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 September 30, 2003



[ ] 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)



  5458 Osuna Road, NE Albuquerque, NM                           87109
(Address of principal executive offices)                     (Zip code)

                    Issuer's telephone number (505) 710-2190




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. [x]Yes [ ] No



The number of shares of Common  Stock  outstanding  as of November  14, 2003 was
34,715,931.

<PAGE>
                                 CYCO.NET, INC.
                                   FORM 10-QSB
                                      INDEX
                               September 30, 2003


         PART   I  FINANCIAL INFORMATION


         Consolidated Balance Sheet (unaudited)                               2

         Consolidated Statements of Operations (unaudited)                    3

         Consolidated Statements of Cash Flows (unaudited)                    4

         Notes to Consolidated Financial Statements (unaudited)               5

         Management's Discussion and Analysis of Financial
            Condition and Results of Operations                               7




         PART   II  OTHER INFORMATION

         Legal Proceedings
                                                                              9

         Changes in Securities and Use of Proceeds                            10

         Controls and Procedures                                              10

         Defaults Upon Senior Securities                                      10

         Submission of Matters to a Vote of Security Holders                  10

         Other Information                                                    10

         Exhibits and Reports on Form 8-K                                     10

<PAGE>


                                 CYCO.NET, INC.
                           CONSOLIDATED BALANCE SHEET
                                  (unaudited)
                               September 30, 2003

                                     ASSETS
CURRENT ASSETS
  Cash                                        $     2,062
  Receivable - ACC                                169,340
  Due from ACC                                        664
                                              ------------
     Total current assets                         172,066
                                              ------------

PROPERTY AND EQUIPMENT, net of
  accumulated depreciation of $1536                 1,734
                                              ------------

OTHER ASSETS
   Deposit                                          1,905
                                              ------------

                                              $   175,705
                                              ============

                    LIABILITIES AND STOCKHOLDERS' (DEFICIT)
CURRENT LIABILITIES
  Accounts payable and accrued expenses       $   195,458
  Accounts payable - related party                  8,990
  Deferred gain                                   152,229
                                              ------------
     Total current liabilities                    356,677
                                              ------------

STOCKHOLDERS' (DEFICIT)
   Common Stock, $0.001 par value,
     100,000,000 shares authorized,
      34,715,931 issued and outstanding            34,716
   Additional paid in capital                   3,470,536
   Stock subscription receivable               (2,800,000)
   Accumulated (deficit)                         (886,224)
                                              ------------
                                                 (180,972)
                                              ------------

                                              $   175,705
                                              ============


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

                                        2

<PAGE>
<TABLE>

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

                                              Three Months Ended September 30,   Nine Months Ended September 30,
                                              -------------------------------    -------------------------------
                                                  2003             2002              2003             2002
<S>                                           <C>              <C>               <C>              <C>
Revenues                                      $           -    $           -     $           -    $           -
                                              --------------   --------------    --------------   --------------

General and administrative expenses                  37,275          273,267           319,584          463,691
                                              --------------   --------------    --------------   --------------
(Loss) from operations                              (37,275)        (273,267)         (319,584)        (463,691)
                                              --------------   --------------    --------------   --------------

Other income (expense)
Interest income                                       2,358                -             2,358                -
Interest (expense)                                        -             (629)                -             (827)
Gain on sale of assets of discontinued
  operations                                         24,309                -            24,309                -
                                              --------------   --------------    --------------   --------------

Net (loss) before income taxes                      (10,608)        (273,896)         (292,917)        (464,518)

Income taxes                                              -           47,000            97,000          118,000
                                              --------------   --------------    --------------   --------------
Loss before discontinued operations                 (10,608)        (320,896)         (389,917)        (582,518)

Discontinued operations
Net income from operations of discontinued
 operations, net of income taxes of $0, $47,000,
 $97,000 and $118,000, respectively                       -          167,680           346,405          420,028
                                              --------------   --------------    --------------   --------------

Net (loss)                                    $     (10,608)   $    (153,216)    $     (43,512)   $    (162,490)
                                              ==============   ==============    ==============   ==============

Weighted average shares
  outstanding (basic and diluted)                34,715,931       29,811,636        32,847,029       27,613,635
                                              ==============   ==============    ==============   ==============

Net income (loss) per common share
 (Loss) from operations                       $           -    $       (0.01)    $       (0.01)   $       (0.02)
 Income from discontinued operations                      -             0.01              0.01             0.02
                                              --------------   --------------    --------------   --------------

                                              $           -    $       (0.00)    $        0.00    $       (0.00)
                                              ==============   ==============    ==============   ==============


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

</TABLE>
                                        3

<PAGE>
<TABLE>
<CAPTION>
                                                                         CYCO.NET, INC.
                                                              CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                           (unaudited)
                                                                        Nine months ended
                                                                          September 30,
                                                                --------------------------------
                                                                     2003             2002
                                                                ---------------  ---------------
<S>                                                             <C>              <C>
Cash flows from operating actvities:
Net cash provided by (used in) operating activities             $      (84,217)  $       12,110
                                                                ---------------  ---------------

Cash flows from investing activities:
   Acquisition of intangible assets                                          -          (14,000)
  ( Acquisition) disposal of property and equipment                     76,295           (3,329)
                                                                ---------------  ---------------
          Net cash provided by (used in) investing activities           76,295          (17,329)
                                                                ---------------  ---------------

Cash flows from financing activities:
  Proceeds fom sale of common stock                                      4,349                -
                                                                ---------------  ---------------
          Net cash provided by financing activities                      4,349                -
                                                                ---------------  ---------------

          Net (decrease) in cash                                        (3,573)          (5,219)
Beginning cash balance                                                   5,635            5,219
                                                                ---------------  ---------------

Ending cash balance                                             $        2,062   $           -
                                                                ===============  ===============


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

</TABLE>

                                        4
<PAGE>
                                 CYCO.NET, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)
                               SEPTEMBER 30, 2003

(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, 2002 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) RECLASSIFICATIONS

Certain  amounts  from the  three  and nine  months  ended  September  30,  2002
financial  statements  have been  reclassified  to  conform  to  current  period
presentation.

(3) GOING CONCERN

The Company's financial statements are presented on a going concern basis, which
contemplates  the  realization of assets and  satisfaction of liabilities in the
normal course of business.

The Company has experienced losses from operations as a result of its investment
necessary to achieve its operating plan, which is long-range in nature.  For the
year ended  December 31, 2002 and the nine months ended  September 30, 2003, the
Company  incurred net (losses) of $325,593 and $43,512.  At September  30, 2003,
the Company  had a working  capital  (deficit)  of  $184,611  and  stockholders'
(deficit) of $180,972.  The Company's  ability to continue as a going concern is
contingent  upon  its  ability  to  secure   financing  and  attain   profitable
operations.  As disclosed in Note 6 and 8, the Company sold its Internet tobacco
products  division  effective July 1, 2003.  The Company is currently  seeking a
viable  business  to merge with and, in  addition,  is seeking  equity  capital.
However,  the Company  has no  commitment  from any party to provide  additional
capital and there is no  assurance  that such  funding  will be  available  when
needed, or if available,  that such terms will be favorable or acceptable to the
Company.

The financial  statements do not include any adjustments to reflect the possible
future effects on the recoverability and classification of assets or the amounts
and classification of liabilities that may result from the possible inability of
the Company to continue as a going concern.

(4) EARNINGS PER SHARE

The Company  calculates  net income (loss) per share as required by Statement of
Financial  Accounting  Standards 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.

 (5) STOCKHOLDERS' (DEFICIT)

On April 7, 2003 the Company  issued  1,219,512  shares of common stock under an
Equity Line of Credit. Net proceeds from the sale of stock were $4,349.


                                        5
<PAGE>

(6) DISCONTINUED OPERATIONS

Effective  July 1, 2003 the Company  reached an agreement to sell their Internet
tobacco  products  division  (See Note 8). The Company  agreed to dispose of the
division due to the lack of working  capital  required to resolve the litigation
as stated in Note 7.


Operating results of discontinued operations for the three and nine months ended
September 30, 2003 and 2002 are shown separately in the accompanying  statements
of  operations.  Net sales and net income from  discontinued  operations  are as
follows:

                          Three months ended         Nine months ended
                            September 30,              September 30,
                         2003        2002           2003         2002
                         ----        ----           ----         ----
       Net sales         $  __    $1,488,510     $ 2,873,065   $3,744,181
                         =====    ==========     ===========   ==========

       Net income       $   __    $  167,680     $   346,405   $  420,028
                         =====    ==========     ===========   ==========


Assets related to discontinued operations, which were included in the sale, were
as follows:

                        Inventory                                       $ 2,070
                        Property and equipment - net                      3,295
                        Intangible assets - net                          11,746
                                                                        -------
                        Net assets of discontinued operations           $17,111
                                                                        =======

(7) CONTINGENT LIABILITIES

On January 28, 2003, the Company's  subsidiary was named in a civil action filed
in the United States District Court Southern District of New York by the City of
New York as one of  approximately a dozen defendants who engaged in the business
of internet on-line cigarette sales. The suit alleges that the Company failed to
report the names and  addresses  of its  customers  to taxing  authorities.  The
extent of the City's damages is to be determined at trial.

On April 1, 2003,  the State of California  filed a civil action in the Superior
Court of  California,  County of San Diego,  against the  Company's  subsidiary,
alleging  sales of cigarettes to minors,  deceptive  failure to file Jenkins Act
reports  and inform  California  consumers  that they are  required to pay sales
taxes to California.  Based on these factual assertions, the suit's three counts
allege false or misleading  advertising under California Business and Profession
Code 17500:  failure to notify California  purchasers of their obligations under
California  Revenue and  Business  and  Professions  Code 17200.  The suit seeks
injunctive  relief  and  assessment  of  civil  penalties  of  $2,500  for  each
violation,  amounting to no less than $100,000,  plus costs and attorneys' fees.
The case has been  consolidated  with several  other pending suits against other
online tobacco retailers.

On April 1, 2003,  the State of Washington  filed a civil action in the State of
Washington, King County Superior Court against the Company's subsidiary alleging
sales of cigarettes to minors, deceptive failure to file Jenkins Act reports and
inform  Washington  consumers  that they are  required to pay sales taxes to the
State of  Washington.  Based on the factual  assertions,  the suit's four counts
allege   unfair   business   practice,   unfair  method  of   compensation   and
misrepresentation.  The suit seeks injunctive relief restraining Cyco.net,  Inc.
from  continuing  to engage in unlawful  conduct,  restitution  to consumers and
civil penalties of up to $2,000 per violation, plus attorneys' fees and costs.

On April 1,  2003,  the  State of  Oregon  filed a civil  action in the State of
Oregon,  Marion County against the Company's subsidiary alleging the sale of one
carton of  cigarettes  to a minor using her mother's  name and credit  card,  in
violation of State  Unlawful  Trade  Practices Act. The suit seeks to enjoin the
Company from doing business in Oregon, $25,000 and attorney's fees.

On July 10,  2003,  the State of  Vermont  filed a civil  action in the State of
Vermont, Chittenden County against the Company's subsidiary alleging the sale of
cigarettes to a minor,  deceptive failure to file Jenkins Act reports and inform
Vermont  consumers  that they are  required  to pay sales  taxes to the State of
Vermont.  The suit seeks to enjoin the Company  from doing  business in Vermont,
pay civil  penalties of up to $10,000 for each sale to a minor,  plus attorney's
fees and costs.

 In all five cases,  the Company intends to contest the allegations and believes
it has  meritorious  defenses  in each case.  It is  uncertain  what  affect the
Company's  sale of its  Internet  tobacco  products  will  have  on the  pending
lawsuits.  Outside counsel for the Company has advised that at this stage in the
proceedings  they  cannot  offer an  opinion as to the  probable  outcome of the
cases.

                                       6
<PAGE>

(8) SALE OF BUSINESS

Effective  on July 1,  2003 the  Company  agreed  to sell its  Internet  tobacco
products  business to American Indian CigCo, LLC (ACC). In conjunction with this
purchase ACC agreed to purchase  2,000,000 shares of the Company's common stock.
The  purchase  price  aggregated  $3,000,000  in the form of 2 notes  payable as
follows:


     o    Payment  for the assets of the  business  in the form of a note in the
          amount of $200,000 payable in 12 equal monthly installments of $16,667
          commencing on August 1, 2003.

     o    Payment for the  2,000,000  common  shares is payable in the form of a
          $2,800,000  note with  interest at 7% per annum,  on an interest  only
          basis. The interest  payments are due annually  commencing on July 31,
          2004  and the  principal  balance  is due on July  31,  2008.  Accrued
          interest   receivable  of  $49,000  has  not  been  reflected  in  the
          accompanying  financial  statements,  as  recognition  will  occur  as
          proceeds are received.

In addition,  ACC agreed to engage an entity  owned by both the Chief  Executive
Officer and Chief Financial Officer to provide certain  administrative  services
for a period of 5 years.

Because  the sale of the  business  and the common  shares were made to a thinly
capitalized   entity  and  significant   uncertainties   exist  related  to  the
collectibility  of the amounts due, the gain from the sale of the business  will
be deferred  until such time as the proceeds are collected or until such time as
the cash flows from the operating activities of the business sold are sufficient
to fund the debt  service.  The deferred  portion of the gain on the sale of the
business will be reflected as deferred revenue.

In  addition,  interest  income  from the  $2,800,000  note  receivable  will be
recognized as the proceeds are collected and the unpaid portion of the principal
balance will be recorded as a reduction of stockholders' equity.



                                CYCO. NET, INC.
          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                           AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Effective July 1, 2003,  Cyco.net,  Inc. sold its tobacco operations to American
Indian CigCo,  LLC (see Note 8). The Company's  management  felt it necessary to
dispose of the tobacco operations due to the lack of working capital required to
resolve the litigation as stated in Note 7. On a go forward basis, there will be
no revenues. The Company expects to receive $16,667 per month from the one year,
$200,000 note  receivable  and general and  administrative  expenses will be cut
accordingly.

Operating  results of  discontinued  operations  (Note 6) for the three and nine
months  ended  September  30,  2003  and  2002  are  shown   separately  in  the
accompanying statements of operations.


THREE  MONTHS  ENDED  SEPTEMBER  30, 2003  COMPARED  WITH THE THREE MONTHS ENDED
SEPTEMBER 30, 2002

General and  administrative  expenses for the quarter  ended  September 30, 2003
were $37,275,  which primarily consisted of payroll expense of $8,331, legal and
professional fees of $25,530,  rent expense of $1,314,  depreciation  expense of
$133 and miscellaneous  expense of $1,967.  General and administrative  expenses
for the quarter ended September 30, 2002 were $273,267.  The major components of
general and administrative  expenses were approximately  $13,180 in advertising,
$205,615 in payroll  expenses  (which  included the  non-cash  issuance of stock
valued at $150,000),  $20,727 in professional  fees,  $6,357 in rent,  $6,539 in
amortization and depreciation and $20,849 in miscellaneous other expenses.

The Company recognized $24,309 of the gain on discontinued operations during the
three months ended  September 30, 2003. The balance of the gain of $152,229 will
be recognized as the remaining  payments on the $200,000 current receivable from
American Indian Cigco have been received. As of September 30, 2003, the payments
received  from  American  Indian Cigco were  $26,667;  the total due was $33,335
resulting in a short fall of $6,668. American Indian Cigo's management indicated
that their funding had been delayed. Cyco.net's management believes the payments
will become current in the near future.

                                        7
<PAGE>

Net income  from  discontinued  operations(Note  6) for the three  months  ended
September  30,  2002,  were  $167,680.  There  was no income  from  discontinued
operations in the three months ended September 30, 2003.

The  Company had a net loss for the three  months  ended  September  30, 2003 of
$10,608 compared to a net loss of $153,216 for the same period last year.


NINE MONTHS  ENDED  SEPTEMBER  30,  2003  COMPARED  WITH THE NINE  MONTHS  ENDED
SEPTEMBER 30, 2002

General and administrative expenses for the nine months ended September 30, 2003
were $319,584, which primarily consisted of $10,060 in advertising,  $120,594 in
payroll expenses,  $115,932 in professional  fees,  $13,836 in rent,  $10,878 in
amortization and depreciation and $48,284 in miscellaneous other expenses.

General and administrative expenses for the nine months ended September 30, 2002
were $463,691. The major components of general and administrative  expenses were
approximately $21,466 in advertising,  $313,930 in payroll expenses (the Company
issued a total of 5,000,000  shares of restricted  common stock to its executive
officers and other employees as bonus compensation resulting in non-cash payroll
costs of approximately $150,000), $37,977 in professional fees, $19,561 in rent,
$21,801 in amortization  and  depreciation  and $48,956 in  miscellaneous  other
expenses.

The Company recognized $24,309 of the gain on discontinued operations during the
nine months ended  September  30, 2003. As discussed  above,  the balance of the
gain of $152,229  will be  recognized  as the payments on the  $200,000  current
receivable from American Indian Cigco have been received.

 Net income  from  discontinued  operations(Note  6) for the nine  months  ended
September 30, 2003 and 2002were $346,405 and $420,028.

The  Company  had a net loss for the nine  months  ended  September  30, 2003 of
$43,512 compared to a net loss of $162,490 for the same period last year.

FINANCIAL RESOURCES AND LIQUIDITY

For the nine months  ended  September  30,  2003,  cash used by  operations  was
$84,217 and cash provided by investing  activities was $76,295 and cash provided
by financing  activities was $4,349.  This resulted in a net decrease in cash of
$3,573 for the nine months ended September 30, 2003.

As disclosed in Note 6 and 8, the Company  sold its  Internet  tobacco  products
division effective July 1, 2003. The Company will receive $16,667 per month from
the   $200,000   note   receivable   and  expects  to  reduce  its  general  and
administrative  expenses  below  that  level in order to pay down the  Company's
current liabilities. In addition, interest income from the five year, $2,800,000
note  receivable  will be  recognized  as the proceeds are collected and will be
used to pay down the  Company's  current  liabilities.  The Company is currently
seeking a viable  business  to merge  with and,  in  addition,  will be  seeking
capital. Such capital is expected to come from the sale of securities, including
the sale of common stock under the Equity Line of Credit.

Pursuant to the Equity Line of Credit,  dated August 16, 2001,  Cyco.net may, at
its discretion for up to 2 years,  periodically  issue and sell up to 40,000,000
shares of common stock for a total purchase  price of $5.0 million.  If Cyco.net
requests an advance under the Equity Line of Credit,  Cornell Capital  Partners,
L.P.  will  purchase  shares of common  stock for 82% of the lowest  closing bid
price on the Over-the-Counter  Bulletin Board or other principal market on which
our common stock is traded for the 5 days immediately following the notice date.
Cornell Capital  Partners,  L.P.  intends to sell any shares purchased under the
Equity Line of Credit at the market price. The  effectiveness of the sale of the
shares under the Equity Line of Credit is conditioned upon Cyco.net  registering
the shares of common stock with the Securities and Exchange Commission. Cyco.net
filed a  Registration  Statement on Form SB-2 with the  Securities  and Exchange
Commission on September 13, 2001. The Registration Statement became effective on
July 19, 2002.  To date,  Cyco.net has not sold any shares of common stock under
the Equity Line of Credit.

                                        8
<PAGE>

FORWARD-LOOKING STATEMENTS

Information  included or  incorporated  by  reference in this filing may contain
forward-looking  statements.  This  information  may  involve  known and unknown
risks,  uncertainties  and other  factors  which may cause our  actual  results,
performance or achievements to be materially  different from the future results,
performance  or  achievements   expressed  or  implied  by  any  forward-looking
statements.  Forward-looking statements,  which involve assumptions and describe
our future plans, strategies and expectations, are generally identifiable by use
of the  words  "may",  "will",  "should",  "expect",  "anticipate",  "estimate",
"believe",  "intend",  or  "project",  or the  negative  of these words or other
variations on these words or comparable terminology.

This filing contains forward-looking statements, including statements regarding,
among other things,  (a) our projected sales and  profitability,  (b) our growth
strategies,  (c) anticipated  trends in our industry,  (d) our future  financing
plans and (e) our anticipated needs for working capital. These statements may be
found under  "Management's  Discussion and Analysis or Plan of  Operations"  and
"Business",  as well as in this filing  generally.  Actual events or results may
differ materially from those discussed in forward-looking statements as a result
of various  factors,  including,  without  limitation,  the risks outlined under
"Risk Factors" and matters described in this filing generally. In light of these
risks and  uncertainties,  there can be no  assurance  that the  forward-looking
statements contained in this filing will in fact occur.




                                     PART II


ITEM 1.  LEGAL PROCEEDINGS

On January 28, 2003,  the  Company's  subsidiary  Cyco.net,  Inc. was named in a
civil action filed in the United States District Court Southern  District of New
York by the  City of New York as one of  approximately  a dozen  defendants  who
engaged in the business of internet  on-line  cigarette sales. The suite alleges
that Cyco.net, Inc. failed to report the names and addresses of its customers to
taxing  authorities.  The extent of the City's  damages are to be  determined at
trial.

On April 1, 2003,  the State of California  filed a civil action in the Superior
Court of  California,  County of San Diego,  against  the  Company's  subsidiary
Cyco.net, Inc, alleging sales of cigarettes to minors, deceptive failure to file
Jenkins Act reports and inform  California  consumers  that they are required to
pay sales taxes to  California  Based on these  factual  assertions,  the suit's
three counts allege false or misleading  advertising  under California  Business
and  Profession  Code 17500:  failure to notify  California  purchasers of their
obligations  under  California  Revenue and Business and Professions Code 17200.
The suit seeks injunctive relief and assessment of civil penalties of $2,500 for
each violation , amounting to no less than  $100,000,  plus costs and attorneys'
fees.

On April 1, 2003,  the State of Washington  filed a civil action in the State of
Washington,   King  County  Superior  Court  against  the  Company's  subsidiary
Cyco.net, Inc. alleging sales of cigarettes to minors, deceptive failure to file
Jenkins Act reports and inform  Washington  consumers  that they are required to
pay sales taxes to the State of Washington. Based on the factual assertions, the
suit's  four  counts  allege  unfair   business   practice,   unfair  method  of
compensation and misrepresentation. The suit seeks injunctive relief restraining
Cyco.net,  Inc. from  continuing to engage in unlawful  conduct,  restitution to
consumers and civil  penalties of up to $2,000 per  violation,  plus  attorneys'
fees and costs.

On April 1,  2003,  the  State of  Oregon  filed a civil  action in the State of
Oregon,  Marion County against the Company's subsidiary Cyco.net,  Inc. alleging
the sale of one carton of  cigarettes  to a minor  using her  mother's  name and
credit card, in violation of State Unlawful Trade  Practices Act. The suit seeks
to enjoin Cyco.net,  Inc. from doing business in Oregon,  $25,000 and attorney's
fees.

On July 10,  2003,  the State of  Vermont  filed a civil  action in the State of
Vermont, Chittenden County against the Company's subsidiary alleging the sale of
cigarettes to a minor,  deceptive failure to file Jenkins Act reports and inform
Vermont  consumers  that they are  required  to pay sales  taxes to the State of
Vermont.  The suit seeks to enjoin the Company  from doing  business in Vermont,
pay civil  penalties of up to $10,000 for each sale to a minor,  plus attorney's
fees and costs.

In all five cases,  the Company  intends to contest the allegations and believes
it has  meritorious  defenses in each case.  Outside counsel for the Company has
been hired and has  advised the  Company  that at this stage in the  proceedings
they cannot offer an opinion as to the probable outcome of the cases.

                                        9
<PAGE>

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

On March 4, 2003,  Cyco.net  requested a draw on the Equity  Line of Credit.  On
April 7, 2003,  a total  1,219,512  shares of Cyco.net  common  shares were sold
under the Equity Line of Credit.  The Company received net proceeds on this sale
of $4,349.

ITEM 3.  CONTROLS AND PROCEDURES

(a)   EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES:
Within 90 days prior to the date of this Report,  we carried out an  evaluation,
under the supervision and with the  participation of our Chief Executive Officer
and Chief Financial Officer, of the effectiveness of the design and operation of
our disclosure  controls and  procedures.  Based on this  evaluation,  our Chief
Executive  Officer and Chief  Financial  Officer  concluded  that our disclosure
controls  and  procedures  are  effective  in timely  alerting  them to material
information  required to be included in our periodic reports that are filed with
the  Securities and Exchange  Commission.  It should be noted that the design of
any  system of  controls  is based in part upon  certain  assumptions  about the
likelihood of future events,  and there can be no assurance that any design will
succeed in achieving  its stated goals under all  potential  future  conditions,
regardless of how remote. In addition,  we reviewed our internal  controls,  and
there have been no  significant  changes in our  internal  controls  or in other
factors that could significantly affect those controls subsequent to the date of
their last valuation.

(b)   CHANGES IN INTERNAL CONTROLS:
There were no significant changes in the Company's internal controls or in other
factors that could significantly affect these controls during the period covered
by this report or from the end of the reporting  period to the date of this Form
10-QSB.


ITEM 4.  DEFAULTS UPON SENIOR SECURITIES

         None


ITEM 5.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         None


ITEM 6.  OTHER INFORMATION

         None


<TABLE>
<CAPTION>
ITEM 7.  EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
================================================================================
EXHIBIT NO.    DESCRIPTION                            LOCATION
================================================================================

<S>            <C>                                    <C>
2.1            Acquisition Agreement between Ave and  Incorporated by reference to
               DMI                                    Exhibit 2.1 to  the Company's
                                                      Annual Report on Form  10-KSB
                                                      as filed with the Securities
                                                      and Exchange Commission on
                                                      April 16, 2001

2.2            Letter of Intent between Ave and       Incorporated by reference to
               Cyco.net dated July 9, 1999            Exhibit 2.2 to the Company's
                                                      Annual Report on Form 10-KSB
                                                      as filed with the Securities
                                                      and Exchange Commission on
                                                      April 16, 2001

4.1            Stock Specimen                         Incorporated by reference to
                                                      Exhibit 2.4 to the Company's
                                                      Annual Report on Form 10-KSB as
                                                      filed with the Securities and
                                                      Exchange Commission on April
                                                      16, 2001
                                       10

<PAGE>
================================================================================
EXHIBIT NO.    DESCRIPTION                            LOCATION
================================================================================

3.1            Certificate of Amendment to Change     Incorporated by reference to
               name to Ave, Inc. dated 5/7/90         Exhibit 2.7 to the Company's
                                                      Annual Report on Form 10-KSB as
                                                      filed with the Securities and
                                                      Exchange Commission on April
                                                      16, 2001

3.2            Certificate of Agreement of Merger of  Incorporated by reference to
               DeLuxe Onyx Company dated January 23,  Exhibit 2.8 to the Company's
               1987                                   Annual Report on Form 10-KSB as
                                                      filed with the Securities and
                                                      Exchange Commission on April
                                                      16, 2001

3.3            Certificate and Agreement of Merger    Incorporated by reference to
               of DeLuxe dated 1/23/87                Exhibit 2.9 to the Company's
                                                      Annual Report on Form 10-KSB as
                                                      filed with the Securities and
                                                      Exchange Commission on April
                                                      16, 2001

3.4            Certificate Amending Certificate of    Incorporated by reference to
               Incorporation dated January 23, 1987   Exhibit 2.10 to the Company's
                                                      Annual Report on Form 10-KSB as
                                                      filed with the Securities and
                                                      Exchange Commission on April
                                                      16, 2001

3.5            Ave, Inc. By Laws                      Incorporated by reference to
                                                      Exhibit 3.0 to the Company's
                                                      Annual Report on Form 10-KSB as
                                                      filed with the Securities and
                                                      Exchange Commission on April
                                                      16, 2001

3.6            Articles in Incorporation of           Incorporated by reference to
               Cyco.net, Inc. the Wholly Owned        Exhibit 21.1 to the Company's
               Subsidiary Cyco.net, Inc. (formerly    Annual Report on Form 10-KSB as
               Ave, Inc.)                             filed with the Securities and
                                                      Exchange Commission on April
                                                      16, 2001

3.7            Certificate of Amendment to Articles   Incorporated by reference to
               of Cyco.net, Inc. to change name from  Exhibit 21.2 to the Company's
               Ave, Inc. to Cyco.net, Inc.            Annual Report on Form 10-KSB as
                                                      filed with the Securities and
                                                      Exchange Commission on April
                                                      16, 2001

3.8            Certificate of Amendment of Cyco.net,  Incorporated by reference to
               Inc.                                   Exhibit 21.3 to the Company's
                                                      Annual Report on Form 10-KSB as
                                                      filed with the Securities and
                                                      Exchange Commission on April
                                                      16, 2001

3.9            By-Laws of Cyco.net, Inc.              Incorporated by reference to
                                                      Exhibit 21.5 to the Company's
                                                      Annual Report on Form 10-KSB as
                                                      filed with the Securities and
                                                      Exchange Commission on April
                                                      16, 2001

3.10           Articles of Amendment and Restatement  Incorporated by reference to
               to Articles of Incorporation of AVE,   Exhibit 3.10 to Cyco.net's
               Inc.                                   Registration Statement on
                                                      Form SB-2 filed with the
                                                      Securities and Exchange
                                                      Commission on September 13, 2001

                                       11
<PAGE>
================================================================================
EXHIBIT NO.    DESCRIPTION                            LOCATION
================================================================================

3.11           Certificate of Amendment to Articles   Incorporated by reference to
               of Incorporation of Cyco.net, Inc.     Exhibit 3.11 to Cyco.net's
               filed with Nevada Secretary of State   Registration Statement on
               on August 9, 2001                      Form SB-2 filed with the
                                                      Securities and Exchange
                                                      Commission on September 13, 2001

10.1           Line of Credit Agreement dated August  Incorporated by reference to
               9, 1999                                Exhibit 10.0 to the Company's
                                                      Annual Report on Form 10-KSB as
                                                      filed with the Securities and
                                                      Exchange Commission on April
                                                      16, 2001

10.2           Amendment to Line of Credit Agreement  Incorporated by reference to
               dated August 9, 1999                   Exhibit 10.1 to the Company's
                                                      Annual Report on Form 10-KSB as
                                                      filed with the Securities and
                                                      Exchange Commission on April
                                                      16, 2001

10.3           Promissory note from Cyco.net, Inc.    Incorporated by reference to
               to Francisco Urrea, Jr.                Exhibit 99 to the Company's
                                                      Annual Report on Form 10-KSB as
                                                      filed with the Securities and
                                                      Exchange Commission on April
                                                      16, 2001

10.4           May Davis Extension Agreement          Incorporated by reference to
                                                      Exhibit 99 to the Company's
                                                      Quarterly Report on Form 10-QSB
                                                      filed with the Securities and
                                                      Exchange Commission on January
                                                      4, 2001

10.5           R. Gene Klawetter Letter of            Incorporated by reference to
               Resignation                            Exhibit 99.2 to the Company's
                                                      8-K filed with the Securities
                                                      and Exchange Commission on
                                                      August 22, 2000

10.6           Lease Agreement                        Incorporated by reference to
                                                      Exhibit    99.3   to   the
                                                      Company's  8-K filed  with
                                                      the     Securities     and
                                                      Exchange   Commission   on
                                                      August 22, 2000

10.7           Equity Line of Credit Agreement dated  Incorporated by reference to
               as of August 2001 between Cyco.net     Exhibit 10.7 to the Company's
               and Cornell Capital Partners, L.P.     Annual Report on Form 10-QSB as
                                                      filed with the Securities and
                                                      Exchange Commission on November
                                                      13, 2001

10.8           Warrant dated as of August 2001 given  Incorporated by reference to
               by Cyco.net to Cornell Capital         Exhibit 10.8 to the Company's
               Partners, L.P.                         Annual Report on Form 10-QSB as
                                                      filed with the Securities and
                                                      Exchange Commission on November
                                                      13, 2001

10.9           Registration Rights Agreement dated    Incorporated by reference to
               August 2001 between Cyco.net and       Exhibit 10.9 to the Company's
               Cornell Capital Partners, L.P.         Annual Report on Form 10-QSB as
                                                      filed with the Securities and
                                                      Exchange Commission on November
                                                      13, 2001

10.10          Escrow Agreement dated as of August    Incorporated by reference to
               2001 among Cyco.net, Cornell Capital   Exhibit 10.10 to the Company's
               Partners, L.P., Butler Gonzalez LLP    Annual Report on Form 10-QSB as
               and First Union National Bank          filed with the Securities and
                                                      Exchange Commission on November
                                                      13, 2001
                                       12
<PAGE>
================================================================================
EXHIBIT NO.    DESCRIPTION                            LOCATION
================================================================================

10.11          Asset Purchase and Investment          Incorporated by reference to
               agreement dated June 13, 2003          Exhibit 10.11 to the Company's
               between Cyco.net, Inc. and             Quarterly Report on Form 10QSB
               American Indian Cigco, LLC             as filed with the Securities
                                                      and Exchange Commission on
                                                      August 19, 2003.

10.12          One Year Installment Note dated June   Incorporated by reference to
               13, 2003,between Cyco.net, Inc. and    Exhibit 10.12 to the Company's
               American Indian Cigco, LLC.            Quarterly Report on Form 10QSB
                                                      as filed with the Securities
                                                      and Exchange Commission on
                                                      August 19, 2003.

10.13          Five Year Capital Note dated June 13,  Incorporated by reference to
               2003, among Cyco.net, Inc.,            Exhibit 10.13 to the Company's
               American Indian Cigco, LLC.            Quarterly Report on Form 10QSB
               and CigCo-Epic Venture.                as filed with the Securities
                                                      and Exchange Commission on
                                                      August 19, 2003.

31.1           Certification of Chief Executive       Provided herewith
               Officer pursuant to Section 302
               of the Sarbanes-Oxley Act of 2002

31.2           Certification of Chief Financial       Provided herewith
               Officer pursuant to Section 302
               of the Sarbanes-Oxley Act of 2002

32.1           Certification of Chief Executive       Provided herewith
               Officer pursuant to Section 906
               of the Sarbanes-Oxley Act of 2002,
               18 U.S.C. Section 1350

32.2           Certification by Chief Financial       Provided herewith
               Officer pursuant to Section 906
               of the Sarbanes-Oxley Act of 2002,
               18 U.S.C. Section 1350
</TABLE>

b)    There were no reports on Form 8-K filed under the Securities  Exchange Act
      of 1934 during the quarter ended September 30, 2003.

                                       13
<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            November 17, 2003
     --------------------------
Richard A. Urrea
President


By:  /s/   Daniel  Urrea               November 17, 2003
     -----------------------
Daniel Urrea
Chief Financial Officer (Principal Accounting Officer)

                                       14