U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 12b-25

                           NOTIFICATION OF LATE FILING

                           SEC FILE NUMBER: 000-32319
                            CUSIP NUMBER: 29669B 10 6

               [ ]Form 10-K and Form 10-KSB [ ]Form 20-F [ ]Form 11-K
               [ ]Form 10-Q and [X] Form 10-QSB

                      For Period Ended: September 30, 2002

                           [ ] Transition Report on Form 10-K
                           [ ] Transition Report on Form 20-F
                           [ ] Transition Report on Form 11-K
                           [ ] Transition Report on Form 10-Q
                           [ ] Money Market Fund Rule 30b3-1 Filing

                      For the Transition Period Ended: N/A

      Nothing in this form shall be construed to imply that the Commission
                 has verified any information contained herein.

      If the notification relates to a portion of the filing checked above,
          identify the Items(s) to which the notification relates: N/A





Part I.   Registrant Information.

         The Registrant is Essential Reality, Inc. (the "Company") and has
an address at 49 West 27th Street, Suite 7E, New York, New York 10001.

Part II.  Rules 12b-25 (b) and (c)

[X] (a) The reasons described in reasonable detail in Part III of this form
could not be eliminated without unreasonable effort or expense;

[X] (b) The subject annual report, semi-annual report, transition report on Form
10-K, Form 20-F, 11-K or Form N-SAR, or portion thereof will be filed on or
before the fifteenth calendar day following the prescribed due date; or the
subject quarterly report or transition report on Form 10-Q, or portion thereof
will be filed on or before the fifth calendar day following the prescribed due
date; and

[ ] (c) The accountant's statement or other exhibit required by Rule 12b-25(c)
has been attached if applicable.

Part III.  Narrative

         State below in reasonable detail the reasons why the Form 10-K, Form
10-KSB, 11-K, 10-Q, 10-QSB, N-SAR, or the transition report or portion thereof
could not be filed within the prescribed time period.

         The Form 10-QSB for the quarter ended September 30, 2002 for the
Company could not be filed within the prescribed period because the Company was
unable to complete certain information key to filing a timely and accurate
report on the internal financial aspects of the Company. Such inability could
not have been eliminated by the registrant without unreasonable effort or
expense.

Part IV. Other Information

        (1) Name and telephone number of person to contact in regard to this
            notification:

            Steven T. Francesco    (212) 244-3200

         (2) Have all other periodic reports required under section 13 or 15(d)
of the Securities Exchange Act of 1934 or section 30 of the Investment Company
Act of 1940 during the preceding 12 months or for such shorter period that the
registrant was required to file such report(s) been filed? If the answer is no,
identify report(s).
                                 [X] Yes [ ] No


(3) Is it anticipated that any significant change in results of operations from
the corresponding period for the last fiscal year will be reflected by the
earnings to be included in the subject report or portion thereof?

                                 [ ] Yes [X] No

        If so, attach an explanation of the anticipated change, both narratively
and quantitatively, and, if appropriate, state the reasons why a reasonable
estimate of the results cannot be made.


Essential Reality, Inc. has caused this notification to be signed on its behalf
by the undersigned thereunto duly authorized.


                                  ESSENTIAL REALITY, INC.


Date:    November 14, 2002        By: /s/ Steven Francesco
                                      ------------------------------------------
                                      Steven Francesco, Chief Executive Officer