<SUBMISSION>
<ACCESSION-NUMBER>0000950142-03-001392
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20030818
<ITEMS>7
<ITEMS>9
<FILING-DATE>20030818
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ACTRADE FINANCIAL TECHNOLOGIES LTD
<CIK>0000819255
<ASSIGNED-SIC>6153
<IRS-NUMBER>133437739
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-18711
<FILM-NUMBER>03853351
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>7 PENN PLZ STE 422
<CITY>NEW YORK
<STATE>NY
<ZIP>10001
<PHONE>2125631036
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>7 PENN PLAZA STE 422
<STREET2>7 PENN PLAZA STE 422
<CITY>NEW YORK
<STATE>NY
<ZIP>10001
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ACTRADE INTERNATIONAL LTD
<DATE-CHANGED>19930518
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k_081303.txt
<DESCRIPTION>CURRENT REPORT
<TEXT>

     As filed with the Securities and Exchange Commission on August 18, 2003


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

                                    FORM 8-K
                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

        Date of Report (date of earliest event reported): August 18, 2003


                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


         DELAWARE                       0-18711                 13-3437739
         --------                       -------                 ----------
(State or other jurisdiction of    (Commission File            (IRS Employer
     incorporation)                     Number)              Identification No.)


7 PENN PLAZA, SUITE 422, NEW YORK, NY                              10001
-------------------------------------                              -----
         (Address of principal executive offices)               (Zip Code)


       Registrant's telephone number, including area code: (212) 563-1036
                                                           --------------


<PAGE>

                                                                               2


ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS.

         (a)      Financial Statements.

                  Not applicable.

         (b)      Pro Forma Financial Information.

                  Not applicable.

         (c)      Exhibits.


                  EXHIBIT NO.           DESCRIPTION
                  -----------           -----------

                  99.1              Actrade Financial Technologies Ltd. Monthly
                                    Operating Statement for the period July 1,
                                    2003 through July 31, 2003

                  99.2              Actrade Capital, Inc. Monthly Operating
                                    Statement for the period July 1, 2003
                                    through July 31, 2003

ITEM 9.  REGULATION FD DISCLOSURE.

         On August 18, 2003, Actrade Financial Technologies Ltd. (the
"Company"), and one of its direct U.S. subsidiaries, Actrade Capital, Inc.
("Capital"), each filed a monthly operating statement for the period July 1,
2003 through July 31, 2003 (together, the "Operating Reports") with the United
States Bankruptcy Court for the Southern District of New York. Copies of the
Operating Reports of the Company and Capital are filed as Exhibits 99.1 and 99.2
hereto and incorporated by reference herein.

LIMITATION ON INCORPORATION BY REFERENCE

         In accordance with General Instruction B.2 of Form 8-K, the information
in this Item 9 shall not be deemed "filed" for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise
subject to the liabilities of that Section, nor shall such information be deemed
incorporated by reference in any filing under the Securities Act of 1933, as
amended, except as shall be expressly set forth by specific reference in such a
filing. The information set forth in this Item 9 will not be deemed an admission
as to the materiality of any information required to be disclosed solely to
satisfy the requirements of Regulation FD.


<PAGE>

                                                                               3


CAUTIONARY STATEMENT REGARDING FINANCIAL AND OPERATING DATA

         The Company cautions readers not to place undue reliance upon the
information contained in the Operating Reports. The Operating Reports contain
financial statements and other financial information that has not been audited
by independent accountants and may be subject to future revision, reconciliation
and adjustment. The Operating Reports are in a format prescribed by applicable
bankruptcy laws and should not be used for investment purposes. The Operating
Reports contain information for periods different from those required in the
Company's reports pursuant to the Exchange Act, and that information might not
be indicative of the Company's or Capital's financial condition or operating
results for the period that would be reflected in the Company's or Capital's
financial statements or in the Company's reports pursuant to the Exchange Act.
Results set forth in the Operating Reports should not be viewed as indicative of
future results.

         In addition, it should be noted that (a) the Company has not completed
its financial statements as of or for the fiscal years ended June 30, 2002 or
June 30, 2003, or received its independent public accountants' report thereon or
filed with the Securities and Exchange Commission (the "SEC") its Annual Report
on Form 10-K for the years ended June 30, 2002 or June 30, 2003, (b) the
Company's independent public accountants, Deloitte & Touche LLP, suspended their
auditing work on the Company's financial statements for the fiscal year ended
June 30, 2002, (c) the Company has not completed its financial statements as of
and for the three months ended September 30, 2002, December 31, 2002 or March
31, 2003 or filed with the SEC its Quarterly Report on Form 10-Q for the
quarters ended September 30, 2002, December 31, 2002 or March 31, 2003, and (d)
as stated in the Company's December 12, 2002 press release (the "December 12
Release"), the Company's historical financial statements and SEC filings should
not, at this time, be relied upon.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

         Certain information contained in this press release constitutes
forward-looking statements for purposes of the safe harbor provisions of The
Private Securities Litigation Reform Act of 1995. Actual results or events may
differ materially from those indicated by such forward-looking statements as a
result of risks and uncertainties due to the Company's pending litigation and
ongoing internal evaluation and regulatory and law enforcement investigations,
each as described in the Company's recent press releases, including the
Company's December 12, 2002 and subsequent press releases. Other factors that
may cause results or events to differ materially from those indicated by such
forward-looking statements include, but are not limited to: uncertainties
regarding the possibility of restatements of documents previously filed by the
Company with the SEC, including restatements of the Company's financial
statements; uncertainties regarding the ability of the Company to finalize a
pending settlement of the obligations of certain bankrupt customers of the
Company and the Taiwanese parent corporation of certain of those customers, as
well as the Company's claims under certain related surety bonds, all as more
fully described in the Company's Current Reports on Form 8-K dated May 13, 2003
and June 24, 2002; additional facts found by the Company in connection with the


<PAGE>

                                                                               4


issues that are the subject of an internal evaluation; uncertainties regarding
the Company's Chapter 11 bankruptcy process; uncertainties regarding the
Company's ability to be successful in pursuing a sale transaction, the Company's
ability to find a qualified buyer, or that a sale will actually increase
creditor or stockholder value; uncertainties regarding the Company's ability to
collect on all its outstanding receivables as they come due; and those factors
discussed in the Company's Form 10-Q for the quarter ending March 31, 2002,
which is on file with the SEC. Additional risks and uncertainties in connection
with a sale transaction include, without limitation, material contingencies
provided for in a sale transaction, amendment of the terms of, delay in
implementation of or termination of any transaction agreement and the Company's
ability to retain key employees during the sale transaction process. In
addition, any forward-looking statements represent our estimates only as of
today and should not be relied upon as representing our estimates as of any
subsequent date. While we may elect to update forward-looking statements at some
point in the future, we specifically disclaim any obligation to do so, even if
our estimates change.


<PAGE>

                                                                               5


                                   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 hereunto duly authorized.

                                       ACTRADE FINANCIAL TECHNOLOGIES LTD.



                                       By: /s/ Richard McCormick
                                           ------------------------------------
                                           Name:   Richard McCormick
                                           Title:  Chief Executive Officer




Dated: August 14, 2003


<PAGE>

                                                                               6


                                  EXHIBIT INDEX


    EXHIBIT       DESCRIPTION
    -------       -----------

    99.1          Actrade Financial Technologies Ltd. Monthly Operating
                  Statement for the period July 1, 2003 through July 31, 2003

    99.2          Actrade Capital, Inc. Monthly Operating Statement for the
                  period July 1, 2003 through July 31, 2003


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>ex99_1form8k081303.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>

                                                                    EXHIBIT 99.1
                                                                    ------------

PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
Jeffrey D. Saferstein (JS/5339)
Erica Weinberger (EW/1411)
1285 Avenue of the Americas
New York, New York 10019-6064
Telephone:  (212) 373-3000
Attorneys for Debtor in Possession

UNITED STATE BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
-------------------------------------------x
                                           :     Chapter 11
In re:                                     :     Case No. 02-16212 (ALG)
                                           :
ACTRADE FINANCIAL TECHNOLOGIES LTD.        :
                                           :
                                Debtor.    :
                                           :
-------------------------------------------x



                         MONTHLY OPERATING STATEMENT FOR
                    THE PERIOD JULY 1, 2003 TO JULY 31, 2003
                    ----------------------------------------


<PAGE>
UNITED STATE BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK

                                              CHAPTER 11 CASE NO. 02-16212 (ALG)


                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
--------------------------------------------------------------------------------
                                     DEBTOR


                         Monthly Operating Statement For
                    The Period July 1, 2003 to July 31, 2003


DEBTOR'S ADDRESS:
-----------------
Actrade Financial Technologies Ltd.
7 Penn Plaza, Suite 422
New York, NY 10001

                                        Monthly Disbursements:     $       NONE
                                                                   ------------

DEBTOR'S ATTORNEY:
------------------
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019

                                        Monthly After Tax Loss:    $     (3,000)
                                                                   ------------


         The undersigned, having reviewed the attached report and being familiar
with the Debtor's financial affairs, verifies under the penalty of perjury, that
to the best of my knowledge, information and belief, the information contained
therein accurately reflects, on an unconsolidated basis, information contained
in the Debtor's books and records and public filings. As stated in previous
disclosures, no assurances can be given and no reliance should be made, on the
Debtor's books and records, and on the information contained in the Debtor's
public filings.

         The undersigned also verifies that, to the best of his knowledge, all
insurance policies, including workers compensation and disability insurance,
have been paid currently.



DATE:  Aughust 15, 2003                 By: /s/ Richard F. McCormick
                                            -----------------------------------
                                            Richard F. McCormick
                                            Chief Executive Officer
                                            Actrade Financial Technologies Ltd.


Indicate if this is an amended statement by checking here

                                                        Amended Statement   [_]



<PAGE>
                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                             (DEBTOR-IN-POSSESSION)
                                  BALANCE SHEET
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)


ASSETS

CURRENT ASSETS:
     Cash                                                              $     97
     Other current assets                                                    33
                                                                       --------
         Total Current Assets                                               130

DUE FROM SUBSIDIARIES                                                    18,500

INVESTMENTS IN SUBSIDIARIES                                                 320
                                                                       --------
TOTAL ASSETS                                                           $ 18,950
                                                                       ========

LIABILITIES AND STOCKHOLDERS' EQUITY
     Accrued expenses                                                  $    954
                                                                       --------

         Total Current Liabilities                                          954
Liabilities Subject to Compromise:
     Accrued expenses                                                       303
                                                                       --------
TOTAL LIABILITIES                                                         1,257
                                                                       --------

STOCKHOLDERS' EQUITY
     Common stock, $0.0001 par value; authorized 100,000,000 shares,
       issued and outstanding 11,849,490 shares  at July 31, 2003             1
     Additional paid in capital                                          58,102
     Accumulated deficit                                                 (1,207)
     Treasury stock at cost;  1,336,678 shares at July 31, 2003         (39,203)
                                                                       --------

     Total Stockholders' Equity                                          17,693
                                                                       --------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                             $ 18,950
                                                                       ========



                       See Notes to Financial Statements

                                       2
<PAGE>
                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF OPERATIONS
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                    FOR THE PERIOD
                                                                                   DECEMBER 13, 2002
                                                                     MONTH ENDED       THROUGH
                                                                    JULY 31, 2003    JULY 31, 2003
                                                                    -------------    -------------
<S>                                                                 <C>              <C>
Revenue                                                             $          --    $          --

Operating Expenses:
     General and administrative expenses                                        3               31
                                                                    -------------    -------------

Total Operating Expenses                                                        3               31
                                                                    -------------    -------------

Loss before reorganization items and income tax benefit                        (3)             (31)

Reorganization items:
             Interest earned on accumulated cash resulting from
                Chapter 11 proceeding                                          --               --
                                                                    -------------    -------------



Net loss                                                            $          (3)   $         (31)
                                                                    =============    =============
</TABLE>



                       See Notes to Financial Statements

                                       3
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF CASH FLOWS
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                         FOR THE PERIOD
                                                                                       DECEMBER 13, 2002
                                                                     MONTH ENDED            THROUGH
                                                                    JULY 31, 2003        JULY 31, 2003
                                                                    -------------        -------------
<S>                                                                 <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                          $          (3)       $         (31)

Changes in operating assets and liabilities:
     Due from subsidiaries                                                     88                 (558)
     Accrued expenses                                                         (85)                 447
                                                                    -------------        -------------

Net cash provided by (used in) operating activities before
     Reorganization Items                                                      --                 (142)
                                                                    -------------        -------------

Operating Cash Flow from Reorganization Items -
   Bankruptcy related professional fees paid                                   --                   --
                                                                    -------------        -------------

Net cash provided by (used in) operating activities                            --                 (142)
                                                                    -------------        -------------


Net increase (decrease) in cash during the period                              --                 (142)

Cash balance at beginning of period                                            97                  239
                                                                    -------------        -------------

Cash balance at end of period                                       $          97        $          97
                                                                    =============        =============
</TABLE>



                       See Notes to Financial Statements

                                       4
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)

NOTE 1.  BASIS OF PRESENTATION

The accompanying unaudited financial statements of Actrade Financial
Technologies Ltd. have been prepared on a going concern basis, which
contemplates continuity of operations, realization of assets and liquidation of
liabilities in the ordinary course of business. These financial statements
include intercompany balances that would be eliminated, in accordance with
generally accepted accounting principles, when the results of Actrade Financial
Technologies Ltd. are consolidated with all of its wholly owned subsidiaries.

NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES

Financial Reporting For Bankruptcy Proceedings - In connection with the
bankruptcy proceedings, the Company is required to report in accordance with the
American Institute of Certified Public Accountant's Statement of Position 90-7
"Financial Reporting by Entities in Reorganizations under the Bankruptcy Code"
(SOP 90-7"). SOP 90-7 requires, among other things, (i) that pre-petition
liabilities that are subject to compromise be segregated in the Company's
balance sheet as liabilities subject to compromise and (ii) the identification
of all transactions and events that are directly associated with the
reorganization of the Company in Statement of Operations.

NOTE 3.  PETITION FOR RELIEF UNDER CHAPTER 11

On December 12, 2002, Actrade Financial Technologies Ltd. (the "Debtor,"
"Actrade" or the "Company") filed a petition for relief under Chapter 11 of the
United States Bankruptcy Code in the United States Bankruptcy Court for the
Southern District of New York. Under Chapter 11, actions to enforce certain
claims against the Debtor in existence prior to the filing of the Chapter 11
petition are stayed while the Debtor continues business operations as a
debtor-in-possession. These claims are reflected in the July 31, 2003, balance
sheet as "liabilities subject to compromise." Additional claims (liabilities
subject to compromise) may arise subsequent to the filing date resulting from
rejection of executory contracts or leases, and from the determination by the
court (or agreed to by parties in interest) of allowed claims for contingencies
and other disputed amounts. Actions by creditors whose claims are secured
against the Debtor's assets ("Secured Claims") also are stayed, although the
holders of such claims have the right to move the court for relief from the
stay. Secured Claims are secured primarily by the liens on Debtor's Trade
Acceptance Drafts receivable.

The Debtor received approval from the Bankruptcy Court to pay or otherwise honor
certain of its prepetition obligations, including wages and other employee
benefits.


                                       5
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)


NOTE 4.  REORGANIZATION COSTS

Reorganization costs include professional fees and other related expenses
attributable to the filings.

NOTE 5.  INTERCOMPANY TRANSACTIONS

Intercompany balances would be eliminated, in accordance with generally accepted
accounting principles, when the results of Actrade Financial Technologies Ltd.
are consolidated with all of its wholly owned subsidiaries. The intercompany
balances that are included on the accompanying financial statements under the
caption of Due from Subsidiaries amounted to $18,500 at July 31, 2003.

NOTE 6.  SUPPLEMENTAL FINANCIAL INFORMATION

Actrade Financial Technologies Ltd. operates as a holding company. Almost all of
its operating expenses including professional fees and other related expenses
attributable to the reorganization filings are recognized and paid by its wholly
owned subsidiary, Actrade Capital, Inc., also a debtor-in-possession. Since
Actrade Financial Technologies Ltd. is legally liable for its share of
outstanding liabilities, Actrade Capital, Inc. charged back Actrade Financial
Technologies Ltd. through intercompany accounts for the outstanding liabilities
as of July 31, 2003. Actrade Financial Technologies Ltd. paid no professional
fees and other related expenses attributable to the reorganization during the
period from December 13, 2002 through July 31, 2003.

NOTE 7.  PRESS RELEASE DATED MARCH 26, 2003 ANNOUNCES ADDITIONAL DEVELOPMENTS

The Company's Board of Directors has determined to pursue a sale of the company
as a going concern, among other alternatives, to maximize value for all of the
Company's creditors and stockholders.

NOTE 8.  PRESS RELEASE DATED JUNE 10, 2003 ANNOUNCES
         ADDITIONAL DEVELOPMENTS

Actrade Financial Technologies, LTD on June 10, 2003 announced that , effective
immediately, Actrade and all of its subsidiaries will cease writing any new
business and will not issue new Trade Acceptance Drafts. Actrade also announced
that it will promptly seek to reduce operating expenses, while focusing
primarily on collecting the Company's outstanding TADs receivable, and on the
sale process described below.


                                       6
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)


The Company also announced that, pursuant to its previously announced plan to
seek to maximize value for all of the Company's creditors and stockholders, it
is, with the assistance of its financial advisor, Anderson, Weinroth & Partners,
LLC, continuing to pursue a sale of the Company. Although the Company is engaged
in discussions with potential buyers, there can be no assurance that the Company
will consummate a sale transaction.


                                       7
<PAGE>

                                                                       EXHIBIT 1

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF OPERATIONS
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                   TOTAL MONTHLY
                                                               INTERCOMPANY        DISBURSEMENTS
                                           TOTAL MONTHLY       DISBURSEMENTS          EXCLUDING
DEBTOR COMPANY           CASE NUMBER       DISBURSEMENTS     INCLUDED IN TOTAL      INTERCOMPANY
--------------           -----------       -------------     -----------------      ------------
<S>                      <C>                   <C>                 <C>                <C>
Actrade Financial
   Technologies Ltd.     02-16212(ALG)         $    --             $    --            $    --
                                           -----------------------------------------------------
                                               $    --             $    --            $    --
                                           =====================================================
</TABLE>



                                       8

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>ex99_2form8k081303.txt
<DESCRIPTION>EXHIBIT 99.2
<TEXT>

                                                                    EXHIBIT 99.2
                                                                    ------------

PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
Jeffrey D. Saferstein (JS/5339)
Erica Weinberger (EW/1411)
1285 Avenue of the Americas
New York, New York 10019-6064
Telephone:  (212) 373-3000
Attorneys for Debtor in Possession

UNITED STATE BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
----------------------------------------x
                                        :     Chapter 11
In re:                                  :     Case No. 02-16213 (ALG)
                                        :
ACTRADE CAPITAL, INC.                   :
                                        :
                               Debtor.  :
                                        :
----------------------------------------x



                         MONTHLY OPERATING STATEMENT FOR
                    THE PERIOD JULY 1, 2003 TO JULY 31, 2003
                    ----------------------------------------



<PAGE>

UNITED STATE BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK

                                              CHAPTER 11 CASE NO. 02-16213 (ALG)


                              ACTRADE CAPITAL, INC.
--------------------------------------------------------------------------------
                                     DEBTOR

                         Monthly Operating Statement For
                    The Period July 1, 2003 to July 31, 2003


DEBTOR'S ADDRESS:
Actrade Capital, Inc.
200 Cottontail Lane
Vantage Court South
Somerset, NJ 08873

                                        Monthly Disbursements:     $    218,000
                                                                   ------------

Debtor's Attorney:
------------------
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019

                                        Monthly After Tax Loss:    $    998,000
                                                                   ------------


         The undersigned, having reviewed the attached report and being familiar
with the Debtor's financial affairs, verifies under the penalty of perjury, that
to the best of my knowledge, information and belief, the information contained
therein accurately reflects, on an unconsolidated basis, information contained
in the Debtor's books and records and public filings. As stated in previous
disclosures, no assurances can be given and no reliance should be made, on the
Debtor's books and records, and on the information contained in the Debtor's
public filings.

         The undersigned also verifies that, to the best of his knowledge, all
insurance policies, including workers compensation and disability insurance,
have been paid currently.


DATE:  August 15, 2003                  By: /s/ Richard F. McCormick
                                            ----------------------------------
                                            Richard F. McCormick
                                            Vice President
                                            Actrade Capital, Inc.


Indicate if this is an amended statement by checking here

                                                     Amended Statement    [_]


<PAGE>

                              ACTRADE CAPITAL, INC.
                             (DEBTOR-IN-POSSESSION)
                                  BALANCE SHEET
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)


ASSETS

CURRENT ASSETS:
     Cash                                                              $ 17,987

     Other current assets                                                   595
                                                                       --------
         Total Current Assets                                            18,582


OTHER ASSETS                                                                 10
                                                                       --------

TOTAL ASSETS                                                           $ 18,592
                                                                       ========
LIABILITIES AND STOCKHOLDERS' DEFICIT

LIABILITIES NOT SUBJECT TO COMPROMISE:
CURRENT LIABILITIES:
     Accounts payable                                                  $  1,708
     Accrued expenses                                                       286
                                                                       --------
         Total Current Liabilities                                        1,994
                                                                       --------

DUE TO PARENT, SUBSIDIARIES AND AFFILIATES                               47,487

LIABILITIES SUBJECT TO COMPROMISE:
     Accounts payable                                                        54
     Accrued expenses                                                       285
                                                                       --------
         Total Current Liabilities Subject to Compromise                    339
                                                                       --------
   Total Liabilities                                                     49,820
                                                                       --------

STOCKHOLDERS' DEFICIT:
     Common stock                                                            --
     Additional paid in capital                                              10
     Accumulated deficit                                                (31,238)
                                                                       --------

         Total Stockholders' Deficit                                    (31,228)
                                                                       --------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                            $ 18,592
                                                                       ========


                       See Notes to Financial Statements

                                       2
<PAGE>

                              ACTRADE CAPITAL, INC.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF OPERATIONS
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                       FOR THE PERIOD
                                                                                      DECEMBER 13, 2002
                                                                       MONTH ENDED         THROUGH
                                                                      JULY 31, 2003     JULY 31, 2003
                                                                      -------------     -------------
<S>                                                                   <C>               <C>
Revenue - Trade acceptance drafts                                     $          --     $       1,022

Other Income - Recovery of Bad Debt                                           1,683             1,683

Operating Expenses:
     General and administrative expenses                                        286             4,739
     Bad debt                                                                    --             1,849
     Interest expense                                                            --                10
                                                                      -------------     -------------
Total Operating Expenses                                                        286             6,598
                                                                      -------------     -------------

Income (Loss) before reorganization items and income tax benefit              1,397            (3,893)
                                                                      -------------     -------------

Reorganization items:
     Professional fees                                                         (620)           (4,230)
     Interest earned on accumulated cash resulting
       from Chapter 11 proceeding                                                 5                47
                                                                      -------------     -------------
                                                                               (615)           (4,183)
                                                                      -------------     -------------

Income (Loss) before (provision for income taxes) income tax benefit            782            (8,076)

Income tax benefit                                                              216            (2,590)
                                                                      -------------     -------------

Net Income (Loss)                                                     $         998     $     (10,666)
                                                                      =============     =============
</TABLE>


                       See Notes to Financial Statements

                                       3
<PAGE>

                              ACTRADE CAPITAL, INC.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF CASH FLOWS
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                        FOR THE PERIOD
                                                                                       DECEMBER 13, 2002
                                                                       MONTH ENDED         THROUGH
                                                                      JULY 31, 2003     JULY 31, 2003
                                                                      -------------     -------------
<S>                                                                   <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income (Loss)                                                   $         998     $     (10,666)
  Adjustments to reconcile net loss to net cash provided by
     operating activities:
       Depreciation and amortization                                             --               626
       Recovery of bad debt                                           $      (1,683)
       Bad debt                                                                  --             1,849
       Deferred income                                                           --              (224)
       Deferred income tax asset                                                170             9,120

Changes in operating assets and liabilities:
       Trade acceptance drafts receivable                                     1,683             8,031
       Other current assets                                                    (384)             (267)
       Other assets                                                              (1)               (1)
       Accounts payable                                                         612             1,708
       Accrued expenses                                                          58             1,908
       Due to parent, subsidiaries and affiliates                               (88)           (1,578)
       Income taxes payable                                                      --            (6,270)
                                                                      -------------     -------------

Net cash provided by operating activities before
   Reorganization Items                                                       1,365             4,236

Operating Cash Flow From Reorganization Items -
   Bankruptcy related professional fees paid                                    (97)           (2,059)
                                                                      -------------     -------------

Net cash provided by (used in) operating activities                           1,268             2,177
                                                                      -------------     -------------

Net increase (decrease) in cash during the period                             1,268               494

Cash balance at beginning of period                                          16,719            17,493
                                                                      -------------     -------------

Cash balance at end of period                                         $      17,987     $      17,987
                                                                      =============     =============
</TABLE>


                       See Notes to Financial Statements

                                       4
<PAGE>

                              ACTRADE CAPITAL, INC.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)

NOTE 1.  BASIS OF PRESENTATION

The accompanying unaudited financial statements of Actrade Capital, Inc. have
been prepared on a going concern basis, which contemplates continuity of
operations, realization of assets and liquidation of liabilities in the ordinary
course of business. These financial statements include intercompany balances
that would be eliminated, in accordance with generally accepted accounting
principles, when the results of Actrade Capital, Inc. are consolidated with its
parent and all of its wholly owned subsidiaries or affiliates.

NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES

Financial Reporting For Bankruptcy Proceedings - In connection with the
bankruptcy proceedings, the Company is required to report in accordance with the
American Institute of Certified Public Accountant's Statement of Position 90-7
"Financial Reporting by Entities in Reorganizations under the Bankruptcy Code"
(SOP 90-7"). SOP 90-7 requires, among other things, (i) that pre-petition
liabilities that are subject to compromise be segregated in the Company's
balance sheet as liabilities subject to compromise and (ii) the identification
of all transactions and events that are directly associated with the
reorganization of the Company in Statement of Operations.

NOTE 3.  PETITION FOR RELIEF UNDER CHAPTER 11

On December 12, 2002, Actrade Capital, Inc. (the "Debtor"), filed a petition for
relief under Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the Southern District of New York. Under Chapter 11,
actions to enforce certain claims against the Debtor in existence prior to the
filing of the Chapter 11 petition are stayed while the Debtor continues business
operations as a debtor-in-possession. These claims are reflected in the July 31,
2003, balance sheet as "liabilities subject to compromise." Additional claims
(liabilities subject to compromise) may arise subsequent to the filing date
resulting from rejection of executory contracts or leases, and from the
determination by the court (or agreed to by parties in interest) of allowed
claims for contingencies and other disputed amounts. Actions by creditors whose
claims are secured against the Debtor's assets ("Secured Claims") also are
stayed, although the holders of such claims have the right to move the court for
relief from the stay. Secured Claims are secured primarily by the liens on
Debtor's Trade Acceptance Drafts receivable.

The Debtor received approval from the Bankruptcy Court to pay or otherwise honor
certain of its prepetition obligations, including wages and other employee
benefits.


                                       5
<PAGE>

                              ACTRADE CAPITAL, INC.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)


NOTE 4.  REORGANIZATION COSTS

Reorganization costs include professional fees and other related expenses
attributable to the filings.

NOTE 5.  INTERCOMPANY TRANSACTIONS

Intercompany balances would be eliminated, in accordance with generally accepted
accounting principles, when the results of Actrade Capital, Inc. are
consolidated with its parent and all of its wholly owned subsidiaries or
affiliates. The intercompany balances that are included on the accompanying
financial statements under the caption of Due to Parent, Subsidiaries and
Affiliates amounted to $47,487 at July 31, 2003.

NOTE 6.  SUPPLEMENTAL FINANCIAL INFORMATION

Actrade Capital, Inc. is the operating entity, which recognized and paid all
operating expenses including professional fees and other related expenses
attributable to the reorganization filings for itself and its parent, Actrade
Financial Technologies Ltd. Actrade Capital, Inc. charged back to Actrade
Financial Technologies Ltd. through intercompany accounts for its share of
outstanding liabilities as of July 31, 2003 since Actrade Financial Technologies
Ltd is legally obligated for these outstanding liabilities. Actrade Capital,
Inc. paid approximately $2,059 for professional fees and other related expenses
attributable to the reorganization during the period from December 13, 2002
through July 31, 2003.

NOTE 7.  PRESS RELEASE DATED MARCH 26, 2003 ANNOUNCES ADDITIONAL DEVELOPMENTS

The Company's Board of Directors has determined to pursue a sale of the company
as a going concern, among other alternatives, to maximize value for all of the
Company's creditors and stockholders.

NOTE 8.  PRESS RELEASE DATED JUNE 10, 2003 ANNOUNCES
         ADDITIONAL DEVELOPMENTS

Actrade Financial Technologies, LTD ("Actrade" or the "Company") announced on
June 10, 2003 that, effective immediately, Actrade and all of its subsidiaries
will cease writing any new business and will not issue new Trade Acceptance
Drafts. Actrade also announced that it will promptly seek to reduce operating
expenses, while focusing


                                       6
<PAGE>

                              ACTRADE CAPITAL, INC.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)



NOTE 8.  PRESS RELEASE DATED JUNE 10, 2003 ANNOUNCES
         ADDITIONAL DEVELOPMENTS (Cont'd)

primarily on collecting the Company's outstanding TADs receivable, and on the
sale process described below.

The Company also announced that, pursuant to its previously announced plan to
seek to maximize value for all of the Company's creditors and stockholders, it
is, with the assistance of its financial advisor, Anderson, Weinroth & Partners,
LLC, continuing to pursue a sale of the Company. Although the Company is engaged
in discussions with potential buyers, there can be no assurance that the Company
will consummate a sale transaction.

NOTE 9.  REVALUATION OF DEFERRED TAX ASSET

As further discussed in notes 7 and 8 the Company has discontinued operations
and is pursuing a sale of the Company. Effective in the June period, the Company
determined that a valuation of the Deferred Tax Asset was necessary. As of July
31, 2003 the asset is valued at $0. The valuation allowance of $7,504 was
necessary to reflect the realizable net value of taxes deferred as operations
were discontinued and the asset was unrealizable.


                                       7
<PAGE>

                                                                       EXHIBIT 1
                              ACTRADE CAPITAL, INC.
                             (DEBTOR-IN-POSSESSION)
                        SUMMARY OF MONTHLY DISBURSEMENTS
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                   TOTAL MONTHLY
                                                               INTERCOMPANY        DISBURSEMENTS
                                           TOTAL MONTHLY       DISBURSEMENTS          EXCLUDING
DEBTOR COMPANY           CASE NUMBER       DISBURSEMENTS     INCLUDED IN TOTAL      INTERCOMPANY
--------------           -----------       -------------     -----------------      ------------
<S>                      <C>                   <C>                 <C>                <C>
Actrade Capital, Inc.    02-16213 (ALG)        $   218             $ --               $   218
                                           -----------------------------------------------------
                                               $   218             $ --               $   218
                                           =====================================================
</TABLE>


                                       8

</TEXT>
</DOCUMENT>
</SUBMISSION>
