<PAGE>


================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

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

                  For the quarterly period ended June 30, 2001

                                       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 0-27971

                      THE FINANCIAL COMMERCE NETWORK, INC.
             (Exact name of registrant as specified in its charter)


             NEVADA                                         22-2582276
(State or other jurisdiction of                (IRS Employer Identification No.)
  incorporation or organization)

                                 40 Wall Street
                            New York, New York 10005
              (Address of principal executive offices and zip code)

                                 (212) 635-9587
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 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 [ ].

Indicate the number of shares outstanding of each of the registrant's classes of
common stock as of the latest practicable date: 48,280,256 shares of common
stock, $.001 par value, as of June 30, 2001.


================================================================================



<PAGE>


                      THE FINANCIAL COMMERCE NETWORK, INC.

                                   FORM 10-QSB

                       FOR THE QUARTER ENDED JUNE 30, 2001

                                TABLE OF CONTENTS


Part I.  CONDENSED CONSOLIDATED FINANCIAL INFORMATION

<TABLE>
<CAPTION>
                                                                                 Page
                                                                                 ----
<S>                                                                             <C>
Item 1.  Condensed Consolidated Financial Statements

         Condensed Consolidated Balance Sheets
              June 30, 2001 and December 31, 2000                                  3

         Condensed Consolidated Statements of Operations
              Three months and six months ended June 30, 2001 and 2000             4

         Condensed Consolidated Statements of Cash Flows
              Three months and six months ended June 30, 2001 and 2000             5

         Notes to Condensed Consolidated Financial Statements                    6-14

Item 2.  Management's Discussion and Analysis of Financial Condition and
              Results of Operations                                             15-16



PART II. OTHER INFORMATION

Item 2.  Changes in Securities                                                    17

         Signatures                                                               18
</TABLE>


                                        2



<PAGE>


             THE FINANCIAL COMMERCE NETWORK, INC.

               Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                                                    June 30,            December 31,
                                                                                      2001                  2000
                                                                                      ----                  ----
                               ASSETS                                             (unaudited)
                               ------
<S>                                                                             <C>                 <C>
Current Assets
  Cash and equivalents                                                          $        55,696     $           572
  Due from broker                                                                        76,839             159,649
  Marketable securities owned, at market                                                199,891               7,614
  Other securities owned, at fair value                                                  13,327              13,327
  Due from affiliates                                                                   281,878             133,983
  Other current assets                                                                  196,360             155,882
                                                                                  --------------      --------------
          Total Current Assets                                                          823,991             471,027

  Office equipment, net                                                                   7,839               9,258
  Other assets                                                                          306,283             331,321
                                                                                  --------------      --------------

TOTAL ASSETS                                                                    $     1,138,113     $       811,606
                                                                                  ==============      ==============

                      LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
  Bank loan payable                                                             $        35,939     $        38,879
  Convertible notes payable                                                             272,000             100,000
  Loans payable                                                                         206,542                   -
  Accounts payable and accrued expenses                                               1,371,653           1,267,229
  Commissions payable                                                                    36,305              12,380
  Deferred compensation                                                                       -             435,000
  Due to stockholders, officers and directors                                            30,069             199,873
                                                                                  --------------      --------------
          Total Current Liabilities                                                   1,952,508           2,053,361

Commitments and contingencies

Long-term liabilities
  Bank loan payable, less current portion                                                     -               7,232
  Deferred compensation                                                               1,091,000             656,000

Stockholders' (Deficit)
  Common stock, 50,000,000 shares authorized at $.001 par value; issued and
    outstanding 48,280,256 at June 30, 2001
    and 27,649,123 at December 31, 2000                                                  48,281              27,650
  Convertible preferred stock 10,000,000 shares authorized
    at $.001 par value; issued and outstanding
    67,500 at June 30, 2001 and December 31, 2000                                            67                  67
  Additional paid-in capital                                                         34,497,739          33,925,841
  Deficit                                                                           (36,294,896)        (35,667,942)
  Treasury stock - preferred stock, 5,000 and 5,000 shares                              (50,000)            (50,000)
  Treasury stock - common stock, 544,436 and 79,436 shares                              (81,586)           (115,603)
  Subscription receivable                                                               (25,000)            (25,000)
                                                                                  --------------      --------------
          Total Stockholders' (Deficit)                                              (1,905,395)         (1,904,987)
                                                                                  --------------      --------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                     $     1,138,113     $       811,606
                                                                                  ==============      ==============
</TABLE>


                       See Notes to Financial Statements.



                                        3



<PAGE>


                      THE FINANCIAL COMMERCE NETWORK, INC.
                      Consolidated Statements of Operations
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                  For the Three Months              For the Six Months
                                                                     Ended June 30,                   Ended June 30,
                                                                 2001             2000             2001            2000
                                                                 ----             ----             ----             ----
<S>                                                        <C>              <C>              <C>              <C>
Revenues
Trading and commissions                                    $     217,997    $     (57,701)   $     273,730    $     814,181
Investment banking                                                 4,520           14,300            8,520           37,969
Interest                                                           1,945            4,068            4,231            9,693
Other                                                              2,045                -           26,435           13,125
                                                             ------------     ------------     ------------     ------------
                                                             ------------     ------------     ------------     ------------
                                                                 226,507          (39,333)         312,916          874,968
Selling, General and Administrative Expenses
Employee compensation and benefits                               140,674          160,005          210,021        1,258,627
Clearance fees                                                    24,694           52,333           44,267           95,631
Occupancy                                                         74,798          105,046          133,542          139,098
Communications                                                    87,591           12,766          131,921           51,278
Insurance                                                              -           10,424            3,729           22,139
Stock option and warrant compensation                                  -          671,876                -          688,736
Other                                                            250,578          251,969          350,010          638,407
                                                             ------------     ------------     ------------     ------------
                                                                 578,335        1,264,419          873,490        2,893,916

(Loss) from operations                                          (351,828)      (1,303,752)        (560,574)      (2,018,948)

Other Income and Expenses
Interest income                                                        -                -                1                -
Interest expense                                                  (7,249)               -          (10,581)               -
                                                             ------------     ------------     ------------     ------------
                                                                  (7,249)               -          (10,580)               -
                                                             ------------     ------------     ------------     ------------

(Loss) before income tax (benefit) and preferred
   stock dividends                                              (359,077)      (1,303,752)        (571,154)      (2,018,948)
Income tax (benefit)                                                   -                -                -                -
                                                             ------------     ------------     ------------     ------------
(Loss) before preferred stock dividends                         (359,077)      (1,303,752)        (571,154)      (2,018,948)
Preferred Stock dividends                                        (27,900)               -          (55,800)               -
                                                             ------------     ------------     ------------     ------------
Net (loss) applicable to common shares                     $    (386,977)   $  (1,303,752)   $    (626,954)   $  (2,018,948)
                                                             ============     ============     ============     ============

Basic and diluted (loss) per share                         $       (0.01)   $       (0.06)   $       (0.02)   $       (0.09)
                                                             ============     ============     ============     ============

Basic and diluted average shares outstanding                  33,963,804       22,459,615       31,625,454       21,697,371
                                                             ============     ============     ============     ============
</TABLE>


                       See Notes to Financial Statements.



                                        4



<PAGE>


                      THE FINANCIAL COMMERCE NETWORK, INC.
                      Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                               For the Three Months                 For the Six Months
                                                                  Ended June 30,                      Ended June 30,
                                                               2001            2000              2001                2000
                                                               ----            ----              ----                ----
<S>                                                       <C>             <C>              <C>              <C>
Operating Activities
   Net (loss)                                             $   (359,463)   $  (1,303,752)   $    (571,540)   $  (2,018,948)
   Adjustments to reconcile net (loss) to
      net cash used by operating activities:
   Stock option and warrant compensation                             -          337,500                -          688,736
   Common stock issued for compensation                              -          229,609                -          296,876
   Common stock to be issued for services                            -           37,500                -           37,500
   Common stock issued for services                                  -                -            4,200          230,314
   Depreciation and amortization                                   925            5,000            1,419            5,000
   Changes in operating assets and liabilities:
      Marketable securities owned, at market                  (195,705)         622,057         (192,277)         101,066
      Other securities owned, at fair value                          -           (7,555)               -           28,918
      Due from clearing broker                                  48,675           11,200           82,810                -
      Other current assets                                     (16,486)         268,061          (40,478)         203,000
      Other assets                                             (32,555)        (315,000)          25,038         (315,000)
      Accounts payable and accrued expenses                    306,246           41,445          112,424         (169,349)
      Commissions payable                                       28,068          (58,231)          23,925          (12,562)
      Director fees payable                                     30,625                -           61,250           69,250
      Deferred compensation                                          -          162,500                -          322,000
                                                            -----------     ------------     ------------     ------------
   Net cash (used) by operating activities                    (189,670)          30,334         (493,229)        (533,199)

Financing Activities
   Sale of common stock                                        150,000           38,361          325,000          720,000
   (Acquisition of) sale of treasury stock                           -           10,065                -           10,065
   Advances from affiliates                                   (153,595)             432         (147,895)          10,753
   Payments on bank loan                                        (4,641)          (5,006)         (10,172)          (8,402)
   Repayments to stockholders                                  (99,587)        (121,000)         (97,122)        (219,627)
   Loans payable                                                46,784                           206,542                -
   Convertible loans payable                                   272,000                           272,000                -
                                                            -----------     ------------     ------------     ------------
   Net cash provided by financing activities                   210,961          (77,148)         548,353          512,789
                                                            -----------     ------------     ------------     ------------

   Increase (decrease) in cash                                  21,291          (46,814)          55,124          (20,410)
   Cash at beginning of period                                  34,405           49,408              572           23,004
                                                            -----------     ------------     ------------     ------------
   Cash at end of period                                  $     55,696    $       2,594    $      55,696    $       2,594
                                                            ===========     ============     ============     ============

Supplemental Disclosures of Cash Flow Information:
  Cash paid during year for:
     Interest                                             $          -    $           -    $       1,078    $           -
                                                            ===========     ============     ============     ============
     Income taxes                                         $          -    $           -    $           -    $           -
                                                            ===========     ============     ============     ============
</TABLE>

            See Notes to Financial Statements.



                                        5



<PAGE>


                      THE FINANCIAL COMMERCE NETWORK, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 June 30, 2001



Note 1 - ORGANIZATION AND OPERATIONS

         The Financial Commerce Network, Inc. ("TFCN") was incorporated in the
         State of Washington in July 1969. TFCN is a holding company. Its wholly
         owned subsidiary, Alexander, Wescott & Co., Inc. (ALWC), is a
         broker-dealer registered with the Securities and Exchange Commission
         (SEC), the Commodity Futures Trading Commission (CFTC) and is also a
         member of the National Association of Securities Dealers, Inc. (NASD)
         and the National Futures Association (NFA). ALWC's operations consist
         primarily of engaging in principal transactions and providing
         investment banking services. Alexander Wescott Securities, Ltd. (ALWS)
         is a Bermuda based broker dealer. Its wholly owned StockChicken.com
         (SC) subsidiary is a financial information provider which has no
         operations.

         Name Changes

         On May 13, 1999 the Company changed its name from Intrex to Intrex.com.
         On September 8, 1999 the Company changed its name to The Financial
         Commerce Network, Inc.

         The accompanying unaudited financial statements have been prepared by
         The Financial Commerce Network, Inc. in accordance with the rules and
         regulations of the Securities and Exchange Commission for interim
         financial statements. Accordingly, certain information and footnote
         disclosures, normally included in financial statements prepared in
         accordance with generally accepted accounting principles, have been
         condensed or omitted pursuant to such rules and regulations. In the
         opinion of management of the Company, the unaudited financial
         statements reflect all adjustments, consisting only of normal recurring
         adjustments, necessary for a fair presentation of the Company's
         financial position at June 30, 2001, its operating results for the
         three and six months ended June 30, 2001 and 2000 and cash flows for
         the three and six months ended June 30, 2001 and 2000. The balance
         sheet at December 31, 2000 has been derived from the Company's audited
         consolidated financial statements as of that date. Th financial
         statements and the notes should be read in conjunction with the
         Company's audited consolidated financial statements and notes thereto
         contained in the Company's annual report on Form 10-KSB for the year
         ended December 31, 2000 filed with the Securities and Exchange
         Commission.

         The results of operations for the three and six months ended June 30,
         2001 are not necessarily indicative of the results that may be expected
         for future quarters or the year ending December 31, 2001.



                                        6



<PAGE>


                      THE FINANCIAL COMMERCE NETWORK, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2001


Note 1 - ORGANIZATION AND OPERATIONS (continued)

         Acquisitions

         Effective March 29, 1999, Alexander, Wescott Holdings, Inc. (Holdings),
         the parent company of ALWC, entered into an agreement with TFCN. The
         agreement provided for TFCN to issue 13,500,000 shares of its common
         stock and assume liabilities of approximately $572,000, in exchange for
         all of Holdings' outstanding shares of ALWC in a transaction accounted
         for as a reverse merger. As a result, ALWC is considered, for
         accounting purposes, to be the acquiring company since the stockholders
         of ALWC acquired more than 50% of the issued and outstanding stock of
         TFCN. The accompanying consolidated financial statements give effect to
         this reverse merger.

         During the first quarter of 2000, TFCN entered into an agreement with
         Alexander Wescott International, LTD., (sole shareholder of ALWS),
         whereby TFCN would exchange 125,000 restricted shares of the Company's
         common stock in exchange for all of the issued and outstanding shares
         of ALWS. The consolidated financial statements give effect to this
         acquisition for all periods presented, as the entities were entities
         under common control, therefore, the acquisition is presented as an
         as-if pooling. The shares were issued during June 2000.

         During May 2000, TFCN entered into an agreement whereby TFCN exchanged
         200,000 restricted shares of the Company's common stock in exchange for
         all of the issued and outstanding shares of StockChicken.com and
         assumed liabilities of approximately $47,000. The shares were issued to
         the stockholders of StockChicken.com with a valuation of $2.00 per
         share. The acquisition has a "reset" provision that provides on the
         sixth month anniversary of the closing, if the price of TFCN common
         stock is below a $2.00 bid price for five consecutive trading days,
         then the selling shareholders will be given an additional number of
         TFCN common shares to offset the price. The accompanying consolidated
         financial statements reflect operations of StockChicken.com from May
         18, 2000, the closing date of the agreement, through December 31, 2000.
         In connection with this transaction, the Company recorded goodwill of
         approximately $447,704, which represents the excess value of the shares
         issued over the net assets of StockChicken.com that were acquired. For
         the period May 18, 2000 to December 31, 2000, StockChicken.com had no
         revenues. In December 2000, the Company issued an additional 1,494,924
         restricted shares of the Company's common stock for the "reset"
         provision of the contract. The management of the Company believes that
         due to current economic conditions, the value of the goodwill has been
         impaired and, therefore the value of the goodwill has been reduced to
         $1,000.



                                        7



<PAGE>


                      THE FINANCIAL COMMERCE NETWORK, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2001


Note 1 - ORGANIZATION AND OPERATIONS (continued)

         In June 2000, the Company issued 30,000 shares of restricted common
         stock in exchange for the domain name "Irishheritagestore.com" and all
         rights associated with any and all revenues generated from the
         arrangement with Vstore.com, the provider of the merchandise for
         Irishheritagestore.com. The restricted common stock was valued at
         $22,500. The management of the Company believes that due to current
         economic conditions, the value of the domain name has been impaired
         and, therefore the value has been reduced to $1,000.

         In August 2000, the Company issued 50,000 shares of restricted common
         stock in exchange for the rights to the domain names the 500PitStop.com
         and CountryandWesternHits.com and all rights associated with and any
         and all revenue generated from the seller's agreement with Vstore.com.
         The restricted common stock was valued at $37,500. The management of
         the Company believes that due to current economic conditions, the value
         of the domain name has been impaired and, therefore the value has been
         reduced to $1,000.

         Investments

         On March 15, 2000, the Company acquired 490,196 shares of
         Naturalist.com, 4.8%, of its outstanding common stock, for an
         investment of $250,000. Naturalist.com is an internet portal. As of
         March 31, 2001 and December 31, 2000, the Company is carrying the
         investment at cost.

         Included in other current assets is approximately $145,000 due from
         Rascals International, Ltd. The amount is payable in either cash or
         shares of Rascals common stock, at a valuation of $.20 per share.

         Also, in March 2000, the Company purchased an 8% interest in American
         Association of Professional Athletes, Inc. for $69,600. The investment
         was recorded at cost. However, at December 31, 2000 management of the
         Company, reduced the value of its investment to $1,000 based upon its
         estimated market value.



                                        8



<PAGE>


                      THE FINANCIAL COMMERCE NETWORK, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2001



Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         Principles of Consolidation

         The consolidated financial statements include the accounts of The
         Financial Commerce Network, Inc. and its wholly-owned subsidiaries,
         Alexander, Wescott & Co. Inc., Alexander Westcott Securities since
         inception and Stockchicken.com since May 18, 2000 (collectively the
         Company). All significant intercompany transactions and balances have
         been eliminated in consolidation.

         Cash and Cash Equivalents

         The Company considers money market accounts to be cash equivalents.

         Office Equipment

         Office equipment is stated at cost less accumulated depreciation. The
         Company provides for depreciation using the straight-line method over
         an estimated useful life of 6 years.

         Securities Transactions

         Securities transactions and the related revenues and expenses are
         recorded on the trade-date basis.

         Investment Banking Revenues

         Investment banking revenues are recorded in accordance with the terms
         of the investment banking agreements.

         Marketable Securities Owned

         Marketable securities owned consist of equity securities and money
         market funds that are valued at market.

         Other Securities Owned

         Other securities owned, at fair value consist of restricted equity
         securities and warrants received in connection with investment banking
         services, that are recorded at fair value which is determined by
         Management.



                                        9



<PAGE>


                      THE FINANCIAL COMMERCE NETWORK, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2001



Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

         Goodwill

         Goodwill represents the excess of acquisition costs over the fair
         market value of the net assets of acquired businesses. TFCN's policy is
         to periodically review the value assigned to goodwill to determine if
         it has been permanently impaired by adverse conditions which might
         affect TCFN.

         Earnings (Loss) Per Common Share

         The Company reports earnings (loss) per share in accordance with SFAS
         No. 128, "Earnings Per Share", which requires the reporting of both
         basic and diluted earnings per share. Net income per share-basic is
         computed by dividing income available to common shareholders by the
         weighted average number of common shares outstanding for the period.
         Shares issuable under stock warrants are excluded from computations as
         their effect is antidilutive.

         Income Taxes

         The Company complies with Statement of Financial Accounting Standards
         No. 109 ("SFAS 109"), "Accounting for Income Taxes". SFAS 109 requires
         the recognition of deferred tax assets and liabilities for both the
         expected future tax impact of differences between the financial
         statement and tax basis of assets and liabilities, and for the expected
         future tax benefit to be derived from tax loss carryforwards. Valuation
         allowances are established, when necessary, to reduce deferred tax
         assets to the amount expected to be realized.

         Use of Estimates

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



                                       10



<PAGE>


                      THE FINANCIAL COMMERCE NETWORK, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2001

Note 3 - GOING CONCERN MATTERS

         The accompanying financial statements have been prepared on a going
         concern basis, which contemplates the realization of assets and the
         satisfaction of liabilities in the normal course of business. For the
         six months ended June 30, 2001, the Company incurred a net loss of
         approximately $571,000. For the years ended December 31, 2000 and 1999,
         the Company incurred losses from operations of approximately $2,987,000
         and $4,735,000 respectively, exclusive of charges for (1) stock based
         compensation and consulting fee of approximately $717,000 and
         $26,784,000, respectively (2) impairment of assets of approximately
         $598,000 in 2000 and generated negative cash flows from operations of
         approximately $836,000 and $2,478,000 respectively.

         These losses resulted primarily from the Company establishing itself as
         a reporting public company, developing an Internet portal, and building
         an infrastructure. In order to effectuate the foregoing, key revenue
         producers employed by ALWC were heavily involved and were, therefore,
         limited in the time they were able to devote to generating revenues
         during the year. Toward the end of 1999 and during 2000, having
         completed establishing itself as a public company, the Company began
         addressing its operations and substantially reduced costs through staff
         reductions and office consolidations. For the three and six months
         ended June 30, 2001 and the year ended December 31, 2000, the Company
         raised approximately, $175,000, $325,000 and $1,140,000, respectively,
         through private placements.

         The financial statements do not include any adjustments relating to the
         recoverability and classification of liabilities that might be
         necessary should the Company be unable to continue as a going concern.
         Management believes that the Company will continue as a going concern
         because it has the ability to extend the loans and obtain additional
         loans from its major shareholder. As a result, the Company will have
         sufficient cash to operate for the next twelve months. The Company is
         also actively pursuing additional equity financing through stock sales
         and when necessary management has loaned money to the Company for
         working capital.


Note 4 - NET CAPITAL REQUIREMENT

         ALWC, as a member of the NASD, is subject to the SEC Uniform Net
         Capital Rule 15c3-1. This rule requires the maintenance of minimum net
         capital and that the ratio of aggregate indebtedness to net capital,
         both as defined, shall not exceed 15 to 1 and that equity capital may
         not be withdrawn, or cash dividends paid, if the resulting net capital
         ratio would exceed 10 to 1. ALWC is also subject to the CFTC's minimum
         financial requirements which require that ALWC maintain net capital, as
         defined, equal to the greater of its requirements under Regulation 1.17
         under the Commodity Exchange Act or Rule 15c3-1. At June 30, 2001,
         ALWC's net capital was approximately $200,000, which was approximately
         $100,000 in excess of its minimum requirement of $100,000.



                                       11



<PAGE>


                      THE FINANCIAL COMMERCE NETWORK, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2001



Note 5 - CONVERTIBLE NOTES PAYABLE

         In November 2000, the Company issued $100,000 in convertible notes for
         $100,000. The notes are convertible into common stock at a price of
         $0.10 per share. In January, 2001, the note was converted into
         1,000,000 shares of the Company's common stock.

         At December 31, 2000 the following convertible notes payable were
         outstanding:

         Note payable due February 16, 2001 0% interest            $  100,000
                                                                    ==========

         The Company issued $272,000 of convertible notes payable to certain
         shareholders which bear 8% interest and are due upon demand. The
         purchaser has the right to convert these notes at $0.02 per share of
         common stock. The Company does not have sufficient authorized common
         shares at this time to convert these notes.

Note 6 - BANK LOAN PAYABLE

         The bank loan is a variable rate Commercial Promissory Note, with an
         interest rate of 2% over the Prime Rate as published in the Wall Street
         Journal (9.5% at December 31, 2000 and 8.5% at December 31, 1999). The
         loan is repayable in 60 monthly payments of principal and interest
         through October 2002. The loan is collateralized by certain of the
         Company's assets and is guaranteed by one of the officers of the
         Company.

Note 7 - COMMON STOCK

         During January 2000, the Company authorized the issuance of 1,010,000
         shares of common stock to certain employees of the Company. These
         shares will vest over a period of one year commencing January 1, 2000,
         provided the employees remain with the Company until December 31, 2000.
         The accompanying consolidated financial statements include compensation
         expense of approximately $491,000 related to those shares for the year
         ended December 31, 2000. The shares were issued in May 2000. 810,000
         shares have been forfeited to date and the weighted average per share
         amounts give effect to these forfeitures as though the shares were
         never issued.

         During February and March 2000, the Company sold 1,440,000 shares of
         its common stock for $0.50 per share for gross proceeds of $720,000 in
         a Private Placement.

         During May 2000, the Company issued 13,500 shares of common stock for
         professional services valued at $12,997.


                                       12



<PAGE>



                      THE FINANCIAL COMMERCE NETWORK, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2001



Note 7 - COMMON STOCK (continued)


         In July 2000, the Company issued 50,000 shares of restricted common
         stock in settlement of a legal matter that has been charged to
         operations in the accompanying consolidated financial statements.

         During August and September 2000, the Company sold 1,552,500 shares of
         its common stock for $0.20 per share for gross proceeds of $310,500 in
         a Private Placement.

         In November 2000, the Company sold 1,000,000 shares of common stock for
         a subscription receivable of $100,000 or $0.10 per share. Due to a drop
         in the share price of the Company's stock, the buyer has defaulted on
         his subscription and has asked the Company to renegotiate the
         subscription price to $0.025 per share or $25,000. The Company's
         management has agreed to accept the reduced price but it has not yet
         been paid. If the amount is not paid by September 15, 2001, the Company
         will cancel the certificate for the 1,000,000 shares.

         In December 1999, the Company issued 260,000 shares of common stock,
         which vest over one year, to a consultant that will represent the
         Company in Geneva, Switzerland. In addition, the agreement provides for
         the payment of commissions based on his sales. In October 2000, the
         Company issued an additional 50,000 shares of common stock to the same
         consultant for commissions valued at $10,000.

         In January 2001, the Company issued 1,000,000 shares of restricted
         common stock in conversion of a $100,000 convertible note at $0.10 per
         share.

         In February 2001, the Company accepted from a former employee of ALWC
         an exchange of 500,000 shares of the Company's common stock to satisfy
         a $17,000 liability he owed the Company.

         In February 2001, the Company authorized the issuance of 2,000,000
         shares of common stock to be awarded to employees and directors
         quarterly. No shares have been issued to date.

         In February 2001, the Company sold 2,000,000 shares of common stock in
         a private placement for gross proceeds of $50,000.


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<PAGE>


                      THE FINANCIAL COMMERCE NETWORK, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2001


Note 7 - COMMON STOCK (continued)

         In February 2001, the Company entered into an understanding with a
         closed broker dealer (the "BD") to acquire all of the outstanding
         capital stock of the BD based on certain conditions as defined in the
         letter of understanding. The Company has also entered into an agreement
         with the BD whereby the Company will acquire the accounts of the BD for
         the payment of twenty two percent (22%) of a year's commissions
         received by the Company relating to the acquired accounts (subject to
         additional terms of the agreement) and 1,000,000 shares of the
         Company's common stock to be paid upon the value of the accounts
         acquired having an aggregate asset value in excess of $13,000,000. An
         additional 1,000,000 shares of common stock can be issued if the
         accounts generate $2,000,000 in commissions and is payable at the rate
         of 250,000 common shares for each additional $500,000 in commission
         revenue generated.

         In February 2001, the Company agreed to issue 408,000 shares of common
         stock of the Company to affiliates of Richard H. Bach, a principal
         stockholder and the Chairman of the Board and Chief Executive Officer
         of the Company, in exchange for $10,200 of recently made loans. On
         February 9, 2001, the Company agreed to convert $250,000 of the
         Company's deferred salary obligation to Mr. Bach into 8,333,333 shares
         of common stock. None of the shares issuable to Mr. Bach or his
         affiliates in exchange for debt or deferred salary obligations have yet
         been issued. Mr. Bach has agreed that the Company can defer the
         issuance of any portion of such shares, and he has agreed not to
         exercise his options, if the Company does not have an adequate number
         of authorized shares available.

         In March 2001, the Company sold 1,000,000 shares of common stock in a
         private placement for gross proceeds of $25,000.

         The Company issued 140,000 shares of restricted common stock for
         services during first quarter of 2001 for $4,200.

         During the second quarter of 2001 the Company (1) sold 7,500,000 shares
         of common stock at $0.02 per share for a gross proceeds of $150,000 in
         a private placement, (2) converted $267,700 of loans from the Chairman
         and his affiliates for 8,991,333 shares of common stock.



                                       14



<PAGE>


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

Results of Operations

SIX MONTHS AND THREE MONTHS ENDED JUNE 30, 2001 AND 2000

NET LOSSES

For the six months ended June 30, 2001 and 2000, the Company incurred a net loss
of $626,954 and $2,018,948, respectively. For the three months ended June 30,
2001 and 2000 the Company incurred a net loss of $386,977 and $1,308,752,
respectively. Explanations of these results are set forth below.

REVENUE

For the six months ended June 30, 2001, the Company recorded revenue of $312,916
as compared to $874,968 for the six months ended June 30, 2000. For the three
months ended June 30, 2001, the Company recorded revenue of $226,507 as compared
to ($39,333) for the three months ended June 30, 2000.

During the six months ended June 30, 2001, ALWC's trading and commission revenue
was $273,730 and revenue from investment banking was $8,520. During the six
months ended June 30, 2000, ALWC's trading and commission revenue was $814,181
and revenue from investment banking was $37,969. During the three months ended
June 30, 2001, ALWC's trading and commission revenue was $217,997 and revenue
from investment banking was $4,520. During the three months ended June 30, 2000,
ALWC's trading and commission revenue was ($57,701) and the revenue from
investment banking was $14,300.

GENERAL AND ADMINISTRATIVE

General and administrative costs consist primarily of employee compensation and
benefits, stock option and warrant compensation, professional fees and
consulting services. Significant costs are attributed to the Company becoming a
reporting public company. This status will increase audit and legal costs
significantly. In relation to the Company becoming a public company, the cost of
corporate relations will also increase as quarterly reports and other investor
information is required. The Company anticipates that its General and
Administrative costs (as a percentage of costs) will decline as the Company's
operations expand.

General and administrative expenses decreased to $873,490 for the six months
ended June 30, 2001 compared to $2,893,916 for the six months ended June 30,
2000, a decrease which was attributable to the reduction of employees. General
and administrative expenses decreased to $578,335 for the three months ended
June 30, 2001 compared to $1,264,419 for the three months ended June 30, 2000,
the decrease was attributable to the reduction of employees.



                                       15



<PAGE>


Liquidity and Capital Resources

SIX MONTHS ENDED JUNE 30, 2001 AND 2000

During the six months ended June 30, 2001, the company used cash for operating
activities of approximately $493,000 compared to the six months ended June 30,
2000 of approximately $533,000. Cash used for operations for the six months
ended June 30, 2001 resulted from the Company's net loss of approximately
$572,000 compared to approximately $2,018,000 for the six months ended June 30,
2000.

During the six months ended June 30, 2001 the Company generated cash from
financing activities of approximately $548,000 compared to approximately
$513,000 for the six months ended June 30, 2000. The cash generated during the
six months ended June 30, 2001 was attributable to the sales of common stock and
new loans net of repayments to stockholders. The cash provided during the six
months ended June 30, 2000 was attributable to the sale of common stock net of
repayment to stockholders.

At June 30, 2001, the Company had current assets of $823,991 and current
liabilities of $1,952,508 which resulted in a working capital deficit of
$1,128,517. Current liabilities include accounts payable and accrued expenses of
approximately $1,372,000. At June 30, 2001, the Company had available cash of
approximately $55,000. The Company has been unable to pay its obligations as
they become due.

During the six months ended June 30, 2001, the Company began a private placement
to its shareholders and foreign investors to sell 8% convertible demand note
payable. As of June 30, the Company has issued $272,000 of convertible demand
notes payable with an conversion price of $0.02 per share.

The Company intends to issue additional shares of common stock to raise funds
and the Board of Directors will take appropriate actions to accomplish this
goal.

In addition, implementation of the Company's business plan requires capital
resources substantially greater than those currently available to the Company.
The Company may determine, depending on the opportunities available to it, to
seek additional debt or equity financing to fund the cost of continuing
expansion. There can be no assurance that additional financing will be
available. If neither additional debt nor equity financing is available, the
Company may seek loans. In addition, the Company may seek a strategic alliance
with another company that would provide capital to the Company. The Company
believes that with its cash and marketable securities, combined with its ability
to raise additional equity financing, the Company will have the funds available
to sustain its operations throughout the next year.


To the extent that the Company finances expansion through the issuance of
additional equity securities, any such issuance will result in dilution of the
interests of the Company's stockholders. Additionally, to the extent that the
Company incurs indebtedness or issues debt securities to finance expansion
activities, it will be subject to all of the risks associated with incurring
substantial indebtedness, including the risks that interest rates may flucuate
and cash flow may be insufficient to pay the principal of, and interest on, any
such indebtedness.



                                       16



<PAGE>


                           Part II - Other Information


Item 2. Changes in Securities.

        During the second quarter of 2001, the Company sold 7,500,000 shares of
        common stock at $0.02 per share for a gross proceeds of $150,000 in a
        private placement. The sale of these shares was exempt from the
        registration requirements of the Securities Act under Section 4(2)
        of the Securities Act.

        The Company also converted $267,700 of loans from the Chairman and his
        affiliates for 8,991,333 shares of common stock. This issue of these
        shares was exempt from the registration requirements of the Securities
        Act under Section 4(2) of the Securities Act.

        During the quarter ended June 30, 2001, the Company issued $272,000 of
        8% convertible demand notes payable with a conversion price of $0.02 per
        share in a private placement. The sale of these notes was exempt from
        the registration requirements of the Securities Act under Section 4(2)
        of the Securities Act.



                                       17



<PAGE>


                                   Signatures


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


                                            The Financial Commerce Network, Inc.



Dated:  August 20, 2001                     By: /s/ Richard H. Bach
                                               ------------------------------
                                            Name:  Richard H. Bach
                                            Title: Chairman/CEO




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