<PAGE>

                    U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC  20549

                                  FORM 10-QSB


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

     For the quarterly period ended September 30, 2001.

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

     For the transition period from ___________ to ___________.

                      Commission File Number:   000-28391
                                                ---------


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


                DELAWARE                          98-0132465
                --------                          ----------
     (State or other jurisdiction               (IRS Employer
     of incorporation or organization)        Identification No.)


           16855 WEST BERNARDO DRIVE, SUITE 260, SAN DIEGO, CA 92127
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                (858) 385-8900
--------------------------------------------------------------------------------
                          (Issuer's telephone number)

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

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15 (d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

                                X    YES        NO
                             -------     ------

Shares of Common Stock outstanding as of November 7, 2001: 8,140,800 shares
<PAGE>

                             SourcingLink.net, Inc.


                                    CONTENTS
                                    --------
<TABLE>
<CAPTION>
                                                                           Page
<C>        <S>                                                             <C>
PART I     FINANCIAL INFORMATION

Item 1     Financial Statements

           Consolidated Condensed Balance Sheets as of
           September 30, 2001 (unaudited) and March 31, 2001                  3

           Consolidated Condensed Statements of Operations
           for the three and six months ended September 30, 2001
           and 2000 (unaudited)                                               4

           Consolidated Condensed Statements of Cash Flows
           for the six months ended September 30, 2001 and 2000 (unaudited)   5

           Notes to Consolidated Unaudited Financial Statements               6

Item 2     Management's Discussion and Analysis or Plan of Operation          7

PART II    OTHER INFORMATION

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

Item 6     Exhibits and Reports on Form 8-K                                  14

           Signature                                                         15
</TABLE>

                                       2
<PAGE>

PART I  FINANCIAL INFORMATION

Item 1  Financial Statements

                            SourcingLink.net, Inc.
                     Consolidated Condensed Balance Sheets

<TABLE>
<CAPTION>
                                             September 30,      March 31,
                                                 2001             2001
                                             ------------      ----------
                                            (Unaudited)
<S>                                         <C>                <C>
ASSETS
Current assets:
  Cash and cash equivalents                  $  3,194,000     $  4,076,000
  Accounts receivable, net                        102,000          353,000
  Other current assets                            121,000          135,000
                                             ------------     ------------
    Total current assets                        3,417,000        4,564,000

Property and equipment, net                       536,000          523,000
Other non-current assets                           54,000           54,000
                                             ------------     ------------
    Total assets                             $  4,007,000     $  5,141,000
                                             ============     ============

LIABILITIES
Current liabilities:
  Accounts payable and accrued liabilities   $  1,114,000     $  1,226,000
  Deferred revenue and other                      238,000          225,000
                                             ------------     ------------
    Total current liabilities                   1,352,000        1,451,000

STOCKHOLDERS' EQUITY
Common Stock                                        8,000            8,000
Additional paid in capital                     24,132,000       24,127,000
Accumulated deficit                           (21,565,000)     (20,532,000)
Cumulative foreign currency translation
 adjustments                                       80,000           87,000
                                             ------------     ------------
  Total stockholders' equity                    2,655,000        3,690,000
                                             ------------     ------------
    Total liabilities and stockholders'
     equity                                  $  4,007,000     $  5,141,000
                                             ============     ============
</TABLE>

 The accompanying notes are an integral part of these consolidated condensed
                             financial statements.

                                       3
<PAGE>

                            SourcingLink.net, Inc.
                Consolidated Condensed Statements Of Operations
                                  (Unaudited)

<TABLE>
<CAPTION>
                                        Three months ended September 30,        Six months ended September 30,
                                        -------------------------------         -----------------------------
                                           2001                 2000                2001               2000
                                        ----------          -----------          ----------         ---------
<S>                                     <C>                 <C>                 <C>                <C>
Revenue:
  Professional services                 $  865,000          $  736,000          $ 1,809,000        $ 1,301,000
  Subscribers                                7,000             122,000               27,000            322,000
                                        ----------          ----------          -----------        -----------
                                           872,000             858,000            1,836,000          1,623,000

Cost of revenue:
  Professional services                    251,000             206,000              543,000            309,000
  Subscribers                               55,000             256,000              116,000            511,000
                                        ----------          ----------          -----------        -----------
                                           306,000             462,000              659,000            820,000

Gross profit                               566,000             396,000            1,177,000            803,000

Operating expenses:
  Selling, general and
    administrative                       1,119,000             705,000            1,878,000          1,594,000
  Product development                      205,000             197,000              380,000            568,000
  Amortization of warrants
    issued to strategic partners                --               7,000                   --            192,000
                                        ----------          ----------          -----------        -----------
Total operating expenses                 1,324,000             909,000            2,258,000          2,354,000

Operating loss                            (758,000)           (513,000)          (1,081,000)        (1,551,000)
Other expense, net                          (9,000)                 --              (16,000)            (1,000)
Interest income                             26,000              65,000               64,000            138,000
                                        ----------          ----------          -----------        -----------
Net loss                                $ (741,000)         $ (448,000)         $(1,033,000)       $(1,414,000)
                                        ==========          ==========          ===========        ===========

Net loss per share (basic and           ----------          ----------          -----------        -----------
  diluted)                              $    (0.09)         $    (0.06)         $     (0.13)       $     (0.18)
                                        ==========          ==========          ===========        ===========
Weighted average number of shares
used in per share calculation (basic
and diluted)                             8,139,000           8,066,000            8,137,000          8,062,000
                                        ==========          ==========          ===========        ===========
</TABLE>

 The accompanying notes are an integral part of these consolidated condensed
                             financial statements.


                                       4
<PAGE>

                            SourcingLink.net, Inc.
                Consolidated Condensed Statements of Cash Flows
                                  (Unaudited)

<TABLE>
<CAPTION>

                                                Six months ended September 30,
                                                ------------------------------
                                                     2001             2000
                                                ------------      ------------
<S>                                             <C>               <C>
Cash flows from operating activities:
   Net loss                                     $ (1,033,000)    $ (1,414,000)
Adjustments to reconcile net loss to
 net cash used in operating activities:
   Depreciation and amortization expense             155,000          113,000
   Unrealized exchange (gain) loss                     1,000           (1,000)
   Amortization of stock-based
    compensation                                          --          192,000
   Changes in operating assets and
    liabilities-net                                  166,000         (129,000)
                                                ------------     ------------
     Net cash used in operating activities          (711,000)      (1,239,000)
                                                ------------     ------------


Cash flows from investing activities:
   Purchases of fixed assets                        (168,000)        (245,000)
   Purchases of short-term investments              (499,000)              --
   Maturities of short-term investments              499,000        1,955,000
                                                ------------     ------------
      Net cash provided by (used in)
       investing activities                         (168,000)       1,710,000
                                                ------------     ------------


Cash flows from financing activities:
   Proceeds from exercise of stock
    options                                               --           29,000
   Proceeds from issuance of common
    stock                                              5,000           22,000
                                                ------------     ------------
      Net cash provided by financing
       activities                                      5,000           51,000
                                                ------------     ------------


Effect of exchange rate changes on cash               (8,000)           1,000
                                                ------------     ------------
      Net increase (decrease) in cash
       and cash equivalents                         (882,000)         523,000


Cash and cash equivalents, beginning
 of the period                                     4,076,000        3,870,000
                                                ------------     ------------

Cash and cash equivalents, end of
 the period                                     $  3,194,000     $  4,393,000
                                                ============     ============
</TABLE>


 The accompanying notes are an integral part of these consolidated condensed
                             financial statements.

                                       5


<PAGE>

                             SourcingLink.net, Inc.
                    NOTES TO UNAUDITED FINANCIAL STATEMENTS

1.  Basis of presentation:
--------------------------

The interim consolidated condensed financial statements of SourcingLink.net,
Inc. ("SourcingLink" or the "Company") are unaudited and reflect all adjustments
(consisting only of normal recurring adjustments), which are, in the opinion of
management, necessary for a fair presentation, in all material respects, of the
financial position and operating results of the Company for the interim periods.
The results of operations for the three and six months ended September 30, 2001
are not necessarily indicative of the results to be expected for the entire
fiscal year ending March 31, 2002.  The year-end balance sheet data at March 31,
2001 was derived from the audited financial statements.

The consolidated condensed financial statements include the accounts of
SourcingLink.net, Inc. and its wholly-owned subsidiary.  All significant
intercompany transactions and account balances have been eliminated in
consolidation.

This financial information should be read in conjunction with the audited
financial statements and notes thereto included in the Company's Form 10-KSB for
the fiscal year ended March 31, 2001.

2.  Computation of net loss per share:
--------------------------------------

Net loss per share is presented on a basic and diluted basis.  Basic earnings
(loss) per share is computed by dividing the income (loss) by the weighted
average number of shares of Common Stock outstanding for the period.  Diluted
earnings per share are computed by giving effect to all dilutive potential
shares of Common Stock that were outstanding during the period.  For the
Company, dilutive potential shares of Common Stock consist of incremental shares
of Common Stock issuable upon the exercise of stock options and warrants for all
periods and conversion of preferred stock for the three and six months ended
September 30, 2000.

Basic and diluted earnings (loss) per share are calculated as follows for the
three and six months ended September 30, 2001 and 2000 (unaudited):

<TABLE>
<CAPTION>
                      Three months ended September 30,     Six months ended September 30,
                      --------------------------------     --------------------------------
Basic and diluted:        2001                2000             2001                2000
                      ------------         -----------     ------------       -------------
<S>                   <C>                  <C>             <C>                <C>
Net loss                $ (741,000)        $ (448,000)     $(1,033,000)        $(1,414,000)
                        ==========         ==========      ===========         ===========
Weighted average
 shares outstanding
 for the period          8,139,000          8,066,000        8,137,000           8,062,000

Net loss per share      $    (0.09)        $    (0.06)     $     (0.13)        $     (0.18)
                        ==========         ==========      ===========         ===========
</TABLE>

At September 30, 2001, the Company had 1,117,000 options and 742,000 warrants
outstanding to purchase shares of Common Stock compared to 711,000 options and
754,000 warrants outstanding at March 31, 2001. These options and warrants were
not included in the computation of diluted earnings per share because their
inclusion would be anti-dilutive.

3.  Comprehensive loss:
-----------------------

Comprehensive loss for the three months ended September 30, 2001 and 2000 was
$744,000 and $448,000, respectively. For the six months ended September 30, 2001
and 2000 the comprehensive loss was $1,040,000 and $1,414,000, respectively.
The difference between comprehensive loss and net loss is the treatment of
cumulative foreign currency translation adjustments.

                                       6
<PAGE>

4.  Recent pronouncements:
-------------------------

In July 2001, the Financial Accounting Standards Board ("FASB") issued Statement
No. 141, "Business Combinations" and Statement No. 142, "Goodwill and Other
Intangible Assets" ("FAS 141" and "FAS 142", respectively). FAS 141 replaces
Accounting Principles Board Opinion No. 16 and eliminates pooling-of-interests
accounting prospectively. It also provides guidance on purchase accounting
related to the recognition of intangible assets and accounting for negative
goodwill.  FAS 142 changes the accounting for goodwill from an amortization
method to an impairment-only approach. Under FAS 142, goodwill will be tested
annually and whenever events or circumstances occur indicating that goodwill
might be impaired. FAS 141 and FAS 142 are effective for all business
combinations completed after June 30, 2001. Upon adoption of FAS 142,
amortization of goodwill recorded for business combinations consummated prior to
July 1, 2001 will cease, and intangible assets acquired prior to July 1, 2001
that do not meet the criteria for recognition under FAS 141 will be reclassified
to goodwill. Companies are required to adopt FAS 142 for fiscal years beginning
after December 15, 2001. The Company will adopt FAS 142 on April 1, 2002. In
connection with the adoption of FAS 142, the Company will be required to perform
a transitional goodwill impairment assessment. The Company has not yet
determined the impact these standards will have on its results of operations and
financial position, and it believes that any impact will not be material.

On October 3, 2001, the FASB issued Statement of Accounting Standards No. 144,
"Accounting for the Impairment or Disposal of Long-Lived Assets" ("FAS 144").
FAS 144 supersedes FAS 121, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to Be Disposed Of." FAS 144 applies to all long-lived
assets (including discontinued operations) and consequently amends Accounting
Principles Board Opinion No. 30, "Reporting Results of Operations--Reporting the
Effects of Disposal of a Segment of a Business." FAS 144 develops one accounting
model for long-lived assets that are to be disposed of by sale. FAS 144 requires
that long-lived assets that are to be disposed of by sale be measured at the
lower of book value or fair value less cost to sell. Additionally, FAS 144
expands the scope of discontinued operations to include all components of an
entity with operations that (1) can be distinguished from the rest of the entity
and (2) will be eliminated from the ongoing operations of the entity in a
disposal transaction. FAS 144 is effective for the Company for fiscal years
beginning after December 15, 2001.

Item 2  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Certain statements contained in this Report, including, without limitation,
statements containing the words "may," "will," "believes," "anticipates,"
"expects" or the negative or other variations thereof or comparable terminology,
constitute "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. In addition, any statements that refer to expectations,
projections, or other characterizations of future events or circumstances are
forward-looking statements. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of SourcingLink to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. These factors include, but are not limited to,
the factors discussed under the caption "Risk Factors" below, and are discussed
in more detail in the "Risks Related to Our Business" and "Risks Related to Our
Industry" sections of SourcingLink's Annual Report on Form 10-KSB for the fiscal
year ended March 31, 2001. Given these uncertainties, readers are cautioned not
to place undue reliance on such forward-looking statements. SourcingLink
disclaims any obligation to update any such factors or to announce publicly the
results of any revisions of the forward-looking statements contained or
incorporated by reference herein to reflect future events or developments.

Overview

SourcingLink provides comprehensive merchandise sourcing solutions for the
retail industry.  Our Internet-based hosted solution, branded
MySourcingCenter(TM), addresses the pre-order phase of business-to-business
merchandise sourcing. MySourcingCenter provides immediate connectivity between
retail merchandise buyers and their suppliers worldwide. The solution organizes
and automates a broad range of sourcing activities, improving productivity and
reducing costs and buying lead-times. For merchandise suppliers,
MySourcingCenter provides a sales tool to expand market reach, enhance existing
trading relationships, and reduce costs. SourcingLink provides complementary
enablement and strategic sourcing services for retail buyers and their
suppliers. Strategic sourcing services involves a methodology and process for
providing savings to retailers through auction-based trading events.
MySourcingCenter enablement services includes the training of buyers and
suppliers on Internet-based business-to-business tools and exchanges to bring
buyers and suppliers together in on-line environments.

                                       7
<PAGE>

In March 2000, SourcingLink entered into a services contract with Paris, France-
based Carrefour S.A. (the "Carrefour contract").  The agreement with Carrefour,
the world's second largest retailer, provides that SourcingLink will receive a
minimum of $9 million for services to be performed over a three-year period
which began April 1, 2000.  The Carrefour contract followed an announcement by
Carrefour that it, Sears, Roebuck & Co. and Oracle Corporation were forming a
new company named GlobalNetXchange ("GNX"), for the purpose of connecting
electronically and facilitating certain merchandise buying activities with
suppliers worldwide.  Under our contract, we are assisting Carrefour with its
implementation of GNX functionality and processes.

The majority of the Company's revenue is derived from services performed under
the Carrefour contract.  The Company is actively pursuing subscribers for its
MySourcingCenter solution, as well as additional customers for its professional
services.  Subsequent to the end of the second quarter, we announced an
agreement with the WorldWide Retail Exchange, or WWRE, under which our
professional services can be marketed jointly and sold by the WWRE to retail
members of the exchange. In terms of membership, WWRE is the largest exchange in
the retail industry with 59 members around the globe. Work under the contract
will be performed under statements of work for the various projects that arise.

Accumulated Losses

From its inception in 1993 through September 30, 2001, SourcingLink has incurred
net losses of approximately $21.5 million, primarily as a result of costs to
develop its technology, to develop and introduce its sourcing solutions and
services, to establish marketing and distribution relationships, to recruit and
train a sales and marketing group and to build an administrative organization.
The Company's prospects must be considered in light of its operating history,
and the risks, expenses and difficulties frequently encountered by companies in
their early stage of development, particularly companies in new, unproven and
rapidly evolving markets.  The limited operating history of the Company makes
the prediction of future results of operations difficult or impossible and,
therefore, there can be no assurance that the Company will grow or that it will
be able to achieve or sustain profitability.  The Company's success is highly
dependent on its ability to execute in a timely manner its sales and marketing
plans, including the expansion of its customer base, of which no assurance can
be made.  Additional factors in the Company's success include the ability to
raise additional capital, continued satisfactory performance under the Carrefour
contract, and continued contributions of key management, consulting,
development, sales and marketing, and finance personnel, certain of whom would
be difficult to replace.  The loss of the services of any of the key personnel
or the inability to attract or retain qualified management and other personnel
in the future, or delays in hiring required personnel, could have a material
adverse effect on the Company's business, prospects, operating results or
financial condition.

Results of operations for the three and six months ended September 30, 2001 and
2000

Revenue.  Total revenue for the three months ended September 30, 2001 increased
$14,000, or 2%, to $872,000, from $858,000 in the three months ended September
30, 2000.  Total revenue for the six-month period ended September 30, 2001
increased $213,000, or 13%, to $1,836,000, from $1,623,000 in the six months
ended September 30, 2000.  This includes an increase in Professional Services
revenues for the second quarter of $129,000, to $865,000 this year from $736,000
in last year's second quarter, and an increase for the six-month period of
$508,000, to $1,809,000 this year from $1,301,000 for the same period one year
ago.  The increase in Professional Services revenue for both the three and six-
month periods is attributable to a higher amount of services being provided
under the Carrefour contract, a three-year, $9 million services agreement that
began April 1, 2000.  Last year's first six months were the initial period of
work on the contract, and the level of contract activity was ramping-up during
that initial phase of work.

The increase in Professional Services revenue was largely offset in the three-
month period by a decrease in Subscriber revenue of $115,000, to $7,000 from
$122,000 in last year's second quarter. For the six-month period ended September
30, 2001, Subscriber revenue decreased by $295,000, to $27,000 in 2001 from
$322,000 one year ago. For both the three and six-month periods, the decrease in
Subscriber revenue in 2001 is attributable to two factors. The first factor is
that the majority of the Subscriber revenue last year was from desktop solutions
SourcingLink provided for use by its major customer in managing inspection and
shipping tracking data. Use of these desktop solutions declined significantly
over the second half of fiscal year 2001, and effective at the beginning of this
year's first quarter, the customer moved these applications in-house. Therefore,
there is no revenue from the inspection or shipping tracking applications in
this year's results. The second factor is that a portion of the Subscriber
revenue in both the current and prior year quarters is from subscriptions of
suppliers that were made available to
                                       8
<PAGE>

SourcingLink by Paris, France-based Promodes, which was acquired by Carrefour
late in calendar 1999. These subscriptions were for use of an older version of
our solution, not our current MySourcingCenter(TM) product. As previously
mentioned, Carrefour has contracted with GNX for facilitating certain buying
activities electronically with its merchandise suppliers, and the number of
former Promodes suppliers subscribing to our solution began decreasing with the
acquisition of Promodes by Carrefour, and Carrefour's subsequent involvement
with GNX. As of September 2001, we discontinued this older version of our
solution.

The Company is working with Europe-based Leroy Merlin on its use of
MySourcingCenter with its buyers and merchandise suppliers, and is progressing
on our plans for initial roll-outs with certain buyers of our other charter
retailers.  We are also pursuing new retail customers with suppliers that could
adopt our solution, which is targeted at the home improvement segment of the
retail market.  As previously mentioned, we have signed an agreement with the
WorldWide Retail Exchange to provide our Professional Services to the retail
members of the exchange.  Work with WWRE will be performed under individual
statements of work, or SOW's, and initial SOW's are currently underway.

Due to the Carrefour and WWRE contracts, the Company expects that Professional
Services revenue will continue to comprise a significant portion of the
Company's overall revenue in its fiscal year ending March 31, 2002.  For
MySourcingCenter Subscriber revenue, the Company's solution for the home
improvement industry involves marketing directly to merchandise suppliers, a
group that includes small and highly dispersed target customers thus increasing
the difficulty of the sales and marketing task.  In addition, supplier adoption
may be linked to use of MySourcingCenter by large retail companies, which
generally requires the approval of multiple parties and management levels within
the retail organization, frequently resulting in lengthy sales and
implementation cycles.

Cost of Revenue.  For the three months ended September 30, 2001, the cost of
revenue decreased $156,000, or 34%, to $306,000 from $462,000 in the prior
year's three-month period.  For the six-month period, the cost of revenue
decreased $161,000, or 20%, to $659,000 from $820,000 last year.  For the
quarter, total gross profit increased $170,000 to $566,000, or 65% of revenue,
from $396,000, or 46% of revenue, in the three months ended September 30, 2000.
In the first six months of fiscal 2002, total gross profit increased $374,000
to $1,177,000 or 64% of revenue, from $803,000, or 49% of revenue, in the six
months ended September 30, 2000.

The amounts of the components of cost of revenue have shifted this year as
compared to fiscal year 2001.  The cost of Subscriber revenue in the current
year's three-month period decreased by $201,000, to $55,000 from $256,000 in
last year's second quarter, and in the six months decreased by $395,000, to
$116,000 from $511,000 in the same period last year.  The cost of Subscriber
revenue decreased due to the higher cost of network infrastructure support and
hosting under a prior year agreement with IBM for such services compared to the
Company's current Southern California-based co-location arrangement for our
solution infrastructure that was put in place effective October 1, 2000.  The
cost of Professional Services revenue in the second quarter increased by
$45,000, to $251,000 in the current year from $206,000 last year, and in the
six-month period increased by $234,000, to $543,000 from $309,000 one year ago.
The cost of Professional Services revenue increased due to the increased labor
and associated costs in support of the higher level of revenue.

Operating Expenses

Selling, General and Administrative Expenses.  In the current year's second
quarter, the Company's selling, general and administrative expenses increased by
$414,000, or 59%, to $1,119,000 from $705,000 in the quarter ended September 30,
2000.  The increase in these expenses is primarily attributable to changes in
management personnel that were initiated in the current quarter, as well as
investments in marketing materials and activities, including travel costs.
These costs were targeted at securing new business for the Company, and in
addition, for the management costs, at securing the expertise needed to deliver
on new business obtained.

For the six months ended September 30, 2001, selling, general and administrative
expenses increased $284,000, or 18%, to $1,878,000 from $1,594,000 in the same
six months of the prior year.  For the year-to-date, the increases described
above that occurred in the second quarter were partially offset by lower costs
in the first quarter as compared to the prior year's first three months,
primarily due to a reduction of year-end incentive compensation accruals to
reflect the amount ultimately approved by the Company's board of directors and
reduced legal fees as compared to the prior year.

                                       9
<PAGE>

Based on the activities completed during the second quarter and current plans
for the remainder of the year, management does not expect selling, general and
administrative expenses over the next two quarters of the current fiscal year to
continue increasing at a rate similar to that which occurred this quarter.

Product Development Expenses.  Product development expenses during the three
months ended September 30, 2001 were nearly unchanged at $205,000 as compared to
$197,000 in the three months ended September 30, 2000.  For the six-month
period, product development expenses decreased $188,000, or 33%, to $380,000
from $568,000 for the same period last year.  The decrease in product
development expenses is primarily due to lower labor and subcontract costs as
compared to the prior year's first quarter.  We had ramped-up our development
costs in fiscal 2000 for a major enhancement of our core solution.  This effort
was completed during the first quarter of fiscal 2001, and such costs were
subsequently reduced to a lower level.  In addition, new accounting guidelines
under Emerging Issues Task Force Issue No. 00-2 became effective for the Company
on July 1, 2000.  Under these guidelines, certain Web site development costs
must be capitalized and amortized rather than expensed. Due to the July 1, 2000
effective date of the guidelines, there was a greater reduction in the amount of
product development costs that were expensed in the six months ended September
30, 2001 as compared to the same six-month period one year ago.

The Company upgraded its development staff during this year's second quarter,
and therefore management expects that product development expenses will be
slightly higher in subsequent quarters of the current fiscal year than such
costs were in the quarter just completed.

Stock-based Compensation.  The stock-based compensation in last year's second
quarter and first six months relates to the cost of warrants for the purchase of
SourcingLink common stock issued to strategic partner companies during fiscal
year 2000.  The related expense was determined under the Black-Scholes valuation
method, and was being amortized over the periods associated with the business
agreements underlying the warrants.  Such amortization amounted to $7,000 in the
second quarter and $192,000 in the first six months of fiscal year 2001.  There
is no such amortization this year as one of the warrants was cancelled by the
Company last fiscal year, and the cost of the other warrant has been fully
amortized.

Other Expense, net and Interest Income.  The principal components of other
expense, net, are certain franchise taxes, and exchange gains or losses on
foreign currency transactions with SourcingLink's subsidiary in France.
Primarily as a result of these costs, other expense, net was $9,000 and nil in
the quarters ended September 30, 2001 and 2000, respectively.  For the six-month
periods, these expenses amounted to $16,000 and $1,000 in fiscal years 2002 and
2001, respectively.  Interest income was $26,000 and $65,000 for the three
months ended September 30, 2001 and 2000, respectively, and $64,000 and $138,000
for the six months ended September 30, 2001 and 2000, respectively.  The
decrease in interest income is attributable to both the decline in interest
rates applicable to cash investments and the decrease in cash on-hand this year
as compared to the prior year.

Income Taxes.  SourcingLink recorded a net loss of $1.0 million during the six
months ended September 30, 2001, and had net losses of $1.6 and $4.5 million in
fiscal years 2001 and 2000, respectively.  Accordingly, no provision for income
taxes was recorded in any of these periods.  As of September 30, 2001,
SourcingLink had net operating loss carryforwards for United States income tax
purposes of approximately $14.0 million.  These losses expire at various dates
between 2011 and 2022.  The Internal Revenue Code of 1986, as amended, contains
provisions that limit the use in any future period of net operating loss and
credit carryforwards upon the occurrence of certain events, including a
significant change in ownership interests.  A valuation allowance has been
recorded for the tax benefit of the net operating loss carryforwards and the
deferred tax assets of SourcingLink due to the fact that, as of the present
time, it is more likely than not that such assets will not be realized.

Fluctuations in Quarterly Operating Results

Our quarterly operating results have varied significantly in the past and will
likely vary significantly in the future.  We believe that period-to-period
comparisons of our results of operations are not meaningful and should not be
relied upon as indicators of future performance.  Our operating results could
fall below the expectations of securities analysts or investors in some future
quarter or quarters.  Our failure to meet these expectations would likely
adversely affect the market price of our common stock.

Our quarterly operating results may vary depending on a number of factors,
including: demand for our solutions and services; actions taken by our
competitors, including new alliances, product introductions and enhancements;
delays or

                                       10
<PAGE>

reductions in spending for, or the adoption of, pre-order supply chain
management solutions by our potential customers as companies review business-to-
business applications; ability of our solution, network and operations
infrastructure to handle measurable activity; ability to develop, introduce and
market our solutions on a timely basis; changes in our pricing policies or those
of our competitors; ability to expand our sales and marketing operations,
including hiring additional sales personnel; size and timing of sales of our
solution and services; success in maintaining and enhancing existing
relationships and developing new relationships with strategic partners; ability
to control costs; technological changes in our markets; deferrals of customer
subscriptions in anticipation of competitive solutions, or new developments or
features of our solution; customer budget cycles and changes in these budget
cycles; and general economic factors.

We have incurred significant operating expenses to expand our management team
and sales and marketing operations, fund product development, provide general
and administrative support, develop new partnerships, increase our professional
services and support capabilities and improve our operational and financial
systems.  We plan on incurring significant additional expenses of this nature,
and if our revenues are not maintained or increased, our business, operating
results and financial condition could be seriously harmed and net losses in a
given quarter could be larger than expected.

Liquidity and Capital Resources

SourcingLink's cash and cash equivalents at September 30, 2001 were $3.19
million, a decrease of $882,000 from March 31, 2001.  Cash used in operating
activities for the six months ended September 30, 2001 was $711,000, compared to
$1,239,000 for the six months ended September 30, 2000.  The cash usage in each
period was primarily due to the net losses incurred.

We believe that our existing cash balances are sufficient to fund our operating
needs for the next 12 months. If we are unable to maintain our relationship with
our main customer we may need to seek additional funding before the end of this
period. We plan to actively seek additional equity investment to fund operations
beyond the next 12 months.  If such efforts are unsuccessful, we will need to
reduce operating spending significantly, which would materially and adversely
affect our business.

The Company currently does not have a bank credit line. The Company does not
intend to pay cash dividends with respect to capital stock in the foreseeable
future.


RISK FACTORS

The market for our solution and services is at an early stage.  We need
retailers and their merchandise suppliers to implement and use our solution and
services.

The market for Internet-based business-to-business solutions and services is at
an early stage of development. Our success depends on a significant number of
retailers and their merchandise suppliers implementing our solution and
contracting for our services. The decision to implement our solution or services
by major retailers and their merchandise suppliers is controlled by multiple
parties within each retail organization.  In addition, many large retailers are
members of one of the two large industry exchanges, and the exchanges may play a
role in influencing retailer solution provider and implementation decisions.  In
order to implement our solution or services, often these organizations must
change established business practices and conduct business in new ways. Our
ability to attract customers for our solution and services may depend on
leveraging our existing major customer as a reference account. Unless a
significant number of retailers and their merchandise suppliers implement our
solution or contract for our services, our solution and services may not achieve
adequate market acceptance and our business will be seriously harmed.

We have a history of losses and expect to incur losses in the future.

We incurred a net loss of $1.0 million in the first six months of fiscal year
2002, and net losses of $1.6 million and $4.5 million in fiscal years 2001 and
2000, respectively. As of September 30, 2001, we had an accumulated deficit of
approximately $21.5 million. While we expect the Carrefour contract will provide
at least a total of $9 million of revenue over the three-year period that began
on April 1, 2000, we also expect to derive a portion of our future revenues from
subscription fees of our Internet sourcing solution, which is based on an
unproven business model. In addition,

                                       11
<PAGE>

with Carrefour's acquisition of Promodes and subsequent formation, along with
Sears, Roebuck & Co. and Oracle Corporation, of GlobalNetXchange, we have lost
subscribing suppliers of the former Promodes central buying organization.
Moreover, we expect to continue incurring significant sales and marketing,
product development, and general and administrative expenses. As a result, we
expect to incur losses in upcoming financial quarters.

We expect to depend on our solution to augment revenue from our consulting
contract with Carrefour in the future.

We anticipate that revenues from our solution will constitute substantially all
of our non-service revenues for the foreseeable future. Consequently, if we are
unable to generate sales of, or demand at an adequate price for, our solution,
or if it fails to achieve market acceptance, our prospects will be seriously
harmed. Likewise, substantial non-performance by us on the Carrefour contract
would seriously harm our ability to collect the minimum payments due to us under
the contract, which amount to a total of $9 million over the three-year period
that began April 1, 2000.

We expect implementation of our solutions by large retailers to be complex, time
consuming and expensive, and we may experience long sales and implementation
cycles.

Our supply chain management solution is often viewed as an enterprise-wide
solution that must be deployed to many users within a large retailer's sourcing
organization.  An enterprise-wide adoption by large retailers is often
characterized by long sales cycles beginning with pilot studies and concluding
with retailers strongly encouraging their merchandise suppliers to subscribe to
our solution. In addition, our potential customers generally consider other
issues before adopting our solution, including product benefits, integration,
interoperability with existing computer systems, scalability, functionality and
reliability.  As a result, we must educate potential customers on the use and
benefits of our solution. Enterprise-wide sales characteristically take several
months to finalize, and such a sale must often be approved by a number of
management levels within the customer organization.  Entering into an agreement
with a customer for the implementation of our solution does not assure that the
customer will in fact make such implementation or assure the time frame in which
the implementation may occur. Any failure by the customer to implement our
solution or delay in such implementation could adversely affect our financial
results.

We derive most of our revenue from sales to one main retailer. If we are not
able to retain this retailer as a customer our revenues will be reduced and our
financial results and prospects will suffer.

Our largest customer accounts for a substantial majority of our revenues.  We
may not be able to retain our customers or our strategic partners may decrease
their commitment to require their suppliers to use our solution.  Specifically,
due to Carrefour's participation in GlobalNetXchange, we may not have the
opportunity to market to its suppliers in combination with Carrefour.  We may be
unable to adequately perform the required services under our contract with
Carrefour, which would harm our sales prospects and financial results.

Our customers and prospective customers are either in, or supplying goods to,
the retail industry.  A significant change or downturn in this industry could
adversely affect our prospects.

We face intense competition.  If we are unable to compete successfully, our
prospects will be seriously harmed.

The market for business-to-business eCommerce solutions in general, and supply
chain management solutions and services in particular, is extremely competitive,
evolving and characterized by continuous rapid development of technology.
Competition to capture business users of both solutions and services is intense
and is expected to increase dramatically in the future. Such competition will
likely result in realizing lower profit margins, which could have a serious
adverse impact on our business and prospects.

Recently formed exchanges such as GlobalNetXchange and WorldWide Retail Exchange
are owned primarily by retailers and are focused exclusively on retail
merchandise procurement. Companies such as FreeMarkets, Inc. provide general
Internet-based sourcing capabilities and services for buyers and suppliers in a
business-to-business electronic marketplace. Companies that provide electronic
catalogs and content management services could expand their offerings to include
sourcing functionality. Our indirect competitors are traditional value-added
network solution providers that have extended their value-added network
connections over the Internet. We also face indirect competition from both new
and traditional companies that are focused on trading exchanges or marketplaces
that allow merchandise buyers and sellers to access each other on channels
within new or existing portals. One or more of these companies may develop

                                       12
<PAGE>

and add preorder merchandise sourcing capabilities to their existing product
offerings, giving these companies a broader or more comprehensive solution than
our solution, which could adversely affect our business. We also expect that
additional established and emerging companies will seek to enter our solutions
market as it continues to develop and expand.

In our services business, competitors include the major consulting companies
such as Accenture and A.T. Kearney, Inc., the consulting arms of the
international accounting firms and several large computer-industry companies,
including IBM.  FreeMarkets, Inc. offers professional services along with their
electronic marketplace tools and capabilities. In addition, there are many
smaller firms that provide services in this market. While many of these
companies do not have the hands-on experience that we have gained through our
work with Carrefour, some of these companies have been involved in services
projects with the retail industry exchanges.

We may not be able to compete successfully against current or future
competitors, especially those with significantly greater financial, marketing,
service, support, technical and other resources, greater name recognition or a
larger installed base of customers.

We depend on our key personnel.

Our future performance depends on the continued service of our senior
management, product development, professional services, and sales and marketing
personnel. The loss of the services of one or more of our key personnel could
seriously harm our prospects. Our future success also depends on our continuing
ability to attract, hire, train and retain a substantial number of highly
skilled managerial, services, technical, sales, marketing and customer support
personnel. We are particularly dependent on hiring additional personnel to
increase our professional services, direct sales and product development
organizations. Competition for qualified personnel is intense, and we may fail
to retain our key employees or to attract or retain other highly qualified
personnel.


Our software may contain errors or defects.

Our software is complex and may contain undetected errors or failures when first
introduced.  This may result in failure to achieve or maintain market acceptance
of our solution.  We have in the past discovered programming errors in our new
releases after their introduction.  We have experienced delays in release, and
we may discover errors in the future in existing versions or new versions after
release, which could materially and adversely affect our business and our
relationship with existing customers and the ability to attract new customers.

Our current systems, procedures and controls may be inadequate to support the
expected growth and expansion of our services business.

We currently plan to hire new employees and to expand the geographic scope of
our services customer base and operations. These activities will result in
substantial demands on our management resources. Our ability to compete
effectively and to manage future expansion of our services and operations will
require us to continue to improve our financial and management controls,
reporting systems, project management and procedures on a timely basis, and
expand, train and manage our employee work force. We may encounter difficulties
in transitioning and expanding our business in the services area, and our
personnel, systems, procedures and controls may be inadequate to support our
future operations.

Our business is susceptible to risks associated with international operations.

We market our solution and services to retailers and their merchandise suppliers
on a worldwide basis, and historically have derived a significant portion of our
revenues from international sales. As such, we are subject to risks associated
with international business activities, including unexpected changes in
regulatory requirements and the burdens of compliance with a wide variety of
foreign laws; longer accounts receivable payment cycles and difficulties in
collecting accounts receivable; difficulties in managing and staffing
international operations; and currency exchange rate fluctuations, which could
increase the cost of our solutions and services.

                                       13
<PAGE>

We depend on increasing use of the Internet and on the growth of eCommerce.  If
the use of the Internet and eCommerce do not grow as anticipated, our business
will be seriously harmed.

Our success depends on the increased acceptance and use of the Internet as a
medium of commerce on a global basis. Growth in the use of the Internet for
eCommerce is a recent phenomenon and has fluctuated in the recent past. As a
result, acceptance and use of the Internet may not continue to develop at
significant rates and a sufficiently broad base of business customers may not
adopt or continue to use the Internet as a medium of commerce. Demand and market
acceptance for recently introduced services and products over the Internet are
subject to a high level of uncertainty, and there exist few proven services and
products.

Our business would be seriously harmed if:

 .  Use of the Internet, the Web and other online services does not increase or
   increases more slowly than expected;
 .  The infrastructure for the Internet, the Web and other online services does
   not effectively support expansion that may occur, or is disrupted in any
   significant way; or
 .  The Internet, the Web and other online services do not create a viable
   commercial marketplace, inhibiting the development of eCommerce and
   reducing the need for our solution.


PART II   OTHER INFORMATION

Item 4    Submission of Matters to a Vote of Security Holders

The Company held an Annual Meeting of Stockholders on July 24, 2001, at which
time the following matters were submitted to a vote of the Company's
stockholders:

Proposal 1:   The election of the following persons as directors to serve until
the next succeeding Meeting of Stockholders or until their respective successors
have been elected and qualified, or until their earlier resignation or removal:

<TABLE>
<CAPTION>
                                        Number of Shares
                         -----------------------------------------------
                              For            Against          Withheld
                         -------------     -----------      ------------
<S>                      <C>               <C>              <C>
Marcel van Heesewijk       5,464,405          1,000             3,467
Daniel B. Rawlings         5,465,405              0             3,467
Johan A. Vunderink         5,465,375             30             3,467
Louis A. Delmonico         5,459,780          5,625             3,467
</TABLE>

Proposal 2:   The amendment of the Company's 1999 Stock Incentive Plan to
increase the number of shares of common stock issuable thereunder by 750,000
shares, bringing the total number of shares issuable thereunder to 1,000,000.

<TABLE>
<CAPTION>
                                        Number of Shares
                         -----------------------------------------------
                              For            Against          Withheld
                         -------------     -----------      ------------
                         <S>               <C>              <C>
                           2,749,097        102,699            4,375
</TABLE>

Item 6    Exhibits and Reports on Form 8-K

     a.   Exhibits

          None.

     b.   Reports on Form 8-K

     No reports on Form 8-K were filed with the Securities and Exchange
     Commission during the quarter for which this report is filed.

                                       14
<PAGE>

                                   SIGNATURE

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.

Dated:  November 14, 2001     SourcingLink.net, Inc.


                              By:  /s/ Gary Davidson
                                  ------------------
                              Gary Davidson,
                              Vice President Finance and Administration,
                              Chief Financial Officer (Principal Financial
                              Officer)

                                       15