U. S. 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 March 31, 2004

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from _____________ to ____________

                   Commission File No. 000-49990


                      PCS EDVENTURES!.COM, INC.
          (Name of Small Business Issuer in its Charter)

             IDAHO                                    82-0475383
(State or Other Jurisdiction of                (I.R.S. Employer I.D. No.)
 incorporation or organization)

                     345 Bobwhite Court, Suite #200
                          Boise, Idaho 83706
                (Address of Principal Executive Offices)

               Issuer's Telephone Number:  (208) 343-3110

                                N/A
     (Former Name or Former Address, if changed since last Report)

Securities Registered under Section 12(b) of the Exchange Act: None
Name of Each Exchange on Which Registered: None
Securities Registered under Section 12(g) of the Exchange Act:

                    No par value common stock

     Check whether the Registrant (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.

     (1)   Yes  X    No            (2)   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 the 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 Registrant's revenues for its most recent fiscal year: March 31,
2004 - $1,830,861.

     State the aggregate market value of the Registrant's voting stock held by
non-affiliates computed by reference to the price at which the stock
was sold, or the average bid and asked prices of such stock, as of a specified
date within the past 60 days.

     June 28, 2004 - $5,855,214.06.  There are approximately 21,685,978 shares
of common voting stock of the Registrant beneficially owned by non-affiliates.
These computations are based upon the bid price for the common stock of the
Registrant on the OTC Bulletin Board of the National Association of Securities
Dealers, Inc. ("NASD") on June 28, 2004 or $0.27 per share.

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

                              Not Applicable.

     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 ISSUERS)

     State the number of shares outstanding of each of the Registrant's
classes of common equity, as of the latest practicable date:

                               June 28, 2004

                                25,395,670

                    DOCUMENTS INCORPORATED BY REFERENCE

     A description of "Documents Incorporated by Reference" is contained
in Part III, Item I.

Transitional Small Business Issuer Format   Yes  X   No
                                                ---    ---

<PAGE>
                              PART I

Item 1.  Description of Business.
         ------------------------

Business Development.
---------------------

     General.
     --------

     PCS (the "Company," "PCS," "we," "our, "us" or similar words)
was incorporated in 1994 in the State of Idaho. In October 1994, we
acquired PCS Schools, Inc. ("PCS Schools") as a wholly owned subsidiary.  PCS
Schools had created an educational enrichment program that was delivered in
owner-operated, free standing Learning Centers. This program offered a unique
atmosphere highly conducive to individual styles of learning and a system that
utilized computer technology to increase areas of inquiry and application.
Subsequently, we changed our business plan and business strategy and in
connection with this change, we divested the Learning Centers developed by PCS
Schools and focused our efforts on creating web based educational systems
utilizing and improving PCS Schools legacy curriculum.


     Fiscal Year Ended March 31, 2004.
     ---------------------------------

     The following are the business developments during fiscal 2004:

          *  Sold another 180 Labs to Edison Schools;

          *  Began to investigate using parts of our Learning Labs to create a
             line of specialty educational retail toys;

          *  Developed a strategic alliance with K-Nex Corporation, a
             manufacturer and distributor of learning manipulatives to the US
             K-12 market;

          *  Announced the development and release of additional curriculum
             for learning labs destined for the classroom;

          *  Developed a strategic alliance with the Air University in
             Pakistan;

          *  Acquired the exclusive distribution rights to a line of Science
             Labs from Science Demo in Israel;

          *  Announced our new marketplace strategy for the US market which
             included new products, added sales representation and standards
             alignment in all 50 states; and

          *  Announced that we no longer utilize one line of building bricks
             in our learning labs and have opened the market to three other
             suppliers.

     Fiscal Years ended March 31, 2003 and 2002.
     -------------------------------------------

     For a discussion of our business development during the years ended March
31, 2003 and 2002, see our 10-KSB Annual Reports for the years ended March 31,
2003 and 2002 which have been previously filed with the Securities and
Exchange Commission, and which are incorporated herein by reference.  See Item
13, Part III.

Business.
---------

     We are engaged in the business of developing and marketing educational
related technologies and programs directed to the kindergarten through
12th grade after-school market.  Our products and technologies are targeted to
both the classroom and home market.  Our products and technologies are
delivered to the classroom through an inventory of hardware, software, books,
and Internet access.  Our technologies and products are delivered to the home
user through Internet access to our subscription based website.  Our products
and technologies allow students ages 3-18 to explore the basic foundations of
mechanical engineering, structures in  architecture, and math and science.

     We have developed seven innovative technology based educational
programs. Our "Academy of Engineering," "Academy of Robotics", "Edventures!
Lab", "Discover! Lab" products are site-license installations for classrooms
and learning programs. Our "Brick Lab!" and "Young Learner Building Box"
products are also  for classrooms and learning programs, but are not licensed.
Our "Edventures! Online" product is our comprehensive Internet delivered
educational experience that supports our Edventures! Labs and our Discover!
Labs site licenses and also serves as a stand-alone home usage program.  Our
"Edventures! Online" program is delivered to the home user over the Internet
on a monthly subscription basis.  Separately, and in combination, these seven
products present a platform for delivering educational services and support to
classroom, learning center and home users, and create a virtual community of
learners and parents on the web.  It is our business strategy that as this
online community grows, it will become an education portal through which
additional PCS programs and services can be marketed and delivered.

     We have only commenced marketing efforts for our current products and
technologies during the last four years.  We are attempting to expand
distribution and marketing arrangements channels. To date, we have sold only a
limited number of products related to our current product line.

Principal Products or Services and their Markets.
-------------------------------------------------

     We have now developed and are currently marketing seven innovative
technology based educational programs for the kindergarten through 12th grade
("K-12") after-school market, learning center market and home market.
Separately, and in combination, these seven products present a platform for
delivering educational services and support, and create a virtual community of
learners and parents on the web.  It is our intent that as this community
grows, it becomes an education portal through which additional PCS programs
and services can be deployed.   The five technologies and products that we are
currently marketing, are as follows:

          Our Academy of Engineering Lab is a site license program designed
          for use within various K-12 environments. Using the Academy of
          Engineering, students develop, design, and produce exciting hands-on
          projects ranging from catapults to robots in response to engaging
          challenges in a variety of topics.  The current Academy of
          Engineering product includes four books from the mechanical
          engineering strand and 12 extension books covering a variety of
          topics.  Future topic strands for expanding the program include
          structural, electrical and software engineering.  Each strand, when
          completed, includes courseware for over 272 hours of instruction.
          The Academy of Engineering program includes a variety of LEGO
          (Registered) products which are used as a mechanical engineering
          learning aid.  An Academy of Engineering site license currently
          sells for between $13,995 and $21,500 and includes materials, LEGO
          (Registered) manipulatives and other building components, and
          curriculum, a custom designed storage and organization unit, a
          digital camera, web-based support by our "Edventures! Online"
          product and various electronic assessment tools, and two days of
          teacher training.  We sold 41 Academy of Engineering Labs during the
          previous fiscal year.  Each site license includes all materials
          necessary to utilize the complete Academy of Engineering program.

          The Academy of Robotics Lab serves as a complement to our Academy of
          Engineering or can also serve as a stand alone robotics lab.  The
          Academy of Robotics Lab is available in a 10, 20, or 30 student
          editions.  Each Lab contains a comprehensive LEGO (Registered)
          inventory including LEGO (Registered) Mindstorms kits, additional
          LEGO (Registered) manipulatives, digital camera, web services, and
          curriculum.  This Lab ranges in price from $6,995 to $20,985.  We

          sold 58 Academy of Robotics Labs during last fiscal year.

          Edventures! Lab is a site license system intended for students ages
          7-13 which provides a broader set of subject areas including art,
          programming, web page design, chess, physics, electricity, and
          others.  It contains curriculum, storage cabinet, and a smaller
          inventory of LEGO (Registered) manipulatives.  It relies on
          "Edventures! Online" for delivery of the curriculum. A site license
          for an Edventures! Lab currently costs $7,550 which includes a
          60-student block license for access to "Edventures! Online."   We
          have sold 27 Edventures! Labs during the previous fiscal year.

          Discover! Lab is a scaled down model of the Edventures! Lab site
          license system intended for smaller groups of approximately 15
          students.  It contains curriculum, a storage cabinet and
          other material, but has a reduced  inventory of LEGO (Registered)
          materials and relies on "Edventures! Online" for delivery of the
          curriculum. A site license for a Discover! Lab currently costs
          $3,250 which includes a 30-student block license for access to
          "Edventures! Online". We have sold 22 Discover! Labs during the
          previous fiscal year.

          Edventures Brick Labs! provide an inexpensive hands-on learning
          solution for educators in all types of teaching environments.  The
          Brick Lab! combines the "Edventures! Online" curriculum, LEGO
          (Registered) manipulatives, storage bins and Internet/web services
          for smaller groups of approximately 30 students.  The Brick Lab!
          sells for $595 and is not licensed.  We have sold 441 Brick Labs
          during the previous fiscal year.   In addition, we have developed
       The BrickLab Grade Series.  This series is a complete technology
    curriculum for grades 1-6. Aligned with the ITEA standards, each
 level in the grade series offers hands-on and open-ended projects
for up to 30 students at one time. Each individual grade package
includes a sturdy plastic tub filled with over 5,700 building
bricks, one teacher curriculum book-- grade specific -- and
accompanying posters and labels. Each level contains an excess of
over 200 technological projects relevant to the real world.  For the
fiscal year ended 2004, Grades 1 and 2 are available.  Grades 3 and
4 should be available by the end of fiscal year 2005, with Grades 5
and 6 to follow in fiscal year 2006.

          The Young Learner Building Box was designed to meet the needs of
          preschoolers.  Introducing children to hands-on learning, this lab
          utilizes activities and games to teach number and letter
          recognition, build vocabulary, counting, and more.  The Young
          Learner Building Box includes activity cards, large-size plastic
          building blocks, the exclusive "HIGHRISE" board game, developed by
          PCS for this specific Lab, and a sturdy mobile storage container.
          This labs sells for $299 and is unlicensed. Introduced last year
          ago, we have sold 17 Young Learner Building Boxes during the
          previous fiscal year.

          "Edventures! Online" is an Internet delivered program that provides
          a safe, secure and exciting learning environment for students to
          interact within from home and from school. "Edventures! Online"
          includes online curriculum and assessment, filtered communication
          tools, forums and a variety of additional online services.   The
          program utilizes Internet based resources and services as a stand-
          alone product and also serves as an extension service to our
          school-based Edventures! Lab. "Edventures Online" can be viewed on
          the web at www.edventures.com.  This environment features over 200
          do-at-home projects organized into a sophisticated learning model
          (Merit System), an animated glossary, monitored chat rooms, live
          interaction with online instructors, personal email accounts for all
          students and more.  The "Edventures! Online" at-home curriculum
          utilizes found materials, LEGO (Registered) products, software and
          other resources to teach concepts in Physics, Electricity, Internet,
          Programming, Art, Architecture, Engineering, and Robotics.
          "Edventures! Online" provides all lab licensees an on-line support
          tool and provides a framework within which students can safely
          communicate, collaborate, and learn.  "Edventures! Online" is also
          available as a stand-alone, home based subscription product for
          $69.95 per year.

      The Academy of Engineering, Academy of Robotics, Edventures! Lab,
Discover! Lab, and Brick Lab! have three main delivery models, which makes
these products suitable for use in various learning environments:

          School Resource Center.  The Academy of Engineering, Academy of
          Robotics, Edventures! Lab, and Discover! Labs are currently being
          deployed as a school-wide resource center that allows K-12 teachers
          to integrate hands-on project based learning activities into their
          daily curriculum.  As a resource center, these mobile Labs are
          rolled from classroom to classroom throughout the course of a
          typical school week, being used by the entire school.  Examples of
          how the program is used include: (1) a platform for gifted and
          talented programs; (2) to enhance and extend a science curriculum;
          (3) to enhance and extend mathematics activities; (4) to serve as a
          foundation for an after-school program; (5) as a
          vocational-technical or technology education program; (6) and to
          serve as a special education resource.  This model makes the program
          an ideal resource for schools around the country that are seeking
          innovative and organized methods for integrating technology and
          hands-on learning in the classroom.

          Pre-Engineering Course.  The Academy of Engineering, Academy of
          Robotics, and Edventures! Labs provide a comprehensive engineering
          curriculum designed around the hands-on use of LEGO (Registered)
          manipulatives. This curriculum allows the program to serve as the
          foundation for pre-engineering courses suitable for students in
          Jr./Sr. High.  The hands-on applications of technology, design and
          production techniques, and the integration of the Internet based
          services, makes it a highly attractive total classroom solution.

          After School Program.  The Academy of Engineering, Academy of
          Robotics, Edventures! Lab, Discover! Lab, and Brick Lab programs
          were originally designed in an after-school environment and are
          ideal to meet the expanding need for educational solutions for
          school-based programs, Boys & Girls Clubs, YMCA, Community Learning
          Centers and similar organizations.  When used in this format, these
          programs become a hub for educational activities out of the
          engineering curriculum, or from the online Edventures! program.  The
          complete support, assessment and curriculum components provide a
          system for offering a flexible, effective educational offering.

     We believe that education programs of our type are not currently
available from any other source and present a unique opportunity for sales and
marketing to specific segments of the education industry. We believe that PCS'
education programs deliver a unique, proven learning experience that:

     *    provides students with exciting and relevant activities that
          brings curriculum to life;

     *    develops essential critical thinking and problem-solving skills;

     *    prepares students for real-world career demands; and

     *    builds a strong foundation in technical literacy.

Markets.
--------

     The educational market is a significant market in the United States but
is fragmented into various segments ranging from non-profit educational
programs to the public school system.  We focus our sales and marketing
efforts on specific market segments in an integrated strategy that is intended
to build brand name awareness of our PCS products in schools, at home and
within the larger educational marketplace.

     We believe that a major shift of focus is taking place in education in
our public and private schools as educators and parents seek to maximize
educational experiences for children based upon advances in technology. We
believe that this shift necessitates sweeping changes in how schools are
operated, programs are taught, technology is integrated, students are assessed
and classrooms are managed. Over the past few years, the emergence of a for-
profit education industry has begun to evolve in response to parents' and
society's demand for more and better alternatives in education.  Parents are
giving their  children's schools low grades for teaching performance and at
the same time there is an increase in public support for school choice. The
issue of education, including the public funding of private school vouchers is
significant.  A school voucher program has also been recently upheld in a case
decided at the United States Supreme Court.  These factors are driving the
growth of private and charter school alternatives.

     Capitalizing on this atmosphere, private education based companies
specializing in after-school, tutoring, and special skills programs are
marketing programs, technologies, and products catering to teachers, students,
and parents.  Parents support alternative education programs and enrichment
activities and actively seek them out for their children, as well as exert
more and more pressure on public schools to improve their performance.   We
believe that with this change and unrest taking place within the education
industry, enormous opportunities are emerging for companies who understand the
problems and promise of technology and new educational methodologies.  It is
our business strategy to, through our technologies and experience, develop and
market technology enhanced learning programs to address this education demand.

     The growth of the Extended Learning Market. Recent high-profile federal
programs indicate a growing opportunity within the extended learning market
which encompasses before, after, and summer school programs on the campus of
public schools, or operated through the venue of organizations like the Boys &
Girls Clubs of America. The web site, "www.afterschool.gov," summarizes many
of the federal funding sources now available for this growing market segment.

     PCS Designated Markets.
     -----------------------

      We have identified as our primary market for our labs traditional public
and private schools and the after-school programs that are growing quickly
across the United States. Widespread financial support for implementing
school-based after-school programs is driving the growth of public school
programs in this segment. The growth of programs such as those offered by the
Boys & Girls Clubs of America are further proof of the market need for this
product. As a niche market, after school programs, on and off the campus of
public schools (the Extended Learning Market), represent a potential market
for PCS products.

     K-12 Market in International and U.S.   We have entered into a sales
agency agreement and product alliance relationship with Pitsco LEGO
(Registered) Dacta, a Pittsburg, Kansas, based educational company that holds
the exclusive distribution rights to LEGO (Registered) Dacta product sales in
the United States.  Pitsco, established in 1966, has established a  market
presence and reputation in the school market place and now markets its own
line of modular school labs as well as hundreds of other hands-on type
products.  The Academy of Engineering product complements the Pitsco existing
product line.

      Boys & Girls Clubs.   We are currently continuing our efforts to
distribute our labs into the Boys and Girls Clubs. To date, clubs have
evidenced a strong interest in our program due to an organization-wide mandate
to implement educational programs like the Academy of Engineering.    The
funding cycle access to funds for these programs are a significant factor in
our ability to market the Academy of Engineering to Boys and Girls Clubs.  We
currently have labs in over 20 of 3,300 Boys & Girls Clubs nationwide.

     Extended Learning Market.   In addition to the Boys & Girls Clubs of
America, additional non-school-based programs are increasing through such
institutions as the YMCA, Community Learning Centers, and other sites such as
Science Museums.  PCS is currently working to establish reference sites in
each of these markets and will follow a strategy similar to the one it is
pursuing with the Boys & Girls Clubs of America.  Progress to date in these
market segments include

     Edventures! Online Markets.
     -------------------------

     Edventures! Online is designed to provide a full-featured educational
extension via the Internet to all students participating in PCS programs such
as the Academy of Engineering.  However, for families and students who do not
have access to PCS Labs through a local site license, the program is available
on a subscription basis for $69.95 per year.  PCS describes the primary market
for the current Edventures! Online product as families with children ages six
to 13 who have a strong interest in education.  Edventures! Online has been
approved for state level funding for homeschool students in the states of
California and Alaska.  PCS is currently developing a promotional effort that
will take advantage of this funding availability to promote the Edventures!
program to the thousands of homeschool families in these states.

Marketing and Other Agreements.
-------------------------------

     Direct Sales Force.  Currently, we have a direct sales force consisting
of three employees and several independent agency groups. This direct sales
force markets our products and programs in a variety of methods to various
users, providers and others.

     PCS Edventures is pleased to announce it has reached a formal agreement
with Science Demo, Ltd., an Israeli manufacturer and marketer of a premier
line of compact Science Demonstration Labs, for PCS to market the products in
the US and Canada.  This agreement expands the products and services offered
by PCS sales representatives to include the core physical science market for
K-12 schools nationwide.   A recent report released by the National Science
Foundation indicates that science and technology preparedness in US students
is dropping at an alarming rate and we are losing jobs and a leadership role
to International competitors.  Solid, proven science activities fit within our
project based learning educational framework.

Competition.
------------

     Both the education marketplace and the Internet are highly competitive
and rapidly evolving fields, and are expected to continue to undergo
significant and rapid technological change. Other companies may develop
products and services and technologies superior to our products which may
result in our products and services becoming less competitive.  We are aware
of several development stage and established enterprises, including major
telecommunications and computer software and technology companies, which are
exploring the fields of online educational products and services or are
actively engaged in research and development of products and services targeted
at these fields. Many of these companies have substantially greater financial,
manufacturing, marketing and technical resources than we have and represent
significant long-term competition. To the extent that these companies offer
comparable products and services at lower prices, or higher quality and more
cost effective, our business could be adversely affected.

     Potential Competitive Advantages.
     ---------------------------------

     We believe that we potentially have certain competitive advantages which
we will attempt to maximize in developing and effecting our business strategy.
These potential advantages include the following:

     High barriers exist to entry. PCS' educational programs are innovative,
     unique and based on fifteen years of experience and product development.

     Barriers to entry for competitive products that are time tested are
     extremely high.  Early and significant market penetration will guarantee
     a "first and best" name recognition for the types of educational services
     that PCS will deliver.

     Utilize the Internet as a delivery and support mechanism for the
     programs. By leveraging our extensive expertise in Internet technology,
     PCS achieves the following significant advantages: (1) a high level of
     program control; (2) the building of a significant data model regarding
     program usage; and (3) a direct channel to enrolled students who access
     the program at home.   Each of these advantages provides tangible long-
     term benefits to the Company.

     Expand program offerings and distribute them via established program
     licensees. After implementing and proving a successful program model,
     PCS will utilize its established network of licensees to distribute
     additional programs designed to integrate seamlessly into the already
     deployed sites.  This creates a long-term growth strategy that includes
     new and residual sales to an ever-growing list of existing licensees on
     an annual basis.

     Proliferate licensing of PCS programs by continuing to expand other
     educational market segments.  PCS recognizes that the public schools and
     community organizations offering educational programs are the best
     choice for rapid expansion and capturing market share and visibility.
     Additional market segments will be attacked individually as PCS
     demonstrates program viability, market by market.  By taking a long term
     strategic approach to market penetration, and maintaining a policy of
     solid strategic alliances for distribution, each PCS educational program
     will be an asset that will continue to generate growth and sales.

Sources and Availability of Raw Materials.
------------------------------------------

     None, not applicable.

Patents, Trademarks, Licenses, Franchises, Concessions, Royalty Agreements or
Labor Contracts.
----------------

     We seek to protect our technology, documentation and other written
materials under trade secret and copyright laws, which afford only limited
protection.  Generally, we enter into confidentiality and non-disclosure
agreements with our employees and with key vendors and suppliers.  Currently
we use the following trade names: "PCS" (TM)"; "Academy of Learning";
"business"; "Edventures", and "PCS Brick Lab" (TM".  We intend to evaluate
continually the appropriateness of seeking registration of additional product
names and trademarks as they evolve.

     At the present time, we have not applied for any patents, nor do we have
any patents pending.  We anticipate that our products will not be the type for
which patent protection will be sought.  However, we may file for patent
protection on certain aspects of our proprietary technology in the future.

     Our present or future products may be found to infringe upon the
intellectual property rights  of others.  If our products were found to
infringe on intellectual property rights of others, our development and sale
of such products could be severely restricted or prohibited.  In such
eventuality we would be required to obtain licenses to utilize such patents or
proprietary rights of others, for which acceptable terms may be unavailable.
If we were not able to obtain such licenses, the development or sale of
products requiring such licenses could be materially and adversely affected.
In addition, we could incur substantial costs in defending against challenges
to our patents or infringement claims made by third parties or in enforcing
any patents we may obtain.

     Our PCS logo has been service/trade marked (#2213678) since December 29,
1998.  Protection for this service/trademark is for a ten year period.  "PCS
Edventures!.COM" has been service/trade marked since November 27, 2001.  We
applied for a service/trademark (application #78329127) for "PCS Brick Lab" on
November 13, 2003.  We anticipate that these applications will be granted in
the near future. Once granted, the protection is for a period of ten years.

Governmental Approval of Principal Products or Services.
--------------------------------------------------------

     None, not applicable.

Effects of Existing or Probable Governmental Regulations.
---------------------------------------------------------

     Small Business Issuer.
     ----------------------

     The integrated disclosure system for small business issuers adopted by
the Securities and Exchange Commission in Release No. 34-30968 and effective
as of August 13, 1992, substantially modified the information and financial
requirements of a "Small Business Issuer," defined to be an issuer that has
revenues of less than $25 million; is a U.S. or Canadian issuer; is not an
investment company; and if a majority-owned subsidiary, the parent is also a
small business issuer; provided, however, an entity is not a small business
issuer if it has a public float (the aggregate market value of the issuer's
outstanding securities held by non-affiliates) of $25 million or more.

     The Securities and Exchange Commission, state securities commissions
and the North American Securities Administrators Association, Inc. ("NASAA")
have expressed an interest in adopting policies that will streamline the
registration process and make it easier for a small business issuer to have
access to the public capital markets.

     We are deemed to be a "small business issuer," and we have selected to
comply with the "small business issuer" disclosure requirements of Regulation
SB of the Securities and Exchange Commission.

     Sarbanes-Oxley Act.
     -------------------

     On July 30, 2002, President Bush signed into law the Sarbanes-Oxley
Act of 2002 (the "Sarbanes-Oxley Act").  The Sarbanes-Oxley Act imposes a wide
variety of new regulatory requirements on publicly-held companies and their
insiders.  Many of these requirements will affect us.  For example:

         *     Our chief executive officer and chief financial officer must
now certify the accuracy of all of our periodic reports that contain financial
statements;

         *     Our periodic reports must disclose our conclusions about the
effectiveness of our disclosure controls and procedures; and

         *     We may not make any loan to any director or executive officer
and we may not materially modify any existing loans.

     The Sarbanes-Oxley Act has required us to review our current
procedures and policies to determine whether they comply with the
Sarbanes-Oxley Act and the new regulations promulgated thereunder.  We will
continue to monitor our compliance with all future regulations that are
adopted under the Sarbanes-Oxley Act and will take whatever actions are
necessary to ensure that we are in compliance.

     "Penny Stock" Designation.
     --------------------------

     Our common stock is "penny stock" as defined in Rule 3a51-1 of the
Securities and Exchange Commission.  Penny stocks are stocks:

     *     with a price of less than five dollars per share;

     *     that are not traded on a "recognized" national exchange;

     *     whose prices are not quoted on the NASDAQ automated quotation
system; or

     *     in issuers with net tangible assets less than $2,000,000, if the
issuer has been in continuous operation for at least three years, or
$5,000,000, if in continuous operation for less than three years, or with
average revenues of less than $6,000,000 for the last three years.

     Section 15(g) of the Exchange Act and Rule 15g-2 of the Securities
and Exchange Commission require broker/dealers dealing in penny stocks to
provide potential investors with a document disclosing the risks of penny
stocks and to obtain a manually signed and dated written receipt of the
document before making any transaction in a penny stock for the investor's
account.  You are urged to obtain and read this disclosure carefully before
purchasing any of our shares.

     Rule 15g-9 of the Securities and Exchange Commission requires
broker/dealers in penny stocks to approve the account of any investor for
transactions in these stocks before selling any penny stock to that investor.
This procedure requires the broker/dealer to:

     *     get information about the investor's financial situation,
investment experience and investment goals;

     *     reasonably determine, based on that information, that transactions
in penny stocks are suitable for the investor and that the investor can
evaluate the risks of penny stock transactions;

     *      provide the investor with a written statement setting forth the
basis on which the broker/dealer made his or her determination; and

     *      receive a signed and dated copy of the statement from the
investor, confirming that it accurately reflects the investor' financial
situation, investment experience and investment goals.

     Compliance with these requirements may make it harder for our
stockholders to resell their shares.

     Reporting Obligations.
     ----------------------

     Section 14(a) of the Exchange Act requires all companies with
securities registered pursuant to Section 12(g) of the Exchange Act to comply
with the rules and regulations of the Securities and Exchange Commission
regarding proxy solicitations, as outlined in Regulation 14A.  Matters
submitted to stockholders of our Company at a special or annual meeting
thereof or pursuant to a written consent will require our Company to provide
our stockholders with the information outlined in Schedules 14A or 14C of
Regulation 14; preliminary copies of this information must be submitted to the
Securities and Exchange Commission at least 10 days prior to the date that
definitive copies of this information are forwarded to our stockholders.

     We are also required to file annual reports on Form 10-KSB and
quarterly reports on Form 10-QSB with the Securities Exchange Commission on a
regular basis, and will be required to timely disclose certain material
events (e.g., changes in corporate control; acquisitions or dispositions of a
significant amount of assets other than in the ordinary course of business;
and bankruptcy) in a current report on Form 8-K.

Cost and Effect of Compliance with Environmental Laws.
------------------------------------------------------

     None, not applicable.

Research and Development Expenses.
----------------------------------

     We incurred no research and development expenses during the last fiscal
year due to a lack of funding.  However, we believe that continued investment
in research and development will contribute to attaining our strategic
objectives and, as a result, expect research and development expenses to
increase in future periods.

Number of Employees.
--------------------

     We employ approximately 11 full-time employees of which three are in
sales, five are in design and project management, one in accounting/finance
and two in administration.  We will hire part-time and additional
full-time employees on an "as-needed" basis.  None of our employees are
represented by a labor union.  We believe that our relationship with our
employees is good.

Item 2.  Description of Property.
         ------------------------

     The Company leases its principal executive offices, at 345 Bobwhite
Court, Suite #200, Boise, Idaho 83706.  These offices consist of approximately
5,412 square feet of office space.  Rent obligations are $6,250/month
under a non-cancelable operating lease.

Item 3.  Legal Proceedings.
         ------------------

Warren Black v. PCS.
--------------------

     On January 18, 2002, Warren Black, a former independent contractor for
the Company, filed a complaint against the Company alleging breach of
contract.  Mr. Black seeks the return of certain software products that he
claimed to have provided the Company during his employment, or their monetary
equivalent, which he claims to be $15,000.  The Company settled this action in
February 2003.  Per the terms of the settlement agreement, the Company agreed
to issue Mr. Black a $6,000 note in full satisfaction of his claim.  The note
was paid in quarterly installments of $1,500 plus accrued interest at 8.0%
per annum.  The note was paid in full as of February 4, 2004.

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

     No matter was submitted to the Company's shareholders during the last
quarter of our current fiscal year.

                                  PART II

Item 5.  Market for Common Equity and Related Stockholder Matters.
         ---------------------------------------------------------

Market Information.
-------------------

     There has never been any "established trading market" for our shares of
common stock.  Our common stock is presently quoted on the OTC Bulletin Board
of the NASD under the symbol "PCSV" as reflected below.  No assurance can be
given that any market for our common stock will develop in the future or be
maintained.  If an "established trading market" ever develops in the future,
the sale of "restricted securities" (common stock) pursuant to Rule 144 of the
Securities and Exchange Commission by members of management or others may have
a substantial adverse impact on any such market.

     The range of high and low bid quotations for our common stock during
each quarter since they commenced trading in September, 2001, are shown below.
Prices are inter-dealer quotations as reported by the NQB, LLC, and do not
necessarily reflect transactions, retail markups, mark downs or commissions.

                              Stock Quotations
                              ----------------


Quarter Ended                       High       Low
-------------                       ----       ---

September 30, 2001                  $0.60     $0.25

December 31, 2001                   $0.28     $0.18

March 31, 2002                      $0.25     $0.06

June 30, 2002                       $0.19     $0.07

September 30, 2002                  $0.20     $0.10

December 31, 2002                   $0.15     $0.06

March 31, 2003                      $0.10     $0.065

June 30, 2003                       $0.12     $0.065

September 30, 2003                  $0.12     $0.07

December 31, 2003                   $0.17     $0.09

March 31, 2004                      $0.30     $0.10

Recent Sales of Unregistered Securities.
----------------------------------------

     During the last quarter, we sold the securities listed below in
unregistered transactions.  Each of the sales was sold in reliance on the
exemption provided for in Section 4(2) of the Securities Act of 1933, as
amended (the "Securities Act").  No underwriting fee or other compensation was
paid in connection with the issuance of shares.

            Name                     Date          Shares       Consideration
            ----                     ----          Issued      Paid in Dollars
                                                   ------      ---------------
Digital Wallstreet, Inc.            1/22/04        680,000                (1)
Anthony A. Maher                    1/22/04        103,207                (2)
Leonard Burningham                  1/22/04        106,384                (3)
Moshe Weiss and Hanna Weiss          2/9/04         75,000          15,000(5)
Barry L. Brown                       2/2/04        100,000          12,000(4)
Eliezer Schloss                     2/11/04         50,000          10,000(5)
Shmuel Dabi                         2/12/04         50,000          10,000(5)
David Levosky                       2/14/04         58,070                (6)
John Ariko                          2/19/04         75,825                (6)
Hazen Sandwick                      2/19/04         50,550                (6)
Samuel R. Trozzo                    2/23/04        166,667          20,000(4)
Kenneth E. Dawkins                  2/25/04        400,000          50,000(8)
Dave and Sue Kimball                 3/1/04         50,670                (6)
Ronald A. Nelson                     3/5/04        125,000          25,000(5)
Temporary Financial Services, Inc.  3/10/04      1,562,500         250,000(9)
Sam Mayer                           3/24/04         50,000          10,000(5)
Charles Bradley                     3/25/04        101,865                (6)
Sina Leatha                         3/25/04        101,865                (6)
Steve Womack                        3/29/04         50,975                (6)
Verl Jensen                         2/19/04         15,165                (7)
Leonard and Sonia Coote             2/24/04         15,181                (7)
Robert and Ann Fyfe                  3/3/04          5,069                (7)
Michael Yokoyama and Jaye Venuti    3/10/04         10,154                (7)
Kathleen Cullinan                   3/24/04          5,092                (7)
Kapital Koncepts                    3/26/04         10,189                (7)
Diana Gayle Smith                    2/9/04         12,000               (10)
David C. Levosky                    2/14/04         11,614                (7)
Hazen A. Sandwick                   2/19/04         10,110                (7)
John G. Ariko, Jr.                  2/19/04         15,165                (7)
Kimball Family Trust                 3/1/04         10,134                (7)
Charles L. Bradley                  3/25/04         20,373                (7)
Sina L. Leatha                      3/25/04         20,373                (7)
Steve Womack                        3/29/04         10,195                (7)

(1)  These shares of common stock were issued for services at $0.11 per share
     ($75,000).

(2)  These shares of common stock were issued for interest at $0.12 per share.

(3)  These shares of common stock were issued for services at $0.12 per share.

(4)  These shares of common stock were issued for cash at $0.12 per share.

(5)  These shares of common stock were issued for cash at $0.20 per share.

(6)  These shares of common stock were issued for conversion of preferred
     stock which was issued for indentured trust debt ranging from $10,000
 plus interest to $20,000 plus interest.

(7)  These preferred shares were issued for the conversion of indentured trust
     notes for amounts varying from $5,000 to $15,000, plus interest.

(8)  These shares of common stock were issued for cash at $0.125 per share.

(9)  These shares of common stock were issued for services at $.16 per share.

(10)  These shares of preferred stock were issued for cash at $1.00 per share.

Holders.
--------

     As of June 28, 2004, there were 24,919,752 shares of common stock
outstanding and approximately 450 stockholders of record.

Dividends.
----------

     We have not paid any cash dividends since our inception and do not
anticipate or contemplate paying dividends in the foreseeable future.  It is
the present intention of management to utilize all available funds for the
development of our business.

Securities Authorized For Issuance under Equity Compensation Plans.
-------------------------------------------------------------------

     On April 28, 2004, we entered into a Consulting Agreement with Javan
Khazali, an independent consultant.  This Consulting Agreement is for one year
and consists of compensation Mr. Khazali for services such as:  marketing and
distribution strategies, structuring of transactions, vendor relations, and
business development activities.  On May 21, 2004, which is subsequent to the
date of this Report, we filed an S-8 for 10,000,000 shares at $.35 under an
Equity Compensation Plan entitled "2004 Non-Qualified Stock Option Plan and
Non-Qualified Stock Option Agreement" with Javan Khazali."

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

Results of Operation.
---------------------

Results and Comparison for Fiscal Years

     Fiscal year ended March 31, 2004, resulted in a net loss of ($152,351).
This net loss is a decrease of $301,812, or 66%, from the net loss for
fiscal year 2003 of ($454,163).  The Basic Loss per Share for fiscal year
2004 is ($0.01), as compared to a loss per share of ($0.03) for fiscal year
2003.  Details of changes in revenues and expenses can be found below.

Revenues

     Revenues of $1,830,861 for fiscal year 2004 were down from revenues of
$1,857,491 for fiscal year 2003 by $26,630, or 0.1%.  In the fourth quarter of
fiscal year 2004, we changed our policy to give our customers more choice in
their lab materials.  Under the new policy, our customers can choose where to
purchase their lab materials (e.g. LEGO (Registered) manipulatives) and they
simply purchase the PCS curriculum, customized furniture unit, and site
license materials from PCS.  There is no effect on our gross profit as our
revenues are reduced by same amount as our cost of goods sold.

     Revenues for our fourth quarter of this fiscal year were 70% higher than
revenues for the same period during last fiscal year, $449,747 and $265,277,
respectively.  This increase in revenues, while slightly offset by our change
in policy, is due to increased marketing efforts.

     We believe that with the addition of several new independent sales
agency groups, which signed on to represent our products in the first quarter
of fiscal year 2005, we will achieve better market penetration and coverage
than we have the past few years.  Our current in-house sales force will
continue to sell direct in the 20 or so states that we do not currently have
representation in and will act as Regional Managers in support of the new rep
organizations in those states where we are now represented.

Cost of Goods Sold/Cost of Sales

     Cost of Goods Sold decreased $59,981, or 9%, from fiscal year 2003,
$648,201, to fiscal year 2004, $588,220.  This decrease is primarily due to
our policy change, which removes the cost of goods component for our lab
materials.  See the Revenue section above for further discussion.

     Cost of goods for the fourth quarter of fiscal year 2004 increased by
$71,965, or 103%, from $70,163 in the fourth quarter of fiscal year 2003 to
$142,128 for the same period during this fiscal year.  This increase is due to
the increase in sales as well as the transition to our new policy which
removes cost of goods sold for lab materials (i.e. some of the lab sales were
still under the previous policy and, therefore, cost of goods for lab
materials is included).

Operating Expenses

     Operating expenses decreased by $270,846, or 19%, from fiscal year
2003, when operating expenses were $1,460,450 to fiscal year 2004 when
operating expenses were $1,237,604.  This decrease is due cost containment
strategies, including maintenance of lower staffing levels and an overall
decrease in G&A expenses, including marketing and public relations.

Liquidity.
----------

     As of the fiscal year ended March 31, 2004, we had $113,820 in Cash, with
total current assets of $619,422 and total current liabilities of $1,314,527.
We have a stockholders' deficit of ($643,930).

Item 7.  Financial Statements.
         ---------------------

          Consolidated Financial Statements for the years ended
          March 31, 2004 and 2003

          Independent Auditors Report

          Consolidated Balance Sheet - March 31, 2004

          Consolidated Statements of Operations for the
          years ended March 31, 2004 and 2003

          Consolidated Statements of Stockholders' Equity (Deficit)

          Consolidated Statements of Cash Flows
          for the Years Ended March 31, 2004 and 2003

          Notes to Financial Statements

<PAGE>
                    PCS EDVENTURES!.COM, INC.
                         AND SUBSIDIARY

                CONSOLIDATED FINANCIAL STATEMENTS

                          March 31, 2004
<PAGE>





                         C O N T E N T S


Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . 3

Consolidated Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . 4

Consolidated Statements of Operations. . . . . . . . . . . . . . . . . . 6

Consolidated Statements of Stockholders' Equity (Deficit). . . . . . . . 7

Consolidated Statements of Cash Flows. . . . . . . . . . . . . . . . . . 16

Notes to the Consolidated Financial Statements . . . . . . . . . . . . . 18
<PAGE>




     REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




To the Board of Directors
PCS Edventures!.COM, Inc., and Subsidiary
Boise, Idaho

We have audited the consolidated balance sheet of PCS Edventures!.COM, Inc.,
and Subsidiary (the "Company") as of March 31, 2004, and the related
consolidated statements of operations, stockholders' equity (deficit) and cash
flows for the years ended March 31, 2004 and 2003.  These consolidated
financial statements are the responsibility of the Company's management.  Our
responsibility is to express an opinion on these consolidated financial
statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States).  Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the consolidated financial statements.  An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall consolidated financial statement
presentation.  We believe that our audits provided a reasonable basis for our
opinion.

In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the consolidated financial position
of PCS Edventures!.COM, Inc., and Subsidiary as of March 31, 2004 and the
results of their operations and their cash flows for the years ended March 31,
2004 and 2003, in conformity with generally accepted accounting principles in
the United States of America.

The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern.  As discussed in Note 9 to
the consolidated financial statements, the Company has suffered recurring
losses from operations and has a working capital deficit that raises
substantial doubt about their ability to continue as a going concern.
Management's plans in regard to those matters are also described in Note 9 to
the consolidated financial statements.  The consolidated financial statements
do not include any adjustments that might result from the outcome of this
uncertainty.


HJ & Associates, LLC
Salt Lake City, Utah
June 25, 2004

                               F-3
<PAGE>
<TABLE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
                    Consolidated Balance Sheet
<CAPTION>

                              ASSETS

                                                            March 31,
                                                              2004
<S>                                                          <C>
CURRENT ASSETS

     Cash                                                   $ 113,820
     Accounts receivable                                      449,518
     Prepaid expenses                                           6,084
     Note receivable (Note 12)                                 50,000
     Deferred costs (Note 2)                                        -
     Debt extension costs, net (Note 2)                             -
                                                            ---------
          Total Current Assets                                619,422
                                                            ---------
FIXED ASSETS, NET (Note 3)                                          -
                                                            ---------
OTHER ASSETS

     Deposit on distribution rights (Note 13)                  45,000
     Deposits                                                   6,175
                                                            ---------
          Total Other Assets                                   51,175
                                                            ---------
          TOTAL ASSETS                                      $ 670,597
                                                            =========

The accompanying notes are an integral part of these consolidated financial
statements.
                               F-4
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
              Consolidated Balance Sheet (Continued)


          LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                                                            March 31,
                                                              2004

CURRENT LIABILITIES

     Accounts payable                                      $   55,665
     Wages payable                                             38,436
     Payroll taxes payable                                    182,949
     Accrued interest                                          60,563
     Accrued expenses (Note 14)                               256,818
     Unearned revenue (Note 2)                                204,404
     Notes payable - related parties (Note 5)                 165,882
     Notes payable (Note 6)                                   349,810
                                                          -----------
          Total Current Liabilities                         1,314,527
                                                          -----------
          Total Liabilities                                 1,314,527
                                                          -----------
COMMITMENTS AND CONTINGENCIES (Note 8)

STOCKHOLDERS' EQUITY (DEFICIT)

     Preferred stock, no par value, authorized 10,000,000
      shares, 82,850 shares issued and outstanding (Note 4)   120,473
     Common stock, no par value, authorized 40,000,000
      shares; 24,132,910 shares issued and outstanding     23,023,323
     Expenses prepaid with common stock (Note 4)              (67,292)
     Accumulated deficit                                  (23,720,434)
                                                         ------------
          Total Stockholders' Equity (Deficit)               (643,930)
                                                         ------------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
          (DEFICIT)                                      $    670,597
                                                         ============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
                               F-5
<PAGE>
<TABLE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
              Consolidated Statements of Operations
<CAPTION>

                                                      For the Years Ended
                                                           March 31,
                                                   2004             2003
<S>                                             <C>           <C>
REVENUES

 Lab Revenue                                     $1,661,838    $1,691,325
 License Revenue                                    156,164       151,254
 Subscription Revenue                                12,859        14,912
                                                 ----------    ----------
  Total Revenues                                 $1,830,861    $1,857,491
                                                 ----------    ----------
COST OF GOODS SOLD                                  588,220       648,201
                                                 ----------    ----------
GROSS PROFIT                                      1,242,641     1,209,290
                                                 ----------    ----------
OPERATING EXPENSES

 Salaries and wages                                 463,918       597,617
 Depreciation expense                                25,447        57,632
 General and administrative                         700,239       805,201
                                                 ----------    ----------
  Total Operating Expenses                        1,189,604     1,460,450
                                                 ----------    ----------
OPERATING INCOME (LOSS)                              53,037      (251,160)

OTHER INCOME AND EXPENSES

 Interest expense                                  (214,804)     (219,194)
 Interest income                                         18            63
 Other income                                         4,398             -
 Gain on settlement of debt (Note 7)                  5,000        16,128
                                                 ----------    ----------
  Total Other Income and Expenses                  (205,388)     (203,003)
                                                 ----------    ----------
NET LOSS                                        $  (152,351)  $  (454,163)
                                                 ==========    ==========
BASIC LOSS PER SHARE (Note 2)                   $     (0.01)  $     (0.03)
                                                 ==========    ==========
WEIGHTED AVERAGE NUMBER OF
 SHARES OUTSTANDING                              19,447,429    15,284,032
                                                 ==========    ==========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
                               F-6
<PAGE>
<TABLE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
    Consolidated Statements of Stockholders' Equity (Deficit)
<CAPTION>
                                Common Shares             Preferred Shares
                              -----------------------   --------------------
                               Shares      Amount         Shares     Amount
                              ----------  -----------   --------- ----------
<S>                          <C>           <C>        <C>        <C>
Balance, March 31, 2002       13,261,522  $21,596,003           - $        -

Common stock issued for
conversion of accounts
payable at $0.08 per share        50,000        4,250          -            -

Common stock issued for
conversion of accounts
payable at $0.30 per share        15,000        4,500          -            -

Common stock issued for
conversion of accounts
payable at $0.07 per share       248,417       17,389          -            -

Common stock issued for
prepaid services at $0.05
per share                        515,000       27,500          -            -

Common stock issued for
prepaid services at $0.07
per share                        100,000        7,000          -            -

Common stock issued for
services at $0.07 per share      157,500       11,025          -            -

Cancelled common stock
previously issued for
services that had not been
performed                        (20,000)           -          -            -

Common stock issued for
conversion of debt at $0.13
per share                        204,000       27,541          -            -

Common stock issued for
conversion of warrants at
$0.01 per share                    9,808           98          -            -

Common stock issued for
services at $0.16 per share      100,800       16,128          -            -
                              ----------  -----------  --------- ------------
Balance Forward               14,642,047  $21,711,434          - $          -
                              ----------  -----------  --------- ------------
</TABLE>
[CONTINUED]
<TABLE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
    Consolidated Statements of Stockholders' Equity (Deficit)
<CAPTION>
                                                      Deferred
                                Expenses Prepaid     Consulting  Accumulated
                               with common stock        Fees        Deficit
                               ------------------    ----------- ------------
<S>                          <C>                     <C>        <C>
Balance, March 31, 2002             $        -        $  (27,344)$(23,076,297)

Common stock issued for
conversion of accounts
payable at $0.08 per share                   -                 -            -

Common stock issued for
conversion of accounts
payable at $0.30 per share                   -                 -            -

Common stock issued for
conversion of accounts
payable at $0.07 per share                   -                 -            -

Common stock issued for
prepaid services at $0.05
per share                                    -           (27,500)           -

Common stock issued for
prepaid services at $0.07
per share                                    -            (7,000)           -

Common stock issued for
services at $0.07 per share                  -                 -            -

Cancelled common stock
previously issued for
services that had not been
performed                                    -                 -            -

Common stock issued for
conversion of debt at $0.13
per share                                    -                 -            -

Common stock issued for
conversion of warrants at
$0.01 per share                              -                 -            -

Common stock issued for
services at $0.16 per share                  -                 -            -

                                   -----------         --------- ------------
Balance Forward                    $         -         $ (61,844)$(23,076,297)
                                   -----------         --------- ------------
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
                               F-7
<PAGE>
<TABLE>
                 PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
     Consolidated Statements of Stockholders' Equity (Deficit) (Continued)
<CAPTION>
                                Common Shares             Preferred Shares
                              -----------------------   ---------------------
                               Shares      Amount         Shares     Amount
                              ----------  -----------   -------- ------------
<S>                          <C>           <C>        <C>        <C>
Balance Forward               14,642,047  $21,711,434          - $          -

Common stock issued for
conversion of warrants at
$0.01 per share                   10,500          105          -            -

Common stock issued for
extension of debt, valued
at an average of $0.17 per
share                            233,250       41,353          -            -

Common stock issued for
services at $0.16 per share       78,125       12,500          -            -

Common stock issued for
conversion of warrants at $0.01
per share                         13,055          131          -            -

Common stock issued for
conversion of warrants at
$0.01 per share                   10,500          105          -            -

Common stock issued for
prepaid services at $0.17
Per share                        304,500       51,765          -            -

Common stock issued for
conversion of accounts payable
at $0.07 per share               181,289       11,888          -            -

Options issued to Directors for
accrued Director's fees                -       45,000          -            -

Common stock issued for
services at $0.095 per share      90,000        8,550          -            -

Common stock issued for
services at $0.095 per share     153,125       14,547          -            -
                              ----------  -----------  --------- ------------
Balance Forward               15,716,391  $21,897,378          - $          -
                              ==========  ===========  ========= ============
</TABLE>
[CONTINUED]
<TABLE>
                 PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
     Consolidated Statements of Stockholders' Equity (Deficit) (Continued)
<CAPTION>
                                                      Deferred
                                Expenses Prepaid     Consulting  Accumulated
                               with common stock        Fees        Deficit
                               -----------------     ----------  ------------
<S>                          <C>                     <C>        <C>
Balance Forward                    $         -         $ (61,844)$(23,076,297)

Common stock issued for
conversion of warrants at
$0.01 per share                              -                 -            -

Common stock issued for
extension of debt, valued
at an average of $0.17 per
share                                        -                 -            -

Common stock issued for
services at $0.16 per share                  -                 -            -

Common stock issued for
conversion of warrants at $0.01
per share                                    -                 -            -

Common stock issued for
conversion of warrants at
$0.01 per share                              -                 -            -

Common stock issued for
prepaid services at $0.17
Per share                                    -           (51,765)           -

Common stock issued for
conversion of accounts payable
at $0.07 per share                           -                 -            -

Options issued to Directors for
accrued Director's fees                      -                 -            -

Common stock issued for
services at $0.095 per share                 -                 -            -

Common stock issued for
services at $0.095 per share                 -                 -            -
                                   -----------         --------- ------------
Balance Forward                    $         -         $(113,609)$(23,076,297)
                                   -----------         --------- ------------
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
                               F-8
<PAGE>
<TABLE>
                 PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
     Consolidated Statements of Stockholders' Equity (Deficit) (Continued)
<CAPTION>
                                Common Shares             Preferred Shares
                              ---------------------    ----------------------
                               Shares      Amount         Shares     Amount
                              ---------  ----------    ----------- ----------
<S>                          <C>           <C>        <C>        <C>
Balance Forward               15,716,391  $21,897,378          - $          -

Common stock issued for
services at $0.095 per share     130,000       12,350          -            -

Common stock issued for
conversion of debt at $0.10
per share                      1,290,000      129,000          -            -

Common stock issued for
cash at $0.10 per share          670,000       67,000          -            -

Common stock issued for
conversion of warrants at
$0.01 per share                   25,910          259          -            -

Amortization of deferred
consulting expense                     -            -          -            -

Net loss for the year ended
March 31, 2003                         -            -          -            -
                              ----------  -----------  --------- ------------
Balance, March 31, 2003       17,832,301   21,105,987          -            -
                              ----------  -----------  --------- ------------
Common stock issued for
extinguishment of debt and
interest at $0.09 per share       35,000        3,150          -            -

Options issued to directors for
accrued director's fees (Note 11)      -       17,857          -            -

Contribution of capital (Note 11)      -       27,143          -            -

Common Stock issued for
conversion of accounts payable
at $0.09 per share                11,111        1,000          -            -
                              ----------  -----------  --------- ------------
Balance Forward               17,878,412  $21,155,137          - $          -
                              ==========  ===========  ========= ============
</TABLE>
[CONTINUED]
<TABLE>
                 PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
     Consolidated Statements of Stockholders' Equity (Deficit) (Continued)
<CAPTION>
                                                      Deferred
                                Expenses Prepaid     Consulting  Accumulated
                               with common stock        Fees        Deficit
                               -----------------     ----------  -----------
<S>                          <C>                     <C>        <C>
Balance Forward                    $         -         $(113,609)$(23,076,297)

Common stock issued for
services at $0.095 per share                 -                 -            -

Common stock issued for
conversion of debt at $0.10
per share                                    -                 -            -

Common stock issued for
cash at $0.10 per share                      -                 -            -

Common stock issued for
conversion of warrants at
$0.01 per share                              -                 -            -

Amortization of deferred
consulting expense                           -           113,609            -

Net loss for the year ended
March 31, 2003                               -                 -     (454,163)
                                   -----------         --------- ------------
Balance, March 31, 2003                      -                 -  (23,530,460)
                                   -----------         --------- ------------
Common stock issued for
extinguishment of debt and
interest at $0.09 per share                  -                 -            -

Options issued to directors for
accrued director's fees (Note 11)            -                 -            -

Contribution of capital (Note 11)            -                 -            -

Common Stock issued for
conversion of accounts payable
at $0.09 per share                           -                 -            -
                                   -----------         --------- ------------
Balance Forward                    $         -         $       - $(23,530,460)
                                   -----------         --------- ------------
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
                               F-9
<PAGE>
<TABLE>
                 PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
     Consolidated Statements of Stockholders' Equity (Deficit) (Continued)
<CAPTION>
                                Common Shares             Preferred Shares
                          -------------------------    ----------------------
                               Shares      Amount         Shares     Amount
                          ----------    ------------   ---------  -----------
<S>                          <C>           <C>        <C>        <C>
Balance Forward           17,878,412    $22,137,280           -  $          -

Common stock issued to
related party for
conversion of accrued
interest at $0.10 per
share                       202,234          20,223           -             -

Common stock issued for
the conversion of
warrants at $0.01 per
share                        19,050             191           -             -

Repriced options granted
below market value                -           6,000           -             -

Options granted below
market value                      -           8,250           -             -

Preferred stock issued
for conversion of debt
at $1.00 per share                -               -       5,000         5,000

Preferred stock issued
for cash at $1.00 per
share                             -               -       5,000         5,000

Discount on preferred
stock                             -               -           -         2,500

Common stock issued for
extension of debt at
$0.10 per share              57,600           5,760           -             -

Common stock issued for
conversion of
debt at $0.10 per share     150,000          15,000           -             -

Common stock issued for
cash at $0.01 per share     150,000          15,000           -             -
                        -----------   -------------   ---------   -----------
Balance forward          18,457,296   $  22,225,561      10,000   $    12,500
                        -----------   -------------   ---------   -----------
</TABLE>
[CONTINUED]
<TABLE>
                 PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
     Consolidated Statements of Stockholders' Equity (Deficit) (Continued)
<CAPTION>
                                                      Deferred
                                Expenses Prepaid     Consulting  Accumulated
                               with common stock        Fees        Deficit
                               -----------------     ----------  -----------
<S>                          <C>                     <C>        <C>
Balance forward               $          -           $       -  $(23,530,460)

Common stock issued to
related party for
conversion of accrued
interest at $0.10 per                    -                   -             -

Common stock issued for
the conversion of
warrants at $0.01 per
share                                    -                   -             -

Repriced options granted
below market value                       -                   -             -

Options granted below
market value                             -                   -             -

Preferred stock issued
for conversion of debt
at $1.00 per share                       -                   -             -

Preferred stock issued
for cash at $1.00 per
share                                    -                   -             -

Discount on preferred
stock                                    -                   -        (2,500)

Common stock issued for
extension of debt at
$0.10 per share                          -                   -             -

Common stock issued for
conversion of
debt at $0.10 per share                  -                   -             -

Common stock issued for
cash at $0.01 per share                  -                   -             -
                               -----------           ---------   -----------
Balance forward                $         -           $          $(23,532,960)
                               -----------           ---------   -----------
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
                                F-10
<PAGE>
<TABLE>
                    PCS EDVENTURES!.COM, INC.
                        AND SUBSIDIARY
    Consolidated Statements of Stockholders' Equity (Deficit)(Continued)
<CAPTION>
                                   Common Shares           Preferred Shares
                         --------------------------    ----------------------
                              Shares        Amount      Shares       Amount
                         ----------   -------------    --------   -----------
<S>                       <C>           <C>         <C>         <C>
Balance forward          18,457,296   $  22,225,561      10,000   $    12,500

Common stock issued for
the conversion of
warrants at $0.01 per
share                         6,000              60           -             -

Common stock issued for
cash at $0.10 per share     550,000          55,000           -             -

Revaluation of repriced
and outstanding options           -            (500)          -             -

Common stock issued for
cash at $0.10 per share     200,000          20,000           -             -

Common stock issued for
the conversion of
warrants at $0.01 per
share                         6,000              60           -             -

Common stock issued for
cash at $0.10 per share     250,000          25,000           -             -

Common stock issued for
cash at $0.10 per share     200,000          20,000           -             -

Common stock issued for
the conversion of warrants
at $0.01 per share            3,000              30           -             -

Common stock issued for
cash at $0.10 per share     200,000          20,000           -             -

Common stock issued for
cash at $0.12 per share     200,000          24,000           -             -
                       ------------   -------------  ----------  ------------
Balance forward          20,072,296   $  22,389,211      10,000  $     12,500
                       ============   =============  ==========  ============
</TABLE>
[CONTINUED]
<TABLE>
                 PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
     Consolidated Statements of Stockholders' Equity (Deficit) (Continued)
<CAPTION>
                                                      Deferred
                                Expenses Prepaid     Consulting  Accumulated
                               with common stock        Fees        Deficit
                               -----------------   ------------  ------------
<S>                          <C>                <C>        <C>
Balance forward                $          -           $       -  $(23,532,960)

Common stock issued for
cash at $0.10 per share                   -                   -             -

Common stock issued for
the conversion of
warrants at $0.01 per
share                                     -                   -             -

Common stock issued for
cash at $0.10 per share                   -                   -             -

Common stock issued for
cash at $0.10 per share                   -                   -             -

Common stock issued for
the conversion of warrants
at $0.01 per share                        -                   -             -

Common stock issued for
cash at $0.10 per share                   -                   -             -

Common stock issued for
cash at $0.12 per share                   -                   -             -
                                 ----------          ----------  ------------
Balance forward                  $        -          $        -  $(23,532,960)
                                 ==========          ==========  ============
</TABLE>
                                F-11
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
<TABLE>
                    PCS EDVENTURES!.COM, INC.
                        AND SUBSIDIARY
    Consolidated Statements of Stockholders' Equity (Deficit)(Continued)
<CAPTION>
                                   Common Shares           Preferred Shares
                         --------------------------   -----------------------
                              Shares        Amount      Shares       Amount
                         ----------   -------------   ---------   -----------
<S>                       <C>           <C>         <C>         <C>
Balance forward          20,072,296   $  22,389,211      10,000   $    12,500

Common stock issued for
cash at $.012 per share     200,000          24,000           -             -

Common stock issued for
services and prepaid
services at $0.12           680,000          85,000           -             -

Common stock issued for
accrued interest at $0.12   103,207          12,385           -             -

Common stock issued for
accrued legal fees at $.012 106,384          12,766           -             -

Common stock issued for cash
at $0.12 per share          100,000          12,000           -             -

Common stock issued for cash
at $0.12 per share           75,000          15,000           -             -

Preferred stock issued for
cash at $1.00 per share           -               -      12,000        12,000

Discount on preferred stock       -               -           -         3,000

Common stock issued for cash
at $0.20 per share           50,000          10,000           -             -

Common stock issued for cash
at $0.20 per share           50,000          10,000           -             -
                         ----------     -----------   ---------  ------------
Balance forward          21,436,887     $22,570,362      22,000  $     27,500
                         ----------     -----------   ---------  ------------
</TABLE>
[CONTINUED]
<TABLE>
                 PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
     Consolidated Statements of Stockholders' Equity (Deficit) (Continued)
<CAPTION>
                                                      Deferred
                                Expenses Prepaid     Consulting  Accumulated
                               with common stock        Fees        Deficit
                               -----------------     ----------  ------------
<S>                          <C>                <C>        <C>
Balance forward                $          -           $       -  $(23,532,960)

Common stock issued for
cash at $.012 per share                   -                   -             -

Common stock issued for
services and prepaid
services at $0.12                   (67,292)                  -             -

Common stock issued for
accrued interest at $0.12                 -                   -             -

Common stock issued for
accrued legal fees at $.012               -                   -             -

Common stock issued for cash
at $0.12 per share                        -                   -             -

Common stock issued for cash
at $0.12 per share                        -                   -             -

Preferred stock issued for
cash at $1.00 per share                   -                   -             -

Discount on preferred stock               -                   -        (3,000)

Common stock issued for cash
at $0.20 per share                        -                   -             -

Common stock issued for cash
at $0.20 per share                        -                   -             -
                                -----------           ---------  ------------
Balance forward                 $  (67,292)           $       -  $(23,535,960)
                               -----------            ---------  ------------
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
                               F-12
<PAGE>
<TABLE>
                    PCS EDVENTURES!.COM, INC.
                        AND SUBSIDIARY
    Consolidated Statements of Stockholders' Equity (Deficit)(Continued)
<CAPTION>
                                   Common Shares           Preferred Shares
                         --------------------------    ----------------------
                              Shares        Amount      Shares       Amount
                         -----------    -----------    --------  ------------
<S>                       <C>           <C>         <C>         <C>
Balance forward          21,436,887     $22,570,362      22,000  $     27,500

Preferred stock issued
for conversion of debt
at $1.00 per share                -               -      11,614        11,613

Discount on preferred stock       -               -           -         2,903

Common stock issued for
conversion of preferred at
$0.20 per share              58,070          11,613     (11,614)      (11,613)

Preferred stock issued for
conversion of debt at $1.00
per share                         -               -      15,165        15,165

Discount on preferred stock       -               -           -         3,791

Preferred stock issued
for conversion of debt
at $1.00 per share                -               -      25,274        25,274

Discount on preferred stock       -               -           -        (2,527)

Common stock issued for
conversion of preferred at
$0.20 per share             126,375          25,274     (25,275)      (25,274)

Common stock issued for cash
at $0.12 per share          166,667          20,000           -             -

Preferred stock issued for
conversion of debt at $1.00
per share                         -               -      15,181        15,181

Discount on preferred stock       -               -           -         3,795

Common stock issued for cash
at $.125 per share          400,000          50,000           -             -

Preferred stock issued
for conversion of debt
at $1.00 per share                -               -      10,134        10,134

Common stock issued for
conversion of preferred at
$0.20 per share              50,670          10,134     (10,134)      (10,134)

Preferred stock issued for
conversion of debt at $1.00
per share                         -               -       5,069         5,069

Discount on preferred stock       -               -           -         1,267
                         ----------     -----------   ---------  ------------
Balance forward          22,238,669     $22,687,383      57,415  $     77,198
                         ----------     -----------   ---------  ------------
</TABLE>
[CONTINUED]
<TABLE>
                 PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
     Consolidated Statements of Stockholders' Equity (Deficit) (Continued)
<CAPTION>
                                                      Deferred
                                Expenses Prepaid     Consulting  Accumulated
                               with common stock        Fees        Deficit
                               -----------------    -----------  ------------
<S>                          <C>                <C>        <C>
Balance forward                $    (67,292)         $        -  $(23,535,960)

Preferred stock issued
for conversion of debt
at $1.00 per share                        -                   -             -

Discount on preferred stock               -                   -        (2,903)

Common stock issued for
conversion of preferred at
$0.20 per share                           -                   -             -

Preferred stock issued for
conversion of debt at $1.00
per share                                 -                   -             -

Discount on preferred stock               -                   -        (3,791)

Preferred stock issued
for conversion of debt
at $1.00 per share                        -                   -             -

Discount on preferred stock               -                   -        (2,527)

Common stock issued for
conversion of preferred at
$0.20 per share                           -                   -             -

Common stock issued for cash
at $0.12 per share                        -                   -             -

Preferred stock issued for
conversion of debt at $1.00
per share                                 -                   -             -

Discount on preferred stock               -                   -        (3,795)

Common stock issued for cash
at $0.125 per share                       -                   -             -

Preferred stock issued
for conversion of debt
at $1.00 per share                        -                   -             -

Common stock issued for
conversion of preferred at
$0.20 per share                           -                   -             -

Preferred stock issued for
conversion of debt at $1.00
per share                                 -                   -             -

Discount on preferred stock               -                   -        (1,267)
                                -----------           ---------  ------------
Balance forward                 $   (67,292)          $       -  $(23,550,243)
                                -----------           ---------  ------------
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
                               F-13
<PAGE>
<TABLE>
                    PCS EDVENTURES!.COM, INC.
                        AND SUBSIDIARY
    Consolidated Statements of Stockholders' Equity (Deficit)(Continued)
<CAPTION>
                                   Common Shares           Preferred Shares
                         --------------------------    ----------------------
                              Shares        Amount      Shares       Amount
                         -----------    -----------    --------  ------------
<S>                       <C>           <C>         <C>         <C>
Balance forward          22,238,669     $22,687,383      57,415  $     77,198

Common stock issued for
cash at $0.20 per share     125,000          25,000           -             -

Common stock issued for
cash at $.016 per share   1,562,500         250,000           -             -

Preferred stock issued for
conversion of debt at $1.00
per share                         -               -      10,154        10,154

Discount on preferred stock       -               -           -         2,538

Preferred stock issued for
conversion of debt at $1.00
per share                         -               -       5,092         5,092

Discount on preferred stock       -               -           -         1,273

Common stock issued for cash
at $0.20 per share           50,000          10,000           -             -

Preferred stock issued for
conversion of debt at $1.00
per share                         -               -      40,745        40,745

Discount on preferred stock       -               -           -         8,149

Common stock issued for
conversion of preferred at
$0.25 per share             203,730          40,745     (40,746)      (40,745)

Preferred stock issued for
conversion of debt at $1.00
per share                         -               -      10,189        10,189

Discount on preferred stock       -               -           -         2,547

Preferred stock issued for
conversion of debt at $1.00
per share                         -               -      10,195        10,195

Discount on preferred stock       -               -           -         2,039

Common stock issued for
conversion of debt at $0.25
per share                    50,975          10,195     (10,195)      (10,195)
                         ----------     -----------   ---------  ------------
Balance forward          24,230,874     $23,023,323      82,850  $    119,179
                         ----------     -----------   ---------  ------------
</TABLE>
[CONTINUED]
<TABLE>
                 PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
     Consolidated Statements of Stockholders' Equity (Deficit) (Continued)
<CAPTION>
                                                      Deferred
                                Expenses Prepaid     Consulting  Accumulated
                               with common stock        Fees        Deficit
                               -----------------     ----------  ------------
<S>                          <C>                <C>        <C>
Balance forward                $    (67,292)         $        -  $(23,550,243)

Common stock issued for
cash at $0.20 per share                   -                   -             -

Common stock issued for
cash at $.016 per share                   -                   -             -

Preferred stock issued for
conversion of debt at $1.00
per share                                 -                   -             -

Discount on preferred stock               -                   -        (2,538)

Preferred stock issued for
conversion of debt at $1.00
per share                                 -                   -             -

Discount on preferred stock               -                   -        (1,273)

Common stock issued for cash
at $0.20 per share                        -                   -             -

Preferred stock issued for
conversion of debt at $1.00
per share                                 -                   -             -

Discount on preferred stock               -                   -        (8,149)

Common stock issued for
conversion of preferred at
$0.25 per share                           -                   -             -

Preferred stock issued for
conversion of debt at $1.00
per share                                 -                   -             -

Discount on preferred stock               -                   -        (2,547)

Preferred stock issued for
conversion of debt at $1.00
per share                                 -                   -             -

Discount on preferred stock               -                   -        (2,039)

Common stock issued for
conversion of debt at $0.25
per share                                 -                   -             -
                                -----------           ---------  ------------
Balance forward                 $   (67,292)          $       -  $(23,566,789)
                                -----------           ---------  ------------
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
                               F-14
<PAGE>
<TABLE>
                    PCS EDVENTURES!.COM, INC.
                        AND SUBSIDIARY
    Consolidated Statements of Stockholders' Equity (Deficit)(Continued)
<CAPTION>
                                   Common Shares           Preferred Shares
                         --------------------------     ---------------------
                              Shares        Amount      Shares       Amount
                         ----------     -----------     -------  ------------
<S>                       <C>           <C>         <C>         <C>
Balance forward          24,230,874     $23,023,323      82,850  $    119,179

Pro-rata cumulative non-cash
preferred stock dividend          -               -           -         1,294

Net loss for the year
ended March 31, 2004              -               -           -             -
                         ----------     -----------   ---------  ------------
Balance, March 31, 2004  24,230,874     $23,023,323      82,850  $    120,473
                         ==========     ===========   =========  ============
</TABLE>
[CONTINUED]
<TABLE>
                 PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
     Consolidated Statements of Stockholders' Equity (Deficit) (Continued)
<CAPTION>
                                                      Deferred
                                Expenses Prepaid     Consulting  Accumulated
                               with common stock        Fees        Deficit
                               -----------------     ----------  -----------
<S>                          <C>                <C>        <C>
Balance forward                $    (67,292)         $        -  $(23,566,789)

Pro-rata cumulative non-cash
preferred stock dividend                  -                   -        (1,294)

Net loss for the year
ended March 31, 2004                      -                   -      (152,351)
                               ------------           ---------  ------------
Balance, March 31, 2004        $    (67,292)          $       -  $(23,720,434)
                               ============           =========  ============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
                               F-15
<PAGE>
<TABLE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
              Consolidated Statements of Cash Flows
<CAPTION>

                                                For the Years Ended
                                                     March 31,
                                                 2004             2003
<S>                                              <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES

 Net loss                                       $   (152,351)  $  (454,163)
 Adjustments to reconcile net loss to net cash
 used by operating activities:
  Depreciation                                        25,447        57,632
  Non-cash debt default additions                     52,625             -
  Amortization of debt offering and extension costs    5,460        24,654
  Amortization of debt discount                            -        58,195
  Amortization of expenses prepaid with common
    stock                                                  -       113,609
  Common stock issued for services                    30,474        75,100
  Intrinsic value of stock options issued for
    services                                          14,250             -
  Gain on settlement of debt                          (5,000)      (16,128)
 Changes in operating assets and liabilities:
  (Increase) decrease in accounts receivable        (104,185)        9,671
  (Increase) decrease in prepaid expenses             97,578      (103,662)
  (Increase) decrease in inventories                   2,073        (2,073)
  (Increase) decrease in deposits                     (5,750)        6,575
  Increase in accounts payable and
   accrued liabilities                                25,096        81,916
  Increase in interest payable                             -        11,652
  (Decrease) in unearned revenue                    (178,085)      (14,526)
                                                   ---------    ----------
   Net Cash Used by Operating Activities            (192,368)     (151,548)
                                                   ---------    ----------
CASH FLOWS FROM INVESTING ACTIVITIES

 Issuance of notes receivable                        (50,000)            -
 Deposit on distribution rights                      (45,000)            -
                                                   ---------    ----------
   Net Cash Used by Investing Activities             (95,000)            -
                                                   ---------    ----------
CASH FLOWS FROM FINANCING ACTIVITIES

 Increase (decrease) in cash overdraft                (8,053)      (36,669)
 Proceeds from related party notes                         -        27,000
 Payments to related party notes                           -       (20,000)
 Proceeds from notes payable                         450,898       680,866
 Payments on notes payable                          (675,447)     (546,263)
 Debt offering and extension costs                         -       (52,034)
 Proceeds from sales of preferred stock               17,000             -
 Proceeds from sales of common stock                 605,341       109,051
                                                   ---------    ----------
   Net Cash Provided by Financing Activities         389,739       161,951
                                                   ---------    ----------
INCREASE IN CASH                                     102,371        10,403

CASH AT BEGINNING OF YEAR                             11,449         1,046
                                                   ---------    ----------
CASH AT END OF YEAR                                $ 113,820    $   11,449
                                                   =========    ==========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
                               F-16
<PAGE>
<TABLE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
        Consolidated Statements of Cash Flows (Continued)

<CAPTION>
                                                For the Years Ended
                                                     March 31,
                                                 2004             2003
<S>                                              <C>            <C>
NON-CASH INVESTING AND FINANCING ACTIVITIES:

 Common stock issued for services               $    30,474      $    75,100
 Common stock issued for conversion of notes
  payable and interest                          $    53,370      $   156,541
 Common stock issued for conversion of accounts
  payable                                       $     4,000      $    38,027
 Common stock issued for conversion of preferred
  stock                                         $    97,961      $         -
 Options issued to directors for accrued
  directors fees                                $    45,000      $    45,000
 Preferred stock issued as consideration for
  notes payable                                 $   166,124      $         -

Cash Paid For:

 Interest                                       $   115,975      $    97,057
 Income taxes                                   $         -      $         -
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
                               F-17
<PAGE>
              PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003

NOTE 1 -  ORGANIZATION AND DESCRIPTION OF BUSINESS

The consolidated financial statements presented are those of PCS
Edventures!.COM, Inc., an Idaho Corporation, and its wholly-owned subsidiary,
PCS Schools, Inc., an Idaho corporation (collectively, "the Company").

On August 3, 1994, PCS Edventures!.COM, Inc., was incorporated under the laws
of Idaho to engage in web-based and site-licensable educational products.

In October 1994, an agreement was authorized allowing the Company to exchange,
on a one-for-one basis, common stock for stock of PCS Schools, Inc.  As a
result of this agreement, PCS Schools, Inc., became a wholly-owned subsidiary
of the Company.

On March 27, 2000, the Company changed its name from PCS Education Systems,
Inc. to PCS Edventures!.COM, Inc.

NOTE 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a.  Accounting Method

The Company's consolidated financial statements are prepared using the accrual
method of accounting.  The Company has elected a March 31 year end.

b.  Estimates

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 disclosure of
contingent 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.

b.  Revenue Recognition

The Company recognizes revenues as required by Staff Accounting Bulletin No.
101 "Revenue Recognition in Financial Statements".

Lab Revenue

The Company recognizes revenues relating to sales of the Academy of
Engineering (AOE) and Edventures! labs as they are delivered to the customers.
Binding purchase orders, typically from school districts, are recorded upon
receipt as accounts receivable, with an offsetting amount recorded as unearned
revenue. Revenue is only recognized once the product has been delivered to the
customer and all other obligations have been met. All product inventory is
purchased on a sale-by-sale  basis,  and  is  shipped  directly  from  third-
party  suppliers  to  the end

                               F-18
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003


NOTE 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

b.  Revenue Recognition (Continued)

Lab Revenue (Continued)

customer. Accordingly, all costs associated  with  the  purchase  of product
inventory are also deferred until the product is delivered.  As of March 31,
2004, the Company has recorded unearned revenues and deferred costs of
$204,404 and $0, respectively.

Licensing Revenue

The Company recognizes revenues relating to the AOE lab and the Edventures!
lab site licenses over the 1-year term of the license beginning when the
physical lab equipment and the license has been delivered.  Subsequent sales
of AOE or Edventures! lab licenses are recorded on the sale of the license and
recognized over a 1 year time period to revenue.  Each lab license is for a
period of 1 year from the date of the renewal.

Subscription Revenue

The Company recognizes revenues relating to the subscriptions sold to their
edventures.com website on a monthly basis.  Revenues relating to other
activities such as education services delivered are recognized when the
services are rendered.  If a customer decides to discontinue the use of the
products, the customer must return all of the information received except for
the physical lab equipment.  Additionally, the customer will not have access
to the license when the contract is terminated.  The Company does not have an
obligation to refund any portion of the proceeds received for either the sale
of the AOE lab license or the subsequent renewals of the licenses.

d. Principles of Consolidation

The accompanying consolidated financial statements consolidate the accounts of
the parent company and its wholly-owned subsidiary.  All significant inter-
company accounts and transactions have been eliminated in consolidation.

e. Provision for Income Taxes

Deferred taxes are provided on a liability method whereby deferred tax assets
are recognized for deductible temporary differences and operating loss and tax
credit carryforwards and deferred tax liabilities are recognized for taxable
temporary differences. Temporary differences are the differences between the
reported amounts of assets and liabilities and their tax bases.  Deferred tax
assets are reduced by a valuation allowance when, in the opinion of
management, it is more likely that not that some portion or all of the
deferred tax assets will not be realized.  Deferred tax assets and liabilities
are adjusted for the effects of changes in tax laws and rates on the date of
enactment.
                               F-19
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003


NOTE 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

e. Provision for Income Taxes (Continued)

Net deferred tax assets consist of the following components as of March 31,
2004, and 2003:

                                                    2004           2003

       Deferred tax assets:
          NOL Carryover                             $ 2,981,523   $3,012,800

       Deferred tax liabilities:                              -            -

       Valuation allowance                           (2,981,523)  (3,012,800)
                                                    -----------  -----------
       Net deferred tax asset                       $         -  $         -
                                                    ===========  ===========

The income tax provision differs from the amount of income tax determined by
applying the U.S. federal income tax rate of 39% to pretax income from
continuing operations for the years ended March 31, 2004 and 2003 due to the
following:


                                                    2004          2003


       Book loss                                       $(59,420) $(177,124)
       Stock for services/options expense                19,233     73,596
       Penalties                                         27,365     10,716
       Other                                               (673)    12,797
       NOL utilization                                   13,495          -
       Valuation allowance                                    -     80,015
                                                       --------  ---------
                                                       $      -  $       -
                                                       ========  =========

At March 31, 2004, the Company had net operating loss carryforwards of
approximately $7,600,000 that may be offset against future taxable income from
the year 2004 through 2024.  No tax benefit has been reported in the March 31,
2004 consolidated financial statements since the potential tax benefit is
offset by a valuation allowance of the same amount.

Due to the change in ownership provisions of the Tax Reform Act of 1986, net
operating loss carryforwards for Federal income tax reporting purposes are
subject to annual limitations.  Should a change in ownership occur, net
operating loss carryforwards may be limited as to use in future years.

                               F-20
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

f. Debt Offering Costs

Debt offering costs are related to private placements in 2001, and have been
amortized on a straight line basis over the term of the related debt.
Amortization expense related to these costs was $11,622 in 2003 and were fully
amortized as of March 31, 2003.

g. Debt Extension Costs

As the 2001 private placement units came due, the Company entered into debt
extension agreements with most of the individual debt holders.  Per the terms
of the extension agreements, each unit, of $1,000 each, would be extended for
one year in exchange for 500 shares of common stock.  In total, 233,250 shares
of common stock, valued at $41,353, were issued to extend $491,500 of debt.
The Company also incurred administrative fees of $9,830 related to the
extensions.  The combined value of the common stock and administrative fees
has been capitalized and amortized over the term of the one-year extensions.
During the year ended March 31, 2004 and 2003, the Company amortized $5,460
and $46,573, respectively.  These costs are fully amortized as of March 31,
2004.

h. Basic Loss Per Share

The computation of basic loss per share of common stock is based on the
weighted average number of shares outstanding during the period of the
financial statements.  Diluted loss per share is equal to basic loss per share
as the result of the antidilutive nature of the stock equivalents.  The
Company has excluded 4,497,867 potential common stock equivalents from the
calculation of basic loss per share.


                                             For the Years Ended
                                                     March 31,
                                                  2004       2003

       Basic loss per share from operations:
       Numerator - loss                        $(152,351)  $(454,163)
       Denominator - weighted average number
         of shares outstanding                19,447,429  15,284,032
                                              ----------  ----------
       Loss per share                         $    (0.01)$     (0.03)
                               F-21
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003

NOTE 2 -   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

i. Newly Issued Accounting Pronouncements

During the year ended March 31, 2004, the Company adopted the following
accounting pronouncements:

SFAS No. 149 -- In April 2003, the FASB issued SFAS No. 149, "Amendment of
Statement 133 on Derivative Instruments and Hedging Activities" which is
effective for contracts entered into or modified after June 30, 2003 and for
hedging relationships designated after June 30, 2003.  This statement amends
and clarifies financial accounting for derivative instruments embedded in
other contracts (collectively referred to as derivatives) and hedging
activities under SFAS 133.  The adoption of SFAS No. 149 did not have a
material effect on the financial statements of the Company.

SFAS No. 150 -- In May 2003, the FASB issued SFAS No. 150, "Accounting for
Certain Financial Instruments with Characteristics of both Liabilities and
Equity" which is effective for financial instruments entered into or modified
after May 31, 2003, and is otherwise effective at the beginning of the first
interim period beginning after June 15, 2003.  This Statement establishes
standards for how an issuer classifies and measures in its statement of
financial position certain financial instruments with characteristics of both
liabilities and equity. It requires that an issuer classify a financial
instrument that is within its scope as a liability (or an asset in some
circumstances) because that financial instrument embodies an obligation of the
issuer. The adoption of SFAS No. 150 did not have a material effect on the
financial statements of the Company.

FASB Interpretation No. 46 -- In January 2003, the FASB issued FASB
Interpretation No. 46 "Consolidation of Variable Interest Entities." FIN 46
provides guidance on the identification of entities for which control is
achieved through means other than through voting rights, variable interest
entities, and how to determine when and which business enterprises should
consolidate variable interest entities. This interpretation applies
immediately to variable interest entities created after January 31, 2003. It
applies in the first fiscal year or interim period beginning after June 15,
2003, to variable interest entities in which an enterprise holds a variable
interest that it acquired before February 1, 2003. The adoption of FIN 46 did
not have a material impact on the Company's financial statements.
                               F-22
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003


NOTE 2 -   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

i.     Newly Issued Accounting Pronouncements (Continued)

During the year ended March 31, 2004, the Company adopted the following
Emerging Issues Task Force Consensuses:  EITF Issue No. 00-21 "Revenue
Arrangements with Multiple Deliverables", EITF Issue No. 01  8 " Determining
Whether an Arrangement Contains a Lease", EITF Issue No. 02-3 "Issues Related
to Accounting for Contracts Involved in Energy Trading and Risk Management
Activities", EITF Issue No. 02-9 "Accounting by a Reseller for Certain
Consideration Received from a Vendor", EITF Issue No. 02-17,  "Recognition of
Customer Relationship Intangible Assets Acquired in a Business Combination",
EITF Issue No. 02-18 "Accounting for Subsequent Investments in an Investee
after Suspension of Equity Method Loss Recognition", EITF Issue No. 03-1, "The
Meaning of Other Than Temporary and its Application to Certain Instruments",
EITF Issue No. 03-5, "Applicability of AICPA Statement of Position 9702,
'Software Revenue Recognition' to Non-Software Deliverables in an Arrangement
Containing More Than Incidental Software", EITF Issue No. 03-7, "Accounting
for the Settlement of the Equity Settled Portion of a Convertible Debt
Instrument That Permits or Requires the Conversion Spread to be Settled in
Stock", EITF Issue No. 03-10, "Application of EITF Issue No. 02-16 by
Resellers to Sales Incentives Offered to Consumers by Manufacturers.

j.     Stock Options

As permitted by FASB Statement 148 "Accounting for Stock Based Compensation
Transition and Disclosure" (SFAS No. 148), the Company elected to measure and
record compensation cost relative to employee stock option costs in accordance
with Accounting Principles Board ("APB") Opinion 25, "Accounting for Stock
Issued to Employees", and related interpretations and make proforma
disclosures of net income and earnings per share as if the fair value method
of valuing stock options granted to employees when the option price is less
that the market price of the underlying common stock on the date of grant.

k.     Property and Equipment

Property and equipment are recorded at cost and being depreciated for
financial accounting purposes on the straight-line method over their
respective estimated useful lives ranging from five to seven years.  Upon
retirement or other disposition of these assets, the cost and related
accumulated depreciation are removed from the accounts and the resulting gains
or losses are reflected in the results of operations.

Expenditures for maintenance and repairs are charged to operations.  Renewals
and betterments are capitalized.  Depreciation of leased equipment under
capital leases is included in depreciation.

                               F-23
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003

NOTE 3 -   FIXED ASSETS

Assets and depreciation for the period are as follows:

                                                               March 31,
                                                                 2004

        Computer equipment                                  $     343,093
        Office equipment                                           54,638
        Education assets and software                             278,885
        Accumulated depreciation                                 (676,616)
                                                            -------------
            Total Fixed Assets                              $           -
                                                            =============

Depreciation expense for the years ended March 31, 2004 and 2003 was $25,447
and $57,632, respectively.

NOTE 4 - COMMON AND PREFERRED STOCK TRANSACTIONS

a.      Common Stock

During the year ended March 31, 2003, the Company received $698 in exchange
for the conversion of 69,773 warrants into an equivalent number of common
stock at $0.01 per share.

During the year ended March 31, 2003, the Company issued 233,250 shares of
common stock in exchange for one-year extension agreements related to the 2001
private placement.  The share were valued at an average of $0.17 per share.

During the year ended March 31, 2003, the Company sold 670,000 shares of
common stock for $0.10 per share.

During the year ended March 31, 2003, the Company issued 494,706 shares of
common stock in exchange for accounts payable valued at $38,027.

During the year ended March 31, 2003, the Company issued 1,494,000 shares of
common stock in exchange for notes payable valued at $156,541.

During the year ended March 31, 2003, the Company issued 1,629,050 shares of
common stock in exchange for services valued at $161,365.

During the year ended March 31, 2004, the Company received $341 in exchange
for the conversion of 34,050 in warrants at $0.01 per share.

During the year ended March 31, 2004, the Company issued 57,600 shares of
common stock in exchange for a one-year extension agreement related to the
2001 private placement.  The shares were valued at $0.10 per share, or $5,760.

During the year ended March 31, 2004, the Company sold 4,529,167 shares of
common stock for cash of $653,000, or an average price of $0.12 per share.
                               F-24
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003


NOTE 4 - COMMON AND PREFERRED STOCK TRANSACTIONS (Continued)

a.      Common Stock (Continued)

During the year ended March 31, 2004, the Company issued 46,111 shares of
common stock in exchange for accounts payable valued at $4,150, or an average
of $0.09 per share.

During the year ended March 31, 2004, the Company issued 150,000 shares of
common stock for conversion of $15,000 in notes payable or $0.10 per share.

During the year ended March 31, 2004, the Company issued 786,384 shares of
common stock in exchange for services valued at $30,474, or an average of
$0.04 per share.

During the year ended March 31, 2004, the Company issued 305,441 shares of
common stock for accrued interest payable to a related party in the amount of
$34,220, or an average of $0.11 per share.

During the year ended March 31, 2004, the Company issued 489,820 shares of
common stock for the conversion of 97,964 shares of preferred stock at $0.20
per share.

b.      Preferred Stock

On September 4, 2003, the Company amended its articles of incorporation to
establish a preferred class of stock.  Under the amendment, 10,000,000 shares
of the preferred stock have been authorized.  The preferred shares are
convertible into shares of common stock at a 20% discount and have a $0.25 cap
on the conversion price.  The Company has reserved the option to convert the
shares into common stock at any point that the average trading price of the
Company's common stock for the previous 30 days exceeds to $0.50.

The Company recognized a total of $20,712 as beneficial conversion feature on
the issuance of preferred stock during 2004 as a result of the ability to
convert into common stock at a 20% discount.  The beneficial conversion
feature has been charged directly to accumulated deficit.

The convertible preferred shares also include a cumulative 10% per annum non-
cash dividend, which at March 31, 2004 amounted to $1,294 and has been charged
directly to accumulated deficit.

During the year ended March 31, 2004, the Company sold 17,000 shares of
preferred stock for cash of $17,000, or $1.00 per share.

During the year ended March 31, 2004, the Company issued 163,814 shares of
preferred stock for conversion of $161,500 in notes payable and $2,310 in
accrued interest, or $1.00 per share.

                               F-25
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003

NOTE 5 - NOTES PAYABLE - RELATED PARTIES

Notes payable - related parties consisted of the following at March 31, 2004:

Notes payable to the President bearing interest
 at 10% per annum, all unpaid principal and
 interest due on demand                                        $ 165,882
                                                               ---------
            Total Notes Payable   Related Parties              $ 165,882
                                                               =========
NOTE 6 -   NOTES PAYABLE

Notes payable consisted of the following at March 31, 2004:

Notes payable related to private placement memorandum
 bearing interest at 8.00% per annum, with payments due
 April 6, 2002, through August 29, 2004, $141,500 past due     $ 217,000

Notes payable to four unrelated individuals bearing interest
 at 8.0% to 11.2% per annum, with payment due within
 one year, unsecured                                              26,665

Line of credit with a bank bearing interest at 13.99%
 per annum, unsecured                                             41,062

Line of credit with a bank bearing interest at 7.0%
 per annum, past due, unsecured                                   26,549

Line of credit with a financing institution with varying
 interest charges, due periodically (generally monthly),
 secured by assets and specific receivables                       38,534
                                                               ---------
               Total Notes Payable                             $ 349,810
                                                               =========
All notes payable are considered to be current.

NOTE 7 -       GAIN ON SETTLEMENT OF DEBT

On June 18, 2002, the Company reached a settlement agreement with a financial
institution whereby the Company agreed to pay $20,000 in full satisfaction of
a $28,308 debt, which included principal and interest of $25,208 and $3,100,
respectively.  The difference of $8,308 was recorded as a gain on settlement
of debt.  The $20,000 obligation was paid-in-full as of March 31, 2003.

On March 3, 2003, the Company reached a settlement agreement with a company to
settle a $25,820 debt in exchange for a new promissory note for $18,000.  The
promissory note does not accrue interest and is payable in monthly
installments of $750 until the balance is paid-in-full.  The difference of
$7,820 was recorded as a gain on settlement of debt.  The debt is now again in
default and has been classified as an accrued liability (See Note 14)
                               F-26
<PAGE>

             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003

NOTE 7 - GAIN ON SETTLEMENT OF DEBT (Continued)

During 2004, a $5,000 payable dating back over three years and in dispute, was
forgiven by the vendor.

NOTE 8 - COMMITMENTS AND CONTINGENCIES

Operating Lease Obligation

The Company leases its office under a non-cancelable lease agreement accounted
for as an operating lease.  The lease expires in March 2008.

Minimum rental payments under the non-cancelable operating lease is as
follows:

            Years ending
               March 31,                                         Amount
                  2005                                           $ 75,500
                  2006                                             81,500
                  2007                                             87,500
                  2008                                             85,250
                  2009                                                  -
                                                                ---------
           Total                                                $ 329,750
                                                                =========

Rent expense was $69,500 and $74,132 for the years ended March 31, 2004 and
2003, respectively.

Litigation

Warren Black v. PCS - On January 18, 2002, Warren Black, a former independent
contractor for the Company, filed a complaint against the Company alleging
breach of contract.  Mr. Black sought the return of certain software products
that he claimed to have provided the Company during his employment, or their
monetary equivalent, which he claimed to be $15,000.  The Company settled this
action in February 2003. Per the terms of the settlement agreement, the
Company agreed to issue Mr. Black a $6,000 note in full satisfaction of his
claim.  The note payable was paid in four quarterly installments of $1,500
during 2004.

Key Bank v. PCS and Maher - On March 26, 2002, Key Bank, filed a complaint
against the Company seeking recovery of $25,208 and accrued interest alleged
to be owed by the Company on a promissory note executed by the Company and
guaranteed by Anthony A. Maher, the Company's President and CEO.  The Company
settled this claim on June 18, 2003, in exchange for $20,000 in cash.  As of
March 31, 2003, the settlement was paid-in-full and the difference of $8,308
was recorded as a gain on settlement of debt during 2003.

During March 2004, the Company received a notice of default from the attorneys
for Xerox Capital Services, LLC (Xerox), in which Xerox assets that the
Company is in default on two lease agreements and a promissory note in the
amount of $88,242.
                               F-27
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003


NOTE 8 - COMMITMENTS AND CONTINGENCIES (Continued)

Litigation (Continued)

The Company does not dispute this amount, has included this balance in accrued
expenses (See Note 14) and is attempting to settle the debt.

NOTE 9 -   GOING CONCERN

The Company's consolidated financial statements are prepared using generally
accepted accounting principles applicable to a going concern which
contemplates the realization of assets and liquidation of liabilities in the
normal course of business.  However, the Company does not have significant
cash or other material assets, nor does it have an established source of
revenues sufficient to cover its operating costs.  Additionally, the Company
has accumulated significant losses, has negative working capital, and a
deficit in stockholders' equity.  All of these items raise substantial doubt
about its ability to continue as a going concern.  Management's plans with
respect to alleviating the adverse financial conditions that caused you to
express substantial doubt about the Company's ability to continue as a going
concern are as follows:

During the fiscal year ending March 2004, the Company added depth to one of
its most popular product lines, the PCS Brick Lab, introducing the Brick Lab
Grade Series for Grades 1   2 with plans to introduce Grades 3   4 during
fiscal year 2005 and Grades 5   6 during fiscal year 2006.  The Company has
also entered into a distribution agreement which will complement its
engineering curriculum and labs.  In addition to widening and deepening its
product mix, the Company has also entered into agreements with independent
sales agency groups which the Company believes will provide better market
penetration and coverage.  In addition, the Company intends to continue
offering its common stock to raise and additional capital necessary to cover
operating expenses and its cost containment strategy, not investing
significant amounts of capital to research and development.

The ability of the Company to continue as a going concern is dependent upon
its ability to successfully accomplish the plan described in the preceding
paragraph and eventually attain profitable operations.  The accompanying
consolidated financial statements do not include any adjustments that might be
necessary if the Company is unable to continue as a going concern.

NOTE 10 -  DILUTIVE INSTRUMENTS

a.  Stock Options

SFAS No. 148,  requires the Company to provide pro forma information regarding
net loss and net loss per share as if compensation costs for the Company's
stock option plans and other stock awards had been determined in accordance
with the fair value based method prescribed in SFAS No. 148.  The current year
pro forma net loss includes $13,722 of prior year option expense amortization.
The Company estimates the fair value of each stock award at the grant date by
using the Black-Scholes option pricing model with the following weighted
average assumptions used for grants, respectively; dividend yield of zero
percent for all years; expected volatility of 84% to 163% percent for all
years; risk-free interest rates of 3% to 6%, and expected lives of 3 to 10
years.

                                              For the Years Ended
                                                     March 31,
                                                2004          2003


        Net loss:
           As reported                     $ (152,351)  $ (454,163)
           Pro Forma                         (272,508)    (653,702)

        Net loss per share:
           As reported                     $    (0.01)  $    (0.03)
           Pro Forma                            (0.01)       (0.04)

                               F-28
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003


NOTE 10 -  DILUTIVE INSTRUMENTS (Continued)

       a.  Stock Options (Continued)

       The Company has granted the following options as of March 31, 2004:

                     Date of    Exercise  Exercise      Amount
        Description   Grant      Number    Price      Exercised

   1) Consultant     9-20-00    200,000  $     0.50        0
   2) Employees      9-01-00     25,000  $     0.75        0
   3) Director      01-05-01     25,000  $     0.75        0
   4) Employee      10-24-01     50,000  $     0.30        0
   5) Employee      12-01-01     24,230  $     0.15        0
   6) Board Members 12-10-01  1,000,000  $     0.30        0
   7) Board Members 06-03-02  1,000,000  $     0.16        0
   8) Employees     07-01-02    335,000  $     0.16        0
   9) Employee      07-15-02     15,000  $     0.16        0
  10) Employee      08-15-02      5,000  $     0.16        0
  11) Board Members 10-21-02    499,998  $     0.09        0
  12) Board Members 05-15-03    892,855  $     0.07        0
  13) Employee      05-20-03    100,000  $     0.07        0
  14) Employee      07-25-03     25,000  $     0.10        0
  15) Employee      09-05-03    150,000  $     0.07        0
                              ---------
                              4,347,083
                              =========

                                    Risk-Free
                        Fair        Interest    Expected   Expected
      Description       Value         Rate        Life    Volatility

   1) Consultant    $    0.42         6.15%       3.00      89.37%
   2) Employees     $    0.52         6.21%       3.00      85.69%
   3) Employees     $    0.52         6.21%       3.00      84.39%
   4) Employees     $    0.19         3.76%       3.00     100.52%
   5) Employee      $    0.14         3.76%       3.00      99.80%
   6) Board Members $    0.20         3.76%      10.00      99.80%
   7) Board Members $    0.15         5.69%      10.00     128.9%
   8) Employee      $    0.14         5.48%       3.50     157.77%
   9) Employee      $    0.14         2.84%       3.50     152.96%
  10) Employee      $    0.14         2.84%       3.30     163.77%
  11) Board Members $    0.09         2.84%      10.00     158.83%
  12) Board Members $    0.09         3.94%      10.00     151.61%
  13) Employee      $    0.06         3.94%       4.00     151.61%
  14) Employee      $    0.12         2.81%       4.00     156.24%
  15) Employee      $    0.11         2.81%       4.00     152.03%

                               F-29
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003

NOTE 10 - DILUTIVE INSTRUMENTS (Continued)

a.       Stock Options (Continued)

On May 15, 2003, the Company authorized and issued 892,855 options to Board
Members as payment for accrued directors fees.  These options vested
immediately and have an exercise price of $0.07 per share.  The options were
determined to have a fair value of $0.09 per share using the Black-Scholes
valuation model.  The intrinsic value of the shares of $0.02 per share, or
$17,857, was recorded as an offset to the accrued liability with the net
balance of 27,143 being applied to equity as contribution to captial.  The
granting of these options resulted in a $61,545 increase in pro forma net loss
of  the Company.

On May 20, 2003, the Company authorized and issued 100,000 options to an
employee.  These options vest over three years and have an exercise price of
$0.07 per share.  The options were determined to have a fair value of $0.06
per share using the Black-Scholes valuation model, there was no intrinsic
value expense associated with the issuance of these options. The granting of
these options resulted in a $5,725 increase in pro forma net loss of  the
Company.

On July 15, 2003, the Company authorized and issued 200,000 and 50,000 options
to a director and an employee, respectively, as repriced options replacing
previously issued options cancelled immediately prior to the new issuance.
These options vest over three years and have an exercise price of $0.10 per
share.  The options were initially determined to have an intrinsic value of
$0.02 per share and a fair value of $0.11 per share using the Black-Scholes
valuation model.  As such, the Company recognized $5,000 of expense and a
$21,949 increase in pro-forma net loss.  Based on the provisions of FIN 44:
Accounting for Certain Transactions Involving Stock Compensation, and APB
Opinion 25: Accounting for Stock Issued to Employees, these options are to be
accounted for as variable options and as such, were revalued as of September
30, 2003.  As the intrinsic value of the options remained unchanged as of the
date of revaluation, there was no change to the recorded expense related to
the options.  The Black-Scholes value of the shares decreased by $264, and as
such, the pro-forma effect of the options was reduced to $21,685.  These
options were cancelled by the Company during December 2003.

On July 25, 2003, the Company authorized and issued 25,000 options to an
employee as repriced options replacing previously issued options cancelled
immediately prior to the new issuance.  These options vest over three years
and have an exercise price of $0.10 per share.  The options were initially
determined to have an intrinsic value of $0.03 per share and a fair value of
$0.12 per share using the Black-Scholes valuation model.  As such, the Company
recognized $750 of current period expense and a $2,183 increase in pro-forma
net loss.  Based on the provisions of FIN 44: Accounting for Certain
Transactions Involving Stock Compensation, and APB Opinion 25: Accounting for
Stock Issued to Employees, these options are to be accounted for as variable
options and as such, were revalued as of September 30, 2003.  As a result of
the revaluation, there was a $250 decrease in the intrinsic value of the
options and a corresponding decrease in the recorded expense.  The Black-
Scholes value of the shares decreased by $264, and as such, the pro-forma
effect of the options was reduced to $1,669.  These options were cancelled by
the Company during December 2003.

                               F-30
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003


NOTE 10 -DILUTIVE INSTRUMENTS (Continued)

a.      Stock Options (Continued)

On July 25, 2003, the Company authorized and issued 25,000 options to an
employee.  These options vest over three years and have an exercise price of
$0.10 per share.  The options were initially determined to have an intrinsic
value of $0.03 per share and a fair value of $0.12 per share using the Black-
Scholes valuation model.  As such, the Company recognized $750 of current
period expense and a $2,183 increase in pro-forma net loss.

On September 1, 2003, the Company authorized and issued 50,000 options to an
employee as repriced options replacing previously issued options cancelled
immediately prior to the new issuance.  These options vest over three years
and have an exercise price of $0.12 per share.  The options were initially
determined to have an intrinsic value of $0.005 per share and a fair value of
$0.11 per share using the Black-Scholes valuation model.  As such, the Company
recognized $250 of current period expense and a $5,019 increase in pro-forma
net loss.  Based on the provisions of FIN 44: Accounting for Certain
Transactions Involving Stock Compensation, and APB Opinion 25: Accounting for
Stock Issued to Employees, these options are to be accounted for as variable
options and as such, were revalued as of September 30, 2003.  As the intrinsic
value of the options remained unchanged as of the date of revaluation, there
was no change to the recorded expense related to the options.  The Black-
Scholes value of the shares increased by $3, and as such, the pro-forma effect
of the options was increased to $4,772.  These options were cancelled by the
Company during December 2003.


On September 5, 2003, the Company authorized and issued 150,000 options to an
employee.  These options vest over three years and have an exercise price of
$0.07 per share.  The options were determined to have an intrinsic value of
$0.05 per share and a fair value of $0.11 per share using the Black-Scholes
valuation model.  As such, the Company recognized $7,500 of current period
expense and a $8,856 increase in pro-forma net loss.

b.  Warrants

During the year ended March 31, 2002, the Company issued warrants allowing the
holders to purchase 263,607 shares of the Company's common stock.  The
warrants were issued in conjunction with the private placement memorandum and
are exercisable at a price of $0.01 per share for two years.  The fair value
of the warrants as determined by Black Scholes was $191,634 and was recorded
as debt discount.  The discount was fully amortized as of March 31, 2003.

During the year ended March 31, 2003, 69,773 of these warrants were exercised
and converted into an equivalent number of common shares in exchange for $698
in cash.

During the year ended March 31, 2004, an additional 34,050 of these warrants
were exercised in exchange for $340 in cash.

                               F-31
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003

NOTE 11 -RELATED PARTY TRANSACTIONS

During the year ended March 31, 2003, three members of the Company's board of
directors acted as guarantors on a promissory note that provided the Company
$60,600 in financing.  This note was paid in full during 2004.

During the year ended March 31, 2003, the Company repaid  debt owed to
officers of the Company of $20,000.

During the year ended March 31, 2003, the Company borrowed $27,000 from the
President of the Company.

On October 21, 2002, the Company authorized and issued options to purchase
499,998 shares of common stock to Board Members as payment for accrued
directors fees totaling $45,000.  These options vested immediately and have an
exercise price of $0.09 per share.  This payment covered all directors fees
incurred for the year ended March 31, 2002.  As of March 31, 2003, the Company
still owes these directors $45,000 for services rendered during the year ended
March 31, 2003.

On May 15, 2003, the Company authorized and issued options to purchase 892,855
shares of common stock to Board Members as payment of $45,000 in accrued
director fees.  The intrinsic value of these options was $17,857, while the
difference, $27,143, was treated as contributed capital from extinguishment of
related party debt.

During 2004, the Company issued 305,441 shares of common stock to the
Company's President in payment of $32,608 in accrued interest.  The stock was
valued at the market price of the stock on the dates of conversion, or an
average of $0.11 per share.

NOTE 12 - NOTE RECEIVABLE

During March 2004, the Company entered into a Letter of Intent to purchase a
company (Acquiree) which never came to fruition.  As a result of this Letter
of Intent, the Company lent the Acquiree $50,000 under a short-term note.  The
note was due upon demand and accrued interest at a rate of 1.5% per month.
During April 2004, the Company collected the entire principle and interest
amounts on this note.

NOTE 13 - DEPOSIT ON DISTRIBUTION RIGHTS

During February and March 2004, the Company lent a company (Borrower) a total
of $45,000 in the form of four notes.  The notes are due May 6, 2004 and
accrue interest at a rate of 1.0% per month.  The notes are intended to be
used as deposits on the acquisition of distribution rights held by Borrow of
certain educational materials in the United States and Canada.  As the formal
assignment of these rights has not occurred, the notes are being shown as
other non-current assets at March 31, 2004.

                               F-32
<PAGE>
             PCS EDVENTURES!.COM, INC. AND SUBSIDIARY
          Notes to the Consolidated Financial Statements
                     March 31, 2004 and 2003


NOTE 14 - ACCRUED EXPENSES

Accrued expenses are made up of the following at March 31, 2004:

        Accrued directors fees                                 $   45,000
        Accrued lease payments payable                             88,242
        Accrued stock payable                                      75,000
        Credit card and other miscellaneous payables               48,576
                                                               ----------
            Total                                              $  256,818
                                                               ==========
NOTE 15 - SUBSEQUENT EVENTS

During April 2004, the Company collected the entire principle and interest
amounts on a $50,000 note receivable.

During April 2004, the Board of Directors authorized the President of the
Company to issue up to 30,000 shares of common stock for services to an
individual.

During April 2004, the Board of Directors authorized the issuance of options
to purchase 150,000 shares of common stock at a price of $0.15 per share to a
new board member as compensation.

During April 2004, the Board of Directors authorized the Company's 2004 non-
qualified stock option plan.

During April 2004, the Company entered into a consulting agreement for
marketing and production assistance.  The agreement calls for the issuance of
options to purchase a) 2,000,000 shares at a price of $0.10 per share through
June 28, 2004 and b) 2,000,000 shares at a price of $0.25 per share through
August 28, 2004.

During April 2004, the Company entered into a stock option agreement for the
raising of capital as follows:  options to purchase 200,000 shares at a price
of $0.10 per share; 200,000 shares at a price of $0.20 per share; 200,000
shares at a price of $0.25 per share; 200,000 shares at a price of $0.30 per
share; and, 200,000 shares at a price of $0.35 per share, all to expire in one
year.

During April 2004, the Company issued 240,000 shares of common stock for
services.
                               F-33
<PAGE>
Item 8.  Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.
---------------------

     None, not applicable.

Item 8(a).  Controls and Procedures.
------------------------------------

          As of the end of the 90 day period at the end of this Annual Report,
we carried out an evaluation, under the supervision and with the participation
of our President and Chief Financial Officer, of the effectiveness of the
design and operation of our disclosure controls and procedures.  Based on this
evaluation, our President and Chief Financial Officer concluded that our
disclosure controls and procedures are effective in timely alerting them to
material information required to be included in our periodic reports that are
filed with the Securities and Exchange Commission.  It should be noted that
the design of any system of controls is based in part upon certain assumptions
about the likelihood of future events, and there can be no assurance that any
design will succeed in achieving its stated goals under all potential future
conditions, regardless of how remote.  In addition, we reviewed our internal
controls, and there have been no significant changes in our internal controls
or in other factors that could significantly affect those controls subsequent
to the date of their last evaluation.

                                 PART III

Item 9.  Directors, Executive Officers, Promoters and Control Persons;
Compliance with Section 16(a) of the Exchange Act.
--------------------------------------------------

Identification of Directors and Executive Officers.
---------------------------------------------------

     The following table sets forth the name, address, age and position
of each officer and director of the Company:


    Name                Age                      Position
    ----                ---                   --------

Anthony A. Maher        57                  Chairman of the Board,
                                            President, and
                                            Chief Executive Officer

Robert O. Grover        41                  Executive Vice President, Chief
                                            Technology Officer

Christina M. Vaughn     35                  Vice President, Chief Financial
                                            Officer

Donald J. Farley        53                  Secretary, Director

Roy M. Svee*            77                  Treasurer, Director

Cecil D. Andrus         76                  Director

Michael K. McMurray                         Director

     Mr. Svee passed away in February 2004.  We are waiting until our Annual
Meeting to appoint someone to replace him in the position of Treasurer.

Term of Office.
---------------

     The terms of office of the current directors shall continue until
the annual meeting of stockholders, which has been scheduled by the Board of
Directors to be held in May of each year. The annual meeting of the Board
of Directors immediately follows the annual meeting of stockholders, at which
executive officers for the coming year are elected.

Business Experience.
--------------------

     Anthony A. Maher, Chairman, President & CEO.  Anthony A. Maher was
recruited to PCS at its inception as Chairman of the Board, President and
Chief Executive Officer and structured the purchase of PCS Schools. Since
then, Mr. Maher has overseen the development of the curriculum from four core
areas to over 60; the development of its distance developer database; and the
creation of its web based publishing expertise. From 1982 to 1989 he was
founder and Chairman of the Board of National Manufacturing Company, Inc. and
its subsidiary, National Medical Industries, Inc. From  1979 to 1982, Mr.
Maher was Executive Vice President for Littletree Inns, a hotel company based
in Boise, Idaho with properties throughout the Northwest. Mr. Maher graduated
from Boise State University in 1970 with a Bachelor of Arts degree in
Political Science.

     Robert O. Grover.  Robert O. Grover joined PCS at its inception and
became Executive Vice President in May 1996. Mr. Grover's current focus is on
the development of PCS distance education applications including the web-based
support and delivery systems that are integral to Edventures!.COM, Edventures
Labs, and the Academy of Engineering.  In 1992, he developed the PCS Merit
System that has become the foundation of the Edventures!.COM learning systems
online.  Mr. Grover graduated from Boise State University in 1987 with a
Bachelor of Arts degree in English.

     Christina Vaughn was promoted to Vice President and CFO  from Assistant
CFO on May 1, 2002.  She joined PCS in September 2000 after serving 8 years as
an analyst for the local natural gas utility.  She brings to PCS extensive
knowledge of revenue, cash, and cost forecasting, asset/liability mitigation,
managed reporting of commodities pricing as well as capital project analysis.
She graduated, cum laude, May 1990 from the College of Idaho with a BBA in
Finance, and from Atkinson Graduate School of Management/Willamette University
with an MBA in May 1992.

     Donald J. Farley.  Mr. Farley is a director and the Secretary of the
Company and has acted as the Company's legal counsel since 1994.  Mr. Farley
is a founding partner of the law firm of Hall, Farley, Oberrecht & Blanton,
P.A. His legal practice emphasizes litigation and representation of closely
held businesses.  He has been in private practice since 1975, after serving a
two year judicial clerkship with former United States District Judge J. Blaine
Anderson.  Mr. Farley is admitted to practice before all state and federal
courts in Idaho and has also been admitted to practice before the United
States Supreme Court.  He is a member of the American Bar Association, the
International Association of Defense Counsel, Defense Research Institute, the
Idaho State Bar Association and the Association of Trial lawyers of America.
Mr. Farley graduated from the University of Idaho in 1970 with a Bachelor of
Arts degree in Economics and from the University of Idaho College of Law in
1973.

     Roy M. Svee.  Mr. Svee was since 1996, a director and the Treasurer of
the Company.   Mr. Svee passed away in February 2004.  We are waiting until
our Annual Meeting to appoint someone to replace him in the position of
Treasurer.  Mr. Svee has served with distinction throughout his business
career on the Board of Directors of such organizations as Southgate Bank;
First National Bank; Colonial Savings; Eastern Heights Bank; TFC Bank and its
parent; Hansen Engine and Hansen Air Systems, Inc.; Genius Technologies and JF
Goodhouse, Inc., all in Minnesota and Michigan.  During his working career, he
served as Regional Manager of Montgomery Ward and after that as Senior Vice
President-Strategic Planning for Target Stores.  He retired from JB Goodhouse,
Inc. as President & CEO in 1991.  Mr. Svee has a Bachelor of Business
Administration degree from the University of Minnesota and served as a pilot
in the Navy Air Corps.

     Cecil D. Andrus.  Former Idaho State Governor Andrus joined the PCS
Board of Directors in November 1995.  Following his retirement from public
service in January 1995, Governor Andrus founded and now directs the Andrus
Center for Public Policy at Boise State University.  Governor Andrus is the
first person in the history of Idaho to be elected Governor four different
times (1970, 1974, 1986 and 1990).  When he retired from public office, he was
the senior governor in the United States in length of service. Mr. Andrus
resigned as governor in 1977 to become the Secretary of the Interior in the
Carter Administration, the first Idahoan to serve in a Presidential Cabinet.
Governor Andrus is also a director of Albertsons, KeyCorp and The Gallatin
Group.

     Michael K. McMurray.  Mr. McMurray comes back to the Board of PCS, having
served from 1989 through 1994.  He retired from Boise Cascade after serving
there for over 30 years, starting as a Treasury Analyst in 1970, Assistant to
Realty Controller from 1971 to 1974, Manager, Cash & Banking from 1974 to
1976, Manager of Banking & Corporate Credit from 1976 to 1980, Assistant
Treasurer from 1980 to 1989, and then Assistant Treasurer and Director,
Retirement Funds from 1989 until he retired in 2000.  Mr. McMurray has served
with distinction on several Boards including Regence Blue Shield of Idaho,
American Red Cross, Farmers & Merchants State Bank, Idaho Housing and Finance,
Boise Family YMCA, Hillcrest Country Club, and the Downtown Boise Association.
He is a graduate of the University of Idaho with a degree in Finance and has
completed the Program for Management Development at the Harvard Business
School.

Family Relationships.
---------------------

     There are no family relationships between any of our directors or
executive officers.

Involvement in Certain Legal Proceedings.
-----------------------------------------

     During the past five years, none of our present or former directors,
executive officers or persons nominated to become directors or executive
officers:

          (1)  Filed a petition under the federal bankruptcy laws or any state
insolvency law, nor had a receiver, fiscal agent or similar officer appointed
by a court for the business or property of such person, or any partnership in
which he was a general partner at or within two years before the time of such
filing, or any corporation or business association of which he was an
executive officer at or within two years before the time of such filing;

          (2)  Was convicted in a criminal proceeding or named subject of a
pending criminal proceeding (excluding traffic violations and other minor
offenses);

          (3)  Was the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any court of competent
jurisdiction, permanently or temporarily enjoining him or her from or
otherwise limiting his involvement in any type of business, securities or
banking activities;

          (4)  Was found by a court of competent jurisdiction in a civil
action, by the Securities and Exchange Commission  or the Commodity Futures
Trading Commission to have violated any federal or state securities law, and
the judgment in such civil action or finding by the Securities and Exchange
Commission has not been subsequently reversed, suspended, or vacated.

Compliance with Section 16(a) of the Exchange Act.
--------------------------------------------------

     PCS believes all forms required to be filed under Section 16 of
the Exchange Act for all of the Company's directors and executive officers
have been timely filed.

Audit Committee.
----------------

     We adopted an audit committee last fiscal year for the purpose of
engaging HJ & Associates for the annual audit.  The audit committee currently
consists of board members, Michael McMurray and Cecil Andrus.  The audit
committee is currently working with the other board members to determine the
scope, responsibilities and length of service for the audit committee.  We
expect to adopt a formal policy regarding the audit committee during this
fiscal year.

Code of Ethics.
---------------

     We have adopted a Code of Ethics and it is attached as Exhibit 14 to this
Report.  See Item 13.

Item 10. Executive Compensation.
         -----------------------

Cash Compensation.
------------------

     The following table shows the aggregate compensation that we have paid to
directors and executive officers for services rendered during the periods
indicated:

<TABLE>
<CAPTION>
                        SUMMARY COMPENSATION TABLE

                           Long Term Compensation

                    Annual Compensation   Awards  Payouts

(a)             (b)   (c)   (d)   (e)   (f)   (g)   (h)    (i)

                                              Secur-
                                              ities        All
Name and   Year or               Other  Rest- Under- LTIP  Other
Principal  Period   Salary Bonus Annual rictedlying  Pay- Comp-
Position   Ended      ($)   ($)  Compen-Stock Optionsouts ensat'n
-----------------------------------------------------------------
<S>         <C>       <C>   <C>   <C>   <C>    <C>   <C>  <C>

Anthony A. 3/31/04 120,000   0     0      0     *      0    0
Maher      3/31/03 120,000   0     0      0     0      0    0
President
Director

</TABLE>

     *  Mr. Maher was the only executive officer of PCS whose cash
compensation exceeded $100,000 during the last two fiscal years.   See the
table below under the heading "Stock Option Plans and Other Incentive
Compensation Plans" of this Item for stock options granted to Mr. Maher and
other members of management during the last two fiscal years ended March 31,
2004 and 2003.

Options Grants in Last Fiscal Year

     There were grants of stock options made during the fiscal years ended
March 31, 2004 and 2003 to our directors and executive officers and others.
These options are described below under the heading "Stock Option Plans and
Other Incentive Compensation Plans" of this Item.

Compensation of Directors

     Each fiscal year, the Board of Directors sets the dollar amount for the
compensation of outside directors for their services.  Said compensation shall
be in the form of freely tradable PCS common stock at its then bid price, or
in the form of stock options to purchase PCS common stock at its then current
bid price.  For fiscal years 2002 and 2003, the Board of Directors set the
amounts of $15,000 for each of said fiscal years.

Employment Agreements

     We have no written employment agreements with our management.
Currently, we are paying our officers the following annual salaries: Anthony
A. Maher - $120,000;  Robert O. Grover - $84,000; Christina Vaughn - $75,000.
The Company also provides medical and dental insurance for its officers and
other employees.

Stock Option Plans and Other Incentive Compensation Plans

     PCS has not adopted any formal option plans or other incentive
compensation plans as of the date of this report.  We anticipate that our
Board of Directors will, in the near future, adopt incentive compensation
plans to provide reward and incentives to employees, directors and agents of
PCS. PCS has granted the following options to officers, directors, employees
and consultants:

                         Number         Date of   Exercise  Expiration
     Option Holder       Shares          Grant    Price       Date
     -------------       ------          -----    -----       ----

     Frances Guiney      50,000         10/21/01  $.30      10/24/04
     Bill Albert          2,310         12/01/01  $.15      12/01/04
     Nathan Cook          1,155         12/01/01  $.15      12/01/04
     Robert O. Grover*    6,467         12/01/01  $.15      12/01/04
     Suzanne Haislip      3,696         12/01/01  $.15      12/01/04
     Christa Roesberry    1,442         12/01/01  $.15      12/01/04
     Anthony A. Maher*    9,160         12/01/01  $.15      12/01/04
     Donald J. Farley*  250,000         12/10/01  $.30      12/10/04
     Roy M. Svee*       250,000         12/10/01  $.30      12/10/04
     Anthony A. Maher*  400,000         12/10/01  $.30      12/10/04
     Cecil D. Andrus*   100,000         12/10/01  $.30      12/10/04
     Board Members*   1,000,000          6/03/02  $.16       6/03/12
     Suzanne Haislip     50,000          7/01/02  $.16       1/01/06
     Christina Vaughn*   50,000          7/01/02  $.16       1/01/06
     William Albert      75,000          7/01/02  $.16       1/01/06
     David Chase         35,000          7/01/02  $.16       1/01/06
     Joe Egusquiza       15,000          7/01/02  $.16       1/01/06
     Laura Baran         25,000          7/01/02  $.16       1/01/06
     Robert O. Grover*   75,000          7/01/02  $.16       1/01/06
     Christa Roesberry   10,000          7/01/02  $.16       1/01/06
     Nathan Cook         15,000          7/15/02  $.16       1/15/06
     Nic Perner           5,000          8/15/02  $.16       2/15/06
     Donald J. Farley*  166,666         10/21/02  $.09      10/21/12
     Roy Svee*          166,666         10/21/02  $.09      10/21/12
     Cecil Andrus*      166,666         10/21/02  $.09      10/21/12
     Donald J. Farley*  214,285          5/15/03  $.07       5/15/13
     Roy Svee*          214,285          5/15/03  $.07       5/15/13
     Cecil Andrus*      214,285          5/15/03  $.07       5/15/13
     Anthony Maher*     250,000          5/15/03  $.07       5/15/13
     Suzanne Haislip    100,000          5/20/03  $.07       5/20/07
     Joe Egusquiza       25,000          7/25/03  $.10       7/15/07
     Christina Vaughn*  150,000          9/05/03  $.07       9/15/07

         * Denotes directors and executive officers.

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

     The following table sets forth information concerning the beneficial
ownership of PCS common stock as of June 28, 2004, by each director and
executive officer, all directors and officers as a group, and each person
known to PCS  to beneficially own 5% or more of its outstanding common stock.

       Name and Address                                      Percentage
     of Beneficial Owner           Shares Owned(1)              Owned(1)
     -------------------           ---------------              --------

     Anthony A. Maher                2,123,601(3)                  7.67%
     345 Bobwhite Court, Suite 200,
     Boise, Idaho 83706

     Robert O. Grover                  596,467(4)                  2.15%
     345 Bobwhite Court, Suite 200,
     Boise, Idaho 83706

     Roy M. Svee                     1,230,951(5)                  4.44%
     345 Bobwhite Court, Suite 200,
     Boise, Idaho 83706

     Donald J. Farley                1,361,951(6)                  4.92%
     345 Bobwhite Court, Suite 200,
     Boise, Idaho 83706

     Cecil D. Andrus                   504,284(7)                  1.82%
     345 Bobwhite Court, Suite 200,
     Boise, Idaho 83706

     Christina M. Vaughn               200,000(8)                  (2)
     345 Bobwhite Court, Suite 200,
     Boise, Idaho 83706

     All officers and Directors as a
     group                           6,017,254                    21.72%
     (6 persons)

     (1) Based upon 24,919,752 shares of common stock issued and outstanding
as of June 28, 2004, including 2,783,480 shares that may be issued upon the
exercise of currently exercisable options, for a total number of shares
outstanding of 27,703,232, calculated in accordance with Rule 13d-3
promulgated under the Exchange Act. It also includes shares owned by (i) a
spouse, minor children or by relatives sharing the same home, (ii) entities
owned or controlled by the named person and (iii) other persons if the named
person has the right to acquire such shares within 60 days by the exercise of
any right or option. Unless otherwise noted, shares are owned of record and
beneficially by the named person.

     (2)  Under 1 percent.

     (3) These shares include (i) 1,405,441 shares owned of record by Mr.
Maher, (ii) 10,000 shares owned by Louise Maher, (iii) 9,500 shares which are
beneficially owned by a family limited liability named Sullivan Maher for
which Mr. Maher acts as a manager (iv) 35,000 shares owned by the Nick Maher
foundation of which Mr. Maher is a trustee, (v) 4,500 shares owned by E.L.
Sullivan which are voted by Mr. Maher pursuant to an irrevocable proxy, (vi)
9,160 shares which may be issued upon the exercise of currently exercisable
stock options; these options are exercisable at $.15 per share and are
exercisable through December 2004, (vii) 400,000 shares which may be issued
upon the exercise of currently exercisable stock options; these options are
exercisable at $.30 per share and are exercisable through December 2004, and
(viii) 250,000 shares which may be issued upon the exercise of currently
exercisable stock options; these options are exercisable at $.07 through May
15, 2007.

     (4) These shares include (i) 315,000 shares owned of record by Mr.
Grover, (ii) 75,000 shares which may be issued upon the exercise of currently
exercisable stock options; these options are exercisable at $.16 per share and
are exercisable through December 31, 2005, (iii) 6,467 shares which may be
issued upon the exercise of currently exercisable stock options; these options
are exercisable at $.15 per share through November 30, 2004 and (iv) 200,000
shares which may be issued upon the exercise of currently exercisable stock
options; these options are exercisable at $.10 through July 15, 2007.

     (5) These shares include (i) 600,000 shares owned of record by Mr. Svee,
(ii) 250,000 shares which may be issued upon the exercise of currently
exercisable stock options; these options are exercisable at $.30 per share and
are exercisable through December 2004, (iii) 214,285 shares which may be
issued upon the exercise of currently exercisable stock options; these options
are exercisable at $.07 through May 15, 2007, and (iv) 166,666 shares which
may be issued upon the exercise of currently exercisable stock options; these
options are exercisable at $.10 through October 21, 2012.

     (6) These shares include (i) 722,000 shares owned of record by Mr.
Farley, (ii) 9,000 shares in the name of Ryan Farley, (iii) 250,000 shares
which may be issued upon the exercise of currently exercisable stock options;
these options are exercisable at $.30 per share and are exercisable through
December 2004, (iv) 214,285 shares which may be issued upon the exercise
of currently exercisable stock options; these options are exercisable at $.07
through May 15, 2007, and (v) 166,666 shares which may be issued upon the
exercise of currently exercisable stock options; these options are exercisable
at $.10 through October 21, 2012.

     (7) These shares include (i) 123,333 shares owned of record by Mr.
Andrus, and (ii) 214,285 shares which may be issued upon the exercise of
currently exercisable stock options; these options are exercisable at $.07
through May 15, 2007, and (iii) 166,666 shares which may be issued upon the
exercise of currently exercisable stock options; these options are exercisable
at $.10 through October 21, 2012.

     (8) These shares include (i) 50,000 shares which may be issued upon the
exercise of currently exercisable stock options; these options are exercisable
at $.16 per share and are exercisable through December 31, 2005 and (ii)
150,000 shares which may be issued upon the exercise of currently exercisable
stock options; these options are exercisable at $.07 through September 15,
2007.

Changes in Control.
-------------------

     To our knowledge, there are no present arrangements or pledges of our
securities that may result in a change in control of our company.

Item 12. Certain Relationships and Related Transactions.
         -----------------------------------------------

Transactions with Management and Others.
----------------------------------------

     During the last two fiscal years ended March 31, 2004 and 2003, we have
granted certain options to members of our management.  See the heading "Stock
Option Plans and Other Incentive Compensation Plans" of Item 10, above.

     During the year ended March 31, 2003, three members of the Company's
board of directors acted as guarantors on a promissory note that provided the
Company $60,600 in financing.  This note was paid in full during 2004.

     During the years ended March 31, 2003, the Company repaid debt owed to
the President of the Company of $20,000.

     During the years ended March 31, 2003, the Company borrowed $27,000 from
the President of the Company.

     On October 21, 2002, we authorized and issued options to purchase 499,998
shares of common stock to Board Members as payment for accrued directors fees
totaling $45,000.  These options vested immediately and have an exercise price
of $0.09 per share.  This payment covered all directors fees incurred for the
year ended March 31, 2002.  As of March 31, 2003, we still owes these
directors $45,000 for services rendered during the year ended March 31, 2003.

     On May 15, 2003, we authorized and issued options to purchase 892,855
shares of common stock to Board Members as payment of $45,000 in accrued
director fees.  The intrinsic value of these options was $17,857, while the
difference, $27,143, was treated as contributed capital from extinguishment of
related party debt.

     During 2004, we issued 305,441 shares of common stock to the Company's
President in payment of $32,608 in accrued interest.  The stock was valued at
the market price of the stock on the dates of conversion, or an average of
$0.11 per share.

Transactions with Promoters.
----------------------------

     Except as outlined under the caption "Executive Compensation," during the
past two years, there have been no material transactions, series of similar
transactions or currently proposed transactions, to which our company or any
of our subsidiaries was or is to be a party, in which the amount involved
exceeded $60,000 and in which any director or executive officer, or any
security holder who is known to us to own of record or beneficially more than
five percent of our common stock, or any member of the immediate family of any
of the foregoing persons, or any promoter or founder had a material interest.

Item 13. Exhibits and Reports on Form 8-K.
         ---------------------------------

Reports on Form 8-K.

     No Current Reports on Form 8-K of the Securities and Exchange Commission
have been filed by the Company during the last quarter of its fiscal year
ended March 31, 2004.


Exhibits*

          (i)
                                          Where Incorporated
                                            in this Report
                                            --------------

Registration Statement on SB-2, as        Parts I, II and III
amended.**

          (ii)

Exhibit
Number               Description
------               -----------
 14           Code of Ethics

 21           Subsidiaries of the Company

 31.1         302 Certification of Anthony A. Maher

 31.2         302 Certification of Christina M. Vaughn

 32           906 Certification


          *    Summaries of all exhibits contained within this
               Report are modified in their entirety by reference
               to these Exhibits.

          **   These documents and related exhibits have been
               previously filed with the Securities and Exchange
               Commission and are incorporated herein by reference.

ITEM 15.  PRINCIPAL ACCOUNTANT FEES AND SERVICES

     The following is a summary of the fees billed to PCS by its principal
accountants during the fiscal years ended March 31, 2004, and March 31, 2003:


     Fee category                      2004           2003
     ------------                      ----           ----

     Audit fees                        $19,845        $18,037

     Audit-related fees                $     0        $     0

     Tax fees                          $     0        $     0

     All other fees                    $     0        $     0

     Total fees                        $19,845        $18,037

     Audit fees.  Consists of fees for professional services rendered by
our principal accountants for the audit of our annual financial statements
and the review of financial statements included in our Forms 10-QSB or
services that are normally provided by our principal accountants in connection
with statutory and regulatory filings or engagements.

     Audit-related fees.  Consists of fees for assurance and related services
by our principal accountants that are reasonably related to the performance of
the audit or review of our financial statements and are not reported under
"Audit fees."

     Tax fees.  Consists of fees for professional services rendered by our
principal accountants for tax compliance, tax advice and tax planning.

     All other fees.  Consists of fees for products and services provided by
our principal accountants, other than the services reported under "Audit
fees," "Audit-related fees" and "Tax fees" above.  The fees disclosed in this
category include due diligence, preparation of pro forma financial statements
as a discussion piece for a Board member, and preparation of letters in
connection with the filing of Current Reports on Form 8-K.

                                SIGNATURES

          In accordance with the requirements of the Exchange Act, the
Registrant caused this Report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                         PCS EDVENTURES!.COM, INC.



Date: 7/1/04                             By/s/Anthony A. Maher
      -------------                      -------------------------------------
                                         Anthony A. Maher
                                         CEO, President and Chairman of the
                                         Board of Directors


Date: 7/1/04                             By/s/Christina M. Vaughn
      -------------                      -------------------------------------
                                         Christina M. Vaughn
                                         Vice President and CFO


Date: 7/1/04                             By/s/Donald J. Farley
      -------------                      -------------------------------------
                                         Donald J. Farley
                                         Secretary and Director


Date: 7/1/04                             By/s/Cecil D. Andrus
      -------------                      ------------------
                                         Cecil D. Andrus
                                         Director

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