U.S. 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 December 31, 2000

                                       OR

[ ] 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 000-31485

                              METHOD PRODUCTS CORP.
        -----------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)

              Delaware                            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)

                              METHOD PRODUCTS CORP.
                           1301 W. Copans Rd. Ste. F-1
                             Pompano Beach, FL 33064


        -----------------------------------------------------------------
               (Former name and former address 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 preceding 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
   ----    -----

              The number of shares outstanding of the registrant's
               common stock as of January 31, 2001 was 8,454,589

         Transitional Small Business Disclosure Format (Check One:)

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



<PAGE>



PART I.  FINANCIAL INFORMATION

Item 1.      Financial Statements

             a) Consolidated Balance Sheet as of 12/31/00 (Unaudited) and June
30, 2000.

             b) Consolidated Statements of Operations (Unaudited) for the six
months and the three months ended 12/31/00 and 12/31/99

             c) Consolidated Statements of Cash Flows (Unaudited) for the six
months ended 12/31/00 and 12/31/99

             d) Notes to Consolidated Financial Statements


<PAGE>



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

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

CURRENT ASSETS:
   Cash and cash equivalents                                             $    58,428   $   326,927
   Accounts receivable, net                                                  759,383        248,464
   Inventories, net                                                          370,012        192,109
   Due from employees                                                         13,446          2,892
   Prepaid expenses and other                                                 34,959         29,369
                                                                         -----------    -----------

       TOTAL CURRENT ASSETS                                                1,236,228       799,761

PROPERTY AND EQUIPMENT, net                                                  364,983        259,029

OTHER ASSETS                                                                  88,787        74,228
                                                                         -----------    -----------

       TOTAL                                                             $ 1,689,998    $ 1,133,018
                                                                         ===========    ===========

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

CURRENT LIABILITIES:
   Lines of credit                                                       $   553,375    $    75,397
   Current portion of long-term debt                                          62,009         61,078
   Accounts payable and accrued expenses                                     954,206        440,989
   Customer deposits                                                          40,789         21,622
   Shareholder loans                                                         260,000             --
   Deferred revenue                                                           38,983         54,967
                                                                         -----------    -----------
       TOTAL CURRENT LIABILITIES                                           1,909,362        654,053
                                                                         -----------    -----------
LONG-TERM DEBT, less current portion                                         166,738        141,949
                                                                         -----------    -----------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY (DEFICIT):
   Common stock, 20,000,000 shares authorized, $0.0001 par
          value; 8,454,589 and 7,330,521 shares issued and
          outstanding at December 31, 2000 and June 30, 2000,
          respectively                                                           845            733
   Additional paid-in capital                                              3,366,029      2,835,808
   Deficit                                                                (3,752,976)    (2,499,525)
                                                                         -----------    -----------

       STOCKHOLDERS' EQUITY (DEFICIT), NET                                  (386,102)       337,016
                                                                         -----------    -----------

       TOTAL                                                             $ 1,689,998    $ 1,133,018
                                                                         ===========    ===========
</TABLE>

            See accompanying notes to consolidated financial statements.

<PAGE>


                      METHOD PRODUCTS CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
              FOR THE THREE MONTHS ENDED DECEMBER 31, 2000 AND 1999
--------------------------------------------------------------------------------


                                                         2000            1999
                                                      -----------    -----------
SALES                                                $ 1,383,531    $   678,718

COST OF SALES                                            992,893        213,252
                                                     -----------    -----------

       GROSS PROFIT                                      390,638        465,466

ADMINISTRATIVE EXPENSES                                1,055,906        370,268
                                                     -----------    -----------
       INCOME/(LOSS) FROM OPERATIONS                    (665,268)        95,198
                                                     -----------    -----------
OTHER (INCOME) EXPENSE:
   Interest expense                                       29,222          6,894
   Other income                                           (2,525)            --
                                                     -----------    -----------
       OTHER EXPENSE, NET                                 26,697          6,894
                                                     -----------    -----------

       INCOME/(LOSS) BEFORE INCOME TAXES                (691,965)        88,304

PROVISION FOR INCOME TAXES                                    --             --
                                                     -----------    -----------
       NET INCOME/(LOSS)                             $  (691,965)   $    88,304
                                                     ===========    ===========



INCOME/(LOSS) PER COMMON SHARE:
   Basic and diluted                                 $    (0.083)   $     0.016
                                                     ===========    ===========
   Weighted average common shares outstanding          8,302,019      5,463,333
                                                     ===========    ===========



            See accompanying notes to consolidated financial statements.


<PAGE>


                      METHOD PRODUCTS CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
               FOR THE SIX MONTHS ENDED DECEMBER 31, 2000 AND 1999
--------------------------------------------------------------------------------


                                                         2000            1999
                                                      -----------    -----------
SALES                                                $ 2,120,665    $ 1,499,967

COST OF SALES                                          1,466,370        867,561
                                                     -----------    -----------

       GROSS PROFIT                                      654,295        632,406

ADMINISTRATIVE EXPENSES                                1,790,189        670,873
                                                     -----------    -----------
       INCOME/(LOSS) FROM OPERATIONS                  (1,135,894)      ( 38,467)
                                                     -----------    -----------
OTHER (INCOME) EXPENSE:
   Interest expense                                       38,728         13,318
   Other income                                           (7,116)            --
                                                     -----------    -----------
       OTHER EXPENSE, NET                                 31,612         13,318

       INCOME/(LOSS) BEFORE INCOME TAXES              (1,167,506)      ( 51,785)

PROVISION FOR INCOME TAXES                                    --             --
                                                     -----------    -----------
       NET INCOME/(LOSS)                             $(1,167,506)   $  ( 51,785)
                                                     ===========    ===========



INCOME/(LOSS) PER COMMON SHARE:
   Basic and diluted                                 $    (0.149)   $    (0.010)
                                                     ===========    ===========
   Weighted average common shares outstanding          7,829,853      5,428,334
                                                     ===========    ===========



            See accompanying notes to consolidated financial statements.


<PAGE>


                      METHOD PRODUCTS CORP. AND SUBSIDIARY
       CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
                                   (UNAUDITED)
                   FOR THE SIX MONTHS ENDED DECEMBER 31, 2000
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                                 Common Stock
                                                             ---------------------   Additional                  Stockholders'
                                                                            at        Paid-n                        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                         --          --           --             --             --

Issuance of stock for services                                 171,500          17      128,608             --        128,625

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 market value                   --          --       84,362             --         84,362

Net loss for the six months ended December 31, 2000                 --          --           --     (1,167,506)    (1,167,506)
                                                             ---------    --------   ----------    -----------    -----------
STOCKHOLDERS' DEFICIT, December 31, 2000                     8,454,589    $    845   $3,366,029    ($3,752,976)   ($  386,102)
                                                             =========    ========   ==========     ==========    ===========
</TABLE>



<PAGE>


                      METHOD PRODUCTS CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
               FOR THE SIX MONTHS ENDED DECEMBER 31, 2000 AND 1999
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                      2000              1999
                                                                                  -----------        ----------
<S>                                                                               <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                                                       $(1,167,506)       $   (51,785)
   Adjustments to reconcile net loss to net cash
   used in operating activities:
      Depreciation and amortization                                                    55,994             35,032
      Provision for bad debts                                                          60,545                 --
      Common Stock issued for services                                                128,625                 --
      Options issued below fair market value                                           84,362                 --

      Changes in certain assets and liabilities net of amounts from merger:

         Accounts receivable                                                         (571,464)           (39,446)
         Inventories                                                                   45,380            (29,597)
         Due from employees                                                           (10,554)           (24,682)
         Prepaid expenses and other                                                    (5,590)             8,557
         Accounts payable and accrued expenses                                        432,792            101,197
         Customer deposits                                                             19,167           (171,886)
         Deferred revenue                                                              38,983                 --
         Income tax payable                                                                --            (11,693)
                                                                                  -----------        -----------

       NET CASH (USED IN) OPERATING ACTIVITIES                                       (889,267)          (184,303)
                                                                                  -----------        -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of property and equipment                                                 (90,321)            (1,580)
   Change in other assets                                                             (20,979)            (4,999)
                                                                                  -----------        -----------

       NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                           (111,300)            (6,579)
                                                                                  -----------        -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Net change in line(s) of credit                                                    477,978                 --
   Payments on long term debt                                                         (39,490)           (31,943)
   Payments on litigation settlements                                                      --            (13,778)
   Notes payable, shareholders                                                        260,000                 --
   Cash acquired in merger                                                             33,580                 --
   Common stock issued for cash, net                                                       --             50,058
                                                                                  -----------        -----------

       NET CASH PROVIDED BY FINANCING ACTIVITIES                                      732,068              4,337
                                                                                  -----------        -----------

       NET DECREASE IN CASH AND CASH EQUIVALENTS                                     (268,499)          (186,545)

CASH AND CASH EQUIVALENTS, Beginning of year                                          326,927            219,896
                                                                                  -----------        -----------

CASH AND CASH EQUIVALENTS, End of year                                            $    58,428        $    33,351
                                                                                  ===========        ===========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
   Interest paid in cash                                                          $    29,222        $     6,424
                                                                                  ===========        ===========
   Income taxes paid in cash                                                      $        --        $    11,693
                                                                                  ===========        ===========

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 six months ended December 31, 2000, the Company entered into
long-term debt and capital leases for approximately $65,720 for vehicles and
office equipment (See Note 4).
</TABLE>

          See accompanying notes to consolidated financial statements.


<PAGE>


                      METHOD PRODUCTS CORP. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                   FOR THE SIX MONTHS ENDED DECEMBER 31, 2000

                                   (Unaudited)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organizations and Basis of Presentation

The accompanying consolidated financial statements of Method Products Corp., a
Delaware 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 six months and three months ended December 31, 2000
and 1999 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).

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 $386,102 at December 31, 2000. In addition, the
Company has a deficit in working capital of $673,134 at December 31, 2000.
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.


<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 six
months ended December 31, 2000, the Company did not possess any derivatives to
be accounted for under SFAS No. 133.

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

         Certain amounts have been reclassified in the 1999 financial statements
to conform to 2000 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 83% 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 six months ended December 31, 2000, 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.


<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 six months ended December 31, 2000, certain existing and prospective
shareholders lent $260,000 to the Company in exchange for notes bearing interest
at 8%. On or about February 20, 2001, the notes will be exchanged for 346,667
shares of common stock of the Company, valued at $0.75 a share. The accrued
interest will be paid, in cash, to the noteholders when the shares are issued.

Note 7. NET LOSS PER COMMON SHARE
For the three months and six months ended December 31, 2000 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 December 31, 2000 by approximately 5,555,549. For the
three months and six months ended December 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 six months ended December 31, 2000 and
December 31, 1999 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.


<PAGE>





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

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 required or otherwise
desired, our dependence upon certain existing key personnel, a substantial
percentage of our business is currently dependent upon two suppliers, lack of
formal agreement with one of our key suppliers, non-exclusive dealership
agreement with key dealer which may be terminated upon 60 days notice, 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 or 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.

          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 growth strategy which will entail, among other
things, the possible acquisition 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

          Six months and three months ended December 31, 2000 compared to six
months and three months ended December 31, 1999, respectively.

          Net sales for the six months ended December 31, 2000 were $2,120,665,
as compared to net sales for the six months ended December 31, 1999 of
$1,499,967. Net sales for the three months ended December 31, 2000 were
$1,383,531, as compared to net sales for the three months ended December 31,
1999 of $678,718. These increases are primarily attributable to management's
concentration upon the hiring and integration of additional sales staff.

<PAGE>

          Cost of sales was $1,466,370 or approximately 69% of sales for the six
months ended December 31, 2000 as compared to cost of sales for the six months
ended December 31, 1999 of $867,561 or approximately 58% of sales. Cost of sales
for the three months ended December 31, 2000 was $992,893 or approximately 72%
of sales as compared to three months ended December 31, 1999 of $213,252 or
approximately 31% 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 six months ended December 31, 2000,
which substantially consist of sales and administrative labor, amounted to
$1,790,189 as compared to $670,873 for the six months ended December 31, 1999.
The Administrative expenses for the three months ended December 31, 2000 were
$1,055,906 as compared to the three months ended December 31, 1999 of $370,268.
These increases are attributable to the hiring of additional sales personnel and
related administrative support staff in conjunction with the asset purchase
agreement and anticipation of expanded sales and marketing efforts, and for
other administrative costs, as further described below.

          Consulting fees were $5,526 for the six months ended December 31, 2000
as compared to $32,547 for the six months ended December 31, 1999. For the three
months ended December 31, 2000 consulting fees were ($1,474) as compared to
$32,547 for the three months ended December 31, 1999. The decrease is
attributable to the completion of services rendered in accordance with our
agreement with one individual.

          Salaries were $810,389 for the six months ended December 31, 2000 as
compared to $216,373 for the six months ended December 31, 1999 and $541,140 for
the three months ended December 31, 2000 as compared to $106,110 for the three
months ended December 31, 1999. The increase is attributable to our increased
sales and administrative staff. As of December 31, 2000, the Company had
approximately 65 employees most of which were hired at the end of September
2000, compared to approximately 18 employees at December 31, 1999. The Company
has felt the full impact of these costs for the second quarter ended December
31, 2000.

          Professional fees were $121,776 for the six months ended December 31,
2000 as compared to $21,610 for the six months ended December 31, 1999 and
$48,705 for the three months ended December 31, 2000 as compared to $4,978 for
the three months ended December 31, 1999. 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 $808,636 for the six months ended December 31, 2000 as compared
to $441,337 for the six months ended December 31, 1999. For the three months
ended December 31, 2000, other selling, general and administrative expenses were
$494,535 as compared to $267,627 for the three months ended December 31, 1999.
The increase is attributable to expenses directly associated with increased
staffing as well as financing activities.

          Interest expense was $38,728 for the six months ended December 31,
2000 as compared to $13,318 for the six months ended December 31, 1999 and
$29,222 for the three months ended December 31, 2000 as compare to $6,894 for
the three months ended December 31, 1999. The increase is attributable to
additional equipment debt financing and the commencement of our line of credit
with General Electric Capital Corporation ("GE Capital"), further discussed
below.

          As a result of the foregoing factors, we incurred losses of
approximately $1,167,506 or ($.149) per share for the six months ended December
31, 2000 as compared to a loss of approximately $51,785 or ($.010) per share for
the six month period ended December 31, 1999. For the three month period ended
December 31, 2000, we incurred losses of approximately $691,965 or ($.083) per
share and a net income of $88,304 or $.016 per share for the three months ended
December 31, 1999.


<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 December 31, 2000, we had stockholders' deficit of approximately
$386,102 and a deficit in working capital of $673,134. Since our inception, we
have incurred losses of approximately $3,752,976. Our operations and growth have
been funded by the sale of common stock with gross cash proceeds of
approximately $1,223,000, shareholder loans of approximately $260,000 as
discussed in note 6, and working capital borrowings, further discussed below, of
approximately $553,375. These funds have been used for working capital and
capital expenditures.

          Our commitments for capital expenditure include the following:

build-out of our expanded new headquarters, a facility of approximately 10,000
square feet, in which there was approximately $33,000 in additional build-out
cost. In addition a possible upgrade of telephone and computer equipment of
approximately $50,000 may occur within the third quarter of the fiscal year. The
Company entered into a lease agreement for the new headquarters for
approximately $473,964 over 60 months.

          We believe our current sources of credit and liquidity, including the
recently obtained revolving credit line with GE Capital, discussed below,
assuming our compliance with the terms and conditions thereof, will provide
sufficient liquidity to meet our cash requirements to sustain existing
operations for approximately the next 9 months and that recently increased sales
and marketing efforts will grow our market share and provide sufficient cash
flows to meet our current operating needs. We believe, however, that additional
funding of up to approximately $2 million over such time period will be
necessary to grow our operations to a desired increased level. A key element of
our growth strategy is the acquisition of additional telecommunications
companies. We believe we may be able to acquire such companies or select assets
through the issuance of our shares of common stock. It is possible, however,
that certain acquisition candidates may also require cash to be acquired. In
such an event, we may require additional funding to finance such acquisitions.
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.

          As of December 31, 2000, we have three lines of credit with
commercial lenders. The agreements provide for maximum revolving lines of credit
of $683,000. Interest at December 31, 2000 ranges from 9.5% to 19.4%. The
aggregate amount outstanding at December 31, 2000 was $553,375. On August 17,
2000, our predecessor, Method Products Corp., a Florida corporation ("Method"),
closed on a $600,000 revolving line of credit with GE Capital. The term of such
credit line, which contains customary financial covenants, which have been
orally waived by GE Capital for approximately 6 months from August 17, 2000, is
2 years, with an interest rate of 2 points over prime. The borrowing line is 83%
of the value of our eligible accounts receivable. The line of credit is secured
by our assets and is personally guaranteed by our three principal executive
officers/directors. Utilizing the GE Capital line of credit, one credit line has
been paid off in full with $23,899 and $4,611 outstanding on the two remaining
lines of credit as of December 31, 2000. As of December 31, 2000, and February
08, 2000, we have an outstanding balance of $524,874 and $519,473, respectively,
on such GE Capital credit line. Such draw down amount may differ significantly
on a day-to-day basis.

          During the six months ended December 31, 2000, we obtained loans from
several individual investors aggregating $260,000 which were used for working
capital purposes. On or about February 20, 2000, such notes will be exchanged
for 346,667 shares of our common stock, valued at $.75 per share.

          For the six months ended December 31, 2000 and December 31, 1999,
approximately 29% and 22%, 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 17% and 22% of our total
sales were attributable to the sale of large multimedia platform based exchange
systems manufactured by AVAYA Systems (formerly Lucent Technologies). Sales of
Fujitsu systems have decreased for the six months ended December 31, 2000 and
December 31, 1999 to 1.2% and .58% of sales respectively. Inasmuch as our
dealership agreement with Fujitsu is non-exclusive and we do not have a formal


<PAGE>


agreement with Nitsuko, termination or change of our business relationship with
either Nitsuko, AVAYA or Fujitsu could have a material adverse effect on us.

          On April 26, 2000 the Company entered into an agreement with Thornhill
Group, Inc., a financial advisory and investment banking firm, which will
provide us with financial advisory and investment banking services in exchange
for a combination of fees and/or shares of our common stock. Through December
31, 2000, 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.

PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings

                   Not applicable.

Item 2.   Changes in Securities

          During the six months ended December 31, 2000, we issued to Thornhill
Group, Inc. 80,000 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 second quarter which
will be issued during the third quarter ended March 31, 2000. These shares were
valued at $.75 per share.

          Effective November 1, 2000, we entered into an asset purchase
agreement with an unrelated third party to purchase the inventory of such entity
in exchange for 297,711 shares of our common stock, valued at $.75 per share,
which shares were issued on or about November 29, 2000. The purchase price of
such inventory was $223,283, which approximates the wholesale value of the
inventory.

         The $33,580 in offering proceeds that we received in connection with
Arielle's reconfirmation offering pursuant to Rule 419 under the Securities Act
of 1933, as amended, have been utilized for payments of accounts payable and
accrued liabilities.

            On or about November 29, 2000, the Company issued 30,000 shares of
common stock valued at $.75 per share to two employees as a year end bonus.


<PAGE>


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

          On October 6, 2000, pursuant to an Agreement and Plan of Merger (the
"Merger Agreement") dated as of January 12, 2000 between Arielle and Method, all
of the issued and outstanding shares of common stock of Method as of January 12,
2000, together with additional Method shares of common stock issued subsequent
thereto, were exchanged on a tax-free basis for 7,412,021 shares of common stock
of Arielle (representing approximately 91.87% of the surviving entity), in a
transaction in which Arielle, whose name was changed to Method Products Corp. in
the Certificate of Merger filed with the Delaware Secretary of State, was the
surviving legal corporation.

          The Merger Agreement was adopted by unanimous consent of the Board of
Directors of Arielle and approved by more than 80% of the shareholders of
Arielle pursuant to a reconfirmation offer conducted by Arielle in accordance
with Rule 419 under the Securities Act of 1933, as amended. Three Shareholders
did not reconfirm such offer.

          The Merger Agreement was adopted by unanimous consent of the Board of
Directors of Method on January 12, 2000 and approved by the written consent of a
majority of Method's shareholders on October 5, 2000. A copy of the Merger
Agreement was previously filed as Exhibit 2 to Arielle's Form SB-2 Registration
Statement, as amended, which Exhibit, together with such Form SB-2 Registration
Statement, as amended, is incorporated by reference in their entirety herein.

          In connection with the merger, the officers and directors of Method
became our officers, in their same prior capacities, and directors, the bylaws
of Arielle continue as our bylaws, and the officers and directors of Arielle
resigned.

Item 5.   Other Information

             On February 8, 2001, NASD Regulation approved the Company for
listing on the Over-the-Counter Bulletin Board (symbol: MTDP).

             In connection with the Merger Agreement, which provides that
779,152 shares of the Company's common stock be deposited into an escrow account
by Company shareholders, to be released from escrow if the Company achieves
sales of a minimum of $5,000,000 in the first complete fiscal year following the
merger, and returned to treasury if such sales are not achieved, the Company's
President, Executive Vice President and Chief Executive Officer have
collectively agreed to deposit such aggregate number of shares in escrow in
performance of such escrow provision.

Item 6.   Exhibits and Reports on Form 8-K

                (a) - All exhibits required to be filed herein, except as
        otherwise provided, are incorporated by reference to the Company's Form
        SB-2, as amended, previously filed August 17, 1998 with the U.S.
        Securities and Exchange Commission

                (b) We filed a Form 8-K on October 23, 2000 which discussed: (a)
        the consummation of the merger by and between Method and Arielle and
        Arielle's subsequent name change to Method Products Corp. and (b) the
        Loan and Security Agreement by and between Method and GE Capital whereby
        Method obtained a revolving credit line from GE Capital in the principal
        amount of $600,000.


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                                   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: February 14, 2000          By:    /s/ Mark Antonucci
                                    --------------------------------------------
                                        Mark Antonucci, Chief Executive Officer,
                                        Chief Financial Officer and Secretary