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

                                   FORM 10-QSB

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

                  For the quarterly period ended June 30, 2001


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

              For transition period from __________ to ____________


                        Commission file number 000-30244


                                 CYCO.NET, INC.
                 (Name of small business issuer in its charter)


                    Nevada                                      13-3389415
(State or other jurisdiction of incorporation)          (IRS Employer ID Number)


4201 Yale Boulevard, NE Suite G, Albuquerque, NM                  87107
    (Address of principal executive offices)                    (Zip code)


                    Issuer's telephone number (505) 344-9643


Check whether the registrant (1) filed all reports required to be filed by
Section 13 or 15 (d) of the Securities and Exchange Act of 1934 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 [ ]

The number of shares of Common Stock outstanding as of August 8, 2001 was
25,946,419.
<PAGE>
                                  CYCO.NET, INC.
                                   FORM 10-QSB

                                      INDEX


PART I FINANCIAL INFORMATION

     Consolidated Balance Sheets                                               2

     Consolidated Statement of Operations                                      3

     Consolidated Statement of Cash Flows                                      4

     Notes to Consolidated Financial Statements                                5

     Management's Discussion and Analysis of Financial
      Condition and Results of Operations                                      6


PART II OTHER INFORMATION

     Legal Proceedings                                                         8

     Changes in Securities and Use of Proceeds                                 8

     Defaults Upon Senior Securities                                           8

     Submission of Matters to a Vote of Security Holders                       8

     Other Information                                                         8

     Exhibits and Reports on Form 8-K                                          8

     Signatures                                                                9
<PAGE>
                                  CYCO.NET, INC.
                           CONSOLIDATED BALANCE SHEET
                                  June 30, 2001
                                   (unaudited)

ASSETS
Current Assets:
  Cash                                                                $   8,757
  Receivables                                                            51,868
  Inventory                                                               4,449
  Prepaid expenses                                                        1,905
                                                                      ---------
     Total Current Assets                                                66,979
                                                                      ---------
Property and Equipment, net of accumulated depreciation of $727           4,997
                                                                      ---------
Other Assets:
  Intangible asset, net of accumulated amortization of $15,460           31,540
  Other receivables - related party                                      25,707
                                                                      ---------
     Total Assets                                                     $ 129,223
                                                                      =========

LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Current Liabilities:
  Accounts payable and accrued expenses                               $ 158,383
  Due to related parties                                                  2,000
                                                                      ---------
     Total Current Laibilities                                          160,383
                                                                      ---------
Stockholders' (Deficit)
Common Stock, $0.001 par value, 30,000,000 shares authorized,
 25,946,419 issued and outstanding                                       25,946
Additional paid in capital                                              418,859
Accumulated (deficit)                                                  (475,965)
                                                                      ---------
     Total Stockholders' (Deficit)                                      (31,160)
                                                                      ---------

     Total Liabilities and Stockholders' (Deficit)                    $ 129,223
                                                                      =========

    The accompanying notes are an integral part of the financial statements.

                                        2
<PAGE>
                                  CYCO.NET, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                            Three months ended June 30,      Six months ended June 30,
                                                            ----------------------------    ----------------------------
                                                                2001            2000            2001            2000
                                                            ------------    ------------    ------------    ------------
<S>                                                         <C>             <C>             <C>             <C>
Revenues                                                    $  1,046,216    $    555,744    $  1,979,862    $    652,029
Operating expenses:
  Cost of sales                                                  957,302         493,602       1,817,793         578,091
  General and administrative expenses                            120,828          59,027         279,389          90,216
                                                            ------------    ------------    ------------    ------------
        Total operating expenses                               1,078,130         552,629       2,097,182         668,307

Income (loss) from operations                                    (31,914)          3,115        (117,320)        (16,278)

Other income and (expense)
  Interest expense                                                    (8)             --             (14)             --
                                                            ------------    ------------    ------------    ------------

Net income (loss)                                                (31,922)          3,115        (117,334)        (16,278)

Other comprehensive income:
  Unrealized gain(loss) on available for sale securities              --         (32,812)             --          21,876
                                                            ------------    ------------    ------------    ------------
Comprehensive income(loss)                                  $    (31,922)   $    (29,697)   $   (117,334)   $      5,598
                                                            ============    ============    ============    ============

Per share information:
Net income (loss) per common share-basic and diluted        $      (0.00)   $      (0.00)   $      (0.00)   $       0.00
                                                            ============    ============    ============    ============

Weighted average shares outstanding-basic and diluted         25,946,419      20,293,752      25,261,336      20,219,210
                                                            ============    ============    ============    ============
</TABLE>

    The accompanying notes are an integral part of the financial statements.

                                        3
<PAGE>
                                  CYCO.NET, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                        Six months ended June 30,
                                                                       ---------------------------
                                                                         2001               2000
                                                                       --------           --------
<S>                                                                    <C>                <C>
Operating activities
Net cash provided by (used in) operating activities                    $(20,243)          $  5,656
                                                                       --------           --------
Investing activities
  Acquisition of fixed assets                                            (2,125)                --
  Acquisition of intangible assets                                      (12,000)                --
                                                                       --------           --------
Net cash (used in) investing activities                                 (14,125)                --
                                                                       --------           --------
Financing activities
  Proceeds from stock issuance                                               --             32,000
  Payment of subscription and account receivable for stock                   --             15,000
  Increase in amounts due to related party                               (1,713)             7,482
                                                                       --------           --------
Net cash provided by (used in) financing activities                      (1,713)            54,482
                                                                       --------           --------

Net increase (decrease) in cash                                         (36,081)            60,138
Beginning cash balance                                                   44,838             10,737
                                                                       --------           --------

Ending cash balance                                                    $  8,757           $ 70,875
                                                                       ========           ========
Supplemental cash flow information:
Cash paid for income taxes                                             $     --           $     --
                                                                       ========           ========
Cash paid for interest                                                 $     14           $     --
                                                                       ========           ========
Supplemental Disclosure of Significant Non-Cash
Financing and Investing Activities
  Common stock issued in exchange for web site enhancements            $ 10,000           $     --
                                                                       ========           ========
  Unrealized gain on available for sale securities                     $     --           $ 21,876
                                                                       ========           ========
</TABLE>

    The accompanying notes are an integral part of the financial statements.

                                        4
<PAGE>
                          CYCO.NET, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2001
                                   (UNAUDITED)


(1) BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States
of America ("GAAP") for interim financial information and Item 310(b) of
Regulation S-B. They do not include all of the information and footnotes
required by GAAP for complete financial statements. In the opinion of
management, all adjustments (consisting only of normal recurring adjustments)
considered necessary for a fair presentation have been included. The results of
operations for the periods presented are not necessarily indicative of the
results to be expected for the full year. For further information, refer to the
audited financial statements of the Company as of December 31, 2000 and for the
two years then ended, including notes thereto, included in the Company's Form
10-KSB.

The accompanying consolidated financial statements include the accounts of the
Company and its subsidiary. Intercompany transactions and balances have been
eliminated in consolidation.

(2) EARNINGS PER SHARE

The Company calculates net income (loss) per share as required by SFAS No. 128,
"Earnings per Share." Basic earnings (loss) per share is calculated by dividing
net income (loss) by the weighted average number of common shares outstanding
for the period. Diluted earnings (loss) per share is calculated by dividing net
income (loss) by the weighted average number of common shares and dilutive
common stock equivalents outstanding. During the periods presented, common stock
equivalents were not considered as their effect would be anti-dilutive.

(3) STOCKHOLDERS' (DEFICIT)

During the six months ended June 30, 2001 the Company had the following equity
transactions, all of which were valued at the fair market value of the common
stock on the date of the transaction:

     *    The Company issued 3,500,000 shares of their $0.001 par value common
          stock valued at $70,000 to two members of their management team.

     *    The Company issued 500,000 shares of their $0.001 par value common
          stock valued at $10,000 as compensation to one of their officers for
          enhancements made to their website.

                                        5
<PAGE>
                                 CYCO.NET, INC.

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS


RESULTS OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2001 COMPARED WITH THE THREE MONTHS
ENDED JUNE 30, 2000

Revenues for the three months ended June 30, 2001 were $1,046,216 as compared to
$555,744 in the same period last year. The increase is due primarily to
word-of-mouth advertising as the Company has spent very little on other forms of
advertising.

Cost of goods sold were $957,302 or 91.5% of revenues for the three months ended
June 30, 2001, as compared to $493,602 or 88.8% of revenues for the three months
ended June 30, 2000. The increase in the cost of goods sold, expressed as a
percent of revenues, was due to increased shipping costs and product costs which
could not be completely passed on to the customer if the Company was to stay
competitive in the market place.

General and administrative expenses for the second quarter ended June 30, 2001
were $120,828 or 11.5% of revenues as compared to $59,027 or 10.6% of revenues
for the second quarter last year. General and administrative expenses expressed
as a percentage of revenues has increased slightly.

The Company had a net loss for the period ended June 30, 2001 of $31,922
compared to net income of $3,115 for the same period last year.

For the three months ended June 30, 2000, the Company had an unrealized loss on
available for sale securities of $32,812 producing a comprehensive loss of
$29,697.

SIX MONTHS ENDED JUNE 30, 2001 COMPARED WITH THE SIX MONTHS ENDED JUNE 30, 2000

Revenues for the six months ended June 30, 2001 were $1,979,862 as compared to
$652,029 in the same period last year. We have had an increase in revenues each
quarter since the Company commenced operations January 1, 2000.

Cost of goods sold were $1,817,793 or 91.8% of revenues for the six months ended
June 30, 2001, as compared to $578,091 or 88.7% of revenues for the six months
ended June 30, 2000. The increase in the cost of goods sold, expressed as a
percent of revenues, was due to increased shipping costs and product costs which
could not be completely passed on to the customer if the Company was to stay
competitive in the market place.

General and administrative expenses for the six months ended June 30, 2001 were
$279,389 or 14.1% of revenues as compared to $90,216 or 13.8% of revenues for
the same period last year. General and administrative expenses expressed as a
percentage of revenues has increased slightly. We hope to keep general and
administrative costs down.

                                        6
<PAGE>
The Company had net losses for the six month periods ended June 30, 2001 and
2000 of $117,334 and $16,278.

For the six months ended June 30, 2000, the Company had an unrealized gain on
available for sale securities of $21,876 producing comprehensive income of
$5,598.

FINANCIAL RESOURCES AND LIQUIDITY

Cash used in operations for the six months ended June 30, 2001 was $20,243. Cash
used in investing activities was $14,125, cash used in financing activities was
$1,713 and the net decrease in cash for the six months ended June 30, 2001, was
$36,081. Cash provided by operating activities was $5,656 and cash provided from
financing activities was $54,482, producing a net increase in cash for the six
months ended June 30, 2000 of $60,138.

Prior to the fourth quarter of 2000, the Company was able to meet its cash
requirements partially from the sale of cigarettes, with the balance of cash
needs being met with the sales of stock pursuant to Rule 504. During the fourth
quarter of 2000 and the first half of this year, the Company was able to meet
its cash needs solely through the sales of cigarettes. Although we are operating
at a negative cash flow, we believe that revenue will increase to a volume at
which operating expenses are covered and a net profit can be made. The Company
expects to require substantial working capital to fund growth of the business to
its potential. The May Davis line of credit may be available in the near future,
however Management is seeking other financing options as well.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

In connection with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 (the "Reform Act"), the Company is hereby
providing cautionary statements identifying important factors that could cause
the Company's actual results to differ materially from those projected in
forward-looking statements (as such term is defined in the Reform Act) made by
or on behalf of the Company herein or orally, whether in presentations, beliefs,
plans, objectives, assumptions or future events or performance (often, but not
always, through the use of words or phrases such as "will result", "are expected
to ", "will continue", "is anticipated", "estimated", "projected", and
"outlook") are not historical facts and may be forward-looking and, accordingly,
such statements involve estimates, assumptions, and uncertainties which could
cause actual results to differ materially from those expressed in the
forward-looking statements. Such uncertainties include, among others, the
following: (i) the Company's ability to obtain additional financing to implement
its business strategy; (ii) the financial condition of the Company's clients;
(iii) imposition of new regulatory requirements affecting the Company; (iv) a
downturn in general or local economic conditions; (v) the delay or failure to
properly manage growth and successfully integrate acquired companies and
operations; (vi) other factors which are described in further detail in the
Company's filings with the Securities and Exchange Commission.

                                        7
<PAGE>
The Company cautions that actual results or outcomes could differ materially
from those expressed in any forward-looking statements made by or on behalf of
the Company. Any forward-looking statement speaks only as of the date on which
such statement is made, and the Company undertakes no obligation to update any
forward-looking statement or statements to reflect events or circumstances after
the date on which such statement is made or to reflect the occurrence of
unanticipated events. New factors emerge from time to time, and it is not
possible for management to predict all of such factors. Further, management
cannot assess the impact of each such factor on the business or the extent to
which any factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.

PART II

ITEM 1. LEGAL PROCEEDINGS

     None

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

     During the quarter ended June 30, 2001 the Company had the following equity
transactions, all of which were valued at the fair market value of the common
stock on the date of the transaction:

     *    The Company issued 3,500,000 shares of their $0.001 par value common
          stock valued at $70,000 to two members of their management team.

     *    The Company issued 500,000 shares of their $0.001 par value common
          stock valued at $10,000 as compensation to one of their officers for
          enhancements made to their website.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

     None

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

     None

ITEM 5. OTHER INFORMATION

     None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     a) Exhibits

          None

     b) There were no reports on Form 8-K filed under the Securities Exchange
Act of 1934 during the quarter ended June 30, 2001.

                                        8
<PAGE>
                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  Report  to be  signed  in its  behalf by the
undersigned, thereunto duly authorized.

                                 CYCO.NET, INC.


By: /s/ Richard A. Urrea                                         August 9, 2001
    -------------------------                                    --------------
    Richard A. Urrea                                                  Date
    President


By: /s/ Daniel Urrea                                             August 9, 2001
    -------------------------                                    --------------
    Daniel Urrea                                                      Date
    Chief Financial Officer

                                        9