U.S. 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, 2000

( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the transition period from                 to
                              ----------------    ----------------

Commission File Number:
                        ------------

                               2U ONLINE.COM, INC.
                               -------------------
             (Exact name of registrant as specified in its charter)

DELAWARE                                                              52-2132622
--------                                                              ----------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

1288 Alberni Street, Suite 806, Vancouver, British Columbia, Canada      V6E 4N5
--------------------------------------------------------------------------------
(Address of registrant's principal executive offices)                 (Zip Code)

                                  604.664.0484
                                  ------------
              (Registrant's Telephone Number, Including Area Code)



                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practical date. As of September 30, 2000, there were
31,557,500 shares of the issuer's $.0001 par value common stock issued and
outstanding.





                                       1
<PAGE>







ITEM 1.  Financial Statements

                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                           (unaudited)
                                                                             September      December 31,
                                                                              30, 2000              1999
---------------------------------------------------------------------- ---------------- -----------------
<S>                                                                           <C>                <C>
                                     ASSETS
CURRENT ASSETS
    Cash                                                                      $ 28,409          $ 65,735
    Taxes recoverable                                                                -             1,050
    Accounts Receivable                                                        144,076                 -
    Prepaids and deposits                                                       16,250            70,000
    Loan receivable                                                             10,000            10,000
    Due from related parties                                                     2,000             2,000
    Holdback Receivable (Note 7)                                               116,362                 -
    Current Portion of Service Contracts (Note 4)                              208,248                 -
---------------------------------------------------------------------- ---------------- -----------------

                                                                               525,345           148,875
---------------------------------------------------------------------- ---------------- -----------------

INVESTMENT IN ASDAR GROUP (Note 3)                                           1,835,000                 -
SERVICE CONTRACTS (Note 4)                                                     247,920                 -
TECHNOLOGY LICENSE (Note 5)                                                    600,000           600,000
FURNITURE AND EQUIPMENT, net of depreciation                                    31,135            27,014
WEBSITE DEVELOPMENT COSTS                                                      315,058           126,876
OTHER INTANGIBLE ASSETS                                                         35,189            35,189
INTEREST IN OIL & GAS PROPERTY (Note 6)                                              -           315,000
---------------------------------------------------------------------- ---------------- -----------------

                                                                           $ 3,589,647       $ 1,252,864
====================================================================== ================ =================

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Accounts payable and accrued liabilities                                  $ 195,531          $ 50,300
   Holdbacks payable (Note 7)                                                  174,543                 -
---------------------------------------------------------------------- ---------------- -----------------

                                                                               370,074            50,300
---------------------------------------------------------------------- ---------------- -----------------

MINORITY INTEREST                                                               52,504            75,217
---------------------------------------------------------------------- ---------------- -----------------

STOCKHOLDERS' EQUITY
   Common stock, $.0001 par value, 100,000,000 shares authorized                 3,156             2,588
      2000 - 31,557,500, 1999 - 25,877,500 issued and outstanding
   Additional paid-in capital                                                7,969,517         5,557,585
   Deficit accumulated during the development stage                         (4,805,604)       (4,432,826)
---------------------------------------------------------------------- ---------------- -----------------

                                                                             3,167,069         1,127,347
---------------------------------------------------------------------- ---------------- -----------------

                                                                           $ 3,589,647       $ 1,252,864
====================================================================== ================ =================
</TABLE>






The accompanying notes are an integral part of these consolidated financial
statements


                                       2
<PAGE>





                               2U ONLINE.COM, INC.
                          (formerly Power Direct, Inc.)
                          (A Development Stage Company)

                      CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                            (unaudited)      (unaudited)                           (unaudited)
                                                                 Three                                           September 13,
                                                                Months        Nine Months         Year ended              1993
                                                                 Ended              Ended           December    (Inception) to
                                                             September          September           31, 1999     September 30,
                                                              30, 2000           30, 2000                                 2000
------------------------------------------------------ ----------------- ----------------- ----------------- -----------------
REVENUES
     Processing Fees (Note 7)                                 $  36,739         $ 153,330      $          -         $ 153,330
------------------------------------------------------ ----------------- ----------------- ----------------- -----------------
<S>                                                                <C>             <C>                 <C>              <C>
GENERAL AND ADMINISTRATIVE EXPENSES
     Advertising and marketing                                      267             8,190            46,757            54,947
   Depreciation                                                   1,785             5,410             4,768            10,178
   Consulting fees                                               19,708            81,685           557,103           638,788
   Investor relations                                            52,062           174,832            15,772           190,604
   Management fees                                               13,735            40,972           247,304           288,276
   Office and general                                            10,895            75,101            73,406           160,304
   Professional fees                                              9,952            85,938            80,619           166,557
   Stock-based compensation                                           -                 -           253,669           253,669
    Travel and accommodation                                      9,246            35,721            88,976           124,697
    Wages and benefits                                           13,735            40,972            12,310            53,282
    Write-down of URL acquisition costs                               -                 -           662,646           662,646
    Write-down of URLs                                                -                 -           961,358           961,358
    Write-down of technology license                                  -                 -         1,455,938         1,455,938
    Write-off of other assets                                         -                 -           145,186           145,186
------------------------------------------------------ ----------------- ----------------- ----------------- -----------------
                                                                131,385           548,821         4,605,812         5,166,430
------------------------------------------------------ ----------------- ----------------- ----------------- -----------------

LOSS BEFORE THE FOLLOWING                                       (94,646)         (395,491)       (4,605,812)       (5,013,100)

MINORITY INTEREST IN LOSS FOR THE PERIOD                          5,025            22,713           404,761           427,474
------------------------------------------------------ ----------------- ----------------- ----------------- -----------------

NET LOSS FOR THE PERIOD                                       $ (89,621)       $ (372,778)     $ (4,201,051)     $ (4,585,626)
====================================================== ================= ================= ================= =================

BASIC NET LOSS PER SHARE                                      $ (0.0029)        $(0.0123)         $(0.2466)
====================================================== ================= ================ =================

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                   30,393,011       30,393,011        17,033,246
====================================================== ================= ================ =================
</TABLE>




The accompanying notes are an integral part of these consolidated financial
statements


                                       3
<PAGE>






                               2U ONLINE.COM, INC.
                          (formerly Power Direct, Inc.)
                          (A Development Stage Company)
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
     FOR THE PERIOD FROM SEPTEMBER 13, 1993 (INCEPTION) TO SEPTEMBER 30,2000
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                                          Deficit
                                                                                                        accumulated
                                                                                                         during the
                                                       Number of shares                 Additional      development
                                                                           Amount     Paid In Capital      stage           Total
------------------------------------------------------ ----------------- ------------ ---------------- --------------- ------------
Balance, December 31, 1995, 1996 and 1997                     6,000,000       $  600          $   400      $  (1,000)      $     -
Net loss for the year ended December 31, 1998                         -            -                -        (10,797)     (10,797)
------------------------------------------------------ ----------------- ------------ ---------------- --------------- ------------
<S>                                                             <C>              <C>              <C>        <C>          <C>
Balance, December 31, 1998                                    6,000,000          600              400        (11,797)     (10,797)

Common stock issued for services                              1,370,000          137          465,863               -      466,000

Common stock issued for finder's fee                          1,200,000          120          359,880               -      360,000

Common stock issued for technology license                    6,000,000          600        1,799,400               -    1,800,000

Common stock issued for cash on exercise of Warrants
                                                              1,380,000          138          389,862               -      390,000

Warrants issued for URL purchase                                      -            -          549,004               -      549,004

Common stock issued for acquisition of URL's                  2,200,000          220          659,780               -      660,000

Common stock issued for cash and management
renumeration                                                    600,000           60          179,940               -      180,000

Common stock issued for cash-net of commissions               7,127,500          713          899,787               -      900,500

Stock-based compensation                                              -            -          253,669               -      253,669

Dividends                                                             -            -                -       (219,978)    (219,978)

Net loss for the year ended December 31,1999                          -            -                -     (4,201,051)  (4,201,051)
------------------------------------------------------ ----------------- ------------ ---------------- --------------- ------------

Balance, December 31, 1999                                   25,877,500        2,588        5,557,585     (4,432,826)    1,127,347
------------------------------------------------------ ----------------- ------------ ---------------- --------------- ------------
Common Stock issued for cash-exercise of warrants             1,130,000          113          282,387               -      282,500

Common Stock issued for services                                750,000           75          609,925               -      610,000

Common Stock issued for acquisition of interest in            3,800,000          380        1,519,620               -    1,520,000
Oil & Gas Property

Net             loss             for               the           period            -                -        (372,778)    (372,778)
-
------------------------------------------------------------------------ ------------ ---------------- --------------- ------------

Balance, September 30, 2000                                  31,557,500     $  3,156     $  7,969,517   $  (4,805,604)  $ 3,167,069
====================================================== ================= ============ ================ =============== ============
</TABLE>


The accompanying notes are an integral part of these consolidated financial
statements


                                       4
<PAGE>








                               2U ONLINE.COM, INC.
                          (formerly Power Direct, Inc.)
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                   (unaudited)     (unaudited)                          (unaudited)
                                                                       Three                                          September 13,
                                                                      Months       Nine Months       Year ended                1993
                                                                       Ended             Ended        December       (Inception) to
                                                                   September         September        31, 1999        September 30,
                                                                    30, 2000          30, 2000                                 2000
--------------------------------------------------------------- --------------- --------------- ----------------- -----------------
<S>                                                                   <C>               <C>              <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss for the period                                           $  (89,621)      $(372,778)      $(4,201,051)      $(4,585,626)
  Adjustments to reconcile net loss to net cash from operating
activities:
  - amortization and depreciation                                        1,785           5,410             4,768            10,178
  - consulting fees paid for with common shares                              -               -           465,950           465,950
  - management fees paid for with common shares                              -               -           224,000           224,000
   - investors relations fees paid for with common shares               52,062         138,732                 -           138,732
   - stock-based compensation                                                -               -           253,669           253,669
   - non-cash component of URL write-down                                    -               -         1,179,004         1,179,004
  - write-down of technology license                                         -               -         1,455,938         1,455,938
   - minority interest in loss for the period                            5,025         (22,713)         (404,761)         (427,474)
--------------------------------------------------------------- --------------- --------------- ----------------- -----------------
                                                                       (40,799)       (251,349)       (1,022,483)       (1,285,629)
   - net changes in working capital items                              (54,420)        117,424            24,300           141,724
--------------------------------------------------------------- --------------- --------------- ----------------- -----------------

CASH USED IN OPERATING ACTIVITIES                                      (95,219)       (133,925)         (998,183)       (1,143,905)
--------------------------------------------------------------- --------------- --------------- ----------------- -----------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Investment in Rising Phoenix                                               -               -           (75,000)          (75,000)
  Technology license                                                         -               -          (135,938)         (135,938)
  Acquisition of furniture and equipment                                     -          (9,301)          (31,782)          (41,083)
  Website development costs                                            (54,963)       (188,182)         (126,876)         (315,058)
    Other intangible assets                                                  -               -            (5,189)           (5,189)
    Cash acquired on acquisition of Cardstakes.com, Inc.                     -               -           210,000           210,000
--------------------------------------------------------------- --------------- --------------- ----------------- -----------------

CASH FLOWS FROM INVESTING ACTIVITIES                                   (54,963)       (197,483)         (164,785)         (362,268)
--------------------------------------------------------------- --------------- --------------- ----------------- -----------------

CASH FLOWS FROM FINANCING ACTIVITIES
   Disposition of furniture and equipment                                    -          11,582                 -            11,582
  Advances to related party                                                  -               -           (70,043)          (57,000)
  Net proceeds on sale of common stock                                       -         282,500         1,296,500         1,580,000
--------------------------------------------------------------- --------------- --------------- ----------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES                                         -         294,082         1,226,457         1,534,582
--------------------------------------------------------------- --------------- --------------- ----------------- -----------------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
                                                                      (150,182)        (37,326)           63,489            28,409

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                         178,591          65,735             2,246                 -
--------------------------------------------------------------- --------------- --------------- ----------------- -----------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                              $ 28,409        $ 28,409          $ 65,735          $ 28,409
=============================================================== =============== =============== ================= =================
</TABLE>




The accompanying notes are an integral part of these consolidated financial
statements

                                       5
<PAGE>








                               2U ONLINE.COM, INC.
                          (formerly Power Direct, Inc.)
                          (A Development Stage Company)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               September 30, 2000
--------------------------------------------------------------------------------

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION
--------------------------------------------------------------------------------

The Company was incorporated on September 13, 1993 in the State of Delaware as
Power Direct, Inc. On January 31, 2000 the Company changed its name to 2U
Online.com, Inc to reflect management's decision to shift the Company's focus
from oil and gas exploration and development to internet-based business
development.

The consolidated financial statements have been prepared on the basis of a going
concern which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business. The Company and its subsidiaries
are in the development stage, have not generated any revenues or completed
development of any commercially acceptable products or services to date and
further significant losses are expected to be incurred in developing its
business. The recoverability of the carrying value of assets and ability of the
Company to continue as a going concern is dependent on raising additional
capital and ultimately on generating future profitable operations.


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
--------------------------------------------------------------------------------

Principles of Consolidation
The financial statements include the accounts of the Company and its
subsidiaries, a 59% interest in Cardstakes.com (incorporated on February 19,
1999), a 100% interest in PD Oil & Gas, Inc., and a 100% interest in
Cardstakes.com Enterprises Ltd.

Use of Estimates and Assumptions
Preparation of the Company's financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly,
actual results could differ from those estimates.

Cash and Cash Equivalents
The Company considers all liquid investments, with an original maturity of three
months or less when purchased, to be cash equivalents.

Technology license
The Company has capitalized the costs of acquiring its technology license from
Compte De Sierge Accomodative Corp. (Note 5). At December 31, 1999 the Company
recorded an impairment provision of $1,455,938 due to the uncertainty of
recoverability of the carrying value. The net carrying value of $600,000 will be
amortized over five years on a straight-line basis upon commercial application
of the technology.

Website Development Costs
The Company accounts for website development costs in accordance with EITF 00-02
whereby preliminary website development costs are expensed as incurred. Upon
achieving technical viability and adequate financial resources to complete
development, the company capitalizes all direct costs relating to the website
development. Ongoing costs





                                       6
<PAGE>






for maintenance and enhancement are expensed as incurred. Capitalized costs will
be amortized on a straight-line basis over five years commencing upon
substantial completion and commercialization of the website.



                               2U ONLINE.COM, INC.
                          (formerly Power Direct, Inc.)
                          (A Development Stage Company)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               September 30, 2000
--------------------------------------------------------------------------------

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (con't)

Intangible Assets
Intangible assets consist of licence fees and acquisition costs of Universal
Resource Locators ("URL's"). The Company reviews the carrying amount of
intangible assets for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. The determination of
any impairment would include a comparison of estimated future operating cash
flows anticipated to be generated during the remaining life with the net
carrying value of the asset.

Furniture and Equipment
Furniture and equipment is carried at acquisition cost less accumulated
depreciation on a 30% declining balance basis.

Revenue Recognition
Fees generated from processing credit card transactions are recorded as earned,
net of holdback amounts held in reserve. Chargebacks are charged to the holdback
account and any excess is charged against revenue. In accordance with SAB 101
the Company records only the net revenues generated from credit card processing.

Foreign Currency Translation
The financial statements are presented in United States dollars. In accordance
with Statement of Financial Accounting Standards No. 52, "Foreign Currency
Translation", foreign denominated monetary assets and liabilities are translated
to their United States dollar equivalents using foreign exchange rates which
prevailed at the balance sheet date. Revenue and expenses are translated at
average rates of exchange during the year. Related translation adjustments are
reported as a separate component of stockholders' equity, whereas gains or
losses resulting from foreign currency transactions are included in results of
operations.

Net Loss per Common Share
Basic earnings per share includes no dilution and is computed by dividing income
available to common stockholders by the weighted average number of common shares
outstanding for the period. Dilutive earnings per share reflects the potential
dilution of securities that could share in the earnings of the Company. As of
September 30, 2000, there were 1,250,000 exercisable options and 1,390,000
common stock warrants that can be converted into a total of 2,640,000 shares of
common stock. As these options and warrants would have an antidilutive effect on
the presentation of loss per share, a diluted loss per share calculation is not
presented.

Long-term Investments
The Company follows the equity method of accounting for its investments in
companies in which it owns more than 20% and less than 50% and over which it
exercises significant influence. Under this method, the Company includes its
share of th earnings or losses of these affiliated companies. The Company's
initial share of earnings or losses of Asdar Group will be reflected in the last
quarter of the 2000 year.





                                       7
<PAGE>




Recent Accounting Pronouncements
On March 31, 2000, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No.44, Accounting for Certain Transactions Involving Stock
Compensation - An Interpretation of APB Opinion No. 25 ("FIN 44"), which
provides guidance as to certain applications of APB 25. FIN 44 is generally
effective July 1, 2000 with the exception of certain events occurring after
December 15, 1998. The Company has not yet determined what impact, if any, the
implementation of this standard will have on its financial statements.



                               2U ONLINE.COM, INC.
                          (formerly Power Direct, Inc.)
                          (A Development Stage Company)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               September 30, 2000
--------------------------------------------------------------------------------

In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement
No. 133, Accounting for Derivative Instruments and Hedging Activities ("SFAS
133"), which establishes accounting and reporting standards for derivative
instruments, including instruments embedded in other contracts, and hedging
activities. It requires that an entity recognize all derivatives; as either
assets or liabilities and measure those instruments at fair value. SFAS 133 is
effective for financial statements for fiscal years beginning after June 15,
1999. The Company does not expect that the implementation of this standard will
have a material impact on its financial statements.


NOTE 3 - INVESTMENT IN ASDAR GROUP
--------------------------------------------------------------------------------

On September 20, 2000, the Company entered into an Asset and Purchase Agreement
with ASDAR Group, a Nevada Corporation ("ASDAR"). Pursuant to the Agreement,
ASDAR purchased all of the Registrant's title and interest in the Wyoming
Property. In exchange, ASDAR issued 5,000,000 of its common stock to the
Company, representing approximately a 48% interest in ASDAR. The President and a
director of the Company is the Secretary and a director of ASDAR. In addition, a
shareholder of the Company was issued 475,000 shares of ASDAR's common stock as
a finder's fee for services relating to the agreement.

The Company accounts for its investment in Asdar Group using the equity method
of accounting and the cost of this investment has been recorded at carrying
value of the oil & gas properties exchanged for the 5,000,000 common shares.


NOTE 4 - SERVICE CONTRACTS
--------------------------------------------------------------------------------

On January 28, 2000, the Company entered into an agreement with Bisell
Investments, Inc., with a 2-year term, whereby Bisell will provide investor
relations services to the Company (valued at $297,500) in exchange for 350,000
shares of the Company's common stock.
(issued)

On January 28, 2000, the Company entered into an agreement with Palisades
Financial Ltd. with a 5-year term, whereby Palisades will provide investment
banking services to the Company (valued at $297,500) in exchange for 350,000
shares of the Company's common stock.
(issued)





                                       8
<PAGE>






NOTE 5 - TECHNOLOGY LICENSE
--------------------------------------------------------------------------------

On April 28, 1999, the Company entered into a licensing agreement ("Compte
Agreement") with Compte De Sierge Accommodative Corp., a corporation
incorporated in Panama City, Panama ("Compte De Sierge"). Compte De Sierge
worked in association with a group of programmers doing business as E-Card. The
Compte Agreement specifies, among other things, that the Company will have the
worldwide right to utilize and commercially exploit certain software systems and
related proprietary technology relating to the operation of the Greeting Card
Lotto, hereinafter referred to as "CardStakes.com".


                               2U ONLINE.COM, INC.
                          (formerly Power Direct, Inc.)
                          (A Development Stage Company)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               September 30, 2000
--------------------------------------------------------------------------------


The Compte Agreement provides that the Company may grant sub-licenses in the
proprietary technology on terms agreeable to Compte De Sierge. On June 15, 1999,
the Company and CardStakes.com entered into a sub-licensing agreement whereby
CardStakes.com acquired the world-wide exclusive sub-license to produce the
Cardstakes.com website using the proprietary technology.

In exchange for the rights in the Compte Agreement, CardStakes.com issued to the
Company 9,126,531 shares of CardStakes.com's $.0001 par value common stock
representing a 59% controlling interest.

At September 30, 2000, the carrying value of the license is recorded at the
estimated net realizeable value of $600,000.


NOTE 6 - CAPITAL STOCK
--------------------------------------------------------------------------------

The Company's capitalization is 100,000,000 common shares with a par value of
$.0001 per share.

In 1999 the Board of Directors authorized the grant of stock options to certain
officers, directors and consultants to purchase 1,250,000 common shares at a
price of $.25 per share to October 23, 2000 and 250,000 common shares at a price
of $.25 per share to April 23, 2001. As of September 30, 2000, no options had
been exercised or forfeited and no options had expired or been exercised.

In addition, warrants are outstanding to purchase 1,000,000 common shares at a
price of $.30 per share to October 29, 2000, 230,000 common shares at a price of
$.25 per share to July 15, 2000, and 260,000 common shares at a price of $.25
per share to November 15, 2001.


NOTE 7 - CREDIT CARD PROCESSING
--------------------------------------------------------------------------------

In mid-August, 1999, the Company had set up a merchant account for the
processing of VISA and Mastercard transactions with MPact Immedia Transaction
Services Ltd. The Company would be charged a transaction processing fee of 5.75%
and a 6-month revolving reserve fund of 10% by MPact.




                                       9
<PAGE>






This processing account was set up initially to accommodate the purchase of the
Company's Internet Greeting Cards. In early December, 1999, with the
management's decision to provide the Company's "Internet" Greeting cards at no
cost to the consumer, the processing account was to be utilized solely for the
purchase of merchandise from the 2U Online.com cybermall site.

In mid-December, 1999, the Company's management was approached by a number of
clients looking for credit card processing sources and the Company's management
agreed in late December of 1999, to utilize the Company's merchant account,
beginning in early January 2000, to generate revenue from credit card
processing.





                               2U ONLINE.COM, INC.
                          (formerly Power Direct, Inc.)
                          (A Development Stage Company)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               September 30, 2000
--------------------------------------------------------------------------------

The Company made an offer whereby the above clients would be charged a 15% to
20% transaction fee on all approved credit card transactions as well as a 15%
reserve to accommodate any charge backs and to minimize the element of risk to
any possible reversals. This 15% reserve is a 6-month revolving reserve whereby
the 1st month reserves (total of reserves held from day 1 to day 30/31
inclusive) are paid out in 6 months plus 1 day.


NOTE 8 - RELATED PARTY TRANSACTIONS
--------------------------------------------------------------------------------

The Company paid cash to directors for management fees totalling $40,972 for the
nine months ended September 30, 2000. At September 30, 2000, $26,000 is owing to
one director which is included in accounts payable.

During the nine months ended September 30, 2000, a company controlled by a
significant shareholder received $71,124 for consulting and other services and
reimbursement of expenses incurred on behalf of the Company.

At September 30, 2000, an amount of $2,000 is owing from a director.


NOTE 9 - INCOME TAXES
--------------------------------------------------------------------------------

There were no temporary differences between the Company's tax and financial
bases, except for the Company's net operating loss carryforwards amounting to
approximately $1,669,000 at September 30, 2000. These carryforwards will expire,
if not utilized, beginning in 2013.




                                       10
<PAGE>







NOTE 10 - COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------

Fair Value of Financial Instruments
The following disclosure of the estimated fair value of financial instruments is
made in accordance with the requirements of SFAS No. 107. Disclosures about Fair
Value of Financial Instruments. The estimated fair value amounts have been
determined by the Company, using available market information and appropriate
valuation methodologies. The fair value of financial instruments classified as
current assets or liabilities including cash and cash equivalents and notes and
accounts payable approximate carrying value due to the short-term maturity of
the instruments.

Concentration of Credit Risk
The Company invests its cash and certificates of deposit primarily in deposits
with major banks. Certain deposits, at times, are in excess of federally insured
limits. The Company has not incurred losses related to its cash.







ITEM 2.           Plan of Operation

This following information specifies certain forward-looking statements of
management of the company. Forward-looking statements are statements that
estimate the happening of future events and are not based on historical fact.
Forward-looking statements may be identified by the use of forward-looking
terminology, such as "may", "shall", "will", "could", "expect", "estimate",
"anticipate", "predict", "probable", "possible", "should", "continue", or
similar terms, variations of those terms or the negative of those terms. The
forward-looking statements specified in the following information have been
compiled by our management on the basis of assumptions made by management and
considered by management to be reasonable. Our future operating results,
however, are impossible to predict and no representation, guaranty, or warranty
is to be inferred from those forward-looking statements.

The assumptions used for purposes of the forward-looking statements specified in
the following information represent estimates of future events and are subject
to uncertainty as to possible changes in economic, legislative, industry, and
other circumstances. As a result, the identification and interpretation of data
and other information and their use in developing and selecting assumptions from
and among reasonable alternatives require the exercise of judgment. To the
extent that the assumed events do not occur, the outcome may vary substantially
from anticipated or projected results, and, accordingly, no opinion is expressed
on the achievability of those forward-looking statements. No assurance can be
given that any of the assumptions relating to the forward-looking statements
specified in the following information are accurate, and we assume no obligation
to update any such forward-looking statements.

Our Business. We were incorporated in 1993 as Power Direct, Inc., and we changed
our name to 2U Online.com, Inc. on or about January 31, 2000. We currently
generate revenues by earning processing fees by providing credit card
transaction services.

In mid-August, 1999, we set up a merchant account for the processing of VISA and
Mastercard transactions with MPact Immedia Transaction Services Ltd. ("MPact").
We agreed we would be charged a transaction processing fee of 5.75% and maintain
a 6-month revolving reserve fund of 10% by MPact.




                                       11
<PAGE>





This processing account was set up initially to accommodate purchases of our
Internet Greeting Cards through CardStakes.com, Inc. In early December, 1999, we
decided to provide the "Internet" greeting cards to the consumer at no cost and
decided that the processing account was to be utilized solely for the purchase
of merchandise from our 2U Online.com cybermall site.

In mid-December, 1999, we were approached by a number of clients looking for
credit card processing sources and we agreed in late December of 1999, to
utilize our merchant account, beginning in early January 2000, to generate
revenue from credit card processing.

We made an offer whereby participating clients would be charged a 15% to 20%
transaction fee on all approved credit card transactions as well as a 15%
reserve to accommodate any charge backs and to minimize the element of risk to
any possible reversals. This 15% reserve is a 6-month revolving reserve whereby
the 1st month reserves (total of reserves held from day 1 to day 30/31
inclusive) are paid out in 6 months plus 1 day.

We hope to eventually operate a cybermall comprised of multiple Internet sites
offering consumers a variety of unique online services including, but not
limited to, e-mail greeting cards featuring scratch-and-win coupons and
discounts. Our proposed websites will offer other products, including, but not
limited to, jewelry, flowers, chocolate and original art.

Our initial focus was on the development of oil gas properties. In this regard,
we purchased interests in two properties: one in the United States (the "Wyoming
Property") and one in Canada (the "Alberta Property"). In or about December
1999, we began to review our business direction. We identified the "Internet" as
a profitable business opportunity. We determined that it was in our best
interest and the best interests of our shareholders to focus on "Internet"
projects and put the oil and gas projects on hold.

Subsequently, we determined that Internet-related activities could provide a
potentially profitable revenue stream sooner than oil and gas producing
activities. In or about April 1999, we entered into a licensing agreement with
Compte De Sierge Accommodative Corp., a Panama corporation, whereby we acquired
the worldwide right to utilize their Greeting Card software on the
CardStakes.com website in exchange for 6,000,000 shares of our stock. We also
purchased several websites to eventually create a network of Internet locations.
On or about July 15, 1999, we purchased superstakes.com, supercard.com, and
chinastakes.net from J&S Overseas Holdings in exchange for cash and warrants. On
or about September 1, 1999, we purchased e-cardlotto.net and cardlotto.net from
Holm Investment Ltd, a Canadian corporation in exchange for warrants.

On or about November 19, 1999, we purchased thankyou2u.com, homeaccents2u.com,
and necessities2u.com from May Joan Liu in exchange for shares of our common
stock.

On or about November 24, 1999, we purchased gaming2u.com, weddings2u.com,
essentials2u.com, and theorient2u.com from CardTek (International) Holdings
Ltd., a Gibraltar corporation, in exchange for shares of our common stock.

On or about November 25, 1999, we purchased things2u.com and arrangements2u.com
from Richard Angelo Holmes in exchange for shares of our common stock.


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On or about November 25, 1999, we purchased website2u.com and gourmet2u.com from
Cybermall Consulting Services Ltd., a Bahamian corporation in exchange for
shares of our common stock.

During the third quarter of 2000, we decided to divest our oil and gas
interests. On or about September 20, 2000, we signed an agreement with ASDAR
Inc. ("Asdar"), a Nevada corporation, trading on the Over-the-Counter Bulletin
Board. Pursuant to our agreement with Asdar, we sold all of our working interest
in the oil and natural gas interests in the Wyoming Property to Asdar for
5,000,000 shares of Asdar's $0.001 par value common stock. We valued the
5,000,000 shares at $1,835,000.

Our Subsidiary--CardStakes.com, Inc. On April 28, 1999, we entered into a
licensing agreement ("Compte Agreement") with Compte De Sierge Accommodative
Corp., a corporation incorporated in Panama City, Panama ("Compte De Sierge").
Compte De Sierge worked in association with a group of programmers doing
business as E-Card. Under the Compte Agreement we were granted the worldwide
right to utilize and commercially exploit certain software systems and related
proprietary technology relating to the operation of a greeting card Internet
business, hereinafter referred to as "CardStakes.com".

The Compte Agreement also provides that we may grant sub-licenses in the
proprietary technology on terms agreeable to Compte De Sierge. On June 15, 1999,
we entered into a sub-licensing agreement with CardStakes.com, Inc., whereby
CardStakes.com, Inc., acquired the world-wide exclusive sub-license to produce
the Cardstakes.com website using the proprietary technology.

In exchange for the rights in the Compte Agreement, CardStakes.com, Inc., issued
us 9,126,531 shares of CardStakes.com, Inc.'s, $.0001 par value common stock
representing a 59% controlling interest in CardStakes.com, Inc.

Our Subsidiary - PD Oil & Gas, Inc. Our subsidiary, PD Oil & Gas, Inc., was
inactive during the quarter ending September 30, 2000.

Our Subsidiary - CardStakes.com Enterprises Ltd. Our subsidiary, CardStakes.com
Enterprises Ltd., was inactive during the quarter ending September 30, 2000.

Liquidity and Capital Resources. For the period ended September 30, 2000, we had
total assets of $3,589,647, including cash resources of $28,409, accounts
receivable of $144,076, prepaids and deposits of $16,250, a loan receivable of
$10,000, $2,000 due from a related party, and $116,362 in a holdback receivable,
and $208,248 represented by the current portion of service contracts. We also
had $1,835,000 which is represented by the investment in the ASDAR Group,
$247,920 for service contracts, $600,000 for technology license, $31,135
equipment depreciation, $315,058 for website development costs and $35,189 for
other intangible assets. The cash and equivalents constitute our present sources
of liquidity.

At September 30, 2000, we had current liabilities of $370,074, of which $195,531
was represented by accounts payable and accrued liabilities, and $174,543
represented by holdbacks payable. At September 30, 2000, we had total current
assets of $525,345. At September 30, 2000, current assets exceeded current
liabilities by $155,271.

We are not aware of any trends, demands, commitments or uncertainties that will
result in our liquidity decreasing or increasing in any material way. We do not
believe that our current cash resources will be able to





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maintain our current operations for an extended period of time. Should these
resources prove to be insufficient, we will be required to raise additional
funds or arrange for additional financing over the next 12 months to adhere to
our development schedule. No assurance can be given, however, that we will have
access to additional cash in the future, or that funds will be available on
acceptable terms to satisfy our case requirements.

Results of Operations. We have not yet realized any significant revenue from
operations. For the quarter ending September 30, 2000, we received $36,739 in
processing fees, and had $131,385 in general and administrative expenses
including, but not limited to, fees for investor relations, management fees,
wages and benefits and consulting fees. Net losses from operations for the
quarter ending September 30, 2000 were $89,621. Since our inception on September
13, 1993, we have suffered net losses of $5,013,100.

For the quarter ending September 30, 2000, we held back $174,543 in our
revolving reserve fund. During the quarter ending September 30, 2000, we
received notices of several charge-backs, totaling $175,129.46 to a client we no
longer do business with. We had held back $44,328.63 as reserves for this client
and are vigorously pursuing this client for full repayment of $130,800.83 plus
fees of $13,275.00, for a total of $144,075.83.

Our Plan of Operation for the Next Twelve Months. We do not expect to realize
any significant revenue from operations in the next twelve months. Our plan of
operation is materially dependent on our ability to generate revenues. We have
begun development of several of our websites, and anticipate they will begin
generating revenues by the third quarter of 2001 and become fully operational by
the first quarter of 2002. In the opinion of management, available funds will
satisfy our working capital requirements through June 30, 2001.

We will require additional cash to implement our business strategies, and for
payment of increased operating expenses. We anticipate that we will need to
raise additional capital within the next 12 months in order to continue as a
going concern. Such additional capital may be raised through additional public
or private financings, as well as borrowing and other resources. To the extent
that additional capital is raised through the sale of equity or equity-related
securities, the issuance of securities could result in dilution to our
stockholders. There can be no assurance that additional funding will be
available on favorable terms, if at all. If adequate funds are not available
within the next twelve months, we may be required to curtail our operations
significantly or to obtain funds through arrangements with collaborative
partners or others that may require us to relinquish rights to certain of our
assets.

We do not anticipate any material expenses within the next twelve months that
will affect our liquidity. We do not anticipate any significant research and
development within the next twelve months, nor do we anticipate that we will
lease or purchase any significant equipment within the next twelve months. We do
not anticipate a significant change in the number of our employees within the
next twelve months, nor are we aware of any material commitment or condition
that may affect our liquidity within the next twelve months.


ITEM 3.  Description of Property.

Property held by the Company. As of the dates specified in the following table,
we held the following property in the following amounts:




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------------------ ------------------- -------------- --------------------
Property and Cash  December 31, 1999   June 30, 2000  September 30, 2000
Equivalents
------------------ ------------------- -------------- --------------------
Total              $65,735.00          $178,591.00    $28,409.00
------------------ ------------------- -------------- --------------------

We define cash equivalents as all highly liquid investments with a maturity of 3
months or less when purchased. We do not presently own any interests in real
estate or own any inventory or equipment.

                          PART II -- OTHER INFORMATION

Item 1. Legal Proceedings.
--------------------------

On June 13, 2000, we filed suit in District Court, Clark County, Nevada, naming
James E Slayton, Carolyn Slayton, and Dianne Bennitt defendants, alleging breach
of contract, fraud and negligent misrepresentation of fact. In the lawsuit, we
are seeking damages and costs against defendants for failing to provide adequate
financial statements. In the Complaint, we are alleging that Defendants
committed professional malpractice in that they negligently prepared our
financial statements and failed to adequately respond to comments by the
Securities and Exchange Commission. We retained Mr. Gregory A. Lutz, of the Law
Offices of Gregory A. Lutz to act as our lead counsel in this matter. The
outcome of the litigation is uncertain. Litigation can be complex, costly, and
could extend for a protracted time. However, we intend to vigorously prosecute
this action.

Item 2. Changes in Securities.
-------------------------------

On August 4, 2000, Conrado Beckerman exercised 50,000 options at $0.30 per
share. The options were issued in exchange and as consideration for consulting
services.

Item 3.  Defaults Upon Senior Securities
----------------------------------------

None.

Item 4.  Submission of Matters to Vote of Security Holders
----------------------------------------------------------

None.

Item 5.  Other Information
--------------------------

None.

Item 6.  Exhibits and Reports on Form 8-K
-----------------------------------------

10.1     Contract between the Company and ASDAR, Inc.*

* Filed as an Exhibit to Amendment No. 4 to the Company's Registration Statement
on Form 10-SB.



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                                   SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, we
have duly caused this Registration Statement on Form 10-QSB to be signed on our
behalf by the undersigned; thereunto duly authorized, in the City of Vancouver,
British Columbia, Canada, on May ____, 2001.

2U Online.com, Inc.,
a Delaware corporation

By:      /s/ Robert Klein
        -------------------
         Robert Klein
Its:     President





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