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


                                   FORM 10-QSB


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


For the quarter ended June 30, 2000               Commission File Number 0-28555


                        DEERBROOK PUBLISHING GROUP, INC.


                  NEVADA                                        86-0960464
      -------------------------------                     ----------------------
      (State or Other Jurisdiction of                        (I.R.S. Employer
       Incorporation or Organization)                     Identification Number)


12919 S.W. Freeway, Suite 170, Safford, Texas                     77477
---------------------------------------------                   ----------
  (Address of Principal Executive Offices)                      (Zip Code)


                                  281-494-4734
              ----------------------------------------------------
              (Registrant's Telephone Number, Including Area Code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or, for such period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes [X] No [ ]

As of August 15, 2000, there were 9,490,547 shares of common stock outstanding.
<PAGE>
                   DEERBROOK PUBLISHING GROUP AND SUBSIDIARIES
                              Index to Form 10-QSB
                       For the Quarter Ended June 30, 2000


PART I.   FINANCIAL INFORMATION                                         PAGE NO.
                                                                        --------
Item 1.   Financial Statements

          Consolidated Balance Sheets
          June 30, 2000 (Unaudited) and September 30, 1999.....................3

          Consolidated Statements of Operations (Unaudited)
            for the Three and Nine Months ended June 30, 2000 and 1999.........4

          Consolidated Statements of Cash Flows (Unaudited)
            for the Three and Nine Months ended June 30, 2000 and 1999.........5

          Notes to Financial Statements........................................6

Item 2.   Management's Discussion and Analysis of
          Financial Condition and Results of Operations........................7

PART II.  OTHER INFORMATION....................................................8

          Signatures...........................................................9

                                        2
<PAGE>
PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

                DEERBROOK PUBLISHING GROUP, INC. AND SUBSIDIARIES
                                 BALANCE SHEETS

                                     ASSETS

<TABLE>
<CAPTION>
                                                                     June 30,     September 30,
                                                                       2000           1999
                                                                    -----------    -----------
                                                                    (Unaudited)
<S>                                                                 <C>            <C>
CURRENT ASSETS:
  Cash and cash equivalents .....................................   $     5,571    $    36,066
  Accounts receivable - trade, net ..............................            --         20,000
  Prepaid expenses and other current assets .....................        94,406        143,800
  Inventory .....................................................       149,239        160,239
                                                                    -----------    -----------
      TOTAL CURRENT ASSETS ......................................       249,216        360,105

Property and equipment, net .....................................       100,873        118,918
Goodwill ........................................................       113,442        458,318
Net assets of discontinued operations ...........................        44,880         58,267
                                                                    -----------    -----------

TOTAL ASSETS ....................................................   $   508,411    $   995,608
                                                                    ===========    ===========

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES:
  Notes payable to related parties ..............................   $    61,626    $    30,000
  Obligation under capital lease - current portion ..............       154,820         17,143
  Accounts payable ..............................................       458,149        243,504
  Accrued payroll ...............................................       322,500        149,899
  Other liabilities .............................................        68,682         53,465
                                                                    -----------    -----------
      TOTAL CURRENT LIABILITIES .................................     1,065,777        494,011

Obligation under capital lease - long-term portion ..............            --         95,507
                                                                    -----------    -----------

TOTAL LIABILITIES ...............................................     1,065,777        589,518
                                                                    -----------    -----------

COMMITMENTS: ....................................................            --             --

STOCKHOLDERS' EQUITY (DEFICIT):
  Preferred stock; $.001 par value (10,000,000 shares authorized)            --             --
  Common stock; $.001 par value (25,000,000 shares authorized) ..         9,490          9,968
  Additional paid in capital ....................................     2,878,337      2,028,935

  Common stock subscribed .......................................       100,000             --
  Warrants ......................................................       451,000             --
  Accumulated deficit ...........................................    (3,996,193)    (1,632,813)
                                                                    -----------    -----------

TOTAL STOCKHOLDERS' EQUITY (DEFICIT) ............................      (557,366)       406,090
                                                                    -----------    -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ......................   $   508,411    $   995,608
                                                                    ===========    ===========
</TABLE>

                                        3
<PAGE>
                DEERBROOK PUBLISHING GROUP, INC. AND SUBSIDIARIES
                            STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>
                                             Three Months Ended            Nine Months Ended
                                                  June 30,                      June 30,
                                         --------------------------    --------------------------
                                            2000           1999           2000           1999
                                         -----------    -----------    -----------    -----------
                                                (Unaudited)                   (Unaudited)
<S>                                      <C>            <C>            <C>            <C>
Revenues .............................   $        --    $    16,486    $     1,123    $    24,361

Cost of Revenues .....................            --          2,518          4,899          6,062
                                         -----------    -----------    -----------    -----------

Gross Profit (Loss) ..................            --         13,968         (3,776)        18,299

General and Administrative Expenses ..      (141,328)       (60,474)    (1,666,527)       (74,929)

Acquisition Costs ....................            --             --       (318,100)            --

Other Income .........................            --             --             --             --

Interest Expense .....................            --             --             --             --
                                         -----------    -----------    -----------    -----------
Loss from Continuing Operations before
  Income Taxes .......................      (141,328)       (46,506)    (1,988,403)       (56,630)

Income Taxes .........................            --             --             --             --
                                         -----------    -----------    -----------    -----------

Loss from Continuing Operations ......      (141,328)       (46,506)    (1,988,403)       (56,630)

Loss from Discontinued Operations ....            --             --       (374,977)            --
                                         -----------    -----------    -----------    -----------

Net Loss .............................   $  (141,328)   $   (46,506)   $(2,363,380)   $   (56,630)
                                         ===========    ===========    ===========    ===========
Basic Loss Per Share:
  Loss from Continuing Operations ....   $     (0.01)   $        --    $     (0.21)   $        --
  Loss from Discontinued Operations ..            --             --          (0.04)            --
                                         -----------    -----------    -----------    -----------
Net Loss .............................   $     (0.01)   $        --    $     (0.25)   $        --
                                         ===========    ===========    ===========    ===========

Weighted Average Shares Outstanding ..     9,465,548      5,367,712      9,276,404      4,535,474
                                         ===========    ===========    ===========    ===========
</TABLE>

                                        4
<PAGE>
                DEERBROOK PUBLISHING GROUP, INC. AND SUBSIDIARIES
                            STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>
                                                          Three Months Ended            Nine Months Ended
                                                               June 30,                      June 30,
                                                      --------------------------    --------------------------
                                                         2000           1999           2000           1999
                                                      -----------    -----------    -----------    -----------
                                                             (Unaudited)                   (Unaudited)
<S>                                                   <C>            <C>            <C>            <C>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS:
  CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Loss ........................................   $  (141,328)   $   (46,506)   $(2,363,380)   $   (56,630)
  Adjustments to reconcile net loss to net cash
    provided by operating activities:
    Depreciation and amortization .................        29,582             --         86,176             --
    Impairment of long-term asset .................            --             --        276,745             --
    Common stock issued for acquisition costs and
      services ....................................            --             --        848,924             --
    Net assets acquired in acquisition ............            --             --             --         (8,233)
    Change in net assets of discontinued operations            --             --         13,387             --
    Expenses paid by related party ................        31,626             --         31,626             --
  CHANGES IN ASSETS AND LIABILITIES:
    Accounts receivable ...........................            --             --             --             --
      - trade .....................................            --             --         20,000             --
      - related entity ............................            --        (48,466)            --        (39,922)
    Prepaid expenses and other current assets .....            --             --         49,394             --
    Inventory .....................................            --         (2,145)        11,000        (36,167)
    Deferred offering costs .......................            --             --             --             --
    Accounts payable ..............................         8,920             --        214,645         45,046
    Accrued payroll ...............................        43,374             --        172,601             --
    Other liabilities .............................       (42,168)           966         15,217            966
                                                      -----------    -----------    -----------    -----------

      NET CASH USED BY OPERATING ACTIVITIES .......       (69,994)       (96,151)      (623,665)       (94,940)
                                                      -----------    -----------    -----------    -----------
  CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of property and equipment ............            --         (3,610)            --         (3,610)
                                                      -----------    -----------    -----------    -----------

      NET CASH USED BY INVESTING ACTIVITIES .......            --         (3,610)            --         (3,610)
                                                      -----------    -----------    -----------    -----------
  CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from debt ............................            --             --         42,170             --
    Proceeds from issuance of stock and warrants ..            --        100,000        551,000        100,000
                                                      -----------    -----------    -----------    -----------
      NET CASH PROVIDED BY FINANCING
        ACTIVITIES ................................            --        100,000        593,170        100,000
                                                      -----------    -----------    -----------    -----------

Net change in cash and cash equivalents ...........       (69,994)           239        (30,495)         1,450
Cash and cash equivalents at beginning of period ..        75,565          1,211         36,066             --
                                                      -----------    -----------    -----------    -----------
Cash and cash equivalents at end of period ........   $     5,571    $     1,450    $     5,571    $     1,450
                                                      ===========    ===========    ===========    ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
    Interest paid .................................   $        --    $        --    $        --    $        --
                                                      ===========    ===========    ===========    ===========
    Taxes paid ....................................   $        --    $        --    $        --    $        --
                                                      ===========    ===========    ===========    ===========
NONCASH INVESTING AND FINANCING ACTIVITIES:
    Common stock issued for acquisition costs and
      services ....................................   $        --    $        --    $   848,924    $   173,340
                                                      ===========    ===========    ===========    ===========
    Payment of various expenses by a related entity   $    31,626    $        --    $    31,626    $        --
                                                      ===========    ===========    ===========    ===========
</TABLE>

                                        5
<PAGE>
                DEERBROOK PUBLISHING GROUP, INC. AND SUBSIDIARIES
                        NOTES TO THE FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

BASIS OF PRESENTATION:

The unaudited financial statements include only the accounts and transactions of
Deerbrook   Publishing   Group,   Inc.  (the  "Company")  and  its  wholly-owned
subsidiaries.

INTERIM FINANCIAL STATEMENTS:

The unaudited interim financial  statements include all adjustments  (consisting
of  normal  recurring  accruals),  which,  in the  opinion  of  management,  are
necessary in order to make the financial  statements not  misleading.  Operating
results  for the three and nine months  ended June 30, 2000 are not  necessarily
indicative  of the  results  that may be  expected  for the entire  year  ending
September 30, 2000. These financial  statements have been prepared in accordance
with the  instructions  to Form  10-QSB and do not contain  certain  information
required by generally accepted accounting principles. These statements should be
read in conjunction with the financial  statements and notes thereto included in
the Company's Form 10SB.

NOTE 2 - CAPITAL LEASE OBLIGATION:

During the  nine-month  period ended June 30, 2000,  the Company  defaulted on a
capital lease obligation.  Therefore,  all lease payments have been reflected as
current as of June 30, 2000.

                                        6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

RESULTS OF OPERATIONS

SALES REVENUE

Sales for the three-month  period ended June 30, 2000 (the "reporting  quarter")
were $0, a decrease of $16,486  from the three month  period ended June 30, 1999
(the "comparable  quarter").  Sales for the nine months ended June 30, 2000 (the
"reporting  period")  totaled  $1,123,  down  $23,238 from the nine month period
ended June 30, 1999 (the  "comparable  period").  These decreases were primarily
due to the closure of the  Company's  printing  and  publishing  facilities  and
management's  focus  on  efforts  to  raise  capital  to  finance  the  Internet
operations.

OPERATING EXPENSES

The Company's general and administrative  expenses increased from $60,474 in the
comparable quarter to $141,328 for the reporting quarter and from $74,929 in the
comparable period to $1,666,527 for the reporting period. The increases were due
primarily to website  development and  maintenance,  salaries,  and professional
fees.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2000, the Company's cash and cash equivalents  totaled $5,571. In
addition,  the  Company's  net  worth  and  working  capital  (deficit)  totaled
$(557,366) and $(816,561), respectively.

We currently do not have meaningful cash resources or cash flows from operations
to support our business.  The future success of our business  currently  depends
upon  our  ability  to  raise  additional  capital.  We  currently  are  seeking
additional  sources  of  financing,  which  may  include  one  or  more  private
placements of debt or equity  securities.  We can provide no assurance  that any
additional financing will be available on terms that are acceptable to us, if at
all. Our  inability to obtain such  financing  could result in our  inability to
continue as a going  concern.  If such  financing is not available in sufficient
amounts or on  satisfactory  terms, we also may be unable to expand our business
or to develop new customers at the rate  desired,  and the lack of capital could
have a material adverse effect on our business.

                                        7
<PAGE>
PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

     Not applicable.

ITEM 2. CHANGES IN SECURITIES

     Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

     Not applicable.

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

     Not applicable.

ITEM 5. OTHER INFORMATION

     Not applicable.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     (a)  EXHIBITS

          Exhibit 27.1: Financial Data Schedule

     (b)  REPORTS ON FORM 8-K

          Not applicable.

                                        8
<PAGE>
                                    SIGNATURE

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 thereunto authorized.


Date: August 15, 2000                   DEERBROOK PUBLISHING GROUP, INC.


                                        By: /s/ Mark L. Eaker
                                            ------------------------------------
                                            Mark L. Eaker, President and Chief
                                            Executive Officer

                                        9