U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-QSB/A

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

       For the quarterly period ended March 31, 2001

                                       OR

[   ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
       ACT OF 1934

       For the transition period from ___________ to ____________

                        Commission file number 000-31485

                              METHOD PRODUCTS CORP.

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



          Florida                                    11-3456837
(State or other jurisdiction of                   (I.R.S. Employer
 incorporation or organization)                  Identification No.)


                         2101 NW 33rd Street, Suite 600A
                          Pompano Beach, Florida 33069
                    (Address of principal executive offices)

                                 (954) 968-1913
                           (Issuer's telephone number)

        The number of shares outstanding of the registrant's common stock
                        as of May 31, 2001 was 10,024,005

           Transitional Small Business Disclosure Format (Check One:)

                                 Yes       No  X
                                     -----   -----


<PAGE>


                          PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

a) Consolidated Balance Sheets as of March 31, 2001 (Unaudited) and
   June 30, 2000.

b) Consolidated Statements of Operations (Unaudited) for the three months and
   the nine months ended March 31, 2001 and March 31, 2000

c) Consolidated Statement of Changes in Stockholders' Equity (Deficit)
  (Unaudited) for the nine months ended March 31, 2001

d) Consolidated Statements of Cash Flows (Unaudited) for the nine months
   ended March 31, 2001 and March 31, 2000

e) Notes to Consolidated Financial Statements

                                        2



<PAGE>


                      METHOD PRODUCTS CORP. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                  MARCH 31, 2001 (UNAUDITED) AND JUNE 30, 2000

<TABLE>
<CAPTION>
                                                                           March 31,             June 30,
                                                                             2001                 2000
                                                                          -----------          -----------
<S>                                                                       <C>                  <C>
                                       ASSETS
                                       ------

CURRENT ASSETS:
   Cash and cash equivalents                                              $    29,723          $   326,927
   Accounts receivable, net                                                   321,542              248,464
   Inventories, net                                                           391,974              192,109
   Due from employees                                                          18,849                2,892
   Prepaid expenses and other                                                  55,770               29,369
                                                                          -----------          -----------
       TOTAL CURRENT ASSETS                                                   817,858              799,761

PROPERTY AND EQUIPMENT, net                                                   363,921              259,029

OTHER ASSETS                                                                   86,594               74,228
                                                                          -----------          -----------
       TOTAL                                                              $ 1,268,373          $ 1,133,018
                                                                          ===========          ===========

                   LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                   ---------------------------------------------

CURRENT LIABILITIES:
   Lines of credit                                                        $   506,980          $    75,397
   Current portion of long-term debt                                           62,687               61,078
   Accounts payable and accrued expenses                                    1,211,823              440,989
   Customer deposits                                                           37,118               21,622
   Deferred revenue                                                            10,807               54,967
                                                                          -----------          -----------
       TOTAL CURRENT LIABILITIES                                            1,829,415              654,053
                                                                          -----------          -----------
LONG-TERM DEBT, less current portion                                          151,060              141,949
                                                                          -----------          -----------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY (DEFICIT):
          Preferred Stock, 2,000,000 shares authorized, $.0001
          Par value; none issued or outstanding                                     0                    0

          Common stock, 80,000,000 shares authorized, $0.0001 par
          value; 10,024,005 and 7,330,521 shares issued and
          outstanding at March 31, 2001 and June 30, 2000,
          respectively                                                          1,002                  733
   Additional paid-in capital                                               4,588,216            2,835,808
   Deficit                                                                 (5,301,320)          (2,499,525)
                                                                          -----------          -----------
       STOCKHOLDERS' EQUITY (DEFICIT), NET                                   (712,102)             337,016
                                                                          -----------          -----------
       TOTAL                                                              $ 1,268,373          $ 1,133,018
                                                                          ===========          ===========
</TABLE>


          See accompanying notes to consolidated financial statements.

                                        3


<PAGE>


                      METHOD PRODUCTS CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
               FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000

<TABLE>
<CAPTION>
                                                          2001                    2000
                                                      -----------             -----------
<S>                                                   <C>                     <C>
SALES                                                 $ 1,018,572             $   644,715

COST OF SALES                                             607,257                 338,054
                                                      -----------             -----------

       GROSS PROFIT                                       411,315                 306,661

ADMINISTRATIVE EXPENSES                                 1,046,563                 727,360
                                                      -----------             -----------
       LOSS FROM OPERATIONS                              (635,248)               (420,699)
                                                      -----------             -----------
OTHER (INCOME) EXPENSE:
   Interest expense                                        26,327                   4,613
   Other                                                   (4,843)                     --
                                                      -----------             -----------
       OTHER EXPENSE, NET                                  21,484                   4,613
                                                      -----------             -----------
       LOSS BEFORE INCOME TAXES                          (656,732)               (425,312)

PROVISION FOR INCOME TAXES                                     --                      --
                                                      -----------             -----------
       NET LOSS                                       $  (656,732)            $  (425,312)
                                                      ===========             ===========



LOSS PER COMMON SHARE:


Basic and diluted                                     $    (0.077)            $    (0.077)
                                                      ===========             ===========
Weighted average common shares outstanding              8,584,973               5,510,444
                                                      ===========             ===========
</TABLE>


          See accompanying notes to consolidated financial statements.

                                        4
<PAGE>


                      METHOD PRODUCTS CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
                FOR THE NINE MONTHS ENDED MARCH 31, 2001 AND 2000


<TABLE>
<CAPTION>
                                                          2001                   2000
                                                      -----------             -----------
<S>                                                   <C>                     <C>
SALES                                                 $ 2,951,206             $ 2,144,682

COST OF SALES                                           1,959,787               1,205,615
                                                      -----------             -----------

       GROSS PROFIT                                       991,419                 939,067

ADMINISTRATIVE EXPENSES                                 3,650,233               1,393,438
                                                      -----------             -----------
       LOSS FROM OPERATIONS                            (2,658,814)               (454,371)
                                                      -----------             -----------
OTHER (INCOME) EXPENSE:
   Interest expense                                        68,992                  17,931
   Other                                                  (11,958)                 (4,795)
                                                      -----------             -----------
       OTHER EXPENSE, NET                                  57,034                  13,136

       LOSS BEFORE INCOME TAXES                        (2,715,848)               (467,507)

PROVISION FOR INCOME TAXES                                     --                      --
                                                      -----------             -----------
       NET LOSS                                       $(2,715,848)            $  (467,507)
                                                      ===========             ===========



LOSS PER COMMON SHARE:


Basic and diluted                                     $    (0.333)            $    (0.086)
                                                      ===========             ===========
Weighted average common shares outstanding              8,166,261               5,447,667
                                                      ===========             ===========
</TABLE>


          See accompanying notes to consolidated financial statements.

                                        5
<PAGE>


                      METHOD PRODUCTS CORP. AND SUBSIDIARY
       CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
                                   (UNAUDITED)
                    FOR THE NINE MONTHS ENDED MARCH 31, 2001

<TABLE>
<CAPTION>
                                                               Common Stock            Additional                      Stockholders'
                                                                           at            Paid-in                          Equity
                                                       # of Shares      par value        Capital         Deficit       Deficit), net
                                                       -----------     -----------     -----------     -----------     ------------
<S>                                                      <C>           <C>             <C>             <C>              <C>
STOCKHOLDERS' EQUITY, July 1, 2000                       7,330,521     $       733     $ 2,835,808     ($2,499,525)     $   337,016


Issuance of stock for cash, net of expenses                663,957              66         243,650              --          243,716

Issuance of stock for services                             231,500              23         173,602              --          173,625

Common stock issued at merger (Note 2)                     654,857              65          94,000         (85,945)           8,120

Issuance of stock for assets                               297,711              30         223,251              --          223,281

Issuance of stock options below fair value, and to              --              --       1,017,904              --        1,017,904
Consultants

Exercise of stock options                                  845,459              85              --              --               85

Net loss for the nine months ended March 31, 2001               --              --              --      (2,715,848)      (2,715,848)
                                                       -----------     -----------     -----------     -----------      -----------

STOCKHOLDERS' DEFICIT, MARCH 31, 2001                   10,024,005     $     1,002     $ 4,588,216     ($5,301,320)     ($  712,102)
                                                       ===========     ===========     ===========     ===========      ===========
</TABLE>


                                        6



<PAGE>


                      METHOD PRODUCTS CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                FOR THE NINE MONTHS ENDED MARCH 31, 2001 AND 2000


<TABLE>
<CAPTION>
                                                                           2001                2000
                                                                       -----------          -----------
<S>                                                                    <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                                            $(2,715,848)         $  (467,507)
   Adjustments to reconcile net loss to net cash
   used in operating activities:
      Depreciation and amortization                                         87,356               48,540
      Provision for bad debts                                               99,591                   --
      Gain on asset dispositions                                                --               (5,183)
      Common Stock issued for services                                     173,625              313,250
      Stock options issued                                               1,017,904                   --
      Changes in certain assets and liabilities net of amounts
         from merger:
         Accounts receivable                                              (172,669)              28,765
         Inventories                                                        23,416             (102,676)
         Due from employees                                                (17,644)              (7,290)
         Prepaid expenses and other                                        (24,714)              (3,342)
         Accounts payable and accrued expenses                             690,406               77,806
         Customer deposits                                                  15,495             (167,678)
         Deferred revenue                                                   10,807                   --
                                                                       -----------          -----------
       NET CASH USED IN OPERATING ACTIVITIES                              (812,275)            (285,315)
                                                                       -----------          -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of property and equipment                                     (117,284)             (60,082)
   Notes receivable, shareholders                                               --              (25,383)
   Change in other assets                                                  (22,119)              (9,838)
                                                                       -----------          -----------
       NET CASH USED IN INVESTING ACTIVITIES                              (139,403)             (95,303)
                                                                       -----------          -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Net change in line(s) of credit                                         431,583                   --
   Proceeds from long term debt                                                 --               53,124
   Payments on long term debt                                              (54,490)             (49,200)
   Payments on litigation settlements                                           --              (13,815)
   Cash acquired in merger                                                  33,580                   --
   Common stock issued for exercise of options                                  85                   --
   Common stock issued for cash, net                                       243,716              464,500
                                                                       -----------          -----------
       NET CASH PROVIDED BY FINANCING ACTIVITIES                           654,474              454,609
                                                                       -----------          -----------
       NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               (297,204)              73,991

CASH AND CASH EQUIVALENTS, Beginning of period                             326,927              219,896
                                                                       -----------          -----------
CASH AND CASH EQUIVALENTS, End of period                               $    29,723          $   293,887
                                                                       ===========          ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
   Interest paid in cash                                               $    23,996          $    17,931
                                                                       ===========          ===========
   Income taxes paid in cash                                           $        --          $        --
                                                                       ===========          ===========
</TABLE>

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Effective September 30, 2000, the Company recorded net tangible assets of
approximately $8,120 in connection with the merger with The Arielle Corp., (See
Note 2). Effective November 1, 2000, the Company issued 297,711 shares of common
stock in exchange for inventory with a fair value of $223,281 (see note 5).
During the nine months ended March 31, 2001, the Company entered into long-term
debt and capital leases for approximately $65,720 for vehicles and office
equipment (See Note 4).

          See accompanying notes to consolidated financial statements.

                                        7
<PAGE>

                      METHOD PRODUCTS CORP. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE NINE MONTHS ENDED MARCH 31, 2001

                                   (Unaudited)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Basis of Presentation

The accompanying consolidated financial statements of Method Products Corp., a
Florida corporation, and its wholly- owned subsidiary, MPC Integrated
Technologies, Inc., (MPCIT), (together, referred to as the Company) have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Item 310 (b) of Regulation
S-B. The disclosure in the notes to the financial statements have been prepared
in accordance with the instructions set forth under Item 310 (b), Interim
Financial Statements, of Regulation S-B. The requirements set forth under Item
310(b) require that footnotes and other disclosures should be provided as needed
for the fair presentation of the financial statements and to ensure that the
financial statements are not misleading. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. The requirements of Item 310 (b)
also require disclosure of material subsequent events and material
contingencies.

In the opinion of management, all adjustments (consisting of normal recurring
adjustments) considered necessary for a fair presentation have been included and
there are no material contingencies that require disclosure. The financial
statements as of and for the nine months and three months ended March 31, 2001
and 2000 are unaudited.

The results of operations for the interim periods presented are not necessarily
indicative of the results of operations to be expected for the fiscal year. See
Going Concern Considerations, below. The accompanying consolidated financial
statements should be read in conjunction with the financial statements and
footnotes included in the Form SB-2, as amended, of The Arielle Corp., filed
with the Securities and Exchange Commission (the SEC) in September 2000 (see
Note 2).

Sales and accounts receivable in the quarterly period ended March 31, 2001 have
been adjusted due to certain accounting inaccuracies. Such inaccuracies related
primarily to the recognition of certain sales and accounts receivable in such
quarterly period rather than in the following accounting periods. After
consultation with the Company's independent auditors, the Board of Directors and
the audit committee of the board, management has restated the Company's
financial statements for the quarterly periods affected. Financial statements
and related disclosures contained in this report reflect, where appropriate,
changes to conform to these restatements. Year to date numbers also include
adjustments made for the three month period ended December 31, 2000. Selected
balance sheet and statement of operations amounts as previously reported and as
restated are as follows:

<TABLE>
<CAPTION>
<S>                                       <C>                                            <C>
For the Three Months Ended                Sales as Previously Reported:                        Sales as Restated:
March  31, 2001:
                                                  $1,195,333                                      $1,018,572


                                           Net Income/(Loss) as                          Net Income/(Loss) as Restated:
                                           Previously Reported:
                                                  $(533,375)                                      $(656,732)


For the Nine Months Ended                Sales as Previously Reported:                         Sales as Restated:
March 31, 2001:
                                                  $3,315,998                                      $2,951,206

                                            Net Income/(Loss) as                         Net Income/(Loss) as Restated:
                                            Previously Reported:
                                                  $(1,700,881)                                    $(2,715,848)


As of March 31, 2001                        Accounts Receivable as                           Accounts Receivable as
                                             Previously Reported:                                  Restated:
                                                  $663,721                                        $321,542
</TABLE>

Description of Business
-----------------------

MPCIT is a multi-service business communications systems company specializing in
the custom design, installation and service of total communications network
systems for businesses, including computer telephone integration, fiber optic
cabling and video conferencing, among other network systems, for various
businesses, with a focus on businesses located in South Florida.

Going Concern Considerations
----------------------------

The Company's unaudited financial statements have been prepared on a going
concern basis that contemplates the realization of assets and the settlement of
liabilities and commitments in the normal course of business. The Company has a
net stockholders' deficit of $712,102 at March 31, 2001. In addition, the
Company has a deficit in working capital of $1,011,557 at March 31, 2001.
Management recognizes that the Company must generate additional resources to
enable it to pay its obligations as they come due. Management is planning to
obtain additional working capital from operations, and/or from other sources,
including creditors. The realization of assets and satisfaction of liabilities
in the normal course of business is dependent upon the Company obtaining
additional working capital and sustaining profitable operations. However, no
assurances can be given that the Company will be successful in these activities.
Should any of these events not occur, the accompanying financial statements will
be materially affected.

                                        8


<PAGE>

Income Taxes
------------

All deferred taxes created by net operating losses are offset in their entirety
by a deferred tax asset valuation allowance.

Derivative Instruments and Hedging Activities
---------------------------------------------

The Company has adopted Statement of Financial Accounting Standards (SFAS) No.
133, Accounting for Derivative Instruments and Hedging Activities effective July
1, 2000. SFAS No. 133 requires companies to recognize all derivatives as either
assets or liabilities in the statement of financial position and measure those
instruments at fair value. Gains and losses resulting from changes in fair
values of those derivatives would be accounted for depending on the use of the
derivative and whether it qualifies for hedge accounting. As of and for the nine
months ended March 31, 2001, the Company did not possess any derivatives to be
accounted for under SFAS No. 133.

Reclassification
----------------

Certain amounts have been reclassified in the 2000 financial statements to
conform to 2001 presentation.

NOTE 2. MERGER

On October 6, 2000, pursuant to an Agreement and Plan of Merger (the Merger
Agreement) dated as of January 12, 2000 between The Arielle Corp., a Delaware
corporation (Arielle) and Method Products Corp., a Florida corporation (Method),
all of the issued and outstanding shares of common stock of Method were
exchanged on a tax-free basis for shares of common stock of Arielle, a publicly
held entity. To complete the merger, Arielle issued new shares of its common
stock to the shareholders of Method in exchange for all of the outstanding stock
of Method. Immediately subsequent to the merger, the shareholders of Method
controlled approximately 91.87% of Arielle. As a result of this merger, the
business of Method is to be conducted within the legal entity Arielle, Arielle's
name was changed to Method Products Corp., and Method ceased to exist.

For accounting purposes, the merger has been treated as a purchase business
combination of Arielle by Method (a reverse acquisition) and a re-capitalization
of Method. Method is the acquirer for accounting purposes because the former
Method stockholders received a larger portion of the common stockholder
interests and voting rights in the combined entity than those retained by
Arielle stockholders prior to the merger. Because Method is the acquirer for
accounting purposes under APB Opinion No. 16, the surviving entity has adopted
Method's fiscal year end of June 30. The effective date of the merger for
accounting purposes is September 30, 2000. Pro-forma information has not been
presented for this merger, as it would not be meaningful since Arielle had no
operations prior to the merger.

NOTE 3. LINE OF CREDIT

Effective August 2000, the Company entered into a Loan and Security Agreement
with General Electric Capital Corporation for a Revolving Credit Loan. This
revolving line of credit has a maximum amount of $600,000 with an associated
interest rate of the Index Rate plus 2%, a term of 2 years and contains
customary financial covenants. The borrowing base is based on 80% of the value
of the Company's eligible accounts receivable and such receivables serve as
collateral under this line of credit. The proceeds from this new line of credit
also paid off a portion of existing debt.

NOTE 4. LONG TERM DEBT

During the nine months ended March 31, 2001, the Company entered into two
long-term notes payable of approximately $23,000 and $30,000, in connection with
the purchase of certain motor vehicles used in the Company's daily operations.
Such notes bear interest at 10.75% and 6.90%, respectively, with terms of five
years. In addition, the Company entered into one long-term capital lease
agreement of $12,720, in connection with the purchase of a computer server also
used in daily operations.

                                        9

<PAGE>

NOTE 5. ASSET ACQUISITION

Effective November 1, 2000, the Company entered into an Asset Purchase Agreement
with an unrelated third party (the Seller) to purchase the inventory of the
Seller in exchange for shares of common stock of the Company. The purchase price
of the inventory is $223,283 which approximates the wholesale value of the
inventory. The Company paid for this inventory by issuing 297,711 shares of
common stock of the Company valued at $0.75 per share on November 29, 2000.

Note 6. SHAREHOLDER LOANS

During the nine months ended March 31, 2001, certain existing and prospective
shareholders lent $260,000 to the Company in exchange for notes bearing interest
at 8%. On February 12, 2001, the notes were exchanged for 355,957 shares of
common stock of the Company, valued at $0.75 a share. The accrued interest was
paid in stock to the noteholders when the shares were issued.

Note 7. NET LOSS PER COMMON SHARE For the three months and nine months ended

March 31, 2001, basic and diluted weighted average common shares included only
common shares outstanding. The inclusion of common share equivalents would be
anti-dilutive and, as such, they are not included. However, the common stock
equivalents, if converted, would have increased fully diluted common shares at
March 31, 2001 by approximately 4,671,418. For the three months and nine months
ended March 31, 1999 basic and diluted weighted average common shares includes
only common shares outstanding, as there were no common share equivalents.

The number of common shares shown as outstanding in the consolidated financial
statements for the three months and nine months ended March 31, 2001 and March
31, 2000 as compared to the number of shares used in the computation of weighted
average common shares outstanding is different because of the effect of
weighting.

                                       10

<PAGE>

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

As further described in Note 1 to the Consolidated Financial Statements, sales
and accounts receivable for the quarterly period ended March 31, 2001 have been
adjusted due to certain accounting inaccuracies. Management has restated the
Company's financial statements for the periods effected. Year to date numbers
also include corrections made for the three month period ended December 31,
2000. The discussions and figures below are based on these restated
presentations.


FORWARD LOOKING STATEMENTS

This report on Form 10-QSB contains forward-looking statements which are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 and which are subject to risks and uncertainties which could
cause actual results to differ materially from those discussed in the
forward-looking statements and from historical results of operations. Among the
risks and uncertainties which could cause such a difference are those relating
to going concern considerations, our success in obtaining additional working
capital from operations and/or other sources as presently required or otherwise
desired, uncertain ablility to meet capital needs, our dependence upon certain
existing key personnel, a substantial percentage of our business is currently
dependent upon two suppliers, our ability to manage growth, our success in
implementing our business strategy which includes possible acquisitions and
their integration into our operations, and the risk of economic and market
factors affecting the Company and its customers. Many of such risk factors are
beyond our control. Actual results could differ materially from the
forward-looking statements made. In light of these risks and uncertainties,
there can be no assurance that the results anticipated in these forward-looking
statements contained in this report will in fact occur.

Any forward-looking statement speaks only as of the date on which such statement
is made, and we undertake no obligation to update any forward-looking statement
or statements to reflect events or circumstances after the date on which such
statement is made or to reflect the occurrence of unanticipated events. New
factors emerge from time to time and it is not possible for management to
predict all of such factors, nor can it assess the impact of each such factor on
the business or the extent to which any factor, or combination of factors, may
cause actual results to differ materially from those contained in any
forward-looking statements.

ORGANIZATION AND OPERATIONS

As previously described in the notes to the consolidated financial statements
herein, and in Item 4 below, Method Products Corp. (together with our
wholly-owned subsidiary, MPC Integrated Technologies, Inc., the Company) is the
result of an October 6, 2000 merger between The Arielle Corp., a Delaware
corporation (Arielle), and Method Products Corp., a Florida corporation
(Method). The merger is accounted for as an acquisition of Arielle by Method,
and in accordance with APB Opinion 16, paragraph 93, the effective date of the
merger for accounting purposes is September 30, 2000. The merged entity has
adopted the June fiscal year end of Method. Since Arielle was a non-operating
shell entity with no appreciable revenues or expenses, the analysis of the
results of operations and financial condition relates primarily to the
activities of Method.

On March 16, 2001, the Company effected a change of domicile merger and
reincorporated from Delaware to Florida. See Note 5.

We are a multi-service business communications systems company specializing in
the custom design, installation, and service of total communications network
systems for businesses, including computer telephone integration, fiber optic
cabling and video conferencing among other network systems, for various
businesses, with a focus on businesses located in South Florida. We intend to
pursue a conservative growth strategy which will entail, among other things, the
possible acquisition and/or merger of existing technology companies involved in
segments of the business communications industry complimentary to that of the
Company and to acquire additional experienced industry personnel.

RESULTS OF OPERATIONS

Nine months and three months ended March 31, 2001 compared to nine months and
three months ended March 31, 2000, respectively.

Net sales for the nine months ended March 31, 2001 were $2,951,206, as compared
to net sales for the nine months ended March 31, 2000 of $2,144,682. Net sales
for the three months ended March 31, 2001 were $1,018,572, as compared to net
sales for the three months ended March 31, 2000 of $644,715. These increases are
primarily attributable to management's concentration upon the hiring and
integration of additional sales staff.

                                       11

<PAGE>

Cost of sales was $1,959,787 or approximately 66% of sales for the nine months
ended March 31, 2001 as compared to cost of sales for the nine months ended
March 31, 2000 of $1,205,615 or approximately 56% of sales. Cost of sales for
the three months ended March 31, 2001 was $607,257 or approximately 60% of sales
as compared to three months ended March 31, 2000 of $338,054 or approximately
52% of sales. These increases are attributable to increased labor costs
associated with hiring additional technical staff, project management staff and
increased product costs as a percentage of net sales.

Administrative expenses for the nine months ended March 31, 2001, which
substantially consist of sales and administrative labor, amounted to $3,650,233
as compared to $1,393,438 for the nine months ended March 31, 2000. The
administrative expenses for the three months ended March 31, 2001 were
$1,046,563 as compared to the three months ended March 31, 2000 of $727,360.
These increases are attributable to the hiring of additional sales personnel and
related administrative support staff in conjunction with the asset purchase
agreement and the expanded sales and marketing efforts, and for other
administrative costs, as further described below.

Consulting fees were $31,144 for the nine months ended March 31, 2001 as
compared to $69,547 for the nine months ended March 31, 2000. For the three
months ended March 31, 2001 consulting fees were $8,200 as compared to $37,000
for the three months ended March 31, 2000. The decrease is attributable to the
completion of services rendered in connection with outside agreements.

Salaries were $2,134,384 for the nine months ended March 31, 2001 as compared to
$650,940 for the nine months ended March 31, 2000 and $523,995 for the three
months ended March 31, 2001 as compared to $434,567 for the three months ended
March 31, 2000. The increase is attributable to our increased sales and
administrative staff. As of March 31, 2001, the Company had approximately 65
employees most of which were hired at the end of September 2000, compared to
approximately 23 employees at March 31, 2000. To reduce administrative expenses,
the Company plans to scale down the administrative staff size during the fourth
quarter 2001 to approximately 40 employees.

Professional fees were $139,831 for the nine months ended March 31, 2001 as
compared to $21,610 for the nine months ended March 31, 2000 and $13,692 for the
three months ended March 31, 2001 as compared to $0 for the three months ended
March 31, 2000. This increase is attributable to increased legal costs
associated with the merger, and related increased quarterly legal, accounting
and auditing fees associated with SEC quarterly reviews.

Other selling, general and administrative expenses, which include bad debt
expenses, travel and entertainment, insurance, auto, telephone and other
expenses, were $1,344,874 for the nine months ended March 31, 2001 as compared
to $651,341 for the nine months ended March 31, 2000. For the three months ended
March 31, 2001, other selling, general and administrative expenses were $500,677
as compared to $255,793 for the three months ended March 31, 2000. The increase
is attributable to expenses directly associated with increased staffing as well
as financing activities.

Interest expense was $68,992 for the nine months ended March 31, 2001 as
compared to $17,931 for the nine months ended March 31, 2000 and $26,327 for the
three months ended March 31, 2001 as compared to $4,613 for the three months
ended March 31, 2000. The increase is attributable to additional equipment debt
financing and our line of credit with General Electric Capital Corporation (GE
Capital), further discussed below.

During the nine months ended March 31, 2001, the company has issued stock
options to consultants, and to certain employees at exercise prices below fair
value. These issuances have resulted in the company incurring an accounting
charge of $1,017, 904. There were no such charges in the comparable period in
the prior year.

As a result of the foregoing factors, we incurred losses of approximately
$2,715,848 or ($.333) per share for the nine months ended March 31, 2001 as
compared to a loss of approximately $467,507 or ($.086) per share for the nine
month period ended March 31, 2000. For the three month period ended March 31,
2001, we incurred losses of approximately $656,732 or ($.077) per share and a
net loss of $425,312 or ($.077) per share for the three months ended March 31,
2000.

                                       12
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

As previously discussed in Note 1 to our consolidated financial statements, our
consolidated financial statements have been prepared on a going concern basis
that contemplates the realization of assets and the settlement of liabilities
and commitments on the normal course of business. To the extent that we are
unable to obtain additional working capital from operations and/or other sources
as required or otherwise desired, our consolidated financial statements will be
materially affected.

At March 31, 2001, we had stockholders' deficit of approximately $712,102 and a
deficit in working capital of $1,011,557. Since our inception, we have incurred
losses of approximately $5,301,320. Our operations and growth have been funded
by the sale of common stock with gross cash proceeds of approximately $1,493,500
and working capital borrowings, further discussed below, of approximately
$506,980. These funds have been used for working capital and capital
expenditures.

As of December 7, 2001, we do not have any commitments for any material capital
expenditures.

As of December 7, 2001, we believe our current sources of credit, which only
include standard terms provided by vendors, and liquidity, both from cash flow
from current operations, resulting in part from our previously announced
acquisition of Ameritrend Corporation, and from informal commitments for
additional equity capital from certain current shareholders, will provide
sufficient liquidity to meet our cash requirements to sustain existing
operations for approximately the next six to nine months. We have recently seen
some improvement in sales industry wide, which we have also experienced, and
believe, based upon such current trend, if continued, that sales following such
six to nine month period may provide sufficient internal cash flow to sustain
our current operations.

A key element of our growth strategy is the acquisition of additional
telecommunications related companies. We believe we may be able to acquire such
companies or select assets through the issuance of shares of our common stock.
It is possible, however, that certain acquisition candidates may also require
cash to be acquired. In such event, we may require additional funding to finance
such acquisitions. Additional cash may also be required to integrate any such
acquisitions into our operations. Such financing, if available, may be in the
form of equity and/or debt. We have no firm commitments presently in place with
any underwriters or otherwise in connection therewith and no assurances are
given that such funding will be available if desired, or that the terms thereof,
if available, will be satisfactory.

As of March 31, 2001, we had three lines of credit with commercial lenders,
including GE Capital. The agreements provide for maximum revolving lines of
credit of $683,000. Interest at March 31, 2001 ranges from 9.5% to 19.4%. The
aggregate amount outstanding at March 31, 2001 was $506,980. Utilizing the GE
Capital line of credit, one credit line was paid off in full with $23,701 and
$3,343 outstanding on the two remaining lines of credit as of March 31, 2001. As
of March 31, 2001 we had an outstanding balance of $479,935 on the GE Capital
credit line. Such credit line was repaid by the Company in full and retired on
October 8, 2001.

During the nine months ended March 31, 2001, we obtained loans from several
individual investors aggregating $260,000 which were used for working capital
purposes. On February 12, 2001, such notes were exchanged for 355,957 shares of
our common stock, valued at $.75 per share.

For the nine months ended March 31, 2001 and March 31, 2000, approximately 25%
and 27%, respectively, of our total sales were attributable to the sale of
medium sized voice communication equipment manufactured by Nitsuko America
Telecom Division (Nitsuko), and approximately 21% and 15% of our total sales
were attributable to the sale of large multimedia platform based exchange
systems manufactured by AVAYA Systems (formerly the enterprise network group of
Lucent Technologies). Sales of Fujitsu systems decreased for the nine
months ended March 31, 2001 and March 31, 2000 to 4.3% and 1.5% of sales,
respectively.

                                       13
<PAGE>

On April 26, 2000 the Company entered into an agreement with Thornhill Group,
Inc., a financial advisory and investment banking firm, which provides us
with financial advisory and investment banking services in exchange for a
combination of fees and/or shares of our common stock. Through March 31, 2001,
all fees have been paid in stock. Pursuant to such agreement, such firm has also
been granted an option to purchase a total of 9.9% of our outstanding shares of
common stock as of April 30, 2002 exercisable through April 30, 2005 at an
exercise price of $.75 per share, subject to customary adjustments.

We do not generally believe our business is seasonal.

                                       14

<PAGE>

                           PART II. OTHER INFORMATION

Item 1. Legal Proceedings

                                 Not applicable.

Item 2. Changes in Securities

The securities issuances discussed below were effected pursuant to
Section 4(2) under the Securities Act of 1933, as amended, based upon the
limited number of offerees, their relationship to the Company, the number of
shares offered in each offering, the size of the respective offerings, and the
manner of each offering:

During the nine months ended March 31, 2001, we obtained loans from several
individual investors aggregating $260,000 which were used for working capital
purposes. On February 12, 2001, such notes were exchanged for 355,957 shares of
our common stock, valued at $.75 per share.

During the quarter ended March 31, 2001: (i) two Company employees exercised
employees exercised stock options for an aggregate of 1,095,459 shares of the
Company's common stock at an exercise price of $.01 per share; (ii) two
employees were issued an aggregate of 45,000 shares as employee compensation;
and (iii) an outside vendor was issued 10,000 shares in full satisfaction of an
accounts payable.

During the nine months ended March 31, 2001, we issued to Thornhill Group, Inc.
140,000 shares of our common stock for consulting services rendered in
connection with a previously executed financial advisory/investment banking
agreement and accrued an additional 60,000 shares for the third quarter which
will be issued during the fourth quarter ended June 30, 2001. These shares were
valued at $.75 per share.

Item 3. Defaults Upon Senior Securities

                                 Not applicable.

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

On January 24, 2001, the Company's Board of Directors and majority shareholders
executed and delivered to the Company a written consent to corporate action
whereby they approved: (i) the reincorporation of the Company from Delaware to
Florida (the Reincorporation) by merging the Company with and into its newly
formed, wholly-owned Florida subsidiary, Method Products Corp. (hereinafter
referred to as the Company); (ii) the adoption of a 2001 Stock Option Plan to
provide for the grant of options to purchase up to 500,000 shares of the
Company's common stock to Company employees, directors and consultants; and
(iii) increased share authorization in the articles of incorporation to provide
for 80,000,000 authorized shares of common stock, $.0001 par value, as well as
authorization for 2,000,000, shares of blank check preferred stock, $.0001 par
value. The Reincorporation of the Company from Delaware to Florida was effected
on March 16, 2001.

Item 5. Other Information

As a result of the Company not being current in its reports under the Securities
Exchange Act of 1934, our common stock was delisted from the OTCBB on or about
November 20, 2001. Our common stock is currently listed on the OTC market
(Symbol: MTDP).

On July 1, 2001, the Company's Board of Directors elected Richard Fieni to fill
a vacancy on the Board of Directors and appointed him to serve as the Company's
President.

We anticipate filing our Form 10-KSB for the fiscal year ended June 30, 2001 on
or prior to December 31, 2001.

Item 6. Exhibits and Reports on Form 8-K

(a) Not applicable.

(b) We filed a Form 8-K on April 5, 2001 which reported the matters discussed in
Item 4 above and the Company's execution of a new lease agreement for its new
facilities, a copy of which lease agreement was included as an exhibit thereto.

                                       15



<PAGE>


                                   SIGNATURES

Pursuant to the requirements of the Exchange Act, the Registrant had duly caused
this Report to be signed on its behalf by the undersigned thereunto duly
authorized.




Date: December 7, 2001             By: /s/ Richard Fieni
                                       ----------------------------------------
                                       Richard Fieni, President

                                       /s/ Milton Barbarosh
                                       -----------------------------------------
                                       Milton Barbarosh, Interim CFO (Principal
                                       Financial and Accounting Officer)


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