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U.S. Securities & Exchange CommissionWashington, D.C. 20549

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FORM 10-QSB

(Mark One)

|/x/ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | ---------------------------------------------------------------------------------------

For the Quarterly Period Ended March 31, 2001

|/ / | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | ----------------------------------------------------------------------------------------

Commission file number 0-25764

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OneLink, Inc.(Exact name of small business issuer as specified in its charter)

Minnesota(State or other jurisdiction
of incorporation or organization)

41-1675041(IRS Employer
Identification No.)


10340 Viking Drive, Suite 150
Eden Prairie, MN 55344(Address of principal executive offices)

952-996-9000(Issuer's telephone number)

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Check
whether the issuer (1) filed all reports required to be filed by section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES
[X]  NO [ ]

APPLICABLE TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 9,861,254 shares of common stock
outstanding as of May 7, 2001 par value $.01 per share.

Transitional
Small Business Disclosure Format (check one); YES [ ]  NO [X]

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OneLink, Inc.
Form 10-QSB
Quarter Ended March 31, 2001

Table of Contents

|              |  |                                                                                 |  | Page No.
|------------- |  | ------------------------------------------------------------------------------- |  | --------
|PART I        |  | Financial Information                                                           |  | 3       
|Item 1.       |  | Financial Statements (Unaudited)                                                |  |         
|              |  | Balance Sheets at March 31, 2001 and December 31, 2000                          |  | 3       
|              |  | Statements of Operations for the three months ended March 31, 2001 and
    2000 |  | 4       
|              |  | Statements of Cash Flows for the three months ended March 31, 2001 and
    2000 |  | 5       
|              |  | Notes to Financial Statements                                                   |  | 6       
|Item 2.       |  | Management's Discussion and Analysis or Plan of Operations                      |  | 6       
|PART II       |  | Other Information                                                               |  | 9       
|Item 1.       |  | Legal Proceedings                                                               |  | 9       
|Item 6.       |  | Exhibits and Reports on Form 8-K                                                |  | 10      
|SIGNATURES    |  | 11                                                                             
|Exhibit Index |  | 12                                                                             

2

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PART IFinancial Information

Item 1. Financial Statements

OneLink, Inc.  Balance Sheets

|                                           |                                                                                                                              | March 31,
2001 |           | December 31,
2000 |  
|------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------- | -------------- | --------- | ----------------- | -
|
|Assets                                     |                                                                                                                              |                |           |                   |  
|Current assets:                            |                                                                                                                              |                |           |                   |  
|                                           | Cash and cash equivalents                                                                                                    |                | $         | 811,189           |  
|                                           | Trade accounts receivable, net of allowance for doubtful accounts of $0 in 2001 and 2000                                     |                |           | 138,477           |  
|                                           | Prepaid expenses                                                                                                             |                |           | 146,802           |  
|                                           |                                                                                                                              |                |           |                   |  
|Total current assets                       |                                                                                                                              |                | 1,096,468 |                   |  
|                                           |                                                                                                                              |                |           |                   |  
|Property and equipment:                    |                                                                                                                              |                |           |                   |  
|                                           | Furniture and equipment                                                                                                      |                |           | 600,945           |  
|                                           | TeleSmart equipment                                                                                                          |                |           | 1,045,072         |  
|                                           | Product equipment                                                                                                            |                |           | 214,505           |  
|                                           | Web based software                                                                                                           |                |           | 745,940           |  
|                                           |                                                                                                                              |                |           |                   |  
|                                           | Total property and equipment                                                                                                 |                |           | 2,606,462         |  
|                                           | Accumulated depreciation and amortization                                                                                    |                |           | (1,797,581        | )
|                                           |                                                                                                                              |                |           |                   |  
|                                           |                                                                                                                              |                | 808,881   |                   |  
|                                           |                                                                                                                              |                |           |                   |  
|Other assets:                              |                                                                                                                              |                |           |                   |  
|                                           | Long-term prepaid expenses                                                                                                   |                |           | 645,636           |  
|                                           | Deposits                                                                                                                     |                |           | 11,465            |  
|                                           |                                                                                                                              |                |           |                   |  
|                                           |                                                                                                                              |                | 657,101   |                   |  
|                                           |                                                                                                                              |                |           |                   |  
|Total assets                               |                                                                                                                              | $              | 2,562,450 |                   | $
|                                           |                                                                                                                              |                |           |                   |  
|Liabilities and Shareholders' Equity       |                                                                                                                              |                |           |                   |  
|Current liabilities:                       |                                                                                                                              |                |           |                   |  
|                                           | Accounts payable                                                                                                             |                | $         | 46,315            |  
|                                           | Accrued payroll and related taxes                                                                                            |                |           | 236,111           |  
|                                           | Accrued expenses                                                                                                             |                |           | 183,387           |  
|                                           | Deferred revenue                                                                                                             |                |           | 462,593           |  
|                                           |                                                                                                                              |                |           |                   |  
|Total current liabilities                  |                                                                                                                              |                | 928,406   |                   |  
|                                           |                                                                                                                              |                |           |                   |  
|Shareholders' equity:                      |                                                                                                                              |                |           |                   |  
|                                           | Common stock, par value $.01 per share, Authorized shares50,000,000; Issued and outstanding shares: 2001 and 20009,861,254 |                |           | 98,612            |  
|                                           | Additional paid-in capital                                                                                                   |                |           | 15,515,043        |  
|                                           | Stock subscription receivable                                                                                                |                |           | (223,922          | )
|                                           | Accumulated deficit                                                                                                          |                |           | (13,755,689       | )
|                                           |                                                                                                                              |                |           |                   |  
|Total shareholders' equity                 |                                                                                                                              |                | 1,634,044 |                   |  
|                                           |                                                                                                                              |                |           |                   |  
|Total liabilities and shareholders' equity |                                                                                                                              | $              | 2,562,450 |                   | $
|                                           |                                                                                                                              |                |           |                   |  

See accompanying notes to financial statements.

3

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OneLink, Inc.    Statements of Operations    (unaudited)

|                                                                  |                                  | Three months ended
March 31, |          
|----------------------------------------------------------------- | -------------------------------- | ---------------------------- | ---------
|
|Revenues                                                          |                                  |                              |          
|                                                                  | TeleSmart                        |                              | $        
|                                                                  | Consulting                       |                              |          
|                                                                  | Product/Set-up fees              |                              |          
|                                                                  | Customer Service                 |                              |          
|                                                                  |                                  |                              |          
|Total Revenues                                                    |                                  |                              | 530,739  
|Cost of revenues                                                  |                                  |                              | 305,952  
|                                                                  |                                  |                              |          
|Gross profit                                                      |                                  |                              | 224,787  
|                                                                  |                                  |                              |          
|Operating expenses:                                               |                                  |                              |          
|                                                                  | Selling                          |                              |          
|                                                                  | General and administrative       |                              |          
|                                                                  | Research and product development |                              |          
|                                                                  |                                  |                              |          
|Total operating expenses                                          |                                  |                              | 798,012  
|                                                                  |                                  |                              |          
|Operating loss                                                    |                                  |                              | (573,225 
|Interest income                                                   |                                  |                              | 7,340    
|Interest expense                                                  |                                  |                              | 0        
|Other income                                                      |                                  |                              | 0        
|                                                                  |                                  |                              |          
|Net loss                                                          |                                  | $                            | (565,885 
|                                                                  |                                  |                              |          
|Net loss per common share:                                        |                                  |                              |          
|                                                                  | Basic and Diluted                |                              | $        
|                                                                  |                                  |                              |          
|Weighted average number of shares outstanding (Basic and Diluted) |                                  |                              | 9,861,254
|                                                                  |                                  |                              |          

See accompanying notes to financial statements.

4

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OneLink, Inc.    Statements of Cash Flows    (unaudited)

|                                                                            |                                              | Three months ended March 31,                                  |         
|--------------------------------------------------------------------------- | -------------------------------------------- | ------------------------------------------------------------- | --------
|
|Operating activities:                                                       |                                              |                                                               |         
|Net loss                                                                    |                                              | $                                                             | (565,885
|Adjustments to reconcile net loss to net cash used in operating activities: |                                              |                                                               |         
|                                                                            | Depreciation and amortization                |                                                               |         
|                                                                            | Warrants issued for services                 |                                                               |         
|                                                                            | Net gain on sale of property and equipment   |                                                               |         
|                                                                            | Changes in operating assets and liabilities: |                                                               |         
|                                                                            |                                              | Accounts receivable, net                                      |         
|                                                                            |                                              | Computer parts and supplies, net                              |         
|                                                                            |                                              | Prepaid expenses and deposits                                 |         
|                                                                            |                                              | Accounts payable and accrued expenses                         |         
|                                                                            |                                              | Deferred revenue                                              |         
|                                                                            |                                              |                                                               |         
|Net cash provided (used) by operating activities                            |                                              |                                                               | 228,085 
|                                                                            |                                              |                                                               |         
|Investing activities:                                                       |                                              |                                                               |         
|Proceeds from sale of asset                                                 |                                              |                                                               | 0       
|Purchases of property and equipment                                         |                                              |                                                               | (70,498 
|                                                                            |                                              |                                                               |         
|Net cash used in investing activities                                       |                                              |                                                               | (70,498 
|                                                                            |                                              |                                                               |         
|Financing activities:                                                       |                                              |                                                               |         
|Proceeds from issuance of stock options                                     |                                              |                                                               | 0       
|Payments on contingent notes payable                                        |                                              |                                                               | 0       
|Proceeds from payment on stock subscription receivable                      |                                              |                                                               | 0       
|Proceeds from warrants excercised                                           |                                              |                                                               | 0       
|Payments on short-term and long-term notes payable                          |                                              |                                                               | 0       
|                                                                            |                                              |                                                               |         
|Net cash provided by financing activities                                   |                                              |                                                               | 0       
|                                                                            |                                              |                                                               |         
|Increase (decrease) in cash and cash equivalents                            |                                              |                                                               | 157,587 
|Cash and cash equivalents at beginning of period                            |                                              |                                                               | 653,602 
|                                                                            |                                              |                                                               |         
|Cash and cash equivalents at end of period                                  |                                              | $                                                             | 811,189 
|                                                                            |                                              |                                                               |         
|Supplemental Disclosures of Cash Flow Information:                          |                                              |                                                               |         
|                                                                            | Cash paid during the period for interest     |                                                               | $       
|                                                                            | Cash paid during the period for taxes        |                                                               | $       
|                                                                            | Noncash financing activities:                |                                                               |         
|                                                                            |                                              | Increase in accounts receivable for warrants exercised        |         
|                                                                            |                                              | Common stock issued in exchange for long-term prepaid expense |         

See accompanying notes to financial statements.

5

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OneLink, Inc.    Notes to Financial Statements    March 31, 2001    (unaudited)

Note 1. Summary of Significant Accounting Policies.

Interim Financial Information

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America
and pursuant to the rules and regulations of the U. S. Securities and Exchange Commission for interim financial information. Accordingly, certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. Operating results for the three months ended
March 31, 2001 are not necessarily indicative of the results that may be expected for the year ending December 31, 2001. The accompanying financial statements and related notes should be
read in conjunction with the audited financial statements of the Company, and notes thereto, for the fiscal year ended December 31, 2000, included in the Company's Annual Report on
Form 10-KSB for the year ended December 31, 2000.

The
financial information furnished reflects, in the opinion of management, all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results
of the interim periods presented.

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

The accompanying management's discussion and analysis of the Company's financial condition and results of operations should be read in conjunction with
Management's Discussion and Analysis of Financial Condition and Results of Operations and the audited financial statements of the Company, and notes thereto, for the fiscal year ended
December 31, 2000, included in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2000.

Results of Operations

The following table sets forth certain Statements of Operations data as a percentage of revenues.

First
Quarter
2001

First
Quarter
2000Revenues

100.0
%
100.0
%Cost of revenues

57.6

57.7Gross profit

42.4

42.3Operating expenses:Selling

25.3

23.8General & administrative

89.0

91.8Research & product development

36.0

101.1Total operating expenses

150.3

216.7Other income

1.4

9.0Net loss

(106.6
)%
(165.4
)%


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Revenues

We had revenues of $530,739 for the three months ended March 31, 2001, an increase of $10,269 or 2%, compared to $520,470 for the three months ended
March 31, 2000. This result was due to an increase of approximately $51,000 in revenues for our consulting line of business, arising from the implementation of our TeleSmart services for an
additional Incumbent Local Exchange Carrier (an
"ILEC"). The increase in consulting revenues was offset by decreases in our Product/Set-up fees revenues of approximately $28,200 and in our TeleSmart revenues of approximately $12,000.
Product revenues for the first quarter of 2000 were higher due to one-time conversion fees that arose from the migration of our customers' end users from our software product to our
TeleSmart Web product. TeleSmart revenues declined slightly due to discounted rates given to one customer in exchange for marketing efforts to increase future sales.

Cost of Revenues

Cost of revenues for the three months ended March 31, 2001 were $305,952, an increase of $5,897 or 2%, compared to $300,055 for the three months ended
March 31, 2000. The increase was a result of increased consulting costs by approximately $13,000. Consulting costs rose as a result of increased personnel expenses for integration work related
to implementing TeleSmart for an additional ILEC customer. This increase was offset by overall decreased cost of revenues for Product/Set-up fees by approximately $4,000 and for TeleSmart
by approximately $4,000. As a result of our diminished reliance on external consultants, Product/Set-up fees' costs and TeleSmart's costs decreased by approximately $36,000. However,
personnel costs increased by approximately $19,000 due to additional internal employees. We do not anticipate significant costs for external consultants in 2001. Compared to the first quarter of 2000,
our TeleSmart distribution costs for the first quarter of 2001 decreased by approximately $13,000 with the discontinuance of our paper, disk, and software products at the end of 2000. However,
maintenance fees for our systems increased by approximately $18,000 in the first quarter of 2001 compared to the first quarter of 2000.

Our
gross profit for the three months ended March 31, 2001 was $224,787, an increase of $4,372 or 2%, compared to $220,415 for the three months ended March 31, 2000. Our
gross profit as a percentage of revenue, of approximately 42%, remained unchanged from the first quarter of 2000.

Selling Expenses

We had selling expenses of $134,515 for the three months ended March 31, 2001. This was an increase of $10,945 or 9%, compared to $123,570 for the three
months ended March 31, 2000. We have been focusing on new marketing strategies aimed at end users of our product in an attempt to increase the visibility and use of our products. As a result,
our marketing expenses increased by approximately $60,000 for the first quarter of 2001 compared to the first quarter of 2000. We anticipate our marketing expenses to be higher than 2000 levels for at
least the first half of 2001. Offsetting the increase in marketing expenses were generally lower costs for personnel and consulting.

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General and Administrative Expenses

We had general and administrative expenses of $472,584 for the three months ended March 31, 2001. This was a decrease of $5,322 or 1%, compared to
$477,906 for the three months ended March 31, 2000. Professional fees decreased for the first quarter of 2001. This was a result of lower legal fees of approximately $41,000 and lower
consulting fees of approximately $10,000. However, personnel costs rose by approximately $47,000. This was a result of the change in mix of general and administrative personnel. The mix changed by the
reduction of general and administrative personnel who were billable in the first quarter of 2000 to consulting projects or research and development projects and the addition of general and
administrative personnel who are not billable to these projects.

Research and Product Development Expenses

We had research and product development expenses of $190,913 for the three months ended March 31, 2001. This was a decrease of $335,492 or 64%, compared
to $526,405 for the three months ended March 31, 2000. This decrease was the result of fewer external consulting costs (approximately $189,000) due to the hiring of three additional employees.
These new hires increased personnel expenses by approximately $38,000. In addition, depreciation expenses decreased by approximately $146,000 due to the fact that some of our assets became fully
depreciated in the fourth quarter of 2000.

Other Income and Expense

Interest income for the three months ended March 31, 2001 was $7,340, which represented a decrease of $39,466 or 84% compared to the three months ended
March 31, 2000. The decrease is a result of less cash and cash equivalents held by the Company during the three-month period ended March 31, 2001. We had no interest expense for the
three months ended March 31, 2001 or for the three months ended March 31, 2000. There was no other non-interest expense or income for the three months ended March 31,
2001 compared to $50 of other non-interest income for the three months ended March 31, 2000.

Net Loss

The Company incurred a net loss of $565,885 for the three months ended March 31, 2001 compared to a net loss of $860,610 for the three months ended
March 31, 2000, which is a decrease of $294,725 or 34%. The decrease in our net loss was attributed mainly to decreased external consulting costs and a reduction in our depreciation expenses.

Liquidity and Capital Resources

We had cash of $811,189 and working capital of $168,062 as of March 31, 2001. Cash provided by operating activities during the three-month period ended
March 31, 2001 was $228,084. Cash used in investing activities was $70,498 for the purchase of property and equipment.

We
are currently in the process of raising additional funds through a private placement of preferred stock. The private placement allows for up to 5,000,000 shares of preferred stock
to be issued at a price of $0.50 per share. We expect to close on the private placement in the second quarter of 2001.

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Our management believes that current cash levels and expected revenues from operations, combined with the proceeds from the sale of equity, will be sufficient to support our operating
capital needs for the remainder of 2001, assuming we are able to generate sufficient revenues and control expenses. Our management's projections with respect to our ability to meet its working capital
requirements during the foreseeable future are based upon: (i) generating sales that exceed the Company's fiscal 2000 sales; and (ii) avoiding any significant increase in expenses.
Failure to meet either of these objectives could have a material adverse effect on the Company's business. We will continue to seek additional capital as needed in the future.

Although
we believe we can increase our revenues and improve cash flow, there are no assurances that we will be successful in doing so. In order to obtain additional capital, we may
issue equity securities at a price that would result in dilution to existing shareholders. In the event we decide to seek other forms of additional financing, there is no assurance that additional
capital will be available to us on acceptable terms, if at all.

Forward Looking Statements

This Form 10-QSB contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934. All statements included herein regarding the marketing efforts in theRevenuessection, the external consulting expenses in theCost of Revenuessection, and the anticipated marketing expenses in theSelling
Expensessection, and our ability to meet working capital requirements and raise additional funds in theLiquidity and Capital
Resourcessection, as well as other statements that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including
such things as future capital expenditures (including the amount and nature thereof), business strategy and measures to implement strategy, competitive strengths, goals, expansion and other such
matters are forward-looking statements. Actual events may differ materially from those anticipated in the forward-
looking statements. Important factors that may cause such a difference include our possible inability to raise additional funds, long sales cycles for new customers, significant reliance on our
current small number of customers, limited number of potential customers, general economic conditions, our reliance on a small number of products, changes in interest rates, increased competition in
our market area, technological changes and developments, our reliance on key executives, and increased regulation of the telecommunications industry in general. For additional information regarding
these and other factors, see our Annual Report on Form 10-KSB for the year ended December 31, 2000 and other recent filings with the Securities and Exchange Commission.

PART II Other Information

Item 1. Legal Proceedings

We are not a party to any material legal proceedings.

9

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Items 2. through 5. Not Applicable

Item 6. Exhibits and Reports on Form 8-K





10

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OneLink, Inc.

SIGNATURES

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

|                  |  | ONELINK, INC.(Registrant)
|----------------- |  | -------------------------
|Date: May 9, 2001 |  | BY:                      
|                  |  | BY:                      

11

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Exhibit Index

OneLink, Inc.
Form 10-QSB

|Exhibit Number |  | Description                             
|-------------- |  | ----------------------------------------
|11             |  | Computation of Earnings Per Common Share

12

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