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

                                   FORM 10-QSB

(Mark One)
[X]    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934

                   For the quarterly period ended May 31, 2001


[ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

       For the transition period from_________________to_________________

                         Commission file number 0-28891


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


            Utah                                         87-0409620
            ----                                         ----------
(State or other jurisdiction                           (IRS Employer
of incorporation or organization)                    Identification No.)


             324 South 400 West Suite B, Salt Lake City, Utah 84101
             ------------------------------------------------------
                    (Address of principal executive offices)

                                (801) 328-0540
                              ---------------------
                           (Issuer's telephone number)


              ----------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)


                  APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of May 31, 2001: 28,837,726


Transitional Small Business Disclosure Format (Check One):  Yes [ ]  No [X]

<PAGE>

                            Financial Statements and
                            Supplementary Information

                            Commercial Concepts, Inc.

                 As of May 31, 2001 (Unaudited) and February 28,
             2001 and for the (Unaudited) three months ended May 31,
                                  2001 and 2000
                         With Accountants' Review Report

                                       2
<PAGE>

                           Accountants' Review Report

Board of Directors
Commercial Concepts, Inc.
Salt Lake City, Utah

We have reviewed the accompanying balance sheet of Commercial Concepts,  Inc. as
of May 31, 2001 and the related statements of operations,  stockholders' deficit
and of cash flows for the three months then ended in accordance  with Statements
on Standards for Accounting and Review Services issued by the American Institute
of Certified  Public  Accountants.  All information  included in these financial
statements is the representation of the management of Commercial Concepts,  Inc.
The balance sheet of the Company as of February 28, 2001 was previously  audited
and our  report  dated May 10,  2001  expressed  an  unqualified  opinion on the
February 28, 2001 balance sheet and included an explanatory paragraph concerning
the  Company's  ability  to  continue  as a  going  concern.  The  statement  of
operations  and of cash  flows for the  three  months  ended  May 31,  2000 were
reviewed by other  accountants  whose  report  dated August 17, 2000 stated that
they were not aware of any  material  modifications  that should be made to such
May 31, 2000  financial  statements in order for them to be in  conformity  with
generally accepted accounting principals.

A review consists  principally of inquiries of company  personnel and analytical
procedures  applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion  regarding the financial  statements taken
as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the accompanying May 31, 2001 financial  statements in order for them
to be in conformity with generally accepted accounting principles.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note 3 to the
financial  statements,  the Company has current liabilities in excess of current
assets,  a net  stockholders'  deficit and has  incurred  substantial  operating
losses,  all of which raise substantial doubt about its ability to continue as a
going concern.  Management's plans in regard to these matters are also described
in Note 3. The financial  statements do not include any  adjustments  that might
result from the outcome of the uncertainty.

CHRISTENSEN & DUNCAN CPA's LC
July 13, 2001

                                       3
<PAGE>
<TABLE>
<CAPTION>
                            COMMERCIAL CONCEPTS, INC.
                                 BALANCE SHEETS
                       May 31, 2001 and February 28, 2001

                                                                      May 31,         February 28,
                             ASSETS                                     2001              2001
                                                                  --------------     --------------
                                                                    (Unaudited)

CURRENT ASSETS
<S>                                                               <C>                <C>
     Cash in bank                                                 $       10,261     $        1,621
     Accounts receivable                                                   6,806             11,548
     Employee advances                                                    11,700             11,700
     Prepaid expenses                                                        933              1,683
                                                                  --------------     --------------
       Total current assets                                               29,700             26,552

PROPERTY AND EQUIPMENT
     Property and equipment                                              123,249            118,228
     Less: accumulated depreciation                                      (55,004)           (47,995)
                                                                  --------------     --------------
        Property and equipment, net                                       68,245             70,233
                                                                  --------------     --------------

OTHER ASSETS
     Investment in software development                                  551,541            550,291
     Deposits                                                              7,217              7,217
                                                                  --------------     --------------
            Total other assets                                           558,758            557,508
                                                                  --------------     --------------

TOTAL ASSETS                                                      $      656,703    $       654,293
                                                                  ==============    ===============

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
     Accounts payable and accrued expenses                        $      439,932     $      398,070
     Current portion of long-term debt                                     4,850              4,850
     Short term debt                                                     258,488            167,988
                                                                  --------------     --------------
       Total current liabilities                                         703,270            570,908
                                                                  --------------     --------------
LONG TERM DEBT                                                         1,144,059            830,172
                                                                  --------------     --------------

STOCKHOLDERS'  DEFICIT
     Common stock, $.001 par value, 75,000,000 shares
     authorized, 28,837,726 and 28,197,590 shares issued
     and outstanding, respectively                                        28,838             28,198
     Due from shareholders for sale of Company stock                    (200,880)          (200,880)
     Additional paid-in capital                                        2,889,833          2,807,473
     Accumulated deficit                                              (3,908,417)        (3,381,578)
                                                                  --------------     --------------
         Total Stockholders' Deficit                                  (1,190,626)          (746,787)
                                                                  --------------     --------------
TOTAL LIABILITIES AND STOCKHOLDERS'  DEFICIT                      $      656,703     $      654,293
                                                                  ==============     ==============
</TABLE>

  See accompanying notes to financial statements and accountants' review report

                                       4
<PAGE>
<TABLE>
<CAPTION>
                            COMMERCIAL CONCEPTS, INC.
                      STATEMENTS OF OPERATIONS (UNAUDITED)
                    Three Months Ended May 31, 2001 and 2000

                                                               Three months ended  Three months ended
                                                                      May 31,            May 31,
                                                                       2001               2000
                                                                  --------------      -------------
REVENUES:
<S>                                                               <C>                 <C>
         Sales                                                    $        9,092      $      18,207
         Less cost of goods sold                                           6,817              4,558
                                                                  --------------      -------------
         Gross Profit                                                      2,275             13,649


EXPENSES:
      General and Administrative Expenses                                420,415            196,135
      Services provided for in common stock                               33,000            153,298
      Depreciation                                                         7,009              5,506
      Interest                                                            68,926                  -
                                                                  --------------      -------------
      Total Expenses                                                     529,350            354,939
                                                                  --------------      -------------

NET LOSS FROM OPERATIONS                                                (527,075)          (341,290)


OTHER INCOME:
      Interest                                                               111                512
      Other                                                                  125                  -
                                                                  --------------      -------------

NET LOSS BEFORE INCOME TAXES                                            (526,839)          (340,778)

PROVISION FOR INCOME TAXES                                                     -                  -

NET LOSS                                                          $     (526,839)     $    (340,778)
                                                                  ==============      =============

NET LOSS PER COMMON SHARE:
Weighted Average Shares Outstanding:
          Basic                                                       28,517,658         25,187,347
          Diluted                                                     28,517,658         25,187,347

Net Loss per Common Share:
           Basic                                                           (.018)             (.014)
           Diluted                                                         (.018)             (.014)

</TABLE>

 See accompanying notes to financial statements and accountants' review report.

                                       5
<PAGE>
<TABLE>
<CAPTION>
                            COMMERCIAL CONCEPTS, INC.
                  STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED)
                         Three Months Ended May 31, 2001

                                                                           Paid - In
                                                   Common Stock            Capital in
                                                   ------------            Excess of    Accumulated
                                               Shares         Amount       Par Value     Deficit
                                               ------         ------       ---------     -------
<S>                                        <C>            <C>          <C>            <C>
Balance, February 28, 2001                 28,197,590     $   28,198   $  2,807,473   $(3,381,578)

Issuance of common stock for services         300,000            300         32,700             -

Issuance of common stock for cash             340,136            340         49,660             -

Net loss for three months ended
 May 31, 2001                                       -              -              -      (526,839)
                                           ----------     ----------   ------------   -----------
Balance, May 31, 2001                      28,837,726     $   28,838   $  2,889,833   $(3,908,417)
                                           ==========     ==========   ============   ===========
</TABLE>

 See accompanying notes to financial statements and accountants' review report.

                                       6
<PAGE>
<TABLE>
<CAPTION>
                            COMMERCIAL CONCEPTS, INC.
                      STATEMENTS OF CASH FLOWS (UNAUDITED)
                    Three Months Ended May 31, 2001 and 2000

                                                                       2001               2000
                                                                 ---------------    ---------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                              <C>                <C>
        Net loss                                                 $      (526,839)   $      (340,778)

        Non cash items included in net loss:
          Services paid in stock                                          33,000            153,298
          Depreciation                                                     7,009              5,506
          Interest expense recorded as an addition
            to notes payable                                              91,207                  -

        Changes in operating assets and liabilities:
          Prepaid expenses                                                   750             (3,013)
          Accounts receivable & advances                                   4,742             22,386
          Accounts payable and accrued expenses                           55,042             (7,632)
                                                                 ---------------    ---------------

          Net Cash Flows used in Operating Activities                   (335,089)          (170,233)

CASH FLOWS FROM INVESTING ACTIVITIES
          Increase in investment in software development                  (1,250)           (73,997)
          Purchase of equipment                                           (5,021)            (3,790)
                                                                 ---------------    ---------------
          Net Cash Flows used in Investing Activities                     (6,271)           (77,787)
                                                                 ---------------    ---------------

CASH FLOWS FROM FINANCING ACTIVITIES
          Cash proceeds from sale of stock                                50,000            220,500
          Stockholder loans, net                                               -              2,870
          Proceeds from long-term debt                                   300,000                  -
                                                                 ---------------    ---------------
          Net Cash Flows from Financing Activities                       350,000            223,370
                                                                 ---------------    ---------------

NET INCREASE (DECREASE) IN CASH                                            8,640            (24,650)

CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD                                                                  1,621             31,171
                                                                 ---------------    ---------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                       $        10,261    $         6,521
                                                                 ===============    ===============

SUPPLEMENTAL INFORMATION:
CASH PAID DURING THE PERIOD FOR INTEREST                         $        30,369    $         7,693
                                                                 ===============    ===============
</TABLE>

 See accompanying notes to financial statements and accountants' review report.

                                       7
<PAGE>

                            COMMERCIAL CONCEPTS, INC
                     NOTES TO REVIEWED FINANCIAL STATEMENTS
                     FOR THE THREE MONTHS ENDED MAY 31, 2001

NOTE 1  -  THE COMPANY AND BASIS OF PRESENTATION

The Company Commercial Concepts, Inc. (The Company) creates proprietary software
platforms.  From these platforms  individual  internet related database software
products are developed. As each product completes beta testing the Company seeks
a distribution partner to market and provide ongoing support for the product.

The Company has elected a February  fiscal year end for accounting and reporting
purposes.

The accompanying interim financial statements of the Company are unaudited,  but
in the opinion of  management  reflect  all  adjustments  (consisting  of normal
recurring  accruals)  necessary  for fair  presentation  of the results for such
periods.  The results of operations for any interim  period are not  necessarily
indicative  of the  results  for  the  respective  full  year.  These  financial
statements should be read in conjunction with the financial statements and notes
thereto  contained  in the  Company's  annual  report of Form 10KSB for the year
ended February 28, 2001 as filed with the Securities and Exchange Commission.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
Cash  Equivalents - The Company  considers all highly liquid  investments with a
maturity of three months or less when purchased to be cash equivalents.

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

Equipment - The cost of equipment is depreciated over the estimated useful lives
of the  related  assets.  The  cost of  leasehold  improvements  is  depreciated
(amortized) over the lesser of the length of the related leases or the estimated
useful lives of the assets.

As of May 31, 2001 and February 28, 2001 property and equipment consisted of the
following:

                                 May 31, 2001           February 28, 2001
                                 (unaudited)
Leasehold improvements          $      7,000                $    7,000
Equipment                            104,076                    99,055
Furniture & fixtures                  12,173                    12,173
                                ------------                ----------
      Totals                    $    123,249                $  118,228
                                ============                ==========


Capitalization  of  Software  Development  Costs - The  Company's  policy  is to
expense  research  and  development  costs until  technological  feasibility  is
reached and all related  research  and  development  activities  are  completed,
subsequent  production  expenses  to  bring  the  product  to  market  are  then
capitalized.  Capitalization  of software costs is discontinued when the product
is  available  for  general  release  to  customers.   Amortization  expense  of
capitalized  software  costs  has  not  been  provided  for in the  accompanying
statements of operations  because the software products are not available as yet
for sale to customers.

Revenue  Recognition  - For the  quarters  ended May 31,  2001 and  2000,  sales
represented   miscellaneous  sales  of  computer  hardware  and  or  multi-media
projects.  It is anticipated that future sales will consist primarily of royalty
payments from distributors of the Company's  Picturebase  Medical product and or
advertising revenues associated with the Company's  Wavescreen software.  Future
revenues will be recognized by the Company as royalties are earned upon sales by
the  distributors of the Company's  Picturebase  Medical product and or over the
course of the contract associated with the Company's Wavescreen software.

                                       8
<PAGE>

                            COMMERCIAL CONCEPTS, INC
                     NOTES TO REVIEWED FINANCIAL STATEMENTS
                     FOR THE THREE MONTHS ENDED MAY 31, 2001


NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)

Income Taxes - Deferred income tax assets and liabilities are computed  annually
for  differences  between the  financial  statement  and tax bases of assets and
liabilities  that will  result in  taxable or  deductible  amounts in the future
based on  enacted  tax laws and rates  applicable  to the  periods  in which the
differences  are expected to affect  taxable  income.  Valuation  allowances are
established  when necessary to reduce deferred tax assets to the amount expected
to be  realized.  Income tax  expense is the tax payable or  refundable  for the
period  plus or minus the change  during the period in  deferred  tax assets and
liabilities.

NOTE 3  - GOING CONCERN

The  accompanying  financial  statements  have been prepared in conformity  with
generally accepted accounting principles, which contemplates the continuation of
the Company as a going  concern.  As  reflected  in the  accompanying  financial
statements, the Company has current liabilities in excess of current assets, has
a net stockholders'  deficit and has incurred substantial  operating losses, all
of which  raise  substantial  doubt  about its  ability to  continue  as a going
concern.

In order to develop  additional  working  capital and attract  continued  equity
investment,  the Company has reorganized  management,  formulated a new business
plan,  and  developed and marketed new business  products.  On or about July 18,
2000, the Company initiated a borrowing  relationship with a private  investment
group (see Notes 5 and 7).  Through  May 31,  2001,  the  Company  has  borrowed
$800,000  under the  terms of three  convertible  long-term  notes  payable.  In
addition,  $500,000 was borrowed on June 14, 2001 from this investment group and
an  additional  $300,000  was  borrowed  on  December  3, 2000 from a  different
investment  group.  Management  believes that the actions  presently being taken
will provide the opportunity for the Company to continue as a going concern.

NOTE 4  -  INCOME TAXES

Deferred  tax assets at May 31, 2001 and  February  28,  2001,  consisted of the
following:

                                              May 31, 2001    February 28, 2001
                                               (Unaudited)

     Deferred tax asset arising from:
     Net operating loss carryforwards         $  1,300,000       $  1,100,000
     Less allowance valuation at 100%           (1,300,000)        (1,100,000)
                                              ------------       ------------
       Deferred tax asset                     $       NONE       $       NONE
                                              ============       ============

The  Company  has unused net  operating  loss carry  forwards  of  approximately
$3,500,000  to offset  future  taxable  income which expire at various times and
amounts through 2021.

                                       9
<PAGE>

                            COMMERCIAL CONCEPTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE THREE MONTHS ENDED MAY 31, 2001


NOTE 5 - SHORT-TERM AND LONG-TERM DEBT

Short-term  debt  consisted  of the  following  at May 31, 2001 and February 28,
2001:

                                                         May 31,
                                                          2001      February 28,
                                                       (Unaudited)      2001
                                                       -----------  -----------
Notes payable (collateralized by one-million shares of
the Company's common stock ) to individual dated June
22, 2000 through April 12, 2001, due at various dates
through April 12, 2002, plus all accrued interest at
15%.                                                      $ 90,500     $ 68,500


Note payable to individual dated November 3, 2000,
collateralized by 200,000 shares of the Company's
common stock, payable on demand plus all accrued
interest at 15%.                                            15,000       15,000

Note payable (non-collateralized) to individual dated
June 15, 2000 payable on demand plus all accrued
interest at 10%.                                            42,988       42,988

Note payable to limited partnership dated February
2001, collateralized by 571,250 shares of the Company's
common stock, payable on March 15, 2001 plus all
accrued interest at 12%.                                                 30,000


Note payable to corporation (non-collateralized) dated
January 23, 2001 due on demand plus all accrued
interest at 10%.                                            10,000       10,000

Note payable to Corporation (non-collateralized) dated
May 25, 2001 due on demand plus all accrued interest at
12%.                                                       100,000

Other                                                            -        1,500
                                                          --------     --------
Total                                                     $258,488     $167,988
                                                          ========     ========


Long-term debt consisted of the following at May 31, 2001 and February 28, 2001:

                                                         May 31,
                                                          2001      February 28,
                                                       (Unaudited)      2001
                                                       -----------  -----------

Convertible notes payable to private investment
group with $250,000 due on July 20, 2003, and
$250,000 due on September 20, 2003 and $300,000
due on April 19, 2004 plus all accrued interest at
6% to 8% (see Note 7).                                 $   823,762  $   514,712

Convertible note payable to private investment
group due December 3, 2003 plus all accrued
interest at 8% (see Note 7).                               311,967      305,918

Capital leases (see Note 8).                                13,180       14,392
                                                       -----------  -----------
Total                                                    1,148,909      835,022

Less current-portion                                        (4,850)      (4,850)
                                                       -----------  -----------
Long-term portion                                      $ 1,144,059  $   830,172
                                                       ===========  ===========

                                       10
<PAGE>

                            COMMERCIAL CONCEPTS, INC
                     NOTES TO REVIEWED FINANCIAL STATEMENTS
                     FOR THE THREE MONTHS ENDED MAY 31, 2001


NOTE 5 - SHORT-TERM AND LONG-TERM DEBT (CONTINUED)

Long term debt as of May 31, 2001 is scheduled to mature as follows:

         Year ended May 31,
           2002                        $     4,850
           2003                              5,000
           2004                          1,139,059
                                       -----------
           Total                       $ 1,148,909
                                       ===========

NOTE 6 - LOANS RECEIVABLE FROM SHAREHOLDERS FOR SALE OF COMPANY STOCK

The  following  summarizes  receivable  amounts  due to the  Company for sale of
common stock:

                  2,000,000 shares issued May 5, 1999 to a
                  Company officer valued at $.06 per share          $  120,000

                  1,598,000 shares issued August 9, 1999 to a
                  Company officer, valued at $.06 per share.            80,880

                  Remaining balance due                              $ 200,880

NOTE 7 -  CONVERTIBLE NOTES PAYABLE AND OTHER EQUITY INSTRUMENTS

Through May 31,  2001,  the  Company  issued to a private  investment  group two
$250,000, 6% convertible notes due July 20, 2003 and September 20, 2003, and one
$300,000, 8% convertible note due April 19, 2004. The notes are convertible into
common shares of the Company based upon the three lowest  closing prices for the
Company  during the thirty  trading  days prior to the date of the note,  or the
three  lowest  closing  prices  during  the  sixty  trading  days  prior  to the
conversion date. The Company retains a redemption clause in the notes that allow
the  Company to  repurchase  the notes upon  payment of 130% of the note's  face
value,  plus accrued  interest.  In  addition,  the Company  issued  warrants to
purchase  850,000  shares of the Company's  common stock at an exercise price of
$0.4375 in connection with the issuance of the first $250,000 note,  warrants to
purchase  850,000  shares issued at an exercise  price of $.1925,  in connection
with the second $250,000 note and warrants to purchase  510,000 shares issued at
an exercise price of $.09 in connection  with the issuance of the $300,000 note,
which exercise prices approximated the fair market value of the Company's common
stock.  In  addition,  on June 14,  2001,  the Company  borrowed  an  additional
$500,000  under  an 8%  convertible  note and  issued  in  connection  therewith
warrants to purchase 500,000 shares at $.10 per share.

On December 3, 2000,  the Company  received  $300,000 from a private  investment
group under the terms of a convertible  8% note payable due December 3, 2003. In
connection  therewith,  the Company issued 750,000 five-year  warrants having an
exercise price of $0.115.

On March 7, 2001 the Company  issued  warrants to purchase  40,816 shares of the
Company's  common stock at $.175 in  connection  with a short-term  $50,000 note
payable  entered  into on March 1, 2001.  The note was  converted  into  340,136
shares of the Company's common stock during the three months ended May 31, 2001.

Four employees  including two officers of the Company have the option to convert
accrued  salaries  in the  amount  of  $151,059  into  1,575,893  shares  of the
Company's common stock.

                                       11
<PAGE>

                    COMMERCIAL CONCEPTS, INC.
                  NOTES TO FINANCIAL STATEMENTS
             FOR THE THREE MONTHS ENDED MAY 31, 2001


NOTE 8 - LEASE COMMITMENTS

As of May 31, 2001, the Company leased office space and certain  equipment under
non-cancelable  operating and capital  leases.  Future  minimum  lease  payments
required under the operating and capital leases are as follows:

                                                        Operating       Capital
            Year ended May 31,                            Leases         Leases
                                                        ---------       -------
            2002   ...................................  $   77,421     $  8,064
            2003   ...................................      80,514        8,064
            2004   ...................................      62,181        8,064
            2005   ...................................           -        2,181
                                                        ----------     --------
            Total minimum lease payments                $  220,116       26,373
                                                        ==========
            Less amount representing interest                            13,193
                                                                       --------

            Present value of net minimum lease payments                $ 13,180
                                                                       ========


As of May 31, 2001,  the Company has equipment  purchased  under  non-cancelable
capital  leases  with  a  cost  of  $22,570  and  accumulated   amortization  of
approximately $4,000.

                                       12
<PAGE>

                       MANAGEMENT DISCUSSION AND ANALYSIS

         Sales  decreased by $9,115 to $9,092 for the three months ended May 31,
2001 from $18,207 for the three months ended May 31, 2000. The decrease in sales
is the result of the Company's  emphasis on completing its software  products in
preparation for Summer, 2001 commercial rollout.

         General and  Administrative  Expenses increased by $224,280 to $420,415
in the three months ended May 31, 2001 from $195,135 in the comparable period in
2000.  This  increase  was  largely  offset by a $120,298  decline  in  Services
provided for in common stock between the periods,  from $153,298 to $33,000. The
Company is providing compensation in cash and is issuing fewer common shares for
services  in lieu of cash.  The overall  increase in General and  Administrative
Expenses  includes  increased  employment to expedite the Company's  development
efforts.  Legal expenses also  increased,  reflecting  additional  funding,  SEC
submittals and patent registration efforts.

         The Company capitalized $1,250 in product  development  expenditures in
the three months ended May 31, 2001. The modest level of capitalization  (versus
$231,997  capitalized  for  the  comparable  period  in  ending  May  31,  2000)
illustrates  the  Company's  belief that beta testing of the  Company's  current
products is complete,  and that  technical and commercial  feasibility  has been
proven to the satisfaction of Commercial Concepts, Inc.

         Interest  expense  increased  to $68,926 for the three months ended May
31,  2001 from zero for the  three  months  ended  May 31,  2000.  The  increase
reflects  substantial interest charges incurred in obtaining funding to maintain
the Company's operations.  Each convertible debt placement by the Company incurs
certain fees,  some of which fees are recorded as a one-time  interest charge in
the period incurred.

                         LIQUIDITY AND CAPITAL RESOURCES

         At May 31,  2001,  the  Company  had cash and other  current  assets of
$29,700  compared to cash and other current assets of $26,552 at May 31, 2000. A
increase  of  $8,640 in cash is  partially  offset  by a  decrease  of $4,742 in
accounts receivable.

         The Company received funding from the issuance of a $300,000 three year
8% note convertible into shares of the Company's common stock in accordance with
terms and conditions  detailed in Note 7. A total of 510,000 five-year  warrants
with an exercise  price of $0.09 were also issued in connection  with this note.
The Company also received funds from the issuance of a $100,000 short-term,  12%
note. This note was a bridge loan and was repaid in June, 2001 from the proceeds
of a $500,000 three year 8% convertible note which  transaction is also describe
in Note 7. The Company  also  borrowed  $22,000  from an  individual  by issuing
one-year 15% notes payable, due April 12, 2002.

         During the three  months  ended May 31,  2000,  the  Company  generated
$50,000 from the sale of 340,136  restricted  common shares to a shareholder and
director of the Company.  The Company  issued 300,000 shares of common stock for
services related to funding through the three months ending May 31, 2001.

                                       13
<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.

Commercial Concepts, Inc.

/s/ George E. Richards                        7/16/01
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George E. Richards, President                   Date

/s/ Scott Adamson                              7/16/01
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Scott Adamson, Executive Vice-President          Date

/s/ Karl A. Hansen                             7/16/01
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Karl A. Hansen, Chief Financial Officer          Date


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