For the quarterly period ended September 30, 2002

Commission file number 001-11784

NEW YORK		11-2824578
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Part I.		Financial information
Item 1.		Financial statements and supplementary data
		a)       Condensed Consolidated Balance Sheets as of September 30, 2002 and December 31, 2001		3
		b)       Condensed Consolidated Statements of Operations for the Three and Nine Months ended September 30, 2002 and 2001		4
		c)       Condensed Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2002 and 2001		5
		d)       Notes to Condensed Consolidated Financial Statements		6
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		13
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		18
Item 4.		Controls and Procedures		19
Part II		Other Information		19
Item 1.		Legal Proceedings		19
Item 6.		Exhibits and Reports on Form 8-K		19
Signatures				20
Certifications				21

		(Unaudited) September 30, 2002				December 31, 2001
Assets
Current assets:
Cash and cash equivalents		$	1,372			$	1,251
Accounts receivable, net of allowance for doubtful accounts of $89 and $186, at September 30, 2002 and December 31, 2001, respectively			396				399
Prepaid expenses and other current assets			222				385
Current assets of discontinued operations			629				2,146
Total current assets			2,619				4,181
Property and equipment, net			268				579
Other assets			121				157
Goodwill, net			124				124
Long-term assets of discontinued operations			1,055				3,646
Total assets		$	4,187			$	8,687
Liabilities and Stockholders’ Equity
Current liabilities:
Line of credit		$	—			$	128
Accounts payable			1,424				2,264
Accrued compensation and other accrued expenses			4,150				4,676
Accrued litigation settlements			65				1,510
Capital lease obligation, current portion			67				109
Notes payable, current portion			60				1,062
Other current liabilities			102				102
Current liabilities of discontinued operations			1,163				3,054
Total current liabilities			7,031				12,905
Capital lease obligations long-term, net of current portion			2				2
Notes payable, net of current portion			2,071				825
Total liabilities			9,104				13,732
Commitments and contingencies
Minority interest in subsidiary			—				1,000
Stockholders’ equity (deficit)
Preferred Stock:
Class A Cumulative, $.01 par value, liquidation preference of $4.00 per share for 2001 and 2000; 2,000,000 shares authorized, 80,597 shares issued and outstanding at September 30, 2002 and December 31, 2001			1				1
Class D Cumulative, $.01 par value; liquidation preference of $5,000 per share; 10,000 shares authorized; 1,324 and outstanding at September 30, 2002 and December 31, 2001			1				1
Class E Cumulative, $.01 par value; liquidation preference of $1,000 per share; 3,000 shares authorized, issued and outstanding at September 30, 2002 and December 31, 2001			1				1
Common Stock: $.001 par value, 100,000,000 shares authorized, 24,685,360 and 23,050,360 shares issued and outstanding at September 30, 2002 and December 31, 2001, respectively			25				23
Additional paid in capital			33,009				32,583
Accumulated deficit			(37,954	)			(38,654	)
Total stockholders’ equity (deficit)			(4,917	)			(6,045	)
Total liabilities and stockholders’ equity (deficit)		$	4,187			$	8,687

		Three Months Ended September 30,								Nine Months Ended September 30,
		2002				2001				2002				2001
		(Unaudited)								(Unaudited)
Revenue		$	529			$	786			$	1,706			$	2,131
Cost of revenues			268				453				855				1,104
Gross profit			261				333				851				1,027
Selling, general and administrative expenses			1,005				2,406				2,886				5,749
Operating loss			(744	)			(2,073	)			(2,035	)			(4,722	)
Interest (expense) income, net			(15	)			(1	)			(107	)			17
Net loss before income taxes			(759	)			(2,074	)			(2,142	)			(4,705	)
Provision for income taxes			—				—				—				—
Loss from continuing operations before extraordinary items			(759	)			(2,074	)			(2,142	)			(4,705	)
Income (loss) from discontinued operations (net of income taxes)			65				(331	)			556				(1,317	)
Gain on sale of discontinued operation (net of income taxes)			—				—				1,579				—
Loss before extraordinary gain			(694	)			(2,405	)			(7	)			(6,022	)
Extraordinary gains, net of income taxes			—				—				707				—
Net income (loss)			(694	)			(2,405	)			700				(6,022	)
Preferred Stock dividend			—				(165	)			(114	)			(607	)
Income (loss) applicable to common shareholders		$	(694	)		$	(2,570	)		$	586			$	(6,629	)
Basic earnings (loss) per common share:
Continuing operations		$	(0.03	)		$	(0.10	)		$	(0.09	)		$	(0.24	)
Discontinued operations			—				(0.01	)			0.09				(0.06	)
Extraordinary items, net of tax			—				—				0.03				—
Total		$	(0.03	)		$	(0.11	)		$	0.03			$	(0.30	)
Diluted earnings (loss) per common share:
Continuing operations		$	(0.03	)		$	(0.10	)		$	(0.02	)		$	(0.24	)
Discontinued operations			—				(0.01	)			0.02				(0.06	)
Extraordinary items, net of tax			—				—				0.01				—
Total		$	(0.03	)		$	(0.11	)		$	0.01			$	(0.30	)