U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)
[X]            QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
                              EXCHANGE ACT OF 1934
            For the quarterly period ended: June 30, 2001

[ ]              TRANSITION REPORT UNDER SECTION 13 OF 15(D) OF THE
                                  EXCHANGE ACT
            For the transition period from ______________ to _____________

                         Commission file number 0-23871

                          CROSSNET COMMUNICATIONS, INC.
        (Exact name of small business issuer as specified in its charter)

                                    COLORADO
                         (State or other jurisdiction of
                         incorporation or organization)
                                   84-1434323
                                  (IRS Employer
                               Identification No.)
     14500 NORTH NORTHSIGHT BOULEVARD, SUITE 213, SCOTTSDALE, ARIZONA 85260
                    (Address of principal executive offices)

                                 (480) 556-0850
                           (Issuer's telephone number)

                                 NOT APPLICABLE
              (Former name, former address and former fiscal year,
                          if changed since last report)

            State the number of shares outstanding of each of the issuer's
classes of common equity, as of the last practicable date:

             10,000,021 SHARES OF COMMON STOCK, NO PAR VALUE, AS OF
                                 AUGUST 10, 2001

 Transitional Small Business Disclosure Format (check one);  Yes       No   X
                                                                 -----    -----




<PAGE>



                          CROSSNET COMMUNICATIONS, INC.

                                      INDEX

PART I - FINANCIAL INFORMATION

  Item 1. Financial Statements

          Consolidated Balance Sheet...........................................4

          Consolidated Statements of Loss......................................5

          Consolidated Statement of Cash Flows.................................7

          Consolidated Statement of Stockholders' Deficiency
            and Comprehensive Loss.............................................8

          Notes to Consolidated Financial Statements...........................9

  Item 2. Management's Discussion and Analysis or Plan of Operation...........10


PART II - OTHER INFORMATION

  Item 1. Legal Proceedings...................................................14

  Item 2. Changes in Securities...............................................14

  Item 3. Defaults Upon Senior Securities.....................................14

  Item 4. Submission of Matters to a Vote of Security Holders.................14

  Item 5. Other Information...................................................14

  Item 6. Exhibits and Reports on Form 8-K....................................14


SIGNATURES....................................................................16

                                        2

<PAGE>










                        Consolidated Financial Statements of

                        CROSSNET COMMUNICATIONS INC.

                        (A Development Stage Enterprise)

                        Six month period ended June 30, 2001

                        (Unaudited)











                                        3

<PAGE>

CROSSNET COMMUNICATIONS INC.
(A Development Stage Enterprise)
Consolidated Balance Sheet

$ United States

June 30, 2001 and December 31, 2000
<TABLE>
<CAPTION>

===========================================================================================================================
                                                                                      June 30,                December 31,
                                                                                          2001                        2000
                                                                                   (Unaudited)
---------------------------------------------------------------------------------------------------------------------------
<S>                                                                               <C>                        <C>

ASSETS

Current assets
     Cash                                                                         $     96,361               $     151,996
     Accounts receivable                                                                   500                         500
     ----------------------------------------------------------------------------------------------------------------------
                                                                                        96,861                     152,496

Fixed assets                                                                             1,914                       2,490

Website development                                                                      5,242                       6,486
---------------------------------------------------------------------------------------------------------------------------

                                                                                 $     104,017               $     161,472
===========================================================================================================================

LIABILITIES AND STOCKHOLDERS' DEFICIENCY

Current liabilities
     Accounts payable and accrued liabilities                                    $      24,760               $      19,364
     Note payable to stockholder (note 3)                                              195,000                     195,000
     Due to related party                                                                    -                      11,359
     ----------------------------------------------------------------------------------------------------------------------
                                                                                       219,760                     225,723
Stockholders' deficiency
     Capital stock:
           100,000,000  voting common shares without par value
                        authorized, 10,000,021 issued                                    8,151                       8,151
            10,000,000  non-voting preferred shares without par
                        value, issuable in series authorized, 1,809,216 Series A
                        convertible preferred shares, convertible into 10 common
                        shares per preferred share, issued                                   1                           1

     Deficit accumulated during the development stage                                 (123,895)                    (72,403)
     ----------------------------------------------------------------------------------------------------------------------
                                                                                      (115,743)                    (64,251)
---------------------------------------------------------------------------------------------------------------------------

                                                                                       104,017               $     161,472
===========================================================================================================================
</TABLE>

See accompanying notes to consolidated financial statements.

                                        4

<PAGE>

CROSSNET COMMUNICATIONS INC.
(A Development Stage Enterprise)
Consolidated Statement of Loss

$ United States

(Unaudited)
<TABLE>
<CAPTION>

====================================================================================================================================
                                                              From Inception                  Six month               From inception
                                                            (March 21, 2000)               period ended             (March 21, 2000)
                                                                 to June 30,                   June 30,                  to June 30,
                                                                        2001                      2001                        2000
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>                          <C>                          <C>

Revenue
     Website maintenance fees                                 $        7,275               $         -                  $         -
     INTEREST INCOME                                                   4,652                      2,347                           -
     -------------------------------------------------------------------------------------------------------------------------------
                                                                      11,927                      2,347                           -

Expenses
     Amortization of fixed assets                                      1,533                        576                         383
     Amortization of website development                               2,283                      1,244                           -
     Consulting fees                                                   5,000                         -                            -
     Interest                                                         21,905                     11,700                           -
     Internet hosting                                                    686                        255                           -
     Office and administrative                                         1,457                        605                          88
     Professional fees                                                37,378                     17,157                           -
     Rent                                                              5,500                      3,000                           -
     Salaries and benefits                                            29,942                     16,725                           -
     Software project costs                                            1,500                      1,500                           -
     TRANSFER AGENT FEES                                               2,985                      1,077                           -
     -------------------------------------------------------------------------------------------------------------------------------
                                                                     110,169                     53,839                         471
------------------------------------------------------------------------------------------------------------------------------------

Loss                                                          $      (98,242)             $     (51,492)                $      (471)
====================================================================================================================================

Weighted average number of common shares
  outstanding                                                      7,298,540                 10,000,021                     733,749

Loss per share, basic and diluted                             $       (0.01)              $      (0.00)                 $     (0.00)
====================================================================================================================================
</TABLE>


See accompanying notes to consolidated financial statements.


                                        5

<PAGE>

CROSSNET COMMUNICATIONS INC.
(A Development Stage Enterprise)
Consolidated Statement of Loss

$ United States

(Unaudited)

<TABLE>
<CAPTION>

======================================================================================================
                                                               Three month                Three month
                                                              period ended               period ended
                                                                  June 30,                   June 30,
                                                                      2001                       2000
-----------------------------------------------------------------------------------------------------
<S>                                                          <C>                        <C>

Revenue
      Website maintenance fees                               $           -              $           -
      Interest Income                                                  885                          -
      -----------------------------------------------------------------------------------------------
                                                                       885                          -

Expenses
      Amortization of fixed assets                                     288                        288
      Amortization of website development                              622                          -
      Consulting fees                                                    -                          -
      Interest                                                       5,850                          -
      Internet hosting                                                  95                          -
      Office and administrative                                        184                         88
      Professional fees                                              5,386                          -
      Rent                                                           1,500                          -
      Salaries and benefits                                          8,074                          -
      Software project costs                                             -                          -
      Transfer agent fees                                              225                          -
      -----------------------------------------------------------------------------------------------
                                                                    22,224                        376

-----------------------------------------------------------------------------------------------------
Loss                                                         $     (21,339)             $         376
=====================================================================================================

Weighted average number of common shares
  outstanding                                                   10,000,021                    760,979

Loss per share, basic and diluted                            $      (0.00)              $      (0.00)
=====================================================================================================
</TABLE>

See accompanying notes to consolidated financial statements.



                                        6

<PAGE>

CROSSNET COMMUNICATIONS INC.
(A Development Stage Enterprise)
Consolidated Statement of Cash Flows

$ United States
(Unaudited)

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                   From Inception               Six month             From inception
                                                                 (March 21, 2000)            period ended           (March 21, 2000)
                                                                      to June 30,                June 30,                to June 30,
                                                                             2001                    2001                       2000
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>                        <C>                     <C>
Cash provided by (used in):

Operations
     Loss                                                        $       (98,242)           $    (51,492)           $          (471)
     Item not involving cash:
         Amortization                                                      3,816                   1,820                        383
     Changes in non-cash working capital:
         Accounts receivable                                                (500)                      -                          -
         Accounts payable and accrued liabilities                         10,468                   5,396                      3,447
         Due to related party                                            (11,359)                (11,359)                         -
     -------------------------------------------------------------------------------------------------------------------------------
                                                                         (95,817)                (55,635)                     3,359
Financing
     Note payable to stockholder                                         195,000                       -                     50,000
     Issue of common shares for cash                                       8,100                       -                        150
     -------------------------------------------------------------------------------------------------------------------------------
                                                                         203,100                       -                     50,150
Investments
     Expenditures on fixed assets                                         (3,447)                      -                     (3,447)
     Website development costs                                            (7,475)                      -                        (50)
     -------------------------------------------------------------------------------------------------------------------------------
                                                                         (10,922)                      -                     (3,497)
------------------------------------------------------------------------------------------------------------------------------------

Increase (decrease) in cash                                               96,361                 (55,635)                    50,012

Cash, beginning of period                                                      -                 151,996                          -
------------------------------------------------------------------------------------------------------------------------------------
Cash, end of period                                              $        96,361            $     96,361            $        50,012
====================================================================================================================================

Supplementary information
  Interest paid                                                  $             -            $          -            $             -
  Income taxes paid                                              $             -            $          -            $             -
====================================================================================================================================

Non-cash financing activities
  Common shares issued for website software                      $            50            $          -            $             -
  Common shares issued upon share exchange                       $             1            $          -            $             -
  Preferred shares issued upon share exchange                    $             1            $          -            $             -
  Liabilities assumed on business combination                    $       (25,651)           $          -            $             -
====================================================================================================================================
</TABLE>


See accompanying notes to consolidated financial statements.

                                        7

<PAGE>
CROSSNET COMMUNICATIONS INC.
(A Development State Enterprise)
Consolidated Statement of Stockholders' Deficiency and Comprehensive Loss

$ United States

From inception on March 21, 2001 to June 30, 2001
(Unaudited)

<TABLE>
<CAPTION>

====================================================================================================================================
                                                                                                            Deficit
                                                                                                        Accumulated
                                                                              Series A Convertible       during the            Total
                                                   Common Stock                  Preferred Stock        development    Stockholders'
                                              Shares           Amount       Shares           Amount           stage       Deficiency
------------------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>            <C>                <C>            <C>         <C>             <C>

Shares issued for cash
  on March 23, 2000                          607,448     $        100         127,860      $     -     $         -     $        100
Shares issued for software
  on May 15, 2000                            303,724               50          63,930            -               -               50
Shares issued for cash
  on July 26, 2000                         7,593,103            5,000       1,598,250            -               -            5,000
Shares issued for cash
  on August 6, 2000                           91,117            3,000          19,179            -               -            3,000
------------------------------------------------------------------------------------------------------------------------------------
                                           8,595,392            8,150       1,809,216            -               -            8,150
Shares held by the
  Company's stockholders
  prior to recapitalization
  transaction                              1,404,629                1               -            1         (25,653)         (25,651)
------------------------------------------------------------------------------------------------------------------------------------
                                          10,000,021            8,151       1,809,216            1         (25,653)         (17,501)
Comprehensive loss:
  Loss                                             -                -               -            -         (46,750)         (46,750)
------------------------------------------------------------------------------------------------------------------------------------
Balance,
  December 31, 2000                       10,000,021            8,151       1,809,216            1         (72,403)         (64,251)

Comprehensive loss:
  Loss                                             -                -               -            -         (51,492)         (51,492)
------------------------------------------------------------------------------------------------------------------------------------
Balance,
  June 30, 2001                           10,000,021     $      8,151       1,809,216  $         -     $  (123,895)    $   (115,743)
====================================================================================================================================
</TABLE>

See accompanying notes to consolidated financial statements.


                                        8

<PAGE>

CROSSNET COMMUNICATIONS INC.
(A Development Stage Enterprise)
Notes to Consolidated Financial Statements
$ United States

Period ended June 30, 2001
(Unaudited)

================================================================================
1.       BASIS OF PRESENTATION:

         Crossnet  Communications  Inc.  (the  "Company")  was  incorporated  on
         September  19,  1997  under  the  laws of the  state  of  Colorado.  As
         disclosed  in the  December  31,  2000  audited  financial  statements,
         effective  September  25, 2000 the Company  acquired 100% of the issued
         and  outstanding  shares  of  Autovenu  ("Autovenu")  in a  transaction
         accounted  for as a  recapitalization  of  Autovenu.  Accordingly,  the
         consolidated   statements  of  loss,   stockholders'   deficiency   and
         comprehensive  loss and  cash  flows,  where  applicable,  reflect  the
         results of operations  and cash flows of Autovenu,  for the period from
         incorporation  of Autovenu on March 21, 2000 combined with those of the
         Company  from the  recapitalization  date of September  25,  2000.  The
         Company's  principle  business  activities  include the development and
         marketing    of    software    applications    targeted   at   specific
         business-to-business  e-commerce  industries.  To June 30, 2001, it has
         not  generated  significant  revenues and is  continuing to develop its
         business model.  Accordingly,  the Company is in the development  stage
         for financial reporting purposes.

         The  information  included  in the  accompanying  consolidated  interim
         financial  statements is unaudited.  In the opinion of management,  all
         adjustments,  consisting solely of normal recurring accruals, necessary
         for a fair  presentation for the interim periods  presented,  have been
         reflected herein. Readers of these financial statements should read the
         annual audited financial statements of the Company filed on Form 10-KSB
         in  conjunction  herewith.  The results of  operations  for the interim
         periods  presented are not necessarily  indicative of the results to be
         expected for the entire fiscal year.

2.       GOING CONCERN:

         These  financial  statements  have been  prepared on the going  concern
         basis,  which  assumes the  realization  of assets and  liquidation  of
         liabilities  in the  normal  course of  business.  Certain  conditions,
         discussed below,  currently exist which raise  substantial  doubt about
         the  validity  of this  assumption.  The  financial  statements  do not
         include  any  adjustments  that might  result  from the outcome of this
         uncertainty.  As shown in the consolidated  financial  statements,  the
         Company has incurred a loss for the period since  inception of $98,242,
         and at June 30,  2001 has a working  capital  deficiency  of  $122,899.
         Management  plans  to rely on  continued  financial  support  from  its
         majority  stockholder,  and to  actively  seek  merger and  acquisition
         opportunities  with  businesses  that  may have  applications  directly
         related to the internet. Failure to consummate a merger or  acquisition
         or  the  loss  of  financial   support  from  the  Company's   majority
         shareholder   will  cause  the  Company  to  curtail  its   operations.
         Management  believes the Company has sufficient working capital to fund
         operations for the next six months.

3.       NOTE PAYABLE TO STOCKHOLDER:

         The note is  unsecured  and bears  interest at 12% per annum.  Interest
         payable on the note aggregating  $16,055 (December 31, 2000 - $10,205),
         is  included  in  accounts  payable  and  accrued  liabilities  in  the
         accompanying  balance sheet.  Subsequent to June 30, 2001, the due date
         of the note  payable was  extended  from July 24, 2001 to December  24,
         2001.

                                        9

<PAGE>



ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Unless the context otherwise requires, the terms "we", "our" and "us" refers to
Crossnet Communications, Inc. and its wholly-owned subsidiary, Autovenu, Inc.

CAUTION

Certain statements in this Quarterly Report on Form 10-QSB, our Annual Report on
Form 10-KSB for our fiscal year ended December 31, 2000, our Annual Report to
Shareholders, as well as statements made by us in periodic press releases, oral
statements made by our officials to analysts and shareholders in the course of
presentations about ourselves, constitute "forward-looking statements" within
the meaning of the Private Securities Litigation Act of 1995. Such
forward-looking statements involve known and unknown risks, uncertainties, and
other factors that may cause the actual results, performance or achievements of
us to be materially different from any future results, performance or
achievements expressed or implied by the forward looking statements. Such
factors include, among other things, (1) general economic and business
conditions; (2) interest rate changes; (3) the relative stability of the debt
and equity markets; (4) competition; (5) the availability and cost of the
products used in our Web sites; (6) demographic changes; (7) government
regulations particularly those related to Internet commerce; (8) required
accounting changes; (9) equipment failures, power outages, or other events that
may interrupt Internet communications; (10) disputes or claims regarding our
proprietary rights to our software and intellectual property; and (11) other
factors over which we have little or no control.

BASIS OF PRESENTATION

On September 25, 2000, we entered into a Share Exchange Agreement with the
shareholders of Autovenu, Inc., a Delaware corporation. In accordance with the
share exchange, the former shareholders of Autovenu, Inc. now control us and new
officers and directors were appointed. As a result, the share exchange has been
accounted for as a capital transaction, as if Autovenu, Inc. had issued shares
for consideration equal to our net tangible assets followed by a
recapitalization of our shares of common stock. Consequently, our consolidated
audited statements of loss, stockholders' deficiency and comprehensive loss and
cash flows reflect the results of operations and cash flows of Autovenu, Inc.
for the period from its inception (March 21, 2000) to June 30, 2001, combined
with ours from the recapitalization date of September 25, 2000.

SELECTED FINANCIAL DATA

Our selected financial data for the period from inception (March 21, 2000) to
June 30, 2001 shown below is derived from our consolidated financial statements.
The financial data derived from the statements should be read in conjunction
with our consolidated financial statements and the notes included elsewhere in
this report.

                                       10

<PAGE>


   BALANCE SHEET DATA:                     JUNE 30, 2001       DECEMBER 31, 2000

   Current Assets                              $96,861             $152,496
   Total Assets                               $104,017             $161,472
   Current Liabilities                        $219,760             $225,723
   Stockholders' Deficiency                  $(115,743)            $(64,251)
   Working Capital Deficiency                $(122,899)            $(73,227)

<TABLE>
<CAPTION>

   STATEMENT OF LOSS DATA:                  MARCH 21, 2000       SIX MONTHS      THREE MONTHS
                                            (INCEPTION) TO          ENDED            ENDED
                                             JUNE 30, 2001      JUNE 30, 2001    JUNE 30, 2001
<S>                                           <C>                 <C>               <C>

   Revenues                                    $ 7,275                $0               $0
   Net Loss                                   $(98,242)           $(51,492)         $(21,339)
   Net Loss per Share                          $(0.01)             $(0.00)           $(0.00)
</TABLE>

OVERVIEW

We have two separate business divisions: (1) we are implementing the business
plan of Autovenu, Inc.; and (2) we are a "shell" company actively seeking merger
and acquisition opportunities. We are in the development stage and have
generated limited revenues.

We were originally incorporated under the name Buffalo Capital VII, Ltd. in the
State of Colorado on September 19, 1997. From our inception to June 18, 1999, we
operated as a "shell" company and our business plan was to seek out and take
advantage of business opportunities that may have the potential for profit, and
to acquire such businesses or a controlling interest therein.

On June 18, 1999, we entered into a Reorganization and Stock Purchase Agreement
with Workfire.com, a company incorporated under the laws of the State of Nevada
("Workfire- Nevada"). Under the agreement, we acquired 89% of the issued and
outstanding shares of Workfire-Nevada and changed our name to Workfire.com, Inc.
As a result of the agreement, the shareholders of Workfire-Nevada became our
controlling shareholders.

On November 5, 1999, we approved a resolution to distribute all of our shares of
Workfire- Nevada to our shareholders on a pro-rata basis. We believed this was
necessary in order to provide funding for Workfire-Nevada. As a result of the
share distribution, we no longer owned or controlled Workfire-Nevada and became
a shell company with no active operations. On February 7, 2000, we changed our
name to BCS Investment Corporation and actively sought a merger or acquisition
opportunity.

On September 25, 2000, we entered into a Share Exchange Agreement with the
shareholders of Autovenu, Inc., a Delaware corporation. Autovenu, Inc. is a
software development company whose business model includes the acquisition and
development of Internet related software and technology. We consummated the
acquisition by exchanging 303.7241 shares of our common stock and 6.393 shares
of our Series A preferred stock (both pre reverse stock split) for each issued
and outstanding share of

                                       11

<PAGE>




common stock of Autovenu, Inc. The Series A preferred stock is convertible into
100 shares of common stock without additional consideration. Autovenu, Inc. had
a total of 283,000 issued and outstanding shares of common stock. The
shareholders of Autovenu, Inc. were Mark Moldenhauer, Jules Lee Wurzel and
BusinessTradeCenter.com, Inc. As a result of the share exchange, the former
shareholders of Autovenu, Inc. now control us and new officers and directors
were appointed.

As a result of the share exchange, we develop and market computer database
software designed to facilitate the identification and viewing of automobiles
over the Internet prior to being auctioned for sale to the public. Our software
is designed to allow a public car auction to attract potential buyers
expeditiously and efficiently by establishing an Internet presence.

Effective December 18, 2000, we implemented a 1-for-10 reverse stock split and
changed our name to Crossnet Communications, Inc. Except where otherwise
indicated, all information in this Quarterly Report on Form 10-QSB has been
presented to give retroactive effect to the reverse stock split.

We are in the development stage and have generated limited revenues. We had a
net loss of $(98,242) from inception (March 21, 2000) through June 30, 2001, and
a net stockholders' deficiency of $(115,743) at June 30, 2001. We had a working
capital deficiency of $(122,899) at June 30, 2001. These factors raise
substantial doubt about our ability to continue as a going concern. The
consolidated financial statements and the financial information set out herein
do not include any adjustments that might result from the outcome of this
uncertainty. We have limited operations and require additional financing.
Ultimately we need to generate revenues and successfully attain profitable
operations. Our previous capital needs have been met by equity offerings and
loans from related parties. There can be no assurance that we will be able to
market and distribute Internet related software and technology. Even if we are
able to market and distribute the software and technology, there is no assurance
that we will be able to attain profitable operations.

REVENUES

We incurred a net loss of $(98,242) for the period from inception (March 21,
2000) through June 30, 2001. We had no revenues for the six month period ended
June 30, 2001, and we generated interest income of $2,347. Our only source of
revenues has been through our licensing agreement with PublicCarAuctions, Inc.
Under our licensing agreement, we received $500 per month in fees. During the
six months ended June 30, 2001, we did not receive any revenues from
PublicCarAuctions, Inc. At this time, our relationship with PublicCarAuctions,
Inc. is uncertain and we are unable to predict the certainty of present or
future revenues. There can be no assurance that we will be able to secure other
agreements for the sale, installation and maintenance of our software.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

We incurred expenses of $(110,169) for the period from inception to June 30,
2001, which included consulting fees ($5,000); interest ($21,905); professional
fees ($37,378); and salaries and benefits ($29,942). Website development costs
which were incurred in the planning stages were expensed when incurred. The
costs of application and infrastructure development which are incurred
subsequent to the


                                       12

<PAGE>




project stage, and that have received management's approval for further
development, are capitalized and amortized on the straight-line method over
their estimated useful life, which is estimated to be three years. During the
period ended June 30, 2000, the Company had no significant operations.

LIQUIDITY AND FINANCIAL CONDITION

The cash requirements of funding our operations and acquisitions have exceeded
cash flows from operations. We have satisfied our capital needs primarily
through debt and equity financing. For the period since inception, the statement
of cash flows reflects net cash used in operating activities of $95,817, which
was offset by net cash provided by financing activities of $203,100. At June 30,
2001, we had cash of $96,361 and a working capital deficit of $122,899.
Substantially all of our liabilities consist of advances from related parties.
Since we have limited revenues, our cash will be depleted by operating expenses
and we will be dependent upon external sources of cash.  Failure to consummate a
merger or acquisition or the loss of financial support from the Company's
majority shareholder will cause the Company to curtail its operations.
Management believes the Company has sufficient working capital to fund
operations for the next six months.

PLAN OF OPERATION

AUTOVENU, INC. During the next twelve months, we will not advertise or actively
seek additional customers to license our software. Instead, we will rely on the
commercial success or failure of our only customer, PublicCarAuctions, Inc. If
we are able to retain new customers by word of mouth, we will charge a licensing
fee for our software and web hosting and installation fees for the additional
entry portal. We do not expect to purchase any significant equipment during the
next twelve months, nor do we expect to hire additional employees during that
time period. We expect to finance our objectives from the licensing agreement
with PublicCarAuctions, Inc. and from related party loans.

ACQUISITION AND MERGER DIVISION. During the next twelve months, we will seek to
acquire assets or shares of an entity actively engaged in a business. We have
not identified a particular acquisition target and have not entered into any
negotiations regarding an acquisition. We intend to contact investment bankers,
corporate financial analysts, attorneys and other investment industry
professionals through various media. As of June 30, 2001, we have not engaged in
any preliminary contacts or discussions with any representative of a prospective
business opportunity.

Depending upon the nature of the relevant business opportunity and the
applicable state statutes governing the manner in which the transaction is
structured, our board of directors expects that we will provide our shareholders
with complete disclosure documentation concerning a potential business
opportunity and the structure of the proposed acquisition prior to consummation.
The disclosure is expected to be in the form of a proxy, information statement
or report. While such disclosure may include audited financial statements of a
target entity, there is no assurance that audited financial statements will be
available. We intend to obtain certain assurances of value of the target
entity's assets prior to consummating a transaction, with further assurances
that audited financial statements will be provided within sixty days after
closing. Closing documents will include representations that the value of the
assets conveyed to or otherwise transferred will not materially differ from the
representations included in the closing documents, or the transaction will be
voidable.

                                       13

<PAGE>


                           PART II - OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

            Not Applicable.

ITEM 2.     CHANGES IN SECURITIES

            Not Applicable.

ITEM 3.     DEFAULTS UPON SENIOR SECURITIES

            Not Applicable.

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

            Not Applicable.

ITEM 5.     OTHER INFORMATION

            Not Applicable.

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            A)    EXHIBITS

REGULATION                                                           CONSECUTIVE
S-B NUMBER                        EXHIBIT                            PAGE NUMBER
----------  -------------------------------------------------------  -----------

2.1         Share Exchange Agreement between BCS Investment              N/A
            Corporation and the shareholders of Autovenu, Inc.,
            dated September 25, 2000(2)<F2>

2.2         Reorganization and Stock Purchase Agreement(3)<F3>           N/A

3.1         Articles of Amendment to Articles of Incorporation(3)<F3>    N/A

3.2         Bylaws(1)<F1>                                                N/A

4.1         Warrant Agent Agreement(1)<F1>                               N/A

4.2         Specimen Class A Warrant Certificate(1)<F1>                  N/A

4.3         Specimen Class B Warrant Certificate(1)<F1>                  N/A



                                       14

<PAGE>


4.4         Stock Option Plan                                            N/A

10.1        Promissory Note dated July 24, 2000, and amended             N/A
            January 24, 2001(3)<F3>

10.2        Real Estate Lease dated May 1, 2000(3)<F3>                   N/A

10.3        Agreement with PublicCarAuctions.com Inc. dated              N/A
            July 25, 2000(3)<F3>

------------------------
<FN>
(1)<F1>     Incorporated by reference from the Registration Statement on Form
            10-SB filed with the Securities and Exchange Commission on March 4,
            1998.

(2)<F2>     Incorporated by referenced from the Current Report on Form-8-K filed
            on October 5, 2000.

(3)<F3>     Incorporated by reference from the Annual Report on Form 10-KSB for
            the year ended December 31, 2000 filed on April 2, 2001.

</FN>
            B)     REPORTS ON FORM 8-K:  None.



                                       15

<PAGE>


                                   SIGNATURES

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

                                        CROSSNET COMMUNICATIONS, INC.
                                        (Registrant)


Date: August 10, 2001                   By:  /s/ Mark Moldenhauer
                                           -------------------------------------
                                             Mark Moldenhauer, President
                                             (Principal Financial Officer)














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