**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, 2001.

___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:





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: $208,235.

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): $804,150 as of
May 31, 2001.

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:29,902,499as of May 31,
2001.

(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 transaction 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, 2001,
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.  The payment which was due on April 12,
2001 has not yet been received by the Company.

The Company retained ownership of a total of 600,000 shares of Prologic.  Such shares
constitute "restricted securities" as defined in Rule 144 under the Securities Act of 1933.
However, under the terms of the agreement with Prologic, it is required to file a registration
statement in order to register the Company's shares for resale, and is required to use its best
efforts to cause such registration statement to become effective.

**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. It was anticipated that HB.C's programs would
primarily be reality-based stage productions, with running times ranging from 30 to 60 minutes,
and often revolve around celebrities and notable personalities. Programs would usually be first
webcasted live and then archived on HB.C's website for later viewing on demand. In the case of
live webcasts, viewers would be invited to interact with the program and the host during the
webcast. Programs would be webcasted with links to chat rooms, e-commerce opportunities, and
subject matter related websites maintained by HB.C or others. It was expected that revenues
would be generated from: (1) sales of advertising and sponsorships; (2) sales of programs for
subsequent and/or simultaneous distribution on the Internet and in other domestic and foreign
media, including broadcast, cable and satellite television and video cassette and DVD sales and
rental; (3) e-commerce transactions generated from its website, and/or commissions from sales
generated by links from its website to other e-commerce websites.

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
signficant 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.

The Company has determined that there is not currently a viable market for production
and sale of programming for webcasting over the Internet.  As a result, the Company is not
currently taking any steps to implement the business plan developed by HB.C and is not currently
engaged in any active business operations.  Instead, the Company has begun the process of
seeking out potential opportunities in other unrelated areas of business.  Although it has no
current plans to do so,  if market conditions change in the future, the Company may again
consider taking steps to implement the business plan developed by HB.C.

**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 net tangible assets of at least $4,000,000, 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."

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, 2001,  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.

Certain amounts owed by the Company's wholly-owned subsidiary,
HollywoodBroadcasting.com, Inc., to the Los Angeles Film School are reflected in its financial
statements.  (See Note 3 to the financial statements).  On June 11, 2001, the Company received
notice of potential additional claims against HollywoodBroadcasting.com, Inc. by The Los
Angeles Film School.  (See Note 7 to the financial statements.)  Management disputes the
additional amount claimed by the Los Angeles Film School and intends to vigorously defend
HB.C from liability as a result of this claim.  It is not known whether Los Angeles Film School
intends to institute legal proceedings to enforce its claim.

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

No matters were submitted to a vote of the security holders of the Company during the
last quarter of the fiscal year which ended February 28, 2001.

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 2000 | High    | Low     
|---------------- | ------- | --------
|First Quarter    | $ 17/8  | $ 1     
|Second Quarter   | $ 2 1/4 | $1 .25  
|Third Quarter    | $ 15/8  | $0.35   
|Fourth Quarter   | $0.50   | $0.09375
|                 |         |         
|Fiscal Year 2001 | High    | Low     
|First Quarter    | $0.15   | $0.04   
|Second Quarter   | $0.09   | $0.04   

The closing bid price of the Company's common stock as  reported on the Over the
Counter, Bulletin Board on May 31, 2001, was $0.06 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.



At June 1, 2001, there were approximately 170 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.

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, 2001, the Company has current assets of $83,704 and current liabilities of
$895,890, resulting in a current ratio of 0.09.

During the fiscal year ended February 28, 2001, the Company received cash proceeds of
$325,000 as part payment of the purchase price for its sale of shares of common stock of
Prologic.  However, substantially all of those funds were used prior to the end of the fiscal year
to pay various outstanding debts and obligations of the Company, primarily including debts and
obligations related to its acquisition of HollywoodBroadcasting.com, Inc. As a result, those funds
are not available to pay on-going operating expenses.   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.  However, the $25,000 payment which was
due on April 12, 2001 pursuant to the terms of the promissory note has not yet been received by
the Company.  The Company is in discussions with Prologic regarding modification of the terms
of payment under the promissory note but there is no assurance as to when or whether the
Company is likely to receive any portion of the remaining $75,000 due from Prologic.

Another potential source of capital for the Company is the sale of all, or a portion, of its
remaining 600,000 shares in Prologic.  Although Prologic has the contractual obligation to file a
registration statement to register such shares for resale by the Company, it has not yet done so,
and the shares are currently still designated as "restricted securities" under the Securities Act of
1933.  In addition, the market value of such shares in currently difficult to determine because the
shares of Prologic are thinly traded and there is not a viable market for purchase and sale of such
shares.   Thus, there is no assurance that the Company would be able to sell its Prologic shares
even if they were registered for purposes of resale.

Other than the potential 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.

On June 11, 2001, the Company was notified by the management of the Los Angeles
Film School (LAFS) of its claim for reimbursement for $1,271,000 in expenses which LAFS
asserts were incurred on behalf of HollywoodBroadcasting.com (HBC).  Such amounts consist of
office rent, equipment purchases, and computer lease obligations.  The claim also alleges
conflicts of interest by members of HBC management during the time that HBC's president was
a partner in LAFS.  The accompanying financial statements include $741,000 due and payable to
LAFS.  Management disputes the additional amount claimed by LAFS, ($530,000) and intends to
vigorously defend HBC from liability as a result of this claim.

ITEM  7.	FINANCIAL STATEMENTS AND EXHIBITS

Index to Financial Statements - February 28, 2001

Report of Independent Accountants

Consolidated Balance Sheet

Consolidated Statements of Operations

Consolidated Statements of Cash Flows

Consolidated Statement of Stockholders' Deficit

Notes to Financial Statements



**REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS**

The Board of Directors and Stockholders of

Sunburst Acquisitions IV, Inc. and subsidiary

We have audited the accompanying consolidated balance sheet of Sunburst Acquisitions IV, Inc.
and subsidiary (a development stage company) as of February 28, 2001, and the related
consolidated statements of operations, stockholders' equity, and cash flows for the year ended
February 28, 2001, for the initial period ended February 29, 2000 and for the period from
inception (March 19, 1999) through February 28, 2001.  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 consolidated financial statements referred to above present fairly, in all
material respects, the consolidated financial position of Sunburst Acquisitions IV, Inc. as of
February 28, 2001, and the results of its operations and cash flows for the year ended February
28, 2001, for the initial period ended February 29, 2000 and for the period from inception (March
19, 1999) to February 28, 2001 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

May 22, 2001

(Except for Note 7

which is dated June 13, 2001)

**PROFESSIONAL CORPORATION**

******Sunburst Acquisitions IV, Inc. and Subsidiary**

**(a Development Stage Company)**

**CONSOLIDATED BALANCE SHEET**

**February 28, 2001**

|                                         | **ASSETS**                                              |                                                                   |                  
|---------------------------------------- | ------------------------------------------------------- | ----------------------------------------------------------------- | -----------------
|                                         |                                                         |                                                                   |                  
|CURRENT ASSETS**                         |                                                         |                                                                  
|                                         | **************Cash and cash equivalents                 |                                                                   | $          25,632
|                                         | **************Film Inventory                            |                                                                   | 57,705           
|                                         | **************Note receivable                           |                                                                   | 75,000           
|                                         | **************Other current assets                      |                                                                   | 367              
|                                         |                                                         |                                                                   |                  
|                                         |                                                         | ****Total current assets                                          | ****             
|                                         |                                                         |                                                                   |                  
|***************PROPERTY AND EQUIPMENT*** | ****                                                    |                                                                  
|                                         | Furniture and fixtures****                              | ****                                                              | 83,642           
|                                         | Equipment****                                           | ****                                                              | 89,250           
|                                         | Building improvements****                               | ****                                                              | 35,693           
|                                         |                                                         |                                                                   |                  
|                                         | Less accumulated depreciation****                       | ****                                                              | 34,883           
|                                         |                                                         |                                                                   |                  
|                                         |                                                         |                                                                   |                  
|***************OTHER ASSETS***           | ****                                                    |                                                                  
|                                         | Capitalized project costs****                           | ****                                                              | 482,642          
|                                         |                                                         |                                                                   |                  
|                                         |                                                         |                                                                   |                  
|                                         |                                                         | ************TOTAL ASSETS                                          | ****             
|                                         |                                                         |                                                                   |                  
|                                         | **LIABILITIES
AND STOCKHOLDERS' EQUITY**                |                                                                   |                  
|                                         |                                                         |                                                                   |                  
|CURRENT LIABILITIES**                    |                                                         |                                                                  
|                                         | **************Accounts payable                          |                                                                   | $        130,787 
|                                         | **************Accrued expenses                          |                                                                   | 116,412          
|                                         | **************Notes payable - related parties           |                                                                   | 100,500          
|                                         | **************Notes payable to stockholders             |                                                                   | 548,191          
|                                         |                                                         |                                                                   |                  
|                                         |                                                         | ****Total current liabilities                                     | ****             
|                                         |                                                         |                                                                   |                  
|***LONG TERM LIABILITIES***              | ****                                                    |                                                                  
|                                         | **************Due to related party                      |                                                                   | 741,056          
|                                         |                                                         |                                                                   |                  
|******STOCKHOLDERS' EQUITY               |                                                         |                                                                  
|                                         | **************Preferred stock, no par value;
20,000,000 |                                                                   |                  
|                                         |                                                         | **************shares authorized; no shares issued and outstanding | -                
|                                         | Common stock, no par value; 100,000,000                 |                                                                   |                  
|                                         |                                                         | shares authorized; 44,902,499 shares issued and                   |                  
|                                         |                                                         | outstanding                                                       |                  
|                                         | Deficit accumulated during the development              |                                                                   |                  
|                                         |                                                         | stage                                                             |                  
|                                         |                                                         |                                                                   |                  
|                                         |                                                         |                                                                   |                  
|                                         |                                                         |                                                                   |                  
|                                         |                                                         | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        | $        815,048 

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

**Sunburst Acquisitions IV, Inc. and Subsidiary**

**(a Development Stage Company)**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

|                             |                                     |                        | **For the period**        | ****             | **For the period**  
|---------------------------- | ----------------------------------- | ---------------------- | ------------------------- | ---------------- | --------------------
|****                         |                                     |                        | **from inception**        | **For the**      | **from inception**  
|****                         |                                     |                        | **(March 19, 1999)**      | **year ended**   | **(March 19, 1999)**
|****                         |                                     |                        | **to February 28,**       | **February 28,** | **to February 29,** 
|****                         |                                     |                        | **2001**                  | **2001**         | **2000**            
|****                         |                                     |                        |                           |                  |                     
|REVENUES                     | $              208,235              | $              208,235 | $                       -
|                             |                                     |                        |                           |                  |                     
|********EXPENSES             |                                     |                        |                          
|                             | Selling, general and administrative | 2,747,447              | 2,211,210                 | 536,237         
|                             |                                     |                        |                           |                  |                     
|                             |                                     | Total expenses         | 2,747,447                 | 2,211,210        | 536,237             
|                             |                                     |                        |                           |                  |                     
|**NET OPERATING LOSS**       | (2,539,212)                         | (2,002,975)            | (536,237)                
|                             |                                     |                        |                           |                  |                     
|**OTHER INCOME AND EXPENSE** |                                     |                        |                          
|                             | ********Interest expense            | (27,802)               | (27,802)                  | -               
|                             | Gain on sale of securities          | 400,000                | 400,000                   | -               
|                             |                                     |                        |                           |                  |                     
|**NET LOSS**                 | (2,167,014)                         | (1,630,777)            | (536,237)                

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

**Sunburst Acquisitions IV, Inc. and Subsidiary**

**(a Development Stage Company)**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

|                                     |                                                      |                                           |                                 |                                          | For the period            | ****             | **For the period**  
|------------------------------------ | ---------------------------------------------------- | ----------------------------------------- | ------------------------------- | ---------------------------------------- | ------------------------- | ---------------- | --------------------
|****                                 |                                                      |                                           |                                 |                                          | **from inception**        | **For the**      | **from inception**  
|****                                 |                                                      |                                           |                                 |                                          | **(March 19, 1999)**      | **year ended**   | **(March 19, 1999)**
|****                                 |                                                      |                                           |                                 |                                          | **to February 28,**       | **February 28,** | **to February 29,** 
|****                                 |                                                      |                                           |                                 |                                          | **2001**                  | **2001**         | **2000**            
|****                                 |                                                      |                                           |                                 |                                          |                           |                  |                     
|CASH FLOWS FROM OPERATING ACTIVITIES |                                                      |                                           |                                
|                                     | Net loss                                             | $            (2,167,014)                  | $            (1,630,777)        | $               (536,237)               
|                                     | Adjustments to reconcile net loss to                 |                                           |                                 |                                         
|                                     |                                                      | net
cash flows from operating activities: |                                 |                                          |                          
|                                     |                                                      |                                           | Gain on sale of securities      | (400,000)                                | (400,000)                 | -               
|                                     |                                                      |                                           | Depreciation                    | 34,883                                   | 33,322                    | 1,561           
|                                     |                                                      |                                           | Increase in Accounts receivable | (367)                                    | (367)                     |                 
|                                     |                                                      |                                           | Increase in Inventory           | (57,705)                                 | (57,705)                  | -               
|                                     |                                                      |                                           | Increase in Prepaid expenses    | -                                        | 95,000                    | (95,000)        
|                                     |                                                      |                                           | Increase in Other assets        | (482,642)                                | (474,905)                 | (7,737)         
|                                     |                                                      |                                           | Increase in Accounts payable    | 130,787                                  | 102,228                   | 28,559          
|                                     |                                                      |                                           | Increase in Accrued expenses    | 116,412                                  | 72,374                    | 44,038          
|                                     |                                                      |                                           |                                 |                                          |                           |                  |                     
|                                     |                                                      |                                           |                                 | Net cash flows from operating activities | (2,825,646)               | (2,260,830)      | (564,816)           
|                                     |                                                      |                                           |                                 |                                          |                           |                  |                     
|CASH FLOWS FROM INVESTING ACTIVITIES |                                                      |                                           |                                
|                                     | ******** Proceeds from sale
of securities            | 325,000                                   | 325,000                         | -                                       
|                                     | Purchase of property and equipment                   | (208,585)                                 | (90,724)                        | (117,861)                               
|                                     |                                                      |                                           |                                 |                                          |                           |                  |                     
|                                     |                                                      |                                           |                                 | Net cash flows from investing activities | 116,415                   | 234,276          | (117,861)           
|                                     |                                                      |                                           |                                 |                                          |                           |                  |                     
|CASH FLOWS FROM FINANCING ACTIVITIES |                                                      |                                           |                                
|                                     | ******** Related party debt                          | 741,056                                   | 1,320,566                       | (579,510)                               
|                                     | ******** Proceeds from notes payable to stockholders | 548,191                                   | 395,020                         | 153,171                                 
|                                     | ******** Proceeds from notes payable                 | 100,500                                   | 100,500                         | -                                       
|                                     | Issuance of common stock                             | 1,345,116                                 | 176,116                         | 1,169,000                               
|                                     |                                                      |                                           |                                 |                                          |                           |                  |                     
|                                     |                                                      |                                           |                                 | Net cash flows from financing activities | 2,734,863                 | 1,992,202        | 742,661             
|                                     |                                                      |                                           |                                 |                                          |                           |                  |                     
|NET INCREASE (DECREASE) IN CASH      |                                                      |                                           |                                
|                                     |                                                      | ****AND CASH EQUIVALENTS                  | 25,632                          | (34,352)                                 | 59,984                   
|                                     |                                                      |                                           |                                 |                                          |                           |                  |                     
|********CASH AND CASH EQUIVALENTS,   |                                                      |                                           |                                
|                                     |                                                      | ****BEGINNING OF PERIOD                   | -                               | 59,984                                   | -                        
|                                     |                                                      |                                           |                                 |                                          |                           |                  |                     
|********CASH AND CASH EQUIVALENTS,   |                                                      |                                           |                                
|                                     |                                                      | ****END OF PERIOD                         | $                  25,632       | $                  25,632                | $                  59,984
|                                     |                                                      |                                           |                                 |                                          |                           |                  |                     

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

**Sunburst Acquisitions IV, Inc. and Subsidiary**

**(a Development Stage Company)**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**For the period from inception (March 19, 1999) to February 28, 2001**

|                              |                           |               |                      |                        |                    | ****
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)     
|                              |                           |               |                      |                        |                    |                      |                  

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

******Sunburst Acquisitions IV, Inc. and Subsidiary**

**(a Development Stage Company)**

**NOTES TO FINANCIAL STATEMENTS**

**February 28, 2001**

- ******Summary of Significant Accounting Policies**

**Development Stage Activities and Basis of Presentation**

Sunburst Acquisitions IV, Inc. and subsidiary (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 4).

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.

The accompanying consolidated financial statements reflect the operations of the accounting
acquirer, HollywoodBroadcasting.com, Inc. for all periods presented.  Minimal operations
attributable to Sunburst IV, the legal parent company, as well as income from the Prologic
investment are included in operations for the period subsequent to the December 4, 2000
acquisition date.

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.  Prior to the December 4, 2000 acquisition of
HBC, the fiscal year of the Company was March 31.

**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.  The
shares issued to acquire HollywoodBroadcasting.com have been shown as outstanding for the
same periods as the shares of HollywoodBroadcasting.com tendered in the exchange.

**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.

**Capitalized Project Costs**

Production costs that are specifically identifiable to a project are capitalized as incurred.
Capitalized project costs are amortized using the individual-film-forecast-computation method
which uses a ratio of current gross revenues divided by anticipated total gross revenues.

Unamortized project costs are evaluated on a specific project basis each reporting period.  Project
costs that exceed net realizable value are written down in the period of evaluation.  If the
evaluation changes within the same fiscal year, project costs may be written up to the extent of
the original write down.  If the evaluation occurs in a subsequent fiscal year, no write up is done.

**Property and Equipment**

Property and equipment are stated at cost.  Depreciation is computed using the straight-line
method over a period of five to seven years.

**Inventory**

Film stock inventory is valued at the lower of cost or fair market value.  It consists mainly of
footage of celebrities and notables and will be expensed as the images decrease in fair market
value.

**Long-Lived Assets**

The Company assesses the realizability of the long-lived assets in accordance with SFAS No.
121 - Accounting for the Impairment of Long-Lived Assets and for Long-Lived assets To Be
Disposed of.  SFAS No. 121 requires, among other things, that an entity review its long-lived
assets including intangibles for impairment whenever changes in circumstances indicate that the
carrying value of an asset may not be fully recoverable.

**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, 2001, 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**

The President of the Company was a partner in the Los Angeles Film School ("LAFS").  LAFS
had provided office space and administrative services for the Company through February 28,
2001.  The Company had an informal arrangement to lease its corporate offices from LAFS for
$45,000 per month through November 30, 2000, and thereafter at $3,083 per month on a month
to month basis.  Rent expense for the period was $408,314.  Subsequent to the end of the fiscal
year, the Company relocated its offices and is no longer utilizing the facilities at LAFS.

As of February 28, 2001, the Company had amounts due to LAFS totaling $741,056.  Interest on
the amount has been imputed at the applicable Federal AFR rates, which have ranged between 5
and 7 percent.  As of February 28, 2001 the total accrued interest on these amounts totaled
$26,300.

As of February 28, 2001, the Company has notes payable to stockholders totaling $548,191.  The
notes bear no interest and are due on demand.

As of February 28, 2001, HollywoodBroadcasting.com has notes payable to Sunburst
Acquisitions IV, Inc. totaling $560,000.  The notes bear no interest and are due on demand.  The
notes were eliminated in the offsetting consolidating adjustments.

As of February 28, 2001 the Company had notes payable to related entities in the amount of
$100,500.  Interest on these notes has been imputed at a rate of 6.09% and totaled $2,874.

**4.	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 of 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 principal, interest, on each of April 12, 2001, July 12, 2001 and
October 12, 2001.  The April 12, 2001 payment has not been made.

The Settlement and Release between the Company and Prologic was executed in order to resolve
and settle all claims between the parties relating to the StockPurchase and Merger Agreement
dated July 8, 1999.  It contains a mutual release of claims arising under or in connection with the
Stock Purchase and Merger Agreement and the Voting Trust Agreement.  This mutual release
includes the parties themselves, as well as certain indemnified affiliates of each of the parties.

Pursuant to the terms of the Settlement Agreement and Release the Company sold 2,859,972
shares of 3,459,972 it had originally purchased, and retained ownership of the remaining 600,000
shares.  Upon closing under the Settlement Agreement and Release, the Company also caused the
share certificates which had been held pursuant to the Voting Trust Agreement to be returned to
Prologic.

The 600,000 shares of Prologic common stock retained by the Company currently constitute
"restricted securities" as defined by Rule 144 under the Securities Act of 1933.  However, under
the terms of the Settlement Agreement and Release, Prologic is obligated to file a registration
statement for registration of such shares under the Securities Act of 1933 and reasonable best
efforts to cause such registration statement to be declared effective.  The fair value of the
remaining Prologic shares cannot be estimated at this time.  The carrying amount for the shares is
zero.

**5.	Income Taxes**

A deferred tax asset of $897,000 at February 28, 2001 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
increased by $695,020 from the prior year.  The net operating losses will expire in 2020.

**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 $83,704 and current liabilities totaling $895,890
resulting in a current ratio of 0.09 as of February 28, 2001.  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.

- **Subsequent Events**

**On March 19, 2001, the Board of Directors of Sunburst Acquisitions IV, Inc. accepted the
resignation of its president, and subsequently, Terry Fields was appointed CEO, President and
Secretary.**

On March 26, 2001 a former officer of HBC surrendered a total of 15,000,000 shares of common
stock in the Company for cancellation.

On June 11, 2001, the Company was notified by the management of the Los Angeles Film
School (LAFS) of its claim for reimbursement for $1,271,000 in expenses which LAFS asserts
were incurred on behalf of HollywoodBroadcasting.com (HBC).  Such amounts consist of office
rent, equipment purchases, and computer lease obligations.  The claim also alleges conflicts of
interest by members of HBC management during the time that HBC's president was a partner in
LAFS.  The accompanying financial statements include $741,000 due and payable to LAFS.
Management disputes the additional amount claimed by LAFS, ($530,000) and intends to
vigorously defend HBC from liability as a result of this claim.

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 | Tenure                                                             
|------------ | --- | -------------------------------------------------------------------
|Terry Fields | 58  | President and Secretary since May 2001; Director since January 2001



The director 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.

Compliance with Section 16(a) of the Exchange Act

The Company's officers, directors and principal shareholders have each filed an Initial Statement
of Beneficial Ownership of Securities on Form 3.

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, 2001, 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 Owned
|------------------------------------------------------------------------ | ----------------------------------- | ----------------
|Charles Malette

1550 35th Avenue West

Vancouver, B.C.

Canada,  V6M1H2 | 16,500,000                          | 36.74%          
|Terry Fields(1)

No. 3 Poipu Drive

Honolulu, HI 96825                   | 0                                   | **              
|All directors and executive officers ( 1 person)                         | 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 his 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 officer's 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

2.1		Agreement for Share Exchange, dated as of August 15, 2000, between the
Company and HollywoodBroadcasting.com, Inc., a Nevada corporation
(incorporated by reference from Report on Form 8-K dated December 4, 2000,
filed with the Securities and Exchange Commission on December 19, 2000).

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).

(b)	The following reports on Form 8-K were filed by the Company during the last
quarter of its fiscal year ending February 28, 2001:

1.	Report on Form 8-K dated December 4, 2000, to report a change in control
of registrant and to announce acquisition of HollywoodBroadcasting.com,
Inc., a Nevada corporation, filed with the Securities and Exchange
Commission on December 19, 2000.

Report on Form 8-K/A dated December 4, 2000, to report a change in
control of registrant and to announce the acquisition of
HollywoodBroadcasting.com, Inc., a Nevada corporation.  The initial
report on Form 8-K (filed with the Securities and Exchange Commission
on December 19, 2000) did not contain financial statements.  On or about
February 16, 2001, the Company filed an amended report on Form 8-K
which included the audited financial statements ofHollywoodBroadcasting.com, Inc., as well as unaudited pro forma
financial statements.

Report on Form 8-K/A dated December 4, 2000,to report the change in
fiscal year (filed with the Securities and Exchange Commission on
February 23, 2001.)

Report on Form 8K dated February 16, 2001, to report a Settlement
Agreement and Release with Prologic Management Systems, Inc., an
Arizona corporation (filed with the Securities and Exchange Commission
on March 2, 2001.)

**SIGNATURE**

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)

Date: June 13, 2001