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

                                   FORM 10-QSB

    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                                     OF 1934

                  For the quarterly period ended June 30, 2000

                         Commission File No.33-55254-42

                        QUANTITATIVE METHODS CORPORATION
                        --------------------------------
        (Exact name of small business issuer as specified in its charter)

           NEVADA                                      87-0485310
--------------------------------                   ----------------
(State or other  jurisdiction of                   (IRS Employer
incorporation  or  organization)                 Identification No.)

                       203-6200 Taschereau Boulevard East
                            Brossard (Quebec) Canada
                                     J4W 3J8
         (Address of principal executive offices, including postal code)

          Issuer's telephone number, including area code:(888) 713-2222

Check  whether  the issuer  (1) has filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during the past 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. [X] Yes [] No

The  number of shares  outstanding  of each of the  issuer's  classes  of common
equity, as of the latest practicable date.

           Class                              Outstanding as of June 30, 2000
------------------------------------          -------------------------------
$.001 PAR VALUE CLASS A COMMON STOCK                10,300,000 SHARES

                       DOCUMENTS INCORPORATED BY REFERENCE
                                      NONE



                                        1

<PAGE>



                        QUANTITATIVE METHODS CORPORATION

                            FORM 10-QSB/JUNE 30, 2000

                                TABLE OF CONTENTS


General
Index

PART I

     Item 1. -  Consolidated Financial Statements:

         Balance Sheets -
              June 30, 2000 (Unaudited) and December 31, 1999 (Audited)      F-1

         Statements of Operations - (Unaudited)
            Three Months ended June 30, 2000
              and 1999 Six Months ended June 30, 2000 and 1999
              and from Date of Inception to June 30, 2000                    F-2

         Statements of Cash Flows -  (Unaudited)
            Six Months ended June 30, 2000 and 1999
                  and from Date of Inception to June 30, 2000                F-3

         Notes to Consolidated Financial Statements                          F-4

     Item 2. - Management's Discussion and Analysis of Financial Condition
                  and Results of Operations                                    4




                                        2

<PAGE>



                                     PART I
                              FINANCIAL INFORMATION

ITEM 1. - Financial Statements.


                                        3

<PAGE>



                 QUANTITATIVE METHODS CORPORATION AND SUBSIDIARY
                          (A Development Stage Company)
                           CONSOLIDATED BALANCE SHEETS
                         (expressed in Canadian dollars)

<TABLE>
<CAPTION>
                                                                      June 30,                December 31,
                                                                        2000                      1999
                                                                  ----------------           ---------------
                                                                     (Unaudited)                (Audited)
ASSETS
   CURRENT ASSETS
<S>                                                               <C>                        <C>
     Cash                                                         $              0           $             0
     Accounts receivable                                                    10,950                    12,412
     Income tax recoverable                                                117,007                   111,185
     Prepaid expenses                                                       21,961                     2,778
                                                                  ----------------           ---------------

                                          TOTAL CURRENT ASSETS             149,918                   126,375

PLANT & EQUIPMENT                                                           43,717                    50,816
                                                                  ----------------           ---------------

OTHER ASSETS
   Patents and trademarks                                                   23,698                    28,576
                                                                  ----------------           ---------------
                                                                            23,698                    28,576
                                                                  ----------------           ---------------

                                                  TOTAL ASSETS    $        217,333           $       205,767
                                                                  ================           ===============

LIABILITIES & (DEFICIT)
   CURRENT LIABILITIES
     Cash overdraft                                               $         13,855           $        11,498
     Bank loan                                                              16,747                    75,000
     Accounts payable and accrued expenses                                 422,427                   342,638
     Payable - shareholders                                                222,385                   136,132
     Current portion of long-term debt                                           0                    13,705
                                                                  ----------------           ---------------

                                     TOTAL CURRENT LIABILITIES             675,414                   578,973

STOCKHOLDERS' (DEFICIT)
   Common Stock $.001 par value:
     Authorized - 25,000,000 shares
     Issued and outstanding 10,300,000 shares                               15,475                    15,475
   Additional paid-in capital                                            1,836,072                 1,836,072
   Deficit accumulated during the development stage               (      2,309,628)          (     2,224,753)
                                                                   ---------------            --------------

                                 TOTAL STOCKHOLDERS' (DEFICIT)    (        458,081)          (       373,206)
                                                                   ---------------            --------------

                                                                  $        217,333           $       205,767
                                                                  ================           ===============
</TABLE>


                                       F-1

<PAGE>



                 QUANTITATIVE METHODS CORPORATION AND SUBSIDIARY
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                         (expressed in Canadian dollars)
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                                                  Date of
                                               Three Months Ended                   Six Months Ended             Inception
                                                    June 30,                            June 30,                 to June
                                              2000             1999              2000             1999             2000
                                          -----------       -----------      -----------       -----------    -------------
<S>                                       <C>               <C>              <C>               <C>            <C>
SALES                                     $         0       $         0      $         0       $         0    $           0
                                          -----------       -----------      -----------       -----------    -------------

General and Administrative expenses
   Professional fees                           (1,753)            2,452            1,079             8,446          139,820
   Consulting                                       0            64,900                0           126,094          699,691
   Salaries and fringe benefits                11,518            20,815           23,116            33,868          367,732
   Rent                                         5,917             5,465           11,905            10,895          113,560
   Traveling and business promotion               173             3,045            1,425             3,045          101,340
   Office expenses                                644             5,916            1,213             7,369           45,044
   Research and development                     7,486            24,293           23,287            49,299          327,227
   Telephone and communication                    850             1,861            1,822             4,153           93,429
   Car expenses                                     0                 0                0                 0           18,235
   Insurance, taxes and licenses                  409               438              897               915           24,583
   Interest and bank charges                      457               462              961             2,101           22,153
   Interest on bank loan                        1,743            (2,467)           7,192            (1,060)          75,368
   Loss on disposal of investment                   0                 0                0                 0           34,845
   Depreciation of fixed assets                 3,550             4,527            7,100             9,054          101,035
   Depreciation of deferred expenses            2,439             2,460            4,878             4,920           35,569
                                          -----------       -----------      -----------       -----------    -------------

                    Total general and
               administrative expenses         33,433           134,167           84,875           259,099        2,199,631
                                          -----------       -----------      -----------       -----------    -------------

                     NET INCOME (LOSS)
                   BEFORE INCOME TAXES    (    33,433)      (   134,167)     (    84,875)      (   259,099)   (   2,199,631)
                                           ----------        ----------       ----------        ----------     ------------

                          INCOME TAXES              0                 0                0                 0                0
                                          -----------       -----------      -----------       -----------    -------------

                     NET INCOME (LOSS)    $(   33,433)      $(  134,167)     $(   84,875)      $(  259,099)   $(  2,199,631)
                                            =========         =========        =========         =========      ===========

Net income (loss) per weighted
   average share                          $(      .00)      $(      .01)     $(      .01)      $(      .03)
                                            =========         =========        =========         =========

Weighted average number of common
   shares used to compute net income
   (loss) per weighted average share       10,300,000         9,300,000       10,300,000         9,300,000
                                          ===========       ===========      ===========       ===========
</TABLE>


                                       F-2

<PAGE>



                 QUANTITATIVE METHODS CORPORATION AND SUBSIDIARY
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                         (expressed in Canadian dollars)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                       Date of
                                                                Six Months Ended                      Inception
                                                                    June 30,                         to June 30,
                                                           2000                  1999                   2000
                                                     ----------------      ---------------       ------------------
OPERATING ACTIVITIES
<S>                                                  <C>                   <C>                   <C>
Net earnings (loss)                                  $(        84,875)     $(      259,099)      $(       2,199,631)
Items not requiring cash outlays:
   Stock issued for services                                        0                    0                  290,190
   Loss on disposal of investment                                   0                    0                   34,845
   Depreciation of fixed assets
     and deferred costs                                        11,978               13,974                  136,604
   Decrease in value of software
     development costs                                              0                    0                  172,682
                                                     ----------------      ---------------       ------------------

                                                     (         72,897)     (       245,125)      (        1,565,310)

Changes in non-working capital items                 (          2,008)             257,893                  289,255
                                                      ---------------      ---------------       ------------------

                     NET CASH PROVIDED (REQUIRED)
                          BY OPERATING ACTIVITIES    (         74,905)              12,768       (        1,276,055)
                                                      ---------------      ---------------        -----------------

INVESTING ACTIVITIES
   Acquisition of investment                                        0                    0       (          100,747)
   Proceeds of disposal of investment                               0                    0                   65,902
   Increase in software development costs                           0                    0       (          172,682)
   Acquisition of fixed assets
     and deferred expenses                                          0      (         8,536)      (          204,018)
                                                     ----------------       --------------        -----------------

                                  NET CASH (USED)
                          BY INVESTING ACTIVITIES                   0      (         8,536)      (          411,545)
                                                     ----------------       --------------        -----------------

FINANCING ACTIVITIES
   Variation of advances from shareholders                     86,253      (           957)                 222,385
   Net proceeds of issuance of shares                               0                  500                1,451,360
   Addition to long-term debt                                       0                    0                  134,680
   Repayment of long-term debt                       (         13,705)     (        16,667)      (          134,680)
                                                      ---------------       --------------        -----------------

                                  NET CASH (USED)
                          BY FINANCING ACTIVITIES              72,548      (        17,124)               1,673,745
                                                     ----------------       --------------       ------------------

                      INCREASE (DECREASE) IN CASH
                             AND CASH EQUIVALENTS    (          2,357)     (        12,892)      (           13,855)

   Cash and cash equivalents
     at beginning of PERIOD                          (         11,498)     (        42,556)                       0
                                                      ---------------       --------------       ------------------

                        CASH AND CASH EQUIVALENTS
                                 AT END OF PERIOD    $(        13,855)     $(       55,448)      $(          13,855)
                                                       ==============        =============         ================

                           CASH PAID FOR INTEREST    $          1,743      $         1,041       $           75,368

</TABLE>


                                       F-3

<PAGE>



                 QUANTITATIVE METHODS CORPORATION AND SUBSIDIARY
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2000
                                   (Unaudited)

         The unaudited  consolidated  financial statements for the quarter ended
         June 30, 2000, have been prepared in accordance  with the  instructions
         to Form 10-QSB and,  therefore,  do not  include  all  information  and
         footnotes necessary for a complete  presentation of financial position,
         results of  operations,  cash flows and  stockholder's  deficit for the
         quarter then ended,  in conformity with generally  accepted  accounting
         principles.  In the opinion of management,  all adjustments  considered
         necessary  for a fair  presentation  of the results of  operations  and
         financial position have been included and all such adjustments are of a
         normal recurring nature.  The results of operations for interim periods
         are not  necessarily  indicative  of  results to be  achieved  for full
         fiscal years.  For further  information,  refer to the Company's annual
         consolidated  financial  statements and related  footnotes  included on
         Form-10KSB for the year ended December 31, 1999.


NOTE 1:           INCORPORATION AND NATURE OF BUSINESS

         Quantitative Methods Corporation,  a development stage enterprise,  was
         incorporated  under the laws of the  State of Nevada on July 26,  1990.
         The Company  acquired 100%  ownership of Softguard  Enterprises,  Inc.,
         incorporated  in June 23,  1995,  to  engage in the  technical  product
         research  and  development  and  commercialization  of the  "SLNS"  and
         "QUORUM"  products  for  use  in  the  field  of  information   systems
         management and security.  Softguard is a development  stage  enterprise
         and has had no revenues to date.

         The  historical  financial  statements  prior to December  31, 1998 are
         those of Softguard Enterprises Inc.

NOTE 2:           BASIS OF FINANCIAL STATEMENT PRESENTATION AND GOING CONCERN
                  ASSUMPTION

         The consolidated financial statements are expressed in Canadian dollars
         and  have  been  prepared  in  accordance  with  accounting  principles
         generally accepted in the United States of America.

         The Company has incurred operating losses since inception.  At June 30,
         2000, the Company has an accumulated deficit of $2,309,628.

         In  view  of  these  matters,  the  Company's  continued  existence  is
         dependent  upon its ability to generate  sufficient  cash flow to cover
         operating expenses and to invest in future operations.

         Management's  goals are to  increase  revenues  and  shareholder  value
         through  acquisitions  of  business  opportunities  in  the  technology
         sector.  QTTM's management  believes that actions presently being taken
         to obtain additional capital  investments  through private placement or
         other  financing will provide  adequate  working  capital over the next
         twelve  months and enable the Company to  continue as a going  concern,
         without creating new debt.

NOTE 3:           SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES

         Accounting Method
         The Company  recognizes income and expenses based on the accrual method
         of accounting.

         Consolidation
         The  consolidated  financial  statements  for June 30, 2000 include the
         accounts  of the  Company and its wholly  owned  subsidiary,  Softguard
         Enterprises, Inc. ("Softguard").

         Softguard is currently  the main line of business for the Company.  All
         significant   inter-company   transactions   have  been  eliminated  on
         consolidation.



                                       F-4

<PAGE>


                 QUANTITATIVE METHODS CORPORATION AND SUBSIDIARY
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2000
                                   (Unaudited)

NOTE 3:           SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES (continued)

         Cash and Cash Equivalents
         For  financial  statement  purposes,  the Company  considers all highly
         liquid  investment  with an original  maturity of three  months or less
         when purchased to be cash equivalents.

         Dividend Policy
         The  Company  has not yet  adopted  any  policy  regarding  payment  of
         dividends.

         Earnings (Loss) Per Share
         Earnings or loss per common and common  equivalent share is computed by
         dividing net  earnings  (loss) by the weighted  average  common  shares
         outstanding during each period.

         Fixed Assets and Deferred expenses
         Depreciation and Amortization
         Fixed  assets and  deferred  expenses are  accounted  for at cost.  The
         Company depreciates its fixed assets and deferred expenses according to
         the following methods and annual rates:

              Computer equipment          Declining-balance method         30%
              Computer software           Declining-balance method         30%
              Furniture and fixtures      Declining-balance method         20%
              Office equipment            Declining-balance method         20%
              Leasehold Improvements      Straight-line method             33%
              Deferred expenses           Straight-line method             20%

         The carrying value of the property and equipment is evaluated  whenever
         significant  events of changes occur that might  indicate an impairment
         through comparison of the carrying value to the net recoverable amount.

         Revenue Recognition
         The Company has not recognized any revenue to date.

         Research and Development Costs
         All research  and  development  costs,  which  establish  technological
         advancement,  are charged to  operations  in the year in which they are
         incurred.

         Income Taxes
         The Company  records the income tax effect of  transactions in the same
         year that the  transactions  enter  into the  determination  of income,
         regardless of when the  transactions  are  recognized for tax purposes.
         Tax credits are recorded in the year realized.

         The Company  uses the assets and  liabilities  approach  for  financial
         accounting and reporting of income taxes.  Under this method,  deferred
         tax assets and  liabilities  are recognized for the expected future tax
         consequences  of  events  that have been  recognized  in the  financial
         statements  or tax  returns.  Deferred tax assets and  liabilities  are
         measured  using tax rates  expected  to apply to taxable  income in the
         years in which those temporary differences are expected to be recovered
         or settled.  The effect on  deferred  tax assets and  liabilities  of a
         change in tax rates is  recognized  in  earnings in the period in which
         the change occurs.



                                       F-5

<PAGE>


                 QUANTITATIVE METHODS CORPORATION AND SUBSIDIARY
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2000
                                   (Unaudited)

NOTE 3:           SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES (continued)

         Use of Estimates
         The  financial   statements  have  been  prepared  in  conformity  with
         generally  accepted  accounting  principles,   and  as  such,  requires
         management to make estimates and  assumptions  that affect the reported
         amounts  of  assets,  liabilities,  revenues  and  expenses  during the
         reporting  period.  Estimates  also affect the disclosure of contingent
         assets and liabilities at the date of the financial statements.  Actual
         results could differ from the estimates.

         The fair  value of these  financial  instruments  is not  significantly
         different than their carrying amounts.

         Credit Risk
         The Company's exposure to credit risk is nil.

         Interest Rate Risk
         The  subsidiary  is  exposed  to  interest  rate risk on the bank loan.
         Changes in the interest rate of 1% would not have a significant  effect
         on the net loss, deficit or financial position of the Company.

         Translation of Foreign Currencies
         Monetary  assets  and  liabilities  are  translated  at  the  month-end
         exchange rate. Any gain or loss due to exchange  fluctuation is charged
         to the statement of loss.



                                       F-6

<PAGE>



ITEM. 2- Management's  Discussion  and Analysis of Financial  Condition and
         Results of Operations

History and Purpose
Quantitative  Methods  Corporation  ("QTTM" or the "Company")  was  incorporated
under the laws of the State of Nevada on July 26th,  1990. The Company's  common
stock is currently traded on the OTC Pink Sheets under the symbol "QTTM".

On January 8th,  1999,  the board of directors of QTTM entered into an Agreement
with Softguard Enterprises Inc.  ("Softguard"),  a private Canadian corporation,
whereby the Company  issued and delivered  7,650,000  shares of its Common Stock
bearing a restrictive legend, in exchange for which issuance;  QTTM acquired all
of the  outstanding  shares of Softguard.  The  transaction  was exempt from the
registration  requirements  of the  Securities  Act of 1933 by virtue of Section
4(2) thereof.

Following the transaction the former  shareholders of Softguard owned 82% of the
outstanding shares of the Company.  No material  relationship exists between the
former  management and directors of  Quantitative  Methods  Corporation  and the
current management and directors.

Business Activities
Since its incorporation in June 1995,  Softguard  Enterprises Inc. has dedicated
itself to the research and product  development of  technologies  for use in the
field of information  systems  management and security.  To ensure that customer
security,  performance and robustness of purpose requirements will be met at all
times;   Softguard  has  engineered  a  unique  Internet   client/server  system
technology based on a series of Master, Sub-Station and Proxy servers.

Softguard is a  development  stage  enterprise  and has had no revenues to date.
Softguard's   resources   have  been   committed   to  the   implementation   of
state-of-the-art  Internet  protocols to create  leading-edge  software security
solutions  in the  development  of a discreet,  non-intrusive,  intelligent  and
universal architecture. The system was developed in a Unix environment, based on
Linux.  The free POSIX operating  system  architecture is robust,  efficient and
stable.

Reaching the final development stages of the system and core architecture,  this
work has primarily consisted of the creation of two products that fall under the
following categories:  A) Software License Notification Service ("SLNS"), and B)
Quorum Document Authentication System.

The working  prototype of SLNS was designed to provide  customers with a secure,
private and efficient  means of verifying  the origin,  legality or integrity of
software within their computing  environment.  It also provides timely access to
product upgrade and security information.

Quorum  provides  technology  for  document  validation,  version  control,  and
distributed annotation and approval for organizations that need to verify that a
given file is an authentic replica of an original.

Softguard has submitted a patent application for SLNS to the U.S.  Department of
Commerce,  Patent and Trademark  Office.  The  application has been examined and
allowed for issuance.  Softguard  also has patent pending for the SLNS in Canada
and the contracting state of the European Patent Convention.

Softguard's  objective is to expand the core  technology and the majority of the
existing code to support  numerous  applications  in the secure  circulation  of
digital information,  including sound and image files, online copyright control,
document security and  confidentiality  audit, as well as virus  protection;  in
short,  supporting  the  intellectual  property  protection  of  every  kind  of
computerized data.

Management is of the opinion that the Company's  SLNS  technology,  while as yet
untested in the marketplace,  represents a viable business opportunity. The SLNS
will enable the corporate or other users to ascertain if their  systems  contain
unlicenced, unauthorized or other "rogue" software. Management believes that the
market  for this  product  is  significant.  Management  is unaware of any other
product currently available that addresses this need.

At the  present  time,  the  Company's  main focus is to take  advantage  of the
tremendous  growth  of the  multi-  billion  dollar  Internet  industry  that is
creating virtually unlimited acquisition and merger  possibilities.  To meet the
objectives  of its business plan in the  short-term  and to invest in and ensure
sustainable  growth of a  diversified  portfolio  of  emerging  e-business,  the
following  potential  business venture would provide a source of eventual profit
to the Company.


                                        4

<PAGE>



During  1999,  the  Company  entered  into a verbal  agreement  to acquire  100%
interest in SolarPro Reg'd (Gestion Danpe Inc.)  ("SolarPro"),  a Canadian-based
solar  technology  equipment  manufacturer  and distributor  located in Asbestos
(Quebec) Canada. With this acquisition,  the Company would receive manufacturing
equipment, prototypes,  inventory, accounts receivable and an established market
presence in Canada and the United States.  Gestion Danpe,  Inc. was incorporated
in March 1991 and has  operated  under the  registered  name of  SolarPro  since
August 1996.

The Company  hopes to finalize  this  acquisition  in the third quarter of 2000,
pending the approval and markings from the Canadian Standards  Association (CSA)
for the National Recognized Testing  Laboratories  (NRTL)  certification for the
solar units.  SolarPro is the top-line and unique  manufacturer  using  anodized
extruded  aluminum in the construction of high-end solar units that have minimal
assembly requirements. The primary advantage of these units is the durable, high
quality  finish that extends the useful life of the product line for  commercial
use.

Based  on   funding   from   QTTM,   SolarPro   will   develop   a   significant
business-to-business  e-model and relocate  their  manufacturing  facilities  in
order to expand operations and focus resources on product development, sales and
distribution.

The  Company  intends  to  implement  a  cost-effective  marketing  strategy  by
developing a public  relations  campaign to take advantage of the  opportunities
that  are  being   presented  in  the  technology   industry  with  emphasis  on
Internet-related  businesses.  The Company plans to prepare  detailed  marketing
material, and intends to step-up its marketing activities in 2000 to solicit new
business.

Operating Results
As a result of the  foregoing,  the  Company  incurred  losses  from  continuing
operations  of  $33,433  (CDN) and  $84,875  (CDN) for the three  months and six
months  ended June 30,  2000,  respectively,  as  compared to losses of $134,167
(CDN) and $259,099 (CDN) for the corresponding periods in 1999.

The decrease  between years,  for the second  quarter,  in general and corporate
expenses is  primarily  due to expenses for  consulting  fees related to project
management  of $126,094  (CDN) and  research  and  development  costs of $26,012
(CDN).

The majority of the losses  incurred by the Company during this quarter were the
result of the on-going efforts of the Company's  subsidiary Softguard to advance
the development of its software security and document  authentication  programs.
Management believes that by substantially  reducing the corporate overhead costs
the  Company  will be able to  provide  additional  cash flow for the  Company's
growth phase.

Softguard is currently  finalizing a business  alliance with a highly  reputable
Montreal-based  information  technology  solution  provider  specializing in the
field of security.  Established in 1988, this firm has an excellent track record
and well  established  client  base that  consists of major  organizations  in a
multitude of  industries.  The objective of this  arrangement is to complete the
development  activities and customize  Softguard's Quorum product to fulfil each
of  their  client's  specific  requirements.  As a result  of this  association,
Softguard's  research and development staff has been relocated to their premises
where their personnel will oversee the project  management and provide necessary
leadership and technical expertise.

Liquidity and Capital Resources
The  Company  is  currently  in  negotiations  with a major  investor  to  raise
additional  equity  financing  capital  to meet its short and  long-term  growth
objectives,   including  the  acquisition  of  potentially   favorable  business
opportunities.  Although  there can be no  assurance  that the  Company  will be
successful  in its  endeavors,  management  is also seeking  additional  capital
investment   through   other  sources  to  fulfill   research  and   development
requirements.

The significant  reduction in scientific  research and experimental  development
grants has made a  substantial  impact on the Company's  cash flow.  Softguard's
eligibility  status to qualify  for these  investment  tax  credits  has changed
because it is no longer a Canadian  controlled  corporation.  In  addition,  the
reduction of research and development  staff was a result of Softguard  focusing
efforts on the final development stage of the SLNS product.  The majority of the
development of the Quorum product was put on hold until more outside  funding is
available.



                                        5

<PAGE>



Marketing Plan
The Company intends to implement a cost-effective  marketing  strategy through a
process of  developing  a public  relations  campaign to take  advantage  of the
opportunities that are being presented in the technology  industry with emphasis
on Internet-related  businesses. The Company plans to prepare detailed marketing
material, and intends to step-up its marketing activities in 2000 to solicit new
business.

Conclusion
Management's  goals are to increase  revenues and shareholder  value through the
acquisition  of potentially  favorable  business  opportunities.  To realize its
business  plan,  QTTM will need to obtain  additional  capital  through  private
placements or other financing to pursue  acquisitions  in the technology  sector
and increase  sales that will permit the Company to satisfy its working  capital
requirements and to continue as a going concern.

The market for the Company's Internet products is highly  competitive,  and QTTM
expects to encounter an increase in  competition.  More and more  companies  are
turning  their  interests  and  resources  towards  security  issues  since  the
resolution  of the Y2K problem.  It is likely that the  competing  entities will
have  significantly  greater  experience,  resources,  facilities,  contacts and
managerial  expertise  and as a  result  will be in a better  position  than the
Company to obtain  access and engage in the proposed  business.  The Company may
not be in a position  to compete  with  larger  and more  experienced  entities.
Consequently,  business  opportunities  in  which  the  Company  may  ultimately
participate are likely to be very risky and extremely  speculative.  Many of the
Company's  competitors  have  significantly  greater  research and  development,
marketing  and  financial   resources  and  therefore,   represent   substantial
competition.


                                   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, thereunto duly authorized.

                             QUANTITATIVE METHODS CORPORATION



Dated:   August 21, 2000     By:    \s\ Robert L. Seaman
                                 --------------------------------------------
                                    ROBERT L. SEAMAN, President and Director



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