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, 2000


[ ]     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 the latest practicable date: 26,691,064


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

<PAGE>

                            COMMERCIAL CONCEPTS, INC.

                 FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION

                            -------------------------

                                       2
<PAGE>
<TABLE>
<CAPTION>
                            COMMERCIAL CONCEPTS, INC.
                                 BALANCE SHEETS
                              May 31, 2000 and 1999

                             ASSETS                                     2000             1999
                                                                  --------------   --------------
CURRENT ASSETS
<S>                                                               <C>                         <C>
     Cash in bank                                                 $        6,521              312

     Accounts receivable                                                  15,425           97,055
     Note receivable                                                     369,500                -
     Inventory                                                                 -            4,500
     Prepaid expenses                                                     10,004            9,634
                                                                  --------------   --------------
       Total current assets                                              401,450          111,501

EQUIPMENT
     Equipment                                                            96,930           66,095
     Less: accumulated depreciation                                      (28,316)         (10,613)
        Property and equipment, net                                       68,614           55,482
                                                                  --------------   --------------

OTHER ASSETS
     Investment in software development                                  231,997                -
     Software marketing rights                                               100              100
                                                                  --------------   --------------

TOTAL ASSETS                                                      $      702,161          167,083
                                                                  ==============   ==============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Accounts payable and accrued expenses                        $      259,644           18,205
     Advances payable                                                      1,850           18,000
     Short term debt                                                      28,513                -
                                                                  --------------   --------------
       Total Current Liabilities                                         290,007           36,205

LONG TERM DEBT                                                            16,303                -

STOCKHOLDERS EQUITY
     Common Stock, $.001 par value, 50,000,000 shares
        authorized, 26,691,064 and 12,671,420 shares
        issued and outstanding, respectively                              26,746           12,671
     Stock subscriptions receivable                                     (260,923)        (120,000)
     Additional paid-in capital                                        2,973,593        1,565,203
     Accumulated Deficit                                              (2,343,565)      (1,326,996)
                                                                  --------------   --------------

       Total Stockholders' Equity                                        395,851          130,878
                                                                  --------------   --------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        $      702,161          167,083
                                                                  ==============   ==============
</TABLE>
                            See accompanying notes.

                                       3
<PAGE>
<TABLE>
<CAPTION>
                            COMMERCIAL CONCEPTS, INC.
                            STATEMENTS OF OPERATIONS
                    Three Months Ended May 31, 2000 and 1999

                                                                       2000              1999
                                                                  --------------   --------------

REVENUES:
<S>                                                               <C>                      <C>
Sales                                                             $       18,207           55,709
Less cost of goods sold                                                   (4,558)         (11,708)
                                                                  --------------   --------------
Gross Profit                                                              13,649           44,001

EXPENSES
      General and Administrative Expenses                                196,135          177,520
      Services provided for common stock                                 153,298           19,158
      Depreciation                                                         5,506            3,400
                                                                  --------------   --------------
      Total Expenses                                                     354,939          200,078
                                                                  --------------   --------------

NET LOSS FROM OPERATIONS                                                (341,290)        (156,077)
                                                                  --------------   --------------
OTHER INCOME (EXPENSE)
      Interest                                                               512                -
                                                                  --------------   --------------
NET LOSS                                                          $     (340,778)        (156,077)
                                                                  ==============   ==============


NET LOSS PER SHARE                                                $         (.01)            (.01)
                                                                  ==============   ==============
</TABLE>
                             See accompanying notes.

                                       4
<PAGE>
<TABLE>
<CAPTION>
                            COMMERCIAL CONCEPTS, INC.
                            STATEMENTS OF CASH FLOWS
                    Three Months Ended May 31, 2000 and 1999

                                                                       2000             1999
                                                                  --------------   --------------

CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                               <C>                    <C>
        Net (loss) from current operations                        $     (340,778)        (156,077)
        Items not requiring current cash flows:
          Services paid in stock                                         153,298           19,158
          Depreciation                                                     5,506            3,400
        Changes in assets and liabilities:
          (Increase) decrease in prepaid expenses                         (3,013)          (9,634)
          (Increase) decrease in accounts receivable                      22,386          (44,912)
          (Decrease) increase in accounts payable                        (17,982)         (40,650)
          (Decrease) increase in accrued expenses                          8,500            3,194
          Increase (decrease) in advances                                  1,850          (31,000)
                                                                  --------------   --------------

          Net Cash Flows used in Operating Activities                   (170,233)        (256,521)

CASH FLOWS FROM INVESTING ACTIVITIES
          Increase in investment in software development                 (73,997)               -
          Purchase of equipment                                           (3,790)         (28,062)
                                                                  --------------   --------------

          Net Cash flows used in Investing Activities                    (77,787)         (28,062)
                                                                  --------------   --------------

CASH FLOWS FROM FINANCING ACTIVITIES
          Cash proceeds from sale of stock                               220,500          198,000
          Stockholder loans, net                                           2,870            9,200
                                                                  --------------   --------------
          Net Cash Flows from Financing Activities                       223,370          207,200
                                                                  --------------   --------------

NET INCREASE (DECREASE) IN CASH                                          (24,650)         (73,383)

CASH AND CASH EQUIVALENTS AT BEGINNING
 OF PERIOD                                                                31,171           77,695
                                                                  --------------   --------------
CASH AND EQUIVALENTS AT END OF PERIOD                             $        6,521              312
                                                                 ===============   ==============

SUPPLEMENTAL INFORMATION:
CASH PAID DURING THE YEAR FOR INTEREST                           $         7,693                -
                                                                 ===============   ==============
NON CASH TRANSACTIONS
          Shares issued for services and software
          development                                            $       153,298           19,156
                                                                 ===============   ==============
</TABLE>
                             See accompanying notes.

                                       5
<PAGE>
<TABLE>
<CAPTION>
                            COMMERCIAL CONCEPTS, INC.
                Schedules of General and Administrative Expenses
                    Three Months Ended May 31, 2000 and 1999

                                                                      2000              1999
                                                                  --------------   --------------
<S>                                                               <C>              <C>
Accounting                                                        $        4,000   $            -
Taxes and licenses                                                           535               20
Consulting fees                                                           23,500           90,281
Postage and deliveries                                                       209            1,583
Salaries and wages                                                        98,268           24,114
Insurance                                                                  6,921            2,777
Investor relations                                                         3,723              577
Legal                                                                      7,828            5,186
Maintenance and repairs                                                    1,493              515
Marketing                                                                  1,750              200
Meals and entertainment                                                      605              151
Office Supplies                                                            4,133            2,138
Rental equipment                                                             424                -
Tools                                                                      2,557            1,937
Telephone                                                                  3,889            7,881
Travel                                                                     5,764           37,633
Rent                                                                      16,028            2,310
Utilities                                                                    219              138
Other Expenses                                                            14,289               79
                                                                  --------------   --------------

      Total general and administrative expenses                   $      196,135   $      177,520
                                                                  ==============   ==============
</TABLE>
                             See accompanying notes.

                                       6
<PAGE>

                        COMMERCIAL CONCEPTS, INC
                          NOTES TO FINANCIAL STATEMENTS
                    THREE MONTHS ENDING MAY 31, 2000 AND 1999


NOTE 1  -  SIGNIFICANT ACCOUNTING POLICIES

Business  Operations 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.

Development Stage Classification - Commercial Concepts, Inc. was incorporated in
the state of Utah on March 1, 1984.  Until  February 28,  1998,  the Company has
been defined as a development stage company because it had not commenced planned
principal  operations and did not have operational  revenues,  but only sold its
common stock to the public.  In November 1997, the Company  experienced a change
in its Board of Directors and  management.  Under the new management the Company
engaged in the  purchasing  of computer  software  products and in marketing and
distributing  them, and effective  March 1, 1998, has been an operating  company
not subject to development stage company disclosures.

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

Provision  for income taxes - No provision for income taxes has been made in the
financial  statements due to operating losses. The State of Utah franchise taxes
have been included in operating expenses in the statements of operations. Income
tax expense  includes  federal and state taxes  currently  payable and  deferred
income taxes arising from  temporary  differences  between  income for financial
reporting and income tax purposes.  These  differences  result  principally from
depreciable  assets where  different  methods of  depreciation  are used and the
allowances for bad debt which is not deductible for income tax purposes.  Due to
operating losses no provision for deferred income taxes has been made.

Inventories  -  Inventories  are  stated  at the  lower of cost or  market  on a
first-in,  first-out basis. Inventories consist of packaged software and related
packaging supplies, for the period ending February 28, 1999.

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. Depreciation is computed on the straight-line method
for  financial  reporting  purposes  and on the  MACRS  method  for  income  tax
purposes.

                                       7
<PAGE>

                            COMMERCIAL CONCEPTS, INC
                          NOTES TO FINANCIAL STATEMENTS
               THREE MONTHS ENDED MAY 31, 2000 AND 1999, CONTINUED

NOTE 1 - 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 2  -  PUBLIC OFFERING OF COMMON STOCK

At inception,  the Company  offered and sold 1,000,000  shares of its authorized
but  unissued  stock to the  public.  An  offering  price of $.10 per  share was
determined by the Company.

In May 1996, the Company  commenced a private  offering of common stock pursuant
to an  exemption  from  registration  under  Regulation  D of the  Security  and
Exchange Commission.  92,050 shares were sold and a total of $460,205 in capital
was raised.

Since  inception  the Company has privately  sold for cash and exchanged  common
stock for services and property at various  times.  A private sale of restricted
common  stock  issued in April,  2000  included  500,000  two-year  warrants  to
purchase  common shares of the Company at a price of $0.50 in the first year and
$0.75 in the second year. There are no other options or warrants  outstanding to
acquire the stock of the Company as of May 31, 2000.

NOTE 3  -  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.  No amortization
of capitalized  software costs has been included in the accompanying  statements
of operations.

At the end of February 2000, two of the Company's  products had completed  their
research and development stages. Market beta testing for both products commenced
in March 2000.  For the three months ended May 31,  expenses  incurred in market
testing and development of these products totaling $231,997 were capitalized.

NOTE  4  -  GOING CONCERN

The  accompanying  financial  statements  have been prepared in conformity  with
generally accepted accounting principles, which contemplates continuation of the
Company as a going  concern.  However,  the  Company has  sustained  substantial
losses. In addition,  the Company has used almost all of its working capital and
has stockholders'  deficits from inception,  which raise substantial doubt as to
the Company's ability to continue as a going concern.

                                       8
<PAGE>

                            COMMERCIAL CONCEPTS, INC
                          NOTES TO FINANCIAL STATEMENTS
               THREE MONTHS ENDED MAY 31, 2000 AND 1999 CONTINUED

NOTE 4 - GOING CONCERN (CONTINUED)

In view of these matters,  continued  existence of the Company is dependent upon
its ability to develop  working  capital and to attract  equity  investment,  in
order to meet  current  and  future  creditors'  demands  and to  attain  future
profitable  operations.  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.  Management  believes  that the  actions  presently  being  taken will
provide the opportunity for the Company to continue as a going concern.

NOTE 5  -  INCOME TAXES

Deferred  tax assets and  deferred  tax  liability  comprise  the  following  at
February 29, 2000 and February 28, 1999.

                                                              2000         1999
                                                              ----         ----
Deferred tax asset:
     Net operating loss carryforwards                 $   623,431       340,550

Deferred tax liability
     Excess tax depreciation                                    -             -
Net deferred tax benefit before allowance Valuation      (623,431)      340,550


Federal and state net deferred tax benefit            $         0             0
                                                      ===========    ==========

For federal and state purposes the Company has unused not operating loss carry
forwards to offset future taxable income which expire as follows:

                  Year Ending
                  February 28               Federal              State
                  -----------               -------              -----
                      2001                 $  8,617              1,364
                      2002                   14,355            249,924
                      2007                      548            221,790
                      2008                      115            457,099
                      2009                      123            831,904
                      2010                    3,863                  -
                      2011                    1,464                  -
                      2012                  250,024                  -
                      2013                  221,890                  -
                      2019                  457,199                  -
                      2020                  832,004                  -
                                           --------         ----------
                                         $1,790,202         $1,762,081
                                         ==========         ==========

                                       9
<PAGE>

                            COMMERCIAL CONCEPTS, INC
                          NOTES TO FINANCIAL STATEMENTS
               THREE MONTHS ENDED MAY 29, 2000 AND 1999 CONTINUED

NOTE 6 - NOTES RECEIVABLE

Effective March 2000 the Company  entered into a subscription  agreement with an
investor for the purchase by the investor of 1,008,434 restricted common shares.
As payment for the shares the Company  accepted a note receivable due August 31,
2000 for $550,000.  At May 31 $180,500 in cash had been received by the Company.
The share  certificates will be issued after payment for the balance of the note
is received.

NOTE 7 -  NOTES PAYABLE
                                                          Long
                                             Current      Term       Total
                                             -------      ----       -----
Loan payable to individual shareholder       $ 3,999                 3,999
at no interest, due March 15, 2001



Note   payable  to   individual,   dated
December 9, 1999,  due  December 9, 2000
at 10%  interest  annually.  The note is
convertible to 200,000 shares of Company
stock.                                       20,000           -     20,000

Obligations under capital leases              4,514      16,303     20,817
                                            -------      ------     ------
                                            $28,513      16,303     44,816
                                            =======      ======     ======

Term debt at May 31, 2000 is scheduled to mature as follows (Fiscal Year):

                    2001      27,384
                    2002       4,514
                    2003       4,514
                    2004       4,514
                    2005       3,890

NOTE 8  -  PURCHASE OF ADVICE PRODUCTIONS, INC.

On June 10,  1999,  the Company  acquired  all the  outstanding  stock of Advice
Productions,  Inc. The  acquisition  has been  accounted for as a purchase.  The
total  purchase  price was  $200,000,  paid in  1,000,000  shares of  restricted
Company  common stock valued at $.20 per share.  The Company  received  accounts
receivable, equipment, and liabilities, but the purchase price exceeded the fair
value of net assets  received  by  $200,000,  which  excess  will be recorded as
goodwill in the financial  statements.  Simultaneous  with the acquisition,  the
Company entered into a five year  employment  contract with the principal of the
seller,  which set forth, among other matters,  the manner in which compensation
will be  computed,  and also  allowed  for bonuses  and profit  sharing.  Advice
Productions,  Inc.  was  previously  operated  as  a  sole  proprietorship,  but
incorporated  immediately  prior  to  the  acquisition,  and  therefore  had  no
corporate operations to be combined with Company operations.

                                       10
<PAGE>

                            COMMERCIAL CONCEPTS, INC
                          NOTES TO FINANCIAL STATEMENTS
               THREE MONTHS ENDED MAY 31, 2000 AND 1999 CONTINUED

NOTE 8  -  PURCHASE OF ADVICE PRODUCTIONS, INC. (CONTINUED)

Effective  February  29,  2000 the Company  dissolved  Advice  Productions.  The
Company  entered into a Settlement  and General  Release with the prior owner of
Advice  Productions,  which,  among  other  matters,  dissolved  any  employment
relationship  between the parties.  The Settlement and General Release  provided
for a recapture by the Company of 600,000  shares of restricted  Company  common
stock valued at $.20 per share. Of the $200,000 goodwill recorded by the Company
as a result of the  original  acquisition  of Advice  Productions,  $80,000  was
expensed in the period  ending  February 29,  2000.  The  remaining  $120,000 of
goodwill was reversed to record the recapture  and  retirement by the Company of
600,000 Shares of restricted common stock.

NOTE 9- SUBSEQUENT EVENTS

Effective  March 1, 1999, the Company  accepted the  resignations  of Wilfred R.
Blum as President,  David Welcker as Vice  President,  and Albert E.S.  Fretz as
Vice  President.  The Board of Directors  appointed  George  Richards as the new
President,  and appointed Wilfred. S. Blum as Secretary Treasurer.  On September
14, 1999,  the Board  accepted the  resignation  of Wilfred R. Blum as Secretary
Treasurer, and appointed V. Kelly Randal as Secretary Treasurer. Wilfred R. Blum
will continue as a member of the Board of Directors.

Effective October 12, 1999, V. Kelly Randall resigned as Secretary Treasurer. On
October 12, 1999 the Board of  Directors  appointed  Scott  Adamson as Secretary
Treasurer.  On February  15, 2000 the Board of Directors  appointed  Karl Hansen
Chief Financial  Officer of the Company,  a member of the Board of Directors and
Secretary  Treasurer of the Company,  following the resignation of Scott Adamson
from that position on the same day.

Effective  February 29, 2000 Larry Rogers  resigned from the Board of Directors.
The vacancy  created by Roger's  resignation  was filled April 18, 2000 with the
appointment of Lee Kunz to the Board of Directors.

NOTE 10  - RELATED PARTY TRANSACTIONS

The Company has transactions with certain  stockholders and officers who receive
compensation paid in the form of wages, royalties,  consulting fees, and Company
stock.

The Company paid an officer a royalty fee of $6,750 for the year ended  February
28, 1999.

On November  25 and  December  2, 1998,  the  Company  issued a total of 234,100
shares of restricted common stock valued at $.22 per share to repay previous net
unpaid cash advances to the Company of $51,500, from a former Company officer.

On January 25, 1999, the Company issued  2,000,000  shares of restricted  common
stock to an officer  valued at $.06 per share,  for a total  amount of $120,000.
$96,000 was  recorded as services  for the year ended  February  28,  1999,  and
$24,000  was a repayment  for  previous  cash  advances  to the  Company.  As of
February  28,  1999,  the  officer  owed the Company  $12,340.  No note has been
executed for this advance. The advance was repaid in the following fiscal year.

On February 3, 1999, the Company issued 50,000 shares of restricted common stock
to a Company  officer  valued at $.20 per share,  for a total amount of $10,000,
which was recorded as services for the year ended February 28, 1999.

                                       11
<PAGE>

                            COMMERCIAL CONCEPTS, INC
                          NOTES TO FINANCIAL STATEMENTS
               THREE MONTHS ENDED MAY 31, 2000 AND 1999 CONTINUED

NOTE 10 - RELATED PARTY TRANSACTIONS (CONTINUED)

On May 5, 1999, the Company issued  2,000,000 shares of common stock to Richards
& Associates, Inc., a Utah corporation, of which the current President and Chief
Executive Officer and President,  George Richards, Jr., is the sole shareholder,
in  consideration  of an  oral  agreement  to  pay  the  Company  $200,000.  The
obligation is not payable  until the shares are sold and no interest  accrues on
the obligation.

On August 9, 1999, the Company  issued  1,398,000  shares of restricted  Company
common stock for services to an officer,  valued at $.06 per share,  for a total
of $83,880.

On September 15, 1999 the Company issued 4,000,000 shares of restricted  Company
common stock for services to two officers, valued at $.03 per share, for a total
of $122,000.

On December 23, 1999 the Company  issued  271,250  shares of restricted  Company
common stock for services to two officers,  valued at $.08 per share for a total
of $21,700.

On December 23, 1999 the Company  issued  500,000  shares of restricted  Company
common  stock as a signing  bonus to an officer,  valued at $.08 per share for a
total of $40,000.

On May 31, 2000 the Company issued  500,000 shares of restricted  Company common
stock  for  services  to an  officer,  valued  at $.20 per  share for a total of
$100,000.

NOTE 11 - LEASE COMMITMENTS

As of May 31, 2000, the Company leased office space and certain  equipment under
various  noncancelable  operating  and  capital  leases.  Future  minimum  lease
payments required under the operating and capital leases are as follows:

                                                       Operating       Capital
                                                         Leases        Leases
                                                         ------        ------

        2001   ...................................     $  55,285     $  6,048
        2002   ...................................        76,656        8,064
        2003   ...................................        79,716        8,064
        2004   ...................................        82,908        8,064
                                                       ---------
        2005   ...................................             -        6,362
                                                                     --------
        Total minimum lease payments                   $ 294,565       36,602
                                                       =========
        Less amount representing interest                              15,785
                                                                       ------
        Present value of net minimum lease payments                    20,817

        Less current portion                                            4,514
                                                                       ------
            Total                                                     $16,303
                                                                      =======

As of May 31, 2000, the Company has equipment purchased under non-cancelable
capital leases with a cost of $22,570 and accumulated amortization of $2,923.

                                       12
<PAGE>

                            COMMERCIAL CONCEPTS, INC
                          NOTES TO FINANCIAL STATEMENTS
               THREE MONTHS ENDED MAY 31, 2000 AND 1999 CONTINUED

NOTE 11 - LEASE COMMITMENTS, CONT.

As of February 28, 1998,  the Company  leased  office space for $2,885 per month
for 12 months and had an option to purchase the leased space for $225,000 with a
down payment of $22,500. The Company has since moved from this office space, and
the purchase option as of February 28, 1998, has expired.

NOTE 12  -  LITIGATION SETTLEMENT

The  Company  was  a  defendant  in  litigation  wherein  the  plaintiff  sought
rescission and monetary damages in connection with the purchase of 50,000 shares
of company common stock  directly from a former officer of the Company.  Without
authorization  from the Board of  Directors,  the former  officer  made  certain
promises and incurred  certain  obligations  in connection  with the stock sale,
which the Company subsequently determined it could not legally fulfill.

On December 21,  1999,  this lawsuit was  mutually  settled and  dismissed.  All
parties  have  waived all  claims,  liabilities  and  demands.  As a part of the
settlement,  the Company has agreed to issue 360,000 shares of restricted common
stock to the plaintiff.

                       MANAGEMENT DISCUSSION AND ANALYSIS

         Sales deceased by $37,503 to $18,207 for the three months ended May 31,
2000 from $55,709 for the three months ended May 31, 1999.  The decrease was the
result of the Company's decision to concentrate  activity on the development and
testing of new products  instead of customizing  software and computer  products
for clients.

         Marketing  and selling  expenses  increased by $1,550 to $1,750 for the
three months ended May 31, 2000 from $200 for the comparable period in 1999. The
marketing  expenditures  in the  most  recent  quarter  are  low  due to lack of
commissionable  sales. In the comparable  period in 1999 the Company had not yet
commenced  significant  marketing efforts for its Quick Fixx 2000 software.  The
Company expects its marketing and selling expenses to increase in future periods
as it acquires or develops additional technology products and services.

         Salaries and wages  increased by $74,154 to $98,268 in the three months
ended May 31, 2000 from $24,114 in the comparable  period in 1999. This increase
was largely offset by a $66,781  decline in consulting fees between the periods,
from  $90,281 to  $23,500.  Over the last  twelve  months the  Company  moved to
replace consulting  expenditures with employee  salaries.  Remaining general and
administrative  expenses  other than  marketing,  salaries and  consulting  fees
increased  by $9,692 or 16% to $72,617 for the three  months  ended May 31, 2000
from  $62,295 for the  comparable  period in 1999.  The  increase  reflects  the
Company's  increased  levels of  activity  related  to its  product  development
program.

         The Company's expenditures for services paid for with restricted common
stock  increased  $134,140 to $153,298  for the three  months ended may 31, 2000
compared to $19,158 for the comparable period in 1999. These  expenditures using
restricted  common stock  recognized the efforts of certain Company  programmers
and management in the development of Company products and systems.

         The Company capitalized $231,997 in product development expenditures in
the three months ended May 31, 2000. Two of the Company's  proprietary  software
products were in active beta testing

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throughout the three-month period, as a final step before commercial release. In
accordance with Generally Accepted Accounting  Principles,  all costs related to
this testing  period have been  capitalized.  There were no product  development
expenditures capitalized in the comparable period for 1999.

                         LIQUIDITY AND CAPITAL RESOURCES

         At May 31,  2000,  the  Company  had cash and other  current  assets of
$401,450  compared to cash and other current assets of $111,501 at May 31, 1999.
The increase of $289,949  results  primarily from various private  placements of
the Company's common stock.

         The Company  borrowed  $15,000  from an  individual  and an  additional
$10,000  from a second  individual,  neither  of which are  shareholders  of the
Corporation, in August of 1999, pursuant to promissory notes, at the rate of 10%
per annum with each note being respectively due and payable on February 12, 2000
and February 16, 2000.  Both promissory  notes remained  outstanding at year-end
and both were converted into restricted common shares of the Company in April of
2000.

         During the three  months  ended May 31,  2000,  the  Company  generated
$650,000 from the sale of 1,508,434  restricted  common  shares.  Of this amount
$220,500  was  received  as cash with the  remainder  as notes or  subscriptions
receivable.  The Company issued 1,999,000  shares of restricted  common stock in
lieu of cash for various services through the three months ending May 31, 2000.

                                   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                        7/11/00
---------------------------------           -------------
George E. Richards, President                   Date

/s/ Scott Adamson                              7/11/00
---------------------------------            -------------
Scott Adamson, Executive Vice-President          Date

/s/ Karl A. Hansen                             7/11/00
---------------------------------           -------------
Karl A. Hansen, Chief Financial Officer          Date

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