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

                            FORM 10-KSB

[x]  ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
           For the fiscal year ended September 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 number   333-64420
                                             ------------

                       Scientio, Inc.
       ----------------------------------------------
       (Name of small business issuer in its charter)

            Delaware                      11-3581664
-------------------------------         -------------------
(State or other jurisdiction of         (I.R.S. Employer
incorporation or organization)          Identification No.)

    P. O Box 940007, Belle Harbor, NY            11694-0007
----------------------------------------         -----------
(Address of principal executive offices)         (Zip Code)

Issuer's telephone number   (718) 318-0994
                            --------------
Securities registered under Section 12(b) of the Exchange Act:

   Title of each class                  Name of each exchange on
                                        which registered

--------------------------              ------------------------

--------------------------              ------------------------


Securities registered under Section 12(g) of the Exchange Act:


      ----------------------------------------------------------
                         (Title of class)


      ----------------------------------------------------------
                         (Title of class)

Check whether the issuer (1) 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

Check if there is no disclosure of delinquent filers in response
to Item 405 of Regulation S-B is not contained in this form, and
no disclosure will be contained, to the best of registrant's
knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB [ ]






State issuer's revenues for its most recent fiscal year    -0-
                                                       ----------

State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the
price at which the common equity was sold, or the average bid and
asked price of such common equity, as of a specified date within
the past 60 days.  (see definition of affiliate in Rule 12b-2 of
the Exchange Act.)   NONE

Note:  If determining whether a person is an affiliate will
involve an unreasonable effort and expense, the issuer may
calculate the aggregate market value of the common equity held by
non-affiliates on the basis of reasonable assumptions, if the
assumptions are stated.

       (ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
              DURING THE PAST FIVE YEARS)

Check whether the issuer has filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Exchange
Act after the distribution of securities under a plan confirmed
by a court [ ] Yes [ ]  No

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable
date.     2,015,000 shares of common stock, par value $.001
        ----------------------------------------------------

DOCUMENTS INCORPORATED BY REFERENCE

If the following documents are incorporated by reference, briefly
describe them and identify the part of the Form  10-KSB (e.g.,
Part I, Part II, etc.) into which the document is incorporated:
(1) any annual report to security holders; (2) any proxy or
information statement; and (3) any prospectus filed pursuant to
Rule 424(b) or (c) of the Securities Act of 1933 ("Securities
Act").  The listed documents should be clearly described for
identification purposes (e.g. annual report to security holders
for fiscal year ended December 24, 1990).

      Registration statement declared effective on September 24,
2001

Transitional Small business Disclosure Format (Check one)
Yes    , No  x
    ---     ---




                         SCIENTIO, INC.

                            Part 1


Item 1. Business.

     Scientio, Inc. ("The Registrant") was incorporated in the
State of Delaware on December 11, 2000. It is engaged in the
development, marketing and support of software components that
can be used to analyze data (data mining) flowing in the XML
(extensible markup language) protocol between computers over the
internet or intranets. The Registrant has not yet generated any
sales to date.

     The Registrant has completed development and is offering for
sale its first datamining software product, the XML Miner package
version 1.0. the package contains three components, XML Miner,
XML Rule and Strucfind. Also being worked on is an XML Rule
package which will contain two components, XML Rule and a Rule
Editor. The targeted customers are software developers.

     While the XML Miner Package has been installed and running
on the Registrant's web site, offering online demonstrations of
its performance in two distinct application areas, it has not yet
sold any units of XML Miner or the XML Miner Package nor has the
Registrant's technology been installed to date by any business
and no assurance can be given that its technology will work in an
operational setting. To date, the Registrant has not entered into
any joint venture or general consultancy agreements nor licensed
any of its technology to software development companies.

     On December 8, 2000, Modern Technology Corp ("Modern")
entered into an agreement with Andrew Edmonds, President and
Anneke Edmonds, principal shareholder, to form Scientio. Modern
Agreed to purchase 403,000 shares of Scientio, representing 20%
of the outstanding shares, for an investment of $188,500 and an
additional investment of up to $50,000 to cover the costs of
registering those shares and distributing them to shareholders of
Modern.

     A registration statement for the 403,000 shares owned by
Modern Technology Corp was filed with the Securities and Exchange
Commission. On September 24, 2001, the registration statement was
declared effective. During the first week of October 2001, the
403,000 shares were distributed to Modern's shareholders. For
more information about the business of the Registrant, reference
is made to Registration Statement  #333-64420 which is herein
incorporated by reference.

Item 2. Property

     As of September 30, 2001, the Registrant owned no property.
The Registrant office in the U.S.A. is located in the office of
Modern, an affiliated company for which it pays no rent. The
Registrant is paying rent monthly of about $1,700 (1,200 british
pounds) to Anneke Edmonds, treasurer and director for use of two
rooms (about 300 square feet) in Mrs. Edmond's home under an oral
agreement on a month by month basis. Included in the rental are
monthly payments for telephone, utilities and the use of
equipment, computers and software owned by Andrew and Anneke
Edmonds. Management believes the amount payment is equivalent to
or less than current market rental rates.

Item 3. Legal Proceedings

     None.

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

     None.

PART II

Item 5. Market for  Common Equity and Related Stockholders
Matters.

     On December 12, 2001 there was no market for the shares of
the Registrant, nor is there any pink sheet or bulletin board
market maker for the Registrant's common stock.

     Number of shareholders of record on December 12, 2001 was
approximately 380.

     Dividends - the Registrant has not paid any dividends since
its inception and presently anticipates that all earnings, if
any, will be retained for development and expansion of the
Registrant's business and that no dividends on the common stock
will be declared in the foreseeable future.

Item 6. Management's Discussion and Analysis or Plan of
Operations.

     The Registrant is in the development stage, not yet
generating revenues. Over the next twelve months, the Registrant
does not anticipate the purchase of any significant amount of
plant or equipment and does not anticipate any significant
changes in the number of company employees (presently there are 3
employees).

      During the period from inception (December 11, 2000) to
September 30, 2001, the Registrant had a net loss of $134,167.
The loss is attributed to the following expenses: general and
administrative expenses of $33,664, officer's salary- president's
of $88,748 and professional fees (primarily legal and accounting)
of $11,317 and depreciation expense of $969 offset by interest
income of $531.

     As of September 30, 2001, the Registrant had total assets of
$106,136, consisting of cash and equivalents of $59,439, fixed
assets, consisting of equipment and software (net of accumulated
depreciation) of $6,007 and deferred registration costs of
$40,690. Total liabilities (accounts payable and accrued
expenses) amounted to $50. Shareholders equity at September 30,
2001 amounted to $106,086.

     The Registrant received its initial funding from Modern, one
of its principal shareholders. As of September 30, 2001, Modern
invested $188,500. Management believes these funds will be
sufficient to cover working capital needs through March 31, 2002.
The Registrant will need to raise an additional $50,000-$100,000
over the next 12 months. There are presently no commitments for
any additional financing.

Item 7. Financial Statements

     Attached.

Item 8. Changes In and Disagreements with Accountants on
        Accounting and Financial Disclosure.




     None.


                           PART III

Item 9. Directors, Executive Officers, Promoters and Control Persons

     The executive officers and directors of the Registrant are
as follows:

                    Age                         Term Expires
                    ---                         -------------------
Andrew Edmonds      45 President and Director   Next annual meeting
Anneke Edmonds      39 Treasurer and Director   Next annual meeting
Arthur Seidenfeld   50 Secretary and Director   Next annual meeting


      Andrew Edmonds, has been president of the Company since its
formation in December 2000. During the past ten years he has
acted as a director and chief technology officer of various
companies concerned with creating software making use of
artificial and computational intelligence. In 1987, he wrote his
first commercial software product, a neural network simulator
called Neurun. This was Britain's first Neural network product.
In 1989, he formed a new company called Neural Computer Sciences
and produced the first Windows based Neural network system in
1990. In 1993, he developed a product that dynamically created
financial trading systems called Darwin and thereafter his
company, Science in Finance developed products exclusively for
Transworld Oil, a Bermuda based futures trading company. He is
the author of a variety of published papers covering Neural
networks, genetic algorithms, Chaos theory, genetic programming
and Fuzzy logic, and their applications to biotechnology,
Financial time series prediction and other areas.

     From April 2000 to December 2000 he worked on consultancy
projects investigating a speaker verification system for e-
commerce applications. Dr. Edmonds received a PhD Degree from the
University of Luton in 1996 and in 2000 he became a member of the
British Computer Society.

Anneke Edmonds

     Mrs. Edmonds is the wife of Andrew Edmonds and for the past
five years has been assisting her husband in marketing activities
and in web site and graphic design. During 1990-1991 she was a
Marketing Manager for Amscan, Ltd. Mrs. Edmonds has a B.A. Degree
from Tulane University (1985) and is a member of the Chartered
Institute of Marketing.

Arthur Seidenfeld

     Mr. Seidenfeld is President and a Director of Modern
Technology Corp., a public financial consulting company, which
has invested in Scientio and has spun-off to its shareholders the
Scientio shares it owned. Mr. Seidenfeld was President of Davin
Enterprises, Inc., a "blind pool" from 1987 to 1998 when it
merged with Creative Masters, Inc. He is also President (since
1998) of Daine Industries, a "blind pool" which company
previously owned Lite King Corp., which merged with National
Cabling Service in 2000. He has a B.S. in Accounting from New
York University School of Commerce (1972) and an M.B.A. in
Finance from Pace University (1978).

Item 10. Executive Compensation

     The only officer entitled to compensation is Andrew Edmonds,
the President of the Registrant. Dr. Edmonds devotes his full
time to the business of the Registrant. Pursuant to the
shareholder's agreement of December 8, 2000 (signed with Modern
Technology Corp), Dr. Edmonds is to be paid a minimum salary of
$90,000 on or before December 8, 2001. Dr. Edmonds has agreed to
transfer to the Company all improvements of the Registrant's
products and any new software products he develops for a three
year period ending December 8, 2003. In the event this salary is
not paid to Dr. Edmonds, he will be free of the three year
restriction provided all shares issued to Mrs. Edmonds (owner of
1,591,850 shares of the Registrant, representing a 79% ownership
interest) are returned to the treasury of the Registrant.

     For the period from inception (December 11, 2000) to
September 30, 2001, Dr. Edmonds received $88,748 in officer's
salary. No other officers of the Registrant received any
compensation for the inception period to September 30, 2001.



Item 11. Security Ownership of Certain Beneficial
         Owners and Management.

a.  The following are known to the Registrant to be beneficial
    owners of 5% of more of the Registrant's common stock.

Title of Class
--------------
Common Stock

Name of Beneficial Owner    Amount & Nature of     Percentage
                            Beneficial Ownership   of Class
-------------------------   --------------------   -------------
Anneke Edmonds              1,591,850              79%
Arthur Seidenfeld             193,091               9.6%
Andrew Edmonds                    -0-               -0-





b.  The shares owned by management are as follows:

Anneke  Edmonds             1,591,850              79%
Arthur Seidenfeld             193,091               9.6%
Andrew Edmonds                    -0-               -0-

Item 12. Certain Relationships and Related Transactions.

    The Registrant's corporate office is in the facility of
Modern, an affiliated company for which no charge is imposed. The
Registrant is also using two rooms (about 300 square feet) in
Mrs. Edmond's  home and is paying a monthly rent of about $1,700
(1,200 British pounds) under an oral agreement on a month by
month basis. Included in the rental are monthly payments for
telephone, utilities and the use of equipment, computers and
software owned by Andrew and Anneke Edmonds. Management believes
the amount payment is equivalent to or less than current market
rental rates.

Item 13. Exhibits and Reports on Form 8-K

a)  Financial Statements and Financial Statement Schedules.

    Balance Sheet- September 30, 2001
    Statement of Shareholders' Equity for the period December 11, 2000
    (inception) to September 30, 2001
    Statement of Operations, Cumulative Amounts from December 11, 2000
    (Inception) to September 30, 2001
    Statement of Cash Flows, Cumulative Amounts from December 11, 2000
    (Inception) to September 30, 2001
    Notes to the Financial Statements, for the period December 11, 2000
    (inception) to September 30, 2001

b)  Schedules

    Other schedules not submitted are omitted, because the
    information is included elsewhere in the financial statements
    or the notes thereto, or the conditions requiring the filing
    of these schedules are not applicable.

    Supplemental information to be furnished with reports filed
    pursuant to Section 15 (d) of the Securities Act of 1934 by
    Registrant which have not registered securities pursuant to
    Section 12 of the Securities Act of 1934:

    a)  No annual report or proxy material has been sent to security holders.
    When such report or proxy materials are furnished to
securities holders subsequent to the filing of this report,
copies shall be furnished to the Commission when sent to
securities holders.

                              SIGNATURES


     In accordance with Section 13 or 15(d) of the Securities
Act, the Registrant caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.

                                          SCIENTIO, INC.
                                          --------------
                                          (Registrant)


                                          ---------------
                                          BY Andrew Edmonds
                                          President
                                          Dated: December 12, 2001


     In accordance with the Exchange Act, this report has been
signed below by the following persons on behalf of the Registrant
and in the capacities and on the date indicated.


                                           --------------------
                                           Andrew Edmonds
                                           President, Principal
                                           Executive Officer and Director
                                           December 12, 2001



                                           --------------------
                                           Anneke Edmonds
                                           Treasurer, Chief Financial
                                           Officer and Director
                                           December 12, 2001



                                           --------------------
                                           Arthur Seidenfeld
                                           Secretary and Director
                                           December, 12, 2001



















                            SCIENTIO, INC.

                         FINANCIAL STATEMENTS

                          SEPTEMBER 30, 2001











                             I N D E X





                                                         Page


REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS        1


BALANCE SHEET - ASSETS                                    2


BALANCE SHEET - LIABILITIES AND EQUITY                    3


STATEMENT OF OPERATIONS                                   4


STATEMENT OF SHAREHOLDERS' EQUITY                         5


STATEMENT OF CASH FLOWS                                   6


NOTES TO THE FINANCIAL STATEMENTS                       7 - 10











        REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


To the Shareholders and Board of Directors of
SCIENTIO, INC.


We have audited the accompanying balance sheets of SCIENTIO, INC.
(a development stage enterprise)  as of September 30, 2001 and the
related statement of operations, shareholders' equity and cash
flows for the period December 11, 2000 (inception) to September 30,
2001.  These financial statements are the responsibility of the
Company's management.  Our responsibility is to express an opinion
on these financial statements based upon our audit.

We conducted our audit in accordance with auditing standards
generally accepted in the United States of America.  Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements.  An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statements' presentation.  We believe that our audit
provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of
SCIENTIO, INC. (a development stage enterprise) as of September 30,
2001, and the results of its operations and its cash flows for the
period ended September 30, 2001, in conformity with accounting principles
generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming
that the Company will continue as a going concern.  As discussed in
Note 8 to the financial statements, the Company has incurred losses
and negative cash flows from operations from the period December
11, 2000 (inception) to September 30, 2001 that raise substantial
doubt about its ability to continue as a going concern.
Management's plans in regard to these matters are also described in
Note 8.  The financial statements do not include any adjustments
that might result from the outcome of this uncertainty.




                                          GREENBERG & COMPANY LLC

Springfield, New Jersey
November 21, 2001


                                                        Page 1 of 10


                            SCIENTIO, INC.
                 (A DEVELOPMENT STAGE ENTERPRISE)
                            BALANCE SHEET



                             A S S E T S



                                                 September 30,
                                                     2001

CURRENT ASSETS

  Cash and Cash Equivalents                        $ 59,439
                                                   --------
  TOTAL CURRENT ASSETS                               59,439
                                                   --------
FIXED ASSETS, At Cost

  Equipment                                           5,349
  Software                                            1,648
                                                   --------
                                                      6,997
  Less:  Accumulated Depreciation                      (990)
                                                   --------
  FIXED ASSETS, net                                   6,007
                                                   --------
OTHER ASSETS

  Deferred Registration Costs                        40,690
                                                   --------
  TOTAL OTHER ASSETS                                 40,690
                                                   --------
TOTAL ASSETS                                       $106,136
                                                   ========













See accompanying summary of accounting policies and notes to financial
statements.
                                                    Page 2 of 10


                          SCIENTIO, INC.
                          BALANCE SHEET
               (A DEVELOPMENT STAGE ENTERPRISE)



L I A B I L I T I E S   A N D   S H A R E H O L D E R S'   E Q U I T Y






                                                September 30,
                                                    2001
CURRENT LIABILITIES

Accounts Payable and Accrued Expenses            $     50
                                                 --------
TOTAL CURRENT LIABILITIES                              50
                                                 --------

SHAREHOLDERS' EQUITY

Common Stock - 30,000,000 Shares
 Authorized, 2,015,000 Issued &
 Outstanding Shares at $.001 Par Value              2,015
Paid In Capital                                   238,238
 (Deficit) Accumulated during the
 Development Stage                               (134,167)
                                                 --------
TOTAL SHAREHOLDERS' EQUITY                        106,086
                                                 --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       $106,136
                                                 ========




















See accompanying summary of accounting policies and notes to financial
statements.

                                                          Page 3 of 10


                          SCIENTIO, INC.
                (A DEVELOPMENT STAGE ENTERPRISE)
                     STATEMENT OF OPERATIONS


                                                           Cumulative
                                                          Amounts from
                                                           December 11,
                                                               2000
                                                         (Inception) to
                                                          September 30,
                                                               2001



Interest Income                                             $      531

General and Administrative Expenses                            (33,664)

Officer Salary                                                 (88,748)

Professional Fees                                              (11,317)

Depreciation                                                      (969)
                                                            ----------
INCOME (LOSS) BEFORE INCOME TAXES                             (134,167)

  Income Tax Expense (Benefit)                                     -0-
                                                            ----------
NET INCOME (LOSS)                                           $ (134,167)
                                                            ==========
Basic and Diluted Earnings (Loss) Per Share                 $     (.07)
                                                            ==========
Weighted Average Number of Shares of
 Common Stock Outstanding                                    2,015,000
                                                            ==========



















See accompanying summary of accounting policies and notes to financial
statements.

                                                         Page 4 of 10

                               SCIENTIO, INC.
                    (A DEVELOPMENT STAGE ENTERPRISE)
                   STATEMENT OF SHAREHOLDERS' EQUITY
  FOR THE PERIOD DECEMBER 11, 2000 (INCEPTION) TO SEPTEMBER 30, 2001


<TABLE>
<CAPTION>
                                                       (Deficit)
                          Common Stock                Accumulated                     Total
                     --------------------             During the                     Share-
                      Number      $.001    Paid-In    Development    Subscription   Holders
                     of Shares    Value    Capital       Stage        Receivable      Equity
                     ----------   -------  --------   -----------    ------------   --------
<S>                  <C>          <C>      <C>        <C>             <C>           <C>
Initial Investment
 in Common Stock
 at December 15,
 2000                  403,000    $  403   $188,097                   $(88,500)     $100,000

Stock issued for
 service at
 December 15,
 2000                   20,150        20      9,451                                    9,471

Stock issued for
 Software at
 December 15,
 2000                1,591,850     1,592                                               1,592

Payment on
 Subscription
 Receivable                                  40,690                     88,500       129,190

Net Income (Loss)
 for the period
 December 11,
 2000 (Inception)
 through Sept. 30,
 2001                                                  (134,167)                    (134,167)
                     ---------    ------   --------   ---------       --------      --------
BALANCES AT
 SEPT. 30, 2001      2,015,000    $2,015   $238,238   $(134,167)      $    -0-      $106,086
                     =========    ======   ========   =========       ========      ========

</TABLE>
















See accompanying summary of accounting policies and notes to financial
statements.

                                                          Page 5 of 10





                               SCIENTIO, INC.
                     (A DEVELOPMENT STAGE ENTERPRISE)
                          STATEMENT OF CASH FLOWS



                                                          Cumulative
                                                         Amounts from
                                                       December 11, 2000
                                                         (Inception) to
                                                       September 30, 2001

CASH FLOWS FROM OPERATING ACTIVITIES
 Net Income (Loss)                                        $(134,167)
 Adjustments to Reconcile Net Income (Loss)
 to Net Cash
 Provided by (Used In) Operating Activities:
  Depreciation                                                  969
  Stock Issued for Services                                   9,471
  Change in Assets and Liabilities:
 Increase (Decrease) in Accounts Payable                         50
                                                           --------
  Net Cash Provided by (Used In)
   Operating Activities                                    (123,677)
                                                           --------
CASH FLOWS FROM INVESTING ACTIVITIES
 Purchase of Equipment                                       (5,349)
                                                           --------
  Net Cash Provided By (Used In)
   Investing Activities                                      (5,349)
                                                           --------
CASH FLOWS FROM FINANCING ACTIVITIES
 Proceeds from Common Stock Issuance                        229,190
 (Increase) in Deferred Registration Costs                  (40,690)
                                                           --------
  Net Cash Provided By (Used In)
   Financing Activities                                     188,500
                                                           --------
  Effect of Exchange Rate Changes on Cash                       (35)
  Net Increase (Decrease) in Cash and
   Cash Equivalents                                          59,439
  Cash and Cash Equivalents at Beginning
   of Period                                                    -0-
                                                           --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                 $ 59,439
                                                           ========
Supplemental Disclosures of Cash Flow Information:
 Cash Paid During the Period For:
  Interest Expense                                         $    -0-
   Income Tax                                              $    -0-

Non Cash Investing and Financing Transactions:
  Stock Issued for Services                                $  9,471
  Stock Issued for Software                                $  1,592




See accompanying summary of accounting policies and notes to financial
statements.

                                                           Page 6 of 10


                            SCIENTIO, INC.
                 (A DEVELOPMENT STAGE ENTERPRISE)
                NOTES TO THE FINANCIAL STATEMENTS
  FOR THE PERIOD DECEMBER 11, 2000 (INCEPTION) TO SEPTEMBER 30, 2001


NOTE 1: ORGANIZATION AND NATURE OF OPERATIONS

        Scientio, Inc. (Scientio) is a Delaware corporation. Scientio
        is in the development stage and has not generated any
        revenue. Scientio's offices are located in the United Kingdom
        and the United States. Scientio's principal purpose was to
        acquire the ownership and commercialization rights to a line
        of software products developed by Andrew Edmonds and owned by
        Anneke Edmonds and designated "the family of XML products"
        defined as XML Miner, XML Rule and Strucfind. These products
        mine XML code to find relationships and predict values using
        fuzzy-logic rules, then apply them to web sites,
        applications, or anywhere that a COM control or Java bean can
        be used.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

        Currency Translation

        The Company's functional currency is the British pounds
        sterling in which revenue and expenses are generated. For
        reporting purposes, the reporting currency is the US Dollar.
        The translating functional currency statement into the
        reporting currency was performed in accordance with
        Statements of Financial Accounting Standards (SFAS) 52 and
        General Accepted Accounting Principles (GAAP).

        Cash and Cash Equivalents

        Cash equivalents consist of highly liquid, short-term
        investments with original maturities of 90 days or less.

        Property and Equipment, At Cost

        Depreciation is calculated using the straight line method
        over the asset's estimated useful life, which is 5 years for
        equipment and 3 years for software.

        Revenue Recognition Policy

        The company recognizes sales, for both financial statement
        purposes and for tax purposes, when the products are shipped
        to customers.









                                                       Page 7 of 10


                              SCIENTIO, INC.
                  (A DEVELOPMENT STAGE ENTERPRISE)
                  NOTES TO THE FINANCIAL STATEMENTS
   FOR THE PERIOD DECEMBER 11, 2000 (INCEPTION) TO SEPTEMBER 30, 2001
                             (Continued)

        Estimates in Financial Statements

        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 at the date of the
        financial statements and the reported amounts of revenues and
        expenses during the reporting period. Actual results could
        differ from those estimates.

        Income Taxes

        The Company accounts for income taxes in accordance with
        Statement of Financial Accounting Standards ("SFAS") No. 109,
        "Accounting for Income Taxes." SFAS 109 has as its basic
        objective the recognition of current and deferred income tax
        assets and liabilities based upon all events that have been
        recognized in the financial statements as measured by the
        provisions of the enacted tax laws.

        Valuation allowances are established when necessary to reduce
        deferred tax assets to the estimated amount to be realized.
        Income tax expense represents the tax payable for the current
        period and the change during the period in the deferred tax
        assets and liabilities.

NOTE 3: DEFERRED REGISTRATION COSTS

        For the period December 11, 2000 (inception) through
        September 30, 2001, the Company has incurred deferred
        registration costs of $40,690 relating to expenses incurred
        in connection with the Stock Distribution (see Note 9).  Upon
        consummation of this Stock  Distribution, the deferred
        registration costs will be charged to equity.

NOTE 4: OFFICER SALARY AND PROFESSIONAL FEES

        The Company has an agreement with its president to complete
        and maintain the company's product. In this agreement, the
        Company agrees to pay the officer at least $90,000 per annum.
        The officer has received $88,748 for the period December 11,
        2000 (inception) to September 30, 2001.

NOTE 5: STOCK BASED COMPENSATION

        The person who performed services in relation to the
        formation of the corporation received 20,150 common shares
        approximating the fair market value of $9,471. This amount
        was charged to professional fees during the period ended
        September 30, 2001.  This stock based compensation plan is
        accounted for in accordance with SFAS No. 123.


                                                    Page 8 of 10


                           SCIENTIO, INC.
               (A DEVELOPMENT STAGE ENTERPRISE)
               NOTES TO THE FINANCIAL STATEMENTS
  FOR THE PERIOD DECEMBER 11, 2000 (INCEPTION) TO SEPTEMBER 30, 2001
                            (Continued)


NOTE 6: TRANSFERS OF NONMONETARY ASSETS BY SHAREHOLDERS

        According to the Securities and Exchange Commission's Staff
        Accounting Bulleting 48, when the company acquires assets
        from shareholders in exchange for stock just prior to its
        first public offering, the assets should generally be
        recorded at cost to the shareholder. On December 15, 2000,
        the company acquired software from a shareholder and recorded
        the software at a cost of $1,592 (the cost to the
        shareholder).

NOTE 7: INCOME TAXES

        Income taxes are accrued at the statutory U.S. and state
        income tax rates.

        Income tax expense is as follows:                 9/30/01

        Current tax expense (benefit):
         Income tax at statutory rates                    $   -0-
        Deferred tax expense (benefit):
         Operating Loss Carryforward                      (35,575)
                                                          -------
                                                          (35,575)
        Valuation allowance                               (35,575)
                                                          -------
        Total Tax Expense (Benefit)                       $   -0-
                                                          =======

        Deferred tax assets:
         NOL                                              $35,575
         Valuation allowance                              (35,575)
                                                          -------
        Net deferred tax assets                           $   -0-
                                                          =======

        The Company has net operating loss (NOL) carryforwards for
        income tax purposes of approximately $134,000. This loss is
        allowed to be offset against future income until the year
        2022 when the NOL's will expire.

        The loss has been fully reserved for in the valuation
        allowance account due to the startup of operations and the
        uncertainty of the company to achieve profitability in the
        future.













                                                     Page 9 of 10



                        SCIENTIO, INC.
              (A DEVELOPMENT STAGE ENTERPRISE)
              NOTES TO THE FINANCIAL STATEMENTS
  FOR THE PERIOD DECEMBER 11, 2000 (INCEPTION) TO SEPTEMBER 30, 2001
                         (Continued)


NOTE 8: OPERATIONS AND LIQUIDITY

        The Company has incurred substantial losses in 2001.  Until
        such time that the Company's products and services can be
        successfully marketed, the Company will continue to need to
        fulfill working capital requirements through the sale of
        stock and the issuance of debt.

        The ability of the Company to continue in existence is
        dependent on its having sufficient financial resources to
        bring products and services to market for marketplace
        acceptance.  As a result of its significant losses, negative
        cash flows from operations, and accumulated deficits for the
        period ending September 30, 2001, there is doubt about the
        Company's ability to continue as a going concern.

        Management believes that its current available working
        capital, anticipated contract revenues and subsequent sales
        of stock and/or placement of debt instruments will be
        sufficient to meet its projected expenditures for a period of
        at least twelve months from September 30, 2001.  However, any
        projections of future cash needs and cash flows are subject
        to substantial uncertainty.  There can be no assurance that
        sufficient financing will be available in amounts or on terms
        acceptable to the Company.

NOTE 9: SUBSEQUENT EVENT - STOCK DISTRIBUTION

        On December 8, 2000, Modern Technology Corp. ("Modern")
        entered into an agreement with Andrew Edmonds, president and
        Anneke Edmonds, principal shareholder, to form Scientio.
        Modern agreed to purchase 403,000 shares of Scientio,
        representing 20% of the outstanding shares, for an investment
        of $188,500 and an additional investment of up to $50,000 to
        cover the costs of registering those shares and distributing
        them to shareholders of Modern.

        A registration statement for the 403,000 shares owned by
        Modern Technology Corp. was filed with the Securities and
        Exchange Commission.  On September 24, 2001, the registration
        statement was declared effective.  During the first week of
        October 2001, the 403,000 shares were distributed to Modern's
        shareholders.

NOTE 10: RELATED PARTY TRANSACTIONS

        The Company is paying rent monthly of about $1,700 to Anneke
        Edmonds, treasurer and director, for use of two rooms (about
        300 square feet) in Mrs. Edmond's home under an oral
        agreement on a month to month basis.  Included in the rental
        are monthly payments for telephone, utilities and use of
        equipment, computers and software owned by Andrew and Anneke
        Edmonds.   Andrew Edmonds is the President of Scientio Inc.
        Anneke Edmonds is the wife of Andrew Edmonds.

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