U.S. SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB

(Mark One)

X  Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of
      1934

For the quarterly period ended February 29, 2000.

Transition report under Section 13 or 15(d) of the Exchange Act

For the transition period from  _______ to ____________

Commission file number:      0-26673

                            forestindustry.com, Inc.
        (Exact Name of Small Business Issuer as Specified in Its Charter)

      Delaware                                    98-0207081
(State or Other Jurisdiction of           (I.R.S.Employer Identification No.)
Incorporation or Organization)

          504 - 999 Canada Place, Vancouver, British Columbia, V6C 3E1
                    (Address of Principal Executive Offices)

                                 (604) 632-3802
                (Issuer's Telephone Number, Including Area Code)

     ----------------------------------------------------------------------
             (Former Name, Former Address and Former Fiscal Year, if
                           Changed Since Last Report)

      Check  whether the issuer:  (1) filed all reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.

Yes      X        No


      As of March 31,  2000 the  Company had  15,314,540  outstanding  shares of
common stock.


      Transitional Small Business Disclosure Format (check one):

Yes               No    X

<PAGE>


Item 1.     Financial Statements



Interim Consolidated Balance Sheet
----------------------------------------------------------------------------

                                              February 29,           July 31,
                                                  2000                1999
                                               ------------      ------------
ASSETS

CURRENT

Cash and Cash Equivalents                        $517,805              $2,819

Accounts Receivable                                79,504              64,657

Prepaid Expenses                                    4,805               1,795


Due from Affiliated Company                           166
                                                  -------             -------
                                                  602,114              69,437

Equipment                                          57,154              31,031

                                                 $659,268            $100,468
                                                 ========            ========

LIABILITIES and STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Operating Line of Credit                          $10,348             $13,278
Accounts Payable and Accrued Liabilities           50,921              39,265
Unearned Revenues                                  57,764              52,281
Current Portion of Long Term Debt                      --              22,465
                                                  -------             -------
                                                  119,033             127,289

Due to Parent Company                                  --              50,341
Due to Shareholders                                    --              17,672
Long Term Debt                                         --              33,230
                                                  -------             -------
                                                  119,033             228,532
STOCKHOLDERS' EQUITY

Share Capital
    Common stock, $0.0001 par value
    30,000,000 authorized; 15,314,540
       issued and outstanding                        1,531                  1
    Preferred stock, $0.0001 par value
    5,000,000 authorized; 750 issued and
         outstanding                                     1                 --
Additional paid in capital                         737,853
Deficit                                           (199,150)          (128,065)

                                                   540,235           (128,064)
                                                  --------           ---------
                                                  $659,268           $100,468
                                                  ========           ========

Unaudited - "See accompanying notes to the consolidated financial statements"


<PAGE>




Interim Consolidated Statements of Operations
For the Three and Nine Month  Periods  Ended  February 29, 2000 and February 28,
1999 (In U.S. $)
--------------------------------------------------------------------------------

                                 Three Months Ended         Nine Months Ended
                               ----------------------    -----------------------
                               Feb. 29      Feb. 28,      Feb. 29,     Feb. 28,
                                 2000        1999          2000        1999
                                   $           $             $           $

REVENUES                        101,052      74,590       264,144    178,323
                               ---------------------------------------------

EXPENSES

Advertising and Promotion             2,887       278       3,584          -
Amortization                          2,029     1,940       8,753      7,095
Bad Debts                             6,544       461      18,044      3,856
Bank Charges and Interest             2,865     3,530      11,033     12,317
Consulting Fees                      17,211         -      17,490      1,828
Filing Fees                           3,684         -       3,703          -
Foreign Exchange Loss (Gain)          7,961     1,974       5,885    (6,655)
Office                               10,015     3,080      18,788      5,221
Printing                             15,286     4,097      23,720      4,680
Professional Fees                    14,610     2,882      33,411     13,542
Rent, Property Taxes and              5,794     1,717      14,250      5,316
Utilities
Salaries and Benefits                63,654    34,519     169,158    105,122
Telephone                             6,576     2,198      13,398      7,233
Trade Shows                           2,566         -       9,466        817
Travel and Lodging                    8,336     1,372      21,049      5,099
                               ---------------------------------------------

                                    170,018    58,048     371,732    165,471
                               ---------------------------------------------


NET INCOME (LOSS)
FOR THE PERIOD                     (68,966)  (16,542)   (107,588)     12,852
                               ---------------------------------------------




Weighted Average Number of
Shares Outstanding, Basic and
Diluted                         11,596,941  10,000,000  10,530,371   10,000,000
                               ================================================

Earnings (Loss) per Common
Share,
Basic and Diluted                   (0.006)     (0.002)      (0.01)      0.001
                                  =============================================




Unaudited - "See accompanying notes to the consolidated financial statements"

<PAGE>



Interim  Consolidated  Statements of  Stockholders'  Equity
For the Periods from January 09, 1997  (inception) to February 29, 2000
(In U.S.$)
-------------------------------------------------------------------------------
<TABLE>
<S>                                           <C>         <C>          <C>         <C>          <C>         <C>           <C>

                                                 Common Stock           Preferred Stock
                                         -----------------------    ---------------------    Additional
                                           Number of                 Number                   Paid in
                                              Shares     Amount    of Shares     Amount       Capital     Deficit       Total
                                                              $                     $           $            $             $
--------------------------------------------------------------------------------------------------------------------------------
Balance, January 09, 1997 (inception)            100          -          -          -           -             -            -

Net Loss for the Period                            -          -          -          -           -      (54,533)     (54,533)
-------------------------------------------------------------------------------------------------------------------------------
Balance, May 31, 1997                            100          -          -          -           -      (54,533)     (54,533)

Net Loss for the Year                              -          -          -          -           -      (51,892)     (51,892)
-------------------------------------------------------------------------------------------------------------------------------
Balance, May 31, 1998                            100          -          -          -           -     (106,425)    (106,425)

Net Income for the Year                            -          -          -          -           -        14,863       14,863
-------------------------------------------------------------------------------------------------------------------------------
Balance, May 31, 1999                            100          -          -          -           -      (91,562)     (91,562)

Common stock issued to purchase all
issued and
       outstanding shares of The Forest   10,000,000      1,000          -          -           -            -        1,000
Industry Online Inc.,
       January 31, 2000 (note 3)

Adjustment to comply with                  4,926,940        492          -          -    (21,020)            -     (20,528)
recapitalization
       accounting (note 3)

Common stock issued for services,
January 31, 2000, valued                      37,500          4          -          -         859            -          863
      at approximately $0.023 per share
(note 3)

750 Series `A' convertible preferred
shares issued for cash,                            -          -        750          1     749,999            -      750,000
 January 31, 2000 at $1,000 per share (note 3)

Common stock issued for services in
February, 2000 valued at approximately
    $0.023 per share (note 5(c))             350,000         35          -          -       8,015            -        8,050

Net Loss for the Period                            -          -          -          -           -     (107,588)    (107,588)
---------------------------------------------------------------------------------------------------------------------------------

Balance, February 29, 2000                15,314,540      1,531        750          1     737,853   (199,150)      540,235

--------------------------------------------------------------------------------------------------------------------------
</TABLE>

Unaudited - "See accompanying notes to the consolidated financial statements"


<PAGE>






Interim  Consolidated  Statements of Cash Flows
For the Nine Month Periods Ended
February 29, 2000 and February 28, 1999 (In U.S. $)
----------------------------------------------------------------------------

                                                            2000         1999
                                                             $            $
CASH WAS PROVIDED FROM, UTILIZED (FOR):

OPERATING ACTIVITIES:
Net Income (Loss) for the Period                          (107,588)      12,852
Non-Cash Items:
  Amortization                                                8,753       7,095
  Common Stock Issued in Exchange for Services                8,050           -
  Foreign Exchange Loss                                       5,885           -
  Change in Non-Cash Working Capital Accounts
     Accounts Receivable                                   (22,324)    (22,173)
     Prepaid Expenses                                       (4,565)           -
     Accounts Payable and Accrued Liabilities                30,454     (2,118)
     Unearned Revenues                                       33,742       9,487
                                                       -------------------------

Net Cash Provided by Operating Activities                  (47,593)       5,143
                                                       -------------------------

FINANCING ACTIVITIES
Long-term Debt and Operating Line of Credit Advances       (60,860)      79,930
(Repayments)
Advances (to) Related Company                              (71,229)    (66,862)
Advances from  (to) Shareholders                           (18,348)      11,918
Net Proceeds from Issuance of Preferred Stocks              750,000           -
                                                       -------------------------

Net Cash Provided by Financing Activities                   599,563      24,986
                                                       -------------------------

INVESTING ACTIVITY

Acquisition of Capital Assets                              (37,712)    (18,634)
                                                       -------------------------

INCREASE IN CASH                                            514,258      11,495

Cash, Beginning of the Period                                 3,547       4,317
                                                       -------------------------


CASH, END OF THE PERIOD                                     517,805      15,812
                                                      =========================






Unaudited - "See accompanying notes to the consolidated financial statements"

<PAGE>


Notes to the Interim Consolidated Financial Statements
As at February 29, 2000
--------------------------------------------------------------------


NOTE 1 - NATURE OF OPERATIONS


forestindustry.com,  Inc.  (the  "Company")  was  incorporated  in  Delaware  on
December  18,  1997 under the name of Autoeye  Inc. On February  25,  2000,  the
Company changed its name to forestindustry.com, Inc. Prior to our acquisition of
The Forest  Industry  Online  Inc.  ("Forest")  (note  2(a)),  the  Company  was
inactive.

The  Company's  current  business  activities  include  designing  web sites and
operating and maintaining a computer internet web site for companies  associated
with the forest industry.


NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

a)  Reverse Takeover

On January 31, 2000, the Company merged with Forest, with Forest's  stockholders
receiving  10,000,000  shares  of  common  stock  and  control  of the  Company.
Accordingly,  Forest is deemed the accounting  acquiror for financial  statement
purposes.  The  acquisition,  a reverse  takeover,  has been  accounted for as a
capital  transaction  effectively  representing an issue of stocks by Forest for
the net assets of forestindustry.com, Inc.


The Company's  historical  financial  statements reflect the financial position,
results  of  operations   and  cash  flows  of  Forest  from  the  date  of  its
incorporation  on January  09,  1997 under the laws of the  Province  of British
Columbia. The historical  stockholders' equity gives effect to the shares issued
to the stockholders of Forest. The results of operations of  forestindustry.com,
Inc. are included only from the date of acquisition, January 31, 2000.

b)    Basis of Presentation

The accompanying  unaudited interim consolidated  financial statements have been
prepared  in  accordance  with  United  States  generally  accepted   accounting
principles for interim financial information and the rules of the Securities and
Exchange  Commission  (the "SEC") for quarterly  reports on Form 10-QSB.  In the
opinion of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included.


c)  Basis of Consolidation

These  consolidated  financial  statements include the accounts of the Company's
wholly-owned  subsidiary,  The  Forest  Industry  Online  Inc.  All  significant
intercompany  balances and transactions have been eliminated in the consolidated
financial statements.


d) Equipment and Depreciation

Equipment  are  recorded  at cost and are  depreciated  using the  straight-line
method over their estimated useful lives ranging from five to ten years.





<PAGE>







Notes to the Interim Consolidated Financial Statements
As at February 29, 2000
---------------------------------------------------------------------------

Note 2 - Significant Accounting Policies (continued)



e)  Cash and Cash Equivalents

The  Company  considers  all  short-term  investments  with a  maturity  date at
purchase of three months or less to be cash equivalents.


f)  Revenue Recognition and Unearned Revenues

Revenues are recorded on the billed  basis.  Customers are billed on a quarterly
basis in advance for advertising  fees and hosting  revenue.  Unearned  revenues
relate to the period of the billing that has not yet  transpired  and  therefore
not earned.


g)  Use of Estimates

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


h)  Net Earnings (Loss) Per Share

Basic earnings (loss) per share is computed using the weighted average number of
common stock outstanding during the periods.  Diluted loss per share is computed
using the weighted  average  number of common and  potentially  dilutive  common
stock  outstanding  during the period.  As the Company has losses in the periods
presented, basic and diluted loss per share is the same.

i)  Stock-based Compensation

The Company accounts for its stock-based  compensation arrangement in accordance
with provisions of Accounting  Principles Board (APB) Opinion No. 25, Accounting
for  Stock  Issued  to  Employees,   and  related   interpretations.   As  such,
compensation  expense  under  fixed plans would be recorded on the date of grant
only if the fair value of the underlying stock at the date of grant exceeded the
exercise price. The Company recognizes  compensation  expense for stock options,
common stock and other equity  instruments  issued to non-employees for services
received based upon the fair value of the services or equity instruments issued,
whichever is more reliably determined.
This information is presented in note 5(c).

SFAS No. 123,  Accounting for Stock Based  Compensation,  required entities that
continue to apply the  provision  of APB Opinion  No. 25 for  transactions  with
employees  to  provide  for forma net income  and pro forma  earnings  per share
disclosures for employee stock option grants made in 1995 and future years as if
the  fair-value  -based method defined in SFAS No. 123 had been applied to these
transactions.


<PAGE>


Notes to the Interim Consolidated Financial Statements
As at February 29, 2000
----------------------------------------------------------------------------

Note 2 - Significant Accounting Policies (continued)


j)  Foreign Currency Translation

The  functional  currency of the Company is the United States dollar and for its
Canadian subsidiary the forestindustry.com,  Inc. Canadian dollars. Transactions
in foreign  currencies  are  translated to United States dollars at the rates in
effect on the transaction date.  Exchange gains or losses arising on translation
or settlement of foreign currency denominated monetary items are included in the
consolidated statement of operations.

Note 3 - Acquisition

On January 31, 2000,  the Company  merged with  Forest.  The  acquisition  was a
reverse takeover with Forest being the deemed accounting  acquiror for financial
statement purposes.

Under the terms of agreement,  the Company issued  10,000,000  common shares for
all of the 100 common issued and outstanding shares of Forest. As at January 31,
2000, there were 4,927,040 common shares of the Company (after reflecting a 21:1
stock  consolidation  which  occurred on August 20, 1999 and a subsequent  stock
split of 1:40 which occurred on August 21, 1999).  The acquisition was accounted
for as a recapitalization of Forest. The transaction has been accounted for as a
capital  transaction  effectively  representing an issue of shares by Forest for
the net assets of the Company. On January 31, 2000 the net assets of the Company
consisted of:


      Cash and Cash Equivalents                  $ 750,000
      Accounts Payable                            (19,703)
                                              ------------

                                                 $ 730,297
                                              ------------


Total costs  related to this  recapitalization  transaction  were  estimated  at
$15,863.  They  include  cash  expense in the  estimated  amount of $15,000  and
non-cash  expense in the amount of $863.  The  non-cash  expense  relates to the
issuance  of 37,500  shares of common  stock of the  Company.  The fair value of
these  services was estimated  based upon the estimated fair value of the shares
at $0.023 per share.  Total  transaction costs have been recorded as a charge to
the stockholders' equity of the Company.

Cash and cash  equivalents  held by the Company in the amount of  $750,000  were
obtained through  subscriptions  for a private placement of 750 shares of Series
"A" Convertible  Preferred Stock at a price of $1,000 per share.  The closing of
this private  placement and the release of funds held in escrow were  contingent
on this acquisition  being  completed.  The shares of Series "A" preferred stock
are  convertible,  at the option of the holder,  and at any time after March 16,
2000,  into common stock at 75% of the last ten day average closing bid price of
the Company subject to a maximum conversion rate of 5,000 shares of common stock
for one share of preferred stock and a minimum  conversion rate of 250 shares of
common stock for one share of preferred  stock.  In addition,  if a registration
statement  in respect of the common  stock  underlying  the  preferred  stock is
effective,  all Series "A" preferred stock will be deemed to convert into common
stock on or before January 31, 2001, the first anniversary date.

The following table reflects  unaudited pro forma information which combines the
operations of  forestindustry.com,  Inc. for the nine months ended  February 29,
2000 and February 28, 1999 as if the acquisition of forestindustry.com, Inc. had
taken place at the beginning of the period.  There were no pro forma adjustments
required in combining  this  information  of these two entities.  This pro forma
information  does not  reflect  any  non-recurring  charges or credits  directly
attributable to the transaction.  This pro forma information does not purport to
be  indicative  of the  revenues  and net loss that could have  resulted had the
acquisition  been in effect for the period presented and is not intended to be a
projection of future results or trends.



<PAGE>




Notes to the Interim Consolidated Financial Statements
As at February 29, 2000
-----------------------------------------------------------------------------

Note 3 - Acquisition (continued)

                                                        Nine Months Ended
                                               February 29,      February 28,
                                                  2000              1999
                                                    $                 $

Revenues                                        264,144          178,323

Expenses

   Bad Debts                                     18,044            3,856
   Promotion and Trade Shows                     34,098            5,916
   General and Administrative                   103,562           35,207
   Professional Fees                             54,756           25,122
   Wages                                        169,158          105,122
                                             ------------------------------

Net Income (Loss) for the Period               (115,474)           3,100
                                             ----------------------------


Net Loss Per Share                                (0.01)               -
                                             =============================

Note 4 - Operating Line of Credit

The Company has a $10,347 (CDN $15,000) revolving  operating line of credit with
the Royal  Bank of  Canada.  The line of  credit is  payable  on  demand,  bears
interest  at prime plus  1.75% per annum  payable  monthly,  and is secured by a
general  security  agreement  over all assets of the  Company,  guarantees  by a
corporate shareholder and personal guarantee of the principals of the Company.

The line of  credit  was  paid  off in  March,  2000  and the  general  security
agreement as well as the guarantees have been removed.


Note 5 - Stockholders' Equity

a)  Preferred Stock

On January 31, 2000, the Company  issued through a private  placement 750 shares
of  Series  "A"  convertible  preferred  stock at a price of $1,000  per  share.
Holders of Series "A"  convertible  preferred stock are entitled to distribution
of $1,000 per share prior to any  distribution  to the holders of the  Company's
common stock in the event of any liquidation or dissolution of the Company.




<PAGE>




Notes to the Interim Consolidated Financial Statements
As at February 29, 2000
----------------------------------------------------------------------------


Note 5 - Stockholders' Equity (continued)

The Series "A" preferred stock is convertible,  at the option of the holder, and
at any time after March 16,  2000,  into common stock at 75% of the last ten day
average closing bid price of the Company subject to a maximum conversion rate of
5,000  shares of common  stock  for one share of  preferred  stock and a minimum
conversion rate of 250 shares of common stock for one share of preferred  stock.
In  addition,  if a  registration  statement  in  respect  of the  common  stock
underlying the preferred stock is effective, all Series "A" preferred stock will
be deemed to convert into common stock on or before  January 31, 2001, the first
anniversary date.

b)  Stock Options

In February,  2000, the Company  adopted a fixed stock option plan that provides
for the  issuance of  incentive  and  non-qualified  stock  options to officers,
directors and employees to acquire up to 250,000 shares of the Company's  common
stock.

The Board of Directors  determines the terms of the options  granted,  including
the number of options granted, the exercise price and the vesting schedule.  The
exercise price for qualified  incentive stock options is not to be less than the
fair  market  value of the  underlying  stock at the date of grant,  and to have
terms no longer than ten years from the date of grant.

On February 29, 2000, the Company  granted options to purchase a total of 31,000
shares of the Company's  common stock at a price of $4.00 per share to employees
of the  Company.  The  options  vest on or after  February  29,  2001 and expire
between February and April, 2005

c)  Stock-Based Compensation

In January,  2000,  the Company issued 37,500 shares of common stock in exchange
for services  relating to the acquisition of  forestindustry.com,  Inc. The fair
value of these services was estimated based upon the estimated fair value of the
shares at $0.023 per share or $863.  The costs were deducted from the additional
paid-in capital from the said acquisition.

In February,  2000, the Company recorded non-cash compensation expense of $8,050
related to the issuance of 350,000  shares of common stock to certain  employees
of the Company.  The fair value of the shares was  estimated at $0.023 per share
at the time of the transaction.


Note 6 - Commitments

a) The  Company  has  entered  into an  agreement  to lease  office  premises to
   September 30, 2001. The monthly lease payment is $2,679.

b) The  Company  has entered  into an  agreement  to lease a vehicle to March 9,
   2003.  The  monthly  lease  payment  is $529 with an option to  purchase  the
   vehicle at the end of the lease for $14,717.

c) The   Company   has  entered   into  an   agreement   to  lease  an  internet
   telecommunication  line to December 31, 2002.  The monthly  lease  payment is
   $959.





<PAGE>





Notes to the Interim Consolidated Financial Statements
As at February 29, 2000
-------------------------------------------------------------------------------

Note 6 - Commitments (continued)

d) The Company has entered  into a consulting  contract  with an  individual  to
   perform various investor relations and corporate development functions for an
   initial fee of $4,600,  which was settled by the  issuance of 200,000  common
   shares of the Company at $0.023 per share,  and a monthly fee of $2,414.  The
   contract term commenced on February 29, 2000 and continues until February 28,
   2001.

e) The Company has entered  into a consulting  contract  with an  individual  to
   perform  various  accounting  functions  for a  monthly  fee of  $1,655.  The
   contract term  commenced on February 15, 2000 and continues  until August 15,
   2000.

f) The Company has entered into an employment contract with the President of the
   Company for an annual salary of $51,738. The employment contract commenced on
   February 1, 2000 and continues until January 31, 2003.

g) The  Company  has  entered  into  an  employment   contract  with  the  Chief
   Information  Officer for a signing bonus of $3,450,  which was settled by the
   issuance of 150,000 common shares of the Company at $0.023 per share,  and an
   annual salary of $51,738.  The employment  contract commenced on February 29,
   2000 and continues until February 28, 2001.

h) The Company entered into an agreement dated March 1, 2000 for advertising and
   marketing  services for a term of three months  pursuant to which the Company
   agreed to pay total fees of $15,000.

Note 7 - Financial Instruments

Financial  instruments include cash and cash equivalents,  accounts  receivable,
operating  line of credit,  and accounts  payable and accrued  liabilities.  The
estimated fair value of such financial  instruments  approximates their carrying
value.





<PAGE>


    Item 2.Management's Discussion And Analysis And Plan Of Operations

            The  financial   information  contained  in  this  Quarterly  Report
     reflects the business operations of our wholly owned subsidiary, The Forest
     Industry  Online Inc. As a result of the acquisition of The Forest Industry
     Online Inc. on January 31, 2000,  as described  below,  we succeeded to the
     business operations of The Forest Industry Online Inc. On February 25, 2000
     we changed our name to forestindustry.com, Inc. from Autoeye, Inc. Prior to
     our acquisition of The Forest Industry Online Inc. we had not commenced any
     operational   activities  other  than  initial   corporate   formation  and
     capitalization.

            This discussion,  other than the historical  financial  information,
     may  consist  of   forward-looking   statements   that  involve  risks  and
     uncertainties,  including quarterly and yearly fluctuations in results, the
     timely   availability  of  new  communication   products,   the  impact  of
     competitive  products and services,  and the other risks and uncertainties,
     including  those  relating  to the  recent  acquisition  of a new  line  of
     business described below. These forward-looking statements speak only as of
     the date hereof and should not be given undue reliance.  Actual results may
     vary significantly from those projected.

     Overview

            We are in the  business of  providing  direct  customer  service and
     support to businesses,  individuals and organizations within the forest and
     wood product industries. Through our website, we have developed an internet
     based  community  that aides  businesses,  organizations,  and  individuals
     involved in the forest  industry to use the internet for  communication  as
     well as daily operations.

            Through and including  January 31, 2000, the period which  financial
     information  is  presented  herein,  we conducted  business  under the name
     "Autoeye Inc." During this period we were inactive and without  operations.
     Our sole business during that time was to locate a suitable business entity
     to acquire.

            On January 31, 2000,  we acquired all of the issued and  outstanding
     shares  of The  Forest  Industry  Online  Inc.  by way of a Share  Exchange
     Agreement, and subsequently changed our name to forestindustry.com, Inc. As
     a consequence of such acquisition, our President resigned and Joe Perraton,
     a principal of The Forest  Industry  Online Inc., was appointed  President.
     The Company has entered  into a three year  Employment  Agreement  with Mr.
     Perraton.  In  connection  with the  share  exchange,  the  Company  issued
     10,000,000  shares  of  common  stock  to the  shareholders  of The  Forest
     Industry  Online  Inc. in  exchange  for all of the issued and  outstanding
     shares of The Forest  Industry  Online Inc.  Also in  connection  with such
     transaction,  the  Company  authorized  and  issued  750  shares of a newly
     created  Series A  Convertible  Preferred  Stock at an  aggregate  price of
     $750,000.  For  accounting  purposes,  the  acquisition by us of The Forest
     Industry Online Inc. has been treated as a reverse acquisition.

            From its  inception  in 1997,  we have  grown to  approximately  500
     customers  as of February 29,  2000.  Approximately  70% of our clients are
     U.S.  companies  and the  majority of our other  clients  are from  Canada,
     Europe, Asia and Australasia.  An essential element of our business will be
     to expand the  internet  services we offer to  customers  and to obtain the
     rights to  proprietary  software  for the  hosting  of online  business  to
     business services. We will be seeking partnerships with electronic commerce
     providers to build the proprietary online lumber and equipment exchange.



<PAGE>





     Results of Operations

            During the nine months ending  February 29, 2000 revenues  increased
     by 48% over the prior  period as we added more  customers  to our  website.
     However,  during this same period expenses  increased by 125% over the nine
     months  ending  February 28, 1999  resulting in a loss of  $(107,588).  The
     increase  in  expenses  was  the  result  of an  expanded  advertising  and
     marketing  program  and the  addition of  customer  service  and  technical
     support personnel who were required due to our higher level of activity.


     Liquidity and Capital Resources


      During the nine  months  ending  February  29, 2000 our sources and use of
cash were:

                  Cash provided by operations                    $(47,593)

                  Payment of long term debt and bank
                    credit line                                   (60,860)

                  Loans repaid to Teaco Properties Ltd.           (71,229)
                    (a principal shareholder)

                  Loans repaid to other shareholders              (18,348)

                  Proceeds from sale of preferred stock           750,000

                  Purchase of Equipment                           (37,712)

                  Net increase in cash during the period         $514,258
                                                                 ========


       During the twelve months ending April 30, 2001 we anticipate that we will
     need capital for the following purposes:

                  Fund operating losses:                        $1,000,000
                  Sales and marketing:                             100,000
                  Expansion of Internet Services                   150,000
                  Establishment of our Lumber and
                    Equipment Exchange:                            300,000
                                                                  --------
                                                                 1,550,000
                                                                 =========

       We expect our expenses will  continue to increase  during the next twelve
months as a result of  increased  marketing  expenses  and the  expansion of our
online services.

       We plan to develop the Lumber and Equipment Exchange,  or LEE, which will
conduct  auctions of lumber,  equipment  and other wood products by means of the
internet. To establish the Lumber and Equipment Exchange we will need to license
from a third party the computer  software  systems needed to operate an internet
based auction site. We will earn  commissions on any sales made through the LEE.
We anticipate that the LEE will be operational by July, 2000.

<PAGE>

       We expect that we can obtain a license for the computer system needed for
the LEE for  approximately  $300,000.  In the  alternative,  we may  attempt  to
establish a joint  venture or similar  arrangement  with a company which has the
rights to such a computer system,  in which case the initial cost of the license
would be less but we would be  reuquired  to share any revenues we earn from the
LEE with our joint venture partner. As of March 31, 2000 we had not obtained any
license for the  computer  programs  which will be  required  for our Lumber and
Equipment Exchange.

       As of February 29, 2000 we had working capital of $483,081. We anticipate
obtaining the additional capital which we will require through revenues from our
operations and through a combination of debt and equity  financing.  There is no
assurance  that  we will be able to  obtain  capital  we will  need or that  our
estimates of our capital requirements will prove to be accurate.  As of the date
of this  prospectus we did not have any  commitments  from any source to provide
additional capital.



<PAGE>


                                     PART II


                                Other Information


      Item 2.  Changes in Securities

      During the three months ended February 29, 2000 we:

o    Issued  10,000,000  shares of common stock to three  persons in  connection
     with the acquisition of The Forest Industry Online, Inc.

o    Issued  387,500  shares  of  common  stock to three  persons  for  services
     rendered, and

o    Sold 750 shares of our  preferred  stock to three  persons for  $750,000 in
     cash.

      The shares of common  stock  issued or sold during the quarter were issued
or sold in reliance upon the exemption  provided by Section 4(2) of the Act. The
persons  who  acquired  these  shares were either  accredited  or  sophisticated
investors. The shares of common stock were acquired for investment purposes only
and without a view to  distribution.  The persons who acquired these shares were
fully informed and advised about matters  concerning the Company,  including the
Company's  business,  financial affairs and other matters.  The persons acquired
these shares for their own accounts. The certificates representing the shares of
common  stock bear legends  stating that the shares may not be offered,  sold or
transferred other than pursuant to an effective registration statement under the
Securities   Act  of  1933,  or  pursuant  to  an  applicable   exemption   from
registration.  The shares are "restricted"  securities as defined in Rule 144 of
the Securities and Exchange Commission.

      All sales of the Series A preferred  stock were  exempt from  registration
pursuant to Rule 506 of the  Securities and Exchange  Commission.  All shares of
the  preferred  stock were acquired for  investment  purposes only and without a
view to  distribution.  All of the persons who acquired the  Company's  Series A
preferred  stock were fully  informed and advised about matters  concerning  us,
including our business,  financial affairs and other matters.  The purchasers of
the Company's  Series A preferred  stock  acquired the  securities for their own
accounts. The certificates  evidencing the Series A preferred stock bear legends
stating that they may not be offered, sold or transferred other that pursuant to
an  effective  registration  statement  under  the  Securities  Act of 1933,  or
pursuant to an applicable  exemption from  registration.  All Series A preferred
shares  are  "restricted"  securities  as  defined  in Rule 144 of the Rules and
Regulations of the Securities and Exchange Commission.

    Item 6. Exhibits and Reports on Form 8-K

    The Exhibits in the  following  table have been filed as part of this Report
    on Form 10-QSB:

            Exhibit Number                            Description of Exhibit

            27                                       Financial data schedule



<PAGE>


    Reports on Form 8-K:

1.   On February 15,  2000,  the Company  filed a Current  Report on Form 8-K to
     report (i) the closing of its  acquisition  of The Forest  Industry  Online
     Inc. and (ii) the closing of a private placement of securities.

2.   On February 16, 2000, the Company  amended the 8-K Report filed on February
     15, 2000

3.   On March 8, 2000,  the Company filed a Current Report on Form 8-K to report
     (i) a change in its independent  certified  public  accountant and (ii) the
     change of the name of the Company to forestindustry.com, Inc.




<PAGE>


                                   SIGNATURES


            In  accordance  with  the  requirements  of the  Exchange  Act,  the
    registrant caused this report to be signed on its behalf by the undersigned,
    thereunto duly authorized.


                                   forestindustry.com, Inc.

Date:   April 14, 2000          /s/ Joe Perraton
                                   ------------------------------
                                   Joe Perraton,  President,
                                   (Principal Financial and Accounting Officer)



<PAGE>







                            forestindustry.com, Inc.



                                   FORM 10-QSB

                        QUARTER ENDING FEBRUARY 29, 2000


                                   EXHIBIT 27