U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_____________________________________

FORM 10-QSB

_____________________________________

(Mark One) [X] Quarterly report pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934

For the quarterly period ended September 30, 2002
OR
[ ] Transition report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
For the transition period from __________ to _________.

America First Associates Corp.	Delaware	11-3246880
(Exact name of small business issuer as specified in its charter)	(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

160 E 56th ST, 6th fl New York, NY 10022
(Address of principal executive offices)

(212) 644-8520
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant: (1) 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 ____

On September 30, 2002 the registrant had 9,018,000 outstanding shares of common stock, $0.001 par value.

Transitional Small Business Disclosure Format (check one): Yes ______ No X

America First Associates Corp.

Financial Statements
Nine Months ended September 30, 2002
Index to Financial Statements

Statement of Financial Condition	F-2
Statement of Operations	F-3
Statement of Changes in Stockholders' Equity	F-4
Statement of Cash Flow	F-5
Notes to Financial Statements	F-6
Management Discussion and Analysis	F-10

America First Associates Corp.
Statement of Financial Condition

For The Nine Months Ended September 30, 2002

					Sep 30, '02
ASSETS
	Current Assets
		Total Cash			834,668
			Marketable Securities, at mkt
				Total Marketable Securities,mkt	280,561
Total Current Assets					1,115,229
Fixed Assets
	Office Equipment
			Depreciation		-22,711
			Original Cost		27,573
	Total Office Equipment				4,861
	Total Fixed Assets				4,861
	Other Assets
		NASD Stock			26,000
		Security Deposit			5,175
	Total Other Assets				31,175
TOTAL ASSETS					1,151,265
LIABILITIES & EQUITY
	Equity
		Capital Stock			9,018
		Paid-in-Capital			2,121,230
		Retained Earnings			-425,284
		Net Income			-553,699
	Total Equity				1,151,265
TOTAL LIABILITIES & EQUITY					1,151,265

America First Associates Corp.

Statement of Operations
For the Three Months Ended September 30, 2002 and 2001
And
For the Nine Months Ended September 30, 2002 and 2001

		Jul - Sep '02	Jul - Sep '01	Jan - Sep '02	Jan - Sep '01
Income
	Commission Revenues	75,762	152,287	250,176	435,410
	Interest & Other Income	4,625	2,152	11,614	115,560
	Principal Transactions	-56,581	-117,682	-382,059	-13,048
	Syndicate Income	7,548	0	67,548	0
Total Income		31,354	36,757	-52,721	537,922
Expense
	Business Development	9,414	250	9,614	4,150
	Communication & Data Processing	7,785	10,250	17,026	22,990
	Consulting & Professional Fees	500	600	561	2,475
	Depreciation Expense	540	1,525	1,620	4,575
	Employee Compensation & Benefit	53,786	66,112	200,874	225,149
	Occupancy Costs	12,900	12,600	38,400	37,100
	Other Expenses	6,733	9,384	21,660	26,549
	Regulatory & Registration Fees	0	50	18,386	17,950
	Travel & Entertainment	5,952	10,419	21,337	29,320
	U.S.Clearing Expense	51,943	89,381	171,500	257,100
Total Expense		149,553	200,571	500,979	627,358
Net Income		-118,199	-163,864	-553,699	-89,446

America First Associates Corp.

Statement of Changes in Shareholders' Equity

For Nine Months Ended September 30, 2002

	Common Stock	Paid-in Capital	Retained Earnings	Shareholder's Equity
Balance, December 31, 2001	9,018	2,121,230	(425,284)	1,704,964

Net income (loss)

(553,699) (553,699) Balance, September 30, 2002 $ 9,018 $ 2,121,230 $ ( 978,983) $ 1,151,265

America First Associates Corp.

Statement of Cash Flows
For the Nine Months Ended September 30, 2002

					Jan - Sep '02
		OPERATING ACTIVITIES
			Net Income		-553,699
			Adjustments to reconcile Net Income
			to net cash provided by operations:
				Due from Clearing Broker	5,177
				Cash Equivalent:Error Acct	19,890
				Cash Equivalent:Fees Acct	-72
				Cash Equivalent:Trading Acct	355,869
				Cash Equivalent:Worthless Securities Account	-29
				Marketable Securities, at mkt:Deposit Acct	-963
				Marketable Securities, at mkt:Error Acct-Long	-19,962
				Marketable Securities, at mkt:Trading Acct-Long	291,454
				Prepaid Expense	15,429
				Accounts Payable	-21,440
		Net cash provided by Operating Activities			91,654
		INVESTING ACTIVITIES
			Office Equipment:Depreciation		1,620
		Net cash provided by Investing Activities			1,620
		FINANCING ACTIVITIES
			Retained Earnings		-30
		Net cash provided by Financing Activities			-30
	Net cash increase for period				93,244
	Cash at beginning of period				2,903
Cash at end of period					96,147

AMERICA FIRST ASSOCIATES CORP.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002

Note 1 - Summary of Significant Accounting Policies

America First Associates Corp., (the "Company"), which became a broker-dealer in 1995, is a member of the National Association of Securities Dealers, Inc. and is subject to regulation by the United States Securities and Exchange Commission and the National Association of Securities Dealers, Inc.

The Company principally engages in executing general securities transactions on behalf of its clients. The Company operates principally under a clearance agreement with another broker, whereby such broker assumes and maintains the Company's customer accounts. The Company is responsible for payment of certain customer accounts (unsecured debits) as defined in the agreement. The Company also provides on-line brokerage services for its customers.

The Company transacts its business with customers located throughout the United States.

Property and Equipment

Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives.

	For Nine Months Ended September 30
	2001	2002
Office Equipment	$27,573	$27,573

Accumulated Depreciation

($21,091) ($22,711)

Revenue Recognition

Securities transactions and the related revenue and expenses are recorded on a settlement date basis. The recording of securities transactions on a trade date basis was considered, and the difference was deemed immaterial.

Securities Owned

Securities owned are carried at quoted market values, and the resulting difference between cost and market is included in income.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Income Taxes

The Company accounts for income taxes under SFAS No. 109, Accounting for Income Taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense in the tax payable or refundable for the period plus or minus the change during he period in deferred tax assets and liabilities.

Earnings Per Share

Basic net income/loss per share has been calculated based on the weighted average number of shares of common stock outstanding during the period. Diluted net income/loss is computed by dividing the net income by the weighted average number of common shares outstanding plus potential dilutive securities.

Cash Equivalents

For purposes of the statement of cash flows, cash equivalents include highly liquid debt instruments with original maturities of three months or less.

Note 2 - Securities Owned

Securities owned consist of trading and investment securities at market value, as follows:

Securities Owned as of September 30, 2002
Corporate stocks	$280,561
Total securities owned	$280,561

Note 3 - Deposit with Clearing Broker

The Company operates principally under a clearance agreement with its clearing broker, whereby such broker assumes and maintains the Company's customer accounts.

Note 4 - Due To/From Clearing Firm

Due To/From Clearing Firm arises as a result of the Company's normal security transactions.

Note 5 - Income Taxes

At December 31, 2001, the Company has net operating loss carryforwards of approximately $471,000 which expire in 2021. These net operating loss carryforwards may be used to offset future taxable income.

At December 31, 2001, the Company has recorded a deferred tax asset of $160,000 resulting primarily from net operating loss carryforwards. The valuation allowance of $160,000 has been recorded against the deferred tax asset since it is more likely than not it will not be realized.

A reconciliation of income tax at the federal statutory income tax rate to total income taxes is as follows:

	2001	2002
Computed at the federal
statutory rate of 34%	$(10,000)	$ 18,100
State and local tax (benefit)	(3,000)	10,300
Benefit of Carryover	-	(35,200)
Valuation allowance adjustment	13,000	-
Other adjustments	2,376	6,800
	$ 2,376	$ 0

Note 6 - Commitments and Contingencies

Leases

The Company leases office space pursuant to an operating lease expiring March 31, 2003. For the years ended December 31, 2002 and 2001, rent expense amounts to $51,600 and $50,400 respectively.

The future minimum rental commitment through termination is as follows:

For the year ending December 31,	Amount
2002	$51,600
2003 (3 months)	12,900

Pension Plan

The Company has a defined contribution plan under section 401(K) of the Internal Revenue Code. The plan covers substantially all its employees, and provides for participants to defer salary, up to statutory limitations. The Company is not required to make a matching contribution.

Concentration of Credit Risk

The Company maintains cash balances at a financial institution. Accounts at the institution are insured by the Federal Deposit Insurance Corporation up to $100,000.

Note 7 - Common Stock

In June 2001, The Company's officer/stockholder has contributed 3,000,000 shares of the Company's common stock to the Company without compensation upon the filed registration statement becoming effective which has been reflected in the financial statements.

Note 8 - Warrants

In April 1999, as part of the sale of the Company common stock, such shareholders received 2,700,000 warrants to purchase the Company's stock at prices from $1-$5 per share. The warrants expire on September 10, 2003.

Note 9 - Off-Balance-Sheet Risk and Concentration of Credit Risk

The Company, as an introducing broker, clears all transactions with and for customers on a fully disclosed basis with a clearing broker and promptly transmits all customer funds and securities to the clearing broker who carries all of the accounts of such customers. These activities may expose the Company to off-balance-sheet risk in the event that the customer and/or clearing broker is unable to fulfill its obligations.

The Company does not maintain margin accounts for its customers; and, therefore there were no excess margin securities.

The Company seeks to control off-balance-sheet risk by monitoring the market value of securities held in compliance with regulatory and internal guidelines.

The Company, as a part of its trading activities, assumes short positions in its inventory. The establishment of short positions exposes the Company to off-balance-sheet risk in the event prices increase, as the Company may be obligated to acquire the securities at prevailing market prices.

Note 10 - Earning Per Share

	2002	2001
Net Earnings available to common shareholders	($ 553,699)	($91,490)
Weighted Ave. shares outstanding	9,018,000	9,018,000*
Basic Earnings Per Share	($0.0614)	($0.010)

*Gives retroactive effect to January 1, 2001 the Company's officer/shareholder contributing 3,000,000 shares to the Company.

Note 11- Staff Accounting Bulletin 74

Registrant has determined that the impact of recently issued accounting standards on the financial statements will not be material.

MANAGEMENT DISCUSSION AND ANALYSIS

The following discussion of the financial condition and results of financial condition and the results of operation of the Company should be read in conjunction with the Consolidated Financial Statements and the related Notes and other financial information included elsewhere in this Quarterly report. This discussion contains forward-looking statements that involve risks and uncertainties. The Company's actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including but not limited to, those set forth under Risk Factors and elsewhere in this report.

Overview

America First Associates (The "Company") has conducted its operations as a fully disclosed brokerage firm registered with the Securities and Exchange Commission, the National Association of Securities Dealers, the Municipal Securities Rulemaking Board and 50 state securities divisions including the District of Columbia and Puerto Rico. The Company is a provider of cost-effective, full-service online financial service targeting the rapid growth momentum of individual investors who utilize the Internet for their personal investment objectives. The Company provides customers the ability to buy and sell securities, security options, mutual funds, bonds and other investment financial instruments as well as providing clients with 24 hour account access and real-time electronic information on stocks, market indices, analysts' research and news. The Company plans to continue to provide quality service to our current customers while increasing brand awareness and customer loyalty. Management's strategy is to expand the Company's business and operations by strategically using the Internet and other advertising outlets to efficiently market and distribute our services to potential customers and build brand awareness on a national level to increase our customer base.

Results of Operations

Three Months Ended September 30, 2002 compared to Three months Ended September 30, 2001

Total revenues the three months ended September 30, 2002 were $31,354, compared to $36,757 in the three months ended September 30, 2001. The decrease in revenue was the result of a loss in principle transactions and a decrease in overall business activity caused by a significant down turn in the overall market

Commissions were $75,762 for the three months ended September 30, 2002 a decrease of 50% compared to $152,287 for the three months ended September 30, 2001. The decrease in commission revenues was primarily attributable to a decline in the stock market, which reduced the number of online transactions processed. Our focus will be to cost effectively increase our client base through internet marketing, which could increase our transaction volume.

Syndicate income was non-existent for the three months ended September 30, 2001 and was $7548 for the three months ended September 30, 2002. Principal transactions, which include securities brokerage transactions, were ($117,682) for the three months ended September 30, 2001, and decreased to ($56,581) for the three months ended September 30, 2002. The loss is due to a decrease in securities owned at market value. Interest and other income revenue increased to $4,625 for the three months ended September 30, 2002 from $2,152 for the three months ended September 30, 2001. This increase was primarily due to the company investing excess funds in U.S. Obligatons.

The Company's total expenses decreased from $200,571 for the three months ended September 30, 2001 to $149,553 for the three months ended September 30, 2002. This 26% decrease is attributed to lower clearing charges, which is a result of lower trading volume in the overall market. Employee compensation and benefits expense decreased from $66,112 for the three months ended September 30, 2001 to $53,786 for the three months ended September 30, 2002. The Company anticipates that employee compensation will increase as the need to hire addition employees. Employee compensation will also increase if investment banking activities generate revenue. Clearing charges decreased to $51,943 for the three months ended September 30, 2002 from $89,381 for the three months ended September 30, 2001. It is expected that clearing charges will increase if online trading activity increases.

Communication and data processing expense was $7,785 for the three months ended September 30, 2002 compared to $10,250 for the three months ended September 30, 2001. The decrease between 2002 and 2001 in communication and data processing is primarily a result of less usage.

Business development, which includes printing and advertising increased from $250 for the three months ended September 30, 2001 to $9,414 for the three months ended September 30, 2002. Due to the fluctuating and unpredictable market, the Company increased its advertising budget, however, limiting it until the stock market performs more favorable for investors. In order to remain competitive and to increase the number of customer accounts, we need to actively promote our service in order to build brand awareness. Therefore, for future growth and expansion, The Company expects an increase in advertising expense. Our business development costs for the remaining of 2002 and for 2003 will be associated with promoting our website and financial services and to continue to expand our customer base through advertising media.

Occupancy costs relate to our leasing of office space in New York City. Occupancy expense for the three months ended September 30, 2002 was $12,900 and $12,600 for the three months ended September 30, 2001. This increase is the result of a $100 increase in our annual rent. The Company currently leases 2,000 square feet at $4,300 per month under a three-year lease expiring March 31, 2003. Management believes the office will provide ample amount of space for our current needs.

Regulatory and registration fees are costs associated with a Broker/Dealer to be registered with the NASD and in all appropriate states. In the three months ended September 30, 2002 regulatory and registration fees were non existent compared to $50 for the three months ended September 30, 2001. NASD fees are usually applied in the first quarter for the entire year.

Depreciation and amortization primarily consists of depreciation of property and equipment. Depreciation and amortization costs were $540 for the three months ended September 30, 2002 and $1,525 for the three months ended September 30,2001. If and when we expand we anticipate the purchase of additional property and equipment, which will result in an increase in depreciation and amortization expense.

Travel and entertainment expenses decreased to $5,952 for the three months ended September30, 2002 from $10,419 for the three months ended September 30, 2001. Other expenses, which includes office supplies and expense, automobile expense and bank service fees decreased to $6,733 for the three months ended September30, 2002 from $9,384 for the three months ended September 30, 2001.

Results of Operations

Nine Months Ended September 30, 2002 compared to Nine months Ended September 30, 2001

Total revenues for the nine months ended September 30, 2001 were $537,922, compared to ($52,721) in the nine months ended September 30, 2002. The decrease in revenue was the result of a loss in principle transactions coupled with a decrease in overall business activity including lower interest rates caused by a significant down turn in the overall market.

Commissions were $250,176 for the nine months ended September 30, 2002 a decrease from $435,410 for the nine months ended September 30, 2001. The decrease in commission revenues was primarily attributable to the decline in the stock market, which reduced the number of online transactions processed. Our focus will be to cost effectively increase our client base through internet marketing, which should increase our transaction volume.

Syndicate income was non-existent for the nine months ended June 30, 2001 and $67,548 for the nine months ended September 30, 2002. This increase is due to an investment banking deal the company closed in February. It is also anticipated The Company should generate more investment banking deals in 2003, which will increase future syndicate revenue. Principal transactions, which include securities brokerage transactions, were ($13,048) for the nine months ended September 30, 2001, and decreased to ($382,059) for the nine months ended September 30, 2002. The loss is due to a difference in the cost of securities versus securities owned at market value. Interest and other income revenue decreased to $11,614 for the nine months ended September 30, 2002 from $115,560 for the nine months ended September 30, 2001. This decrease was primarily due to the company investing excess funds in U.S. Obligatons at lowered interest rates and other income resulting in a gain of $51,173 in 2001.

The Company's total expenses decreased from $627,358 for the nine months ended September 30, 2001 to $500,979 for the nine months ended September 30, 2002. This decrease is attributed to lower clearing charges, which is a result of lower trading volume in the overall market. Employee compensation and benefits expense decreased from $225,149 for the nine months ended September 30, 2001 to $200,874 for the nine months ended September 30, 2002. The Company anticipates employee compensation will increase as the need to hire addition employees. Commissions paid to employees will also increase if investment banking activities generate revenue. Clearing charges decreased to $171,500 for the nine months ended September 30, 2002 from $257,100 for the nine months ended September 30, 2001. It is expected that clearing charges will increase if online trading activity increases.

Communication and data processing expense was $17,026 for the nine months ended September 30, 2002 compared to $22,990 for the nine months ended September 30, 2001. The decrease between 2002 and 2001 in communication and data processing is primarily a result of lower usage.

Business development, which includes printing and advertising increased to $9,614 for the nine months ended September 30, 2002, from $4,150 for the nine months ended September 30, 2001. Due to the fluctuating and unpredictable market, the Company slightly increased its advertising budget for now, until the stock market performs more favorable for investors. In order to remain competitive and to increase the number of customer accounts, we need to actively promote our service in order to build brand awareness. Therefore, for future growth and expansion, The Company anticipates an increase in advertising expense. Our business development costs for the remainder of 2002 and for 2003 will be associated with promoting our website and financial services and to continue to expand our customer base through advertising media.

Occupancy costs relate to our leasing of office space in New York City. Occupancy expense for the nine months ended September 30, 2002 was $38,400 and $37,100 for the nine months ended September 30, 2001. This increase is the result of a $100 increase in our annual rent. The Company currently leases 2,000 square feet at $4,300 per month under a three-year lease expiring March 31, 2003. Management believes the office will provide ample amount of space for our current needs.

Regulatory and registration fees are costs associated with a Broker/Dealer to be registered with the NASD and in all appropriate states. In the nine months ended September 30, 2002 regulatory and registration fees amounted to $18,386, compared to $17,950 for the nine months ended September 30, 2001. NASD fees are usually applied in the first quarter for the entire year.

Depreciation and amortization primarily consists of depreciation of property and equipment. Depreciation and amortization costs were $1640 for the nine months ended September 30, 2002 and $2000 for the nine months ended September, 2001. If and when we expand we anticipate the purchase of additional property and equipment, which will result in an increase in depreciation and amortization expense.

Travel and entertainment expenses decreased to $21,337 for the nine months ended September 30, 2002 from $29,320 for the nine months ended September 30, 2001. Other expense, which includes office supplies and expense (45%), automobile expense (45%) and bank service fees (10%) decreased to $21,660 for the nine months ended September 30, 2002 from $26,549 for the nine months ended September 30, 2001.

Liquidity and Capital Resources

Net Cash provided by operating activities during the nine months ended September 30, 2002 were $91,654. The Company had a net loss of $553,699, an increase in deposits from clearing organization of $5,177, an increase in securities owned of $291,454, an increase in prepaid expense of $15,429 and a decrease in accounts payable of $21,440.

Cash at beginning of period were $2,903 and cash at end of period were $96,147. The net cash increase for the nine months ended September 30, 2002 were $93,244.

The Company is subject to the net capital rules of the SEC. At September 30, 2002, the Company had regulatory net capital of $1,115,227 which exceeded the minimum requirements by $1,015,227.

We currently anticipate that our available cash resources and credit will be sufficient to meet our presently anticipated working capital and capital expenditure requirements for at least the next 18 months. Our liquidity needs during the first nine months of fiscal 2002 were financed primarily from our operating cash flows. We plan to finance our capital and liquidity needs for the remainder of fiscal 2002 primarily from our operating cash flows. We may need to raise additional funds in order to support more rapid expansion, develop new or enhanced services and products, respond to competitive pressures, acquire complementary businesses or technologies and/or take advantage of unanticipated opportunities. Our future liquidity and capital requirements will depend upon numerous factors, including costs and timing of expansion of technology development efforts and the success of such efforts, the success of our existing and new service offerings and competing technological and market developments. Our forecast of the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and actual results could vary. If additional funds are raised through the issuance of equity securities, the percentage ownership of the shareowners in our company will be reduced, shareowners may experience additional dilution in net book value per share or such equity securities may have rights, preferences or privileges senior to those of the holders of our common stock. There can be no assurance that additional financing will be available when needed on terms favorable to our Company, if at all. We may need additional funds in the future which may not be available and which may result in dilution of the value of our common stock."

SIGNATURES

In accordance with Section 12 of the Securities Exchange Act of 1934, the Registrant caused this Registration Statement to be signed by the undersigned, thereunto duly authorized.

	AMERICA FIRST ASSOCIATES CORP.
Date: October 23, 2002	By: /s/ Joseph Ricupero
	Joseph Ricupero, Chief Executive Officer, Financial Operations Officer

AMERICA FIRST ASSOCIATES CORP 10-Q