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

FORM 10-QSB



|(Mark One)                                                                              
|----------------------------------------------------------------------------------------
|[X]                                                                                     
|For the quarterly period ended: September 30, 2001                                      
|Or                                                                                      
|[  ]                                                                                    
|For the transition period from ____________ to _____________                            
|Commission File Number: 0-31503                                                         
|E-Com Technologies Corporation(Exact name of registrant as specified in its charter)    
|Nevada
(State or other jurisdiction of incorporation or organization)                   
|388-1281 W. Georgia St. Vancouver, B.C., Canada
(Address of principal executive offices)
|(604) 608-6336(Registrant's telephone number, including area code)                      
|N/A
(Former name, former address and former fiscal year, if changed since last report)  

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
Yes [ ] No [ ]

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 12,750,157 (September 30, 2001)



TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT

Yes [ ] No [X]





E-COM TECHNOLOGIES CORP.



Table of Contents



|                                                                                                                                                                               | Page
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----
|PART I - INTERIM FINANCIAL INFORMATION                                                                                                                                         |     
|Item 1. Interim Consolidated Financial Statements                                                                                                                              |     
|Unaudited Interim Consolidated Balance Sheets as at September 30, 2001 and December 31, 2000                                                                                   | 4   
|Unaudited Interim Consolidated Statements of Operations and Comprehensive Loss for the three-month and the nine-month periods ended September 30, 2001 and September 30, 2000. | 5   
|Unaudited Interim Consolidated Statements of Stockholders' Deficiency as at September 30, 2001 and December 31, 2000.                                                          | 6   
|Unaudited Interim Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2001 and September 30, 2000                                             | 7   
|Item 2. Management's Discussion and Analysis                                                                                                                                   | 12  
|PART II - OTHER INFORMATION                                                                                                                                                    |     
|Item 1. Legal Proceedings                                                                                                                                                      | 17  
|Item 2. Changes in Securities and Use of Proceeds                                                                                                                              | 17  
|Item 3. Defaults Upon Senior Securities                                                                                                                                        | 17  
|Item 4. Submission of Matters to a Vote of Securities Holders                                                                                                                  | 17  
|Item 5. Other Information                                                                                                                                                      | 17  
|Item 6. Exhibits and Reports on Form 8-K                                                                                                                                       | 17  





Item 1.  Financial Statements











Interim Consolidated Financial Statement
(Expressed in United States dollars)

E-Com Technologies corporation

Three months ended September 30, 2001 and 2000 and
nine months ended September 30, 2001 and 2000

(Unaudited)

E-COM TECHNOLOGIES CORPORATION

|                                                                             | September
30, 2001 | December 31, 2000
|---------------------------------------------------------------------------- | ------------------ | -----------------
|                                                                             | (unaudited)        |                  
|Assets                                                                       |                    |                  
|Current assets:                                                              |                    |                  
|Cash                                                                         | $9,175             | $5,644           
|Accounts Receivable                                                          | 19,247             | 30,339           
|Prepaid expenses                                                             | 1,173              | -                
|Work-in-progress                                                             | 2,711              | 16,838           
|                                                                             | 32,306             | 52,821           
|Fixed assets, net of accumulated depreciation of $26,855                     |                    |                  
|(2000 - 13,706)                                                              | 19,932             | 35,547           
|Total assets                                                                 | $52,238            | $88,368          
|Liabilities and Stockholders' Deficiency                                     |                    |                  
|Current liabilities:                                                         |                    |                  
|Accounts payable and accrued liabilities                                     | $38,523            | $98,754          
|Current capital lease obligation                                             | 5,209              | 5,717            
|                                                                             | 43,732             | 104,471          
|Long-term liabilities:                                                       |                    |                  
|Long-term capital lease obligation                                           | 4,262              | 8,431            
|Due to related parties                                                       | 112,600            | -                
|Long-term loans payable                                                      | 52,082             | -                
|                                                                             | 168,944            | 8,431            
|Convertible debenture, net of discount of $6,837                             |                    |                  
|(2000 - $14,468)                                                             | 65,523             | 10,392           
|                                                                             |                    |                  
|Stockholders' deficiency:                                                    |                    |                  
|Common stock                                                                 |                    |                  
|Authorized:                                                                  |                    |                  
|90,000,000 common voting share, par value
               of $0.001 per share |                    |                  
|10,000,000 preferred stock, par value
                of $0.001 per share    |                    |                  
|Issued and outstanding:                                                      |                    |                  
|12,750,157 common stock (2000 - 12,665,157)                                  | 12,750             | 12,665           
|Additional paid-in capital                                                   | 256,305            | 237,390          
|Accumulated deficit                                                          | (496,865)          | (284,306)        
|Accumulated other comprehensive income (loss):                               |                    |                  
|Cumulative translation adjustment                                            | 1,849              | (675)            
|Total stockholders' deficiency                                               | (225,961)          | (34,926)         
|Total liabilities and stockholders' deficiency                               | $52,238            | $88,368          

See accompanying notes to interim consolidated financial statements.

E-COM TECHNOLOGIES CORPORATION

|                                        | Three
months
ended
September
30, 2001 | Three
months
ended
September
30, 2000 | Nine
months
ended
September
30, 2001 | Nine
months
ended
September
30, 2000
|--------------------------------------- | ------------------------------------- | ------------------------------------- | ------------------------------------ | ------------------------------------
|Revenues:                               |                                       |                                       |                                      |                                     
|Website and programming services        | $7,623                                | $10,679                               | $53,233                              | $31,114                             
|Hardware/software sales                 | 1,322                                 | 17,573                                | 6,088                                | 20,776                              
|                                        | 8,945                                 | 28,252                                | 59,321                               | 51,890                              
|Cost of sales and services              | 18,732                                | 14,642                                | 55,760                               | 24,463                              
|Gross profit                            | (9,787)                               | 13,610                                | 3,561                                | 27,427                              
|Expenses:                               |                                       |                                       |                                      |                                     
|Depreciation and amortization           | 4,477                                 | 3,991                                 | 14,196                               | 8,076                               
|Interest expense                        | 1,507                                 | -                                     | 13,663                               | -                                   
|Selling, general and administrative     | 56,728                                | 77,004                                | 223,869                              | 188,993                             
|Total expenses                          | 62,712                                | 80,995                                | 251,728                              | 197,069                             
|Loss before unusual items               | (72,499)                              | (67,385)                              | (248,167)                            | (169,642)                           
|Unusual items:                          |                                       |                                       |                                      |                                     
|Forgiveness of  debt                    | 35,608                                | -                                     | 35,608                               | -                                   
|Loss for the year                       | (36,891)                              | (67,385)                              | (212,559)                            | (169,642)                           
|Other comprehensive loss:               |                                       |                                       |                                      |                                     
|Foreign currency translation adjustment | 3,874                                 | (3,244)                               | 2,524                                | (3,748)                             
|Comprehensive loss                      | $(33,017)                             | $(70,629)                             | $(210,035)                           | $(173,390)                          
|Loss per share:                         |                                       |                                       |                                      |                                     
|Basic                                   | $(0.003)                              | $(0.01)                               | $(0.02)                              | $(0.01)                             
|Diluted                                 | $(0.003)                              | $(0.01)                               | $(0.02)                              | $(0.01)                             
|Weighted average shares:                |                                       |                                       |                                      |                                     
|Basic                                   | 12,750,157                            | 12,504,863                            | 12,694,497                           | 12,262,371                          
|Diluted                                 | 12,750,157                            | 12,504,863                            | 12,694,497                           | 12,262,371                          



See accompanying notes to interim consolidated financial statements.

E-COM TECHNOLOGIES CORPORATION

Nine months ended September 30, 2001

|                                                                |              |         |                            |                    |                                       
|--------------------------------------------------------------- | ------------ | ------- | -------------------------- | ------------------ | --------------------------------------
|                                                                |              |         |                            |                    |                                       
|                                                                | Common stock |         |                            |                    |                                       
|                                                                | Shares       | Amount  | Additional
paid-in
capital | Accumlated
deficit | Accumulated
other
comprehensive
income
|Balance, December 31, 2000                                      | 12,665,157   | $12,665 | $237,390                   | $(284,306)         | $(675)                                
|Loss for the period                                             | -            | -       | -                          | (212,559)          | -                                     
|Foreign currency translation of
adjustments                     | -            | -       | -                          | -                  | 2,524                                 
|Comprehensive loss for the nine
months ended September 30, 2001 | -            | -       | -                          | (212,559)          | 2,524                                 
|Issued for services                                             | 85,000       | 85      | 18,915                     | -                  | -                                     
|Balance, September 30, 2001                                     | 12,750,157   | $12,750 | $256,305                   | $(496,865)         | $1,849                                





See accompanying notes to interim consolidated financial statements.

E-COM TECHNOLOGIES CORPORATION

Nine months ended September 30, 2001 and 2000

|                                                                                     | 2001       | 2000      
|------------------------------------------------------------------------------------ | ---------- | ----------
|Cash flows from operating activities:                                                |            |           
|Loss for the period                                                                  | $(212,559) | $(169,642)
|Items not involving cash:                                                            |            |           
|Depreciation and amortization                                                        | 14,196     | 8,076     
|Services rendered in exchange for stock                                              | 19,000     | -         
|Interest expense relating to conversion option
          benefit on convertible debt | 7,631      | -         
|Changes in non-cash working capital:                                                 |            |           
|Accounts receivable                                                                  | 11,092     | (9,544)   
|Prepaid expenses                                                                     | (1,173)    | -         
|Work-in-progress                                                                     | 14,127     | (2,674)   
|Accounts payable and accrued liabilities                                             | (60,231)   | 40,802    
|Net cash used in operating activities                                                | (207,917)  | (132,982) 
|Cash flows provided by (used in) investing activities:                               |            |           
|Purchase of fixed assets                                                             | -          | (26,580)  
|Proceeds on disposal of fixed assets                                                 | 1,419      | -         
|Net cash provided by (used in) investing activities                                  | 1,419      | (26,580)  
|Cash flows from financing activities:                                                |            |           
|Issuance of capital stock                                                            | -          | 201,391   
|Repayment of obligations under capital lease                                         | (4,677)    | (2,362)   
|Issuance of convertible debt                                                         | 47,500     | -         
|Long-term debt due to related parties                                                | 112,600    | -         
|Long-term loans payable                                                              | 52,082     | -         
|Net cash provided by financing activities                                            | 207,505    | 199,029   
|Effect of foreign currency translation on cash                                       | 2,524      | (3,748)   
|Increase (decrease) in cash                                                          | 3,531      | 35,719    
|Cash, beginning of period                                                            | 5,644      | 4,648     
|Cash, end of period                                                                  | $9,175     | $40,367   
|Supplementary disclosure:                                                            |            |           
|Income taxes paid                                                                    | $-         | $-        
|Interest expense paid                                                                | 13,663     | -         





See accompanying notes to interim consolidated financial statements.

E-com Technologies Corporation

Nine months ended September 30, 2001 and 2000





1.	Basis of presentation:

The unaudited condensed interim consolidated financial statements have been prepared by E-Com Technologies Corporation ("E-Com") in accordance with generally accepted accounting principles in the United States and reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for fair presentation of the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending December 31, 2001. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These unaudited condensed consolidated financial statements and notes included herein should be read in conjunction with E-Com's audited consolidated financial statements and notes for the year ended December 31, 2000, included in E-Com's Annual Report on Form 10-KSB.

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary E-Com Consultants (Canada) Corp.  All intercompany balances and transactions have been eliminated.

On May 23, 2000, the Company completed a forward stock split issuing 2.5 common stock for each common stock issued and outstanding.  The consolidated interim statements have been adjusted to give retroactive effect to this transaction.



2.	Operations:

The Company was organized on January 29, 1999 (Inception) under the laws of the State of Nevada as E-Com Technologies Corporation.  The Company has a 100% owned subsidiary, E-Com Consultants (Canada) Corp., which was incorporated in the province of British Columbia.  On November 10, 2000, the Company became a fully registered issuer reporting with the United States Securities and Exchange Commission.  On December 15, 2000, the Company began trading on the National Association of Securities Dealers - Over-the-Counter Bulletin Board.

The Company develops e-commerce solutions, web-based applications, performs Internet marketing and consulting services and designs and hosts web sites.

The Company's interim consolidated financial statements are prepared on a going concern basis in accordance with generally accepted accounting principles in the United States which contemplates the realization of assets and discharge of liabilities and commitments in the normal course of business.  Certain conditions, discussed below, currently exist which raise substantial doubt about the validity of this assumption.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.



E-com Technologies Corporation

Nine months ended September 30, 2001 and 2000





2.	Operations (continued):

The Company is generating revenues from sales of hardware, software and Internet and programming services, but such revenues are not yet sufficient to cover operating costs.  Furthermore, the Company has experienced negative cash flows from operations for the nine months ended September 30, 2001.  The Company plans to increase revenue through marketing efforts, business development and also plans to seek additional equity financings to fund future operations.  If the Company is unable to generate sufficient cash inflows, it may be required to reduce or limit operations.

For the period from incorporation to September 30, 2001, the Company operated as one business segment, Internet and related services.

Substantially all of the Company's revenues are generated in Canada.



3.	Convertible debt with detachable warrants:

(a)	On November 15, 2000 the Company issued convertible debt for proceeds of $24,860.  The convertible debt has an interest rate of 9% and is convertible into common shares of the Company at the conversion price of the lower of $0.10/share or 80% of the average closing price.  Interest is payable with common shares upon conversion, or with cash upon maturity of the debenture.

The debentures are convertible into common shares of the Company at any time beginning May 15, 2001.  The debentures are redeemable at the option of the Company for payment by the Company of 120% of the outstanding amount.

124,300 detachable warrants, convertible into common shares of the Company, were issued in conjunction with the convertible debt. These warrants expire on November 15, 2002.

The proceeds from the issuance of convertible debt securities with detachable warrants has been allocated between the warrants, the debt security, and the beneficial conversion option.

The fair market value of the convertible debenture and the detachable warrants were calculated using the Black Scholes option-pricing model.  The value of proceeds allocated to the detachable warrants totaled $8,287 and is being amortized over the life of the convertible debt.  At the convertible debt commitment date, the value attributed to the beneficial conversion option was $8,287 and is being amortized over the period to the first conversion date of May 15, 2001.





E-com Technologies Corporation

Nine months ended September 30, 2001 and 2000





3.	Convertible debt with detachable warrants (continued):

(b)	On March 14, 2001 the Company issued convertible debt for proceeds of $30,000.  The convertible debt has an interest rate of 9% and is convertible into common shares of the Company at the conversion price of the lower of $0.075 per share or 75% of the average closing price.  Interest is payable with common shares upon conversion, or with cash upon maturity of the debenture.

The debentures are convertible into common shares of the Company at any time beginning September 12, 2001.  The debentures are redeemable at the option of the Company for payment by the Company of 120% of the outstanding amount.

(c)	On May 22, 2001 the company issued convertible debt for proceeds of $17,500.  The convertible debt has an interest rate of 9% and is convertible into common shares of the Company at the conversion price of the lower of $0.10 per share or 75% of the average closing price.  Interest is payable with common shares upon conversion, or with cash upon maturity of the debenture.

The debentures are convertible into common shares of the Company at any time beginning November 22, 2001.  The debentures are redeemable at the option of the Company for payment by the Company of 120% of the outstanding amount.



The value of the proceeds allocated to the convertible debt is as follows:





|                                  | September 30, 2001 | December 31, 2000
|--------------------------------- | ------------------ | -----------------
|Face value of debt                | $72,360            | $24,860          
|Discount attributed to warrants   | (6,837)            | (8,287)          
|Discount attributed to beneficial | -                  | (6,181)          
|                                  | $65,523            | $10,392          



The convertible debt and detachable warrants have not been registered with United States Securities Exchange Commission, or the Securities Commission of any state.



4.	Related party transactions:

Related party transactions not disclosed elsewhere in these consolidated financial statements are as follows:

(a)	Included within general and administration expenses is $100,879 accrued to companies controlled by officers and directors of the Company.  The fees were recorded as consideration for the provision of management and consulting services to the Company.

At September 30, 2001, due to related parties includes $112,600 payable to companies controlled by officers and directors of the Company for management fees.

1. The Company utilizes certain office and operating equipment that is owned by the Company's officers at no charge.
2. Forgiveness of debt consists of $35,608 of accrued management owed to a private company owned by the former president and director of E-Com.  This debt was forgiven on July 18, 2001.





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



Forward-Looking Statements

This Quarterly Report contains forward-looking statements about our business, financial condition and prospects that reflect our assumptions and beliefs based on information currently available.  We can give no assurance that the expectations indicated by such forward-looking statements will be realized.  If any of our assumptions should prove incorrect, or if any of the risks and uncertainties underlying such expectations should materialize, our actual results may differ materially from those indicated by the forward-looking statements.

The key factors that are not within our control and that may have a direct bearing on operating results include, but are not limited to, the acceptance of our products and services, our ability to expand our customer base, our ability to raise capital in the future, the retention of key employees and changes in the regulation of our industry.

There may be other risks and circumstances that we are unable to predict.  When used in this Quarterly Report, words such as,  "believes,"  "expects," "intends,"  "plans,"  "anticipates,"  "estimates"and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking   statements   not   accompanied   by such   expressions.  All forward-looking statements are intended to be covered by the safe harbor created by Section 21E of the Securities Exchange Act of 1934.

General

E-Com Technologies Corporation("E-Com"or the "Company"), a Nevada corporation, was incorporated on January 29, 1999.  We are an information technology company employing the latest technologies to develop solutions for a global marketplace. Our principal products and services include the development of e-commerce and e-business applications, web site architecture and hosting, database design and programming, domain name registration, online payment processing, retailing of hardware and software online, Internet marketing and consulting and custom programming of web based applications. Our mission is to provide a full range of Internet professional services for clients interested in building and developing their e-commerce strategies.

We have an experienced management team with expertise in the areas of technology, finance, marketing and promotion.  Headquartered in Vancouver, Canada, our Company is poised to capitalize on the technological resources that are readily available at a significantly lower cost than in most regions of North America.  We also have organized talented offshore programming teams who provide assistance on various projects at costs substantially lower than in North America.  The Company filed its Form 10-SB with the United States Securities and Exchange Commission, which became effective November 10, 2000.  As of December 15, 2000 our common shares have been quoted for trading on the OTC Bulletin Boardâ
 under the symbol "ECTC".

Results of Operations

Revenue, Cost of Sales and Gross Margin

For the three month period ended September 30, 2001

The Company generated revenues of $8,945 for the quarter ended September 30, 2001, as compared to $28,252 in the quarter ended September 30, 2000.  This represents a decrease of $19,307 (68.3%) as compared to the same period in the prior year.  This decrease in revenues was due primarily to a drop sales of hardware and software products.  Sales from hardware and software products decreased from $17,573 in the quarter ended September 30, 2000 to $1,322 in the quarter ended September 30, 2001.  This decrease is likely a result of the Company's online store, www.itwebstore.com being down for most of the second quarter in 2001 for database upgrades.  Some of the customer base was lost due to this downtime and may take a number of months of marketing to replace.  Internet services and programming accounted for $7,623 of the 2001 third quarter revenues, as compared to $10,679 in the third quarter of 2000.  This decrease was due to fewer development projects ongoing in the third quarter as compared to the prior year due to a slower economy and decreased spending by clients on e-commerce and Internet presence.

Cost of sales increased from $14,642 for the quarter ended September 30, 2000 to $18,732 for the quarter ended September 30, 2001, for an increase of $4,090 (27.9%).  This increase was due to more spending on programming costs from employees and contractors, despite the decline in sales.

Due to the lower sales volume and higher cost of sales gross margins were ($9,787) for the quarter ended September 30, 2001 as compared to $13,610 for the quarter ended September 30, 2000.  Management is examining closely the reasons for the negative margins this quarter and if sales volumes do not pick up will be making cuts to the level of programming expenditures to ensure healthy margins in upcoming quarters.

For the nine month period ended September 30, 2001

For the nine months ended September 30, 2001 revenues were $59,321 as compared to $51,890 for the nine months ended September 30, 2000 for an increase of $7,431 (14.3%).  This increase in revenue can be attributed to sales generated from marketing and business development efforts and the establishment of the Company's name in the local marketplace.  Although sales slowed in the third quarter, the Company posted an increase for the nine-month period.  Revenues from web site and programming services increased substantially, while revenues derived from hardware and software sales declined due to several months of downtime of the Company's online store in the second quarter of 2001.  Internet services and programming accounted for $53,233 of the revenue for the nine months ended September 30, 2001, as compared to $31,114 for the nine months ended September 30, 2000.  The remaining $6,088 of revenues for the nine months ended September 30, 2001 were derived from hardware and software sales through our online store (www.itwebstore.com), as compared to $20,776 for the nine months ended September 30, 2000.

Cost of sales increased from $24,463 for the nine months ended September 30, 2000 to $55,760 for the nine months ended September 30, 2001, for an increase of $31,297 (127.9%).  The large increase in cost of sales was due to increased expenditures on programming, both in house and from contractors.  Management has taken steps to monitor margins on development projects and programming costs more closely to control these costs.

Gross profits were down $23,866 (87.0%) from $27,427 for the nine months ended September 30, 2000 to $3,561 for the nine months ended September 30, 2001.  Gross margin percentage decreased from 52.9% for the nine-month period ended September 30, 2000 to 6.0% for the nine-month period ended September 30, 2001.  The decline is gross margins was primarily due to the slowdown in sales in the third quarter of 2001 and increased expenditures for programming services.  If sales volumes do not pick up in upcoming quarters, management intends to cut programming expenditures to maintain healthy margins on development projects.



Selling, General and Administrative Expenses

For the three month period ended September 30, 2001

Total selling, general and administrative expenses decreased from $77,004 for the quarter ended September 30, 2000 to $56,728 for the same period in 2001.  The decrease of $20,276 (26.3%) in expenditures can be attributed to the reduction of internal programming projects and the reduction in marketing activities.  Management has also made an effort to cut all discretionary spending to reduce the Company's burn rate until economic conditions improve.

For the nine month period ended September 30, 2001

Total selling, general and administrative expenses increased from $188,993 for the nine-months ended September 30, 2000 to $223,869 for the same period in 2001.  The increase of $34,876 (18.5%) in expenditures can be attributed to higher programming, marketing and overhead costs for the nine-month period, despite the reduction in such expenditures in the third quarter of 2001.



Depreciation and Amortization

For the three month period ended September 30, 2001

Depreciation expense increased from $3,991 for the quarter ended September 30, 2000 to $4,477 for the quarter ended September 30, 2001.  The increase was due to a higher asset base resulting from capitalization of web site costs and acquisitions of assets.

For the nine month period ended September 30, 2001

Depreciation expense increased from $8,076 for the nine-months ended September 30, 2000 to $14,196 for the nine-months ended September 30, 2001. The increase was due to a higher asset base resulting from capitalization of web site costs and acquisitions of assets.



Interest Expense

For the three month period ended September 30, 2001

Interest expense increased from $0 for the quarter ended September 30, 2000 to $1,507 for the quarter ended September 30, 2001.  The increase was due to interest on convertible debentures issued and amortization of related discounts to interest expense.

For the nine month period ended September 30, 2001

Interest expense increased from $0 for the nine months ended September 30, 2000 to $13,663 for the nine-months ended September 30, 2001.  The increase was due to interest on convertible debentures issued and amortization of related discounts to interest expense.



Net Loss

For the three month period ended September 30, 2001

We had a net loss of $36,891 for the quarter ended September 30, 2001 as compared to a net loss of $67,385 for the comparable period in 2000.  The decrease in net losses was due to forgiveness of accrued management fees owed to a private company owned by the former President of the Company.  The former President resigned on June 28, 2001 and on July 18, 2001 he agreed to forgive any and all amounts owed to him or companies under his control.  The Company's loss before this unusual item was $72,499 for the quarter ended September 30, 2001, as compared to $67,385 for the same quarter in the prior year.

For the nine month period ended September 30, 2001

We had a net loss of $212,559 for the nine months ended September 30, 2001 as compared to a net loss of $169,642 for the comparable period in 2000.  The increase in net losses was due to higher operating expenses, primarily selling, general and administrative expenses, reduced to some extent by the forgiveness of debt discussed above.



Plan of Operation

We plan to continue to increase revenues through our marketing efforts and business development activities such as the enhancement of internal and external sales teams, participation in trade shows and establishing alliances with firms that have the potential to strengthen the demand for our products and services.

Our marketing plan is to focus business development on specific industry vertical markets, including sports and leisure, hospitality, real estate and retail shopping.  By targeting specific industry segments and developing expertise in these areas we feel we will be in a position to develop proprietary applications software, which we can leverage among numerous clients and lead to both higher sales and profit margins.

We expect to continue our marketing efforts during the next year in the local British Columbia market and when additional funding can be obtained on favorable terms we plan to expand our Company into the US market, likely through a marketing office in Seattle, WA.  We plan to complete the bulk of our development work from our Vancouver, BC office due to the lower overhead costs and favorable exchange rate.  We expect that margins on development work will increase substantially once we penetrate into the US market.  Our main focus will be to aggressively market our e-business services, web development and hosting services business, and to add to our staff through the hiring of additional marketing and programming personnel.

We plan to seek additional equity and debt financing to accelerate the growth of the Company internally.  We also plan to aggressively seek merger and acquisition strategies targeting companies which will provide some synergy with our existing business activities and help to accelerate the growth of our Company.  Without additional financing we will be required to reduce our staff and marketing efforts and may not be able to continue our business.



Financial Condition

Liquidity and Capital Resources

During the quarter ended September 30, 2001 we borrowed $52,082 from a private investor.  At present there are no specified terms on the loan, however, the Company is currently negotiating terms to this loan which may include an option to convert to common equity.  The lender has agreed not to demand repayment until at least January 1, 2003.

As at September 30, 2001 we had $9,175 of cash on hand and a working capital deficiency of $11,426.  The Company's current financial condition is not strong as currently our operating costs exceed our revenues and due to our working capital deficiency.  Management has taken steps to cut all discretionary spending and reduce overhead to the largest extent possible, while maintaining the current level of operations.  However, we will need to raise additional financing in order to continue the current level of operations.

We plan to raise additional funds through a private placement or public offering of equity or debt instruments to maintain the current level of operations and to provide for additional staffing in our marketing and programming departments and to provide funds to seek potential merger and acquisition candidates.  The Company is in continuous discussions with private investors and other financing sources in efforts to raise additional capital.  If necessary, the Company may consider loans or debentures from lenders and/or principals of E-Com.  If adequate equity or debt funding cannot be obtained, we will be required to reduce staff and overhead and grow at a slower pace than originally planned or even cease operations.

The Company's interim consolidated financial statements are prepared on a going concern basis in accordance with generally accepted accounting principles in the United States which contemplates the realization of assets and discharge of liabilities and commitments in the normal course of business.  Certain conditions, discussed below, currently exist which raise substantial doubt about the validity of this assumption.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

The Company is generating revenues from sales of hardware, software and website services, but such revenues are not yet sufficient to cover operating costs.  Furthermore, the Company has experienced negative cash flows from operations for the nine months ended September 30, 2001.  The Company plans to increase revenue through marketing efforts, business development and also plans to seek additional equity financings to fund future operations.  If the Company is unable to generate sufficient cash inflows, it may be required to reduce or limit operations.



Risk Factors

INVESTING IN OUR COMPANY INVOLVES CONSIDERABLE RISK. YOU SHOULD CAREFULLY CONSIDER THE RISKS SET FORTH IN THIS FILING AND OTHER FILINGS IN DETAIL BEFORE MAKING AN INVESTMENT DECISION. THESE RISKS AND UNCERTAINTIES ARE NOT THE ONLY ONES THAT WE FACE OR THAT MAY ADVERSELY AFFECT OUR BUSINESS. IF ANY OF THE FOLLOWING RISKS OR UNCERTAINTIES ACTUALLY OR PARTIALLY OCCURS, OUR COMPANY, FINANCIAL CONDITION, OR RESULTS OF OPERATIONS COULD BE MATERIALLY ADVERSELY AFFECTED. THIS FILING ALSO CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT INHERENTLY INVOLVE RISK AND UNCERTAINTY. OUR ACTUAL RESULTS COULD DEVIATE MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS. THIS COULD OCCUR BECAUSE OF THE RISKS SET FORTH IN THIS DOCUMENT, OUR OTHER FILINGS, OR UNANTICIPATED EVENTS AND OCCURRENCES NOT YET FORESEEN.

We are currently not generating positive cash flow and may not have the cash, equity capital, credit, or working capital to pay our current expenditures. Sales may not grow to the levels forecast and new product and service introductions may be delayed. We are seeking equity financing which may not be available on acceptable on terms and conditions to us, if at all.

We are operating at significant loss, which will further erode our already limited resources.  We are currently developing new business, which if successful will enable us to generate positive cash flow. However, there is no assurance that this can be accomplished before our limited cash resources are exhausted.

We operate in a highly competitive industry and are competing with companies with substantially more financial resources and brand awareness.

Additional Executive and information technology personnel need to be hired. However, given our limited financial resources this may be difficult to achieve.

The trading price of our common stock could be subject to significant fluctuations. We cannot predict the effect if any, this would have on our share price.   We have convertible debentures and share purchase warrants outstanding which, if converted to common shares could substantially dilute existing shareholders.  We can not predict what effect, if any, this would have on our share price.

Break-even cash flow will depend on us successfully completing and selling new products and obtaining new contracts for our services. There can be no assurances that there will be market acceptance of upcoming new products or that we will be successful in securing new contracts for our products and services.





PART II - OTHER INFORMATION

Item 1. Legal Proceedings

None

Item 2. Changes in Securities and Use of Proceeds

During the quarter ended September 30, 2001 we borrowed $52,082 from a private investor.  At present there are no specified terms on the loan, however, the Company is currently negotiating terms to this loan which may include an option to convert to common equity.  The lender has agreed not to demand repayment until at least January 1, 2003. The use of proceeds is for general operating expenses.  No commissions or finders fees were paid in connection with this transaction.

Item 3. Defaults Upon Senior Securities

None

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

None

Item 5. Other Information

None

Item 6(a). Exhibits



|Exhibit
Number | Name and/or Identification of Exhibit                                                                                                                                                                                                                      
|-------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3              | Articles of Incorporation & By-Laws                                                                                                                                                                                                                        
|               | (a) Articles of Incorporation of the Company filed January 29, 1999.  Incorporated by reference to the exhibits to the Company's General Form For Registration Of Securities Of Small Business Issuers on Form 10-SB, previously filed with the Commission.
|               | (b) By-Laws of the Company adopted January 29, 1999.  Incorporated by reference to the exhibits to the Company's General Form For Registration Of Securities Of Small Business Issuers on Form 10-SB, previously filed with the Commission.                
|               |                                                                                                                                                                                                                                                            
|               |                                                                                                                                                                                                                                                            

Item 6(b). Reports on Form 8-K

On July 3, 2001 we filed a Form 8-K announcing the appointment of Kyle Werier as our President and the resignation of Darcy James Malish as President and director.





SIGNATURES

Pursuant to the requirements of the Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

E-Com Technologies Corporation

Date: November 9, 2001

By:  /s/ Kyle Werier
Kyle Werier, President and Director