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


                                   FORM  10-KSB


(MARK  ONE)
[X]  ANNUAL  REPORT  PURSUANT  TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
                                ACT  OF  1934
                       FOR THE FISCAL YEAR ENDED JUNE 30, 2003
                                          OR
     TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(D)  OF THE SECURITIES
EXCHANGE  ACT  OF  1934

                    FOR THE TRANSITION PERIOD FROM ______TO ______


                            COMMISSION FILE NUMBER 0-26375


                   MILITARY COMMUNICATIONS TECHNOLOGIES, INC.
               (Exact name of registrant as specified in charter)


                          DELAWARE                     84-14762120
            (State or other jurisdiction of          (I.R.S. Employer
           incorporation or organization)          Identification No.)

       2222 MICHELSON AVE SUITE 477, IRVINE, CA     92612        949-622-5508
  (Address of principal executive offices)      (Zip Code)     (Telephone No.)

           SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:

                                                NAME OF EACH EXCHANGE
                TITLE OF EACH CLASS               ON WHICH REGISTERED
                -------------------               -------------------

       COMMON STOCK, PAR VALUE $0.001 PER SHARE     OTC BULLETIN BOARD

          Indicate  by  check  mark  whether  the  registrant  (1) has filed all
reports  required  to be filed by Section 13 or 15(d) of the Securities Exchange
Act  of 1934 during the preceding 12 months (or for such shorter period that the
registrant  was required to file such reports), and (2) has been subject to such
filing  requirements  for  the  past  90  days.  Yes  [X]    No  [ ]

          Indicate  by check mark if disclosure of delinquent filers pursuant to
Item  405  of Regulation S-K is not contained herein, and will not be contained,
to  the  best  of  registrant's  knowledge,  in  definitive proxy or information
statements  incorporated  by  reference  in  Part  III  of this Form 10-K or any
amendment  to  this  Form  10-K.   [X]

<PAGE>

          Indicate  by check mark whether the registrant is an accelerated filer
(as  defined  in  Rule  12b-2  of  the  Act).  Yes [X]  No  [ ]

     As  of  September  15,  2003, 125,843,329 Shares of the Registrant's Common
Stock  were  outstanding.  The  aggregate  market  value  of voting stock of the
Registrant  held  by  non-affiliates  was  approximately  $10,975,815

                       DOCUMENTS INCORPORATED BY REFERENCE

None

<PAGE>

                                TABLE OF CONTENTS
                                                                            PAGE
PART  I

Item 1.     Business                                                         3
Item 2.     Properties                                                      20
Item 3.     Legal Proceedings                                               20
Item 4.     Submission of Matters to a Vote of Security Holders             21

PART  II

Item 5.     Market for the Registrant's Common Equity and Related
            Stockholder Matters                                             22
Item 6.     Selected Financial Data                                         22
Item 7.     Management's Discussion and Analysis of Results of Operations   22
Item 7A     Quantitative and Qualitative Disclosures About Market Risk      22
Item 8.     Financial Statements and Supplementary Data                     22
Item 9.     Changes in and Disagreements with Accountants on
            Accounting and Financial Disclosure                             22

PART  III

Item 10.     Directors and Executive Officers of the Registrant             23
Item 11.     Executive Compensation                                         24
Item 12.     Security Ownership of Certain Beneficial Owners and
             Management                                                     24
Item 13.     Certain Relationships and Related Transactions                 24
Item 14.     Controls and Procedures                                        24

PART  IV

Item  15.     Exhibits, Financial Statement Schedules, and Reports
              on Form 8-K                                                   25
Signatures                                                                  30
Certifications  Pursuant  to  Section 302 of the Sarbanes-Oxley
Act of 2002                                                                 31

<PAGE>

PART  I

ITEM  1.  DESCRIPTION OF BUSINESS.

COMPANY  HISTORY

     The  Company  was initially incorporated in the State of Texas on March 18,
1994  under  the name of American/National Trucking, Inc.  On August 28, 1998, a
Colorado corporation was merged into the Company and the name of the Company was
changed to Makepeace Capital Corp.  Makepeace specialized in the contracting and
management  of  the  construction of commercial properties and retail homes.  On
August  17,  2000 the Company entered into a share exchange agreement to acquire
99%  of  NetSalon  Corporation ("Legacy NSLN"), whereby MKPC changed its name to
NetSalon  and  Legacy  NetSalon continued operating as a subsidiary with the new
Corporate  name  of  NetSalon  I,  Inc.  ("NSLN  I").

     NetSalon  as  a  Corporation  was formed in 1998 as a multi level marketing
company.  Upon  the  acquisition  of  Makepeace, the company abandoned the multi
level  marketing business and began focusing its attention on the development of
enterprise  software  solutions  and consultation to other multi level marketing
companies  to  provide  development  and  maintenance of ecommerce suites.  That
business  was  operated  through  a  wholly  owned  subsidiary, NetSalon I, Inc.

     On December 2, 2002, the Company entered into an Acquisition Agreement with
Global  Investments Fund Pty, Ltd., an Australian corporation, which resulted in
a  change  of  control of the Company as Global shareholders acquired 88% of the
NetSalon  common  stock  and  appointed  a  majority  of  the  directors.  Upon
completion  of  the  acquisition  by  Global,  the  Company  changed its name to
Military  Communications  Technologies,  Inc.  and  commenced  operating its new
telecommunications  business  as  more  fully  set  forth  below.

     The Company continued to operate the business of NetSalon I until September
12,  2003,  when the subsidiary was spun-off retroactive to June 30, 2003 to the
prior  management  of  NetSalon.

OVERVIEW

     Military  Communications  Technologies  Inc, ("MLTA" or the "Company") is a
holding  Company  headquartered  in  Irvine,  California,  which  distributes  a
wireless  operating  system.

     Upon  completion  of  the acquisition of the Company by Global Investments,
the Company initially had a 15% equity interest in Military SDR Technologies Pty
Ltd,  an Australian company  ("MSDRT").  This investment was increased to 20% in
August  2003.  MSDRT is primarily a research and development company involved in
the  development  of  the SpectruCellTM Operating System and the PC4 technology.
MLTA  will  market  and distribute these products exclusively in North and South
America  .

Company  Objectives

-     MLTA's  primary  objective  is  to  market,  distribute  and  license  a
revolutionary  new  Software  Defined  Radio  (SDR)  multiple  protocol wireless
operating  system  specifically  designed  for  leading  edge  mobile  network
applications  in  both  the  commercial  sector  and  the  Military and Homeland
security  markets.  The  SpectruCell  and  PC4 technologies are both proprietary
technologies.

<PAGE>

-     MLTA's  second  objective  is  to  represent  overseas  companies in North
America  and market innovative technology, which is allied to MLTA or MSDRT core
competencies  in  the  commercial  wireless  infrastructure markets and military
sectors;  and


CORE  TECHNOLOGY

     In  modern  mobile  telephony,  networks are comprised of a series of cells
linked back to a central processing/switching office. Within each of these cells
is a signal processing base station and associated antenna equipment designed to
both  receive  and  transmit  the  calls  made  by  customers  of  the  network.
SpectruCellTM  is a highly flexible mobile wireless base station product capable
of  simultaneously  supporting  multiple communications standards (protocols) on
the  one network.  Using a technology known as "software defined radio" ("SDR"),
SpectruCellTM  effectively  functions  like  a  computer with a generic hardware
platform,  a  communications  operating  system  and  application  software.

     SpectruCellTM  is  a revolutionary communications operating system designed
to  enable the development of mobile communications wireless base station/switch
built  on  SDR  principles.  A  SDR  platform  is an extremely powerful tool for
implementing  a  wireless  base  station  as  all  of  the processing is done in
software  as  opposed  to  hardware  (traditional  model).

     A  base  station  implemented using SpectruCellTM has the unique ability of
being  able  to  simultaneously  process  and  transmit  wireless communications
protocols  (which  presently  includes  various  technology  for  communications
protocols  known  as AMPS, CDMA, TDMA, GSM, W-CDMA, UMTS, 3G, Voice IP, etc.) as
well  as wireless Internet applications, all within one base station and network
infrastructure.

     Community and regulatory pressure to minimize network overbuild (especially
with  3G rollouts) is driving network operators to share network infrastructure.
A  SpectruCellTM  implemented  base  station  allows  network operators to share
infrastructure  and  operate  with  a  substantial  degree  of network autonomy.
Additionally SpectruCellTM provides an Application Publishable Interface ("API")
being  an  open  architecture  so  that  network  operators  can write their own
interfaces,  and  it  is  also  software  upgradeable  so that future additional
protocols  (UMTS,  3G,  etc.)  can  be easily added to an existing SpectruCellTM
implemented  base  station  by  uploading  another  software  module to the base
station.  SpectruCellTM  was  specifically  designed  for the global marketplace
having  a 25MHz front end capable of processing signals anywhere from 400 MHz to
2.9  GHz  which  covers all proposed 3G frequency ranges. It can also accept all
backbones  (wire,  fiber,  cable,  microwave,  satellite,  etc.).

     Network  operators  can seamlessly install a SpectruCellTM implemented base
station/switch  into  their  existing  2G  network  and  process  their existing
customer  base  while  at the same time providing an efficient migration path to
2.5G and 3G services with the addition of the appropriate SpectruCellTM software
modules.

     The  prototype  SpectruCellTM  operating system has demonstrated capability
with  the  currently  widely utilized communications protocols, CDMA (IS-95) and
GSM,  completely  without the use of any Qualcomm chipsets or any other protocol
specific  hardware.   Qualcomm's  CDMA  patents  are  primarily  based  around
hardware-defined  solutions  for implementing CDMA.  SpectruCellTM communication

<PAGE>

operating  system  patent  filings  are  based upon software radio solutions and
cover  many  protocols not just CDMA.  Elements of the proprietary SpectruCellTM
operating  system are now patent pending, the first two of many proposed patents
having been filed in October 2000, in the United States and another two filed in
Australia.

     The  SpectruCellTM  platform is comprised of a base hardware platform and a
software  operating  system  that controls the hardware. The hardware portion of
SpectruCellTM  uses  Commercial  Off  The  Shelf  ("COTS")  componentry  with
proprietary  processing  cards.  The  COTS  hardware  used  is industry standard
equipment  and  sourced  from  manufacturers  worldwide.

     The  Company  is  finalizing  the  next  release  of  the  SpectruCellTM
demonstrator,  which will be completed in the first quarter of 2004.

Functionality  enhancements  will  include  the  following:

-     CDMA2000  Reference  Tool  Kit;
-     Middleware  incorporated  into  Digital  Signal  Processors  (DSP);
-     Debugging  tools  for  external  developers;  and
-     COTS  technology  insertions.

VOICE  OVER  IP

     SpectruCellTM  also  provides  an  ability  to  transmit  voice  telephone
communications known as voice over IP  ("VOIP") termination at the base station,
by  terminating  a  CDMA  call  utilizing a VOIP core network. The functionality
demonstrated  by  this  achievement  is  traditionally  implemented  in the Base
Station Controller ("BSC"). The VOIP alternative offers significant cost savings
and  many  technical  advantages  to network operators planning deployment of 3G
networks.

     This  new  development  of  existing  SpectruCellTM  technology extends the
functionality of the software defined CDMA base station application by including
a  VOIP codec in the base station. This allows a commercial handset to establish
a  phone  call  to  a  VOIP equipped base station. This demonstrates the dynamic
flexibility  of  the  SpectruCellTM  middleware  to add and control new software
modules  and  to  establish  new  data/voice channels without the need for major
re-engineering  of  the  software  application  or  hardware  platform.

     Many  network  operators  worldwide are migrating their core networks to IP
architecture for cost saving reasons. This is the first wireless base station to
eliminate the need for traditional network infrastructure.  A VOIP SpectruCellTM
base  station  can seamlessly sit on any existing Internet network to complement
and  expand  mobile  communications  infrastructure  on  a cost effective basis.

     As  mobile  network  providers  begin  the  migration to 3G high-speed data
networks,  the number of cell sites required increases dramatically (up to three
to four times the present number of cells and density required).  A major hurdle
in  rolling  out  these  new  networks  is  how to connect all of these new base
stations  to the rest of the network. Traditional mobile network architecture as
dictated  by  the usual Mobile Switching Center (MSC) and BSC structure does not
provide  the  same  level  of flexibility, and is dramatically more expensive to
establish and maintain than an Internet (IP) connection solution. By using an IP
connection  instead  of  the traditional approach, network operators can further
utilize  existing  dark  fiber (excess) and other traditional fixed transmission
infrastructure  to  provide a flexible and cost effective total digital wireless
solution  to  assist  with  the implementation of the migration to high-speed 3G

<PAGE>

networks.  This milestone confirms that it is now possible to terminate data and
voice  connections  directly  to a base station via an IP connection. Many major
network  operators worldwide have recognized the flexibility and cost savings of
a  core  IP  network  and  are  redeploying  their  conventional  fixed  core
infrastructure  in  this  fashion.  The  implantation of VOIP in the SpectruCell
suite  of  technologies brings this IP migration into the mobile wireless realm.

     This  technological  breakthrough  by  MSRT has beneficial implications for
mobile  network  providers, especially in regard to accelerating the time frames
for  deployment  of  3G infrastructure by enabling providers a greater degree of
flexibility  and  adaptability  to  utilize  excess  fixed  cable  and  wire
infrastructure  via  the  Voice  IP  framework  connection.

THE  PC4  TECHNOLOGY

     PC4  is  a  proprietary  framework  for  developing  wireless  applications
specifically  targeted  to  the demands of the military and Homeland Defense and
Security  agencies  for  large-scale  defense  grade  reconfigurable  wireless
communications  systems.  PC4  which  stands for Programmable, Command, Control,
Compute,  and  Communicate,  is  a next generation SDR framework and proprietary
operating  system  uniquely  designed  for interoperable, lightweight and mobile
military  communications systems.  The SDR framework is also especially suitable
for  radar  and  high-speed  digital  RF  surveillance  systems.

     The  PC4  operating  system  is  unique  and  has  been  patented by MLTA's
Australian  affiliate,  MSDRT.  The  Military  PC4  technology  enables  rapidly
deployed,  highly  mobilized  communications  between  forces  using  dissimilar
platforms.  The PC4 technology is ideally suited to a range of homeland security
projects;  inter service communications (Army/Navy/Air Force/Civilian), wireless
upgrades  and high-end signal processing applications (electronic warfare, etc.)

     The  PC4  operating  system is a framework to aid application developers in
getting  complex  communications systems to market quickly. The PC4 framework is
compatible  with  the Joint Tactical Radio System ("JTRS") and with the Software
Communications  Architecture  ("SCA") released by the JTRS Joint Program Office.


KEY  PRODUCT  DISCRIMINATORS

     With  this  open, modular and scalable implementation of SDR functionality,
SpectruCell  will:

-     Allow  commercial  and  military  third  party  application developers and
Original Equipment Manufacturers ("OEM") to configure communications networks to
meet a variety of additional functional and performance enhancements without the
need  to  replace  existing  hardware;
-     Lower  total network establishment cost, reduce ongoing support costs, and
extend  the  life  of  the  network;
-     Enable  flexible  migration  from  2nd  Generation  (2G)  through  to  3rd
Generation  (2.5G,  3G  &4G)  communications  protocols;
-     Support  operation  of  simultaneous processing of multiple communications
protocols  (CDMA,  GSM,  3g,  etc.)  on  the  same  SDR  base  station;
-     Support  Mobile  Virtual  Network Operations ("MVNO") - the use of one SDR
network  by  multiple  carriers  simultaneously;
-     Enable  standardized  open programming environments and interfaces ("API")
similar  to  Windows  environment  for  third  party application developers; and

<PAGE>

-     Lower  the  cost  of  complementary  and core product development by third
party  industry Developers and OEM's, thereby accelerating the time to market of
new  product  and  associated  applications.

COMMERCIAL  STRATEGY

The  Company  and  our  affiliate  MSDRT  have  met  with many telecommunication
companies  ("Telcos") and are in the process of consolidating relationships with
both commercial OEMs and defense organizations worldwide.  Our commercialization
strategy  is  directed  towards  using  partnerships  and  associations  to sell
know-how  and  license  the  SpectruCellTM  and PC4 operating system into mobile
communication base station manufacturers.

SALES  AND  MARKETING  OVERVIEW

     Significant  effort has been invested by the current MSDRT engineering team
over  the  last  4  years  in:
-     Raising  awareness of the capabilities of SDR and the advantages that such
technology development could achieve in the wireless communications value chain;
-     Qualifying  the  advancement  and  innovation  of  the  SpectruCellTM
communication operating system concepts and prototype developments (CDMA One and
GSM)  over  other  potential  rivals;
-     Quantifying  future  potential  total  market  size on regional and global
basis  in  terms  of  volume  and  potential  revenue  in commercial 3G cellular
communications;
-     Identifying  potential opportunities for SpectruCellTM technologies in the
Government  and  Defense  communications  industry  in  the  United  States  and
Australia;  and
-     Identifying  the  key  business  drivers  in  these  identified  wireless
communications  markets  that  would  be  eminently  addressed by SpectruCellTM.

     The  Company's  SDR  product  is ideally positioned to secure a significant
portion  of a multi-billion dollar market based on the compelling market trends,
MLTA  is  poised  to  be the first to market and therefore potentially a premium
supplier  of  SDR  products  and  services  in  the  two  chosen  markets.

     The  commercialization,  business development, sales and marketing campaign
consists  of:

-     Building awareness and knowledge amongst the key operators and OEMs within
the  United  States;  and
-     Teaming  with  OEMs  and technology providers with superior track records,
existent  marketing, engineering and logistics infrastructure to assist with the
commercialization  and  integration  of  SpectruCell and PC4 into communications
systems.

     The  Company  is  focusing  on  increasing  awareness  amongst  wireless
communication  stakeholders regarding the potential business outcomes realizable
with  the  SpectruCell  product.  The  SDR  technology  is  a shift from the way
network  operators  have  traditionally  costed  and considered network rollout,
network  upgrades,  support  and  maintainability  and other lifecycle costings.

     The  sales  and  marketing  strategy  is  based on exploiting the following
selling  benefits  of  the  SpectruCellTM  and  PC4  products:

-     Flexible,  Scalable,  Open  system;
-     Low  Cost  Life  Cycle  Maintenance;

<PAGE>

-     Migration  flexibility  including  3G  enabling;
-     Supports  Multiple  simultaneous  communications  protocols;
-     Supports  MVNO;
-     Standardized  programming  environment  and  interfaces;  and
-     Lower  cost  of  product  development,  quicker  time  to  market.

     The  Marketing and Sales strategy addresses the following key elements that
are vital considerations in the successful evolution of the business and revenue
streams:

-     Product  and  Services;
-     Promotion  and  Publicity  Plans;
-     Place  and  Distribution  Strategy;
-     Market/Competitive  Research;  and
-     Price  Strategy.

BUSINESS  DEVELOPMENT  PRIORITIES

     The  Company  in  the  near  term  is  finalizing negotiations in regard to
several  co-development agreements,  and technology partnerships consistent with
our  strategic  plan.  The  sales  and  marketing  staff oversee all the account
management and customer relationships and develop documented sales capture plans
that  are  communicated  across  the  entire  organization. This more formalized
approach assists the company in reaching delivery of revenue generating products
(through  Licensing  methods)  and other services at the earliest possible stage
and  have  presales  orders  to  coincide with product release from manufacture.
Essential  in  the success of the process is the qualification of the key future
business  drivers for operators and the demonstration of the value SpectruCellTM
gives  to  network  operators.

     Additional  sales  qualification  processes  are followed to prioritize the
potential  partnering  arrangements  and  any  near term business activities are
instigated  based upon the following key selection criteria (which help maximize
value  to  the  company):

-     Achieve  most  favorable delivery of revenue generating products/services;
-     Attract  additional  company  investments;
-     Lower  or  optimize the development costs to MSRT without risking dilution
of  current  or  future  values  to  the  Company  IP;
-     Attract  partial or full funding/cost recoveries for the development/trial
activities;
-     Access  to  markets/regions  that  are most likely to generate substantial
initial  volumes;  and
-     Maximize  level  of  flow-on  business.

     The  Sales and  Marketing processes have been introduced to provide focused
goal  driven  account  management  and detailed sales capture plans. These plans
allow  individual  and  integrated  order  acquisitions and agreed activities in
supporting  the  company's  strategic  plan  to  be  monitored.

PRODUCTS  AND  SERVICES

     Revenue  in  the  first 6 - 18 months will be sought, and maximized through
negotiation,  wherever  possible,  with  partners wishing to enter into trial or
demonstration/development  platforms, including initial Software Development Kit
(SDK)  offerings.

     We  anticipate  that  the bulk of the our potential revenue will be derived
through the software license fees and royalty payments together with the upgrade
and  maintenance  fees  for  the  following  core  products:

<PAGE>

-     SpectruCellTM  Communications  Operating  Systems;
-     PC4  Communications  Operating  Systems;
-     Future  upgrade  license  regime  -  improvements/functionality  upgrades;
-     Software  Development  Kits  ("SDK");
-     SDK  upgrades;  and
-     Reference  Code  &  Designs  (GSM,  CDMA, UMTS, etc. reference application
code).;
-     SDR  Hardware  Component  Reference  Designs  including:
          o     RF Up/Down Converters
          o     Analog to Digital Converters ("ADC") and Digital to Analog
                Converters ("DAC")
          o     Clock References

OTHER  POTENTIAL  REVENUE  OPPORTUNITIES

     Our  management  anticipates that the engineering resource of MSDRT will be
deployed for future product enhancement programs to provide solutions addressing
other  identified  market  demands  and delivers additional value to established
customer  base.

-     Military  enhancements  -  Surface  Wave Radar, Sonar, EW, Navigation etc;
-     Military  and  commercial  miniaturization  "System  On  A  Chip";  and
-     Technology  insertions  or  additions.

PROMOTION  AND  PUBLICITY

     Primary objectives of the marketing communications plan will be to maintain
awareness of the development progress, and achievements in establishing partners
and  or  investors.  The  program is intended to stimulate and maintain interest
and desire from key value chain stakeholders not part of the first tier of sales
targets.

     The  through life support and extended Life of Type cost advantages must be
well  publicized  to operators and OEM manufacturers who supply those operators.
Accordingly,  the  following  areas  will  be used for propagating the essential
marketing  messages:

-     Specialty  submissions  in industry publications will be secured to target
key  strategic,  financial  and  technical influences within global OEM/operator
environment;
-     Publicity  will  include  campaigns  of  press  releases  on  corporate
announcements,  technical  achievements,  customer  trial  results,  etc;
-     Conferences  and  exhibitions will be identified that provide the best and
most  cost  effective  access  to  target  audiences  in  global  regions;
-     Website development will occur that reflects the clean focused new company
image,  with  improved  technical  and  sales  content;  and
-     Internal  Company  communication  will  also  be  an  imperative  element.

A  process  has been established to review the most cost effective participation
and representation in technical, operator, and standards forums and associations
at  regional  and  international  level.

<PAGE>

COMPETITION

     Spectrum  Signal  Processing  (SSP)  is  a  Canadian  signal  processing
infrastructure  developer  with  a military background. Their primary market has
been  in  the  defense  industry  for  signals  intelligence  and  radar  signal
processing  sub-system componentry. They are however, approaching software radio
from a similar perspective as SDRT but without the same cellular industry focus.
Their  products suit a wider field of application (to make them fit for military
purpose)  and  as  such  do not fit the stringent commercial requirements of the
cellular  telecommunications  industry..  SSP  provides  Integrated  Systems,
Subsystems,  Boards,  and  Software  for Communications Infrastructure. As their
manufacturing  headquarters  is  North  American  based,  SSP  may have a slight
geographical  advantage  but  the  company  believes  they  have  a  significant
advantage  because  of  the  longer  development  lifecycle dedicated to the SDR
products  by  the Australian engineering team. The SDR-3000 product is presently
the  closest  threat  to  PC4.

     In  addition to SSP, other potential competitors could develop in either of
our  core  business  competencies.  The  existing  and/or future competitors may
includes  companies  that  have  substantially  more  resources  and  marketing
advantages  than us.  We cannot be sure that other competitors will not develop.

EMPLOYEES

     As  of September 30, 2003, the Company has no full time employees and three
full  time  consultants.  None  of our consultants are covered by any collective
bargaining  agreement.

ITEM  2.  DESCRIPTION  OF  PROPERTY

     During  the  past financial year NetSalon leased approximately 1,275 square
feet of office space at 2235 West 1st Street in Fort Myers, Florida, pursuant to
a  one-year  lease,  which  commenced  July  1,  2002. Additionally the landlord
provided  a 3.0 Meg broadband Internet circuit as part of the lease. The monthly
rent  is  approximately  $4,022.81.  NetSalon  also rented offices at 9850 South
Maryland  Parkway,  #5-155,  Las Vegas, NV 889123 at approximately $1,170.00 per
month.  Thess  leases  were  assumed by NetSalon I upon its divestment in August
2003.

     For  the  financial year ended June 30, 2003, MLTA shared office facilities
with  its  major  shareholder,  Global Investment Fund ("GIF") at 2222 Michelson
Ave,  Suite 477, Irvine CA 92625. No rent or facility use fee was charged to the
Company  by  GIF.  This  arrangement  continued  until October 1, 2003, when the
Company  entered  into  a  new  leasehold  arrangement.

     Effective  October  1,  2003, the Company entered into a six month lease at
19200  Von  Karman  Avenue, Suite 500, Irvine, CA 92625.  The lease provides for
rent  of  $2,000  per  month  and  is automatically renewable absent notice from
either  lessee  or  lessor.

ITEM  3.  LEGAL  PROCEEDINGS.

     The  Company  is  not  a  party to any material legal proceeding, except as
follows:

     In  January  2002,  James S. Williams filed a complaint against the Company
and  Mark  S. Manuel, a director of the Company, in the District Court of Harris
County,  Texas.  The  Complaint  alleges that the Company breached its agreement
dated September 15, 2000 to make monthly payments of $25,000 to Williams under a
promissory  note  in the amount of $536,700.  The Complaint seeks actual damages
of  $559,028,  prejudgment  interest  and  attorney's  fees.

<PAGE>

     During  November 2002, the Company entered into a Settlement Agreement with
Mr.  Williams,  which provides as follows:  The Company agreed to the entry of a
judgment  against  it  in  the amount of $534,445 together with interest thereon
from  April 13, 2001 at the rate of 9% per annum.  Williams agreed that he would
not  execute  upon  the  judgment until November 20, 2003 except pursuant to the
terms  of the Agreement.  Mark Manuel is to deliver 3,000,000 shares of NetSalon
common  stock  owned  by Mr. Manuel, and such shares are to be held in escrow by
Mr.  Williams'  attorney.  The  agreement  provided  that  in the event that the
Company  completed  its  proposed  transaction  with Global Investments Fund Pty
Ltd.,  an  Australian  corporation, certain shareholders of the Company would be
required to cancel 9,630,900 shares leaving 10,000,000 shares outstanding before
the  closing.  Since  this  transaction  closed,  of the ten million shares, Mr.
Williams  keeps  one  million  of  the escrow shares in full satisfaction of the
judgment debt and the other two million shares his attorney is holding in escrow
will  be cancelled.  On January 24, 2003 a final agreement was entered into with
Global  Investment  Funds  Pty  Ltd,  as  such  the note payable of $534,445 was
settled  and Mr. Williams was issued one million shares from escrow.  Subsequent
to  the  completion  of  this  transaction 1,200,000 shares were released to Mr.
Williams  in  consideration  for  the  judgment  amount  of $534,445 and accrued
interest  from  April  13,  2001  totaling  $86,858.00__

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

     Effective  January  24,  2003  the Company's Board of Directors approved an
agreement  that  provided  for  the  cancellation  of  7,741,668  shares  of the
Company's  common  stock  and  the  issuance  of  88,060,768  new  shares of the
Company's  common stock.  In addition, the Company agreed to obtain conversions,
releases  or other agreements such that the outstanding liabilities, obligations
and  other  debts,  direct or indirect, contingent or existing, should not be no
more  than  $340,000.  The  Company  agreed  to  change  its  name  to "Military
Communications Technologies, Inc.," elect a specified list of five directors and
cause  its  shareholders to increase the authorized common stock to 200,000,000.
Subsequent  to the increase in authorized common stock, an additional 19,293,320
shares of common stock of the Company shall be issued.  The transaction resulted
in  a  change  in  control  of  the  Company.

     As  of  September  30,  2003,  the  Company has not been able to reduce its
liabilities  to  the  $340,000.  The  contract also required that all income tax
returns of the company be filed currently.  As of June 30, 2003, the returns had
not  been  filed.  The  Company does not anticipate any tax liability because of
its  net  operating  loss  carryover.

     On  March  17,  2003,  the  Company  mailed  or  otherwise furnished to its
stockholders  in  connection with the prior receipt by the Board of Directors of
approval by written consent of the holders of a majority of the Company's Common
Stock  (the  "Voting  Capital  Stock") of proposals  (i) to approve an amendment
to  the  Certificate of Incorporation to increase the authorized common stock to
200,000,000  shares  from 100,000,000 shares, par value $.001 per share; (ii) to
approve  an  amendment  to  the  Certificate  of Incorporation of the Company to
change  the  name  of the Company to Military Communications Technologies, Inc.;
and  (iii)  to  confirm  the election of seven persons to the Company's board of
directors.  The  Board  nominated  Michael  Roux,  Lance  A. Perry, Peter Hayes,
Charles  Wantrup,  Roger  May,  and David Lockwood as directors, each to serve a
one-year  term  until  the  2004  annual  meeting  of  shareholders or until the
director's  earlier  resignation  or  removal.


<PAGE>

PART  II

ITEM  5.  MARKET  FOR  COMMON  EQUITY  AND  RELATED  STOCKHOLDER  MATTERS

     PRINCIPAL MARKET OR MARKETS.  The Company's Common Stock has been quoted on
the  over-the-counter  bulletin  board since the first quarter of 2003 under the
symbol  "MLTA."  The  previous symbol on the over-the-counter bulletin board for
the  Company  was  NSLN.

     The  following  table sets forth the closing prices of the Common Stock for
the  periods indicated, as reported by the over-the-counter bulletin board.


QUARTER ENDED          HIGH     LOW
-------------          ----     ---


September 30, 2001     0.51     0.06
December 31, 2001      0.07     0.02
March 30, 2002         0.18     0.03
June 30, 2002          0.08     0.04

September 30, 2002     0.06     0.03
December 31, 2002      0.24     0.01
March 30, 2003         0.30     0.10
June 30, 2003          0.30     0.07
September 30, 2003     0.45     0.10

     APPROXIMATE  NUMBER  OF  HOLDERS  OF COMMON STOCK: The number of holders of
record  of  the  Company's  common stock at September 30, 2003, was 1,196.  This
does  not  include shares held in street name, and consequently we may have many
additional  shareholders.

     DIVIDENDS:  The  Company has paid no cash dividends on its Common Stock and
has no present intention of paying cash dividends in the foreseeable future.  It
is  the  present  policy  of  the  Board  of Directors to retain all earnings to
provide  for the growth of the Company.  Payment of cash dividends in the future
will  depend,  among  other  things,  upon  the  Company's  future  earnings,
requirements  for  capital  improvements  and  financial  condition.

     PRIVATE  SALES  OF  SECURITIES: Except with respect to the shares issued to
GIF  in  connection  with  its  acquisition of the Company (more fully set forth
above),  during  the  year  ended  June  30,  2003, the Company did not sell any
securities,  which  were  not  registered  under  the Securities Act of 1933, as
amended.


ITEM  6.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATIONS

     The  following  discussion should be read in conjunction with the financial
statements  and  notes attached to this document. The forward-looking statements
included  in  Management's  Discussion  and  Analysis of Financial Condition and
Results  of  Operations  reflect  management's  best  judgment  based on factors
currently  known, involve risks and uncertainties. Our actual results may differ
significantly  from the results discussed in the forward-looking statements. You
should  not regard their inclusion as a representation by us that the objectives
or  plans  will be achieved. Factors that might cause such a difference include,
but  are  not  limited  to,  competitive,  technological, financial and business
challenges making it more difficult than expected to sell products and services.

<PAGE>

We  may  be  unable  to  hire and retain our key sales, technical and management
personnel;  there  may  be  other  material adverse changes in our operations or
business,  and any or all of these factors may affect our ability to achieve our
projected  sales  growth.  Forward-looking  information  provided by the Company
pursuant  to the safe harbor established by recent securities legislation should
be  evaluated  in  the  context  of  these  factors.

SELECTED  FINANCIAL  DATA

                                                       FOR YEAR ENDING
                                                      JUNE 30     JUNE 30,
                                                      -------     --------
                                                         2003     2002
                                                         ----     ----
<TABLE>
<CAPTION>
<S>                                                   <C>          <C>
Loss from Discontinued Operations. . . . . . . . . .  (1,000,592)    (333,001)
Gain from Disposition of Discontinued Operations . .     249,112            -
                                                      -----------  -----------
Net (Loss) . . . . . . . . . . . . . . . . . . . . .    (751,480)    (333,001)
                                                      ===========  ===========

 Basic loss per common share . . . . . . . . . . . .       (0.01)       (0.02)
 Weighted average common shares outstanding. . . . .  52,970,829   19,630,000

 Diluted earnings per common share . . . . . . . . .       (0.01)       (0.02)

 Weighted average diluted common shares outstanding.  52,970,829   19,630,000

Cash . . . . . . . . . . . . . . . . . . . . . . . .           0
Working Capital (Deficiency)/Equity. . . . . . . . .     901,123
Total Assets . . . . . . . . . . . . . . . . . . . .           0
Total Debt . . . . . . . . . . . . . . . . . . . . .     901,123
Shareholders (Deficiency)/Equity . . . . . . . . . .     901,123
</TABLE>

RESULTS  OF  OPERATIONS

Year  ended  June  30,  2003  compared  to  year  ended  June  30,  2002.

     During  the  year  ended  June 30, 2003 the Company reported an overall net
loss  from  discontinued operations of ($1,000,592) compared with a loss for the
similar  period  ending  June 30, 2002 of  $333,001.  This overall net loss also
recognized  a  gain  from  the disposition of the asset for a total of $249,112.
This  loss is reflective of the Company's decision to  abandon the operations of
NetSalon  and  concentrate  on  its  core  business  of  military communications
industry..

     The  net  loss  for the year ending June 30, 2003 was $$751,480 compared to
$333,001  in  the  year  ended  June  30,  2002.

Year  ended  June  30,  2002  compared  to  year  ended  June  30,  2001

During  the  year ended June 30, 2002 the Company reported revenue of $1,001,274
compared  to  revenue  of  $439,223  during the year ended June 30, 2001. During
August  2000,  the  Company made the decision to abandon the use of a multilevel
marketing  distribution  model,  and  to sell its products through distributors,
other  multilevel  marketing  companies,  and  affinity  organizations.

<PAGE>

During the year ended June 30, 2002 the cost of revenue was $342,585 or 34.2% of
sales,  compared  to  $114,671  or 26.1% of sales during the year ended June 30,
2001.

Operating  expenses  for  the year ended June 30, 2002 were $863,523 compared to
$1,205,563  for  the  year  ended  June 30, 2001. Research and development costs
declined  significantly from $194,909 in the year ended June 30, 2001 to $14,824
in the year ended June 30,2002, because the Company completed the development of
most  of  its  products  during  the  prior  year.

Interest  expense  increased  from  $69,105  in  the year ended June 30, 2001 to
$108,482  in  the  year  ended  June 30, 2002 due to the increased level of debt
outstanding.

The  net  loss was $333,001 in the year ended June 30, 2002 compared to $959,047
in  the  year  ended  June  30,  2001.


LIQUIDITY  AND  CAPITAL  RESOURCES

          As  of  June  30,  2003,  the Company had a working capital deficit of
$(901,123)_.  The  Company's  future  existence  is  dependent upon management's
ability  to  secure  funding  needed  to support the continued operations of the
Company.    It  would  be difficult for the Company to raise additional capital,
particularly  in  view  of  the  Company's  poor  financial  condition  and  the
reluctance  of  the  participants in the equity markets to invest in speculative
ventures.

The  Company  has  entered into a Letter of Intent with United Reinsurance for a
debt  facility  totaling  $30,000,000. As of September 30, 2003 this contract is
yet  to  be  finalized  and  management  cannot  be  assured that aforementioned
agreement  will  be  finalized.

Currently,  management is comptemplating additional capital raising initiatives.

It is management's belief that the Company will be able to generate revenue this
fiscal  year  through  the  sale of PC4 development kits to military and defense
contractors.  The  exact  amount and number of development kits forecasted to be
sold  cannot  be  accurately  predicted.

     On  July  15, 2003 the Company filed an S-8 register public offering by the
Company  of  2,850,000  shares  of  Company's  common  stock  issued as follows:
750,000  shares to Lance Perry, 750,000 shares to Robert Proctor, 750,000 shares
to  Roger May, and 600,000 shares to Cutler Law Group.  These shares were issued
in  lieu  of  accrued  salary  and/or  fees  for  legal  services.

     As  a  result  of the transaction with the former officers and directors of
the company involving the company's operating subsidiary NetSalon I Inc, certain
assets  were  assumed  in the transaction.  All capitalized software assumed was
fully  amortized  to  a  carrying  value  of $0 in accordance with the company's
accounting  policy.  Computer equipment and furniture of a book value of $17,653
was  also assumed, this equipment had been depreciated by $3,276 with a carrying
value  of  $14,377.

VALUATION  OF  INVESTMENT  IN  MILITARY  SDR  TECHNOLOGIES  PTY  LTD

     As  documented  previously  in  this  document,  the Company entered into a
transaction  with  GIF  on January 30, 2003 to acquire 15% equity interest in an
Australian  private  company.  It is managements belief that this investment has
significant  potential value due to patents owned by that company and the market
potential  for  the  PC4  operating  system.

<PAGE>

     Management  carried the investment at $0.00 since it was unable to document
the  carrying  value  for  these  intangible  assets  in  accordance  with GAAP.

     It  is  the  intention of management of MSDRT to list the company on the UK
based  AIM market, administered by the London Stock Exchange or to alternatively
list  the  company on the Australian Stock Exchange.  Current discussions had by
the  management  of  MSDRT  indicate  that such transaction most likely would be
consummated  within  the  current  fiscal year. Management of MSDRT are pursuing
this  initiative.

ITEM  7.  FINANCIAL  STATEMENTS.

     The  financial  statements  are set forth on pages F-1 through F-14 hereto.

ITEM  8.  CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING AND
FINANCIAL  DISCLOSURE.

     No  response  required.

ITEM  8A.  CONTROLS  AND  PROCEDURES.


Roger  May,  the  Company's  principal  executive  and  financial  officer,  has
evaluated  the effectiveness of the Company's disclosure controls and procedures
(as defined in Rule 13a-14(c) under the Securities Exchange Act of 1934) as of a
date  within 90 days of the filing of this report.  Based on that evaluation, he
has concluded that the Company's disclosure controls and procedures are adequate
and  effective. There have been no significant changes in the Company's internal
controls  or  in other factors that could significantly affect internal controls
subsequent  to  the  date  Mr.  May  completed  his  evaluation.


<PAGE>

PART  III

ITEM  9.  DIRECTORS,  EXECUTIVE  OFFICERS,  PROMOTERS  AND  CONTROL  PERSONS:
COMPLIANCE  WITH  SECTION  16(A)  OF  THE  EXCHANGE  ACT

DIRECTORS  AND  EXECUTIVE  OFFICERS

     The  Directors  and  Officers  of  the  Company  are  as  follows:

NAME                     AGE     POSITION  AND  OFFICES  HELD
----                     ---     ----------------------------

Roger  T.  May           57      President, Chief Executive Officer and Director
David  Lockwood          42      Non-Executive  Director
Charles  Wantrup         58      Non-Executive  Director
Randy  Bowden            58      Executive  Director
Peter  Hayes  Q.C        53      Non-Executive  Director
Jeremy  C.  Norton       30      Vice President Finance and Company Secretary

     There  is  no family relationship between any Director or Executive Officer
of  Military  Communications  Technologies  Inc.

     Set  forth  below  are  the  names  of  all  of our Directors and Executive
Officers,  all positions and offices held by each such person, the period during
which  he  has  served  as such, and the principal occupations and employment of
such  persons  during  at  least  the  last  five  years:

     ROGER  MAY,  EXECUTIVE  DIRECTOR  AND  CHIEF  EXECUTIVE  OFFICER

     Moving  from  Australia  to  the United States in the 1980s, Roger has more
than  27  years  of  high-level  business  experience  in  the  field  of
telecommunications  marketing  and  the  implementation  of  national  and
international distribution networks.  He has been engaged in the capital raising
for  many  high-tech ventures, especially those requiring start-up expertise and
the  implementation and establishment of broad based marketing and distribution.
In  1997  he  was  appointed  Chief  Executive  Officer of a NASDAQ administered
over-the-counter  bulletin  board  public company, which he merged with Advanced
Communications  Technologies  Inc  in  1999  using  extensive  knowledge  of the
communications  industry's  needs,  markets and evolving technologies in the US,
EEC  and Australia. He is the founder of SDR Communications Technologies and the
Spectrucell  project.

     CHARLES  WANTRUP,  DIRECTOR.

     Mr.  Wantrup  has been practicing exclusively as a commercial solicitor for
over 25 years and is also a member of the New South Wales Bar.  He has extensive
experience  in  funding  and  financing, taxation law and practice, intellectual
property  law,  industrial  relations, international trade and investment and in
corporations  law,  capital  raising  and  mergers  and  acquisitions.  He  has
pioneering  experience  in  the establishment and structuring of high technology
companies,  mining  joint  ventures  and venture capital funds.  Mr. Wantrup was
general  counsel to the Computer Power Group, at the time the largest Australian
owned  computer company.  He worked with Computer Power to establish CP Ventures
Ltd  as  a licensed Management & Investment Company, which was listed on ASX and
which,  through a series of takeovers became the largest venture capital fund of

<PAGE>

its  day.  Mr.  Wantrup  is  or  has been counsel to eight other publicly listed
companies  in  the  mining  and  high tech industries.  He remains a director of
Strata  Resources  NL,  a non-listed public company, and is a director of Online
e-Media  Limited.  Mr.  Wantrup  is  also  an associate of International Counsel
S.A.,  an  international legal and advisory firm, an associate of WKF Bankers, a
private  banking  firm,  and  the  founding  partner of Wantrup & Associates, an
Australian  commercial  law  firm.

RANDY  BOWDEN,  DIRECTOR

     Mr.  Randy  Bowden  has  been  a senior management consultant and corporate
executive  for more than 20 years of his 30-year technology industry career.  As
Managing  Director  of  his own consulting business between July 1987 and August
1995 and working with technology multi-nationals and 'big 4' services firms such
as  HP,  Unisys,  IBM,  Andersen and EDS, Mr. Bowden has operated extensively in
Australia  and  on  assignments  in  Malaysia,  New  Zealand, the US and Canada.
Between  September  1995 and March 2001 he was with Unisys as Managing Principal
for  Consulting,  Principal  of  Systems Integration, General Manager Millennium
Solutions  and  Director  for  eBusiness  covering  South  Pacific.

Since  May  2001,  Mr.  Bowden  has acted as a corporate adviser on go-to-market
strategies  to  a  number  of  companies  going  through  commercialization  of
technology.  Industry/business  segments  have  included  utilities  and  public
infrastructure,  telecommunications,  defence,  commercial  sales and enterprise
risk  management.  .

Mr. Bowden has over 10 years experience in executive management roles with P & L
responsibility  and  the  management  of  up  to  230  staff. His technology and
management  grounding  began  as  a  Business Analyst in his 13-year career with
Shell.

     Mr.  Bowden has received extensive executive training in the US and has won
several  employer-sponsored  global  awards  for commercial achievement.  He has
also  successfully  delivered  large multi-country technology projects achieving
international  recognition  and  publication (UK Law Journal, The Economist) for
business  innovation.

     He  has been a board member of two private companies and trustee for a $60m
Superannuation  fund.

PETER  HAYES,  DIRECTOR

     Peter  Hayes  is  one of her Majesty's Counsel.  He went to the bar in 1973
and  was  appointed  as  a  barrister  in  1988.  In his 30 years in practice in
Victoria  and  throughout  Australia  Peter  has had a wide and varied practice,
principally  in areas of commercial law.  He has appeared as counsel in a number
of  major  trials  in  the commercial list of the Victorian Supreme Court and in
other  courts around Victoria and Australia.  He has appeared extensively in all
jurisdictions  in Australia including the High Court and the Court of Appeal and
the  Full  Federal  Court.

JEREMY  C.  NORTON,  VICE  PRESIDENT  FINANCE  AND  COMPANY  SECRETARY

     Mr.  Norton  has  a  background  in  Corporate  Finance  and capital market
activities.  Prior  to  joining  the  Company Mr. Norton had worked for Advanced
Communications  Technologies  Inc  and  previously  before  that
PricewaterhouseCoopers  in their Corporate Finance and Investment Banking Group.
Mr.,  Norton  holds  a  Bachelor  of  Science  in  Finance  and  Economics.

BOARD  APPOINTMENTS

     In  June  2003  Mr  Charles  Wantrup and Mr. Randy Bowden were appointed as
Directors.

<PAGE>

RESIGNATIONS

     Effective  January  24,  2003  Mr. Robert Proctor officially resigned as an
Officer  and  Director of the Company.  On January 24, 2003 Mr. Lance Perry also
resigned  as  an  Officer  of the Company.  Mr. Perry subsequently resigned as a
Director  of  the Company as of June 30, 2003.  On July 2, 2003, Mr. Lionel Roux
resigned as a Director of the Company.  David Lockwood resigned as a Director in
July  2003


SECTION  16(A)  BENEFICIAL  REPORTING  COMPLIANCE

     Based  solely on a review of Forms 3 and 4 and amendments thereto furnished
to  the  Company  during  its most recent fiscal year, and Form 5 and amendments
thereto furnished to the Company with respect to its most recent fiscal year and
certain  written representations, no persons who were either a Director, Officer
or  beneficial  owner  of more than 10% of the Company's Common Stock, failed to
file  on  a  timely  basis reports required by Section 16(a) of the Exchange Act
during  the  most recent fiscal year except Mr. Roger May, who was late one time
in  his  filing  of  a  Form  4.

ITEM  10.  EXECUTIVE  COMPENSATION

     The following table sets forth information regarding executive compensation
for  the  Company's  Chief  Executive  Officer and Chief Operations Officer.  No
other  executive  officer  received  compensation  in excess of $100,000 for the
fiscal  years  ended  June  30,  2003  and 2002, and no amounts were paid to any
executive  officer  during  the  fiscal  year  ended  June  30,  2003.

<PAGE>

                            SUMMARY COMPENSATION TABLE

<TABLE>
<CAPTION>
<S>                            <C>          <C>           <C>          <C>           <C>                <C>           <C>
                                         ANNUAL COMPENSATION                       LONG TERM COMPENSATION
                               ------------------------------------    ----------------------------------------
                                                                                  AWARDS                PAYOUTS
                                                                       ----------------------------     -------
                                                                                       SECURITIES
                                                           OTHER       RESTRICTED      UNDERLYING                      ALL OTHER
                                                          ANNUAL          STOCK         OPTIONS/         LTIP           COMPEN-
NAME/TITLE                     SALARY       BONUS          COMP.         AWARDS           SARS          PAYOUTS         SATION
YEAR                            $            $               $          (shares)          #(1)             $               $
----------------               --------     ---------     ---------    ----------    --------------     -------       -----------
 Roger T. May
      Executive Director
           2003               $100,000 (1)    -0-           -0-         750,000           -0-              -0-               -0-

 Lance A. Perry
      President
           2003               $180,000 (2)    -0-           -0-         750,000           -0-              -0-               -0-
           2002                $45,000        -0-           -0-            -0-            -0-              -0-               -0-

 Mark S. Manuel
      CEO
           2002               $120,000 (3)    -0-           -0-            -0-            -0-              -0-               -0-
           2001               $180,000 (4)    -0-           -0-            -0-            -0-              -0-               -0-

 Robert Proctor
      Former COO
           2003               $180,000 (5)    -0-           -0-         750,000           -0-              -0-               -0-
           2002               $150,000       5,000          -0-            -0-            -0-              -0-               -0-
</TABLE>

___________________

(1)  $100,000  of  this  salary was accrued by Mr. May but unpaid as of June 30,
2003.

(2)  All  $45,000  of  this  salary  was deferred.  The Company loaned Mr. Perry
$79,875 during the year ended June 30, 2003. The loan and $70,125 of the accrued
salary  for  2003 was waived by Mr. Perry and the Company in connection with the
spin-off of NetSalon I to Mr. Perry and Mr.  Proctor.

(3) All $120,000 was deferred and then waived by Mr. Manuel as of June 30, 2002.

(4) $62,000 of this salary was deferred and then waived by Mr. Manuel as of June
30,  2002.

(5) $75,000 of this salary was deferred.  The Company loaned Mr. Proctor $75,700
during the year ended June 30, 2003.  The loan and $74,300 of the accrued salary
was  waived  by  Mr. Proctor and the Company in  connection with the spin-off of
NetSalon I to Mr. Perry and Mr. Proctor.


DIRECTOR  COMPENSATION

     Each  Director  is  reimbursed  for  all reasonable and necessary costs and
expenses  incurred  as a result of being a Director of the Company. Additionally
the Board voted in June 2003 to issue 250,000 shares of restricted stock to each
of the Directors except for Mr. May for services conducted as a Director of MLTA
in  fiscal  2003  and  2004.


<PAGE>

ITEM  11.  SECURITY  OWNERSHIP  OF  MANAGEMENT  AND  PRINCIPAL  SHAREHOLDERS

     The following table sets forth, as of September 30, 2003, each person known
by  the  Company  to  be  the  beneficial  owner  of five percent or more of the
Company's  Common  Stock,  all Directors and Executive Officers individually and
all  Directors  and  Executive  Officers  of  the Company as a group.  Except as
noted,  each  person  has  sole  voting and investment power with respect to the
shares  shown.

<TABLE>
<CAPTION>
<S>                <C>                                     <C>                <C>
Title of           Name and Address                        Amount and Nature  Percent of
Class              of Beneficial Owner                     of Beneficial      Class2
                   Ownership

                   Global Investments Fund Pty Ltd.1
Common             341 Queen Street
Stock              Melbourne 3000, Australia                      46,610,768        37.0%

                   Roger May1
Common             341 Queen Street
Stock              Melbourne 3000, Australia                      77,860,768        61.9%

                   International Investment Services1
Common             c/o Pridie Brewster & Co
Stock              Guillford, Surry, United Kingdom               30,000,000        23.8%

                   Michael Roux
                   c/o Global Investments Fund Pty Ltd.
Common             341 Queen Street
Stock              Melbourne 3000, Australia                       1,000,000         0.8%

                   Peter Hayes
Common             Lonsdale Street
Stock              Melbourne 3000, Australia                       1,000,000         0.8%

                   Peter Hayes
Common             Lonsdale Street
Stock              Melbourne 3000, Australia                       1,000,000         0.8%

                   Randy Bowden
Common             c/o Global Investsments Fund Pty Ltd.
Stock              Melbourne 3000, Australia                               -         0.0%

                   Charles Wantrup
Common             LaTrobe and Russell Street
Stock              Melbourne 3000, Australia                         250,000        0.2%

Common             All Directors and Officers as a group
Stock              (four persons)                                 80,110,768        63.6%
</TABLE>

(1)  Mr.  May  is  the beneficial owner of the shares held by Global Investments
Fund  Pty  Ltd   Mr.  May  disclaims  beneficial ownership of the shares held by
International  Investment Services, but may be deemed to be the beneficial owner
under  some  circumstances.

(2)  All  numbers reflect an issued and outstanding share number of 125,843,329,
which  includes 50,000,000 shares issued as a pledge on a loan which the Company
sought.  That  loan has not yet been completed and the shares issued as a pledge
may  be  terminated.

<PAGE>

ITEM  12.  CERTAIN  TRANSACTIONS

     Effective  January  24,  2003  the Company's Board of Directors approved an
agreement  that  provided  for  the  cancellation  of  7,741,668  shares  of the
Company's  common  stock  and  the  issuance  of  88,060,768  new  shares of the
Company's  common  stock.  In  addition,  the  Company  has  agreed  to  obtain
conversions, releases or other agreements such that the outstanding liabilities,
obligations  and  other debts, direct or indirect, contingent or existing, shall
be  no  more  than $340,000.  The Company agreed to change its name to "Military
Communications Technologies, Inc.," elect a specified list of five directors and
cause  its  shareholders to increase the authorized common stock to 200,000,000.
Subsequent  to the increase in authorized common stock, an additional 19,293,320
shares  of common stock of the Company shall be issued.  The transaction results
in  a  change  in  control  of  the  Company.

     During  the  fiscal  year  ended  June  30,  2003, Global Investments Funds
advanced  the  company $64,000.00 for working capital.  This amount is reflected
in  the  balance  sheet  and  the  financial  notes  disclosed  herein.

     For  the  financial year ended June 30, 2003, MLTA shared office facilities
with  its  major  shareholder,  Global Investment Fund ("GIF") at 2222 Michelson
Ave,  Suite 477, Irvine CA 92625. No rent or facility use fee was charged to the
Company  by  GIF.  This  arrangement  continued  until October 1, 2003, when the
Company  entered  into  a  new  leasehold  arrangement.



<PAGE>

PART  IV

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

(a)  Exhibits.

EXHIBIT
NUMBER           DESCRIPTION            LOCATION
-------          -----------               --------

  3.1     Certificate  of               Incorporated by reference to
          Incorporation                 Exhibit 3.1 to the Registrant's
                                        Report on Form 10-KSB for the year
                                        ended June 30, 2001

 10.1     Share Exchange Agreement      Incorporated by reference to
          between Makepeace Capital     Exhibit 10 to the Registrant's
          Corp. and NetSalon            Report on Form  8-K dated August
          Corporation                   17, 2000

 10.2     Acquisition Agreement         Filed herewith
          between NetSalon Corp-
          oration and Global
          Investment Fund Pty. Ltd.

 21       Subsidiaries of the           None
          Registrant

32     Certificate of Roger May pursuant to Section 906


(b)  The  Company filed the following Reports on Form 8-K during the fiscal year
ended  June  30,  2003.

On  July  10,  2003 the Company filed an 8-K filed to announce following events:
-     Execution  of  Letter  of Intent with United Financial and Reinsurance for
debt  funding  facility  of  $30m;
-     Hiring  of  Jeremy Norton as a consultant to serve as VP of Finance and to
act  as  Interim  Company  Secretary;
-     Announce  that  MSDRT  had  received  first purchase order for SpectruCell
operating  system;
-     Announce  the Board approval of intent to purchase an additional 5% equity
in  MSDRT  for  a price of $8m in cash and shares, composition of which would be
announced  in  final  documentation;
-     Announced  resignation  of  Lance  Perry  as  a Director effective 7/3/03;
-     Announced  resignation  of  Michael  Roux  as a Director effective 7/2/03;
-     Announce  the  appointment  of  Randy  Bowden as a Director of the Company
effective  6/24/03

                                   SIGNATURES

Pursuant  to  the requirements of Section 13 or 15(d) of the Securities Exchange
Act  of  1934,  the  registrant  has duly caused this report to be signed on its
behalf  by  the  undersigned,  thereunto  duly  authorized.


Dated:  October 15, 2003

                                     MILITARY COMMUNICATIONS TECHNOLOGIES, INC
                                     (Registrant)

                                     By: /s/  Roger May
                                     --------------------------
                                     Roger May,
                                     Chief Executive Officer,
                                     Chief Financial Officer and Director

Pursuant to requirements of the Securities Exchange Act of 1934, this report has
been  signed  below  by the following persons on behalf of the registrant and in
the  capacities  and  on  the  dates  indicated:

     Signature                         Capacity            Date
     ---------------------------------------------------------------

     David Lockwood                    Director          October 15, 2003

     Charles Wantrup                   Director          October 15, 2003

     Randy Bowden                      Director          October 15, 2003

     Peter Hayes                       Director          October 15, 2003


I, Roger May, certify that:

1.  I have reviewed this annual report on Form 10-KSB of Military Communications
Technologies,  Inc.;

2.  Based  on  my  knowledge,  this  annual  report  does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not  misleading  with respect to the period covered by this report;

3.  Based  on  my  knowledge,  the  financial  statements,  and  other financial
information  included  in  this  annual  report,  fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
Company  as  of,  and  for,  the  periods  presented  in  this  annual  report;

4.  I  am  responsible  for establishing and maintaining disclosure controls and
procedures  (as defined in Exchange Act Rules 13a-14 and 15d-14) for the Company
and  I  have:

a.  designed  such  disclosure  controls  and procedures to ensure that material
information relating to the Company, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly during the period
in  which  this  annual  report  is  being  prepared;

b.  evaluated  the  effectiveness  of  the  Company's  disclosure  controls  and
procedures  as  of a date within 90 days prior to the filing date of this annual
report  (the  "Evaluation  Date");  and

c.  presented  in  this annual report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on  our  evaluation as of the
Evaluation  Date;

5.  I  have  disclosed,  based  on  our most recent evaluation, to the Company's
auditors and the audit committee of the Company's board of directors (or persons
performing  the  equivalent  function):

a.  all significant deficiencies in the design or operation of internal controls
which could adversely affect the Company's ability to record, process, summarize
and  report  financial  data  and have identified for the Company's auditors any
material  weaknesses  in  internal  controls;  and

b.  any  fraud,  whether  or  not  material,  that  involves management or other
employees  who  have  a significant role in the Company's internal controls; and

6.  I have indicated in this annual report whether or not there were significant
changes in internal controls or in other factors that could significantly affect
internal  controls  subsequent  to  the  date  of  our  most  recent evaluation,
including  any  corrective  actions  with regard to significant deficiencies and
material  weaknesses.

October 15, 2003     /s/ Roger May
                   Name:  Roger May
                   Title: Chief Executive Officer and Chief Financial Officer
<PAGE>

                    MILITARY COMMUNICATIONS TECHNOLOGIES INC.
                           A DEVELOPMENT STAGE COMPANY
                                TABLE OF CONTENTS

                                                       Page

Independent  Auditor's  Report                         F-2

Financial  Statements:

  Balance  Sheet                                       F-3

  Statements  of  Operations                           F-4

  Statement  of  Shareholders'  Deficit                F-5

  Statements  of  Cash  Flows                          F-6

Notes  to  Financial  Statements                       F-7



                                      F-1

<PAGE>

INDEPENDENT  AUDITORS'  REPORT

To  the  Board  of  Directors  and
Shareholders  of  Military  Communications  Technologies  Inc.

We  have  audited  the  accompanying  balance  sheet  of Military Communications
Technologies,  Inc  (a  development  stage  company) as of June 30, 2003 and the
related  statements  of operations, shareholders' deficit and cash flows for the
two  years  then  ended.  The financial statements are the responsibility of the
Company's  management.  Our  responsibility  is  to  express an opinion on these
financial  statements  based  on  our  audits.

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

In  our  opinion,  the financial statements referred to above present fairly, in
all material respects, the financial position of NetSalon Corporation as of June
30,  2003,  and  the results of operations, changes in shareholders' deficit and
cash  flows  for  the  two  years  then  ended,  in  conformity  with accounting
principles  generally  accepted  in  the  United  States  of  America.

The  accompanying  financial  statements  have  been  prepared assuming that the
Company  will  continue  as  a going concern. As described in Notes 3 and 10 the
Company  has  suffered  recurring  losses  from operations, has negative working
capital  and has a net capital deficiency that raise substantial doubt about the
Company's  ability to continue as a going concern. These financial statements do
not  include  any  adjustments  that  might  result  from  the  outcome  of this
uncertainty.


Schumacher  &  Associates,  Inc.
Certified  Public  Accountants
2525  Fifteenth  Street  #3H
Denver  Colorado  80211


September  16,  2003



                                      F-2


<PAGE>

                    MILITARY COMMUNICATIONS TECHNOLOGIES INC.
                           A DEVELOPMENT STAGE COMPANY
                                  BALANCE SHEET
                                  JUNE 30, 2003


<TABLE>
<CAPTION>
<S>                                                                               <C>
                                                                                  FOR YEAR ENDING
                                                                                     JUNE 30,
                                                                                       2003
                                                                                  -----------------
ASSETS

TOTAL CURRENT ASSETS

Investment in Military SDR Technologies Pty Ltd, . . . . . . . . . . . . . . . .  $              -
     Less Valuation Allowance of $107,354
                                                                                  -----------------

TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $              -
                                                                                  =================

LIABILITIES AND SHAREHOLDERS' (DEFICIT)

CURRENT LIABILITIES:
 Accounts payable and accrued expense. . . . . . . . . . . . . . . . . . . . . .  $        581,431
 Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           177,692
 Advances payable to shareholders. . . . . . . . . . . . . . . . . . . . . . . .           142,000
                                                                                  -----------------

TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $        901,123
                                                                                  -----------------

Commitments and contingencies (Notes 4,5,7,8,)

Shareholders' (deficit):
   Preferred stock - 20,000,000 shares authorized; $0.001 Par; no shares issued.                 -
   Common Stock - $0.001 Par Value, 200,000,000 shares authorized;
   125,843,329 shares issued and outstanding,. . . . . . . . . . . . . . . . . .           125,843
Additional paid in capital . . . . . . . . . . . . . . . . . . . . . . . . . . .         2,290,443
Accumulated deficit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        (3,317,409)
                                                                                  -----------------

Total Liabilities and Shareholders (Deficit) . . . . . . . . . . . . . . . . . .          (901,123)
                                                                                  =================

</TABLE>

The  accompanying  notes  are  an  integral part of these consolidated financial
statements.

                             F-3
<PAGE>

                    MILITARY COMMUNICATIONS TECHNOLOGIES INC
                           A DEVELOPMENT STAGE COMPANY
                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
<S>                                                   <C>                <C>
                                                           FOR YEAR ENDING
                                                           -----------------
                                                      JUNE 30            JUNE 30,
                                                      -----------------  ------------
                                                                  2003          2002
                                                      -----------------  ------------

Loss from Discontinued Operations. . . . . . . . . .  $     (1,000,592)  $  (333,001)
Gain from Disposition of Discontinued Operations . .           249,112             -
                                                      -----------------  ------------
Net (Loss) . . . . . . . . . . . . . . . . . . . . .  $       (751,480)  $  (333,001)
                                                      =================  ============


 Basic loss per common share . . . . . . . . . . . .  $          (0.01)  $     (0.02)
 Weighted average common shares outstanding. . . . .        52,970,829    19,630,000

 Weighted average diluted common shares outstanding.        52,970,829    19,630,000

 Diluted earnings per common share . . . . . . . . .  $          (0.01)  $     (0.02)
</TABLE>

The  accompanying  notes  are  an  integral part of these consolidated financial
statements.

                              F-4
<PAGE>

                    MILITARY COMMUNICATIONS TECHNOLOGIES INC
                          (A DEVELOPMENT STAGE COMPANY)
                  STATEMENT OF CHANGES IN SHAREHOLDERS DEFICIT
             FOR THE PERIOD FROM JULY 1, 2001 THROUGH JUNE 30, 2003

<TABLE>
<CAPTION>
<S>                                      <C>            <C>         <C>           <C>           <C>
                                                                    ADDITIONAL
                                              COMMON STOCK          PAID-IN       ACCUMULATED
                                         SHARES         AMOUNT      CAPITAL       DEFICIT       TOTAL

BALANCE AT JUNE 30, 2001. . . . . . . .    19,630,900   $  19,630   $    933,921  $(2,232,928)  $(1,279,377)

Additional Paid In Capital. . . . . . .                                  302,828                    302,828

Net Loss. . . . . . . . . . . . . . . .                                              (333,001)     (333,001)
                                         -------------  ----------  ------------  ------------  ------------

SHAREHOLDERS' DEFICIT AT JUNE 30, 2002.    19,630,900      19,630      1,236,749   (2,565,929)   (1,309,550)
                                         -------------  ----------  ------------  ------------  ------------


Cancelled Shares. . . . . . . . . . . .    (5,491,668)     (5,491)         5,491                          -

Shares issued for Investment. . . . . .   107,354,097     107,354              -                    107,354

Conversion of debt (See note 5) . . . .             -           -        621,303                    621,303

Shares issued for Services. . . . . . .     4,350,000       4,350        426,900                    431,250

Net (Loss). . . . . . . . . . . . . . .                                 (751,480)                  (751,480)
                                         -------------  ----------  ------------  ------------  ------------

SHAREHOLDERS' DEFICIT AT JUNE 30, 2003.   125,843,329   $ 125,843   $  2,290,443  $(3,317,409)  $  (901,123)
                                         =============  ==========  ============  ============  ============
</TABLE>


The  accompanying  notes  are  an  integral  part of these financial statements.

                                       F-6
<PAGE>

                    MILITARY COMMUNICATIONS TECHNOLOGIES INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
<S>                                                                      <C>               <C>
                                                                                FOR YEAR ENDING
                                                                         JUNE 30           JUNE 30
                                                                                    2003       2002
                                                                         ----------------  ---------

NET LOSS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         (751,480)  (333,001)

Adjustments to reconcile net loss to cash used in operating activities:
  Depreciation of property and equipment. . . . . . . . . . . . . . . .             1140     17,683
  Gain from disposition of discontinued operations. . . . . . . . . . .         (249,112)    16,789
  Amortization of capitalized software costs. . . . . . . . . . . . . .            7,069      8,548
  Shares issued for Services. . . . . . . . . . . . . . . . . . . . . .          431,250    240,000
  Valuation Allowance for Investments . . . . . . . . . . . . . . . . .          107,354          -
Change in assets and liabilities:
  (Increase) decrease in accounts receivable. . . . . . . . . . . . . .            1,555       (891)
  Increase in accounts payable and accrued expenses . . . . . . . . . .          266,955    261,628
  Increase in officer (shareholder) compensation payable. . . . . . . .          122,500     75,552
  (Decrease) in Deferred revenue. . . . . . . . . . . . . . . . . . . .          (10,440)  (303,188)
                                                                         ----------------  ---------

Net cash provided by (used in) operating activities . . . . . . . . . .          (73,209)    79,138
                                                                         ----------------  ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
 Cash received from disposition of property and equipment
 Purchase of property and equipment . . . . . . . . . . . . . . . . . .           (3,451)    (4,978)
                                                                         ----------------  ---------

 Net cash used in investing activities. . . . . . . . . . . . . . . . .           (3,451)    (4,978)
                                                                         ----------------  ---------

CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of working capital advances by shareholder. . . . . . . . . .                -    (86,500)
Shareholder loan advances . . . . . . . . . . . . . . . . . . . . . . .           64,000     25,000
                                                                         ----------------  ---------

Net Cash Provided By (Used In) Financing Activities . . . . . . . . . .           64,000    (61,500)
                                                                         ----------------  ---------
`
Increase (decrease) in cash . . . . . . . . . . . . . . . . . . . . . .          (12,660)    12,660
Cash, beginning of period . . . . . . . . . . . . . . . . . . . . . . .           12,660          -
Cash, end of the period . . . . . . . . . . . . . . . . . . . . . . . .                -     12,660

Supplemental disclosure of cash flow information

Conversion of note payable. . . . . . . . . . . . . . . . . . . . . . .          621,303          -
Issuance of common stock for investment . . . . . . . . . . . . . . . .          107,354          -
</TABLE>


The  accompanying  notes  are  an  integral part of these consolidated financial
statements.


                                        F-7
<PAGE>

                    MILITARY COMMUNICATIONS TECHNOLOGIES INC.
                           A DEVELOPMENT STAGE COMPANY
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2003

NOTE  1  -  PRINCIPLES  OF  CONSOLIDATION  AND  SIGNIFICANT  ACCOUNTING POLICIES
--------------------------------------------------------------------------------

This  summary  of  significant  accounting  policies  of Military Communications
Technologies  Inc  ("MLTA"  or  the  "Company")  is  presented  to  assist  in
understanding  the  Company's financial statements. The financial statements and
notes  are  representations  of  the Company's management who is responsible for
their integrity and objectivity. These accounting policies conform to accounting
principles  generally  accepted  in  the  United States of America and have been
consistently  applied  in  the  preparation  of  the  financial  statements.

(A)  ORGANIZATION

OPERATIONS  AND  BUSINESS  DESCRIPTION
     The  Company  was initially incorporated in the State of Texas on March 18,
1994  under  the name of American/National Trucking, Inc.  On August 28, 1998, a
Colorado corporation was merged into the Company and the name of the Company was
changed to Makepeace Capital Corp.  Makepeace specialized in the contracting and
management  of  the  construction of commercial properties and retail homes.  On
August  17,  2000 the Company entered into a share exchange agreement to acquire
99%  of  NetSalon  Corporation ("Legacy NSLN"), whereby MKPC changed its name to
NetSalon  and  Legacy  NetSalon continued operating as a subsidiary with the new
Corporate  name  of  NetSalon  I,  Inc.  ("NSLN  I").

In accordance with the business combination agreement, Makepeace transferred its
existing  assets  and liabilities to its former majority shareholder.  Makepeace
had  no assets or liabilities as of the business combination date.  As required,
the  business  combination  was  accounted  for as a reverse acquisition whereby
Legacy  NetSalon was defined, as the accounting acquirer while Makepeace was the
legal  acquirer.

Because  of  the  reverse  acquisition  and  in accordance with SEC regulations,
comparative information does not reflect Makepeace Capital Corp. operations, but
reflects  Legacy  NetSalon  operations.

Legacy  NetSalon  originally  maintained a calendar year accounting period while
Makepeace  maintained  a fiscal year accounting period ending on June 30 of each
year.  The  new  entity,  Military  Communications  Technologies  Inc., formerly
NetSalon  Corporation  is  keeping  the  same  accounting  period  as Makepeace.

Legacy  NetSalon  began  operations  in  November 1998 developing internet-based
technologies  and had reached a point of technical feasibility with its products
by  December  31,  2000.  During  2000,  Legacy  NetSalon  emerged  from  its
developmental  stage,  entered  into  a business combination with Makepeace, and
established  itself  in the marketplace obtaining customers and establishing its
business  model.

     On December 2, 2002, the Company entered into an Acquisition Agreement with
Global  Investments Fund Pty, Ltd., an Australian corporation, which resulted in
a  change  of  control of the Company as Global shareholders acquired 88% of the
NetSalon  common  stock  and  appointed  a  majority  of  the  directors.  Upon
completion  of  the  acquisition  by  Global,  the  Company  changed its name to
Military  Communications  Technologies,  Inc.  and  commenced  operating its new
telecommunications  business  as  more  fully  set  forth  below.

                                F-8
<PAGE>

                    MILITARY COMMUNICATIONS TECHNOLOGIES INC.
                           A DEVELOPMENT STAGE COMPANY
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2003


For  the  financial year ended June 30, 2003, the primary business was conducted
through  the Company's wholly owned subsidiary, NetSalon I Inc.  This subsidiary
was  primarily  an  enterprise  application  development  company  providing
internet-based  applications  for affinity and direct sales companies.  NetSalon
also  provided  custom web development, database design, multi-media application
development  and  other  consulting  services.

On  September  12,  2003  the  Company entered into an agreement with two former
officers  and  directors  of  the  Company  effectuating  a management buyout of
NetSalon  I  Inc. The agreement was effective June 30, 2003, and resulted in the
Company  assuming  the liabilities of NSLN I while the operating assets remained
with  the  subsidiary.

(B)  DEVELOPMENT  STAGE  COMPANY

MLTA  is  a  developmental  stage  company  as of June 30, 2003.  The Company is
subject  to  risks  and  uncertainties  common  to  technology-based  companies,
including  rapid  technological  change,  growth  of the internet and electronic
commerce,  new  product  development,  actions  of  competitors, reliance on the
knowledge  and skills of its employees to be able to service existing customers,
and  availability  of  sufficient  capital  and  a  limited  operating  history.
Contingencies  exist  with  respect to these matters, the ultimate resolution of
which  cannot  presently  be  determined.

(C)  USE  OF  ESTIMATES

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

(D)  CASH  AND  CASH  EQUIVALENTS

The  Company  considers  all  highly  liquid instruments purchased with original
maturities  of  three  months  or  less  to  be  cash  equivalents.

(E)  ACCOUNTS  RECEIVABLE

The  Company  provides an allowance for doubtful accounts equal to the estimated
uncollectible  amounts. The Company's estimate is based on historical collection
experience  and  a review of the current status of trade accounts receivable. At
June  30  2003, there were no accounts receivable due to the Company; therefore,
no  allowance  was  provided  for.


                                F-9
<PAGE>


                    MILITARY COMMUNICATIONS TECHNOLOGIES INC.
                           A DEVELOPMENT STAGE COMPANY
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2003

(F)  CAPITALIZED  SOFTWARE  COSTS

The  Company  capitalized software, programming and related expenses as required
by Statement of Financial Accounting Standards No. 86, "Accounting for the Costs
of Computer Software to Be Sold, Leased, or Otherwise Marketed". The capitalized
software  development  was  fully  amortized  as  of  June  30,  2003.

(G)  PROPERTY  AND  EQUIPMENT

Property and equipment are carried at cost and depreciated over estimated useful
lives  of  three  to seven years using the straight-line method. Maintenance and
repairs  are  charged to expense as incurred; major renewals and betterments are
capitalized  and  depreciated  over  the  estimated remaining useful life of the
asset.  The  cost  of  items  sold  or  otherwise  disposed  of, and the related
accumulated  depreciation  or  amortizations  are  removed from the accounts and
gains  or  losses  are  reflected  in  current  operations.

The  Company  periodically reviews all long-lived assets for impairment whenever
events or changes in circumstances indicate that the carrying amount of an asset
may  not  be  recoverable.  If the sum of the estimated future undiscounted cash
flows  expected  to  result from the use and eventual disposition of an asset is
less  than  the  carrying value, the asset is reduced to its fair value. At June
30, 2003,  the  Company  had  no  property and equipment since June 30, 2003 the
Company  transferred  its  subsidiary,  NetSalon  I,  to  its  former  officers.

(H)  INCOME  TAXES

Deferred  tax  assets  and  liabilities  are  recognized  for  the  future  tax
consequences  attributable  to  differences  between  the  financial  statement
carrying  amounts  of  existing  assets and liabilities and their respective tax
bases.  Deferred  tax  assets, including tax loss and credit carry forwards, and
liabilities  are  measured  using enacted tax rates expected to apply to taxable
income  in  the  years  in  which those temporary differences are expected to be
recovered  or  settled.  The  effect on deferred tax assets and liabilities of a
change  in  tax  rates  is  recognized in income in the period that includes the
enactment  date.  Deferred  income  tax expense represents the change during the
period  in  the deferred tax assets and deferred tax liabilities. The components
of  the  deferred  tax  assets  and  liabilities  are individually classified as
current  and non-current based on their characteristics. Deferred tax assets are
reduced  by a valuation allowance when, in the opinion of management, it is more
likely  than not that some portion or all of the deferred tax assets will not be
realized.

(I)  REVENUE  RECOGNITION  AND  DEFERRED  REVENUE

Fees  for  enterprise implementation and software licenses are generally paid in
advance.  The fees are deferred and recognized on a straight-line basis over the
period  of  the  applicable  agreement or contract, which are generally 12 to 24
months.  Revenues  for  consulting and custom programming are recorded as earned
or  using  the  percent-complete  method  as  appropriate.


                                F-10
<PAGE>

                    MILITARY COMMUNICATIONS TECHNOLOGIES INC.
                           A DEVELOPMENT STAGE COMPANY
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2003

NOTE  2  -  INVESTMENT  IN  UNCONSOLIDATED  AFFILIATE
-----------------------------------------------------

On  January  30  2003,  the  Company purchased 15% of the equity of Military SDR
Technologies  Pty  Ltd, an Australian private company.  In consideration for the
purchase  the  Company  issued shares of the Company's outstanding common stock.
Due  to  the  uncertainties  with  respect  to valuation of this investment, the
Company  has  recorded  a  valuation  allowance  for  the  total  investment.  A
contingency exists with respect to this matter, the ultimate resolution of which
cannot  presently  be  determined.

NOTE  3  -  ACCOUNTS  PAYABLE
-----------------------------

Accounts  payable  at  June  30,  2003,  totaled approximately $425,000 of which
substantially  all  were  past  due.  The  accounts  payable include the assumed
liabilities  of  the formerly owned subsidiary. Accounts payable includes unpaid
delinquent  payroll  taxes  of  $145,000  at  June  30,  2003.

NOTE  4  -  ACCRUED  COMPENSATION
---------------------------------

On  January  30,  2003,  the  Company  entered  into  an  oral agreement with an
individual  to  serve  as  the  Company's  executive  director  in  exchange for
compensation  of  $20,000  per month. In addition, an oral agreement was entered
into  with  an  individual to serve as the Company's general manger, in exchange
for  compensation  of  $4,500  per month.  At June 30, 2003 compensation accrued
related  to  these  agreements  totaled  $122,500.

Additionally,  in  accordance with the agreement entered into September 12, 2003
with  the former Officers and Directors of the Company, accrued compensation and
payroll  taxes, less advances, totaling approximately $249,000 were written off.

NOTE  5  -  NOTES  PAYABLE
--------------------------

The  Company has classified a note payable to a former investor in the amount of
$177,692  plus  accrued  interest  of  $70,301 as a current liability due to the
Company  currently  being  in  default.  The  Company is attempting a negotiated
settlement  regarding  this  note  payable.

During  the  fiscal year ended June 30, 2003, the Company settled an outstanding
note  payable  for $534,445 plus accrued interest of $86,858. The obligation was
settled in full through the transfer of 1,200,000 shares of the Company's common
stock  previously  owned  and  controlled  by  the  Company's former officer and
director.  The  transaction  was  recorded  as additional paid in capital in the
amount  of  $621,303.


                           F-11
<PAGE>

                    MILITARY COMMUNICATIONS TECHNOLOGIES INC.
                           A DEVELOPMENT STAGE COMPANY
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2003


NOTE  6  -  ADVANCES  PAYABLE  TO  SHAREHOLDERS
-----------------------------------------------

At  June 30, 2003, payables to Shareholders totaled $142,000 related to advances
received  and  unpaid  compensation.

NOTE  7  -  SHARES  ISSUED
--------------------------

SHARES  ISSUED  FOR  EQUITY  INTEREST  IN  MSDRT

During  the  fiscal  year  ended  June  30, 2003, the Company issued 107,354,097
shares  to  a related party in consideration for a 15% equity interest in MSDRT.

SHARES  ISSUED  FOR  PROFESSIONAL  SERVICES

During  the  year  ended  June  30,2003,  the Company issued 2,850,000 shares of
common  stock  in  consideration  for  professional  services. These shares were
valued  as  $355,955.  In  addition,  the Company issued 1,500,000 shares to its
legal  counsel  for  a  finder's  fee.  These  shares  were  valued  at $75,000.

NOTE  8  -  INCOME  TAXES
-------------------------

The Company has available at June 30, 2003, unused operating loss carry forwards
of  approximately $3,300,000 which may be applied against future taxable income,
expiring  in  various years through 2022.  The utilization of net operating loss
carry  forwards  may be reduced or restricted due to the greater than 50% change
in  ownership  in  the  Company  as  described  in  Note  1.

As  of June 30, 2003, the Company has total deferred tax assets of approximately
$660,000  due  to  operating  loss  carry  forwards.  However,  because  of  the
uncertainty  of  potential  realization  of  these  tax  assets, the Company has
provided  a  valuation  allowance  for the entire $660,000.  Thus, no tax assets
have  been  recorded  in  the  financial  statements  as  of  June  30,  2003.

NOTE  9  -  WARRANTS
--------------------

On  February  8,  2003  approximately 756,000 class A warrants, with an exercise
price  of  $5.00  per  common share expired.  No new warrants were issued and no
warrants  were  exercised  during  the  years  ended  June  30,  2003  and 2002.

                          F-12
<PAGE>
                    MILITARY COMMUNICATIONS TECHNOLOGIES INC.
                           A DEVELOPMENT STAGE COMPANY
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2003

NOTE  10  -  GOING  CONCERN
---------------------------

The  accompanying  financial  statements  have  been prepared in conformity with
general  accepted  accounting  principles in the United States of America, which
contemplates  continuation  of  the  Company  as  a going concern.  However, the
Company  has  suffered  recurring losses from operations, has a negative working
capital  and has a net capital deficiency that raise substantial doubt about its
ability to continue as a going concern.  The financial statements do not include
any  adjustments  relating to the recoverability and classification of assets or
the amounts and classification of liabilities that might be necessary should the
Company  be  unable  to  continue  as  a  going  concern.

In  view  of  these  matters,  realization  of  certain  of  the  assets  in the
accompanying  balance  sheet  is  dependent  upon  continued  operations  of the
Company,  which  in  turn  is  dependent  upon the Company's ability to meet its
financial  requirements, raise additional capital, and the success of its future
operations.

Management  is  in  the  process  of  attempting  to  raise  additional capital.
Management  believes  that  its  ability to raise additional capital provides an
opportunity  for  the  Company  to  continue  as  a  going  concern.

NOTE  11  -  LITIGATION
-----------------------

During  January  2002, a note holder filed a complaint against the Company and a
director  in  the District Court of Harris County, Texas.  The complaint alleges
that the company breached its agreement dated September 15, 2000 to make monthly
payments  of $25,000 to the note holder under a promissory note in the amount of
$536,700  including  interest.  The  complaint  seeks  damages  of  $559,028,
prejudgment  interest  and  attorney's  fees.

During  November  2002, the Company entered into a Settlement Agreement with the
note  holder,  which  provides  as  follows:

The  Company  agreed  to  the  entry  of  a judgment against it in the amount of
$534,445  together  with  interest thereon from April 13, 2001 at the rate of 9%
per  annum.  The  note holder agreed that he would not execute upon the judgment
until  November  20,  2003,  except pursuant to the terms of the Agreement.  The
director  named  in  the  litigation delivered 3,000,000 shares of the Company's
common  stock owned by the director, and such shares are to be held in escrow by
the  note holder's attorney.  In the event that the Company completes a business
combination transaction, certain shareholders of the Company will be required to
cancel  9,630,900  shares  leaving  10,000,000  shares  outstanding  before  the
closing.  Of  these ten million shares, the note holder will keep one million of
the  escrow  shares  in full satisfaction of the judgment debt and the other two
million  shares  his  attorney  is  holding  in  escrow  will be canceled.  If a
business  combination  does  not  close,  but  another similar one does close by
November  20,  2003,  the  same  provisions will apply.  If the Company does not
complete  a  business  combination, the note holder may at any time accept the 3
million  shares  in  escrow in full satisfaction of the judgment debt.  The note
holder  is not allowed to execute on the judgment until after November 20, 2003,
unless  the Company is in default under the Agreement.  After November 20, 2003,
if  the  Company  has


                                F-13
<PAGE>



                    MILITARY COMMUNICATIONS TECHNOLOGIES INC.
                           A DEVELOPMENT STAGE COMPANY
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2003

not  completed  a  business  combination  or  paid the debt, the note holder may
execute  upon  the  judgment  and  take  the  3  million  shares  in  escrow.

On  January  30,  2003 the transaction was completed with Global Investment Fund
thus  settling  the above claim.  Mr. Williams received 1,200,000 million shares
from escrow in full consideration of the note for $534,445 plus accrued interest
of  $70,301.

NOTE  12  -  SUBSEQUENT  EVENTS
-------------------------------

On  July 15, 2003, the Company filed a form S-8 to register a total of 2,850,000
shares of common stock issued to the executive director, two former officers and
legal  counsel  for  services.

On  July  29, 2003 the Company issued 400,000 shares of restricted common shares
to  Mirador  Consulting  for  professional  services.

On  September 12, 2003 the Company entered into an agreement, effective June 30,
2003 with two former officers of the Company effectuating a management buyout of
the  Company's  wholly  owned subsidiary, NetSalon I Inc. Under the terms of the
Agreement,  the Company transferred 100% of the outstanding shares of NSLN 1 and
all  the  assets  of  NSLN  1  and  the Company assumed substantially all of the
liabilities  of the Company in consideration for the former officers waiving any
and  all  rights  or  obligations  previously  due  to  them.