**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

Form 10-KSB

(Mark One)

X__Annual report under section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal
year ended February 28, 2002.

___Transition report under section 13 or 15(d) of the Securities Exchange Act of 1934 for the
transition period from ______ to ______.

**SUNBURST ACQUISITIONS IV, INC.******

(Exact name of registrant as specified in its charter)

|Colorado                                       | 0-23561                  | 84-1431797                          
|---------------------------------------------- | ------------------------ | ------------------------------------
|(State or other jurisdiction of
incorporation) | (Commission File
Number) | (IRS Employer Identification
Number)

|2082 Cherry Street

Denver, Colorado     | 80207     
|---------------------------------------- | ----------
|(Address of principal executive offices) | (Zip Code)

Registrant's telephone number, including area code:  (303) 321-0461

Securities to be registered under Section 12(b) of the Act:

Title of each class

N/A

Securities to be registered under Section 12(g) of the Act:





Check whether the issuer (1) filed all reports required to be filed by  Section 13 or 15(d) of the
Securities 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. Yes  X   No ____

Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B
contained in this form, and no disclosure will be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by reference in Part III of this Form
10-KSB or any amendment to this Form 10-KSB.___

State issuer's revenue for its most recent fiscal year: $ 0.

State the aggregate market value of the voting stock held by non-affiliates computed by reference
to the price at which the stock was sold, or the average bid and asked priced of such stock, as of a
specified date within the past 60 days (See definition of affiliate in Rule 12b-2): $3,322,500 as of
May 16, 2002.

Note: If determining whether a person is an affiliate will involve an unreasonable effort and
expense, the issuer may calculate the aggregate market value of the common equity held by
non-affiliates on the basis of reasonable assumptions, if the assumptions are stated.

(Issuers involved in bankruptcy proceedings during the past five years):

Check whether the issuer has filed all documents and reports required to be filed by Section 12,
13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a
court. Yes ____ No ____

(Applicable only to corporate registrants) State the number of shares outstanding of each of the
issuer's classes of common equity, as of the latest practicable date:33,112,499as of May 16,
2002.

(Documents incorporated by reference. If the following documents are incorporated by reference,
briefly describe them and identify the part of the Form 10-KSB (e.g. Part I, Part II, etc.) into
which the document is incorporated: (1) any annual report to security holders; (2) any proxy or
information statement; and (3) any prospectus filed pursuant to Rule 424(b) or (c) of the
Securities Act of 1933 ("Securities Act").  The listed documents should be clearly described for
identification purposes.

PART I

ITEM 1.   DESCRIPTION OF BUSINESS.

**Background**

The Company was incorporated under the laws of the State of Colorado on August 27,
1997.  It was formed to seek out and acquire business opportunities.  In accordance with its
business plan, the Company has engaged in two separate acquisition transactions which are
described below.  However, neither of these transactions has resulted in the acquisition of a
viable operating business.  As a result, as of the end of its fiscal year ending February 28, 2002,
the Company remains in the development stage and is continuing to seek out business acquisition
candidates.

There is no assurance as to when or whether the Company will find another business
opportunity it may elect to pursue.The Company will continue to search for enterprises  which
have a desire to become a public corporation and which have a business plan designed to allow
them to take advantage of opportunities available to public entities.  This includes entities which
have been recently organized, with no operating history, or a history of losses attributable to
under-capitalization or other factors, entities in need of funds to develop a new product or service
or to expand into a new market, entities which desire to use their securities to make acquisitions,
and entities which have a combination of these characteristics.



In searching for investment opportunities, the Company will not be restricted to any
particular geographical area or industry.  Therefore, subject to economic conditions, limitations
on its ability to locate available business opportunities, and other factors, the Company has
substantial discretion in selecting an appropriate business opportunity, and will continue to have
such discretion in the future.



In connection with any acquisition, it is highly likely that an amount of stock constituting
control of the Company would be issued by the Company or purchased from the Company's
current principal shareholders by the target entity or its controlling shareholders.

**Prologic Systems, Inc.**

In August 1999,  the Company invested $1,000,000 in Prologic Systems, Inc., an Arizona
corporation engaged in the business of providing systems integration services, networking
services, software development and applications software for the commercial market.  The
investment in Prologic was made in anticipation of a business combination with that company
and as part of that transaction, the Company acquired 3,459,972 shares of Prologic.  However,
the agreement to complete a business combination with Prologic was terminated prior to its
consummation, and in March, 2000, the Company charged off its investment to operations.

In January, 2001, the Company entered into an agreement with Prologic to recover a
portion of its investment.  Pursuant to that agreement, on February 16, 2001, the Company
completed the sale of 2,859,972 shares of stock in Prologic to Prologic, or its designees, for a
total sales price of $400,000.  The sales price was paid $325,000 in cash at closing and $75,000
through Prologic's execution of a promissory note.  The promissory note bears interest at the rate
of 10% per annum and requires payments of $25,000 principal, plus accrued interest, on each of
April 12, 2001, July 12, 2001 and October 12, 2001.  Thus far, no payments have been received
by the Company.

The Company retained ownership of a total of 600,000 shares of Prologic, which it has
subsequently sold.  See "Plan of Operations" below.  Such shares were "restricted securities" as
defined in Rule 144 under the Securities Act of 1933.  The terms of the agreement with Prologic
required them to file a registration statement in order to register the Company's shares for resale.
This registration statement was not filed, and the shares were sold in accordance with the
provisions of Rule 144(k).

**HollywoodBroadcasting.com**

On December 4, 2000, the Company completed the closing under an Agreement for Share
Exchange between it and HollywoodBroadcasting.com, Inc., a Nevada corporation ("HB.C").  As
a result of that closing, HB.C became a wholly-owned subsidiary of the Company.

HB.C is a development stage company formed for the purpose of developing and
producing original entertainment and information programming for various media including
domestic and foreign broadcast, cable and satellite television, home video, DVD sales and rentals
and the Internet.  The primary focus of HB.C was intended to bedevelopment and production (or
acquisition) of original entertainment and information programs for webcasting over the Internet
from its HollywoodBroadcasting.com website.

HB.C and other content providers relied upon the availability of the specified revenue
streams as the platform for their business model.  The Company was not able to generate
significant revenues from any of the sources it relied upon in establishing its business model, and
it is now apparent that the model was based on false assumptions.On September 28, 2001, the
Company completed the sale of its wholly owned subsidiary Hollywoodbroadcasting.com for
$1,000 in cash.  The Company has begun the process of seeking out potential opportunities in
other unrelated areas of business.



**Investigation and Selection of Business Opportunities**



The analysis of business opportunities is expected to be undertaken by or under the
supervision of the Company's executive officers and directors.  Although there are no current
plans to do so, Company management might hire an outside consultant to assist in the
investigation and selection of business opportunities, and in that event, might pay a finder's fee.
Since Company management has no current plans to use any outside consultants or advisors to
assist in the investigation and selection of business opportunities, no policies have been adopted
regarding use of such consultants or advisors, the criteria to be used in selecting such consultants
or advisors, the services to be provided, the term of service, or regarding the total amount of fees
that may be paid.  However, because of the limited resources of the Company, it is likely that any
such fee the Company agrees to pay would be paid in stock and not in cash.



To the extent that the analysis and evaluation of business opportunities is undertaken by
Company management, it is anticipated that among other things, the following factors will be
considered:



(a) Potential for growth and profitability, indicated by new technology, anticipated market
expansion, or new products;



(b) Competitive position as compared to other companies of similar size and experience
within the industry segment as well as within the industry as a whole;



(c) Strength and diversity of existing management, or management prospects that are
scheduled for recruitment;



(d) Capital requirements and anticipated availability of required funds, to be provided
from operations, through the sale of additional securities, through joint ventures or similar
arrangements, or from other sources;



(e) The cost of participation by the Company as compared to the perceived tangible and
intangible values and potential;



(f) The extent to which the business opportunity can be advanced;



(g) The Company's perception of how any particular business opportunity will be
received by the investment community and by the Company's stockholders;



(h) The accessibility of required management expertise,  personnel, raw materials,
services, professional assistance, and other required items; and



(i) Whether the financial condition of the business opportunity would be, or would have a
significant prospect in the foreseeable future to become, such as to permit the securities of the
Company, following the business combination, to qualify to be listed on an exchange or on a
national automated securities quotation system, such as NASDAQ, so as to permit the trading of
such securities to be exempt from the requirements of Rule 15c2-6 recently adopted by the
Securities and Exchange Commission.  See "Risk Factors - The Company - Regulation of Penny
Stocks."



In regard to the last criterion listed above, the current standards for NASDAQ listing
include, among other things, the requirements that the issuer of the securities that are sought to
be listed have stockholders' equity of at least $5,000,000, or a market capitalization of at least
$50,000,000, or net income in its latest fiscal year of not less than $750,000.  Many, and perhaps
most, of the business opportunities that might be potential candidates for a combination with the
Company would not satisfy the NASDAQ listing criteria.  To the extent that the Company seeks
potential NASDAQ listing, therefore, the range of business opportunities that are available for
evaluation and potential acquisition by the Company would be significantly limited.



In applying the criteria listed above, no one of which will be controlling, management
will attempt to analyze all factors appropriate  to the opportunity and make a determination based
upon reasonable  investigative measures and available data.  Potentially available  business
opportunities may occur in many different industries and at various stages of development, all of
which will make the task of comparative investigation and analysis of such business
opportunities extremely difficult and complex.  Potential investors must recognize that, because
of the Company's limited capital available for investigation and management's limited experience
in business analysis, the Company may not discover or adequately evaluate adverse facts about
the opportunity to be acquired.



Prior to making a decision to participate in a business opportunity, the Company will
generally request that it be provided with written materials regarding the business opportunity
containing such items as a description of products, services and company history;  management
resumes; financial information; available projections, with related assumptions upon which they
are based; an explanation of  proprietary products and services; evidence of existing patents,
trademarks, or services marks, or rights thereto; present and proposed  forms of compensation to
management; a description of transactions  between such company and its affiliates during
relevant periods; a description of present and required facilities; an analysis of risks and

competitive conditions; a financial plan of operation and estimated capital requirements; audited
financial statements or an indication that  audited statements will be available within sixty (60)
days following   completion of a merger transaction; and other information deemed relevant.



As part of the Company's investigation, the Company's executive officers and directors
may meet personally with management and key personnel, may visit and inspect material
facilities, obtain independent analysis or verification of certain information provided, check
references of management and key personnel, and take other reasonable investigative measures,
to the extent of the Company's limited financial resources and management expertise.



Company management believes that various types of potential merger or acquisition
candidates might find a business combination  with the Company to be attractive.  These include
acquisition candidates desiring to create a public market for their shares in order to enhance
liquidity for current shareholders, acquisition candidates which have long-term plans for raising
equity capital through the public sale of securities and believe that the possible prior existence of
a public market for their securities would be beneficial, and acquisition candidates which plan to
acquire additional assets through issuance of securities rather than for cash, and believe that the
possibility of development of a public market for their securities will be assistance in that
process.  Acquisition candidates which have a need for an immediate substantial cash infusion
are not likely to find a potential business combination with the Company to be an attractive
alternative unless they are able to negotiate separate arrangements with third parties to raise
capital in conjunction with the business combination transaction.



It is emphasized that management of the Company may effect transactions having a
potentially adverse impact upon the Company's shareholders pursuant to the authority and
discretion of the Company's management to complete acquisitions without submitting any
proposal to the stockholders for their consideration.  Company management does not generally
anticipate that it will provide holders of the Company's securities with financial statements, or
any other documentation, concerning a target company or its business prior to any merger or
acquisition.  In some instances, however, the proposed participation in a business opportunity
may be submitted to the stockholders for their consideration, either voluntarily by Company
management which elects to seek the stockholders' advice and consent, or because state law so
requires.



**Form of Acquisition**



It is impossible to predict the manner in which the Company may participate in a business
opportunity.  Specific business opportunities will be reviewed as well as the respective needs and
desires of the Company and the promoters of the opportunity and, upon the basis of that review
and the relative negotiating strength of the Company and such promoters, the legal structure or
method deemed by management to be suitable will be selected. Implementing such structure may
require the merger, consolidation or reorganization of the Company with other corporations or
forms of business organization.  In addition, the present management and stockholders of the
Company most likely will not have control of a majority of the voting shares of the Company
following a reorganization transaction.  As part of such a transaction, the Company's directors
may resign and new directors may be appointed without any vote by stockholders.



It is likely that the Company will acquire its participation in a business opportunity
through the issuance of Common Stock or other securities of the Company.  Although the terms
of any such transaction cannot be predicted, it should be noted that in certain circumstances the
criteria for determining whether or not an acquisition is a so-called "tax free" reorganization
under the Internal Revenue Code of 1986, depends upon the issuance to the stockholders of the
acquired company of up to 80% of the common stock of the combined entities immediately
following the reorganization.  If a transaction were structured to take advantage of these
provisions rather than other "tax free" provisions provided under the Internal Revenue Code, the
Company's stockholders in such circumstances would retain in the aggregate 20% or less of the
total issued and outstanding shares.  This could result in substantial additional dilution in the
equity of those who were stockholders of the Company prior to such reorganization.  Any such
issuance of additional shares might also be done simultaneously with a  sale or transfer of shares
representing a controlling interest in the  Company by the current officers, directors and principal
shareholders.



It is anticipated that any securities issued in any reorganization would be issued in
reliance upon exemptions, if any are available, from registration under applicable federal and
state securities laws.  In some circumstances, however, as a negotiated element of the transaction,
the Company may agree to register such securities either at the time the transaction is
consummated, or under certain conditions or at specified times thereafter.  The issuance of
substantial additional securities and their potential sale into any trading market that might
develop in the Company's securities may have a depressive effect upon such market.



The Company will participate in a business opportunity only  after the negotiation and
execution of a written agreement.  Although  the terms of such agreement cannot be predicted,
generally such an agreement would require specific representations and warranties by all  of the
parties thereto, specify certain events of default, detail the terms of closing and the conditions
which must be satisfied by each of the parties thereto prior to such closing, outline the manner of
bearing  costs if the transaction is not closed, set forth remedies upon default,   and include
miscellaneous other terms.



As a general matter, the Company anticipates that it will enter into a letter of intent with
the management, principals or owners of a  prospective business opportunity prior to signing a
binding agreement.  Such a letter of intent will set forth the terms of the proposed acquisition but
will not bind either the Company or the business opportunity to consummate the transaction.
Execution of a letter of  intent will by no means indicate that consummation of an acquisition is
probable.  Neither the Company nor the business opportunity will be bound to consummate the
acquisition unless and until a definitive  agreement concerning the acquisition as described in the
preceding paragraph is executed.  Even after a definitive agreement is executed, it is possible that
the acquisition would not be consummated should either party elect to exercise any right
provided in the agreement to terminate it on specified grounds.

**Competition**



The Company expects to encounter substantial competition in its efforts to locate
attractive acquisition candidates, primarily from business development companies, venture
capital partnerships and corporations, venture capital affiliates of large industrial and financial
companies, small investment companies, and wealthy individuals. Many of these entities will
have significantly greater experience, resources and managerial capabilities than the Company
and will therefore be in a better position than the Company to obtain access to  attractive business
opportunities. The Company also will experience competition from other public "blind pool"
companies, many of which may have more funds available than does the Company.

**Administrative Offices**

****

The Company currently maintains a mailing address at 2082 Cherry Street

Denver, Colorado 80207.  Its telephone number at that address is  (303) 321-0461.  The
Company pays no rent or other fees for the use of this mailing address.

**Employees**



The Company is a development stage company and currently has no employees.
Management of the Company expects to use consultants, attorneys and accountants as necessary,
and does not anticipate a need to engage any full-time employees so long as it is seeking and
evaluating business opportunities.  The need for employees and their availability will be
addressed in connection with the decision whether or not to acquire or participate in specific
business opportunities.  No remuneration will be paid to the Company's officers except as set
forth under "Executive Compensation" and under "Certain Relationships and Related
Transactions."

**Distribution Agreement**

On February 27, 2002, the Company signed a Distribution Agreement with1357784
Ontario, Ltd. ("EPI")of Toronto, Ontario, Canada pursuant to which the Company was
appointed as the exclusive worldwide distributor to the hydroponics industry of a digital
electronic lighting ballast for HID and sodium lights.  The ballasts are to be manufactured by
Romlight International, Inc., which has offices in Christ Church Barbados, West Indies.

The ballast to be manufactured by Romlight International, Inc. is a new product which
has been researched and developed over the last 4 years. The Company believes it offers many
advantages over existing ballasts because it is smaller, dimmable and easy to install, and because
it offers significant energy savings.

Subsequent to the end of the fiscal year the Company advanced a deposit in the amount of
$50,000 CAD (approximately $32,100 US) which will be applied toward the purchase of the first
25,000 units by the Company.  The initial purchase price per unit is $150 CAD.

CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.  Except for historical
matters, the matters discussed in this Form 10-KSB are forward-looking statements based on
current expectations, and involve risks and uncertainties.  Forward-looking statements include,
but are not limited to, statements under the following headings:

(i) "Description of Business - General" - the general description of the Company's plan to
seek a merger or acquisition candidate, and the types of business opportunities that may be
pursued.



(ii) "Description of Business - Investigation and Selection of  Business Opportunities" -
the steps which may be taken to investigate prospective business opportunities, and the factors
which may be used  in selecting a business opportunity.



(iii) "Description of Business - Form of Acquisition" - the manner in which the Company
may participate in a business acquisition.



The Company wishes to caution the reader that there are many uncertainties and unknown
factors which could affect its ability to carry out its business plan in the manner described herein.



ITEM 2.	DESCRIPTION OF PROPERTY.

****The Company currently maintains a mailing address at 2082 Cherry Street, Denver,
Colorado.  The Company pays no rent for use of this mailing address, and does not anticipate the
need for maintaining a separate office until it has completed a business combination transaction.



The Company currently has no investments in real estate, real estate mortgages, or real
estate securities, and does not anticipate making any such investments in the future.  However,
the policy of the Company with respect to investment in real estate assets could be  changed in
the future without a vote of security holders.

ITEM 3.	LEGAL PROCEEDINGS.

The Company is not a party to any pending legal proceedings, and, as of the end of its
fiscal year ending February 28, 2002,  no such proceedings are known to be contemplated.  No
director, officer or affiliate of the Company, and no owner  of record or beneficial owner of more
than 5.0% of the securities of the Company, or any associate of any such director, officer or
security holder is a party adverse to the Company or has a material interest adverse to the
Company in reference to pending litigation.

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

An Annual Meeting of the Shareholders was held on December 10, 2001.  The
shareholders were asked to vote on the election of the Board of Directors to amend  the
Company's Articles of Incorporation to increase the authorized Common Stock from
100,000,000 to 200,000,000 shares, to ratify the appointment of the Company's auditors, and to
vote to approve the Stock Option Plan approved by the Board of Directors and recommended for
adoption.  All matters were voted for.

PART II

ITEM 5.	MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS.

The Company's common stock is currently traded on the Over the Counter, Bulletin
Board under the symbol "SBAQ." The following  table sets forth the Company's high and low
closing prices for the Company's common stock as reported on the Bulletin Board for the
periods indicated.

|Fiscal Year 2001 | High  | Low   
|---------------- | ----- | ------
|First Quarter    | $0.15 | $0.04 
|Second Quarter   | $0.11 | $0.04 
|Third Quarter    | $0.09 | $0.035
|Fourth Quarter   | $0.12 | $0.035
|                 |       |       
|Fiscal Year 2002 | High  | Low   
|First Quarter    | $0.32 | $0.06 
|Second Quarter   | $0.29 | $0.17 

The closing bid price of the Company's common stock as  reported on the Over the
Counter, Bulletin Board on May 15, 2002, was $0.18 per share.  The prices presented are bid
prices which represent prices between broker-dealers and don't include retail mark-ups and
mark-downs or any commission to the dealer.  The  prices may not reflect actual transactions.



As of May 1, 2002, there were approximately 172 stockholders of record of the
Company's common stock.



There have been no cash dividends declared or paid on the shares of common stock, and
management does not anticipate payment  of dividends in the foreseeable future.



ITEM 6.	MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION.

SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this report, including statements in the following discussion which are not
statements of historical fact, are what are known as "forward looking statements, " which are
basically statements about the future.  For that reason, these statements involve risk and
uncertainty since no one can accurately predict the future.  Words such as "plans," "intends,"
"will," "hopes," "seeks," "anticipates," "expects  "and the like often identify such forward
looking statements, but are not the only indication that a statement is a forward looking
statement.  Such forward looking statements include statements concerning our plans and
objectives with respect to the present and future operations of the Company, and statements
which express or imply that such present and future operations will or may produce revenues,
income or profits.  Numerous factors and future events could cause the Company to change such
plans and objectives or fail to successfully implement such plans or achieve such objectives, or
cause such present and future operations to fail to produce revenues, income or profits.
Therefore, the  reader is advised that the following discussion should be considered in light of the
discussion of risks and other factors contained in this report on Form 10KSB and in the
Company's other filings with the Securities and Exchange Commission.  No statements
contained in the following discussion should be construed as a guarantee or assurance of future
performance or future results.

Liquidity and Capital Resources

The Company remains in the development stage.  Since inception it has undergone two
unsuccessful business combinations which have caused it to incur significant liabilities and have
resulted in the accumulation of a substantial deficit during the development stage.  As of
February 28, 2002, the Company has current assets of $83,231 and current liabilities of $117,478resulting in a current ratio of 0.71.

The Company does not currently have the funds necessary to enable it to carry out its
business plan.  It will need to raise additional capital to pay expenses associated with compliance
with its reporting obligations under the Securities Exchange Act of 1934 and to fund its planned
efforts related to investigating the potential acquisition of or combination with an operating entity
for which the Company's status as a reporting company under the Securities Exchange Act of
1934 is deemed valuable.



Plan of Operations



The Company's plan of operations is to reduce its operating expenses to the lowest
amount necessary to enable it to continue to comply with its reporting obligations under the
Securities Exchange Act of 1934, and to engage in activities associated with locating and
evaluating acquisition candidates.  In the event the Company is able to locate a suitable
acquisition candidate it plans to proceed with the acquisition as quickly as reasonably possible.

Unless and until a business combination is completed with an acquisition candidate, the
Company does not expect to generate revenues.  In fact, the Company may also continue to
operate at a loss even after completing a business combination, depending upon the performance
of the acquired business.  Therefore, the Company anticipates that it will continue to incur losses
for the current fiscal year.

As a result of the anticipated losses for the fiscal year, the Company will require
additional capital in order to meet its cash needs including the costs of compliance with the
continuing reporting requirements of the Securities Exchange Act of 1934, as amended.



The Company anticipates that some portion of the funds it will require for payment of on-going expenses may come from payments due under the promissory note it received from
Prologic in conjunction with sale of Prologic shares.  On February 16, 2001, the Company
completed the sale of 2,859,972 shares of stock in Prologic Management Systems, Inc., an
Arizona corporation ("Prologic"), to Prologic, or its designees, for a total sales price of $400,000,
or approximately $0.1399 per share.  The sale was completed pursuant to the terms of a
Settlement Agreement and Release, dated January 26, 2001.

The sales price was paid $325,000 in cash at closing and $75,000 through Prologic's
execution of a promissory note.  The promissory note bears interest at the rate of 10% per annum
and requires payments of $25,000 each on both the principal and interest, as of April 12, 2001,
July 12, 2001, and October 12, 2001.  No payments have been made to date.

Subsequent to the end of the fiscal year, the Company netted $69,892.63 from the first
quarter sale of all of its remaining 600,000 shares in Prologic.

On February 27, 2002, the Company signed an agreement with EPI, Ltd. of Toronto,
Ontario, Canada, under which the Company will become the sole distributor worldwide to the
Hydroponics Industry of a digital electronic lighting ballast for HID and sodium lights.
Subsequent to the end of the fiscal year, a $50,000 deposit was advanced for the first order of
25,000 units by the Company.  Sunburst has incorporated a wholly-owned subsidiary, Sunburst
Digital, Inc. to be the operating entity in Canada.

Other than the potential for, and actual sources of, funds described above, no specific
commitments to provide additional funds have been  made by management or other stockholders,
and the Company has no current plans, proposals, arrangements or understandings with respect
to the sale or issuance of additional securities prior to the location of a merger or acquisition
candidate.  Accordingly, there can be no assurance that any additional funds will be available to
the Company to allow it to cover its expenses.

ITEM  7.	FINANCIAL STATEMENTS AND EXHIBITS

Index to Financial Statements - February 28, 2002

Report of Independent Accountants

Balance Sheet

Statements of Operations

Statements of Cash Flows

Statement of Stockholders' Deficit

Notes to Financial Statements

**REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS**

The Board of Directors and Stockholders of

Sunburst Acquisitions IV, Inc.

We have audited the accompanying balance sheet of Sunburst Acquisitions IV, Inc. (a
development stage company) as of February 28, 2002, and the related statements of operations,
stockholders' equity, and cash flows for the year ended February 28, 2002, for the year ended
February 28, 2001 and for the period from August 27, 1997 (inception) through February 28,
2002.  These financial statements are the responsibility of the Company's management.  Our
responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United
States of America.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements.  An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Sunburst Acquisitions IV, Inc. as of February 28, 2002, and the results of
its operations and cash flows for the year ended February 28, 2002, for the year ended February
28, 2001 and for the period from inception (August 27, 1997) to February 28, 2002 in conformity
with accounting principles generally accepted in the United States.

The accompanying financial statements have been prepared assuming that the Company will
continue as a going concern.  As discussed in Note 6 to the financial statements, the Company
has sustained operating losses since its inception and has deficits in working capital and equity
which raises substantial doubt about its ability to continue as a going concern.  Management's
plans in regard to these matters are described in Note 6.  The financial statements do not include
any adjustments related to the recoverability and classification of asset carrying amounts or the
amount and classification of liabilities that might result should the Company be unable to
continue as a going concern.

|Denver, Colorado

March 19, 2002 | Comiskey & Co.

**PROFESSIONAL CORPORATION**                                               
|-------------------------------- | -------------------------------------------------------------------------------------------
|                                 | Certified Public Accountants & Consultants

789 Sherman Street, Suite 440, Denver, CO 80203

******Sunburst Acquisitions IV, Inc.**

**(a Development Stage Company)**

**BALANCE SHEET**

**February 28, 2002**

|                                | **ASSETS**                                            |                                                      |             |                   
|------------------------------- | ----------------------------------------------------- | ---------------------------------------------------- | ----------- | ------------------
|                                |                                                       |                                                      |             |                   
|CURRENT ASSETS**                |                                                       |                                                      |            
|                                | **************Cash and cash equivalents               |                                                      |             | $              460
|                                | Notes receivable****                                  | ****                                                 |             | 75,000            
|                                | Other current assets****                              | ****                                                 |             | 7,771             
|                                |                                                       |                                                      |             |                   
|                                |                                                       | Total current assets                                 | ****        |                   
|                                |                                                       |                                                      |             |                   
|                                |                                                       | ****************TOTAL ASSETS                         | ****        |                   
|                                |                                                       |                                                      |             |                   
|                                | ****************LIABILITIES AND
STOCKHOLDERS' DEFICIT | ****                                                 |             |                   
|                                |                                                       |                                                      |             |                   
|********CURRENT LIABILITIES     | ****                                                  |                                                      |            
|                                | Accounts payable                                      |                                                      |             | $           8,514 
|                                | Accrued interest                                      |                                                      |             | 8,964             
|                                | Notes payable - related parties                       |                                                      |             | 100,000           
|                                |                                                       |                                                      |             |                   
|                                |                                                       | ********Total current liabilities                    | ****        |                   
|                                |                                                       |                                                      |             |                   
|********STOCKHOLDERS' DEFICIT** |                                                       |                                                      |            
|                                | Preferred stock, no par value; 20,000,000 shares      |                                                      |            
|                                |                                                       | authorized; no shares issued and outstanding         |             | -                 
|                                | Common stock, no par value; 200,000,000 shares        |                                                      |            
|                                |                                                       | authorized; 32,112,499 shares issued and outstanding |             | 1,411,417         
|                                | Deficit accumulated during the development stage      |                                                      | (1,445,664)
|                                |                                                       |                                                      |             |                   
|                                |                                                       |                                                      |             |                   
|                                |                                                       |                                                      |             |                   
|                                |                                                       | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT          |             | $         83,231  

The accompanying notes are an integral part of the financial statements.

**Sunburst Acquisitions IV, Inc.**

**(a Development Stage Company)**

**STATEMENTS OF OPERATIONS**

|                                         |                                                           |                                                 | **For the period**          | ****                   |            
|---------------------------------------- | --------------------------------------------------------- | ----------------------------------------------- | --------------------------- | ---------------------- | -----------
|                                         |                                                           |                                                 | **********from inception**  | ****                   |            
|                                         |                                                           |                                                 | **(August 27, 1997)**       | **For the year**      
|****                                     |                                                           |                                                 | **to February 28,**         | **ended February 28,**
|****                                     |                                                           |                                                 | **2002**                    | **2002**               | **2001**   
|****                                     |                                                           |                                                 |                             |                        |            
|**************REVENUES**                 | $                  208,235                                | $                       -                       | $                     -    
|                                         |                                                           |                                                 |                             |                        |            
|**EXPENSES**                             |                                                           |                                                 |                            
|                                         | ********Selling, general and administrative               | 798,786                                         | 70,770                      | -                     
|                                         |                                                           |                                                 |                             |                        |            
|                                         |                                                           | ********Total expenses                          | 798,786                     | 70,770                 | -          
|                                         |                                                           |                                                 |                             |                        |            
|**NET OPERATING LOSS**                   | (590,551)                                                 | (70,770)                                        | -                          
|                                         |                                                           |                                                 |                             |                        |            
|**OTHER INCOME AND EXPENSE**             |                                                           |                                                 |                            
|                                         | Interest expense                                          | (33,892)                                        | (6,090)                     | -                     
|                                         | Gain on sale of securities                                | 400,000                                         | -                           | -                     
|                                         |                                                           |                                                 |                             |                        |            
|**NET LOSS FROM**                        |                                                           |                                                 |                            
|**CONTINUING OPERATIONS**                | (224,443)                                                 | (76,860)                                        | -                          
|                                         |                                                           |                                                 |                             |                        |            
|**********DISCONTINUED OPERATIONS:**     |                                                           |                                                 |                            
|                                         | ********Loss from operations of Hollywoodbroadcasting.com |                                                 |                             |                       
|                                         |                                                           | ********disposed of (net of income taxes of $0) | (2,066,371)                 | (46,940)               | (2,012,364)
|                                         | ********Gain on disposition of discontinued operations    |                                                 |                             |                       
|                                         |                                                           | ********(net of income taxes of $0)             | 845,150                     | 845,150                | -          
|                                         |                                                           |                                                 |                             |                        |            
|                                         |                                                           |                                                 | ****************(1,221,221) | 798,210                | (2,012,364)
|                                         |                                                           |                                                 |                             |                        |            
|**********NET INCOME (LOSS)**            | (1,445,664)                                               | 721,350                                         | (2,012,364)                
|                                         |                                                           |                                                 |                             |                        |            
|Accumulated deficit                      |                                                           |                                                 |                            
|                                         | Balance, beginning of period                              | -                                               | (2,167,014)                 | (154,650)             
|                                         |                                                           |                                                 |                             |                        |            
|                                         | Balance, end of period                                    | $            (1,445,664)                        | $       (1,445,664)         | $     (2,167,014)     
|                                         |                                                           |                                                 |                             |                        |            
|**NET INCOME (LOSS) PER SHARE**          |                                                           |                                                 |                            
|                                         | Loss from continuing operations                           | $                    (0.01)                     | $                   -       | $                    -
|                                         | ********Loss from discontinued operations                 | (0.06)                                          | -                           | (0.06)                
|                                         | ********Gain on disposal of discontinued operations       | 0.03                                            | 0.03                        | -                     
|                                         | ********Net income (loss)                                 | $                     (0.04)                    | $                 0.02      | $             (0.06)  
|                                         |                                                           |                                                 |                             |                        |            
|**WEIGHTED AVERAGE NUMBER OF SHARES OF** |                                                           |                                                 |                            
|                                         | ******COMMON STOCK AND COMMON STOCK**                     | ****                                            |                             |                       
|****                                     | **EQUIVALENTS OUTSTANDING**                               | ****               33,174,578                   | 32,183,073                  | 32,206,172            
|                                         |                                                           |                                                 |                             |                        |            

The accompanying notes are an integral part of the financial statements.

**Sunburst Acquisitions IV, Inc**

**(a Development Stage Company)**

**STATEMENTS OF CASH FLOWS**

|                                         |                                                      |                                         |                                          | **For the period**            | ****                   |            
|---------------------------------------- | ---------------------------------------------------- | --------------------------------------- | ---------------------------------------- | ----------------------------- | ---------------------- | -----------
|                                         |                                                      |                                         |                                          | ******from inception**        | ****                   |            
|                                         |                                                      |                                         |                                          | **********(August 27,
1997)** | **For the year**      
|****                                     |                                                      |                                         |                                          | **to February 28,**           | **ended February 28,**
|****                                     |                                                      |                                         |                                          | **2002**                      | **2002**               | **2001**   
|**CASH FLOWS FROM OPERATING ACTIVITIES** |                                                      |                                         |                                         
|Net gain (loss)                          | $        (1,445,664)                                 | $        721,350                        | $    (2,012,364)                        
|Adjustments to reconcile                 |                                                      |                                         |                                         
|                                         | net gain (loss) to net cash flows                    |                                         |                                          |                              
|                                         | from operating activities:                           |                                         |                                          |                              
|                                         |                                                      | Gain on sale of securities              | (400,000)                                | -                             | -                     
|                                         |                                                      | Depreciation                            | 52,332                                   | 17,449                        | 32,801                
|                                         |                                                      | ******** Discontinued operations        | (846,150)                                | (846,150)                     | -                     
|                                         |                                                      | Increase in inventory                   | (57,705)                                 | -                             | (57,705)              
|                                         |                                                      | Increase in other assets                | (483,028)                                | (386)                         | (478,265)             
|                                         |                                                      | Decrease in prepaid expense             | -                                        | -                             | 90,077                
|                                         |                                                      | Increase in deferred revenue            | -                                        | -                             | 20,000                
|                                         |                                                      | Increase in accounts receivable         | (8,138)                                  | (7,771)                       | (3,971)               
|                                         |                                                      | Increase in accrued expenses            | 143,327                                  | 26,915                        | 89,706                
|                                         |                                                      | Increase (decrease) in accounts payable | 127,408                                  | (3,379)                       | 161,192               
|                                         |                                                      |                                         |                                          |                               |                        |            
|                                         |                                                      |                                         | Net cash flows from operating activities | (2,917,618)                   | (91,972)               | (2,158,529)
|                                         |                                                      |                                         |                                          |                               |                        |            
|**CASH FLOWS FROM INVESTING ACTIVITIES** |                                                      |                                         |                                         
|                                         | ******** Proceeds from sale of securities            | 325,000                                 | -                                        | -                            
|                                         | Purchase of property and equipment                   | (208,585)                               | -                                        | (159,258)                    
|                                         |                                                      |                                         |                                          |                               |                        |            
|                                         |                                                      |                                         | Net cash flows from investing activities | 116,415                       | -                      | (159,258)  
|                                         |                                                      |                                         |                                          |                               |                        |            
|**CASH FLOWS FROM FINANCING ACTIVITIES** |                                                      |                                         |                                         
|                                         | ******** Proceeds of sale of discontinued operations | 1,000                                   | 1,000                                    | -                            
|                                         | ******** Related party debt                          | 740,556                                 | (500)                                    | 1,618,415                    
|                                         | ******** Proceeds from notes payable to stockholders | 548,191                                 | -                                        | 395,020                      
|                                         | ******** Proceeds from notes payable                 | 100,500                                 | -                                        | 270,000                      
|                                         | Issuance of common stock                             | 1,411,416                               | 66,300                                   | -                            
|                                         |                                                      |                                         |                                          |                               |                        |            
|                                         |                                                      |                                         | Net cash flows from financing activities | 2,801,663                     | 66,800                 | 2,283,435  
|                                         |                                                      |                                         |                                          |                               |                        |            
|**NET INCREASE (DECREASE) IN CASH**      |                                                      |                                         |                                         
|                                         | ******AND CASH EQUIVALENTS**                         | 460                                     | (25,172)                                 | (34,352)                     
|                                         |                                                      |                                         |                                          |                               |                        |            
|**********CASH AND CASH EQUIVALENTS,**   |                                                      |                                         |                                         
|                                         | ******BEGINNING OF PERIOD**                          | -                                       | 25,632                                   | 59,984                       
|                                         |                                                      |                                         |                                          |                               |                        |            
|**********CASH AND CASH EQUIVALENTS,**   |                                                      |                                         |                                         
|                                         | ******END OF PERIOD**                                | $                    460                | $               460                      | $          25,632            
|                                         |                                                      |                                         |                                          |                               |                        |            

The accompanying notes are an integral part of the financial statements.

**Sunburst Acquisitions IV, Inc.**

**(a Development Stage Company)**

**STATEMENT OF STOCKHOLDERS' EQUITY**

**For the period from inception (August 27, 1997) to February 28, 2002**

|                              |                           |               |                    |                |                    | **************Deficit**     | ****             
|----------------------------- | ------------------------- | ------------- | ------------------ | -------------- | ------------------ | --------------------------- | -----------------
|                              |                           |               |                    |                |                    | **************accumulated** | ****             
|                              |                           |               | **Common stock**   | **Additional** | **during the**     | **Total**                  
|                              |                           |               | **Number of**      | ****           | **paid-in**        | **development**             | **stockholders'**
|                              |                           |               | **shares**         | **Amount**     | **capital**        | **stage**                   | **equity**       
|                              |                           |               |                    |                |                    |                             |                  
|Common stock issued for cash  |                           |               |                    |                |                   
|                              | April 1999                |               | 15,000,000         | $       15,000 | $                - | $                -          | $       15,000   
|                              | May 1999                  |               | 15,000,000         | 15,000         | -                  |                             | 15,000           
|                              | July 1999                 |               | 2,500,000          | 2,500          | 22,500             |                             | 25,000           
|                              | August 1999               | 1,500,000     | 1,500              | 13,500         |                    | 15,000                     
|                              | September 1999            | 136,667       | 137                | 81,863         |                    | 82,000                     
|                              | October 1999              | 100,000       | 100                | 59,900         |                    | 60,000                     
|                              | November 1999             | 376,667       | 377                | 225,623        |                    | 226,000                    
|                              | December 1999             | 546,667       | 547                | 327,453        |                    | 328,000                    
|                              | January 2000              | 521,667       | 522                | 312,478        |                    | 313,000                    
|                              | February 2000             | 150,000       | 150                | 89,850         |                    | 90,000                     
|                              |                           |               |                    |                |                    |                             |                  
|Net loss for the period ended |                           |               |                    |                |                   
|February 29, 2000             | -                         | -             | -                  | (536,237)      | (536,237)         
|                              |                           |               |                    |                |                    |                             |                  
|Balance, February 29, 2000    | 35,831,668                | 35,833        | 1,133,167          | (536,237)      | 632,763           
|                              |                           |               |                    |                |                    |                             |                  
|Recapitalization of           |                           |               |                    |                |                   
|                              | Hollywoodbroadcasting.com |               |                    |                |                    |                            
|December 4, 2000              | 9,070,831                 | 1,309,283     | (1,133,167)        |                | 176,116           
|                              |                           |               |                    |                |                    |                             |                  
|Net loss for the year ended   |                           |               |                    |                |                   
|February 28, 2001             | -                         | -             | -                  | (1,630,777)    | (1,630,777)       
|                              |                           |               |                    |                |                    |                             |                  
|Balance, February 28, 2001    | 44,902,499                | 1,345,116     | -                  | (2,167,014)    | (821,898)         
|                              |                           |               |                    |                |                    |                             |                  
|Cancellation of shares        |                           |               |                    |                |                   
|December 4, 2000              | (15,000,000)              |               |                    |                | -                 
|                              |                           |               |                    |                |                    |                             |                  
|Common stock issued for cash  |                           |               |                    |                |                   
|                              | June 2001                 |               | 235,000            | 7,050          | -                  |                             | 7,050            
|                              | July 2001                 |               | 945,000            | 28,351         | -                  |                             | 28,351           
|                              | August 2001               | 350,000       | 10,500             | -              |                    | 10,500                     
|                              | September 2001            | 350,000       | 10,500             | -              |                    | 10,500                     
|                              | October 2001              | 330,000       | 9,900              | -              |                    | 9,900                      
|                              |                           |               |                    |                |                    |                             |                  
|Net gain for the year ended   |                           |               |                    |                |                   
|February 28, 2002             | -                         | -             | -                  | 721,350        | 721,350           
|                              |                           |               |                    |                |                    |                             |                  
|Balance, February 28, 2001    | 32,112,499                | $   1,411,417 | $                - | $  (1,445,664) | $      (34,247)   

The accompanying notes are an integral part of the financial statements.

**Sunburst Acquisitions IV, Inc.**

**(a Development Stage Company)**

**NOTES TO FINANCIAL STATEMENTS**

**February 28, 2002**

********

**1.	Summary of Significant Accounting Policies**

**Development Stage Activities and Basis of Presentation**

Sunburst Acquisitions IV, Inc. (a development stage company) (the "Company") was formed
to seek out and acquire business opportunities. In August 1999, Sunburst IV invested
$1,000,000 in Prologic Systems, Inc., an Arizona corporation in the software industry, in
anticipation of a business combination with that company.  The agreement to acquire
Prologic was terminated prior to its consummation, and Sunburst IV charged off the
investment to operations in March of 2000.  Since that time, the Company has entered into an
agreement with Prologic to recover a portion of its investment, and to date has received
$325,000 in funds related thereto.  (See Note 5).

In December 2000, the Company acquired all of the issued and outstanding common stock of
HollywoodBroadcasting.com ("HBC") in exchange for 35,831,668 shares of Sunburst IV
stock in a transaction accounted for as a recapitalization of HBC.  HBC was incorporated
under the laws of the State of Nevada on March 19, 1999.  It was created to provide live,
daily, interactive programming for the internet.  On September 28, 2001, the Company
completed the sale of its wholly owned subsidiary Hollywoodbroadcasting.com for $1,000 in
cash.  (See Note 8).

On February 27, 2002 the Company signed an agreement with 1357784 Ontario Ltd. ("EPI")
to distribute 1000-watt ballast.  (See Note 7).

The Company is a new enterprise in the development stage as defined by Statement No. 7 of
the Financial Accounting Standards Board, since it has derived only minimal revenues from
its activities to date.

**Accounting Method**

The Company records income and expenses on the accrual method.

**Fiscal Year**

The fiscal year of the Company is February 28.

**Financial Instruments**

Unless otherwise indicated, the fair value of all reported assets and liabilities that represent
financial instruments (none of which are held for trading purposes) approximate the carrying
values of such amount.

**Statement of Cash Flows**

For purposes of the statement of cash flows, the Company considers all highly liquid debt
instruments purchased with an original maturity of three months or less to be cash
equivalents.

**Loss per share**

Loss per share has been calculated based upon the weighted average shares outstanding.

**Use of Estimates**

The preparation of the Company's financial statements in conformity with generally accepted
accounting principles requires the Company's management to make estimates and
assumptions that effect the amounts reported in these financial statements and accompanying
notes.  Actual results could differ from those estimates.

**Consideration of Other Comprehensive Income Items**

SFAS No. 130 - Reporting Comprehensive Income, requires companies to present
comprehensive income (consisting primarily of net income plus other direct equity changes
and credits) and its components as part of the basic financial statements.  For the period
ended February 28, 2002, the Company's financial statements do not contain any changes in
equity that are required to be reported separately in comprehensive income.

**Stock-Based Compensation**

SFAS No. 123 - Accounting for Stock-Based Compensation allows companies to choose whether
to account for stock-based compensation under the method prescribed in Accounting Principles
Board Opinion No. 25 ("APB 25") or use the fair value method described in SFAS No. 123.  The
Company continues to follow the accounting measurement provisions of APB 25 and
implements the disclosure provisions of SFAS 123.

**Income Taxes**

The Company accounts for income taxes in accordance with SFAS No. 109 - Accounting for
Income Taxes.  Deferred tax assets and liabilities are recognized with respect to the tax
consequences attributable to differences between the financial statement carrying values and tax
basis of existing assets and liabilities.  Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which these temporary
differences are expected to be recovered or settled.  Further, the effect on deferred tax assets and
liabilities of changes in tax rates is recognized in income in the period that includes the
enactment date.

**2.	Stockholders' Equity**

The Company is authorized to issue 10,000,000 shares of preferred stock.  The Company's Board
of Directors is authorized to divide the preferred stock into series and, with respect to each series,
to determine the preferences and rights and the qualifications, limitations or restrictions thereof,
including the dividend rights, conversion rights, voting rights, redemption rights and terms,
liquidation preferences, sinking fund provisions, the number of shares constituting the series and
the designations of such series.  The Board of Directors could, without stockholder approval,
issue preferred stock with voting and other rights that could adversely affect the voting rights of
the holders of common stock which issuance could have certain anti-takeover effects.

**3.	Related Party Transactions**

As of February 28, 2002 the Company had notes payable to related entities in the amount of
$100,000.  Interest on these notes has been imputed at a rate of 6.09% and totaled $ 8,964.

- **Income Taxes**

A deferred tax asset of $578,000 at February 28, 2002 relates to net operating losses and
deductible temporary differences due to development stage costs.  Management does not
consider it more likely than not that the deferred tax asset will be realized.  Therefore, a full
valuation allowance has been established against the deferred tax asset.  The valuation allowance
decreased by $319,000 from the prior year.  This was the result of the utilization of $721,350 in
net operating losses in the current period.  The net operating losses will expire in 2020.

- **Investment in Prologic Management Systems, Inc.**

On February 16, 2001, the Company completed the sale of 2,859,972 shares of stock in Prologic
Management Systems, Inc., an Arizona corporation ("Prologic"), to Prologic, or its designees,
for a total sales price of $400,000, or approximately $0.1399 per share.  The sale was completed
pursuant to the terms of a Settlement Agreement and Release, dated January 26, 2001.  This
investment had been charged to operations in August 2000 by Sunburst Acquisitions IV, Inc.

The sales price was paid $325,000 in cash at closing and $75,000 through Prologic's execution
of a promissory note.  The promissory note bears interest at the rate of 10% per annum and
requires payments of $25,000 each on both the principal and interest, as of April 12, 2001, July
12, 2001, and October 12, 2001.  No payments have been made to date.

As of February 28, 2002 the Company still owns 600,000 shares of the common stock of
Prologic Management Systems, Inc.  Their stock trades as "over the counter - big board" under
the symbol PRLO.  On February 28, 2002 PRLO closed trading at $0.15 per share.  The
investment in PRLO was written down to zero in a previous year, and consequently the amount
is not included on the balance sheet.

**6.	Going Concern**

The accompanying financial statements have been prepared on a going concern basis.  The
Company has limited operating history and will need to raise additional capital to fund its
planned operations.  It has current assets of $83,231 and current liabilities totaling $117,478
resulting in a current ratio of 0.71 as of February 28, 2002.  The Company intends to reduce
operating expenditures to a minimal amount and to investigate the potential acquisition of or
combination with an operating entity for which the Company's status as a reporting company
under the 1934 Exchange Act is deemed valuable.  No such agreements are currently in place.

**7.       Distribution Agreement**

****On February 27, 2002 the Company signed a distribution agreement with 1357784 Ontario
Ltd. ("EPI").  EPI has a distribution agreement with Romlight International Inc. with offices
at Stevmar House, Rockley, Christ Church Barbados, West Indies. Under this agreement
Sunburst Acquisitions IV, Inc. will be the sole sub-distributor for the length of the contract.

The distribution agreement between Romlight and "EPI" was signed October 5, 2000.  The
initial purchase for the first year was 20,000 units of a Romlight ballast.  Romlight has not
been able to supply the ballast, and therefore the contract is to be considered to take effect in
2002 when Romlight can produce and deliver the ballast.

The initial price for the 1000-watt ballast is $150.00 per unit.  The initial order is for 25,000
units for the balance of the year 2002, which will meet the obligation of minimal sales.

A good faith deposit of $50,000 Canadian Dollars will be wired on signing which will be part
of the purchase price of the first 1000 units.

**8.	Sale of Discontinued Operations**

On September 28, 2001, the Company completed the sale of its wholly owned subsidiary
Hollywoodbroadcasting.com for $1,000 in cash.

Operating results of Hollywoodbroadcasting.com for the year ended February 28, 2002 are
shown separately in the accompanying income statement as loss from discontinued operation.

Assets and liabilities of Hollywoodbroadcasting.com sold consisted of the following:

Cash
$2,510Accounts receivable
367Inventories
57,705Capitalized project costs
481,519Property, plant, and equipment
156,253Total assets
698,354Accounts payable
118,893Accrued expenses
134,364Notes payable to stockholders
548,191Due to related party
741,056Total liabilities
1,542,504Net liabilities disposed of
$844,150

**9.	Subsequent Events**

**Stock Compensation Programs**

On March 14, 2002, the Company's Board of Directors approved a Stock Compensation
Program and a Incentive Stock Option Plan (the "Plans"). The maximum number of shares
that may be purchased pursuant to the Plans is 6,000,000.  Options granted under the Plans
include incentive and nonqualified stock options, as well as actual shares of common stock,
with vesting determined on the grant date, not to exceed ten years, and are exercisable over a
ten-year maximum period at a price to approximate the fair market value of the common
stock at the date of grant.  As of the date of this report no shares of stock or options have
been issued in connection with either of these plans.



ITEM 8.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE.

The Company has had no change in, or disagreements with, its principal independent
accountant since the date of inception.

PART III

ITEM 9.	DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.

The directors and executive officers currently serving the Company are as follows:

Name
Age
TenureTerry Fields
58
President and Secretary since May 2001; Director since January 2001Kelly Zastowny
37
Director since March 2002

The directors named above will serve until the next annual meeting of the Company's
stockholders.  Thereafter, directors will be elected for one-year terms at the annual stockholders'
meeting.  Officers will hold their positions at the pleasure of the board of directors, absent any
employment agreement, of which none currently exists or is contemplated.  There is no
arrangement, plan or understanding between any of the directors or officers of the Company and
any other person pursuant to which any director or officer was or is to be selected as a director or
officer, and there is no arrangement, plan or understanding as to whether non-management
shareholders will exercise their voting rights to continue to elect the current directors to the
Company's board.  There are also no arrangements, agreements or understandings between
non-management shareholders and management under which non-management shareholders may
directly or indirectly participate in or influence the management of the Company's affairs.

Biographical Information of Directors and Executive Officers follows:

Terry Fields.

Mr. Fields is a self-employed Attorney-at-Law in the state of California.  Mr. Fields was
called to the bar on June 15, 1969, and he has been a director of a number of public companies.

Kelly Zastowny.

Since 1985 Mr. Zastowny has been involved in the hydroponics industry.  His company,
Western Water Farms ("WWF") is a major retailer and wholesaler of hydroponic equipment
throughout North America, Europe and Australia.  WWF produces unique liquid organic
fertilizers, plastic molds, and other parts for the hydroponic industry.

Compliance with Section 16(a) of the Exchange Act



The Company's officers, directors and principal shareholders have each filed, or will file, an
Annual of Changes in Beneficial Ownership of Securities on Form 5.

ITEM 10.	EXECUTIVE COMPENSATION.

****No officer or director received any remuneration from the Company during the fiscal
year.  Until the Company acquires additional capital, it is not intended that any officer or director
will  receive compensation from the Company other than reimbursement for out-of-pocket
expenses incurred on behalf of the Company.  See "Certain Relationships and Related
Transactions."  The Company has  no stock option, retirement, pension, or profit-sharing
programs for the benefit of directors, officers or other employees, but the Board of Directors may
recommend adoption of one or more such programs in the future.****

ITEM 11.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT.  		****

The following table sets forth, as of February 28, 2002, the stock ownership of each
executive officer and director of Sunburst Acquisitions, Inc., of all executive officers and
directors as a group, and of each person known by Sunburst Acquisitions, Inc. to be a beneficial
owner of 5% or more of its Common Stock.  Except as otherwise noted, each person listed below
is the sole beneficial owner of the shares and has sole investment and voting power as such
shares.  No person listed below has any options, warrants or other rights to acquire additional
securities of Sunburst Acquisitions, Inc., except as may be otherwise noted.

Name and Address
Number of Shares
Owned Beneficially
% of Class OwnedCharles Malette

1550 35th Avenue West

Vancouver, B.C.

Canada,  V6M1H2
16,500,000
51.38%Terry Fields(1)

No. 3 Poipu Drive

Honolulu, HI 96825
0
0Kelly Zastowny(1)

103 - 20120 64th Avenue 
Langley, BC V2Y 1M8
0
0All directors and executive officers ( 2 persons)
0
0(1)The person listed is an officer, a director, or both, of the Company.

ITEM 12.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.



Indemnification of Officers and Directors

As permitted by Colorado law, the Company's Articles of  Incorporation provide that the
Company will indemnify its directors  and officers against expenses and liabilities they incur to
defend, settle, or satisfy any civil or criminal action brought against them on account of their
being or having been Company directors or officers unless, in any such action, they are adjudged
to have acted with gross negligence or willful misconduct.  Insofar as indemnification for
liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or
persons controlling the Company pursuant to the foregoing provisions, the Company has been
informed that, in the opinion of the Securities and Exchange Commission, such indemnification
is against public policy as expressed in that Act and is, therefore, unenforceable.



Exclusion of Liability



Pursuant to the Colorado Corporation Code, the Company's Articles of Incorporation
exclude personal liability for its directors for monetary damages based upon any violation of their
fiduciary duties as directors, except as to liability for any breach of the duty of loyalty, acts or
omissions not in good faith or which involve intentional misconduct or a knowing violation of
law, acts in violation of Section 7-5-114 of the Colorado Corporation Code, or any transaction
from which a director receives an improper personal benefit. This exclusion of liability does not
limit any right which a director may have to be indemnified and does not affect any director's
liability under federal or applicable state securities laws.



Conflicts of Interest



None of the officers of the Company will devote more than a  portion of their time to the
affairs of the Company.  There will be occasions when the time requirements of the Company's
business conflict with the demands of the officers' other business and investment activities.
Such conflicts may require that the Company attempt to employ additional personnel.  There is
no assurance that the services ofsuch persons will be available or that they can be obtained upon
terms favorable to the Company.

ITEM 13.	EXHIBITS AND REPORTS ON FORM 8-K.

(a)  The Exhibits listed below are filed as part of this Annual Report.



Exhibit No.				Document

3.1		Articles of Incorporation (incorporated by reference from Registration Statement
on Form 10-SB/A filed with the Securities and Exchange Commission on
December 29, 1997).

3.2		Bylaws (incorporated by reference from Registration Statement on Form 10-SB/A
filed with the Securities and Exchange Commission on December 29, 1997).

4.1		Specimen Common Stock Certificate (incorporated by reference from
Registration Statement on Form 10-SB/A filed with the Securities and Exchange
Commission on December 29, 1997).

10.1		Distribution Agreement between EPI and Sunburst Acquisitions IV, Inc.

(b)		No reports on Form 8-K were filed by the Company during the last quarter of its
fiscal year ending February 28, 2002.



******SIGNATURE**S

In accordance with the Exchange Act, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and on the dates indicated.

******SUNBURST ACQUISITIONS IV, INC.**

By: /S/ TERRY FIELDS

Terry Fields, President and Director

By: /S/ KELLY ZASTOWNY

Kelly Zastowny, Director

Date: May 20, 2002



Exhibit 10.1

Distribution Agreement

This Agreement is between:

1357784 Ontario, Ltd. ("EPI") and Sunburst Acquisitions IV, Inc.

Whereas EPI has a distribution agreement with Romlight International, Inc. with offices at
Stevmar House, Rockley, Christ Church Barbados, West Indies.

Whereas under the distribution agreement EPI has the right to appoint a Sub-Distributor and EPI
has received written approval from the manufacturer to appoint Sunburst Acquisitions IV, Inc., a
Colorado company, as the sole sub-distributor for the length of the contract.

The conditions of the distribution agreement apply to the sub-distributor and to the manufacturer
in its entirety.

The distribution agreement between Romlight and EPI was signed October 5, 2000.  The initial
purchase for the first year was 20,000 units of a Romlight ballast.  Romlight has not been able to
supply the ballast, and therefore the contract is to be considered to take effect in 2002 when
Romlight can produce and deliver the ballast.  (See Schedule C and paragraph 3.6 minimal
sales).

The initial price for the 1000-watt ballast is $150.00 per unit.  The initial order is for 25,000 units
for the balance of the year 2002, which will meet the obligation of minimal sales.

A good faith deposit of $50,000 CAD will be wired on signing which will be part of the purchase
price of the first 1000 units.

EPI will not appoint any other Sub-Distributor as long as Sunburst Acquisitions IV, Inc. fulfills
the obligations of the contract.  The agreement can be cancelled by mutual agreement.

________________________		 	____________________________

EPI							Sunburst Acquisitions IV, Inc.