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

                                   FORM 10-QSB

                                   (Mark One)

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
     OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2006

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
     OF 1934 FOR THE TRANSITION PERIOD FROM ________TO__________


                         Commission File Number: 022597


                                  CIMNET, INC.
          -------------------------------------------------------------
          (Exact name of small business issuer as specified in charter)


          DELAWARE                                            52-2075851
--------------------------------------------------------------------------------
State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization                                Identification No.)


                946 W. Penn Avenue, Robesonia, Pennsylvania 19551
               --------------------------------------------------
                    (Address of principal executive offices)


                                 (610) 693-3114
                           ---------------------------
                           (Issuer's telephone number)


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 [ ]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

Transitional Small Business Disclosure Format: Yes [ ] No [X]

The Company has 7,414,044 shares of common stock, par value $.0001 per share,
outstanding as of November 14, 2006.
<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

FORWARD-LOOKING STATEMENTS                                                    3

PART I - FINANCIAL INFORMATION
------------------------------

Item 1     Financial Statements

           Balance Sheets                                                     4
           Statements of Operations                                           6
           Statements of Cash Flows                                           7
           Notes to Financial Statements                                      8

Item 2     Management's Discussion and Results of Operations                 13

Item 3     Controls and Procedures                                           17

PART II - OTHER INFORMATION
---------------------------

Item 1     Legal Proceedings                                                 18

Item 2     Unregistered Sales of Equity Securities and Use of Proceeds       18

Item 3     Defaults Upon Senior Securities                                   18

Item 4     Submission of Matters to Vote of Security Holders                 18

Item 5     Other Information                                                 18

Item 6     Exhibits                                                          18

Signatures                                                                   19

Exhibits                                                                     20

<PAGE>

                           FORWARD-LOOKING STATEMENTS

         Certain statements contained in this report constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All
statements included in this report, other than statements of historical facts,
regarding our strategy, future operations, financial position, estimated
revenues, projected costs, prospects, plans and objectives are forward-looking
statements. When used in this report, the words "believe," "anticipate,"
"intend", "estimate," "expect," "project", "could", "would", "may", "plan",
"predict", "pursue", "continue", "feel" and similar expressions are intended to
identify forward-looking statements, although not all forward-looking statements
contain these identifying words.

         We cannot guarantee future results, levels of activity, performance or
achievements, and you should not place undue reliance on our forward-looking
statements. Our actual results could differ materially from those anticipated in
these forward-looking statements as a result of various factors. Our
forward-looking statements do not reflect the potential impact of any future
acquisitions, mergers, dispositions, joint ventures or strategic investments. In
addition, any forward-looking statements represent our expectation only as of
the date of this report and should not be relied on as representing our
expectations as of any subsequent date. While we may elect to update
forward-looking statements at some point in the future, we specifically disclaim
any obligation to do so, even if our expectations change.

         Although we believe that the expectations reflected in any of our
forward-looking statements are reasonable, actual results could differ
materially from those projected or assumed in any of our forward-looking
statements. Our future financial condition and results of operations, as well as
any forward-looking statements, are subject to change and to inherent risks and
uncertainties, such as those disclosed in this report. Important factors that
could cause our actual results, performance and achievements, or industry
results to differ materially from estimates or projections contained in
forward-looking statements include, among others, the following:

         o        our relationship with our existing customers;
         o        our need for additional capital;
         o        our dependence upon the demand for manufacturing software;
         o        our reliance on relatively large orders from a limited number
                  of customers;
         o        operating costs are relatively fixed relative to sales;
         o        intense competition from competitors;
         o        our ability to recruit and maintain key management and other
                  personnel,
         o        our ability to protect our intellectual property rights;
         o        intellectual property infringement claims;
         o        product liability claims;
         o        product concentration; and
         o        our ability to generate sufficient cash to operate and expand
                  our business.

         Market data and other statistical information used throughout this
report is based on independent industry publications, government publications,
reports by market research firms or other published independent sources and on
our good faith estimates, which are derived from our review of internal surveys
and independent sources. Although we believe that these sources are reliable, we
have not independently verified the information and cannot guarantee its
accuracy or completeness.

         Forward-looking statements in this Quarterly Report on Form 10-QSB
speak only as of the date hereof, and forward looking statements in documents
attached are incorporated by reference speak only as of the date of those
documents. The Company does not undertake any obligation to update or release
any revisions to any forward-looking statement or to report any events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events, except as required by law. Unless otherwise noted, the
terms "we," "our," "us," "Company," refer to CIMNET, Inc.

                                       3
<PAGE>
<TABLE>
<CAPTION>

                         PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

                                  CIMNET, INC.

                                 BALANCE SHEETS

                                                                            September 30,   December 31,
                                                                                2006            2005
                                                                            ------------    ------------
                                                                            (Unaudited)
<S>                                                                         <C>             <C>
                                     ASSETS
CURRENT ASSETS

     Cash and cash equivalents                                              $     35,056    $     43,985

     Accounts receivable, net of allowance of $20,577 at
         September 30, 2006 and $22,295 at December 31, 2005                     802,505         869,492

     Inventories                                                                 108,323          97,209

     Prepaid expenses                                                             83,678          65,264

     Deferred income tax assets                                                  439,604         140,419
                                                                            ------------    ------------

        Total Current Assets                                                   1,469,166       1,216,369

PROPERTY AND EQUIPMENT, NET                                                      227,090         258,759

GOODWILL                                                                       2,364,145       2,364,145

OTHER ASSETS                                                                      78,833          95,333
                                                                            ------------    ------------

         Total Assets                                                       $  4,139,234    $  3,934,606
                                                                            ============    ============
</TABLE>

The accompanying notes are an integral part of these statements.

                                       4
<PAGE>
<TABLE>
<CAPTION>

                                  CIMNET, INC.

                                 BALANCE SHEETS

                                   (CONTINUED)

                                                                            September 30,   December 31,
                                                                                2006            2005
                                                                            ------------    ------------
                                                                            (Unaudited)
<S>                                                                         <C>             <C>
                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

     Line of credit                                                         $     53,665    $    661,000
     Demand note payable, stockholder                                                 --         110,000
     Current portion of capital lease obligations                                 16,575          15,714
     Current portion of long-term debt                                                --           6,592
     Accounts payable                                                            122,510          97,864
     Accrued expenses                                                             88,697          84,317
     Dividends payable on preferred stock                                        312,667         312,667
     Deferred income                                                             973,606         938,709
                                                                            ------------    ------------

         Total Current Liabilities                                             1,567,720       2,226,863

LONG-TERM DEBT, NET OF CURRENT PORTION                                                --           5,350

CAPITAL LEASE OBLIGATIONS, NET OF CURRENT PORTION                                  6,981          20,285
                                                                            ------------    ------------

         Total Liabilities                                                     1,574,701       2,252,498
                                                                            ------------    ------------

STOCKHOLDERS' EQUITY

     Preferred stock, $.0001 8% cumulative convertible;
         5,000,000 shares authorized; 746,965
         shares issued and outstanding at September 30, 2006
         and December 31, 2005                                                        75              75

     Common stock, 15,000,000 shares authorized at $.0001 par value;
         7,323,859 shares issued and outstanding at September 30, 2006
         and 7,293,859 shares issued and outstanding at
         December 31, 2005                                                           732             729
     Paid-in capital                                                           6,079,610       5,945,813
     Accumulated deficit                                                      (3,515,619)     (4,264,056)
     Deferred stock compensation                                                    (265)           (453)
                                                                            ------------    ------------

     Total Stockholders' Equity                                                2,564,533       1,682,108
                                                                            ------------    ------------
     Total Liabilities and Stockholders' Equity                             $  4,139,234    $  3,934,606
                                                                            ============    ============
</TABLE>

The accompanying notes are an integral part of these statements.

                                       5
<PAGE>
<TABLE>
<CAPTION>

                                  CIMNET, INC.

                            STATEMENTS OF OPERATIONS

                                                         Three Months                    Nine Months
                                                      Ended September 30,            Ended September 30,
                                                 ----------------------------    ----------------------------
                                                     2006            2005            2006            2005
                                                 ------------    ------------    ------------    ------------
                                                         (Unaudited)                     (Unaudited)
<S>                                              <C>             <C>             <C>             <C>
NET SALES                                        $  1,454,354    $    917,502    $  4,068,677    $  2,477,243

COST OF GOODS SOLD                                     72,993          88,306         304,528         254,573
                                                 ------------    ------------    ------------    ------------

           Gross Profit                             1,381,361         829,196       3,764,149       2,222,670
                                                 ------------    ------------    ------------    ------------

OPERATING EXPENSES
     Selling, general and administrative              579,826         431,742       1,740,624       1,294,764
     Research and development                         516,037         322,510       1,543,827         894,144
                                                 ------------    ------------    ------------    ------------
                                                    1,095,863         754,252       3,284,451       2,188,908
                                                 ------------    ------------    ------------    ------------

           Operating Income                           285,498          74,944         479,698          33,762

NONOPERATING EXPENSES
     Interest expense                                   6,158          16,862          30,446          41,445
                                                 ------------    ------------    ------------    ------------


           Income (Loss) before Income Taxes          279,340          58,082         449,252          (7,683)

INCOME TAX BENEFIT                                         --              --        (299,185)             --
                                                 ------------    ------------    ------------    ------------

           Net Income (Loss)                     $    279,340    $     58,082    $    748,437    $     (7,683)
                                                 ============    ============    ============    ============

NET INCOME (LOSS) PER COMMON SHARE -
     BASIC                                       $       0.04    $       0.01    $       0.10    $      (0.01)
     DILUTED                                     $       0.03    $       0.01    $       0.08    $      (0.01)
</TABLE>

The accompanying notes are an integral part of these statements.

                                       6
<PAGE>
<TABLE>
<CAPTION>

                                  CIMNET, INC.

                            STATEMENTS OF CASH FLOWS

                                                                                    Nine Months
                                                                               Ended September 30,
                                                                          ----------------------------
                                                                              2006            2005
                                                                          ------------    ------------
                                                                                   (Unaudited)
<S>                                                                       <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES

     Net income (loss)                                                    $    748,437    $     (7,683)
     Adjustments to reconcile net income (loss) to net cash
     Provided by (used in) operating activities:
            Depreciation and amortization                                       77,556          75,165
            Provision for doubtful accounts                                     (1,718)         16,678
                 Deferred income taxes                                        (299,185)             --
            Compensation cost for  stock options                               132,488             812
            (Increase) decrease in assets:
               Accounts receivable                                              68,704        (333,565)
               Inventories                                                     (11,114)          4,725
               Prepaid expenses                                                (18,414)         21,355
            Increase (decrease) in liabilities:
               Accounts payable                                                (44,312)        (90,736)
               Accrued expenses                                                  4,380          24,764
               Deferred income                                                  34,897        (128,812)
                                                                          ------------    ------------

              Net Cash Provided by (Used in) Operating Activities              691,719        (417,297)
                                                                          ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES

     Purchase of property and equipment                                        (29,387)        (17,678)
     Purchase of software license rights                                            --         (60,000)
                                                                          ------------    ------------

              Net Cash Used in Investing Activities                            (29,387)        (77,678)
                                                                          ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES

     Proceeds from exercise of options                                           1,500              --
     Payments on demand note payable , stockholder                            (110,000)        (20,000)
     Net borrowings (payments) on line of credit                              (607,335)        373,932
     Cash disbursements pending line of credit activity                         68,958              --
     Capital lease purchases                                                        --          16,574
     Payments on capital lease obligations                                     (12,442)        (11,913)
     Principal payments on long-term borrowings                                (11,942)             --
                                                                          ------------    ------------

              Net Cash Provided by (Used in) Financing Activities             (671,261)        358,593
                                                                          ------------    ------------

              Net Decrease in Cash and Cash Equivalents                         (8,929)       (136,382)

CASH AND CASH EQUIVALENTS - BEGINNING                                           43,985         155,653
                                                                          ------------    ------------

CASH AND CASH EQUIVALENTS - ENDING                                        $     35,056    $     19,271
                                                                          ============    ============

SUPPLEMENTARY CASH FLOWS INFORMATION

     Interest paid                                                        $     30,719    $     42,113
                                                                          ============    ============
     Income taxes paid                                                              --              --
                                                                          ============    ============
</TABLE>

The accompanying notes are an integral part of these statements.

                                       7
<PAGE>

                                  CIMNET, INC.

                          NOTES TO FINANCIAL STATEMENTS

                                   (Unaudited)

NOTE 1 - BASIS OF PRESENTATION

         The accompanying unaudited financial statements have been prepared in
     accordance with accounting principles generally accepted in the United
     States of America. Certain information and footnote disclosures normally
     included in financial statements prepared in accordance with accounting
     principles generally accepted in the United States of America have been
     condensed or omitted pursuant to the Securities and Exchange Commission
     rules and regulations. These financial statements should be read in
     conjunction with the financial statements and notes thereto included in
     Form 10-KSB for the fiscal year ended December 31, 2005. In the opinion of
     management, all adjustments (consisting only of normal recurring
     adjustments) necessary for a fair presentation of the financial statements
     have been included. The results of operations for the three and nine months
     ended September 30, 2006, are not necessarily indicative of the results
     which may be expected for the entire fiscal year.

         Use of Estimates

         The preparation of financial statements in conformity with accounting
     principles generally accepted in the United States of America requires
     management to make estimates and assumptions that affect the reported
     amounts of assets and liabilities and disclosure of contingent assets and
     liabilities at the date of the financial statements and the reported
     amounts of revenues and expenses during the reporting period. Actual
     results could differ from those estimates.

         Reclassification

         Certain prior year amounts have been reclassified to conform to the
     current year presentation.

NOTE 2 - NEW ACCOUNTING PRONOUNCEMENTS

         FIN 48

         In July 2006, the Financial Accounting Standards Board (FASB) issued
     FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes."
     The interpretation clarifies the accounting for uncertainty in income taxes
     recognized in a company's financial statements in accordance with Statement
     of Financial Accounting Standards No. 109, "Accounting for Income Taxes."
     Specifically, the pronouncement prescribes a recognition threshold and a
     measurement attribute for the financial statement recognition and
     measurement of a tax position taken or expected to be taken in a tax
     return. The interpretation also provides guidance on the related
     derecognition, classification, interest and penalties, accounting for
     interim periods, disclosure and transition of uncertain tax positions. The
     interpretation is effective for fiscal years beginning after December 15,
     2006. The Company is currently evaluating the effect of the pronouncement
     on the Company's financial statements.

         SAB 108

         On September 13, 2006, the Securities and Exchange Commission ("SEC")
     issued Staff Accounting Bulletin No. 108 ("SAB 108"). SAB 108 provides
     interpretive guidance on how the effects of the carryover or reversal of
     prior year misstatements should be considered in quantifying a potential
     current year misstatement. Prior to SAB 108, Companies might evaluate the
     materiality of financial-statement misstatements using either the income
     statement or balance sheet approach, with the income statement approach
     focusing on new misstatements added in the current year, and the balance
     sheet approach focusing on the cumulative amount of misstatements present
     in a company's balance sheet. Misstatements that would be material under
     one approach could be viewed as immaterial under another approach, and not
     be corrected. SAB 108 now requires that companies view financial statement
     misstatements as material if they are material according to either the
     income statement or balance sheet approach. The pronouncement is not
     expected to have a material effect on the Company's financial statements.

                                       8
<PAGE>

                                  CIMNET, INC.

                          NOTES TO FINANCIAL STATEMENTS

                                   (Unaudited)

NOTE 3 - STOCK BASED COMPENSATION

         In December 2004, the Financial Accounting Standards Board (FASB)
     issued Statement No. 123(R), "Share-Based Payment" ("SFAS No. 123(R)"),
     which revised Statement No. 123, "Accounting for Stock-Based Compensation,"
     and supersedes APB Opinion No. 25, "Accounting for Stock Issued to
     Employees," and its related implementation guidance. SFAS No. 123(R)
     requires compensation costs related to share-based payment transactions to
     be recognized in the financial statements (with limited exceptions). The
     amount of compensation cost is measured based on the grant-date fair value
     of the equity or liability instruments issued. Compensation cost is
     recognized over the period that an employee provides service in exchange
     for the award.

         In March 2005, the Securities and Exchange Commission ("SEC") issued
     Staff Accounting Bulletin No. 107 ("SAB No. 107"), "Share-Based Payment",
     providing guidance on option valuation methods, the accounting for income
     tax effects of share-based payment arrangements upon adoption of SFAS No.
     123(R), and the disclosures in MD&A subsequent to the adoption. On April
     14, 2005, the SEC adopted a new rule that amended the compliance dates for
     SFAS No. 123(R).

         In February 2006, the FASB issued Staff Position No. FAS 123(R)-4,
     "Classification of Options and Similar Instruments Issued as Employee
     Compensation That Allow for Cash Settlement upon Occurrence of a Contingent
     Event." This position amends SFAS 123(R) to incorporate that a cash
     settlement feature that can be exercised only upon the occurrence of a
     contingent event that is outside the employee's control does not meet
     certain conditions in SFAS 123(R) until it becomes probable that the event
     will occur. The guidance in this FASB Staff Position shall be applied upon
     initial adoption of Statement 123(R). The adoption of FASB 123(R)-4 did not
     have a significant effect on its financial statements.

         We adopted SFAS No. 123(R) on January 1, 2006. As a result, we
     recognized stock based compensation cost, measured using the Black-Scholes
     option model, for vested and new options granted beginning January 1, 2006.
     We recorded stock based compensation cost of $0 for the three months ended
     September 30, 2006 and $132,300 for the nine months ended September 30,
     2006. The income tax benefit recognized for stock based compensation was $0
     for the three months ended September 30, 2006 and $53,705 for the nine
     months ended September 30, 2006. Thirty thousand stock options were
     exercised resulting in proceeds to the Company of $1,500 during the nine
     months ended September 30, 2006. No stock options were exercised during the
     three months ended September 30, 2006 and the three and nine months ended
     September 30, 2005.

         Stock Option Plans

         During 2002, the stockholders approved the adoption of the 2002 Stock
     Option Plan (the 2002 Plan). The purpose of the 2002 Plan is to provide a
     means whereby directors and selected employees, officers, agents,
     consultants and independent contractors of the Company may be granted
     incentive stock options and/or nonqualified stock options to purchase
     shares of common stock in order to attract and retain the services or
     advice of such directors, employees, officers, agents, consultants, and
     independent contractors. A total of 1,600,000 shares of common stock have
     been made available. The options under this plan vest as dictated in the
     individual stock option agreements and expire five years from date of grant
     for a 10% stockholder and ten years from date of grant for all others.
     During the three months and nine months ended September 30, 2006, 0 and
     525,000 options have been granted under this Plan respectively, all of
     which were granted at market value. No options were granted during the
     three months and nine months ended September 30, 2005.

                                       9
<PAGE>

                                  CIMNET, INC.

                          NOTES TO FINANCIAL STATEMENTS

                                   (Unaudited)

         During 1999, the stockholders approved the adoption of the 1999 Stock
     Option Plan (the 1999 Plan). The purpose of the 1999 Plan is to provide a
     means whereby directors and selected employees, officers, agents,
     consultants and independent contractors of the Company may be granted
     incentive stock options and/or nonqualified stock options to purchase
     shares of common stock in order to attract and retain the services or
     advice of such directors, employees, officers, agents, consultants, and
     independent contractors. A total of 1,300,000 shares of common stock have
     been made available. The options under this Plan vest over a five-year
     period, in 20% increments on each successive anniversary of the date of the
     grant, with varying expiration dates.

         At September 30, 2006, 1,300,619 options have been granted under the
     1999 plan of which 725,000 options have been granted below market price and
     for which 100,619 options have been exercised.

         A summary of the status of the Company's stock option plans as of
     September 30, 2006 is presented below:
<TABLE>
<CAPTION>

                                                                                 Weighted
                                                                                 Average
                                                                                 Exercise         Intrinsic
                                                                   Shares          Price            Value
                                                                ------------    ------------    ------------
<S>                                                             <C>          <C>             <C>
Outstanding, January 1, 2006                                       1,062,500       $ 1.00              --
     Exercised                                                       (30,000)        0.05         (39,000)
     Granted                                                         525,000         0.60              --
     Forfeited                                                            --           --              --
                                                                ------------    ------------    ------------

Outstanding, September 30, 2006                                    1,557,500       $ 0.88       $  1,121,400
                                                                ============    ============    ============

Options exercisable, September 30, 2006                            1,555,000       $ 0.88       $  1,119,600
                                                                ============    ============    ============
Weighted average fair value of options granted during the
     nine months ended September 30, 2006                                          $ 0.35
                                                                                ============
</TABLE>

         The following table summarizes information about options outstanding at
     September 30, 2006:
<TABLE>
<CAPTION>

                            Options Outstanding                            Options Exercisable
-------------------------------------------------------------------   ----------------------------

                                         Weighted
                          Number         Average          Weighted       Number         Weighted
  Range of            Outstanding at     Remaining        Average    Outstanding at     Average
  Exercise             September 30,     Contractual      Exercise    September 30,     Exercise
   Prices                  2006          Life (Years)       Price         2006           Price
---------------      ---------------   ---------------   ----------   -------------   ------------
<S>                      <C>                <C>            <C>           <C>             <C>
     $0.05               105,000            1.21           $0.05         105,000         $0.05
$0.33 - $0.75            720,000            3.91            0.59         720,000          0.59
$1.00 - $1.50            632,500            1.22            1.18         630,000          1.18
    $2.00                100,000            1.50            2.00         100,000          2.00
                     ---------------                                  ------------

                       1,557,500                                       1,555,000
                     ===============                                  ============
</TABLE>

                                       10
<PAGE>

                                  CIMNET, INC.

                          NOTES TO FINANCIAL STATEMENTS

                                   (UNAUDITED)

         Prior to January 1, 2006, the Company applied the intrinsic value
     method in accordance with Accounting Principles Board Opinion No. 25
     "Accounting for Stock Issued to Employees" and related Interpretations in
     accounting for stock-based compensation costs. Had compensation cost for
     the options been determined based on the fair value of the employee options
     at the grant dates consistent with the method of SFAS No. 123, the
     Company's net income (loss) and net income (loss) per share of common stock
     would have been reduced to the pro forma amounts indicated below:
<TABLE>
<CAPTION>

                                                                                   Nine           Three
                                                                                  Months          Months
                                                                                  Ended           Ended
                                                                               September 30,   September 30,
                                                                                   2005            2005
                                                                               ------------    ------------
<S>                                                                            <C>             <C>
         Net income (loss) available to common stockholders :
              As reported                                                      $    (67,683)   $     38,082
              Add stock-based employee compensation
                  expense included in reported net income (loss)
                  net of related tax effects                                            812             270
              Deduct total stock-based employee
                  compensation expense determined under
                  fair value based method for all awards, net
                  of related tax effects                                            (25,193)         (8,398)

                                                                               ------------    ------------
               Pro Forma                                                       $    (92,064)   $     29,954
                                                                               ============    ============
         Net income (loss) per share of common stock, basic
              and diluted:
               As reported                                                     $      (0.01)   $       0.01
                                                                               ============    ============

               Pro Forma                                                       $      (0.01)   $       0.01
                                                                               ============    ============
</TABLE>

                                       11
<PAGE>

                                  CIMNET, INC.

                          NOTES TO FINANCIAL STATEMENTS

                                   (UNAUDITED)

NOTE 4 - EARNINGS PER SHARE

         The Company's calculation of earnings per share is as follows:
<TABLE>
<CAPTION>

                                                           Nine Months Ended     Nine Months Ended
                                                           September 30, 2006    September 30, 2005
                                                           ------------------    ------------------
<S>                                                        <C>                   <C>
         Net income (loss)                                 $          748,437    $           (7,683)
         Preferred stock dividends                                          0               (60,000)
         NET INCOME (LOSS) APPLICABLE TO COMMON
              STOCKHOLDERS                                 $          748,437    $          (67,683)

         AVERAGE BASIC SHARES OUTSTANDING                           7,307,925             7,293,859
         Assumed conversion of preferred stock                        794,920                     0
         Effect of dilutive options and warrants                      729,086                     0
                                                           ------------------    ------------------
         AVERAGE DILUTED SHARES OUTSTANDING                         8,831,931             7,293,859
                                                           ==================    ==================
         NET INCOME (LOSS) PER COMMON SHARE
              Basic                                        $             0.10    $            (0.01)

              Diluted                                      $             0.08    $            (0.01)
</TABLE>

         A total of 220,000 common stock options and 200,000 warrants were
     excluded from the September 30, 2006 computation of diluted earnings per
     share as they would be anti-dilutive. A total of 1,032,500 common stock
     options and warrants and 746,965 shares of convertible preferred stock were
     excluded from the September 30, 2005 computation of diluted earnings per
     share as they would be anti-dilutive.

         The Company's calculation of earnings per share for the three months
     ended September 30, 2006 and 2005 is as follows:
<TABLE>
<CAPTION>

                                                           Three Months Ended    Three Months Ended
                                                           September 30, 2006    September 30, 2005
                                                           ------------------    ------------------
<S>                                                        <C>                   <C>
         Net income                                        $          279,340    $           58,082
         Preferred stock dividends                                          0               (20,000)
                                                           ------------------    ------------------
         NET INCOME APPLICABLE TO COMMON STOCKHOLDERS      $          279,340    $           38,082

         AVERAGE BASIC SHARES OUTSTANDING                           7,323,859             7,293,859
         Assumed conversion of preferred stock                        708,743                     0
         Effect of dilutive options and warrants                      870,691               294,934
                                                           ------------------    ------------------
         AVERAGE DILUTED SHARES OUTSTANDING                         8,903,293             7,588,793
                                                           ==================    ==================
         NET INCOME PER COMMON SHARE
              Basic                                        $             0.04    $             0.01
                                                           ==================    ==================

              Diluted                                      $             0.03    $             0.01
                                                           ==================    ==================
</TABLE>

                                       12
<PAGE>

                                  CIMNET, INC.

                          NOTES TO FINANCIAL STATEMENTS

                                   (Unaudited)

         A total of 220,000 common stock options and 200,000 warrants were
     excluded from the September 30, 2006 computation of diluted earnings per
     share as they would be anti-dilutive. A total of 1,032,500 common stock
     options and warrants and 746,965 shares of convertible preferred stock were
     excluded from the September 30, 2005 computation of diluted earnings per
     share as they would be anti-dilutive.

NOTE 5 - INCOME TAXES

         Based on the continued improvements in the Company's operations and
     forecasted revenue and taxable income, the Company reversed $0 and $299,185
     of its valuation allowance for deferred taxes during the three months and
     nine months ended September 30, 2006, respectively as it expects to use
     this amount to offset future taxable income. No benefit for income taxes
     was recorded for the three months or nine months ended September 30, 2005.

NOTE 6 - COMMITMENTS AND CONTINGENCIES

         On January 23, 2004, the Company entered into a Technology License
     Agreement with ADROIT, a South African Company. That agreement was amended
     and restated on March 17, 2004. As a result, the Company obtained an
     irrevocable license to market ADROIT's VIZNET software, including the right
     to sublicense this product to third parties. The Company was required to
     pay ADROIT $110,000 in accordance with the terms of the agreement. This
     agreement will remain in effect for five years and holds terms for annual
     renewals. As of September 30, 2006, the Company has paid $110,000 of this
     obligation and this amount is being amortized over the life of the
     agreement. Amortization expense included in the results of operations was
     $5,500 for the three months ended September 30, 2006 and $16,500 for the
     nine months ended September 30, 2006.

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

         The following Management's Discussion and Analysis should be read in
     conjunction with Management's Discussion and Analysis included in our
     Annual Report on Form 10-KSB for the year ended December 31, 2005 as filed
     with the United States Securities and Exchange Commission ("SEC"), and our
     other filings, including Current Reports on Form 8-K, filed with the SEC
     through the date of this report.

RESULTS OF OPERATIONS - NINE MONTHS ENDED SEPTEMBER 30, 2006

         Net sales for the nine months ended September 30, 2006 were $4,068,677,
     an increase of 64.2% or $1,591,434 over the net sales of $2,477,243 for the
     same period in 2005. This increase is due to the overall market upturn in
     MES (Manufacturing Execution System) sales along with the Company's
     subscriptions sales model for Factelligence receiving increased market
     acceptance, resulting in new orders and increased revenues. During the nine
     months ended September 30, 2006, the Company received significant software
     maintenance renewals as well as orders from three large food manufacturers
     and a manufacturer of custom fire-fighting equipment. In addition to orders
     in the United States, the Company also received orders and/or commitments
     from customers located in China, Canada, Hungary and the Netherlands.

                                       13
<PAGE>

                                  CIMNET, INC.

         Cost of goods sold for the nine months ended September 30, 2006 was
     $304,528 or 7.5% of net sales compared to $254,573 or 10.3% of net sales
     for the same period in 2005. For the period ended September 30, 2006, this
     represents a 2.8% decrease in the percentage of cost of goods sold as
     related to total net sales over the same period in 2005. The decrease is
     due to a 64.2% increase in sales during the nine months ended September 30,
     2006 compared to the same period in 2005. The increase in sales during the
     period came primarily from MES software and services, which have a lower
     cost of goods sold percentage than our DNC products.

         Gross profit for the nine months ended September 30, 2006 was
     $3,764,149 compared to $2,222,670 for the same period of 2005, an increase
     of $1,541,479 or 69.4%. This increase is consistent with the increase in
     net sales and decrease in cost of goods sold as a percentage of sales.

         Selling, general and administrative expenses for the nine months ended
     September 30, 2006 were $1,740,624 or 42.8% of net sales, which includes
     $75,600 of the $132,300 of total stock based compensation cost expensed as
     the result of options issued and vested during the period, compared to
     $1,294,764 or 52.3% of net sales with no stock options expensed in the same
     period in 2005. The overall decrease in selling, general and administrative
     expenses as a percentage of net sales is 9.5% in the nine months ended
     September 30, 2006 over the same period in 2005. This is primarily
     attributable to the 64.2% increase in sales and only a 34.4% increase in
     selling, general and administrative expenses in the nine months ended
     September 30, 2006 over the same period in 2005. The increase in selling,
     general and administrative expenses during the nine months ended September
     30, 2006 is attributable to the following: substantial increase in sales
     commissions due to 64.2% increase in sales during the period; increase in
     employee compensation to adjust for salary reductions implemented in
     previous years; general increase in health insurance costs; and, an
     increase in office expenses to correspond with the needs of an increase in
     the number of employees.

         During the nine months ended September 30, 2006, research and
     development costs were $1,543,827 or 37.9% of net sales, which includes
     $56,700 of the $132,300 of total stock based compensation cost expensed as
     the result of options issued and vested during the period, compared to
     $894,144 or 36.1% of net sales with no stock options expensed over the same
     period in 2005, an increase of $649,683 or 72.7%. This increase is due to
     the employment of additional developers and software engineers to support
     the demands of increased current and expected future orders; an increase in
     employee compensation to adjust for salary reductions implemented in
     previous years; and salary increases for those employees who had previously
     forgone raises.

         Income from operations for the nine months ended September 30, 2006 was
     $479,698 including SFAS 123(R) recognition of $132,300 expense for stock
     options granted during the period, compared to income of $33,762 in the
     same period in 2005, an improvement of $445,936 in operations. This
     improvement in operations is predominantly due to the previously discussed
     increase in sales, combined with a lower cost of goods sold as a percentage
     of net sales in the nine months ended September 30, 2006 compared to the
     same period in 2005.

         Net interest expense for the nine months ended September 30, 2006 was
     $30,446 or 0.7% of net sales, compared to net interest expense of $41,445
     or 1.7% of net sales for the same period of 2005. This decrease is the
     result of the Company's repayment of its note payable to John Richardson,
     CEO. Additionally, the Company maintained an average monthly balance of
     $376,629 on its line of credit for the nine months ended September 30, 2006
     as compared to an average monthly balance of $603,571 for the nine months
     ended September 30, 2005.

         Based on the continued improvements in the Company's operations, and
     the Company's forecasted revenue and taxable income, the Company reversed
     $299,185 of its valuation allowance for deferred taxes as it expects to use
     this amount to offset future taxable income. No benefit for income taxes
     was recorded for the nine months ended September 30, 2005. The Company will
     continue to evaluate its expected profitability, if any, to determine the
     ability to realize its deferred income tax asset in future periods.

                                       14
<PAGE>

                                  CIMNET, INC.

         Net income for the nine months ended September 30, 2006 was $748,437 or
     $0.10 per basic and $0.08 per diluted share as compared to net loss of
     ($7,683) or ($0.01) per basic and diluted share for the same period in
     2005. The net income of $748,437 is comprised primarily of $479,698 in
     operating income for the nine months ended September 30, 2006 (which is net
     of stock options expensed for the period of $132,300) and the reversal of
     $299,185 in deferred tax valuation allowance. This increase of $756,120 in
     net income in the nine months ended September 30, 2006, over the same
     period in 2005 is primarily due to the previously discussed increase in
     sales, combined with decreases in cost of goods sold as percentage of net
     sales, and reversal of a portion of the deferred tax valuation allowance.

RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 2006

         Net sales for the three months ended September 30, 2006 were
     $1,454,354, an increase of 58.5% or $536,852 over the net sales of $917,502
     for the same period in 2005. This increase is due to the overall market
     upturn in MES sales along with the Company's subscriptions sales model for
     Factelligence receiving increased market acceptance, resulting in new
     orders and increased revenues. During the three months ended September 30,
     2006, the Company received significant software subscription and
     maintenance renewals as well as an order from a manufacturer of custom
     fire-fighting equipment. In addition to orders received in the United
     States, the Company also received orders and/or order commitments from
     customers located in China, Canada, Hungary and the Netherlands. Some of
     these projects have commenced and others are expected to start during the
     fourth quarter. We have added engineering staff during the third quarter
     and anticipate adding two to four more application engineers during the
     fourth quarter of 2006 to meet existing and anticipated demand from our
     customers.

         Cost of goods sold for the three months ended September 30, 2006 was
     $72,993 or 5.0% of net sales compared to $88,306 or 9.6% of net sales for
     the same period in 2005. For the three months ended September 30, 2006,
     this represents a 4.6% decrease in the percentage of cost of goods sold as
     related to total net sales over the same period in 2005. The decrease is
     due to a 58.5% increase in sales during the three months ended September
     30, 2006 compared to the same period in 2005. The increase in sales during
     the period came primarily from MES software and services, which have a
     lower cost of goods sold percentage than our DNC products.

         Gross profit for the three months ended September 30, 2006 was
     $1,381,361, compared to $829,196 for the same period of 2005, an increase
     of $552,165 or 66.6%. This increase is consistent with the increase in net
     sales.

         Selling, general and administrative expenses for the three months ended
     September 30, 2006 were $579,826 or 39.9% of net sales, compared to
     selling, general and administrative expenses of $431,742 or 47.1% of net
     sales for the same period in 2005. The overall decrease in selling, general
     and administrative expenses as a percentage of net sales is 7.2% in the
     three months ended September 30, 2006 over the same period in 2005. This is
     primarily attributable to the 58.5% increase in sales and only a 34.3%
     increase in selling, general and administrative expenses in the three
     months ended September 30, 2006 over the same period in 2005. The net
     increase in selling, general and administrative expenses during the three
     months ended September 30, 2006 is attributable to the following: increase
     in sales commissions due to the 58.5% increase in sales during the period;
     increase in employee compensation to adjust for salary reductions
     implemented in previous years; and, a general increase in health insurance
     costs.

         During the three months ended September 30, 2006, research and
     development costs were $516,037 or 35.5% of net sales; an increase of
     $193,527 or 60.0% over the same period in 2005. This increase in the three
     month period ended September 30, 2006, is due to the employment of
     additional developers and software engineers to support the demands of
     increased current and expected future orders; an increase in employee
     compensation to adjust for salary reductions implemented in previous years;
     and, salary increases for those employees who had previously forgone
     raises.

                                       15
<PAGE>

                                  CIMNET, INC.

         Income from operations for the three months ended September 30, 2006
     was $285,498 compared to $74,944 for the same period in 2005. This
     represents an improvement of 280.9% or $210,554 in operations for the three
     months ended September 30, 2006 over the same period in 2005. This
     improvement in operations is predominantly due to the previously discussed
     58.5% increase in sales, only 45.3% increase in operating expenses and a
     4.6% decrease in cost of goods sold as percentage of net sales in the three
     months ended September 30, 2006 over the same period on 2005.

         Net interest expense for the three months ended September 30, 2006 was
     $6,158 or 0.4% of net sales, compared to net interest expense of $16,862 or
     1.8% of net sales for the same period of 2005. This decrease is the result
     of the Company's repayment of its note payable to John Richardson, CEO.
     Additionally, the Company maintained an average monthly balance of $250,332
     on its line of credit for the three months ended September 30, 2006 as
     compared to an average monthly balance of $676,333 for the three months
     ended September 30, 2005.

         The net income for the three months ended September 30, 2006 was
     $279,340 or $0.04 per basic and $0.03 per diluted share as compared to net
     income of $58,082 or $0.01 per basic and diluted share for the same period
     in 2005.

LIQUIDITY AND CAPITAL RESOURCES

         For the period ended September 30, 2006, the Company has used the cash
     generated from improved profitability and operating cash flow activities,
     primarily improved collections of accounts receivable, to pay down its bank
     line of credit, its loan from a shareholder and a bank loan, while
     supporting increased general operating expenses. At September 30, 2006, the
     Company had current assets of $1,469,166 as compared to $1,216,369 at
     December 31, 2005. The increase in current assets is primarily the result
     of a reversal of a portion of the deferred tax asset valuation allowance.

OPERATING ACTIVITIES

         Cash provided by operating activities for the nine months ended
     September 30, 2006 was $619,719 compared to $417,297 of cash used in
     operating activities during the same period in 2005. The increase in net
     cash provided by operations in the nine months ended September 30, 2006 was
     due primarily to the increase in income, and the collection of accounts
     receivable that were outstanding at December 31, 2005.

INVESTING ACTIVITIES

         Cash used in investing activities for the nine months ended September
     30, 2006 decreased by $48,291 to $29,387. The decrease in cash utilized in
     2006 verses the same period in 2005 was due to the payment of $60,000 for
     software license rights in 2005 offset by increased expenditures for
     computer hardware, software and office equipment in 2006.

                                       16
<PAGE>

                                  CIMNET, INC.

FINANCING ACTIVITIES

         During the first nine months of 2006, $671,261 was used in financing
     activities as opposed to $358,593 in cash provided by financing activities
     during the nine months ended September 30, 2005. This increase in cash used
     in financing activities is due to $110,000 in repayment of a shareholder
     demand loan during the nine months ended September 30, 2006 compared to
     only $20,000 in repayment during the same period in 2005, and $607,335 in
     payments made to the line of credit in the nine months ended September 30,
     2006 compared to $373,932 of borrowings from the line of credit during the
     same period in 2005.

CAPITAL RESOURCES

         The Company repaid $443,665 of its obligation to Penn Sterling Bank on
     June 2, 2006, and an additional $9,365 on June 15, 2006 to settle its
     entire obligation. On June 2, 2006, the Company entered into a Loan
     Agreement with Wachovia Bank, N.A., pursuant to which the Company may
     borrow up to $1,000,000 at an interest rate equal to the bank's prime rate
     plus .75%. Interest only is due monthly and the outstanding principal
     amount plus accrued interest is due on April 30, 2007. The Company provided
     the Lender with a security interest in its assets as well as the personal
     guaranties of John D. Richardson, the Company's Chief Executive Officer,
     and his wife. The balance of outstanding borrowings on lines of credit was
     $53,665 and $715,000 at September 30, 2006 and 2005, respectively. As of
     September 30, 2006, the Company had $946,335 available on its line of
     credit.

         In December 2004, the Company borrowed $130,000 from John Richardson,
     CEO, and issued to him a demand note. The secured demand note was payable
     upon demand from the officer/director and yielded interest at the prime
     rate plus 1%. Monthly interest payments were made based on the prime rate
     for the period. Payments of $20,000 on April 4, 2005, $23,000 on April 11,
     2006, $50,000 on May 12, 2006 and $37,000 on May 31, 2006 were made. As of
     September 30, 2006, the Company had repaid the loan in full.

ITEM 3 - CONTROLS AND PROCEDURES

         We maintain disclosure controls and procedures that are designed to
     ensure that information required to be disclosed in our Exchange Act
     reports is recorded, processed, summarized and reported within the time
     periods specified in the Securities and Exchange Commission's rules and
     forms and that such information is accumulated and communicated to our
     management, including our Chief Executive Officer and Principal Accounting
     Officer, as appropriate, to allow for timely decisions regarding required
     disclosure. In designing and evaluating the disclosure controls and
     procedures, management recognizes that any controls and procedures, no
     matter how well designed and operated, can provide only reasonable
     assurance of achieving the desired control objectives, and management is
     required to apply its judgment in evaluating the cost-benefit relationship
     of possible controls and procedures.

         As required by SEC Rule 13a-15(b), we carried out an evaluation as of
     September 30, 2006, under the supervision and with the participation of our
     management, including our Chief Executive Officer and Principal Accounting
     Officer, of the effectiveness of the design and operation of our disclosure
     controls and procedures as of the end of the quarter covered by this
     report. Based on the foregoing, our Chief Executive Officer and Principal
     Accounting Officer concluded that our disclosure controls and procedures
     were effective at the reasonable assurance level.

         There has been no change in our internal controls over financial
     reporting during our most recent fiscal quarter ended September 30, 2006
     that has materially affected, or is reasonably likely to materially affect,
     our internal controls over financial reporting.

                                       17
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

         We are not presently a party to any material legal proceedings nor are
     any material legal proceedings presently threatened against us.


ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS - None


ITEM 3 - DEFAULTS UPON SENIOR SECURITIES - None


ITEM 4 - SUBMISSION OF MATTERS TO VOTE OF SECURITIES HOLDERS - None


ITEM 5 - OTHER INFORMATION - None


ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

     a.  Exhibits

         31.      Certificate Pursuant to Section 302 of the Sarbanes-Oxley Act
                  of 2002

         32.      Certificate of Principal Executive Officer and Principal
                  Accounting Officer Pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002

                                       18
<PAGE>

                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, this report has been signed below by the following person on behalf of
the Registrant and in the capacities and on the dates indicated:

Dated:   November 14, 2006
         Robesonia, Pennsylvania

                                       CIMNET, INC.

                                       BY: /s/ JOHN D. RICHARDSON
                                           -------------------------------------
                                           John D. Richardson
                                           Chairman of the Board,
                                           Chief Executive Officer and
                                           Principal Accounting Officer


                                       19