>              <C>           <C>             <C>
Balances,
  July 1, 2002              57,637,002  $     5,764       19,496,447      141,412     (17,055,835)   2,587,788

Common stock issued
  for services                  14,000            1            9,344            -               -        9,345

Warrants issued
  for services                       -            -            3,190            -               -        3,190

Net loss                             -            -                -            -      (1,018,725)  (1,018,725)

Other comprehensive
  income:
    Change in unrealized
      gain on securities             -            -                -         (118)              -         (118)
    Foreign currency
      translation
      adjustments                    -            -                -       (4,900)              -       (4,900)
                          ------------  -----------  ---------------  ------------  --------------  -----------

Balances,
  September 30, 2002        57,651,002  $     5,765       19,508,981      136,394     (18,074,560)   1,576,580
                          ============  ===========  ===============  ============  ==============  ===========
</TABLE>
          See notes to the condensed consolidated financial statements.


                                      F-6
<PAGE>
<TABLE>
<CAPTION>
                 NANOPIERCE TECHNOLOGIES, INC. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Cash Flows
                 Three Months Ended September 30, 2002 and 2001
                                   (Unaudited)


                                                      2002         2001
                                                  ------------  -----------
<S>                                               <C>           <C>
Cash flows from operating activities:
  Net loss                                        $(1,018,725)    (996,320)
                                                  ------------  -----------
  Adjustments to reconcile net loss to net
    cash used in operating activities:
      Amortization expense                             32,239       25,000
      Depreciation expense                             37,418       43,328
      Amortization of deferred legal costs                  -      250,000
      Expenses incurred in exchange for common
        stock and warrants                             12,535            -
    Changes in operating assets and liabilities:
      Increase in accounts receivable                  (4,814)     (30,676)
      (Increase) decrease in prepaid expenses           6,028       18,908
      (Increase) decrease in deposits and
        other assets                                    4,024      (47,061)
      Increase in accounts payable and
        accrued liabilities                           146,412       27,610
      Increase in deferred revenue                          -       37,167
                                                  ------------  -----------
  Total adjustments                                   233,842      324,276
                                                  ------------  -----------

Net cash used in operating activities                (784,883)    (672,044)
                                                  ------------  -----------

Cash flows from investing activities:
  Increase in patent and trademark applications       (19,973)     (31,479)
  Increase in note receivable                               -      (35,000)
  Purchase of property and equipment                   (3,982)     (87,388)
  Payments received on notes receivable                95,862      399,590
                                                  ------------  -----------

Net cash provided by investing activities              71,907      245,723
                                                  ------------  -----------

Effect of exchange rate changes on cash
  and cash equivalents                                 (3,712)       8,798
                                                  ------------  -----------

Net decrease in cash and cash equivalents            (716,688)    (417,523)

Cash and cash equivalents, beginning                1,093,077    3,384,536
                                                  ------------  -----------

Cash and cash equivalents, ending                 $   376,389    2,967,013
                                                  ============  ===========
</TABLE>

          See notes to the condensed consolidated financial statements.


                                      F-7
<PAGE>
                 NANOPIERCE TECHNOLOGIES, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                 Three Months Ended September 30, 2002 and 2001
                                   (Unaudited)


1.   Business, Organization and Summary of Significant Accounting Policies:

     Presentation of Interim Information:

     The accompanying condensed consolidated financial statements include the
     accounts of Nanopierce Technologies, Inc., a Nevada corporation (the
     Company), its wholly owned subsidiary, Nanopierce Connections Systems,
     Inc., a Nevada Corporation (NCOS) which was incorporated in 2002, and its
     wholly owned foreign subsidiaries, Nanopierce Card Technologies GmbH,
     Hohenbrunn (NCT) and ExypnoTech, Gmbh (EPT), both German subsidiaries,
     which were incorporated in 2000 and 2002, respectively. All significant
     intercompany accounts and transactions have been eliminated in
     consolidation.

     In the opinion of the management of the Company, the accompanying unaudited
     condensed consolidated financial statements include all material
     adjustments, including all normal recurring adjustments, considered
     necessary to present fairly the financial position and operating results
     for the periods presented. The financial statements and notes are presented
     as permitted by Form 10-QSB, and do not contain certain information
     included in the Company's last Annual Report on Form 10-KSB for the fiscal
     year ended June 30, 2002. It is the Company's opinion that, when the
     interim statements are read in conjunction with the June 30, 2002 Annual
     Report on Form 10-KSB, the disclosures are adequate to make the information
     presented not misleading. Interim results are not necessarily indicative of
     results for a full year or any future period.

     The Company's financial statements for the three months ended September 30,
     2002 have been prepared on a going concern basis, which contemplates the
     realization of assets and the settlement of liabilities and commitments in
     the normal course of business. The Company reported a net loss of
     $1,018,725 for the three months ended September 30, 2002, and an
     accumulated deficit of $18,074,560 as of September 30, 2002. The Company
     has not recognized any significant revenues from its PI technology and
     expects to incur continued cash outflows. The Company has also experienced
     difficulty and uncertainty in meeting its liquidity needs. These factors
     raise substantial doubt about the Company's ability to continue as a going
     concern. The financial statements do not include any adjustments relating
     to the recoverability and classification of assets or the amounts and
     classification of liabilities that might be necessary should the Company be
     unable to continue as a going concern.

     To address its current cash flow concerns, the Company is in discussions
     with investment bankers and financial institutions attempting to raise
     funds to support current and future operations. This includes attempting to
     raise additional working capital through the sale of additional capital
     stock or through the issuance of debt. Currently, the Company does not have
     a revolving loan agreement with any financial institution, nor can the
     Company provide any assurance it will be able to enter into any such
     agreement in the future, or be able to raise funds through a further
     issuance of debt or equity in the Company. The Company also believes sales
     of its products and technology license rights may provide additional funds
     to meet the Company's capital requirements.


                                      F-8
<PAGE>
                 NANOPIERCE TECHNOLOGIES, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                 Three Months Ended September 30, 2002 and 2001
                                   (Unaudited)


     Business:

     The Company is engaged in the design, development and licensing of products
     using its intellectual property, the PI Technology. The PI Technology
     consists of patents, pending patent applications, patent applications in
     preparation, trade secrets, trade names, and trademarks. The PI Technology
     improves electrical, thermal and mechanical characteristics of electronic
     products. The Company has designated and is commercializing its PI
     Technology as the Nanopierce Connection System (NCS) and has begun to
     market the PI Technology to companies in various industries for a wide
     range of applications.

     NCOS business activities are to include the licensing, sale and/or
     manufacturing of certain electronic products using the NCS technology.
     Through September 30, 2002, NCOS activities consisted of research and
     development and administrative functions. NCT activities through September
     30, 2002 consisted primarily of providing software development and
     implementation services, and performing administrative, research and
     development, and selling and marketing activities. EPT proposes to engage
     in the manufacturing of inlay components used in, among other things, Smart
     Labels, which is a paper sheet holding a chip containing module that is
     capable of memory storage and/or processing.

     Business Risk:

     The Company is subject to risks and uncertainties common to
     technology-based companies, including rapid technological change,
     dependence on principle products and third party technology, new product
     introductions and other activities of competitors, dependence on key
     personnel, and limited operating history.

     International Operations:

     The Company's foreign subsidiaries (NCT and EPT) operations are located in
     Germany. NCT and EPT transactions are conducted in currencies other than
     the U.S. dollar, (the currency into which the subsidiaries' historical
     financial statements have been translated) primarily the Euro. As a result,
     the Company is exposed to adverse movements in foreign currency exchange
     rates. In addition, the Company is subject to risks including adverse
     developments in the foreign political and economic environment, trade
     barriers, managing foreign operations and potentially adverse tax
     consequences. There can be no assurance that any of these factors will not
     have a material adverse effect on the Company's financial condition or
     results of operations in the future.

     Loss Per Share:

     Statement of Financial Accounting Standards (SFAS) No. 128, Earnings per
     Share, requires dual presentation of basic and diluted earnings or loss per
     share (EPS) with a reconciliation of the numerator and denominator of the
     basic EPS computation to the numerator and denominator of the diluted EPS
     computation. Basic EPS excludes dilution. Diluted EPS reflects the
     potential dilution that could occur if securities or other contracts to
     issue common stock were exercised or converted into common stock or
     resulted in the issuance of common stock that then shared in the earnings
     of the entity.


                                       F-9
<PAGE>
                 NANOPIERCE TECHNOLOGIES, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                 Three Months Ended September 30, 2002 and 2001
                                   (Unaudited)

     Loss per share of common stock is computed based on the average number of
     common shares outstanding during the period. Stock options and warrants are
     not considered in the calculation, as the impact of the potential common
     shares (10,927,661 shares at September 30, 2002 and 9,202,661 shares at
     September 30, 2001) would be to decrease loss per share. Therefore, diluted
     loss per share is equivalent to basic loss per share.

     Recently issued accounting pronouncement:

     In August 2001, the FASB issued SFAS No. 144, Accounting for the Impairment
     or Disposal of Long-Lived Assets, which addresses accounting and financial
     reporting for the impairment or disposal of long-lived assets. This
     statement is effective for fiscal years beginning after December 15, 2001.
     The adoption of SFAS No. 144 did not have an impact on the Company's
     financial condition or results of operations.

2.   Note receivable:

     At September 30, 2002, the Company had a $74,917 loan receivable. The loan
     was unsecured with interest at 5%. This loan and accrued interest was
     repaid to the Company in October 2002.

3.   Stockholders' Equity:

     During the three months ended September 30, 2002, the Company issued 14,000
     shares of common stock to third parties in exchange for services valued at
     $9,345 based on the quoted market price of the Company's common stock on
     the date the services were performed.

     During the three months ended September 30, 2002, the Company granted stock
     options to purchase 85,000 shares of common stock at exercise prices of
     $0.58 to $0.97 per share to employees of the Company. During the three
     months ended September 30, 2001, the Company granted stock options to
     purchase 140,000 shares of common stock at exercise prices of $0.66 to
     $0.67 per share to employees and a director of the Company. The exercise
     prices of the options granted in 2002 and 2001 were based upon the quoted
     market prices of the Company's common stock on the dates of grant. The
     stock options expire in the years 2011 and 2012.

     During the three months ended September 30, 2002, the Company issued
     warrants to purchase 20,000 shares of common stock at $1.25 per share for
     services received from a third party. The warrants expire in 2005. The
     warrants were valued at $3,190 using the Black-Scholes pricing model, and
     that expense was charged to general and administrative expense.

     During October 2002, the Company sold 1,119,999 shares of common stock and
     granted warrants to purchase 795,000 shares of common stock at exercise
     prices ranging from $0.30 to $0.50 for $379,960. The warrants are
     exercisable through 2007 and contain a cashless exercise provision. The
     funds were raised to support operations.

     During October 2002, the Company issued 56,388 shares of common stock upon
     the cashless exercise of warrants to purchase 105,000 shares of common
     stock. Also during October 2002, the Company extended the expiration dates
     by one year on warrants to purchase 472,500 shares of common stock. The
     warrants were scheduled to expire from October 2002 through December 2002.


                                      F-10
<PAGE>
                 NANOPIERCE TECHNOLOGIES, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                 Three Months Ended September 30, 2002 and 2001
                                   (Unaudited)


4.   License Agreements:

     The Company and Louis DiFrancesco, the inventor of the PI Technology, were
     involved in litigation relating to Nanopierce's ownership of its
     intellectual property and the rights as to who should receive royalty
     payments from licenses which were outstanding as of September 3, 1996. In
     October 2002, the Company and DiFrancesco signed a settlement agreement to
     be enforced by Court Order. The Court Order declares that Nanopierce owns
     the entire, exclusive, incontestable ownership, right, title and interest
     in the Patents. The Court Order further declares Mr. DiFrancesco owns the
     sole, exclusive, and incontestable right, to receive and collect all
     royalties and other payments from all licenses outstanding on September 3,
     1996. In addition, Mr. DiFrancesco was also granted a limited, two year,
     non-transferable, with no right to sublease, royalty-bearing license. The
     Court Order cannot be appealed.

5.   Financing Agreement Suit:

     In connection with a financing obtained in October 2000, the Company filed
     various actions in the United States District Court for the District of
     Colorado against, among others, Harvest Court, LLC, Southridge Capital
     Investments, LLC, Daniel Pickett, Patricia Singer and Thomson Kernaghan,
     Ltd. for violations of federal and state securities laws, conspiracy,
     aiding and abetting and common law fraud among other claims. The Company is
     seeking various forms of relief including actual, exemplary and treble
     damages. As a result of various procedural rulings in January 2002, the
     United States District Court for the District of Colorado transferred the
     case pending before it to the United States District Court for the southern
     District of New York, New York City, New York.

     In May 2001, Harvest Court, LLC filed suit against the Company in the
     Supreme Court of the State of New York, County of New York. The suit
     alleges that the Company breached the October 20, 2000 Purchase Agreement,
     by not issuing 7,418,895 free trading shares of the Company's common stock
     in connection with the reset provisions of the Purchase Agreement due on
     the second reset date and approximately 4,545,303 shares due in connection
     with the third reset date. Harvest Court, LLC is seeking the delivery of
     such shares or damages in the alternative. In August 2001, the Supreme
     Court of the State of New York, County of New York issued a preliminary
     injunction ordering the Company to reserve and not transfer the shares
     allegedly due to Harvest Court.

     In September 2001, a suit was filed by Thomson Kernaghan & Co., Ltd.
     against the Company and certain officers/directors of the Company seeking
     general damages for defamation and punitive, aggravated and exemplary
     damages that aggregate in excess of $3,000,000.

     The Company intends to vigorously prosecute this litigation and does not
     believe the outcome of this litigation will have a material adverse effect
     on the financial condition, results of operations or liquidity of the
     Company. However, it is too early at this time to determine the ultimate
     outcome of these matters.


                                      F-11
<PAGE>
                 NANOPIERCE TECHNOLOGIES, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                 Three Months Ended September 30, 2002 and 2001
                                   (Unaudited)


6.   Foreign and Domestic Operations:

     Operating results and long-lived assets as of and for the three month
     periods ended September 30, 2002 and 2001, by geographic area, are
     presented in the table below. There were no significant amounts of
     transfers between geographic areas.

                                                    2002         2001
                                                  -------      -------
               Revenues:
                 United  States                   $    -            -
                 Germany                           59,174       24,066
                                                  -------      -------

                 Total                            $59,174       24,066
                                                  =======      =======

               Long-lived  assets  at
                 September  30,  2002:
                   United  States                 $ 1,076,774
                   Germany                             34,879
                                                  -----------

                   Total                          $ 1,111,653
                                                  ===========


                                      F-12
<PAGE>
Item  2  -  Management's  Discussion  and  Analysis


     The statements contained in this Form 10-QSB contain "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 and involve risks and uncertainties that could cause actual results to
differ materially from the results, financial or otherwise, or other
expectations described in such forward-looking statements. Any forward-looking
statement or statements speak only as of the date on which such statements were
made, and the Company undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date on which such
statements are made or reflect the occurrence of unanticipated events.
Therefore, forward-looking statements should not be relied upon as prediction of
actual future results.

The independent auditors' report on the Company's financial statements as of
June 30, 2002, and for each of the years in the two-year period then ended,
included a "going concern" explanatory paragraph, that describes substantial
doubt about the Company's ability to continue as a going concern. Management's
plans in regard to the factors prompting the explanatory paragraph are discussed
below and also in Note 2 in Notes to the condensed consolidated financial
statements.

Results of operations

     The Company recognized $59,174 in revenues during the quarter ended
September 30, 2002 compared to $24,066 in the quarter ended September 30, 2001.
The $59,174 was solely generated from various software development contracts
generated by NanoPierce Card. The Company expects to continue to recognize
revenue from software development contracts currently in place and being
developed at this time. In addition, the Company expects to generate revenues in
future from the preparation of samples for those potential customers that it has
non-disclosure agreements and cooperation agreements and from the sale of inlays
through ExypnoTech.

     The Company recognized $4,314 in interest income during the quarter ended
September 30, 2002 compared to $49,961 in the quarter ended September 30, 2001.
The decrease of $45,647 is due primarily to the reduction in cash on deposit
with banks.

     Total operating expenses during the quarter ended September 30, 2002 were
$1,082,213, compared to $1,070,347 for the quarter ended September 30, 2001. The
increase of $11,866 is attributable to an increase in operational activities, as
described below.

     General and administrative expenses during the quarter ended September 30,
2002 were $756,751 compared to $944,904 for the quarter ended September 30,
2001. The decrease of $188,153 is primarily attributable to a decrease in legal
expenses. Selling and marketing expenses during the quarter ended September 30,
2002 were $156,285 compared to $17,991 during the quarter ended September 30,
2001. The increase of $138,294 was due to an increase in marketing activities
throughout the Company. Research and development expenses during the quarter
ended September 30, 2002 were $169,177 compared to $107,452 for the quarter
ended September 30, 2001. The increase of $61,725 was due to an increase in
activities at NanoPierce Connection pertaining to the further development and
expansion of the NCS technology.

     During the quarter ended September 30, 2002 the Company recognized net
losses of $1,018,725 compared to net losses of $996,320 during the quarter ended
September 30, 2001. The increase of $22,405 is explained by the increase of
$11,866 in operating expenses and decrease in interest income of $45,647 offset
by the increase of $35,108 in revenues.


                                        1
<PAGE>
Liquidity  and  financial  condition

     The Company's current operations are not generating positive cash flows. In
April 2002, the Company entered into a $2,000,000 Equity Financing. The Company
received the first of two available tranches of $1,000,000 per tranche and in
return issued 800,000 free trading common shares to the investor. In addition,
the Company issued 1,073,000 of its free-trading common shares, which are being
held by an escrow agent for the potential issuance upon exercise of the warrants
issued in connection with the financing. Such warrants have a term of five
years, with an exercise price of $1.45 per share. The second tranche of
$1,000,000 was made available to the Company sixty days after the take down of
the first. The Company declined to take down the second tranche, due to
depressed market conditions, at that time, and possible dilutive effects on its
stock. The Second tranche is no longer available to the Company.

     During the fiscal year ended June 30, 2001, the Company loaned $500,000 to
an unrelated third party, Global Capital Partners, Inc. ("Global") in exchange
for a 12% note receivable due in November 2001. At June 30, 2001, the note
balance was $375,000, of which an additional $100,000 was received in August
2001. The note was not paid in November 2001 and therefore, in January 2002, the
remaining balance of the note, principal of $275,000 and accrued interest of
$14,630 were assigned to an unrelated third party. The terms of the note were
changed with the assignment; the note was amended to bear interest at 5% per
annum and extended the due date to October 2002. During the quarter ended
September 30, 2002, a payment of $73,141 was made on the note. At September 30,
2002, the note had an outstanding balance of $74,917. Subsequently, on October
2, 2002, the remaining principal balance and accrued interest on the note was
paid in full.

     In April 2002, the Company loaned $50,000 to a representative of the
unrelated third party, which had been assigned the Global note, in exchange for
an unsecured, 8% note receivable with a final maturity in October 2002. During
the quarter ended September 30, 2002, the outstanding balance of the note,
$26,858.68, of which $788.53 was accrued interest, was paid in full.

     During the quarter ended September 30, 2002, the Company expanded the scope
of its patent and trademark applications. The intellectual property is being
amortized using the straight-line method over ten years. On September 30, 2002,
the Company has patent and trademark application costs of $255,380, compared to
$114,789 on September 30, 2001. The increase of $140,591 was due the Company's
efforts to increase patent and trademark protection overseas.


Plan  of  Operations

     The Company has signed various nondisclosure and cooperation agreements
with companies both overseas and in the United States. The agreements are
applicable to the application of the Company's NCS technology and/or its
WaferPierce method for various products in the smart card/smart label
industries, the LED industry and in the semiconductor industry. Management is
pursuing the development of further similar agreements both nationally and
internationally with additional companies in not only these but other
industries. The Company is also involved in creating samples and testing in
connection with these agreements.


                                        2
<PAGE>
     The Company is continuing to look for additional financing through
marketing of its NCS through the pursuit of licensing, joint ventures,
co-manufacturing or other similar arrangements with industry partners. The
failure to secure such a relationship will result in the Company requiring
substantial additional capital and resources to bring its NCS to market. To the
extent the Company's operations are not sufficient to fund the Company's capital
requirements, the Company may enter into a revolving loan agreement with
financial institutions or attempt to raise capital through the sale of
additional capital stock or through the issuance of debt. At the present time
the Company does not have a revolving loan agreement with any financial
institution nor can the Company provide any assurance that it will be able to
enter into any such agreement in the future or be able to raise funds through
the further issuance of debt or equity in the Company. The Company continues to
evaluate additional merger and acquisition opportunities.

Recently issued accounting pronouncement

     In August 2001, the Financial Accounting Standards Board ("FASB") issued
SFAS No. 144, Accounting for Impairment or Disposal of Long-Lived Assets, which
addresses accounting and financial reporting for the impairment or disposal of
long-lived assets. This statement is effective for fiscal years beginning after
December 15, 2001. Adoption of SFAS No. 144 did not have an impact on the
Company's financial condition and results of operations.


                                        3
<PAGE>
                           PART II - OTHER INFORMATION


Item  1  -  Legal  Proceedings

License  Agreements
     The Company and Louis DiFrancesco, the inventor of the PI Technology, were
     involved in litigation relating to Nanopierce's ownership of its
     intellectual property and the rights as to who should receive royalty
     payments from licenses, which were outstanding as of September 3, 1996. On
     October 8, 2002, the Company and DiFrancesco signed a settlement agreement
     to be enforced by Court Order. The Court Order, declares, owns the entire,
     exclusive, incontestable ownership, right, title and interest in the
     Patents." The Court Order further declares Mr. DiFrancesco owns the sole,
     exclusive, and incontestable right, to receive and collect all royalties
     and other payment from all licenses outstanding on September 3, 1996. In
     addition, Mr. DiFrancesco was also granted a limited, two year,
     non-transferable, with no right to sublease, royalty-bearing license. The
     Court Order cannot be appealed.

Financing  Agreement
     In connection with a financing obtained in October 2000, the Company filed
     various actions in the United States District Court for the District of
     Colorado against, among others, Harvest Court, LLC, Southridge Capital
     Investments, LLC, Daniel Pickett, Patricia Singer and Thomson Kernaghan,
     Ltd. for violations of federal and state securities laws, conspiracy,
     aiding and abetting and common law fraud among other claims. The Company is
     seeking various forms of relief including actual, exemplary and treble
     damages. As a result of various procedural rulings in January 2002, the
     United States District Court for the District of Colorado transferred the
     case pending before it to the United States District Court for the Southern
     District of New York, New York City, New York.

     In May 2001, Harvest Court, LLC filed suit against the Company in the
     Supreme Court of the State of New York, County of New York. The suit
     alleges that the Company breached the October 20, 2000 Purchase Agreement,
     by not issuing 7,418,895 free trading shares of the Company's common stock
     in connection with the reset provisions of the Purchase Agreement due on
     the second reset date and approximately 4,545,303 shares due in connection
     with the third reset date. Harvest Court, LLC is seeking the delivery of
     such shares or damages in the alternative. In August 2001, the Supreme
     Court of the State of New York, County of New York issued a preliminary
     injunction ordering the Company to reserve and not transfer the shares
     allegedly due to Harvest Court.

     In September 2001, a suit was filed by Thomson Kernaghan & Co., Ltd.
     against the Company and certain officers/directors of the Company seeking
     general damages for defamation and punitive, aggravated and exemplary
     damages that aggregate in excess of $3,000,000.

     The Company intends to vigorously prosecute this litigation and does not
     believe the outcome of this litigation will have a material adverse effect
     on the financial condition, results of operations or liquidity of the
     Company. However, it is too early at this time to determine the ultimate
     outcome of these matters.


                                        4
<PAGE>
Item  2  -  Changes  in  Securities


     The  Company  made  the following unregistered sales of its securities from
July  1,  2002  to  September  30,  2002.

 Date      Title of      Amount of
of Sale   Securities    Securities  Consideration       Purchaser
--------  ------------  ----------  ------------------  ------------------
08/01/02  Common Stock    7,000     Investment banking  DJI Partners, LLC
                                    services

08/01/02  Warrant        10,000     Investment banking  DJI Partners, LLC
                                    services

09/04/02  Common Stock    7,000     Investment banking  DJI Partners, LLC
                                    services

09/04/02  Warrant        10,000     Investment banking  DJI Partners, LLC
                                    services


Item  4.  Controls  and  procedures

A review and evaluation was performed by the Company's management, including the
Company's  Chief  Executive  Officer (the "CEO) and Chief Financial Officer (the
"CFO"),  of  the  effectiveness  of  the  design  and operation of the Company's
disclosure  controls  and  procedures  as  of a date within 90 days prior to the
filing  of  this quarterly report.  Based on that review and evaluation, the CEO
and  CFO  have  concluded  that  the  Company's  current disclosure controls and
procedures,  as  designed  and implemented, were effective.  There have  been no
significant  changes in the Company's internal controls or in other factors that
could  significantly  affect  the  Company's internal controls subsequent to the
date  of  their  evaluation.  There  were  no  significant  material  weaknesses
identified  in  the  course  of  such  review  and evaluation and, therefore, no
corrective  measures  were  taken  by  the  Company.

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

     (a)  Exhibits:

     Exhibit  11  Computation  of  Net  Loss  Per  Share

     (b)  Reports  on  Form  8K:
          None


                                        5
<PAGE>
                                   SIGNATURES

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


                                     NANOPIERCE  TECHNOLOGIES,  INC.
                                     (Registrant)


November 12, 2002                /s/ Paul  H.  Metzinger
                                 -----------------------------------------------
                                     Paul  H.  Metzinger,  President  &  CEO


November 12, 2002                /s/ Kristi  J.  Kampmann
                                 -----------------------------------------------
                                     Kristi J. Kampmann, Chief Financial Officer


                                        6
<PAGE>
                                  CERTIFICATION


I,  Paul  H.  Metzinger,  certify  that:

1.   I have reviewed this quarterly report on Form 10-QSB of NanoPierce
     Technologies, Inc.;

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact necessary to make the statements made, in
     light of the circumstances under which such statements were made, not
     misleading with respect to the period covered by this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act rules 13a-14 and 15d-14) for the registrant and have:

     a.   Designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;
     b.   Evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date") and
     c.   Presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent functions):

     a.   All significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and
     b.   Any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

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

Date:  November  12,  2002


                                    /s/  Paul  H.  Metzinger
                                    -----------------------------------
                                    Paul  H.  Metzinger,
                                    Chief Executive Officer & President


                                        7
<PAGE>
                                  CERTIFICATION


I,  Kristi  J.  Kampmann,  certify  that:

1.   I have reviewed this quarterly report on Form 10-QSB of NanoPierce
     Technologies, Inc.;

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact necessary to make the statements made, in
     light of the circumstances under which such statements were made, not
     misleading with respect to the period covered by this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act rules 13a-14 and 15d-14) for the registrant and have:

     a.   Designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;
     b.   Evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date") and
     c.   Presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent functions):

     a.   All significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and
     b.   Any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

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

Date:  November  12,  2002


                                    /s/  Kristi  J.  Kampmann
                                    -----------------------------------
                                    Kristi  J.  Kampmann,
                                    Chief  Financial  Officer


                                        8
<PAGE>
                                LIST OF EXHIBITS


Exhibit  11     Computation  of  Net  Loss  Per  Share


                                        9
<PAGE>