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

                                   FORM 10-QSB

(Mark One)

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

      FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2006

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

      FOR THE TRANSITION PERIOD FROM ________TO__________


                         Commission File Number: 022597


                                  CIMNET, INC.
               --------------------------------------------------
               (Exact name of registrant as specified in charter)


Delaware                                                             52-2075851
--------------------------------------------------------------------------------
State or other jurisdiction of                                 (I.R.S. Employer
incorporation or organization                             Identification Number)


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


      Issuer's telephone number, including area code: (610) 693-3114

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]

The Company has 7,293,859 shares of common stock, par value $.0001 per share,
outstanding as of May 15, 2006.

Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]
<PAGE>

                                TABLE OF CONTENTS
                                                                           Page
                                                                           ----
PART I - FINANCIAL INFORMATION
-------------------------------------------------------------------------------

Item 1   Financial Statements                                                 1

         Balance Sheets                                                       1

         Statements of Operations                                             2

         Statements of Cash Flows                                             3

         Notes to Financial Statements                                        4

Item 2   Management's Discussion and Results of Operations                    8

Item 3   Controls and Procedures                                             11


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

Item 1   Legal Proceedings                                                   12

Item 2   Changes in Securities and Use of Proceeds                           12

Item 3   Defaults Upon Senior Securities                                     12

Item 4   Submission of Matters to Vote of Securities Holders                 12

Item 5   Other Information                                                   12

Item 6   Exhibits And Reports On Form 8-K                                    12

Signatures                                                                   13

Exhibit 31                                                                   14

Exhibit 32                                                                   15

                                       i
<PAGE>
<TABLE>

                         PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS
                                  CIMNET, INC.
                                 BALANCE SHEETS
                                     ASSETS
                                                                                March 31,      December 31,
                                                                                   2006            2005
                                                                               ------------    ------------
                                                                               (Unaudited)
<S>                                                                            <C>             <C>
CURRENT ASSETS
  Cash and cash equivalents                                                    $     62,207    $     43,985
  Accounts receivable, net of allowance of $ 19,741 at March 31, 2006
    and $22,295 at December 31, 2005                                                769,912         869,492
  Inventories                                                                       113,008          97,209
  Prepaid expenses                                                                   70,329          65,264
  Deferred income tax assets                                                        439,604         140,419
                                                                               ------------    ------------

        Total Current Assets                                                      1,455,060       1,216,369

PROPERTY AND EQUIPMENT, NET                                                         258,009         258,759
GOODWILL                                                                          2,364,145       2,364,145
OTHER ASSETS                                                                         89,833          95,333
                                                                               ------------    ------------
        Total Assets                                                           $  4,167,047       3,934,606
                                                                               ============    ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Line of credit                                                               $    473,000    $    661,000
  Demand note payable, stockholder                                                  110,000         110,000
  Bank loan                                                                          10,329          15,714
  Current portion of capital lease obligation                                        15,855           6,592
  Accounts payable                                                                  102,177          97,864
  Accrued expenses                                                                   90,576          84,317
  Dividends payable on preferred stock                                              312,667         312,667
  Deferred income                                                                   967,986         938,709
                                                                               ------------    ------------
        Total Current Liabilities                                                 2,082,590       2,226,863

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

CAPITAL LEASE OBLIGATION, NET OF CURRENT PORTION                                     16,353          20,285
                                                                               ------------    ------------

        Total Liabilities                                                         2,098,943       2,252,498
                                                                               ------------    ------------
STOCKHOLDERS' EQUITY
  Common stock, 15,000,000 shares authorized at $.0001 par value;
    7,293,859 shares issued and outstanding at March 31, 2006                           729             729
    and December 31, 2005
  Preferred stock, $.0001 8% cumulative convertible; 5,000,000 shares
    authorized;  746,965 shares issued and outstanding at
    March 31, 2006 and December 31, 2005                                                 75              75
  Paid-in capital                                                                 6,078,113       5,945,813
  Accumulated deficit                                                            (4,010,423)     (4,264,056)
  Deferred stock compensation                                                          (390)           (453)
                                                                               ------------    ------------
        Total Stockholders' Equity                                                2,068,104       1,682,108
                                                                               ------------    ------------

                                                                               ------------    ------------
        Total Liabilities and Stockholders' Equity                             $  4,167,047    $  3,934,606
                                                                               ============    ============
</TABLE>

See Notes to Financial Statements

                                       1
<PAGE>
<TABLE>
<CAPTION>

                                  CIMNET, INC.
                            STATEMENTS OF OPERATIONS

                                                                             Three Months
                                                                            Ended March 31,
                                                                     ----------------------------
                                                                         2006            2005
                                                                     ------------    ------------
                                                                             (Unaudited)
<S>                                                                  <C>             <C>
NET SALES                                                            $  1,226,396    $    682,433

COST OF GOODS SOLD                                                        107,826          88,962
                                                                     ------------    ------------
       Gross Profit                                                     1,118,570         593,471
                                                                     ------------    ------------
OPERATING EXPENSES
  Selling, general and administrative  (inclusive of $75,663 in
    stock option based compensation in 2006)                              597,965         423,281
  Research and development  (inclusive of $56,700 in stock
    option based compensation in 2006)                                    552,217         293,578
                                                                     ------------    ------------
                                                                        1,150,182         716,859
       Operating Loss                                                     (31,612)       (123,388)

NONOPERATING INCOME (EXPENSE)
  Interest expense, net                                                   (13,940)         (9,623)
                                                                     ------------    ------------
       Loss before Income Tax Benefit                                     (45,552)       (133,011)
INCOME TAX BENEFIT                                                       (299,185)             --
        Net Income (Loss)                                            $    253,633    ($   133,011)
                                                                     ============    ============
INCOME (LOSS) PER COMMON SHARE - BASIC                               $       0.03    $      (0.02)
                                                                     ============    ============
INCOME (LOSS) PER COMMON SHARE - DILUTED                             $       0.03    $      (0.02)
                                                                     ============    ============
</TABLE>

See Notes to Financial Statements

                                       2
<PAGE>
<TABLE>
<CAPTION>

                                  CIMNET, INC.
                            STATEMENTS OF CASH FLOWS

                                                                                        Three Months
                                                                                      Ended March 31,
                                                                               ----------------------------
                                                                                   2006            2005
                                                                               ------------    ------------
                                                                                      (Unaudited)
<S>                                                                            <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income (loss)                                                            $    253,633    $   (133,011)
  Adjustments to reconcile net income (loss) to net cash provided by
    (used in) operating activities:
        Depreciation and amortization                                                23,520          21,580
        Provision for doubtful accounts                                              (2,554)            209
        Deferred income taxes                                                      (299,185)             --
        Compensation cost for stock options                                         132,363             271
        (Increase) decrease in assets:
                 Accounts receivable                                                102,135          (4,180)
                 Inventories                                                        (15,799)         18,798
                 Prepaid expenses                                                    (5,066)         10,482
        Increase (decrease) in liabilities:
                 Accounts payable                                                    (1,522)        (24,018)
                 Accrued expenses                                                    12,093          (9,353)
                 Deferred income                                                     29,277         (88,566)
                                                                               ------------    ------------
              Net Cash Provided by (Used in) Operating Activities                   228,895        (207,788)
                                                                               ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of property and equipment                                                (17,270)         (2,500)
                                                                               ------------    ------------
              Net Cash Used in Investing Activities                                 (17,270)         (2,500)
                                                                               ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Net borrowings (payments) on line of credit                                      (188,000)        158,932
  Principal payments on capital lease obligations                                    (3,790)             --
  Principal payments on long-term borrowings                                         (1,613)         (2,408)
                                                                               ------------    ------------
              Net Cash Provided by (Used in) Financing Activities                  (193,403)        156,524
                                                                               ------------    ------------

              Net Increase (Decrease) in Cash and Cash Equivalents                   18,222         (53,764)
CASH AND CASH EQUIVALENTS - BEGINNING                                                43,985         155,653
                                                                               ------------    ------------
CASH AND CASH EQUIVALENTS - ENDING                                             $     62,207    $    101,889
                                                                               ============    ============
</TABLE>

See Notes to Financial Statements

                                       3
<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 months ended March 31, 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.

NOTE 2 - STOCK BASED COMPENSATION

                  In December 2004, the Financial Accounting Standards Board
         (FASB) issued Statement No. 123(R), "Share-Based Payment". ("SFAS No.
         123(R)"). 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, SEC adopted a new rule
         that amended the compliance dates for SFAS No. 123(R). Under the new
         rule, the Company is required to adopt SFAS No. 123(R) in the first
         annual period beginning after December 15, 2005.

                  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 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

                                       4
<PAGE>

         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
         $132,300 for the three months ended March 31, 2006. The income tax
         benefit recognized for stock based compensation was $53,705 for the
         three months ended March 31, 2006. No stock options were exercised
         during the three months ended March 31, 2006 and 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 ended March 31,
         2006, 525,000 options have been granted under this Plan, all of which
         were granted at market value.

                  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 March 31, 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 70,619 options have been exercised.

                                       5
<PAGE>

                  A summary of the status of the Company's stock option plans as
         of March 31, 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   $    318,750
  Granted                                        525,000           0.60        367,500
  Forfeited                                           --             --             --
                                            ------------   ------------   ------------

Outstanding, March 31, 2006                    1,587,500   $       0.87   $    686,250
                                            ============   ============   ============

Options exercisable, March 31, 2006            1,579,166   $       0.87   $          0
                                            ============   ============   ============
Weighted average fair value of options
  granted during the three months
  ended March 31, 2006                                     $       0.35
                                                           ============
</TABLE>

                  The following table summarizes information about options
         outstanding at March 31, 2006:
<TABLE>
<CAPTION>

                              Options Outstanding                                      Options Exercisable
-------------------------------------------------------------------------     -----------------------------------
                                           Weighted
                                           Average             Weighted                                Weighted
   Range of             Number             Remaining           Average             Number              Average
   Exercise         Outstanding at        Contractual          Exercise        Outstanding at          Exercise
    Prices          March 31, 2006        Life (Years)         Price           March 31, 2006           Price
--------------     ---------------      --------------      -------------     ---------------      --------------
<C>                    <C>                    <C>                <C>              <C>                   <C>
    $0.05              135,000                1.71              $0.05             135,000              $0.05
$0.33 - $0.90          720,000                4.41               0.59             716,666               0.59
$0.91 - $1.50          632,500                1.72               1.18             627,500               1.18
$1.51 - $2.00          100,000                2.00               2.00             100,000               2.00
                   ---------------                                            ---------------

                     1,587,500                                                  1,579,166
                   ===============                                            ===============
</TABLE>

                  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 and net income per
         share of common stock would have been reduced to the pro forma amounts
         indicated below:

                                       6
<PAGE>

                                                              Three Months Ended
                                                                   March 31,
                                                                --------------
                                                                     2005
                                                                --------------
Net loss available to common stock holders:
      As reported                                               $     (133,011)
      Add stock-based employee compensation
            expense included in reported net loss, net
            of related tax effects                                         271
      Deduct total stock-based employee
            compensation expense determined under
            fair value based method for all awards, net
            of related tax effect                                       (8,398)
                                                                --------------
      Pro Forma                                                 $     (141,138)
                                                                ==============
Net loss per share of common stock, basic and diluted:
      As reported                                               $        (0.02)
      Pro forma                                                 $        (0.02)


NOTE 3 - EARNINGS PER SHARE

                  The Company's calculation of earnings per share is as follows:

                                                              Three Months Ended
                                                                   March 31,
                                                                --------------
                                                                     2006
                                                                --------------

NET INCOME APPLICABLE TO COMMON STOCKHOLDERS                    $      253,633
                                                                ==============

AVERAGE BASIC SHARES OUTSTANDING                                     7,293,859
      Assumed conversion of preferred stock                            869,565
      Effect of dilutive options and warrants                          623,638
                                                                --------------

AVERAGE DILUTED SHARES OUTSTANDING                                   8,787,062
                                                                ==============
NET INCOME PER COMMON SHARE
      Basic                                                     $         0.03
                                                                ==============
      Diluted                                                   $         0.03
                                                                ==============

                  A total of 212,500 common stock options and 200,000 warrants
         were excluded from the computation of diluted earnings per share as
         they would be antidilutive.

                                       7
<PAGE>

NOTE 4 - INCOME TAXES

                  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 three months ended
         March 31, 2005.

NOTE 5 - 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 March 31, 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 as of March 31, 2006.

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

                  This section presents a review of the Company's financial
         condition and results of operations and is intended to assist in
         understanding and evaluating major changes in the Company's financial
         position and earnings.

                  In addition to historical information, this discussion and
         analysis contains forward-looking statements. The forward-looking
         statements contained herein are subject to certain risks and
         uncertainties that could cause actual results to differ materially from
         those projected in the forward-looking statements. Readers are
         cautioned not to place undue reliance on these forward-looking
         statements, which reflect management's analysis only as of the date
         hereof. The Company undertakes no obligation to publicly revise or
         update these forward-looking statements to reflect events or
         circumstances that arise after the date hereof.

RESULTS OF OPERATIONS- THREE MONTHS ENDED MARCH 31, 2006

                  Net sales for the three months ended March 31, 2006 were
         $1,226,396, an increase of 79.7% or $543,963 over the net sales of
         $682,433 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 three months ended March 2006, the
         Company received orders from three large food manufacturers and
         significant software maintenance renewals.

                  Cost of goods sold for the three months ended March 31, 2006
         was $107,826 or 8.8% of net sales compared to $88,962 or 13.0% of net
         sales for the same period in 2005. For the period ended March 31, 2006
         this represents a 4.2% 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 79.7% increase in sales during the three months
         ended March 31, 2006 compared to the same period in 2005. The increase

                                       8
<PAGE>

         in sales during the period came primarily from MES software and
         services, which do not have the same associated cost of goods as our
         DNC products.

                  Gross profit for the three months ended March 31, 2006 was
         $1,118,570, compared to $593,471 for the same period of 2005, an
         increase of $525,099 or 88.5%. This increase is consistent with the
         increase in net sales.

                  Selling, general and administrative expenses for the three
         months ended March 31, 2006 were $597,965 or 48.8% of net sales of
         which $75,600 of the $132,300 of total stock based compensation cost
         was expensed as the result of options issued and vested during the
         period, compared to $423,281 or 62.0% of net sales with no stock
         options expensed over the same period in 2005. The overall decrease in
         selling, general and administrative expenses as percentage of net sales
         is 13.2% in the three months ending March 31, 2006 over the same period
         in 2005. This is primarily attributable to the 79.7% increase in sales
         and only a 41.3% increase in selling, general and administrative
         expenses in the three months ending March 31, 2006 over the same period
         in 2005. The increase in selling, general and administrative expenses
         during the three months ended March 31, 2006 is attributable to an
         increase in sales commissions due to higher sales during the period,
         and an increase in marketing and sales travel to meet the growing
         demand in prospect opportunities.

                  During the three months ended March 31, 2006, research and
         development costs were $552,217 or 45.0% of net sales of which $56,700
         of the $132,300 of total stock based compensation cost was expensed as
         the result of options issued and vested during the period, compared to
         $293,578 or 43% of net sales with no stock options expensed over the
         same period in 2005, an increase of $258,639 or 88.1%. This increase is
         due to the employment of additional developers and software engineers
         in the fourth quarter of 2005 and the three month period ended March
         31, 2006, to support the demands of increased current and expected
         future orders.

                  Loss from operations for the three months ended March 31, 2006
         was ($31,612) including SFAS 123(R) recognition of $132,300 expense for
         stock options granted during the period, compared to a loss of
         ($123,388) in the same period in 2005, an improvement of $91,776 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 three months ended March
         31, 2006 compared to the same period in 2005.

                  Net interest expense for the three months ended March 31, 2006
         was $13,940 or 1.1% of net sales, compared to net interest expense of
         $9,623 or 1.4% of net sales for the same period of 2005. This $4,317
         increase is attributable to the rise in prime rate used to calculate
         the interest paid both on the outstanding line of credit and on the
         demand note payable to an officer/director during the first three
         months of 2006. The Company decreased the utilization of its credit
         line by $27,000 in the three months ended March 31, 2006 compared to
         the same period in 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 three months ended
         March 31, 2005. The Company will continue to evaluate its expected
         profitability, if any, to determine the realizability of its deferred
         income tax in future periods.

                  The net income for the three months ended March 31, 2006 was
         $253,633 or $0.03 per basic and diluted share as compared to a net loss
         of ($133,011) or ($0.02) per basic and diluted share for the same
         period in 2005. The net income of $253,633 comprised $86,748 in

                                       9
<PAGE>

         operating income for the three months ended March 31, 2006, less stock
         options expensed for the period of $132,300, plus the reversal of
         $299,185 in valuation allowance. This increase of $386,644 in net
         income in the three months ended March 31,2006 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.

LIQUIDITY AND CAPITAL RESOURCES

                  At period ended March 31, 2006, the Company had current assets
         of $1,455,060 as compared to $1,216,369 at period ended December 31,
         2005, an increase of $238,691 or 19.6%. At period ended December 31,
         2005 accounts receivable was $869,492 compared to $312,924 at period
         ended December 31, 2004, The Company collected $851,000 more in cash
         during the three months ended March 31, 2006 over the same period in
         2005. Cash collected was used to pay down its bank line of credit,
         while supporting increased general operating expenses. The increase in
         total 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 three months
         ended March 31, 2006 was $228,895 compared to $207,788 of cash used in
         operating activities during the same period in 2005. The increase in
         net cash provided by operations in the three months ended March 31,
         2006 was due primarily to the increase in income, the collection of
         accounts receivable that were outstanding at December 31, 2005, and an
         increase in deferred income.

INVESTING ACTIVITIES

                  Cash used in investing activities was $17,270 and $2,500 for
         the three months ended March 31, 2006 and 2005, respectively. This
         change is due to the purchase of computers, software and office
         equipment.

FINANCING ACTIVITIES

                  During the first three months of 2006, $193,403 was used in
         financing activities as opposed to $156,524 in cash provided by
         financing activities during the three months ended March 31, 2005. This
         increase in cash used in financing activities is due to $188,000 in
         payments made to the line of credit in the three months ended March 31,
         2006 compared to $158,932 of borrowings from the line of credit during
         the same period in 2005.

CAPITAL RESOURCES

                  The Company has a $750,000 line of credit with a bank.
         Interest is payable monthly at the bank's prime interest rate plus
         1.75%. The balance of outstanding borrowings was $473,000 and $500,000
         at March 31, 2006 and 2005, respectively. The line of credit is subject
         to annual renewal on April 30, 2006, at which time the availability of
         the line is scheduled to decrease to $500,000. The line of credit is
         collateralized by a first lien security interest in all business assets
         and an unlimited personal guarantee of our Chairman and CEO. This line
         includes a financial covenant that requires the Company to maintain a
         certain tangible net worth. The Company was not in compliance with this
         covenant at December 31, 2005. However, a waiver was obtained from the
         bank on March 30, 2006. As of March 31, 2006, the Company had $277,000
         available on its line of credit. The Company is in negotiations with
         the bank to extend the maturity of its line of credit. The Company
         believes that the line of credit will be extended, however there can be
         no assurance of success.

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<PAGE>

                  In July 2004, the Company entered into a Revolving Credit
         Agreement with Sundaresh Ramayya, a director of the Company, pursuant
         to which Mr. Ramayya agreed to lend to the Company up to $2 million,
         but not more than $150,000 under any borrowing request submitted by the
         Company. The Company agreed to pay interest on any outstanding amount
         at a rate of 4% per annum, payable quarterly, and the outstanding
         principal amount was to be due and payable on the maturity date which
         was on the second anniversary of the Agreement (unless accelerated upon
         an event of default). However, Mr. Ramayya had the right to terminate
         the Revolving Credit Agreement upon 15 days prior written notice to the
         Company at which time the obligation of Mr. Ramayya to lend to the
         Company would terminate. As of August 10, 2005, the Company and Mr.
         Ramayya terminated the Revolving Credit Agreement. At that time there
         was no outstanding balance thereunder. There were no fees or expenses
         paid by the Company in connection with the execution or termination of
         the Revolving Credit Agreement.

                  In December 2004, the Company borrowed $130,000 from an
         officer/director and issued to him a demand note. The secured demand
         note is payable upon demand from the officer/director and bears
         interest at the prime rate plus 1%. Monthly interest payments are made
         based on the prime rate for the period. In April 2005 and 2006, the
         Company repaid $20,000 and $23,000, respectively, of the outstanding
         principal amount of this loan reducing the outstanding balance to
         $87,000 as of April 11, 2006. This note is subordinated to the
         Company's line of credit with its bank lender. The Company anticipates
         repaying the Note in full in 2006.

                  The Company has no material commitments for capital
         expenditures at March 31, 2006 and believes that its cash from
         operations, existing balances and available credit lines will be
         sufficient to satisfy the needs of its operations and its capital
         commitments for the near future.

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 March 31, 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 March
         31, 2006 that has materially affected, or is reasonably likely to
         materially affect, our internal controls over financial reporting.

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<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 - CHANGES IN 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.

         b.       Reports on Form 8-K.

                  None


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<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:      May 15, 2006
            Robesonia, Pennsylvania

                                       CIMNET, INC.


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

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