<PAGE>
                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                  FORM 10-QSB

(Mark One)

[X]  Quarterly report pursuant to Section 13 or 15(d) of the Securities
                            Exchange Act of 1934
                    For the period ended December 31, 2000

                                      OR

[   ]     Transition report pursuant to Section 13 or 15(d) of the Securities
                             Exchange Act of 1934

                        Commission file number: 0-23391

                         XML-GLOBAL TECHNOLOGIES, INC.
                    ---------------------------------------
            (Exact name of registrant as specified in its charter)

                  Colorado                       84-1434313
                  --------                       ----------
       (State or other jurisdiction          (I.R.S. Employer
        of incorporation or                  Identification No.)
        organization)

                        Suite 9 - 1818 Cornwall Avenue
                         Vancouver, BC, Canada V6J 1C7
                        ------------------------------
         (Address of principal executive offices, including zip code)

        Registrant's Telephone No., including area code: (800) 201-1848
                         -----------------------------

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 ____

As of February 8, 2001, there were 27,505,000 shares of the issuer's Common
Stock outstanding.



<PAGE>
<PAGE>
                                     INDEX

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

        Consolidated Balance Sheets - December 31, 2000 and June 30, 2000
        Consolidated Statement of Operations - Three Months and Six Months
        Ended December 31, 2000 and 1999

        Consolidated Statement of Cash Flows - Six Months Ended December 31,
        2000 and 1999

        Notes to Unaudited Financial Statements

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS

PART II. OTHER INFORMATION

ITEM 1. PENDING LEGAL PROCEEDINGS

ITEM 2. CHANGES IN SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

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

ITEM 5. OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS FILED ON FORM 8-K








<PAGE>
<PAGE>
PART I.   FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

The consolidated financial statements included herein have been prepared by
XML - Global Technologies, Inc. (the Company) without audit, pursuant to the
rules and regulations of the Securities and Exchange Commission (SEC).
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been omitted pursuant to such SEC rules and regulations.  In
the opinion of management of the Company the accompanying statements contain
all adjustments necessary to present fairly the financial position of the
Company as of December 31, 2000, and its results of operations for the three-
month and six-month periods ended December 31, 2000 and 1999 and its cash
flows for the three-month and six-month periods ended December 31, 2000 and
1999. The Company's balance sheet as of June 30, 2000 included herein has been
derived from the Company's audited financial statements as of that date
included in the Company's annual report on Form 10-KSB. The results for these
interim periods are not necessarily indicative of the results for the entire
year.  The accompanying financial statements should be read in conjunction
with the financial statements and the notes thereto filed as a part of the
Company's annual report on Form 10-KSB.



<PAGE>
<PAGE>
XML-GLOBAL TECHNOLOGIES, INC. AND SUBSIDIARIES
Unaudited Consolidated Balance Sheet
At December 31, 2000 and June 30, 2000

<TABLE>
<CAPTION>
                                   December 31,     June 30,
                                       2000          2000
                                   ------------   ----------
<S>                                <C>          <C>
ASSETS
Current Assets
     Cash                          $6,046,265   $ 7,535,852
     Investments in securities
       available for sale             990,000     1,000,000
     Trade accounts receivable            656        17,185
     Other receivable                  55,124        53,653
     Prepaid expenses                  32,514        11,869
     Deferred income taxes              4,188         2,622
                                  ------------   -----------
                                    7,128,747     8,621,181
Property and Equipment, Net           275,402       158,633

Intangible Assets
     Intellectual property
       rights, net                  1,300,882     1,250,000
     Trademarks and patents           102,824        52,193
                                  ------------   -----------
Total Assets                       $8,807,855   $10,082,007
                                  ============   ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
     Accounts payable and
       accrued liabilities         $  261,080   $    95,999
     Unearned revenue                  12,000             -
     Foreign income taxes payable      64,458         7,178
                                  ------------   -----------
Total Liabilities                     337,538       103,177
                                  ------------   -----------

Stockholders' Equity
     Preferred stock, $0.01 par
       value, 100,000,000 shares
       authorized, none issued and
       outstanding at December 31,
       2000 and June 30, 2000               -             -
     Common stock, $.0001 par
       value, 500,000,000 shares
       authorized, 27,505,000
       shares issued and
       outstanding at December
       31, 2000 and June 30,
       2000                             2,751         2,751
     Additional paid-
       in capital                  11,695,614    11,675,258
     Accumulated other
       comprehensive income(loss)      (8,130)       (5,089)
     Accumulated deficit           (3,219,918)   (1,694,090)
                                  ------------  ------------
Total Stockholders' Equity          8,470,317     9,978,830
                                  ------------  ------------
Total Liabilities and
  Stockholders' Equity             $8,807,855   $10,082,007
                                  ============  ============
</TABLE>

                            See accompanying notes

<PAGE>
<PAGE>
XML-GLOBAL TECHNOLOGIES, INC. AND SUBSIDIARIES
Unaudited Consolidated Statement of Operations
For the Three Months and Six Months Ended December 31, 2000 and 1999

<TABLE>
<CAPTION>
                       Three Months                 Six Months
                   ---------------------        ------------------
                December 31, December 31,  December 31,     December 31,
                    2000         1999          2000             1999
                  ---------   -----------   -----------       ----------
<S>                  <C>          <C>           <C>              <C>
Revenue         $   327,242  $    14,400   $   812,968      $    23,659
Cost of revenue     401,035           -        674,667                 -
                  ---------   -----------   -----------      -----------
Gross profit
  (loss)            (73,793)      14,400       138,301           23,659
                  ----------  -----------   -----------      -----------

Operating expenses
   Research and
    development     502,060      166,707       730,589          288,089
   Marketing and
    selling         185,589       69,224       289,626          102,182
   General and
   administrative   250,082      143,274       463,903          239,484
   Depreciation
    and
    amortization    112,373        8,489       211,935           12,817
   Fair value of
    options
    granted to
    consultants      20,356            -        20,356                -
                  ----------    ---------   -----------        ---------
   Total
    operating
    expenses      1,070,460      387,694     1,716,409          642,572
                  ----------    ---------   -----------        ---------
Operating loss   (1,144,253)    (373,294)   (1,578,108)        (618,913)
Interest income      88,987        1,538       244,569            2,200
                  ----------    ---------   -----------        ---------
Net loss before
  provision for
  income taxes   (1,055,266)    (371,756)   (1,333,539)        (616,713)
Provision for
  income taxes       89,812            -       192,289                -
                 -----------    ---------   -----------        ---------
Net loss         (1,145,078)    (371,756)   (1,525,828)        (616,713)
Accumulated
  deficit,
  beginning
  of period      (2,074,840)    (365,806)   (1,694,090)        (120,849)
                 -----------   ----------   -----------       ----------
Accumulated
  deficit,
  end of
  period        $(3,219,918)  $ (737,562)  $(3,219,918)     $  (737,562)
                 ===========   ==========   ===========       ==========

Net loss per
  share - basic
  and diluted   $     (0.04)  $    (0.02)  $     (0.06)     $     (0.03)
Weighted
  average
  number of
  shares         27,505,000   19,830,000    27,505,000       19,095,543

</TABLE>
                            See accompanying notes.


<PAGE>
<PAGE>
XML-GLOBAL TECHNOLOGIES, INC. AND SUBSIDIARIES
Unaudited Consolidated Statement of Cash Flow
For the Six Months Ended December 31, 2000 and 1999

<TABLE>
<CAPTION>

                                    Six months     Six months
                                   December 31,   December 31,
                                       2000           1999
                                  -------------   ------------
<S>                                <C>            <C>

Cash flows from operating
activities
Net loss                           $(1,525,828)   $ (616,713)
Adjustments to reconcile net
  loss to net cash used in
  operating activities
 Depreciation and amortization         211,935        12,817
 Fair value of options granted
    to consultants                      20,356             -
 Changes in assets and
    liabilities
    Accounts receivable                 16,492        (5,989)
    Other receivable                    (3,036)      (12,271)
    Prepaid expenses                   (21,240)            -
    Accounts payable and accrued
       liabilities                     167,856        25,448
    Unearned revenue                    12,000             -
    Foreign income taxes payable        58,191             -
  Due to director                            -        (6,122)
                                    -----------  ------------
Net cash used in operating
   activities                       (1,063,274)     (602,830)
                                    -----------  ------------

Cash flows from investing activities
 Proceeds from sale of investments      10,000             -
 Purchases of property and
    equipment                         (167,389)      (33,208)
 Acquisition of trademarks and
    patents                            (51,484)      (25,020)
 Acquisition of intellectual
    property                          (218,008)            -
                                    -----------    ----------
Net cash used in investing
    activities                        (426,881)      (58,228)
                                    -----------   -----------
Cash flows from financing activities
Deferred issue costs                         -       (33,694)
Issuance of capital stock net
  of issue costs                             -     2,153,191
Repayment of note payable                    -      (135,135)
                                    -----------   -----------
Net cash provided from financing
  activities                                 -     1,984,362
                                    -----------   -----------
Effect of changes in exchange
  rates                                    568         1,302
                                    -----------   -----------
Increase (decrease) in cash         (1,489,587)    1,324,606

Cash, beginning of period            7,535,852         9,581
                                    -----------   -----------
Cash, end of period                $ 6,046,265    $ 1,334,187
                                                  ===========
===========
</TABLE>
                        See accompanying notes.

<PAGE>
<PAGE>
               XML - GLOBAL TECHNOLOGIES, INC. AND SUBSIDIARIES
             NOTES TO CONDENSED CONSOLIDATED FINANCING STATEMENTS
                          DECEMBER 31, 2000 AND 1999
                                  (Unaudited)

NOTE 1 - ORGANIZATION AND OPERATIONS

     The Company, which is a Colorado corporation, has two active
     subsidiaries, XML-Technologies, Inc. (a Nevada corporation) and XML-
     Global Research, Inc. (a British Columbia, Canada corporation). The
     Company conducts most of its business activities through these
     corporations.

     From its formation until July 1999, the Company's activities were devoted
     to legal formation, financial planning, recruiting directors, advisors
     and employees and raising additional financing. The Company commenced
     selling its e-commerce software in July 1999 and ceased to be a
     development stage company at that time.

NOTE 2 - BASIS OF PRESENTATION

     These condensed consolidated financial statements are unaudited and
     reflect all adjustments that, in our opinion, are necessary for a fair
     presentation of the results for the interim period. The results of
     operations for the current interim period are not necessarily indicative
     of results to be expected for the current year or any other period.

     These consolidated financial statements should be read in conjunction
     with the consolidated financial statements for the year ended June 30,
     2000 and notes thereto included in our 10-KSB as filed with the
     Securities and Exchange Commission on September 15, 2000.

NOTE 3 - INCOME TAXES

     Although the Company has incurred losses to date, it has been subject to
     income taxes. Taxes are payable by the Company's Canadian subsidiary on
     its operating profits, which cannot be offset against losses incurred by
     the Company. In addition, revenue generated from a Korean customer is
     subject to withholding taxes by Korean tax authorities at a rate of
     16.5%.  We will be able to apply these withholding taxes against United
     States income taxes otherwise payable, should we become taxable in the
     future.

NOTE 4 - 1999 EQUITY INCENTIVE PLAN

     On October 19, 1999, the Company adopted the 1999 Equity incentive plan
     (the "1999 Plan") to provide incentives to employees, directors and
     consultants. Under the 1999 Plan, the Company has reserved a total of
     4,000,000 shares of Common Stock for issuance with the maximum term of
     options being ten years. The Board of Directors has the exclusive power
     over the granting of options and their vesting provisions. All options
     granted to date have a seven-year term.

<TABLE>
<CAPTION>
                           2000                   1999
                    ------------------      -----------------
                     Number     Weighted     Number    Weighted
                   of Options    Average   of Options  Average
                                Exercise               Exercise
                                 Price                  Price
                   ---------- ---------- ----------  ----------
<S>                <C>            <C>        <C>         <C>
Options
 outstanding
 at June 30       1,170,000              1.01       -          -
Granted during
 the period       1,656,500              1.59       -          -
Exercised during
 the period               -              -          -          -
Forfeited during
 the period         (15,000)             1.50       -          -
                 -----------             --------    --------  --------
Options
 outstanding at
 December 31      2,811,500              1.35       -          -
                 -----------             --------    --------  --------
Options
 exercisable at
 December 31      1,355,000              1.08       -          -
                 -----------             --------    --------  --------
</TABLE>

NOTE 5 - SEGMENT INFORMATION

The Company's operations consist of a single reportable segment.  This segment
derives its revenues from sales of products and services employing XML
(eXtensible Mark-up Language) that are used by businesses to conduct e-
commerce.  The following tables and schedules summarize certain information
about this segment.

<TABLE>
<CAPTION>
                         XML - Based Products and Services
                  Three Months Ended            Six Months Ended
                     December 31,                 December 31,
                 --------------------           ----------------
                  2000         1999           2000             1999
                --------      -------        ------           -------
<S>          <C>            <C>           <C>               <C>
External
 revenues    $    327,242   $  14,400     $   812,968       $  23,659
Intersegment
 revenues               -           -               -               -
Segment loss
 before tax  $ (1,108,736)  $(332,551)    $(1,516,188)      $(576,678)
Segment
 assets      $  1,896,508   $ 208,942     $ 1,896,508       $ 208,942

</TABLE>

Following are reconciliations to corresponding totals in the accompanying
financial statements:

<TABLE>
<CAPTION>
                  Three Months Ended            Six Months Ended
                     December 31,                           December 31,
                  ------------------            ----------------
                  2000         1999           2000             1999
                --------      -------        -------          -------
<S>          <C>            <C>           <C>               <C>
Total loss before
 tax for
 reportable
 segments    $ (1,108,736)  $(332,551)    $(1,516,188)  $    (576,678)
Corporate
 headquarters
 income            53,470     (39,205)        182,649         (40,035)
 (expense)
 including
 interest
 income        ----------    ---------     -----------       ---------
Consolidated
 net loss before
 provision for
 income
 taxes       $ (1,055,266)  $(371,756)    $(1,333,539)      $(616,713)
               ===========  ==========     ===========      ==========

</TABLE>

NOTE 6 - LEASE COMMITMENT

     The Company leases its Vancouver, British Columbia operating facility.
     The leases run until June 30, 2005. The lease agreements require that the
     Company pay its proportional share of operating costs and property taxes.

     Future minimum lease payments required under the leases, excluding the
     Company's share of operating costs and property taxes, are as follows:

<TABLE>
<CAPTION>
          Period Ending
            June 30,
          ------------
<S>        <C>                      <C>
              2001                    $    29,800
              2002                         43,300
              2003                         75,600
              2004                         75,600
              2005                         63,000
                                      -----------
                                    $     287,300

</TABLE>

     The effect of scheduled rent increases and "rent holidays" included in
the Company's leases are recognized on a straight-line basis over the term of
the leases.  During the six months ended December 2000 and 1999, rent expense
was $54,300 and $36,700, respectively.

NOTE 7 - SUBSEQUENT EVENTS

     Effective January 2001, the Company entered into a lease agreement for
office space in New York City.  The lease commences on February 1, 2001 and
has a term of 23 months.  The monthly lease payments are $7,933.  The Company
was required to deposit $198,000 into an interest-bearing trust account from
which the monthly lease payments will be drawn.

     On January 17, 2001, the Company, through a newly incorporated
subsidiary, 620486 BC Ltd., acquired the issued shares of Bluestream Database
Software Corp., a British Columbia, Canada corporation.  Consideration
comprised of $243,000 in cash and promissory notes, shares of preferred stock
of 620486 BC Ltd. convertible to 100,000 shares of the Company's common stock
and assumption of $82,000 in liabilities due to the shareholder of Bluestream
Database Software Corp.  The total purchase price amounted to $432,100
including acquisition costs of $7,100, and as a result was not a significant
acquisition under accounting principles.  Goodwill relating to this
transaction of $441,400 will be amortized on a straight-line basis over 48
months.

ITEM 2.   MANAGEMENT'S PLAN OF OPERATIONS AND DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS

PLAN OF OPERATIONS

     To date, we have raised gross proceeds of approximately $11 million
through private offerings of equity securities.  We expect that funds
remaining from these offerings, which amounted to $7.0 million at December 31,
2000, will be sufficient to fund our operating and investing activities for at
least the next twelve months.  Accordingly, we have no plans to raise
additional funds during the next twelve months.

     We recently undertook a rebranding exercise in which our goXML search
engine became "goXML Search" and our expressXCHG data transformation engine
became "goXML Transform". In addition we acquired Bluestream Database Software
Corp. and renamed its Xstream database product as "goXML dB". We have released
Version 1.0 of goXML Transform and we plan to commence sales of goXML dB, our
next release of goXML Search, in March 2001. We plan to continue developing
these products and to undertake development of new products including a
version of Ceremony(-TM-) a system for authenticating online transactions, which
we have licensed from PenOp Ltd. We intend to supplement our existing revenues
by undertaking consulting contracts relating to the implementation of XML-
based systems.

     We plan to help companies implement XML solutions using our products and
are completing work under a contract with a Korean company that is setting up
an Internet-based business-to-business marketplace to serve the Korean market.
The contract value is $950,000 and the work is to be completed by February
2001.  At December 31, 2000, we had completed 84% of this contract.  The full
contract value is subject to withholding taxes by the Korean tax authorities
at a rate of 16.5%.  We will be able to apply these withholding taxes against
United States income taxes otherwise payable, should we become taxable in the
future.

     We do not expect to undertake any significant purchases or sales of plant
and equipment during the next twelve months.  We will continue to acquire
computer hardware and software and office furniture in the ordinary course as
we hire new employees.

     At the date of this Report, we employ approximately 55 staff.  We plan to
hire an additional 25 employees over the next year, consisting of 15 software
engineers, five implementation specialists and five sales and marketing
personnel.  The actual number of staff that we hire will be dependent on how
our business develops and will be subject to our ability to find qualified
individuals on mutually acceptable terms.

RESULTS OF OPERATIONS

     REVENUE.  Revenue consists of fees received from the sale of e-commerce
solutions, and website design and development, implementation and support.
Revenue was $327,200 for the three months ended December 31, 2000, compared to
$14,400 for the three months ended December 31, 1999.  For the six months
ended December 31, 2000 and 1999, revenue was $813,000 and $23,700
respectively.  The increase over the prior year was primarily attributable to
the Korean business-to-business contract.

     Approximately $325,000 of revenue for the quarter was earned under the
Company's contract with B2B Internet, Inc. (see discussion under Plan of
Operations).  This contract is expected to account for the majority of
revenues during the third quarter as well and is scheduled for completion in
February 2001.

     COST OF REVENUE.  Cost of sales include salaries to employees and
contractor fees that can be directly attributable to project revenue earned in
the period.  For the three and six months ended December 31, 2000 these costs
were $401,000 and $674,700 respectively.  In 1999, we did not have any
directly identifiable cost of sales.  It has taken us longer to perform the
services than we had expected and as a result the cost of revenues accounts
for a greater proportion of revenues than in the first quarter.

     RESEARCH AND DEVELOPMENT EXPENSES.  Product and content development costs
include expenses we incur to develop our technology and, in the prior fiscal
year, our clients' websites. These costs consist primarily of salaries and
fees paid to employees and consultants to develop and maintain software and
websites. Research and development expenses were $502,100 for the three months
ended December 31, 2000, compared to $166,700 for the three months ended
December 31, 1999.  For the six months ended December 31, 2000 and 1999, these
costs were $730,600 and $288,100 respectively. The increased expenditures over
the previous year reflect increased staffing levels to accelerate development
of existing and new products.

     SALES AND MARKETING EXPENSES.  Marketing, sales and client services costs
include expenses we incur to obtain and maintain client relationships.  These
costs include fees paid to contractors and consultants, related travel and
incidental costs and occupancy costs for our Seattle sales offices. For the
three and six months ended December 31, 2000, sales and marketing expenses
were $185,600 and $289,600 respectively. Sales and marketing expenses in the
three and six months ended December 31, 1999 were $69,200 and $102,200
respectively. The increase is due to the addition of staff and sales
initiatives undertaken in the current year.

     GENERAL AND ADMINISTRATIVE EXPENSES.  General and administrative expenses
consist primarily of salaries, contractor fees and related costs for general
corporate functions, including travel, finance, accounting and legal expenses.
For the three months ended December 31, 2000, general and administrative
expenses were $250,100, up from $143,300 in the three months ended December
31, 1999.  For the six months ended December 31, 2000 and 1999, these costs
were $463,900 and $239,500 respectively.  The increase reflects increased
staff, travel costs opening the New York office and professional fees
associated with the SEC filing requirements.

     DEPRECIATION AND AMORTIZATION EXPENSE. Depreciation and amortization
expense reflects depreciation of computer hardware, software, equipment,
leasehold improvements and amortization of intellectual property over
estimated useful lives of between two and five years. Depreciation and
amortization expense was $112,400 and $8,500 respectively for the quarters
ended December 31, 2000 and 1999.  For the six months ended December 31, 2000,
this expense was $211,900, compared to $12,800 for the same period in 1999.
The company did not record amortization expense in regard to trademarks and
patents as these costs largely relate to applications that had not been
granted at December 31, 2000.

     INTEREST INCOME. During the three months ended December 31, 2000 and
1999, the company earned interest income of $89,000 and $1,500 respectively.
$244,600 was earned for the six months ended December 31, 2000, compared to
$2,200 for the six months ended December 31, 1999.  Changes in interest income
generally reflect the balance of funds on hand which has varied depending on
fundraising initiatives and spending patterns.  Interest income has been
earned on funds received from private equity placements which have exceeded
operating expenditures to date.

     PROVISION FOR INCOME TAXES.  Although the Company incurred a consolidated
loss during the three and six months ended December 31, 2000, it recorded
$89,800 and $192,300 respectively of income tax expense relating to certain
income attributable to taxing jurisdictions in Canada and Korea.  Increases in
deferred tax assets resulting from the foreign tax credits generated by these
taxes have been offset completely by similar increases in the valuation
allowance applied to the Company's net income tax expense or benefit.

LIQUIDITY AND CAPITAL RESOURCES

     Since inception, we have financed our operations primarily through the
placement of equity securities, as well as advances from our principal
stockholder.  As of December 31, 2000 we had $6,046,300 in cash and cash
equivalents and $990,000 in short term investments.

     We have incurred costs to design, develop and implement search engine and
electronic commerce applications and to grow our business. As a result, we
have incurred operating losses and negative cash flows from operations in each
quarter since we commenced operations. As of December 31, 2000, we had an
accumulated deficit of $3,219,900. These losses have been primarily funded
through private placement of equity securities.

     To date, we have experienced negative cash flows from operating
activities.  For the six months ended December 31, 2000, net cash used in
operating activities was primarily attributable to our net loss of $1,525,800.
The net loss for the six month period was partially offset by non-cash
depreciation and amortization of $211,900, non-cash fair value of options
granted to consultants of $20,400 and a net cash inflow of $230,200 with
respect to working capital changes. For the six months ended December 31,
2000, net cash used in operating activities was therefore $1,063,300. In the
six months ended December 31, 1999, $602,800 was used in operating activities,
primarily relating to our operating loss.  The increase in cash used by
operating activities reflects increased staffing activities.

     For the six months ended December 31, 2000, net cash used in investing
activities was $426,900. We received $10,000 from the sale of investments, and
spent $167,400 on computer hardware, software, equipment and leasehold
improvements, $51,500 on patent and trademark applications and $218,000 on
intellectual property.  The computer hardware and software purchases related
to server upgrades and computers used by programmers and new employees. The
leasehold improvements relate to our new Vancouver offices, which opened in
June 2000.  In the six months ended December 31, 1999, $58,200 was used in
investing activities.  We have spent more on property and equipment as we
expand our staff and facilities.

     For the six months ended December 31, 2000, no cash was provided by or
used in financing activities.  In the six months ended December 31, 1999,
$2,153,200 was provided by financing activities relating to the issuance of
capital stock, which was partially offset by the repayment of a note payable
of $135,100 and a change in deferred issue costs of $33,700.

     Changes in exchange rates had a net effect of increasing our cash balance
by $600.

     As of December 31, 2000, we had no contractual capital commitments
outstanding.

     Our ability to generate significant revenue is uncertain. We incurred net
losses of approximately $1,145,100 and $1,525,800 during the three and six
months ended December 31, 2000 respectively. We expect losses from operations
and negative cash flow to continue for the foreseeable future, at least
through fiscal 2001, as a result of our expansion plans and our expectation
that operating expenses will increase significantly in the next several years.
The rate at which these losses will be incurred may increase from current
levels. Although we have experienced revenue growth, revenues have been
substantially less than expenses and may not increase in the future. If our
revenue does not increase and if our spending levels are not adjusted
accordingly, we may not generate sufficient revenue to achieve profitability,
which would have a materially adverse effect on our business, financial
condition and results of operations. Even if we achieve profitability, we may
not sustain or increase profitability on a quarterly or annual basis in the
future.

     Our working capital requirements depend on numerous factors. We have
experienced increased expenditures since inception, consistent with growth in
our operations and staffing, and expect that this trend will continue for the
foreseeable future. We anticipate incurring additional expenses to increase
our marketing and sales efforts, for software and infrastructure development.
Additionally, we will continue to evaluate possible investments in businesses,
products and technologies, the expansion of our marketing and sales programs
and brand promotions. If we experience a shortfall in revenue in relation to
expenses, or if our expenses precede increased revenue, our business,
financial condition and results of operations could be materially and
adversely affected.

     We currently estimate that available cash resources at December 31, 2000
will be sufficient to meet our anticipated needs for working capital and
capital expenditures through December 2001. We may need to raise additional
funds, however, in order to fund more rapid expansion, to develop new or
enhance existing services or products, to respond to competitive pressures or
to acquire complementary products, businesses or technologies. There can be no
assurance that any required additional financing will be available on terms
favorable to us, or at all. If additional funds are raised by the issuance of
equity securities, stockholders may experience dilution of their ownership
interest and these securities may have rights senior to those of the holders
of the common stock. If additional funds are raised by the issuance of debt,
we may be subject to certain limitations on our operations, including
limitations on the payment of dividends. If adequate funds are not available
or are not available on acceptable terms, we may be unable to fund our
expansion, successfully promote our brand name, take advantage of acquisition
opportunities, develop or enhance services or respond to competitive
pressures, any of which could have a materially adverse effect on our
business, financial condition and results of operations.

     Some of our revenues are earned and a substantial portion of our payroll
and other expenses are paid outside the United States in currencies other than
US dollars. Because our financial results are reported in US dollars, they are
affected by changes in the value of the various foreign currencies in which we
make payments in relation to the US dollar. We do not cover known or
anticipated currency fluctuation exposures through foreign currency exchange
option or forward contracts. The primary currency for which we have foreign
currency exchange rate exposure is the Canadian dollar. Our financial
instruments, including cash, accounts receivable, accounts payable and accrued
liabilities are carried at cost which approximates their fair value because of
the short-term maturity of these instruments.



<PAGE>
<PAGE>
FORWARD LOOKING STATEMENTS

     When used in this Quarterly Report on Form 10-QSB, in documents
incorporated herein and elsewhere by us from time to time, the words
"believes," "anticipates," "expects" and similar expressions are intended to
identify forward-looking statements concerning our business operations,
economic performance and financial condition, including in particular, our
business strategy and means to implement the strategy, our objectives, the
amount of future capital expenditures required, the likelihood of our success
in developing and introducing new products and expanding the business, and the
timing of the introduction of new and modified products or services. These
forward looking statements are based on a number of assumptions and estimates
which are inherently subject to significant risks and uncertainties, many of
which are beyond our control and reflect future business decisions which are
subject to change.

     A variety of factors could cause actual results to differ materially from
those anticipated in our forward-looking statements, including the following
factors: (a) our products and services may not be accepted in the market
place; (b) XML may be adopted by the Internet community more slowly than
projected; (c) our products may not be appropriately positioned within market
segments; (d) the market which we serve is subject to rapid technological
change and quick product obsolescence; (e) we are dependent on a limited
number of products; (f) there are, and competitors may develop, functionally
similar competitive products; (g) there is extreme competition in the software
industry; and (h) those set forth from time to time in our press releases and
reports and other filings made with the Securities and Exchange Commission. We
caution that such factors are not exclusive. Consequently, all of the forward-
looking statements made in this document are qualified by these cautionary
statements and readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this Quarterly
Report on Form 10-QSB. We undertake no obligation to publicly release the
results of any revisions of such forward-looking statements that may be made
to reflect events or circumstances after the date hereof, or thereof, as the
case may be, or to reflect the occurrence of unanticipated events.



<PAGE>
<PAGE>
                              OTHER INFORMATION

ITEM 1.   PENDING LEGAL PROCEEDINGS

     At the date of this report, there are no pending legal proceedings in
     which we are a party and we are not aware of any threatened legal
     proceedings.

ITEM 2.   CHANGES IN SECURITIES

     On October 2, 2000, the Board of Directors approved a revision to
2,330,000 warrants issued in August 1999.  The warrants were originally
exercisable to purchase stock at $4.00 per share of common stock until
February 2000 and thereafter at $6.00 per share. In February 2000, the Company
extended the $4.00 exercise price until December 2000, and in October 2000,
the $4.00 exercise price was again extended until June 2001.

ITEM 3.      DEFAULTS UPON SENIOR SECURITIES

     None.

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

     There were no matters submitted for the vote of security holders.

ITEM 6.   EXHIBITS AND REPORTS FILED ON FORM 8-K

     There are no Exhibits filed with this current report on Form 10-QSB and
the Company did not file any Reports on Form 8-K in the quarter ended December
31, 2000.




<PAGE>
<PAGE>
                                  SIGNATURES

                                   XML-Global Technologies, Inc.



Date: February 14, 2001            Signature:     /s/Peter Shandro
     ------------------------                ------------------------------
                                             Peter Shandro
                                             Chairman of the Board, Chief
                                             Executive Officer and
                                             President

Date: February 14, 2001            Signature:     /s/Simon Anderson
     -------------------------               -----------------------------
                                             Simon Anderson
                                             Chief Financial Officer