================================================================================



                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                   FORM 10-QSB


                Quarterly Report Pursuant to Section 13 or 15 (d)
                     of The Securities Exchange Act of 1934


                  For the Quarterly Period Ended June 30, 2004


                         Commission File Number 0-18515




                            SPECTRASOURCE CORPORATION
             ------------------------------------------------------
             (Exact Name of Registrant as specified in its charter)




            NEVADA                                       93-0960302
-------------------------------             ------------------------------------
(State or other jurisdiction of             (IRS Employer Identification Number)
 incorporation or organization)




                       14900 Westheimer Houston, TX 77082
--------------------------------------------------------------------------------
                    (Address of Principal Executive Offices)

         Company's telephone number, including area code: (281) 558-3032




Indicate by check mark whether the Company: (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 such shorter period that the Company was required to
file such reports); and (2) has been subject to such filing requirements for the
past ninety (90) days; Yes (X) No ()

As of June 30, 2004, there were 7,184,872 shares of ($0.001) par value Common
Stock (the Company's only class of voting stock) outstanding.


================================================================================
<PAGE>

                         ==============================

                                   FORM 10-QSB

                            SPECTRASOURCE CORPORATION

                                TABLE OF CONTENTS

PART I      Financial Information

Item  1.    Financial Statements (Unaudited)

            a)  Consolidated Balance Sheets at June 30, 2004 and September 30,
                2003

            b)  Consolidated Statements of Income for the three and nine month
                periods ended June 30, 2004 and June 30, 2003;

            c)  Consolidated Statements of Cash Flows for the nine months ended
                June 30, 2004 and June 30, 2003

            d)  Notes to Consolidated Financial Statements

            e)  Accountant's Review Report


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



Part II     Other Information


Item 6.

            (31)    Section 302 Certifications

                    31.1 Section 302 Certification.

                    31.2 Section 302 Certification.



            (32)    Section 906 Certification

                    32.1 Section 906 Certification.



SIGNATURES
<PAGE>

PART I      FINANCIAL INFORMATION
ITEM 1.     FINANCIAL STATEMENTS (UNAUDITED)

                   SPECTRASOURCE CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET


<TABLE><CAPTION>
                                                            JUNE 30,       SEPTEMBER 30,
                                                              2004             2003
                                                          ------------     ------------
                                                           (UNAUDITED)
<S>                                                       <C>              <C>
Assets
     Current Assets
        Cash                                              $    102,858     $    142,257
        Accounts Receivable, less reserve of $118,482
          and $125,235, respectively                         1,261,087        1,303,293
        Prepaid Expenses                                             0                0
        Inventory                                            1,248,167        1,229,859
                                                          ------------     ------------
     Total Current Assets                                    2,612,113        2,675,409
                                                          ------------     ------------

        Fixed Assets,net of Accumulated Depreciation
          of $512,267 and $495,715, respectively               422,500          417,787
        Goodwill, net of $0 impairment                         399,097          400,766
        Other Assets and Investments                            32,454           38,069
        Deferred Tax Asset                                     372,289          376,489
                                                          ------------     ------------

Total Assets                                              $  3,838,452     $  3,908,520
                                                          ============     ============


Liabilities and Stockholders' Equity
     Current Liabilities
        Accounts payable and accrued expenses             $    789,479     $    760,134
        Short Term Debt                                        766,244          598,600
        Current Maturities of Long Term Debt                    78,705          179,597
        Notes Payable Shareholders                              55,499           55,999
                                                          ------------     ------------
     Total Current Liabilities                               1,689,927        1,594,330
                                                          ------------     ------------

     Long Term Debt
        Notes Payable, Banks                                   208,728          173,814
        Notes Payable Shareholders                           1,325,707        1,474,107
        Due to Affiliates                                      122,000          198,010
                                                          ------------     ------------
     Total Long Term debt                                    1,656,436        1,845,931
                                                          ------------     ------------

     Stockholders' Equity (Deficit)

        Common stock, $.001 par value, 10,000,000
          shares authorized, with 7,184,872 shares
          issued and outstanding at June 30, 2004 and
          September 30, 2003, respectively                      17,356           17,356
        Capital in excess of par value                       3,530,704        3,530,704
        Accumulated Deficit                                 (3,055,970       (3,079,801)
                                                          ------------     ------------
     Total Stockholders' Equity                                492,090          468,259
                                                          ------------     ------------
Total Liabilities and Stockholders' Equity                $  3,838,452     $  3,908,520
                                                          ============     ============
</TABLE>

        See Notes to Financial Statements and Accountant's Review Report
<PAGE>

                   SPECTRASOURCE CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED STATEMENT OF INCOME (LOSS)



<TABLE><CAPTION>
                                                             THREE             NINE            THREE             NINE
                                                             MONTHS           MONTHS           MONTHS           MONTHS
                                                             ENDED            ENDED            ENDED            ENDED
                                                            JUNE 30,         JUNE 30,         JUNE 30,         JUNE 30,
                                                              2004             2004             2003             2003
                                                          ------------     ------------     ------------     ------------
                                                          (UNAUDITED)      (UNAUDITED)      (UNAUDITED)      (UNAUDITED)
<S>                                                       <C>              <C>              <C>              <C>
Sales                                                     $  2,285,414     $  6,646,490     $  2,091,683     $  5,650,935
Cost of Sales                                                1,497,868        4,321,985        1,222,705        3,446,079
                                                          ------------     ------------     ------------     ------------
       Gross Profit                                            787,546        2,324,505          868,978        2,204,856
                                                          ------------     ------------     ------------     ------------
Costs of Products Sold
       Selling and administrative expenses                      37,070           90,016           34,394          102,395
       Depreciation and amortization                            21,586           66,411           27,512           72,370
       Other costs and operating expenses                      746,437        2,143,934          734,483        1,948,675
                                                          ------------     ------------     ------------     ------------
Total Costs of Products Sold                                   805,093        2,300,361          796,390        2,123,441
                                                          ------------     ------------     ------------     ------------

Income (Loss) from operations                                  (17,547)          24,143           72,588           81,415
Other Income:
       Interest Income
       Miscellaneous Other Income (Expense)                        103            3,853           (1,922)           8,591
                                                          ------------     ------------     ------------     ------------
Total Other Income                                                 103            3,853           (1,922)           8,591
                                                          ------------     ------------     ------------     ------------

Income before taxes                                            (17,444)          27,997           70,666           90,006

Provision for income taxes                                      (2,616)            4200           12,276           18,852
                                                          ------------     ------------     ------------     ------------

Net Income or (Loss)                                      $    (14,828)    $     23,797     $     58,390     $     71,154
                                                          ============     ============     ============     ============

Basic and diluted EPS:                                           (0.01)           (0.00)            0.01             0.01

Weighted average number of common shares                     7,184,872        7,184,872        7,184,872        7,184,872


certain items reclassed for more accurate comparison
</TABLE>

                      See Notes to Consolidated Statements
<PAGE>

                   SPECTRASOURCE CORPORATION AND SUBSIDIARIES
                       CONSOLIDATED STATEMENT OF CASH FLOW


<TABLE><CAPTION>
                                                           NINE MONTHS     NINE MONTHS
                                                              ENDED           ENDED
                                                             JUNE 30,        JUNE 30,
                                                              2004             2003
                                                          ------------     ------------
                                                           (UNAUDITED)      (UNAUDITED)
<S>                                                       <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income From Operations                                $     23,797     $     71,154
Adjustments to reconcile net income:
     Depreciation                                               66,415           72,370
     Allowance for bad debt                                          0                0
     Deferred Taxes                                              4,200          (17,011)
     (Increase) Decrease in Accounts Receivable                 42,240          (72,910)
     Due from related parties
     (Increase) Decrease in Inventory                          (18,308)        (280,028)
     (Increase) Decrease in Prepaid                              5,615          107,862
     Increase (Decrease) in Accounts Payable                    29,345           68,508
                                                          ------------     ------------

Net cash provided from (used in) operations                    153,300          (50,055)
                                                          ------------     ------------

CASH FLOW FROM INVESTING ACTIVITIES
     LT Asset (Purchases) Dispositions                         (69,455)         (13,001)
     Decrease in LT Deposits
                                                          ------------     ------------

Net cash from investing activities                             (69,455)         (13,001)
                                                          ------------     ------------

CASH FLOW FROM FINANCING ACTIVITIES
     Issuance of Common Stock
     Increase (Decrease) in ST debt                            167,644         (177,500)
     Proceeds (Payment) of LT debt                            (214,377)         (70,870)
     (Increase) Decrease in LT Investments
     Increase (Decrease) in due to related parties             (76,510)         282,031
                                                          ------------     ------------

Net cash provided by financing activities                     (123,243)          33,661
                                                          ------------     ------------

Net Increase (Decrease) in cash and equivalents                (39,399)         (29,394)
Cash and equivalents, beginning of period                      142,257          156,350
                                                          ------------     ------------
Cash and equivalents, end of period                       $    102,858     $    126,956
                                                          ============     ============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
     Cash paid for interest                               $     39,838     $     46,376

</TABLE>
<PAGE>

                            SPECTRASOURCE CORPORATION
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    BASIS OF PRESENTATION
The accompanying interim financial statements have been prepared by the Company,
without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations. These consolidated financial statements should be read in
conjunction with the financial statements and the notes thereto included in the
Company's Annual Report on Form 10-KSB for the year ended September 30, 2003.

In the opinion of management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position,
results of operations, and cash flows as of June 30, 2004 and for the nine
months ended June 30, 2004 and June 30, 2003, have been made. Certain accounts
have been reclassified for clearer reporting. The results of operations for the
period ended June 30, 2004 are not necessarily indicative of the operating
results for the full year.

    PRINCIPLES OF CONSOLIDATIONS
The consolidated financial statements include the accounts of the Company and
its subsidiaries after elimination of all significant inter-company
transactions.

    USE OF ESTIMATES
The preparation of these financial statements requires the use of certain
estimates by management in determining the Company's' consolidated assets,
liabilities, revenues and expenses. Actual results could differ from those
estimates.

    CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of highly liquid investments that are readily
convertible into cash and have a maturity of three months or less.

    REVENUE RECOGNITION
Revenue from product sales is recognized as risk and title to the product
transfer to the customer, which usually occurs when shipment, delivery, or
installation, whichever is applicable, is made. The Company accrues for
allowances for doubtful accounts based on its experience.

    INVENTORIES
Inventories are carried at the lower of cost or market, using average cost.
Materials and supplies are valued using the average cost method.

    PROPERTY AND EQUIPMENT
Property and equipment is stated at cost less accumulated depreciation. Property
and equipment is depreciated on the straight-line method over their estimated
useful lives, which in the opinion of management is adequate to allocate the
cost of the property and equipment over their estimated useful lives.
Expenditures for renewals, replacements, and betterments are
<PAGE>

capitalized. Maintenance and repairs are charged to operating expenses as
incurred. Upon sale or other disposition, the applicable amounts of asset cost
and accumulated depreciation are removed from the accounts and the net amount,
less proceeds from disposal, is charged against or credited to income.

    GOODWILL
Goodwill represents the excess of purchase price paid over the value assigned to
the net tangible and identifiable intangible assets of a business acquired. As
described below under Recent Accounting Standards, no amortization of goodwill
has been recorded; instead, goodwill will be reviewed for impairment based on
fair values.

    DEFERRED SOFTWARE COSTS
Costs to purchase and to develop software for internal use are deferred and
amortized on a straight-line basis over 5 years.

    INCOME TAXES
The Company follows the asset and liability approach to account for deferred
income taxes. Under this method, deferred taxes are recognized for temporary
differences between the book and tax basis of assets and liabilities. These
temporary differences are measured using the applicable enacted tax rates and
provisions of the enacted tax laws. Valuation allowances are provided against
deferred tax assets when it is more likely than not that some portion or all of
the deferred tax asset will not be realized.

    COMPREHENSIVE INCOME
Financial Accounting Standards Board ("FASB") Statement No. 130, "Reporting
Comprehensive Income", became effective for fiscal years beginning after
December 15, 1997, and establishes standards for reporting and display of
comprehensive income and its components (revenues, expenses, gains and losses)
in a full set of general-purpose financial statements. This Statement requires
that all items that are required to be recognized under accounting standards as
components of comprehensive income be reported in a financial statement that is
displayed with the same prominence as other financial statements. The Company
had no comprehensive income other than net income during the periods included in
the accompanying financial statements.

    EARNINGS PER COMMON SHARE
Earnings per common share is computed by dividing net income by the weighted
average number of common shares outstanding during the year.

    RECENT ACCOUNTING PRONOUNCEMENTS
In October, 2003, the FASB issued SFAS No. 147, ACQUISITIONS OF CERTAIN
FINANCIAL INSTITUTIONS--AN AMENDMENT OF FASB STATEMENTS NO. 72 AND 144 AND FASB
INTERPRETATION NO. 9, relating to required methods of accounting applicable in
the acquisition of financial institutions. This statement has no impact on the
Company.

In December 2002, the FASB issued Statement No. 148, "ACCOUNTING FOR STOCK-BASED
COMPENSATION-TRANSITION AND DISCLOSURE." This statement amends Statement No.
123, Accounting for Stock-Based Compensation, to provide alternative methods of
transition for an entity that voluntarily changes to the fair value method of
accounting for stock-based employee compensation. It also amends the disclosure
provisions of Statement No. 123 to require prominent disclosure about the
effects on reported net income of an entity's accounting policy decisions with
respect to stock-based employee compensation. Statement No. 148 also requires
disclosure about those effects in interim financial information. The Company
<PAGE>

adopted the disclosure requirements of Statement No. 148 in the accompanying
financial statements.

In April 2003, the FASB issued Statement No. 149, AMENDMENT OF STATEMENT 133 ON
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. This Statement amends and
clarifies financial accounting and reporting for derivative instruments,
including certain derivative instruments embedded in other contracts
(collectively referred to as derivatives) and for hedging activities under FASB
Statement No. 133, ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES.
This Statement is effective for contracts entered into or modified after June
30, 2003. The Company does not expect adoption of SFAS No. 149 to have a
material impact on its consolidated financial statements.

In May 2003 the FASB issued SFAS No. 150, "ACCOUNTING FOR CERTAIN FINANCIAL
INSTRUMENTS WITH CHARACTERISTICS OF BOTH LIABILITIES AND EQUITY", which requires
that certain financial instruments be presented as liabilities that were
previously presented as equity or as temporary equity. Such instruments include
mandatory redeemable preferred and common stock, and certain options and
warrants. SFAS 150 is effective for financial instruments entered into or
modified after May 31, 2003, and is generally effective at the beginning of the
first interim period beginning after June 15, 2003. This standard has been
adopted and has had no impact on the Company.

NOTE 2. SEGMENT INFORMATION

The Company identifies its segments based on differences in products and
services, as follows:

Gulf Coast Fan & Light, Inc. - ceiling fans systems for the residential and
commercial building market.

Connect Source Communications, Inc. -cabling, wiring, and network systems for
the residential and commercial building market. Security monitoring.

Builders Lighting & Hardware, Inc. - residential and commercial lighting and
hardware fixtures.

The segments are managed as one business unit, utilizing the same sales force,
customer service force, operations management, and headquarter support staff.
Segment information for the nine months ended June 30, 2004 is:

<TABLE><CAPTION>
                                                        Builder's
                                            Connect     Lighting &
                             Gulf Coast      Source      Hardware    All Other      Totals
                             ----------    ---------    ---------    ---------    ---------
<S>                          <C>           <C>          <C>          <C>          <C>
Revenues - External           2,515,384    1,977,170    2,228,935            0    6,721,490
Intersegment revenue             75,000                                              75,000
Cost of Goods Sold            1,504,616    1,396,035    1,421,334                 4,321,985
Depreciation                     30,514       20,410            0       15,487       66,411
Interest Expense                    347       21,951       14,014        3,526       39,838
Segment profit                  -54,081       52,502       42,576      -17,200       23,797
Segment Assets                  875,557      990,518    1,515,155      457,222    3,838,452
Asset Expenditure                             69,455                                 69,455
</TABLE>
<PAGE>

<TABLE><CAPTION>
<S>                          <C>
Reconciliation

Revenues
--------
Revenues - Segments           6,721,490
Intersegment                    -75,000
                             ----------

Consolidated revenue          6,646,490
                             ==========

Profit or Loss
--------------
Profit - Segments                40,997
Profit - Other                  -17,200
                             ----------

Consolidated Net Income          23,797
                             ==========

Assets
------
Assets - Segments             3,381,230
Assets- Other                   457,222
                             ----------

Consolidated Assets           3,838,452
                             ==========

Asset Expenditure
-----------------
Segment                          69,455
Other                                 0
                             ----------

                                 69,455
                             ==========
</TABLE>




Interest revenue is an immaterial item. "Profit-Other" in the amount of -$17,200
consists of deferred tax expense in the amount of $4,200 and various headquarter
expense reimbursements, neither of which was allocated down to the segments.
"Other Assets" in the amount of $457,222 consists of deferred tax asset in the
amount of $372,289, which is not allocated to the segments, and leasehold
improvements and capitalized software at the headquarter level.
<PAGE>

ACCOUNTANT'S REPORT


To The Board of Directors and Stockholders of
SpectraSource Corporation

We have reviewed the accompanying balance sheet of SpectraSource Corporation, a
Nevada corporation, as of June 30, 2004, and the related statements of income,
retained earnings, and cash flows for the quarter then ended, in accordance with
Statements on Standards for Accounting and Review Services issued by the
American Institute of Certified Public Accountant's. All information included in
these financial statements is the representation of the management of
SpectraSource Corporation.

A review consists principally of inquiries of company personnel and analytical
procedures applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.

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



/s/ Eric C. Yartz, C.P.A.

Houston, Texas
July 31, 2004

<PAGE>

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

Certain statements contained in this Quarterly Report on Form 10-QSB, including,
without limitation, statements containing the words "believes", "anticipates",
"estimates", "expects", "projections", and words of similar import, constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned not to put undue reliance
on forward-looking statements. All forward-looking statements are made as of the
date hereof and are based on information available to the parties as of such
date. The Company does not undertake any obligation to update any
forward-looking statements to reflect events or circumstances after the date of
this Form 10-QSB. It is important to note that actual outcome and the actual
results could differ materially from those in such forward-looking statements.
Factors that could cause actual results to differ materially include risks and
uncertainties such as future economic conditions, corporate and marketplace
changes, all as more fully described in the Company's Report on Form 10-KSB for
the period ended September 30, 2003 under Management's Discussion and Analysis
of Financial Conditions and Results of Operations "Assumptions Underlying
Certain Forward-Looking Statements and Factors that May Affect Future Results"
and elsewhere from time to time in the Company's other SEC reports.

Plan of Operations
------------------

The Company is a leading provider of ceiling fans, lighting and electrical
components, structured cabling and wiring, and hardware to the Texas and Gulf
Coast residential and commercial construction markets. Its customers are largely
residential and multi-family developers and builders who purchase ceiling fans,
lighting fixtures, entry hardware, structured wiring, and the installation of
these products from the Company during the construction of the dwellings. The
Company also provides security monitoring services.

During the quarter ended December 31, 2003, the Company received a commitment to
be the sole source provider of structured wiring, and the corollary security
monitoring services, for a 3,000 home planned development. As is industry
practice, such commitment is non-binding. Optimization of this opportunity
depends on the successful development and marketing of the planned development,
a factor over which the Company has no control, and the Company's ability to
perform to the continuing satisfaction of the developer and ultimate homeowner.
Through the quarter ended June 30, 2004, the Company has 569 homes under
monitoring contract. Gross revenue from monitoring services remains an
immaterial item to the Company's financial results as a whole; however,
management is reasonably optimistic that monitoring services will provide a
profitable growth opportunity in the future.

During the quarter ended December 31, 2003, the Company engaged a contract
manufacturer to produce a significant percentage of the wire and cabling used in
the Company's structured cabling segment. This arrangement is expected to reduce
the cost of these materials by 33%. The Company intends to optimize this
arrangement by wholesaling wire and cabling to other wholesalers and end users.
The Company began receiving its first shipments of the cabling during the
quarter ended March 31, 2004.
<PAGE>

The Company continues its efforts to leverage the customer base of its various
segments to maximize cross selling opportunities of bundled packages of
lighting, fans, hardware, and structured cabling to residential developer
customers of the Company's segments.

The Company does not anticipate the need to raise additional funds in the next
twelve months.

The Company anticipates no substantial performance of product research and
development, purchases of significant equipment, or significant changes in the
number of employees over the next twelve months.

Financial Results
-----------------

Gross revenues for the three and nine month periods ended June 30, 2004 were
$2,285,414 and $6,646,490, respectively compared to $2,091,683 and $5,650,935 ,
respectively, for the three and nine month periods ended June 30, 2003. The 17%
increase in year to date revenue is mainly attributable to the Connect Source
division, whose revenues were $1,977,170 for the nine months ended June 30,
2004, compared to $1,070,512 for the nine months ended June 30, 2003. Cost of
Sales for the three and nine month periods ended June 30, 2004 were $1,497,868
and $4,321,985, respectively, compared to $1,222,705 and $3,446,079,
respectively, for the three and nine month periods ended June 30, 2003. Gross
profit, as a percentage of Sales, for the three and nine month periods ended
June 30, 2004 was 34.4% and 35.0%, respectively, compared to 41.5% and 39.0%,
respectively, for the three and nine month periods ended June 30, 2003. The
decrease in gross profit percentage for the comparative periods is due to the
growth of the Connect Source structured wiring division, relative to the other
divisions. Average profit margins in the structured wiring industry in which
Connect Source participates are lower than that of the Company's other
divisions. Additionally, the sole source security monitoring contract that
Connect Source holds requires the Company to provide one year free monitoring to
new homeowners. The costs incurred year to date associated with hookup and
administrative support of these contracts equals approximately $150,000, all of
which has been charged to Cost of Goods Sold. On average, the start up costs,
including the one year free monitoring, is recouped after approximately 18
months. As the Company lets more security monitoring contracts, and after the
start-up costs associated with each contract are recouped, the Company expects
that the gross profit margins for Connect Source will improve substantially. To
a much lesser degree, the Company has experienced slight profit margin erosion
in the fan division due to competitive pressures caused by weather conditions
resulting in lower new home starts in the Company's fan market. Costs related to
selling and general and administrative remained stable at $805,093 for the
quarter ended June 30, 2004 compared to $796,390 for the quarter ended June 30,
2003.

For the quarter ended June 30,2004, the Company reported a net loss of ($14,828)
compared to net income of $23,797 for the quarter ended June 30,
2003. As discussed above, the decrease in net profit can be generally attributed
to start-up costs in the security monitoring business. Net cash flow for the
nine months ended June 30, 2004 was ($39,399) compared to ($29,394) for the nine
months ended June 30, 2003.