<PAGE>

                                                                    Exhibit 12.1

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                        _______________________________

                                  FORM 10-SB/A

                              AMENDMENT NO. 1 TO

                       GENERAL FORM FOR REGISTRATION OF
                     SECURITIES OF SMALL BUSINESS ISSUERS
                         UNDER SECTION 12(b) OR 12(g)

                          COMMISSION FILE NO. 0-25773

                         INFORMATION-HIGHWAY.COM, INC.
          (Name of small business issuer as specified in its charter)

            Florida                                    65-0154103
 (State or other jurisdiction of                    (I.R.S. Employer
  incorporation or organization)                 Identification Number)

                          185 - 10751 Shellbridge Way
                  Richmond, British Columbia V6X 2W8, Canada
 (Address, including postal code, of registrant's principal executive offices)

                                (604) 278-5996
                    (Telephone number including area code)


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

               Securities to be registered under Section 12(g)
                       of the Exchange Act: Common Stock

________________________________________________________________________________

<PAGE>

                         INFORMATION-HIGHWAY.COM, INC.

                                  FORM 10-SB

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>

PART I                                                                                       Page
                                                                                             ----
<S>      <C>                                                                                <C>
Item 1.  Description of Business...........................................................    1

Item 2.  Management's Discussion and Analysis or Plan of Operations........................   12

Item 3.  Property..........................................................................   26

Item 4.  Security Ownership of Certain Beneficial Owners and Management....................   26

Item 5.  Directors, Executive Officers, Promoters and Control Persons of the Company.......   27

Item 6.  Executive Compensation............................................................   28

Item 7.  Certain Relationships and Related Transactions....................................   29

Item 8.  Description of Securities.........................................................   29

PART II

Item 1.  Market Price of and Dividends on the Company's Common Equity
         and Other Shareholder Matters.....................................................   30

Item 2.  Legal Proceedings.................................................................   30

Item 3.  Changes in and Disagreements with Accountants on Accounting
         and Financial Disclosure..........................................................   30

Item 4.  Recent Sales of Unregistered Securities...........................................   30

Item 5.  Indemnification of Directors and Officers.........................................   34

PART F/S

Index to Consolidated Financial Statements.................................................   35

PART III

Item 1.  Index to Exhibits.................................................................   36
</TABLE>

<PAGE>

                                    PART I

Item 1.  Description of Business.


Information-Highway.com, Inc. (the "Company") serves as an Internet Service
Provider (referred to as an "ISP" in the industry) for companies and individuals
that need access to the Internet in exchange for a recurring fee.  The Company
has also developed and begun providing a compilation of Internet-based services
and information catering to business professionals known collectively as the
"Executive Site(TM)".  The Company conducts its operations through the following
three wholly-owned Canadian subsidiaries:

  .  YesIC, Communications, Inc., acquired in February 1997;
  .  World Tel Internet (Toronto) Ltd., acquired in February 1997; and
  .  Blue Crow Internet Company, Ltd., acquired in December 1996.

Information Highway, Inc., a Washington corporation, actually acquired these
subsidiaries.  Then, in February 1999, Information Highway, Inc. engaged in a
reverse takeover of Florida Venture Fund, Inc., a Florida corporation.  As a
result of the reverse takeover, the shareholders of Information Highway, Inc.
came to own approximately 95% of the outstanding shares of Florida Venture Fund,
Inc.  In connection with the reverse takeover, Florida Venture Fund, Inc.
changed its name to Information-Highway.com, Inc.

Information-Highway.com, Inc. is now the ultimate parent company whose shares
are traded on the OTC bulletin board (symbol: IHWY).  Information-Highway.com,
Inc.'s executive offices are located at 10751 Shellbridge Way, Suite 185,
Richmond, British Columbia V6X 2W8, Canada, its telephone number is (604) 278-
5996 and its facsimile number is (604) 278-3409.

     Business Development

The Company was incorporated in Florida in December 1988 as Florida Venture
Fund, Inc.  The Company had not conducted any business prior to February, 1999,
when it engaged in a reverse takeover with Information Highway, Inc., a
Washington corporation ("IHI"). IHI was formed in October 1996.  IHI began to
build the basis for the current business of the Company by undertaking the
following acquisitions:

  .  YesIC, Communications, Inc., acquired in February 1997;
  .  World Tel Internet (Toronto) Ltd., acquired in February 1997; and
  .  Blue Crow Internet Company, Ltd., acquired in December 1996.

In a reverse takeover, the shareholders of an acquired company generally end up
owning all or most of the resulting combined company. The reverse takeover of
the Company by IHI was conducted pursuant to an Agreement and Plan of
Reorganization entered into on February 17, 1999 and closed on February 23, 1999
between the Company, IHI and certain shareholders of IHI. The Company acquired
3,235,000 common shares of IHI (out of a total of 5,639,650 issued and
outstanding common shares) in exchange for 3,235,000 common shares of the
Company. It is the Company's intention to complete the exchange of shares of its
common stock for the remaining and outstanding common shares of IHI on a one for
one basis. As of August 31, 1999, 2,240,150 of the remaining 2,404,650 IHI
shares had been exchanged for the same number of Company shares. In total, to
August 31, 1999, approximately 97% of IHI shares had been exchanged. The Company
has allotted 164,500

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shares in anticipation of the remaining shares being exchanged. As part of the
Agreement and Plan of Reorganization, the Company caused 1,659,833 of its
1,979,500 common shares that were issued and outstanding prior to the closing to
be cancelled and assumed the obligations of IHI to issue common shares pursuant
to warrants and stock options issued by IHI. IHI paid $100,000 to the
controlling shareholder of the Company as a finder's fee and to effect the
Agreement and Plan of Reorganization. In connection with the reverse takeover,
the Company changed its name from Florida Venture Fund, Inc. to Information-
Highway.com, Inc.

     Overview of Information-Highway.com's Business

The Company serves as an Internet Service Provider (referred to as an "ISP" in
the industry) for companies and individuals that need access to the Internet in
exchange for a recurring fee.  The Company intends to provide ISP services to a
steadily growing number of cities in North America as a "Virtual ISP".  A
Virtual ISP provides Internet access to its customers using the underlying
telecommunications infrastructure of another company, such as a telephone
company. The Virtual ISP business model should enable the Company to avoid
purchasing and installing "backbone" communications equipment and infrastructure
in each city where it plans to offer ISP services.

The Company's goal is to expand its ISP business throughout North America by
negotiating access to Virtual ISP "backbone" facilities and then repackaging
that access for sale to its customers and resellers (licensees).  The Company
has entered into agreements that permit it to market access to the Internet in
the Northeast United States and 20 cities (some in the Northeast) across the
United States, and in Canada. Toronto, Ontario is the first market in which the
Company provided ISP services, beginning about four years ago.

The Company believes that Internet users will begin to base their selection of
an ISP in part on the value-added services that their ISP provides.  Through its
"Executive Site(TM)" compilation of Internet-based services and information, the
Company provides localized and portal content catering to business
professionals. Through research, design, programming, co-branding, and
licensing, the Company has compiled Internet services and content in its
Executive Site that it believes are useful to companies, associations and
professionals. Executive Site web pages are designed specifically for targeted
user groups, and the Company believes they provide friendly, easy to navigate
interfaces.  The Company's basic Executive Site may be accessed through the
Internet at www.theexecutive.com.  Other Executive Sites are customized to the
needs of specific Internet subscriber groups (whether by geographic location or
entity affiliation) and have different Internet addresses.

References in this report to the "Executive Site" mean the basic Executive Site
as well as all customized Executive Sites, unless the discussion refers
specifically to basic or customized Executive Sites.

The Company plans to market the Executive Site throughout North America,
starting with its Virtual ISP locations.  It may also let other ISPs display
customized Executive Sites in certain markets.  The Company also offers its
commercial clients the ability to market their products and services to
Executive Site users through its newly developed Virtual Mall.

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The Company believes the Executive Site will be popular because most business
professionals don't want to spend their own time searching the Internet for the
information that they need.  The Executive Site has assembled a functional
business site to enable users to immediately find what they need.  Executive
Site users will be able to:
  .  monitor and research the stock market;
  .  plan and book their next business trip;
  .  check the local news and weather;
  .  participate in online forums;
  .  carry out electronic transactions via e-commerce; and
  .  find a suitable restaurant in their area.
The Company does not plan to charge a fee for access to the basic Executive
Site.  It plans to charge a design fee and a recurring user fee for Executive
Sites that it customizes for companies or associations.  It also plans to charge
a monthly fee when it allows other ISPs to display a customized Executive Site.
The Company expects to receive advertising and e-commerce commission revenues
from the Executive Site.

     Industry Background - The Internet

The Internet is a global collection of thousands of interconnected computer
networks that links computers around the world and enables commercial
organizations, educational institutions, governmental agencies and individuals
to communicate electronically, access and share information and conduct
commerce. Unlike other public and private telecommunications networks that are
managed by businesses, governmental agencies or other entities, the Internet is
a cooperative interconnection of many such public and private networks. The
networks that comprise the Internet are connected in a variety of ways,
including the public-switched telephone network and dedicated high-speed leased
lines. Open communications on the Internet are enabled by TCP/IP, the common
Internet communications protocol, which enables communication across the
Internet regardless of the hardware and software used.

Recent technological advances, combined with cultural changes and evolving
business practices, have led to integration of the Internet into the activities
of individuals and the operations and strategies of commercial organizations.
Use of the Internet by individuals and relatively small businesses and other
organizations has been accelerated by dramatic increases in cost-effective
processing power and data storage capabilities in personal computers, as well as
widespread availability of multimedia, fax/modem, and networking capabilities to
the home computing market. According to CyberAtlas, the Computer Industry
Almanac conducted a study that found that North America will remain the leading
region for Internet users until at least 2005, projecting that it will grow from
about 83 million Internet users at the end of 1998 to nearly 230 million by the
end of 2005. By the end of the year 2000, the Computer Industry Almanac projects
that Internet users in North America will number almost 149 million. The
Computer Industry Almanac defines Internet users as adults with weekly usage in
businesses and homes.

Much of the recent growth in Internet use by businesses and individuals has been
driven by the emergence of a network of servers and information available on the
worldwide web. The

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worldwide web, which is based on a client/server model and a set of standards
for information access and navigation, can be accessed using software that
allows non-technical users to exploit the capabilities of the Internet. The
worldwide web enables users to find, retrieve and link information on the
Internet easily and consistently. The development of worldwide web technology
and associated easy-to-use software has made the Internet easier to navigate and
more accessible to a larger number of users and for a broader range of
applications.

Until recently, individuals could access the Internet only through an
organization with a direct Internet connection, or through traditional online
services employing closed, proprietary networks that allow Internet access only
to limited Internet resources. With the growth and increasing commercialization
of the Internet, a number of Internet Service Providers, or ISPs, including the
Company, have emerged to provide direct access to individuals.  Traditional
online services also have begun to increase the scope and capacity of their
access to the Internet. Access providers vary widely in geographic coverage,
subscriber focus and levels of Internet access. For example, access providers
may concentrate on certain types of subscribers (such as businesses or
individuals) that differ substantially in the type of service and support
required. Providers may also differ according to whether they provide direct or
non-direct access to the Internet. Direct access through Internet protocol such
as PPP (Point-to-Point Protocol) enable users to establish direct connections to
other computers on the Internet, including worldwide web sites or computers
operated by other users, and thereby have access to the full range of Internet
resources. The Company, like most regional and national ISPs, offers direct
Internet access.

     Principal Services

The Company currently derives the overwhelming majority of its revenues
(approximately 98%) from its ISP business. Over the past 18 months, the Company
has devoted significant resources to developing its "Executive Site(TM)" web
sites, which provide localized and portal content catering to business
professionals. The Company believes that the Executive Site will ultimately
produce significant revenues, as well as complement the Company's ISP services
by functioning as an Internet access gateway.

Key strategic developments to date have included equipment, software and robust
network infrastructure acquisitions, acquisitions of licenses for web content,
research and development and marketing plan development. The Company possesses
what management considers to be the latest in high-end computer management
systems. Hardware systems have been installed, tested, and are operating with
comprehensive redundancy and contingency plans (although the Company cannot
guarantee that it would maintain service in the face of every kind of natural
disaster or man-made disruption). The Company has the capacity to increase
hardware storage capabilities due to the modular nature of its equipment and
without system downtime.

          ISP Services

The Company serves as an ISP for companies and individuals that need access to
the Internet in exchange for a recurring fee.  The Company began as a local ISP
in Toronto and Vancouver, purchasing and installing the "backbone"
communications equipment and infrastructure necessary to be a stand-alone ISP.
The Company's costs of providing ISP services have historically included
equipment installation and ongoing service and maintenance charges. The Company
intends to provide ISP services to a steadily growing

                                       4
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number of cities in North America as a Virtual ISP by providing Internet access
to its customers using the underlying telecommunications infrastructure of other
companies, such as telephone companies. The Virtual ISP business model should
enable the Company to avoid purchasing hardware and installing "backbone"
communications equipment and infrastructure in each city where it plans to offer
ISP services. As the Company introduces its Virtual ISP presence in additional
cities, each city will represent an increased lease charge under the Company's
agreements with Internet access providers due to the need to add bandwidth to
accommodate the customer base in the new market. As the Company expands its
presence in a particular market, it will require additional increases in
bandwidth depending on data transmission volumes.

The Company's goal is to expand its ISP business throughout North America by
negotiating access to the telecommunications "backbone" facilities of Internet
access providers and then repackaging that access for sale to its customers and
resellers (licensees). The Company has entered into agreements that permit it to
market access to the Internet in the Northeast United States and 20 cities (some
in the Northeast) across the United States, and in Canada. In September 1999 the
Company entered into an agreement with Bell Atlantic that lets the Company
provide Internet access in the Northeast United States on high-speed Digital
Subscriber Lines ("DSLs"). The agreement has a three-year term and is subject to
renewal annually thereafter. Under the agreement, the Company pays fees to Bell
Atlantic monthly based on bandwidth used and Bell Atlantic's then-current price
schedule. In March 1999 the Company entered into an agreement with Level 3
Communications that lets the Company provide Internet access in 20 cities across
the United States using their fiber-optic backbone (a phone line). The agreement
does not have a specific term and is on a month-to-month basis. Under the
agreement, the Company pays fees to Level 3 Communications based on a per-port
fee (each port provides capacity for a certain volume of data transmission). In
November 1998 the Company entered into an agreement with MetroNet
Communications, recently acquired by AT&T, which permits the Company to use
their Canadian network of high-speed, fiber-optic ATM links. The agreement has a
five-year term and no stated renewal clause. Under the agreement, the Company
pays fees to MetroNet Communications based on a per-port fee. The Company will
continue to pursue agreements with additional Internet access providers based on
the markets the Company seeks to serve and the acceptability of the terms
offered by Internet access providers serving those markets. The Company must
develop and maintain its relationships with owners of telecommunications
networks in order to implement its "Virtual ISP" business model and facilitate
broad market acceptance of its services and enhance its sales.

The Company selects certain target markets in which it will offer its services
and commit corresponding resources for marketing and infrastructure. The Company
bases its target market assessment on two years of research and development
through its involvement in the Internet industry. Because the Company does not
have a universal presence on the Internet as an ISP, its ability to achieve
market penetration in the target markets it selects to serve has a significant
effect on the Company's ability to maintain and increase its revenues. As of
August 31, 1999, the Company had approximately 23,000 ISP customers.

Maintaining market penetration successes by minimizing customer turnover also
has a significant effect on the Company's ability to maintain and increase its
revenues. The Company believes it has had a very satisfactory overall rate of
customer turnover. During the past two years, approximately 2,500 ISP customers
stopped using the Company as their ISP. The bulk of this turnover occurred in a
six-month period of time from November 1998 to May 1999, when the Company had
some technical difficulties rolling out new MetroNet leased lines. During this
period, a higher percentage of customers than usual, approximately two percent
of existing customers per month, terminated service, due principally to slow
transmission speeds and inadvertent disconnection of transmissions. The Company
has worked with MetroNet to correct these problems, and its turnover rate since
May 1999 is now back below the industry standard of one percent of existing
customers per month. The Company expects customer turnover to increase in the
future as competition intensifies. The Company expects that service quality
(i.e., data transmission speed and periods of down time) and

                                       5
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price will be the major factors that influence ISP customers to switch their
ISP. The Company believes that the availability of customized Executive Sites
(and other such similar Internet link compilations targeted to specific user
groups) with their value-added services will increasingly become another factor
that ISP customers will consider in their assessment of service quality. See
"Principal Services--The Executive Site".

The Company currently has a significant market presence (more than 20,000 ISP
customers) in Toronto. In addition, the Company has begun to provide ISP
services in Vancouver and Calgary as a Virtual ISP. Within the next six months,
the Company plans to begin offering ISP services in Seattle, Washington, D.C.,
Dallas, Houston, Philadelphia, San Francisco, Miami, New York and Los Angeles.
The Company will add additional cities to its service area as it assesses the
market opportunities and the terms available from Internet access providers.

          The Executive Site

The Company believes that Internet users will begin to base their selection of
an ISP in part on the value-added services that their ISP provides.  Through its
"Executive Site" compilation of Internet-based services and information, the
Company plans to provide localized and portal content catering to business
professionals. Through research, design, programming, co-branding, and
licensing, the Company has compiled Internet services and content in its
Executive Site that it believes are useful to companies, associations and
professionals. Executive Site web pages are designed specifically for targeted
user groups, and the Company believes they provide friendly, easy to navigate
interfaces. The Company's basic Executive Site may be accessed through the
Internet at www.theexecutive.com.  Other Executive Sites are customized to the
needs of specific Internet subscriber groups (whether by geographic location or
entity affiliation) and have different Internet addresses.

The Company plans to market the Executive Site throughout North America,
starting with its Virtual ISP locations. It may also let other ISPs display
customized Executive Sites in certain markets. The Company also offers its
commercial clients the ability to market their products and services to
Executive Site users through its newly developed Virtual Mall.

The Company believes the Executive Site(TM) will be popular because most
business professionals don't want to spend their own time searching the Internet
for the information that they need. The Executive Site(TM) has assembled a
functional business site to enable users to immediately find what they need.
Executive Site(TM) users will be able to:

   .  monitor and research the stock market;
   .  plan and book their next business trip;
   .  check the local news and weather;
   .  participate in online forums;
   .  carry out electronic transactions via e-commerce; and
   .  find a suitable restaurant in their area.

The Company does not plan to charge a fee for access to the basic Executive
Site(TM). It plans to charge a design fee and a recurring user fee for Executive
Sites(TM) that it customizes for companies or associations. It also plans to
charge a monthly fee when it allows other ISPs to display a customized Executive
Site.  The Company expects to receive advertising and e-commerce commission
revenues from the Executive Site(TM).

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The Executive Site has two main purposes.  One important purpose of the
Executive Site is to complement the Company's ISP business. Thus far the
industry has focused on providing high speed access to the Internet and has
largely neglected the content development market. The greatest difficulty in
content development is encouraging people to pay for the information they need.
Some companies have attempted to charge for information. However, information
can always be found free on the Internet. While people will not pay for raw
information, the Company believes that when information and services are
properly bundled, ISP customers will find value in convenience, organization,
relevance, and meaningful communication.  Internet content is now aimed at broad
target markets doing little to customize information to users needs. The
Executive Site aims to provide content customized to the needs of specific
interest groups, companies, and associations.

Although anyone with Internet access will be able to visit the basic Executive
Site or the customized regional sites maintained by the Company, only the
Company's (or one of its ISP licensee's) ISP customers will be able to access
certain value-added services available on the Executive Site. For example, the
Company currently offers its ISP customers e-mail without any additional charge
and plans to offer 100 minutes of voice-over Internet Protocol ("IP") phone
service without any additional charge. Anybody accessing an Executive Site who
is not an ISP customer of the Company (or one of its ISP licensees) cannot
access these value-added services without any additional charge. The Company
believes that by providing these value-added services, along with the other
useful services and content conveniently located at the Executive Site, it will
have a competitive advantage in attracting and retaining ISP customers.

The Executive Site's second main purpose is to be a profit center. The Company
believes that the Executive Site will ultimately become a profit center in its
own right. The Company believes it can generate non-ISP revenues by providing
information organized and packaged for consumers and businesses. While people
will not pay for raw information, the Company believes that when information and
services are properly bundled, two distinct revenue streams are available. One
revenue stream will be available from licensees that would like to customize an
Executive Site for their own targeted user group. Such licensees would include
other ISPs, companies and associations. The Company believes that they will pay
for the convenience, organization, relevance, and meaningful communication
provided by the pre-packaged Executive Site information and services, and the
tools required to organize and maintain them. A second distinct revenue stream
will be available by virtue of Internet users (whether they are ISP customers of
the Company and its licensees or of other unrelated ISPs) visiting the Executive
Site and accessing its information and services. This revenue stream would
include advertising and e-commerce commission revenues. The Executive Site is a
new concept and, while the Company has high hopes for its ultimate success, has
yet to provide material revenues to the Company.

The Company has committed significant resources to the development of the
Executive Site, and it intends to continue to commit significant resources to
its development and maintenance.  Through research, design, programming, co-
branding, and licensing, the Company compiles a collection of the most
compelling and functional Internet services.  These services are then
synthesized into a single web interface.  Finally, this web interface is
customized to function as a dedicated service for dial-up communities, interest
groups, associations, and companies, who in turn sell access to the service to
their members, associates, or employees. In other words, the Executive Site
compiles

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some of the Internet's best stock quote systems, travel reservation systems,
shopping networks, and chat technologies, and then adds information and
directories unique to any given group or organization. In some cases, its
networks may even form the backbone of a corporate Intranet. Because of the
modular nature of the Executive Site's information and service components, the
Company can offer businesses and associations the components that they want as
the basis of their customized intranets or executive sites. An initial
development and licensing fee, together with monthly user fees, will be charged
for the development of a customized Executive Site. The modular nature of the
Executive Site's information and service components will also facilitate
establishing local customized Executive Sites in those markets where the Company
or one of its licensees seeks to establish or maintain an ISP presence. When the
Company licenses information and service components, the licensee then has the
ability to control access to the website on which it displays the components.

The Company has begun making the Executive Site, with its value-added services,
available to its own ISP customers, and a print and Internet advertising
campaign is currently underway to attract Internet users (prospective new ISP
customers) to the Executive Site.  The Company also has succeeded in attracting
some business advertising, and it intends to seek additional advertising
customers.  The Company has also introduced its Virtual Mall.  The Virtual Mall
provides links to web pages where Internet users can view merchandise and make
purchases using their credit cards. The Company either receives a commission
from the vendor when an Internet user makes a purchase after entering a web page
through the Virtual Mall or it receives rent from the vendor for providing a
link to the vendor's web page from the Virtual Mall.

The Company also has begun licensing Executive Site information and service
components to third parties that want to display their own webpages.  In March
1999, the Company licensed its Executive Site portal to MediaComm Broadcasting
Systems, an ISP in Englewood, Colorado. The Company developed a private-labeled
version of the Executive Site for MediaComm's Internet access customers in the
Denver, Colorado area at http://denver.theexecutive.com. MediaComm paid an
initial set up fee and pays a monthly user fee.  MediaComm also shares
advertising and e-commerce revenues generated on the site's pages with the
Company.  In April 1999, the Company licensed its Executive Site portal to
InfoABC S.A., an ISP in Mexico City, Mexico. The Company developed a private-
labeled version of the Executive Site for InfoABC's Internet access customers in
the Mexico City area. InfoABC paid an initial set up fee and pays a monthly user
fee.  InfoABC also shares advertising and e-commerce revenues generated on the
site's pages with the Company.  As of August 31, 1999, the Company had licensed
Executive Site components to three ISPs, but not yet to any companies,
associations or interest groups. The Company believes that it will enter into a
number of license agreements with other ISPs, companies and associations during
the coming year.

The Executive Site is still in its early phases.  It does not yet provide a
material portion of the Company's revenues.  The Company believes that in the
future the non-ISP revenues provided by the Executive Site will increase both in
terms of absolute dollars and as a percentage of total revenues.

The Company constantly assesses the content of the Executive Site, adding,
deleting or substituting information or services when warranted.  Currently the
major components of the Executive Site include:
     Demon Systems's stock quote and research system;

                                       8
<PAGE>


     Internet Travel Network's travel reservation system;
     WeatherLabs, Inc.'s weather information;
     Ichat Rooms's chat room system;
     the Company's Virtual Mall;
     Furle/Powertrader's business directory;
Some of this content is actually resident on the Company's web pages, and some
of it is accessed by links to other web sites. Compensation arrangements with
content providers are generally based on the number of Internet users that
access a particular item of content (known in the industry as "hits"). With
respect to advertising revenues derived from banner advertisements placed on
various web pages, the Company generally shares revenue with the content
provider for the web page. In addition, the Company entered into a two year
licensing and multicasting agreement with broadcast.com. The Company will sell
broadcast.com services to associations, local ISP's, Executive Site users, local
dial-up, and national virtual ISP customers. Services will include audio and
video hosting, and live event broadcasting (multicasting) including multimedia
presentations, trade shows and conferences. The Company will receive a
percentage of revenues generated by these services for a period of two years and
will have the option to renew this contract annually.

These components represent only a small sample of planned future content. The
Company anticipates entering into similar agreements in the future to fully
develop and expand the content in the Executive Site. New content suppliers are
constantly being identified for existing and potential Executive Sites.
Additional content will also be developed by associations and companies
themselves.

     Competitive Conditions

The market for Internet products, services and advertising is new, rapidly
evolving and intensely competitive. The Company currently or potentially
competes with many other ISPs, providers of Web directories, search and
information services, as well as traditional media, for consumer attention and
advertising expenditures.  The Company expects competition to intensify in the
future. Barriers to entry may not be significant, and current and new
competitors may be able to provide ISP services and to launch new Web sites at a
relatively low cost. Accordingly, the Company believes that its success will
depend heavily upon achieving significant market acceptance before its
competitors and potential competitors introduce competing services.

The Company competes with other ISPs for ISP customers.  Although some
affirmative effort is required to change ISPs, there are no significant barriers
to ISP customers changing their ISP in response to service quality or price
considerations.  The Company competes with online services and other Web sites,
as well as traditional offline media such as television, radio and print, for a
share of advertisers' total advertising budgets. The number of companies
offering e-commerce outlets and selling Web-based advertising, and the available
inventory of related space on webpages, has recently increased substantially.
Accordingly, the Company may face pricing pressure on its e-commerce commissions
and for the sale of advertisements.

Many of the Company's competitors, as well as potential entrants into its
markets, have longer operating histories, larger customer or user bases, greater
brand recognition and significantly greater financial, marketing and other
resources than the Company. Many of these current and potential competitors can
devote substantially greater resources to promotion and Web site and systems
development than the Company. In addition, as the use of the Internet and other
online services increases, larger, well-established and well-financed entities
may continue to acquire, invest in or form joint ventures with ISPs, providers
of Web directories, search and information

                                       9
<PAGE>


services or advertising solutions, and existing ISPs, providers of Web
directories, search and information services or advertising solutions may
continue to consolidate. In addition, providers of Internet browsers and other
Internet products and services who are affiliated with ISPs or providers of web
directories and information services in competition with the Company's Executive
Site web site may more tightly integrate these affiliated offerings into their
browsers or other products or services. Any of these trends would increase the
competition the Company faces.

     Governmental Regulation

The laws and regulations applicable to the Internet and the Company's services
are evolving and unclear and could damage the Company's business. There are
currently few laws or regulations directly applicable to access to, or commerce
on, the Internet. Due to the increasing popularity and use of the Internet, it
is possible that laws and regulations may be adopted, covering issues such as
user privacy, defamation, pricing, taxation, content regulation, quality of
products and services, and intellectual property ownership and infringement.
Such legislation could expose the Company to substantial liability as well as
dampen the growth in use of the Internet, decrease the acceptance of the
Internet as a communications and commercial medium, or require the Company to
incur significant expenses in complying with any new regulations. The European
Union has recently adopted privacy and copyright directives that may impose
additional burdens and costs on international operations. In addition, several
telecommunications carriers, including America's Carriers' Telecommunications
Association, are seeking to have telecommunications over the Internet regulated
by the Federal Communications Commission, or FCC, in the same manner as other
telecommunications services. Because the growing popularity and use of the
Internet has burdened the existing telecommunications infrastructure and many
areas with high Internet usage have begun to experience interruptions in phone
services, local telephone carriers, such as Pacific Bell, have petitioned the
FCC to regulate the Internet and to impose access fees. Increased regulation or
the imposition of access fees could substantially increase the costs of
communicating on the Internet, potentially decreasing the demand for the
Company's services. A number of proposals have been made at the federal, state
and local level that would impose additional taxes on the sale of goods and
services through the Internet. Such proposals, if adopted, could substantially
impair the growth of electronic commerce and could adversely affect the Company.
Also, Congress recently passed (and the President has signed into law) the
Digital Millenium Copyright Act, which is intended to reduce the liability of
online service providers for listing or linking to third-party Web sites that
include materials that infringe copyrights. Congress also recently passed (and
the President has signed into law) the Children's Online Protection Act and the
Children's Online Privacy Act, which will restrict the distribution of certain
materials deemed harmful to children and impose additional restrictions on the
ability of online services to collect user information from minors. Further,
Congress recently passed (and the President has signed into law) the Protection
of Children from Sexual Predators Act, which mandates that electronic
communication service providers report facts or circumstances from which a
violation of child pornography laws is apparent. The Company cannot currently
predict the effect, if any, that this legislation will have on its business.
There can be no assurance that this legislation will not impose significant
additional costs on the Company's business or subject it to additional
liabilities. Moreover, the applicability to the Internet of existing laws
governing issues such as property ownership, copyright, defamation, obscenity
and personal privacy is uncertain. The Company may be subject to claims that its
services violate such laws. Any new legislation or regulation in the

                                       10
<PAGE>


United States or abroad or the application of existing laws and regulations to
the Internet could damage the Company's business.

Due to the global nature of the Internet, it is possible that the governments of
other states and foreign countries might attempt to regulate its transmissions
or prosecute the Company for violations of their laws. The Company might
unintentionally violate such laws. Such laws may be modified, or new laws may be
enacted, in the future. Any such development could damage the Company's
business.

     Other Information

The Company's ability to successfully offer products and services and implement
its business plan in a rapidly evolving market requires an effective planning
and management process. The Company has increased, and plans to continue to
increase, the scope of its operations.  Its headcount has grown and will
continue to grow substantially. At May 31, 1999, the Company had a total of 21
employees.  It will need to expand its infrastructure, which will include hiring
certain key employees, including without limitation, key employees in marketing
and technology development. Hiring such employees has historically been
difficult.

Product development expenses increased by $11,000 to $156,000 as compared to
$145,000 in the previous year, an increase of 8%. The major component of product
development expenses was; salaries and consulting fees of $117,000, rent and
telephone of $25,000, and amortization of capital assets used directly in
product development activities of $13,000. Related expenses incurred in the
previous year were comparatively similar as incurred in fiscal 1999.

The Company does not believe that environmental laws have or will have a
significant effect on its business.

In their report on the Company's financial statements, the Company's auditors
have expressed doubt about the Company's ability to continue in business as a
going concern. The Company will need additional funds to continue in business
and to implement its business plan as proposed, which it may not be able to
obtain.  Equity or debt financing may not be available to the Company on terms
acceptable to the Company, or at all.

The Company has undertaken steps to address Year 2000 Issues.  See "Management's
Discussion and Analysis of Financial Condition and Results of Operations--Year
2000 Issues".

                                       11
<PAGE>


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


This Form 10-SB contains forward-looking statements. The words, "anticipate",
"believe", expect", "plan", "intend", "estimate", "project", "could", "may",
"foresee", and similar expressions are intended to identify forward-looking
statements. The following discussion and analysis should be read in conjunction
with the Company's Financial Statements and Notes thereto and other financial
information included elsewhere in this Form 10-SB which contains, in addition to
historical information, forward-looking statements that involve risks and
uncertainties. The Company's actual results could differ materially from the
results discussed in the forward-looking statements. Factors that could cause or
contribute to such differences include those discussed below, as well as those
discussed elsewhere in this Form 10-SB.

     Overview

The Company serves as an Internet Service Provider (referred to as an "ISP" in
the industry) for companies and individuals that need access to the Internet in
exchange for a recurring fee.  The Company intends to provide ISP services to a
steadily growing number of cities in North America as a "Virtual ISP".  A
Virtual ISP provides Internet access to its customers using the underlying
telecommunications infrastructure of another company, such as a telephone
company. The Virtual ISP business model should enable the Company to avoid
purchasing and installing "backbone" communications equipment and infrastructure
in each city where it plans to offer ISP services.

The Company's goal is to expand its ISP business throughout North America by
negotiating access to Virtual ISP "backbone" facilities and then repackaging
that access for sale to its customers and resellers (licensees). The Company has
entered into agreements that permit it to market access to the Internet in the
Northeast United States and 20 cities (some in the Northeast) across the United
States, and in Canada. Toronto, Ontario is the first market in which the Company
provided ISP services, beginning about four years ago.

The Company believes that Internet users will begin to base their selection of
an ISP in part on the value-added services that their ISP provides.  Through its
"Executive Site(TM)" compilation of Internet-based services and information, the
Company provides localized and portal content catering to business
professionals. Through research, design, programming, co-branding, and
licensing, the Company has compiled Internet services and content in its
Executive Site that it

                                       12
<PAGE>


believes are useful to companies, associations and professionals. Executive Site
web pages are designed specifically for targeted user groups, and the Company
believes they provide friendly, easy to navigate interfaces. The Company's basic
Executive Site may be accessed through the Internet at www.theexecutive.com.
Other Executive Sites are customized to the needs of specific Internet
subscriber groups (whether by geographic location or entity affiliation) and
have different Internet addresses.

References in this Form 10-SB to the "Executive Site" mean the basic Executive
Site as well as all customized Executive Sites, unless the discussion refers
specifically to basic or customized Executive Sites.

The Company plans to market the Executive Site throughout North America,
starting with its Virtual ISP locations. It may also let other ISPs display
customized Executive Sites in certain markets. The Company also offers its
commercial clients the ability to market their products and services to
Executive Site users through its newly developed Virtual Mall.

The Company believes the Executive Site will be popular because most business
professionals don't want to spend their own time searching the Internet for the
information that they need.  The Executive Site has assembled a functional
business site to enable users to immediately find what they need.  Executive
Site users will be able to:
  .  monitor and research the stock market;
  .  plan and book their next business trip;
  .  check the local news and weather;
  .  participate in online forums;
  .  carry out electronic transactions via e-commerce; and
  .  find a suitable restaurant in their area.
The Company does not plan to charge a fee for access to the basic Executive
Site.  It plans to charge a design fee and a recurring user fee for Executive
Sites that it customizes for companies or associations.  It also plans to charge
a monthly fee when it allows other ISPs to display a customized Executive Site.
The Company expects to receive advertising and e-commerce commission revenues
from the Executive Site.

The Company conducts its operations through the following three wholly-owned
Canadian subsidiaries:

  .  YesIC, Communications, Inc., acquired in February 1997;
  .  World Tel, Internet (Toronto) Ltd., acquired in February 1997; and
  .  Blue Crow Internet Company, Ltd., acquired in December 1996.

Information Highway, Inc. ("IHI"), a Washington corporation, actually acquired
these subsidiaries. Then, in February 1999, IHI engaged in a reverse takeover of
Florida Venture Fund, Inc., a Florida corporation. As a result of the reverse
takeover, the shareholders of IHI came to own approximately 95% of the
outstanding shares of Florida Venture Fund, Inc. In connection with the reverse
takeover, Florida Venture Fund, Inc. changed its name to Information-
Highway.com, Inc. and is now the ultimate parent company whose shares are traded
on the OTC bulletin board (symbol: IHWY).

                                       13
<PAGE>


     Effect of Reorganization

The reverse takeover was conducted pursuant to an Agreement and Plan of
Reorganization entered into on February 17, 1999 and completed on February 23,
1999 between the Company, IHI and certain shareholders of IHI. The Company
acquired 3,235,000 common shares of IHI out of a total of 5,639,650 issued and
outstanding common shares in exchange for 3,235,000 common shares of the
Company. It is the Company's intention to complete the exchange of shares of its
common stock for the remaining and outstanding common shares of IHI on a one for
one basis. As of August 31, 1999, 2,240,150 of the remaining 2,404,650 IHI
shares had been exchanged for the same number of Company shares. In total, to
August 31, 1999, approximately 97% of IHI shares had been exchanged. The Company
has allotted 164,500 shares in anticipation of the remaining shares being
exchanged. As part of the Agreement and Plan of Reorganization the Company
caused 1,659,833 of its 1,979,500 common shares that were issued and outstanding
prior to the closing to be cancelled and assumed the obligations of IHI to issue
common shares pursuant to warrants and stock options issued by IHI. IHI paid
$100,000 to the controlling shareholder of the Company as a finder's fee and to
effect the Agreement and Plan of Reorganization.

For accounting purposes the acquirer is IHI as approximately 95% of the issued
and outstanding common shares of the Company are owned by the shareholders of
IHI and the entire Board of Directors of the Company is now comprised of the
entire Board of Directors of IHI. As IHI is the legal subsidiary of the Company
the nature of the business combination is a reverse takeover whereby the control
of the assets and the business of the Company is acquired by IHI and the
consolidated financial statements are issued under the name of the Company but
is a continuation of IHI and not the Company. The legal capital structure
remains that of the Company but the shareholders' equity of IHI has replaced the
shareholders' equity of the Company. Similarly, the Company's income statements
and statements of cash flows represent a continuation of IHI's consolidated
financial statements.

The accounting treatment of the reverse takeover takes into account $100,000 of
consideration that was paid to shareholders of the Company. The $100,000 payment
to the controlling shareholder of FVFI has been treated, for accounting
purposes, as a reduction of additional paid in capital and not as goodwill as
the nature of the transaction was for IHI to obtain a listing on the OTC
Bulletin Board by way of reverse takeover. The cost is associated with publicly
listing shares and not with any business associated with FVFI. FVFI had not
conducted any business prior to the reverse takeover.

                                       14
<PAGE>


     Factors Affecting Ongoing Operations

Prior to acquiring IHI, the Company had not conducted any business since
inception in 1988. The following discussion will relate to the Company as if the
reverse takeover had taken place as of the earliest date of the consolidated
financial statements presented.

Although planned principal activities have started producing significant
revenues, in its effort to rapidly expand infrastructure and network services
and develop the Executive Site(TM), the Company has suffered net losses for the
years ended May 31, 1999, 1998 and 1997 of $949,000, $557,000 and $151,000,
respectively. At May 31, 1999, its accumulated deficit was $1.7 million and its
working capital deficit was $314,000. The Company expects to incur substantial
operating losses, net losses and negative cash flow for the foreseeable future.

          Revenues

Revenue consists of mainly the provision of Internet dial-up services. The
Company receives limited revenue from banner advertisements, web-site
development and hosting and e-commerce commission revenue.

Revenue is recognized at the time services are provided. All related costs are
recognized in the period in which they occur. Customer deposits for Internet
dial-up services to be provided in the future are treated as deferred revenues.

The following factors affect the Company's revenue:

  .  Service Offering - The Company derives most of its operating revenue from
     the ISP service it provides to its customers;

  .  Penetration of Target Markets - The Company selects certain target markets
     in which it will offer its services and commit corresponding resources for
     marketing and infrastructure. The Company bases its target market
     assessment on two years of research and development through its involvement
     in the Internet industry. Because the Company does not have a universal
     presence on the Internet as an ISP, its ability to achieve market
     penetration in the target markets it selects to serve has a significant
     effect on the Company's ability to maintain and increase its revenues;

  .  Turnover - Maintaining market penetration successes by minimizing customer
     turnover also has a significant effect on the Company's ability to maintain
     and increase its revenues. To date, customer turnover has been minimal. The
     Company expects customer turnover to increase in the future as competition
     intensifies. The Company expects that service quality (i.e., data
     transmission speed and periods of down time) and price will be the major
     factors that influence ISP customers to switch their ISP;

  .  Executive Site(TM) - Executive Site(TM) revenues, which to date are mostly
     from advertising, are not yet material to the Company's total revenues. The
     Company expects that advertising and e-commerce commission revenues related
     to the Executive Site(TM), as well as fee based revenues from customized
     Executive Site licensees, will grow in the future, both in dollar amount
     and as a percentage of the Company's total revenues.

                                       15
<PAGE>


          Cost of Revenues

Cost of revenues consists primarily of the cost of serving the Company's
Internet dial-up service customers and the cost of developing web-sites for
customers. These costs include salaries for technical support and customer
service, depreciation of Internet dial-up and web-site hosting equipment,
license fees, equipment leasing costs, telephone line costs and rent to house
equipment and staff directly involved in serving customers.

The Company's network and service costs have historically included equipment
installation and ongoing service and maintenance charges. As the Company
introduces its Virtual ISP presence in additional cities, each city will
represent an increased lease charge under the Company's agreements with Internet
access providers due to the need to add bandwidth to accommodate the customer
base in the new market. As the Company expands its presence in a particular
market, it will require additional increases in bandwidth depending on data
transmission volumes.

          Other Operating Expenses

The Company's other operating expenses include Executive Site(TM) development
and maintenance, information systems, billing and collections, general
management and overhead, and administrative functions. Head count in functional
areas, such as customer service, engineering and operations, along with
expansion of the Executive Site(TM) and the locations in which the Company
provides ISP services and increases in the number of its customers, will drive
increases in expenses.

     Results of Operations

If Regulation S-B Item 310(g)(1) requires or permits the Company to include in
this Form 10-SB the financial statements included in the Company's Form 10-KSB
for the fiscal year ended May 31, 1999, then that portion of Item 6,
Management's Discussion and Analysis of Financial Condition and Results of
Operations, under the caption Results of Operations for the Year Ended May 31,
1999 as Compared to the Year Ended May 31, 1998, on pages 18 through 21 of the
Company's annual report on Form 10-KSB for the fiscal year ended May 31, 1999,
is hereby incorporated by reference as though set forth here in its entirety.

If Regulation S-B Item 310(g)(1) does not require or permit the Company to
include in this Form 10-SB the financial statements included in the Company's
Form 10-KSB for the fiscal year ended May 31, 1999, then the following
discussion and analysis of the Company's results of operations applies:

                                      16
<PAGE>


     Results of Operations for the Quarter Ended February 28, 1999 as Compared
to the Quarter Ended February 28, 1998

          Revenues

Revenues have increased by $47,000 (23%) to $255,000 from $208,000 in the
comparable quarter. This increase is due to an increased subscriber base in
Vancouver and Toronto. Based on assumptions about demand for its ISP services
and the Executive Site(TM), the Company anticipates that the dollar amount of
future revenues will increase over current levels.

The Company is beginning to receive small amounts of revenue from banner
advertisements, developing web-sites for customers and reselling Executive Site
information and service modules pursuant to license agreements.

          Cost of Revenues

Cost of revenues has increased by $35,000 (25%) to $177,000 from $142,000 in the
comparable quarter. This increase is approximately the same as the increase in
revenues. The largest components of the increase in cost of revenues are
telephone costs, Internet and license fees, and salaries and consulting fees.
The increases in these costs are reflective of the increase in the Company's
subscriber base.

          Gross Profit

Gross profit was $78,000 (31%) in the current quarter as compared to $66,000
(32%) in the comparable quarter. With increased competition in the Internet
Service Provider industry there has been increased pressure to reduce fees for
new subscribers and renewing subscribers. This reduction of fees results in
lower gross profit percentages as there is not a reciprocal decrease in cost to
service its customers. The Company intends to decrease the cost of telephone and
Internet switching fees with new agreements with backbone or bandwidth
providers.

          Marketing and Sales Expenses

Marketing and sales expenses remained fairly stable on a quarter-to-quarter
comparison, $47,000 in the current quarter and $50,000 in the comparable
quarter.  In general marketing and sales expenses have increased as a result of
a marketing plan to increase advertisements in industry specific publications.
There was not a quarter-to-quarter increase due to the timing of marketing
expenditures.

          General and Administrative Expenses

General and administrative expenses for corporate overhead activities and
Internet business related activities have increased by $16,000 (12%) to $144,000
from $128,000 in the comparable quarter.

General and administrative expenses relating to corporate overhead activities,
and not Internet business related activities, have increased by $19,000 (38%) to
$69,000 from $50,000 in the comparable quarter. As a result of the reverse
takeover during February, 1999, the Company incurred one-time expenses relating
to professional fees and investor relations advertising and consulting.
Professional fees such as legal and accounting increased by $10,000 to $14,000
from $4,000 in the comparable quarter. This increase relates to costs incurred
to complete and file various documents with the NASD in addition to legal fees
to effect the reverse takeover. Investor relations advertising and consulting
increased by $17,000 to $22,000 from $5,000 in the comparable quarter. The
majority of this increase was due to services rendered by two non-related
companies for Internet-based marketing and investor communications services
including e-mails to their respective data bases of customers.

                                       17
<PAGE>


General and administrative expenses relating to Internet business related
activities decreased by $3,000 to $75,000 from $78,000 in the comparable
quarter. The major components of general and administrative expenses were:
amortization of goodwill of $40,000; and salaries and consulting fees of
$20,000.

          Product Development Expenses

Product development costs consist of expenses incurred by the Company in the
development and creation of its Executive Site(TM) web-site. Product development
costs include compensation and related expenses for programmers, depreciation of
computer hardware and software, rent, telephone and costs incurred in developing
features and functionality of the service. Product development costs are
expensed as incurred.

Product development expenses remained fairly stable on a quarter-to-quarter
comparison, $33,000 in the current quarter and $36,000 in the comparable
quarter. The major component of product development expenses was salaries and
consulting fees.

          Net Loss for the Quarter Ended February 28, 1999 as Compared to the
Quarter Ended February 28, 1998

The Company's net losses have come mainly from overhead costs associated with
organization, restructuring and financing start-up operations in Toronto and
Vancouver, Canada and costs of developing new and improved services and
expanding its marketing plan into other North American markets. The only
operating activities conducted in the United States thus far were expenses
incurred in the going public process including investor relations and
professional fees. The Company's head office is in Richmond, BC, Canada, which
does not conduct any business related to the Internet. Its sole purpose is to
provide administration, investor relations services and services relating to
being a public company. Included in general and administrative expenses and net
loss is $69,000 for the current quarter as compared to $50,000 in the comparable
quarter, relating to such activities. The net loss relating to Internet
activities amounted to $77,000 for the current quarter as compared to $98,000 in
the comparable quarter.

     Results of Operations for the Nine Months Ended February 28, 1999 as
Compared to the Nine Months Ended February 28, 1998

          Revenues

Revenues have increased by $142,000 (23%) to $752,000 from $610,000 in the
comparable period. This increase is due to an increased subscriber base in
Vancouver and Toronto. Based on assumptions about demand for its ISP services
and the Executive Site(TM), the Company anticipates that the dollar amount of
future revenues will increase over current levels.

The Company is beginning to receive small amounts of revenue from banner
advertisements, developing web-sites for customers and reselling Executive Site
information and service modules pursuant to license agreements.

          Cost of Revenues

Cost of revenues has increased by $106,000 (25%) to $522,000 from $416,000 in
the comparable period. This increase is approximately the same as the increase
in revenues. The largest components of the increase in cost of revenues are
telephone costs, Internet and license fees, and salaries and consulting fees.
The increases in these costs are reflective of the increase in the Company's
subscriber base.

                                       18
<PAGE>


          Gross Profit

Gross profit was $230,000 (31%) in the current period as compared to $194,000
(32%) in the comparable period. With increased competition in the Internet
Service Provider industry there has been increased pressure to reduce fees for
new subscribers and renewing subscribers. This reduction of fees results in
lower gross profit percentages as there is not a reciprocal decrease in cost to
service its customers. The Company intends to decrease the cost of telephone and
Internet switching fees with new agreements with backbone or bandwidth
providers.

          Marketing and Sales Expenses

Marketing and sales expenses have increased by $27,000 (23%) to $143,000 from
$116,000 in the comparable period. The bulk of this increase was a result of a
marketing plan to increase advertisements in industry specific publications. The
other major component of marketing and sales is salaries, which increased only
slightly as compared to the comparable period.

          General and Administrative Expenses

General and administrative expenses for corporate overhead activities and
Internet business related activities have increased by $135,000 (45%) to
$433,000 from $298,000 in the comparable period.

General and administrative expenses relating to corporate overhead activities,
and not Internet business related activities, have increased by $143,000 (213%)
to $210,000 as compared to $67,000 in the comparable period. As a result of the
reverse takeover during February, 1999, the Company incurred one-time expenses
relating to professional fees and investor relations advertising and consulting.
Professional fees such as legal and accounting increased by $37,000 to $47,000
from $10,000 in the comparable period. This increase relates to costs incurred
to complete and file various documents with the NASD in addition to legal fees
to effect the reverse takeover. Investor relations advertising and consulting
increased by $82,000 to $87,000 from $5,000 in the comparable period. The
majority of this increase was due to services rendered by two non-related
companies for Internet-based marketing and investor communications services
including e-mails to their respective data bases of customers. Office, rent and
telephone increased by $27,000 to $30,000 as a result of various office and
telephone costs incurred during and after becoming a public company.

General and administrative expenses relating to Internet business related
activities decreased by $8,000 to $223,000 from $231,000 in the comparable
period. The major component of general and administrative expenses was;
amortization of goodwill of $120,000; salaries and consulting fees of $60,000;
office, rent and telephone of $26,000; legal and accounting of $7,000, travel
and promotion of $5,000 and bank charges of $5,000.

          Product Development Expenses

Product development expenses increased by $14,000 (16%) to $99,000 from $85,000
in the comparable period. The major component of product development expenses,
salaries and consulting fees, accounted for the bulk of product development
expense in each period.

                                       19
<PAGE>


          Net Loss for the Nine Months Ended February 28, 1999 as Compared to
the Nine Months Ended February 28, 1998

The Company's net losses have come mainly from overhead costs associated with
organization, restructuring and financing start-up operations in Toronto and
Vancouver, Canada and costs of developing new and improved services and
expanding its marketing plan into other North American markets. The only
operating activities conducted in the United States thus far were expenses
incurred in the going public process including investor relations and
professional fees. The Company's head office is in Richmond, BC, Canada, which
does not conduct any business related to the Internet. Its sole purpose is to
provide administration, investor relations services and services relating to
being a public company. Included in general and administrative expenses and net
loss is $210,000 for the current period as compared to $67,000 in the comparable
period, relating to such activities. The net loss relating to Internet
activities amounted to $234,000 for the current period as compared to $238,000
in the comparable period.

     Results of Operations for the Year Ended May 31, 1998 as Compared to the
Year Ended May 31, 1997

The discussion for these two periods is based on the actual results for the
period from October 15, 1996 to May 31, 1997 of Information Highway, Inc.
combined with the actual results of the three operating Canadian subsidiaries
from acquisition date to May 31, 1997.  In all cases, the fact that fiscal year
1997 was only a partial year because the Company was formed in October 1996
affects the comparability of its results with those from fiscal year 1998.

          Revenues

Revenues have increased by $714,000 to $859,000 as compared to $145,000 in the
comparative period. This increase is due to an increased subscriber base in
Vancouver and Toronto and the fact that fiscal year 1997 was only a partial year
because the Company was formed in October 1996.

The Company's revenues in 1998 and 1997 were solely from the provision of
Internet services.

          Cost of Revenues

Cost of revenues have increased by $538,000 to $650,000 as compared to $112,000
in the comparative period. This increase is slightly less than the percentage
increase in revenues. The largest components of cost of revenues are telephone
costs, Internet and license fees, and salaries and consulting fees. The increase
in telephone costs was a result of telephone leasing costs in Vancouver and the
[decrease] in salaries and benefits was due to a reassignment of job
responsibilities and overall streamlining of the services provided. The increase
in Internet and license fees was due to increased ISP transmission traffic and
the Executive Site being developed.

          Gross Profit

Gross profit was $210,000 (24%) during fiscal 1998 as compared to 33,000 (23%)
during the comparative period. The increase in gross profit was a result of
increased volume, less manpower needed to service its customers, and the fact
that fiscal year 1997 was only a partial year because the Company was formed in
October 1996.

                                      20
<PAGE>


          Marketing and Sales Expenses

Marketing and sales expenses have increased by $146,000 to $171,000 as compared
to $25,000 in the comparative period, which is an increase related to the
increase in sales and the fact that fiscal year 1997 was only a partial year
because the Company was formed in October 1996. The major component of this
increase was a result of a marketing plan to increase advertisements in industry
specific publications. The other major component of marketing and sales is
salaries. Other costs relate to rent, telephone and amortization of capital
assets.

          General and Administrative Expenses

General and administrative expenses for corporate overhead activities and
Internet business related activities increased by $313,000 to $451,000 as
compared to $138,000 in the comparative period.

General and administrative expenses relating to corporate overhead activities,
and not Internet business related activities, increased as a result of the head
office being formed in October, 1996 in Richmond, BC, Canada. These increases
were due to the acquisition of the subsidiaries, raising of capital and
organization of the business.

General and administrative expenses relating to Internet business related
activities include amortization of goodwill, salaries and consulting fees,
office rent and telephone and legal and accounting.

          Product Development Expenses


Product development expenses increased by $124,000 to $145,000 as compared to
$21,000 in the previous year. The major components of product development
expenses were salaries and consulting fees and rent and telephone. The Company
devoted resources to the development of the Executive Site in Toronto.

          Depreciation and Amortization Expenses

Depreciation and amortization expense has been allocated to cost of revenues,
marketing and sales, general and administrative, and product development based
on the use of each capital asset. During fiscal 1998 and 1997 approximately 60%
of capital assets was used in cost of revenues, 15% in marketing and sales, 10%
in general and administrative and 15% in product development.

Purchased goodwill has been amortized at $13,000 per month over its estimated
useful life of three years. The estimated useful life of three years was chosen
to reflect the short-term life of the related business because of increased
competition, the lack of a universal presence and technological advancements and
obsolescence in the industry. Amortization expense has been allocated to general
and administrative expense for the Internet business.

The Company anticipates entering into operating leases for any network equipment
and software in the future to minimize capital expenditures.

                                      21
<PAGE>


          Income Taxes

The Company generated US and Canadian net operating losses ("NOL") carried
forward of $424,000 during the current year as compared to $127,000 for the
comparative year. The Company expects some consolidated losses for the
foreseeable future which will generate additional NOLs. However, the Company's
ability to use NOLs is dependant on generating profits in the future and may
also be subject to annual limitations. In addition, income taxes may be payable
during this time due to operating income in certain tax jurisdictions. In the
future, if the Company achieves operating profits and the NOLs have been
exhausted or have expired, the Company may experience significant tax expense.
The Company recognized no provision for taxes because it operated at a loss from
inception through to May 31, 1998. The deferred tax asset value has been reduced
to nil because the Company can not be assured that it is more likely than not
that it will utilize the NOLs carried forward in future years. If it was more
likely than not to realize these losses the Company would have recorded a
deferred tax asset of $197,000.

          Net Loss for the Year Ended May 31, 1998 as Compared to the Year Ended
May 31, 1997

The Company's net losses have come mainly from overhead costs associated with
organization, restructuring and financing start-up operations in Toronto and
Vancouver, Canada and costs of developing new and improved services and
expanding its marketing plan into other Canadian markets.

     Liquidity and Financial Resources

That portion of Item 6, Management's Discussion and Analysis of Financial
Condition and Results of Operations, under the caption Liquidity and Financial
Resources, on pages 21 through 22 of the Company's annual report on Form 10-KSB
for the fiscal year ended May 31, 1999, is hereby incorporated by reference as
though set forth here in its entirety.

     Outlook: Issues and Uncertainties

The Company's success is dependent on a number of factors which should be
considered by prospective investors. The Company has only recently acquired Blue
Crow, Internet; World Tel Internet; and YesIC which constitute its principal
assets. The Company is a relatively young company and does not yet have

                                      22


<PAGE>

a long history of earnings or profit and there is no assurance that it will
operate profitably in the future. As such, there is no assurance that the
Company will provide a return on investment in the future.

  Business Risks

  The Company operates in a highly competitive business which has a number of
  inherent risks.  These may be summarized as follows:

  1. Competition:  The Company's services compete against those of other
  established companies, some of which have greater financial, marketing and
  other resources than those of the Company.  These competitors may be able to
  institute and sustain price wars, or imitate the features of Company's
  services, resulting in a reduction of Company's share of the market. In
  addition, there are no significant barriers to new competitors entering the
  market place.

  2. Need for a Broad Customer Base:  The Company will need to build and sustain
  a large customer base and if it cannot do so this will have an adverse impact
  on its revenues.

  3. Reliance on New Products and Services:  The Company's business and
  financial plan focuses on products and services which are relatively new.
  There can be no assurance that existing sales levels, which are still quite
  small, can be maintained or that increased sales levels can be achieved.
  Internal cash generated by operations may not permit the level of research and
  development spending required to maintain the stream of new service
  improvements that may become necessary and outside financing may not be
  available.  The Company is using certain relatively new software products and
  the developers of this software are, in some cases, still working to improve
  certain essential features of the software including a feature to allow the
  transfer of data to be done on a secure and confidential basis.

  4. Obsolescence:  The Company is at risk if it does not continue to upgrade
  and improve its services.  Typically, the high technology industry is
  characterized by a consistent flow of new improved products and services which
  render existing products and services obsolete.

  5. Marketplace:  The marketplace for the Company's services is relatively new
  and will be undergoing rapid and constant change.  As a result, it is
  difficult to predict the continued demand for the Company's services.

  6. Cost Control:  Success will be largely predicated upon the Company's
  ability to develop, and sustain a large customer base for its services.
  Failure to do so may result in smaller profit margins or losses.

  7. Management:  The Company is dependent on a relatively small number of key
  employees, the loss of any of whom could have an adverse effect on the Company
  and the Company does not have any key man insurance with respect to such
  employees.

  8. Marketing Plan:  The Company's internal marketing plan including Executive
  Site is based on a number of assumptions which may or may not prove valid.
  Marketing expenditures are to be funded partly from the proceeds of this
  offering and cash flow from operations.  Poor market acceptance of the
  Company's services or other unanticipated events may result in lower revenues
  than anticipated, making the planned expenditures on marketing and promotion
  unachievable.

                                      23
<PAGE>

  9. Growth in Volume:  The growth in volume of Internet traffic may create
  instabilities in its structure such as shortages in Internet addresses and
  overworked search engines. Such instabilities may have an adverse affect on
  the Company' s operations and business if they are not addressed.

  10. Personnel and Resources:  Limitations on the Company's personnel and
  resources may affect the ability of the Company to provide the required
  quality service and technical support to achieve and maintain a competitive
  market position.

  11.  Third Parties:  The Company utilizes the services of third party
  contractors to provide certain technical services, telecommunications
  hardware, computers, software and communication lines.  Therefore, the
  performance of the Company will be affected by the quality of the goods and
  services provided by, and the reputations of, such third parties.

  12.  Insurance Risks:  The Company has not acquired liability insurance with
  respect to the provision of services by the Company.

  13.  Regulatory Risk:  The communications, computer and publishing services
  provided by the Company, including the access to the Internet, are relatively
  new services and, in the future, these services could be subject to additional
  regulation at local, state, provincial, federal and international levels.
  Such regulation could affect the costs of the services provided by the Company
  and its ability to deliver the services.  Any such regulatory changes could
  have an adverse effect on the Company.

  14.  Requirement of New Capital:  As a growing business, the Company typically
  needs more capital than it has available to it or can expect to generate
  through the sale of its services.  In its short history, the Company has had
  to raise, by way of debt and equity financing, considerable funds to meet its
  needs.  There is no guarantee that the Company will be able to continue to
  raise the funds needed for the Company's business. Failure to raise the
  necessary funds in a timely fashion will limit the Company's growth.

  15.  Year 2000 Issues: The Company's products do not require any significant
  modifications for the Year 2000. However, the Company may face Year 2000
  issues as it seeks to coordinate with other entities with which it interacts
  electronically, including suppliers, customers and distribution partners.
  Although the Company is not currently aware of any material problems, an
  assessment has not been made of the anticipated costs, problems and
  uncertainties associated with the Year 2000 consequences.

  16.  General Factors: The Company's areas of business may be affected from
  time to time by such matters as changes in general economic conditions,
  changes in laws and regulations, taxes, tax laws, prices and costs; and other
  factors of a general nature which may have an adverse effect on the Company's
  business.

  Risks Related to the Company's Securities

  1. Issuance of Additional Shares:  The substantial portion of the 50,000,000
  authorized shares of Common Stock of the Company are unissued.  The Board of
  Directors has the power to issue such shares without shareholder approval.
  None of the 10,000,000 authorized shares of Class A Preferred Stock have been
  issued.  The Class A Preferred Stock may be issued in series from time to time
  with such designation, rights, preferences and limitations as the Board of
  Directors may determine by resolution and without shareholder approval.  There
  are outstanding warrants and options whose

                                       24
<PAGE>

  holders may acquire additional shares of Common Stock. The Company fully
  intends to issue additional shares of Common Stock or shares of Preferred
  Stock if necessary in order to acquire products, properties, capital,
  businesses or for any other corporate purposes. Any additional issuances by
  the Company from its authorized but unissued shares would have the effect of
  further diluting the percentage interest of existing shareholders.

  2. Cumulative Voting and Preemptive Rights:  There are no preemptive rights in
  connection with the Company's Common Stock.  Cumulative voting in the election
  of directors is not permitted.  Accordingly, the holders of a majority of the
  shares of Common Stock, present in person or by proxy, will be able to elect
  all of the Company's Board of Directors.

  3. Concentration of Ownership:  The Executive Officers and Directors own or
  exercise full or partial control over more than 50% of the Company outstanding
  shares.  As a result, other investors in the Company's Common Stock may not
  have any influence on corporate decisionmaking.

  4. Estimates and Financial Statements:  Some of the information in this Form
  10-SB consists of and relies upon evaluations and estimates made by management
  and other professionals.  Even though management believes in good faith that
  such estimates are reasonable, based upon market studies and data provided by
  sources knowledgeable in the field, there can be no assurance that such
  estimates will ultimately be found to be accurate or even based upon accurate
  evaluations.  Any management errors in evaluations or estimates could have a
  significant negative effect upon the Company's profitability or even its
  viability.

  5. No Foreseeable Dividends:  The Company has not paid dividends on its Common
  Stock and does not anticipate paying dividends on its Common Stock in the
  foreseeable future.

  6. Possible Volatility of Securities Prices:  The market for the Company's
  stock is highly volatile and will likely continue to behave in this manner in
  the future.  Additionally, market prices for securities of many smaller
  companies have experienced wide fluctuations not necessarily related to the
  operating performance of the companies themselves.

  7. Requirements of SEC With Regard to Low-Priced Securities:  The Company's
  securities are subject to Rule 15g-9 under the 1934 Act, which imposes
  additional sales practice requirements on broker-dealers who sell such
  securities to persons other than established customers and "accredited
  investors" (generally, individuals with net worths in excess of $1,000,000 or
  annual incomes exceeding $200,000, or $300,000 together with their spouses).
  For transactions covered by this rule, a broker-dealer must make a special
  suitability determination for the purchaser and have received the purchaser's
  written consent to the transaction prior to sale.  Consequently, the rule may
  adversely affect the ability of broker-dealers to sell the Company's
  securities and may adversely affect the ability of shareholders to sell their
  shares in the secondary market.

     Year 2000 Issues

That portion of Item 6, Management's Discussion and Analysis of Financial
Condition and Results of Operations, under the caption Year 2000 Issues, on
pages 22 through 23 of the Company's annual report on Form 10-KSB for the fiscal
year ended May 31, 1999, is hereby incorporated by reference as though set forth
here in its entirety.

                                       25
<PAGE>

Item 3.  Property

The Company's headquarters and executive offices are located at #185-10751
Shellbridge Way, Richmond, British Columbia V6X 2W8 and the telephone number is
(604)278-5996.  The Company leases, on a month-to-month basis, approximately 200
square feet of space at the aforementioned office from SMR Investments Ltd., a
private British Columbia company owned by Susanne Robertson, the wife of John G.
Robertson.  The monthly rent fee is approximately $350.00 ($CN500).

The Company also leases facilities in Vancouver and Toronto.  The Vancouver site
supports both ISP services and the Executive Site.  The lease term is 28 months
with monthly payments of approximately $5000.00 ($CN7500).  The Toronto offices
support ISP services.  The lease term is 54 months with monthly payments of
approximately $2000.00 ($CN2950).  The Company believes that its present
facilities will be suitable for the operation of its business for the
foreseeable future.  The facilities are adequately insured against perils
commonly covered by business insurance policies.  These locations could be
replaced without significant disruption to the Company.

Item 4.  Security Ownership of Certain Beneficial Owners and Management


Item 11, Security Ownership of Certain Beneficial Owners and Management, on
pages 45 through 46 of the Company's annual report on Form 10-KSB for the fiscal
year ended May 31, 1999, is hereby incorporated by reference as though set forth
here in its entirety.

                                       26

<PAGE>


Item 5.  Directors, Executive Officers, Promoters and Control Persons of the
         Company

Directors and Executive Officers

The following table sets forth the name, age and position of each Director of
the Company:

<TABLE>
NAME                  AGE   POSITION
------------------------------------------------------------------------------------
<S>                   <C>   <C>
John G. Robertson     57    President, Principal Executive Officer and a member of
                            the Board of Directors
------------------------------------------------------------------------------------
Jennifer Lorette      26    Executive Vice President, Secretary/Treasurer, Principal
                            Accounting Officer and Chief financial Officer and a
                            member of the Board of Directors
------------------------------------------------------------------------------------
James L. Vandeberg    55    Director, partner in Vandeberg Johnson & Gandara, the
                            Company's legal counsel
------------------------------------------------------------------------------------
</TABLE>

Mr. Robertson and Ms. Lorette have served as directors of PrivCo since the June
1997 Annual Meeting. Mr. Vandeberg was elected a director of PrivCo in January
1999. All were elected directors of the Company in February 1999. Each director
will serve until the next annual meeting of shareholders and their respective
successors are elected and qualified. All officers currently devote part-time to
the operation of the Company.

Executive Officers, Directors and Other Significant Employees of the Company:

John G. Robertson - President, Principal Executive Officer and a member of the
Board of Directors

Mr. Robertson is a founder, President, Principal Executive Officer and a member
of the Board of Directors of PrivCo. Since October 1984, Mr. Robertson has been
President and a Director of Reg Technologies, Inc., a British Columbia
corporation trading on the Vancouver Stock Exchange that, in cooperation with
certain controlled affiliates, is engaged in developing a rotary engine and
other devices utilizing Rand Cam Technology. Since May 1980, Mr. Robertson has
been President and a Director of Teryl Resources Corp., a British Columbia
corporation trading on the Vancouver Stock Exchange and engaged in exploring and
developing gold properties.  Since February 1979, Mr. Robertson has been
President and Director of Flame Petro-Minerals Corp., a British Columbia
corporation trading on The Alberta Stock Exchange and engaged in exploration of
oil, gas and gold properties. Mr. Robertson is President, a director and CEO of
IAS Communications, Inc., an Oregon corporation traded over the

                                       27
<PAGE>

counter in the United States that has developed a television antenna which is
14" in diameter and only 2 inches high that can replace existing outside log
periodic antennas and has the capability of receiving local television stations
within a 60-mile radius.

Jennifer Lorette - Executive Vice President, Secretary/Treasurer, Principal
Financial Officer and Principal Accounting Officer

Ms. Lorette is a founder, Secretary/Treasurer, Principal Financial Officer and
Principal Accounting Officer of PrivCo.  Since April 1994, Ms. Lorette has been
Vice President of Administration of Reg Technologies Inc.  Since June 1994, Ms.
Lorette has been a Vice President of REGI U.S. and Chief Financial Officer and
Vice President of Flame Petro-Minerals Corp.  From February 1994 to April 1994,
Ms. Lorette was an executive assistant at Reg Technologies, Inc.  Ms. Lorette is
also Secretary/Treasurer of IAS Communications, Inc.

James L. Vandeberg - Director

Mr. Vandeberg is a partner in the Seattle, Washington law firm of Vandeberg
Johnson & Gandara.  He has served as counsel to the Company since 1996.  Mr.
Vandeberg graduated cum laude from the University of Washington with a Bachelor
of Arts degree in accounting in 1966, and from New York University School of Law
in 1969, where he was a Root-Tilden Scholar.  He became a member of the
Washington Bar Association in 1969 and of the California Bar Association in
1973.  Mr. Vandeberg's practice focuses on the corporate finance area, and he
specializes in securities and acquisitions.  He is a member and former director
of the American Society of Corporate Secretaries.  Mr. Vandeberg was previously
general counsel and secretary of two NYSE companies and is a director of IAS
Communications, Inc.

Cristian Rodriguez - Manager of Information Systems and Senior Network System
Administrator

Mr. Rodriguez is 28 years old. He is the Manager of Information Systems and
Senior Network System Adminstrator of the Company, and has held that position
since joining the Company in 1996. Prior to that Mr. Rodriguez was a private
consultant assisting clients with Internet services, networking and computer
hardware. Mr. Rodriguez attended Vancouver Film School and received a
Certificate for 3D Animation.

Kevin Brook - President Toronto Operating Unit

Mr. Brook is 40 years old. He is President of the Toronto operating unit, and
has held that position since joining the Company in 1997. Prior to joining the
Company he was a vice president at Bell Canada in the Global Link division.

Jack Wasserman - Vice-President Toronto Operating Unit

Mr. Wasserman is 50 years old. He is Vice-President of the Toronto operating
unit and has held that position since joining the Company in 1995. Prior to that
Mr. Wasserman was an accountant with World Tel (Toronto) Internet, Inc. Mr.
Wasserman received his accounting designation with Arthur Andersen and Company,
in 1976 in the province of Ontario.

Item 6.  Executive Compensation


Item 10, Executive Compensation, on pages 42 through 45 of the Company's annual
report on Form 10-KSB for the fiscal year ended May 31, 1999, is hereby
incorporated by reference as though set forth here in its entirety.

                                       28
<PAGE>


Item 7.  Certain Relationships and Related Transactions


Item 12, Certain Relationships and Related Transactions, on pages 46 through 47
of the Company's annual report on Form 10-KSB for the fiscal year ended May 31,
1999, is hereby incorporated by reference as though set forth here in its
entirety.

Item 8.  Description of Securities

The authorized capital stock of the Company consists of 50,000,000 shares of
Common Stock, $0.0001 par value per share and 10,000,000 shares of Class A
Preferred Stock, $0.0001 par value per share.

The holders of shares of common stock are entitled to dividends, out of funds
legally available therefore, when and as declared by the Board of Directors.
The Board of Directors has never declared a dividend and does not anticipate
declaring a dividend in the future.  Each outstanding share of common stock
entitles the holder thereof to one vote per share on all matters and cumulative
voting is not provided for in connection with the election of the Board of
Directors.  The holders of the shares of common stock have no preemptive or
subscription rights.

The holders of shares of common stock of the Company do not have cumulative
voting rights, which means that the holders of more than 50% of such outstanding
shares, voting for the election of directors, can elect all of the directors to
be elected, if they so choose, and, in such event, the holders of the remaining
shares will not be able to elect any of the Company's directors.

The Class A Preferred Stock may be issued in series from time to time with such
designation, rights, preferences and limitations as the Board of Directors may
determine by resolution.  The Board of Directors could use an issuance of Class
A Preferred Stock with dilutive or voting preferences to delay, defer or prevent
a change in control of the Company.  In addition, the concentration of control
over the Company's common stock in the Directors and Executive Officers could
prevent any change in control of the Company not acceptable to the existing
Directors and Executive Officers.

                                       29
<PAGE>

                                    PART II

Item 1.  Market Price of and Dividends on the Company's Common Equity and Other
         Shareholder Matters


There is a limited public market for the Common Stock of the Company which
currently trades on the OTC Bulletin Board under the symbol "IHWY" where it has
been traded since February 24, 1999.  The high and low bid prices for the
Company's stock each quarter, through May 31, 1999, as reported by Nasdaq
Trading & Market Services, are as follows:

<TABLE>
<CAPTION>
                                          Bid Price
                                       High       Low
                                       -----     -----
<S>                                  <C>        <C>
Quarter ended February 28, 1999      $ 7.375    $0.00
Quarter ended May 31, 1999           $12.50     $3.375
</TABLE>

These quotations reflect inter-dealer prices, without retail mark-up, mark-down
or commission and may not represent actual transactions.

As of August 31, 1999, there were 6,868,901 shares of Common Stock outstanding,
held by 169 shareholders of record and by various broker/dealers on behalf of an
indeterminate number of street name shareholders. As of August 31, 1999,
1,327,666 shares of common stock were subject to issuance pursuant to
outstanding options at prices ranging from $0.50 to $5.00 per share and 632,150
shares of common stock were subject to issuance pursuant to outstanding warrants
at prices ranging from $1.00 to $6.00 per share. The Company has not issued any
other securities convertible into common stock.

To date the Company has not paid any dividends on its Common Stock and does not
expect to declare or pay any dividends on such Common Stock in the foreseeable
future.  Payment of any dividends will be dependent upon future earnings, if
any, the financial condition of the Company, and other factors as deemed
relevant by the Company's Board of Directors.

Item 2.  Legal Proceedings


Item 3, Legal Proceedings, on page 12 of the Company's annual report on Form 10-
KSB for the fiscal year ended May 31, 1999, is hereby incorporated by reference
as though set forth here in its entirety.

Item 3.  Changes in and Disagreements with Accountants on Accounting and
         Financial Disclosure

None

Item 4.Recent Sales of Unregistered Securities

Set forth below is information regarding the issuance and sales of securities of
the Company without registration during the past three years. No such sales
involved the use of an underwriter and no commissions were paid in connection
with the sale of any securities.


(a)  Beginning March 31, 1999, the Company conducted an offering of units
     pursuant to an Offering Memorandum.  Each unit consisted of one common
     share, one Series "A" Warrant to acquire one additional share at $4.00 per
     share expiring April 30, 2000, and one Series "B" Warrant to acquire one
     additional share at $6.00 per share expiring April 30, 2001.  The offering
     was completed on August 11, 1999.  On completion of the offering, a total
     of 129,750 units were issued at $4.00 per unit for total proceeds of
     $519,000.  Through May 31, 1999, 5000 units were issued at $4.00 per unit
     for total proceeds of $20,000.  The offer and sale of the units were exempt
     from registration under Rule 506 under and Section 4(2) of the Securities
     Act of 1933.  The Company furnished to purchasers in a timely manner an
     Offering Memorandum and financial information, limited the manner of the
     offering, promptly filed notices of sales, and limited the number of non-
     accredited investors to 5 investors. If the foregoing exemptions are not

                                       30
<PAGE>


     available, the Company believes that $72,600 of these sales were also
     exempt under Regulation S under the Securities Act of 1933, as amended, due
     to the foreign nationality of the relevant purchasers.

(b)  In connection with the reorganization of the Company in February 1999, the
     Company assumed contractual obligations of one of its subsidiaries under
     outstanding warrants to issue shares of common stock for $1.00 per share.
     During the quarter ended May 31, 1999, the Company issued 270,300 shares
     pursuant to warrants exercised at $1.00 per share for total proceeds of
     $270,300.  The sale of the shares was exempt from registration under
     Regulation S and under Rule 506 under and Section 4(2) of the Securities
     Act of 1933. The Company provided disclosure to each of the warrant holders
     in connection with the reorganization of Information Highway, Inc. ("IHI")
     and the Company. Each of the warrant holders owned shares of IHI that they
     have now exchanged for shares of the Company. Through May 31, 1999, the
     Company issued shares to 30 purchasers, of which 7 were accredited
     investors and 6 were foreign citizens whose purchases were covered by
     Regulation S. Through September 30, 1999, when the Company determined not
     to issue any further shares to non-accredited investors pursuant to the
     warrants until such time as the shares could be registered, the Company
     issued shares to 45 purchasers, of which 7 were accredited investors and 7
     were foreign citizens whose purchases were covered by Regulation S. All of
     the shares issued pursuant to the warrant exercises bear a legend
     indicating that they are restricted securities. $53,000 of these sales were
     exempt under Regulation S under the Securities Act of 1933, as amended, due
     to the foreign nationality of the relevant purchasers.

(c)  During the quarter ended May 31, 1999, the Company issued 237,334 shares
     pursuant to options exercised at between $0.50 and $0.75 per share for
     total proceeds of $125,500. The sale of the shares was exempt from
     registration under Rule 701 under Section 3(b) of the Securities Act of
     1933. The sales were made on exercise of grants under the Company's written
     stock option plan, a copy of which the Company has provided to its
     participants. The 150,000 shares issued to John Robertson were also exempt
     from registration under Rule 506 under and Section 4(2) of the Securities
     Act of 1933. Mr. Robertson is an accredited investor by virtue of his
     positions with the Company as a director and executive officer. If the
     foregoing exemptions are not available, the Company believes that all
     $125,500 of these sales were also exempt under Regulation S under the
     Securities Act of 1933, as amended, due to the foreign nationality of the
     relevant purchasers.

(d)  On February 23, 1999 the Company issued a total of 499,000 shares of common
     stock to certain shareholders of PrivCo in exchange for 499,000 shares of
     IHI. The issuance of the common

                                      31
<PAGE>


     stock was exempt from registration under Rule 504 of Regulation D under
     Section 3(b) of the Securities Act of 1933, as amended. The Company's
     shares were valued at $0.75 per share, the price per Unit that IHI had
     obtained in its most recent offering of securities, in which IHI offered
     Units consisting of one share of unrestricted common stock and one warrant
     for $0.75 per Unit. If the exemption under Rule 504 of Regulation D is not
     available, the Company believes that this offering was also exempt under
     Regulation S and Section 4(2) under the Securities Act of 1933, as amended,
     due to the foreign nationality of the relevant shareholders of IHI, their
     prior contacts with IHI and its management, and the limited number of
     investors (four).

(e)  On February 23, 1999, the Company issued a total of 2,736,000 shares of
     common stock to certain shareholders in exchange for 2,736,000 shares of
     IHI common stock. The issuance of the shares was exempt from registration
     under Rule 506 of Regulation D, Regulation S and Section 4(2) of the
     Securities Act of 1933, as amended, due to the foreign nationality of the
     relevant shareholders of IHI, their prior contacts with IHI and its
     management, and the limited number of investors (six).

(f)  On February 23, 1999 the Company began an offer to certain shareholders of
     IHI to exchange 834,000 shares of their unrestricted IHI common stock for
     834,000 shares of the Company's common stock exempt from registration under
     Rule 504 of Regulation D under Section 3(b) of the Securities Act of 1933,
     as amended. Upon discovery that three investors who had made deposits in
     the IHI offering set forth in item (a) below had not been issued their IHI
     shares, this offering was expanded to 854,000 shares to include the 20,000
     shares purchased by those investors. Of the 20,000 shares identified,
     15,000 were issued in the fiscal year ended May 31, 1999, and 5,000 were
     issued after May 31, 1999. The Company's shares were valued at $0.75 per
     share, the price per Unit that IHI had obtained in its most recent
     offering of securities, in which IHI offered Units consisting of one
     share of unrestricted common stock and one warrant for $0.75 per Unit. As
     of August 31, 1999, all but 37,000 shares had been exchanged. The
     offerees consisted of the IHI shareholders who purchased units in IHI as
     described in item (a), below, and two affiliates who had acquired IHI
     shares in the Yes IC acquisition (February 1997). If the exemption under
     Rule 504 of Regulation D is not available, the Company believes that
     221,000 shares (which includes the shares of the two affiliates) from this
     offering will also be exempt under Regulation S due to the foreign
     nationality of the shareholders.

(g)  On February 23, 1999, the Company began an offer to certain shareholders of
     IHI to exchange 1,570,650 shares of their restricted IHI common stock
     for 1,570,650 shares of the Company's common stock exempt from registration
     under Rule 506 of Regulation D, Regulation S and Section 4(2) of the
     Securities Act of 1933, as amended. The Company furnished to purchasers in
     a timely manner an Exchange Offering Memorandum and financial information,
     limited the manner of the offering, promptly filed notices of sales, and
     limited the number of domestic non-accredited investors to 2. If the
     exemptions under Rule 506 and Section 4(2) are not available, the Company
     believes that 1,151,000 shares from this offering will also be exempt under
     Regulation S due to the foreign nationality of the shareholders.

(h)  In February 1999, the Company issued 5,000 shares to David Williamson
     Associates Ltd. for marketing and investor relations services in the UK.
     The offer and sale of the shares were exempt from registration under
     Section 4(2) of the Securities Act of 1933. If the foregoing exemption is
     not available, this sale was exempt under Regulation S under the Securities
     Act of 1933 due to the purchaser's foreign nationality.

(i)  In March 1999, the Company issued 10,000 shares to its affiliate Access
     Information Services in exchange for services rendered. The offer and sale
     of the shares were exempt from registration under Section 4(2) of the
     Securities Act of 1933. If the foregoing exemption is not available, this
     sale was exempt under Regulation S under the Securities Act of 1933 due the
     foreign nationality of the ultimate beneficial owners of Access Information
     Services.

(j)  In March 1999, the Company issued 3,000 shares to Erik Lagerway in
     connection with its acquisition of Mr. Lagerway's Internet portal telephony
     businesses. The offer and sale of the shares were exempt from registration
     under Section 4(2) of the Securities Act of 1933. If the foregoing
     exemption is not available, this sale was exempt under Regulation S under
     the Securities Act of 1933 due the foreign nationality of the purchaser.


In addition, set forth below is information regarding the issuance and sales of
securities of Information Highway, Inc. without registration during the past
three years.  No such sales involved the use of an underwriter and no
commissions were paid in connection with the sale of any securities.

                                       32

<PAGE>


(a)  In January 1999, IHI concluded an offering of units pursuant to an
     Offering Memorandum.  Each unit consisted of one common share and one
     warrant to acquire an additional share at $1.00 per share by December 30,
     1999. Due to a mixup in connection with changing its bank, the Company
     inadvertently overlooked deposits of $15,000 received during the offering
     for an additional 20,000 units. Including these units that should have
     been issued at the closing of the offering, a total of 754,000 units were
     issued at $0.75 per unit for total proceeds of $565,500. The offer and sale
     of the units were exempt from registration under Rule 504 of Regulation D
     under Section 3(b) of the Securities Act of 1933. If the exemption under
     Rule 504 of Regulation D is not available, $90,750 of these sales were
     exempt under Regulation S under the Securities Act of 1933 due to the
     foreign nationality of the purchasers.

(b)  In April 1998, IHI concluded an offering of units pursuant to an Offering
     Memorandum.  Each unit consisted of one common share and one warrant to
     acquire an additional share at $1.00 per share by December 30, 1999.  On
     completion of the offering, a total of 139,650 units were issued at $0.75
     per unit for total proceeds of $100,987.50.  The offer and sale of the
     units were exempt from registration under Rule 504 and Rule 506 of
     Regulation D under Sections 3(b) and 4(2), respectively, of the Securities
     Act of 1933.  IHI furnished to purchasers in a timely manner an Offering
     Memorandum and financial information, limited the manner of the offering,
     promptly filed notices of sales, and limited the number of non-accredited
     investors to 1 investor.

(c)  In December 1996, IHI commenced an offering of common stock pursuant to an
     Offering Memorandum.  On completion of the offering in March 1997, a total
     of 500,000 shares were issued at $0.50 per share for total proceeds of
     $250,000.  The offer and sale of the units were exempt from registration
     under Rule 504 and Rule 506 of Regulation D under Sections 3(b) and 4(2),
     respectively, of the Securities Act of 1933.  IHI furnished to purchasers
     in a timely manner an Offering Memorandum and financial information,
     limited the manner of the offering, promptly filed notices of sales, and
     limited the number of non-accredited investors to 14 investors.  If the
     foregoing exemptions are not available, $89,750 of these sales were exempt
     under Regulation S under the Securities Act of 1933 due to the foreign
     nationality of the purchasers.

(d)  IHI conducted three acquisitions that were exempt from registration under
     Regulation S under the Securities Act of 1933 due to the foreign
     nationality of the persons who accepted shares of IHI in exchange for their
     holdings in the acquired companies:
     (i)   In February 1997, of YesIC, Communications, Inc., in exchange for the
           issue of 3,105,000 shares to 17 foreign persons;
     (ii)  In February 1997, of World Tel, Internet (Toronto) Ltd., in exchange
           for the issue of 387,000 shares to 5 foreign persons; and
     (iii) In December 1996, of Blue Crow Internet Company, Ltd., in exchange
           for the issue of 149,000 shares to 4 foreign persons.

     If the exemption under Regulation S under the Securities Act of 1933 due to
     the foreign nationality of the persons who accepted shares of IHI in
     exchange for their holdings in the acquired companies is not available, the
     Company believes that each of the offerings is exempt under Rule 506 under
     Section 4(2) of the Securities Act of 1933 and that offerings (ii) and
     (iii) are exempt under Rule 504 under Section 3(b) of the Securities Act of
     1933.

                                       33
<PAGE>


(e)  IHI conducted an offering to its founders, some of whom purchased through
     controlled affiliates, beginning in December 1996. On completion of the
     offering in March 1997, a total of 600,000 shares were issued at $0.10 per
     share for total proceeds of $60,000. The offer and sale of the shares were
     exempt from registration under Rule 504 and Rule 506 of Regulation D under
     Sections 3(b) and 4(2), respectively, of the Securities Act of 1933, and
     under Section 4(2) of the Securities Act of 1933. If the foregoing
     exemptions are not available, these sales were exempt under Regulation S
     under the Securities Act of 1933 due to the foreign nationality of the
     purchasers or their ultimate beneficial owners.

(f)  In April 1997, Mr. Robertson purchased 1,000 shares at $0.50 per share,
     which he then gifted to a family friend as a bar mitzvah present.  In
     October 1996 Mr. Robertson purchased 15,000 shares at $0.10 per share as a
     founder of IHI.  The offer and sale of the shares were exempt from
     registration under Rule 506 of Regulation D under Section 4(2) of the
     Securities Act of 1933 and under Section 4(2) of the Securities Act of
     1933.  If the foregoing exemptions are not available, these sales were
     exempt under Regulation S under the Securities Act of 1933 due Mr.
     Robertson's foreign nationality.

Item 5.  Indemnification of Directors and Officers

The Company's Articles of Incorporation provide that the Company must indemnify
its directors and officers, to the fullest extent permitted under the Florida
Business Corporation Act against all liabilities incurred by reason of the fact
that the person is or was a director or officer of the Company or a fiduciary of
an employee benefit plan, or is or was serving at the request of the Company as
a director or officer, or fiduciary of an employee benefit plan, of another
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise.

The effect of these provisions is potentially to indemnify the Company's
directors and officers from all costs and expenses of liability incurred by them
in connection with any action, suit or proceeding in which they are involved by
reason of their affiliation with the Company.

                                       34

<PAGE>

                                   PART F/S

Consolidated Financial Statements


If Regulation S-B Item 310(g)(1) requires or permits the Company to include in
this Form 10-SB the financial statements included in the Company's Form 10-KSB
for the fiscal year ended May 31, 1999, then that portion of Item 7, Financial
Statements, under the caption Index to Consolidated Financial Statements, on
page 24 of the Company's annual report on Form 10-KSB for the fiscal year ended
May 31, 1999, is hereby incorporated by reference as though set forth here in
its entirety.

If Regulation S-B Item 310(g)(1) does not require or permit the Company to
include in this Form 10-SB the financial statements included in the Company's
Form 10-KSB for the fiscal year ended May 31, 1999, then the following Index to
Consolidated Financial Statements applies:

                  Index to Consolidated Financial Statements

<TABLE>
<S>                                                                                               <C>
Report of Independent Auditors............................................................        F-1

Consolidated Balance Sheets as of February 28, 1999 (unaudited), May 31, 1998 and 1997....        F-2

Consolidated Statements of Operations For the Quarters and For the Nine Months
Ended February 28, 1999 and 1998 (unaudited) and For the Year Ended May 31, 1998
and the Period from October 15, 1996 (Date of Inception) to May 31, 1997..................        F-3

Consolidated Statements of Changes in Stockholders' Equity Accumulated
from October 15, 1996 (Date of Inception) to February 28, 1999............................        F-4

Consolidated Statements of Cash Flows for the Nine Months Ended February 28, 1999
and 1998 (unaudited) and For the Year Ended May 31, 1998 and the Period from
October 15, 1996 (Date of Inception) to May 31, 1997......................................        F-6

Notes to the Consolidated Financial Statements (unaudited as to information
subsequent to May 31, 1998)...............................................................  F-7 - F-14
</TABLE>

                                       35
<PAGE>

                                    PART III

Item 1.  Index to Exhibits


<TABLE>
<CAPTION>
  Exhibit No.                                 Description                                Page No.
--------------   --------------------------------------------------------------------   ---------
    <S>          <C>                                                                    <C>
     2.1*        Articles of Incorporation, restated as amended on February 23, 1999
                  and November 1, 1989

     2.2*        Bylaws

     3.1*        Specimen Share Certificate for Common Stock

     3.2*        Form of Warrants

     3.3*        Stock Option Plan

     3.4*        Form of Stock Option Agreement

     3.5         Form of Warrants

     6.1**       VPOP Service Agreement between MetroNet Communications and YesIC
                  Communications

     6.2**       Level 3 Communications Terms and Conditions for Delivery of Service

     6.3**       ADSL Service Agreement dated August 24, 1999, by and between Bell
                  Atlantic Network Integration, Inc. and Information-Highway.com, Inc.

     8.1*        Agreement and Plan of Reorganization between the Company and
                  Information Highway, Inc.

    12.1**       Annual report on Form 10-KSB for the fiscal year ended May 31, 1999

    27.1***      Financial Data Schedule
</TABLE>

*         Previously filed.

**        Incorporated by reference from the Company's annual report on Form 10-
          KSB for the fiscal year ended May 31, 1999, filed with the Securities
          and Exchange Commission on October 6, 1999.

***       Previously filed or incorporated by reference from the Company's
          annual report on Form 10-KSB for the fiscal year ended May 31, 1999,
          filed with the Securities and Exchange Commission on October 6, 1999,
          or incorporated by reference from the Company's quarterly report on
          Form 10-QSB for the quarterly period ended February 28, 1999, filed
          with the Securities and Exchange Commission on September 10, 1999.

                                       36

<PAGE>

                                   SIGNATURES

Pursuant to the requirements Section 12 of the Securities Exchange Act of 1934,
the Registrant has duly caused this report or amendment to be signed on its
behalf by the undersigned, thereunto duly authorized.

INFORMATION-HIGHWAY.COM, INC.

                                    By: /s/ John G. Robertson
                                        ---------------------
                                      John G. Robertson, President
                                      Chief Executive Officer and Director

Dated:  October 11, 1999

                                       37