UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

             [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003
                                       OR

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
                               OF THE EXCHANGE ACT

         FOR THE TRANSITION PERIOD FROM ____________ TO ________________

                        COMMISSION FILE NUMBER __________

                                 THINKPATH INC.

        (EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)


             ONTARIO                                        52-209027
  -------------------------                           --------------------
 (STATE OR OTHER JURISDICTION OF                        (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION)                         IDENTIFICATION NO.)

                             201 WESTCREEK BOULEVARD
                            BRAMPTON, ONTARIO L6T 5S6
               ---------------------------------------------------
               (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)

                                 (905) 460-3040
                               -------------------
                (ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE)

     CHECK WHETHER THE ISSUER: (1) FILED ALL REPORTS REQUIRED TO BE FILED BY
 SECTION 13 OR 15(D) OF THE EXCHANGE ACT DURING THE PAST 12 MONTHS (OR FOR SUCH
     SHORTER PERIOD THAT THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS),
                                     AND (2)
       HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS.
                                 YES |X| NO |_|

           AS OF MAY 19, 2003 THERE WERE 181,658,312 SHARES OF COMMON
                   STOCK, NO PAR VALUE PER SHARE, OUTSTANDING.




<PAGE>


                                 THINKPATH INC.

                  MARCH 31, 2003 QUARTERLY REPORT ON FORM 10-Q

                                TABLE OF CONTENTS



                         PART I - FINANCIAL INFORMATION
                                                                     Page Number


Item 1.  Financial Statements

         Interim Consolidated Balance Sheets as of March 31, 2003 and
         December 31, 2002 and 2001.... ......................................

         Interim Consolidated Statements of Income for the three months ended
         March 31, 2003, 2002 and 2001........................................

         Interim Consolidated Statements of Stockholders' Equity for the three
         months ended March 31, 2003..........................................

         Interim Consolidated Statements of Cash Flows for the three months
         ended March 31, 2003, 2002 and 2001..................................

         Notes to Interim Consolidated Financial Statements...................

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

Item 3.  Quantitative and Qualitative Disclosures about Market Risk...........

Item 4.  Controls and Procedures..............................................


                          PART II - OTHER INFORMATION

Item 1.  Legal Proceedings ...................................................

Item 2.  Changes in Securities and Use of Proceeds ...........................

Item 3.  Defaults Upon Senior Securities .....................................

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

Item 5.  Other Information ...................................................

Item 6.  Exhibits and Reports on Form 8-K ....................................


<PAGE>


ITEM 1.  FINANCIAL STATEMENTS


                                 THINKPATH INC.

                    INTERIM CONSOLIDATED FINANCIAL STATEMENTS

                              AS OF MARCH 31, 2003
                                   (UNAUDITED)

                        (AMOUNTS EXPRESSED IN US DOLLARS)



<PAGE>
<TABLE>
<CAPTION>


THINKPATH INC.
INTERIM CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2003 (UNAUDITED) AND DECEMBER 31, 2002, AND 2001
(AMOUNTS EXPRESSED IN US DOLLARS)


                                           March 31,   December 31, December 31,
                                            2003          2002         2001
                                             $            $             $

                                     ASSETS

CURRENT ASSETS
<S>                                            <C>          <C>          <C>
     Cash                                      143,802      114,018      482,233
     Accounts receivable                     1,981,479    2,663,823    5,502,113
     Inventory                                    --           --         40,057
     Income taxes receivable                      --           --        431,817
     Prepaid expenses                          264,532      196,683      345,341
                                             ---------    ---------   ----------

                                             2,389,813    2,974,524    6,801,561

PROPERTY AND EQUIPMENT                       1,707,763    1,915,379    2,859,340

GOODWILL                                     3,748,732    3,748,732    5,128,991

INVESTMENT IN NON-RELATED COMPANIES             45,669       45,669    1,013,926

LONG-TERM RECEIVABLE                              --         53,924       83,450

OTHER ASSETS                                    50,642       49,303    1,287,710

DEFERRED INCOME TAXES                             --           --           --
                                             ---------    ---------   ----------

                                             7,942,619    8,787,531   17,174,978
                                             =========    =========   ==========


                                      F-1

</TABLE>

<PAGE>


<TABLE>
<CAPTION>



THINKPATH INC.
INTERIM CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2003 (UNAUDITED) AND DECEMBER 31, 2002, AND 2001
(AMOUNTS EXPRESSED IN US DOLLARS)



                                                       March 31,        December 31,   December 31,
                                                        2003               2002           2001
                                                        ----               ----           ----
                                                          $                 $               $

                                   LIABILITIES

CURRENT LIABILITIES
<S>                                                         <C>            <C>          <C>
     Bank indebtedness                                      254,637        209,776      5,039,171
     Receivable Discount Facility                         1,299,652      2,340,579           --
     Accounts payable                                     2,540,305      3,197,286      4,073,444
     Deferred revenue                                        94,433        163,609        365,023
     Current portion of long-term debt                      360,322        380,188        528,285
     Current portion of notes payable                       208,761        208,254        150,000
     12% Convertible Debenture                              560,777        192,950           --
                                                          ---------      ---------     ----------
                                                          5,318,887      6,692,642     10,155,923

DEFERRED INCOME TAXES                                          --             --          150,380

LONG-TERM DEBT                                               63,438         84,756        582,432

NOTES PAYABLE                                               682,565        686,703      2,340,000

LIABILITIES PAYABLE IN CAPITAL STOCK                           --             --          699,297
                                                        -----------    -----------    -----------
                                                          6,064,890      7,464,101     13,928,032
                                                        ===========    ===========    ===========
COMMITMENTS AND CONTINGENCIES (NOTE 23)

                              STOCKHOLDERS' EQUITY


CAPITAL STOCK                                            38,576,916     33,367,034     26,571,481

DEFICIT                                                 (35,621,666)   (30,966,083)   (22,719,044)

ACCUMULATED OTHER COMPREHENSIVE LOSS                     (1,077,521)    (1,077,521)      (605,491)
                                                        -----------    -----------    -----------
                                                          1,877,729      1,323,430      3,246,946
                                                        -----------    -----------    -----------
                                                          7,942,619      8,787,531     17,174,978
                                                        ===========    ===========    ===========


                 The accompanying notes are an integral part of
                 these interim consolidated financial statements

</TABLE>



                                      F-2
<PAGE>
<TABLE>
<CAPTION>



THINKPATH INC.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2003, 2002 AND 2001
(AMOUNTS EXPRESSED IN US DOLLARS)



                                                             2003           2002           2001
                                                             ----           ----           ----
                                                               $              $              $

<S>                                                        <C>            <C>            <C>
REVENUE                                                    3,292,122      7,014,379      9,339,329

COST OF SERVICES                                           2,457,847      5,271,471      6,377,659
                                                          ----------     ----------     ----------

GROSS PROFIT                                                 834,275      1,742,908      2,961,670

OTHER INCOME                                                    --             --           12,429
                                                          ----------     ----------     ----------
                                                             834,275      1,742,908      2,974,099
                                                          ----------     ----------     ----------
EXPENSES
      Administrative                                         719,575        959,065        936,056
      Selling                                                317,804        956,749      1,439,272
      Depreciation and amortization                          192,064        257,684        448,434
      Restructuring costs                                       --             --           49,919
                                                          ----------     ----------     ----------
                                                           1,229,443      2,173,498      2,873,681

LOSS FROM CONTINUING OPERATIONS
      BEFORE INTEREST CHARGES                               (395,168)      (430,590)       100,418

      Interest Charges                                     4,281,366        224,664        220,287
                                                          ----------     ----------     ----------

LOSS FROM CONTINUING OPERATIONS
      BEFORE INCOME TAXES                                 (4,676,534)      (655,254)      (119,869)

      Income Taxes (recovery)                                  3,619        (25,861)       203,962
                                                          ----------     ----------     ----------

LOSS FROM CONTINUING OPERATIONS                           (4,680,153)      (629,393)      (323,831)

LOSS FROM DISCONTINUED OPERATIONS
      (INCLUDING GAIN ON DISPOSAL OF $400,229 IN 2002)        24,570        129,923       (166,465)
                                                          ----------     ----------     ----------

NET LOSS BEFORE PREFERRED STOCK DIVIDENDS                 (4,655,583)      (499,470)      (490,296)

PREFERRED STOCK DIVIDENDS                                       --           23,680        226,500

NET LOSS APPLICABLE TO COMMON STOCK                       (4,655,583)      (523,150)      (716,796)
                                                          ==========     ==========     ==========

WEIGHTED AVERAGE NUMBER OF COMMON STOCK
      OUTSTANDING BASIC AND FULLY DILUTED                 57,421,886     17,640,438     13,025,123
                                                          ==========     ==========     ==========

LOSS FROM CONTINUING OPERATIONS PER WEIGHTED
      AVERAGE COMMON STOCK BEFORE PREFERRED
      DIVIDENDS BASIC AND FULLY DILUTED                        (0.08)         (0.03)         (0.04)
                                                          ==========     ==========     ==========

LOSS FROM CONTINUING OPERATIONS PER WEIGHTED
      AVERAGE COMMON STOCK AFTER PREFERRED
      DIVIDENDS BASIC AND FULLY DILUTED                        (0.08)         (0.03)         (0.06)
                                                          ==========     ==========     ==========


                 The accompanying notes are an integral part of
                 these interim consolidated financial statements


</TABLE>





                                      F-3
<PAGE>
<TABLE>
<CAPTION>

THINKPATH INC.
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND THE YEARS ENDED DECEMBER 31, 2002 AND 2001
(AMOUNTS EXPRESSED IN US DOLLARS)
                                                                                                                        ACCUMULATED
                          COMMON STOCK         PREFERRED STOCK                CAPITAL                                     OTHER
                            NUMBER OF          NUMBER OF SHARES                STOCK                   COMPREHENSIVE  COMPREHENSIVE
                             SHARES          A            B       C           AMOUNTS          DEFICIT         LOSS         LOSS
                          ------------     -------    --------  ------      ------------    -------------              ------------
Balance as of
<S>        <C> <C>           <C>                <C>      <C>   <C>            <C>         <C>            <C>           <C>
  December 31, 2000          11,915,138         1,050    750       --        23,759,415     (12,306,862)                  (653,547)
                           ============    ==========    ===   ========    ============    ============               ============
Net loss for the year
  before preferred
  stock dividends                  --            --      --        --              --        (9,683,442)     (9,683,442)
                                                                                                           ------------
Other comprehensive
  income (loss),
  net of tax:
   Foreign currency
     translation                   --            --      --        --              --              --           209,506
   Adjustment to
     market value                  --            --      --        --              --              --          (161,450)
                                                                                                           ------------
 Other comprehensive
  income                                                                                                        48,056      48,056
                                                                                                           ------------
Comprehensive loss                                                                                          (9,635,386)
                                                                                                           ============
Issuance of common
  stock for cash                525,000          --      --        --           400,000            --

Issuance of
  preferred stock                  --            --      --       1,230       1,230,000            --

Reduction in common
  stock payable                 596,667          --      --        --           709,005            --

Dividend on
  preferred stock                  --            --      --        --           414,848        (444,647)

Conversion of
  preferred stock to
  common stock                3,864,634        (1,050)  (750)      (285)           --              --

Beneficial conversion
  on Issuance of
  preferred stock                 --            --       --        --           284,093        (284,093)

Options exercised                22,122          --      --        --                 1            --

Debt settled through
  the issuance
  of common stock                93,883          --      --        --            44,125            --

Common stock and
  warrants issued
  in consideration
  of services                   714,267          --      --        --           519,994            --

Allowance for
  deferred taxes
  Recoverable on
  issue expenses                   --            --      --        --          (790,000)
                           ------------    ----------    ---   --------    ------------    ------------               ------------
Balance as of
  December 31, 2001          17,731,711          --      --         945      26,571,481     (22,719,044)                  (605,491)
                           ============    ==========    ===   ========    ============    ============               ============
Net loss for the year
  before preferred
  stock dividends                  --            --      --        --              --        (8,146,652)     (8,146,652)
                                                                                                           ------------
Other comprehensive
  income (loss),
  net of tax:
   Foreign currency
     translation                   --            --      --        --              --              --          (171,283)
   Adjustment to
     market value                  --            --      --        --              --              --          (300,747)
                                                                                                           ------------
 Other comprehensive
  income                                                                                                       (472,030)  (472,030)
                                                                                                           ------------
Comprehensive loss                                                                                           (7,674,622)
                                                                                                           ============
Reduction in common
  stock payable               8,387,840          --      --        --         1,098,955            --

Dividend on
  preferred stock                  --            --      --        --            67,530         (67,530)

Conversion of
  preferred stock to
  common stock               23,278,448          --      --       (945)           --              --

Beneficial conversion
  on issuance of
  preferred stock                  --            --      --        --            32,857         (32,857)

Debt settled through
  the issuance
  of common stock             2,982,018          --      --        --           434,348            --

Common stock and
  warrants issued
  in consideration
  of services                13,878,026          --      --        --         1,556,485            --

Warrants issued
  for cash                         --            --      --        --           707,050            --

Beneficial conversion
  on issuance
  of convertible
  debt                             --            --      --        --         2,898,328            --
                           ------------    ----------    ---   --------    ------------    ------------               ------------
Balance as of
  December 31, 2002          66,258,043          --      --        --        33,367,034     (30,966,083)                (1,077,521)
                           ============    ==========    ===   ========    ============    ============               ============
Net loss for the year              --            --      --        --              --        (4,655,583)     (4,655,583)
                                                                                                           ------------
Other comprehensive
  income (loss),
  net of tax:
   Foreign currency
     translation                   --            --      --        --              --              --              --
   Adjustment to
     market value                  --            --      --        --              --              --              --
                                                                                                           ------------
 Other comprehensive
  income                                                                                                           --
                                                                                                           ------------
Comprehensive loss                                                                                           (4,655,583)
                                                                                                           ============
Conversion of 12%
  senior secured
  convertible
  debenture                  37,013,329          --      --        --            61,012            --

Interest on 12% senior
  secured
  Convertible debenture         953,034          --      --        --             5,970            --

Debt settled through
  the issuance
  of common stock            15,930,230          --      --        --           440,899            --

Common stock and
  warrants issued
  in consideration
  of services                10,980,000          --      --        --           226,500            --

Warrants issued
  for cash                         --            --      --        --           446,285            --

Beneficial conversion
  on issuance
  of convertible debt              --            --      --        --         4,029,216            --
                           ------------    ----------    ---   --------    ------------    ------------               ------------
Balance as of
  March 31, 2003            131,134,636          --      --        --        38,576,916     (35,621,666)                (1,077,521)
                           ============    ==========    ===   ========    ============    ============               ============



The accompanying notes are an integral part of these interim consolidated financial statements.

</TABLE>


                                      F-4
<PAGE>

<TABLE>
<CAPTION>

THINKPATH INC.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2003, 2002 AND 2001
(AMOUNTS EXPRESSED IN US DOLLARS)



                                                                      2003            2002         2001
                                                                      ----            ----         ----
                                                                       $               $            $
Cash flows from operating activities
<S>                                                                <C>             <C>           <C>
    Net loss before preferred stock dividends                      (4,655,583)     (499,470)     (490,296)
                                                                  -----------    ----------     ---------

    Adjustments to reconcile net loss to net cash
     (used in) provided by operating activities:

    Amortization                                                      202,452       374,625       560,586
    Amortization of beneficial conversion (included in interest)    4,029,216          --            --
    Decrease (increase) in accounts receivable                        788,200       583,402      (159,078)
    Decrease (increase) in prepaid expenses                           (74,387)      (11,272)     (168,092)
    Increase (decrease) in accounts payable                          (694,484)   (1,087,036)     (327,405)
    Decrease (increase) in deferred income taxes                         --            --         200,000
    Decrease (increase) in inventory                                     --          (3,169)       25,233
    Decrease (increase) in long-term receivable                        57,775          --        (139,956)
    Increase (decrease) in deferred revenue                           (69,288)      (48,542)      (23,710)
    Increase in income taxes payable (receivable)                        --            --            --
    Common stock and warrants issued for services                     226,500          --         246,980
    Accounts payable settled with common stock                        440,899          --            --
    Gain on disposal of subsidiary                                       --        (401,027)         --
                                                                  -----------    ----------     ---------

    Total adjustments                                               4,906,883      (593,019)      214,558
                                                                  -----------    ----------     ---------

    Net cash used in operating activities                             251,300    (1,092,489)     (275,738)
                                                                  -----------    ----------     ---------

Cash flows from investing activities
    Purchase of capital assets                                           --        (222,577)      (62,089)
    Disposal (purchase) of other assets                                  --            --            --
    Proceeds on sale of fixed assets                                     --            --            --
    Proceeds on disposal of subsidiary                                   --       1,320,786          --
                                                                  -----------    ----------     ---------

    Net cash provided from (used in) investing activities                --       1,098,209       (62,089)
                                                                  -----------    ----------     ---------

Cash flows from financing activities
    Repayment of notes payable                                         (3,631)      (37,500)      (73,574)
    Repayment of long-term debt                                    (1,127,505)     (335,861)     (219,734)
    Cash received (paid) on long-term debt                               --            --         225,000
    Proceeds from issuance of common stock                               --            --         400,000
    Proceeds from issuance of debentures and warrants                 875,000          --            --
    Increase (decrease in bank indebtedness)                             --         (28,356)      354,019
                                                                  -----------    ----------     ---------

    Net cash provided by financing activities                        (256,136)     (401,717)      685,711
                                                                  -----------    ----------     ---------

Effect of foreign currency exchange rate changes                       34,620         3,994      (347,884)
                                                                  -----------    ----------     ---------

Net increase (decrease) in cash and cash equivalents                   29,784      (392,003)         --
Cash and cash equivalents
    Beginning of period                                               114,018       482,233          --
                                                                  -----------    ----------     ---------
    End of period                                                     143,802        90,230          --
                                                                  ===========    ==========     =========

SUPPLEMENTAL CASH ITEMS:
    Interest paid                                                     252,150       239,865       116,553
                                                                  ===========    ==========     =========
    Income taxes paid (recovered)                                       4,244       (25,410)        3,962
                                                                  ===========    ==========     =========

SUPPLEMENTAL NON-CASH ITEMS:
    Preferred stock dividend                                             --          23,680       226,500
    Common shares issued for liabilities                              440,899       701,253          --
    Reduction in notes payable                                           --            --            --
                                                                  ===========    ==========     =========

                 The accompanying notes are an integral part of
                 these interim consolidated financial statements

</TABLE>




                                      F-5
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)



1.     MANAGEMENT'S INTENTIONS

       Certain principal conditions and events are prevalent which indicate that
       there could be substantial doubt about the company's ability to continue
       as a going concern for a reasonable period of time. These conditions and
       events include significant operating losses, working capital
       deficiencies, and violation of certain loan covenants. At March 31, 2003,
       the Company had a working capital deficiency of $2,929,074, a deficit of
       $35,621,666 and has suffered recurring losses from operations.

       With insufficient working capital from operations, the Company's primary
       sources of cash are a receivable discount facility with Morrison
       Financial Services Limited and proceeds from the sale of equity
       securities. At March 31, 2003, the balance on the receivable discount
       facility was approximately $1,300,000. The company is currently within
       margin of its receivable discount facility with Morrison Financial
       Services Limited based on 75% of qualifying accounts receivable.

       During the three months ended March 31, 2003, the company closed $875,000
       in convertible debentures pursuant to a financing arrangement entered
       into on December 5, 2002. The funds were used for various debt
       settlements and critical payables.

       As at May 16, 2003, management's plans to mitigate and alleviate these
       adverse conditions and events include:

              a)    Commitment from investors for additional convertible
                    debentures of up to $200,000 to be used for working capital.
                    Although there can be no assurances, it is anticipated that
                    continued cash flow improvements will be sufficient to cover
                    current operating costs and will permit payments to certain
                    vendors and interest payments on debt.

              b)    Ongoing restructuring of debt obligations and settlement of
                    outstanding claims.

              c)    Focus on growth in the engineering division, including
                    design services and technical publications and expansion of
                    the engineering service offerings to Ontario, Canada to
                    replace existing lower margin information staffing services.

       Despite its negative working capital and deficit, the company believes
       that its management has developed a business plan that if successfully
       implemented could substantially improve the company's operational results
       and financial condition. However, the company can give no assurances that
       its current cash flows from operations, if any, borrowings available
       under its receivable discounting facility with Morrison Financial
       Services Limited, and proceeds from the sale of securities, will be
       adequate to fund its expected operating and capital needs for the next
       twelve months. The adequacy of cash resources over the next twelve months
       is primarily dependent on its operating results, and the closing of new
       financing, all of which are subject to substantial uncertainties. Cash
       flows from operations for the next twelve months will be dependent, among
       other factors, upon the effect of the current economic slowdown on sales,
       the impact of the restructuring plan and management's ability to
       implement its business plan. The failure to return to profitability and
       optimize operating cash flows in the short term, and close alternate
       financing, could have a material adverse effect on the company's
       liquidity position and capital resources.


2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    a) Going Concern

       These consolidated financial statements have been prepared on the going
       concern basis, which assumes the realization of assets and liquidation of
       liabilities and commitments in the normal course of business. The
       application of the going concern concept is dependent on the Company's
       ability to generate sufficient working capital from operations and
       external investors. These consolidated financial statements do not give
       effect to any adjustments should the Company be unable to continue as a
       going concern and, therefore, be required to realize its assets and
       discharge its liabilities in other than the normal course of business and
       at amounts differing from those reflected in the consolidated financial
       statements. Management plans to obtain sufficient working capital from
       operations and external financing to meet the Company's liabilities and
       commitments as they become payable over the next twelve months. There can
       be no assurance that management's plans will be successful. Failure to
       obtain sufficient working capital from operations and external financing
       will cause the Company to curtail operations. These consolidated
       financial statements do not include any adjustments that might result
       from the outcome of this uncertainty.


                                      F-6
<PAGE>

THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)


    b) Change of Name

       The company changed its name from IT Staffing Ltd. to Thinkpath.com Inc.
       on February 24, 2000. On June 6, 2001, the company changed its name from
       Thinkpath.com Inc. to Thinkpath Inc.


    c) Principal Business Activities

       Thinkpath Inc. is an information technology and engineering services
       company which, along with its wholly-owned subsidiaries Thinkpath US Inc.
       (formerly Cad Cam Inc.), Thinkpath Michigan Inc. (formerly Cad Cam of
       Michigan Inc.), Thinkpath Technical Services Inc. (formerly Cad Cam
       Technical Services Inc.), provides engineering, design, technical
       publications and staffing, services to enhance the resource performance
       of clients. In addition, the company owns the following companies which
       are currently inactive: Systemsearch Consulting Services Inc.,
       International Career Specialists Ltd., Microtech Professionals Inc.,
       E-Wink Inc. (80%), Thinkpath Training Inc. (formerly ObjectArts Inc.),
       Thinkpath Training US Inc. (formerly ObjectArts US Inc.) and TidalBeach
       Inc. In 2002, the company sold Njoyn Software Incorporated, a
       wholly-owned subsidiary.

    d) Basis of interim consolidated financial statement presentation

       The interim consolidated financial statements include the accounts of the
       company and its controlled subsidiaries. The earnings of the subsidiaries
       are included from the date of acquisition for acquisitions accounted for
       using the purchase method. For subsidiaries accounted for by the pooling
       of interest method their earnings have been included for all periods
       reported. All significant inter-company accounts and transactions have
       been eliminated.

    e) Cash and Cash Equivalents

       Cash and cash equivalents include cash on hand, amounts from and to
       banks, and any other highly liquid investments purchased with a maturity
       of three months or less. The carrying amount approximates fair value
       because of the short maturity of those instruments.

    f) Other Financial Instruments

       The carrying amount of the company's other financial instruments
       approximate fair value because of the short maturity of these instruments
       or the current nature of interest rates borne by these instruments.

    g) Long-Term Financial Instruments

       The fair value of each of the company's long-term financial assets and
       debt instruments is based on the amount of future cash flows associated
       with each instrument discounted using an estimate of what the company's
       current borrowing rate for similar instruments of comparable maturity
       would be.

    h) Property and Equipment

       Property and equipment are recorded at cost and are amortized over the
       estimated useful lives of the assets principally using the declining
       balance method.

       The company's policy is to record leases, which transfer substantially
       all benefits and risks incidental to ownership of property, as
       acquisition of property and equipment and to record the occurrences of
       corresponding obligations as long-term liabilities. Obligations under
       capital leases are reduced by rental payments net of imputed interest.



                                      F-7
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)





    i) Net Income (Loss) and Fully Diluted Net Income (Loss) Per Weighted
       Average Common Stock

       Net income (Loss) per common stock is computed by dividing net income
       (loss) for the year by the weighted average number of common stock
       outstanding during the year.

       Fully diluted net income (loss) per common stock is computed by dividing
       net income for the year by the weighted average number of common stock
       outstanding during the year, assuming that all convertible preferred
       stock, stock options and warrants as described in note 13 were converted
       or exercised. Stock conversions stock options and warrants which are
       anti-dilutive are not included in the calculation of fully diluted net
       income (loss) per weighted average common stock.

    j) Inventory

       Inventory is valued at the lower of cost and the net realizable value.

    k) Revenue
       1) The company provides the services of engineering and information
       technology staff on a project basis. The services provided are defined by
       guidelines to be accomplished by milestone and revenue is recognized upon
       the accomplishment of the relevant milestone. As services are rendered,
       the costs incurred are reflected as Work in Progress. Revenue is
       recognized upon the persuasive evidence of an agreement, delivery has
       occurred, the fee is fixed or determinable and collection reasonably
       assured.

       2) The company provides the services of information technology
       consultants on a contract basis and revenue is recognized as services are
       performed.

       3) The company places engineering and information technology
       professionals on a permanent basis and revenue is recognized upon
       candidates' acceptance of employment. If the company receives
       non-refundable upfront fees for "retained searches", the revenue is
       recognized upon candidates' acceptance of employment.

       4) Prior to the sale of the training division (Note 18), the company
       provided advanced training and certification in a variety of technologies
       and revenue was recognized on delivery.

       5) Prior to the sale of the technology division (Note 18), the company
       licensed software in the form of a Human Capital Management System called
       Njoyn. The revenue associated with providing this software consisted of
       an initial set up fee, customization and training as agreed and an
       ongoing monthly per user fee. The allocation of revenue to the various
       elements was based on the company's determination of the fair value of
       the elements if they had been sold separately. The customers had the
       right to choose a provider to host the software which was unrelated to
       the company. The set-up fee and customization revenue was recognized upon
       delivery of access to the software with customization completed in
       accordance with milestones determined by the contract.

       Revenue was recognized on a percentage of completion basis for contracts
       with significant amounts of customization and clearly defined milestones
       agreed to by the customer and an enforceable right to invoice and collect
       on a partial completion basis.

       For contracts which required significant customization, without clearly
       defined milestones, and an inability to estimate costs, revenue was
       reflected on a completed contract basis. Substantial completion was
       determined based on customer acceptance of the software.

       6) Prior to the sale of the technology division (Note 18), the company
       also signed contracts for the customization or development of SecondWave,
       a web development software in accordance with specifications of its
       clients. The project plan defined milestones to be accomplished and the
       costs associated. These amounts were billed as they were accomplished and
       revenue was recognized as the milestones were reached. The work in
       progress for costs incurred beyond the last accomplished milestone was
       reflected at the period end. The contracts did not include any
       post-contract customer support. Additional customer support services were
       provided at standard daily rates, as services are required.



                                      F-8
<PAGE>



THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)



  l)   Goodwill

       Goodwill representing the cost in excess of the fair value of net assets
       acquired is being amortized on a straight-line basis over a thirty-year
       period. The company calculates the recoverability of goodwill on a
       quarterly basis by reference to estimated undiscounted future cash flows.
       Effective July 1, 2001, the Company changed its amortization period from
       30 to 15 years on a prospective basis.

       In July 2001, the Financial Accounting Standards Board issued Statements
       of Financial Accounting Standards (SFAS) No. 141, "Business Combinations"
       and No. 142, "Goodwill and Other Intangible Assets." Under the new rules,
       goodwill and indefinite lived intangible assets are no longer amortized
       but are reviewed annually for impairment. Separable intangible assets
       that are not deemed to have an indefinite life will continue to be
       amortized over their useful lives. The amortization provisions of SFAS
       No. 142 apply to goodwill and intangible assets acquired after June 30,
       2001. With respect to goodwill and intangible assets acquired prior to
       July 1, 2001, the Company began applying the new accounting rules
       effective January 1, 2002.

       Thinkpath completed SFAS No.142 transitional impairment test during the
       third quarter of 2002 and concluded that there was no impairment of
       recorded goodwill, as the fair value of its reporting units exceeded
       their carrying amount as of January 1, 2002. Therefore, the second part
       of the transitional test was not required to be performed.

    m) Income Taxes

       The company accounts for income tax under the provision of Statement of
       Financial Accounting Standards No. 109, which requires recognition of
       deferred tax assets and liabilities for the expected future tax
       consequences of events that have been included in the financial statement
       or tax returns. Deferred income taxes are provided using the liability
       method. Under the liability method, deferred income taxes are recognized
       for all significant temporary differences between the tax and financial
       statement bases of assets and liabilities.

       Effects of changes in enacted tax laws on deferred tax assets and
       liabilities are reflected as adjustments to tax expense in the period of
       enactment. Deferred tax assets may be reduced, if deemed necessary based
       on a judgmental assessment of available evidence, by a valuation
       allowance for the amount of any tax benefits which are more likely, based
       on current circumstances, not expected to be realized.


   n)  Foreign Currency

       Assets and liabilities recorded in foreign currencies are translated at
       the exchange rate on the balance sheet date. Translation adjustments
       resulting from this process are charged or credited to other
       comprehensive income. Revenue and expenses are translated at average
       rates of exchange prevailing during the year. Gains and losses on foreign
       currency transactions are included in financial expenses.

    o) Use of Estimates
       The preparation of consolidated financial statements in conformity with
       generally accepted accounting principles in the United States of America
       requires management to make estimates and assumptions that affect certain
       reported amounts of assets and liabilities and disclosures of contingent
       assets and liabilities at the date of the consolidated financial
       statements and the reported amounts of revenues and expenses during the
       reporting period. Actual results could differ from those estimates. These
       estimates are reviewed periodically and as adjustments become necessary,
       they are reported in earnings in the period in which they become known.



                                      F-9
<PAGE>






    p) Long-Lived Assets
       On January 1, 1996, the company adopted the provisions of SFAS No. 121,
       Accounting for the Impairment of Long-Lived Assets and for Long-Lived
       Assets to be Disposed Of. SFAS No. 121 requires that long-lived assets be
       held and used by an entity be reviewed for impairment whenever events or
       changes in circumstances indicate that the carrying amount of an asset
       may not be recoverable. Management used its best estimate of the
       undiscounted cash flows to evaluate the carrying amount and have
       reflected the impairment.

       In August 2001, FASB issued SFAS 144, "Accounting for the Impairment or
       Disposal of Long-Lived Assets." SFAS 144 addresses financial accounting
       and reporting for the impairment or disposal of long-lived assets. The
       Company adopted SFAS 144, effective January 1, 2002. The adoption of SFAS
       144 did not have a material impact on the Company's results of operations
       or financial condition.

    q) Comprehensive Income
       In 1999, the company adopted the provisions of SFAS No. 130 "Reporting
       Comprehensive Income". This standard requires companies to disclose
       comprehensive income in their financial statements. In addition to items
       included in net income, comprehensive income includes items currently
       charged or credited directly to stockholders' equity, such as the changes
       in unrealized appreciation (depreciation) of securities and foreign
       currency translation adjustments.

    r) Accounting for Stock-Based Compensation
       In December 1995, SFAS No. 123, Accounting for Stock-Based Compensation,
       was issued. It introduced the use of a fair value-based method of
       accounting for stock-based compensation. It encourages, but does not
       require, companies to recognize stock-based compensation expenses to
       employees based on the new fair value accounting rules. Companies that
       choose not to adopt the new rules will continue to apply the existing
       accounting rules continued in Accounting Principles Board Option No. 25,
       Accounting for stock issued to employees. However, SFAS No. 123 requires
       companies that choose not to adopt the new fair value accounting rules to
       disclose pro forma net income and earnings per share under the new
       method. SFAS No. 123 is effective for financial statements for fiscal
       years beginning after December 31, 1995. The company has adopted the
       disclosure provisions of SFAS No. 123.

    s) Computer software costs
       The company accounts for the cost of developing computer software,
       through its wholly-owned subsidiary Njoyn Software Incorporated. The
       company records these costs as research and development expenses until
       the technological feasibility of the product has been established at
       which time the costs are deferred. At the end of each year, the company
       compares the unamortized costs represented by deferred development costs
       in Other Assets to the net realizable value of the product to determine
       if a reduction in carrying value is warranted. The software developed for
       own use which may be sold as a separate product is the Njoyn software and
       during development, the company decided to market the software and
       therefore for the costs incurred after technological feasibility was
       reached has been treated as Deferred Development costs and the amount
       evaluated on an annual basis to determine if a reduction in carrying
       value is warranted. On March 8, 2002, Thinkpath sold all of its shares in
       Njoyn Software Incorporated.

    t) Investments in Non-Related Companies
       The company records its investments in companies in which it holds a 20%
       or more interest and in which the company can exercise significant
       influence over the investee's operating and financial policies on the
       equity basis.

       The company records its investment in companies in which it holds less
       than 20% interest or in which the company has a 20% or greater interest
       but the company is unable to exercise significant influence at fair
       market value. Changes in fair market value are adjusted in comprehensive
       income, unless the impairments are of a permanent nature, in which case
       the adjustments are recorded in earnings.



                                      F-10
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)



    u) Recent Pronouncements
       In April 2002, the FASB issued SFAS No. 145, which, among other factors,
       changed the presentation of gains and losses on the extinguishments of
       debt. Any gain or loss on extinguishments of debt that does not meet the
       criteria in APB Opinion 30, "Reporting the Results of Operations -
       Reporting the Effects of Disposal of a Segment of a Business, and
       Extraordinary, Unusual and Infrequently Occurring Events and
       Transactions", shall be included in operating earnings and not presented
       separately as an extraordinary item. The new standard is effective for
       companies with fiscal years beginning after May 15, 2002. However, the
       company has elected to adopt the standard as the debt restructuring gain
       in the current period, as permitted by SFAS No. 145.

       In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs
       Associated with Exit or Disposal Activities," which addresses accounting
       for restructuring and similar costs. SFAS No.146 supersedes previous
       accounting guidance, principally Emerging Issues Task Force Issue, or
       EITF, No. 94-3 "Liability Recognition for Certain Employee Termination
       Benefits and Other Costs to Exit on Activity (including Certain Costs
       Incurred in a Restructuring)". The company will adopt the provisions of
       SFAS No. 146 for restructuring activities initiated after December 31,
       2002. SFAS No. 146 may affect the timing of recognizing future
       restructuring costs as well as the amounts recognized.

       In January 2003, the FASB issued SFAS No. 148, Accounting for Stock
       -Based Compensation - Transition and Disclosures. This statement provides
       alternative methods of transition for a voluntary change to the fair
       value based method of accounting for stock-based employee compensation.
       In addition, this statement also amends the disclosure requirements of
       SFAS No. 123 to require more prominent and frequent disclosures in the
       financial statements about the effects of stock-based compensation. The
       transitional guidance and annual disclosure provisions of this Statement
       is effective for the December 31, 2002 financial statements. The interim
       reporting disclosure requirements is effective for the March 31, 2003
       financial statements.

       In November 2002, the FASB issued Interpretation No. 45, "Guarantor's
       Accounting and Disclosure Requirements for Guarantees, Including Indirect
       Guarantees of Indebtedness of Others" ("Interpretation"). This
       Interpretation elaborates on the existing disclosure requirement for most
       guarantees including loan guarantees, and clarifies that at the time a
       company issues a guarantee, the company must recognize an initial
       liability for the fair market value of the obligations it assumes under
       that guarantee and must disclose that information in its interim and
       annual financial statements. The initial recognition and measurement
       provisions of the Interpretation apply on a prospective basis to
       guarantees issued or modified after December 31, 2002.

       In January 2003, the Financial Accounting Standards Board issued
       Interpretation No. 46, "Consolidation of Variable Interest Entities,"
       which addresses consolidation by business enterprises of variable
       interest entities. In general, a variable interest entity is a
       corporation, partnership, trust, or any other legal structure used for
       business purposes that either (a) does not have equity investors with
       voting rights or (b) has equity investors that do not provide sufficient
       financial resources for the entity to support its activities. A variable
       interest entity often holds financial assets, including loans or
       receivables, real estate or other property. A variable interest entity
       may be essentially passive or it may engage in research and development
       or other activities on behalf of another company. The objective of
       Interpretation No. 46 is not to restrict the use of variable interest
       entities but to improve financial reporting by companies involved with
       variable interest entities. Until now, a company generally has included
       another entity in its consolidated financial statements only if it
       controlled the entity through voting interests. Interpretation No. 46
       changes that by requiring a variable interest entity to be consolidated
       by a company if that company is subject to a majority of the risk of loss
       from the variable interest entity's activities or entitled to receive a
       majority of the entity's residual returns or both. The consolidation
       requirements of Interpretation No. 46 apply immediately to variable
       interest entities created after January 31, 2003. The consolidation
       requirements apply to older entities in the first fiscal year or interim
       period beginning after June 15, 2003. Certain of the disclosure
       requirements apply in all financial statements issued after January 31,
       2003, regardless of when the variable interest entity was established.
       The Company does not have any variable interest entities, and,
       accordingly, adoption is not expected to have a material effect on the
       Company.



                                      F-11
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)




       In April 2003, the Financial Accounting Standards Board issued Statement
       No. 149, "Amendment of Statement 133 on Derivative Instruments and
       Hedging Activities". The Statement amends and clarifies accounting for
       derivative instruments, including certain derivative instruments embedded
       in other contracts, and for hedging activities under Statement 133. The
       amendments set forth in Statement 149 improve financial reporting by
       requiring that contracts with comparable characteristics be accounted for
       similarly. In particular, this Statement clarifies under what
       circumstances a contract with an initial net investment meets the
       characteristic of a derivative as discussed in Statement 133. In
       addition, it clarifies when a derivative contains a financing component
       that warrants special reporting in the statement of cash flows. This
       Statement is effective for contracts entered into or modified after June
       30, 2003 with certain exceptions. The Company does not believe that the
       adoption of Statement No. 149 will have a material effect on the Company.

    v) Advertising Costs
       Advertising costs are expensed as incurred.




4.     ACCOUNTS RECEIVABLE
<TABLE>
<CAPTION>
                                                       March 31,    December 31,  December 31,
                                                         2003          2002          2001
                                                           $             $             $

<S>                                                    <C>           <C>           <C>
       Accounts receivable                             2,225,525     2,900,616     6,079,676
       Less: Allowance for doubtful accounts            (244,046)     (236,793)     (577,563)
                                                       ---------     ---------     ---------
                                                       1,981,479     2,663,823     5,502,113
                                                       =========     =========     =========


                                                     March 31,     December 31,   December 31,
                                                        2003          2002          2001
                                                         $             $             $
       Allowance for doubtful accounts
       Balance, beginning of period                     236,793       577,563       458,833
       Provision                                          7,253      (292,764)      118,730
       Recoveries                                            --       (48,006)           --
                                                      ---------     ---------     ---------
       Balance, end of period                           244,046       236,793       577,563
                                                      =========     =========     =========
</TABLE>




5.     PROPERTY AND EQUIPMENT
<TABLE>
<CAPTION>
                                               March 31,                   December 31,  December 31,
                                                    2003                         2002          2001
                                     -----------------------------------      ----------    ---------
                                                  ACCUMULATED
                                        COST     AMORTIZATION     NET             NET           NET
                                          $           $            $               $

<S>                                    <C>          <C>         <C>             <C>          <C>
       Furniture and equipment         728,289      484,601     243,688         255,118      344,693
       Computer equipment
            and software             5,781,090    4,378,099   1,402,991       1,593,937    2,322,887
       Leasehold improvements          201,117      140,033      61,084          66,324      191,760
                                     ---------    ---------    ---------      ---------    ---------

                                     6,710,496    5,002,733    1,707,763      1,915,379    2,859,340
                                     =========    =========    =========      =========    =========

       Assets under capital lease      707,167      403,517      303,650        326,365      474,485
                                     =========    =========    =========      =========    =========

</TABLE>


                                      F-12
<PAGE>

THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)




       Amortization of property and equipment for the three months ended March
       31, 2003 amounted to $202,452 including amortization of assets under
       capital lease of $22,715.

       Amortization of property and equipment for the year ended December 31,
       2002 amounted to $974,142 including amortization of assets under capital
       lease of $110,763.

       Amortization for the year ended December 31, 2001 amounted to $1,594,709
       and $1,067,029 for the year ended December 31, 2000. Amortization
       includes amortization of assets under capital lease of $146,217 for the
       year ended December 31, 2001 and $136,487 for the year ended December 31,
       2000.



6.     INVESTMENT IN NON-RELATED COMPANIES

       Investment in non-related companies are represented by the following:
<TABLE>
<CAPTION>


                                        March 31,        December 31,       December 31,
                                            2003                2002               2001

<S>                                     <C>                <C>                 <C>
                     Conexys            $      1           $       1           $667,511
                     Digital Cement       45,668              45,668            346,415
                     Lifelogix                --                  --                 --
                                        --------          ----------         ----------
                     Total              $ 45,669           $  45,669         $1,013,926
                                        ========          ==========         ==========
</TABLE>


       i) Conexys
       During the year ended December 31, 1999, $383,146 of the Conexys
       investment was included as a short-term investment as the company had
       intended to sell these shares on the open market. During fiscal 2000, the
       company acquired additional shares of Conexys at a cost of approximately
       $284,365 in consideration of services rendered and reclassified the total
       investment as available for sale.

       Effective February 26, 2003, the common shares of Conexys were
       temporarily suspended from trading on the Bermuda Stock Exchange as it
       does not have adequate sources of funding for its immediate operating
       requirements and is currently investigating various options to retain and
       maximize shareholder value including the restructuring of its debt and
       refinancing of the company.

       At December 31, 2002, the company wrote down its investment by $667,510
       to a carrying value of $1. The write down was considered a permanent
       decline in value and as such was recorded as a charge to operations.

       ii) Digital Cement
       During fiscal 2000, the company acquired 1,125,000 shares of Digital
       Cement, representing approximately 4% of that company's shares in
       consideration of the co-licensing of SecondWave, software developed by
       TidalBeach Inc., a wholly-owned subsidiary of Thinkpath Inc. The value of
       these shares was determined to be approximately $507,865 based on a offer
       to a third party to purchase shares in the company at a price of $0.50
       per share. During 2001, the fair value was adjusted to $346,415 with a
       charge of $161,450 to comprehensive income. During 2002, the fair value
       was adjusted to $45,668 with a charge of $300,747 to comprehensive
       income.

       iii) Lifelogix
       During 2000, the company acquired a twenty percent interest in LifeLogix
       in consideration of the source code for Secondwave, the software which
       supports LifeLogix's human stress and emotions management systems. The
       value of these shares is approximately $142,715. This investment has been
       accounted for on the cost basis as the company does not have the ability
       to exercise significant influence over LifeLogix as the majority
       ownership of the investee is concentrated among a small group of
       shareholders who operate Lifelogix without regard to the views of the
       company and the company has been unable to obtain quarterly information.
       This investment was written off in 2001.


                                      F-13
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)


       iv) Tillyard Management
       During the year ended December 31, 2001, the company acquired an interest
       of $130,242 in Tillyard Management Inc., a property management company,
       in consideration of a real estate management software system developed by
       Thinkpath Inc. This investment has been accounted for using the cost
       method. Tillyard was formed to utilize and market the real estate
       management software. The value of the investment was established based
       upon the capitalization for the investee and our share of that
       capitalization. As sufficient funding and interest was not forthcoming,
       the operations of Tillyard were abandoned and the Company wrote down its
       investment at December 31, 2001.




7.      GOODWILL

       Goodwill is the excess of cost over the value of assets acquired over
       liabilities assumed in the purchase of the subsidiaries. Goodwill has
       been allocated to reporting units as follows:
<TABLE>
<CAPTION>

                                               March 31,                 December 31, December 31,
                                                 2003                        2002         2001
                                 --------------------------------------   ----------   ----------
                                         ACCUMULATED   IMPAIRMENT
                                   COST  AMORTIZATION   LOSSES      NET      NET         NET
                                    $         $           $           $        $           $
<S>                               <C>        <C>       <C>        <C>           <C>     <C>
       IT Recruitment             448,634    303,337   145,297         --         --    145,297
         (Systemsearch
          Consulting Services)

       Technical Publications
          & Engineering         5,518,858    535,164 1,234,962  3,748,732  3,748,732  4,983,694
         (CadCam Inc.)
                                ---------- ---------- --------- ---------- ---------  ---------
                                5,967,492    838,501 1,380,259  3,748,732  3,748,732  5,128,991
                               ========== ========== ========== ========== =========  =========
</TABLE>


       Effective January 1, 2002, the Company adopted SFAS No. 142, Goodwill and
       Other Intangible Assets. This statement requires the Company to evaluate
       the carrying value of goodwill and intangible assets based on assumptions
       and estimates of fair value and future cash flow information. These
       assumptions reflect management's best estimates and may differ from
       actual results. If different assumptions and estimates are used, carrying
       values could be adversely impacted, resulting in write downs that could
       adversely affect the Company's earnings.

       During the third quarter of 2002, the company completed its transitional
       goodwill impairment test as of January 1, 2002 and determined that no
       adjustment to the carrying value of goodwill was needed.

       The IT recruitment unit was tested for impairment in the third quarter,
       after the annual forecasting process. Due to a decrease in margins and
       the loss of key sales personnel, operating profits and cash flows were
       lower than expected in the first nine months of 2002. Based on that
       trend, the earnings forecast for the next two years was revised. At
       September 30, 2002, a goodwill impairment loss of $57,808 was recognized
       in the IT recruitment reporting unit. The fair value of that reporting
       unit was estimated using the expected present value of future cash flows.

       During the fourth quarter, the IT recruitment unit experienced further
       decline, indicating impairment. The fair value of the unit was estimated
       using the expected present value of future cash flows. At December 31,
       2002, a further goodwill impairment loss of $87,489 was recognized.

       The Technical Publications and Engineering unit was tested for impairment
       in the fourth quarter, as operating profits, cash flows and forecasts
       were lower than expected. At December 31, 2002, a goodwill impairment
       loss of $1,234,962 was recognized. The fair value of that reporting unit
       was estimated using the expected present value of future cash flows.

       On an ongoing basis, absent any impairment indicators, the company
       expects to perform a goodwill impairment test as of the end of the third
       quarter of every year.


                                      F-14
<PAGE>
THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)




       The following table presents the impact of adopting SFAS No. 142 on net
       loss and net loss per share had the standard been in effect for the year
       ended December 31, 2001.
<TABLE>
<CAPTION>

                                                                                    2001

<S>                                                                             <C>
       Reported loss from continuing operations                                 (8,559,402)

       Adjustments:
         Amortization of goodwill                                                  454,908
                                                                                 ---------

       Adjusted loss from continuing operations                                 (8,104,494)
                                                                                ==========

       Reported loss from continuing operations, before preferred dividends,
       (0.57) basic and fully diluted loss per common share

       Impact of amortization of goodwill                                             0.03
                                                                                     -----
       Adjusted loss from continuing operations, before preferred
       dividends, basis and fully diluted loss per common share                      (0.54)
                                                                                     =====

       Reported loss from continuing operations after preferred dividends       (9,288,142)

       Adjustments:
         Amortization of goodwill                                                  454,908
                                                                                  --------
       Adjusted loss from continuing operations after preferred dividends       (8,833,234)
                                                                                 =========
       Reported loss from continuing operations, after preferred dividends,
       basic and fully diluted loss per common share (0.62)

       Impact of amortization of goodwill                                             0.03
                                                                                     -----
       Adjusted loss from continuing operations, after preferred                     (0.59)
       dividends, basis and fully diluted loss per common share                       =====
</TABLE>


       Amortization for the year ended December 31, 2001 was $454,908.
       Effective July 1, 2001, the Company changed its amortization period
       from 30 to 15 years on a prospective basis. The goodwill amortization
       and any impairment write down reported in 2001 relate to continuing
       operations.

       In accordance with the requirements of SFAS 121 and SFAS 142, the
       impairment of goodwill has resulted in the writedown of the following
       amounts;
                                                         2002              2001
                                                     --------         ---------
       Systemsearch Consulting Services               145,297           238,673
       CadCam Inc.                                  1,234,962                --
       MicroTech Professionals Inc.                        --         2,762,718
       International Career Specialists                    --                --
       E-Wink Inc.                                         --                --
                                                    ---------        ----------
                                                    1,380,259         3,001,391
                                                    =========        ==========

       Systemsearch Consulting Services Inc., MicroTech Professionals Inc.,
       International Career Specialists and E-Wink Inc. are inactive companies.



                                      F-15
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)






8.    OTHER ASSETS
<TABLE>
<CAPTION>

                                                       March 31,   December 31,   December 31,
                                                           2003           2002           2001
                                                              $              $              $
<S>                                                    <C>             <C>           <C>
             Deferred development cost                       --             --        993,765
             Deferred financing costs                        --             --             --
             Deferred contracts                              --             --        250,000
             Cash surrender value of life insurance      50,642         49,303         43,945
                                                       --------      ---------      ---------
                                                         50,642         49,303      1,287,710
                                                       ========      =========      =========
</TABLE>


       Amortization of other assets for the year ended December 31, 2002
       amounted to $317,886. Amortization for the year ended December 31, 2001
       amounted to $510,038.



9.     BANK INDEBTEDNESS

i)     March 31, 2003

       At March 31, 2003, the company had $1,300,000 outstanding with Morrison
       Financial Services Limited under a receivable discount facility which
       allows the company to borrow up to 75% of the value of qualified accounts
       receivables.

ii)    December 31, 2002

       On December 5, 2002, Bank One's security and indebtedness were purchased
       by Morrison Financial Services Limited. Bank One accepted a $1,100,000
       discount on the payoff of its debt. On July 1, 2002 the company entered
       into a Forbearance and Modification Agreement with Bank One which was
       subsequently amended on August 1, 2002, August 15, 2002, September 1,
       2002, September 16, 2002, September 30, 2002, October 15, 2002, November
       15, 2002, and November 30, 2002. Under the terms of the agreement, the
       Bank was entitled to forbearance fees and payment of related legal fees
       and expenses. The Bank charged the company approximately $250,000 in
       forbearance fees and $18,000 in legal fees.

       Morrison Financial Services Limited charged the company a 15% fee or
       $165,000 for the discount negotiation with Bank One. The discount amount
       of $1,100,000 was recognized by the company as debt forgiveness and the
       fee of $165,000 was netted against this amount for total debt forgiveness
       of $935,000.

iii)   December 31, 2001

       At December 31, 2001, the Company had $4,870,000 outstanding with Bank
       One. The revolving line of credit provided for a maximum borrowing amount
       of $4,760,000 at variable interest rates based on eligible accounts
       receivable. At December 31, 2001, the Company had an overdraft of
       $110,000. The Company did not have an authorized overdraft facility with
       Bank One, however the bank allowed an overdraft of up to $500,000 on a
       regular basis for approximately ten weeks. At December 31, 2001 and
       thereafter, the Company was not in compliance with the covenants
       contained in the revolving line of credit agreement.

       As a result of the default on the loan covenants governing the company's
       credit line facility, Bank One restricted the company's repayment of
       certain subordinated loans and notes payable which affected payments to
       the Business Development Bank of Canada, Roger Walters and Denise
       Dunne-Fushi.



                                      F-16
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)




10.    CONVERTIBLE DEBENTURE

       Pursuant to a share purchase agreement dated December 5, 2002, the
       Company entered into an agreement (the "12% Senior Secured Convertible
       Debenture Agreement"), with a syndicate of investors for debentures of up
       to $3,000,000. The first debenture of $800,000 was purchased together
       with 45,714,285 warrants on closing. The debenture will become due twelve
       months from the date of issuance. The investors will have the right to
       acquire up to $800,000 worth of the Company's common stock at a price the
       lesser of $.0175 or 50% of the average of the three lowest prices on
       three separate trading days during the sixty-day trading period prior to
       conversion. The warrants are exercisable at any time and in any amount
       until December 5, 2009 at a purchase price of $.0175 per share. The
       Company is required to pay interest to the debenture holder on the
       aggregate unconverted and outstanding principal amount of the debenture
       at the rate of 12% per annum, payable on each conversion date and
       maturity date in cash or shares of common stock.

       On December 18, 2002, the Company entered into a share purchase agreement
       with Tazbaz Holdings Limited for the issuance and sale by the Company of
       a $100,000 principal amount Convertible Debenture and 5,625,000 warrants
       to purchase shares of the Company's common stock. The debenture will
       become due twelve months from the date of issuance. Tazbaz Holdings
       Limited will have the right to acquire up to $100,000 worth of our common
       stock at a price the lesser of $.0175 or 50% of the average of the three
       lowest prices on three separate trading days during the sixty-day trading
       period prior to conversion. The warrants are exercisable at any time and
       in any amount until December 18, 2009 at a purchase price of $.0175 per
       share. The Company is required to pay interest to Tazbaz Holdings Limited
       on the aggregate unconverted and outstanding principal amount of the
       debenture at the rate of 12% per annum, payable on each conversion date
       and maturity date in cash or shares of common stock.

       The proceeds of $900,000 received by the company were allocated between
       the warrants and the debenture without warrants on a pro rata basis. Paid
       in capital has been credited by the value of the warrants in the amount
       of $707,050. The value of the beneficial conversion feature was
       determined to be $2,898,328 which was credited to paid in capital and
       charged to earnings as interest expense in 2002.

       During the three months ended March 31, 2003, the company sold an
       additional $875,000 in convertible debentures along with 50,000,000
       warrants. The debenture will become due twelve months from the date of
       issuance. The investors will have the right to acquire up to $875,000
       worth of the Company's common stock at a price the lesser of $.0175 or
       50% of the average of the three lowest prices on three separate trading
       days during the sixty-day trading period prior to conversion. The
       warrants are exercisable at any time and in any amount for a period of
       seven years from closing at a purchase price of $.0175 per share. The
       Company is required to pay interest to the debenture holder on the
       aggregate unconverted and outstanding principal amount of the debenture
       at the rate of 12% per annum, payable on each conversion date and
       maturity date in cash or shares of common stock.

       The proceeds of $875,000 received by the company were allocated between
       the warrants and the debenture without warrants on a pro rata basis. Paid
       in capital has been credited by the value of the warrants in the amount
       of $446,285.

       At March 31, 2003, the value of the beneficial conversion feature on all
       issued convertible debentures was determined to be $3,935,684 which was
       credited to paid in capital and charged to earnings as interest expense.


11.    LONG-TERM DEBT

i)     March 31, 2003

       At March 31, 2003, the Company had a loan balance of $30,978 with the
       Business Development Bank of Canada. The loan was assigned to the Company
       when it combined with TidalBeach Inc. in November 2000. The loan is
       secured by a general security agreement with monthly payments of $950.00
       and bears interest at 12.5%.

       At March 31, 2003, the company had a loan balance of $259,356 with Terry
       Lyons.


                                      F-17
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)





ii)    December 31, 2002
       At December 31, 2002, the Company had a loan balance of $31,397 with the
       Business Development Bank of Canada. The loan was assigned to the Company
       when it combined with TidalBeach Inc. in November 2000. The loan is
       secured by a general security agreement with monthly payments of $950.00
       and bears interest at 12.5%.

       On December 5, 2002, Morrison Financial Services Limited purchased
       additional debt belonging to the Business Development Bank of Canada of
       approximately $440,000 in consideration of $100,000.

       Morrison Financial Services Limited charged the company a 15% fee or
       $45,000 for the discount negotiation with the Business Development Bank
       of Canada. The discount amount of $341,467 was recognized by the company
       as debt forgiveness and the fee of $45,000 was netted against this amount
       for total debt forgiveness of $296,467.

       In May 2002, the company secured a loan of $259,356 from an individual,
       Terry Lyons which was secured by the company's IRS refund. The company
       paid a placement fee of 10% to Mr. Lyons. Although the company received
       its IRS refund in July 2002, Mr. Lyons agreed to an extension of the loan
       until October 31, 2003. The loan is payable in twelve monthly payments of
       $21,613 beginning November 30, 2002 and bears interest at 30% per annum.
       This loan is subordinated to Morrison Financial Services Limited and no
       principal payments have been made.

iii)   December 31, 2001
       At December 31, 2001, the Company had $419,079 in subordinated debt
       outstanding to the Business Development Bank of Canada. At December 31,
       2001 and thereafter, the Company was not in compliance with the covenant
       contained in the loan agreements. The Business Development Bank of Canada
       agreed to postpone principal repayment of its subordinated loans until
       March 2002.

                                           March 31,  December 31,  December 31,
                                             2003         2002          2001
                                              $            $             $
  a)   Included therein:

       A loan with Business Development
       Bank of Canada ("BDC") secured by
       a general security agreement at
       the bank's floating base rate
       plus a variance of 6% per year on
       the principal outstanding. At
       March 31, 2003, the bank's
       floating base rate was 6.5%.
                                               30,978       31,397      419,079

       A loan with T. Lyons payable in
       monthly payments of $21,613 which
       were to begin November 30, 2002
       and bearing interest at 30% per
       annum. This loan is subordinated
       to Morrison Financial Services
       Limited and no principal payments
       have been made.                        259,356      259,356         --

       A loan with Bank One payable in
       19 remaining monthly payments of
       $13,889 plus interest based on
       prime. This loan was paid in full
       on March 31, 2002                       --             --        263,889

       Various capital leases with
       various payment terms and
       interest rates                         133,426      174,191      427,749
                                             --------    ---------    ---------
                                              423,760      464,944    1,110,717
       Less: current portion                  360,322      380,188      528,285
                                             --------    ---------    ---------
                                               63,438     $ 84,756    $ 582,432
                                             ========    =========    =========

  b)   Future principal payments obligations as at March 31, 2003, were as
       follows:

                2003                        360,322
                2004                         63,438
                2005                             --
                2006                             --
                2007                             --
                                          ----------
                                            423,760
                                          ==========



                                      F-18
<PAGE>

THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)



  c)   Interest expense related to long-term debt was $10,834 for the three
       months ended March 31, 2003. Interest expense related to long-term debt
       was $138,240 for the year ended December 31, 2002 ($99,651 in 2001).

  d)   Pursuant to the BDC loan agreement, BDC had the option to acquire
       22,122 common stock for an aggregate consideration of $1. The fair market
       value of these options at the time of issuance was $62,393 ($2.82 per
       option). The imputed discount on these options was amortized over the
       term of the loan as interest and was fully amortized prior to January 1,
       1999. The options were exercised in July 2001.


 12.   NOTES PAYABLE

  a)   On August 1, 2002, the company restructured its note payable to Roger
       Walters, reducing the principal from $675,000 to $240,000 in
       consideration of the issuance of 1,000,000 shares of its common stock.
       The company agreed to issue and register the shares upon obtaining
       shareholder approval of an amendment to its Articles of Incorporation
       increasing its authorized capital stock. Principal payments of $4,000
       will be made monthly and started September 1, 2002 until August 1, 2007.
       This loan is non-interest bearing.

       Also as part of the restructuring, the company agreed to price protection
       on the 1,756,655 shares that were issued to Mr. Walters in January 2002.
       In the event that the bid price is less than $.27 per share when Mr.
       Walters seeks to sell his shares in an open market transaction, the
       Company will be obligated to issue additional shares of unregistered
       common stock with a value equal to the difference between $.27 per share
       and the closing bid price to a floor of $.14 per share.

       The company has accounted for its modification in the terms of its notes
       payable as troubled debt restructuring. Accordingly, the company has
       recognized a gain on the restructuring of the old debt based upon the
       difference between the total carrying value of the original debt (with
       any accrued interest) and the total future cash flows of the restructured
       debt. The gain on the restructured debt, included in expenses in the
       consolidated statement of operations is as follows:

       Old debt
          Principal balance                                   $ 675,000
          Accrued interest                                        --
                                                              ---------

          Carrying value                                        675,000

          Common stock issued
            (2,631,185 shares at $0.0942)                      (247,858)
          Principle balance of new debt                        (240,000)
          Interest (payable through maturity)                     --
                                                             ----------
          Gain on restructured debt                          $  187,142
                                                             ==========

       All future cash payments under the modified terms will be accounted for
       as reductions of note payable and no interest expense will be recognized
       for any period between the closing date and the maturity date.

       The loan is subordinated to Morrison Financial Services Limited and the
       12% Senior Secured Convertible Debenture holders. The company has not
       made any principal payments to Mr. Walters since December 2002 and is
       currently in default of the loan agreement. In the event that the company
       defaults on payment, the principal balance will bear interest at 12% per
       annum until payment is made.


  b)   On August 1, 2002, the company restructured its note payable to
       Denise Dunne-Fushi, reducing the principal from $1,740,536 to $600,000 in
       consideration of the issuance of 4,000,000 shares of its common stock. In
       addition a prior debt conversion of $225,000 that was to be paid in
       capital was forgiven. The company agreed to issue and register the shares
       upon obtaining shareholder approval of an amendment to its Articles of
       Incorporation increasing its authorized capital stock. Principal payments
       of $10,000 per month will begin November 1, 2002 bearing 5% interest
       until October 1, 2007. In addition, the company agreed to cover the
       monthly expense associated with Ms. Dunne-Fushi's family health benefits
       until May 2004 and vehicle lease until August 2004.




                                      F-19
<PAGE>

THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)





       The company has accounted for its modification in the terms of its notes
       payable as troubled debt restructuring. Accordingly, the company has
       recognized a gain on the restructuring of the old debt based upon the
       difference between the total carrying value of the original debt (with
       any accrued interest) and the total future cash flows of the restructured
       debt. The gain on the restructured debt, included in expenses in the
       consolidated statement of operations is as follows:

       Old debt
          Principal balance                            $ 1,740,536
          Accrued interest                                    --
          Capital stock payable                            225,000
                                                       -----------
          Carrying value                                 1,965,536

          Common stock issued
            (4,000,000 shares at $0.0942)                 (376,800)
          Principle balance of new debt                   (600,000)
          Interest, insurance and vehicle lease costs      (98,987)
                                                       -----------
          Gain on restructured debt                    $   889,749
                                                       ===========

       All future cash payments under the modified terms will be accounted for
       as reductions of note payable and no interest, insurance or vehicle
       expense will be recognized for any period between the closing date and
       the maturity date.

       The loan is secured under a general security agreement but is
       subordinated to Morrison Financial Services Limited and the 12% Senior
       Secured Convertible Debenture holders. The company has not made any
       principal payments to Ms. Dunne-Fushi since December 2002 and is
       currently in default of the loan agreement. In the event of default, Ms.
       Dunne-Fushi has the option of enforcing the security she holds.

                                          March 31,   December 31, December 31,
                                            2003          2002           2001
                                              $             $              $

       Note Payable to Roger Walters       224,000     224,000        750,000

       Note Payable to Denise Dunne        667,326     670,957      1,740,000
                                          --------    --------     ----------
                                           891,326     894,957      2,490,000
       Less: current portion               208,761     208,254        150,000
                                          --------    --------     ----------
                                          $682,565    $686,703     $2,340,000
                                          ========    ========     ==========


  c)   Capital repayments as at March 31, 2003


                 2003                 208,761
                 2004                 193,911
                 2005                 182,250
                 2006                 176,250
                 2007                 130,154
                                   ----------
                                    $ 891,326
                                   ==========



                                      F-20
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)




13.    CAPITAL STOCK


       a)  Authorized

       800,000,000   Common stock, no par value (100,000,000 at
                     December 31, 2002)
         1,000,000   Preferred stock, issuable in series, rights to be
                     determined by the Board of Directors


       b)  Issued

       On June 8, 1999, the company was successful in its Initial Public
       Offering. 1,100,000 common stock were issued at an issuance price of
       $5.00 per share. Net proceeds received, after all costs, was $3,442,683.
       The company trades on the OTC:BB under the trading symbol "THTH-F". As
       part of the Initial Public Offering, the underwriters exercised the over-
       allotment, resulting in 107,000 common stock being issued for net
       proceeds of $465,000. Deferred costs of $1,351,365, which were incurred
       as part of the completion of the Initial Public Offering, have been
       applied against the proceeds raised by the offering, and are included in
       the net proceeds.

       On June 30, 1999, 163,767 common stock were issued in conjunction with
       the acquisition of Cad Cam Inc., with a carrying value of $500,000.

       During 2000, the company effected two acquisitions accounted for as
       pooling of interest and therefore the capital stock of the company
       outstanding at January 1, 1999 and December 31, 1999 have been restated
       to reflect the aggregate capital stock and shareholder equity amounts as
       follows:
                                                           #            $
          Original Balance as of December 31, 1998      1,717,875    1,448,368
          Issuance of Shares for pooling of interest      777,260      344,576
                                                        ---------    ---------
          Revised Balance as of December 31, 1998       2,495,135    1,792,944
                                                        =========    =========

       As part of the acquisition of ObjectArts Inc., the company issued 196,800
       common shares for a total consideration of $837,151 on the conversion of
       debt to common shares.

       On April 25, 2000, 133,333 common stock were issued for the purchase of
       MicroTech Professionals Inc., for a total consideration of $500,000.

       During 2000, 300,000 common stock were issued as partial consideration
       for the purchase of shares of E-Wink Inc. for a value of $975,000.

       On August 22, 2000, 1,063,851 shares of common stock and 560,627 warrants
       were issued in a private placement for net proceeds of $2,333,715 (gross
       proceeds of $2,681,600).

       During 2000, 3,533,111 common stock were issued for services rendered
       totaling $3,160,288. An amount of $110,000 has been included in the
       acquisition of MicroTech and the balance of $3,050,288 has been included
       in financing expenses as of December 31, 2000. The shares were valued at
       the date of issue based upon the trading price.

       During 2000, 1,694,343 common stock were issued on the conversion of
       Preferred Stock.

       The company has issued 1,800,000 common shares of the company in
       consideration of services rendered related to the acquisition of various
       subsidiaries. These shares are included in common stock issued in
       consideration of services in the amount of $1,125,000 and have been
       included in Acquisition costs and financing expenses for December 31,
       2000.



                                      F-21
<PAGE>
THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)





       On September 13, 2000, Thinkpath Inc. entered into an agreement with
       Burlington Capital Markets Inc. to aid the company in further
       acquisitions. The agreement with Burlington Capital Markets Inc.
       (Burlington) provided for the issuance of 250,000 shares of our common
       stock at a cash purchase price of $.01 per share upon signing of the
       agreement. We further agreed to issue 250,000 at a cash price of $.01 per
       share upon the successful completion of the Company's first acquisition
       initiated through Burlington. We further agreed to issue warrants to
       purchase an aggregate of 400,000 shares of our common stock according to
       the following schedule: (i) 100,000 shares at an exercise price of $5.00
       per share, exercisable at any time after October 13, 2000; (ii) 100,000
       shares at an exercise price of $7.00 per share, exercisable at any time
       after November 13, 2000; (iii) 100,000 shares at an exercise price of
       $9.00 per share, exercisable at any time after December 13, 2000, and
       (iv) 100,000 shares at an exercise price of $11.00 per share, exercisable
       at any time after February 13, 2001. Such warrants were exercisable in
       whole or in part 5 years from the respective vesting date and contained a
       cashless exercise provision and registration rights.

       Compensation was to be paid to Burlington at a monthly fee of $10,000 for
       the term of the agreement with a minimum notice period for termination of
       six months. Through Burlington, the company began to pursue the
       acquisition of Aquila Holdings Limited and a letter of intent was signed
       on October 4, 2000. The company and Aquila subsequently agreed to
       postpone the transaction. The agreement with Burlington was subsequently
       terminated and no warrants were issued. In the aggregate, Burlington
       received 425,000 shares of our common stock and $10,000 pursuant to the
       agreement. The additional 175,000 shares constituted compensation to
       Burlington Capital Markets Inc. as a settlement on the termination of the
       agreement for their entitlement to the monthly fees and the arrival at a
       letter of intent for the acquisition of Aquila.The difference between the
       fair market value of the shares and the purchase price of $.01 represents
       the value agreed between the Company and Burlington for its acquisition
       services. The total of 425,000 common shares has been reflected as issued
       for an aggregate cost of $717,250 based on the stock price at the date of
       the performance was complete. This amount has been expensed in the year
       ended December 31, 2000 and is included in financing expenses.

       During January 2001, the Company agreed to issue 250,000 warrants to
       acquire shares of the company at $1.50 and to re-price a total of 330,693
       options to an exercise price of $1.00. In consideration of the foregoing,
       a total of 275,000 shares were issued for an amount of $275,000 in cash.
       The terms of the warrants are indicated in note 13(e). The value of the
       repricing of the warrants and the new warrants issued have been treated
       as the part of the allocation of the proceeds on the issuance of the
       common stock.

       On June 6, 2001, the Company amended its Articles of Incorporation to
       increase its authorized common stock from 15,000,000 to 30,000,000.

       During the year December 31, 2001, the Company issued 400,000 shares of
       its common stock in consideration of $203,000 in cash.

       During the year ended December 31, 2001, the Company issued 30,632 shares
       of its common stock in consideration of legal services, 300,000 shares of
       its common stock in consideration of investment banking services, 596,667
       shares to reduce common stock payable of $709,005, and 93,883 shares in
       settlement of accounts payable. The shares were valued at the date of
       issue based upon the trading price.

       On May 24, 2002, the company entered into a loan agreement with Tazbaz
       Holdings Inc., an Ontario Corporation. Pursuant to the agreement, Tazbaz
       securitized an overdraft position of the company with Bank One in the
       amount of $650,000 in consideration of an aggregate of 3,221,126 shares
       of its common stock.

       On June 24, 2002, the company entered into consulting agreements with
       each of Mark Young and George Georgiou pursuant to which Messrs. Young
       and Georgiou shall perform consulting services with respect to corporate
       and debt restructuring. In consideration for such services the company
       issued 2,250,000 and 1,000,000 shares of its common stock to Messrs.
       Young and Georgiou, respectively. Pursuant to the agreement the company
       registered such shares of common stock under an S-8 registration
       statement. The shares were valued at the date of issue based upon the
       trading price.

       On October 1, 2002, the company entered into consulting agreements with a
       group of seven consultants with expertise in restructuring, financing,
       legal and management services for one-year terms to assist the company
       with its restructuring and refinancing efforts. In consideration for such
       services the Company issued warrants to purchase 10,600,000 shares of our
       common stock at an exercise price of $0.025 per share.


                                      F-22
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)




       On October 4, 2002, the company's securities were delisted from The
       Nasdaq SmallCap Market, for failure to comply with the minimum bid price
       or net tangible assets requirements for continued listing, as set forth
       in Nasdaq's Marketplace Rule 4310(c)(4). The company also failed to meet
       the initial inclusion requirements under Nasdaq's Marketplace Rule
       4310(c)(2)(A) including minimum stockholders' equity of $5 million,
       market capitalization of $50 million or net income of $750,000 (excluding
       extraordinary or non-recurring items) in the most recently completed
       fiscal year or in two of the last three most recently completed fiscal
       years.

       On October 16, 2002, the Company amended its Articles of Incorporation to
       increase its authorized common stock from 30,000,000 to 100,000,000.

       During the year ended December 31, 2002, the Company issued 588,235
       shares of its common stock as payment of an executive bonus in the amount
       of $100,000, 8,387,840 shares to reduce common stock payable of
       $1,098,955, and 2,393,783 shares in settlement of various accounts
       payable and liabilities in the amount of $334,348.

       During the year ended December 31, 2002, the company issued both shares
       of its common stock and warrants as payment for a variety of services:
       1,230,000 shares in consideration of investor relations and marketing
       services in the amount of $79,000; 1,651,495 shares and warrants in
       consideration of finance services in the amount of $719,664; 546,531
       shares in consideration of restructuring services in the amount of
       $45,321; 3,250,000 shares pursuant to the June 24, 2002 consulting
       agreements with Mr. Young and Mr. Georgiou in the amount of $520,000; and
       7,200,000 shares on the exercise of warrants pursuant to the October 1,
       2002 consulting agreements in the amount of $192,500. The shares were
       valued at the date of issue based upon the trading price.

       On January 24, 2003, the company amended its Articles of Incorporation to
       increase its authorized common stock from 100,000,000 to 800,000,000.

       On January 28, 2003, the company registered an aggregate of 12,427,535
       shares of common stock, no par value per share, issued to Declan A.
       French, the company's Chief Executive Officer, pursuant to an amendment
       to his employment agreement.

       On February 7, 2003, the company entered into a consulting agreement with
       Rainery Barba, who shall perform legal and advisory services for a period
       of one year. In consideration for such services the company registered an
       aggregate of 4,000,000 shares of common stock, no par value per share.

       On February 7, 2003, the company entered into a consulting agreement with
       Dailyfinancial.com Inc. who shall perform corporate consulting services
       in connection with mergers and acquisitions, corporate finance and other
       financial services. In consideration for such services the company issued
       4,200,000 shares of common stock, no par value per share.

       During the three months ended March 31, 2003, the company issued
       3,502,695 shares of its common stock in settlement of various accounts
       payable and liabilities in the amount of $80,147.

       During the three months ended March 31, 2003, the company issued both
       shares of its common stock and warrants as payment for a variety of
       services: 2,280,000 shares and warrants in consideration of finance
       services in the amount of $57,000; 4,000,000 shares in consideration of
       legal services pursuant to the February 7, 2003, agreement with Rainery
       Barba; 4,200,000 shares in consideration of financial services pursuant
       to the February 7, 2003 agreement with Dailyfinancial.com Inc.; 500,000
       shares in consideration of financial services.

       During the three months ended March 31, 2003, the company issued
       37,966,363 shares of its common stock upon the conversion of 12% Senior
       Secured Convertible Debentures in the amount of $61,012.


                                      F-23
<PAGE>
THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)





  c)   Liabilities payable in common stock

       During the year ended December 31, 2001, the company issued 316,667
       shares to reduce a note payable of $625,000 to Denise Dunne related to
       the purchase of MicroTech Professionals Inc. The company also issued
       280,000 shares in relation to a settlement with an Njoyn employee. The
       balance at December 31, 2001, represents $474,297 to Roger Walters in
       settlement of a note payable, and $225,000 to Denise Dunne also in
       settlement of a note payable.

       During the year ended December 31, 2002, the company issued 4,387,840
       shares of its common stock to reduce a note payable of $909,297 to Roger
       Walters related to the purchase of CadCam Inc.

       During the year ended December 31, 2002, the company issued 4,000,000
       shares of its common stock to reduce a note payable of $1,140,536 to
       Denise Dunne related to the purchase of MicroTech Professionals Inc.


  d)   Preferred Stock

       On December 30, 1999, 15,000 shares of series A, 8% cumulative,
       convertible, preferred stock, no par value were issued in a private
       placement for gross proceeds of $1,500,000. The preferred stock were
       convertible into common stock at the option of the holders under certain
       conditions, at any time after the effective date of the registration
       statement. The conversion price was based on the trading price at
       December 30, 1999 or 80% of the average of the ten trading days
       immediately preceding the conversion of the respective shares of Series
       A, preferred stock. The stockholders of the Series A, 8% cumulative,
       convertible stock were entitled to receive preferential cumulative
       quarterly dividends in cash or shares at a rate of 8% simple interest per
       annum on the stated value per share. The intrinsic value of the
       conversion price at date of issue was reflected as a dividend of
       $138,000.

       At any time after the effective date of the registration statement,
       Thinkpath Inc. had the option to redeem any or all of the shares of
       Series A, 8% cumulative, convertible, preferred stock by paying to the
       holders a sum of money equal to 135% of the stated value of the aggregate
       of the shares being redeemed if the conversion price was less than $2.00.

       Thinkpath Inc. held the option to cause the investors in the December 30,
       1999 placement offering to purchase an additional $500,000 worth of
       Series A, 8% cumulative, convertible, preferred stock upon the same terms
       as described above. This right was exercised in July, 2000.

       On April 16, 2000, 2,500 shares of Series A, 8% cumulative, convertible,
       preferred stock, no par value were issued in a private placement for
       gross proceeds of $250,000. The proceeds were reduced by any issue
       expenses.

       On April 16, 2000, 1,500 shares of Series B, 8% cumulative, convertible,
       preferred stock, no par value were issued in a private placement for
       gross proceeds of $1,500,000. The proceeds were reduced by any issue
       expenses.

       On July 7, 2000, 5000 shares of Series A, 8% cumulative, convertible,
       preferred stock, no par value were issued in a private placement for
       gross proceeds of $500,000. The proceeds were reduced by any issue
       expenses.

       The preferred stock were convertible into common stock at the option of
       the holders under certain conditions, at any time after the effective
       date of the registration statement.

       As of March 31, 2003, there were no Series A or B Convertible Preferred
       Stock outstanding.

       Pursuant to a share purchase agreement dated April 18, 2001, the Company
       issued 1,105 shares of Series C 7% Cumulative Convertible Preferred Stock
       (Series C Preferred Stock). Each share of Series C Preferred Stock had a
       stated value of $1,000 per share. The shares of Series C Preferred Stock
       were convertible into shares of the Company's common stock at the option
       of the holders, at any time after issuance until such shares of Series C
       Preferred Stock were manditorily converted or redeemed by the Company,
       under certain conditions. The Company was required to register 200% of
       the shares of common stock issuable upon the conversion of the 1,105
       shares of Series C Preferred Stock. In addition, upon the effective date
       of such registration statement, the Company was obligated to issue to the
       holders of Series C Preferred Stock an aggregate of 500 shares of Series
       C Preferred Stock in consideration for $500,000, under certain
       conditions.


                                      F-24
<PAGE>

THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)


       The number of shares of the Company's common stock into which the Series
       C Preferred stock was convertible into that number of shares of common
       stock equal to (i) the sum of (A) the stated value per share and (B) at
       the holder's election, accrued and unpaid dividends on such share,
       divided by (ii) the Conversion Price". The "Conversion Price" was the
       lesser of (x) 87.5% of the average of the 5 lowest daily volume weighted
       average prices of the Company's common stock during the period of 60
       consecutive trading days immediately prior the date of the conversion
       notice; or (y) 90% of the average of the daily volume weighted average
       prices during the period of the 5 trading days prior to the applicable
       closing date ($.4798 with respect to the 1,105 shares of Series C 7%
       Preferred Stock issued and outstanding). The Conversion Price was subject
       to certain floor and time limitations.

       During the year ended December 31, 2001, the Company issued 3,864,634
       common stock on the conversion of 1,050 Series A preferred stock, 750
       Series B preferred stock and 285 Series C preferred stock. The Company
       paid dividends of $723,607 on the conversions.

       During the year ended December 31, 2002, the Company issued 23,278,448
       shares of its common Stock on the conversion of 945 Series C preferred
       stock. The Company paid dividends of $100,387 on the conversions. As of
       March 31, 2003, there were no Series C preferred stock outstanding.

       The proceeds received on the issue of Class C preferred shares have been
       allocated between the value of detachable warrants issued and the
       preferred shares outstanding on the basis of their relative fair values.
       Paid in capital has been credited by the value of the warrants and
       retained earnings charged for the amount of preferred dividends
       effectively paid. The conversion benefit existing at the time of issue of
       the preferred Class C shares has been computed and this amount has been
       credited to paid in capital for the Class C preferred shares and charged
       to retained earnings as dividends on the Class C preferred shares.


  e)   Warrants

       On December 30, 1999, 475,000 warrants were issued in conjunction with
       the private placement of the Series A, preferred stock. They are
       exercisable at any time and in any amount until December 30, 2004 at a
       purchase price of $3.24 per share. These warrants have been valued at
       $1,091,606 based on the Black Scholes model utilizing a volatility rate
       of 100% and a risk-less interest rate of 6.33%. This amount has been
       treated as a cumulative effect adjustment to retained earnings. For
       purposes of earnings per share, this amount has been included with
       preferred share dividend in the 2000 financial statements.

       In connection with the Initial Public Offering, the underwriters received
       110,000 warrants. They are exercisable at a purchase price of $8.25 per
       share until June 1, 2004.

       On April 16, 2000, we issued 50,000 warrants in connection with a private
       placement of Series A stock and 300,000 warrants on the issue of Class B
       preferred shares. The warrants were issued with a strike price of $3.71
       and expire April 16, 2005. These warrants have been valued at $939,981
       based on the Black Scholes model utilizing a volatility rate of 100% and
       a risk-less interest rate of 6.18%. This amount has been treated as a
       preferred share dividend in the 2000 financial statements.

       In connection with the private placement of Series B preferred stock
       225,000 warrants were issued. They are exercisable at a purchase price of
       $3.58. These warrants have been valued at $533,537 based on the Black
       Scholes model utilizing a volatility rate of 100% and a risk-less
       interest rate of 6.13%. This amount has been treated as a preferred share
       dividend in the 2000 financial statements.

       In 2000, in connection with the purchase of the investment in E-Wink
       500,000 warrants were issued. They are exercisable at a purchase price of
       $3.25 and expire March 6, 2005. These warrants have been valued at
       $1,458,700 based on the Black Scholes model utilizing a volatility rate
       of 100% and a risk-less interest rate of 6.50%. This amount has been
       treated as part of the cost of the E-Wink investment.

       In 2000, in connection with the private placement of August 22, 2000,
       560,627 warrants were issued. They are exercisable at a purchase price of
       $2.46 and expire August 22, 2005. These warrants have been valued at
       $1,295,049 based on the Black Scholes model utilizing a volatility rate
       of 100% and a risk-less interest rate of 6.13%. This amount has been
       treated as an allocation of the proceeds on the common stock issuance.




                                      F-25
<PAGE>




THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)



       On January 26, 2001, the Company: (i) repriced warrants to purchase up to
       100,000 shares of its common stock, which warrant was issued to a certain
       investor in our April 2000 private placement offering of Series B 8%
       Cumulative Preferred Stock, so that such warrant is exercisable at any
       time until April 16, 2005 at a new purchase price of $1.00 per share; (b)
       repriced warrants to purchase an aggregate of up to 280,693 shares of its
       common stock, which warrants were issued to the placement agent, certain
       financial advisors, and the placement agent's counsel in our August 2000
       private placement offering of units, so that such warrants are
       exercisable at any time until August 22, 2005 at a new purchase price of
       $1.00 per share; and (c) issued warrants to purchase up to 250,000 shares
       of its common stock exercisable at any time and in any amount until
       January 26, 2006 at a purchase price of $1.50 per share. In February
       2001, 150,000 of such warrants were exercised by KSH Investment Group,
       the placement agent in the Company's August 2000 private placement
       offering. The exercise prices of the revised and newly issued warrants
       are equal to, or in excess of, the market price of our common stock on
       the date of such revision or issuance.

       Following verbal agreements in December 2000, on January 24, 2001, the
       company signed an agreement with The Del Mar Consulting Group, a
       California corporation, to represent it in investors' communications and
       public relations with existing shareholders, brokers, dealers and other
       investment professionals. The company issued a non-refundable retainer of
       400,000 shares to Del Mar and are required to pay $4,000 per month for
       on-going consulting services. In addition, Del Mar has a warrant to
       purchase 400,000 shares of common stock at $1.00 per share and 100,000
       shares at $2.00 which expires January 24, 2005 and which are exercisable
       commencing August 1, 2001. As the agreement to issue the non- refundable
       retainer was reached in December 2000, the 400,000 shares with a value of
       $268,000 has been included in the shares issued for services rendered and
       has been included in financing expenses for December 31, 2000. The
       commitment to issue the non-refundable deposit was effected in December
       2000. The value of the warrants of $216,348 has been included in paid in
       capital in January 2001 and the expense was reflected over the six month
       period ending August 1, 2001. In April 2001, the warrants were cancelled
       and new warrants were issued which are exercisable at $0.55. 200,000 of
       the warrants are exercisable commencing April 2001 and the balance are
       exercisable commencing August 1, 2001. The value of the change in the
       warrants of $29,702 has been included in the paid in capital in April
       2001 and the additional expense was amortized in the period ending August
       1, 2001.

       During the year ended December 31, 2001, the company issued 22,122 shares
       to the Business Development Bank of Canada on the exercise of warrants at
       $1.00.

       During the year ended December 31, 2001, the Company issued 723,436
       warrants to the Series C Preferred Stock investors of which 663,484 have
       a strike price of $0.54 and expire on April 18, 2005. The balance of
       59,952 have a strike price of $0.63 and expire on June 8, 2005. As of
       December 31, 2002, all 723,436 warrants issued in connection with the
       purchase of the Series C Preferred Stock remain outstanding and none have
       been exercised.

       On May 24, 2002, the company entered into an agreement with Tazbaz
       Holdings Limited, pursuant to which Tazbaz securitized an overdraft
       position of the company with Bank One in the amount of $650,000 until the
       Bank's repayment on December 5, 2002. Pursuant to this agreement the
       company issued 10,000,000 warrants; 6,000,000 of which are exercisable at
       any time and in any amount until November 15, 2009 at a purchase price of
       $.08 per share, and 4,000,000 of which are exercisable at any time and in
       any amount until November 15, 2009 at a purchase price of $.04 per share.

       On October 1, 2002, the company entered into consulting agreements with a
       group of seven consultants with expertise in restructuring, financing,
       legal and management services for one-year terms to assist the company
       with its restructuring and refinancing efforts. In consideration for such
       services the company issued 10,600,000 warrants which are exercisable at
       any time and in any amount until September 30, 2003 at a purchase price
       of $.025 per share. As of December 31, 2002, 7,200,000 warrants had been
       exercised with net proceeds of $192,500.

       On December 5, 2002, the company issued 45,714,285 warrants to holders of
       the 12% Senior Secured Convertible Debentures which are exercisable at
       any time and in any amount until December 5, 2009 at a purchase price of
       $.0175 per share.

       Pursuant to the December 18, 2002 convertible debenture, the company
       issued 5,625,000 warrants to Tazbaz Holdings Limited, which are
       exercisable at any time and in any amount until December 18, 2009 also at
       a purchase price of $0.175 per share.

       During the three months ended March 31, 2003, the company issued
       50,000,000 warrants to holders of the 12% Senior Secured Convertible
       Debentures which are exercisable at any time and in any amount for seven
       years from the date of closing at a purchase price of $.0175 per share.





                                      F-26
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)





  f)   Stock Options

       The company had outstanding stock options issued in conjunction with its
       long-term financing agreements for 22,122 common stock which were
       exercised in July 2001, the cost of which has been expensed prior to
       January 1, 1999, and additional options issued to a previous employee of
       the company for 200,000 shares exercisable at $2.10, of which 18,508 were
       exercised during 2000. The balance of 181,492 remain outstanding.

       During 1999, 250,500 options to purchase shares of the company were
       issued to related parties. The options are exercisable at $3.19.

       In connection with the acquisition of Cad Cam Inc. 100,000 options to
       purchase shares of the company were delivered in quarterly installments
       of 25,000 options each, starting January 1, 2000. The exercise amounts
       ranged from $2.12 to $3.25. The exercise price was amended to $1.00 and
       these options will be exercisable between April 4, 2001 to 2004. The cost
       of re-pricing of these options totaling $100,000 has been recorded in
       Acquisition costs and financing expenses for the year ended December 31,
       2000.

       In July 1999, the directors of the company adopted and the stockholders
       approved the adoption of the company's 1998 Stock Option Plan. In May
       2000, the directors approved the adoption of the 2000 Stock Option Plan.
       In June 2001, the directors approved the adoption of the 2001 Stock
       Option Plan. Each of the plans provides for the issuance of 435,000
       options. In October 2002, the directors of the company adopted and the
       stockholders approved the adoption of the company's 2002 Stock Option
       Plan which provides for the issuance of 6,500,000 options.

       The plans are administrated by the Compensation Committee or the Board of
       Directors, which determine among other things, those individuals who
       shall receive options, the time period during which the options may be
       partially or fully exercised, the number of common stock to be issued
       upon the exercise of the options and the option exercise price.

       The plans are effective for a period of ten years and options may be
       granted to officers, directors, consultants, key employees, advisors and
       similar parties who provide their skills and expertise to the company.

       Options granted under the plans generally require a three-year vesting
       period, and shall be at an exercise price that may not be less than the
       fair market value of the common stock on the date of the grant. Options
       are non-transferable and if a participant ceases affiliation with the
       company by reason of death, permanent disability or retirement at or
       after age 65, the option remains exercisable for one year from such
       occurrence but not beyond the option's expiration date. Other types of
       termination allow the participant 90 days to exercise the option, except
       for termination for cause, which results in immediate termination of the
       option.

       Any unexercised options that expire or that terminate upon an employee's
       ceasing to be employed by the company become available again for issuance
       under the plans, subject to applicable securities regulation.

       The plans may be terminated or amended at any time by the Board of
       Directors, except that the number of common stock reserved for issuance
       upon the exercise of options granted under the plans may not be increased
       without the consent of the stockholders of the company.

       Included in the options granted in 2000 were 260,000 options issued to
       related parties in December 2000. The options are exercisable at $0.70
       and expire December 2005.


14.    FINANCING EXPENSES

       Financing expenses represent the following;

       a) Acquisition costs incurred which are not related to a successfully
       completed acquisition and the costs incurred on the merger with entities
       treated as a pooling of interest.

       b) Financing expenses include consulting services for financing and the
       cost of options and warrants.


                                      F-27
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)


15.    RESTRUCTURING COSTS

       i) December 31, 2002

       At the end of December 31, 2001 the Company had a restructuring reserve
       balance of $79,118 as a result of certain of the Company's actions to
       better align its cost structure with expected revenue growth rates. The
       restructuring activities related to the closure of one training location
       in London, Ontario resulting in costs to sever 3 employees with long-term
       contracts until December 2002 and the lease commitment for the premises
       in London Ontario. These long-term contracts do not require the employees
       to provide services until the date of involuntary termination. Other
       employees at the London location, without contracts, were terminated
       during March 2001 and April 2001

       The accrual was relieved throughout fiscal 2002 as severance payments
       were completed. Details of the restructuring costs and reserve balance is
       as follows;
<TABLE>
<CAPTION>

        Description        Cash/    Reserve balance   Restructuring  Activity  Reserve balance
                          non/cash  December 31,2001      Costs                December 31, 2002

        Severance packages
<S>                         <C>      <C>               <C>          <C>          <C>
         London-Training    Cash      66,518               --        (66,518)       --
       Lease cancellation
        London-Training     Cash      12,600               --        (12,600)       --
                                     -------           -------       -------    -------
           Commitments                79,118               --        (79,118)       --
                                     =======           =======       =======    =======
</TABLE>


       ii) December 31, 2001

       At the end of December 31, 2000 the Company had a restructuring reserve
       balance of $571,339 as a result of certain of the Company's actions to
       better align its cost structure with expected revenue growth rates. The
       restructuring activities related to the closure of one training location
       in London, Ontario resulting in costs to sever 3 employees with long-term
       contracts until December 2002 and the lease commitment for the premises
       in London Ontario. These long-term contracts do not require the employees
       to provide services until the date of involuntary termination. Other
       employees at the London location, without contracts, have been terminated
       during March 2001 and April 2001. During the three months ended September
       2001, the lease cancellation costs for London have been reduced by
       $30,700 and the severance costs for London have been reduced by $56,000.
       These amounts represent settlements reached with the landlord and one of
       the three employees with long term contracts. The employee agreed to a
       reduction in the term of the contract which resulted in a reduction of
       the liability of $56,000.

       In February 2001, the company started to close down one of its research
       and development (R&D) Operations located in Toronto. The company
       continued to terminate employees until April 2001. The premises are
       subject to a long-term lease and will be utilized for corporate needs in
       the future. Restructuring costs include rent for the current period for
       the Toronto R&D space. The company moved its operations into this space
       at the end of October 2001.

       The remaining accrual will be relieved throughout fiscal 2001, as leases
       expire and severance payments, some of which are paid on a monthly basis,
       are completed. Details of the restructuring costs and reserve balance is
       as follows;
<TABLE>
<CAPTION>

       Description            Cash/   Reserve balance   Restructuring  Activity  Reserve balance
                            non/cash  December 31, 2000     Costs                December 31, 2001

       Severance packages
<S>                           <C>        <C>          <C>            <C>          <C>
          London-Training       Cash     435,173           50,696      (419,351)    66,518
          Toronto-R&D           Cash      17,640          (25,348)        7,708        --
       Lease cancellations
          London-Training       Cash     118,526           27,159      (133,085)    12,600
          Toronto-R&D           Cash                      439,714      (439,714)       --
                                         -------          -------      -------     -------
       Commitments                       571,339          492,221     (984,442)     79,118
                                         =======          =======      =======     =======
</TABLE>



                                      F-28
<PAGE>





16.    DEFERRED INCOME TAXES AND INCOME TAXES


       a) Deferred Income Taxes

       The components of the future tax liability classified by source of
       temporary differences that gave rise to the benefit are as follows:
<TABLE>
<CAPTION>

                                                  March 31,     December 31,   December 31,
                                                      2003             2002           2001
                                                         $                $            $
       Accounting amortization in excess of tax
<S>                                                  <C>              <C>            <C>
       amortization                                  9,875            9,875          9,875
       Losses available to offset future income
       taxes                                     3,364,376        3,113,829      2,909,873
       Share issue costs                           429,785          429,785        532,405
       Adjustment cash to accrual method          (148,461)        (148,461)      (496,879)
       Investment tax credit                            --               --             --
                                                 ---------        ---------      ---------
                                                 3,655,575        3,405,028      2,955,274

       Less:  Valuation allowance                3,655,575        3,405,028      3,105,654
                                                 ---------        ---------      ---------
                                                        --               --       (150,380)
                                                 =========        =========      =========
</TABLE>


       As part of the acquisitions of Cad Cam Inc. and MicroTech Professionals
       Inc., there was a change of control which resulted in the subsidiaries
       being required to change from the cash method to the accrual method of
       accounting for income tax purposes.



  b)   Current Income Taxes
<TABLE>
<CAPTION>
       Current income taxes consist of:
                                                      March 31,     December 31,   December 31,
                                                          2003             2002           2001
                                                             $                $              $
           Amount calculated at Federal and
<S>                                                 <C>              <C>            <C>
                  Provincial statutory rates        (1,862,233)      (3,258,661)    (3,533,461)
                                                    ----------       ----------      ---------
           Increase (decrease) resulting from:
                  Permanent differences              1,616,555        2,928,884      1,629,464
                  Timing differences                       --                --       (141,868)
                  Valuation allowance                  250,547          299,374      2,895,654
                                                     ---------       ----------      ---------
                                                     1,867,102        3,228,258      4,383,250
                                                     ---------       ----------      ---------
           Current income taxes                          4,869          (30,403)       849,789
                                                     =========       ==========      =========
</TABLE>


       Issue expenses totaling approximately $1,300,000 may be claimed at the
       rate of 20% per year until 2005. To the extent that these expenses create
       a loss, the loss is available to be carried forward for seven years from
       the year the loss is incurred. As the US subsidiaries have been acquired
       by a non-US entity, the taxable income will be increased by approximately
       $1,025,000 over the next two years as the company is required to change
       its taxation method from the cash basis to the accrual basis. The company
       has not reflected the benefit of utilizing non-capital losses totaling
       approximately $10,200,000 or a capital loss totaling $750,000 in the
       future as a deferred tax asset as at March 31, 2003. As at the completion
       of the March 31, 2003 financial statements, management believed it was
       more likely than not that the results of future operations would not
       generate sufficient taxable income to realize the deferred tax assets.



                                      F-29
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)





17.    OTHER COMPREHENSIVE INCOME (LOSS)

       Comprehensive income (loss) for the three months ended March 31, 2003:

<TABLE>
<CAPTION>
                                                       Before Tax     Tax (Expense)     Net-of-Tax
                                                         Amount        or Benefit           Amount
                                                         ------        ----------           ------

<S>                                                   <C>              <C>             <C>
       Foreign currency translation adjustments              --               --               --

       Adjustment to market value                            --               --               --
                                                       ---------         -------        ---------

       Other comprehensive income (loss)                     --               --               --
                                                       =========         ========       =========


       Comprehensive income (loss) for the year ended December 31, 2002:

                                                       Before Tax     Tax (Expense)     Net-of-Tax
                                                         Amount        or Benefit           Amount
                                                         ------        ----------           ------

       Foreign currency translation adjustments        (171,283)              --         (171,283)

       Adjustment to market value                      (300,747)              --         (300,747)
                                                       ---------         -------        ---------

       Other comprehensive income (loss)               (472,030)              --         (472,030)
                                                       =========         ========       =========


       Comprehensive income (loss) for the year ended December 31, 2001:

                                                       Before Tax     Tax (Expense)     Net-of-Tax
                                                           Amount        or Benefit         Amount
                                                           ------        ----------         ------

       Foreign currency translation adjustments          209,506             -             209,506

       Adjustment to market value                       (230,643)         69,193          (161,450)
                                                       ---------         -------         ---------

       Other comprehensive income (loss)                 (21,137)         69,193            48,056
                                                       =========         ========        =========
</TABLE>



       The foreign currency translation adjustments are not currently adjusted
       for income taxes since the company is situated in Canada and the
       adjustments relate to the translation of the financial statements from
       Canadian dollars into United States dollars done only for the convenience
       of the reader.



18.    DISCONTINUED OPERATIONS

       Effective March 8, 2002, the Company sold its technology division, Njoyn
       Software Incorporated to Cognicase Inc., a Canadian company. Net proceeds
       after broker fees were $1,350,000 of which the company received $800,000
       in cash and $550,000 worth of unrestricted common shares on closing. The
       shares were sold on March 11, 2002 for value of $524,673. As part of the
       transaction, Cognicase assumed all of the staff in the Company's
       technology division, including the employees of TidalBeach Inc. The
       company will not have future revenues from either its Njoyn or Secondwave
       products and therefore the technology operations have been reported as
       discontinued.

       There was no technology revenue for the three months ended March 31, 2003
       compared to $41,567 for the same period in 2002 and $204,399 in 2001. The
       operating loss for the three months ended March 31, was $2,748 in 2003,
       $109,875 in 2002 and $77,410 in 2001. On disposal, Njoyn had
       approximately $950,000 in assets consisting primarily of deferred
       development charges and approximately $30,000 in liabilities consisting
       primarily of capital lease obligations. The gain on disposal of $400,229
       has been reflected in the Income (loss) from discontinued operations in
       2002. No income taxes have been reflected on this disposition as the sale
       of the shares gives rise to a capital loss, the benefit of which, is more
       likely than not to be realized.


                                      F-30
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)





       Effective May 1, 2002, the Company signed an agreement with triOS
       Training Centres Limited, an Ontario company, for the purchase of certain
       assets of the Toronto training division, Thinkpath Training for a nominal
       amount of cash and the assumption of all prepaid training liabilities. As
       part of the transaction, triOS assumed the Toronto training staff and is
       subletting the classroom facilities.

       On November 1, 2002, the Company entered into a series of agreements with
       Thinkpath Training LLC, a New York company, for the purchase of certain
       assets of the New York training division, Thinkpath Training for a
       nominal amount of cash and the assumption of all prepaid training
       liabilities. As part of the transaction, Thinkpath Training LLC assumed
       the New York training staff, some assets and is subletting the classroom
       facilities.

       As a result of these two transactions, the company will not have future
       revenues from its training division and therefore the operations have
       been reported as discontinued.

       Training revenue for the three months ended March 31, was $67,589 in
       2003, $391,299 in 2002 and $1,101,826 in 2001. The operating income from
       the training division for the three months ended March 31, was $27,318 in
       2003, compared to a loss of $161,229 in 2002, and $89,055 in 2001.

       The following table presents the revenues, loss from operations and other
       components attributable to the discontinued operations of Njoyn Software
       Incorporated, TidalBeach Inc., Thinkpath Training Inc. and Thinkpath
       Training US Inc for the three months ending:
<TABLE>
<CAPTION>

                                                      March 31,    March 31,    March 31,
                                                        2003          2002        2001
                                                        ----          ----        ----
<S>                                                   <C>         <C>        <C>
       Revenues                                       67,589      432,866    1,306,225

       Income (loss) from operations
         before income taxes                          25,195     (269,855)    (166,465)

       Provision for Income taxes (recovery)             625          451        --

       Gain on disposal of Njoyn Software              --         400,229        --

       Gain on disposal of Training Canada             --            --          --

       Income (loss) from discontinued operations     24,570       129,923    (166,465)

</TABLE>


19.    SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES


       During the year ended December 31, 2002, the company issued common shares
       and warrants for the following;

                     Services rendered                      $1,556,485
                     Liabilities payable in common stock     1,197,942
                     Accounts payable                          434,348
                                                            ----------
                                                            $3,188,775
                                                            ==========

       During the three months ended March 31, 2003, the company issued common
       shares and warrants for the following:

                     Services rendered                        $226,500
                     Accounts payable                          440,899
                                                            ----------
                                                              $667,399
                                                            ==========



                                      F-31
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)






20.     SEGMENTED INFORMATION
<TABLE>
<CAPTION>

      a) Sales by Geographic Area
                                         Three Months           Three Months             Three Months
                                            Ended                  Ended                    Ended
                                        March 31, 2003         March 31, 2002          March 31, 2001
                                       ---------------         --------------          --------------
                                               $                      $                       $
<S>                                          <C>                  <C>                     <C>
          Canada                             799,146              3,334,529               3,456,105
          United States of America         2,492,976              3,679,850               5,883,224
                                          ----------             ----------              ----------
                                           3,292,122              7,014,379               9,339,329
                                          ==========             ==========              ==========


      b) Net Loss by Geographic Area

                                         Three Months           Three Months             Three Months
                                            Ended                  Ended                    Ended
                                        March 31, 2003         March 31, 2002          March 31, 2001
                                       ---------------         --------------          --------------
                                               $                      $                       $

          Canada                          (4,663,520)              (106,835)               (724,741)
          United States of America             7,937               (392,635)                234,445
                                          -----------            -----------             -----------
                                          (4,655,583)              (499,470)               (490,296)
                                          ===========            ===========             ===========



      c)   Identifiable Assets by Geographic Area

                                            March 31,          December 31,              December 31,
                                              2003                  2002                     2001
                                       ---------------         --------------          --------------
                                              $                        $                      $

            Canada                        2,097,630               2,644,647               4,995,715
            United States of America      5,844,989               6,142,884              12,179,263
                                         ----------              ----------              ----------
                                          7,942,619               8,787,531              17,174,978
                                         ==========              ==========              ==========



      d) Revenue and Gross Profit by Operating Segment

                                         Three Months           Three Months            Three Months
                                            Ended                  Ended                   Ended
                                        March 31, 2003         March 31, 2002         March 31, 2001
                                        --------------         --------------         -------------
                                              $                       $                       $
         Revenue
         IT Recruitment                       799,146              3,535,551             4,271,082
         Tech Pubs and Engineering          2,357,877              3,073,332             3,781,473
         IT Documentation                     135,099                405,496             1,286,774
                                           ----------             ----------            ----------
                                            3,292,122              7,014,379             9,339,329
                                           ==========             ==========            ==========
         Gross Profit
         IT Recruitment                        89,167                703,427             1,185,162
         Tech Pubs and Engineering            718,526                932,355             1,059,962
         IT Documentation                      26,582                107,126               716,546
                                            ---------             ----------            ----------
                                              834,275              1,742,908             2,961,670
                                            =========             ==========            ==========

</TABLE>




                                      F-32
<PAGE>
THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)





      e) Revenues from Major Customers

       The consolidated entity had the following revenues from major customers:

       For the three months ended March 31, 2003, no single customer consisted
       of more tan 10% of the company's revenues.

       For the three months ended March 31, 2002, one customer had sales of
       $2,052,787 representing approximately 29% of total revenues. In December
       2002, the company's contract with this customer was terminated.

       For the three months ended March 31, 2001, one customer had sales of
       $1,167,047 representing approximately 13% of total revenues.


      f) Purchases from Major Suppliers There were no significant purchases
       from major suppliers.



21.    EARNINGS PER SHARE


       The company has adopted Statement No. 128, Earnings Per Share, which
       requires presentation, in the consolidated statement of income, of both
       basic and diluted earnings per share.
<TABLE>
<CAPTION>

                                                             March 31,      March 31,     March 31,
                                                                 2003           2002          2000
                                                                    $              $             $
        Numerator
<S>                                                        <C>              <C>            <C>
            Net loss from continuing operations            (4,680,153)      (629,393)      (323,831)

            Preferred stock dividends                           --           (23,680)      (226,500)
                                                          -----------     ----------     ----------
         Loss available to common stockholders             (4,680,153)      (653,073)      (550,331)
                                                          -----------     ----------     ----------
         Income (loss) from discontinued operations            24,570        129,923       (166,465)
                                                          -----------     ----------     ----------
         Net loss                                          (4,655,583)      (523,150)      (716,796)
                                                           ==========     ===========    ==========
       Denominator
        Weighted Average common stock outstanding          57,421,886      17,640,438    13,025,123
                                                           ==========     ===========    ==========
       Basic and fully diluted loss per common
        share from continuing operations                         (.08)          (0.04)       (0.02)
                                                           ==========     ===========    ==========
       Basic and fully diluted loss per common
        share after preferred stock dividends                    (.08)          (0.04)       (0.04)
                                                           ==========     ===========    ==========
       Basic and fully diluted loss per common
        share from discontinued operations                       (.08)          (0.03)       (0.06)
                                                           ==========     ===========    ==========

                                                             March 31,      March 31,     March 31,
                                                                 2003           2002          2000

        Average common stock outstanding                   57,421,886      17,640,438     13,025,123
        Average common stock issuable                          --               --             --
                                                           ----------      ----------     ----------
        Average common stock outstanding
             assuming dilution                             57,421,886      17,640,438     13,025,123
                                                           ==========      ==========     ==========
</TABLE>


                                      F-33
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)




       The outstanding options and warrants as detailed in note 13 were not
       included in the computation of the fully diluted earnings per common
       share as the effect would be anti-dilutive.

       The earnings per share calculation (basic and fully diluted) does not
       include any common stock for common stock payable as the effect would be
       anti-dilutive.

       As indicated in Note 25, the company has issued 90,951,830 shares of its
       common stock upon to the convertible debenture holders upon the
       conversion of $388,900 of debentures and accrued interest.



22.    STOCK OPTION PLANS
<TABLE>
<CAPTION>
                                                               OPTIONS        WEIGHTED
                                                                               AVERAGE
                                                                              EXERCISE
                                                                                 PRICE

<S>                                                              <C>              <C>
       Options outstanding at January 1, 2000                    472,625          2.21

       Options granted to key employees and directors            969,500          2.22
       Options exercised during the year                         (18,508)         2.10
       Options forfeited during the year                          (4,000)         3.19
       Options expired during the year                               -
                                                               ---------
       Options outstanding at December 31, 2000                1,419,617          2.21

       Options granted to key employees and directors             35,000           .68
       Options granted to consultant                              50,000           .70
       Options exercised during the year                         (22,125)          .01
       Options forfeited during the year                        (257,500)         3.21
       Options expired during the year                                -
                                                               ---------
       Options outstanding at December 31, 2001                1,224,992

       Options forfeited during the period                      (114,500)         3.22
                                                               ---------
       Options outstanding at December 31, 2002                1,110,492
                                                               =========
       Options granted, exercised, forfeited or expired
       during the period                                              --
                                                               ---------
       Options outstanding at March 31, 2003                   1,110,492
                                                               =========

       Options exercisable December 31, 2000                     714,117          1.95
       Options exercisable December 31, 2001                   1,059,659          1.75
       Options exercisable December 31, 2002                   1,065,992
       Options available for future grant December 31, 2000          --
       Options available for future grant December 31, 2001      261,500
       Options available for future grant December 31, 2002    6,614,500

</TABLE>



                                      F-34
<PAGE>



THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)






    b) Range of Exercise Prices at March 31, 2003

<TABLE>
<CAPTION>

                     Outstanding     Weighted          Options        Options    Weighted
                       Options       Average         Outstanding    exercisable  Average
                                    Remaining          Average                   Exercise
                                        Life         Exercise Price                Price

<S>                     <C>          <C>                 <C>            <C>          <C>
      $2.10 - $3.25     565,492      1.61 years          $2.81          520,992      $2.79

      $1 and under      545,000      2.06 years          $0.75          545,000      $0.75

</TABLE>


      c) Pro-forma net income

       At March 31, 2003, the company has four stock-based employee compensation
       plans, which are described more fully in Note 13(f). The company accounts
       for those plans under the recognition and measurement principles of APB
       Opinion No.25, Accounting for Stock Issued to Employees, and related
       Interpretations. No stock-based employee compensation cost is reflected n
       net income, as all options granted under those plans had an exercise
       price equal to the market value of the underlying common stock on the
       date of grant. The following table illustrates the effect on net income
       and earnings per share if the company had applied the fair value
       recognition provisions of FASB Statement No. 123 Accounting for
       Stock-Based Compensation, to stock-based employee compensation.

<TABLE>
<CAPTION>

                                                    March 31,     March 31,      March 31,
                                                        2003          2002           2001
                                                 -----------   -----------     ----------
<S>                                               <C>             <C>            <C>
       Net loss, as reported                      (4,655,583)     (499,470)      (490,296)
       Deduct:  Total stock-based employee
       compensation expense determined under
       fair value based method for all awards,
       net of related tax effects                    (41,202)      (73,138)      (111,280)
                                                  -----------   -----------   -----------
       Pro forma net loss                         (4,696,785)     (572,608)      (601,576)
                                                  ===========   ===========   ===========

       Net loss, after preferred share dividends  (4,655,583)     (523,150)      (716,796)
       Deduct:  Total stock-based employee
       compensation expense determined under
       fair value based method for all awards,
       net of related tax effects                    (41,202)      (73,138)      (111,280)
                                                  -----------   -----------    ----------
       Pro forma net loss after preferred
       share dividends                            (4,696,785)     (596,288)      (828,076)
                                                  ===========   ===========   ============
       Earnings per share:
       Basic and fully diluted
        loss per share, as reported                    (0.08)        (0.03)         (0.04)
                                                  ===========   ===========   ============
        pro forma loss per share                       (0.08)        (0.03)         (0.05)
                                                  ===========   ===========   ============

        loss per share, after preferred dividends      (0.08)        (0.03)         (0.06)
                                                  ===========   ===========   ============
        pro forma loss per share, after preferred
        dividends                                      (0.08)        (0.03)         (0.06)
                                                  ===========   ===========   ============
</TABLE>



                                      F-35
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)





    d) Black Scholes Assumptions

       The fair value of each option grant used for purposes of estimating the
       pro forma amounts summarized above is estimated on the date of grant
       using the Black-Scholes option price model with the weighted average
       assumptions shown in the following table:

                                                    2001 GRANTS
                                                    -----------
       Risk free interest rates                      4.76%
       Volatility factors                             100%
       Weighted average expected life                4.90 years
       Weighted average fair value per share          .74
       Expected dividends                              --

       There were no option grants in the year ended December 31, 2002. There
       were no option grants in the three months ended March 31, 2003.



23.    COMMITMENT AND CONTINGENCIES

a)     Lease Commitments

       Minimum payments under operating leases for premises occupied by the
       company and its subsidiaries offices, located throughout Ontario, Canada
       and the United States, exclusive of most operating costs and realty
       taxes, as at March 31, 2003, for the next five years are as follows:

                2003                           $421,259
                2004                            564,731
                2005                            455,649
                2006                            223,826
                2007                            223,826
          Thereafter                            671,478
                                              ---------
                                             $2,560,769
                                             ==========

       The lease commitments do not include two operating leases for premises
       that the company is currently sub leasing to the purchasers of the
       Canadian and United States training divisions. If the purchasers were to
       default on payment or abandon the premises, the company would be liable
       for annual payments of $282,096 expiring August 31, 2006 and $150,534
       expiring September 30, 2010.

       The lease commitments do not include two operating leases for premises
       located in the United States that were closed in the fourth quarter of
       2002. The company has not made any payments on these leases since the
       premises were abandoned. The company does not intend to make any further
       payments on these leases and the lessors have not tried to enforce
       payment. The company may be liable for a lease balance of $44,597 which
       expires November 30, 2004 and $103,686 which expires September 30, 2005.

       On April 16, 2003, the company entered into a sublease agreement for new
       corporate headquarters in Brampton, Ontario. The term of the lease is
       five years beginning May 1, 2003 at an expense of approximately $69,000
       for the first year.

       On April 25, 2003, the company abandoned its corporate headquarters in
       Toronto. The term of the lease does not expire until December 31, 2010.
       The company currently owes approximately $667,000 in rent arrears and
       intends to make an offer to the landlord for a deferred payment schedule
       at a significant discount. The company does not intend to make any
       payments against future rent for these premises. However, the company may
       be held liable for a lease balance of approximately $1,500,000 should the
       landlord try to enforce payment.


                                      F-36
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)





  b)   The Company is party to various lawsuits arising from the normal
       course of business and its restructuring activities. No material
       provision has been recorded in the accounts for possible losses or gains.
       Should any expenditure be incurred by the Company for the resolution of
       these lawsuits, they will be charged to the operations of the year in
       which such expenditures are incurred.

   c)  On May 22, 2002, the company received a payment of $100,000 from Chubb
       Insurance for a business interruption claim filed in relation to losses
       suffered in its New York training division as a result of the terrorist
       attacks of September 11, 2001. The payment was advanced as a loan,
       without interest, repayable only in the event that the net recovery is
       greater than the filed claim. The company does not expect the net
       recovery, if any, to be greater than the claim amount.


24.    RELATED PARTY TRANSACTIONS

       On November 1, 2002, the Company entered into a series of agreements with
       Thinkpath Training LLC, a New York company, for the purchase of certain
       assets of the New York training division, Thinkpath Training for a
       nominal amount of cash and the assumption of all prepaid training
       liabilities. As part of the transaction, Thinkpath Training LLC assumed
       the New York training staff, some assets and is subletting the classroom
       facilities. The owner of Thinkpath Training LLC, is the daughter of the
       Company's Chief Executive Officer. As a result of this transaction,
       included in the Accounts Receivable at March 31, 2003, is an amount of
       approximately $3,411 due to the Company by Thinkpath Training LLC.



25.    SUBSEQUENT EVENTS

       Subsequent to March 31, 2003, the company closed an additional $175,000
       in convertible debentures together with 10,000,000 warrants. The funds
       were used for various debt settlements and critical payables. The
       debentures will become due twelve months from the date of issuance. The
       investors will have the right to acquire up to $175,000 worth of the
       Company's common stock at a price the lesser of $.0175 or 50% of the
       average of the three lowest prices on three separate trading days during
       the sixty-day trading period prior to conversion. The warrants are
       exercisable at any time and in any amount for a period of 7 years from
       the original purchase date at a purchase price of $.0175 per share. The
       Company is required to pay interest to the debenture holder on the
       aggregate unconverted and outstanding principal amount of the debenture
       at the rate of 12% per annum, payable on each conversion date and
       maturity date in cash or shares of common stock.

       The proceeds received by the company were allocated between the warrants
       and the debenture without warrants on a pro rata basis. Paid in capital
       has been credited by the value of the warrants in the amount of $42,641.

       As of May 16, 2003, the company has issued 90,951,830 shares of its
       common stock upon to the convertible debenture holders upon the
       conversion of $388,900 of debentures and accrued interest.




                                      F-37
<PAGE>


THINKPATH INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT MARCH 31, 2003
(AMOUNTS EXPRESSED IN US DOLLARS)




26.    FINANCIAL INSTRUMENTS

    a) Credit Risk Management

       The company is exposed to credit risk on the accounts receivable from its
       customers. In order to reduce its credit risk, the company has adopted
       credit policies which include the analysis of the financial position of
       its customers and the regular review of their credit limits. In some
       cases, the company requires bank letters of credit or subscribes to
       credit insurance.

    b) Concentration of Credit Risk
       The company does not believe it is subject to any significant
       concentration of credit risk. Cash and short-term investments are in
       place with major financial institutions, North American Government, and
       major corporations.

    c) Interest Risk
       The long-term debt bears interest rates that approximate the interest
       rates of similar loans. Consequently, the long-term debt risk exposure is
       minimal.


    d) Fair Value of Financial Instruments

       The carrying value of the accounts receivable, bank indebtedness, and
       accounts payable on acquisition of subsidiary company approximates the
       fair value because of the short-term maturities on these items.

       The carrying amount of the long-term assets approximates the fair value
       of these assets.

       The fair value of the company's long-term debt is estimated on the quoted
       market prices for the same or similar debt instruments. The fair value of
       the long-term debt approximates the carrying value.



27.    COMPARATIVE FIGURES

       Certain figures in the March 31, 2002 and 2001 financial statements have
       been reclassified to conform with the basis of presentation used at March
       31, 2003.






                                      F-38
<PAGE>





ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

         The following discussion and analysis should be read in conjunction
with the financial statements and notes thereto and the other historical
financial information of Thinkpath Inc. contained elsewhere in this Form 10-Q.
The statements contained in this Form 10-Q that are not historical are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended
including statements regarding Thinkpath Inc.'s expectations, intentions,
beliefs or strategies regarding the future. Forward-looking statements include
Thinkpath Inc.'s statements regarding liquidity, anticipated cash needs and
availability and anticipated expense levels. All forward-looking statements
included in this Form 10-Q are based on information available to Thinkpath Inc.
on the date hereof, and Thinkpath Inc. assumes no obligation to update any such
forward-looking statement. It is important to note that Thinkpath Inc.'s actual
results could differ materially from those in such forward-looking statements.
All dollar amounts stated throughout this Form 10-Q are in United States dollars
unless otherwise indicated. Unless otherwise indicated, all reference to
"Thinkpath," "us," "our," and "we," refer to Thinkpath Inc. and its
subsidiaries.

OVERVIEW

         We are a global provider of technological solutions and services in
engineering knowledge management including design, drafting, technical
publishing, e-learning and staffing. Our customers include DOD contractors,
aerospace, automotive and financial services companies, Canadian and American
governmental entities and large multinational companies, including Lockheed
Martin, General Dynamics, General Electric, General Motors, Ford Motors, and
Hill-Rom Company.

On December 12, 2001, the Securities and Exchange Commission issued FR-60,
Cautionary Advice Regarding Disclosure About Critical Accounting Policies, which
encourages additional disclosure with respect to a company's critical accounting
policies, the judgments and uncertainties that affect a company's application of
those policies, and the likelihood that materially different amounts would be
reported under different conditions and using different assumptions.

         Management is required to make certain estimates and assumptions during
the preparation of the consolidated financial statements in accordance with
GAAP. These estimates and assumptions impact the reported amount of assets and
liabilities and disclosures of contingent assets and liabilities as of the date
of the consolidated financial statements. They also impact the reported amount
of net earnings during any period. Actual results could differ from those
estimates. Certain of our accounting policies and estimates have a more
significant impact on our financial statements than others, due to the magnitude
of the underlying financial statement elements.

CONSOLIDATION

         Our determination of the appropriate accounting method with respect to
our investments in subsidiaries is based on the amount of control we have,
combined with our ownership level, in the underlying entity. Our consolidated
financial statements include the accounts of our parent company and our
wholly-owned subsidiaries. All of our investments are accounted for on the cost
method. If we had the ability to exercise significant influence over operating
and financial policies of a company, but did not control such company, we would
account for these investments on the equity method.

         Accounting for an investment as either consolidated or by the equity
method would have no impact on our net income (loss) or stockholders' equity in
any accounting period, but would impact individual income statement and balance
sheet items, as consolidation would effectively "gross up" our income statement
and balance sheet. However, if control aspects of an investment accounted for by
the cost method were different, it could result in us being required to account
for an investment by consolidation or the equity method. Under the cost method,
the investor only records its share of the investee's earnings to the extent
that it receives dividends from the investee; when the dividends received exceed
the investee's earnings subsequent to the date of the investor's investment, the
investor records a reduction in the basis of its investment. Under the cost
method, the investor does not record its share of losses of the investee.
Conversely, under either consolidation or equity method accounting, the investor
effectively records its share of the investee's net income or loss, to the
extent of its investment or its guarantees of the investee's debt.

         At March 31, 2003, all of our investments in non-related companies
totaling $45,669 were accounted for using the cost method. Accounting for an
investment under either the





                                      -2-
<PAGE>


equity or cost method has no impact on evaluation of impairment of the
underlying investment; under either method, impairment losses are recognized
upon evidence of permanent losses of value.

Revenue Recognition

         We recognize revenue in accordance with Staff Accounting Bulletin No.
101, Revenue Recognition in Financial Statements, which has four basic criteria
that must be met before revenue is recognized:

- Existence of persuasive evidence that an arrangement exists;
- Delivery has occurred or services have been rendered;
- The seller's price to the buyer is fixed and determinable; and,
- Collectibility is reasonably assured.

         Our various revenue recognition policies are consistent with these
criteria. We have developed proprietary technology in two areas: human capital
management and Web development. Njoyn is a Web-based human capital management
system that automates and manages the hiring process. The revenue associated
with providing this software is allocated to an initial set-up fee,
customization and training fees as agreed with the customer and an ongoing
monthly per user fee. The allocation of revenue to the various elements is based
on our determination of the fair value of the elements as if they had been sold
separately. The set-up fee and customization revenue is recognized upon delivery
of access to the software with customization completed in accordance with
milestones determined by the contract. Revenue for the training is recorded as
the services are rendered and the ongoing monthly fee is recorded each calendar
month. There is no additional fee charged to customers for hosting.

         Effective March 8, 2002, we sold our technology division, Njoyn
Software Incorporated to Cognicase Inc., a Canadian company. As part of the
transaction, Cognicase assumed all of the (eight employees) staff in our
technology division. As a result of the sale to Cognicase, we will not have
future revenues from Njoyn and the operations have been reported as
discontinued.

         Our other proprietary technology, SecondWave, is a Web development
product that allows companies to create, manage and automate their own dynamic,
adaptive Web sites. The software learns from each visitor's behavior and targets
his or her needs and interests with customized content and communications. We
enter into contracts for the customization or development of SecondWave in
accordance with the specifications of our customers. The project plan defines
milestones to be accomplished and the costs associated with this project. These
amounts are billed as they are accomplished and revenue is recognized as the
milestones are reached. The work in progress for costs incurred beyond the last
accomplished milestone is reflected at the period end. To date these amounts
have not been material and have not been set up at the period ends. The
contracts do not include any post-contract customer support. Additional customer
support services are provided at standard daily rates, as services are required.

         As a result of the sale of Njoyn to Cognicase Inc. and their assumption
of all of our technology staff, we will no longer have future revenues from
SecondWave Inc. and the operations have also been reported as discontinued.


Carrying Value Goodwill and Intangible Assets

         Prior to January 1, 2002, our goodwill and intangible assets were
accounted for in accordance with Statement of Financial Accounting Standards No.
121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed of. This statement required us to evaluate the carrying
value of our goodwill and intangible assets upon the presence of indicators of
impairment. Impairment losses were recorded when estimates of undiscounted
future cash flows were less than the value of the underlying asset. The
determination of future cash flows or fair value was based upon assumptions and
estimates of forecasted financial information that may differ from actual
results. If different assumptions and estimates were used, carrying values could
be adversely impacted, resulting in write downs that would adversely affect our
earnings. In addition, we amortized our goodwill balances on a straight-line
basis over 30 years. The evaluation of the useful life of goodwill required our
judgment, and had we chosen a shorter time period over which to amortize
goodwill, amortization expense would have increased, adversely impacting our
operations.

         Effective January 1, 2002, we adopted Statement of Financial Accounting
Standards No. 142, Goodwill and Other Intangible Assets. This statement requires
us to evaluate the




                                      -3-
<PAGE>

carrying value of goodwill and intangible assets based on assumptions and
estimates of fair value and future cash flow information. These assumptions and
estimates may differ from actual results. If different assumptions and estimates
are used, carrying values could be adversely impacted, resulting in write downs
that could adversely affect our earnings.

         During the third quarter of 2002, we completed our transitional
goodwill impairment test as of December 31, 2001 and determined that no
adjustment to the carrying value of goodwill was needed.

         The IT recruitment unit was tested for impairment in the third quarter
of 2002, after the annual forecasting process. Due to a decrease in margins and
the loss of key sales personnel, operating profits and cash flows were lower
than expected in the first nine months of 2002. Based on that trend, the
earnings forecast for the next two years was revised. At September 30, 2002, we
recognized a goodwill impairment loss of $57,808 in the IT recruitment unit. The
fair value of that reporting unit was estimated using the expected present value
of future cash flows.

         During the fourth quarter of 2002, the IT recruitment unit experienced
further decline, indicating impairment. The fair value of the unit was estimated
using the expected present value of future cash flows. At December 31, 2002, a
further goodwill impairment loss of $87,589 was recognized.

          The Technical Publications and Engineering unit was also tested for
impairment in the fourth quarter of 2002, as operating profits, cash flows and
forecasts were lower than expected. At December 31, 2002, a goodwill impairment
loss of $1,234,962 was recognized. The fair value of that reporting unit was
estimated using the expected present value of future cash flows.

           On an ongoing basis, absent any impairment indicators, we expect to
perform a goodwill impairment test as of the end of the third quarter during the
fourth quarter of each year.

           Had the standard been in effect for the three months ended March 31,
2001, our net loss would decrease by $147,368 from a loss of $490,296 to a loss
of $342,298 and our net loss per share would decrease by $0.01 from a net loss
per share of $0.04 to a net loss per share of $0.03.

         The books and records of our Canadian operations are recorded in
Canadian dollars. For purposes of financial statement presentation, we convert
balance sheet data to United States dollars using the exchange rate in effect at
the balance sheet date. Income and expense accounts are translated using an
average exchange rate prevailing during the relevant reporting period. There can
be no assurance that we would have been able to exchange currency on the rates
used in these calculations. We do not engage in exchange rate-hedging
transactions. A material change in exchange rates between United States and
Canadian dollars could have a material effect on our reported results.


THE THREE MONTHS ENDED MARCH 31, 2003 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 2002

REVENUE
           For the three months ended March 31, 2003, we derived 76% of our
revenue in the United States compared to 52% for the three months ended March
31, 2002. The increase in total revenue derived from the United States is a
result of the decrease in IT recruitment sales in Canada as a result of the
termination of a contract with a major customer in December 2002 which
contributed approximately $8,200,000 in IT revenues annually.

         For the three months ended March 31, 2003, our primary source of
revenue was engineering services including technical publications, engineering
design and e-learning. Engineering services represented 72% of total revenue
compared to 44% for the three months ended March 31, 2002. Revenue from
engineering services for the three months ended March 31, 2003 decreased by
$710,000 or 23% to $2,360,000 compared to $3,070,000 for the three months ended
March 31, 2002. The decrease in engineering sales is a result of the reduction
of the sales force for this division.

         Our engineering services include the complete planning, staffing,
development, design, implementation and testing of a project. It can also
involve enterprise-level planning and project anticipation. Our specialized
engineering services include: technical publications, design, e-learning and Web
development. We outsource our technical publications and engineering services on
both a time and materials and project basis. For project work, the services
provided are defined by guidelines to be accomplished by milestone and revenue
is recognized upon the accomplishment of the relevant milestone. As services are
rendered,




                                      -4-
<PAGE>

the costs incurred are reflected as Work in Progress. Revenue is recognized upon
the persuasive evidence of an agreement, delivery of the service, and when the
fee is fixed or determinable and collection is probable. Customers we provide
engineering services to include General Dynamics, General Electric, General
Motors, Lockheed Martin, Boeing, Caterpillar and Cummins Engines.

         For the three months ended March 31, 2003, IT recruitment sales
represented 24% of total revenue compared to 50% for the three months ended
March 31, 2002. Recruitment revenue for the three months ended March 31, 2003
decreased by $2,740,000 or 77% to $800,000 compared to $3,540,000 for the three
months ended March 31, 2002. The decrease in recruitment revenue is primarily a
result of the termination of a contract with a major customer as well as general
cutbacks and reduced hiring in the telecommunications, network and financial
services industries.

         We perform permanent, contract and executive searches for IT and
engineering professionals. Most searches are performed on a contingency basis
with fees due upon candidate acceptance of permanent employment or on a
time-and-materials basis for contracts. Retained searches are also offered, and
are paid by a non-refundable portion of one fee prior to performing any
services, with the balance due upon candidates' acceptance. The revenue for
retained searches is recognized upon a candidate's acceptance of employment.

         Selected recruitment customers include Fujitsu, Bank of Montreal,
Goldman Sachs, and Sprint Canada. In the case of contract services, we provide
our customers with independent contractors or "contract workers" who usually
work under the supervision of the customer's management. Generally, we enter
into a time-and-materials contract with our customer whereby the customer pays
us an agreed upon hourly rate for the contract worker. We pay the contract
worker pursuant to a separate consulting agreement. The contract worker
generally receives between 80% and 85% of the amount paid to us by the customer;
however, such payment is usually not based on any formula and may vary for
different engagements. We seek to gain "preferred supplier status" with our
larger customers to secure a larger percentage of those customers' businesses.
While such status is likely to result in increased revenue and gross profit, it
is likely to reduce gross margin percentage because we are likely to accept a
lower hourly rate from our customers and there can be no assurance that we will
be able to reduce the hourly rate paid to our consultants. In the case of
permanent placement services, we identify and provide candidates to fill
permanent positions for our customers.

         For the three months ended March 31, 2003, information technology
documentation services represented approximately 4% of our revenue compared to
6% for the three months ended March 31, 2002. Revenue from information
technology documentation services for the three months ended March 31, 2003
decreased by $270,000 or 66% to $140,000 compared to $410,000 for the three
months ended March 31, 2002.

         The substantial decrease in revenue from information technology
documentation services is primarily due to the loss of sales personnel and the
general economic slowdown in this industry. This division offers a very
specialized service, and relied on several key customers in a very localized
market. Many of these customers have either cancelled projects or have put a
number of their projects on hold. In response to these conditions, we terminated
the staff in this division and transferred the existing contracts to another
office.

         We provide outsourced information technology documentation services in
two ways: complete project management and the provision of skilled project
resources to supplement a customer's internal capabilities. Revenue is
recognized on the same basis as technical publications and engineering
outsourcing services. Selected information technology documentation services
customers include Fidelity Investments, SMD Tech Aid Corporation, CDI
Corporation, and the Gillette Company.


Gross Profit

         Gross profit is calculated by subtracting all direct costs from net
revenue. The direct costs of engineering services include wages, benefits,
software training and project expenses. The average gross profit for the
engineering division was 31% for the three months ended March 31, 2003 compared
to 30% for the three months ended March 31, 2002. The increase in gross profit
for technical publications and engineering services is a result of the increase
in higher margin contracts in technical publications and e-learning compared to
the traditional engineering services. In addition, we are engaging in more
time-and-materials based contracts versus fixed-cost contracts which prevents
against project and costs overruns.



                                      -5-
<PAGE>

         The direct costs of contract recruitment include contractor fees and
benefits. Gross profit for IT recruitment services for the three months ended
March 31, 2003 declined to 11% from 20% for the three months ended March 31,
2002. The decline in gross profit is a result of our focus on contract sales and
our preferred vendor status with large clients for information technology
contract recruitment services. It is often necessary to lower billing rates and
markups to be successful in the bid process. In addition, revenue from permanent
placements which has 100% gross profit has declined considerably over last year,
contributing to the decline in gross profit in this division.

         The direct costs of information technology documentation services
include contractor wages, benefits, and project expenses. The average gross
profit for the information technology division for the three months ended March
31, 2003 was 20% compared to 26% for the three months ended March 31, 2002. The
decline in gross profit in the current period is a result of the decrease in
higher margin permanent placements and increase in lower margin contract
placements of documentation specialists.

THE THREE MONTHS ENDED MARCH 31, 2002 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 2001

REVENUE

        For the three months ended March 31, 2002, we derived 52% of our revenue
in the United States compared to 63% for the three months ended March 31, 2001.
The decrease in the total revenue derived from the United States was a result of
the increase in IT Recruitment sales in Canada and the decrease in Technical
Training and IT Documentation sales in the United States.

         For the three months ended March 31, 2002, our primary source of
revenue was recruitment, representing 50% of total revenue compared to 46% for
the three months ended March 31, 2001. Recruitment revenue for the three months
ended March 31, 2002 decreased $730,000 or 17% to $3,540,000 compared to
$4,270,000 for the three months ended March 31, 2001. The decrease in
recruitment revenue is a result of cutbacks and reduced hiring in the
telecommunications, network and financial services industries. Our recruitment
division has preferred supplier agreements with AT&T, Rogers Communications,
Sprint Canada and several Canadian banks.

          For the three months ended March 31, 2002, 44% of our revenue came
from engineering services including technical publications, engineering design
and e-learning compared to 40% for the three months ended March 31, 2001.
Revenue from engineering services for the three months ended March 31, 2002
decreased $710,000 or 19% to $3,070,000 compared to $3,780,000 for the three
months ended March 31, 2001.


                                      -6-
<PAGE>

           For the three months ended March 31, 2002, information technology
documentation services represented approximately 6% of our revenue compared to
14% for the three months ended March 31, 2001. Revenue from information
technology documentation services for the three months ended March 31, 2002
decreased $880,000 or 68% to $410,000 compared to $1,290,000 for the three
months ended March 31, 2001.

           The substantial decrease in revenue from information technology
documentation services is primarily due to the loss of sales personnel and the
general economic slowdown in this industry. This division offers a very
specialized service, and relied on several key customers in a very localized
market. Many of these customers have either cancelled projects or have put a
number of their projects on hold. In response to these conditions, we have
recently expanded the marketing of our documentation services to other regions
and to existing recruitment and engineering services customers. In addition, we
have reduced our operating overheads for this division to support the current
levels of revenue.

Gross Profit

        Gross profit is calculated by subtracting all direct costs from net
revenue. The direct costs of contract recruitment include contractor fees and
benefits. Gross profit for information technology recruitment services for the
three months ended March 31, 2002 declined to 20% from 28% for the three months
ended March 31, 2001. The decline in gross profit is a result of becoming a
preferred vendor for information technology contract recruitment services. In
order to beat the competition, it is often necessary to lower billing rates and
markups to be successful in the bid process. We do not attribute any direct
costs to permanent placement services, therefore the gross profit on such
services is 100% of revenue. Revenue from permanent placements declined from the
prior year, and has therefore contributed to the decline in gross profit.

        The direct costs of technical publications and engineering services
include wages, benefits, software training and project expenses. The average
gross profit for this division was 30% for the three months ended March 31, 2002
compared to 28% for the three months ended March 31, 2001. The increase in gross
profit for technical publications and engineering services, is a result of the
increase in higher margin contracts in technical publications and e-learning
compared to the traditional engineering services. In addition, we are engaging
in more time and materials based contracts versus fixed cost which prevents
against project and costs overruns.

        The direct costs of information technology documentation services
include contractor wages, benefits, and project expenses. The average gross
profit for the three months ended March 31, 2002 was 26% compared to 56% for the
three months ended March 31, 2001. The decline in gross profit in the current
period is a result of the decrease in higher margin permanent placements and
increase in lower margin contract placements of documentation specialists.


                                      -7-
<PAGE>

RESULTS OF OPERATIONS

               The following table presents our statements of operations
reflected as a percentage of our total revenue.

                      STATEMENTS OF OPERATIONS--PERCENTAGES
                                   (UNAUDITED)

                          THREE MONTHS ENDED MARCH 31,
                    -----------------------------------------
<TABLE>
<CAPTION>
                                                   2003             2002              2001
                                                   ----             ----              ----
<S>                                                <C>               <C>               <C>
REVENUE                                            100 %             100 %             100 %
-------                                           ----              ----              ----

COST OF SALES                                       75 %              75 %              68 %
                                                  ----              ----              ----
GROSS PROFIT                                        25 %              25 %              32 %
                                                  ----              ----              ----
EXPENSES
   Administrative                                   21 %              14 %              10 %
   Selling                                          10 %              13 %              15 %
   Depreciation and amortization                     6 %               4 %               5 %
   Restructuring                                    -- %              -- %               1 %
                                                  ----              ----              ----
Income (loss) from continuing operations
  before interest charges                          (12)%              (6)%               1 %

  Interest charges                                 130 %               3 %               2 %
                                                  ----              ----              ----
Income (loss) from continuing operations          (142)%              (9)%              (1)%

   Income taxes                                     -- %              -- %               2 %
                                                  ----              ----              ----
Income (loss) from continuing operations          (142)%              (9)%              (3)%

Income (loss) from discontinued operations           1 %               2 %              (2) %

Net Income (loss)                                 (141)%              (7)%              (5)%
                                                  ----              ----              ----
</TABLE>



                                      -8-
<PAGE>

THE THREE MONTHS ENDED MARCH 31, 2003 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 2002

RESULTS OF OPERATIONS

          Revenue. Revenue for the three months ended March 31, 2003 decreased
by $3,720,000 or 53%, to $3,290,000, as compared to $7,010,000 for the three
months ended March 31, 2002. The decrease is primarily attributable to the
dramatic decline in revenues in IT recruitment division.

         Cost of Sales. The cost of sales for the three months ended March 31,
2003 decreased by $2,810,000, or 53%, to $2,460,000, as compared to $5,270,000
for the three months ended March 31, 2002. The cost of sales as a percentage of
revenue was consistent at 75% for both periods. The decrease in cost of sales
for the three months ended March 31, 2003 is consistent with the decrease in
revenue.

         Gross Profit. Gross profit for the three months ended March 31, 2003
decreased by $910,000, or 52%, to $830,000 compared to $1,740,000 for the three
months ended March 31, 2002. As a percentage of revenue, gross profit was
consistent at 25% for both periods. The decrease in gross profit for the three
months ended March 31, 2003 is consistent with the decrease in revenue.

         Expenses. Expenses for the three months ended March 31, 2003 decreased
by $940,000, or 43%, to $1,230,000 compared to $2,170,000 for the three months
ended March 31, 2002.

         Administrative expenses decreased by $240,000 or 25% to $720,000 for
the three months ended March 31, 2003 compared to $960,000 for the three months
ended March 31, 2002. General administrative expenses including salaries and
rent have decreased significantly over last year as a result of restructuring
and general cost cutting. Included in administrative expenses are the costs of
$226,500 of shares of our common stock and warrants issued to various
consultants for financing services rendered during the three months ended March
31, 2003.

         Selling expenses for the three months ended March 31, 2003 decreased by
$640,000, or 67%, to $320,000 from $960,000 for the three months ended March 31,
2002. This decrease is attributable to the considerable downsizing in sales
staff and the decrease in commissions, as a result of the reduction in sales. In
addition, in 2003 we continued to eliminate certain advertising and promotional
expenses.

        For the three months ended March 31, 2003, depreciation and amortization
expenses decreased by $70,000, or 27%, to $190,000 from $260,000 for the three
months ended March 31, 2002.

          0perating Loss from Continuing Operations. For the three months ended
March 31, 2003, losses from continuing operations decreased by $30,000 or 7% to
a loss of $400,000 as compared to a loss of $430,000 for the three months ended
March 31, 2002.

         Interest Charges. For the three months ended March 31, 2003, interest
charges increased by $4,060,000, or 1846%, to $4,280,000 from $220,000 for the
three months ended March 31, 2002. This increase is largely attributable to the
interest expense on the beneficial conversion feature on the convertible
debentures issued in December 2002 and the first quarter 2003, in the amount of
$4,030,000.

         Loss from Continuing Operations before Income Tax. Loss from continuing
operations before income tax for the three months ended March 31, 2003 increased
by $4,020,000 or 609% to a loss of $4,680,000 as compared to a loss of $660,000
for the three months ended March 31, 2002.

         Income Taxes. Income tax expense for the three months ended March 31,
2003 increased by $30,000 to an expense of $4,000 as compared to a recovery of
$26,000 for the three months ended March 31, 2002.

         Income (Loss) from Continuing Operations. Loss from continuing
operations for the three months ended March 31, 2003 increased by $4,050,000 or
643% to a loss of $4,680,000 compared to a loss of $630,000 for the three months
ended March 31, 2002

         Income (Loss) from Discontinued Operations. Operations of the
technology and training divisions for the three months ended March 31, 2003 and
2002 have been reported as discontinued.


                                      -9-
<PAGE>


          Effective March 8, 2002, we sold our technology division, Njoyn
Software Incorporated to Cognicase Inc., a Canadian company. Net proceeds after
broker fees were $1,350,000 of which we received $800,000 in cash and $550,000
worth of unrestricted common shares on closing. The shares were sold on March
11, 2002 for value of $524,673. As part of the transaction, Cognicase assumed
all of the staff in our technology division, including the employees of
TidalBeach Inc. We will not have future revenues from either the Njoyn or
SecondWave products.

         There was no technology revenue for the three months ended March 31,
2003 compared to $40,000 for the same period in 2002. The operating loss from
the technology division for the three months ended March 31, 2003 was $3,000 and
$110,000 for the same period in 2002. On disposal, Njoyn had approximately
$950,000 in assets consisting primarily of deferred development charges and
approximately $30,000 in liabilities consisting primarily of capital lease
obligations. The gain on disposal of $400,229 has been reflected in the loss
from discontinued operations at March 31, 2002. No income taxes have been
reflected on this disposition as the sale of the shares gives rise to a capital
loss, the benefit of which is more likely than not to be realized.

         Effective May 1, 2002, we signed an agreement with triOS Training
Centres Limited, an Ontario company, for the sale of certain assets of the
Toronto training division, Thinkpath Training for a nominal amount of cash and
the assumption of all prepaid training liabilities. As part of the transaction,
triOS assumed the Toronto training staff and is subletting the classroom
facilities.

         On November 1, 2002, we entered into a series of agreements with
Thinkpath Training LLC, a New York company, for the sale of certain assets of
the New York training division, Thinkpath Training for a nominal amount of cash
and the assumption of all prepaid training liabilities. As part of the
transaction, Thinkpath Training LLC assumed the New York training staff, some
assets and is subletting the classroom facilities.

          As a result of these two transactions, we will not have future
revenues from either training division. Training revenue for the three months
ended March 31, 2003 was $70,000 and $390,000 for the same period in 2002. The
operating income from the training division for the three months ended March 31,
2003 was $30,000 compared to a loss of $160,000 for the same period in 2002.

         Net Loss Before Preferred Stock Dividends. Net loss before preferred
stock dividends for the three months ended March 31, 2003 increased by
$4,160,000 or 832% to a net loss of $4,660,000 compared to a net loss of
$500,000 for the three months ended March 31, 2002.

         Net Loss Applicable to Common Stock. Net loss applicable to common
stock increased by $4,140,000 or 796% to $4,660,000 for the three months ended
March 31, 2003 compared to $520,000 for the three months ended March 31, 2002.
During the three months ended March 31, 2002 we issued preferred stock dividends
of $20,000.

THE THREE MONTHS ENDED MARCH 31, 2002 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 2001

RESULTS OF OPERATIONS

          Revenue. Revenue for the three months ended March 31, 2002 decreased
by $2,330,000 or 25%, to $7,010,000, as compared to $9,340,000 for the three
months ended March 31, 2001. The decrease is attributable to the decline in
revenues in the IT recruitment, engineering services and IT documentation
divisions of 17%, 19% and 69% respectively.

         Cost of Sales. The cost of sales for the three months ended March 31,
2002 decreased by $1,110,000, or 17%, to $5,270,000, as compared to $6,380,000
for the three months ended March 31, 2001. The cost of sales as a percentage of
revenue increased from 68% for the three months ended March 31, 2001 to 75% for
the three months ended March 31, 2002. This increase is attributable to the
higher concentration of low margin IT recruitment contract sales in 2002.

         Gross Profit. Gross profit for the three months ended March 31, 2002
decreased by $1,220,000, or 41%, to $1,740,000 compared to $2,960,000 for the
three months ended March 31, 2001. As a percentage of revenue, gross profit
declined from 32% for the three months ended March 31, 2001 to 25% for the three
months ended March 31, 2002.

         Expenses. Expenses for the three months ended March 31, 2002 decreased
by $700,000, or 24%, to $2,170,000 compared to $2,870,000 for the three months
ended March 31, 2001.

         Administrative expenses increased by $20,000 or 2% to $960,000 for the
three months ended March 31, 2002 compared to $940,000 for the three months
ended March 31, 2001.


                                      -10-
<PAGE>

         Selling expenses for the three months ended March 31, 2002 decreased by
$480,000, or 33%, to $960,000 from $1,440,000 for the three months ended March
31, 2001. This decrease is attributable to the considerable downsizing in sales
staff and the decrease in commissions, as a result of the reduction in sales.

        For the three months ended March 31, 2002, depreciation and amortization
expenses decreased by $190,000, or 42%, to $260,000 from $450,000 for the three
months ended March 31, 2001. This decrease is primarily attributable to our
adoption of Statements of Financial Accounting Standards No. 141, Business
Combinations, and No. 142, Goodwill and Other Intangible Assets. Under these
statements, we are no longer required to amortize goodwill. Amortization of
goodwill for the three months ended March 31, 2001 amounted to $150,000.

         For the three months ended March 31, 2002, there were no restructuring
charges related to the termination of personnel and the closure of
non-productive branch offices. For the three months ended March 31, 2001, our
restructuring charges were $50,000 related to the closure of our London training
office and termination of personnel.

          0perating Loss from Continuing Operations. For the three months ended
March 31, 2002, losses from continuing operations increased by $530,000 to a
loss of $430,000 as compared to income of $100,000 for the three months ended
March 31, 2001.

         Interest Charges. For the three months ended March 31, 2002, interest
charges were $220,000 which is consistent with the three months ended March 31,
2001.

         Loss from Continuing Operations before Income Tax. Loss from continuing
operations before income tax for the three months ended March 31, 2002 increased
by $540,000 or 450% to a loss of $660,000 as compared to a loss of $120,000 for
the three months ended March 31, 2001.

         Income Taxes. Income tax expense for the three months ended March 31,
2002 decreased by $230,000 to a recovery of $26,000 as compared to an expense of
$200,000 for the three months ended March 31, 2001. The expense in 2001 was a
write down of a deferred income tax asset.

         Income (Loss) from Continuing Operations. Loss from continuing
operations for the three months ended March 31, 2002 increased by $310,000 or
97% to a loss of $630,000 compared to a loss of $320,000 for the three months
ended March 31, 2001

         Income (Loss) from Discontinued Operations. Operations of the
technology and training divisions for the three months ended March 31, 2002 and
2001 have been reported as discontinued.

          Technology revenue for the three months ended March 31, 2002 was
$40,000 compared to $200,000 for the same period in 2001. Operating loss from
the technology division for the three months ended March 31, 2002 was $110,000
compared to $80,000 for the same period in 2001. On disposal, Njoyn had
approximately $950,000 in assets consisting primarily of deferred development
charges and approximately $30,000 in liabilities consisting primarily of capital
lease obligations. The gain on disposal of $400,229 has been reflected in the
loss from discontinued operations at March 31, 2002. No income taxes have been
reflected on this disposition as the sale of the shares gives rise to a capital
loss, the benefit of which is more likely than not to be realized.

         Training revenue for the three months ended March 31, 2002 was $390,000
compared to $1,100,000 for the same period in 2001. The operating loss from the
training division for the three months ended March 31, 2002 was $160,000
compared to $90,000 for the same period in 2001.

         Net Loss Before Preferred Stock Dividends. Net loss before preferred
stock dividends for the three months ended March 31, 2002 increased by $10,000
or 2% to a net loss of $500,000 compared to a net loss of $490,000 for the three
months ended March 31, 2001.

         Net Loss Applicable to Common Stock. Net loss applicable to common
stock decreased by $200,000 or 28% to $520,000 for the three months ended March
31, 2002 compared to $720,000 for the three months ended March 31, 2001. During
the three months ended March 31, 2002 we issued preferred stock dividends of
$20,000 compared to $230,000 for the same period in 2001.



                                      -11-
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

         With insufficient working capital from operations, our primary sources
of cash are a receivable discount facility with Morrison Financial Services
Limited and proceeds from the sale of equity securities. Our primary capital
requirements include debt service and working capital needs.

           Our facility with Morrison Financial Services Limited is a receivable
discount facility whereby we are able to borrow up to 75% of qualifying
receivables at 30% interest per annum. At March 31, 2003, the balance on the
receivable discount facility was approximately $1,300,000 based on 75% of
qualifying accounts receivable.

           During the three months ended March 31, 2003, we sold $875,000 in
convertible debentures along with 50,000,000 warrants pursuant to a financing
arrangement entered into on December 5, 2002. The debentures will become due
twelve months from the date of issuance. The investors will have the right to
acquire up to $875,000 worth of our common stock at a price the lesser of $.0175
or 50% of the average of the three lowest prices on three separate trading days
during the sixty-day trading period prior to conversion. The warrants are
exercisable at any time and in any amount for a period of seven years from
closing at a purchase price of $.0175 per share. We are required to pay interest
to the debenture holder on the aggregate unconverted and outstanding principal
amount of the debenture at the rate of 12% per annum, payable on each conversion
date and maturity date in cash or shares of common stock.

           The proceeds of $875,000 were allocated between the warrants and the
debenture without warrants on a pro rata basis. Paid in capital has been
credited by the value of the warrants in the amount of $446,285. At March 31,
2003, the value of the beneficial conversion feature on all issued convertible
debentures was determined to be $3,935,684 which was credited to paid in capital
and charged to earnings as interest expense.

         At March 31, 2003, we had cash of $144,000 and a working capital
deficiency of $2,930,000. At March 31, 2003, we had a cash flow from operations
of $250,000. At March 31, 2002, we had cash of 90,000 and a working capital
deficiency of $3,070,000. At March 31, 2002, we had a cash flow deficiency from
operations of $1,100,000, which is primarily attributable to the decrease in
accounts payable of $1,100,000 which was partially offset by the increase in
accounts receivable of $600,000 and a gain on the sale of our subsidiary Njoyn
of $400,000. At March 31, 2001, we had negative cash or cash equivalents and a
working capital deficiency of $2,530,000. At March 31, 2001, we had a cash flow
deficiency from operations of $280,000.

         At March 31, 2003, we had no cash flow from investing activities
compared to March 31, 2002 when we had cash flow from investing activities of
1,100,000 primarily related to the proceeds on the disposal of Njoyn of
$1,320,000 which was partially offset by the purchase of capital assets of
$220,000. At March 31, 2001, we had a cash flow deficit from investing
activities of $60,000 attributable primarily to the purchase of capital assets.

         At March 31, 2003 we had a cash flow deficit from financing activities
of $255,000 attributable primarily to a reduction in debt of $1,130,000 related
to the Morrison Financial receivable discount facility which was offset by
proceeds of $875,000 from the sale of convertible debentures. At March 31, 2002,
we had a cash flow deficit from financing activities of $400,000 attributable
primarily to the repayment of notes of $35,000, and long-term debt of $335,000
and reduction in bank indebtedness of $30,000. At March 31, 2001, we had cash
flow from financing activities of $690,000, attributable primarily to share
capital issue of $400,000 an increase in long-term debt of $225,000 and a
increase in bank indebtedness of $355,000 which was offset by debt repayment of
$290,000.

         At March 31, 2003, we had a loan balance of $30,978 with the Business
Development Bank of Canada. The loan was assigned to us when we combined with
TidalBeach Inc. in November 2000. The loan is secured by a general security
agreement with monthly payments of $950.00 and interest at 12.5% per annum. No
principal payments have been made since January 2003.

        At March 31, 2003 we had a loan balance of $259,356 with an individual,
Terry Lyons. The loan is payable in twelve monthly payments of $21,613 beginning
November 30, 2002 and bears interest at 30% per annum. This loan is subordinated
to Morrison Financial Services Limited and no principal payments have been made.



                                      -12-
<PAGE>


         At March 31, 2003, we had approximately $133,426 outstanding on various
capital leases with various payment terms and interest rates. The average
balance on the terms of leases are 12 months and cover primarily the hardware
and various software applications required to support our engineering division.

         At March 31, 2003, we had a note payable of $224,000 owed to Roger
Walters, the former shareholder of CadCam Inc. Principal payments of $4,000 per
month were to begin September 1, 2002 until August 1, 2007. This loan is
non-interest bearing.

         The loan is subordinated to Morrison Financial Services Limited and the
12% Senior Secured Convertible Debenture holders. We have not made any principal
payments to Mr. Walters since December 2002 and we are currently in default of
the loan agreement. In the event that we default on payment, the principal
balance will bear interest at 12% per annum until payment is made.

         At March 31, 2003, we had a note payable of $667,326 owed to Denise
Dunne-Fushi, the vendor of MicroTech Professionals Inc. Principal payments of
$10,000 per month were to begin November 1, 2002 bearing 5% interest until
October 1, 2007. In addition, we cover the monthly expense associated with Ms.
Dunne-Fushi's family health benefits until May 2004 and vehicle lease until
August 2004.

          The loan is secured under a general security agreement but is
subordinated to Morrison Financial Services Limited and the 12% Senior Secured
Convertible Debenture holders. We have not made any principal payments to Ms.
Dunne-Fushi since December 2002 and are currently in default of the loan
agreement. In the event of default, Ms. Dunne-Fushi has the option of enforcing
the security she holds.

         Although we believe that our current working capital and cash flows
from restructured operations will be adequate to meet our anticipated cash
requirements going forward, we have accrued liabilities and potential
settlements of outstanding claims that may require additional funds. We will
have to raise these funds through equity or debt financing. There can be no
assurance that additional financing will be available at all or that if
available, such financing will be obtainable on terms favorable to us and would
not be dilutive.

         Despite our recurring losses and negative working capital, we believe
that we have developed a business plan that, if successfully implemented, could
substantially improve our operational results and financial condition. However,
we can give no assurances that our current cash flows from operations, if any,
borrowings available under our receivable discount facility, and proceeds from
the sale of securities, will be adequate to fund our expected operating and
capital needs for the next twelve months. The adequacy of our cash resources
over the next twelve months is primarily dependent on our operating results and
our ability to raise additional financing, which are subject to substantial
uncertainties. Cash flow from operations for the next twelve months will depend,
among other things, upon the effect of the current economic slowdown on our
sales and management's ability to implement our business plan. The failure to
return to profitability and optimize operating cash flow in the short term, and
to successfully raise additional financing, could have a material adverse effect
on our liquidity position and capital resources which may force us to curtail
our operations.


RECENT ACCOUNTING PRONOUNCEMENTS

         In April 2002, the FASB issued SFAS No. 145, which, among other
factors, changed the presentation of gains and losses on the extinguishments of
debt. Any gain or loss on extinguishments of debt that does not meet the
criteria in APB Opinion 30, "Reporting the Results of Operations - Reporting the
Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and
Infrequently Occurring Events and Transactions", shall be included in operating
earnings and not presented separately as an extraordinary item. We will adopt
SFAS No. 145 at the beginning of fiscal year 2003 and do not expect the
provisions of SFAS No. 145 to have any impact on our financial position, results
of operations or cash flows.

       In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities," which addresses accounting for
restructuring and similar costs. SFAS No.146 supersedes previous accounting
guidance, principally Emerging Issues Task Force Issue, or EITF, No. 94-3
"Liability Recognition for Certain Employee Termination Benefits and Other Costs
to Exit on Activity (including Certain Costs Incurred in a Restructuring)". We
will adopt the provisions of SFAS No. 146 for restructuring activities initiated
after December 31, 2002. SFAS No. 146 may affect the timing of recognizing
future restructuring costs as well as the amounts recognized.



                                      -13-
<PAGE>


        In January 2003, the FASB issued SFAS No. 148, Accounting for Stock
-Based Compensation - Transition and Disclosures. This statement provides
alternative methods of transition for a voluntary change to the fair value based
method of accounting for stock-based employee compensation. In addition, this
statement also amends the disclosure requirements of SFAS No. 123 to require
more prominent and frequent disclosures in the financial statements about the
effects of stock-based compensation. The transitional guidance and annual
disclosure provisions of this Statement is effective for the December 31, 2002
financial statements. The interim reporting disclosure requirements is effective
for our March 31, 2003 financial statements.

        In November 2002, the FASB issued Interpretation No. 45, "Guarantor's
Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others" ("Interpretation"). This Interpretation
elaborates on the existing disclosure requirement for most guarantees including
loan guarantees, and clarifies that at the time a company issues a guarantee,
the company must recognize an initial liability for the fair market value of the
obligations it assumes under that guarantee and must disclose that information
in its interim and annual financial statements. The initial recognition and
measurement provisions of the Interpretation apply on a prospective basis to
guarantees issued or modified after December 31, 2002.

        In January 2003, the Financial Accounting Standards Board issued
Interpretation No. 46, "Consolidation of Variable Interest Entities," which
addresses consolidation by business enterprises of variable interest entities.
In general, a variable interest entity is a corporation, partnership, trust, or
any other legal structure used for business purposes that either (a) does not
have equity investors with voting rights or (b) has equity investors that do not
provide sufficient financial resources for the entity to support its activities.
A variable interest entity often holds financial assets, including loans or
receivables, real estate or other property. A variable interest entity may be
essentially passive or it may engage in research and development or other
activities on behalf of another company. The objective of Interpretation No. 46
is not to restrict the use of variable interest entities but to improve
financial reporting by companies involved with variable interest entities. Until
now, a company generally has included another entity in its consolidated
financial statements only if it controlled the entity through voting interests.
Interpretation No. 46 changes that by requiring a variable interest entity to be
consolidated by a company if that company is subject to a majority of the risk
of loss from the variable interest entity's activities or entitled to receive a
majority of the entity's residual returns or both. The consolidation
requirements of Interpretation No. 46 apply immediately to variable interest
entities created after January 31, 2003. The consolidation requirements apply to
entities created before January 31, 2003, in the first fiscal year or interim
period beginning after June 15, 2003. Certain of the disclosure requirements
apply in all financial statements issued after January 31, 2003, regardless of
when the variable interest entity was established. We do not have any variable
interest entities, and, accordingly, adoption is not expected to have a material
effect on our financial position, results of operations or cash flows.

        In April 2003, the Financial Accounting Standards Board issued Statement
No. 149, "Amendment of Statement 133 on Derivative Instruments and Hedging
Activities". The Statement amends and clarifies accounting for derivative
instruments, including certain derivative instruments embedded in other
contracts, and for hedging activities under Statement 133. The amendments set
forth in Statement 149 improve financial reporting by requiring that contracts
with comparable characteristics be accounted for similarly. In particular, this
Statement clarifies under what circumstances a contract with an initial net
investment meets the characteristic of a derivative as discussed in Statement
133. In addition, it clarifies when a derivative contains a financing component
that warrants special reporting in the statement of cash flows. This Statement
is effective for contracts entered into or modified after June 30, 2003 with
certain exceptions. We do not believe that the adoption of Statement No. 149
will have a material effect on our financial position, results of operations or
cash flows.




                                      -14-
<PAGE>



RECENT EVENTS

         Subsequent to March 31, 2003, we closed an additional $175,000 in
convertible debentures together with 10,000,000 warrants. The funds were used
for various debt settlements and critical payables. The debentures will become
due twelve months from the date of issuance. The investors will have the right
to acquire up to $175,000 worth of our common stock at a price the lesser of
$.0175 or 50% of the average of the three lowest prices on three separate
trading days during the sixty-day trading period prior to conversion. The
warrants are exercisable at any time and in any amount for a period of 7 years
from the original purchase date at a purchase price of $.0175 per share. We are
required to pay interest to the debenture holder on the aggregate unconverted
and outstanding principal amount of the debenture at the rate of 12% per annum,
payable on each conversion date and maturity date in cash or shares of common
stock.

         The proceeds received were allocated between the warrants and the
debenture without warrants on a pro rata basis. Paid in capital has been
credited by the value of the warrants in the amount of $42,641.

         As of May 19, 2003, we have issued 90,951,830 shares of our common
stock upon to the convertible debenture holders upon the conversion of $388,900
of debentures and accrued interest.



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

        Not applicable.


ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures.

Our Chief Executive Officer and Chief Financial Officer have evaluated the
effectiveness of our disclosure controls and procedures (as such term is defined
in Rules 13a-14(c) and 15d-14(c) under the Securities and Exchange Act of 1934,
as amended (the "Exchange Act")) as of a date within 45 days prior to the filing
date of this Form 10-Q filed for the three months ended March 31, 2003 (the
"Evaluation Date"). Based on such evaluation, such officers have concluded that,
as of the Evaluation Date, our disclosure controls and procedures are effective
in alerting the officers on a timely basis to material information relating to
us (including our wholly owned subsidiaries) required to be included in our
reports filed or submitted under the Exchange Act.

(b) Changes in Internal Controls.

Since the Evaluation Date, there have not been any significant changes in our
internal controls or in other factors that could significantly affect such
controls.




                          PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         We are party to the following pending legal proceedings:




                   Christopher Killarney, a former employee, filed a statement
of claim against us on June 14, 2002, with the Superior Court of Justice of
Ontario, Canada, Court File No. 02-CV-229385CMS, alleging wrongful dismissal and
breach of contract. Mr. Killarney is seeking between approximately $120,000 and
$650,000 in damages. We intend to defend this claim vigorously.

          AT&T Corp. instituted an action against us in the United States
District Court for the Southern District of New York, No. 02 CV 3132, alleging
that we breached an agreement to pay AT&T certain monies in exchange for
Internet and web hosting services purportedly performed by AT&T. AT&T is seeking
$153,669.36 in damages, plus interest and reasonable attorneys' fees. We have
answered the complaint and vigorously dispute AT&T Corp.'s allegations.
Discovery has not yet begun, and we are endeavoring to resolve this matter
without further litigation. Should settlement discussions fail, we intend to
defend this action vigorously.


         We are not party to any other material litigation, pending or
otherwise.



                                      -15-
<PAGE>



ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

             During the first quarter 2003, we sold convertible debentures and
warrants for an aggregate of $875,000. The debt is convertible into common stock
at a discount to the market. In connection with the offering, we issued an
aggregate of 50,000,000 warrants to purchase common stock. Pursuant to the terms
of the initial offering as reported in the Form 8-K that we filed with the SEC
on December 9, 2002, investors in that offering were granted the right to
purchase an additional $2,200,000 of convertible debt. As a result of the sales
made during the first quarter of 2003, convertible debentures and warrants for
an aggregate dollar amount of $1,325,000 remain available for purchase by the
investors as at March 31, 2003. The proceeds from the sale of convertible
debentures and warrants were used to repay debt obligations and for working
capital. The offering, which was made to non-U.S. residents only, was exempt
from the registration requirements of the Securities Act of 1933, as amended
(the "Securities Act") pursuant to Regulation S promulgated thereunder.

         In addition, during the first quarter 2003, we sold unregistered
securities as described below. There were no underwriters involved in the
transactions and there were no underwriting discounts or commissions paid in
connection therewith, except as disclosed below. The purchasers of the
securities in such transactions represented their intention to acquire the
securities for investment purposes only and not with a view to or for sales in
connection with any distribution thereof and appropriate legends were affixed to
the certificates for the securities issued in such transactions. The purchasers
of the securities in the transactions below were each sophisticated investors
who were provided information about us and were able to bear the risk of loss of
their entire investment.

          On February 4, 2003, we issued 2,146,577 shares of our common stock,
no par value per share, to David J. Wodar, in settlement of $67,000 of accounts
payable related to investor communications and marketing services rendered.

          On February 7, 2003, we entered into a consulting agreement with
Dailyfinancial.com Inc. who shall perform corporate consulting services in
connection with mergers and acquisitions, corporate finance and other financial
services. In consideration for such services we issued 4,200,000 shares of our
common stock, no par value per share.

          On March 13, 2003, we issued 1,356,129 shares of our common stock, no
par value per share, to John Taylor, an employee, in settlement of an employment
bonus.

          On March 13, 2003, we issued 500,000 shares of our common stock, no
par value per share, to Northern Hills Inc., in consideration of financing and
advisory services rendered.

              We believe all of the above issuances were exempt from
registration pursuant to the exemption provided by Section 4(2) of the
Securities Act.




ITEM 3. DEFAULTS IN SENIOR SECURITIES

         None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         On January 24, 2003, we held a Special Meeting of Shareholders at which
the shareholders were invited to consider and vote upon proposals to: (i) vote
upon the proposal to amend our Articles of Incorporation to increase the
authorized number of the shares of our common stock from 100,000,000 to
800,000,000; and, (v) transact such other business as may properly come before
the Meeting and any continuations and adjournments thereof.

(i) the amendment of our Articles of Incorporation to increase the authorized
number of the shares of our common stock from 100,000,000 to 800,000,000

For:          33,753,993
Against:       1,467,165
Withheld:         10,300
Non-votes:             0




ITEM 5.  OTHER INFORMATION


         None.





                                      -16-
<PAGE>


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits

         Exhibit 99.1 - Certification pursuant to Section 906 of the
         Sarbanes-Oxley Act of 2002

         Exhibit 99.2 - Certification pursuant to Section 906 of the
         Sarbanes-Oxley Act of 2002

(b) Reports on Form 8-K.







                                      -17-
<PAGE>


                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                               THINKPATH INC.


Dated: May 19, 2003     By: /s/ Declan French       By: /s/ Kelly Hankinson
                             ---------------------       -----------------------
                             Declan French               Kelly L. Hankinson
                             Chief Executive Officer     Chief Financial Officer













                                      -18-
<PAGE>



                                  CERTIFICATION


I, Declan A. French, Chief Executive Officer of Thinkpath Inc., certify that:

1.         I have reviewed this quarterly report on Form 10-Q of Thinkpath Inc.;

2.         Based on my knowledge, this quarterly report does not contain any
           untrue statement of a material fact or omit to state a material fact
           necessary to make the statements made, in light of the circumstances
           under which such statements were made, not misleading with respect to
           the period covered by this quarterly report;

3.         Based on my knowledge, the financial statements, and other financial
           information included in this quarterly report, fairly present in all
           material respects the financial condition, results of operations and
           cash flows of the registrant as of, and for, the periods presented in
           this quarterly report;

4.         The registrant's other certifying officers and I are responsible for
           establishing and maintaining disclosure controls and procedures (as
           defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant
           and we have:

                     a) designed such disclosure controls and procedures to
           ensure that material information relating to the registrant,
           including its consolidated subsidiaries, is made known to us by
           others within those entities, particularly during the period in which
           this quarterly report is being prepared;

                     b) evaluated the effectiveness of the registrant's
           disclosure controls and procedures as of a date within 45 days prior
           to the filing date of this quarterly report (the "Evaluation Date");
           and

                     c) presented in this quarterly report our conclusions about
           the effectiveness of the disclosure controls and procedures based on
           our evaluation as of the Evaluation Date.

5.         The registrant's other certifying officers and I have disclosed,
           based on our most recent evaluation, to the registrant's auditors and
           the audit committee of the registrant's board of directors:

                     a) all significant deficiencies in the design or operation
           of internal controls which could adversely affect the registrant's
           ability to record, process, summarize and report financial data and
           have identified for the registrant's auditors any material weaknesses
           in internal controls; and

                     b) any fraud, whether or not material, that involves
           management or other employees who have a significant role in the
           registrant's internal controls.

6.         The registrant's other certifying officers and I have indicated in
           this quarterly report whether or not there were significant changes
           in internal controls or in other factors that could significantly
           affect internal controls subsequent to the date of our most recent
           evaluation, including any corrective actions with regard to
           significant deficiencies and material weaknesses.

Date: May 19, 2003
                                                   /S/ DECLAN FRENCH
                                                   -------------------------
                                                   Declan A. French
                                                   Chief Executive Officer



                                      -19-
<PAGE>


                                  CERTIFICATION


I, Kelly L. Hankinson, Chief Financial Officer of Thinkpath Inc., certify that:

1.         I have reviewed this quarterly report on Form 10-Q of Thinkpath Inc.;

2.         Based on my knowledge, this quarterly report does not contain any
           untrue statement of a material fact or omit to state a material fact
           necessary to make the statements made, in light of the circumstances
           under which such statements were made, not misleading with respect to
           the period covered by this quarterly report;

3.         Based on my knowledge, the financial statements, and other financial
           information included in this quarterly report, fairly present in all
           material respects the financial condition, results of operations and
           cash flows of the registrant as of, and for, the periods presented in
           this quarterly report;

4.         The registrant's other certifying officers and I are responsible for
           establishing and maintaining disclosure controls and procedures (as
           defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant
           and we have:

                     a) designed such disclosure controls and procedures to
           ensure that material information relating to the registrant,
           including its consolidated subsidiaries, is made known to us by
           others within those entities, particularly during the period in which
           this quarterly report is being prepared;

                     b) evaluated the effectiveness of the registrant's
           disclosure controls and procedures as of a date within 45 days prior
           to the filing date of this quarterly report (the "Evaluation Date");
           and

                     c) presented in this quarterly report our conclusions about
           the effectiveness of the disclosure controls and procedures based on
           our evaluation as of the Evaluation Date.

5.         The registrant's other certifying officers and I have disclosed,
           based on our most recent evaluation, to the registrant's auditors and
           the audit committee of the registrant's board of directors:

                     a) all significant deficiencies in the design or operation
           of internal controls which could adversely affect the registrant's
           ability to record, process, summarize and report financial data and
           have identified for the registrant's auditors any material weaknesses
           in internal controls; and

                     b) any fraud, whether or not material, that involves
           management or other employees who have a significant role in the
           registrant's internal controls.

6.         The registrant's other certifying officers and I have indicated in
           this quarterly report whether or not there were significant changes
           in internal controls or in other factors that could significantly
           affect internal controls subsequent to the date of our most recent
           evaluation, including any corrective actions with regard to
           significant deficiencies and material weaknesses.


Date: May 19, 2003
                                                        /S/ KELLY HANKINSON
                                                        -----------------------
                                                        Kelly L. Hankinson
                                                        Chief Financial Officer




                                      -20-
<PAGE>