|SECURITIES AND EXCHANGE
COMMISSION Washington, D.C. 20549



FORM 10-QSB



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



For Quarter Ended
March 31, 2002 - Commission file Number 333-86873



Netword, Inc.(Exact
name of registrant as specified in its charter)
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Delaware(State or other Jurisdictionof Incorporation) | 52-2143430(I.R.S. EmployerIdentification No.)
|----------------------------------------------------- | ---------------------------------------------

|285 Tanglewood Crossing, Lawrence, NY 11559(Address of principal executive offices) (Zip code)



1-516-239-8067
(Registrants telephone number, including area code)



Check whether the issuer
(1) 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___



The number of outstanding
shares of the issuers common stock, par value $.01 per share, as of
May 3, 2002, was 21,010,289.


Transitional Small Business
Disclosure Format (check one):


Yes _X_ No ___
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NETWORD, INC.

INDEX TO FORM 10-QSB


March 31, 2002
|----------------------------------------------------

|PART I - FINANCIAL INFORMATION | PAGE
|------------------------------ | ----

| | Item -1. - |  | Consolidated Balance Sheets as ofMarch 31, 2002 and December 31, 2001 |  | 1
| | ---------- |  | --------------------------------------------------------------------- |  | -

| |  |  | Consolidated Statements of Operations for the ThreeMonths Ended March 31, 2002 and 2001 |  | 2
| |  |  | --------------------------------------------------------------------------------------- |  | -

| |  |  | Consolidated Statements of Cash Flows for the ThreeMonths Ended March 31, 2002 and 2001 |  | 3
| |  |  | --------------------------------------------------------------------------------------- |  | -

| |  |  | Notes to Consolidated Financial Statements |  | 4
| |  |  | ------------------------------------------ |  | -

| | Item -2. - |  | Managements Discussion and Analysis or Plan of Operation |  | 6
| | ---------- |  | --------------------------------------------------------- |  | -

|PART II - OTHER INFORMATION |  | 9
|--------------------------- |  | -

|SIGNATURE |  | 11
|--------- |  | --

|NETWORD, INC. AND SUBSIDIARIESConsolidated Balance Sheets
|---------------------------------------------------------

|                                            | March 31,2002(Unaudited) |  | December 31,2001(Note) |           
|------------------------------------------- | ------------------------ |  | ---------------------- | ----------
|                                            |                          |  |                        |           
|ASSETS                                      |                          |  |                        |           
|                                           
|Current assets:                             |                          |  |                        |           
|Cash                                        |                          |  | $                      | 1,086,997 
|Note Receivable (Note 2)                    |                          |  |                        | 270,000   
|Prepaid expenses                            |                          |  |                        | 4,607     
|                                            |                          |  |                        |           
|Total current assets                        |                          |  |                        | 1,361,604 
|                                           
|Property and equipment, net                 |                          |  |                        | -0-       
|                                           
|Intangible asset - Trademark, net           |                          |  |                        | 26,488    
|                                            |                          |  |                        |           
|                                            |                          |  | $                      | 1,388,092 
|                                            |                          |  |                        |           
|                                           
|LIABILITIES AND STOCKHOLDERS EQUITY        |                          |  |                        |           
|                                           
|Current liabilities:                        |                          | 
|Current portion of long-term liability      |                          |  | $                      | 4,800     
|Convertible note payable                    |                          |  |                        | 23,602    
|Loans payable                               |                          |  |                        | 33,027    
|Note payable                                |                          |  |                        | 32,007    
|Accounts payable                            |                          |  |                        | 172,101   
|Due to shareholders                         |                          |  |                        | -0-       
|                                            |                          |  |                        |           
|Total current liabilities                   |                          |  |                        | 265,537   
|                                           
|Long-term liability, net of current portion |                          |  |                        | 22,334    
|                                           
|Note payable                                |                          |  |                        | -0-       
|                                           
|Stockholders equity:                       |                          | 
|Common stock, $.01 par value;               |                          | 
|Authorized - 40,000,000 shares              |                          | 
|Issued and outstanding - 21,010,289 shares  |                          | 
|at 3/31/02 and 19,348,083 shares at         |                          | 
|12/31/01                                    |                          |  |                        | 210,103   
|Additional paid-in capital                  |                          |  |                        | 10,397,877
|Accumulated deficit                         |                          |  |                        | (9,507,759
|                                            |                          |  |                        |           
|                                           
|Total stockholders equity                  |                          |  |                        | 1,100,221 
|                                            |                          |  |                        |           
|                                            |                          |  | $                      | 1,388,092 
|                                            |                          |  |                        |           

|Note: The balance sheet at
December 31, 2001 has been derived from the audited financial statements at that
date but does not include all of the information and footnotes required by
generally accepted accounting principles for complete financial statements.


See accompanying notes.


1
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NETWORD, INC. AND SUBSIDIARIES
Consolidated Statements of Operations(Unaudited)
|-------------------------------------------------------------------------------

|                                              | Three MonthsEnded March 31, | 
|--------------------------------------------- | --------------------------- | 
|
|                                              |                             | 
|Sales                                         |                             | 
|                                             
|Selling, general and administrative expenses  |                             | 
|                                              |                             | 
|Operating loss                                |                             | 
|                                             
|Interest income                               |                             | 
|                                              |                             | 
|Net loss                                      |                             | 
|                                              |                             | 
|Basic and diluted loss per common share       |                             | 
|                                              |                             | 
|Weighted average number of shares outstanding |                             | 
|                                              |                             | 

|See accompanying notes.


2
|---------------------------

|NETWORD, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows(Unaudited)
|-------------------------------------------------------------------------------

|                                                                     | Three MonthsEnded March 31, | 
|-------------------------------------------------------------------- | --------------------------- | 
|
|Net loss                                                             |                             | 
|Adjustments to reconcile net loss to cash                            |                             | 
|used in operating activities:                                        |                             | 
|Depreciation and amortization                                        |                             | 
|Loss on abandonment of property and equipment                        |                             | 
|Interest on notes payable                                            |                             | 
|Change in assets and liabilities:                                    |                             | 
|Prepaid expenses                                                     |                             | 
|Accounts payable                                                     |                             | 
|Due to shareholders                                                  |                             | 
|                                                                     |                             | 
|Net cash used in operating activities                                |                             | 
|                                                                     |                             | 
|Cash used in investing activities:                                   |                             | 
|Purchase note receivable - Home Director                             |                             | 
|                                                                     |                             | 
|Net cash used in investing activities                                |                             | 
|                                                                     |                             | 
|Cash flows from financing activities:                                |                             | 
|Exercise of stock options                                            |                             | 
|                                                                     |                             | 
|Net cash provided by financing activities                            |                             | 
|                                                                     |                             | 
|Net decrease in cash                                                 |                             | 
|                                                                     |                             | 
|Cash, beginning of period                                            |                             | 
|                                                                     |                             | 
|Cash, end of period                                                  |                             | 
|                                                                     |                             | 
|                                                                    
|Supplemental Schedule of Non-Cash Investing and Financing Activities
|                                                                    
|Exchange of note payable for accounts payable                        |                             | 
|                                                                     |                             | 

|See accompanying notes.


3
|---------------------------

|NETWORD, INC. AND SUBSIDIARIESNOTES TO
CONSOLIDATED FINANCIAL STATEMENTSMarch 31, 2002(Unaudited)


Note 1 - Basis of Presentation


The
accompanying consolidated financial statements include the accounts of Netword,
Inc. (Netword) and its wholly-owned subsidiaries, Rabbit Media, Inc.
(Rabbit) and Webspeak Acquisition Corp. (Webspeak),
(collectively, the Company, us, we, or
our). All significant intercompany balances and transactions have
been eliminated in consolidation.


The
accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with instructions to Form 10-QSB. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of our management,
all adjustments (consisting of normal recurring accruals) considered necessary
for a fair presentation have been included. Consolidated operating results for
the three month period ended March 31, 2002 are not necessarily indicative of
the results that may be expected for the full year ended December 31, 2002,
These unaudited consolidated financial statements should be read in conjunction
with the consolidated financial statements and footnotes thereto included in our
Annual Report on Form 10-KSB for the year ended December 31, 2001.


Note 2 - Investment in Home Director, Inc.


In
February 2002, the Company invested $270,000 in Home Director, Inc.
(HDI), with a view to a possible merger of the two companies. For
its investment, the Company received a $270,000 Senior Exchangeable Note
(Note) and warrants to purchase up to 3,857,143 shares of HDIs
common stock. The Note bears interest at 8% per annum and is due in February
2003. The warrants are exercisable at a price of $.07 per share, commencing
August 6, 2002, and expire on February 5, 2005. If the Company completes a
merger with HDI, the Note and warrants will be retired and canceled without
payment.


Subsequent
to the investment in HDI, the Company, HDI and Webspeak entered into an
Agreement and Plan of Merger dated as of April 9, 2002 (the Merger
Agreement) providing for the merger of Webspeak with and into HDI (the
Merger). Pursuant to the terms of the Merger Agreement, the
stockholders of HDI will receive shares of Netword common stock in exchange for
their shares of HDI stock, and HDI will become a wholly-owned subsidiary of
Netword. Based upon the formula contained in the merger agreement, we estimate
that our stockholders immediately prior to the merger will hold between 13% and
20% of our common stock outstanding immediately
after the merger.  The Merger is subject to various conditions as set forth in the Merger
Agreement.


4
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Note 3 - Restructuring of Operations


During
the quarter ended March 31, 2002, the Company terminated all of its employees,
relocated its Internet server equipment to its Gaithersburg, Maryland facility,
and retained consultants to maintain the Netword System. These actions resulted
in a significant reduction of overhead and effectively terminated the
Companys marketing and sales efforts. The Company has offered the Netword
System, the Rabbit Media Player and their technologies and related intellectual
property for sale. As of April 30, 2002, there were no immediate prospects of a
sale of either system.


In
connection with its restructuring, the Company is negotiating the termination of
its lease of the Gaithersburg facility and has established a $15,000 reserve for
expenses related to the restructuring, including the termination of its
Gaithersburg lease and for moving its equipment to a new location. At March 31,
2002, approximately $3,000, representing the write off of the net book value of
furniture and fixtures, had been charged to that reserve.


Note 4 - Option Repricing and Exercise of Options


On
January 2, 2002, the Companys Board of Directors reduced the exercise
price of options to purchase 2,284,384 shares of Netword common stock from
$0.1666 per share to $0.125 per share, the fair market value of those shares on
that date, as represented by their closing price. Thereafter, options to
purchase 1,662,206 shares of Netword common stock subject to the repriced
options were exercised, including options to purchase 1,526,072 shares exercised
by Companys officers and directors. In connection with the exercise of the
options, the Company received $207,776. The price paid for the shares of the
Companys common stock upon exercise of the options approximated the market
price of the Companys common stock at that time; accordingly, no
compensation cost was recorded. On February 17, 2002, the remaining repriced
options expired unexercised.


5
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|ITEM 2. Managements Discussion and Analysis or Plan of Operation


First Quarter 2001 Overview


Restructuring of
Operations


During the quarter ended
March 31, 2002, we terminated all of our employees, relocated our Internet
server equipment to our Gaithersburg, Maryland facility, and retained
consultants to maintain the Netword System. These actions resulted in a
significant reduction of overhead and effectively terminated our marketing and
sales efforts. In connection with our restructuring, we have offered the Netword
System, the Rabbit Media Player and their technologies and related intellectual
property for sale. As of April 30, 2002, there were no immediate prospects of a
sale of either system.


Relationship with Home
Director


In February 2002, we
invested $270,000 in Home Director, Inc. with a view to a possible merger of the
two companies. For our investment, we received a one-year secured promissory
note in the principal amount of $270,000 and warrants to purchase Home Director
common stock. If we complete the merger, the note and warrants will be retired
and canceled without payment. Home Director is a private company that designs,
manufactures, sells and installs integrated home networking solutions that
connect home security systems, audio systems, video services, televisions,
utilities, PCs and the Internet. Home Directors networking systems
are currently marketed through home builders for installation in new homes,
primarily in California and Florida.


Subsequent to our
investment in Home Director, in April 2002, we and our newly formed,
wholly-owned subsidiary, Webspeak Acquisition Corp., entered into an Agreement
and Plan of Merger with Home Director. The merger agreement provides for the
merger of Webspeak with and into Home Director. Upon the completion of the
merger, Home Directors stockholders would receive shares of our common
stock in exchange for their shares of Home Director stock, Home Director would
become a wholly-owned subsidiary of Netword, we would change our name to Home
Director, Inc., and we would continue Home Directors current business as
our primary business activity. Based upon the formula contained in the merger
agreement, we estimate that our stockholders immediately prior to the merger
will hold between 13% and 20% of our common stock outstanding immediately after
the merger.


The merger is subject to
the various conditions set forth in the merger agreement, including approval of
the merger by Home Directors stockholders, Home Directors completion
of a private financing of not less than $4,000,000 and favorable settlements by
Home Director with certain of its creditors. Other conditions include completion
of a one-for-40 reverse split of our common stock immediately prior to the
merger, our having adjusted net cash of at least $1,000,000 at the time of the
merger, and registration under the
Securities Act of our common stock to be issued in the merger. Accordingly, no
assurance can be made that the merger will be consummated.


6
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|We filed the merger
agreement and the press release announcing its execution as exhibits to a
Current Report on Form 8-K that we filed with the Securities and Exchange
Commission on April 12, 2002.


Results of Operations for the quarter ended March 31, 2002
compared to the quarter ended March 31, 2001


Selling, general and
administrative expense was $266,979 for the quarter ended March 31, 2002,
compared to $657,814 for the same period last year, a decrease of $390,835. The
decrease was primarily due to the restructuring of our operations. As a result
of the restructuring, compensation costs for the quarter ended March 31, 2002
decreased to $139,577, compared to $235,988 for the same period last year.
Compensation costs for the quarter ended March 31, 2002 include employee
termination pay and benefits.


In connection with the
restructuring, we are negotiating the termination of our lease of the
Gaithersburg facility and have established a $15,000 reserve for expenses
related to our restructuring, including the termination of the Gaithersburg
lease and for moving our equipment to a new location. At March 31, 2002,
approximately $3,000, representing the write off of the net book value of
furniture and fixtures, had been charged to that reserve.


Marketing costs for the
quarter ended March 31, 2002,decreased to $133, compared to $320,076 for the
same period last year, primarily as a result of restructuring our operations.


As a result of the
restructuring, we expect that, pending completion of the merger, our operating
expenses will be substantially lower than those of the first quarter, since our
overhead has now been substantially reduced.


Liquidity and Capital Resources


Our cash balance at March
31, 2002 was $1,086,997. Our net cash used in operations during the quarter
ended March 31, 2002 was $257,930, which includes $139,577 of non-recurring
compensation costs. As described above, during the quarter we used $270,000 to
make an investment in Home Director. Also during the quarter, we received
proceeds of $207,776 in connection with the exercise of options to purchase
1,662,206 shares of our common stock.


One of the conditions to
our merger with Home Director, is that we have $1,000,000 of net cash after
adjustment for our costs (including legal fees) incurred in connection with the
merger. Based on our current financial statements, we may need to raise
additional cash to satisfy this condition of the merger. If we require
additional cash to consummate the merger or,
if the merger is not accomplished and we require cash for the purpose of
acquiring other businesses, we may raise cash through the private sale of our
securities. Such sales may include sales to affiliates and others at prices
prevailing in the market and could result in substantial dilution to our
existing stockholders. There is no assurance that we will be able to obtain the
additional cash necessary to consummate the merger or any other acquisition.


7
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|In the event we consummate
the merger with Home Director, we may require additional capital to fund our
operations (which would be the operations presently conducted by Home Director).
The amount of capital we may require following the merger would depend on a
variety of factors not now determinable, including the results of current
financing activities of Home Director. Information regarding Home Director and
its financing will be set forth in future filings we make with the Securities
and Exchange Commission.


If the merger with Home
Director or an acquisition of another business is not consummated, it is
unlikely that we will require additional funds during the next twelve months.
However, in such event, we will continue to incur additional expenses related to
our public status, including accounting and audit fees, SEC filing fees,
transfer agent costs and legal fees.


Forward Looking Statements


Some of the statements in
this 10-QSB that are not historical facts are forward-looking statements.
Forward-looking statements can be identified by the use of words such as
estimates, projects, anticipates, expects, intends, believes or the negative
thereof or other variations thereon or by discussions of strategy that involve
risks and uncertainties. We caution you that forward-looking statements
contained in this 10- QSB are only estimates and predictions. Our actual results
could differ materially from those anticipated in the forward-looking statements
due to risks, uncertainties or actual events differing from the assumptions
underlying these statements. The risks, uncertainties and assumptions include,
but are not limited to, those discussed in this 10-QSB.


8
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|PART II - OTHER INFORMATION


Item 1. Legal Proceedings


None


Item 2. Changes in Securities


In February 2002, we issued
1,662,206 shares of our common stock upon the exercise of options by certain of
our present and former officers and directors. The options were exercised at a
price of $.125 per share, generating proceeds of $207,776. The shares were
issued in a private placement under Section 4(2) of the Securities Act of 1933,
as amended.


Item 3. Defaults upon Senior Securities


None


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


None


Item 5. Other Information


None


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

| | a) Exhibits:
| | ------------

| |  |  |  | 3.1(1) |  | Certificate
of Incorporation of Netword, Inc.
| |  |  |  | ------ |  | ---------------------------------------------

| |  |  |  | 3.2(1) |  | Bylaws
of Netword, Inc.
| |  |  |  | ------ |  | -----------------------

| |  |  |  | 4.1(1) |  | Stock
option plan of Netword, Inc.
| |  |  |  | ------ |  | ----------------------------------

| |  |  |  | 4.2(1) |  | Form
of award letter for optionees
| |  |  |  | ------ |  | ----------------------------------

| |  |  |  | 10.1(2) |  | Agreement
and Plan of Merger, dated as of April 9, 2002, by and among Netword, Inc., Webspeak
Acquisition Corp., and Home Director, Inc.
| |  |  |  | ------- |  | ----------------------------------------------------------------------------------------------------------------------------------------

| | (1)
Filed as an Exhibit to Networds registration statement on Form SB-1 (Commission File No.
333-86873) and incorporated herein by reference.
| | ----------------------------------------------------------------------------------------------------------------------------------------------

|9
|-

|
|

| | (2)
Filed as an Exhibit to Networds Form 8-K filed on April 12, 2002 and incorporated
herein by reference.
| | -----------------------------------------------------------------------------------------------------------

| | b)
Reports on Form 8-K:
| | -----------------------

|We
did not file a Form 8-K during the quarter ended March 31, 2002. On April 12,
2002, we filed a Form 8-K disclosing that the Company, Webspeak and Home
Director had entered into the Agreement and Plan of Merger, dated as of April 9,
2002.


10
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SIGNATURE


Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.


Dated: May 3, 2002
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Netword, Inc.
(Registrant)
By: /s/ Murray M. Rubin
      
Name: Murray M. Rubin
            
Title: Treasurer and Chief Financial Officer
(Principal Financial Officer and Officer Duly
Authorized to Sign on behalf of Registrant)
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11
|--