<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                            ______________________

                                  FORM 10-QSB

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

                 For the quarterly period ended June 30, 2001

                              __________________

    [_]  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 _________

                             CONVERGE GLOBAL, INC.
                             ____________________

       (Exact name of small business issuer as specified in its charter)

            Utah                                         87-0426858
-------------------------------               --------------------------------
(State or other jurisdiction of               (IRS Employer Identification No.)
Incorporation or organization)

           233 Wilshire Boulevard, Suite 930, Santa Monica, CA 90401
           ---------------------------------------------------------
                   (Address of principal executive offices)

                                (310) 434-1974
                                --------------
                          (Issuer's telephone number)

                                      N/A
--------------------------------------------------------------------------------
   (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 July 25, 2001, the number of shares of Common Stock issued and outstanding
was 8,958,030.

Transitional Small Business Disclosure Format (check one):
Yes  [_]  No  [X]
<PAGE>

                    CONVERGE GLOBAL, INC. AND SUBSIDIARIES

                                     INDEX

                                                                           Page
                                                                          Number
                                                                          ------
PART I -  FINANCIAL INFORMATION                                             F-1

    Item 1.  Financial Statements                                           F-1

    Condensed Consolidated Balance Sheets - June 30, 2001                   F-1

    Condensed Consolidated Statement of Operations - For the three and
    six months ended June 30, 2001 and 2000                                 F-2

    Condensed Consolidated Statement of Cash Flows - For the three and
    six months ended June 30, 2001 and 2000                                 F-3

    Notes to Condensed Consolidated Financial Statements                    F-4

    Item  2. Management's Discussion and Analysis of Financial Conditions
          and Results of Operations                                           1

PART II - OTHER INFORMATION                                                   5

    Item 1.  Legal Proceedings                                                5

    Item 2.  Changes in Securities                                            5

    Item 3.  Defaults Upon Senior Securities                                  5

    Item 4.  Submission of Matters to a Vote of Security Holders              5

    Item 5.  Other Information                                                5

    Item 6.  Exhibits and Reports on Form 8-K                                 5


SIGNATURES

                                       i
<PAGE>

                        PART I - FINANCIAL INFORMATION

    Item 1.  Financial Statements.

<TABLE>
<CAPTION>

                              ASSETS                                       2001
                              ------                                       ----
<S>                                                                   <C>
Current assets:
     Cash                                                             $   6,778
Fixed assets:
     Website Development less accumulated amortization                  180,000
     Property and Equipment less accumulated depreciation                19,627
        Total assets                                                  $ 206,405

                  LIABILITIES AND STOCKHOLDERS' EQUITY
                  ------------------------------------

Current liabilities:
     Accrued Expenses                                                 $ 189,004
     Loans Payable                                                      183,586
        Total Liabilities                                               372,590
Minority Interest                                                       276,481
Stockholders' equity:
      Common stock $.001 par value; shares authorized
      50,000,000 issued and outstanding 7,958,030 for 2001                7,958
      Common stock subscriptions receivable                              (2,000)
      Paid-in capital                                                   364,117
      Retained earnings (deficit)                                      (812,741)
        Total stockholders' equity                                     (442,666)
        Total liabilities and stockholders' equity                    $ 206,405
</TABLE>
                                      F-1
<PAGE>

                    CONVERGE GLOBAL, INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                         FOR THE PERIOD ENDED JUNE 30,

<TABLE>
<CAPTION>
                                             Three months ended June 30,              Six months ended June 30,
                                               2001             2000                    2001              2000
                                         ---------------   ---------------        ----------------   ---------------
<S>                                       <C>               <C>                     <C>               <C>
Revenues                                  $        -        $      358              $        -        $      358

Operating Expenses                           122,019           631,195                 194,365           805,076
                                         ---------------   ---------------        ----------------   ---------------

Gain (Loss) from Operations                 (122,019)         (630,837)               (194,365)         (804,718)

Interest Expense (Income)                       (385)            4,688                    (519)            9,375
                                         ---------------   ---------------        ----------------   ---------------

(Loss) before Income Taxes                  (121,634)         (635,525)               (193,846)         (814,093)

Income Taxes                                                                               800               800

Minority Loss allocation                        (156)          (63,372)                   (172)          (67,129)
                                         ---------------   ---------------        ----------------   ---------------

Net income (loss)                         $ (121,478)       $ (572,153)             $ (194,474)       $ (747,764)
                                         ===============   ===============        ================   ===============

Income (Loss) per share:
             Basic and diluted            $    (0.01)       $    (0.06)             $    (0.02)       $    (0.08)
                                         ===============   ===============        ================   ===============

Number of shares used in the per
   share calculation:
             Basic and diluted             8,433,170         8,918,100               8,433,170         8,918,100
                                         ===============   ===============        ================   ===============
</TABLE>

                                      F-2
<PAGE>

                    CONVERGE GLOBAL, INC. AND SUBSIDIARIES
                      STATEMENT OF CASH FLOWS (UNAUDITED)
                       FOR THE SIX MONTHS ENDED JUNE 30,

<TABLE>
<CAPTION>

                                                       2001            2000
                                                 --------------   --------------
<S>                                               <C>              <C>
Cash flows from operating activities:

  Net income (loss)                               $  (194,474)     $ (747,764)


  Adjustments to reconcile net income
    to net cash provided by (used in)
    operating activities:

      Depreciation and amortization                    24,461          18,902

      Shares issued for service                         3,000

      Increase (Decrease) in due from employees             -          (2,500)

      Increase (Decrease) in accrued expenses          31,241           8,816

      Minority Interest                                   172         (67,129)
                                                 --------------   --------------
        Net cash operating activities                (135,600)       (789,675)
                                                 --------------   --------------

Cash flows used for investing activities:

  (Payments) to acquire property
    and equipment                                           -         (71,826)

  Investment in Website development                         -         (70,000)
                                                 --------------   --------------

        Net cash provided by (used in)
          investing activities                              -        (141,826)
                                                 --------------   --------------

Cash flows from financing activities:

  Proceeds (repayment) of note payables               130,561         185,590

  Proceeds from sale of securities of
    subsidiaries                                            -       1,212,980
                                                 --------------   --------------

        Net cash provided by (used in)
          financing activities                        130,561       1,398,570
                                                 --------------   --------------

Net increase (decrease) in cash and cash
  equivalents                                          (5,039)        467,069

Cash and cash equivalents at beginning of year         11,817           2,462
                                                 --------------   --------------

Cash and cash equivalents at end of year            $   6,778      $  469,531
                                                 ==============   ==============

Supplemental disclosure of cash flow
 information:

        Interest paid                               $     519      $        -
                                                 ==============   ==============

        Income taxes paid                           $     800      $      800
                                                 ==============   ==============

</TABLE>
                                      F-3
<PAGE>

                     CONVERGE GLOBAL, INC. AND SUBSIDIARIES
                        (A DEVELOPMENT STAGE ENTERPRISE)

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                    SIX MONTHS ENDED JUNE 30, 2001 AND 2000

(1) Summary of Significant Accounting Policies:

    Organization and Basis of Presentation:

        The Company was organized October 4, 1985, under the laws of the State
        of Utah, as Mormon Mint, Inc.  The Company was inactive for
        approximately 10 years.

        On December 4, 1997, the Company changed its name from Mormon Mint, Inc.
        to Capital Placement Specialists, Inc.

        Pursuant to an acquisition agreement, dated January 5, 1999, Bekam
        Investments, Ltd. ("Bekam") acquired one hundred percent (100%) of the
        common shares of the Company at that time; or 2,340,100 shares.  Bekam
        subsequently spun off the Company by contributing the shares to the
        treasury of the Company for redistribution to selected investors of
        Bekam.  The Company then changed its name to Converge Global, Inc.

    Principles of Consolidation:

        The accompanying financial statements include the accounts of Converge
        Global, Inc. (the "Parent"), and its subsidiaries, Digitalmen.com, Inc.,
        EssTec, Inc. and LiquidationBid.com, Inc.  All significant inter-company
        accounts and transactions have been eliminated in consolidation.

                             Percent of
             Subsidiary      ownership              Description
             ----------      ---------              ------------

        Digitalmen.com, Inc.   84.24%  Digitalmen.com, Inc. (formerly Gearz.com,
                                       Inc.) was formed on February 5, 1999 in
                                       the State of California.  During the
                                       period ended June 30, 2000,
                                       Digitalmen.com, Inc. commenced three
                                       Private Placement Offerings, which are
                                       exempt from registration under Regulation
                                       D of The Securities Act of 1933. Total
                                       proceeds raised during the period
                                       amounted to $440,000 and is ongoing. The
                                       offering terms are as follows:

                                       a. 1,000,000 shares of Digitalmen.com,
                                          Inc.'s restricted common stock at
                                          $0.50 per share.

                                      F-4
<PAGE>

                     CONVERGE GLOBAL, INC. AND SUBSIDIARIES
                        (A DEVELOPMENT STAGE ENTERPRISE)

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                   THREE MONTHS ENDED JUNE 30, 2001 AND 2000

(1) Summary of Significant Accounting Policies (Continued):

    Principles of Consolidation, Continued:

                             Percent of
             Subsidiary      ownership              Description
             ----------      ---------              ------------

                                       b. 1,000,000 warrants of Digitalmen.com
                                          at $0.30 per warrant which maybe
                                          exercised at $2.50 per share to
                                          acquire one share of common stock for
                                          each warrant.

                                       c. 1,000,000 shares of Digitalmen.com,
                                          Inc.'s restricted common stock at
                                          $3.50 per share.


                                      F-5
<PAGE>

                     CONVERGE GLOBAL, INC. AND SUBSIDIARIES
                        (A DEVELOPMENT STAGE ENTERPRISE)

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                   THREE MONTHS ENDED JUNE 30, 2001 AND 2000

(1) Summary of Significant Accounting Policies (Continued):

    Principles of Consolidation, Continued:

                             Percent of
             Subsidiary      ownership              Description
             ----------      ---------              ------------

    LiquidationBid.com, Inc.    50%    LiquidationBid.com, Inc. (a development
                                       stage company) was incorporated on April
                                       8, 1999 in the State of Nevada.  The
                                       Company was awarded 1,000,000 of the
                                       2,000,000 outstanding shares of
                                       LiquidationBid.com, Inc. in exchange for
                                       the rights to services. No value has been
                                       assigned to these future rights, and
                                       therefore, there is no cost basis in this
                                       investment. Two of the three board
                                       members of LiquidationBid.com, Inc. are
                                       officers and stockholders of the Company,
                                       thereby demonstrating control over
                                       LiquidationBid.com, Inc. There were no
                                       material operations during the period
                                       ended June 30, 2000.

    Going Concern:

        The Company's consolidated financial statements are prepared using the
        generally accepted accounting principles applicable to a going concern,
        which contemplates the realization of assets and liquidation of
        liabilities in the normal course of business.  The Company has no
        current source of revenue.  Without realization of additional capital,
        it would be unlikely for the Company to continue as a going concern.
        This factor raises substantial doubt about the Company's ability to
        continue as a going concern.

        Management recognizes that the Company must generate additional
        resources to enable it to continue operations.  The Company intends to
        begin recognizing significant revenue during the year 2001.
        Management's plans also include the sale of additional equity
        securities.  However, no assurance can be given that the Company will be
        successful in raising additional capital.  Further, there can be no
        assurance, assuming the Company successfully raises additional equity,
        that the Company will achieve profitability or positive cash flow.  If
        management is unable to raise additional capital and expected
        significant revenues do not result in positive cash flow, the Company
        will not be able to meet its obligations and will have to cease
        operations.

                                      F-6
<PAGE>

                     CONVERGE GLOBAL, INC. AND SUBSIDIARIES
                        (A DEVELOPMENT STAGE ENTERPRISE)

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                   THREE MONTHS ENDED JUNE 30, 2001 AND 2000

 (1) Summary of Significant Accounting Policies (Continued):

     Basis of Preparation:

        The accompanying unaudited condensed consolidated interim financial
        statements have been prepared in accordance with the rules and
        regulations of the Securities and Exchange Commission for the
        presentation of interim financial information, but do not include all
        the information and footnotes required by generally accepted accounting
        principles for complete financial statements.  The audited consolidated
        financial statements for the two years ended December 31, 2000 was filed
        on April 16, 2001 with the Securities and Exchange Commission and is
        hereby referenced.  In the opinion of management, all adjustments
        considered necessary for a fair presentation have been included.
        Operating results for the six-month period ended June 30, 2001 are not
        necessarily indicative of the results that may be expected for the year
        ended December 31, 2001.


(2) Revenue:

        All revenue is derived from related party transactions.


(3) Subsequent Events:

       On July 2001 the Company sold 910,000 shares of EssTec stock owned by the
       company for $3,185,000 resulting in a gain of $3,185,000 which was not
       given effect on this financial statement.

                                      F-7
<PAGE>

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
of Operations.

The discussion and financial statements contained herein are for the three and
six month ended June 30, 2001 and 2000. The following discussion regarding the
financial statements of the Company should be read in conjunction with the
financial statements of the Company included herewith.

Overview.

The Company's business is focused in the globally emerging electronic commerce
("e-commerce") industry.

Plan of Operations.

With the winding down of continued development of LiquidationBid.com,
DesiTV.com, and Machmail.com, the Company's cash requirements for the next
twelve months have decreased from approximately $40,000 per month last year to
approximately $15,000 per month currently.  With a $250,000 line of credit
recently granted by a director (see "Certain Relationships and Related
Transactions"), the Company should be able to continue its operations for the
next twelve months.  The Company has also been able to secure $200,000 in
convertible debt financing to continue its operations (see "Results of
Operations"). While there is no assurance the Company will be successful in
raising additional capital, the Company is actively seeking both institutional
debt and private equity financing to assure that it will be capable of financing
the continuation of the business.  Any additional capital raised above and
beyond what the Company needs as its monthly expenditure would be used in
increasing marketing and sales efforts of the Company's Web sites.  Should the
Company fail to raise additional funding, it will be forced to curtail its
growth, cut back by reducing the number of employees or even cease operations
altogether.

The Company does not anticipate any new research and development to be conducted
in the near future. In the event there is a need for research and development,
the Company believes that its current work force is capable and equipped to
conduct such research and development internally. The Company does not
anticipate any purchase or sale of plant and/or equipment nor does the
management anticipate any increase in the number of employees.

Results of Operations.

The Company did not generate any revenues in the three or six month periods
ended June 30, 2001.  Currently, the Company's only cash requirements are for
rent and salaries.  The following table sets forth, for the periods indicated,
selected financial information for the Company:

                                       1
<PAGE>

<TABLE>
<CAPTION>
                                  Three Months Ended    Three Months Ended   Six Months Ended    Six Months Ended
                                     June 30, 2001        June 30, 2000       June 30, 2001       June 30, 2000
                                      (unaudited)          (unaudited)         (unaudited)         (unaudited)
-----------------------------------------------------------------------------------------------------------------
<S>                               <C>                   <C>                  <C>                 <C>
Total Revenue                                  0                 358                   0                 358
Cost of Revenue                                0                   0                   0                   0
                                        --------           ---------            --------            --------
Gross Profit                                   0                 358                   0                 358
                                        --------           ---------            --------            --------
General, Administrative and
 Selling Expenses                        122,019             631,195             194,365             805,076
Income (loss) from Operations           (122,019)           (631,195)           (194,365)           (805,076)
Interest Expense (Income)                   (385)              4,688                (519)               9375
Income (loss) before Taxes              (121,364)           (630,837)           (193,846)           (814,093)
Taxes on Income                                0                   0                 800                 800
Minority loss allocation                    (156)            (63,372)           (194,474)           (747,764)
Net Income (loss)                       (121,478)           (572,153)           (194,474)            (67,129)
-----------------------------------------------------------------------------------------------------------------
</TABLE>

Three Months Ended June 30, 2001 as Compared to Three Months Ended June 30, 2000

Revenues.

The Company had no revenues for the three months ended June 30, 2001 and for the
three months ended June 30, 2000.

General, administrative, and selling expenses.

The Company incurred costs of $122,019 for the quarter ended June 30, 2001 as
compared to $631,195 for the quarter ended June 30, 2000. The decrease is due
to the fact that the Company no longer consolidates the financial statements of
its former subsidiary EssTec, Inc. since the Company's ownership is less than
50% of the outstanding shares of EssTec, Inc. as of June 30, 2001.

Interest expense.

The Company had no interest income for the three months ended June 30, 2001 of
$385 as compared to $4,688  interest expense for the three months ended June
30, 2000.  The decrease is due to the settlement of company's debt.

Loss before taxes.

The Company has a loss before taxes and minority interest of $121,364 for the
three months ended June 30, 2001 as compared to $630,837 for the three months
ended June 30, 2000.

Taxes on income.

Income tax for the three months ended June 30, 2001 and 2000 was $0. The income
tax provision was paid in the first quarter. There was no federal income tax in
either period as the Company had taxable losses.

                                       2
<PAGE>

Net loss.

The Company had a net loss of $121,478 for the quarter ended June 30, 2001 as
compared a net loss of $572,153 for the quarter ended June 30, 2000.

Six Months Ended June 30, 2001 as Compared to Six Months Ended June 30, 2000

Revenues.

The Company had no revenues for the six months ended June 30, 2001 and for the
six months ended June 30, 2000.

General, administrative, and selling expenses.

The Company incurred costs of $194,635 for the six months ended June 30, 2001 as
compared to $805,076 for the six months ended June 30, 2000. The decrease is
due to the fact that the Company no longer consolidates the financial statements
of its former subsidiary EssTec, Inc. since the Company's ownership is less than
50% of the outstanding shares of EssTec, Inc. as of June 30, 2001.

Interest expense.

The Company had interest income of $519 for the six months ended June 30, 2001
as compared to $9,375 interest expense for the six months ended June 30, 2000.
The decrease is due to settlement of Company's debts by exchanging shares of
EssTec, Inc. in the last quarter of 2000.

Loss before taxes.

The Company has a loss before taxes and minority interest of $193,846 for the
six months ended June 30, 2001 as compared to $814,093 for the six months ended
June 30, 2000.

Taxes on income.

Income tax for the six months ended June 30, 2001 and 2000 was $800. The income
tax provision represents minimum income tax for the state of California. There
was no federal income tax in either period as the Company had taxable losses.

Net loss.

The Company had a net loss of $194,474 for the six months ended June 30, 2001 as
compared a net loss of $67,129 for the six months ended June 30, 2000.

Liquidity and Capital Resources.

In January 1999, the Company concluded an offering under Rule 504 of Regulation
D.  In this offering the Company raised $25,000 and also issued 2,000,000
options to purchase shares of its common stock at an exercise price of $0.10
each. These options were exercised on March 30, 1999, May 7, 1999, and June
1999, raising an additional $200,000.

On May 5, 1999, the Company executed a promissory note with the holder Verifica
International, Ltd. in the amount of $250,000. The note paid an annual interest
rate of 7.5% on the outstanding balance and was due on April 15, 2002.  The
Company has settled the note by exchanging 250,000 shares of its common

                                       3
<PAGE>

stock of EssTec, at $1.00 per share.

On November 1, 1999, the Company's director provided an unsecured line of credit
to the Company to draw upon, interest free, in the amount of $250,000 to be
payable by January 1, 2003.

On January 19, 2000, the Company executed a convertible preferred promissory
note in the amount of $200,000 with Knightrider Investments, Ltd.  The Company
borrowed $140,000 against this line during January and February 2000.  The note
was due within one year with 8% annual interest.  The Company settled this note
by exchanging 139,990 shares of its common stock of EssTec, at $1.00 per share
in the last quarter of 2000.

The Company foresees a variety of methods for diversifying its operations and
pursuing its strategic and business objectives without pulling badly needed
capital from its on-going operations, or incurring onerous overhead and
financing obligations. These options include licenses, joint ventures, and even
counter-trade (technologies for technologies) mechanisms as part of this
diversification methodology. The Company has not yet engaged in any counter-
trade mechanisms trading technology for technology, licenses nor joint ventures
as of the date of this filing. In addition, there are no assurances that the
Company could find adequate partners for each of these alternatives.  In the
event the Company is unable to implement such alternative methods of funding and
find other sources of capital, the operation of the business would be severely
and adversely affected.

The Company does not believe that inflation has had a significant impact on its
operations since inception of the Company.

Subsidiaries.

On February 5, 1999, the Articles of Incorporation for Gearz.com, Inc.
("Gearz.com") were filed with the California Secretary of State.  The directors
of Gearz.com are Imran Husain and Samar Khan.  The Articles were subsequently
amended on December 7, 1999, to change the name of Gearz.com to Digitalmen.com,
Inc.  Digitalmen.com is a majority owned subsidiary of Converge whereby Converge
holds 3,000,000 shares of common stock of this company. Digitalmen.com is a
portal site geared towards men's interest. The target group ranges from ages 18
to 45 with interests in finance, travel, entertainment, fashion and electronics.

On April 30, 1999, Converge became a 50% shareholder of LiquidationBid.com, Inc.
("LiquidationBid") whereby Converge holds 1,000,000 shares of common stock of
LiquidationBid. Mr. Imran Husain serves as the President and Director of
LiquidationBid.

The Company is a 20% shareholder of MedCom Network, Inc. ("MedCom"), a
California corporation which is developing an on-line data base of disease codes
which are codes found in the medical industry dictionaries.  The Company
invested in MedCom by contributing $30,000 in cash for shares of restricted
common stock of MedCom.  This was an investment made by the Company and the
Company's officers or directors have no management involvement in MedCom.  As of
December 31, 1999 MedCom had no sales and cost of sales resulting in a loss from
continuing operations and net loss.  The investment in MedCom is recorded at no
value in the financial statements as of December 31, 1999 and 2000, as required
by the equity method of accounting.

The Company owns 17% of EssTec, Inc., formerly Essential Tec, Inc. ("EssTec"),
an information technology services Company with an extensive technical labor
force in Pakistan.  EssTec's software engineers are capable of providing high
quality, cost-effective services to clients in a resource-constrained
environment. EssTec services include e-Commerce Solutions, e-Procurement
applications, auctioning

                                       4
<PAGE>

engines, and several other web based solutions. EssTec sells and markets its
services and products from its offices based in Woodland Hills, California. On
April 21, 2001, the Company exchanged 285,714 shares of its EssTec stock for the
return of 1,000,000 of its shares with Samar Khan, and converted $64,000 of debt
for 64,000 shares of EssTec. On July 2001, the Company sold 910,000 shares of
EssTec stock owned by the Company for $3,185,000 resulting in a gain of
$3,185,000.

                          PART II - OTHER INFORMATION

Item 1.  Legal Proceedings.

To the best knowledge of management, there is no material litigation pending or
threatened against the Company.

Item 2.  Changes in Securities and Use of Proceeds.

None.

Item 3.  Defaults Upon Senior Securities.

None.

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

None.

Item 5.  Other Information.

None.

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

The following documents are filed as part of this report:

1.   The following Exhibits are filed herein:  None.

2.   Reports on Form 8-K filed:    None.

                                       5
<PAGE>

                                   SIGNATURES

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

                              CONVERGE GLOBAL, INC.


DATED:  August 8, 2001        By:  /s/ Imran Husain
                                   ----------------
                                   Imran Husain, President, Chief Executive
                                   Officer, and Chief Financial Officer

                                       6