T & G 2




                           Filing Type:  10QSB
                           Description:  Quarterly Report
                           Filing Date:  November 20, 2002
                            Period End:  September 30, 2002


                      Primary Exchange:  BB
                                Ticker:  ttgg



































<PAGE>



T & G 2 - 10QSB - Quarterly Report                        Date Filed: 11/20/2002
--------------------------------------------------------------------------------


                                Table of Contents
                                -----------------







                                      10QSB
                                      -----



PART I.....................................................................2
Item 1.....................................................................2
Balance Sheet..............................................................4
Income Statement...........................................................6
Cash Flow Statement........................................................7
Item 2....................................................................20
PART II...................................................................21
Item 1....................................................................21
Item 2....................................................................21
Item 3....................................................................22
Item 4....................................................................22
Item 5....................................................................22
Item 6....................................................................22





























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                                                                        Page i
<PAGE>



T & G 2 - 10QSB - Quarterly Report                        Date Filed: 11/20/2002
--------------------------------------------------------------------------------




                                      10QSB
                                      -----

                       Securities and Exchange Commission
                                Washington, D.C.

(Mark One)

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934
     For the quarterly period ended September 30, 2002


[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934
     For the transition period from __________ to ____________


                                    000-07693
                                    ---------
                            (Commission file number)


                                  T & G 2, Inc.
                                  -------------
        (Exact name of small business issuer as specified in its charter)



            Nevada                                               13-4096315
            ------                                               ----------
 (State or other jurisdiction                                  (IRS Employer
 of incorporation or organization)                           Identification No.)


      65 La Grande Avenue
        Berkeley Heights                                         07922-1466
      --------------------                                       ----------
(Address of principal executive offices)                         (Zip Code)


                                  (908)508-9008
                                  -------------
                           (Issuer's telephone number)

                                 Not Applicable
                                 --------------
         (Former name, former address and former fiscal year, if changed
                               since last report)

     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 [ ].




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                                                                        Page 1
<PAGE>



T & G 2 - 10QSB - Quarterly Report                        Date Filed: 11/20/2002
--------------------------------------------------------------------------------


                      APPLICABLE ONLY TO CORPORATE ISSUERS

     State the number of shares outstanding of each of the issuer's classes of
common equity, as of latest practicable date: Class A 9,297,077 shares of Common
Stock, $0.001par value, as of October 31, 2002; 1,142,858 Class B $0.001 par
value as of October 31, 2002


                          PART I. FINANCIAL INFORMATION
                          -----------------------------

Item 1.   Financial Statements
------------------------------









                                     T & G2
                             AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
                   CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2002 AND 2001
































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                                                                        Page 2
<PAGE>







                          T & G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)


                          INDEX TO FINANCIAL STATEMENTS


CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED




Balance Sheets as of September 30, 2002 (unaudited) and
    December 31, 2001 (audited)                                           4

Statements of Operations for the Nine and Three Months
    Ended September 30, 2002 and 2001 (unaudited)                         6

Statements of Cash Flows for the Nine Months Ended
     September 30, 2002 and 2001 (unaudited)                              7

Notes to Unaudited Condensed Consolidated Financial Statements            9






























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                                                                        Page 3
<PAGE>



<TABLE>
<CAPTION>
                         T AND G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
                      CONDENSED CONSOLIDATED BALANCE SHEETS




                                     ASSETS
                                     ------


                                                                    September 30,         December 31,
                                                                         2002                2001
                                                                     (Unaudited)           (Audited)
                                                                   ----------------    ----------------
<S>                                                                <C>                 <C>
Current Assets:
  Cash and cash equivalents                                        $       49,789      $        7,525
  Accounts receivable                                                      15,800              24,500
  Prepaid expenses and other current assets                                 2,000                 355
                                                                   ----------------    ----------------

    Total Current Assets                                                   67,589              32,380
                                                                   ----------------    ----------------

  Fixed assets, net of depreciation                                       174,487              73,590
  Deposits                                                                  2,070               2,070
                                                                   ----------------    ----------------

TOTAL ASSETS                                                       $      244,146      $      108,040
                                                                   ================    ================















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

--------------------------------------------------------------------------------
                                                                        Page 4
<PAGE>



<CAPTION>
                        T AND G 2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
                     CONSOLIDATED BALANCE SHEETS (CONTINUED)




                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                 ----------------------------------------------

                                                                    September 30,         December 31,
                                                                         2002                2001
                                                                     (Unaudited)           (Audited)
                                                                   ----------------    ----------------

LIABILITIES
<S>                                                                <C>                 <C>
Current Liabilities:
  Note payable - bank                                              $       34,749      $            -
  Note payable - other                                                    185,800                   -
  Accounts payable and accrued expenses                                   147,747              98,582
  Due to officers                                                          19,471                   -
  Due to related parties                                                  445,443             218,454
                                                                   ----------------    ----------------

      Total Current Liabilities                                           833,210             317,036
                                                                   ----------------    ----------------

      Total Liabilities                                                   833,210             317,036
                                                                   ----------------    ----------------


STOCKHOLDERS' EQUITY (DEFICIT)

   Preferred Stock, Series 3, $1.00 par value, 5,000,000
      shares authorized, 0 shares issued and outstanding
      on September 30, 2002 and December 31, 2001, respectively                 -              89,286
  Common Stock, Class A, $.001 Par Value; 31,000,000 shares
      authorized on September 30, 2002 and December 31, 2001
      respectively, and 9,297,077 and 20,511,365 shares issued
      and outstanding on September 30, 2002 and
      December 31, 2001, respectively                                       9,297              20,511
  Common Stock Class B, $.001 Par Value; 2,000,000
      shares authorized on September 30, 2002
      and December 31, 2001 respectively, and 1,142,858
      shares issued and outstanding on September 30, 2002
      and December 31, 2001, respectively                                   1,143               1,143
  Unearned compensation                                                   (11,062)            (40,312)
  Subscriptions receivable                                                 (2,255)             (1,255)
  Stock warrants outstanding                                               62,500                   -
  Additional Paid-in Capital                                            9,425,051           3,105,018
  Deficit                                                             (10,073,738)         (3,383,387)
                                                                   ----------------    ----------------

      Total Stockholders' Equity (Deficit)                               (589,064)           (208,996)
                                                                   ----------------    ----------------


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)               $      244,146      $      108,040
                                                                   ================    ================
</TABLE>


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

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                                                                        Page 5
<PAGE>



<TABLE>
<CAPTION>
                         T AND G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
         FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                                   (UNAUDITED)


                                                            NINE MONTHS ENDED                    THREE MONTHS ENDED
                                                    September 30,      September 30,      September 30,      September 30,
                                                         2002               2001               2002               2001
                                                         ----               ----               ----               ----

<S>                                                <C>                <C>                <C>                <C>
OPERATING REVENUES
  Revenue                                          $        1,800     $            -     $        1,800     $            -

COST OF SALES                                                   -                  -                  -                  -
                                                   ----------------   ----------------   ----------------   ----------------
GROSS PROFIT                                                1,800                  -              1,800                  -
                                                   ----------------   ----------------   ----------------   ----------------

OPERATING EXPENSES
   Professional fees and compensation expenses            989,485                  -            529,983                  -
   Advertising and marketing expenses                     285,446                  -            119,271                  -
   General and administrative expenses                    222,148              9,016             78,136                653
   Depreciation and amortization                            2,496                  -                229                  -
                                                   ----------------   ----------------   ----------------   ----------------
       Total Operating Expenses                         1,499,575              9,016            727,619                653
                                                   ----------------   ----------------   ----------------   ----------------

LOSS BEFORE OTHER INCOME (EXPENSE)                     (1,497,775)            (9,016)          (725,819)              (653)

OTHER INCOME (EXPENSE)
   Legal settlement                                      (172,583)                 -           (172,583)                 -
   Organization costs                                  (4,981,361)                 -                  -                  -
   Interest expense                                       (38,632)                 -            (11,061)                 -
       Total Other Income (Expense)                    (5,192,576)                 -           (183,644)                 -
                                                   ----------------   ----------------   ----------------   ----------------

NET LOSS BEFORE PROVISION FOR INCOME TAXES         $   (6,690,351)    $       (9,016)    $     (909,463)    $         (653)
Provision for Income Taxes                                      -                  -                  -                  -
                                                   ----------------   ----------------   ----------------   ----------------

NET LOSS APPLICABLE TO COMMON SHARES               $   (6,690,351)    $       (9,016)    $     (909,463)    $         (653)
                                                   ================   ================   ================   ================

NET LOSS PER BASIC AND DILUTED SHARES              $     (0.70228)    $     (0.00086)    $     (0.10690)    $     (0.00006)
                                                   ================   ================   ================   ================

WEIGHTED AVERAGE NUMBER OF COMMON
    SHARES OUTSTANDING                                  9,526,630         10,470,467          8,508,001         10,470,467
                                                   ================   ================   ================   ================
</TABLE>



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

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                                                                        Page 6
<PAGE>



<TABLE>
<CAPTION>
                         T AND G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                                   (UNAUDITED)




                                                                            2002                2001
                                                                            ----                ----

<S>                                                                   <C>                 <C>
CASH FLOW FROM OPERTING ACTIVIITES
   Net loss                                                           $   (6,690,351)     $       (9,016)
                                                                      ----------------    ----------------
   Adjustments to reconcile net loss to net cash
     used in operating activities

     Depreciation and amortization                                             2,496                   -
     Forgiveness of debt                                                           -                   -
     Amortization of unearned compensation                                    29,250                   -
     Common stock issues for debt conversions                                 62,000                   -
     Common stock issues for services and organization                     5,596,950                   -
     Common stock issues for compensation                                     77,000                   -
     Common stock issues for legal settlement                                172,583                   -
     Stock warrants issued for consulting services                            62,500                   -

  Changes in assets and liabilities
     (Increase) decrease in accounts receivable                                8,700                   -
     Decrease in inventory                                                         -                   -
     (Increase) decrease in prepaid expenses and other assets                 (1,645)                  -
     (Increase) in deposits                                                        -                   -
     Increase in accounts payable and
       accrued expenses                                                       49,165             (53,564)
                                                                      ----------------    ----------------
     Total adjustments                                                     6,058,999             (53,564)
                                                                      ----------------    ----------------

     Net cash (used in) operating activities                                (631,352)            (62,580)
                                                                      ----------------    ----------------

CASH FLOWS FROM INVESTING ACTIVITIES
   Net sales of equity securities                                                  -                   -
   Increase in amounts due to related parties                                239,489                   -
   Acquisitions of fixed assets                                             (103,393)                  -
                                                                      ----------------    ----------------

      Net cash provided by investing activities                              136,096                   -
                                                                      ----------------    ----------------





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

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                                                                        Page 7
<PAGE>



<CAPTION>
                         T AND G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                                   (UNAUDITED)


                                                                            2002                2001
                                                                            ----                ----

<S>                                                                   <C>                 <C>
CASH FLOWS FROM FINANCING ACTIVITES
    Proceeds from common stock issuances and stock subscriptions      $      285,000      $            -
    Net proceeds (payments) from officer                                      31,971                   -
    Net proceeds (payments) from issuance of notes payable - bank             34,749                   -
    Net proceeds from issuance of notes payable                              185,800                   -
                                                                      ----------------    ----------------
       Net cash provided by financing activities                             537,520                   -
                                                                      ----------------    ----------------

NET INCREASE (DECREASE) IN
    CASH AND CASH EQUIVALENTS                                                 42,262             (62,580)

CASH AND CASH EQUIVALENTS -
    BEGINNING OF PERIOD                                                        7,525              63,157
                                                                      ----------------    ----------------

CASH AND CASH EQUIVALENTS - END OF PERIOD                             $       49,789      $          577
                                                                      ================    ================


SUPPLEMENTAL DISCLOSURE OF CASH FLOW
   INFORMATION:

CASH PAID DURING THE YEAR FOR:
    Interest expense                                                  $       28,190      $       16,421
                                                                      ================    ================

SUPPLEMENTAL DISCLOSURE OF NONCASH
  ACTIVITIES:
    Issuance of common stock for:

       Consulting                                                     $    5,596,950      $      855,000
                                                                      ================    ================

       Debt conversions                                               $       62,000      $            -
                                                                      ================    ================

       Compensation                                                   $       77,000      $            -
                                                                      ================    ================

       Legal settlement                                               $      172,583      $            -
                                                                      ================    ================

    Issuance of stock warrants for consulting services                $       62,500      $            -
                                                                      ================    ================
</TABLE>


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

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                                                                        Page 8
<PAGE>


                          T & G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2002 AND 2001


NOTE 1 -  ORGANIZATION AND BASIS OF PRESENTATION
          --------------------------------------

          The condensed consolidated unaudited interim financial statements
          included herein have been prepared, without audit, pursuant to the
          rules and regulations of the Securities and Exchange Commission. The
          condensed consolidated financial statements and notes are presented as
          permitted on Form 10-QSB and do not contain information included in
          the Company's annual consolidated statements and notes. Certain
          information and footnote disclosures normally included in financial
          statements prepared in accordance with accounting principles generally
          accepted in the United States of America have been condensed or
          omitted pursuant to such rules and regulations, although the Company
          believes that the disclosures are adequate to make the information
          presented not misleading. It is suggest that these condensed
          consolidated financial statements be read in conjunction with the
          December 31, 2001 audited consolidated financial statements and the
          accompanying notes thereto. While management believes the procedures
          followed in preparing these condensed consolidated financial
          statements are reasonable, the accuracy of the amounts are in some
          respects dependent upon the facts that will exist, and procedures that
          will be accomplished by the Company later in the year.

          These condensed consolidated unaudited financial statements reflect
          all adjustments, including normal recurring adjustments which, in the
          opinion of management, are necessary to present fairly the
          consolidated operations and cash flows for the periods presented.

          On February 14, 2002, T & G2 (the "Company"), changed its name from
          International Mercantile Corporation. In addition, the Company changed
          its incorporation state to Nevada which brought about a reverse 8 to 1
          stock split, and a change in the par value of the stock to $0.001.

          Prior to the name change, on January 12, 2002, International
          Mercantile Corporation acquired Solutions Technology, Inc. ("STI"),
          formerly known as Clickese.com ("Clickese"). Upon this acquisition,
          STI became a wholly-owned subsidiary of International Mercantile
          Corporation. STI designs, develops and manufactures biometrical time
          clocks for tracking employees time and attendance.

          In addition to STI being a wholly-owned subsidiary, the Company has
          Zingo Sales Ltd. ("Zingo") who was acquired by the Company in March,
          2002 in a 2,500,000 share Class A common stock acquisition. Zingo's
          mission is to design, develop, manufacture and market easy to use
          complete solutions using the latest available technologies. Their
          first product is a fixed based bingo unit. Software has already been
          developed for this and is just as advanced if not more advanced than
          any product in the market at this time.






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                                                                        Page 9
<PAGE>


                          T & G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)
                           SEPTEMBER 30, 2002 AND 2001

NOTE 1 -  ORGANIZATION AND BASIS OF PRESENTATION (CONTINUED)
          --------------------------------------

          On April 25, 2001, Secure Time, Inc. merged into Clickese.com at which
          time the resulting company changed its name to STI. The transaction
          was valued at $1 per share for 10,500,000 shares.

          International Mercantile Corporation was originally incorporated in
          the State of Missouri, on March 10, 1971. Their business purpose
          included among other things, maintaining an Internet based personal
          computer manufacturing business selling build-to-order systems
          throughout the United States to value added retailers and other
          marketers of micro computer systems. The Company has terminated all of
          these business activities.

NOTE 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
          ------------------------------------------

          Principles of Consolidation
          ---------------------------

          The condensed consolidated financial statements include the accounts
          of the Company and all of its wholly owned subsidiaries. All
          significant intercompany accounts and transactions have been
          eliminated in consolidation.

          Use of Estimates
          ----------------

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

          Revenue and Cost Recognition
          ----------------------------

          Revenue, when generated, will be recorded on the accrual basis, when
          earned. The revenue is anticipated at being earned through the STI
          subsidiary in this current fiscal year.

          Cost is recorded on the accrual basis as well, when the services are
          incurred rather than paid for.

          Cash and Cash Equivalents
          -------------------------

          The Company considers all highly liquid debt instruments and other
          short-term investments with an initial maturity of three months or
          less to be cash equivalents.




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                                                                        Page 10
<PAGE>


                          T & G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)
                           SEPTEMBER 30, 2002 AND 2001

NOTE 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
          ------------------------------------------

          Cash and Cash Equivalents (Continued)
          -------------------------

          The Company maintains cash and cash equivalent balances at several
          financial institutions which are insured by the Federal Deposit
          Insurance Corporation up to $100,000.

          Fixed Assets
          ------------

          Fixed assets are stated at cost. Depreciation is computed primarily
          using the straight-line method over the estimated useful life of the
          assets.

          Furniture and fixtures                         7    Years
          Office equipment                             3 to 5 Years
          Equipment - Zingo Sales                        1.5  Years
          Time clock equipment                           1.5  Years
          Time clock software                            3    Years

          Income Taxes
          ------------

          The income tax benefit is computed on the pretax loss based on the
          current tax law. Deferred income taxes are recognized for the tax
          consequences in future years of differences between the tax basis of
          assets and liabilities and their financial reporting amounts at each
          year-end based on enacted tax laws and statutory tax rates.

          Advertising
          -----------

          Costs of advertising and marketing are expensed as incurred.
          Advertising and marketing costs were $345,946 and $7,700 for the nine
          months ended September 30, 2002 and 2001, respectively.

          Earnings (Loss) Per Share of Common Stock
          -----------------------------------------

          Historical net income (loss) per common share is computed using the
          weighted average number of common shares outstanding. Diluted earnings
          per share (EPS) includes additional dilution from common stock
          equivalents, such as stock issuable pursuant to the exercise of stock
          options and warrants. Common stock equivalents were not included in
          the computation of diluted earnings per share when the Company
          reported a loss because to do so would be antidilutive for periods
          presented.






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                                                                        Page 11
<PAGE>


                          T & G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)
                           SEPTEMBER 30, 2002 AND 2001

NOTE 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
          ------------------------------------------

          Earnings (Loss) Per Share of Common Stock (Continued)
          -----------------------------------------

          The following is a reconciliation of the computation for basic and
          diluted EPS:

<TABLE>
<CAPTION>
                                                         September 30,    September 30,
                                                              2002            2001
                                                              ----            ----

<S>                                                      <C>              <C>
          Net Loss                                       ($  6,690,351)       ($9,016)
                                                         --------------   ------------

          Weighted-average common shares
            outstanding (Basic)                              9,526,630     10,470,467

          Weighted-average common stock equivalents:
                Stock options                                    -              -
                Warrants                                         -              -

          Weighted-average common shares
              outstanding (Diluted)                          9,526,630     10,470,467
</TABLE>

          Options and warrants outstanding to purchase stock were not included
          in the computation of diluted EPS because inclusion would have been
          antidilutive.

          Software Development Costs
          --------------------------

          Software development costs are accounted for in accordance with
          Statement of Position 98-1, "Software Developed or Obtained for
          Internal Use". Costs incurred in a preliminary project stage are
          expensed as incurred. External direct costs, payroll and payroll
          related costs for those directly involved with a project and interest
          costs in accordance with the provisions of Statement of Financial
          Accounting Standards (SFAS) No. 34, "Capitalization of Interest Cost",
          are capitalized during the application development stage. Costs
          incurred during the post-implementation/ operation stage are expensed
          as incurred.

          Fair Value of Financial Instruments
          -----------------------------------

          The carrying amount reported in the condensed consolidated balance
          sheets for cash and cash equivalents, loans receivable, accounts
          payable and accrued expenses approximate fair value because of the
          immediate or short-term maturity of these financial instruments. The
          carrying amount reported for notes and mortgages payable approximates
          fair value because, in general, the interest on the underlying
          instruments fluctuates with market rates.




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                                                                        Page 12
<PAGE>


                          T & G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)
                           SEPTEMBER 30, 2002 AND 2001

NOTE 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
          ------------------------------------------

          Reclassifications
          -----------------

          Certain amounts for the nine months ended September 30, 2001 have been
          reclassified to conform with the presentation of the September 30,
          2002 amounts. The reclassifications have no effect on net income for
          the nine months ended September 30, 2001.

          Recent Accounting Pronouncements
          --------------------------------

          In June 1998, the Financial Accounting Standards Board issued SFAS No.
          133, "Accounting for Derivative Instruments and Hedging Activities".
          SFAS No. 133 requires companies to recognize all derivative contracts
          as either assets or liabilities in the balance sheet and to measure
          them at fair value. If certain conditions are met, a derivative may be
          specifically designated as a hedge, the objective of which is to match
          the timing of the gain or loss recognition on the hedging derivative
          with the recognition of (i) the changes in the fair value of the
          hedged asset or liability that are attributable to the hedged risk or
          (ii) the earnings effect of the hedged forecasted transaction. For a
          derivative not designated as a hedging instrument, the gain or loss is
          recognized in income in the period of change. On June 30, 1999, the
          FASB issued SFAS No. 137, "Accounting for Derivative Instruments and
          Hedging Activities - Deferral of the Effective Date of FASB Statement
          No. 133". SFAS No. 133 as amended by SFAS No. 137 is effective for all
          fiscal quarters of fiscal years beginning after June 15, 2000. In June
          2000, the FASB issued SFAS No. 138, "Accounting for Certain Derivative
          Instruments and Certain Hedging Activities". SFAS No. 133 as amended
          by SFAS No. 137 and 138 is effective for all fiscal quarters of fiscal
          years beginning after June 15, 2000.

          Historically, the Company has not entered into derivatives contracts
          to hedge existing risks or for speculative purposes. Accordingly, the
          Company does not expect adoption of the new standard to have a
          material effect on our consolidated financial statements.

          In December 1999, the Securities and Exchange Commission issued Staff
          Accounting Bulletin ("SAB") No. 101, "Revenue Recognition in Financial
          Statements." SAB 101 provides guidance for revenue recognition under
          certain circumstances, and is effective during the first quarter of
          fiscal year 2001. SAB 101 is not expected to have a material effect on
          our consolidated results of operations, financial position and cash
          flows.








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                                                                        Page 13
<PAGE>


                          T & G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)
                           SEPTEMBER 30, 2002 AND 2001

NOTE 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
          ------------------------------------------

          Recent Accounting Pronouncements (Continued)
          --------------------------------

          On March 16, 2000, the Emerging Issues Task Force issued EITF 99-19
          "Recording Revenue as a Principal versus Net as an Agent" which
          addresses the issue of how and when revenues should be recognized on a
          Gross or Net method as the title implies. The emerging Issues Task
          Force has not reached a consensus but sites SEC Staff Accounting
          Bulletin 101. EITF 99-19 does not affect our consolidated financial
          statements.

          On July 20, 2000, the Emerging Issues Task Force issued EITF 00-14
          "Accounting For Certain Sales Incentives" which establishes accounting
          and reporting requirements for sales incentives such as discounts,
          coupons, rebates and free products or services. Generally, reductions
          in or refunds of a selling price should be classified as a reduction
          in revenue. For SEC registrants, the implementation date is the
          beginning of the fourth quarter after the registrant's fiscal year end
          December 15, 1999. EITF 00-14 does not affect our consolidated
          financial statements.

          In June 2001, the FASB issued Statement No. 142 "Goodwill and Other
          Intangible Assets". This Statement addresses financial accounting and
          reporting for acquired goodwill and other intangible assets and
          supersedes APB Opinion No. 17, Intangible Assets. It addresses how
          intangible assets that are acquired individually or with a group of
          other assets (but not those acquired in a business combination) should
          be accounted for in financial statements upon their acquisition. This
          Statement also addresses how goodwill and other intangible assets
          should be accounted for after they have been initially recognized in
          the financial statements. This statement has been considered when
          determining impairment of goodwill in certain transactions.


NOTE 3 -  ACCOUNTS RECEIVABLE
          -------------------

          Of the amounts due the Company at September 30, 2002, $14,000 are due
          from a company under a licensing arrangement.













--------------------------------------------------------------------------------
                                                                        Page 14
<PAGE>


                          T & G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)
                           SEPTEMBER 30, 2002 AND 2001

NOTE 4 -  FIXED ASSETS
          ------------

          Fixed assets consist of the following at September 30, 2002:


          Office equipment                                 $     3,463
          Furniture and fixtures                                 2,646
          Equipment - Zingo Sales                               79,732
          Time clock equipment                                  38,068
          Time clock software                                   54,144
                                                           ------------
                                                               178,053
            Accumulated Depreciation                            (3,566)
                                                           ------------

                             Total                         $   174,487
                                                           ============

          Depreciation expense was $2,496 and $803 for the nine months ended
          September 30, 2002 and 2001.

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

          On April 3, 2001, the Company entered into a line of credit agreement
          with a bank. The loan, which is due on demand bears interest at prime
          plus 2.25% and provides for maximum borrowings up to $63,100. The line
          of credit is guaranteed by a majority shareholder. The outstanding
          balance at September 30, 2002 is $34,749. Interest expense charged to
          operations for the nine months ended September 30, 2002 was $2,101.

          The Company pursuant to a note agreement dated May 28, 2002 with
          Protech Trading Inc. has a note payable in the amount of $68,800, due
          May 30, 2003. Interest on this note is payable quarterly, at one
          percent per quarter, four percent annually. The note is collateralized
          by 200,000 shares of the Company's Class A Common Stock.

          The Company has a note payable in the amount of $117,000 due to Largo
          Holdings. During the nine months ended September 30, 2002, $50,000
          plus $12,000 in interest expense was converted to 100,000 shares of
          the Company's Class A Common Stock.












--------------------------------------------------------------------------------
                                                                        Page 15
<PAGE>


                          T & G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)
                           SEPTEMBER 30, 2002 AND 2001

NOTE 6 -  RELATED PARTY TRANSACTIONS
          --------------------------

          Amounts due to related parties at September 30, 2002 is $445,443 and
          consist of the following:

          Two notes payable to an officer totaling $300,000, at 10% interest,
          payable monthly, due on demand.

          A note payable to a company through common ownership in the amount of
          $145,443 due on demand.

NOTE 7 -  ACQUISITIONS
          ------------

          On January 12, 2002, the Company acquired STI as a wholly owned
          subsidiary for 20,511,365 shares of common stock.

          In March, 2002, Zingo was acquired as a wholly owned subsidiary by the
          Company for 2,500,000 shares of common stock.

NOTE 8 -  STOCKHOLDERS' EQUITY
          --------------------

          As of September 30, 2002 and December 31, 2001, there were 31,000,000
          authorized shares, and 9,297,077 and 20,511,365 issued and outstanding
          shares of the Company's common stock A with a par value of $.001.

          As of September 30, 2002 and December 31, 2001, there were 2,000,000
          authorized shares, and 1,142,858 issued and outstanding shares of the
          Company's common stock B with a par value of $.001.

          As of September 30, 2002 and December 31, 2001, there were 5,000,000
          authorized shares, respectively, and 0 and 89,286 issued and
          outstanding shares of the Company's preferred stock with a par value
          of $1.00. The 89,286 shares of preferred stock issued during the year
          were cancelled during 2002, and preferred stock is no longer
          authorized to be issued.

          The shares of common stock issued for the nine months ended September
          30, 2002 relate to the following:

          There were 200,000 shares of stock issued in the quarter ended March
          31, 2002 for consulting services at a fair value of $.19 per share
          ($38,000).

          There were 2,500,000 shares of stock issued in the quarter ended March
          31, 2002 for the acquisition of Zingo at a fair value of $1.95 per
          share ($4,875,000).




--------------------------------------------------------------------------------
                                                                        Page 16
<PAGE>


                          T & G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)
                           SEPTEMBER 30, 2002 AND 2001

NOTE 8 -  STOCKHOLDERS' EQUITY (CONTINUED)
          --------------------------------

          There were 55,000 shares of stock issued in the quarter ended June 30,
          2002 for consulting services at a fair value of $.57 per share
          ($31,350).

          There were 100,000 shares of stock issued in the quarter ended June
          30, 2002 in a debt conversion at a fair value of $.62 per share
          ($62,000) representing a debt reduction of $50,000 and accrued
          interest of $12,000.

          There were 200,000 shares of stock issued in the quarter ended June
          30, 2002 for consulting services at a fair value of $.57 per share
          ($114,000).

          There were 255,000 shares of stock issued in the quarter ended June
          30, 2002 for consulting services at a fair value of $.50 per share
          ($127,500).

          There were a total of 239,000 shares of stock issued in the quarter
          ended June 30, 2002 for $135,000 cash.

          There were 200,000 shares of stock issued in the quarter ended
          September 30, 2002 for consulting services at a fair value of $1.02
          per share ($204,000).

          There were 50,000 shares of stock issued in the quarter ended
          September 30, 2002 for consulting services at a fair value of $1.02
          per share ($51,000).

          There were 100,000 shares of stock issued which were converted for
          stock options exercised at a fair value of $1.02 per share ($102,000)
          for compensation to officers. The stock options had an exercise price
          of $.25 per share. The differential from exercise price to fair value
          was charged to compensation expense in the quarter ended September 30,
          2002.

          There were 200,000 shares of stock issued which were converted for
          stock warrants previously purchased at $.75 per share for $150,000
          cash. The fair value of the stock at the time of conversion was $.92
          per share. The differential from exercise price to fair value was
          charged to consulting expense in the quarter ended September 30, 2002.

          The Company issued 50,000 in stock warrants at a value of $1.25 per
          share. The $62,500 was charged to consulting expense in the quarter
          ended September 30, 2002.

          The Company issued 80,000 shares of stock in the quarter ended
          September 30, 2002 for consulting services at a fair value of $.66 per
          share ($52,800).






--------------------------------------------------------------------------------
                                                                        Page 17
<PAGE>


                          T & G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)
                           SEPTEMBER 30, 2002 AND 2001

NOTE 8 -  STOCKHOLDERS' EQUITY (CONTINUED)
          --------------------

          The Company issued 20,000 shares of stock in the quarter ended
          September 30, 2002 for consulting services at a fair value of $.54 per
          share ($10,800).

          The Company issued 25,000 shares of stock in the quarter ended
          September 30, 2002 for consulting services at a fair value of $.48 per
          share ($12,000).

          The Company issued 25,000 shares of stock in the quarter ended
          September 30, 2002 for consulting services at a fair value of $.42 per
          share ($10,500).

          The Company issued 908,333 shares of stock in the quarter ended
          September 30, 2002 in settlement of a lawsuit at a fair value of $.19
          per share ($172,583).

          The Company issued 100,000 shares of stock in the quarter ended
          September 30, 2002 for promotional services at a fair value of $.36
          per share ($36,000).

NOTE 9 -  GOING CONCERN
          -------------

          As shown in the accompanying condensed consolidated financial
          statements, the Company incurred substantial net losses for the years
          ended December 31, 2001 and 2000 as well as for the nine months ended
          September 30, 2002. There is no guarantee whether the Company will be
          able to generate enough revenue and/or raise capital to support those
          operations. This raises substantial doubt about the Company's ability
          to continue as a going concern.

          Management also states that they are confident that they can improve
          operations and raise the appropriate funds needed through the
          advancements in STI and Zingo over the last six months.

          The condensed consolidated financial statements do not include any
          adjustments that might result from the outcome of these uncertainties.

NOTE 10 -  SUBSEQUENT EVENT
           ----------------

          In November, the Company issued 225,000 shares of stock for consulting
          services at a fair value of $.24 per share ($54,000).









--------------------------------------------------------------------------------
                                                                        Page 18
<PAGE>


                          T & G2 AND SUBSIDIARIES, INC.
                 (FORMERLY INTERNATIONAL MERCANTILE CORPORATION)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)
                           SEPTEMBER 30, 2002 AND 2001

NOTE 10 -  SUBSEQUENT EVENT (CONTINUED)
           ----------------

          In November, the Company renegotiated their contractual relationship
          with the United States Military for the placement of 50 Bingo units.
          The units will no longer be placed at the Hunter Army Airfield Base.
          These units will now be placed at another military installation and
          the contract has been extended from two to three years. As part of the
          revised contract, the Company will be guaranteed a return for each
          unit, and the Company is anticipating revenues approximating $291,000
          over the term of the contract.

          The Company is in the final phase of receiving its gaming license in
          the State of Arizona. With this license, the Company is anticipating
          the placement of 36 Bingo units to the Fort McDowell Native American
          Casino. This is anticipated to take place within the next 30 days.

          The Company has entered into a distribution agreement for the
          distribution of its Bingo units in Wyoming. The Company has placed its
          first order for approximately 15 Bingo units.

          In November, the Company installed its Securetime system in a
          restaurant at a major Las Vegas, Nevada casino. The Company has also
          received an order for the Securetime system from a Native American
          business in Oklahoma and the installation should be completed by late
          November.


















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                                                                        Page 19
<PAGE>



T & G 2 - 10QSB - Quarterly Report                        Date Filed: 11/20/2002
--------------------------------------------------------------------------------



Item 2.   Management's Discussion and Analysis or Plan of Operation
-------------------------------------------------------------------

Introduction
------------

The following discussion and analysis highlights the financial position of T &
G2, Inc. (the "Company" or "us") at September 30, 2002 and compared to year end
December 31, 2001 and plan of operations for the three month, and nine month
periods ended September 30, 2002 and 2001. This discussion and analysis
contained in our Annual Report on Form-10KSB for the year ended December 31,
2001. Financial information contained within this report is condensed and
unaudited.

Certain statements in this Form 10-QSB, including information set forth under
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations constitute `forward-looking statements' within the meaning of the
Private Securities Litigation Reform Act of 1995 (the "Act"). Such
forward-looking statements are identified by words such as "intends,"
"anticipates." "hopes," and "expects," among others, and include, without
limitation, statements regarding the Company's plan of business operations,
anticipated revenues, related expenditures, and the results of any business
transactions. Factors that could cause actual results to differ materially
include, among others, the following: acceptability of the Company's services in
the market place, general economic conditions, political and economic conditions
in the United States and abroad, and competition. Investors are cautioned not to
put undue reliance on forward-looking statements. Except as otherwise required
by applicable securities statutes or regulations, the Company disclaims any
intent to update publicly these forward-looking statements, whether as a result
of new information, future events or otherwise.

Plan of Operation
-----------------

The Company's management intends to seek funding from a variety of sources
including private placements of its stock, public offerings of its stock, as
well as debt financing. Additionally, business combinations with entities with
significant cash will be considered. However, there can be no assurance
management will be successful in these endeavors.

For the following three month period from October 1, 2002 to December 31, 2002
it is anticipated, absent the Company's obtaining other sources of liquidity as
described above, the Company's primary funding for ongoing corporate expenses,
such as legal and accounting fees and filing fees, will be provided by the
private sale of the Company's securities. Thereafter, the Company anticipates to
further expand and generate revenues from the sale of their time clocks and
computerized bingo systems.

The Company's management has had ongoing discussions with investment bankers
pertaining to a stair step financing plan. This will encompass initial seed



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                                                                        Page 20
<PAGE>



T & G 2 - 10QSB - Quarterly Report                        Date Filed: 11/20/2002
--------------------------------------------------------------------------------


capital, a first and second level of private placements, bridge financing, and
mezzanine financing. However, there can be no assurance management will be
successful in these endeavors.

During the three month period ended September 30, 2002, the Company realized a
net loss of $909,463 compared with $653 for the three-month period ended
September 30, 2001. Of the $909,463 loss for the period, $723,183 represents
services provided for issuances of common stock. We anticipate that going
forward, we will streamline administrative, and professional fees to conserve
cash flow. Once the recognition of revenues occurs, certain expenses will
increase, but only in accordance with the increase in revenues.

Liquidity and Capital Resources
-------------------------------

For the nine months ended September 30, 2002, the Company used $631,352 in
operating activities compared to $62,580 for the nine months ended September 30,
2001. Most noted in this increase in cash used in operations is the increase in
accounts payable and accrued expenses, which we believe should be improved by
the year end, and the issuances of stock for services, and organization. The
Company did receive $285,000 from the sale of stock in the nine months ended
September 30, 2002, compared to $-0- for the nine months ended September 30,
2001. Additionally, the Company has borrowed certain amounts from related
parties as well as banks to finance the beginning production costs for its
timeclocks and computerized bingo systems.

The Company has made significant progress with respect to future funding.
Funding is expected shortly which will enable the Company to market, and produce
its products.

Going Concern. The accompanying financial statements have been prepared assuming
the Company will continue as a going concern. The Company has suffered recurring
losses from operations and at September 30, 2002, had a working capital deficit.
The financial statements do not include any adjustments that might result from
the outcome of this uncertainty.



                           PART II. OTHER INFORMATION
                           --------------------------


Item 1.   Legal Proceedings
---------------------------

     The Company is not engaged in any legal proceedings except litigation in
the ordinary course of its business. In the opinion of management, the amount of
ultimate liability with respect to any such proceedings will not be material to
the Company's financial position or results of operations.


Item 2.   Changes in Securities
-------------------------------

     None.


--------------------------------------------------------------------------------
                                                                        Page 21
<PAGE>



T & G 2 - 10QSB - Quarterly Report                        Date Filed: 11/20/2002
--------------------------------------------------------------------------------


Item 3.   Defaults Upon Senior Securities
-----------------------------------------

     None.


Item 4.   Submission of Matters to a Vote of Securities Holders
---------------------------------------------------------------

     No matters were submitted to a vote of the security holders of the Company
during its fiscal quarter ended September 30, 2002.


Item 5.   Other Information
---------------------------

     None.


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

          (a)  Exhibits

               None.

          (b)  Reports on Form 8-K.

               The Company reported an 8K for the change of name and merger into
          T & G 2 from Solutions Technology and International Mercantile
          Corporation.



























--------------------------------------------------------------------------------
                                                                        Page 22
<PAGE>



T & G 2 - 10QSB - Quarterly Report                        Date Filed: 11/20/2002
--------------------------------------------------------------------------------




                                   SIGNATURES
                                   ----------

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


T & G 2, Inc.


Date: November 20, 2002            By:  /s/ James Farinella
                                      -------------------------------------
                                      James Farinella
                                      Chairman, Chief Executive Officer and
                                      President








































--------------------------------------------------------------------------------
                                                                        Page 23
<PAGE>



T & G 2 - 10QSB - Quarterly Report                        Date Filed: 11/20/2002
--------------------------------------------------------------------------------


                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certifies, in his capacity as an officer of T & G2, Inc.
(the "Company"), for purposes of 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

     A.   the Quarterly Report of the Company on Form 10QSB for the period ended
          September 30, 2002 fully complies with the requirements of Section
          13(a) of the Securities Exchange Act of 1934; and
     B.   the information contained in such report fairly presents, in all
          material respects, the financial condition and results of operation of
          the Company.


Dated: November 20, 2002



/s/ James Farinella

James Farinella
Chairman, Chief Executive Officer and President






















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                                                                        Page 24