<PAGE>   1
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
        FORM 10-KSB ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                   SECURITIES EXCHANGE ACT OF 1934 FOR FISCAL
                          YEAR ENDED OCTOBER 31, 2000.

                                   000-027619
                             Commission File Number
                              IBIZ TECHNOLOGY CORP.
                 (Name of small business issuer in its charter)

           Florida                   86-0933890
           -------                   ----------
 State or other jurisdiction        IRS Employer
       of incorporation          Identification No.

       1919 West Lone Cactus Drive, Phoenix, Arizona 85021, (623) 492-9200
          (Address and telephone number of principal executive offices)

Securities registered under Section 12(b) of the Exchange Act:  None.


Securities registered under Section 12(g) of the Exchange Act:  Common Stock,
par value $0.001


The issuer (1) HAS filed all reports required to be filed by Section 13 or 15(d)
of the Exchange Act during the past 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) HAS been subject to
such filing requirements for the past 90 days. /X/ Yes.


A disclosure of delinquent filers in response to Item 405 of Regulation S-B WILL
BE contained in definitive proxy statements incorporated by reference in Part
III of this Form 10-KSB or any amendment to this Form 10-KSB. /X/ Yes.


Issuer's revenues for its most recent fiscal year:  $4,144,822.


The aggregate market value of the voting and non-voting common equity held by
non-affiliates computed by reference to the average bid and asked price of such
common equity, as of December 29, 2000: $3,837,429.


The number of shares outstanding of each of the issuer's classes of common
equity, as of December 29, 2000: 38,017,966 shares of common stock, par value
$0.001.


The following document is incorporated by reference: the Company's definitive
proxy statement to be filed in accordance with Rule 14a-101, Schedule 14A, under
the Securities Exchange Act of 1934 with the Commission not later than February
28, 2001. (Part III).

Transitional Small Business Disclosure Format: /X/ No.
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                                     PART I
                        ITEM 1. DESCRIPTION OF BUSINESS.
      IBIZ HISTORY

      iBIZ was originally incorporated under the laws of the State of Florida in
1994. From its incorporation through December 31, 1998, the Company operated as
a development stage company with no operations or revenues while it sought to
identify a strategic business combination with a private operating company. To
facilitate the acquisition of a private company doing business outside of its
initial purpose upon incorporation, the Company changed its name to EVC
Ventures, Inc. in May 1998 and to INVNSYS Holding Corporation in October 1998.

      Effective January 1, 1999, the Company entered into a Plan of
Reorganization and Stock Exchange Agreement with INVNSYS Technology Corporation
("INVNSYS") and various shareholders of INVNSYS (the "Reorganization"). As a
result of the Reorganization, INVNSYS became a wholly-owned subsidiary of the
Company. On February 1, 1999, the Company changed its name to iBIZ Technology
Corp.

      While operating as a development stage company, the Company's officers
and directors were not compensated for their services.  From incorporation
through December 31, 1994, Mr. Julio A. Padilla served  as President and sole
Director.  Mr. Eric P. Littman served as President and sole Director from
January 1, 1995 through July 9, 1998.  Thereafter, Mr. John Xinos served as
President, Secretary, and Treasurer from July 10, 1998 through December 31,
1998.  Messrs. Padilla, Littman and Xinos are no longer involved in the
management of iBIZ and are believed not to be shareholders.

      BUSINESS HISTORY OF INVNSYS

      The Company conducts business solely through its operating subsidiary
INVNSYS. For your convenience, this report will refer to the parent company as
the Company or iBIZ and the wholly-owned operating company as INVNSYS.

      INVNSYS (formerly known as SouthWest Financial Systems, Inc.) was founded
in 1979. Under the direction of INVNSYS' founder, Kenneth Schilling, the company
initially focused on distributing front-end bank branch automation computer
systems for networking applications. INVNSYS acted as a regional distributor for
SHARP Electronics ("SHARP"), a privately held Japanese manufacturer of computers
and electronic devices. In addition, INVNSYS also distributed the products of
Billcon Company, Ltd., and Glory, manufacturers of bank automation and money
processing systems.

      In 1985, INVNSYS became a master distributor of SHARP products and
acquired the exclusive rights to distribute SHARP products to financial
institutions in the western United States. Between 1987 and 1990, INVNSYS won
various awards from SHARP for outstanding sales performance. Also during this
time, INVNSYS began to participate in the design of computer systems for
financial institutions. In cooperation with Wells Fargo Bank and SHARP, INVNSYS
produced the first plain paper facsimile machine in 1990.


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      In 1992, INVNSYS began to design and build its own computer systems,
focusing on integrated systems for the banking industry. In 1993, INVNSYS
terminated its relationship with SHARP and focused on developing its own
products. In approximately 1994, INVNSYS began working in conjunction with Epson
America ("Epson"), a leading manufacturer of point-of-sale computer products, in
the development of products for the banking industry. For example, INVNSYS
designed a software program that enabled Epson transactional printers to produce
cashier's checks, an industry innovation. In addition, in cooperation with
Epson, INVNSYS designed and marketed a stackable computer system for financial
institutions. In 1996, INVNSYS produced its first entry into the market for
complete computer systems with its Vision 2000 Multimedia Notestation, an Intel
Pentium-based computer/printer combination. In October 1998, INVNSYS began to
market a line of business transaction computers, the iT series.

      In January 2000, the Company began offering network integration services.
In March 2000, the Company began offering digital subscriber line (DSL)
services.

      On September 18, 2000, the Company announced the opening of its new data
center/Web-hosting server co-location facility, located in Phoenix. The data
center allows clients to run their Web-based activities over the Internet
without having to maintain internal IT and other systems-related staffing and
equipment. Through this facility, iBIZ provides Web-hosting services, including
hardware connections, scalable bandwidth, and back-up servers to ensure clients
of continuous data traffic and Internet-based operations with uninterrupted
connectivity. iBIZ also provides high levels of physical and systems security
and around-the-clock maintenance, monitoring and technical support. The facility
has an extensive raised floor, with secured cabinet space for up to 390 clients,
11 full-size, individually secured data suites, and a mezzanine level with rack
space for 1200 leased computer servers. Additionally, the facility has space
available for custom built enclosures. The iBIZ-designed infrastructure includes
3 primary environmental control systems and uninterruptible power systems with
battery and generator back-up functions. The facility is connected by 3 diverse
optical fiber routes and by 4 major access providers, delivering Internet
traffic directly to the Internet backbone.

      iBIZ's principal offices are located at 1919 West Lone Cactus, Phoenix,
Arizona 85021. iBIZ maintains a website at www.ibizcorp.com. The information on
the website is not part of this report.

      Statements regarding the various hardware products offered by the Company,
joint ventures, marketing agreements and web-hosting services are
forward-looking and you should not rely on them or assume that the products
discussed will ever be shipped in quantities sufficient to generate material
revenue or that marketing agreements and web-hosting services will generate any
revenue. Many products discussed in this report may ultimately not be sold or
may only be sold in limited quantities. Marketing agreements and web-hosting
services may not result in anticipated revenue for the Company. Technology used
in computer products is subject to rapid obsolescence, changing consumer
preferences, software advancements, and competitors' products time to market.
These factors, among others, may result in unforeseen changes in the types of
products ultimately sold and services offered by the Company. See Risk Factors,
below.


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      PRODUCTS

      INVNSYS engages in the business of designing, manufacturing and
distributing small-footprint desktop computers, transaction printers, general
purpose financial application keyboards, numeric keypads, cathode ray tube
("CRT") and thin-film transistor liquid-crystal-display ("TFT-LCD") monitors and
related products. INVNSYS also markets a line of original equipment manufacturer
("OEM") notebook computers and distributes color printers. In addition to
hardware, in December 1999, INVNSYS began reselling third-party hardware,
software, and related supplies. INVNSYS provides DSL services to commercial
consumers through an agreement with Northpoint Communications, Inc. and began
offering co-location services on September 14, 2000.

      INVNSYS' continued success is partially dependent upon the introduction of
new products and the enhancement of existing products. INVNSYS is actively
engaged in the design and development of additional computers and peripherals to
augment its present product line. Currently, INVNSYS designs many of its
products in-house. INVNSYS employs a seven-person product design and development
staff that is managed directly by Kenneth Schilling. During fiscal years 2000
and 1999, INVNSYS spent $7,942 and $5,014, respectively, on expenses directly
allocated for research and development.

      Because of the rapid pace of technological advances in the personal
computer industry, INVNSYS must be prepared to design, develop, manufacture and
market new and more powerful hardware products in a relatively short time span.
While INVNSYS believes that it has been successful to date in accomplishing that
goal, there can be no assurance that it will continue to do so in the future.

-  Personal Computers. We offer small footprint personal computers, including
   the Sahara and the Safari.

-  Keyboards. We market a range of keyboards and numeric keypads targeted at
   financial institutions. We market our "KeySync" line of keyboards and
   lapboards, specifically designed for use with hand-held personal organizers
   such as 3COM's Palm Pilot.

-  Displays and Monitors. We sell a line of space-saving, zero-emission Harsper
   TFT-LCD flat panel displays. We believe our TFT-LCD panels take up less than
   one-tenth of the space needed for an equivalent cathode ray tube monitor and
   are some of the thinnest available on the market. We also offer a line of
   traditional monitors.

-  Notebook Computers. We market a complete line of competitively priced,
    build-to-order notebook computers, including the Apache and the Phoenix.

-  Printers and Peripherals. We are an authorized distributor of Epson printers
   and peripherals and currently offer two transactional printers.

-  Third-Party Hardware, Software, and Related Supplies. In an effort to provide
   our customers a wider range of products, we recently began reselling
   third-party hardware, software, and related supplies.


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      SERVICES

      INVNSYS completed a co-location facility in August, 2000 and opened it for
service on September 14, 2000. "Co-location" is providing network connections,
such as Internet leased lines, to several servers housed together in a server
room. Typically, we provide a server, usually a Web server, located at our
dedicated facility designed with resources which include a secured cage or
cabinet, regulated power, dedicated internet connection, security and support.

      Our co-location facility offers our customers a secure place to physically
house their hardware and equipment. The potential for fire, theft, or vandalism
is much greater locating such equipment in their offices or warehouse. Our
facility also offers high security - including cameras, fire detection and
extinguishing devices - multiple connection feeds, filtered power, backup power
generators and other items to ensure high-availability, which is mandatory for
all Web-based, virtual businesses.

      Our customers prefer co-location because the server-owners wants their
machine to be on a high-speed Internet connection and/or they do not want the
security risks of having the server on their own network.

      There can be no assurance that INVNSYS will develop the economies of scale
or obtain the customer base necessary to achieve long-term profitability in its
co-location facility.

      Responding to market demand for complete network solutions, INVNSYS began
providing network integration services in the last quarter of 1999. Through
previous contacts developed by its Chief Technology Officer prior to joining the
Company, INVNSYS acquired network integration service accounts with American
Express, Motorola, and Intel.

      Expanding its networking capabilities, in November 1999 INVNSYS entered
into an agreement with Northpoint Communications. Through this agreement,
INVNSYS began offering digital subscriber line ("DSL") services to commercial
customers. DSL service is an emerging technology providing high-speed Internet
connections over phone carriers' existing copper wiring at connection speeds
ranging from 144 KBPS to 1.5 MBPS. Management believes DSL service offers a
lower cost alternative to competing products such as T-1 and frame relay
services that provide similar connection speeds but require additional
infrastructure expenditures.

      Management believes that the addition of the co-location facility, network
integration and DSL services will allow INVNSYS to expand its customer base by
enabling the Company to offer complete networking solutions. To date, INVNSYS
has recognized no significant revenue from these new services. There can be no
assurance that INVNSYS will be successful in developing, integrating and
profiting from these  services.

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      MARKETING, SALES AND DISTRIBUTION

      INVNSYS markets and distributes products directly to end users through a
direct sales force, regional resellers, value-added providers in the banking and
point-of-sale ("POS") market and Internet commerce sites. INVNSYS has a direct
sales force of nine employees, directed by Mr. Schilling, who market INVNSYS'
products and services.

      In addition to direct sales, INVNSYS also markets its full range of
products directly to retail customers through its website at www.ibizcorp.com.
To date, iBIZ has recognized only nominal revenues from Internet retail sales.
Management believes that direct sales to end users should allow INVNSYS to more
efficiently and effectively meet customer needs by providing products which are
tailored for the customer's individual requirements at a more economical price.

      In January 2000, INVNSYS was named the exclusive United States distributor
of certain current and all new Harsper Co., Ltd. TFT-LCD products and services.
The Master Distribution Agreement is effective until September 31, 2001, subject
to annual renewal unless terminated by either party prior to the then -
effective renewal date. After the initial period, the agreement may be
terminated subject to mutual acceptance of the parties and upon 30 days written
notice.

      INVNSYS also distributes its products to regional resellers and, to a
lesser extent, national distributors and to retail stores such as CompUSA,
Inc. and Fry's Electronics.

      INVNSYS has a marketing agreement with Global Telephone Communication,
Inc. ("Global"), whereby Global will market INVNSYS' products in the Pacific
Rim. Management believes that Global, through a joint venture with Pacific
Assets International, will provide access to numerous banks throughout Asia,
including Mainland China, Hong Kong, Taiwan, South Korea, Malaysia, Indonesia
and Japan. To date, however, INVNSYS has not recognized revenues from its
marketing agreement with Global.

      MANUFACTURING

      INVNSYS' products are engineered and manufactured by various entities in
Taiwan. Currently, INVNSYS has an agreement with DataComp, a private Taiwanese
company, to manufacture INVNSYS' keyboards and keypads. The Harsper TFT-LCD
panels are manufactured in South Korea. First International Computer in Taiwan
currently manufactures INVNSYS' desktop computers.

      These manufacturers build INVNSYS' products to INVNSYS' specifications
with non-proprietary components. Therefore, the vast majority of parts used in
INVNSYS' products are available to INVNSYS' competitors. Although INVNSYS has
not experienced difficulties in the past relating to engineering and
manufacturing, the failure of INVNSYS' manufacturers to produce products of
sufficient quantity and quality could adversely affect INVNSYS' ability to sell
the products its customers' demand.


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      INVNSYS engages in final assembly, functional testing and quality control
of its products in its Phoenix, Arizona facility. Management believes INVNSYS'
completion of the final stages of manufacturing allows INVNSYS to ensure quality
control for its products manufactured overseas.

      INVNSYS has entered into an agreement with Twinhead Corporation, a
Taiwanese manufacturer of notebook computers ("Twinhead"), to produce
build-to-order notebook computers. The design, engineering and manufacturing of
INVNSYS' notebook computers is done entirely by Twinhead. Management believes
this relationship allows INVNSYS to offer a broader range of products to its
customers without the cost of research and development and manufacturing.

      LICENSES

      Citrix Systems, Inc. On December 30, 1998, INVNSYS entered into a
licensing agreement with Citrix Systems, Inc. ("Citrix") for the use of Citrix
Independent Computing Architecture ("ICA"), an emerging industry standard for
server-based computing (the "ICA Agreement"). Under the ICA Agreement, INVNSYS
is granted a non-exclusive, non-transferable right to incorporate ICA into
Citrix-approved iBIZ computers. In addition, INVNSYS and Citrix have entered
into a Citrix Business Alliance Membership Agreement dated February 22, 1999
(the "CBA Agreement"). For a membership fee, CBA membership entitles INVNSYS to
engineering, sales, and marketing support by Citrix, as well as access to beta
releases of new Citrix products and discounted current software products. The
CBA Agreement terminated on December 31, 2000. The license was for a term of two
years and the Company is currently considering whether to renew the license.

      Microsoft, Inc. In June 1999, INVNSYS entered into an agreement with
Microsoft, Inc. to become an OEM system builder. Participation in this program
allows INVNSYS to install genuine Microsoft operating systems in selected
applications with full support from Microsoft. In addition, this agreement
entitles INVNSYS to pre-production versions of Microsoft products and enables
INVNSYS to provide input into development and design of new products.

      KeyLink Software License. iBIZ has an exclusive, perpetual license to use,
distribute and offer for sale with associated hardware the software that
facilitates the connection between the KeySync keyboard and 3COM Palm devices.

      PATENTS AND TRADEMARKS

      INVNSYS holds no United States or foreign patents for its products.
However, iBIZ has filed a patent application for its Lapboard keyboard. In
general, INVNSYS believes that its continued success will depend primarily upon
the technical expertise, creative skills, and management abilities of its
officers, directors, and key employees rather than on patent ownership.

      iBIZ has filed an application with the United States Patent and Trademark
Office for the use of the names "iBIZ" and "KeySync" and is currently
investigating various other product trademarks.


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<PAGE>   8
      SERVICE AND SUPPORT

      INVNSYS provides its customers with a comprehensive service and support
program. Technical support is provided to customers via a toll-free telephone
number as well as through the iBIZ website. The number is available Monday
through Friday 8:00 a.m. to 5:00 p.m., Mountain Standard Time. INVNSYS maintains
a staff of approximately 20 technical and customer support representatives who
respond to telephone inquiries.

      Also available on iBIZ's website are links to files for software patches
and drivers used for software updates.

      INVNSYS' products have either a one-year or three-year limited warranty
covering parts and service. In addition, INVNSYS offers extended service
agreements, which may extend warranty coverage for up to two additional years.
Under the Virtual Spare program, INVNSYS provides replacement units by next-day
shipment in the event a customer's unit fails. Under this program, customers
have, at no additional expense, the option to have their existing hard-drive
configuration installed on the replacement unit. The customer's units are then
returned to INVNSYS' Phoenix facility for service. Under INVNSYS' On-Site
program, customers have the ability to have a Company-owned spare on-site for
immediate availability in the event of a failure. Failed units are then returned
to INVNSYS' facility for service and returned to replace the spare for future
needs. INVNSYS believes its Virtual Spare and On-Site programs eliminate the
need for on-site technical support for the replacement units and reduce set-up
time at customer facilities.

      COMPETITION

      Personal Computers

      The personal computer industry is highly competitive. INVNSYS competes at
the product level with various other personal computer manufacturers and at the
distribution level primarily with computer retailers, on-line marketers and the
direct sales forces of large personal computer manufacturers.

      At the product level, the personal computer industry is characterized by
rapid technological advances in both hardware and software development and by
the frequent introduction of new and innovative products. There are
approximately 100 manufacturers of personal computers, the majority of which
have greater financial, marketing and technological resources than INVNSYS.
Competitors at this level include IBM, Compaq, Dell, NEC, and Gateway 2000.
Gateway 2000 and NEC, among other competitors, have recently introduced smaller
desk top computers than have been manufactured in the past. However, those
computers are targeted for the consumer and not for the corporate customer and
are more expensive than the computers offered by INVNSYS. INVNSYS' main
competitors for its line of thin-client computer systems include specialty
manufacturers such as WYSE Technology.

      Competitive factors include product quality and reliability, price to
performance characteristics, marketing capability, and corporate reputation. In
addition, a segment of the industry competes primarily for customers on the
basis of price. Although INVNSYS' products are price competitive, INVNSYS does
not attempt to compete solely on the basis of price.


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      The intense nature of competition in the computer industry subjects
INVNSYS to numerous competitive disadvantages and risks. For example, many major
companies will exclude consideration of INVNSYS' products due to limited size of
the company. Moreover, INVNSYS' current revenue levels cannot support a high
level of national or international marketing and advertising efforts. This, in
turn, makes it more difficult for INVNSYS to develop its brand name and create
customer awareness. Additionally, INVNSYS' products are manufactured by third
parties in Taiwan or South Korea. As such, INVNSYS is subject to numerous risks
and uncertainties of reliance on offshore manufacturers, including, taxes or
tariffs, non-performance, quality control, and civil unrest. Also, as INVNSYS
holds no patents, the vast majority of parts used in its products are available
to its competitors.

      Management believes that it can compete effectively by providing computers
and peripherals utilizing unique designs and space-saving qualities, such as
small footprints. Although Management believes it has been successful to date,
there can be no assurance that INVNSYS will be able to compete successfully in
the future.

      Services

      INVNSYS recently began offering co-location, network integration and DSL
high-speed Internet connection services. Although management believes these
services will enable INVNSYS to expand its customer base through the offering of
complete network solutions, each service will experience intense competition.
For example, network integration services are offered by a wide range of
competitors, including large established companies such as IBM and AT&T, as well
as small private entities. Many of INVNSYS' competitors in network integration
services are more established and have greater resources. INVNSYS has a
technology manager with significant network integration experience and industry
contacts. However, as these are new lines of business, no assurance can be given
that INVNSYS will be able to expand its business of network solutions.

      Similarly, the market for Internet connection services is highly
competitive. INVNSYS' agreement with Northpoint Communications enables it to
offer DSL high-speed Internet connection services. DSL is an emerging technology
that allows for higher speed connections over existing copper phone lines.
Currently, large established companies such as Qwest Communications (formerly
U.S. West Communications), COX Communications, Covad Communications and Rhythms
NetConnections offer DSL services. Co-location and data warehousing competitors
include large public companies such as Exodus Communications, GST, Above-Net,
and Global Center. Management believes that these companies' greater resources
may increase market awareness and acceptance of DSL and co-location services.
However, as INVNSYS has only recently entered the market for Internet connection
services, there can be no assurance that it can successfully compete in the
marketplace.

      INVNSYS' DSL services also compete with numerous local and national
conventional dial-up Internet service providers such as America Online and
MindSpring. Although capable of providing higher connection speeds than
traditional modem dial-up services, the market for DSL services is currently
limited by the technological requirement that customers be located within a
fixed proximity of a central office which


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provides the service. In contrast, conventional dial-up Internet services, while
providing slower connection speeds, may be accessed by any telephone line. There
can be no assurance that the market for DSL services will develop to
successfully compete against conventional dial-up Internet service providers or
that INVNSYS will successfully market its DSL services. There can be no
assurance that the changes in technology will not make co-location services
obsolete or that INVNSYS will achieve the necessary market penetration in its
geographic region necessary to achieve profitability in its co-location
facility.

      Reselling

      As part of its efforts to provide complete networking solutions, in
December 1999, INVNSYS began reselling third-party hardware, software, and
related supplies to business customers. The market for reselling these products
is highly competitive. INVNSYS competes against a wide range of competitors,
including the direct sales forces of companies such as CompUSA, and ASAP
Software Express, a division of Corporate Express, Inc., and mail order
companies such as Insight Enterprises, and Computer Discount Warehouse. Many of
INVNSYS' competitors are more established and have greater resources. Management
believes that INVNSYS can compete effectively in this market segment in that
INVNSYS can provide complete network solutions in conjunction with competitively
priced third-party hardware, software and related supplies. To date, management
estimates that the reselling of third-party software has generated sales of
approximately $100,000 per month. However, there is no assurance that iBIZ's
relationship with its third-party suppliers will continue, that such revenue
levels will be sustained or that the Company will be able to effectively compete
in the third-party reselling market segment.

      CUSTOMERS FOR PRODUCTS

      Throughout its history, INVNSYS' ability to deliver innovative product
designs and quality customer service has enabled it to provide products to major
financial institutions including Wells Fargo, Bank of America, Security Pacific,
Northrim Bank, and First Interstate Banks. Currently, no single customer
accounts for more than 10% of INVNSYS' product revenues.

      EMPLOYEES; LABOR RELATIONS

      As of November 20, 2000, INVNSYS had approximately 53 full-time employees.
No employee of INVNSYS is represented by a labor union or is subject to a
collective bargaining agreement. INVNSYS has never experienced a work-stoppage
due to labor difficulties and believes that its employee relations are good.

      FCC REGULATIONS

      The Federal Communications Commission (the "FCC") has adopted regulations
setting radio frequency emission standards for computing equipment. Management
believes all of INVNSYS' current products meet applicable FCC and foreign
requirements.

      INVNSYS is in the process of exploring foreign operations. Many foreign
jurisdictions require governmental approval prior to the sale or shipment of
personal computing equipment and in certain jurisdictions such requirements are
more stringent


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than in the United States. Any delays or failures in obtaining necessary
approvals from foreign jurisdictions may impede or preclude INVNSYS' efforts to
penetrate such markets.

      USE OF TRADEMARKS AND TRADENAMES

      All trademarks and tradenames used in this report are the property of
their respective owners.

                                  RISK FACTORS

      INVESTMENT IN OUR COMMON STOCK INVOLVES A HIGH DEGREE OF RISK. YOU SHOULD
CONSIDER THE FOLLOWING DISCUSSION OF RISKS AS WELL AS OTHER INFORMATION IN THIS
REPORT. THE RISKS AND UNCERTAINTIES DESCRIBED BELOW ARE NOT THE ONLY ONES.
ADDITIONAL RISKS AND UNCERTAINTIES NOT PRESENTLY KNOWN TO US OR THAT WE
CURRENTLY DEEM IMMATERIAL ALSO MAY IMPAIR OUR BUSINESS OPERATIONS. IF ANY OF THE
FOLLOWING RISKS ACTUALLY OCCUR, OUR BUSINESS COULD BE HARMED. IN SUCH CASE, THE
TRADING PRICE OF OUR COMMON STOCK COULD DECLINE.

      EXCEPT FOR HISTORICAL INFORMATION, THE INFORMATION CONTAINED IN OUR SEC
REPORTS ARE "FORWARD-LOOKING" STATEMENTS ABOUT OUR EXPECTED FUTURE BUSINESS AND
PERFORMANCE. OUR ACTUAL OPERATING RESULTS AND FINANCIAL PERFORMANCE MAY PROVE TO
BE VERY DIFFERENT FROM WHAT WE MIGHT HAVE PREDICTED AS OF THE DATE OF THIS
REPORT.

GENERAL RISKS

      We Have A History Of Losses And Anticipate Future Losses

      For the fiscal year ended October 31, 1999, we sustained a loss before
other income (expense) of approximately $1,074,180 and for the fiscal year ended
October 31, 2000, we sustained a loss before other income (expense) of
$3,570,789. Future losses are anticipated to occur. We continue to have
insufficient cash flow to grow operations. We cannot assure you that we will be
successful in reaching or maintaining profitable operations.

      We May Require Additional Capital In The Future

      We have spent substantial funds on construction and installation of our
new co-location facility and expansion of our sales and marketing efforts. As a
result, we have needed to raise capital to maintain our ongoing business.

      Since December 1, 1999, we have raised approximately $5,900,000 through
the sale of convertible debentures, convertible notes, common stock and warrants
to various individuals. We relied upon either Section 4(2) or Regulation D, Rule
506 promulgated under the Securities Act of 1933 with respect to these sales of
common stock. We currently have commitments for an additional $2,900,000,
subject to meeting certain representations, warranties, covenants, and
conditions.

      We believe that the amounts committed (assuming we meet the
representations, warranties, covenants, and conditions to receive those amounts)
should be sufficient to finance our business plans through our fiscal year ended
October 31, 2001. However, we cannot assure you that unforeseen events will not
result in the need for additional capital


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<PAGE>   12
sooner than we currently anticipate. If at any time we are unable to raise
additional financing, we may be forced into insolvency.

      If we are unable to raise additional funds when necessary, we may have to
reduce planned expenditures, scale back our product developments, sales or other
operations, lay-off employees and enter into financing arrangements on terms
that we would not otherwise accept or be forced into insolvency.

      We Have Recently Added New Lines Of Business

      We recently began offering network integration services, digital
subscriber line high-speed Internet communications services and a co-location
and data warehousing hosting facility. However, we cannot assure you that we
will develop and implement successful marketing strategies for these new
services. In addition, as DSL services are an emerging technology, we cannot
assure you that this technology will gain market acceptance or not become
obsolete in the future. Our service lines of business require increasing
attention by management and do not provide much synergy or economies of scale
with our existing products. Heightened focus of management on our service
business may cause a decline in the revenues or margins of our products
business.

      There Is A Limited Market For Our Common Stock

      Currently only a limited trading market exists for our common stock. Our
common stock trades on the OTC Bulletin Board under the symbol "iBIZ." The
Bulletin Board is a limited market and subject to substantial restrictions and
limitations in comparison to the NASDAQ system. Any broker/dealer that makes a
market in our stock or other person that buys or sells our stock could have a
significant influence over its price at any given time. We cannot assure you
that the market in our common stock will be sustained. As a result, holders of
our common stock may be unable to readily sell the stock they hold or may not be
able to sell it at all.

      Our Stock Price Has Been Volatile

      The history relating to the prices of newly public companies indicates
that there may be significant volatility in the market price of our common
stock. More particularly, since trading began in July 1998, the market price of
our common stock has fluctuated between a low of $0.16 per share and a high of
$3.19 per share. As a result, holders of our common stock may be subject to wide
fluctuations in the value of their investment.

      We Are Dependent On Key Personnel

      Our future success is dependent, in part, upon our four executive officers
and other key employees. A loss of one or more of our current officers or key
employees could negatively impact our operations. However, we have entered into
employment agreements with our executive officers and other key employees. We
currently do not carry key-man life insurance policies for our executive
officers. We cannot assure you that we will not suffer the loss of key human
resources.

      Our Officers And Directors Can Exercise Control Over All Matters
Submitted To A Vote Of Shareholders

      As of December 29, 2000, our executive officers and directors beneficially
owned an aggregate of approximately 33.82% of our outstanding common stock.
These officers,


                                       12
<PAGE>   13
acting together, will probably be able to effectively control matters requiring
approval by our shareholders, including election of members to our board of
directors. As a practical matter, current management will continue to control
iBIZ for the foreseeable future.

      We Have Not And Do Not Anticipate Paying Dividends.

      To date, we have not paid dividends to our shareholders and we do not
contemplate paying dividends in the future. We anticipate retaining earnings, if
any, to finance and develop our business. As a result, the return on your
investment will depend upon any appreciation in the market price in the common
stock.

CO-LOCATION/DSL SERVICES RISKS

      We Are Subject To Government Regulation And Changes In Laws That Could
Adversely Effect Our Business.

      We provide Internet services, in part, through data transmission over
public telephone lines as well as through the private Northpoint network. These
transmissions are governed by State and Federal regulatory policies establishing
charges and terms for wireline communications. While we are not currently
subject to direct regulation by the Federal Communication Commission (the
"FCC"), we could become subject to regulation by the FCC or another regulatory
agency as a provider of basic telecommunication services. Such a regulation, if
enacted, would create substantial barriers to our entry into the Internet
telephone market. Moreover, we are subject to a variety of risks that could
materially effect our business due to the rapidly changing legal and regulatory
landscape governing the Internet access providers. For example, the FCC
currently exempts Internet access providers from having to pay permanent access
charges that long distance telecommunication providers may charge local
telephone companies for the use of the local telephone network. In addition,
Internet access providers are currently exempt from having to pay a percentage
of their gross revenues as a contribution to the Federal Universal Service Fund.
Should the FCC eliminate these exemptions and impose such charges on Internet
access providers, this would increase our cost for providing dial-up Internet
access service and could have a material adverse effect on our business,
financial condition and results of operations.

      We Face Risk Due To Possible Changes In The Way Our Competitors Are
Regulated That Would Have An Adverse Effect On Our Business.

      For example, the FCC is considering measures that could stimulate the
development of high-speed telecommunication facilities to make it easier for
operators of these facilities to obtain access to customers. Such favorable
regulatory measures could enhance the viability of our competitors in the
Internet access marketplace. In addition, changes in the regulatory environment
may provide competing Internet service providers the right of access to the
cable systems of local franchise cable operators. The adoption of local access
cable systems by Internet service providers could harm our business.

      We Have A Limited Operating History On Which You May Judge Our
Performance.


                                       13
<PAGE>   14
      While our operating subsidiary, INVNSYS, has been in operation since 1979,
iBIZ commenced operations in the Internet access business in September 2000.
Consequently, the Company has a limited operating history in the Internet-access
business upon which an evaluation of the Company's performance and prospects can
be made. The Company's prospects must be considered in light of the illiquidity
risks, expenses, delays, problems and difficulties frequently encountered in the
establishment of a new business in an industry characterized by intense
competition and high cost utilization.

      Our Network Integration, DSL Services, And Co-location Facility Face
Intense Competition.

      The market for network integration services, DSL high-speed Internet
communications services and co-location and data warehouse hosting facilities
is highly competitive. Our network integration services compete against a wide
range of competitors from large established companies such as IBM and AT&T to
smaller private entities. Our DSL services compete with companies such as Qwest
Communications (formerly U.S. West Communications), COX Communications, Covad
Communications and Rhythms NetConnections, as well as numerous local and
national traditional Internet service providers. Co-location and warehouse data
center competitors include large, public companies such as Exodus
Communications, GST, Above.Net and Global Center. Many DSL and co-location
service providers have much greater capital and can deploy a significant amount
of their employees to assist customers in obtaining their services and respond
to issues arising related to their services. Many of our competitors have
substantial advertising and marketing budgets giving them the ability to capture
market share quickly. While we believe that the quality of our service and the
location and completion of our co-location facility before many of our
competitors will give us a competitive advantage, we do not know how long we
will maintain our lead over the competition. Although many DSL and co-location
providers are more established, we believe their greater resources may increase
market awareness and acceptance of DSL and co-location services. This, in turn,
may make it easier for us to sell DSL and co-location services. We cannot assure
you, however, that our new DSL and co-location services will enable us to expand
our customer base and generate greater revenues.

      We Face Intense Pricing Pressure.

      Our Internet access business competes or expects to compete directly or
indirectly with the following categories of companies: (i) national and regional
commercial Internet Service Providers; (ii) established online services that
offer Internet access, such as America On-Line and Earthlink; (iii) national
long distance telecommunication carriers, such as AT&T, MCI Worldcom and Sprint,
which offer electronic messaging services; (iv) regional Bell operating
companies, such as Pacific Bell; (v) cable operators, such as Cox
Communications; and (vi) nonprofit or educational Internet service providers and
other service providers currently in the market or who may enter the market in
the future.

      We Depend On Our Telecommunication Carriers And Other Suppliers.

      We are dependent on telecommunication carriers for access to high speed
Internet communications. We currently operate pursuant to agreements with UUNet
(MCI Worldcom), ELI (Electric Lightways), Cox, and Genuity. In the event of
termination or


                                       14
<PAGE>   15
nonrenewal of all of these agreements, there can be no assurance that we will be
able to provide continued access to high-speed Internet connections at a
reasonable price. In such case, our operations may have to be curtailed.

      We Must Rely On Our Strategic Partners To Keep Pace With Rapid
Technological Change And Evolving Industry Standards.

      The markets for telecommunication services are characterized by rapidly
changing technology, evolving industry standards, emerging competition and
frequent new services, software and other product introductions. Because we are
primarily a marketer and reseller of Internet services and technological
products, we must rely on our strategic partners to keep pace with technological
change. There can be no assurance that our strategic partners can successfully
identify new service opportunities or products and develop and bring new
products and services, if any, to market in a timely and cost effective manner.
We also cannot assure that software, services, products or technologies
developed by others will not render the services, technologies or products of
our strategic partners less competitive or obsolete. In addition, there can be
no assurance that any product or service developments will achieve or sustain
market acceptance or be able to effectively address the compatibility and
operability issues raised by technological changes or new industry standards.

      We Face The Risk Of System Failure.

      Our co-location and internet services segments' success is largely
dependent upon our ability to deliver high quality, high speed uninterrupted
access to the Internet. System failures could have an adverse effect on our
operations and business. As we attempt to expand our network and daily traffic
grows, there will be increased stress on network hardware and traffic management
systems. Our operations are also dependent on our ability to successfully expand
our network and to integrate new and emerging technologies and equipment into
the network, which is likely to increase the risk of system failure and cause
unforeseen strains on the network. Significant or prolonged systems failures, or
difficulties for subscribers in accessing and maintaining connection with the
Internet could damage our reputation and result in the loss of subscribers. With
respect to DSL, we have little technical control over the Northpoint network and
there can be no assurance that our customers will not experience failures
relating to that network.

      We Face Security Risks.

      Despite the implementation of network security measures, such as limiting
physical and network access to its routers, our Internet infrastructure is
potentially vulnerable to computer viruses, break-ins and similar disruptive
problems caused by customers or other Internet users. Computer viruses,
break-ins or other problems caused by third parties could lead to interruption,
delays or cessation of service to customers. Furthermore, such inappropriate use
of the Internet by third-parties could also potentially jeopardize the security
of confidential information stored in the computer systems of our customers and
other parties connected to the Internet, which may deter potential customers
from using our services.

HARDWARE PRODUCT RISKS


                                       15
<PAGE>   16
      Highly Competitive Market For Products

      The market for our products is intensely competitive. We expect to
experience significant and increasing levels of competition. We compete
principally in the following areas:

      -     Product Quality and Reliability

      -     Product Performance

      -     Level of Customer Service

      -     Ability to Meet Customer Requirements

      -     Brand Awareness

      -     Price

      In many of our markets, traditional computer hardware manufacturing
companies provide the most significant competition. Our competitors include a
substantial number of large public companies, including IBM, Compaq Computer
Corporation, Dell Computer Corporation, Toshiba, Gateway 2000 and NEC, and, in
the thin-client computer terminal market, with WYSE Technology, a private
company we believe may have as much as 45% of the total thin-client terminal
market. As a reseller, we compete against well established companies such as
CompUSA, Computer Discount Warehouse and Insight Enterprises.

      Most of our competitors are much larger, benefit from greater name
recognition and have significantly greater resources than we do. This subjects
us to numerous competitive disadvantages. For example, our current revenue
levels limit our ability to market and advertise on a local, national or
international level with respect to our products. This in turn makes it more
difficult for us to increase brand awareness. We could be forced to reduce
prices and suffer reduced margins or market share due to increased competition
from manufacturers or distributors of products similar to or competitive with
our products.

      We Need To Expand Our Product Range

      To effectively compete, we need to continue to expand our business and
generate greater revenues so that we have the resources to timely develop new
products. We must continue to market our products and services through our
direct sales force and expand our e-commerce distribution channels. We cannot
assure you that we will be able to grow sufficiently to provide the range and
quality of products and services required to compete.

      We Must Keep Pace With Rapid Technological Change To Remain Competitive.

      The computer industry is characterized by rapidly changing technology,
evolving industry standards, frequent new product introductions and enhancements
and changing customer demands. We must develop and introduce new products that
keep pace with technological developments. If we fail to introduce progressive
new products in a timely and cost-effective manner, our financial performance
may be negatively affected.


                                       16
<PAGE>   17
      Recent Consolidations May Limit Our Markets

      One of our primary markets is the banking and financial institution
industry. Recently, many banking and financial institutions have begun to
consolidate. Although the number of potential customers decreases during
consolidation, many banking and financial institutions upgrade their computer
networks. We cannot assure you that the demand for our products by banking and
financial institutions will not decrease as a result of the consolidation.

      Our Products Must Be Compatible With Third-Party Software

      Although we market computer hardware and peripherals, we currently do not
develop software. Consequently, we are dependent upon third-parties to develop
software applications that operate on our hardware platforms. If software
providers do not continue to provide software acceptable to our customers, our
sales may suffer.

      We cannot guarantee that all available software will be compatible with
our products or that we will have the technical personnel necessary to evaluate
and fix software compatibility problems that may arise. If we do not have
technical personnel available, our sales may decline.

      We Are Dependent On Our Manufacturers And Suppliers

      Our business depends upon obtaining adequate quantities of products from
our manufacturers and suppliers. Consequently, our results of operations are
dependent, in part, upon our manufacturers' and suppliers' ability to produce
reasonably priced products in adequate amounts to meet our demands.

      Currently, our computers and peripherals are engineered and manufactured
by various entities in Taiwan and South Korea. Although we have not experienced
significant problems with our manufacturers and suppliers in the past, we may
experience such problems in the future. We are also subject to risks of
fluctuations in our component prices. If prices charged by our vendors increase,
our cost of goods sold and net income would be adversely affected.

      We cannot assure you that our positive relationships will continue or that
in the event of a termination of a relationship with a manufacturer or supplier,
we would be able to obtain alternative sources of manufacturing or components
without a material disruption in our ability to provide products to our
customers. A material disruption of our ability to supply computers and
peripherals to our customers would have a material adverse effect on our sales
and results of operations.

      We Must Continue To Be Authorized To Incorporate Manufacturer
Authorized Products

      We are dependent on our continued authorization to provide manufacturer
authorized products, including certain software products. Currently, the Company
is authorized by industry-leading software developers, such as Microsoft to
incorporate their software in our products. However, the Company has allowed the
authorization from Citrix Systems to lapse and has not yet decided whether to
maintain its relationship with Citrix Systems. Without such authorization, we
would be unable to provide the


                                       17
<PAGE>   18
same range of products currently offered. We cannot assure you that
manufacturers will continue to authorize use of their software in our computers
and peripherals.

      We Have Few Proprietary Rights

      We attempt to protect our limited proprietary property through copyright,
trademark, trade secret, nondisclosure and confidentiality measures. Such
protections, however, may not preclude competitors from developing similar
technologies.

      Currently, we hold no patents and most of the technology used in the
design and manufacture of our computers and peripherals is known and available
to others. Although we are exploring patent protection for one of our keyboard
products, we believe that our competitive position is based on the ability to
successfully market innovative computers and peripherals rather than on patented
technologies.

      Although we believe that our products do not infringe on any third party's
intellectual property rights, we cannot be certain that we will not become
involved in litigation involving proprietary rights. Intellectual property
rights litigation entails substantial legal and other costs. We do not know if
we will have the necessary financial resources to defend or prosecute our rights
in connection with any litigation.

                        ITEM 2. DESCRIPTION OF PROPERTY.

      On July 1, 1999, iBIZ began leasing an approximately 15,000 square foot
custom-built office building located at 1919 West Lone Cactus, Phoenix, Arizona.
The facility is used for administration, design, engineering and assembly of
products. iBIZ's lease ("Lease") is for a term of 26.5 years, with monthly
rental payments of $12,800, subject to annual increases, plus taxes and
operating costs.

      The facility is leased from Lone Cactus Capital Group, L.L.C., a limited
liability company in which Kenneth Schilling is a member. Mr. Schilling and his
wife, Diane, personally guarantee the Lease. The Lease is also secured by all of
the assets of the Company. Management believes this new facility provides
adequate space to accommodate iBIZ's current plan of growth and expansion.

      The Company does not have a policy regarding investments in real estate,
mortgages, or in companies investing in real estate or mortgages. The Company is
not presently contemplating an investment in real estate.

                           ITEM 3. LEGAL PROCEEDINGS.

      INVNSYS was the defendant in a civil matter filed by Epson America, Inc.
("Epson"), in the Superior Court of the State of Arizona (Case No.
CV2000-008155), filed 28 April 2000. The complaint alleged that over the past
three (3) years, INVNSYS became indebted to Epson in the amount of $151,665.96.
Since February 2, 1999, no payment had been made to Epson, leaving an unpaid
balance of $102,636.05 plus interest. Epson sought to recover $102,636.05 plus
interest accruing at a rate of ten percent (10%) from February 2, 1999,
attorneys fees, incurred costs and expenses, together with accruing costs. iBIZ
sought to recover additional commissions that it believed Epson owed it and
intended to file a counterclaim in the amount of $480,100.


                                       18


<PAGE>   19
As of January 29, 2001, the Company and Epson have agreed to settle the suit,
with the Company paying a single lump sum of $2,500 to Epson. For accounting
purposes, $102,619 had been accrued as a liability in iBIZ's financial records.

      iBIZ has been assessed approximately $62,000 in penalties and interest by
the IRS in connection with payroll taxes due through the first quarter of 1999.
The Company has paid the taxes, interest, and some portion of the penalty, but
has requested an abatement of the remaining penalty imposed. The Company is
awaiting a final disposition by the IRS.

     See, Form 8-K dated January 19, 2001 for information regarding the
Company's pending investigation by staff of the SEC.

         ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

      No such matters.

                                     PART II
      ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

                            MARKET FOR COMMON EQUITY

      The Company's common stock is currently traded on the OTC Bulletin Board.
The common stock was initially listed under the symbol "EVCV" on June 3, 1998,
and trading began on July 16, 1998. On October 26, 1998, the Company changed its
trading symbol to "IBIZ." The following charts indicate the high and low sales
price for the Company's common stock for each fiscal quarter between November 1,
1998, and October 31, 2000, as quoted on the OTC:BB. These quotations reflect
inter-dealer prices, without retail mark-up, mark-down or commission, and may
not represent actual transactions.

                         1999 - 2000 Common Stock Prices

                               Symbols EVCV / IBIZ

<TABLE>
<CAPTION>
                                              Price
                    Quarter Ended        High       LOW
                   --------------------------------------
<S>                                     <C>        <C>
                      January 99        2.563      1.156
                        April 99        1.875      0.750
                         July 99        2.266      0.625
                      October 99        1.500      0.844
                      January 00        2.063      0.969
                        April 00        3.188      0.938
                         July 00        1.281      0.625
                      October 00        1.219      0.375
</TABLE>


      As of December 29, 2000, management believes there to be 163 holders of
record of iBIZ's common stock. To date, iBIZ has not paid any dividends on its
common stock. iBIZ does not currently intend to pay dividends in the future.
iBIZ is prohibited from declaring or paying dividends while certain debentures
or warrants are outstanding.


                                       19
<PAGE>   20
                   RECENT SALES OF UNREGISTERED SECURITIES

      The shares described below represent certain equity securities of iBIZ
sold by iBIZ during the period covered by this report that were not registered
under the Securities Act, all of which were issued by iBIZ pursuant to
exemptions under the Securities Act. Underwriters were involved in none of these
transactions. In each case, the securities were sold to accredited investors, as
determined by an investor questionnaire executed in conjunction with the
respective subscription agreements.

      Other than the issuances described below, between August 1, 2000, and
October 31, 2000, the Company issued 6,719,597 shares of Common Stock to 21
different parties at sales prices ranging from $0.30 to $0.75 cents per share
for a total amount of approximately $2,276,248. The Company also issued warrants
to purchase approximately 805,000 shares of Common stock at exercise prices
ranging from $0.50 to $5.00. iBIZ relied on either Regulation D, Rule 506 or
Section 4(2) under the Securities Act with respect to these sales.

      The Company entered into a certain stock purchase agreement with various
individuals and institutions in which they agreed to purchase an aggregate of $5
million of 8% Convertible Notes (the "Notes"). The Conversion Price for all of
the Notes is the lesser of (i) 80% of the average of the three lowest closing
bid prices of the Common Stock on the Principal Market for the twenty-two (22)
trading days prior to the Closing Date, or (ii) 80% of the average of the five
lowest closing bid prices of the Common Stock on the Principal Market for the
sixty (60) trading days prior to the Conversion Date, as defined in the Note.
The maximum share of the Company that any Subscriber may own after conversion at
any given time is 4.99%, unless the Subscriber gives 75 days prior notice. As of
October 27, 2000, the initial $1 million was subscribed (the "Initial
Offering"). The initial $1 million of Notes matures on October 30, 2002,
interest only payments are due quarterly commencing January 1, 2001, and the
principal is due in one lump sum on October 30, 2002. The Company also issued
warrants to purchase 1,050,000 shares of Common Stock at an exercise price as
calculated below in connection with the financing. The warrants will give the
holder the right to purchase common stock for 105% of the average of the three
lowest closing bid prices of the Common Stock for the ten (10) trading days
preceding the date of the Initial Offering. The Company exercised its "Put
Right" for an additional investment of $1,100,000 in December 2000, issuing an
additional $1.1 million of Notes, which mature on December 20, 2002.
Interest-only payments are due quarterly commencing April 1, 2001, and the


                                       20
<PAGE>   21
principal is due in one lump sum on December 20, 2002. The Company also issued
warrants to purchase 800,000 shares of Common Stock at an exercise price as
calculated above.

                ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS

      Through its operating subsidiary, INVNSYS,  iBIZ designs, manufactures,
and distributes small footprint desktop computers, transaction printers, general
purpose financial application keyboards, numeric keypads, CRT's, TFT-LCD
monitors and related products. INVNSYS also markets a line of OEM notebook
computers and distributes a line of transactional and color printers. iBIZ
recently began offering network integration services, digital subscriber line
high-speed Internet connection services, a co-location server facility and
business-to-business software sales. To provide a greater range of products,
iBIZ recently began reselling third-party hardware, software and related
supplies.

                         Selected Financial Information.



<TABLE>
<CAPTION>
                                                 YEAR ENDED
                                                 ----------
                                        10/31/99             10/31/00
-------------------------------------------------------------------------
<S>                               <C>                  <C>
Statement of Operations Data      $                    $
      Net sales                       2,082,515            4,144,822
      Gross profit                      399,610              841,100
      Operating income (loss)        (1,074,180)          (3,570,789)
      Net earnings (loss) after tax  (1,053,563)          (5,455,678)
      Net earnings (loss) per share       (0.04)               (0.18)

Balance Sheet Data
      Total assets                    1,043,030            4,016,882
      Total liabilities               1,476,557            3,135,576
      Stockholders' equity (deficit)   (433,527)             881,306
</TABLE>

<TABLE>
<CAPTION>
                                                 YEAR ENDED
                                                 ----------
                                        10/31/98             10/31/99
-------------------------------------------------------------------------
<S>                               <C>                  <C>
Statement of Operations Data      $                    $
      Net sales                       3,402,681              2,082,515
      Gross profit                    1,182,885                399,610
      Operating income (loss)           112,882             (1,074,180)
      Net earnings (loss) after tax      51,182             (1,053,563)
      Net earnings (loss) per share        5.12                (0.04)


Balance Sheet Data
      Total assets                    1,508,944            1,043,030
      Total liabilities               1,991,007            1,476,557
      Stockholders' equity (deficit)   (482,063)            (433,527)
</TABLE>


                                       21
<PAGE>   22
                             RESULTS OF OPERATIONS.

      Fiscal year ended October 31, 2000 compared to fiscal year ended October
31, 1999.

      Revenues. Sales increased by approximately 99% to $4,144,822 in the fiscal
year ended October 2000 from $2,082,515 in the fiscal year ended October 1999.
The increase was mainly a result of marketing a new line of products and
distributing third-party software.

      Cost of Sales. The cost of sales of $3,303,722 in the fiscal year ended
October 2000 rose from $1,682,905 in the fiscal year ended October 1999, or
approximately a 96% increase. This rise reflects a coinciding increase in the
sale of products resulting in the purchase of more hardware from INVNSYS'
overseas suppliers.

      Gross Profit. Gross profit increased by approximately 110% to $841,100 in
the fiscal year ended October 2000 from $399,610 in the fiscal year ended
October 1999. The significant increase resulted primarily from the increase in
revenues coupled with the cost of sales that did not increase in direct
proportion to the increase in revenues.

      Selling, General and Administrative Expenses. Selling, general and
administrative expenses increased approximately 199% to $4,411,889 in the fiscal
year ended October 2000 from $1,473,790 for the fiscal year ended October 1999.
The increase was primarily due to costs of developing new lines of business
(principally DSL and co-location services) and fees paid in connection with
financing activities.

      Interest Expense. Interest expense of $58,085 for the fiscal year ended
October 1999 and of $101,563 for the fiscal year ended October 2000 was accrued
on notes payable to Community First National Bank primarily extended for working
capital purposes and on convertible debentures issued to various investors as
described herein.

      Interest Expense -- Convertible Debenture - Beneficial Conversion Feature.
The Company has issued convertible debt securities with a non-detachable
conversion feature that was "in-the-money" at the date of issue. The Company
accounts for such securities in accordance with Emerging Issues Task Force Topic
D-60. The Company has recorded the fair value of the beneficial conversion
feature as interest expense and an increase to Paid-in Capital in Excess of Par
Value of Stock. Interest expense of $1,860,454 for the fiscal year ended October
2000 was incurred under the Company's convertible debenture-beneficial
conversion feature.

      Net Loss. Net loss increased to $5,455,678 for the fiscal year ended
October 2000 from a net loss of $1,053,563 for the fiscal year ended October
1999. The loss resulted from the significant increase in the selling, general
and administrative expenses and the imposition of interest expenses for the
Company's convertible debenture-beneficial conversion feature.




                                       22
<PAGE>   23
      Fiscal year ended October 31, 1999 compared to fiscal year ended October
31, 1998.

      Revenues. Sales decreased by approximately 39% from $3,402,681 in the
fiscal year ended October 1998 to $2,082,515 in the fiscal year ended October
1999. The decrease was mainly as a result of the focus by management on raising
financing for iBIZ and a transition to a new line of products. INVNSYS
experiences short product life cycles and the declining revenues reflect
declining sales volumes for existing products which were not replaced by any
significant sales of new products, and which management estimates did not exceed
$10,000.

      Cost of Sales. The cost of sales of $2,219,796 in the fiscal year ended
October 1998 declined to $1,682,905 in the fiscal year ended October 1999, or an
approximate 24% decrease. This decline reflects a coinciding decrease in the
sale of products resulting in the purchase of less hardware from INVNSYS'
overseas suppliers.

      Gross Profit. Gross profit decreased by approximately 66% from $1,182,885
in the fiscal year ended October 1998 to $399,610 in the fiscal year ended
October 1999. The significant decrease resulted primarily from the decrease in
revenues coupled with the cost of sales that did not decrease in direct
proportion to the decrease in revenues. Gross profits also decreased as a result
of selling more products to retailers at lower prices and a decline in
maintenance service income, both of which reflected greater competitiveness in
the product sector.

      Selling, General and Administrative Expenses. Selling, general and
administrative expenses increased approximately 38% from $1,070,003 in the
fiscal year ended October 1998 to $1,473,790 for the fiscal year ended October
1999. The increase was primarily due to costs of consulting paid in connection
with the acquisition, legal and accounting fees associated with the acquisition
and an increase in the salaries of INVNSYS' key employees.

      Interest Expense. Interest expense of $58,085 for the fiscal year ended
October 1999 and of $75,282 for the fiscal year ended October 1998 was accrued
on notes payable to Community First National Bank primarily extended for working
capital purposes. The decline in interest expense resulted from repayment of
most of the principal of the notes in June, 1999.

      Net Earnings. Net earnings decreased from $51,182 for the fiscal year
ended October 1998 to a loss of $1,053,563 for the fiscal year ended October
1999. The loss resulted from an increase in the selling, general and
administrative expenses, a cost of sales decrease that was not in proportion to
the significant decrease in revenues, and a substantial decrease in revenues for
the fiscal year ended October 1999.



                                       23
<PAGE>   24
                        LIQUIDITY AND CAPITAL RESOURCES

      The Company has spent substantial funds on construction and installation
of its co-location facility and expansion of its sales and marketing efforts. As
a result, the Company has needed capital to maintain the business as a going
concern.

      Since December 1, 1999, the Company has raised approximately $5,900,000
through the sale of convertible debentures, convertible notes, common stock and
warrants to various individuals. The Company relied upon either Section 4(2) or
Regulation D, Rule 506 promulgated under the Securities Act of 1933 with respect
to these sales of common stock. The Company currently has commitments for an
additional $2,900,000, subject to meeting certain representations, warranties,
covenants, and conditions.

      In September, Globe United Holdings, Inc. ("Globe"), converted debentures
totaling $350,000 and received 1,163,432 shares of common stock and Lites
Trading, Inc. ("Lites"), converted debentures totaling $672,672 and received
2,172,247 shares of common stock, including stock paid for interest due. As of
December 29, 2000, Lites had an aggregate of $750,000 in principal amount of
debentures outstanding due and payable on March 27, 2005.

      From October to December 2000, the Company raised $2.1 million dollars by
issuing 8% convertible debentures. The debentures are due and payable on October
30, 2002, and December 18, 2002, unless converted into common stock of the
Company prior to that time. Management anticipates exercising its rights to
obtain an additional $900,000 before April 2001, but there is no assurance that
it will meet the conditions necessary to do so. In December 2000, two parties
converted their 8% convertible debentures totalling $27,000 and received 144,742
shares of common stock, including stock paid for interest due.

      Future minimum lease payments on the Company's facility (excluding taxes
and expenses) are as follows:

<TABLE>
<S>                                    <C>
                    October 31, 2001     $161,280
                    October 31, 2002      169,344
                    October 31, 2003      177,816
                    October 31, 2004      186,708
November 1, 2004 - December 31, 2024    6,482,145
--------------------------------------------------
                               TOTAL   $7,177,263
--------------------------------------------------
</TABLE>

      Rent expense for the years ended October 31, 2000 and 1999 was $160,311
and $86,959, respectively. The Company charged $764,595 and $15,492 to
operations for advertising costs for the years ended October 31, 2000 and 1999,
respectively.

      The note payable to Community First National Bank demands monthly payments
of principal and interest of $545 with interest at 7% until March 7, 2004.

      The Company believes that the amounts committed (assuming the Company
meets the representations, warranties, covenants, and conditions to receive
those amounts) should be sufficient to finance the Company's business plans
through the Company's fiscal year ended October 31, 2001. Management believes
that its co-location facility needs to begin generating more than nominal
revenue in order to finance the demand for its products.


                                       24
<PAGE>   25
                          ITEM 7. FINANCIAL STATEMENTS.












                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY

                        CONSOLIDATED FINANCIAL STATEMENTS

                            OCTOBER 31, 2000 AND 1999
<PAGE>   26
                                TABLE OF CONTENTS



                                                                       PAGE NO.
                                                                       --------

INDEPENDENT AUDITORS' REPORT.......................................        1

FINANCIAL STATEMENTS

       Consolidated Balance Sheets.................................        2

       Consolidated Statements of Operations.......................        3

       Consolidated Statements of Stockholders' Equity.............      4 - 7

       Consolidated Statements of Cash Flows.......................      8 - 9

       Notes to Consolidated Financial Statements..................     10 - 26
<PAGE>   27
                          INDEPENDENT AUDITORS' REPORT




To The Board of Directors and Stockholders
IBIZ Technology Corp. and Subsidiary
Phoenix, Arizona

We have audited the accompanying consolidated balance sheets of IBIZ Technology
Corp. and Subsidiary as of October 31, 2000 and 1999 and the related
consolidated statements of operations, stockholders' equity, and cash flows for
the years then ended. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on the
financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of IBIZ Technology Corp. and
Subsidiary as of October 31, 2000 and 1999, and the results of their operations
and their cash flows for the years then ended, in conformity with accounting
principles generally accepted in the United States of America.




MOFFITT & COMPANY, P.C.
SCOTTSDALE, ARIZONA


December 30, 2000
<PAGE>   28
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                            OCTOBER 31, 2000 AND 1999




                                     ASSETS


<TABLE>
<CAPTION>
                                                                            2000                          1999
                                                                         ----------                    ----------

<S>                                                                      <C>                           <C>
CURRENT ASSETS
       Cash and cash equivalents                                         $  631,375                    $   25,343
       Accounts receivable                                                  432,113                       212,300
       Inventories                                                          439,582                       268,087
       Prepaid expenses                                                     104,874                        38,984
                                                                         ----------                    ----------



              TOTAL CURRENT ASSETS                                        1,607,944                       544,714
                                                                         ----------                    ----------






PROPERTY AND EQUIPMENT, NET OF
   ACCUMULATED DEPRECIATION                                               1,948,715                       124,747
                                                                         ----------                    ----------






OTHER ASSETS
       Notes receivable, officers                                           391,332                       356,810
       Customer list, net of accumulated amortization                         7,932                             0
       Deposits                                                              60,959                        16,759
                                                                         ----------                    ----------

              TOTAL OTHER ASSETS                                            460,223                       373,569
                                                                         ----------                    ----------





              TOTAL ASSETS                                               $4,016,882                    $1,043,030
                                                                         ==========                    ==========
</TABLE>
<PAGE>   29
                      LIABILITIES AND STOCKHOLDERS' EQUITY


<TABLE>
<CAPTION>
                                                                              2000                            1999
                                                                          -----------                     -----------
<S>                                                                       <C>                             <C>
CURRENT LIABILITIES
       Accounts payable                                                   $   973,894                     $   762,965
       Accrued liabilities
        Payroll                                                                96,283                          31,295
        Other                                                                 101,736                         106,904
       Customer deposits                                                            0                         115,408
       Sales and payroll taxes payable                                         89,023                          98,774
       Corporation income taxes payable                                        19,028                          19,078
       Deferred income                                                         85,798                          54,962
       Convertible debentures payable                                               0                         200,000
       Notes payable, current portion                                           5,335                          67,497
                                                                          -----------                     -----------

              TOTAL CURRENT LIABILITIES                                     1,371,097                       1,456,883
                                                                          -----------                     -----------

LONG - TERM LIABILITIES
       Convertible debentures payable                                       1,750,000                               0
       Notes payable                                                           14,479                          19,674
                                                                          -----------                     -----------

              TOTAL LONG - TERM LIABILITIES                                 1,764,479                          19,674
                                                                          -----------                     -----------

STOCKHOLDERS' EQUITY
       Common stock
          Authorized - 100,000,000 shares, par
            value $.001 per shares
          Issued and outstanding
             October 31, 1999 - 26,370,418 shares                                   0                          26,370
             October 31, 2000 - 37,812,425 shares                              37,813                               0
       Paid in capital in excess of par value of stock                      7,940,384                       1,106,266
       Advance on stock subscription                                                0                          75,000
       Retained earnings                                                   (7,096,891)                     (1,641,163)
                                                                          -----------                     -----------

              TOTAL STOCKHOLDERS' EQUITY                                      881,306                        (433,527)
                                                                          -----------                     -----------

              TOTAL LIABILITIES AND
                 STOCKHOLDERS' EQUITY                                     $ 4,016,882                     $ 1,043,030
                                                                          ===========                     ===========
</TABLE>


            See Accompanying Notes and Independent Auditors' Report.

                                        2
<PAGE>   30
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                  FOR THE YEARS ENDED OCTOBER 31, 2000 AND 1999




<TABLE>
<CAPTION>
                                                                                   2000                              1999
                                                                               ------------                     ------------

<S>                                                                            <C>                              <C>
SALES                                                                          $  4,144,822                     $  2,082,515

COST OF SALES                                                                     3,303,722                        1,682,905
                                                                               ------------                     ------------

       GROSS PROFIT                                                                 841,100                          399,610

SELLING, GENERAL AND ADMINISTRATIVE
   EXPENSES                                                                       4,411,889                        1,473,790
                                                                               ------------                     ------------

(LOSS) BEFORE OTHER INCOME (EXPENSE)                                             (3,570,789)                      (1,074,180)
                                                                               ------------                     ------------

OTHER INCOME (EXPENSE)
       Cancellation of debt                                                          39,950                          154,933
       Other income                                                                       0                           32,339
       Interest income                                                               37,178                           28,260
       Interest expense                                                            (101,563)                         (58,085)
       Interest expense - convertible debentures-beneficial
        conversion feature                                                       (1,860,454)                               0
                                                                               ------------                     ------------

        TOTAL OTHER INCOME (EXPENSE)                                             (1,884,889)                         157,447
                                                                               ------------                     ------------

(LOSS) BEFORE INCOME TAXES                                                       (5,455,678)                        (916,733)

INCOME TAXES                                                                             50                          136,830
                                                                               ------------                     ------------

NET (LOSS)                                                                     $ (5,455,728)                    $ (1,053,563)
                                                                               ============                     ============



NET (LOSS) PER COMMON SHARE

       Basic and Diluted                                                       $      ( .18)                    $       (.04)
                                                                               ============                     ============

WEIGHTED AVERAGE NUMBER OF COMMON
   SHARES OUTSTANDING                                                            30,425,004                       25,116,013
                                                                               ============                     ============
</TABLE>

            See Accompanying Notes and Independent Auditors' Report.

                                        3

<PAGE>   31
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
                             CONSOLIDATED STATEMENTS
                             OF STOCKHOLDERS' EQUITY
                  FOR THE YEARS ENDED OCTOBER 31, 2000 AND 1999

<TABLE>
<CAPTION>
                                                              COMMON STOCK
                                                              ------------
                                                        SHARES            AMOUNT
                                                        ------            ------
<S>                                                  <C>                <C>
BALANCE, NOVEMBER 1, 1998                              8,000,000        $    8,000

ISSUANCE OF COMMON STOCK FOR ACQUISITION
   OF INVNSYS TECHNOLOGY CORPORATION AND
   TRANSFER OF NET ASSETS AT BOOK VALUE
   PER REVERSE ACQUISITION                            16,000,000            16,000

ISSUANCE OF COMMON STOCK FOR CASH
   AT .35(CENT)PER SHARE                                 640,318               640
   AT .50(CENT)PER SHARE                               1,730,100             1,730

FEES AND COSTS FOR ISSUANCE OF STOCK                           0                 0

ADVANCES ON STOCK SUBSCRIPTION                                 0                 0

NET (LOSS) FOR THE YEAR ENDED OCTOBER 31, 1999                 0                 0
                                                      ----------        ----------

BALANCE, OCTOBER 31, 1999                             26,370,418            26,370

NOVEMBER, 1999 - CONVERSION OF DEBENTURES
   FOR COMMON STOCK                                      300,962               301

NOVEMBER, 1999 - ISSUANCE OF COMMON STOCK
   FOR CASH                                              100,000               100

JANUARY, 2000 - ISSUANCE OF COMMON STOCK
   FOR CASH                                              250,000               250

NOVEMBER, 1999 TO JANUARY, 2000 - FEES AND
   COSTS FOR ISSUANCE OF STOCK                                 0                 0

FEBRUARY, 2000 - ISSUANCE OF COMMON STOCK
   FOR ADVANCES ON STOCK SUBSCRIPTIONS                   100,000               100

FEBRUARY, 2000 - CONVERSION OF DEBENTURES
   FOR COMMON STOCK                                      300,000               300

MARCH, 2000 - CONVERSION OF DEBENTURES FOR
   COMMON STOCK                                        1,292,482             1,293

APRIL, 2000 - CONVERSION OF DEBENTURES FOR
   COMMON STOCK                                           88,938                89

APRIL, 2000 - ISSUANCE OF COMMON STOCK FOR
   CASH FROM WARRANTS                                    420,000               420

APRIL, 2000 - ISSUANCE OF COMMON STOCK FOR
   CASH FROM STOCK OPTIONS                                70,000                70

APRIL, 2000 - ISSUANCE OF COMMON STOCK FOR
   ACCOUNT PAYABLE                                       100,000               100
</TABLE>

            See Accompanying Notes and Independent Auditors' Report.

                                       4
<PAGE>   32
<TABLE>
<CAPTION>
   PAID IN
 CAPITAL IN
  EXCESS OF           ADVANCES
  PAR VALUE           ON STOCK            RETAINED
  OF STOCK          SUBSCRIPTIONS         EARNINGS
  --------          -------------         --------
<S>                 <C>                 <C>
$   145,282         $   154,111         $   (74,266)

          0                   0            (513,334)

    223,471                   0                   0
    863,320            (154,111)                  0

   (125,807)                  0                   0

          0              75,000                   0

          0                   0          (1,053,563)
-----------         -----------         -----------

  1,106,266              75,000          (1,641,163)

    200,734                   0                   0

     49,900                   0                   0

    274,750                   0                   0

   (188,000)                  0                   0

     74,900             (75,000)                  0

    199,700                   0                   0

  1,039,585                   0                   0

     59,944                   0                   0

    314,580                   0                   0

     52,430                   0                   0

     49,900                   0                   0
</TABLE>

            See Accompanying Notes and Independent Auditors' Report.

                                       5
<PAGE>   33
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
                             CONSOLIDATED STATEMENTS
                       OF STOCKHOLDERS' EQUITY(CONTINUED)
                  FOR THE YEARS ENDED OCTOBER 31, 2000 AND 1999

<TABLE>
<CAPTION>
                                                               COMMON STOCK
                                                               ------------
                                                          SHARES           AMOUNT
                                                          ------           ------
<S>                                                    <C>               <C>
APRIL, 2000 - ISSUANCE OF COMMON STOCK FOR
   SERVICES                                               250,000        $      250

APRIL, 2000 - ISSUANCE OF COMMON STOCK FOR
   PAYROLL BONUSES                                         50,000                50

APRIL, 2000 - ISSUANCE OF COMMON STOCK FOR
   FEES AND COSTS FOR ISSUANCE OF COMMON STOCK            407,375               407

FEBRUARY, 2000 TO APRIL, 2000 - FEES AND COSTS
   FOR ISSUANCE OF STOCK                                        0                 0

JUNE, 2000 - ISSUANCE OF COMMON STOCK FOR
   SERVICES                                               150,000               150

JUNE, 2000 - ISSUANCE OF COMMON STOCK FOR
   SERVICES                                               362,653               363

JULY, 2000 - ISSUANCE OF COMMON STOCK FOR
   SERVICES                                               480,000               480

SEPTEMBER 2000 - ISSUANCE OF COMMON STOCK
   FOR CASH FOR EMPLOYEE STOCK OPTIONS                     20,000                20

SEPTEMBER 2000 - CONVERSION OF DEBENTURES
   FOR COMMON STOCK                                     3,335,679             3,336

SEPTEMBER, 2000 - ISSUANCE OF COMMON STOCK
   FOR CASH FOR WARRANTS                                  100,000               100

SEPTEMBER 2000 - ISSUANCE OF COMMON STOCK
   FOR CASH                                             3,040,918             3,041

OCTOBER, 2000 - ISSUANCE OF COMMON STOCK
   FOR CASH                                               223,000               223

MAY, 2000 TO OCTOBER, 2000 - FEES AND COSTS FOR
   ISSUANCE OF COMMON STOCK                                     0                 0

INTEREST EXPENSE - CONVERTIBLE DEBENTURES-
   BENEFICIAL CONVERSION FEATURE                                0                 0

NET (LOSS) FOR THE YEAR ENDED OCTOBER 31, 2000                  0                 0
                                                       ----------        ----------

BALANCE, OCTOBER 31, 2000                              37,812,425        $   37,813
                                                       ==========        ==========
</TABLE>

            See Accompanying Notes and Independent Auditors' Report.

                                       6
<PAGE>   34
<TABLE>
<CAPTION>
  PAID IN
 CAPITAL IN
 EXCESS OF             ADVANCES
 PAR VALUE             ON STOCK         RETAINED
 OF STOCK           SUBSCRIPTIONS       EARNINGS
<S>                 <C>                <C>
$   210,500         $         0        $         0

     50,450                   0                  0

    483,147                   0                  0

   (668,987)                  0                  0

    131,100                   0                  0

    226,295                   0                  0

    383,520                   0                  0

     14,980                   0                  0

  1,029,612                   0                  0

     74,900                   0                  0

  1,049,911                   0                  0

    100,127                   0                  0

   (240,314)                  0                  0

  1,860,454                   0                  0

          0                   0         (5,455,728)
-----------         -----------        -----------

$ 7,940,384         $         0        $(7,096,891)
===========         ===========        ===========
</TABLE>

            See Accompanying Notes and Independent Auditors' Report.

                                       7
<PAGE>   35
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                  FOR THE YEARS ENDED OCTOBER 31, 2000 AND 1999

<TABLE>
<CAPTION>
                                                                           2000                1999
                                                                           ----                ----
<S>                                                                    <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
       Net (loss)                                                      $(5,455,728)        $(1,053,563)
       Adjustments to reconcile net (loss) to
         net cash (used) by operating activities
           Depreciation and amortization                                    73,357              42,104
           Loss on disposition of property and equipment                    21,081                   0
           Interest expense - convertible debentures-beneficial
             conversion feature                                          1,860,454                   0
       Changes in operating assets and liabilities
           Accounts receivable                                            (219,813)            (58,764)
           Other receivables                                                     0               1,500
           Inventories                                                    (171,495)             55,310
           Prepaid expenses                                                (65,890)            (11,984)
           Deferred tax assets                                                   0             145,054
           Accounts payable                                                222,706             (26,898)
           Accrued liabilities and taxes                                   128,242             (80,443)
           Customer deposits                                              (115,408)           (279,856)
           Deferred income                                                  30,836             (16,069)
           Changes in deposits                                             (44,200)              3,396
                                                                       -----------         -----------

              NET CASH (USED) BY OPERATING
                ACTIVITIES                                              (3,735,858)         (1,280,213)
                                                                       -----------         -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
       Purchases of property and equipment                              (1,918,232)            (90,315)
       Purchase of customer list                                           (11,900)                  0
                                                                       -----------         -----------

              NET CASH (USED) BY INVESTING
                ACTIVITIES                                              (1,930,132)            (90,315)
                                                                       -----------         -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
       Bank overdraft                                                            0             (13,700)
       Net proceeds from issuance of common stock                        2,173,901             806,873
       Advances on stock subscriptions                                           0              75,000
       Proceeds from issuance of convertible debentures payable          4,200,000             200,000
       Repayment of notes payable                                          (67,357)           (306,532)
       Increase in notes receivable, officers                              (34,522)            634,030
                                                                       -----------         -----------

              NET CASH PROVIDED BY FINANCING
                ACTIVITIES                                             $ 6,272,022         $ 1,395,671
                                                                       -----------         -----------
</TABLE>

            See Accompanying Notes and Independent Auditors' Report.

                                       8
<PAGE>   36
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
                  FOR THE YEARS ENDED OCTOBER 31, 2000 AND 1999


<TABLE>
<CAPTION>
                                                                      2000              1999
                                                                      ----              ----
<S>                                                                <C>               <C>
NET INCREASE IN CASH AND CASH EQUIVALENTS                          $  606,032        $   25,143

CASH AND CASH EQUIVALENTS, AT
   BEGINNING OF YEAR                                                   25,343               200
                                                                   ----------        ----------

CASH AND CASH EQUIVALENTS, AT
   END OF YEAR                                                     $  631,375        $   25,343
                                                                   ==========        ==========




SUPPLEMENTAL DISCLOSURE OF CASH
   FLOW INFORMATION

       Cash paid during year:

          Interest                                                 $   83,801        $   56,766
                                                                   ==========        ==========

          Taxes                                                    $       50        $       50
                                                                   ==========        ==========

NON CASH INVESTING AND FINANCING
   ACTIVITIES

       Issuance of common stock for investment in Invnsys
         Technology Corporation                                    $        0        $   16,000
                                                                   ==========        ==========

       Issuance of common stock for convertible debentures         $2,333,859        $        0
                                                                   ==========        ==========

       Issuance of common stock for fees, services and
         payroll                                                   $1,486,312        $        0
                                                                   ==========        ==========

       Issuance of common stock for advances on stock
         subscriptions                                             $   75,000        $        0
                                                                   ==========        ==========

       Issuance of common stock for accounts payable               $   50,000        $        0
                                                                   ==========        ==========

       Interest expense - convertible debentures-beneficial
          conversion feature                                       $1,860,454        $        0
                                                                   ==========        ==========
</TABLE>

            See Accompanying Notes and Independent Auditors' Report.

                                       9
<PAGE>   37
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                            OCTOBER 31, 2000 AND 1999


NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         NATURE OF BUSINESS

         IBIZ Technology Corp. (hereinafter referred to as the Company) was
         organized on April 6, 1994, under the laws of the State of Florida. In
         January, 1999, the Company acquired Invnsys Technology Corporation, an
         Arizona corporation. Per the acquisition agreement, the Company issued
         16,000,000 shares of newly issued restricted common stock for 100% of
         the issued and outstanding stock of Invnsys Technology Corporation.
         IBIZ Technology Corp. operates as a holding company for subsidiary
         acquisitions.

         Invnsys Technology Corporation (hereinafter referred to as Invnsys) is
         in the business of designing, manufacturing and distributing desktop
         computers, monitors, transactional printers, financial application
         keyboards, numeric keypads and related products. Invnsys also provides
         network integration services, digital subscriber line high speed
         internet connection services, business-to-business sale of software
         and a co-location computer data and server facility. Invnsys Technology
         Corporation also provides repair services and sells maintenance
         contracts. The corporation operates a service center in Phoenix,
         Arizona.

         PRINCIPLES OF CONSOLIDATION

         The consolidated financial statements include the accounts of IBIZ
         Technology Corp. and its wholly owned subsidiary, Invnsys Technology
         Corporation.

         All material inter-company accounts and transactions have been
         eliminated.

         CASH AND CASH EQUIVALENTS

         For purposes of the statement of cash flows, the Company considers all
         highly liquid debt instruments purchased with an original maturity of
         three months or less to be cash equivalents.

         INVENTORIES

         Inventories are stated at the lower of cost (determined principally by
         average cost) or market.

         PROPERTY AND EQUIPMENT

         Property and equipment are stated at cost. Major renewals and
         improvements are charged to the asset accounts while replacement,
         maintenance and repairs, which do not improve or extend the lives of
         the respective assets, are expensed. At the time property and equipment
         are retired or otherwise disposed of, the asset and related accumulated
         depreciation accounts are relieved of the applicable amounts. Gains or
         losses from retirements or sales are credited or charged to income.

                                       10
<PAGE>   38
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999



NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         PROPERTY AND EQUIPMENT (CONTINUED)

         Invnsys depreciates its property and equipment for financial reporting
         purposes using the straight-line method based upon the following useful
         lives of the assets:

<TABLE>
<S>                                                        <C>
                  Tooling                                     3 Years
                  Machinery and equipment                  5-10 Years
                  Office furniture and equipment           5-10 Years
                  Vehicles                                    5 Years
                  Leasehold improvements                      5 Years
                  Computer software                         3-5 Years
                  Co-location equipment                    5-25 Years
</TABLE>

         ACCOUNTING FOR CONVERTIBLE DEBT SECURITIES

         The Company has issued convertible debt securities with a
         non-detachable conversion feature that was "in the money" at the date
         of issue. The Company accounts for such securities in accordance with
         Emerging Issues Task Force Topic D-60. The Company has recorded the
         fair value of the beneficial conversion feature as interest expense and
         an increase to Paid in Capital in Excess of Par Value of Stock.

         CUSTOMER LISTS

         The customer list is recorded at cost and is being amortized on a
         straight-line basis over three years.

         ACCOUNTING ESTIMATES

         Management uses estimates and assumptions in preparing financial
         statements in accordance with generally accepted accounting principles.
         Those estimates and assumptions affect the reported amounts of assets
         and liabilities, the disclosure of contingent assets and liabilities,
         and the reported revenues and expenses. Actual results could vary from
         the estimates that were used.

         REVENUE RECOGNITION

         Invnsys recognizes revenue from product sales when the goods are
         shipped and title passes to customers.

         SALES OF MAINTENANCE AGREEMENTS

         The revenue received for the maintenance agreements is being recognized
         on a straight-line basis over the life of the contracts. The unearned
         portion is recorded as deferred income.

                                       11
<PAGE>   39
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         INCOME TAXES

         Provisions for income taxes are based on taxes payable or refundable
         for the current year and deferred taxes on temporary differences
         between the amount of taxable income and pretax financial income and
         between the tax basis of assets and liabilities and their reported
         amounts in the financial statements. Deferred tax assets and
         liabilities are included in the financial statements at currently
         enacted income tax rates applicable to the period in which the deferred
         tax assets and liabilities are expected to be realized or settled as
         prescribed in FASB Statement No. 109, Accounting for Income Taxes. As
         changes in tax laws or rates are enacted, deferred tax assets and
         liabilities are adjusted through the provision for income taxes.

         NET (LOSS) PER SHARE

         The Company adopted Statement of Financial Accounting Standards No. 128
         that requires the reporting of both basic and diluted (loss) per share.
         Basic (loss) per share is computed by dividing net (loss) available to
         common stockholders by the weighted average number of common shares
         outstanding for the period. Diluted (loss) per share reflects the
         potential dilution that could occur if securities or other contracts to
         issue common stock were exercised or converted into common stock. In
         accordance with FASB 128, any anti-dilutive effects on net (loss) per
         share are excluded.

         RISKS AND UNCERTAINTIES

         The Company is in the computer and computer technology industry. The
         Company's products are subject to rapid obsolescence and management
         must authorize funds for research and development costs in order to
         stay competitive.

NOTE 2   DISCLOSURE ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

         The Company has financial instruments, none of which are held for
         trading purposes. The Company estimates that the fair value of all
         financial instruments at October 31, 2000 and 1999, as defined in FASB
         107, does not differ materially from the aggregate carrying values of
         its financial instruments recorded in the accompanying balance sheets.
         The estimated fair value amounts have been determined by the Company
         using available market information and appropriate valuation
         methodologies. Considerable judgement is required in interpreting
         market data to develop the estimates of fair value, and accordingly,
         the estimates are not necessarily indicative of the amounts that the
         Company could realize in a current market exchange.

                                       12
<PAGE>   40
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 3   ACCOUNTS RECEIVABLE

         A summary of accounts receivable and allowance for doubtful accounts is
         as follows:

<TABLE>
<CAPTION>
                                               2000             1999
                                               ----             ----
<S>                                         <C>               <C>

Accounts receivable                         $ 457,113         $ 214,800

Allowance for doubtful accounts                25,000             2,500
                                            ---------         ---------

       Net accounts receivable              $ 432,113         $ 212,300
                                            =========         =========

Allowance for doubtful accounts

       Balance, beginning of year           $   2,500         $   2,500

       Additions for the year                  97,500                 0

       Write-off of uncollectible accounts
          for the year                        (75,000)                0
                                            ---------         ---------

            Balance, end of year            $  25,000         $   2,500
                                            =========         =========
</TABLE>

NOTE 4   INVENTORIES

         The inventories are comprised of the following:

<TABLE>
<CAPTION>
                                        2000            1999
                                        ----            ----
<S>                                   <C>             <C>
Finished products                     $391,479        $217,236
Demonstration and loaner units           4,070           5,731
Depot units                                  0          20,089
Office                                  44,033          24,712
Parts                                        0             319
                                      --------        --------

                                      $439,582        $268,087
                                      ========        ========
</TABLE>

NOTE 5   PROPERTY AND EQUIPMENT

         Property and equipment and accumulated depreciation consists of:

<TABLE>
<CAPTION>
                                         2000              1999
                                         ----              ----
<S>                                   <C>               <C>
Co-location equipment                 $1,719,479        $        0
Tooling                                   68,100            68,100
Machinery and equipment                   49,404            39,032
Office furniture and equipment           123,308           105,627
</TABLE>

            See Accompanying Notes and Independent Auditors' Report.


                                       13
<PAGE>   41
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 5   PROPERTY AND EQUIPMENT (CONTINUED)

<TABLE>
<CAPTION>
                                            2000              1999
                                         ----------        ----------
<S>                                      <C>               <C>
Vehicles                                     39,141            39,141
Leasehold improvements                       23,179            17,031
Software                                     96,858                 0
                                         ----------        ----------
                                          2,119,469           268,931

Less accumulated depreciation               170,754           144,184
                                         ----------        ----------

     Total property and equipment        $1,948,715        $  124,747
                                         ==========        ==========
</TABLE>

         Depreciation expense for the years ended October, 2000 and 1999
         was $69,389 and $42,104, respectively.

NOTE 6   NOTES RECEIVABLE, OFFICERS

<TABLE>
<CAPTION>
                                                                         2000            1999
                                                                         ----            ----
<S>                                                                    <C>             <C>
IBIZ Technology Corp.

      Notes to two corporation officers.
      The notes are unsecured, bear interest at
      6% and are due on January 7, 2002.                               $ 12,079        $      0

Invnsys Technology Corporation

      The related note is secured by 2,000,000 shares of common
      stock in the Company, payable on demand and accrues
      interest at 6%. Management believes the notes will not
      be collected within the current operating cycle and
      classified the asset as a long-term asset.                        379,253         356,810
                                                                       --------        --------
           Total notes receivable                                      $391,332        $356,810
                                                                       ========        ========
</TABLE>

            See Accompanying Notes and Independent Auditors' Report.

                                       14
<PAGE>   42
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 7   CUSTOMER LIST

         The customer list and accumulated amortization consists of:

<TABLE>
<CAPTION>
                                        2000            1999
                                        ----            ----
<S>                                  <C>              <C>
Cost                                 $ 11,900         $      0

Less accumulated amortization          (3,968)               0
                                     --------         --------

Net customer list                    $  7,932         $      0
                                     ========         ========
</TABLE>

         The amortization expense for the year ended October 31, 2000 and 1999
         was $3,968 and $0, respectively.

NOTE 8   CUSTOMER DEPOSITS

         It is Invnsys' policy to obtain a portion of the sales price
         when orders are received. These funds are recorded as customer
         deposits and are applied to the customer invoices when the
         merchandise is shipped.

NOTE 9   INCOME TAXES

<TABLE>
<CAPTION>
                                                                          2000                1999
                                                                          ----                ----
<S>                                                                    <C>                 <C>
(Loss) from continuing operations
  before income taxes                                                  $(3,595,274)        $  (916,733)
                                                                       -----------         -----------

The provision for income taxes is estimated as follows:
      Currently payable                                                $        50         $         0
                                                                       -----------         -----------
      Deferred                                                         $         0         $   136,830
                                                                       -----------         -----------

Significant components of the Company's deferred
    tax assets and liabilities are as follows at October 31:

      Deferred tax assets:
         Net operating loss carryforwards                              $ 1,096,190         $   294,800
         Accrued expenses and miscellaneous                                 23,651              23,414
         Tax credit carryforward                                            38,424              38,424
                                                                       -----------         -----------
                                                                         1,158,265             356,638
             Less valuation allowance                                    1,158,265             356,638
                                                                       -----------         -----------

      Net deferred tax asset                                           $         0         $         0
                                                                       ===========         ===========
</TABLE>

            See Accompanying Notes and Independent Auditors' Report.

                                       15
<PAGE>   43
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 9   INCOME TAXES (CONTINUED)

<TABLE>
<CAPTION>
                                                                      2000              1999
<S>                                                                <C>               <C>
Deferred tax liabilities
   Property and equipment related                                  $        0        $    6,199
                                                                   ==========        ==========

A  reconciliation of the valuation allowance is as follows:

Balance, beginning of year                                         $  356,638        $  291,068
Addition to allowance for the year
   ended October 31, 2000 and 1999                                    801,627            65,570
                                                                   ----------        ----------

Balance, end of year                                               $1,158,265        $  356,638
                                                                   ==========        ==========
</TABLE>

NOTE 10  TAX CARRYFORWARDS

         The Company has the following tax carryforwards at October 31, 2000:

<TABLE>
<CAPTION>
                                                     EXPIRATION
             YEAR                 AMOUNT               DATE
             ----                 ------               ----
<S>                             <C>               <C>
Net operating loss
        October 31, 1995        $    2,500        October 31, 2010
        October 31, 1997           253,686        October 31, 2012
        October 31, 1998            71,681        October 31, 2013
        October 31, 1999           842,906        October 31, 2019
        October 31, 2000         3,575,081        October 31, 2020
                                ----------
                                $4,745,854
                                ==========
     Capital loss
        October 31, 1997            25,600        October 31, 2002

     Contribution
        October 31, 1997               545        October 31, 2002
        October 31, 1999             2,081        October 31, 2004
        October 31, 2000             3,008        October 31, 2005

     Research tax credits           38,424
</TABLE>

NOTE 11         CONVERTIBLE DEBENTURES

<TABLE>
<CAPTION>
                                                  2000            1999
<S>                                             <C>             <C>
SCHIFF, STELZER, BISHINS, AND NISSENBAUM        $      0        $200,000
</TABLE>

         On June 30, 1999, the Company authorized $200,000 of convertible
         debentures. The debentures bear interest at 8%, are unsecured and are
         due on June 21, 2000. The debentures were converted into common stock.

            See Accompanying Notes and Independent Auditors' Report.

                                       16
<PAGE>   44
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 11  CONVERTIBLE DEBENTURES

<TABLE>
<CAPTION>
                                                       2000            1999
<S>                                                  <C>             <C>
LITES TRADING COMPANY - $1,600,000  DEBENTURE        $750,000        $      0
</TABLE>

         On March 27, 2000, the Company issued $1,600,000 of 7% convertible
         debentures under the following terms and conditions:

             1.   Due date - March 27, 2005.

             2.   Interest only on May 1 and December 1 of each year commencing
                  May 1, 2000.

             3.   Default interest rate - 18%.

             4.   Warrants to purchase 375,000 shares of common stock at $1.45
                  per share.

             5.   Conversion terms - The debenture holder shall have the right
                  to convert all or a portion of the outstanding principal
                  amount of this debenture plus any accrued interest into such
                  number of shares of common stock as shall equal the quotient
                  obtained by dividing the principal amount of this debenture by
                  the applicable conversion price.

             6.   Conversion price - Lesser of (i) $1.45 (fixed price) or (ii)
                  the product obtained by multiplying the average closing price
                  by .80.

             7.   Average closing price - The debenture holder shall have the
                  election to choose any three trading days out of twenty
                  trading days immediately preceding the date on which the
                  holder gives the Company a written notice of the holder's
                  election to convert outstanding principal of this debenture.

             8.   Redemption by Company - If there is a change in control of the
                  Company, the holder of the debenture can request that the
                  debenture be redeemed at a price equal to 125% of the
                  aggregate principal and accrued interest outstanding under
                  this debenture.

             9.   The debentures are unsecured.

             10.  Any further issuance of common stock or debentures must be
                  approved by debenture holders.

             11.  Debenture holders have a eighteen month right of first refusal
                  on future disposition of stock by the Company.

             12.  Restriction on payment of dividends, retirement of stock or
                  issuance of new securities.

            See Accompanying Notes and Independent Auditors' Report.

                                       17
<PAGE>   45
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999



NOTE 11         CONVERTIBLE DEBENTURES (CONTINUED)

<TABLE>
<CAPTION>
                                           2000              1999
                                           ----              ----
<S>                                     <C>               <C>
$5,000,000 CONVERTIBLE DEBENTURE        $1,000,000        $        0
</TABLE>

         On October 31, 2000, the Company issued 8% convertible debentures as
         follows:

             1.   Due date - October 30, 2002.

             2.   Interest payable quarterly from January 1, 2001.

             3.   Default interest rate - 20%.

             4.   On the first $ 1,000,000 of financing, the Company issued
                  warrants to purchase 500,000 shares of stock at $ 0.48 per
                  share. The Company reserved an additional 1,240,000 shares for
                  future borrowing on this debenture line.

             5.   Put note purchase price - $4,000,000.

             6.   Fees and costs - 7% - 10% of cash received for debentures and
                  warrants plus legal fees.

             7.   The Company must reserve a number of common shares equal to
                  not less then 200% of the amount of common shares necessary to
                  allow the debenture and warrant holder to be able to convert
                  all such outstanding notes and put notes to common stock.

             8.   Conversion price for put notes. The initial 50% of the put
                  notes shall be the lesser of (i) 80% of the average of the
                  three lowest closing bid prices for the stock for twenty two
                  days or (ii) 80% of the average of the five lowest closing bid
                  prices for the stock for sixty days. The conversion price of
                  the balance of the put notes shall be 86% of the average of
                  the three lowest closing bid prices for ten days.

             9.   The debentures have penalty clauses if the common stock is not
                  issued when required by the debenture holder.

             10.  The debentures are unsecured.

             11.  The Company's right to exercise the put commences on the
                  actual effective date of the SEC Registration Statement and
                  expires three years after the effective date.

             12.  Right of first refusal - The debenture holders have the right
                  to purchase a proportionate amount of new issued shares in
                  order to maintain their ownership interest percentage.

<TABLE>
<S>                                                                                   <C>           <C>
                                                                                      ----------    ---------

                               Total debentures                                       $1,750,000    $ 200,000
                                                                                      ==========    =========
</TABLE>

            See Accompanying Notes and Independent Auditors' Report.

                                       18
<PAGE>   46
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 12  NOTES PAYABLE

<TABLE>
<CAPTION>
                                                                        2000           1999
                                                                        ----           ----
<S>                                                                    <C>            <C>
Note payable to Community First National Bank due in monthly
payments of interest of approximately $3,100. Interest is
computed at national prime as stated in the Wall Street Journal
plus 3 percent. The principal amount is due July 31, 2000. This
note is secured by accounts receivable, general intangibles and
all equipment and leasehold improvements. The principal
shareholder has personally guaranteed the loan and the bank is
the beneficiary of an insurance policy on the life of the
shareholder. Invnsys canceled this line in the year 2000               $     0        $62,426

Note payable to Community First National Bank due in monthly
payments of principal and interest of $545 with interest at 7
percent until March 7, 2004. The note is secured by an
automobile which costs $ 36,000 and has a book value of $ 9,600         19,814         24,745
                                                                       -------        -------

                                                                        19,814         87,171

Less:  current portion                                                   5,335         67,497
                                                                       -------        -------


Net long-term debt                                                     $14,479        $19,674
                                                                       =======        =======

Maturities of long-term debt are as follows:

Year ended October 31

            2000                                                       $     0        $67,497
            2001                                                         5,476          5,336
            2002                                                         5,721          5,721
            2003                                                         6,135          6,135
            2004                                                         2,482          2,482
                                                                       -------        -------

                                                                       $19,814        $87,171
                                                                       =======        =======
</TABLE>

NOTE 13  REAL ESTATE LEASE

         On June 1, 1999, Invnsys leased a new facility from a related entity.
         The lease commenced on July 1, 1999, requires initial annual rentals of
         $153,600 (with annual increases) plus taxes and operating costs and
         expires on December 31, 2024. Invnsys has also guaranteed the mortgage
         on the premises in the amount of $942,381 and given a security interest
         in all of its assets, excluding inventory in the amount of $439,582.

            See Accompanying Notes and Independent Auditors' Report.

                                       19
<PAGE>   47
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 13  REAL ESTATE LEASE (CONTINUED)

         Future minimum lease payments excluding taxes and expenses, are as
         follows:

<TABLE>
<S>                                         <C>
October 31, 2000                            $  153,600
October 31, 2001                               161,280
October 31, 2002                               169,344
October 31, 2003                               177,816
October 31, 2004                               186,708
November 1, 2004 - December 31, 2024         6,482,145
                                            ----------

Total                                       $7,330,893
                                            ==========
</TABLE>

         Rent expense for the years ended October 31, 2000 and 1999 was $160,311
         and $86,959, respectively.

NOTE 14  ADVERTISING

         All direct advertising costs are expensed as incurred. The Company
         charged to operations $764,595 and $15,492 in advertising costs for the
         years ended October 31, 2000 and 1999, respectively.

NOTE 15  INTEREST

         The Company incurred interest expenses for the years ended October 31,
         2000 and 1999 as follows:

<TABLE>
<CAPTION>
                                                2000              1999
<S>                                          <C>               <C>
For operations                               $  101,563        $   58,085
For convertible debentures-beneficial
    conversion feature                        1,860,454                 0
                                             ----------        ----------

Total                                        $1,962,017        $   58,085
                                             ==========        ==========
</TABLE>

NOTE 16  PRODUCT WARRANTY PROVISION

         Invnsys established a provision for product warranty to cover any
         potential warranty costs on computer equipment that are not covered by
         the computer manufacturer's warranty.

<TABLE>
<CAPTION>
Warranty summary
                                    2000             1999
                                    ----             ----
<S>                               <C>              <C>
Balance, beginning of year        $ 50,000         $ 50,000
Reduction for the year             (30,000)               0
                                  --------         --------

Balance, end of year              $ 20,000         $ 50,000
                                  ========         ========
</TABLE>

            See Accompanying Notes and Independent Auditors' Report.

                                       20
<PAGE>   48
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 17  RESEARCH AND DEVELOPMENT (CONTINUED)

         Invnsys incurred research and development cost for the years ended
         October 31, 2000 and 1999 of $7,942 and $5,014, respectively.

NOTE 18  OFFICERS' COMPENSATION

         At October 31, 2000, officers' compensation was as follows:

<TABLE>
<S>                                           <C>
President and Chief Executive officer         $200,000

Vice President/Chief Financial officer          88,000

Executive Vice President                        88,000

Chief Operating Officer                         96,200
</TABLE>

NOTE 19  ECONOMIC DEPENDENCY

         Invnsys purchases the majority of its computer equipment from three
         suppliers and purchased 11% of its computer equipment from one
         supplier.


NOTE 20  EMPLOYEE STOCK OPTIONS

         On January 31, 1999, the corporation adopted a stock option plan for
         the purpose of providing an incentive based form of compensation to the
         officers, directors, key employees and service providers of the
         Company.

         The stock subject to the plan and issuable upon exercise of options
         granted under the plan are shares of the corporation's common stock,
         $.001 par value, which may be either unissued or treasury shares. The
         aggregate number of shares of common stock covered by the plan and
         issuable upon exercise of all options granted shall be 5,000,000
         shares, which shares shall be reserved for use upon the exercise of
         options to be granted from time to time.

         The exercise price is the fair market value of the shares (average of
         bid and ask price) at the date of the grant of the options.

         Vesting terms of the options range from immediately to five years.

         The Company has elected to continue to account for stock-based
         compensation under APB Opinion No. 25, under which no compensation
         expense has been recognized for stock options granted to employees at
         fair market value.

            See Accompanying Notes and Independent Auditors' Report.

                                       21
<PAGE>   49
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 20  EMPLOYEE STOCK OPTIONS (CONTINUED)

         A summary of the option activity for the years ended October 31, 2000
         and 1999, pursuant to the terms of the plan is as follows:

<TABLE>
<CAPTION>
                                      2000              1999
                                      ----              ----
<S>                                <C>               <C>
Balance, beginning of year         2,350,000                  0
Granted                            1,655,000          2,350,000
Exercised                            (90,000)                 0
Canceled                            (530,000)                 0
                                  ----------         ----------

Balance, end of year               3,385,000          2,350,000
                                  ==========         ==========
</TABLE>

         2,579,167 shares are exercisable at October 31, 2000.

         Information regarding stock options outstanding as of October 31, 2000
         and 1999 is as follows:

<TABLE>
<S>                                                <C>                  <C>
Price range                                            $0.53 - $2.00                $0.75
Weighted average exercise price                        $0.92                        $0.75
Weighted average remaining contractual life        8 years, 8 months    9 years, 6 months
Options exercised
     Price range                                               $0.75                    0
     Shares                                                   90,000                    0
     Weighted average exercise price                           $0.75                    0
</TABLE>

         The weighted average fair value of options granted in the years ended
         October 31, 2000 and 1999 were estimated as of the date of grant using
         the Black-Scholes stock option pricing model, based on the following
         weighted average assumptions:

<TABLE>
<S>                                     <C>                   <C>
         Dividend yield                            0                 0
         Expected volatility                      50%               30%
         Risk free interest rate        5.13% - 6.65%             6.40%
         Expected life                      10 years          10 years
</TABLE>

         For purposes of pro forma disclosures, the estimated fair value of the
         options is amortized to expense over the options' vesting period. The
         Company's pro forma information follows:

            See Accompanying Notes and Independent Auditors' Report.

                                       22
<PAGE>   50
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 20         EMPLOYEE STOCK OPTIONS (CONTINUED)

<TABLE>
<CAPTION>
                                             2000                  1999
                                             ----                  ----
<S>                                     <C>                   <C>
Net (loss)
      As reported                       $  (5,455,728)        $  (1,053,563)

      Pro forma                         $  (5,814,526)        $  (1,120,811)

(Loss) per share attributable to
   common stock
      As reported                       $        (.18)        $        (.04)

      Pro forma                         $        (.19)        $        (.05)
</TABLE>


NOTE 21  COMMON STOCK PURCHASE WARRANTS

         As of October 31, 2000 the Company has issued the following common
         stock purchase warrants:

<TABLE>

                             NUMBER                           EXERCISE
     DATE                   OF SHARES          TERM            PRICE
     ----                   ---------          ----            -----
<S>                        <C>               <C>             <C>
May 13, 1999                 100,000          3 years        $    1.00
May 7, 1999                   80,000         10 years        $    0.75
May 13, 1999                 100,000         10 years        $    1.00
November  9, 1999            100,000          4 years        $     .94
December 14, 1999             75,000          3 years        $    1.66
December 28, 1999            200,000          4 years        $     .94
January 10, 2000             281,250          5 years        $     .99
March 27, 2000               615,000          5 years        $1.45 - 2.05
May 17, 2000                 125,000          5 years        $1.04 - 5.00
June 16, 2000                150,000           1 year        $1.50 - 2.00
August 30, 2000               34,125          5 years        $    .937
August 30, 2000              250,000          3 years        $     .50
August 30, 2000              250,000          3 years        $     .75
August 30, 2000               36,364          3 years        $    1.00
September 3, 2000            109,000          3 years        $    1.00
September 27, 2000           278,750          3 years        $     .90
October 31, 2000           1,740,000          2 years             105%
                           ---------                          of average
                                                             closing price
                                                               of stock
                           4,524,489
                           =========
</TABLE>

         2,210,375 shares are exercisable at October 31, 2000.

            See Accompanying Notes and Independent Auditors' Report.

                                       23
<PAGE>   51
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 22  COMMON STOCK AVAILABLE FOR ISSUANCE

<TABLE>
<S>                                               <C>
Total share authorized                             100,000,000
Less shares issued and outstanding                 (37,812,425)
                                                  ------------
                                                    62,187,575
Less
       Reserved for employee stock options          (5,000,000)
       Reserved for purchase warrants               (4,524,489)
       Convertible debentures                       (3,480,000)
                                                  ------------

Common stock available for issuance                 49,183,086
                                                  ============
</TABLE>


NOTE 23  FINANCIAL PROJECT MANAGEMENT AGREEMENTS

         In May 2000, the Company entered into a fourteen month agreement with
         Silverman Heller Associates to promote financial and corporate
         communication activities.

                  The project manager will be compensated as follows:

                       1.  A monthly fee of $5,500 beginning on May 17, 2000.

                       2.  In connection with the services the project manager
                           will provide, warrants to purchase 75,000 shares of
                           common stock at the closing price on May 17, 2000 and
                           an additional 50,000 shares at $5.00 per share. These
                           warrants and the shares to be issued upon the
                           exercise of the warrants will vest and be exercisable
                           as of May 17, 2000 and expire five years from the
                           issue date. The warrants will be granted registration
                           rights on the next stock registration within the
                           five-year term.

                       The individuals will be compensated as follows:

                       1.  80,000 shares of common stock valued at $.80 per
                           share on or before June 15, 2000.

                       2.  400,000 shares of common stock valued at $.80 per
                           share on or before June 15, 2000.

NOTE 24  LITIGATION

         Epson America, Inc. vs, Invnsys Technology Corporation. Civil Cause #
         CV 2000-008155 - Superior Court of Arizona.

         Epson America, Inc. is suing the corporation for $114,785 to collect
         past due accounts payable. The corporation is disputing the $114,785 as
         it believes that Epson has not offset the debt by commissions earned
         and due by Invnsys Technology Corporation. Invnsys has accrued $102,619
         in the accounts payable and has presented a counter claim to Epson. The
         outcome of this litigation is not known as of the date of this report.

            See Accompanying Notes and Independent Auditors' Report.

                                       24
<PAGE>   52
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 25  PLAN OF REORGANIZATION AND STOCK EXCHANGE AGREEMENT

         On January 1, 1999, the Company issued 16,000,000 shares of newly
         issued restricted common stock for 100% of the issued and outstanding
         stock of Invnsys Technology Corporation. Invnsys Technology Corporation
         became a wholly-owned subsidiary of IBIZ Technology Corp. and the
         acquisition was accounted for as a reverse acquisition.

         The details of the results of operation (unaudited) for each separate
         company, prior to the date of combination, that are included in the
         current net income are:

<TABLE>
<CAPTION>
                                             INVNSYS            IBIZ
                                           TECHNOLOGY        TECHNOLOGY
                                           CORPORATION          CORP.
<S>                                        <C>               <C>
Sales                                      $ 402,127         $       0
Cost of sales                                239,704                 0
                                           ---------         ---------
      Gross profit                           162,423                 0
Selling, general and administrative
   expenses                                  243,094            27,742
                                           ---------         ---------
(Loss) before income taxes (refund           (80,671)          (27,742)
Income taxes (refund)                        (20,150)                0
                                           ---------         ---------
      Net (loss)                           $ (60,521)        $ (27,742)
                                           =========         =========
</TABLE>

         There were no adjustments in the net assets of the combining companies
         to adopt the same accounting policies.

         Each of the companies had an October 31 fiscal year so no accounting
         adjustments were necessary.

         An (unaudited) reconciliation of revenues and earnings reconciled with
         the amounts shown in the combined financial statements is as follows:

<TABLE>
<S>                                                               <C>
Net (loss) of IBIZ Technology Corp. at December 31, 1998          $ (27,742)
Add Invnsys Technology Corporation (loss)
   for November 1, 1998 to December 31, 1998                        (60,521)
Additional net (loss) from January 1, 1999 to July 31, 1999        (431,732)
                                                                  ---------
Net (loss) for the nine months ended July 31, 1999                $(519,995)
                                                                  =========
</TABLE>

NOTE 26  GOING CONCERN

         On January 10, 2000, management issued the Company's financial
         statements for the year ended October 31, 1999. In those statements,
         management represented that there was substantial doubt as to the
         Company's ability to continue as a going concern.

            See Accompanying Notes and Independent Auditors' Report.

                                       25
<PAGE>   53
                      IBIZ TECHNOLOGY CORP. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                            OCTOBER 31, 2000 AND 1999


NOTE 26  GOING CONCERN (CONTINUED)

         For the year ended October 31, 2000, management accomplished the
         following items which, in their opinion, removes the going concern
         situation:

             1.   Acquired a $5,000,000 line of credit

             2.   Obtained new customers with a large national and/or regional
                  presence.

             3.   Increased its sales force

             4.   Added new product lines such as PDA products and co-location
                  services.

             5.   Increased working capital - working capital at October 31,
                  2000 was $236,847 and a deficit of $912,169 at October 31,
                  1999.


NOTE 27  CASH IN BANK

         The Company has $995,583 deposited in one banking institution. Only
         $200,000 of the balance is insured by the Federal Deposit Insurance
         Corporation.

            See Accompanying Notes and Independent Auditors' Report.

                                       26
<PAGE>   54
         ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
         ACCOUNTING AND FINANCIAL DISCLOSURE.

         Not applicable.

                                    PART III

         Incorporated by reference from the Company's definitive proxy statement
to be filed in accordance with Rule 14a-101, Schedule 14A, under the Securities
Exchange Act of 1934 with the Commission not later than February 28, 2001. If
the definitive proxy is not filed by February 28, 2001, the information called
for in this Part III will be filed as an amendment to this Form 10-KSB, not
later than February 28, 2001.

                   ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K.

<TABLE>
<CAPTION>
  Exhibit No.     DESCRIPTION
  -----------     -----------
<S>               <C>
    2.01(1)       Plan of Reorganization and Stock Exchange Agreement dated
                  January 1, 1999

    3.01(1)       Articles of Incorporation, as amended

    3.02(1)       Bylaws

    10.01(1)      Citrix Business Alliance Membership Agreement dated February
                  10, 1999, between INVNSYS and Citrix Systems, Inc.

    10.02(1)      Client Software License Agreement dated December 30, 1998,
                  between INVNSYS and Citrix Systems, Inc.

    10.03(1)      IBIZ Technology Corporation Distributed Software License
                  Agreement dated June 2, 1999, between iBIZ and Jeremy Radlow

    10.04(1)      3Com Designed for Palm Computing Platform Logo License
                  Agreement, between iBIZ and Palm Computing, Inc.

    10.05(1)      IBIZ Technology Corp. Stock Option Plan dated January 31, 1999

    10.06(1)      Form of Stock Option

    10.07(1)      Lease Agreement dated June 1, 1999, between iBIZ and Lone
                  Cactus Capital Group, L.L.C.

    10.08(1)      Strategic Teaming and Marketing Agreement dated February 18,
                  1999, between iBIZ and Global Telephone Communication, Inc.

    10.09(1)      Form of iBIZ Technology Corp. Common Stock Purchase Warrant

    10.10(1)      Form of iBIZ Technology Corp. Convertible Debenture

    10.11(1)      Employment Agreement dated March 5, 1999, as amended, between
                  iBIZ, INVNSYS and Kenneth Schilling

    10.12(1)      Employment Agreement dated March 5, 1999, as amended, between
                  iBIZ, INVNSYS and Terry Ratliff

    10.13(1)      Employment Agreement dated March 5, 1999, as amended, between
                  iBIZ, INVNSYS and Mark Perkins

    10.14(2)      Securities Purchase Agreement dated November 9, 1999, between
                  iBIZ and Globe United Holdings, Inc.
</TABLE>

                                       27


<PAGE>   55
<TABLE>
<CAPTION>
  Exhibit No.     DESCRIPTION
  -----------     -----------
<S>               <C>
    10.15(2)      7% Convertible Debenture Due November 9, 2004, between iBIZ
                  and Globe United Holdings, Inc.

    10.16(2)      Warrant dated November 9, 1999

    10.17(2)      Registration Rights Agreement dated November 9, 1999, between
                  iBIZ and Globe United Holdings, Inc.

    10.18(3)      Securities Purchase Agreement dated December 29, 1999, between
                  iBIZ and Globe United Holdings, Inc.

    10.19(3)      7% Convertible Debenture Due December 29, 2004, between iBIZ
                  and Globe United Holdings, Inc.

    10.20(3)      Warrant dated December 29, 1999

    10.21(3)      Registration Rights Agreement dated December 29, 1999, between
                  iBIZ and Globe United Holdings, Inc.

    10.22(3)      Subscription Agreement for Common Stock of iBIZ Technology
                  Corp.

    10.23(4)      Master Distribution Agreement dated January 12, 2000, between
                  iBIZ and Harsper Co. Ltd.

    10.24(5)      Letter Agreement dated December 14, 1999, between iBIZ and
                  Josephthal & Co., Inc.

    10.25(5)      Financial Project Management Agreement dated January 20, 2000,
                  between iBIZ and Equinet, Inc.

    10.26(6)      Securities Purchase Agreement dated March 27, 2000, between
                  iBIZ and Lites Trading, Co.

    10.27(6)      7% Convertible Debenture Due March 27, 2000, between iBIZ and
                  Lites Trading, Co.

    10.28(6)      Warrant dated March 27, 2000

    10.29(6)      Registration Rights Agreement dated March 27, 2000, between
                  iBIZ and Lites Trading, Co.

    10.30(6)      Letter Agreement dated March 27, 2000, from Globe United
                  Holdings to iBIZ

    10.31(7)      Financial Consulting Services Agreement dated June 16, 2000
                  with Travis Morgan Securities.

    10.32(7)      Agreement with the Partnership of Sklar and Ruzycki dated July
                  6, 2000.

    10.33(10)     Form of Warrant dated August 30, 2000 (six warrants by and
                  between iBIZ Technology Corp., and various warrant holders)

    10.34(10)     Form of Warrant dated May 17, 2000 (four warrants by and
                  between iBIZ Technology Corp., and various warrant holders)

    10.35(8)      Subscription Agreement for Notes Convertible into Common Stock
                  of iBIZ Technology Corp.

    10.36(8)      Form of 8% Convertible Notes Due Oct. 30, 2002

    10.37(8)      Funds Escrow Agreement

    10.38(8)      Form of Warrant dated Oct. 30, 2000.

    21.01(1)      Subsidiaries of Company

    23.05(10)     Consent of Moffitt & Company

    99.01(9)      Press Release dated January 12, 2001
</TABLE>

                                       28

<PAGE>   56
(1)      Incorporated by reference from iBIZ's Form 10-SB, File No. 000-27619,
         filed with the SEC on October 13, 1999

(2)      Incorporated by reference from iBIZ's Form 10-SB/A, File No. 000-27619,
         filed with the SEC on November 30, 1999.

(3)      Incorporated by reference from iBIZ's Form SB-2, File No. 333-94409,
         filed with the SEC on January 11, 2000.

(4)      Incorporated by reference from iBIZ's Form 10-KSB, File No. 000-027619,
         filed with the SEC on January 7, 2000.

(5)      Incorporated by reference from iBIZ's Form 10-QSB, File No. 000-027619,
         filed with the SEC on March 16, 2000.

(6)      Incorporated by reference from iBIZ's Form SB-2, File No. 333-34936,
         filed with the SEC on April 17, 2000.

(7)      Incorporated by reference from iBIZ's Form SB-2, File No. 333-42414,
         filed with the SEC on July 28, 2000.

(8)      Incorporated by reference from iBIZ's Form SB-2, File No. 333-50564,
         filed with the SEC on November 22, 2000.

(9)      Incorporated by reference from iBIZ's Form 8-K, File No. 000-027619,
         filed with the SEC on January 19, 2001.

(10)     Filed herewith.

         No reports on Form 8-K were filed during the last quarter of the period
covered by this report. However, an 8-K was filed during the first fiscal
quarter of 2001, reporting a press release issued on January 12, 2001.

                                   SIGNATURES

         In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                   iBIZ Technology Corp.,
                                   a Florida Corporation

                                   By:/s/ Kenneth W. Schilling
                                      ----------------------------------------
                                        Kenneth W. Schilling, President,
                                        Director

                                   By:/s/ Terry S. Ratliff
                                      ----------------------------------------
                                        Terry S. Ratliff, Vice President,
                                        Comptroller, Director

                                   By:/s/ Mark H. Perkins
                                      ----------------------------------------
                                        Mark H. Perkins, Vice President of
                                        Operations, Director


                                       29

<PAGE>   57
                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
  Exhibit No.     DESCRIPTION
  -----------     -----------
<S>               <C>
    2.01(1)       Plan of Reorganization and Stock Exchange Agreement dated
                  January 1, 1999

    3.01(1)       Articles of Incorporation, as amended

    3.02(1)       Bylaws

    10.01(1)      Citrix Business Alliance Membership Agreement dated February
                  10, 1999, between INVNSYS and Citrix Systems, Inc.

    10.02(1)      Client Software License Agreement dated December 30, 1998,
                  between INVNSYS and Citrix Systems, Inc.

    10.03(1)      IBIZ Technology Corporation Distributed Software License
                  Agreement dated June 2, 1999, between iBIZ and Jeremy Radlow

    10.04(1)      3Com Designed for Palm Computing Platform Logo License
                  Agreement, between iBIZ and Palm Computing, Inc.

    10.05(1)      IBIZ Technology Corp. Stock Option Plan dated January 31, 1999

    10.06(1)      Form of Stock Option

    10.07(1)      Lease Agreement dated June 1, 1999, between iBIZ and Lone
                  Cactus Capital Group, L.L.C.

    10.08(1)      Strategic Teaming and Marketing Agreement dated February 18,
                  1999, between iBIZ and Global Telephone Communication, Inc.

    10.09(1)      Form of iBIZ Technology Corp. Common Stock Purchase Warrant

    10.10(1)      Form of iBIZ Technology Corp. Convertible Debenture

    10.11(1)      Employment Agreement dated March 5, 1999, as amended, between
                  iBIZ, INVNSYS and Kenneth Schilling

    10.12(1)      Employment Agreement dated March 5, 1999, as amended, between
                  iBIZ, INVNSYS and Terry Ratliff

    10.13(1)      Employment Agreement dated March 5, 1999, as amended, between
                  iBIZ, INVNSYS and Mark Perkins

    10.14(2)      Securities Purchase Agreement dated November 9, 1999, between
                  iBIZ and Globe United Holdings, Inc.
</TABLE>




<PAGE>   58
<TABLE>
<CAPTION>
  Exhibit No.     DESCRIPTION
  -----------     -----------
<S>               <C>
    10.15(2)      7% Convertible Debenture Due November 9, 2004, between iBIZ
                  and Globe United Holdings, Inc.

    10.16(2)      Warrant dated November 9, 1999

    10.17(2)      Registration Rights Agreement dated November 9, 1999, between
                  iBIZ and Globe United Holdings, Inc.

    10.18(3)      Securities Purchase Agreement dated December 29, 1999, between
                  iBIZ and Globe United Holdings, Inc.

    10.19(3)      7% Convertible Debenture Due December 29, 2004, between iBIZ
                  and Globe United Holdings, Inc.

    10.20(3)      Warrant dated December 29, 1999

    10.21(3)      Registration Rights Agreement dated December 29, 1999, between
                  iBIZ and Globe United Holdings, Inc.

    10.22(3)      Subscription Agreement for Common Stock of iBIZ Technology
                  Corp.

    10.23(4)      Master Distribution Agreement dated January 12, 2000, between
                  iBIZ and Harsper Co. Ltd.

    10.24(5)      Letter Agreement dated December 14, 1999, between iBIZ and
                  Josephthal & Co., Inc.

    10.25(5)      Financial Project Management Agreement dated January 20, 2000,
                  between iBIZ and Equinet, Inc.

    10.26(6)      Securities Purchase Agreement dated March 27, 2000, between
                  iBIZ and Lites Trading, Co.

    10.27(6)      7% Convertible Debenture Due March 27, 2000, between iBIZ and
                  Lites Trading, Co.

    10.28(6)      Warrant dated March 27, 2000

    10.29(6)      Registration Rights Agreement dated March 27, 2000, between
                  iBIZ and Lites Trading, Co.

    10.30(6)      Letter Agreement dated March 27, 2000, from Globe United
                  Holdings to iBIZ

    10.31(7)      Financial Consulting Services Agreement dated June 16, 2000
                  with Travis Morgan Securities.

    10.32(7)      Agreement with the Partnership of Sklar and Ruzycki dated July
                  6, 2000.

    10.33(10)     Form of Warrant dated August 30, 2000 (six warrants by and
                  between iBIZ Technology Corp., and various warrant holders)

    10.34(10)     Form of Warrant dated May 17, 2000 (four warrants by and
                  between iBIZ Technology Corp., and various warrant holders)

    10.35(8)      Subscription Agreement for Notes Convertible into Common Stock
                  of iBIZ Technology Corp.

    10.36(8)      Form of 8% Convertible Notes Due Oct. 30, 2002

    10.37(8)      Funds Escrow Agreement

    10.38(8)      Form of Warrant dated Oct. 30, 2000.

    21.01(1)      Subsidiaries of Company

    23.05(10)     Consent of Moffitt & Company

    99.01(9)      Press Release dated January 12, 2001
</TABLE>



<PAGE>   59



(1)      Incorporated by reference from iBIZ's Form 10-SB, File No. 000-27619,
         filed with the SEC on October 13, 1999

(2)      Incorporated by reference from iBIZ's Form 10-SB/A, File No. 000-27619,
         filed with the SEC on November 30, 1999.

(3)      Incorporated by reference from iBIZ's Form SB-2, File No. 333-94409,
         filed with the SEC on January 11, 2000.

(4)      Incorporated by reference from iBIZ's Form 10-KSB, File No. 000-027619,
         filed with the SEC on January 7, 2000.

(5)      Incorporated by reference from iBIZ's Form 10-QSB, File No. 000-027619,
         filed with the SEC on March 16, 2000.

(6)      Incorporated by reference from iBIZ's Form SB-2, File No. 333-34936,
         filed with the SEC on April 17, 2000.

(7)      Incorporated by reference from iBIZ's Form SB-2, File No. 333-42414,
         filed with the SEC on July 28, 2000.

(8)      Incorporated by reference from iBIZ's Form SB-2, File No. 333-50564,
         filed with the SEC on November 22, 2000.

(9)      Incorporated by reference from iBIZ's Form 8-K, File No. 000-027619,
         filed with the SEC on January 19, 2001.

(10)     Filed herewith.