<PAGE>

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

                                  FORM 10-QSB

[X]      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934 for the quarterly period ended June 30, 2001.

[ ]      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934 for the transition period from _______ to _______.

                        Commission File No. 33-55254-39

                          SKYNET TELEMATICS.COM, INC.
       (Exact name of Small Business Issuer as specified in its charter)


                   NEVADA                                 87-0485315
      ------------------------------------------------------------------
      (State or other jurisdiction of                  (I.R.S. Employer
       incorporation or organization)                Identification No.)


                           Link House, 259 City Road
                            London, England EC1V 1JE
                            ------------------------
                    (Address of principal executive offices)

        Issuer's telephone number, including area code: 44 207 490 7900

Check whether the issuer: (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act 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.

                                 Yes  X   No
                                     ---     ---

The number of shares outstanding of the issuer's common stock, $.001 par value,
per share, as of July 24, 2001, was 33,680,035 shares.


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


<PAGE>

                          SKYNET TELEMATICS.COM, INC.

                         FORM 10-QSB FOR QUARTER ENDED
                                 JUNE 30, 2001

                                     INDEX

<TABLE>
<CAPTION>

PART I - FINANCIAL INFORMATION                                                            Page
                                                                                          ----
<S>                                                                                       <C>
           Item 1     Financial Statements

           Balance Sheet as of June 30, 2001                                                 3

           Statement of Operations for the three months and six months
                      ended June 30, 2001 and 2000                                           4

           Statement of Cash Flows for the six months ended
                      June 30, 2001 and 2000                                                 5

           Notes to Financial Statements                                                     6

           Item 2     Management's Discussion and Analysis                                   7

PART II - OTHER INFORMATION

           Item 1     Legal Proceedings                                                     12

           Item 2     Changes in Securities                                                 12

           Item 3     Defaults Upon Senior Securities                                       12

           Item 4     Submission of Matters to a Vote of Security Holders                   12

           Item 5     Other Information                                                     12

           Item 6     Exhibits and Reports on Form 8-K                                      12

SIGNATURES                                                                                  13

</TABLE>


                                      -2-

<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS (UNAUDITED)

                  SKYNET TELEMATICS.COM, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET
                                 JUNE 30, 2001

<TABLE>
<S>                                                                            <C>
                                     ASSETS

CURRENT ASSETS
Cash in bank                                                                    $     28,827
Accounts receivable                                                                  151,330
Inventory                                                                            337,474
Prepaid expenses and other current assets                                            274,781
                                                                                ------------

           TOTAL CURRENT ASSETS                                                      792,412

Furniture and equipment                                                              346,047
Software and intellectual property                                                 2,283,489
                                                                                ------------

           TOTAL ASSETS                                                         $  3,421,948
                                                                                ============

                       LIABILITIES & SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Bank overdraft                                                                  $    152,050
Accounts payable and accrued expenses                                              2,774,512
Capitalized lease obligations                                                          5,537
Notes payable                                                                        440,845
                                                                                ------------

           TOTAL CURRENT LIABILITIES                                               3,372,944

Loans payable                                                                         33,453
                                                                                ------------

           TOTAL LIABILITIES                                                       3,406,397
                                                                                ------------

STOCKHOLDERS' EQUITY
Preferred stock - $.001 par value; authorized: 20,000,000 shares;
issued and outstanding: none
Common stock -     $.001 par value; authorized: 75,000,000 shares;
issued and outstanding: 33,500,818 shares                                             33,501
Additional paid-in capital                                                        16,921,369
Deficit                                                                          (16,947,630)
Accumulated other comprehensive income                                                 8,311
                                                                                ------------

           TOTAL STOCKHOLDERS' EQUITY                                                 15,551
                                                                                ------------

           TOTAL LIABILITIES AND
                 SHAREHOLDERS' EQUITY                                           $  3,421,948
                                                                                ============

</TABLE>


                 See notes to consolidated financial statements

                                      -3-

<PAGE>

                  SKYNET TELEMATICS.COM, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>

                                                   For the three months                   For the six months
                                                      ended June 30,                        ended June 30,
                                              -------------------------------       -------------------------------
                                                  2001               2000               2001               2000
                                              ------------       ------------       ------------       ------------
<S>                                          <C>                <C>                <C>                <C>
Sales                                         $     84,710       $    281,422       $    173,757       $    561,984
Cost of sales                                     (209,471)          (607,059)          (416,607)        (1,080,424)
                                              ------------       ------------       ------------       ------------

          GROSS LOSS                              (124,761)          (325,637)          (242,850)          (518,440)

Depreciation and amortization                     (407,608)          (481,077)          (836,482)          (950,851)
Research and development                           (46,079)           (75,541)           (85,720)          (148,804)
General and administrative expenses               (617,048)          (770,895)        (1,349,062)        (1,414,416)
Interest expense - net                              (5,031)            (6,530)            (8,567)           (18,481)
Settlement of liabilities                             --              (24,606)            50,787           (118,241)
                                              ------------       ------------       ------------       ------------

NET LOSS                                        (1,200,527)        (1,684,286)        (2,471,894)        (3,169,233)

Foreign currency translation adjustments             4,778            (35,876)           (54,500)           (27,044)
                                              ------------       ------------       ------------       ------------

          TOTAL COMPREHENSIVE LOSS            $ (1,195,749)      $ (1,720,162)      $ (2,526,394)      $ (3,196,277)
                                              ============       ============       ============       ============

Basic net loss per common share               $       (.04)      $       (.06)      $       (.08)      $       (.12)
                                              ============       ============       ============       ============

Weighted average number of common shares        33,287,334         26,993,790         32,391,858         26,175,951
                                              ============       ============       ============       ============

</TABLE>


                 See notes to consolidated financial statements

                                      -4-

<PAGE>

                  SKYNET TELEMATICS.COM, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>

                                                              For the six months,
                                                                 Ended June 30,
                                                         -----------------------------
                                                            2001              2000
                                                         -----------       -----------
<S>                                                     <C>               <C>
OPERATING ACTIVITIES
Net loss                                                 $(2,471,894)      $(3,169,233)
Adjustments to reconcile net loss to cash
used in operating activities
Depreciation and amortization                                834,226           938,265
Settlement of liabilities                                    (50,787)          118,241
Stock issued for expenses                                     79,500            93,378
Minority interests                                            (8,460)             --
Other                                                         17,350            19,389
Changes in assets and liabilities:
          Accounts receivable                                (31,116)          (56,419)
          Inventory                                          (88,371)         (196,342)
          Prepaid expenses and other current assets           43,528          (559,806)
          Deferred expenses                                     --              47,762
          Accounts payable and accrued expenses              375,495           439,752
                                                         -----------       -----------

NET CASH USED IN OPERATING ACTIVITIES                     (1,300,529)       (2,325,013)

INVESTING ACTIVITIES
Proceeds from sale of fixed assets                             7,450            30,799
Purchases of fixed assets                                     (4,963)          (53,562)
                                                         -----------       -----------

NET CASH USED IN INVESTING ACTIVITIES                          2,487           (22,763)
                                                         -----------       -----------

FINANCING ACTIVITIES
Proceeds from sales of common stock                          497,086         2,860,347
Proceeds from sales of minority interests                      8,460              --
Proceeds from notes payable                                  396,668              --
Increase in bank overdraft                                   152,050           (66,608)
Payments of capitalized lease obligations                    (40,388)          (47,647)
Payments of note payable                                        --             (41,610)
                                                         -----------       -----------

NET CASH PROVIDED BY FINANCING ACTIVITIES                  1,013,876         2,704,482
                                                         -----------       -----------

EFFECT OF FOREIGN CURRENCY ADJUSTMENTS                       111,797           (27,044)
                                                         -----------       -----------

INCREASE IN CASH                                            (172,369)          329,662

CASH - beginning of Year                                     201,196                 0
                                                         -----------       -----------

CASH - end of Period                                     $    28,827       $   329,662
                                                         ===========       ===========

</TABLE>


                 See notes to consolidated financial statements

                                      -5-

<PAGE>

                  SKYNET TELEMATICS.COM, INC. AND SUBSIDIARIES

                         NOTES TO FINANCIAL STATEMENTS
                                  (UNAUDITED)

1.       NATURE OF OPERATIONS

Skynet Telematics.com, Inc. and Subsidiaries (Company) develop, market, license,
and monitor tracking and anti-theft systems for automobiles and trucks.

2.       BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by annual financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered necessary
for a fair presentation of the financial statements have been included.

These unaudited consolidated financial statements should be read in conjunction
with the audited consolidated financial statements and footnotes thereto,
included in Form 10-KSB of Skynet Telematics.com Inc. and Subsidiaries, as of
and for the year ended December 31, 2000, as filed with the Securities and
Exchange Commission. The results of operations for the three and six months
ended June 30, 2001 are not necessarily indicative of the results to be expected
for the full year.

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

3.       NET LOSS PER SHARE

Basic net loss per share was computed based upon the weighted average number of
common shares outstanding during the year. Dilutive net loss per common share
has not been presented because it was anti-dilutive.

4.       MINORITY INTERESTS

In April 2001, a subsidiary sold 60,000 shares of its common stock and options
to purchase an additional 60,000 shares of its common stock for an aggregate of
$8,460. The options are exercisable through March 2003.

5.       LOANS FROM SUPPLIER

On May 1, 2001, a subsidiary borrowed $254,819 from a supplier repayable by
October 31, 2001, with interest at 8% per annum, and an officer of the Company
has guaranteed 50% of the loan. In July 2001, the Company borrowed an additional
$84,940 from the supplier, without interest and repayable on demand.

In addition, in June 2001, another subsidiary borrowed $84,940 from the
supplier, without interest and repayable on demand.


                                      -6-

<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS

OVERVIEW

The business of the Company and its subsidiaries is the development, marketing,
and distribution of integrated modular automotive telematic systems, with
extensive range of sensors and providing of monitoring services to users of
those products. Through its subsidiary, Skynet Telmatics, Ltd., the Company
distributes its own proprietary products and products developed and manufactured
by third parties, generally ComROAD AG (ComROAD) in a number of countries around
the world. Skynet entered into a written distribution agreement with ComROAD in
March 1999. Skynet develops its own software and hardware solutions to provide
for customer specific requirements. These development projects are either
patented or are registered as intellectual property and add significant value to
the project. Automotive telematic systems combine the technology for mobile
phones (GSM), global positioning satellite systems (GPS) and the Internet, to
enable customers to identify the exact location and status information about
automotive vehicles and to receive a variety of information through
communication with the monitoring station. These devices can be used by
businesses to manage fleets of vehicles of various kinds and by individuals for
their automobiles for security purposes, emergencies and access to information
available from the monitoring station. These devices are available with in-car
vehicle computers operating with Windows CE that provide the user with an array
of usage options as are found on a personal digital assistant (PDA), including
internet connections and e-mail capabilities.

Telematics enables the remote access of information, status reporting and alarm
from vehicles and personnel in-vehicle. Remote access can be to either of
Skynet's Monitoring Service Centres or directly to a designated personal
computer. Skynet are able to connect up to 32 electronic/analogue inputs and
outputs, thereby enabling the collection and report of a vast amount of real
time data from vehicles, equipment and personnel. Geo-fencing and tilt and
motion/crash sensors warn the Monitoring Service Centre and/or remote location,
about accidents, attacks and thefts in real time. In addition, hands free GSM
communication allows safe conduct of business when travelling.

Skynet uses the ComROAD Telematic device in most of their GPS (position locating
satellite), GSM (mobile phone technologies) and Inmarsat (low-level satellite)
applications. Skynet's sensors, interfaces, training and service provision makes
the ComROAD device consumer friendly.

The Telematics industry worldwide has been slow to achieve a high level of
consumer acceptance.

Skynet Telematics.com Inc and Solutions Direct Limited provide full Telematic
in-vehicle support on a real time basis, for Close Personal Protection and
Security of customers and clients on a worldwide basis. With increasing concerns
about terrorism and protection of employees and their families in
areas/countries of high risk, in-vehicle Telematics with emergency call buttons,
silent dial-in facilities, immobilisation and 24-hour monitoring, allows
emergency incidents to be monitored from a remote location such as a Skynet
monitoring station or a customer's personal computer. Combining the technologies
of GPS (Global Positioning Satellite), GSM (mobile phone), Inmarsat (low level
satellite system) and Telematics, Skynet Telematics.Com Inc and Solutions Direct
Ltd are able to provide Close Personal Protection even in remote and dangerous
areas. In the event of terrorist attacks on vehicles, the driver is given
precise turn-by-turn instructions from Skynet's Monitoring Service Centre in
London or Slovakia, so that the vehicle and occupants can quickly re-locate to a
safe haven. Local security and emergency services can also be involved, if
required.

In volatile and high-risk areas, alarm calls will trigger the immediate despatch
of Intervention and Specialist Recovery Teams, who will be directed to the exact
location of the incident by Skynet's Monitoring Service Station in London or
Slovakia. In GSM coverage areas, hands free communication with the vehicle
enables occupants of vehicles under threat, or attack, to keep in constant
contact with rescuers. In remote areas this is possible through text message
communication.


                                      -7-

<PAGE>

                             RESULTS OF OPERATIONS

                       CONSOLIDATED RESULT OF OPERATIONS

<TABLE>
<CAPTION>

                                                       Six months ended
                                                           June 30,
                                   ------------------------------------------------------------
                                      2001              2000             CHANGE            %
                                   -----------       -----------       -----------       ------
<S>                               <C>               <C>               <C>                <C>
NET SALES                          $   173,757       $   561,984       $  (388,227)       (69%)

COST OF SALES                         (416,607)       (1,080,424)          663,817        (61%)

GROSS LOSS                            (242,850)         (518,440)          275,590        (53%)

DEPRECIATION AND AMORTIZATION         (836,482)         (950,851)          114,369        (12%)

RESEARCH AND DEVELOPMENT               (85,720)         (148,804)           63,084        (42%)

GENERAL AND ADMINISTRATIVE          (1,349,062)       (1,414,416)           65,354         (5%)

INTEREST EXPENSE-NET                    (8,567)          (18,481)            9,914        (54%)

SETTLEMENT OF LIABILITIES               50,787          (118,241)          169,028       (143%)

NET LOSS                            (2,471,894)       (3,169,233)          697,339        (22%)

</TABLE>

<TABLE>
<CAPTION>

                                                       Three months ended
                                                            June 30,
                                   ------------------------------------------------------------
                                      2001              2000             CHANGE            %
                                   -----------       -----------       -----------       ------
<S>                               <C>               <C>               <C>                <C>
NET SALES                          $    84,710       $   281,422       $  (196,712)       (70%)

COST OF SALES                         (209,471)         (607,059)          397,588        (65%)

GROSS LOSS                            (124,761)         (325,637)          200,876        (62%)

DEPRECIATION AND AMORTIZATION         (407,608)         (481,077)           73,469        (15%)

RESEARCH AND DEVELOPMENT               (46,079)          (75,541)           29,462        (39%)

GENERAL AND ADMINISTRATIVE            (617,048)         (770,895)          153,847        (20%)

INTEREST EXPENSE-NET                    (5,031)           (6,530)            1,499        (23%)

SETTLEMENT OF LIABILITIES                    0           (24,606)              N/A        N/A

NET LOSS                            (1,200,527)       (1,684,286)          483,759        (29%)

</TABLE>

The above tables represent an analysis of the increases and decreases of the
components of consolidated results of operations as derived from the Company's
consolidated statement of operations for the six and three months ended June 30,
2001 and 2000. In general, 2001 is not comparable to 2000 because the Company
has been in an early growth stage, heavily involved in product development and
organization of monitoring services. Only recently has the Company begun a
greater effort to market the Company's products.


                                      -8-

<PAGE>

Net Sales

Sales have been disappointing in the first half of 2001, due mainly to changes
in Telematic consumer requirements and demands. However, now with a much
improved product, further enhanced by a range of sensors developed by the
Company, and with a greater understanding of the market place, management
believes that sales in the second half of the year will increase.

The Slovakian Monitoring Service Station is now fully operational and sales are
expected to be generated by the Slovakian Company in Eastern Europe during the
second half of 2001.


                                      -9-

<PAGE>

Cost of Sales

Although cost of sales has decreased in 2001, the gross profit percentage is not
indicative of what it will be at higher sales levels. Purchases and salaries are
the largest components of cost of sales.

Depreciation and Amortization

Depreciation and amortization has decreased in 2001 primarily due to a fall in
capital expenditure as the Company had a reduced requirement for additional
fixed assets.

Research and Development

Research and development has decreased and is expected to remain fairly constant
as cutting edge technological solutions are designed to meet specific customer
requirements. Telematics systems require software and hardware development to
ensure full customer utilization and demand. In the same way that computers will
not function without software, Telematics requires software, hardware, sensors,
looms and monitoring service center development.

General and Administrative Expenses

General and administrative expenses decreased in 2001 resulting from the
Company's program to keep expenses as low as possible. Salaries, professional
fees and telephone costs are the most significant components of general and
administrative.

Interest Expense

Interest expense decreased in 2001 as the Company repaid certain financings.

Settlements of Liabilities

Settlements of liabilities in 2001 include continued settlements with certain of
the former shareholders of SSCC.

Net Loss

Consolidated net loss has decreased due to the nature of the Company's plan of
operations. The Company anticipates reaching profitability by the end of 2001.


                                      -10-

<PAGE>

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

During the six months ended June 30, 2001, the Company raised $497,086, net of
expenses, as compared to $2,860,347 during the first half of 2000, from private
sales of shares of its common stock, which have been the Company's primary
source of the Company's funding of operations for the Company and its
subsidiaries. The Company does not have any significant capital commitments;
however, it is committed to maintain the infrastructure it has developed, the
expenses of which consist primarily of wages and salaries of Skynet personnel.
For the six months ended June 30, 2001, the Company's operating activities used
cash of $1,300,529 as compared to $2,325,013 in 2000.

The Company believes it has built an infrastructure sufficient to support a
substantial increase in the size of the operations of the Company and its
subsidiaries over the next few years and intends to focus its efforts on revenue
growth. Skynet intends to substantially increase its marketing and distribution
efforts over the next year, and will focus its marketing efforts primarily on
the distribution of the ComROAD Skamp range of products. Such activities will
require additional funds either in the form of additional capital or financing
to permit Skynet to purchase the products from ComROAD that it in turn sells to
others. There can be no assurance that the Company and its subsidiaries will be
able to obtain the capital or financing they need to implement their growth
strategy.

At the present time, the Company's consolidated revenues cannot support the
expenses of the operations of the Company and its subsidiaries. The Company
intends to raise additional capital to fund such operations until its
consolidated revenues are sufficient to support all of the costs and expenses of
its operations. The Company will remain dependent upon infusions of capital from
investors and/or loans from its shareholders until such time. There can be no
assurance that the Company can continue to raise capital from the sale of its
securities.

         We are experiencing liquidity difficulties. As of June 30, 2001, we had
a working capital deficit of approximately $2,584,000 and available cash of
approximately $29,000. [Our current liabilities at June 30, 2001 include
accounts payable and accrued expenses of approximately $2,774,512. Our accounts
payable include approximately $1,488,000, which has been in dispute for over 18
months and as to which there have been no active collection efforts during the
last year.] We have settled some of our obligations by issuing shares of common
stock.

         In May of 2001 we borrowed approximately $255,000 from ComROAD A.G, our
principal supplier. The loan bears interest at 8% per annum and is payable on
October 31, 2001. Tomas Wilmot, Chairman of our Board of Directors, has
personally guaranteed payment of 50% of this loan. In June 2001, ComROAD
advanced approximately $85,000 to our Skynet subsidiary. Those advances, which
do not bear interest, are repayable on demand. As of August 15, 2001, we owed
ComROAD approximately $217,000 under invoices. ComROAD has expressed an interest
in providing us with equity financing of $500,000 if we are able to obtain an
additional $500,000 from another source and we pay at least 50% of the
approximately $217,000 in overdue invoices to ComROAD and agree to pay the
remaining balance under a payment plan acceptable to ComROAD. Under the terms of
the proposed ComROAD equity financing, ComROAD and the other investor(s) would
purchase shares of our common stock at a purchase price of $0.25 per share and
our existing $300,000 indebtedness to ComROAD would be converted into shares of
our common stock at a conversion price of $0.25 per share. The proposed ComROAD
equity financing is subject to the negotiation of definitive financing
documentation. We cannot guarantee that ComROAD will provide us with additional
financing on these or any other terms acceptable to us. If we are unable to
obtain additional financing, we may have to curtail or suspend operations. We
have and plan to continue to sell shares of our common stock to offshore
investors to provide working capital. Sale of our equity securities will result
in dilution to our shareholders.

FORWARD LOOKING INFORMATION

This Form 10-QSB contains forward looking statements regarding the Company's
business strategy and future plans of operation. Forward looking statements
involve known and unknown risks and uncertainties. These and other important
factors, including those mentioned in various filings with the Securities and
Exchange Commission made periodically by the Company and in various press
releases of the Company, may cause the actual results and performance to differ
materially from the future results expressed in or implied by such forward
looking statements. The forward looking statements contained herein are only as
of the date hereof and the Company disclaims any obligation to provide public
updates, revisions or amendments to any forward looking statements made herein
to reflect changes in the Company's expectations or future events.


                                      -11-

<PAGE>

                                    PART II

                               Other Information

Item 1.  Legal proceedings: None

Item 2.  Changes in Securities: Sales of Securities to offshore investors

During the second quarter of 2001, the Company sold 425,144 shares of common
stock at prices between $0.115 and $0.693 per share, for aggregate proceeds of
$68,597, net of commissions of $12,687. These shares were sold to a total of 12
non U.S. persons, pursuant to Regulation S under the Securities Act of 1933.

During the second quarter of 2001, the Company issued 28,000 shares of common
stock at $0.50 per share, in payment of expenses of $14,000, to a non U.S.
person, pursuant to Regulation S under the Securities Act of 1933.

During the second quarter of 2001, the Company issued 100,000 shares of common
stock at $0.50 per share, in payment of expenses totaling $50,000. The sale of
these shares was exempt from the registration requirements of the Securities Act
of 1933 under Section 4(2) thereof.

There were no underwriters for any of the above offerings.

Item 3.  Defaults Upon Senior Securities: None

Item 4.  Submission of Matters to a Vote of Security Holders: None

Item 5.  Other Information: None

Item 6.  Exhibits and Reports on Form 8-K

           (a) Exhibits: Exhibit 15 - Letter on unaudited financial information

           (b) Reports on Form 8-K: None


                                      -12-

<PAGE>

                                   SIGNATURES

In accordance with the requirements of the Securities and Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.

                                             Skynet Telematics.com, Inc.

Dated:   August 10, 2001                     By: /s/ Tomas George Wilmot
         ---------------                         -------------------------------
                                                 Tomas George Wilmot, President


                                      -13-