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, 2002

[]   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 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 8, 2002 was
31,496,419.
<PAGE>
                                  CYCO.NET,INC.
                                   FORM 10-QSB
                                      INDEX
                               September 30, 2002


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

Controls and Procedures                                                        9

PART II OTHER INFORMATION

Legal Proceedings                                                             10

Changes in Securities and Use of Proceeds                                     10

Defaults Upon Senior Securities                                               11

Submission of Matters to a Vote of Security Holders                           11

Other Information                                                             11

Exhibits and Reports on Form 8-K                                              11
<PAGE>
                                 CYCO.NET, INC.
                           CONSOLIDATED BALANCE SHEET
                         (unaudited) September 30, 2002

                                     ASSETS
CURRENT ASSETS
  Receivables                                                        $   66,220
  Inventory                                                               6,920
                                                                     ----------
     Total current assets                                                73,140
                                                                     ----------

PROPERTY AND EQUIPMENT, net of
  accumulated depreciation of $2,649                                      6,405
                                                                     ----------

OTHER ASSETS
  Deferred offering costs                                               107,689
  Intangible assets - Domain name and website,
    net of accumulated amortization of $46,254                           26,746
  Other receivables - related parties                                    24,706
  Deposit                                                                 1,905
                                                                     ----------
                                                                        161,046
                                                                     ----------

                                                                     $  240,591
                                                                     ==========

                     LIABILITIES AND STOCKHOLDERS' (DEFICIT)
CURRENT LIABILITIES
  Bank overdraft                                                     $    9,238
  Accounts payable and accrued expenses                                 244,358
  Accounts payable - related party                                        1,000
                                                                     ----------
     Total current liabilities                                          254,596
                                                                     ----------

STOCKHOLDERS' (DEFICIT)
  Common Stock, $0.001 par value,
    100,000,000 shares authorized,
    31,496,419 shares issued and outstanding                             31,496
  Additional paid in capital                                            634,109
  Accumulated (deficit)                                                (679,610)
                                                                     ----------
                                                                        (14,005)
                                                                     ----------

                                                                     $  240,591
                                                                     ==========

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

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

<TABLE>
<CAPTION>
                                           Three Months Ended              Nine Months Ended
                                              September 30,                   September 30,
                                      ----------------------------    ----------------------------
                                          2002            2001            2002            2001
                                      ------------    ------------    ------------    ------------
                                                                                       (restated)
<S>                                   <C>             <C>             <C>             <C>
Revenues, net                         $  1,488,510    $  1,111,573    $  3,744,181    $  3,091,435
Cost of goods sold
  Product                                1,217,382         928,699       3,103,280       2,639,878
  Shipping                                 110,962          62,395         237,119         168,128
  Credit card processing                    39,486          33,993         101,754          92,552
  Other                                         --            (880)             --              --
                                      ------------    ------------    ------------    ------------
                                         1,367,830       1,024,207       3,442,153       2,900,558
                                      ------------    ------------    ------------    ------------

Gross profit                               120,680          87,366         302,028         190,877

General and administrative expenses        273,267          86,649         463,691         347,488
                                      ------------    ------------    ------------    ------------

Income (loss) from operations             (152,587)            717        (161,663)       (156,611)
                                      ------------    ------------    ------------    ------------

Other income (expense)
Interest expense                              (629)           (146)           (827)           (152)
                                      ------------    ------------    ------------    ------------

Net income (loss)                     $   (153,216)   $        571    $   (162,490)   $   (156,763)
                                      ============    ============    ============    ============

Per share information:
Net income (loss) per common
  share (basic and diluted)           $      (0.01)   $       0.00    $      (0.01)   $      (0.01)
                                      ============    ============    ============    ============

Weighted average shares
  outstanding (basic and diluted)       29,811,636      26,311,093      27,613,635      25,615,100
                                      ============    ============    ============    ============
</TABLE>

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

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

                                                        Nine months ended
                                                           September 30,
                                                   ------------    ------------
                                                       2002            2001
                                                   ------------    ------------
                                                                    (restated)
Cash flows from operating actvities:
Net cash provided by operating activities          $     12,110    $     30,798
                                                   ------------    ------------

Cash flows from investing activities:
  Acquisition of intangible assets                      (14,000)        (18,000)
  Acquisition of property and equipment                  (3,329)         (2,125)
                                                   ------------    ------------
     Net cash (used in) investing activities            (17,329)        (20,125)
                                                   ------------    ------------

Cash flows from financing activities:
  Decrease in amounts due to related party                   --          (1,713)
                                                   ------------    ------------
     Net cash (used in) financing activities                 --          (1,713)
                                                   ------------    ------------

     Net increase (decrease) in cash                     (5,219)          8,960
Beginning cash balance                                    5,219          44,838
                                                   ------------    ------------

Ending cash balance                                $         --    $     53,798
                                                   ============    ============

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

                                       4
<PAGE>
                                 CYCO.NET, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2002
                                   (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, 2001 and for the
two years then ended, including notes thereto, included in the Company's Form
10-KSB/A.

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, 2001
financial statements have been reclassified to conform to current periods
presentation.

(3) 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.

(4) INVENTORY

Inventory is stated at the lower of cost or market, cost being determined on a
first-in, first-out basis.

(5) STOCKHOLDERS (DEFICIT)

On August 1, 2002, the Company issued 5,000,000 shares of common stock to
certain officers and employees as a bonus. These shares were valued at their
fair market value of $0.03 per share on the date the Company agreed to issue the
shares and the Company charged $150,000 to operations during the three months
ended September 30, 2002.

(6) 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 nine months ended September 30, 2002, the Company
incurred a net loss of $162,490 and has a working capital deficit of $181,456,
and a stockholders' deficit of $14,005 at September 30, 2002.

The Company's ability to continue as a going concern is contingent upon its
ability to secure financing, increase ownership equity and attain profitable
operations. In addition, the Company's ability to continue as a going concern
must be considered in light of the problems, expenses and complications
frequently encountered by entrance into established markets and the competitive
environment in which the Company operates. The Company is pursuing financing for
its operations and seeking additional private placement investments. In
addition, the Company has begun to operate its website and generate significant
revenues from the sale of its products.

                                       5
<PAGE>
                                 CYCO.NET, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2002
                                   (UNAUDITED)


(7) RESTATEMENT

The Company has restated its previously reported financial statements for the
nine months ended September 30, 2001. The financial statements have been
restated to properly account for a stock issuance to related parties. The effect
of the restatement was to decrease net income for the nine months ended
September 30, 2001 by $40,000. There was no effect on earnings per share as a
result of the restatement.

                                       6
<PAGE>
                                 CYCO. NET, INC.
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS


RESULTS OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED WITH THE THREE MONTHS ENDED
SEPTEMBER 30, 2001

Revenues for the three months ended September 30, 2002 were $1,488,510 as
compared to $1,111,573 in the same period last year. Cyco.net's revenues are
derived from the sale of cigarettes on the Internet. The increase of $376,937 in
revenue is primarily a result of two factors. The first is an increase in the
number of customers visiting its websites and the second is an increase in the
number of purchases by the customers visiting its websites. Cyco.net attributes
these increases to several factors, including an increased comfort level
experienced by customers with purchases over the Internet in general and
Cyco.net in particular, and reputation for competitive pricing and on-time
delivery. The Company also increased its advertising efforts which we believe
had a favorable impact on revenues.

Cost of goods sold were $1,367,830 or 91.9% of revenues for the three months
ended September 30, 2002, as compared to $1,024.207 or 92.1 % of revenues for
the three months ended September 30, 2001. The decrease in the cost of goods
sold, expressed as a percent of revenues, was due to an increase in the sales of
discount cigarette brands that have a higher profit margin and more favorable
pricing from our suppliers. Included in the cost of goods sold for the three
months ended September 30, 2002, were the cost of products of $1,217,382,
shipping costs of $110,962, and credit card processing fees of $39,486. Included
in the cost of goods sold for the three months ended September 30, 2001, were
the cost of products of $928,699, shipping costs of $62,395, and credit card
processing fees of $33,993. In both periods other miscellaneous costs have been
reclassified to shipping costs.

The increase of $48,567 in shipping costs was primarily attributable to two
factors: first, more shipments of cigarettes which accounted for approximately
$21,158, and secondly, on July 1, the US Postal Service increased their rates
which resulted in an increase of approximately $27,409 in shipping costs. Both
factors resulted in increased revenues and correspondingly increased shipping
costs. Credit card processing fees increased by $5,493 due to higher revenues.

General and administrative expenses for the quarter ended September 30, 2002
were $273,267 as compared to $86,649 for the same period last year. The increase
of $186,618 was due primarily to the non-cash issuance of stock valued at
$150,000 and website design and maintenance costs of approximately $17,042. On
August 1, 2002, the Company issued a total of 5,000,000 shares of restricted
common stock to its executive officers and other employees as bonus
compensation. These shares were valued at $0.03 per share on the date of grant
and resulted in a compensation expense of $150,000 in the quarter ended
September 30, 2002.

During the three months ended September 30, 2002, the major components of
general and administrative expenses were approximately $13,180 in advertising,
$205,615 in payroll expenses, $20,727 in professional fees, $6,357 in rent,
$6,539 in amortization and depreciation and $20,849 in miscellaneous other
expenses. Included in general and administrative expenses during the same period
last year were approximately $8,098 in advertising, $47,664 in payroll expenses,
$3,614 in professional fees, $9,047 in rent, $5,457 in amortization and
depreciation and $12,769 in miscellaneous other expenses. The increase of $5,082
in advertising expense was due to increased advertising efforts in the current
quarter. The increase in payroll expenses of $157,951 was primarily due to the
issuance of stock discussed above, the addition of two staff members and the
addition of health insurance for all employees. The increase of $17,113 in
professional fees is primarily the result of website design and maintenance
costs. The decrease of $2,690 in rent expense was due to a reduction in building
security costs assumed by the landlord. The increase of $1,082 in amortization
and depreciation is primarily attributable to the purchase of software
development and enhancements used in Cyco.net's business. The increase of $8,080
in miscellaneous expenses is primarily due to increased telephone, internet
service, utility and travel costs.

The Company had a net loss for the three months ended September 30, 2002 of
$153,216 compared to net income of $571 for the same period last year. Of the
$153,216 net loss, for the three months ended September 30, 2002, $156,539 was
due to non-cash items of $150,000 in payroll expense and $6,539 in depreciation
and amortization.

NINE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED WITH THE NINE MONTHS ENDED
SEPTEMBER 30, 2001

Revenues for the nine months ended September 30, 2002 were $3,744,181 as
compared to $3,091,435 in the same period last year. Cyco.net's revenues are
derived from the sale of cigarettes on the Internet. The increase of $652,746 in
revenue is primarily the result of an increase in the number of customers
visiting its website and an increase in the number of purchases by the customers
visiting its websites. The Company also increased its advertising efforts which
we believe had a favorable impact on revenues.

                                       7
<PAGE>
Cost of goods sold were $3,442,153 or 91.9% of revenues for the nine months
ended September 30, 2002, as compared to $2,900,558 or 93.8 % of revenues for
the nine months ended September 30, 2001. The decrease in the cost of goods
sold, expressed as a percent of revenues, was due to an increase in the sales of
discount cigarette brands that have a higher profit margin and more favorable
pricing from our suppliers. Included in the cost of goods sold for the nine
months ended September 30, 2002, were the cost of products of $3,103,280,
shipping costs of $237,119 and credit card processing fees of $101,754. Included
in the cost of goods sold for the nine months ended September 30, 2001, were the
cost of products of $2,639,878, shipping costs of $168,128 and credit card
processing fees of $92,552. The increase of $68,991 in shipping costs was
primarily attributable to more shipments of cigarettes in the current period,
resulting in increased revenues and correspondingly increased shipping costs.
Credit card processing fees increased by $16,702 due to a higher volume of
revenues. The increase was offset by a one-time refund of $7,500 from a card
processor for the loss of business Cyco.net suffered for incorrect credit card
processing. This resulted in a net increase in credit card processing fees of
$9,202.

General and administrative expenses for the nine months ended September 30, 2002
were $463,691 as compared to $347,488 for the same period last year. This
increase of approximately $116,203 was primarily due to an increase in payroll
costs of $77,576 and an increase in professional fees of $13,037. In the prior
year, Cyco.net issued 4,000,000 shares of restricted common stock to employees,
resulting in non-cash payroll costs of approximately $120,000. In the current
year, 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. During the nine months ended
September 30, 2002, the major components of general and administrative expenses
were approximately $21,466 in advertising, $313,930 in payroll expenses, $37,977
in professional fees, $19,561 in rent, $21,801 in amortization and depreciation
and $48,956 in miscellaneous other expenses. Included in general and
administrative expenses during the same period last year were approximately
$15,214 in advertising, $236,354 in payroll expenses, $24,940 in professional
fees, $20,596 in rent, $16,229 in amortization and depreciation and $34,155 in
miscellaneous other expenses. The increase of $6,252 in advertising expenses was
attributable to Internet advertising, primarily in connection with listing
Cyco.net on Internet search engines. The increase in payroll expenses of $77,576
was due to an increase in non-cash compensation, as discussed above, of $30,000
and $47,576 for the addition of two staff members and health insurance for all
employees. The increase of $13,037 in professional fees was due primarily to
website design and maintenance costs which, prior to the current quarter, the
Company had been capitalizing its website design costs. The decrease of $1,035
in rent expense was due to a reduction in building security costs assumed by the
landlord. The increase of $5,572 in amortization and depreciation is primarily
attributable to the purchase of software development and enhancements used in
Cyco.net's business. The increase of $14,801 in miscellaneous expenses is
primarily due to increased telephone, Internet service, utility and travel
costs.

The Company had a net loss for the nine months ended September 30, 2002 of
$162,490 compared to a net loss of $156,763 for the same period last year.
Although the Company had a net loss of $162,490 for the nine months ended
September 30, 2002, $171,801 of the loss was due to non-cash items of $150,000
in payroll expense and $21,801 in depreciation and amortization.

FINANCIAL RESOURCES AND LIQUIDITY

For the nine months ended September 30, 2002, cash provided by operations was
$12,110 and cash used in investing activities was $17,329. This resulted in a
net decrease in cash of $5,219 for the nine months ended September 30, 2002. As
of September 30, 2002, Cyco.net had a bank overdraft of $9,238.

Since January 1, 2001, Cyco.net has been able to meet its cash needs solely
through the sales of cigarettes. Cyco.net expects to experience an increase in
its product sales that will be sufficient to meet its current operating expenses
and without factoring in any spending to enhance growth. However, Cyco.net will
need to raise additional capital to finance growth, including locating new
facilities to ship product, advertising, enhancing its website and hiring
additional employees. Such capital is expected to come from the sale of
securities, including the sale of common stock under the Equity Line of Credit,
Cyco.net does not have any commitments for financing.

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>
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 nine months ended September 30, 2002, the Company
incurred a net loss of $162,490 and has a working capital deficit of $181,456,
and a stockholders' deficit of $14,005 at September 30, 2002.

The Company's ability to continue as a going concern is contingent upon its
ability to secure financing, increase ownership equity and attain profitable
operations. In addition, the Company's ability to continue as a going concern
must be considered in light of the problems, expenses and complications
frequently encountered by entrance into established markets and the competitive
environment in which the Company operates. The Company is pursuing financing for
its operations and seeking additional private placement investments. In
addition, the Company has begun to operate its website and generate significant
revenues from the sale of its products.

CONTROLS AND PROCEDURES

QUARTERLY EVALUATION OF DISCLOSURE CONTROLS AND INTERNAL CONTROLS. Within the 90
days prior to the date of this Quarterly Report on Form 10-QSB, the company
evaluated the effectiveness of the design and operation of its "disclosure
controls and procedures" (Disclosure Controls), and its "internal controls and
procedures for financial reporting" (Internal Controls). This evaluation (the
Controls Evaluation) was done under the supervision and with the participation
of management, including our Chief Executive Officer (CEO) and Chief Financial
Officer (CFO). Rules adopted by the SEC require that in this section of the
Quarterly Report we present the conclusions of the CEO and the CFO about the
effectiveness of our Disclosure Controls and Internal Controls based on and as
of the date of the Controls Evaluation.

CEO AND CFO CERTIFICATIONS. Appearing immediately following the Signatures
section of this Quarterly Report there are two separate forms of
"Certifications" of the CEO and the CFO. The first form of Certification is
required in accord with Section 302 of the Sarbanes-Oxley Act of 2002 (the
Section 302 Certification). This section of the Quarterly Report which you are
currently reading is the information concerning the Controls Evaluation referred
to in the Section 302 Certifications and this information should be read in
conjunction with the Section 302 Certifications for a more complete
understanding of the topics presented.

DISCLOSURE CONTROLS AND INTERNAL CONTROLS. Disclosure Controls are procedures
that are designed with the objective of ensuring that information required to be
disclosed in our reports filed under the Securities Exchange Act of 1934
(Exchange Act), such as this Quarterly Report, is recorded, processed,
summarized and reported within the time periods specified in the Securities and
Exchange Commission's (SEC) rules and forms. Disclosure Controls are also
designed with the objective of ensuring that such information is accumulated and
communicated to our management, including the CEO and CFO, as appropriate to
allow timely decisions regarding required disclosure. Internal Controls are
procedures which are designed with the objective of providing reasonable
assurance that (1) our transactions are properly authorized; (2) our assets are
safeguarded against unauthorized or improper use; and (3) our transactions are
properly recorded and reported, all to permit the preparation of our financial
statements in conformity with generally accepted accounting principles.

LIMITATIONS ON THE EFFECTIVENESS OF CONTROLS. The company's management,
including the CEO and CFO, does not expect that our Disclosure Controls or our
Internal Controls will prevent all error and all fraud. A control system, no
matter how well conceived and operated, can provide only reasonable, not
absolute, assurance that the objectives of the control system are met. Further,
the design of a control system must reflect the fact that there are resource
constraints, and the benefits of controls must be considered relative to their
costs. Because of the inherent limitations in all control systems, no evaluation
of controls can provide absolute assurance that all control issues and instances
of fraud, if any, within the company have been detected. These inherent
limitations include the realities that judgments in decision-making can be
faulty, and that breakdowns can occur because of simple error or mistake.
Additionally, controls can be circumvented by the individual acts of some
persons, by collusion of two or more people, or by management override of the
control. The design of any system of controls also 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; over time, control may become inadequate because of changes
in conditions, or the degree of compliance with the policies or procedures may
deteriorate. Because of the inherent limitations in a cost-effective control
system, misstatements due to error or fraud may occur and not be detected.

SCOPE OF THE CONTROLS EVALUATION. The CEO/CFO evaluation of our Disclosure
Controls and our Internal Controls included a review of the controls' objectives
and design, the controls' implementation by the company and the effect of the
controls on the information generated for use in this Quarterly Report. In the
course of the Controls Evaluation, we sought to identify data errors, controls
problems or acts of fraud and to confirm that appropriate corrective action,
including process improvements, were being undertaken. This type of evaluation
will be done on a quarterly basis so that the conclusions concerning controls
effectiveness can be reported in our Quarterly Reports on Form 10-QSB and Annual
Report on Form 10-KSB.

                                       9
<PAGE>
The overall goals of these various evaluation activities are to monitor our
Disclosure Controls and our Internal Controls and to make modifications as
necessary; our intent in this regard is that the Disclosure Controls and the
Internal Controls will be maintained as dynamic systems that change (including
with improvements and corrections) as conditions warrant.

Among other matters, we sought in our evaluation to determine whether there were
any "significant deficiencies" or "material weaknesses" in the company's
Internal Controls, or whether the company had identified any acts of fraud
involving personnel who have a significant role in the company's Internal
Controls. This information was important both for the Controls Evaluation
generally and because items 5 and 6 in the Section 302 Certifications of the CEO
and CFO require that the CEO and CFO disclose that information to our Board and
to our independent auditors and to report on related matters in this section of
the Quarterly Report. In the professional auditing literature, "significant
deficiencies" are referred to as "reportable conditions"; these are control
issues that could have a significant adverse effect on the ability to record,
process, summarize and report financial data in the financial statements. A
"material weakness" is defined in the auditing literature as a particularly
serious reportable condition where the internal control does not reduce to a
relatively low level the risk that misstatements caused by error or fraud may
occur in amounts that would be material in relation to the financial statements
and not be detected within a timely period by employees in the normal course of
performing their assigned functions. We also sought to deal with other controls
matters in the Controls Evaluation, and in each case if a problem was
identified, we considered what revision, improvement and/or correction to make
in accord with our on-going procedures.

In accord with SEC requirements, the CEO and CFO note that, since the date of
the Controls Evaluation to the date of this Quarterly Report, there have been no
significant changes in Internal Controls or in other factors that could
significantly affect Internal Controls, including any corrective actions with
regard to significant deficiencies and material weaknesses.

CONCLUSIONS. Based upon the Controls Evaluation, our CEO and CFO have concluded
that, subject to the limitations noted above, our Disclosure Controls are
effective to ensure that material information relating to the Company is made
known to management, including the CEO and CFO, particularly during the period
when our periodic reports are being prepared, and that our Internal Controls are
effective to provide reasonable assurance that our financial statements are
fairly presented in conformity with generally accepted accounting principles.

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

     None

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

     On August 1, 2002, the Company issued a total of 5,000,000 shares of
restricted common stock to its executive officers and other employees as bonus
compensation as follows: Richard Urrea, 1,000,000 shares, Daniel Urrea,
1,000,000 shares, Brent Wolford, 1,000,000 shares, Lynnette Budagher, 1,000,000
shares and Trey Urrea, 1,000,000 shares. These shares were valued at $0.03 per
share on the date of grant for a total of $150,000. This grant resulted in a
compensation expense of $150,000 in the quarter ended September 30, 2002. These
shares were issued in reliance upon section 4 (2) of the Securities Act of 1933
as the recipients were all officers and employees of the Company.

                                       10
<PAGE>
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 7. EXHIBITS AND REPORTS ON FORM 8-K

(a)  EXHIBITS

EXHIBIT NO.    DESCRIPTION                        LOCATION
-----------    -----------                        --------

2.1            Acquisition Agreement between      Incorporated by reference to
               Ave and 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       Incorporated by reference to
               and 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

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

3.2            Certificate of Agreement of        Incorporated by reference to
               Merger of DeLuxe Onyx Company      Exhibit 2.8 to the Company's
               dated January 23, 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       Incorporated by reference to
               Merger 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               Incorporated by reference to
               Certificate of Incorporation       Exhibit 2.10 to the Company's
               dated January 23, 1987             Annual Report on Form 10-KSB
                                                  as filed with the Securities
                                                  and Exchange Commission on
                                                  April 16, 2001

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

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          Exhibit 21.1 to the Company's
               Owned Subsidiary Cyco.net, Inc.    Annual Report on Form 10-KSB
               (formerly Ave, Inc.)               as filed with the Securities
                                                  and Exchange Commission on
                                                  April 16, 2001

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

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

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

10.1           Line of Credit Agreement           Incorporated by reference to
               dated August 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        Incorporated by reference to
               Agreement 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,     Incorporated by reference to
               Inc. 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 12
                                                  Commission on January 4, 2001

                                       12
<PAGE>
EXHIBIT NO.    DESCRIPTION                        LOCATION
-----------    -----------                        --------

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

10.8           Warrant dated as of August 2001    Incorporated by reference to
               given by Cyco.net to Cornell       Exhibit 10.8 to the Company's
               Capital 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      Incorporated by reference to
               dated August 2001 between          Exhibit 10.9 to the Company's
               Cyco.net and Cornell Capital       Annual Report on Form 10-QSB
               Partners, LP.                      as filed with the Securities
                                                  and Exchange Commission on
                                                  November 13, 2001

10.10          Escrow Agreement dated as of       Incorporated by reference to
               August 2001 among Cyco.net,        Exhibit 10.10 to the Company's
               Cornell Capital Partners, L.P.,    Annual Report on Form 10-QSB
               Butler Gonzalez LLP and First      as filed with the Securities
               Union National Bank                and Exchange Commission on
                                                  November 13, 2001

10.11          Letter Agreement dated as of       Incorporated by reference to
               April 20, 2002 between Cornell     Exhibit 10.11 to the Company's
               Capital Partners, L.P., and        Registration Statement on Form
               Cyco.net.                          SB-2 as filed with the
                                                  Securities and Exchange
                                                  Commission on September 13,
                                                  2001

b)   There were no reports on Form 8-K filed under the Securities Exchange Act
     of 1934 during the quarter ended September 30, 2002.

                                       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 13, 2002
    ---------------------------------
    Richard A. Urrea
    President/Chief Executive Officer


By: /s/ Daniel Urrea                         November 13, 2002
    ---------------------------------
    Daniel Urrea
    Chief Financial Officer (Principal Accounting Officer)
<PAGE>
                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cyco.net, Inc. (the "Company") on
Form 10-Q for the period ended September 30, 2002 as filed with the Securities
and Exchange Commission on the date hereof (the "Report"), each of the
undersigned, in the capacities and on the dates indicated below, hereby
certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1.   The Report fully complies with the requirements of Section 13(a) or 15(d)
of the Securities Exchange Act of 1934; and

2.   The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operation of the Company.


By: /s/ Richard A. Urrea                November 13, 2002
    ------------------------------
    Richard A. Urrea
    Chief Executive Officer


By: /s/ Daniel Urrea                    November 13, 2002
    ------------------------------
    Daniel Urrea
    Chief Financial Officer
<PAGE>
                                  CERTIFICATION

I, Richard A. Urrea certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of Cyco.net, Inc.

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

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

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

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

          b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

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

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

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

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

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

Date: November 13, 2002

By: /s/ Richard A. Urrea
    ------------------------------
    Richard A. Urrea
    Chief Executive Officer
<PAGE>
                                  CERTIFICATION

I, Daniel Urrea certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of Cyco.net, Inc.

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

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

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

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

          b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

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

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

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

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

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

Date: November 13, 2002

By: /s/ Daniel Urrea
    ------------------------------
    Daniel Urrea
    Chief Financial Officer