SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

         Pursuant to Section 13 or 15(d) of the Securities Exchange Act

                                  March 1, 2001
                                 Date of Report
                        (Date of Earliest Event Reported)

                         VERTICAL COMPUTER SYSTEMS, INC.
             (Exact name of Registrant as Specified in its Charter)

                               6336 WILSHIRE BLVD.
                              LOS ANGELES, CA 90048
                    (Address of Principal Executive Offices)

                                 (323) 658-4211
                         (Registrant's Telephone Number)

                       SCIENTIFIC FUEL TECHNOLOGIES, INC.
                          1850 EAST FLAMINGO ROAD, #111
                               LAS VEGAS, NV 89119
                        (Former name and former address)

  DELAWARE                              0-28685                    69-0393635
(State or other jurisdiction       (Commission File                (IRS Employer
of incorporation)                  File Number)              Identification No.)

ITEM 5. OTHER EVENTS.

On March 1, 2001 Vertical Computer Systems, Inc., ("Registrant") entered into a
Letter Agreement ("Letter Agreement") dated as of February 23, 2001, with Arglen
Acquisitions, LLC ("Arglen") regarding the operating agreement, ownership by
Registrant, Arglen and the Division management team, and other aspects of Now
Solutions, LLC ("Now Solutions"), a Delaware limited liability company
newly-formed by Arglen to purchase 100% of the assets of the iRenaissance CS(R)
Human Resources and Payroll product division ("Division") of Ross Systems, Inc.
("Seller"). Subsequently, on or about March 3, 2001, Arglen and the Registrant
entered into a Now Solutions, LLC Operating Agreement ("Operating Agreement").
Inasmuch as Arglen had initially negotiated the purchase of the Division by Now
Solutions from Seller and arranged financing of the purchase from Coast Business
Credit ("Coast"), a division of Southern Pacific Bank, the Letter Agreement
provides for the grant of Registrant's warrants to Arglen to purchase
Registrant's common stock as described below. The purchase of the Division from
the Seller by Now Solutions is described more fully in the Registrant's Current
Report on Form 8-K filed with the Commision and dated as of March 9, 2001.

Relevant provisions of the Letter Agreement that are reflected in the Now
Solutions, LLC Operating Agreement ("Operating Agreement") are summarized as
follows:
<PAGE>

1.The Registrant shall provide $1,000,000 of equity capital (which capital shall
be returned to the Registrant by special distributions after the purchase loans
to Coast have been paid off) to Now Solutions in exchange for 60% initial
ownership; Arglen (including the 5% membership interest of Stephen B. Parnes)
and management of the Division shall have 35% and 5% initial ownership,
respectively; and, after three years, ownership of Now Solutions by the
Registrant, Arglen and management is expected to be 51%, 34% and 15%,
respectively.

2. In the event Now Solutions is in default of any of its loan agreements with
Coast, Registrant shall have the right to replace the independent representative
to the Executive Committee of Now Solutions.

3. Now Solutions shall, as soon as practicable, convert from a limited liability
company to a C-corporation, which C-corporation shall have a shareholder's
agreement identical to the Operating Agreement except where not legally
possible.

Relevant provisions of the Operating Agreement are summarized as follows:

1. The overall management and control of the business is vested in an Executive
Committee, which will initially be comprised of five (5) members, two (2) of
whom are appointed by Arglen and two (2) of whom are appointed by the
Registrant. The four members of the Executive Committee will then select the
final outside member of the Executive Committee.

2. No acts shall be taken, funds expended, decisions made or obligations
incurred by Now Solutions, its officers, the Executive Committee, or any member
with respect to a matter within the scope of any of the major decisions
enumerated below (the "Major Decisions"), unless and until the same has been
approved by Supermajority in Interest (defined as 75% of the outstanding
equity). The Major Decisions shall include:

(a) Acquire or develop any new business or line of business not related to the
Now Solutions business;

(b) Borrow any money from a member or accept or require capital contributions
from any member, other than loans or capital contributions permitted or
contemplated pursuant to the agreement above;

(c) Make any acquisition of or material investment in any Other Entity (defined
as any general partnership, limited partnership, corporation, joint venture,
trust, business trust, governmental agency, cooperative, association,
individual, business or other entity);

(d) Make any material and substantial change in the purposes of Now Solutions or
of its business;

(e) Make a determination to surrender any permits, approvals or licenses of Now
Solutions or to dissolve Now Solutions;

(f) Admit any general parnership, limited partnership, corporation, joint
venture, trust, business trust, governmental agency, cooperative, association,
individual, business or other entity (collectively referred toi as "Other
Entity") as a member.

(g) Sell, transfer, convey, exchange, lease, encumber, pledge, or otherwise
dispose of all or substantially all, or the assets of Now Solutions;

(h) Merge, consolidate or combine Now Solutions into or with any Other Entity;

(i) Guarantee by Now Solutions of, or the agreement of Now Solutions to be
responsible for, the indebtedness or obligations of any Other Entity;

(j) Make an expenditure or incur any obligation by or on behalf of Now Solutions
at any one time involving a sum in excess of One Hundred Thousand U.S. Dollars
(U.S. $100,000), including by any lease or installment contract where the total
amount of all future payments exceeds One Hundred Thousand U.S. Dollars (U.S.
$100,000), except for expenditures made and obligations incurred pursuant to and
specifically set forth in a budget previously approved by the Supermajority in
Interest;

(k) Institute any legal action or proceeding, except for routine collection and
other minor actions ordinary to Now Solutions business;

<PAGE>

(l) Approve all other distributions to the members;

(m) Accelerate payment of any Now Solutions debt;

(n) Authorize any new borrowing by Now Solutions with the exception of trade
payables incurred in the normal course of the Now Solutions business;

(o) Any amendment of Now Solutions charter;

(p) Increase the number of members of the Board of Directors;

(q) Bankrupt Now Solutions;

(r) Compensation, benefits and employment agreements for officers;

(s) All exclusive contracts.

2. Arglen shall serve as a consultant to Now Solutions and be paid a $100,000
annual management fee for providing Now Solutions' Chairman (initially, Garry
Gyselen, who shall conduct or cause the Chief Executive Officer and President to
conduct the ordinary and usual business and affairs of Now Solutions) and, in
conjunction with the Chairman, for performing certain business affairs of Now
Solutions.

3. Registrant shall serve as a consultant to Now Solutions and be paid a not
less than $50,000 annual management fee for (i) supervising and overseeing
technical and application services for the Now Solutions business through
Registrant's Chief Technology Officer; (ii) supervising and overseeing all
financial services; and (iii), in conjunction with the Chairman, performing
certain business affairs of Now Solutions.

Relevant provisions of the Letter Agreement providing for the grant by
Registrant to Arglen of warrants to purchase Registrant's common stock are
summarized as follows:

1. Registrant will grant Arglen warrants to purchase common shares equal to 5%
of the outstanding shares of Registrant (on a fully diluted basis), with
anti-dilution protection. The exercise price of the warrants will be $0.08, and
exercisable for a period of 5 years from the date the underlying shares become
unrestricted as follows: (a) 1/3 of the warrants will be exercisable
immediately. Arglen agrees that it will not sell more than 150% of the average
daily volume in any given week. (b) 1/3 of the warrants will be exercisable
after year 1. (c) 1/3 of the warrants will be exercisable after year 2.

2. If during the last 90 trading day period in the first year, the per share
value of Registrant's shares, adjusted for any forward or reverse splits and any
other dilutive effect, is less than $0.50, then Registrant will issue Arglen an
additional 25,000,000 warrants to purchase common shares at an exercise price of
$0.08 exercisable for a period of five years from the date they become
unrestricted as follows: (a) 1/3 of the warrants will be exercisable
immediately. Arglen agrees that it will not sell more than 150% of the average
daily volume in any given week. (b) 1/3 of the warrants will be exercisable
after year two. (c) 1/3 of the warrants will be exercisable after year three.

3. If during the last 90 trading day period in the second year, the per share
value of Registrant, adjusted for any forward or reverse splits and any other
dilutive effect, is less than $1.00, then Registrant will issue Arglen an
additional 25,000,000 warrants to purchase common shares at an exercise price of
$0.08 exercisable for a period of five years from the date they become
unrestricted as follows: (a) 1/3 of the warrants will be exercisable
immediately. Arglen agrees that it will not sell more than 150% of the average
daily volume in any given week. (b) 1/3 of the warrants will be exercisable
after year three. (c) 1/3 of the warrants will be exercisable after year four.

The foregoing summaries of the terms of the Letter Agreement and the Operating
Agreement do not purport to be complete and are qualified in their entirety by
reference to the full texts of the Letter Agreement and the Now Solutions, LLC
Operating Agreement, copies of which are filed, respectively, as Exhibit 2.1 and
Exhibit 2.2 hereto, and incorporated herein by reference

<PAGE>

Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

      (a)   N/A

      (b)   N/A

      (c)   Exhibits.

            2.1   Letter Agreement dated as of February 23, 2001 between Arglen
                  Acquisitions, LLC and the Registrant.

            2.2   Now Solutions, LLC Operating Agreement dated as of February
                  27, 2001 between Arglen Acquisitions, LLC and the Registrant.

      THE REGISTRANT UNDERTAKES TO FURNISH SUPPLEMENTALLY TO THE COMMISSION UPON
REQUEST A COPY OF ANY EXHIBIT OR SCHEDULE TO THE OPERATING AGREEMENT.

                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                        VERTICAL COMPUTER SYSTEMS, INC.


                                        BY /s/ RICHARD WADE, PRESIDENT
                                        ----------------------------------------

DATE: May 7, 2001
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SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

         Pursuant to Section 13 or 15(d) of the Securities Exchange Act

                                  March 1, 2001
                                 Date of Report
                        (Date of Earliest Event Reported)

                         VERTICAL COMPUTER SYSTEMS, INC.
             (Exact name of Registrant as Specified in its Charter)

                               6336 WILSHIRE BLVD.
                              LOS ANGELES, CA 90048
                    (Address of Principal Executive Offices)

                                 (323) 658-4211
                         (Registrant's Telephone Number)

                       SCIENTIFIC FUEL TECHNOLOGIES, INC.
                          1850 EAST FLAMINGO ROAD, #111
                               LAS VEGAS, NV 89119
                        (Former name and former address)

  DELAWARE                              0-28685                    69-0393635
(State or other jurisdiction       (Commission File                (IRS Employer
of incorporation)                  File Number)              Identification No.)

ITEM 5. OTHER EVENTS.

On March 1, 2001 Vertical Computer Systems, Inc., ("Registrant") entered into a
Letter Agreement ("Letter Agreement") dated as of February 23, 2001, with Arglen
Acquisitions, LLC ("Arglen") regarding the operating agreement, ownership by
Registrant, Arglen and the Division management team, and other aspects of Now
Solutions, LLC ("Now Solutions"), a Delaware limited liability company
newly-formed by Arglen to purchase 100% of the assets of the iRenaissance CS(R)
Human Resources and Payroll product division ("Division") of Ross Systems, Inc.
("Seller"). Subsequently, on or about March 3, 2001, Arglen and the Registrant
entered into a Now Solutions, LLC Operating Agreement ("Operating Agreement").
Inasmuch as Arglen had initially negotiated the purchase of the Division by Now
Solutions from Seller and arranged financing of the purchase from Coast Business
Credit ("Coast"), a division of Southern Pacific Bank, the Letter Agreement
provides for the grant of Registrant's warrants to Arglen to purchase
Registrant's common stock as described below. The purchase of the Division from
the Seller by Now Solutions is described more fully in the Registrant's Current
Report on Form 8-K filed with the Commision and dated as of March 9, 2001.

Relevant provisions of the Letter Agreement that are reflected in the Now
Solutions, LLC Operating Agreement ("Operating Agreement") are summarized as
follows:
1.The Registrant shall provide $1,000,000 of equity capital (which capital shall
be returned to the Registrant by special distributions after the purchase loans
to Coast have been paid off) to Now Solutions in exchange for 60% initial
ownership; Arglen (including the 5% membership interest of Stephen B. Parnes)
and management of the Division shall have 35% and 5% initial ownership,
respectively; and, after three years, ownership of Now Solutions by the
Registrant, Arglen and management is expected to be 51%, 34% and 15%,
respectively.

2. In the event Now Solutions is in default of any of its loan agreements with
Coast, Registrant shall have the right to replace the independent representative
to the Executive Committee of Now Solutions.

3. Now Solutions shall, as soon as practicable, convert from a limited liability
company to a C-corporation, which C-corporation shall have a shareholder's
agreement identical to the Operating Agreement except where not legally
possible.

Relevant provisions of the Operating Agreement are summarized as follows:

1. The overall management and control of the business is vested in an Executive
Committee, which will initially be comprised of five (5) members, two (2) of
whom are appointed by Arglen and two (2) of whom are appointed by the
Registrant. The four members of the Executive Committee will then select the
final outside member of the Executive Committee.

2. No acts shall be taken, funds expended, decisions made or obligations
incurred by Now Solutions, its officers, the Executive Committee, or any member
with respect to a matter within the scope of any of the major decisions
enumerated below (the "Major Decisions"), unless and until the same has been
approved by Supermajority in Interest (defined as 75% of the outstanding
equity). The Major Decisions shall include:

(a) Acquire or develop any new business or line of business not related to the
Now Solutions business;

(b) Borrow any money from a member or accept or require capital contributions
from any member, other than loans or capital contributions permitted or
contemplated pursuant to the agreement above;

(c) Make any acquisition of or material investment in any Other Entity (defined
as any general partnership, limited partnership, corporation, joint venture,
trust, business trust, governmental agency, cooperative, association,
individual, business or other entity);

(d) Make any material and substantial change in the purposes of Now Solutions or
of its business;

(e) Make a determination to surrender any permits, approvals or licenses of Now
Solutions or to dissolve Now Solutions;

(f) Admit any general parnership, limited partnership, corporation, joint
venture, trust, business trust, governmental agency, cooperative, association,
individual, business or other entity (collectively referred toi as "Other
Entity") as a member.

(g) Sell, transfer, convey, exchange, lease, encumber, pledge, or otherwise
dispose of all or substantially all, or the assets of Now Solutions;

(h) Merge, consolidate or combine Now Solutions into or with any Other Entity;

(i) Guarantee by Now Solutions of, or the agreement of Now Solutions to be
responsible for, the indebtedness or obligations of any Other Entity;

(j) Make an expenditure or incur any obligation by or on behalf of Now Solutions
at any one time involving a sum in excess of One Hundred Thousand U.S. Dollars
(U.S. $100,000), including by any lease or installment contract where the total
amount of all future payments exceeds One Hundred Thousand U.S. Dollars (U.S.
$100,000), except for expenditures made and obligations incurred pursuant to and
specifically set forth in a budget previously approved by the Supermajority in
Interest;

(k) Institute any legal action or proceeding, except for routine collection and
other minor actions ordinary to Now Solutions business;
(l) Approve all other distributions to the members;

(m) Accelerate payment of any Now Solutions debt;

(n) Authorize any new borrowing by Now Solutions with the exception of trade
payables incurred in the normal course of the Now Solutions business;

(o) Any amendment of Now Solutions charter;

(p) Increase the number of members of the Board of Directors;

(q) Bankrupt Now Solutions;

(r) Compensation, benefits and employment agreements for officers;

(s) All exclusive contracts.

2. Arglen shall serve as a consultant to Now Solutions and be paid a $100,000
annual management fee for providing Now Solutions' Chairman (initially, Garry
Gyselen, who shall conduct or cause the Chief Executive Officer and President to
conduct the ordinary and usual business and affairs of Now Solutions) and, in
conjunction with the Chairman, for performing certain business affairs of Now
Solutions.

3. Registrant shall serve as a consultant to Now Solutions and be paid a not
less than $50,000 annual management fee for (i) supervising and overseeing
technical and application services for the Now Solutions business through
Registrant's Chief Technology Officer; (ii) supervising and overseeing all
financial services; and (iii), in conjunction with the Chairman, performing
certain business affairs of Now Solutions.

Relevant provisions of the Letter Agreement providing for the grant by
Registrant to Arglen of warrants to purchase Registrant's common stock are
summarized as follows:

1. Registrant will grant Arglen warrants to purchase common shares equal to 5%
of the outstanding shares of Registrant (on a fully diluted basis), with
anti-dilution protection. The exercise price of the warrants will be $0.08, and
exercisable for a period of 5 years from the date the underlying shares become
unrestricted as follows: (a) 1/3 of the warrants will be exercisable
immediately. Arglen agrees that it will not sell more than 150% of the average
daily volume in any given week. (b) 1/3 of the warrants will be exercisable
after year 1. (c) 1/3 of the warrants will be exercisable after year 2.

2. If during the last 90 trading day period in the first year, the per share
value of Registrant's shares, adjusted for any forward or reverse splits and any
other dilutive effect, is less than $0.50, then Registrant will issue Arglen an
additional 25,000,000 warrants to purchase common shares at an exercise price of
$0.08 exercisable for a period of five years from the date they become
unrestricted as follows: (a) 1/3 of the warrants will be exercisable
immediately. Arglen agrees that it will not sell more than 150% of the average
daily volume in any given week. (b) 1/3 of the warrants will be exercisable
after year two. (c) 1/3 of the warrants will be exercisable after year three.

3. If during the last 90 trading day period in the second year, the per share
value of Registrant, adjusted for any forward or reverse splits and any other
dilutive effect, is less than $1.00, then Registrant will issue Arglen an
additional 25,000,000 warrants to purchase common shares at an exercise price of
$0.08 exercisable for a period of five years from the date they become
unrestricted as follows: (a) 1/3 of the warrants will be exercisable
immediately. Arglen agrees that it will not sell more than 150% of the average
daily volume in any given week. (b) 1/3 of the warrants will be exercisable
after year three. (c) 1/3 of the warrants will be exercisable after year four.

The foregoing summaries of the terms of the Letter Agreement and the Operating
Agreement do not purport to be complete and are qualified in their entirety by
reference to the full texts of the Letter Agreement and the Now Solutions, LLC
Operating Agreement, copies of which are filed, respectively, as Exhibit 2.1 and
Exhibit 2.2 hereto, and incorporated herein by reference
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

      (a)   N/A

      (b)   N/A

      (c)   Exhibits.

            2.1   Letter Agreement dated as of February 23, 2001 between Arglen
                  Acquisitions, LLC and the Registrant.

            2.2   Now Solutions, LLC Operating Agreement dated as of February
                  27, 2001 between Arglen Acquisitions, LLC and the Registrant.

      THE REGISTRANT UNDERTAKES TO FURNISH SUPPLEMENTALLY TO THE COMMISSION UPON
REQUEST A COPY OF ANY EXHIBIT OR SCHEDULE TO THE OPERATING AGREEMENT.

                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                        VERTICAL COMPUTER SYSTEMS, INC.

                                        BY /s/ RICHARD WADE, PRESIDENT
                                        ----------------------------------------

DATE: May 7, 2001