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 September 30, 2001
                                               ------------------



                         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                     (IRS Employer
of incorporation or organization)               Identification No.)

                      7575 Trans-Canada Highway, Suite 500
                           St-Laurent (Quebec) Canada
                                     H4T 1V6
         (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 September 30, 2001
------------------------------------        ------------------------------------
$.001 PAR VALUE CLASS A COMMON STOCK                   10,300,000 SHARES
                       DOCUMENTS INCORPORATED BY REFERENCE
                                      NONE




<PAGE>

                                         QUANTITATIVE METHODS CORPORATION

                                          FORM 10-QSB/SEPTEMBER 30, 2001

                                TABLE OF CONTENTS




General
Index


PART I


Item 1. - Consolidated Financial Statements:

     Balance Sheets -
         September 30, 2001 (Unaudited) and December 31, 2000 (Audited)

     Statements of Operations - (Unaudited) Three Months ended
         September 30, 2001 and 2000 Nine Months ended September
         30, 2001 and 2000
            and from Date of Inception to September 30, 2001

     Statements of Cash Flows - (Unaudited) Nine Months ended
         September 30, 2001 and 2000
            and from Date of Inception to September 30, 2001

     Notes to Consolidated Financial Statements


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





<PAGE>

                                     PART I
                              FINANCIAL INFORMATION

ITEM 1. - Financial Statements.

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

<TABLE>
<CAPTION>
                                                                    September 30,             December 31,
                                                                        2001                      2000
                                                                  ----------------           ---------------
                                                                     (Unaudited)                (Audited)
ASSETS
     CURRENT ASSETS
<S>                                                               <C>                        <C>
         Accounts receivable                                      $         10,496           $         8,457
         Income tax recoverable                                             28,690                    94,307
         Prepaid expenses                                                      158                         0
                                                                  ----------------           ---------------

                           TOTAL CURRENT ASSETS                             39,344                   102,764

PLANT & EQUIPMENT                                                           26,914                    37,554
                                                                  ----------------           ---------------

OTHER ASSETS
     Patents and trademarks                                                 11,550                    18,820
                                                                  ----------------           ---------------


TOTAL ASSETS                                                      $         77,808           $       159,138
                                                                  ================           ===============

LIABILITIES & (DEFICIT)
     CURRENT LIABILITIES
         Cash overdraft                                           $          2,160           $         1,446
         Bank loan                                                          16,747                    16,747
         Accounts payable and accrued expenses                             408,826                   455,489
         Payable - shareholders                                            280,262                   261,103
                                                                  ----------------           ---------------

                      TOTAL CURRENT LIABILITIES                            707,995                   734,785

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                                         (     2,481,734)           (    2,427,194)
                                                                  ----------------           ---------------


         TOTAL STOCKHOLDERS' (DEFICIT)                             (       630,187)           (      575,647)
                                                                  ----------------           ---------------

                                                                  $         77,808           $       159,138
                                                                  ================           ===============

</TABLE>



<PAGE>





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


<TABLE>
<CAPTION>
                                               Three Months Ended                   Nine Months Ended       Date of Inception
                                                  September 30,                       September 30,           to September
                                              2001             2000              2001             2000              2001
                                        -------------     -------------    -------------     -------------    -------------
<S>                                     <C>               <C>              <C>               <C>              <C>
SALES                                   $           0     $           0    $           0     $           0    $           0
                                        -------------     -------------    -------------     -------------    -------------

General and Administrative expenses
     Professional fees                          2,794              9,607          19,027            10,687          170,377
     Consulting                                     0                 0                0                 0          744,034
     Salaries and fringe benefits                   0                 0                0            23,116          370,641
     Rent                                         740             3,922            1,110            15,827          118,592
     Traveling and business promotion           4,140            12,118           10,124            13,543          124,291
     Office expenses                             1,941            3,852            3,218             5,066           52,100
     Research and development                       0                 0                0            23,287          344,627
     Telephone and communication                1,365             4,618            3,584             6,440          103,262
     Car expenses                                   0                 0                0                 0           18,235
     Insurance, taxes and licenses                  0                 0                0               897           24,583
     Interest and bank charges                    215               406              719             1,367           24,190
     Interest on bank loan                         78               359      (     1,152)            7,551           75,472
     Loss on disposal of investment                 0                 0                0                 0           34,845
     Depreciation of fixed assets               3,547             3,550           10,640            10,649          118,771
     Depreciation of deferred expenses          2,392             2,439            7,270             7,317           47,717
                                        -------------     -------------    -------------     -------------    -------------
administrative expenses
Total general and                              17,212            40,871           54,540           125,747        2,371,737
                                        -------------     -------------    -------------     -------------    -------------

                     NET INCOME (LOSS)
                   BEFORE INCOME TAXES   (     17,212)     (     40,871)    (     54,540)     (    125,747)    (  2,371,737)
                                        -------------     -------------    -------------     -------------    -------------

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

                     NET INCOME (LOSS)  $ (    71,212)   $ (     40,871)  $ (     54,540)   $ (    125,747)  $ (  2,371,737)
                                        =============    ==============   ==============    ==============   ===============

BASIC AND DILUTED LOSS
     PER SHARE
Net (loss) per weighted
     average share                      $ (      .00)    $ (       .00)   $ (       .00)    $ (       .00)
                                        ============     =============    =============     =============
Weighted average number of common
     shares used to compute net (loss)
     per weighted average share           10,300,000        10,300,000       10,300,000        10,300,000
                                        ============     =============    =============     =============


</TABLE>



<PAGE>





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


<TABLE>
<CAPTION>
                                                                Nine Months Ended               Date of Inception
                                                                  September 30,                  to September 30,
                                                           2001                  2000                  2001
                                                     ----------------      ---------------       ----------------
OPERATING ACTIVITIES
<S>                                                  <C>       <C>         <C>       <C>         <C>    <C>
Net earnings (loss)                                  $ (       54,540)     $ (      125,747)    $ (     2,371,737)
Items not requiring cash outlays:
     Loss on disposal of investment                                 0                     0                34,845
     Stock issued for services                                      0                     0               290,190
     Depreciation of fixed assets
         and deferred costs                                    17,911                17,966               166,488
     Investment tax credit adjustment                               0                     0                21,554
     Decrease in value of software
         development costs                                          0                     0               172,682
                                                     ----------------      ----------------      ----------------

                                                       (       36,629)       (      107,781)      (     1,685,978)

Changes in non-working capital items                           16,756                 7,323               364,675
                                                     ----------------      ----------------      ----------------

     NET CASH PROVIDED (REQUIRED)
                     BY OPERATING ACTIVITIES           (       19,873)       (      100,458)       (    1,321,303)
                                                     ----------------      ----------------      ----------------

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        (          826)       (       204,952)
                                                     ----------------      ----------------       ----------------

                             NET CASH (USED)
                     BY INVESTING ACTIVITIES                        0        (          826)       (       412,479)
                                                     ----------------      ----------------       ----------------

FINANCING ACTIVITIES
     Variation of advances from a shareholder                  19,159               115,700                280,262
     Net proceeds of issuance of shares                             0                     0              1,451,360
     Addition to long-term debt                                     0                     0                134,680
     Repayment of long-term debt                                    0        (       13,705)         (     134,680)
                                                     ----------------      ----------------       ----------------

                    NET CASH PROVIDED (USED)
                     BY FINANCING ACTIVITIES                   19,159               101,995              1,731,622
                                                     ----------------      ----------------       ----------------

         INCREASE (DECREASE) IN CASH
                        AND CASH EQUIVALENTS           (          714)                  711        (         2,160)

         CASH AND CASH EQUIVALENTS
                      AT BEGINNING OF PERIOD           (        1,446)       (       11,498)                     0
                                                     ----------------      ----------------       ----------------

         CASH AND CASH EQUIVALENTS
                            AT END OF PERIOD         $ (        2,160)     $ (       10,787)      $ (        2,160)
                                                     ================      ================       ================

         CASH PAID FOR INTEREST                      $ (        1,152)     $          7,551       $         75,472


</TABLE>


<PAGE>





                 QUANTITATIVE METHODS CORPORATION AND SUBSIDIARY
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2001

The unaudited  consolidated financial statements for the quarter ended September
30, 2001, 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  stockholders'  deficit 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, 2000.


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., a software
     development company. Softguard was 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 September 30,
     2001, the subsidiary has an accumulated deficit of $2,032,722.

     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.





<PAGE>





                 QUANTITATIVE METHODS CORPORATION AND SUBSIDIARY
                          (A Development Stage Company)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                               September 30, 2001

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 September 30, 2001 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.

     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.





<PAGE>






                 QUANTITATIVE METHODS CORPORATION AND SUBSIDIARY
                          (A Development Stage Company)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                               September 30, 2001

     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.

     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.

     Fair Value of Financial Instruments
     Due to their short-term maturity,  the carrying values of certain financial
     instruments  were assumed to approximate  their fair values.  The financial
     instruments  include:  sales tax  receivable and advances to common control
     company  included  in  current  assets,  trade  accounts  payable,  accrued
     liabilities,  due to a  director  and  demand  loans  included  in  current
     liabilities.

     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 not  exposed  to  interest  rate  risk on the bank loan
     because the rate of interest is a fixed  preferential  rate. Changes in the
     interest  rate would  therefore  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.





<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 Bulletin Board 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 ("Quorum").

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 hopes to be able 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.

The existing  Softguard  technology  allows for the  identification  of document
content on a number of different bases,  including physical format,  exact form,
and  original  content  before  editing.   The   architecture   underlying  this
identification is inherently extendible,  employing patented techniques to adapt
analysis to the nature of the content under consideration, in cooperation with a
distributed  Internet  database.  Further  development  is  anticipated  in  the
direction of content-type directed analysis and identification,  for instance in
matching documents with source material after re-encoding in formats such as MP3
or JPEG.

                                        4


<PAGE>






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.

To meet the  objectives of its business plan in the  short-term and to invest in
and ensure  sustainable  growth of a diversified  portfolio  the Company's  main
focus is to take advantage of potential  business  ventures that would provide a
source of eventual profit to the Company.

During  1999,  the  Company  entered  into a verbal  agreement  to acquire  100%
interest in Solar Pro Reg'd (Gestion Danpe Inc.) ("Solar Pro"), a Canadian-based
solar technology equipment manufacturer and distributor.  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 Solar Pro since August 1996.

In  September  2000,  Solar Pro  relocated  their  manufacturing  facilities  to
Richmond,  (Quebec)  Canada,  where they will continue to expand  operations and
focus resources on product development, sales and distribution.

On February 15, 2001,  Solar Pro received a  Certificate  of  Compliance,  under
Certificate  number  1143400,  Project number 1143400 and Master Contract number
207583, from CSA International for their full canopy tanning beds (solar units).
The products are now eligible to bear the CSA Mark with  adjacent  indicator "C"
and "US".  These  markings  signify  that the product has been  evaluated to the
applicable  CSA and  ANSI/UL  Standards,  for use in  Canada  and the U.S.  This
includes  products  eligible to bear the NRTL indicator.  NRTL, i.e.  Nationally
Recognized Testing Laboratory, is a designation granted by the U.S. Occupational
Safety  and  Health  Administration  (OSHA)  to  laboratories,  which  have been
recognized to perform certification to U.S. Standards.

As a result of these recent  developments,  the Company  hopes to finalize  this
acquisition  in the  year  2001.  Solar  Pro is a  top-line  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,  Solar Pro hopes to  expand  their  manufacturing
facilities  in order  to  increase  revenues  and  focus  resources  on  product
development, marketing and distribution.

Operating Results As a result of the foregoing, the Company incurred losses from
continuing  operations  of $17,212  (CDN) and $54,540 (CDN) for the three months
and nine months ended September 30, 2001, respectively,  as compared to a losses
of $40,871 (CDN) and $125,747 (CDN) for the  corresponding  periods in 2000. The
decrease of $71,207 (CDN) in general and administrative expenses between the two
years is mainly  attributable to the temporary  cutback in salaries and research
and development costs.

The  majority  of the  losses  incurred  by the  Company  were the result of the
on-going efforts of the Company's subsidiary Softguard in promoting its software
security and  document  authentication  programs.  Management  believes  that by
substantially  reducing the corporate overhead costs the Company will be able to
continue its operations.

Softguard  no longer  plans to have an outside  firm  complete  the  development
activities and customize its

                                        5


<PAGE>





products.  As a result,  Softguard  has  temporarily  suspended all research and
development pending further capital investments.

Marketing Plan
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
unlicensed, 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.

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 2001 to solicit new
business.

Liquidity and Capital Resources
The significant  reduction in scientific  research and experimental  development
grants  has  created  a  substantial  decrease  in  providing  cash flow for the
subsidiary.  Softguard's  eligibility status to qualify for these investment tax
credits has changed because it is no longer a Canadian controlled corporation.

The  reduction  of  research  and  development  staff was a result of  Softguard
focusing  efforts  on  seeking   additional   working  capital  to  further  the
development  of its products.  The majority of the  development  of the SLNS and
Quorum products was put on hold until more outside financing becomes available.

Conclusion
While management believes,  although there can be no assurance, that the Company
is sufficiently  capitalized to continue  operations for the next twelve months,
management  is  currently  seeking  additional  capital  investment  to  fulfill
research  and  development  requirements  which could have a material  impact on
short-term growth objectives.

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.

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<PAGE>







                                   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:   November 8, 2001     By: s\ Robert L. Seaman
                                  ------------------------------------
                              ROBERT L. SEAMAN, President and Director

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